Local Government TV

Wednesday, January 16, 2019

Allentown State Hospital Tract Being Sold to Tax Cheat


Let's say that you wanted to buy property from someone. You're willing to pay $2.57 million. Let's say the Seller is amenable but tells you it must first spend $15 million to knock down all the buildings located there. What's more, the Seller is going to give you three years to get a few investors to join you. During that time, it is spending $2.2 million a year to maintain the buildings it wants to knock down. You'd say that Seller is nuts and belongs in a state hospital. That Seller, unfortunately, is the Commonwealth of Pennsylvania. The property in question is the Allentown State Hospital, which is where our glorious legislators belong. Without question, its deal to sell the 200-acre campus for $2.2 million to a private party is fiscally irresponsible. It's actually borderline lunacy until you learn who's involved.  Then it really begins to smell.

In their infinite wisdom, state officials decided some years ago to close down the state hospitals. The argument was that residents there would do better in community mental health programs. But that's bullshit. Funding for community mental health has been cut. The result is that some severely mentally ill people are on the streets. They have been flooding our jails, too. In Northampton County, 72% of the jail population is mentally ill. Twenty-three percent suffer from serious mental illness, with acute symptoms.

After this monumental error, state officials had to decide what to do with what had become a ghost town. Allentown Mayor Edwin "Fed Ed" Pawlowski wanted it, and told state officials that he would seek requests for proposals from developers, entrepreneurs and nonprofits. You know, the same people that lined his campaign coffers. Fortunately, at that time, it was known that he was under federal investigation  for political corruption.

So the state began negotiations for a direct conveyance. No requests for proposals. No advertising the property. Nope, someone from Doylestown mysteriously appeared and is negotiating to buy the property. A direct conveyance to an outfit called TCA Properties was unanimously approved in the land of midnight payraises in 2017. There's a three-year period until the sale actually occurs.

Like fish, any deal that lasts that long begins to stink.

How did the state line up TCA Properties, who State Representative Mike Schlossberg referred to as a "serious developer." What makes him a "serious developer" is the fact that he is represented by former State Rep. Jennifer Mann, now a lobbyist and a wheeler-dealer with a real estate license.

Though Mann is a registered lobbyist, she has failed to list her work on behalf of TCA. How did TCA get lined up with the state?  Mann is currently lobbying to get a special tax break for TCA from the county, Allentown and the school board. State law fails to compel lobbyists to register for dealings with local government.

We all know how that worked out for Mike Fleck.

Mann is not doing this for Allentown. She is doing it for herself and a very nice commission (as a realtor) on the sale.

Now let's take a closer look at this "serious developer," shall we? The principal of TCA Properties is David Ali, who operates both TCA Properties and another one-man outfit called Impala Builders. He runs both businesses out of his house in Doylestown.

Bucks County records show the following liens against this "serious developer":
  
2018-73860. Pa Dept of Revenue v. David J Ali and Maria L, filed 8/8/18 for $10,107.77
2011-74202. Pa Dept of Revenue v. David J Ali and Maria L, filed 11/30/11, for $5,710.83
2008-72320. Pa Dept of Revenue v. David Ali, filed 7/29/08, for $6,721.37
2007-70914. Pa Dept of Revenue v. David J Ali and Maria L, filed 4/9/07, for $$6,049.49
2010-21825. IRS v. David J Ali & Maria L, filed 10/4/10, for $4,789.88
2004-04444. EARTHSTAR BANK v. David J Ali & Maria L, foreclosure complaint filed 7/8/2004. Terminated 10/12/06.
2005-20094. IRS v. David J Ali, filed 2/8/05 for $ $87,270.01.
2011-07439. AMERICAN FAST FREIGHT INC v. IMPALA BUILDERS LLC, filed 8/18/11, for $8820.14.

This is a "serious developer"?

State Senator Pat Browne campaigned against opponent Mark Pinsley, listing nonexistent liens. These liens are very real. No government, state or local, should do business with someone who collects tax liens like candy.

