LVNews Features McClure Call Concerning Dixie TIF

I told you last week that NorCo Exec Tara Zrinski supported a tax break for 409 luxury apartments at Wilson Borough's vacant Dixie Cup factory. Despite her support, the tax break failed. One of the No votes came from Council member Theresa Fadem, who stated from the dais that part of the reason for her No vote was because she felt pressured by a telephone call that former NorCo Exec Lamont McClure made to Fadem's boss. He was very reluctant to speak about it with me but was a little more forthcoming in a story published by Lehigh Valley News yesterday. Before I get into that, I want to tell you how Zrinski reacted. 

During the meeting, and after the TIF had failed, Zrinski was passing out papers to Council members concerning two new positions she was seeking (and later got) at Gracedale. When she approached Fadem, she reported apologized to Fadem. According to another Council member, who was in earshot, Zrinski said she was sorry about what had happened to Fadem and was unaware that McClure had called her boss. Zrinski obviously recognizes that, whatever the intention, the telephone call was highly inappropriate and was designed to pressure Fadem. 

Now let's look at what McClure said to Lehigh Valley News. 

He claims he decided to call Hellertown, which has nothing to do with any TIF and is miles away from Wilson Borough because Borough Manager Cathy Hartranft would "understand the municipal perspective." 

I could see his nose grow an inch or two when he offered this lame excuse. Whether Hartranft would or would not understand has no bearing at all on what Wilson Borough, located 10 miles away, was seeking. It is clear to me that McClure called Hartranft in an attempt to pressure Fadem. 

McClure denies knowing that Fadem is employed by Hellertown. That's nonsense as well. McClure knew the background of every candidate who ran for county council last year. You can add another inch to that nose. 

Then McClure went on to say that Fadem is a "very close ally" of Council member Lori Vargo Heffner, whom he despises because she only went along with about 90% of what he wanted when he was Exec. 

Wait a second. McClure out of one side of his mouth claims that Fadem is a "very close ally" of Vargo Heffner, but out of the other side of his mouth has no idea where she works.

Add another inch to his increasingly prominent proboscis. 

Finally, he claims that Vargo Heffner has endorsed Ryan Crosswell, one of his rivals in the Pa. 07 Congressional race. 

Add another inch. 

Vargo Heffner has endorsed no one. She is President of the Pennsylvania Federation of Democratic Women, which makes no endorsements in contested Democratic primaries. She told me that she thinks it would be improper for her to endorse anyone, not even the sole woman in that race, Carol Obando-Derstine. 

It is very clear to me that McClure's call to Hellertown's Borough Manager was designed to pressure Fadem, and this is consistent with his past behavior. 

I also want to draw attention to the last sentence of the Lehigh Valley News story, which notes in passing that all three taxing bodies must approve a TIF before it can move forward. That is untue. Two of the taxing bodies can still moving ahead, which is exactly what happened with the Hamilton Crossings project in 2014. The County said No, but the township and school district moved forward without county participation. 

NorCo Elections FAQ Regarding May 19 Primary

 

