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Friday, August 19, 2022

Yuck! - Dixie Cup Building Tax Break Fails in a 8-1 Vote

Northampton County Executive Lamont McClure can put his VETO pen away. Last night, a LERTA tax break proposed for the Dixie Cup building in Wilson Borough failed by a 8-1 vote. This included No votes from John Cuisck and Kerry Myers, who had previously agreed to sponsor the tax break. The sole member of Council to support it was John Brown.

During a public hearing preceding the vote, Wilson resident Armando Moritz-Chapelliquen voiced his continuing opposition. This included back taxes owed by Dixie Cup owner Wilson Park LTD as well as the existence of a buyer who needs notax break. Fiscal Affairs Director Steve Barron confirmed this blog's report that owner Wilson Park LTD (Joe Reibman) owes about $400,000-450,000 in back taxes on the tract. Joe Reibman indicated he is on a payment plan. Wilson Borough Council President John Burke acknowledged that "we need to better job," but added that's true "on both ends."

Council member John Cusick said he was "encouraged initially" by the proposal. He considers the site worthy of s tax break and has voted for two in the past. Not this time. "How do I justify giving a tax break to someone who has created one of their own by not paying their taxes on time?" he asked.  

Cusick attempted to table the LERTA, but his motion died for lack of a second. 

Cusick's opposition was echoed by Myers. "When I saw this in The Morning Call [referring to a story about unpaid taxes], my head started spinning. ... This one hit me right in the gut." 

John Brown, the sole member of Council to support a LERTA, said the opposition based on unpaid taxes was a "short-sighted perspective" because taxes will be paid eventually. 

Council member Tara Zrinski noted that there is at least one buyer (Nat Hyman) willing to purchase without contingencies and without a tax break. She indicated that under these circumstances, "we need to favor the taxpayers."

What bothered Council member John Goffredo is that nothing in the LERTA ordinance prevents the eventual demolition of the Dixie Cup building, which he claimed "has character, has history." This was disputed by Wilson's John Burke, who said there are no four-floor warehouses and no warehouses on just nine acres. Burke is apparently unaware of high-cube warehouses. 

Council President Lori Vargo Heffner thanked Wilson Borough Council President Burke for his comments and asked that he reach out to County Council next time. She said the previous LERTAS she has considered have neem seamless, but this was a "nasty. messy process. ... I don't know how to say it but Yuck."

In other business, Council unanimously approved salary increases for the lateral transfers of  two CYF employees to adult probation. Court orders authorizing these appointments and at salaries of $53,461 and $53,565 were issued earlier in this day. This prompted Council member Kevin Lott to ask whether County Council has a say in setting salary. 

Council Solicitor Chris Spadoni responded that if there's a court order telling you to bring a jack ass into the kitchen, you have two questions: Where is the jackass and where is the kitchen?  He said if you disagree with the court, you can file a petition seeking review, but you follow the order. 

County Council also unanimously approved DA Terry Houck's request for a $2,000 longevity bonus for all assistant DAs except for Richard Huntington Pepper. He doesn't deserve one andis on doubke secret probation for being rude to a blogger.

23 comments:

Anonymous said...

Well it is no sweat for Reibman. He's on record saying that he has other offers, besides Hyman's, that he is considering. I can't wait for those to materialize.

Anonymous said...

Didn't McClure and his lawyer say a judge doesn't have th power to do that.

Anonymous said...

If the lawyers get CDLs, they'll quickly make $100K and they'll be doing more for society. But they won't because they're rotten soulless lawyers.

Anonymous said...

It reads like Reibman has several offers, more lucrative than Hyman's. He clearly needs no tax break. I wonder when we should expect an exciting announcement from him regarding a sale and potential development? Answer: not in our lifetimes. That's why the correct decision was made last night. Just say no to slumlord grifters.

Anonymous said...

The best employees seek out new challenges. The laziest employees are perfectly happy to sit in the same cubicle for decades pushing the same piece of paper around in circles so it looks like they’re busy. It’s ridiculous for an organization to prevent employees from switching jobs if they want something new. If a department is having trouble retaining employees then management should look at themselves first. I’m glad these employees got approved for their transfers.

Anonymous said...

Does reibman know that when he's dead in 5 years, he can't take the money with him? Take the 5.5 and try to spend a million a year!

Bernie O'Hare said...

"Didn't McClure and his lawyer say a judge doesn't have th power to do that."

I have never spoken to McClure on this topic, but Ass't Solicitor Santee did advise council that they set the salary, not judges. My own take is that it is absurd for a judge or DA to think he has the power to set salaries. If that were the case, nothing could stop him from deciding that his tipstaff gets $1 million . The DA could give his staff $1 million bonuses every week. And the county would of course run out of $.

My reading of the caselaw is consistent with what Atty Santee stated. Without question, the judges and the DAs are independently elected officials. They have the power to decide what they need to operate. But County Council has overall authority over the county budget and set the salaries.

