President Paul Weiss |
The NIZ Challenge
Allentown's proposed downtown hockey arena, along with a hotel, wellness center and office building are all located inside an expansive, 130-acre Neighborhood Improvement Zone (NIZ), the only one of its kind in the state. Under a 2009 law, state and local earned income taxes generated inside that district can be used to fund the costs of improvements over the next thirty years. This includes the current and future earned income taxes of people who work inside the NIZ, but live in places like Bethlehem Township.
Bethlehem and Hanover Townships, represented by the Broughal & DeVito law firm, have led a legal challenge to the NIZ in Commonwealth Court. They argue it's a special law that only applies to Allentown, in violation of the state constitution. So far, 18 municipalities and 1 school district have either joined that suit, or have filed an independent action. The Pennsylvania State Association of Township Supervisors, lobbying arm to 1,455 townships throughout the state, has also intervened. Developer Abe Atiyeh has also filed a lawsuit that mirrors the municipal litigation.
In an attempt to resolve their differences, Allentown has proposed returning current EIT to municipalities immediately, along with the right to participate in a specially created "development fund". But townships would rather see the size of the NIZ reduced.
Solicitor Jim Broughal told Commissioners that Allentown's proposal actually circumvents state law, and could be set aside by a court as being void as against public policy. He would prefer to continue negotiation, but that would have to include an amendment to current legislation "to make it constitutional, to take out the earned income tax language and, to some degree, to reduce the size of the NIZ" and create a level playing field.
Faye North approaches podium as reporters take notes |
Constitutional concerns were the last thing on the minds of five trade union members who spoke to Commissioners after Broughal. Union organizer and carpenter Francis Loughney, who lives in New Tripoli, called their NIZ challenge a "job killer." Bethlehem Township carpenter Bruce Allen stated he's been out of work for three years. "I'm paying taxes, I'm paying your salaries, I need you to do something to help me out," he argued.
Another Township resident, school teacher Faye North, worried about the legal fees and the "crazy infighting" among the communities. "Working together! That's what's going to make the Lehigh Valley strong," she stated. "We have to work together."
But Barry Roth was a bit more selfish. Diverting EIT to Allentown, Roth argued, would make it more difficult to hire public works employees and police officers. "Those are the guys who plow my streets. Those are the guys who protect my butt in this Township. ... I want it here, for these guys."
Mike Hudak - Shrink the NIZ |
After listening to the public, Commissioners weighed in with their own views.
Marty Zawarski made clear he is "very much" in favor of the arena, but is opposed to the diversion of tax revenue from the state, municipalities and school districts. He complained that the legislation was created for a "few, select group of players." He stressed that any NIZ amendment should be done transparently, ethically and to benefit all.
Mike Hudak, who is a union contractor and a Commissioner, observed that Allentown has refused to budge from its original settlement offer. "They've reworded their proposal, they've moved paragraphs around, but the fundamental crux of their argument has not changed from Day One." He claimed he would support a downtown NIZ, but not one that includes 90 acres along the riverfront as well. "Shrink the NIZ," he suggested. "When you start using taxpayers' money to subsidize private development and private businesses down along the riverfront, that's what's going to hurt."
Hudak also complained about the duration of the NIZ. "This goes on for thirty years. This isn't a one-time grab It gives Allentown the capability of taking tax money for thirty years Yeah, that adds up to a lot of money. But when you ask Allentown how much money is involved, they say 'We don't know. We'll tell you later. We just ask you to rubber stamp this and we'll tell you later.' That's not how we represent our citizens"
Lead NIZ Attorney Jim Preston |
Last but not least, Tom Nolan introduced a resolution that rejects Allentown's current settlement proposal, or any future deal that circumvents the NIZ legislation. It calls on Allentown to do three things. First, amend the law to make it constitutional. Second, remove any EIT tax diversion. Third, reduce the size of the 130-acre NIZ.
Nolan's motion passed unanimously.