[Northampton County, PA] – The Northampton County Elections Office is providing a list of Frequently Asked Questions (FAQs) for the Primary Election on Tuesday, May 19, 2026. Q: What will be on the ballot? A: The Elections Office recommends all voters review the ballot before voting. You can view the Primary Election sample ballots for the May 19 election here: www.NorthamptonVotes.com Q: Who can vote in the Primary Election? A: Registered Democrat and registered Republican voters in Northampton County can participate in the Primary Election.   Q: How can I check to see if I’m registered to vote? A: You can check your registration status at www.vote.pa.gov.   Q: Where do I vote in person? A: To check your polling location, use our "Find Your Polling Place" tool at NorthamptonVotes.com. If you arrive at an incorrect polling location, each precinct will have QR Codes available to help you find the correct polling place.   Q: Can I vote by paper ballot? A: Voting by paper ballot is already available in Northampton County. If you choose to vote by a paper ballot, you may: Utilize Ballot-on-Demand in the Election Office at the Government Center (669 Washington Street Easton, PA 18042). Ballot-on-Demand will be available in the Elections Office: The LAST day for Ballot-on-Demand will be Tuesday, May 12 (8:30 a.m. - 5:00 p.m.) Request a paper mail-in ballot. You can return mail-in ballots by mail directly to the Northampton County Election’s Office at the Government Center, or at one of the seven secure ballot drop boxes located around the County. The last day to apply for a mail-in or civilian absentee ballot is Tuesday, May 12, at 5:00 p.m.   Q: Can I vote by mail? A: Yes. Act 77, which was passed in 2019, allows for no-excuse mail-in voting. Applications for mail-in or civilian absentee ballots are available in the Elections Office or at Mail-in and Absentee Ballot (pa.gov). The last day to apply for a mail-in or civilian absentee ballot is Tuesday, May 12 at 5:00 p.m.   Q: Why did I get an email saying my application for a mail-in ballot has been declined? A: There are various reasons this may have happened (i.e., duplicate application, lack of verifiable ID, etc.). If you are concerned about any of these issues or have any questions, please contact the Elections Office at 610-829-6260 or election@norcopa.gov, for someone to assist you.   Q: When will mail-in ballots be sent? A: The Elections Office began sending mail-in ballots during the last week of April. You can check the status of your ballot online at Online/Absentee Ballot Tracking (pa.gov).  You should review your mail-in ballot to make sure that it is for the proper precinct and party.   Q: I’m worried about getting my mail-in ballot back to the Elections Office on time. A: In order for your ballot to be counted, all ballots must be returned to the Elections Office by 8:00 p.m. on Election Day. We recommend voters return their ballot as soon as possible. Mail-in ballots can be returned: By mail, no postage stamp is required. If you plan to mail your ballot, we suggest putting it in the mail early. If there is only one week prior to the election, we recommend you return your completed ballot to a drop box or the Election’s Office to make sure it is received in time to be counted. Directly to the Northampton County Election’s Office at the Government Center: 669 Washington Street, Easton, PA 18042. At one of the seven secure ballot drop boxes located around the County (see next question). The County’s secure drop boxes were installed on April 28.   Q: Where are secure ballot drop-off boxes located in Northampton County?   A: Accessing any of the below drop-off boxes does not require going through security at any location.   • Washington Township Municipal Building (Interior Hallway): 1021 Washington Blvd., Bangor, PA 18013 Hours: Monday - Thursday 8:00 a.m.- 4:00 p.m.; Friday 7:00 a.m.- 3:00 p.m. Election Day: 8:00 a.m.- 4:00 p.m. • East Allen Township Municipal Building (Main Lobby): 5344 Nor Bath Blvd., Northampton, PA 18067 Hours: Monday-Friday 8:30 a.m.- 3:30 p.m. Election Day: 8:30 a.m.- 3:30 p.m. • NCC Fowler Family Southside Center (Main Lobby): 511 E. 3rd St., Bethlehem, PA 18015 Hours: Monday-Thursday 7:00 a.m.- 9:00 p.m., Friday 7:00 a.m.- 8:30 p.m., Saturday 7:00 a.m.-2:00 p.m. Election Day: 7:00 a.m.- 8:00 p.m. • Northampton County Courthouse (Rotunda): 669 Washington St., Easton, PA 18042 Hours: Monday-Friday 8:30 a.m.- 6:00 p.m., Saturday 9:00 a.m.-12:00 p.m. Election Day: 8:30 a.m.-8:00 p.m. • Northampton County Human Services Building (Main Entrance Vestibule): 2801 Emrick Blvd., Bethlehem, PA 18020 Hours: Monday-Friday 8:30am - 7:00 p.m., Saturday 8:00 a.m.- 2:00 p.m. Election Day: 8:30 a.m.- 7:00 p.m. • Northampton County 911 Center (Main Entrance Vestibule): 100 Gracedale Ave., Nazareth, PA 18064 Hours: 24 Hours/7 Days a week Election Day: Until 8:00 p.m. • Bethlehem City Hall (Main Lobby): 10 E. Church St., Bethlehem, PA 18018 Hours: Monday-Friday 8:00 a.m.- 4:00 p.m. Election Day: 7:00 a.m .- 8:00 p.m.   