Placido Antonio Cantelmi, an Italian immigrant, started a hardware business on Bethlehem's South Side in 1922. That hardware store, located at 521 East Fourth Street, is still going strong today. But while you're buying penny nails on the first floor, a new tech center is being set up on the second. Taking advantage of over $1 million in funding available for properties that are both in a Keystone Innovation Zone (KIZ) and an Enterprise Zone, Bethlehem is hoping to lure a few new tech companies, and Cantelmi's is the best fit. One of only six properties available in this combined zone, Cantelmi has over 8,000 sq ft available on its second floor. Rents are only $2.55 per sq ft, and there are 30 off-street parking places.
Bethlehem’s enterprise zone coordinator, Bekah Rusnock, told City Council's combined Finance and Public Works Committee on March 14, that $1.02 million from loans to previous tech centers will be used to replace a 100 year-old elevator and provide low-interest loans of up to $100,000 to start-ups.
Lehigh Valley Economic Development's Steve Melnick added that businesses in a KIZ are also eligible for tax credits up to $100,000. "It keeps the companies flush with money. It keeps the companies close to Lehigh University and Northampton Community College," he argued, noting that 45 companies have started in South Bethlehem thanks to these kinds of programs.
DCED Director Joe Kelly told City Council that no vote is needed, but they were being told because "this is a very important City project."
The only question raised was why the City wold use Bethlehem Economic Development Corporation (BEDCO) to fund this project. Bethlehem civic activist Bob Pfennng complained, "Every time I hear the word BEDCO, I get a little upset as a taxpayer because every time I try to find out something about BEDCO, I run into a brick wall." He added there are no public meetings and financials are nonexistent, and asked that Council do something to make BEDCO "a little more transparent."
Bernie-
ReplyDeleteIsn't anyone upset at this cozy business relationship? Keep up the good work revealing what's going on.
I'd like an Enterprise Zone to keep me "flush with money."
ReplyDeletePlease note, does this Steve guy say, "Flush with TAXPAYERS money."
No! Yet another example of the spin on free money vs. the exhausted and increasingly troubled taxpayer.
who runs bedco? who is on the board? how much money do they control? where did the money come from? What is this woman becka's qualifications? What is her salary and where does that money come from? what is the administrations role in this? what control, if any does council have over this as no vote is required? sounds like a tightly held slush fund.
ReplyDeleteCantelmi = Callahan?
ReplyDeleteMoney is a finite resource. If the govenrment directs this resource to a specific enterprise, what other, potentiall better, invenstments are not being made.
ReplyDeleteThis activity makes the markets and economy less efficient.
And, if the space is so attractive, why doesn;t it already have a tenant
"Cantelmi = Callahan?"
ReplyDeleteSome kind of cousin thru marriage, but I do not think there is any love lost.
Anonymous 9:13 AM said...
ReplyDelete"And, if the space is so attractive, why doesn;t it already have a tenant"
I say, try owning and operating a local hardware store in competition with Lowe's and Home Depot! Then see how much profit remains after purchase of the building, renovating 1st floor and all other expenses. Little to pay for an elevator & rehab of the 2nd floor. Business investment to bring 60 jobs (taxpayers) to South Bethlehem is a whole lot less expensive per job than President Obama's supposed job creation fiasco.
Rick Cantelmi, Dad before him and staff have been providing our city with products for nearly 100 years with class and great personal service. I hope this current investment keeps them going well beyond the 100! Think about it!
bo r u going 2 answer anon7:31? sounds like interesting ?????????s
ReplyDeletebethlum is imploding because of an uneducated and careless electorate. jc and his rubber stamp council will succeed in their graft and corruption because the people are ignorant
ReplyDeleteAnon 4:24,
ReplyDeleteUnfortunately, I do not have all the answers. To some of those questions, I believe there are no answers.
I would like to explain how the KIZ tax credit is not free taxpayer money. Allow me to provide a hypothetical example. If you run a qualified business within the KIZ and earn revenues of $75,000 in 2011 and $165,000 in 2012, a tax credit is based upon a percentage of the difference between both years.
ReplyDeleteYou can then pay your taxes with a portion of the credit and sell the balance to get cash to reinvest in your business. The key word is revenue. You must earn the money first. This is not a taxpayer give away. The money that is reinvested usually goes to local vendors who supply these young startup businesses with goods and services.
Thanks Steve, I am opposed to KOZ, but consider this a good program with a proven track record.
ReplyDelete