Back in June, Northampton County Council was asked to give a tax break for the Dixie Cup property located in Wilson Borough. Owner Joe Reibman has owned this property for about 40 years, but has been unsuccessful in his attempts to market it despite getting plenty of help from Northampton County. New Jersey real estate developer Nick Tsapatsaris may have thought he was a white knight in shining armor. Though he was not on the agenda, he told County Council in June that he was willing to take the Dixie Cup off Reibman's hands. He pledged to keep the iconic Dixie Cup in place atop the building, but the rest would be used for storage, offices and a "last mile logistics facility," i.e. warehouse. He added that it would be impossible, just impossible for him to move forward without a LERTA tax break. And not just any simple LERTA, where increased taxes are phased in over ten years. His proposed LERTA would only start once 85% of the improvements were completed or within four years, whichever is later. This is a LERTA that could last as long as 14 years. Northampton County Council finally considered this proposed LERTA last night, and voted 8-1 (Tara Zrinski being the sole No vote) to table the ordinance. It was pretty clear that there was no desire to give this developer a break. Then incredulously, they introduced a more traditional LERTA for the Dixie Cup site and will vote on that one in two weeks.
In public comment, Wilson resident Armando Moritz-Chapelliquen warned County Council what they were facing. He told them he had been rebuffed at every turn in his attempts to learn about the proposed tax incentive. He said he was berated by a borough council member and that his calls to Wilson Borough Solicitor Stanley Margle were never returned. He attempted to speak at a Wilson Borough Council meeting about the issue on May 9, but was subjected to a "collective pile-on" by other borough council members during the three minutes he was allotted to speak. He was eventually told to "sit my butt down and listen."
Was Armando exaggerating a bit? I'd be tempted to think that until Stanley Margle, Solicitor to Wilson Borough, demonstrated an arrogant and condescending approach to County Council. He was essentially serving as a pitchman, not for the residents of Wilson Borough, but a New Jersey developer.
He told County Council that they had to forget all about the proposed use of the property and just consider whether it is deteriorated and blighted. The property is certainly a mess, but who's fault is that? That's the question Council member Kevin Lott had for Margle. Lott contended that the broken windows at Dixie Cup are a "maintenance issue" that should have been addressed by code enforcement. He added that asbestos is in virtually all older buildings and is no evidence of blight. He also wondered why no one had bothered to reach out to the county as a LERTA on steroids was being drafted.
"Frankly, you don't know what you're talking about," responded Margle to a man who spent his career in precisely these kinds of construction projects. "You asked where the borough has been in coming to [the County] for assistance. Where has [the County] been [to assist] the Dixie Building? Where has [the County] been [to assist] Wilson Borough? Where have you been? Nowhere. That's bull. So don't sit there and tell me as Solicitor to the Borough that we should be reaching out to County Council. Bull."
"Well, then don't bring your project here," countered Lott.
"It's not a project," insisted Margle. "You're demonstrating a total lack of understanding. ... Again."
Lott later wondered whether Wilson residents are dished the same kind of treatment he received from Margle. "If I as a Council person get attacked by a lawyer, by the [borough] solicitor like I did here, I can only imagine the way the residents are being treated."
If anyone has a total lack of understanding, it's Margle. The horse has already left the barn. A developer has already told County Council he plans to use the tax break to help finance a warehouse, which is the last thing the County needs. So his "look over here but not over there" argument was rejected by most Council members who discussed it. It was, frankly, insulting.
In addition to being insulting, Margle was wrong on the facts, as Council members Tara Zrinski and John Cusick both pointed out.
The County has tried to help both the Dixie Cup and Wilson Borough on at least two occasions. In 2006, County Council gave Dixie Cup owner Joe Reibman a tax break known as a TIF so he could develop the old factory with condos. That project foundered. Then County Council took an additional step and gave Reibman the mother of all tax breaks. It placed the property in a Keystone Opportunity Zone. This would exonerate all tenants and the owner from all taxes, except federal income taxes, for ten years. Even with this substantial tax break, all Reibman could manage to do is allow more windows to be broken.
Zrinski stated, "I will be voting NO on any LERTA in front of me." It was clear from the comments of other Council members that they were unhappy with both the LERTA and Margle's bullying. Given Reibman's abject failure to develop the site, coupled with the arrogance displayed by Wilson Borough Solicitor Stan Margle, I fully expected Council to reject the tax break. They instead voted to table the ordinance, with Tara Zrinski being the sole No. Then they introduced a new ordinance that would grant a more traditional LERTA. Kerry Myers and John Cusick are sponsors of the watered down LERTA.
This seems to be a pointless exercise as most Council members, with the possible exceptions of John Brown, Kerry Myers and John Cusick, seem opposed to any LERTA at the site.
Brown stated that no one would take over the property without significant incentives. That, however, is untrue. Real estate developer Nat Hyman, in a telephone interview, stated the following: "If the price that guy is paying for the Dixie Cup site is reasonable, I will match it and build housing instead of a warehouse and ask for no tax subsidies."
Council member John Goffredo, who initially seemed supportive, was bothered by the fact that the County would have no say in how the property was redeveloped. He even suggested that a developer could demolish the building. "Until I have more control, I don't think I could support something like this," he said.
Should County Council decide to approve a watered down LERTA in two weeks, Executive Lamont McClure has hinted he will veto it.