First, the City is now willing to return
Second, to sweeten the pot, a "development fund:" will be established for surrounding municipalities, funded by NIZ developers with an annual $1 per sq ft of office space occupied payment. This development will not include the arena block.
The Morning Call reports it has obtained a copy of Pawlowski's proposal.
So have I.
I've posted it below.
Now you have it, too.
435 Hamilton Street
Allentown, PA 18101
Allentown Neighborhood Improvement Zone Development Authority Revenue Sharing Proposal
ln an effort to provide local taxing bodies with their current Earned Income Tax (EIT) receipts from the Neighborhood improvement Zone (NIZ) area, the City of Allentown will develop a Baseline Payment fund to provide for the timely disbursement of current EIT back to Lehigh and Northampton County taxing bodies. The fund will be structured as follows:
Baseline Payment Fund:
º A baseline payment will be calculated on the EIT generated within the NIZ for the first quarter of 2012, and then annualize for the year 2012 (the “Baselìne"). Berkheimer will establish the 2012 Baseline by mid-June, 2012.In addition to the Baseline Payment Fund, and to provide a vehicle for local taxing bodies to share in future NIZ development opportunities, ANIZDA will create a Development Fund which will be administered in the following manner:
º Commencing approximately the later of the issuance of the Allentown Neighborhood Improvement Zone Development Authority (ANIZDA) financing of bonds or October 2012, ANIZDA will pay to the local taxing bodies their prorata contributed share of the Baseline with the first payment being the equivalent of prior withheld quarterly payments in 2012, and then quarterly thereafter, pay the prorata of the Baseline for the life ofthe Bonds for the Arena Block Development.
º The initial source of revenue to support payment by ANIZDA of the Baseline for 2012 and 2013 will be borrowed money against non NIZ revenue. Future sources will be non NIZ and surplus revenue.
º ANIZDA will create a fund for distribution to local taxing bodies from new office development within the NIZ but outside of the Arena Block by charging a fee to Developers of commercial office projects utilizing NIZ financing proceeds.Conditions:
º Each office development will pay an annual fee upon occupancy of $1.00 per rentable square foot occupied.
º Annually, by June 30th, from the fund, ANIZDA will distribute the receipts to the local taxing bodies located in Lehigh and Northampton County based on the percentage of EIT collected from residents within the local taxing body working in the NIZ for the prior year as calculated by Berkheimer.
To participate and receive Baseline Payments and Development Fund distributions, the local taxing body must accept, approve and enter into the settlement agreement with ANIZDA.
All pending lawsuits by taxing bodies must be withdrawn by all litigants who are a party hereto.
The local taxing body shall also assign to ANIZDA its right to receive disbursement of surplus up to the amounts advanced to it by the ANIZDA payments made under this agreement so as to avoid double payment to the local taxing body.
ln the event any local taxing body sues to challenge the validity of the NIZ Act, the settlement agreement shall terminate immediately for all taxing bodies.
Bond counsel, the PA Dept. of Revenue and the ANIZDA Board must all approve the settlement agreement.