Q: How can I ensure the ballot drop-off boxes are “secure”? A: Ballot drop-off boxes provide a safe and convenient way for you to return your mail-in ballots. Each drop-off box is a secure, locked structure that is permanently anchored in place. Northampton County drop-off boxes have been evaluated to specifically ensure they are indoors, ADA compliant, either chained or anchored in place, and under 24-hour camera/surveillance, and allow County Sheriff’s Deputies to collect the contents of the box on a daily basis. All Northampton County drop-off boxes are operated only by election officials and County Sheriff’s Deputies.   Q: What can I do to ensure my mail-in ballot is accepted? A: The Elections Office reminds you to carefully follow the instructions included with your ballot. Remember to sign and date the outside of the return envelope.  “Naked” ballots—those not enclosed in the inner secrecy envelope—will not be counted. Mail-in ballots will be accepted if: The ballot is enclosed in the yellow secrecy envelope and sealed. There are NO identifying marks or symbols on the secrecy envelope. The return envelope is signed and dated on the back in the appropriate YELLOW boxes. The ballot is returned to a Drop Box (review the open hours above) or the Elections Office NO LATER THAN 8:00 p.m. on Tuesday, May 19. USPS postmarks DO NOT count if received after this deadline.   If your returned mail-in ballot has any defects which are discernable without opening the return envelope (for example you failed to sign or date the outside of the return envelope), the Elections Office may contact you and give you the opportunity to come into the Elections Office and “cure” (fix) the defect. If you come into the office for this purpose, you will be asked for your ID (does not have to be a photo ID).  Q: What kind of stamp should I use to mail my ballot back? A: Northampton County pays for postage on the return envelopes. You do not need to add a stamp.   Q: How do I know if my application has been accepted or my ballot has been received? A: Voters who sign up online at www.vote.pa.gov will receive emails about their application/ballot status. Voters can track the status of their ballot at Online/Absentee Ballot Tracking (pa.gov)   Q: Can someone else deliver my ballot to the Elections Office? A: No. Pennsylvania state law states that voters must only drop off their own ballot. If you come into the office, you may be asked for your ID (does not have to be a photo ID). If a person is physically unable to drop off their own ballot, someone else may drop off their ballot for them and will be asked to complete and sign a “Certification of Designated Agent” form. A copy of this form can be downloaded here Authorize Designated Agent Form (pa.gov).   Q: I requested a mail-in ballot, but now I want to vote in person at the polls. A: If you requested a mail-in ballot but now wish to vote on a machine, you must bring your mail-in ballot and the return envelope with you to your polling location. The Judge of Elections will spoil your ballot and ask you to complete a “Declaration to Surrender Ballot” form before allowing you to vote on the ExpressVote XL machine. Only then will you be permitted to vote on the machine. If you do not bring your mail-in ballot and return envelope to the polls, you can only vote by provisional ballot. The Elections Board will verify that you did not vote by mail before the provisional ballot can be counted.   Q: What time are the polls open for the Municipal General Election on May 19? A: Between the hours of 7:00 a.m. and 8:00 p.m. on Tuesday, May 19. If you’re in line by 8:00 p.m., stay in line, you will be allowed to cast your vote.   Q: Have the ExpressVote XL machines been tested? A: Our voting machines have undergone extensive logic and accuracy testing.   Q: Have any polling locations changed for this election? A: Yes. Northampton County Election Division is implementing the redistricting plan recently approved by the Court of Common Pleas in preparation for the Primary Election. Some voters will have new polling locations and/or district names for this election. All voters are encouraged to check their polling place in advance and can do so by using the “Find Your Polling Place” tool at: www.NorthamptonVotes.com. The below existing polling locations have been changed as follows:   Bethlehem 4 & 5– from St. John Windish Church to Bethlehem Visitor’s Center at Steel Stacks, 711 East 1st Street, Bethlehem Bethlehem 9 East– from Salvation Army to Liberty High School, 1115 Linden Street/ E. Fairview Street, Bethlehem Bethlehem 14-3– from St. Ann School to BASD Education Center, 1516 Sycamore Street, Bethlehem Bethlehem 15-2– from BASD Education Center to Lincoln Elementary, 1260 Gresham Street, Bethlehem Easton 2– from First Presbyterian Church to Easton City Hall, 123 S. 3rd Street, Easton Freemansburg– from Freemansburg Municipal Bldg, 606 Monroe Street to Freemansburg Elementary, 501 Monroe Street, Easton Q: Who should voters contact if they have problems or questions before or on Election Day? A: The Northampton County Elections Office: 610-829-6260 or election@norcopa.gov.

