Last week, the New York City based developers of the long vacant Dixie Cup building presented their plans to NorCo Council. Skyline Investment Group is seeking a tax incentive known as a TIF. Under this kind of a tax break, the owner can divert increased real estate taxes to pay for improvements over a period of 20 years. In exchange for this benefit, they will make 10% of their apartments "affordable" or kick in a little over $1 million that the county can use for affordable housing elsewhere. As generous as that may be Skyline has one more request.
Yesterday, Skyline was at the county's General Purpose Authority (GPA) meeting. Wilson Borough actually owns a small triangular piece shown on the tax map you see above as 1C-1. It is 0.35 acres located along the eastern side of 25th Street and is actually the beginning of a bike path that extends from the Palmer Bike path and hooks up with the Tatamy Trail. Wilson Borough wants Skyline to take it over and move the giant Dixie Cup that currently sits on top of the factory to this triangle, where people can offer human sacrifices or whatever to the Dixie Cup gods. Skyline wants GPA to help with the purchase of this tract. Specifically, it wants the NorCo to assume ownership of the triangular lot, and then eventually pass it on to Skyline.
It's unclear to me why this is necessary.
Tina Smith, NorCo's Director of Economic Development, told the GPA that "[I]t's a great project and we hope to see it come to fruition."
Skyline Investment Group descriobes itself on LinkedIn as "one of the premier nationwide commercial real estate finance firms. Senior debt, preferred debt, student housing, construction, multifamily, hospitality, retail, industrial, office, net lease, credit lines and assisted living financing is part of our core business." I'm unaware of any projects in which it has been involved.
Claudia Robinson told Council member Lori Vargo Heffner, "It;s a small industry. My area is historic rehabs." Though she presented on behalf of Skyline, she actually is employed by another firm. She did identify a major investor, but I was unable to catch the name. She stated that monthly rents for 1 BR apartments would be about $1,900.
23 comments:
So it appears this is a public parcel that Wilson Borough no longer wants to maintain and want the developer to take ownership. Is this needed for the project? If not, why would the developer pay for a tract of land that may not be needed. I think it is great that there is close access to a bike trail, however, maybe the developer does not need it nor really wants to pay for it. Sounds like planners want to save the cup, but don't want to be responsible for the land it sits on.
Would they like a backrub and a free steak dinner as well. Why would the county get involved? Let Wilson give it to them directly, why involve the county.
The one million is peanuts compared to what they will make in profit and the disruption they will create with over four hundred more apartments and commercial space. The traffic next to the high school will be horrendous not to mention butler street.
Why give another developer over a decade worth of tax breaks while homeowners receive none. Mr. McClure should stop looking for headlines, stick to county services and get the tax he needs for county services instead of giving tax breaks to millionaire developers.
Don't hide this handout to the wealthy behind "affordable housing".
Devilish details. The details are quite concerning. Dixie left the area. Screw the cup, unless they make toilets and urinals for the place in a Dixie cup motif. Then we can piss and shit on the brand that left the area for cheaper pastures. F the cup.
The space should be dedicated to Woodrow Wilson. Sure he was a notorious racist who resegregated the federal government, telling blacks they should have voted more wisely. But he hated Jews and leapt into a war he promised he wouldn't. On balance, that makes him a perfect Democrat for today's times. Erect a statue of Wilson and adorn it with that hilarious caricature of Native American head dress the high school celebrates. Princeton is trying to disappear their former president, citing that his "racist thinking and policies make him an inappropriate namesake for a school whose scholars, students, and alumni must be firmly committed to combatting the scourge of racism in all its forms." Our beloved Wilson Borough, however, should stand athwart its racist history and go full Wilson.
The idea that anyone wants to keep/redo the Dixie cup boggles the mind. Old people nostalgia. Thank goodness there wasn't a phallus on top of that building.... ;)
P.s. 1 Million dollars seems awfully cheap to get the developer out of the affordable housing requirement. Would Wilson then have to make up the 40 affordable units elsewhere? Or is it just based on any new developments (where the 10% affordable housing is applicable)?
