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Nazareth, Pa., United States

Wednesday, July 09, 2014

Mark and Mike's Excellent Adventure

Michael Brett is a "Community Development Specialist" at the Easton Redevelopment Authority. Among other things, the Easton Redevelopment Authority oversees the redevelopment of the Simon Silk Mill and other blighted and vacant properties.

Easton's latest redevelopment hero is Mark Mulligan's VM Development Group. He's got the Simon Silk Mill, Wolf Building, Northampton National Bank and Pomeroy Building. Mayor Sal Panto calls Mulligan an "excellent construction manager."

Brett must think Mulligan is excellent, too. He works for him. According to the Department of State, he's been a broker for VM Realty since June 6, 2014. How he works for Mulligan and works for an authority that is overseeing Mulligan's work must be very easy.

Awesome!

It gets better. Brett is also a member of Easton's Zoning Hearing Board, which has approved Mulligan's excellent zoning requests for the Silk Mill and Wolf Building.

Excellent for Brett. Excellent for Mulligan.

For those concerned about conflicts of interest, not so much.

51 comments:

Anonymous said...

Well it is baseball season after all and it appears as though Team Mark has all his bases covered.

Anonymous said...

that's.......awkward

Anonymous said...

You should see these two decide who wins the local church festival queen crowning! It's not conflict of interest if nobody cares. In Easton, nobody cares.

Anonymous said...

No harm, no foul if he is excusing himself from decisions / voting (with the wink of an eye and a bow of his head).

hasansabah said...

bERNIE I'd like to post this on Easton, Pennsylvania facebook page. I'd prefer to post it without the gif, though. Do you mind if I copy and paste and post that way? Thank's for your excellent blogging.

Anonymous said...

O Boy. This is gonna get ugly. This guy has a business relationship with every developer that does business with the redevelopment authority. I hope you investigate Bernie. Clubhouse Holdings, VM - at one point Hometeam Realty.

Anonymous said...

Bernie is going to tip the titanic once again with this topic. Mulligan has gotten sweet heart deals all through the city and walks around like he is the guy who has been here for 20 years fixing the place up.

Anonymous said...

Rumor is that the construction at the Silk Mill is a train wreck. Mulligan is getting paid to oversee it but the contractors are being paid by the City? Can the City really be paying for this work? And our redevelopment office is bogged down in managing it...wait I thought the city was paying Mulligan to manage it. But wait....isn't he the developer? Shouldn't he be footing the Bills? Did he get a KOZ as well for that property? Wait....didn't the city spend time on that?

Bernie O'Hare said...

All of the above is true.

Bernie O'Hare said...

7:57, s you wish.

Anonymous said...

O yeah it is I hear they are even using state grant money to buy that mulligan historic tax credits! The guy is getting published in the news paper as being the king of development in Easton but he isn't even spending his own money. and the tax payers are paying for his historic tax credits?

Anonymous said...

Community Development Specialist? Yeah Ok. Personal Development specialist. And the Mayor says....

Anonymous said...

My Wife works at city hall and they have been saying this for years. Mulligan is constantly in city hall even before he owned the building chumming up to the business administrator and redevelopment director. Head over to the YR for a beer and you'll get about a dozen more stories.

Bernie O'Hare said...

The YR Club? Can't remember the last time I've been there it's been so long. Unfortunately, I am now an OD (Old Democrat) and no longer drink.

Sal Panto, Jr. said...

BOH, sorry but on this one I won't even give it a comment. Show me the beef. In other words where is the conflict? Mark Mulligan is a reputable person and well respected in the communities that he has helped to redevelop. All of these projects were purchased and approved prior to June. Mr. Brett is an excellent employee who is doing an excellent job of turning vacant dilapidated homes in the West Ward into beautiful residential units now being occupied by working families. Many were multiple units that are being deconverted to single family.

Naturally when you cry foul that same old cowards come on your blog and use rumors and innuendo to try and disparage a person's character.

