Back in 2009, when Pennsylvania lawmakers finally adopted a budget after a record-setting 101-day stalemate, State Senator Pat Browne slipped a little piece of language into the Fiscal Code update. Buried amid the definitions of "little cigars" and "cigarettes" was legislation that created something brand new - the "Neighborhood Improvement Zone (NIZ)." It's a special financing tool for any third class city with a population between 106,000 and 107,000 in the 2000 census. Nobody seemed to notice that the NIZ could benefit one, and only one community.
Allentown.
Allentown has created a 130-acre NIZ in its downtown, and along the riverfront. State taxes and even the local taxes of workers inside that zone can be diverted to pay for the debt service on improvements like Allentown's planned hockey arena, as well as four office buildings planned by NIZ developer J.B. Reilly. Thanks to this subsidy, he can offer cheaper rents than those charged in other communities.
Bethlehem's Martin Tower, the largest office building in the Lehigh Valley, is vacant. Located just a stone's throw from Allentown's border and unable to compete with subsidized rents inside the NIZ, this venerable building is likely to remain empty.
Instead of a hockey arena, Allentown is instead dealing with legal challenges from municipalities who resent the diversion of their EIT, and who are concerned that an uneven playing field will draw business from them into the NIZ.
Here's what happened last week in this fast moving story.
Monday, May 21. - Despite pleas from trade union members, Bethlehem Township Commissioners unanimously reject a settlement offer from Allentown. The Queen City has proposed returning current EIT to municipalities immediately, along with the right to participate in a specially created "development fund". But Commissioner Michael Hudak replies that it's simply the same settlement offer they rejected once before. "They've reworded their proposal, they've moved paragraphs around, but the fundamental crux of their argument has not changed from Day One."
Tuesday, May 22. - Fast on the heels of Bethlehem Township, Hanover Township Supervisors release a statement calling for amendments to the NIZ enabling law that will (1) make it constitutional; (2) eliminate all diversions of EIT; and (3) restrict its size to the area around the proposed arena.
Wednesday, May 23. - Walnutport Mayor Harry Kline confirms that his borough of 2,070 people have voted to intervene in th NIZ challenge.
Nineteen municipalities and school districts have now voted to join the NIZ litigation spearheaded by Bethlehem and Hanover Townships or have filed their own suit: Bethlehem, Bushkill, East Allen, Hanover, Lehigh, Lower Nazareth, Lower Saucon, Palmer, Plainfield, South Whitehall, Upper Nazareth, Upper Saucon and Whitehall Townships; Bangor, Catasauqua, Hellertown, Stockertown and Walnutport Boroughs; and the Whitehall-Coplay School District.
Upcoming. - It appears increasingly likely that the next salvos in this escalating battle between Allentown and surrounding municipalities will be heard in Court, and in the halls of the state legislature.
Today's one-liner: "The shortest way to the distinguishing excellence of any writer is through his hostile critics." Richard LeGallienne
Local Government TV
▼
Monday, May 28, 2012
21 comments:
You own views are appreciated, especially if they differ from mine. But remember, commenting is a privilege, not a right. I will delete personal attacks or off-topic remarks at my discretion. Comments that play into the tribalism that has consumed this nation will be declined. So will comments alleging voter fraud unless backed up by concrete evidence. If you attack someone personally, I expect you to identify yourself. I will delete criticisms of my comment policy, vulgarities, cut-and-paste jobs from other sources and any suggestion of violence towards anyone. I will also delete sweeping generalizations about mainstream parties or ideologies, i.e. identity politics. My decisions on these matters are made on a case by case basis, and may be affected by my mood that day, my access to the blog at the time the comment was made or other information that isn’t readily apparent.
The state lawmakers will not touch this. The only hope you haters have is a the court.
ReplyDeleteWhy won't they touch it? Isn't this why they're there? What kind of "leadership" are they exhibiting by hiding their heads in the sand? Most of the hatred I see is coming from anonymous trolls, b the way.
