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Nazareth, Pa., United States

Monday, December 05, 2011

Tax Breaks For Reilly and Pals, But No Books For Allentown Kids

We now have the ability to fund J.B. Reilly's new building using state tax revenue, but guess what? According to a Morning Call report, kids in Allentown School District are unable to check out books because of lack of state and local funding.

What's wrong with this picture?

I know, I know. They need no books (or newspapers) for their future jobs as fry cooks and as ticket takers for the Allentown Phantoms. Literacy is passé.

I was at William Allen High School today for a kids' basketball game. It was sad. As recently as three years ago, the 'Lil Canaries dominated. But all the decent athletes have bolted. Some play for East Side. Some don't play at all. They're passé, too, What's left is a broken team with a broken backboard. The score you see in this picture was at halftime. Mercifully, the board was started over the second half, and the clock kept running.

By the way, J.B. Reilly has an indoor half court basketball gym in his Saucon Valley home. I wonder if he enjoys using it, knowing that he obtained it at the expense of that backboard at William Allen, as well as the library books being denied to Allentown students.

I don't begrudge the guy his wealth or success. What I do begrudge is the diversion of limited state revenues away from important programs like education, school libraries, neighborhood safety, community development, etc. so that the J.B. Reillys of this world can get wealthier. What's the true cost of his development or the arena for that matter? It isn't just robbing the Commonwealth of some tax revenue, it's robbing a whole generation of kids of their futures.

This is what passes for "progressive" government in Allentown.

51 comments:

Anonymous said...

Maybe this will guilt JB into donating a mil or 2...

If Ryan Howard can donate $1.2 for kids in Philly, why can't JB do here in A-Town?

Anonymous said...

Bernie
Books! Allentown doesn't even have money to reopen its south side public library, shuttered five years. Do you know how difficult it is to get to Hamilton and 12th from S. 4th? Please, next time your in Allentown visit the Emaus Avenue building near the Valley Market and then find your way to the city's main library. Keep up the good reporting. Keep us informed. Thanks for publicizing this issue.

Anonymous said...

With the election o Scott Armstrong on School Board, aon with current directors, Smith and Zimmerman, wkll now have three voices on the board and could join together in getting the facts as to the loss of revenue to the school district from the arena project and then push Sen. Pat Browne to Make changes to the state law that gives Reily the money from State and Local taxes to help pay for his mortgage. Is Sen. Pat Brownes move of his office to a Reilly office building, will his wage taxes go for more books or for Reilys mortgage payments. Does anyone have answer as to Sen. Brownes wage taxes going where.

Anonymous said...

funny, how you support tax breaks for millionaires for despoiling a greenfield, but oppose them for millionaires redeveloping brownfields and an urban core.


the only key distinguisher i can see is that Ron was involved in the former.

Anonymous said...

It is all very frustrating. Allentown is being run by a self serving politician, his political enablers, and those few elites who are getting what they need and doing just fine.

Scott Armstrong

Anonymous said...

Bernie, the Allentown voters keep electing Progessive candidates and on Allentown City Council they are in the Majority and the decline of allentown will continue along with the schools. Who will wake up Alentown to what is happening. Will not be the Morning Call. The Best Reporters leave and doing great at what they are doing as investigative reporting at the newspaper they are now working. Bring them back Allentown,A city without limits.

Anonymous said...

Bernie, the Allentown voters keep electing Progessive candidates and on Allentown City Council they are in the Majority and the decline of allentown will continue along with the schools. Who will wake up Alentown to what is happening. Will not be the Morning Call. The Best Reporters leave and doing great at what they are doing as investigative reporting at the newspaper they are now working. Bring them back Allentown,A city without limits.

Anonymous said...

As you said, if JB Reilly is able to make money, good for him but how Browne can allow this book situation is shocking.

Anonymous said...

Sen. Browne is in the Reilly building.

Anonymous said...

Why don't you call Councilwoman Eichenwald and ask for her thoughts on this issue? She's an education advocate.

Bernie O'Hare said...

6:08, Um, the Chrin interchange TIF is NOT really a tax break. That's the point. In a TIF, there is no break at all on state taxes, while the Allentown NIZ gives all that revenue away. In a TIF, the county governments still receive the same real estate tax revenue they received before In a NIZ, that is all pissed away. In a TIF, there is a tax break on a portion of the increase in value, but it is limited in time. In the NIZ, there really is no limit. It could go on and on and on.

So there is a big difference between what happened with Chrin and what Reilly is doing. And Chrin gave $2 million for farmland, while Reilly has done nothing for the children he is screwing.

Anonymous said...

when the government gets involved in the market place, the inevitalble result is a distortion of value and unintended, usually negative, consequences.

Jon Geeting said...