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UPDATED: Thresa Fadem Displayed a Profile in Courage in Voting No to the Dixie TIF

Last week, Theresa Fadem was one of the six NorCo Council members who voted against a tax break for the conversion of Wilson Borough's vacant Dixie factory into 409 luxury apartments.  She's one of four newbies - all Democrats - elected in November. Before voting No, she shed some light on the incredible pressures that all elected officials endure when facing a controversial issue. In a democratic form of government, that should be expected. But there's a difference between lobbying or argument and coercion or intimidation. Fadem made very clear that she at least felt that she was being intimidated into voting for the tax break. Here's what she said. 

I'm glad we're discussing this up here because this is a discussion of a very great scale, and it should take place here on the dais, in full view of the public. All right, our constituents deserve open, honest, dialogue, not private persuasion. Which leads me to feel compelled to address of recent action that I find deeply concerning. The former county executive contacted my current employer in what appears to be an attempt to influence my position on this matter. It's clearly a breach of professional boundaries. My responsibilities as an elected official are independent of my employment. And any attempt to leverage my workplace in an attempt to sway my vote is inappropriate and unacceptable. I was on the fence before, but I'll tell you right now, it's solid now.

Theresa Fadem is employed as Hellertown's zoning and code enforcement officer. Her boss is Borough Manager Cathy Hartranft. The former county executive is Lamont McClure, who was unsuccessful in his attempt to shepherd a tax break through County Council in November. 

Based on what Fadem stated at the meeting, former Executive McClure (now a Congressional candidate) called Hellertown Borough Manager Cathy Hartranft in an attempt to have Hartranft pressure Fadem to vote for the tax break. It's also clear that Hartranft in turn did talk about it with Fadem. She may have intended only to share her opinion and insight as a borough manager that a tax break would be good for another struggling borough. But she forgot that she is Fadem's boss, and anything a boss would say to a subordinate employee would place that person under intense pressure. This is clearly what McClure intended. 

If he was only interested in private persuasion, McClure could have called Fadem directly. Instead, he chose to put the squeeze on through Fadem's boss. This is clear intimidation. Another word for it is bullying. 

I asked McClure if what Fadem said is true, adding "that would be highly inappropriate if true." McClure first stated that he had no response. He later added, "I deny that I asked anyone to leverage her employment to get her to vote for the project - which is what [Fadem] implied by saying she was 'pressured.'"

Then why did he call the Borough Manager at all? Why wouldn't he just call Fadem directly? 

In addition to calling McClure, I called Borough Manager Hartranft. Her voice mail stated she returns every call, but she declined to return my call. She might claim this is a personnel matter, but I disagree. Any attempt to persuade her to vote for or against the TIF it is outside the scope of Fadem's employment with Hellertown. Whether knowing or unknowingly, she did exactly what McClure wanted. Fadem clearly felt threatened. 

In fact, I have since learned that Hartranft even sent Fadem a text about the McClure conversation during the course of the meeting. 

Finally, I spoke with Fadem. She understandably declined to add anything to what she said at the Council meeting. She's scared. 

And she's right to be scared. In the past, I have seen other Council members like Lorei Vargo Heffner and Ron Heckman attacked personally when they refuse to go along with 100% of what McClure wanted as Exec And it has already started with Fadem with some anonymous comments. 

