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.
35 comments:
Typical lawyer. Double talk. Screw this project.
Every tax break for a developer means higher taxes for homeowners and small businesses. Taxes across the board would be lower for everyone if we stopped giving these tax breaks. If the traditional LERTA isn’t good enough to sell the site then perhaps the owner should lower the price. So sick of these rich developers demanding special treatment.
The only good lawyer is the one any of us is forced to hire. In a field full of slithering reptiles, Stan Margle is a rare breed of obnoxious liar. I remember him from high school as a very crafty southpaw. Now, he's just a dishonest POS. He also lacks any tact, as his lecture certainly created solid opposition to his pitch for county cash. Reibman should be hunted down and fined for every day that each window was broken. That Margle's advice to the borough let this go on for decades speaks to his incompetence and lack of concern for Wilson, while he gladly cashed their checks. Remember, half of all lawyers graduated in the bottom half of their law school classes. Good lawyers don't hump for muni work, either. You get what you pay for.
"Until I have more control, I don't think I could support something like this," he said.
This shows how clueless this Commissioner is, does he really think He has control of local zoning matters because he is on County Council?
The building is of no use! It is not an historic structure and the cup on top is not an iconic brand for the boro. Get over it and level it! Then start from there.
It's ridiculous to give tax incentives to yet another warehouse. If Nat Hyman can renovate all of the blighted buildings in Allentown into nice apartments with absolutely no government money, this guy doesn't need our money to make warehouses.
"This shows how clueless this Commissioner is, does he really think He has control of local zoning matters because he is on County Council?
Actually, this shows how clueless you are. When a developer puts his hands out and asks for $, you can demand quite a bit in return to benefit the public. When Chrin wanted a TIF, Ron Angle got $2 million out of him for open space, a fact that the County Council hates to mention.
"Stan Margle is a rare breed of obnoxious liar. I remember him from high school as a very crafty southpaw. Now, he's just a dishonest POS"
If you refuse to ID yourself when you personally attack someone, you yourself are dishonest.
I let Stan have it, but signed my name. Also, I have seen him at Bethlehem Township on numerous occasions and he has never been arrogant or condescending. He was that way last night, and I noted it.
When Chrin wanted a TIF, Ron Angle got $2 million out of him for open space, a fact that the County Council hates to mention.
Not true, it was never paid, they found a loophole to pay a fraction of this amount
"If the traditional LERTA isn’t good enough to sell the site then perhaps the owner should lower the price"
I have no idea why a county council who was insulted the way this council was would even bother to consider, let alone draft, a brand new LERTA. Reibman has already had a TIF and a KOZ. Enough already.
Actually, it is true. Incrementally, the $ has come in. Lamont McClure actually mentioned it at a recent meeting.
Lori let Margle abuse Kevin. Had that been McClure standing there she would have gaveled him out of order and shouted him down. Lori lost control of that meeting and the debate. Shame on her.
Lori Vargo Heffner and John Brown are the new dynamic duo of delivering warehouse LERTA tax breaks to the Lehigh Valley
This might be the worst Council I’ve seen in years. They make me long for the days of Hayden Phillips and Glenn Geissinger.
Suggestion... invite Bruce Gilbert to the party... Make County Commissioners Great Again!
LERTA's, TIF's, KOZ's, NIZ's, etc.: They're all designed for government to create an unequal playing field in favor of politically well-connected property owners or developers.
If the current owner can't develop the property without government assistance, then let him sell the property, absorb his (not the taxpayers') loss, and let the next owner step up. It shouldn't be up to the taxpayers of Northampton County or any other political subdivision to bail the current owner out.
The fact that you already have a second developer (Hyman) stating that he can develop the property without government assistance makes this a no-brainer. Even if Hyman wasn't in the picture, why not hold the property owner to the same standards as everyone else and cite the living hell out of them until the property is brought up to code?
What is likely happening is that the owner wants more for the property than someone is willing to pay, the developer wants a greater projected return on their project, or both. So naturally they've gone to the only rubes willing to even consider giving that to them - local government.
I would also argue that LERTA's, TIF's, KOZ's, NIZ's, etc., do more harm than good. Aside from the obvious effect on property owners not getting the break, they cause projects to take longer as everyone tries to line up at the trough for a similar arrangement.
