These programs never work. A good business idea will succeed, whether it's subsidized or not. A bad business idea will fail, no matter how much public money is poured into it. Good Jobs First, a non-partisan think tank, rates the Pennsylvania KOZ program as an amazing 0. In fact, the state's entire economic subsidy program gets a D. The promised jobs just never appear.
Instead of cutting funds for higher education, governor Corbett should consider scrapping these ineffective corporate welfare programs.
Easton, like Allentown and the rest of the state, should know better. It granted a KOZ for the Cinema Paradiso many years ago, based on Abe Atiyeh promises that the aging movie complex would be converted into an office center. Instead, it became another movie theater. It went broke, even with the tax breaks.
Now comes word that Mayor Sal Panto wants to try a KOZ again, despite the clear evidence that these tax breaks never produce the jobs or developments promised.
Unlike Easton or Allentown, Bethlehem has never had a KOZ. And guess what? Bethlehem does a better job drawing businesses.
bernie, in defense of sal panto, the Government Magazines in his bathroom are ten years old, that's not his fault. I look forward to visiting the Al Bundy Museum of High School Sports, above the Lanta Terminal.
ReplyDeleteMM, As you know, I like Sal. Doesn't mean he and I are in lock step on every issue. i can't think of a single instance in which I thought a KOZ was a good idea or supported one. A LERTA is fine, and TIFs are sometimes OK, but KOZ is outright welfare with no guarantees. If there were clawbacks, they would at least be a little more fair. Also, as you know from your own research, it is next to impossible to track the subsidies. So there is no accountability or transparency.
ReplyDeleteSal enjoys spending the second highest tax haul, and highest fee structure in NorCo. He's a spending addict who simply wants more money from others, since he's tapped out poor Easton. It's also interesting that he wants to create a "zone," since he's really not the effective mayor of Easton, but rather, an approximately four square block area of downtown. The rest of the city has been ignored and much of it is lawless. With Bernie's regular help, Panto has shown some sizzle. Those who know Easton and Sal well, know there's absolutely no steak there. Not even one of those phony frozen Steak'ums.
ReplyDeleteobviously the leaders of bethlum are smarter than those of easton and allentown. (or, at least, they are better crooks)
ReplyDeleteBethlehem has problems managing its own finances, but is outstanding in certain areas, from planning to economic development.
ReplyDeletethanks for agreeing - they are better crooks
ReplyDeleteIf Easton goes for this KOZ, Bethlehem will also be involved. They will work together.
ReplyDeleteAnon.6:59
Your clueless, The westward has a bunch of programs, and Southside will be getting the weed and seed program, not to mention the new restaurant opening this month. To say the neighborhoods get nothing, show that you are new to the city, the westward has received more under Panto than under any other mayor...
The riverport in Bethlehem was a KOZ. Bethlehem has had plenty of other grants subsidies too, from RCAP to Penndot. Don't kid yourself.
ReplyDeleteBethlehem officials considered, but rejected, a KOZ. In a NPR interview, then DCED Director Tony Hanna explains:
ReplyDelete"From Bethlehem's perspective, we looked at those kinds of acts as almost acts of community desperation ... We didn't feel we were desperate. We really weren't desperate enough to essentially do what other communities in the commonwealth did and that was to create these KOZ zones to effectively try to lure new business and industry here."
Bethlehem has plenty KOZ's.
ReplyDeleteYou are incorrect. Go to the LVEDC site, and ask it to produce a Bethlehem KOZ. There are None. They do have a KOIZ on the south side, but that is a business and tech incubator project, kinda' neat.
ReplyDeleteBernie,
ReplyDeleteThat article is from 2003. Come on. Is upper saucon esperate because they have a KOZ?
The Panto public feeders are out early to deflect form their man.
ReplyDeleteThe KOZ is a weak program. The KIZ in Bethlehem has not been very successful either.
ReplyDeleteIn response to some of these unsubstantiated claims, I spoke with Tony Hanna, Bethlehem's former DCED Director. Here's what he told me.