The state hasn't lost any money to the NIZ this year. This is all the fault of Tom Corbett's budget cuts. Not only did Corbett choose to screw over kids instead of tax Marcellus Shale or close the Delaware Loophole, he also needlessly reversed the "costing out" formula that gave more money to poorer districts.

Anonymous said...

Good to see others are getting on board with this. My mantra for months. Serious financial issues exist at ASD. We need to realize the world has changed. An arena that will be paid for at the price of the education of the children of Allentown. A sin we collectively enable.

David Fehr Zimmerman
Board Member ASD

Anonymous said...

Geeting is correct on this..Things have always been tight in Allentown schools but Corbett's draconian cuts to public education are the root cause of these problems..On top of this he doesn't tax natural gas extraction like all other states do because he got a cool million or so from the gas companies..Therefore , the State loses that revenue also..Thanks to Governor Corbett and pals there are alot of Reillys making mucho bucks while everyone else suffers..It's the system that allows it that's the problem however. That's what the 99% movement is all about..

Anonymous said...

The Boy Genius from NYC has spoken, we can all now go on with our lives comforted by the fact that people like him are blogging away instead of doing anything productive.

How's it feel to be used by the George Soros's of the world there Mr. Geeting?

Michael Donovan said...

Bernie,

I do not have time to prepare a sufficient response to you and the others, but if people have been at council meetings (and others in which I have participated), my questions about this project -- positive and negative -- would be very clear.

This project, if implemented well, would have many results that benefit the entire city, including ASD. The problem is that it has been very, very difficult to get those involved to think this way. I actually relish the diversion of state dollars given how I have seen state dollars spent. It is great to get a major investment into the city.

At the same time, I have had several misgivings about the project because of the lack of information. I have asked for information that leads to examining the longer term rate of return for the city (quantitative and qualitative). Well over a year ago, when this project was just starting, I told the Mayor that I did not want to see only 500 white guys benefiting, and yet the manner by which this controversial project has been managed in public has led to the distrust and criticism, all of which I think is deserved because so much time has passed until glimpses of important pieces of information came to light.

I still support this project because I do believe that it can be managed to everyone's benefit.

Basically, I would like people think about this:

Which is the better option?

a. do nothing
b. Invest several hundreds of million dollars in downtown and benefit only a few
c. Invest several hundreds of million dollars in downtown and produce a ripple effect that benefits 118,000 people

I vote for "c," which I'm sure most would do as long as the project is managed appropriately and holistically. I think it can be.

I find myself losing hope, though, when I see few who try to consider the big picture of what is possible. They nit pick.

In a few weeks, I'll be leaving office, glad to be rid of some of the critics and have some time to focus on my health and other personal matters. The four years have been the most intellectually stimulating and emotionally frustrating in my life. I learned that I am not a good politician because I rely more on facts and reasoning rather than personal relationships or interest group pressure. For an introvert, the latter is exhausting and often pushing the envelope of ethical behavior.

I grew more and more frustrated and felt that I did not want to bang my head against the wall, let alone knock on 3,000 doors again while the Mayor would be trying to not get me reelected. I went into debt the first time. I do not want to do that again.

So, I wish people would think about what is possible with this project. I know that several people involved are thinking that way, but they need help to push the possible benefits and reduce the risks.

Thanks for letting me vent. To those, who come back at me with grenades, that is fine. I just wish that you would see that there are ways to think about what is possible that will help all the residents and taxpayers of Allentown.

Thank you,

Michael Donoavn

michael molovinsky said...

michael, in all due respect, it is benefiting only the few and the die has been cast to keep it that way. i sat with the former merchants who were threatened by an "undisclosed buyer" if they didn't take the "offer". after the city finally confessed that they were the buyer, the merchants were never informed about private use of the NIZ. what aspect of the city's behavior surprises you? when the sale taxes and earned income fail to satisfy the debt service, the property taxes will be tapped, and then will rise so all taxing bodies can remain revenue neutral. sorry, there's too many "ifs" in your rationalization.

Anonymous said...

Dear 8:49,

You trailer park Fox noise watching cool aid drinkers floor me..You rarely know what you are talking about, cause of course, as we all have read, Fox viewers know little of what goes on in the real world around them. You talk about Soros, which makes me chuckle, when the Republican Governors and other leaders spend their time at secret retreats (documented) with the Koch brothers. Give me a break. Your party is morally bankrupt and does nothing but support their corporate masters..They are pathetic..

Anonymous said...

Retired ASD teacher here.

Michael, you speak of benefits and risks associated with the arena project. Seems to me, no one has seen any hard evidence of either. Discussions of that type should have openly occurred 1-2 years ago, followed by a ballot referendum.