Like Cusick and Brown, Geissinger and Gilbert would fall over themselves in handing out corporate welfare to this developer. I think Hayden would likely say No.
So, let me get this straight. Council is bullied and lied to, and instead of killing the thing they want to help ?
"LERTA's, TIF's, KOZ's, NIZ's, etc.: They're all designed for government to create an unequal playing field in favor of politically well-connected property owners or developers."
I pretty much agree. The instances in which there is a public good are far and few between.
Don't Level it! Sell it to Nat. Have you seen how he has taken the shit in Allentown and made it into beautiful, and desperately needed housing?
"Actually, it is true. Incrementally, the $ has come in. Lamont McClure actually mentioned it at a recent meeting."
The amount received so far is $1,084.373.85. According to what I've learned, we might fall short of $2 million bc Brown, when he was Exec, cut Chrin a special deal. But even with the deal, I believe we will get there or come close.
"So, let me get this straight. Council is bullied and lied to, and instead of killing the thing they want to help ?"
I'm having a tough time wrapping my head around that one. They actually crafted their own ordinance creating a handout. It's completely insane.
When Kraft gets back to Council, Lori won’t be President.
So why doesn’t the county buy it and create much needed public housing with it. Northampton County is sorely lacking in affordable housing for its residents. Seems all the developers are interested in are hi end apartments geared toward New York and New Jerseyites,at rents up to $ 3000 or more
Friendly reminder: these tax schemes NEVER pay off for taxpayers. I propose an ordinance that prevents any developer from getting a dime until all broken windows are repaired first. It's a simple but firm act of good faith vs. an angry and unprofessional lecture and demand for handout. Shame on Wilson for letting things like this go on and on. Wilson used to be a gem. Now, it's just an extension of the worst part of Easton.
"When Kraft gets back to Council, Lori won’t be President"
Neither will Kraft.
Anon 1:20 Why should the county buy it when Nat Hyman is willing to buy it and build affordable housing? Reibman is just greedy! The other writer is 100% correct...he should have been cited for the last 20 years for letting that building deteriorate. Mr. Hyman would ask for no taxpayer money and turn into nice affordable housing. It's a no brainer! Sell to Nat Hyman Joe!
A warehouse is the worst F'n idea for that building. Two high schools adjoining the property and Rt.22 ramps. At least twice each weekday the traffic is horrendous during the school year and bad during rush hours even when school isn't in session.
It will be a bigger nightmare than it is now.
Think those truckers will stick to making their way to 22 and 78? No.
They'll take secondary roads like Freemansburg and William Penn, delaying traffic on those, as they try to get out of the area.
Tax breaks? How about Wilson just condemning the building. Call it blighted and tear it down.
Wilson council has no common sense. I heard they bought a police vehicle, taking funds from their sewer account. If they did, I'll bet they didn't acknowledge the "loan" on the books. A loan that has to be paid back to the sewer account with interest.
Lying…arrogance…bullying…condescension.
Lawyer…county executive…county council…..developer.
Pot…kettle…black.
I received an off-topic comment anonymously asserting that I have been defamed by someone on social media, and repeating it here. I am aware of the libel, which is per se, but obviously will not publish it here.
That facility is large enough that it can easily be converted into an iconic building like the velodrome. Think of it, we can come see Bernie pedal his butt off. Let your imagination go. How about a center like the PPL Center? Wilson could get their own Hockey team.
"Two high schools adjoining the property and Rt.22 ramps. At least twice each weekday the traffic is horrendous during the school year and bad during rush hours even when school isn't in session."
You realize both schools and a large manufacturing facility with all those loading docks was there before you were born, right? Let's do some history before posting dumb things, slugger.
Both schools were not traffic bottlenecks but have become so as the population has grown. That has happened in the 40 years since Reibman has owned the now shuttered plant. That's history, slugger, and if anyone is being dumb, it is you.
Remember Victor Balata and the other industries that lined 25th and William Penn? No? The place has always been a heavy truck congestion area. That's just dumb history. 🙄 But I've only lived here 66 years.
Post a Comment