Saturday night, the State House and Senate finally voted to amend a state law that would have allowed Allentown to pay for a hockey arena and other improvements inside a "Neighborhood Improvement Zone (NIZ)" with the tax money of other jurisdictions. They also redefined the NIZ to address constitutional concerns.
Lehigh Valley House Republicans Reps. Julie Harhart (R-Lehigh/Northampton), Gary Day
(R-Berks/Lehigh), Joe Emrick (R-Northampton), Marcia Hahn (R-Northampton), Ryan Mackenzie (R-Berks/Lehigh) and Justin Simmons (R-Lehigh/Northampton) issued the following statement upon House passage of Senate Bill 1263, which now awaits Gov. Tom Corbett’s signature:
“We appreciate the support of our House and Senate colleagues in making this critical change to Pennsylvania’s fiscal code. Working as a delegation with Senator Pat Browne allowed this to happen, and shows what is possible when legislators from both chambers work as a team. More importantly, it is a symbol of state government working with local municipal officials, who in this case expressed deep concerns about the impact of losing their local tax revenue.
“We have heard loud and clear from the people of the Lehigh Valley, who expect and deserve good stewardship of their hard-earned tax dollars. This adjustment to Pennsylvania law ensures that. In addition to providing for the return of tax dollars already collected, enactment of Senate Bill 1263 means that, once again, local tax revenue will stay within our municipalities and school districts for the well-being and improvement of our communities.”
It appears that all three LV state senators, including Senator Pat Browne, voted to remove the EIT. State Rep. Jenn Mann told the Express Times that every member of the LV delegation, Democrat and Republican, supported these changes.
Today's one-liner: "The shortest way to the distinguishing excellence of any writer is through his hostile critics." Richard LeGallienne
Local Government TV
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Sunday, July 01, 2012
45 comments:
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Now the suburbs got what they wanted. Even though it was offered in the settlement package plus the $1 per square foot.. so they probably lost. The biggest winner is the lawfirm. The arena will be built, the niz will bring in development to the waterfront and to the downtown. But if your wear a tri corned hat and wave flags that say dont tread on me, you will be blind to that fact. Stupid Teabaggers.
ReplyDeleteActually, there's a little principle. You might have heard of it. No taxation without representation. If memory serves, people in those tri-cornered hats you like to disparage, fought a revolutionary war over that principle. They waved flags, too.
ReplyDeleteThe English thought they were silly, too. Now it's bluebloods like you, who thought nothing of brushing minority-owned businesses aside and who have yet to address just how this is going to transform Allentown.
The settlement package was offered by a group that had already broken several promises and has yet to release its Preliminary Offering Statement, even though it was ready months ago. Had the settlement been accepted, and it was later determined that it was an end-run around the NIZ law, the entire agreement would be void as against public policy. So no, it would be incredibly stupid to have played with the Devil.
The municipalities, which included several small boroughs, got it right.
You, as usual, seem to think the ends justifies the means. That's a dangerous attitude in government.
FDAA -
ReplyDeleteThe suburbs can spot a loser (arena/NIZ) and were smart enough to run from it.
Pawlowski only knows losers (Johnny Mananas, TC Salon, etc) and bets on them every time.
That's why Allentown is in the condition it is.
FDAA is a tiresome presence on the local blogs.His hate ridden and maliciously biased statements have become a hall mark of the incumbent administration. Perhaps the arena will be built but will unequvitably remain the death knell to this city. Financially Allentown is bankrupt. All of the development in the world will not change that. Increasingly tax payers will quit Allentown to show their disgust of narcisstic antics of JP Reilly and all his henchmen partners.
ReplyDeleteI applaud you Bernie..for finding the truth and exposing this thing for what it truly was and is..Theft by deception. Fun to see the pol's who created the NIZ, scurry like the vermin they are and seek cover from the glare of the spot light. Sometimes the little guy wins one. I believe this is such a time. Thanks for all you did and continue to do.
ReplyDeleteFDAA,
ReplyDeleteThe only thing you got right was that the lawyers won.
FDAA,
ReplyDeleteWhat does the fine Senator have to say this morning? The drafter of the original legislation written and adopted in secrecy had to relent and address the concerns of the municipalities, his peers and the entire region. It become obvious that his legislation would not make it threw the court challenge.