The person this damages most is not Fadem, but current County Executive Tara Zrinski. She has worked hard at building bridges with Council, not just the Meadows Bridge.  When a Council member is bullied over a vote, that just destroys everything. McClure is no longer county executive. Zrinski is rendered ineffective when he continues to use tactics that have failed in the past.  He is now an assistant solicitor and has no business arguing for or against a policy. If anyone should be worried about job security, it should be him. 

UPDATED 10:38 AM: After this post published, Hellertown Borough Manager Cathy Hartranft called me. Shje acknowledged that she was, in fact, called by McClure. She indicated that McClure called her to discuss the TIF and the developer's willingness to provide $2 million for affordable housing. She said that immediately after the call, she told Fadem about his call because she wanted to be transparent. She herself had no opinion concerning the TIF. She acknowledged that Fadem's employment was in no way threatened and there was no intent to intimidate or coerce her. 

I believe Hartranft. But I also believe that Fadem, who is in a subordinate position to Hartranft, felt threatened. The call went exactly as McClure intended. 

Zrinski Has Good News (Gracedale) and Bad News (Jail)

At Thursday night's NorCo Council meeting, Executive Tara Zrinski provided yet another detailed report about what is happening in the county. Some readers dislike her presentations, but they're pretty much the same people who would attack her if she said nothing at all. "You've got five minutes," Council President Ken Kraft semi-joked before she started, but I appreciate the transparency. She had good things to say about Gracedale, but is very concerned about the plight of corrections officers at the jail. 

Gracedale. - Zrinski reported that the county nursing home underwent its annual inspection and only three deficiencies were found. She told Council that the lead surveyor noted progress over the past year but cautioned that the "official" report is still pending. She indicated the home was preparing for National Nursing Home Week (May 10-16) with a food truck festival to which everyone would be welcome. Zrinski stated nurses will be treated to lunch this week.

Aside from one deficiency at the beginning of the year, state Department of Health officials have found no violations in six visits responding to complaints this year.*Unfortunately, some employees have offered starkly different views of the facility. They agree that the survey was good but are unhappy. They state that on Nurse Day, agencies came and gave their people gifts while regular employees got nothing.  They cite three elopements since February, none of which were reported because the resident was found on the grounds. They also note that a hunting knife with spikes was found in a resident's room.

Jail. - Zrinski acknowledged that there are 62 vacant correction officer positions. She was at the jail last week and spoke with officers who are being routinely mandated to work 16-hour shifts. While that might be good for their paycheck, anyone who is forced to work a lot of overtime is bound to be a little less attentive, and that can be very dangerous at a jail. 

Why so many vacancies? "I can't help but think that's because the starting pay is $42,160 a year, which is about $20 an hour," she said. "This department is not alone, though. Stagnant pay and inter departmental compression issues exist in multiple departments and should be an issue that we remedy in next year's budget."

Closed Senior Centers. - Two of the county's 11 senior centers have been closed as a result of a $400,000 state budget shortfall. "For the seniors impacted by our senior center consolidation, I would welcome you to redirect your anger towards, uh, to your state and federal legislators. It is the state funding that is cut, and it is HR1 that has cut the funding at the highest level. We are consolidating because we recognize that the senior centers provide a valuable part in our community and the lives of seniors within our community. We have nine. We had 11. So, we do with what we have, and if we can get more funding next year, we will try to reopen whatever we can."

EMS/911. - Michael Leonard has been appointed permanent Director. 

Fiscal Affairs Director. - Zrinski had a candidate hooked, but he got away.  She was forced to reopen interviews and hopes to have someone soon. (Her pick for this position would have to be confirmed by County Council. )

Meadows Road Bridge in Lower Saucon. - She told Council the bridge would be open on Friday, and it was. It had been closed since 2018. 

____________

*) Unfortunately, some employees offer starkly different views of the facility. They agree that the survey was good but are still unhappy. They state that on Nurse Day, agencies came and gave their people gifts while regular employees got nothing.  They cite three elopements since February, none of which were reported because the resident was found on the grounds. They also note that a hunting knife with spikes was found in a resident's room. They claim they have been instructed against posting to this blog. 