You mentioned the traffic which I agree will definitely increase, however what would the traffic be like if Dixie was still in operation, look at the size of the Dixie parking lot that was for employees. Wilson boro residents better wake up their tax base is shrinking….
The TIF is generally 10 years with yearly tax increments of 10%, so my assumption would be a 20 year tiff with be 5% increase yearly?
Also, has any other developers secured a 20 year TIF before?
Bernie:
Has anyone done research into this developer? What other projects have they done? Anything of this size? Do they have a reputation as a good operator? I would think that A LOT of research should be done before McClure hands out our tax dollars to them!
4:40 Am...I totally agree! How many times do we have to go down this road of giving tax incentives to developers for this project. If Joseph Reibman would sell the property for a reasonable amount, and not try to get every cent for it, a responsible developer wouldn't need OUR money!!
A one time One million dollar payment in lieu of providing 40 affordable housing units is just unconsciable. That equates to less than $50,000 a year for twenty years. This is a pure case of shifting the burden to someone else, somewhere else in the valley. With average rents right now for a two bedroom apartment running around $2,000 a month, just do the math and see what a windfall this TIF would be for the developer.
Bernie, The proposed property that Wilson Boro owns is noted on the map with the red markings? Where is that in today's frame? Is that the little triangle of land in front of the law office on Northampton and Ferry?
It appears that nothing will be done, yet again. Armando will be blamed.
It will be entirely on brand, for the Borough and School District to make a mess of this.
Someone once told me a story some guy named Wayne of Wilson used to bathe in the actual Dixie cup. Curious how true it is?
The county has legal responsibilities it cannot meet. It has serious pay issues for its staff. However, MacClure loves to focus on his economic development stuff which is not a required county service. He wants to hand out checks and have press conferences.
This handout to another developer is hidden behind the "affordable housing" banner. Something the county is not required to do. He can't provide the Serivices the county must provide but he would rather cultivate another donor. Stop making this about affordable housing. This is about a twenty-year county tax break to another millionaire. McClure like the valley economic people is responsible for the overdevelopment of the county. They sat back and did nothing. Now McClure claims to have stopped warehouses. Where was he for the last eight years? This is pure BS! Over four hundred new unaffordable apartments and thousands s more cars and trucks.
"Bernie, The proposed property that Wilson Boro owns is noted on the map with the red markings? Where is that in today's frame? Is that the little triangle of land in front of the law office on Northampton and Ferry?"
JJ, I apologize. I neglected to include the tax map to which I referred. As you can see, 1C-1 is a triangular tract on the east side of 25th Street. It was at one time part of the Weiss grocery tract
"Also, has any other developers secured a 20 year TIF before?"
Yes, the TIF in South Bethlehem went on for 20 years.
7:57 sounds like end stage something or other, no ? Sad. Condemn Wilson, Palmer and Easton to another generation of an eyesore that will eventually degrade so significantly that nothing willl be done other than demolition.
Thousands? Even if you figure 2 cars per unit, that's only 800.
$25k payment in lieu of (PILOT) the developer actually providing the affordable housing? Where did this number come from, the developer? Bethlehem raised its payment in lieu- from the administration-proposed 25k to over 50k per apartment - in the Southside LERTA, and even this is not enough. Other areas like Reading and College Park require over $100K per affordable unit not built, to be given to an affordable housing fund. In Bethlehem , it is very vague just how and where these LERTA PILOT payments will be used and who decides. I would not celebrate $25k per apartment as anything but a developer-driven virtue signaling. Put some muscle in it Easton, it will not drive this developer away.
Is economic development a county responsibility? Shouldn't the county stay in its lane? It seems to struggle with handling it's core requirements. This makes no sense, unless there's bribery or some other nefarious activity at work in the winners vs losers pick 'em derby of dirty politics and very poor government. This deal reeks of potential illegality.
3:42, What “core county function” is the County “struggling” to provide ?
"Thousands? Even if you figure 2 cars per unit, that's only 800."
Plus, commercial spaces and visitors. Stop being such an executive toady. Grow a backbone!
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