In case you're wondering whether anyone aside from me has noticed that TCA is far from the "serious developer" that State Rep. Mike Schlossberg pretends it is, let's look at what The Morning Call itself said about TCA and David Ali back in 2017:
Ali’s companies, TCA and Impala, also are named in a March 10, 2015, report by the Department of Veterans Affairs Office of Inspector General. The report raises questions about how Ali’s companies handled the purchase and sale of property in Fayetteville, N.C.. The property was owned by the family of a Veterans Affairs employee, leading to the finding that she had “an appearance of conflict of interest” by participating in the evaluation and sale of land used as a VA health care facility, according to the report.
This is a "serious developer"?

Sign me up. I can make deals from my estate atop the Nazareth Army Navy store, sitting in my underwear.

Over the weekend, Nat Hyman contacted the very state legislators who want to sell this property to a tax deadbeat. His interest was reported in a Morning Call story that originally was very positive. Then reporter Emily Opilo got State Rep. Mike Schlossberg to trash Hyman, which seems to be a hobby for local Allentown officials. His remarks were so vitriolic that the newspaper decided to tone it down and remove some of them.

I guess it can only handle one libel suit at a time.

Why are Schlossberg and even Browne so willing to trash Hyman? Simple. Jenn Mann represents TCA, not Hyman.

Just a few days ago, Schlossberg sent a missive to The Parkland Press, saying "In a perfect world, the Allentown State Hospital buildings would be preserved and re-purposed to create jobs and grow our economy, but we have to face the facts."

Now he has a "responsible developer" who wants to preserve the buildings and create jobs. He is seeking no TIF. But he lacks a connection to Jenn Mann.

Nat Hyman is no Ghandi. He's in this to make money. I do not mean to suggest that he should get the sweetheart deal intended for the tax cheat from Doylestown. It is clear that TCA lacks the resources to do the demolition. Instead of wasting more money, the state should seek proposals from interested developers and do what is right for the Lehigh Valley.

Not Jenn Mann or her minions.

56 comments:

  1. I actually thought Nate would prevail. Isn't it mandatory to have a bidding process if two parties are interested? Good reporting. You also managed to put a new perspective on the Army Navy Store.

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  2. This sounds so gay!

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  3. Is Michael Schlossberg the guy who voted twice in Harrisburg?

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  4. Corruption in government is an epidemic, who sells a property and then pays to have the building raised. Why not advertise this property for a few months, then have an old fashioned auction with financially approved bidders. There needs to be legal action taken against people who try to scam the taxpayers even if they dont succeed.

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  5. From the original post: "...it is spending $2.2 million a year to maintain the buildings it wants to knock down."


    And now a State Legislator (Schlossberg) is saying that the buildings cannot be saved because they are in such poor condition, according to the Morning Call.

    So what was the $2.2 million per year being spent on? Who was receiving that money? Was the work (on maintaining the buildings) actually being done? Was that work being steered to campaign contributors or other Mann clients?

    Maybe that's why Schlossberg is so eager to see the buildings torn down. Demolishing the buildings will cover up whether the work was actually done.

    The sale transaction is only part of the likely corruption going on here. The other part is where the maintenance money has been going. The state should provide a full accounting of what was spent - by year, listing every payment, and naming every vendor that worked there.

    That list would be revealing.

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  6. Schlossberg has the sweetest, homiest FB page.
    He is such a nice family man and it’s all right there to see,day after day.
    I mean it’s just too darn cute for words and his constituents just adore him.

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  7. Disgusting facts, great reporting on this corruption.

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  8. I think the $2.2M/ year to maintain the properties is a boogy man number. I am sure you can find 6 grass cutters and snow removal staff with the right equipment for a salary of $50K/year. Add $100K in equipment and fuel expense. Add $150k/year in utilities and you are still $550K. Are they sinking $1.5M/year in improvements? Sure like to see how they come up with the $2.2M and the contract details.

    Save the main building and then list the property.

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  9. Mann pulls the strings in that town.
    You ain’t seen nothing yet.

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  10. It's funny that in the latest article about the State Hospital, the Morning Call doesn't:

    1) Bring up the buyer's past liens that you've listed here.

    2) Ask for and publishes a list of the vendors who have been "maintaining" the property and what they've been paid.

    3) Ask probing questions of our State politicians about why the building is being sold for a song

    4) Ask why the state decided to tear down the buildings in addition to selling it for a song

    5) Ask Schlossberg why he is claiming that the buildings can't be saved because they are in such poor shape, after the state has been spending $2.2 MILLION ANNUALLY to preserve those buildings

    Schlossberg was a member of City Council during part of Pawlowski's term in office. Mann was heavily involved in Allentown during much of Pawlowski's term as well, particularly during periods when (former Mann staffers) Schlossberg and Schweyer were also on City Council.