Every property that Mr. Mulligan has purchase dis being restored to historic standards and he adheres to all codes. It would be great if every developer did the same. As for investment, he and his investors are in the process of investing more than $150 million OF THEIR OWN MONEY into this city. How much are the cowards here investing. Did they invest in the Pomeroy building which was vacant for more than 35 years? They certainly had the same opportunity. Did they buy the Governor Wolf building? Did they respond to our RFP for the Silk Mill? They had the same opportunity. You know why they didn't --- because they don't have the investors, the know-how and or the tenacity to do projects like these.

I have several more in the city and if they would like to be the developer then step to the plate. I will gladly pitch the project tto them as well.

Show me the beef (conflict) and it will be addressed. But in the meantime please stick to the facts.

Bernie O'Hare said...

Sal, the relationship itself is the conflict, and if you don't see that, I feel sorry for Easton. You need to look into this. I am also concerned that Brett is handing out housing grants and was a realtor with an outfit setting people up in the west ward. If you don't think that's a problem, you need to read the Ethics Act.

Incredible.

But thanks for being out there and telling me what you think.

Anonymous said...

Mayor Panto please call Mayor Donchez to find out how to handle this situation.

Anonymous said...

You have an employee of the city who is:
1. Working also as an employee for VM development as clearly you can see. VM is a large developer working with the authority who also employs him.
2. Shows his affiliation via LinkedIn with Clubhouse Holdings which appears to be as an employee. The authority sold 118 Northampton St to Clubhouse Holdings.
3. Has probably voted for zoning variances for these entities as a member of the Zoning Board.

Mayor, this stinks to high heaven and I really hope you don't approve of such behavior. Legal or not.

Anonymous said...

Mr. Panto, with all due respect most of your post is about what great work these people are doing in/for the city. Yeah, those sound like and may be good things but they don't address the issue.

There is such a thing as ethics - far too often those in government let them slide.

You said you aren't going to comment, but you left a comment that looks like PR. Where's the "beef" - the content?

Anonymous said...

Mayor - Everything being stated is fact. What is incorrect? It's all fact.
Mayor - Contrary to popular belief Mulligan is really wearing on people with his stuck up attitude and belief that he is better than everyone else. He is cocky and you know it - that is why he feels that it is ok to hire a redevelopment authority employee as he sucks 9 million dollars out them at the same time. Guys like this are trouble and they only get worse. You should probably, at the very least, not defend his stupid actions.

Anonymous said...

"Community Development Specialist"

Is that like a Community Organizer?

I like hoopla!

Anonymous said...

Sal - your redevelopment authority is out of control. The director owns property in Bethlehem, sits on the Bethlehem Criz board, was known to be dating a business partner of Mulligan and has a salary that makes her look like she should be running a court room. So while you are out defending these people and giving their tenants permit fee relief please stop and take a minute to think about what you are doing because in the process you are making the situations worse. We are all glad that the pomeroy's building is complete but lets not slap the people in the face who have been in the city working for the last 20 years.

Anonymous said...

From Eastons Home Rule Charter

§ C-7.01 Conflicts of Interest; Board of Ethics.
29
A. Conflicts of Interest.
The use of public office for private gain is prohibited. The City Council shall implement this prohibition by ordinance, the terms of which shall include, but not be limited to:
(1) Acting in an official capacity on a matter(s) in which the official has a private financial interest, clearly separate from that of the general public;
(2) The acceptance of gifts and other things of value;
(3) Acting in a private capacity on matters dealt with as a public official;
(4) The use of confidential information; and
(5) Appearances by City officials before other City agencies on behalf of private interests.
The ordinance shall include a statement of purpose and shall provide for reasonable public disclosure of finances by officials with major decision making authority over monetary expenditures and contracts and regulatory matters and, insofar as permissible under state law, shall provide for fines and imprisonment for violations.
B. Board of Ethics.
The City Council shall, by ordinance, establish an independent Board of Ethics to administer and enforce the conflict of interest and financial disclosure ordinance(s). No member of the Board may hold elective or appointed office under the City or any other government or hold any political party office. Insofar as possible under state law, the City Council shall authorize the Board to:
(1) Issue advisory opinions;
(2) Conduct investigations on its own initiative and on referral or complaint from officials or citizens;
(3) Subpoena witnesses and documents;
(4) Refer cases for prosecution;
(5) Impose administrative fines; and
(6) Hire independent counsel.
The City Council shall appropriate sufficient funds to the Board of Ethics to enable it to perform the duties assigned to it and to provide annual training and education of City officials and employees and candidates for public office regarding the Ethics Code.