Most everyone had a voice last night. But one person was crouched quietly in the peanut gallery, saying nothing, not even to reporters. Jim Preston, the lead attorney in the constitutional challenge, left soon after the vote.
Tonight at 7 PM, Hanover Township Supervisors will also take up the NIZ in an open meeting.
72 comments:
Will there be laughter and stand up comics at the Hanover Twsp meeting. If so I'll come... Otherwise nah!
If the Fleckster shows up, I can guarantee lots of laughter.
Helping destory the future of the Lehigh Valley is very funny.
Oh, so Fleckster is helping destroy the future of the LV?
Bernie.I have been following these NIZ taxes on the blogs and the traditional newspapers.I really don not know how much Bethlehem Township is expected to lose in local income tax revenue over this 30 year period. Confused Taxpayer
Anyone who speaks in favor of the NIZ legislation is asking those who have filed suit to support an "illegal act.". Unions have always condoned actions that circumvent the law.
Stay the course Bethlehem Township. Stay the course Hanover.
For weeks now Pawlowski & Browne have claimed a settlement was imminent. Now?
"school teacher Faye North, worried about the legal fees and the "crazy infighting" among the communities. "Working together! That's what's going to make the Lehigh Valley strong," she stated. "We have to work together."
I love how school teachers today have to announce their profession, as if they are good samaritans or something. Faye North should thank the Bethlehem Township Commissioners for their independance and accountability. She is lucky to have such representation. She can always move to Allentown if she wants to help make the Lehigh Valley stong. King Edwin and the bobbing heads can use her 1.35%.
they called upon Allentown to amend the legislation? Funny, I didn't know the city could legislate in Harrisburg...
teachers should just teach. They are so misguided and naive. do gooders with union credentials just become jokes when they try to lead. (bethlehem city council is a prime example)
the valley needs real leadership in this matter - not let's play nice teachers.
anon 2:18 has to be a union puke - can't even spell
anon 2:48 - another union puke. has to revert to vulgarity due to lack of intelligence
carpenter out of work for 3 years? must really not want to work
"I pay your salaries" What a crybaby, but typical comment from a union goof.
Me, me ,,me - these people have no shame
Just noticed that bethlehem township and hanover township sucked up casino money they dont deserve from Northampton county..What a joke!! They love to receive money they dont deserve but at the same time they fight the NIZ...Pathetic..
I want to thank my twp commissioners. Thanks for doing the right thing!
Bill White's column about neighboring townships mocking Allen- town's misfortunes does not speak well for some.
school teacher Faye North, worried about the legal fees and the "crazy infighting" among the communities. "Working together! That's what's going to make the Lehigh Valley strong," she stated. "We have to work together."
So we'll never expect Faye on a picket line, right!
This legeslation is not a legal tactic concocked by a few for a few. They should all be indicted for a for a few different charges til all is said and done.
I just want to see if any are jailed for the attemted theft of millions in taxes and will the irs get involved?
Bipartisanship and "working together" is bullshit code for "do it my way." Whenever and wherever there is no dissent, the taxpayer takes it in the ass. The system works when parties act in their best interests and question other parties that are not. Union idiots who can't write coherent sentences should not be holding sway over the debate. If they had any smarts, their personal well being would not be so dependent on the collective, with clowns like Fleck taking their money. Just look at the embarrassment they're about to suffer in Wisconsin. Don't insult the people you're attempting to beg from. That's stupid.
anon 7:14
only bill white cares about bill white and what he writes. remember this liberal's main claim to fame is the he eats his way thru musicmess
anon 7:29,
Well said!!!!!!
Allentown Fire Chief Bob Scheirer spoke at a meeting of the EARN neighorhood and introduced newly appointed Allentown City Council Joseph Davis as a man everybody should already know on the East Side ... One man in particular and a long time East Side resident spoke up --- I don't know him --- But also added, everyone knows Dennis
Well, I , Dennis, am not about to defend the policies of the Mayor of
Allentown or its City Council in regard to the Arena or the
NIZ district.