Dixie Cup TIF Fails in NorCo for Second Time

Last night Northampton County Council rejected a massive tax break, known as a TIF, to kickstart the conversion of Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. This proposal was defeated in November in a close, 5-4 vote. But in January, four new members joined County Council, and the thinking was that they might be more receptive to this incentive. They weren't. By a 6 to 3 vote, the measure failed. Voting against this tax break were Lori Vargao Heffner, Dave Holland, Theresa Fadem, Nadeem Qayyum, Jason Boulette and Tom Giovanni. Voting YES were Ken Kraft, Kelly Keegan and Jeff Warren. They had also voted for it in November. 

I explained Tax Increment Financing (TIF) yesterday, but as a result of an error made last night by NorCo Exec Tara Zrinski, I feel compelled to do so again. She had stated, erroneously, that "the county continues to collect incrementally increasing taxes for the next 20 years." This is false. Instead, property taxes are frozen at their current level. Any increase in property taxes, resulting from new development is diverted to subsidize that development. Local public taxing bodies are denied the new revenue they would normally get from new development. Aside from Allentown's NIZ or an outright grant, a TIF is the most generous tax break a municipal government can provide. 

Sensing which way the wind was blowing and knowing that the public has woken up to what is going on, an effort was made to delay the matter. Zrinski, in her comments, said that she expected the ordinance would be withdrawn or tabled. And sure enough, a motion to table was made by Jeff Warren and seconded by Kelly Keegan, supposedly at the request of the industrial development authority. The obvious reason is to delay and slip it back onto the agenda when everyone goes back to sleep. 

The motion to table, which is undebatable, failed. Ken Kraft and Jason Boulette joined Keegan and Warren in seeking a delay. But Vargo Heffner, Holland, Fadem, Qayyum and Giovanni wanted a vote that night. Even after the motion to table failed, Kraft attempted one last time to push off the vote, but  Fadem and Vargo-Heffner insisted on a vote. 

During the courtesy of the floor, there were several speakers.  I will summarize a speaker from each side. 

Wilson Borough resident Armando Moritz-Chapelliquen urged a No vote for the following reasons: 

Vote no, because the county, the borough, and the school district need the $26 million over the next 20 years.

Vote no because the developer has already been awarded over $1.3 million in state and county funds.

Vote no because the remediation of the site is not a blessing. It is a basic responsibility of any property owner, one that has been neglected by Wilson Park LTD, the previous owner, for over 40 years.

Vote no because Wilson Borough hired a consultant to evaluate the TIF, and that consultant's report has not yet been publicly disclosed.

Vote no because the borough is on the record saying they'll go ahead with the tip, whether you approve it or not.

Vote no, because it is an outrage to provide a tax benefit for luxury housing in a school district with the third fastest increase in the poverty rate in the Commonwealth of Pennsylvania.

Vote no because there will be no affordable housing units on site.

Vote no because the county should not be the business of building housing, or, if you prefer, vote no because the county should be in the business of building housing. But $2 million isn't enough to replace the units that would otherwise go into a redeveloped Dixie.

Vote no, because tax revenue should go towards supporting the most vulnerable among our neighbors.

Vote no because the developer, because a developer who can't make this project pencil out, maybe shouldn't have spent $11 million on a site that was assessed at less than $3 million.

Vote no because the Democratic Socialists of America oppose it.

Vote no, because the Northampton County GOP opposes it.

Vote no, because any Democrat who cares about affordability would never support giving $26 million to a luxury housing development.

Vote no, because economic development and community development are intrinsically connected.

And anyone who tells you otherwise doesn't know what they're talking about.

And finally, vote no because the development of the Dixie Cup site is an inevitability..

Countering Moritz-Chapelliquen, NorCo Exec Tara Zrinski argued that 

First, the Dixie Cup project is a brown field development. That means it is more expensive because of the environmental remediation. And that damage happened decades ago. In this case, underground tanks, asbestos, radon, and contaminated soil were removed at the cost to the developer of $35 million. The TIF only offers a fraction of recovery for him.