    You would think that the newspaper, which was oblivious to the largest municipal corruption scandal occurring in its own back yard, would ask those types of basic questions and publish the answers. Between the Morning Call missing the City Hall scandal and their lack of basic inquiry here, I have to wonder about them as well. What happened in City Hall doesn't happen if the press is doing their job. Are they waiting for the FBI to do the work for them?

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  11. Rep. Michael SchlossbergierJanuary 16, 2019 at 7:01 AM

    Bernie, this deal is on the level. I voted for myself and 17 other legislators who were on a junket, but probably would have gone my way. And to be clear, Jen Mann is as upstanding, ethical and transparent as I am. Please get back on the reservation, Bernie. These types of posts are not helpful.

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    1. Bernie, is this twit talking about the same woman that dances on bars in Harrisburg as well as gets into bar room brawls?

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  12. Is this property in one of those Census tract, tax beneficial zones? One of those so-called "Opportunity Zones? Sell it to Jarrod or a Hospital for $5M and walk away.

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  13. or university for satellite campus.

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  14. Mikie and Lil’ Mike are wholly owned subsidiaries of Mann Inc. Even with the Penguin gone the place stinks to high heaven.
    It’s a shithole country in the City Without Limits.

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  15. That the Morning Call is a joke is the kindest thing one could say about it.
    The Rileyville Reporter has been a contributing presence in the ongoing corruption in that cesspool. Bill White among others should have been indicted along with Pawlowski.
    The Mayor For Life was just the icing on the cake.

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  16. Mikey thinks bernie's post isn't helpful, expect insults to follow.What a bunch of creeps.

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  17. Great reporting Bernie!

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  18. As a constituent, I was really disappointed to read Rep. Schlossberg's political rant against Nat Hyman, who appears to be trying to do something good. There was no need to be so negative when so many would love to see these buildings preserved.

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  19. "Mann pulls the strings in that town.
    You ain’t seen nothing yet."

    I'm waiting for her Roy Afflerbach style speech where she feels that duty calls and she must run for Mayor to give back and serve her community. Another political opportunist to further ruin Allentown while serving their own self interest. Allentown deserves to be managed by a qualified City Manager, not a bunch of Democratic Party hacks.

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  20. When the Allentown State Hospital was shut down the East Allentown Rittersville Neighborhood Association said it wanted o be at the tall discussions related to the future of the property.

    At the time of the statement, the 14th Ward and 15th Ward of Allentown ( East Allentown) was divided into three legislative districts … Our representatives were Steve Sammuelsson . Karen Beyer and Joseph Brennan in the House and Pat Browne in Senate … In 2011 Justin Simmons would replace Karen Beyer as State representative. Later Dan McNeil would replace Brennan before the East Side was reapportioned into 2 districts and Mike Schlossberg and Pete Schweyer became our State representatives … At the time of closing of the State Hospital both Schlossberg and Schweyer were on the Allentown City Council and Jennifer Mann represented the other side of Allentown. Ed Pawlowski was Mayor and there were no East Side resident on city Council … The same situation exists today.


    The truth being no one from the East Side was ever brought to the table .. The state right ever closing gave the Allentown Economic Development Corporation headed by Unger 50 acres to development within two years … That project fell through and the land was returned to the State … Unger by the way is on the Allentown Zoning Board … After that we heard little about what was going on concerning State Hospital grounds from either Schlossberg or Schweyer except for a statement earlier this year from Schlossberg o Midway Manor and Us that he will keep us in touch when something happens there … Our proposal was for the preservation of important buildings now we hear that Schlossberg is Ok with the State tearing them down … No word about what they will do with the Water Tower which looks like a golf ball on a tee from a vantage point at Arts Quest in Bethlehem 7 miles away.


    And the truth is the neighbors of the East Side still want to be at the table for any resolution of re-use of state Hospital grounds … And East Siders still want the School District to build a new Middle School in East Allentown to replace the land locked Harrison Morton School.