But when I see all the legal action that has developed over
an attempt to redevelop Downtown Allentown I become disgusted.
I expect the City of Allentown to provide fire, police and
ambulance service. I expect the City of Allentown to maintain and clean the streets. I expect the City to keep our traditions about parks and recreation alive. And I
expect reasonable rates for solid waste, sewer and water
service
If these actions coming from suburban areas prevent the city
from providing these services to its residents where is the
morality in the actions that is being taken. Clearly I do
not want my wallet picked or emptied by the lack of morality
that is being demonstrated by all sides. They all are building a cistern that is being destroyed piece by piece by intelligent fools that should never have been
granted the banner of leadership or the license to practice
in their fields in the first place.
Where is the wisdom in their actions, in thoughts, and in
their deeds.
God help us if their actions result in failure. And I wonder
how many of these super stars will remain in this community
should their efforts meet with disaster or underachievement
Dennis Pearson
Thin ice just became no ice because of Pawlowski, Reilly and Topper.
So Attorney Preston left the meeting right after the vote, of course!
He went down to celebrate @ Blue because he and his law firm are the ones making out $$$$ on this entire fiasco...
This is a sad day in the Lehigh Valley not a day for jokes or laughing. The situation is ugly and seems to be headed in a direction that nobody wanted but it has to go that route. There has been no transparency about this situation from day one. Allentown has never answered anyone's question about EIT or other aspects of funding the arena. In negotiations Allentown just would respin their original statements.
Pigs get fat and hogs get slaughtered, mayor, I think you are being hoggish.
What do the legislators have to say on this topic. They are very quiet. It reminds me of the three monkeys,,,hear no evil, speak no evil, say no evil. Boscola and Brown are as silent as can be. I question their inaction on this matter.
Am I laughing? No, I am sad. Sad for how this played out from the start to where we are now. I am sad for all the Lehigh Valley residents who read a couple articles in the local newspapers and think they have a clue what is going on. This issue goes so deep from how it was crafted. By the players involved. By how this was financed to date. Laughing no, I wish the arena would be built but there has to be transparency at all levels and there is none. Is this the way government is headed?
It is already there in Allentown. It is no longer a democracy.
"I really don not know how much Bethlehem Township is expected to lose in local income tax revenue over this 30 year period."
Neither do the. Townships have been asking for this information since February. Despite promises form the City, it has not happened and now may not be ready until June. This is the same City that wants the Townships to trust it.
" he and his law firm are the ones making out $$$$ on this entire fiasco... "
I see. I guess seeing Reilly turn from millionaire to billionaire with taxpayer money is OK, and should not be challenged. And no one should scrutinize the $200,000 that King Edwin received from NIZ beneficiaries in an off-election year. Let's instead focus on a lawyer who is doing his job.
they called upon Allentown to amend the legislation? Funny, I didn't know the city could legislate in Harrisburg...
It just goes to show you how out of touch these rubes are. I'm embarrassed to live in Bethlehem Township.
Dennis, you do not want your pocket picked. Neither do the Townships. They are more than content wit a smaller NIZ, but the King has to be greedy.
" I'm embarrassed to live in Bethlehem Township."
Then perhaps you should move to the enlightened City of Allentown.
"Just noticed that bethlehem township and hanover township sucked up casino money they dont deserve from Northampton county..What a joke!! They love to receive money they dont deserve but at the same time they fight the NIZ...Pathetic.."
You haven't "just noticed." You've been making that stupid remark for weeks, and for weeks, it has been rejected. The casino is true regionalism that gives $4.5 MM to A-town per year. A-town wants to suck money from everyone else.
"Funny, I didn't know the city could legislate in Harrisburg... "
It can't, but Pawlowski does not want to ask Harrisburg to make the changes.
This is not a sad time. It is a time of pride for those represented by bodies willing to fight for them. I've never been prouder of my board. Hats off to the plaintiffs. It's rare that anyone has the guts to fight these days. Allentown should not blame yet another mistake on others. You keep electing idiots. Live with your choices. Enjoy yer hole.