Once again, I am compelled to correct yet another misstatement. According to the TIF ordinance itself, Exhibit I, the remediation cost is $8 million, not $35 million. Moreover, he would be getting $5.7 million back directly from the TIF. In addition, he has already been awarded $1 million in outright grants for remediation.  Instead of listening to a developer, Zrinski should be reading the ordinance. 

Zrinski also made an argument for being kind to the rich: 

I don't want to gloss over the iniquities within our society. I think we all realize they are real, but that does not mean that any alliance at all to someone with wealth is a betrayal of the working-class families or the poor. This is a false narrative that pits the rich against the poor, driving a wedge between the two further. There is no diametric opposition that is mutually exclusive.

There are a few people in our community who are using the Dixie Cup Project for self-serving purposes, and twisting comments made in this very room. When it comes to housing, we have to say yes to affordable housing. But not to the exclusion of other projects that would not ever come to fruition but through government assistance.

During the meeting, Council members Theresa Fadem and Dave Holland both indicated that they had received "unsettling" pressure to vote for the TIF. I am looking into these allegations, which I consider serious. 

I'll have more about this meeting and the committee hearings next week. 

The Dixie Cup TIF and the "But For" Standard

Tonight, Northampton County Council is poised to act on a massive tax break, known as a TIF, to kickstart the conversion of Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. Though this proposal was defeated in November in a close, 5-4 vote, a new County Council with 4 new members might see things differently. The latest scuttlebutt, however, is that developer Skyline Investments wants to pull its application and go it alone with Wilson Borough and Wilson Area School District. 

Aside from Allentown's NIZ or an outright grant, a TIF is the most generous tax break a taxing body can give to a developer. As Good Jobs First explains it, Tax Increment Financing is a geographically targeted economic development tool. It captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development. That diversion means local public services do not get the new revenue they would normally get from new re/development. 

In the case of the Dixie Cup site, a TIF will enable developer Skyline to use $26.5 million or more in anticipated real estate taxes increases to finance the cost of the project and pay it back over 20 years. During this time, participating taxing bodies will be denied the opportunity to collect any increase in real estate taxes to pay for its own operations. 

This TIF, by the way, is in addition to outright grants for this venture. Skyline has already been awarded $1,000,000 from an RACP application in 2024 and this year. It has received $163,257 from a DCED Multimodal Transportation Funding Grant and a $175,000 Greenways, Trails and Recreational Program grant. It is seeking even more grant money from PennDOT, DCED Mixed Use Housing Development, another DCED Greenways grant, another DCED multimodal transportation grant, and Pa Historic tax credits. It also wants $28.5 million in federal tax equity credits.

According to the proposed ordinance Exhibit I, the TIF bond will reward Skyline $4 million as a "developer's fee," and his architect will collect $5 million. Another $3.235 million in soft costs is just listed as "fees" with no additional explanation. I have no idea where that money is going. 

Nearly two years ago, I pointed out a number of red flags about the bona fides of Skyline, a private equity firm. Not only has this firm never developed anything, but it falsely claimed to have built the "Louix," a nonexistent project. 

I have noted on multiple occasions, and as recently as three weeks or so ago, that 405 luxury apartments will actually exacerbate the workforce housing crisis. 

But the main reason why a TIF should be denied is because the developer, by his own admission, has said he doesn't need the county's help. In February, he was specifically asked by Council member Jason Boulette whether he needed the county's help.  "It really means a lot to us to have the county support and buy-in as well." answered Bartee. But when pressed he acknowledged that "[t]here are other ways to have the project move forward." 

If he does not need the TIF, granting it would technically be illegal. Under the Tax Increment Financing Act, a TIF can only be granted when development of the project is economically or physically unfeasible "but for" the tax break. This is a prerequisite for TIF approval. When a developer stands up before a taxing body and asserts that no TIF is needed, as Bartee has done, it really should not be granted.