    As of today I still serve the East Side as Acting President of the EARN … But since I moved to a rural township in the rough uplands terrain of the eastern Mahoning Hills area of Carbon County that sits between two ridgelines of the Ridge-and-Valley Appalachians, but with multiple hilltops, the East Side needs someone currently living there to step up to the plate and do battle for the best interests of those whom remain living there … My heart is in that effort...And I truly hope that EARN'S State representative and State Senator, the Mayor of Allentown and City Council don't betray the interests of the East Side in their actions. Indeed they use the East's Side's wonderful ESYC facility to present their messages and causes but do they truly seek to meet our wants and needs or do they want to use the East Side for their political benefit.

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  21. In Response to Schlossberger's post:

    Mike:
    I made an offer to buy a property...period. For you to respond with the vitriol and hateful personal attacks against me that you did, was beyond the pale. As Shakespeare wrote in Hamlet "The lady doth protest too much, me thinks." There is a reason that you want this deal with TCA to go through so badly.

    And what you haven't told the taxpayers yet is that in addition to the $15m demo costs, you and your mommy Jenn Mann (who can't even spell upstanding and ethical and is as transparent as a concrete block!) have approached the County, School Board and City for TIF financing!! Is that why you both want incompetent Ray O'Connell to be Mayor so badly?

    All you had to do when I made my offer was to say no. Instead, you launched a personal attack and questioned my integrity and said I am not reputable because I had a fire in a building... is the inference that I set the fire?! It was my tragedy, my loss!

    And now that Bernie has found out the truth about TCA, your audacity is all the more glaring! You say I am not reputable but this clown from Doylestown is?? All I did was invest $100,000,000 in Allentown and take 14 buildings in downtown Allentown similar to the state hospital (including the long shuttered Livingston), bring them back to life and put them back on the tax roles for the city....without one cent of government assistance! Instead of thanking me, you attack me and my reputation!

    You said just last week to the morning call that if a reputable developer came forward who wanted to preserve the buildings, you would support that. What changed in the last week?

    The building has been closed for 9 years and TCA has had the agreement of sale since 2016. I asked you for 1 week to review the documents, and potentially save the taxpayers $15,000,000 and save the buildings, which you claimed to be your desire. You said NO! Why? The only plausible answer is that you and your boss Jenn Mann have a vested interest. There is not other possible answer.

    You likewise said that I am doing this as a campaign strategy to run for Mayor. I am NOT running for Mayor!

    Finally, you went on TV and said that my offer is not a serious offer and no developer buys buildings without walking inside. I have bought many buildings without walking inside because the important thing is the structural integrity of the building. Likewise in my letter to Senator Browne, I specifically stated that I need access to get inside the buildings. Finally, I have a masters degree from Columbia University Graduate School of Architecture and Preservation and I have been doing this job since you have been in diapers. So how about you don't tell me how to do my job and I won't tell you how to do yours.

    Nat Hyman

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  22. From Bernie's original post:

    Just a few days ago, Schlossberg sent a missive to The Parkland Press, saying "In a perfect world, the Allentown State Hospital buildings would be preserved and re-purposed to create jobs and grow our economy, but we have to face the facts."


    That's an interesting quote, because in a perfect (or at least sane) world, Schlossberg's lies and duplicity would be recognized and he'd be driven from office by townsfolk carrying torches and pitchforks.

    Fortunately for him, he "serves" Allentown, where he only has to keep the Democratic Party leadership happy to make sure he runs unopposed in the primary.

    The democrat voters who have been willing to stomach this guy for so long are reaping what they sow.

    The "facts" that Schlossberg and those who voted for him have to face is that this is a prime parcel of land that we now know could have been redeveloped in a way that would have had multiple benefits for East Side residents. If those same residents feel the East Side is being neglected, I suggest they review Schlossberg's last few election results to understand why.

    Schlossberg has been caught in the unethical act of ghost voting, and now been caught outright lying to East Side residents. If those residents are not going to hold him accountable at the ballot box, he really doesn't need them.

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  23. One-Party Town Politics.

    Because Democrats are simply more special.

    They care deeply.

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  24. Nat is so dumb he thinks the comments at 7 AM are from a state rep. Contemplate that folks. He wants to be your mayor! Nice sets of degrees but no common sense.