There was a show car 54 where are you ... The popular show in East Allentown is State legislators Steve Sammuelson, Joe Brennan and Justin Simons where are you... As well as state senator Pat Browne.
You see we are part of a city that tore down its downtown and can't rebuild it because of hostilities with its neighbors and more distant neighbors, Not just because ofthe NIZ district but also because of water and sewer issues.
I repeat: I expect the City of Allentown to provide fire, police and
ambulance service. I expect the City of Allentown to maintain and clean the streets. I expect the City to keep our traditions about parks and recreation alive. And I
expect reasonable rates for solid waste, sewer and water
service
And I expect our state legislaters not to be absentee representatives of the 6 precients of East Allentown. Imagine living with a situation wherein our state legislators know that they won't represent us in 2 years and know that they primarily represent areas that are suing Allentown.
Dennis Pearson
None. Zero. Zip. Zilch. The big Gooese Egg.
Big Government just has no business financing $ 220.0 million dollar Palaces of Sport.
End of story.
JUST SAY NO TO THE NIZ
7:12 AM -
If I remember correctly, the casino deal was discussed before the casino was built (and before they even knew where it would go). There was open discussion ahead of time. That didn't happen with with arena/NIZ.
Dennis -
You should ask yourself why City Hall - despite millions in additional fees, taxes and other revenues - cannot provide those basic services without the NIZ (which wasn't there before).
Try first holding your elected officials accountable for what they have done, before ASKING others for help.
By the way, ASKING isn't cutting a backroom deal and shoving down peoples' throats.
@anon2:40
What's next, other municipal taxes? When does it end? Its not just about EIT tax for this particular deal. This is precedent setting! Redistribution of wealth is what it is all about!
Check out the WICKED WITCH OF THE WEST WARD and DANCES ON THE GRAVES OF DEAD GUYS crediting you (and Mr. Molovinsky) with collapsing the entire NIZ Scheme at the blog formerly known as "Lehigh Valley Independent"!
I had no idea bottom-feeding bloggers with no formal training / proper journalistic credentials could have so much power and influence.
Herzliche Glueckwuensche!
You and Molovinsky exercising your basic Freedoms and Liberties while simultaneously promoting Individualism --- THAT is inspirational.
NIZ Cheerleaders and Big Government hacks beating the crap out of you two guys seemingly everyday in a multitude of media outlets (including the Lame Stream) for Chairman Pawlowski's right to spend $ 220.0 million dollars on a Palace of Sport --- not so much.
Hab ein schoenes Tag, Herr O'Hare.
Looks like this Tax Theft job got botched real good, then.
Should have called a pro.
ATONIA PINO
Next up, Hanover tonight. Will Nagle choke on his foot this time?
Bethlehem Township isn't "destroying" the Lehigh Valley.
Pat Browne actually did that for everybody.
This legislation was always questionably legal and was always anti-regionalism. In fact, it was a nuclear warhead dropped on any faint concept of regional cooperation here in the Lehigh Valley.
All these words, words, words...The NIZ scheme was (is) theft, plain and simple.
Allentown wants to spend a lot of money, Allentown does not have the cash to cover its desires, so Allentown, with the collusion of Brown et al, decided to reach into somebody else's pocket to TAKE the cash. (Hoping against hope that the people whose pockets were to be picked would not notice the sneaky scheme they set up, at least not until it was too late.)
What part of this do Allentown's apologists not understand?
It should be against the law. Bloggers like O'Hare and Molovinsky allowed to just publish whatever you out-of-touch old white guys want whenever, even if it IS the hard truth that makes me uncomfortable.
I find it outrageous that no Government agency censors or outright blocks the stories that these two Anti-Progress and Development saboteurs incessantly produce.