Anonymous said...

The city's neighborhoods would be so much better if they invested the amount of time into them as they do the silk mill. I'm concerned that you don't see this Mayor.
I'm also concerned that you applaud a developer who would allow this to happen.

Anonymous said...

Mayor - Mr. Mulligan and his investors are investing how much into Easton? 150 Million? Not!
Alpha Building - 4m
Pomeroy's - 4m +2m - 2m state grant
Gov. Wolf - 2m
National - 1.1m
That is 11.1 million
Silk - 138.9 million? I don't think so. Plus there has already been 9 million spent and lets not forget the 20% tax credit he will receive.

Anonymous said...

Someone has to explain to me why there couldn't of been more than one developer on the project and why the city jumped the gun to sign up exclusively with this developer if it were only going to spend their own money?

Sal Panto, Jr. said...

You see Bernie, this is what happens. People start posting misinformation and I am not going to answer each allegation. What we are going to do is ask the Redevelopment Authority Board on Wednesday to seek an opinion from the State Ethics Commission. That will answer all concerns. But for the record, the individual is a part time employee who has nothing to do with oversight of any of these projects nor does he award grants to anyone. And the construction at the Silk Mil is no where near a train wreck. It is progressing just fine and lot further than we could have hoped for -- businesses and residents will be in the first phase ahead of schedule. Also, the HogTown building has a developer who is not the same as the Mill and that project will be starting shortly.

Good things are happening and if there were any conflicts I would address them immediately. But we will let the state ethics commission make that decision based on the facts and not heresay. Thankfully this country is a nation of laws and not of men (quote from the Jaycees Creed)

Anonymous said...

I am with you Sal. When a Stoffa cabinet member was hired by a county contractor whose contract she oversaw, O'Hare defended the move. It was not only a clear conflict of interest but also against county law for the contractor to hire him and he should have not received county money but all was shoved under the carpet. Mr. O'Hare defended it and said it was no big deal.

So you see Mayor you are a nice guy, but you are no mancrush like Stoffa.

Sorry!

Sal Panto, Jr. said...

As I said, we will ask the State Ethics Commission for a ruling and we will abide by their decision.

Bernie O'Hare said...

Anin 3:29 is referring to Ross marcus' move to CACLV. The evil at which the Admin Code is directed did not exist, and County Council claimed they did not oppose the move,. But afterwards, Lamont McClure did and got an ordinance passed that, ironically, would not apply to the Marcus hire.

In this case, I believe the evil at which the Ethics Act is aimed - use of inside information and personal financial gain - may very well exist.

Sal is seeking an advisory opinioon, which means the Comm'n will be limited by the facts presented. I would prefer an outright investigation.

Anonymous said...

So Panto, you spew a big # ($150 Mil) and can't back it up, typical politician filled with fluff & hot air!

Sal Panto, Jr. said...