In an earlier time, citizens could have counted upon the Morning Call to thoroughly vet evidence provided. Today, that paper largely remains silent, choosing to print press releases. It has become merely a means to wrap around paid advertisement.

Still, there were others outlets for you and your colleagues to bring much more to light and ensure the public enters this late date with greater confidence. In this regard, you failed.

I'm not opposed to arena investment, per se. It's just that THIS project is not well thought out, reeks of favoritism, and uses a specious funding scheme. A heavy liability is being placed on your citizens for many years to come.

An investment of this size, type, and scope demands more than promotion by conjecture. Should it fall short of expectation, the burden is too lasting. The building is extremely difficult to re-purpose.

In my opinion, the complex would have much better chance for success if it relied less on parking decks, plus included significantly greater open floor exhibition space. Surely more space than is already available locally.

This has all moved a little too swiftly and quietly. Had this concept depended primarily on private financing, it's doubtful it would have gone much beyond second base.

Anonymous said...

Where did you stand on Coca Cola park's construction? Guys got very rich on a venture that a microscopic number of residents enjoy. Misplaced priorities, indeed.

Anonymous said...

M. Molovinsky. IF you aware of the person or firm that acted as buyer in behalf of the city, please disclose. Rumors have it was Reilys Real Estate Firm.Also,you mention of threats against the buyers, if so, could some be considered criminal. This should be turned over to the Pa. Attorney for investigation.No evidence should be with held if criminal.Thank you Bernie and Mike for the information you keep providing on the Arena.

Anonymous said...

M. Molovinsky. IF you aware of the person or firm that acted as buyer in behalf of the city, please disclose. Rumors have it was Reilys Real Estate Firm.Also,you mention of threats against the buyers, if so, could some be considered criminal. This should be turned over to the Pa. Attorney for investigation.No evidence should be with held if criminal.Thank you Bernie and Mike for the information you keep providing on the Arena.

Anonymous said...

"the county governments still receive the same real estate tax revenue they received before In a NIZ, that is all pissed away"

actually, the bulk of the properties in the NIZ were KOZed, so the situations are pretty analagous.

'cept for Ron's involvement

Bernie O'Hare said...

I am uncertain what, if any, point you are trying to make. Under a TIF, the taxing entity still receives tax revenue, and there is no break on state taxes. For this specially created NIZ, both state and local entities are deprived of needed revenue, to the detriment of large segments of the population.

I am disgusted that a school district like Allentown would be unable to supply books to students or run a half decent basketball program for kids, while Reilly has his own indoor court.

Bernie O'Hare said...

11:21, I am generally opposed to handouts to rich people,p so I did oppose Coca Cola Park.

Anonymous said...

Anonymous 12:14 PM

The bulk of the properties in the NIZ were not in the KOZ. The NIZ encompasses 130 acres of property, the KOZ was pretty much limited to select properties on Hamilton Street and along the Riverfront - a far cry from the NIZ. There are substantial differences between the NIZ and the KOZ. The NIZ doesn't affect real estate taxes - at least not initially - it only affects State taxes - income, corporate net income, sales, etc. The KOZ impacted all real estate taxes as well as some state and local income taxes. Not enough time to do a side by side comparison, but it is safe to say that they are not comparable programs, nor are the subsidies comparable. Perhaps Bernie or Mike could do the comparison.

Anonymous said...

Getting 755. I cannot disagree regarding the Commonwealth. The big question in my mind is this. After the NIZ is implemented, will Allentown forego some of the State grants as they are essentially getting a fair non-compete share or will they use the revenue to reinforce their grant writing machine and further monopolize Commonwealth and essentially double dip? May Pat Browne legislation could answer this.

While I am glad to see opportunity for Allentown, I have become concerned with a perception of inequitable distribution of Commonwealth resources.

Getting, please define what constitutes a "core community". I just may learn something.

Anonymous said...

Anon -

There are two things in play here - the NIZ and the arena (which is in the NIZ). Because both were brought forward with little public input and disclosure, there is much confusion and a tendency to refer to the arena as the NIZ (especially since the arena has received most of the press).

That said, there will be a definite real estate tax loss because of the arena (located in the NIZ). This is because the arena footprint will be controlled by a non-profit authority, which will certainly make the arena tax exempt.

c said...

Good story, albeit heartbreaking for the kids.

Anonymous said...

Only when things pathetically grind to a screeching halt in Allentown, will voters do something different.

Anonymous said...

Textbooks, Schmextbooks.

Thanks to the fabulous leadership of Chairman Pawlowski and the Rubber Stamp Council of Apparatchiks ...

... the City With No Limits now has a super-duper, multi-generational playground which IS effectively combating Racism ...

... and WILL have a magnificent Palace of Sport to watch toothless foreign jocks ply their trade.