You have no licesne to blog for which you have to pay hefty fees to some Government entity. Nor are you in any recognized Union. The fact that you are not paying any licensing taxes only demonstrates how you selfishly rob the Community of much-needed revenue that could be put towards Chairman Pawlowski's $ 220.0 million dollar Palace of Sport.
You, O'Hare, should be regulated to the point where you are forced off the Blogosphere, if not outright jailed indefinitely without charge.
ALLENTOWN DEMOCRAT VOTER
Bernie, Thats for confirming what my thoughts were regarding N.I.Z's local income tax revenue would be.No one knows. Confused Taxpayeer
Bernie, Thats for confirming what my thoughts were regarding N.I.Z's local income tax revenue would be.No one knows. Confused Taxpayeer
Looks like little old Bernie O'Hare has received 45 postings today compared to 15 for veteran journalist Bill White, writing for the pro-NIZ Morning Call. No wonder you get so many personal attacks here, people are reading!
I think it's disgraceful everyone just can't play nicely together like the good Union Teacher says we should.
Compromise. Work together for Development and Progress. Get along to go along.
Big Government always knows best so I just don't see why unlicesned, unregulated bloggers like Bernie O'Hare get away with doing things like exposing Crony Capitalism.
O'Hare is a hater who just wants women and children to starve and die because Chairman Pawlowski can't have his Palace of Sport.
NIZ CHEERLEADER WITH DEMOCRAT PLAYBOOK.
I hope Hanover giggles and snickers while staying the course in opposition. Way to go townships and boros. It's like the satisfaction one gets from watching an Internet video where the clerk pulls out a gun and shoots the would-be thief. The Browne Hole is becoming a problem.
Too bad the Preazy can't come and slow jam the Chairman's spectacular Palace of Sport to capitalize on President Obama's historic and unwavering personal popularity.
Obama loves reckless Big Government spending outrageous amounts of Taxpayer Money on frivolous and wasteful projects like Solyndra and so on. Everybody knows Obama has no problem with Crony Capitalism so long as the winners are making campaign contributions to the right kind of people. And everybody knows that only Star-Power and Excitment sells.
So, it's perfect fit, an absolute no-brainer.
ADVISOR TO THE SITUATION IMPROVEMENT BOARD
Why is someone comparing this to the casino in Bethlehem?
The casino was discussed openly for months before it was actually ok'd/built.
The builder used his own money.
The city competed for a license.
Fees are shared, even with Allentown (still trying to figure that out), as well as neighboring municipalities.
---------------------------------
The NIZ is a sleazy idea sprung on others.
The developers apparently cannot finance this through normal means, therefore the NIZ.
Any "sharing" of future wealth is only a pipe dream, thought up after the fact in an attempt to appease the communities who felt the mayor's hand in their pockets and called him on it.
All the NIZ supporters can do at this point is accuse certain bloggers and outlying communities of conspiring against Allentown and kicking it while it's down. One last time- this is less about anyone in the Valley rooting for the city to fail, but everything to do with fairness. It is not fair to expect other communities to share Allentown's risky venture, unless they have a chance to examine it and sign on knowingly. Are some people outside Allentown miffed by this? Of course they are...why wouldn't they be? Allentown is dysfunctional because of this type of decision-making. Acquiring a huge block and committing to tearing it down without having the ducks lined up is akin to the old saying- "Ready? Fire! Aim."
Voice of Reason
"Will Nagle choke on his foot this time?"
You can certainly ask him. Bill White could, too, but did not.
Bill's salary and benefits have been slashed and he has no skills that can help him improve his lot. He's angling for an administration spokesman job. He's already mastered carrying putrid water.
Allentown might as well tell the Phantopms to wait until 2014-15, no need to build a fiasco any quicker than that
As a bethlehem township resident i applaud my elected officials who are looking out for my interests thats why they are there keep up the fight!!!!!
I repeat ..There was a show car 54 where are you ?... The popular show in East Allentown is State legislators Steve Sammuelsson, Joe Brennan and Justin Simons where are you?... As well as state senator Pat Browne!
