After a great weekend of cycling fun in Philly, helped by outstanding weather, I finally had the opportunity to watch the public hearing for the tax break (known as a TIF) at the long vacant Dixie Cup factory in Wilson Borough. What I saw was pretty much a rehash of arguments previously made. County Council will vote on the TIF ordinance itself on November 6.
If it passes, it will be a $20-29 million windfall for the developer of the long vacant Dixie Cup factory in Wilson Borough. It will enable Skyline Investment to float two series of bonds for a proposed 405-unit luxury apartment complex and use the projected increased assessment to pay for the improvements made over a period of 20-25 years. During this time, taxing authorities will continue to receive the taxes on the existing assessment, but they will have to wait a quarter century to see receive the taxes it should receive when improvements are made.
In addition, Skyline will also use historic tax credits and has already received a state grant for asbestos removal.
It's nice to be a picked winner
Both Wilson Borough and Wilson Area School District have already agreed to this windfall.
Unanimously.
Skyline principal Brian Bartee and his bond counsel, Jonathan Cox, monopolized much of the hearing. Obviously, they're all for it. So is Doylestown attorney Richard Groff, who gobbles up distressed properties at tax and Sheriff sales and then flips or rents them out. Obviously, high rentals at Dixie will make it possible for him to charge more rent at his Wilson Borough and Easton properties.
Support from those who benefit financially is understandable. Unanimous support from Wilson Borough and the school district, however, is either incredibly naive or downright stupid. In Wilson Borough's case, I think it's stupidity. This is the municipality that uses Stan Margle, who is facing multiple drug charges, as their solicitor. He even spoke for the borough at two county meetings where he actually insulted one of the County Council supporters.
Brilliant.
In the case of the school district, the rationale offered by superintendent Harrison Bailey III (that's Doctor Bailey to you), was downright mystifying. He said students would receive an education by watching union contractors as they install drywall during the year or so that it takes. I bet. They would also be able to meet the developer and learn what it means to be an entrepreneur. Is that worth 20m years of tax breaks?
In response to questions from Council member John Brown, Dr. Harrison Bailey III said it costs about $22,000 a year per student. Brown indicated that some tenants at Dixie will have children who attend school, and the school district will have to pay for their education. Moreover, the school district will miss 20 years of increased property tax revenue Dr. Harrison Bailey III said taxes at Wilson have only gone up 0.66% for the past five years, but his doctorate certainly has nothing to do with math. This year alone, taxes at Wilson have gone up 3.5%. His doctorate has nothing to do with business, either. Dr. Harrison Bailey III conceded he did no analysis or study on exactly how much this TIF will cost the school district. People in the audience apparently shouted out that the school board did a study, but I certainly find it off that Dr. Harrison Bailey III had no knowledge of it.
This ordinance will be supported by Council members Ken Kraft, Kelly Keegan and Jeff Warren for one and only one reason - trade unions. Skyline Investment's Brain Bartee will use union labor. It matters not that this labor will be used to develop housing that only New Jersey and New York immigrants can afford. It matters not that this will just exacerbate the affordable living crisis. A year of union labor makes it all worth it to them.
I'm less certain about the others.
No comments:
Post a Comment