What does the Mayor have to say today? He was going to sue the municipalities. Run then over to get his way. Good news is he still has a hole that is destined to fail.
The developers fund will NEVER payoff. It was a poorly thought out solution for an illegal and unconstitutional act.
Kudos to the real leadership shown by Mr. Finnigan and the Board of Supervisors in Hanover. They along with Bethlehem Township proved true leadership is still possible.
When we look back on this matter the amount spent on lawyers will be minimal in comparison to the loss of EIT revenue.
It is a great day in the Lehigh Valley!
I think everyone wins. Good job by Browne and the legislative delegation.
ReplyDeleteAnonymous Anonymous said...
ReplyDeleteFDAA is a tiresome presence on the local blogs.His hate ridden and maliciously biased statements have become a hall mark of the incumbent administration. Perhaps the arena will be built but will unequvitably remain the death knell to this city. Financially Allentown is bankrupt. All of the development in the world will not change that. Increasingly tax payers will quit Allentown to show their disgust of narcisstic antics of JP Reilly and all his henchmen partners.
6:12 AM
Amen to that! Doesn't Future have a life? All this person seems to do is respond to blog commentary in vile dialogue.
"Stadiums tend not to be good neighbors at developing the areas around them."
ReplyDeleteProfessor Victor Matheson
Sports Economics, College of Holy Cross
"SOCCER DENYING IMPOVERISHED CITY SHOWS STADIUM RISK : MUNI CREDIT"
by Romy Varghese ... 6/21/2012
www.bloomberg
OR
www.goironpigs.com
Thanks Bernie, For keeping all of us informed with the latest and most up to date information. I don't know how you do it, but I'm so glad you do!
ReplyDeleteCan't discriminate on race, religion, age, or sexual persuation, however, the Commonwealth can discriminate you exclusivly on the population of you municipality. I am pleased the hole in the ground will be restored with the arena, however, we need to consider this population clause.
ReplyDeleteThe red light camera law was drafted by Smart Growth legislators and designed for 3rd class cities with population greater than 26,000. It allowed Cities to generate upto 5% of their operating budget and was targeted at genertion revenue and had little to do with safety. Otherwise it would be targeted at dangerous intersections regardless of population.
So... now Pat Browne takes credit for removing the tax provision? Really? He just munis tens of thousands in legal costs and he gets credit. Imagine that.
ReplyDeleteOur legislators had a rare chance to right a wrong and have a public debate on the merits of a bill that had been buried in a previous budget bill to escape public scrutiny.
ReplyDeleteInstead of taking the opportunity to have that debate about things like poaching cigarette tax revenue from childen's health funds, they squandered it. Instead of debating the bill on its own merits they buried the "fix" in their own budget bill.
All they've done is proven the contempt that they have for the taxpayers and have proven what a cesspool Harrisburg has become. They should all be driven out of office - regardless of party
Boroughs older than Allentown are not suburbs. The NIZ is a terrible scheme, the likes of which has failed miserably in countless, poorly run crime havens. Good luck finding money to fill the hole. This is what happens when liberals who have never created a job, just entitlements with others' money, play lapdog to wealthy developers and get disappointed each time. Whining incessantly with one's hand out is not sound economic policy. Stupid Fleabggers.
ReplyDelete9:49 is 100% correct. Eliminate the EIT from the tax grab was easy. Changing a few words to now make the law constitutional was easy. Kudos to our hard working and thoughtful legislators. Doesn't seem like any of our hard working lemmings did any heavy lifting and chose not to debate this horrific law that will screw the state taxpayers and beneficiaries of some of the cigarette taxes the state receives for the next 30 years. Not only that, this horrific law does not require that one single new job be created in the NIZ. The only solice we have is the right to publicize these abuses as they occur. All our legislators should be held accountable.
ReplyDeleteIn a somewhat related discussion to this line item appropriations for both house and senate salaries received a midnight bump again...
ReplyDeletehttp://www.portal.state.pa.us/portal/server.pt/document/1264679/2012-13_available_proposed_enacted%5B1%5D_pdf
Some quick math reveals about a $6,000 increase in spend per member. But we're broke, and school districts, unwad yer panties and dip into your reserves!
Kudos to Hanover and Bethlehem Townships for having the vision to do the right thing. Thirty years is a long time to be stealing people's money!! Best of luck to Allentown with their projects. The NIZ will not fix Allentown's problems.