You see had reapportionment went through earlier this year they would be lameducks in our area through out the year. But now they are lameducks for us for two years.
That's bad for a part of Allentown not part of the NIZ district ... By the way we are caught in the NIZ revenue grab too ... Dorward Wholesale was purchased by a NIZ district buyer so the taxes of employees there go to the NIZ district as well as school district employees at Ritter, Mosser, the Newcomer School and Dieruff.Why? The main office of the School District is in the NIZ district.
Cars 131, 133 and 135 where are you? Why are you MIA.
Dennis Pearson
Dennis, The silence of our state legislative leaders is disheartening, to be sure.
Dr. Thode's and Mr. Molovinsky's points about tobacco, beer and other excise taxes are just beginning to percolate. Mr. Hudak of Bethlehem Township referenced these far reaching items as part of what the public is woefully unaware of. It is more than the EIT.
How can an excise tax on specific products sold in the entire state by several businesses (not business taxes such as income, mercantile) be allowed to be returned to property/business owners in one section of 100+ acres? Some of these taxes range from 5 to 75% of the cost of the product.
Moreover, it takes money that the State already spent on programs such as: CHIP (children’s insurance), medical malpractice, and farmers’ preservation fund (let alone smoking prevention, compliance checks, etc.), all reasons for rising excise taxes in the past few years.
Why would a Senator or Representative from any other region of PA continue to agree that money previously set aside for the children, the doctors, the farmers, or any other group that relies on state wide collected excise taxes on products to be diverted away from the State and their backyard?
Why, as Pennsylvanians, should we allow those dollars to go to a very privileged group of private property and business owners (many of which are one in the same) in one small area via a very special group of elected and appointed officials in a uniquely created authority?
Agree; from Browne especially. He was instrumental in creating this mess and should show some leadership in resolving it. Shame. Shame. Shame. I used to like the guy. I no longer have any respect for him.
Excellent point, Nick. The Dorward Wholesale and tobacco tax story hasn't been touched. It's a big statewide story.
Before it gets confused. Not all excise taxes collected would go to zone, but all excise taxed products sold by businesses in the zone would.
However, those products are sold by other businesses in the State that do not have the opportunity to have those tax dollars returned to them.
Bernie what is the position of the Lehigh County republican party on this issue? Or do they simply choose not to participate?
Or is the party in seclusion after the recent reassessment debacle?
What is the position of the Lehigh County republican party of this issue? Or does it simply choose not to participate?
Or are they in seclusion caused by the reassessment debacle?
Interesting to say the least.
We should impeach Browne and all the other baboons who are allowing this to happen.
8:50 PM, Nothing wrong with your comment, but you mentioned a name that isn't permitted here.
bloggers=crazy
Since its been established you spend time reading crazy bloggers, do you also spend time watching crazy people on television?
Do you visit crazy people in the insane asylum?
Are you insane?
7:14, Good question. both parties will run like hell from this question. Rs do not want to piss off Browne or JB Reilly. Dems don't want to piss off trade unions or Pawlowski. Nobody gives a shit about the actual taxpayer.
"teachers should just teach." who's gonna be the next mayor of Bethlehem? A former teacher
With hanover Township rejecting the offer... this is now destined for court... I hope that the townships/municipalities have enough saved because a huge countersuite is about to come... The city is going to sue the shit out of them for this.... I hope they believe their suite is air tight, if not they will be losing millions soon. When you play with fire you end up getting burned.
When you play with fire you end up getting burned.
FutureDowntownArenaAttendee:
Feeling the heat are you?
Allentown now needs to plant some grass on pulowski's hole.
Many thanks to the townships and other entities helping to put an end to this debacle.
What is a "countersuite"?
FUTURE DOWNTOWN ARENA DOOFUS
I think Future Downtown Arena Attendee's suite is what is air-tight.
Go outside, FDAA, and take a deep breath.
Your Propaganda still sucks.
And your threats don't scare anybody ...
JUST SAY NO TO THE NIZ
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