In almost all cases, this is never an issue. Council should pay great deference to the desires of independently elected officials, but they in turn should defer on matters like salaries and overall budgetary consideration. There are only rare instances in which these issues are litigated.

Anonymous said...

What about the part that a 2 step increase does not have to have county council approval? Now a 3 step needs a desk audit and approval of the personnel committee then full council approval Am I missing something here?

Anonymous said...

On the LERTA, I would hope that both the Borough and School District rescind their approvals quickly now that the county has turned it down.

After all, the developer and property owner have stated that the project couldn't move forward without the county's participation, and the district and borough could quickly find themselves getting something they don't want there if their approvals are allowed to stand.

This will take some quick thinking - and quick action - on the part of both those boards.

Anonymous said...

So again, why is a PO 1 that has been here for 8 years making 4000 less then a brand new PO?! Why did Mr. Greene PROMISE these two new PO’s more money but gave nothing to the employees that have been there for years

Bernie O'Hare said...

"So again, why is a PO 1 that has been here for 8 years making 4000 less then a brand new PO?! Why did Mr. Greene PROMISE these two new PO’s more money but gave nothing to the employees that have been there for years"

I don't know if this is accurate bc over the last several budgets, McClure has incrementally proposed salary increases for each position. This should mean your salary is higher than a starting PO1. These are not starting POs. They are CYF supervisors who have education and considerable experience.

More to your point, Greene stated on Wednesday that he is systematically reviewing all the salaries being paid to court employees. I'd agree they are far too low, considering what you do.

Anonymous said...

Hyman should drop his offer by at least 25%. Maybe Reibman will smarten up now, take what he can, and get out of Dodge. We all know he had no other offers.

Anonymous said...

Rumor has it that LC is ending step increases. Nonunion hasn’t received a step in like 7 years and the latest union contract for courts is no steps for the next 3 years. So new hires are basically being lied to, that they may start at a lower salary but look at this chart here you’ll get steady increases.

Anonymous said...

IF a business does not pay taxes the township should be allowed to put a lien on the companies funds and then the parents companies funds and then that parents parent and so on to stop this BS shell game.

I bet if his taxes would have been currant he would have gotten it. Why give away money who has a an issue.

Bernie O'Hare said...

"IF a business does not pay taxes the township should be allowed to put a lien on the companies funds and then the parents companies funds and then that parents parent and so on to stop this BS shell game."

Let me clarify something. Unpaid taxes come in front of everything, even mortgages. They MUST be paid. If they become delinquent for a period of two years, the county will schedule a tax sale to collect unpaid taxes unless the owner enters into a payment arrangement or files bankruptcy. Some local governments hire tax farmers like Portnoff to collect unpaid taxes. Wilson Area School District has hired Portnoff to collect taxes. Portnoff does not wait two years. They will file a lien as soon as taxes are overdue, which is what has happened to Dixie Cup. If the taxes remain unpaid, they will execute on the lien and schedule a sheriff's sale of the property unless the owner enters into a payment arrangement.

These liens and unpaid taxes are in rem liens, meaning they follow the property. It does not matter who owns it. The system we have in place is more than adequate to collect unpaid taxes.

Anonymous said...

I wonder if Reibman's house has broken windows? It would be funny if it did.

Anonymous said...

You believe county council should have ignored court order and told judge no?

Anonymous said...

BOH comments at 11:07PM: Thank you for the explanation. The only thing you might want to add is the word “eventually” at the end of your last sentence!

Bernie O'Hare said...

"You believe county council should have ignored court order and told judge no?"

Not at all. But Santee is correct and Chris is mistaken. Courts have every right to make their own appointments. To that extent, the court order is correct. The courts, however, do not set salaries. That is the sole province of county council because they have responsibility for the overall budget. To that extent, the court order was wrong. I believe the court order was issued in contemplation that Council would set the salary at the sums indicated. So no harm, no foul.

If the courts feel salaries are too low, they can ask for a job evaluation or desk audit. Also, nonunion career service workers can appeal their wages.

What the county really needs, and what I have argued for years now, is that a pay study is needed.

This will not be as popular as some of you think. Some positions will be raised. Others will be redlined. But there are appeal provisions like there was with Barston.

Anonymous said...

I am surprised council gave the raises. McClure told them not to do it and they usually listen to him. He has been clear; he won't allow a pay study as well.

Anonymous said...

Due to economy my last few jobs didn't come through with raises as mentioned at hire. The step system is outdated. Merit based yearly increases with fair starting salaries. Except of course unions who believe no matter the performance everyone should get seven percent raises every year. That's just sustainable anymore

Anonymous said...

Why can't Northampton County ever be great, like Lehigh County?

Anonymous said...

Wait...the DAs who don't go to prelims, have no idea what is happening usually, and give attitude the moment you ask them a question are getting bonuses? I picked the wrong side...