ReplyDeleteCheck it out Bernie. Northampton County republicans are trying to convince Finnigan to run for county executive. Fresh off leading the NIZ fight he'd be a great option to Calahan taking his smoke and mirrors to the county.
ReplyDeleteFinnigan wold be a great county exec, from what I have seen. But he has pretty much removed himself from politics. He goes to no fundraisers and gets involved in no campaigns.
ReplyDeletePlus he would have to take a major pay cut to go from Tp Manager to County Exec and deal with a board that most likely will be contentious. Anything could happen, but I do not see it. There are some great R possibilities, but most of them are too involved in other matters. I will ask Finnigan about this when his board meets later this month.
Thanks for the observation.
I think Rs are going to lose big in the next election in NC, even if Romney wins. Peg Ferraro will likely be the only R who survives, although Cusick has a shot. The Board will go either 8-1 or 7-2 Dem. I think Callahan or Panto or whoever the Ds nominate will win the Exec race.
score one for the evil empire. The theft of taxpayer money to use as gifts to developers who happen to be the top contributors to local democrats and republicans will no longer be challenged by municipalities, the state saw to that. There will be less of a chance to call the NIZ unconstitutional as the 106,000 to 107,000 clause is changed as well, but only after the NIZ was already put into place in Allentown. Now we still see cigarette tax going into the NIZ, Allentown school district funds collected from EIT for workers who live in Allentown will still go into the NIZ. Developments for J.B.Reilly will keep being funded by Allentown taxpayers and now there will be no one to complain except Allentown. I'm sorry to see things go this way. I see two choices left.
ReplyDelete1. The arena works and property values soar forcing most of Allentown to move to cheaper neighborhoods like Nazareth and Northampton. Gentrification of Allentown that forces the surrounding area to drop in value just like the gentrification of NYC did to Allentown.
2. The arena fails creating huge amounts of debt crushing the city. This in turn will spiral downward creating an ever expanding ghetto that will start to sing the whole Lehigh valley. One can look at the fall of the banks in Argentina or the situation in Greece or just look at the area around Reading to see how this works.
They were all for it, before they were all against it...
ReplyDeleteCallahan secretly endorsed the NIZ but knew it was politically expedient to attack it. If he is county executive you can expext developers to have a better taxpayer funded field day than they did during the Reibman years.
ReplyDeleteThe guy is a developer funded machine.
These anonymous accusations are simply amazing. Callahan considers a NIZ an economic development tool he'd like to have in Bethlehem, but objected to its size as well as the use of EIT. He was unwilling to join in the litigation, and explained his reasoning in a very public op-ed.
ReplyDeleteIf you want to trash the guy, at last be truthful.
"Stupid Fleabaggers"
ReplyDeleteStill employing those Alternative Methods for selling overpriced tickets to Chairman Pawlowski's record-smashing Palace of Sport, FDAA?
Now that Alan Jennings says he is ready to bury the hatchet, I sincerely hope that works out for you and your Capitalist Crony paymasters!
"IS PHANTOMS PRODUCT LABEL PERMANENTLY DAMAGED?"
ReplyDeleteWill the Phantoms always be known derisively as the AHL' Assisted Living Team?
"Stupid Fleabaggers" --- will all genuine bad blood and obvious bitter feeling from the Great NIZ Debate actually EVER go away?
Did it really need to be a RECORD-SMASHING Palace of Sport?
all this and more ... coming soon!
"Did it really need to be a RECORD-SMASHING Palace of Sport?"
ReplyDeleteyeah, the record for the most funding ever given to the worst performing team.
County Exec salaries are too low compared to Department heads in both counties. I can see how some Commisioners would want to limit qualified people especially if your name is Ott.
ReplyDeleteWow Bernie, you really have been rolled by the Callahan clan. That has been the word on the street but I didn't beleive it until now. So I guess the terrible record as Mayor, Charlie Dent spent thousands of dollars telling em about and you reinforced. was all a lie. Who knew.
ReplyDeleteI hope this will be the same with the City of Easton, they want to raise their rate to 1.75% for non residents, to pay for their pension plan. Do you know if this will stop this?
ReplyDeleteNo. It won't. This is not special legislation. I am looking into it.
ReplyDelete11:27, What you stated, both falsely and anonymously, is that Callahan was a secret NIZ supporter. I corrected the record with a few facts. You will be deleted from this point bc i don't have time for the nonsense. Go spread your lies somewhere else.