3:14 your "facts" are wrong. In most cases you are citing the purchase price and not the renovation costs. Same with Anon 1:29 who says the city jumped at this developer. Here are a few facts -- prior to selling the Alpha Building we had an appraisal done on the property to ascertain its value. That appraisal placed the building at $3.5 million. We solicited bids for the building as well as asking that they identify the nintended use. In bot the Silk case and the Alpha case VM DEvelopment was the highest and best offer with the intended use the city was seeking. The Alpha Building was sold for $4 million - higher than the appraised value. Anon 3:14 does not include any money for renovation. One of the reasons the city decided to sell was the condition of the building. It needs major capital improvements including a new roof, elevators, HVAC and more. Our estimate is that VM will spend another $4 million renovating the building. Same is true with the Wolf Building which when all is said and done will have an investment of more than $5 million. This developer is buying old buildings and in the case of the Wolf Building he is buying a building the county let go to disrepair for years.

All of our dealings are public record and you can find all of this out yourself if you want the facts. For some, it is easier and certainly more sensational to report just some of the facts.

I am more than happy to set up an appointment with anyone that would like to look at the records.

Anonymous said...

Panto, are you hanging out with Mayor Rob Ford?

Your post at 12:10 clearly states $150 million?

Good thing you wrote it down yourself and have no one to blame but yourself!

Anonymous said...

Ok. So maybe the state ethics commission can make a ruling on wether or not it was wrong to award additional funds to the silk mill developer after the rfp without modifying the agreement. I would have responded to the rfp for the silk mill would I have known an additional 2 million grant was going to be added along with koz status. So. Considering both of these happened what modifications were made to the agreement? None I bet because the process is rigged. Have the state ethics board look into that and make a ruling!

Anonymous said...

Wow. The city have the developer an additional $2million plus the koz after the award was made? Is that what you are saying?

Bernie O'Hare said...

Hey Sal, cut the nonsense. This is factual. You have a Redevelopment guy who sits on the ZHB and who was a realtor for an outfit in the west ward and is now a realtor for the latest fair-haired boy. If you think that shouldn't raise a few eyebrows, you're nutz. You fancy yourself a Roman history buff. Caesar, confronted with accusations about his wife's fidelity that were almost certainly untrue, divorced her immediately. "Caesar's wife shall be above suspicion."

Learn from history. This is on its face a bad thing.

Anonymous said...

Exactly

Anonymous said...

This smells

Anonymous said...

I would do a rtk for all of this guys emails. FYI - in Easton we hire a part time community development specialist but yet a full time director for the silk mill along with engineers.

Anonymous said...

Yes. Learn from history. Beware those whose ethics have been found wanting and lead to real harm to clients. His mentor, the king of fraud, sets his standard for business dealings. What a joke.

Bernie O'Hare said...

MezzacRaZY, your personal attack has nothing to do with the issue being discussed. You must be in a bad mood. Have the Sheriffs visited you already?

Sal Panto, Jr. said...

The inaccurate statements here cease to amaze me. A full time director for the Silk project? Name that person. And BOH i am not "nutz." Give me some facts instead of innuendo. Yes the individual serves on the ZHB but you yet to cite one vote he has cast for or against VM. As for the anonymous comments that are entertained here they also lack facts. We first began our quest for a KOZ at least four years before Silk was awarded. The school board turned us down three times before we finally got approval. The state grants were also awarded long before VM even came to Easton. But why confuse you cowardly annons with the facts.

.

Anonymous said...

Now, I'm confused. Do we want Sal to divorce someone? I don't think that's gonna fly

Anonymous said...

Sal, was the Governor Wolf building ever listed for sale? I remember it being rumored to be going for sale, then all of a sudden the city had an unnamed buyer lined up for the county, and by the time the public heard who it was, it was a done deal. On that note, Mark has been tackling the big projects in Easton that have been eyesores for years. At least he is getting them done.

Sal Panto, Jr. said...

Anon 7:31 You would have to ask the County, Neither the city nor I had any involvement in the sale. As a matter of fact, we looked at the building as a possible location for City Hall but backed off because of the condition of the building.

Bernie O'Hare said...