It don't get no better than this, Comrade, just ask What-Am-I-Gettings-From-Big Government? sometime.

COMPLETELY CONTENT CITIZEN,
PEOPLE's DEMOCRATIC CITY OF ALLENTOWN

Anonymous said...

Anon 10:03am.

That’s right, Fox is the problem! What we need are more Soros robots who are incapable of independent thought, just parrots doing their master's bidding. Like you and Geeting.

And since you’re so well-read and intelligent, you do know that the Koch Brothers employ almost 40,000 union employees in the US? And that United Steelworkers VP John Geenan is quoted on the Union website: “GP makes most of its products here in America. The company’s workforce is highly unionized. In fact, 80 percent of its mills are under contract with one or more labor union. It is not inaccurate to say that these are among the best-paid manufacturing jobs in America.”

Evil people, through and through.

I did enjoy the fact that these “secret retreats” you speak of were documented. Doesn’t documentation kinda defeats the whole part about being secret though?

ironpigpen said...

Attention Anon 10:03,

Pawlowski's Palace of Sport is actually a plat hatched by evil Conservatives who just want children, women and old people to starve and die.

Nancy Pelosi could explain it better than me but please, keep quiet about it because IT's A SECRET!

Thank you in advance as your cooperation is greatly appreciated and should you have any questions or problems, please call me at 1-800-DEM-FOFF.

Anonymous said...

Any mention of Soros or Koch brothers indicates the poster wears tin foil hats and likes to smell its fingers after scratching its ass. Turn off Fox and MSNBC and attempt an original thought.

GW said...

Like to add my 2 cents. Like the newspapers, Libraries have taken a big hit do to the internet with fewer attendence.I also recall we hashed over junior sports before.The reasons for the current situations are clear. Lack of participation by kids more interested in video games than sports and few volunteer coaches {adults}

ironpigpen said...

"plot"

How much can one expect from a guy who doesn't have an English name?

But my point remains the same.

Bernie O'Hare said...

1:46,

Instead of attacking the commenter, hoe about attacking the substance of the argument, or is that too hard?

ironpigpen said...

I noticed the Occupy Allentown Flea Party has a new sign displayed :

"NO UNION LABOR, NO ARENA"

Most interesting ...

Anonymous said...

I like Donovan's caveat about lack of time; followed by a tome that rivals War and Peace. What a blowhard.

Anonymous said...

Allentown's kids should pick up sticks and lace up skates. Hockey features lots of minorities. Pawlowski is essentially Allentown's first black mayor.

Monkey Momma said...

The whole thing is very sad. Essentially, supporters of the arena are saying, "trust us." Well, sorry, but the last thing the public should do is blindly trust anyone. And the whole, "destroy business to create business" doublespeak makes me sick.

We have let down the kids of the ASD, once again. All the time, effort and concern we've given this arena would've been so much better spent focusing on the kids of Allentown.

It's quite clear what the priorities are for those who govern Allentown, and I have to say, their priorities suck.

michael molovinsky said...

anon 12:06, if i recall it was summit reality who acted as the original strawbuyer, who would not disclose who the actual buyer was. i have no knowledge of reilly being involved with summit. only at the first meeting with sara hailstone, did she concede that the city was indeed the buyer, using AEDC as it's vehicle. the threat was take the original offer, or end up with less by eminent domain. most property owners received about 50% more than the first offer, as the city wanted to avoid actually using eminent domain. although authorized by city council, if that measure is actually used, having shops as part of the arena front becomes illegal.

Anonymous said...

Anyone, anyone who has ever read an entire Ann Coulter book is incapable of intelligent cognitive thought!

Anonymous said...

Michel, you nention that Summit Reality was the strawbuyer. Is the owner of Summit Reality a relative of JB Reily.

Arm Yourself NOW!!!!! said...

the students and most people in a-town are too ignorant to use books anyway. half the city can't even speak english. they understand drugs, booze, weapons, rape and murder. what do they need books for? the whole education system is a big joke with only a handful union teachers able to get the punchline of getting paid and wonderful benefits for doing nothing.

Anonymous said...

is the score a joke ?

Bernie O'Hare said...

No joke, and that's only first half.

michael molovinsky said...

anon 9:17, no, the strawbuyer was the city; all these buildings were in the square block which will become the arena property.
reilly purchased property across from this block, on hamilton and 7th, which is in the NIZ district.

Anonymous said...

Geeting or Donovan, Can either of you define what a core community is?

What is a traditional neighborhood? One with a coffee shop and a trendy loft apartment, but not a drug store?

Anonymous said...

"Anyone, anyone who has ever read an entire Ann Coulter book is incapable of intelligent cognitive thought!"

Glad we finally agree that Bill Maher is incapable of thought. He is just one example of the idiocy that the radical left represents.