Chrin attorney Scott Allinson updated Northampton County Council's Economic Development Committee last night on the progress of what is known as the Chrin TIF, a sprawling, 689-acre tract of land in northern Palmer Township, touching on 7 different municipalities. He was accompanied by Dave Colver, who chairs Palmer's Board of Supervisors.Allinson made three points. First, there's already an agreement to sell the northwest quadrant, consisting of about 286 acres, to a national developer. Second, a study by the Dietrick group had projected about 3,500 jobs at the site, but that has now been upgraded to over 5,000 jobs. Third, Chrin will pay for a Rte 33 Interchange with bond proceeds. He assumes the risk of failure.
Without Chrin's personal investment, there would be no Interchange at all. According to Allison, the exit was not included in PennDOT's 12-year plan. Then State Senator Rob Wonderling helped Allinson break the logjam.
Dave Colver outlined the zoning overlay changes planned for the area, which I discussed last week. Those will be voted on by Supervisors on Tuesday, and will permit a 1-million square-foot big box, but only one.
According to Colver, it will be a diamond-shaped Interchange. A $33.5 million bond sale is scheduled to settle on August 15. After that, construction should start by October, with a tentative completion date of Christmas 2013.
91 acres, located near Nazareth Middle School, will remain zoned agricultural and serve as a buffer between the school and the industrial development.
Like Allinson, Colver stressed that Chrin bears the risk of failure. Palmer has already created a Neighborhood Improvement District (NID), not to be confused with a NIZ, to assess Chrin if the increased valuation in real estate is insufficient to pay the bond debt. If Chrin were for some reason unable to pay, the ultimate risk of loss would be borne by bond purchasers.
13 comments:
Build!!!!!!!!!!!!!
"If Chrin were for some reason unable to pay, the ultimate risk of loss would be borne by bond purchasers.'
This has been a standard talking point, however, I am confused by a quote in this morning's Express. Could you help clarify?
"Palmer Supervisors recently approved creating a special tax district to protect themselves in case a development funded through a tax-increment financing (TIF) plan surrounding the interchange fails to gain tenants."
Last Friday I noted on here that "Something in my gut feels like the taxpayers still have some sort of exposure, even though not apparent on its face." If the risk is on Chrin's bondholders, what is this "special tax district...in case (the)TIFF...fails"? Was this reportedly accurately in the Express?
Lighthouse, the ET article is referring to the NID. That was set in place by Palmer Tp to protect itself, the County and the school district. If the increases in value do not generate enough tax revenue to pay the bond, a ND authority can impose additional assessments. If that fails, the ultimate loser will be the bond purchasers, not the taxpayer.
The full faith and credit of the public will NOT be pledged to guarantee repayment.
Thanks for the explanation.
Well, while I have issue with the TIFF when Chrin was willing to pay for it himself, and some concern about future rezoning to better accommodate warehousing, the ink is drying so I can only wish them success that development occurs as planned. Once started, nobody wants to see this fail.
Chrin is selling the land. He is not on the hook, the new property owners are! Smartest man in NC. Found a way to get the taxpayers to pay for the interchange while he makes hundreds of millions of dollars.
He is on the hook for the land until it is sold. He is on the hook right now. Once there are buyers, they will be on the hook.
Bwaahahahaa....just like the vacant industrial park at 33 and Hecktown that hasn't had a job created in 10 years.
Do you prefer the Grape or Cherry koolaid?
I'm missing something?
How are all these Tifs and Nids anything but Niz entities in different packages?
They all are Govts messing around in private investing by playing around with taxes.
I'll believe it, when I see it!
And the ave. pay rate?
Most likely on the lower end of the scale.
I could be wrong. It would be good to know.
And the ave. pay rate?
Most likely on the lower end of the scale.
I could be wrong. It would be good to know.
And the ave. pay rate?
Most likely on the lower end of the scale.
I could be wrong. It would be good to know.
I had asked months ago, and seem to recall being told that the Dietrick Group was predicting half=decent wages. I will ask on Monday. Obviously, the retail jobs by the Interchange will be low pay. Same for the warehouse. But other than that, the wages should be good. I'll try to get more detail.
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