ReplyDeleteSo I'm sure you will be against Easton's commuter tax as it equates to taxation without representation too right?
ReplyDeleteYes. I think it's wrong.
ReplyDeleteSo what was the payoff, a net IPad?
ReplyDeleteIsn't it time for your drug cocktail?
ReplyDeleteTime to turn the page.
ReplyDeleteIn my opinion, one good thing came of this. I used to be quite worried that the role of the traditional press in this LV community was so compromised, so watered down as to be impotent. All through this story, my worst fears seemed to be proven as both "papers" provided biased pro-NIZ views. But to everyone's surprise, blogs, especially this one and Molovinsky's shed bright, uncomfortable light on this issue. They forced a discussion.
My congratulations to Bernie, Michael and to the people who commented, especially the ones who saw the EIT grab for what it was. It's enough to make a jaded citizen think that there might be hope.
Voice of Reason
I can’t believe a defiant Senator Browne would attempt to take any credit for fixing the NIZ legislation. Up until two weeks ago he continued to praise the NIZ legislation and indicated a legislative fix was not necessary. The acts he drafted met constitutional standards and a settlement was imminent. He had to be nuts!
ReplyDeleteThank heaven the state
representatives saw the legislation for what it was and forced a fix.
Senator Browne deserves none of the credit.
The folks that deserve the credit for getting this NIZ corrected are Hanover and Bewthlehem townships who took the lead in this fight as well as all the other locals who jumped on board. Politicians mostly suck, taking credit for something that they said could not be accomplished. Browne is a bum!
ReplyDeleteVoice of Reason,
ReplyDeleteWhat is really sad is that the lack of transparency concerning the NIZ and its creation has continued with its amendment. The legislation was NOT available online until AFTER it had passed. That's ridiculous.
Also, the complete absence of criticism by the dailies for this lack of transparency, and in allowing these legislators to hide on this issue, makes me question ... again ... their supposed objectivity.
In fairness, it is the newspapers (Morning Call, specifically), that broke the story about the use of EIT. I think reporters Matt Assad, Scott Kraus and Colin McEvoy tried very hard to be fair. Their reporting was fearless.
But there's an exception. Morning Call reporter Andrew McGill. He was used for the hit pieces on the townships.
As this story evolved, editors and columnists sided with greedy developers over transparency in government. It certainly appears that they enlisted McGill to write a report about a meeting he did not attend and then Bill White distorted it even more, opining on a meeting he did not attend, based on a report from a reporter who was not there.
Then McGill filed a RTK for legal costs incurred by the Townships so everyone could talk about the waste of money. He never bothered file a RTK request for all the legal costs incurred by Allentown and the myriad of agencies involved.
The Morning Call ridiculed Abe Atiyeh, caricaturing him a picture in the wooden hat, when he dared file a constitutional challenge and question his government. As it happens, he was right.
Morning Call columnist Bill White followed up with a column that attempted to ridicule Atiyeh further, published AFTER Allentown sued Atiyeh for exercising his First Amendment right to petition his government to redress grievances. Whit denies that Atiyeh's NIZ lawsuit had anything to do with it.
There was no attempt to get answers from state reps about their willingness to change the NIZ until it was apparent from this blog that state reps were working on changes.
Allen Jennings has never been one to bury the hatchet.
ReplyDeleteThe EIT tax was only a small victory for the townships. Let's not pop the champagne corks just yet. Is the subsidized $8 a square foot lease rate still in the deal when the average office lease rate in the valley is between $18 to $22 a square foot? If so, when the offices are built in the NIZ, there will still be a great big sucking sound throughout the valley as the current corporate lessess move to the NIZ. What will the townships do then to make up for the lost EIT when the employees move into the NIZ? Get ready Lehigh Valley tax payers, it is not over yet.
ReplyDeleteAgreed that this is by no means over.
ReplyDeleteSimmons for General Manager of the Hockey Team!
ReplyDeleteGot an idea. Lets do an inventory of all State and Federal facilities that are leasing commercial space in Allentown at premium rates. Move them to the NIZ tomorrow. Ironically, the taxpayer subsidized leases will benefit the taxpayer...or at least it could cushion the blow to the taxpayer and we could all have a level playing field again.
ReplyDelete