ReplyDeleteI hadthe occasion to pick up my kid at the Rave movie theater on Friday night, then drive thru center city Allentown. The contrast was astounding. Around the Rave were throngs of people walking, sitting at outdoor cafes, and shopping.Allentown was essentially abandoned. What is different? my unscientific observation: plenty of free parking, obvious police prescence, and cleanliness.
ReplyDeleteAllentown is obsolete. Cities are obsolete. no one wants to live there that doesn't have to.
Don't discount either a stealth or public move by Sens. Browne and Boscola to amend this. Their friends, spouses, buddies, and contributors have a big stake in this thing. The newspapers will praise it as "regionalism." The local state reps will fall in line and take direction from B & B. Remember that all kinds of shit can happen during late June in Harrisburg when all the special interest groups are screaming for more funding.
ReplyDeleteMorning Bernie, I have been following the NIZ, just one comment on this article, Nazareth isn't the oldest Borough in the Valley, Nazareth 1740, Bath 1737
ReplyDelete@ 6:51. You and your mentality are the problem for Allentown. Let's get down to brass tacks--the promenade is "nice" to you because it's trappings are a symbol of segregation. Developers have been allowed to build a fake "downtown" in a corn field which, for various reasons, only allows in middle class people with certain incomes. (I am saying it is de facto segregation not de jure). The image caters to the middle class without all he "negatives" of an actual urban experience. It allows money to be segregated and when dollars are spent there instead of an actual downtown it just increases the disparity between the two municipalities and further exacerbates the negatives of the cities. Nothing speaks to the baser and more damning elements of American culture than these outdoor promenades: segregation, corporatism, fake aesthetics, excess, commercialism. We had a real downtown without these negatives in need of real redevelopment. But, rather than care about it, people would rather built something new and fake and let that which is real wither away. Stupid.
ReplyDeleteVery well said.
ReplyDeleteCrol, Oh my goodness. I stand corrected.
ReplyDeleteRetired ASD teacher here.
ReplyDeleteAs I read the law, Allentown DOES have the option not to use EIT funds. It's their call.
The law provides a laundry list of revenues to choose from within the district. The requirement is that Allentown indicate which taxes, and at what amount, the state will use in its calculations.
When you analyze it, Allentown, in designating the boundaries of the NIZ, has already determined WHICH taxes are to be used. EIT revenue from one side of the street, but not the other.
Allentown is holding fast on the EIT collections because the project is much too expensive and risky as planned without those monies.
My best guess is, the law will not be changed, the availability of collections will stand. It will be pointed out that Allentown could opt not to tap the EIT funds, yet Allentown will hold firm. They will create a huge divide between the city and surrounding residents who will then opt NOT to support/patronize the complex, etc.
Pawlowski is too much the bully to understand it's in his best interest to scale back.
I do not agree with 10:57. It is my understanding that the current law as written requires the EIT to be taken(local skin in the game), one of the lawsuit points of the unconstitutionality of the legislation. Allentown through their negotiations said they would give back the EIT. That is in clear violation of the current legislation enacting the NIZ. They do I believe have control over the size of the NIZ but have refused to reduce it. The only way out of this aside from letting the court decide is for the legislature to revisit this act when they convene in June. Will be curious to see what the state and governor's response to the lawsuit will be, I believe they are due to the court by the end of this month.
ReplyDeletewait...what? anon 6:51 is racist because he prefers free parking, police prescence, and cleanliness? And Bernie...you agreed with this?
ReplyDeleteThere is a strong police presence, cleanliness, and parking at the promenade because the promenade was built in a corn field and only made accessible to people with money. When you shop there (whether you realize it not) you are supporting a system meant to segregate the haves from the have-nots. Imagine if all those high-class stores could have been put in downtown Allentown or Bethlehem instead. Then with more commerce ebbing and flowing through the downtowns, there would be more economic vitality for everyone who lives there. To build a fake "downtown" when one already exists is just the worst kind of hubris. Esp. where the only people helped by the cornfield development are rich developers. Also, have walked around downtown Allentown lately? it is actually quite clean, there is absolutely no crime directed at anyone unless you are selling drugs, and there is ample parking. Check it out some time.