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  25. I think your article needs to be in the hands of the FBI? If not at tleast the PA Auditor General & Attorney General-

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  26. I don't know who is creepier: Mann or Schlossberg? Its a sad state of affairs in Allentown, that these two people call the shots- what an embarrasment? The voters in Allentown need to wake up!

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  27. Anon @8:39
    You are 100% right!! I was skimming through the comments quickly and saw that post and then one after it referring to "Mike's post" and got so annoyed that I immediately started typing a response. I'm an idiot!

    Nat Hyman

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  28. In fairness to The Morning Call, it did raise the same concerns I raise about Ali back in 2017. But in the account this week, three reporters failed to note the problems with Ali. The focus of the first reporter appears to have been to note Hymn’s interest. The other two reporters got reactions. the trashing remarks from Schlossberg were injected that without balancing out the story to note the paper’s own concerns about Ali. This is called bias, something the newspaper denies. The paper also fails to note the Mann connection, something it could discover by merely talking to the school board, county commissioners or school board. That is who she is lobbying to get a TIF for Ali. This is why using three reporters to write a story is not always a good idea. It did that with Nothstein and it was a disaster.

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  29. Scotty, beam me up
    On another note, Cynthia Mota is it a joke and doesn’t belong on Allentown City Council....or any council for that matter.

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  30. Note to Dennis Pearson:
    Don’t take yourself so seriously.
    The East Allentown Rittersville Neighborhood Association is really a meaningless little clique with no influence or power. Stop pretending that it’s something real. Nobody cares dude.

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  31. Leave Mike schlossburg alone, he's got mental issues he's dealing with.

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  32. Maybe it’s his conscience. He at one time was very idealistic yet kind-hearted. Now he has become a partisan flunked.

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  33. This whole discussion has become way too personal. We need to get back to the issue of what should happen to the property, and which entity is most likely to be able to accomplish it.

    I'd suggest an initial study of which lands would be most appropriate for a replacement middle school, without harming the use of the remaining lands. Then have the state give that land directly to the Allentown School District, without using a middleman.

    Then there should be an open request for proposals for use of the remaining land, with the proposals made available for public input. That type of proposal process also considers the capabilities of the developer, and their past projects. Meanwhile, the State could demolish the buildings that clearly have zero reuse value, while delaying the demolition of the buildings that have potential and have historic value.

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  34. So sad how Mike and Jenn serve their own interests and not the interests of the community or the people they serve. I think this is CRIMINAL and should be reviewed by a higher authority.+

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  35. Nat, I appreciate your response. As you know, I'm the most ethical person I know; with Jen Mann coming in close second. Your offer to buy the land and save taxpayers' money is duly noted. But this deal is best handled behind closed doors, which I'm freely admitting, in an effort to be as transparent as I'm capable of being. Thanks again.

    Yours in party solidarity,

    Mike

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    1. Wow, really Mike? This sounds like you but its not like you to admit it.

      Transparent but only in private.

      This is the beat satire I have seen in some time or the most Freudian comment from a rep ever.

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  36. Anonymous 1/16/19 9:27 AM


    EARN is an incorporated non profit community association in the Commonwealth of PA … Indeed in the past more people were involved … But I refute your statement that overall the group or clique you call us has been totally powerless in getting certain things done for the East Side despite how you evaluate our performance … Indeed we are not in the clique that controls Allentown … We are no way in the power structure .. But in your hiding your true identity, and that says something to me also, maybe you are speaking for that clique or one of them that just wanted us to shut up and leave them alone... … Indeed I know there are those within my former community that simply don't care … But equally there are those who do care and appreciate what we attempted... Really I don't overestimate where I stand in my former community and outside of the community ..But I know I stand tall in what I attempted to do for my former community and the larger community... What I want for my former community is that the grounds of the former Allentown State Hospital be developed in such a way that the interests of the people still living in the area not be abused. I really don't care whether your thoughts are personal or political … I attach my good name on what I write … Something in this case you obviously didn't have strength to do...

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  37. ”This whole discussion has become way too personal. ”

    I agree. The personal pecuniary interest of Jennifer Mann is quite disgusting.

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  38. Schlossberg is a transparent political hack who hides behind his family the way Fed Ed hides behind Jesus. The guy is a vicious pol who has dozens of followers who love the “look at me I’m so cute and so are my kids” routine.
    It’s pathetic.
    Anyone who uses their children for such shameless political pandering is beneath contempt..
    This toad won’t age well but he is the type who will rise to the top in a putrid state system.