ReplyDelete"1. Lehigh Riverport isn't a KOZ, never was. The RACP and grant assistance from Northampton County via the Economic Development Bond issue, went to pay for the public parking garage that was built there. The residential condos and the commercial space - Starters and Steel Fitness - received no public subsidy or assistance.
2. I sent you information on the KIZ. Nothing like a KOZ and to shut up the anonymous comment about the KIZ not being successful, it not only is, but also it is the best one in the State.
3. While my 2003 interview with NPR may be a little dated, and perhaps a little hyperbolic, we have been able to develop the former Bethlehem Steel property - to date - without a KOZ. We have a TIF that is fueled by the Casino and we have been able to develop SteelStacks, the new ArtsQuest Center, a new studio for PBS 39, a new Visitors Center, the Levitt Pavilion, a new headquarters for OraSure, a new hockey facility - Steel Ice Center, and much more. LVIP VII has been successful and the Majestic property has been hampered by the slow economy and competition from other major warehouse and distribution facilities that have KOZs. I like LERTA better and I agree, real estate taxes aren't the primary determination for location decisions.
4. The KOZ in Upper Saucon was done to lure Olympus to Stabler. Olympus entered into an agreement with Upper Saucon Township and the Southern Lehigh School District - they offered to include Lehigh County but the County declined - to pay them a Payment in Lieu of Taxes - PILOT - equal to what would have collected without the KOZ. Such PILOTs are now illegal under new regulations. What was driving Olympus was the savings in Corporate Net Income Taxes and Sales Taxes - both state taxes and both abated fully under the KOZ. Real estate taxes weren't the issue."
Give them a KOZ b'cause!!!!
ReplyDeleteTell yourself what you want to hear. But the westward of Easton is a pit. All those double parked cars on Ferry and Butler aren't dropping off medicine, unless you include crack and guns in the definition of medicine. The place is like a war zone. I know a guy who lives out there and wants to sell his home but can't get anything for it.
ReplyDeleteUm, I'm in West Ward every day. You're out of your mind. You are attempting to slam Panto for political reasons and probably do not even live in Easton, whose residents do not refer to West Ward as westward.
ReplyDeletehanna was ALLOWED to retire. He is not the DCED
ReplyDelete6:17 - Bernie used the term "former DCED director." Read more carefully. Tony is now Bethlehem Redevelopment Authority director. Did a damn fine job as DCED; doing a damn fine job now. An authentic professional and a real asset to Bethlehem.
ReplyDeleteTony,you should do stand-up comedy. "doc Rock" get a better stage name tony
ReplyDelete10:11 Anonymous.
ReplyDeleteI am not Tony Hanna. I take exception to your gutless attack on Tony. Both Tony and Bernie know who I am. "Out" yourself, and I'll tell you who I am. Or, is that too much to expect from you?
The West Ward is a "gangsta's paradise".
ReplyDeleteoh, i do apologize bo - i forgot you have a man crush on hanna. you two actually deserve each other - both freaks of nature and disgraced in your own rights. let's see, both major modifiers of the truth, willing to do and say anything to get your perverted little ways - shall i go on?
ReplyDeletedoc rock - if u r not hanna than good 4 u
ReplyDelete7:08:
ReplyDeleteI am sure your mother is beaming with pride at the wonderful child she has raised.
7:08, proven wrong in an assertion about KOZ and Bethlehem, responds with personal attacks. Quelle surprise. But because he's a coward, he refuses to identify himself.
ReplyDeleteWell I guess I need to give my perspective since all of the anonymous posts think they know everything and I really hate to confuse them with the facts.
ReplyDeleteEaston currently has no economic zones at all to attract large development. We had the KOZ back when no one wanted to invest and noe that we have a thriving and growing city we need to take development to the next level.
Not one og the properties we have identified are currently producing taxes of any type. they are mostly vacant large parcels and have been for years. The KOZ and LERTA were asopted by the Commonwealth becasue of a need to attract developers to the urban cores rather than the plush farmlands of the burbs where development is much easier.