ReplyDeleteI agree with 8:33. The Promenade is phony bullshit.
ReplyDeleteOn an unrelated but important note, you should read this article Bernie.
ReplyDeletehttp://www.theatlanticcities.com/jobs-and-economy/2012/05/why-you-pay-more-walkable-neighborhoods/2122/
please explain your objection to this: someone owns a cornfield, annual revenue about $7100. They have an idea that they could change the cornfeld and make thousands of people happy. It could flop and then they'd have neither the happy people or the cornfield. But they take a chance with their own money, and those people are indeed made happy, and they reward the cornfield owner for the doing it. What exactly is phony about it. Anyone could do the same thing downtown. Why don't they do it?
ReplyDeleteYou are only looking at one small part of the analysis--what is the outcome for the individuals involved. Granted, the farmer makes more money by selling his land. o.k. That is the first layer of analysis. Now let's say we build the promenade. That means people have to drive to it. That means consumption of gasoline and the massive heat-retaining and erosion causing parking lots to accommodate all those cars. So, there are environmental issues.
ReplyDeleteThen you have what I mentioned earlier, a implicit system to segregate people based on income (and to some extent class and race). While that's bad in itself, it also allows the middle class to stay outside the cities perpetually and lose consciousness of their existence and meaning. That's a bad thing. Esp. considering that the poorer urban areas really need organic tax dollars from commerce.
Then you have to consider that there was existing commercial stock available for these high-end stores already downtown. New construction didn't need to happen. New construction invariably means energy inputs and waste. That's a bad thing. All for something that didn't need to be build in the first place.
The promenade also looks fake and crappy. Maybe its just me, but, there is something about a building built with character that's important. Allentown, Bethlehem, and Easton will be great places again someday because they have character and intrinsic wealth. In 50 years the promenade is gonna be as ugly and neglected as Westgate mall.
Finally, you might want to consider why a shopping center like this brings "happiness" in the first place and question what that says about our political and communal spirit. Nothing good.
So, yeah, maybe for the farmer and the developer its a good thing. That, I suppose is what capitalism is about. But, capitalism has a dark side, it considers only the interests of how to make the individual money--it does nothing--intrinsically--to support the spiritual, aesthetic, or political world of the community. These two forces have to be balanced and I'm of the opinion that when you build a monument as fake and horrible as the promenade, you are really getting your priorities in life out of whack.
And, why can't this be built downtown. The long and the short of it is because people believe it can't be built downtown. Probably because they no longer have consciousness of the place because they have been away so long (see above). And also, because we have been trained in this country to respond to a certain image of life rather than the reality of what is. we build B.S. like the promenade to satisfy the image of life we've concocted for ourselves rather than settling for life itself. Thing is, that image is superficial and cheap--just like the construction of the promenade itself. Its a grotesque circle of crappy aesthetics and crappy spiritual depth.
How is this for an idea, the entire Lehigh Valley merges and becomes th CITY OF LEHIGH!
ReplyDeleteI like that idea--the city of Lehigh-Northampton. I'm not kidding. It would be a smart move. An even better move would be for Allentown, Easton, and Bethlehem to become a single second class city.
ReplyDeleteAn even better idea might be a study aimed at determining where it might be cost effective for different municipalities and even counties to consolidate certain services. That might be a good starting point.
ReplyDeleteabsolutely. Is that something the townships would realistically consider?
ReplyDeleteOf course. Hanover, Lower Naz, E Allen already have a regional PD. If it saves money and increases efficiency, the governing body will support reforms like these. The stumbling block, especially with police and fire, are the individual officers. Some would like to remain in smaller departments, where they know everyone. They feel that is actually safer. So it can be an emotional topic, and you can't argue once emotion gets in the way.
ReplyDelete