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  39. There's been talk for a long time about not having a public school on the eastside. I've been inside a couple of those buildings. I think it's possible at least one of these buildings could be converted into apartments. How about a medical building since the eastside is currently underserved?

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  40. Who is going to protect us from the Mann mob?

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  41. {Please join Mikey for his book signing at Barnes and Noble in Easton later this week. he will be signing books and kissing babies, preferably male. BO is welcome!

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  42. The FBI could have kept their investigation open indefinitely.
    You know it.
    I know it.
    Anyone paying attention knows it.

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  43. Bernie facts remain state officials create a farce and the lower of the TOADom pole carry out acts of urgent emergency! There for creating false narratives just like and similar to the city pensions mmo, that still seems to be the sinking sunk ship that has only one indicted but many participants! These slimy land dealings have been going on for along time. Just take the sort trip to the State Hospitals Farm airport land in Hanover township that was in court battles for years for the ABE international airport. Deed searchers needed, a little deeper please Bernie there are and is common denominations with different circus carnival props for OZ?

    These people or things as I like to call them that supposedly are representatives of the people are nothing more than gluttonious pigs with fruitloop lipstick on. They make better actors in there Shakespearean faeces that are nothing more than man made catastrophes dressed up as coincidently accidents perpetrated against the innocent indigent ones to terrorized and than rob and pilliage there families assets.

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  44. Were you ever in that hospital ! (Lol)
    I'm not going into long painful explanations about my personal life I'm not a liar. I hate defending myself every time I leave even the slightest comment. If you must know my father was a patient there. Screw you pal!

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  45. Schlossberg is a disturbed individual.
    Who knows what’s behind the performance that he
    presents as a personality. It must be a lot of work but his gig is better than having to go to a real job.

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  46. Allentown is circling the drain.

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  47. Rep. Michael SchlossbergierJanuary 16, 2019 at 4:59 PM

    I don't believe Allentown is circling the drain. But I appreciate the feedback and, in the event is is, I've been working closely with Jen Mann to secure a deal on all required drain components (pipes, traps, screens, etc.). All negotiations may be above board, transparent and conducted behind closed doors, as is customary with these things. I fully expect Nat to come on here and brag about getting less expensive drain stuff ... yadda, yadda, yadda. He's always bragging and it's not helpful. I may have several votes, as is customary. Others may vote once at a time. Thank you for the constructive discussion. You've turned Bernie's and Nat's sour lemons into lemonade.

    Your friend,
    Mike

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  48. Please stop attacking me. I am your representative. You are lucky that I, as a native New Yorker brought my superior intellig4nve to the Lehigh Valley. I am better at running your affairs than you stupid Valley people are. Hell, I thought you were all Amish.

    This is a hit piece against all bi-sexuals. I am appalled at your insensitivity.

    Please attend my book signing this weekend. I will pose for pictures for a small donation.

    Mikey Slongburglar.

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  49. I think you have a valid point. Keep Mann far away

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  50. Not sure why everyone is quick to attack Hyman. He's buying property in Allentown, lives in Allentown, and is keeping his investments in Allentown. And if the site can keep the buildings, this should be the #1 priority.

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  51. Nice reporting, Bernie.

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  52. Public assets going into private hands.

    The state politicians deciding to sell public assets dedicated to mental health is not insane, it's criminal.

    Now it's just a matter of making sure this theft of public resources is competently and fairly stolen.

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  53. My daughters and I walk around the state park driveway for the past 5 years and never had an issue doing so until tonight. We were confronted by a security guard who drove his car in front of us to make us stop from moving forward. This frightened my girls and also made me ferocious. He called the cops on us stating that there was 5 intruders inside making it seem as if we were making a menace. We loved to run around the state park driveway and now my girls are scared to walk around the block. This incident needs to be heard. This is not ok!

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  54. My daughters and I walk around the state park driveway for the past 5 years and never had an issue doing so until tonight. We were confronted by a security guard who drove his car in front of us to make us stop from moving forward. This frightened my girls and also made me ferocious. He called the cops on us stating that there was 5 intruders inside making it seem as if we were making a menace. We loved to run around the state park driveway and now my girls are scared to walk around the block. This incident needs to be heard. This is not ok!

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