Back in January, Allentown's Redevelopment Authority (ARA) voted to issue what is known as a Request for Proposals (RFP) for the old toy factory located at 725 10th Street. Amazingly, two then members of this five-person board (Jessica Ortiz and Christopher Raad), just happen to be realtors. No conflict there.
Unlike a sealed bid, a request for proposals gives the selectors a lot of wiggle room. They can actually award a project based on factors other than price, though I'd hope that a governmental entity would at least try to be frugal.
Surprise, surprise! That's not what happened with the Toy Factory. There were two proposals, and the ARA is going with the one that makes the least sense, at least for now. A lawsuit recently filed by Nat Hyman, whose proposal was rejected, has thrown a monkey wrench into things.
Though he actually lives in Allentown and is one of the very few developers who actually has a track record of successful projects inside the Queen City. But he's no ass-kisser and generally refuses to bend the knee to those local governmental officials who can be both supercilious and officious.
Hyman proposed buying the Toy Factory for $410,000, about $10,000 more than it cost the ARA. The stated purpose of the RFP was to create workforce and affordable housing. Hyman proposed 20 affordable apartments and would be able to provide parking on the site with no need for off-street parking.
Hyman has a history of 41 projects creating 1,480 apartments. None of these has ever required any taxpayer assistance, no matter how blighted the property may have been.
What about the other proposal? That came from Warren Lim, another realtor who has done 4 projects with 26 apartments. Unlike Hyman, his deal is contingent upon his ability to obtain financing for $1.39 million. Lim had two alternatives. On both of his options the ARA would lose between $50,000 and $100,000 over what it spent to acquire the toy factory. Option A would provide just 6 apartments, a daycare and no off-street parking. The other would create just 12 apartments with no on-site parking.
It gets better. After both proposals were submitted, Lim was called in for a back room meeting with three of the five authority members, which certainly appears to be a Sunshine Act No No, along with staffers like Vicky Kistler, who reputedly smeared Hyman for daring to insist in an unrelated matter that a homeless encampment was a public safety nuisance.
After that back-room meeting, the ARA decided that Lim, and not Hyman, was the best choice. That's right. They went with the project under which taxpayers will actually lose money. They are backing a project that is contingent on financing. They are backing a project that will result in less affordable housing.
Along the way, Alan Jennings, who participated in that private meeting along with a quorum of the authority, condescended from his self-adulation to instruct Hyman to apologize for telling the authority that they are full of shit. (figuratively, of course).
Hyan sued instead.
By the by, the authority also awarded realtor Lim the project at 540 W Hamilton.