All of these projects would infuse a lot of investment in our city but more importantly we would create hundreds of jobs which the valley desperately needs, especially our residents.
Also, all of these projects are game changers. They will have a huge impact on additional investment in the area. And two are in neighborhoods that need an infusion of cash and upgrades.
Comparing Easton to Bethlehem or Allentown is rediculous -- we all have these types of programs and our KOZ application by the county has a lot more parcels in Bethlehem. And it should include that city as well.
Cities continue to be the economic engine of our country regardless of what some burbs think. And as for the jerk tha continues to mention Easton's high millage rate I dare you to compare a home comparable to yours in the city and see who pays more DOLLARS each year. You obviousyy don't understand the tax millage rate versus actual costs. AND you never mention that recognizing that we in Easton have not raised real estate taxes or fees in four years and absolutely no increases in the last three.
And Mr. Molovinsky I will be sure to send you and invite to the High School Sports Hall of Fame becasue you too have no clue, but speak as if you know. I wish I could make public some of the great things going on behind the scene but all negotiations are confidential. As for government magazines......I read a heck of a lot more business magazines and reports becasue I am nothing more than a business that provides services. We do it in a fair and consistent manner with a compassion. But we do it balancing our revenues and our expenditures. Four straight surplus years in a city that was on the verge of Act 47 when I took office and 4 million n debt. We increased our bond rating -- the only municipality in the valley and one of a few in the state. I will put my FACTS in play anytime and anyplace you or anyo of the anons on this site would like. You can bring your myths and I will bring the facts.
Sorry to go on so long Bernie but I felt a response was needed. And thank you for not agreeing with me becasue now the morons can't say you agree with me on everything.....LOL
Thanks for your perspective, Mr. Mayor. We have several areas of disagreement, but the reason I support you is precisely bc you are willing to be accountable about what you do, as you've just demonstrated here. That has to be respected.
ReplyDeleteThanks, Sal, for your comments.
ReplyDeleteLike Bernie, I have always respected your forthright manner - a very refreshing quality in a public official.
Cheers!
Doc
Good Campaign speech Mr. Mayor. But the county and the city are less alike, than the county and the state
ReplyDeleteAnon 8:22 you have no clue. Panto, or any other smart individual with an acumen for business can manage the county, especially with a professional staff. Apparently you have never heard Panto speak. I have. and every time he gives credit to his staff and employees. He never accepts the accolades and is genuinely embarrasses whe they are given.
ReplyDeleteOur county is run by the few and that needs to change. There is so much waste in the county and he has the knack of finding it and making government more efficient. You just don't want to give him credit for turning around the city becasue you are suppoprting someone else. That's fine, and I have no problem with that. But support your candidate but if yours was more qualifies than you wouldn't have to downgrade another.
Agreed. If you want to support Callahan, Barron von Footinmouth or Heckman, just do so. There's no need to run others down.
ReplyDeleteSo Panto is running, fine. Easton is still a pit. He still as no clue about what the county does. That old argument that a great manager can do anyhting is crap. Word isd he has already made a deal to keep many of the Stoffa gang that put us in this mess. Not smart.
ReplyDeleteHe wanted to be Mayor yet he will leave in mid stream for another pension and a new ego trip??
Your not fooling anyone.
He's a windbag, I'll give him that. the gift of gab isn't necessarily a great thing.
ReplyDeleteHey, mayor, Great job...... I respect the fact that you call the cowards out. I also appreciate what you have done with my city. I am a born and raised Eastonian, and appreciate what you do. I think you would be great for the county, however, we would like you to stay our mayor. Whatever you decide, WE are behind you.
ReplyDeleteSs
We also expect those sweet county jobs. There are a lot more of those to dole out at the county then the city.
ReplyDeleteWe are sure behind you.
I just read these stupid comments and laugh!
ReplyDeleteNow that Angle is gone, Stoffa and O'Hare need a third.
ReplyDeleteYuk,Yuk,Yuk. O'Hare is Curly, Stoffa is Larry, they need a new Moe.