", Mark has been tackling the big projects in Easton that have been eyesores for years."

I see. The latest Switlyck is getting things done, so what's a little ethics problem. I have a very dim view of the situation and the Mayor's casual attitude about it, along with his condemnatory "you don't know anything" language to anyone raising questions about it. That's not being transparent, Sal. That is shutting up dissent.

You have a City Redevelopment employee who sits on the ZHB and is a realtor for the firm that appears to occupy most favored developer status in the City.This facts alone, with nothing else, scream out conflict of interest. This city employee was also realtor to an outfit hooking people up in the west ward. how do I know he did not use his influence or inside knowledge to grease a few wheels? You ask, "Where's the beef?" In other words, don;t say a damn word unless you have 100% proof. That is not how things work, and you know this. The situation is an ethical nightmare, and it is time for you to end it. Sorry.

Anonymous said...

I moved to easton a year ago, it surprises me that the mayor of easton doesn't see the issue considering his thoughts on this being a country of laws. Apparently a home rule charter makes the mayor king, and he can use his discretion when conduct clearly violates the codified ordinance. This town is sleeping.

Sal Panto, Jr. said...

BOH, one last word from me. The issue of an appearance of conflict is important to me and you know that. I have already indicated that we will request this issue to be addressed to the State Ethics Commission and if they feel it needs a "full investigation" as you say then fine. Even though I know the individual has no decision making authority or influence as to who gets projects, who gets approved, or who gets grant or who buys the houses we rehab I will place my personal attention on the matters to assure myself that every decision is transparent and ethically acceptable.

Most of my comments are not even about this issue of a potential conflict. They are about how ill-informed people jump to conclusions and make statements that are disparaging to good individuals doing good work in our city. So when I see these comments that some readers may take as being accurate I feel compelled to at least set the record straight.

I now see why most public officials just ignore blogs and blog entries like yours. I would come on your blog from the viewpoint of being transparent but I believe the best thing to do is to do what others public officials do and not read or participate.

So thanks you for providing all of the keyboard warriors a venue to vent their sheer ignorance and cowardice and if you truly want to report facts my door and all of our records are always open.

Have a great day and don't forget that this weekend is Heritage Day in Easton when we celebrate the fact that Easton was one of three cities chosen to have the Declaration of Independence publicly read (July 8, 1776).

Anonymous said...

Investigate those redevelopment authority records and you will get some stories. Mulligan claimed he could do the silk mill before the addition of KOZ and $1.5 million dollar US grant. So why did he need it. Mulligan was quoted in a local paper as saying " I never go back on my work" - Bullshit. He did it here. He led everyone to believe he could do the project and then the city gave more and more. And using that grant money so Mulligan can leverage tax credits and pay himself on top of that is absolutely wrong Mayor! And you know it. Election is around the corner - Republicans are foaming at the mouth over this. It will all come out. Then what?

Sal Panto, Jr. said...

Anon 1:45 you are correct that the CITY received an additional $1.5 million grant for the public street improvements through the project. We applied for that grant long before he was awarded the rights to the development and were denied the first time. I personally lobbied hard for that grant for the city. The street improvements needed to be done and the city doesn't and didn't have the money to complete the project. Pleas estate facts and not hearsay. Just call me and
I will gladly set the record straight. This is a great project for the city and will bring good working people to the West Ward. You are probably one of the naysayers who 5 years ago were saying this project would never be done. And by the way. VM only has the rights to the first three phases. You are more than welcome to submit your proposal for phases 4, 5, and 6 and you had every opportunity to give us a proposal for the first three phases. They were all advertised publicly.

Again, there were no favors or special gifts given to VM and they have been great partners in our resurgence.

Bernie O'Hare said...

"I will place my personal attention on the matters to assure myself that every decision is transparent and ethically acceptable. "

Thank you very much, Sal. I appreciate your willingness to go the exrtra mile. I casn't ask for more than that, and won't.