Local Government TV

Friday, April 07, 2023

NorCo Council Approves Tax Break For UMBT Developer Lou Pektor

Northampton County Council voted last night to approve a tax break known as a LERTA for industrial property owned by developer Lou Pektor. It did so even though Executive Lamont McClure and developer Lou Pektor both agreed to re-write the LERTA ordinance to ensure that the tax break would only apply to manufacturing sites. It adopted the tax break despite a promise by McClure that he'd veto the LERTA as drafted. Voting in favor of the LERTA were Council members Tom Giovanni, John Goffredo, John Brown, Ron Heckman, Lori Vargo-Heffner and Kerry Myers. Voting No were Council members Tara Zrinski, John Cusick and Kevin Lott. 

This vote followed a lengthy hearing in which over 20 people spoke, some of them twice, either to support or oppose the tax break.  

A LERTA is a tax abatement program created by state law that permits a gradual increase in tax payments on improvements to deteriorated properties in economically depressed areas over a period of 10 years. 

Those opposed to the LERTA included elected officials from Plainfield, Lower Mount Bethel and even one Upper Mount Bethel Township Supervisor. Those who supported the LERTA included three Upper Mount Bethel Tp Supervisors, Bangor Area School Director Mike Goffredo, two volunteer fire chiefs and several local businesses.

Mike Goffedo spoke about the need to draw more business into the slate belt. "We lost our blouse mills, we lost our textile industries. We are a shell of what we once were."  

Martin Pinter, who chairs UMBT's Board of Supervisors, told Council that people are leaving the Township because household incomes are about 20% lower than the rest of the Greater Lehigh Valley. People who've remained have an average work commute of 40 minutes to jobs in New Jersey.

Rich Valone (sp?), who manages a manufacturing site near the LERTA employing 200 people, noted a need for increased local services. Ambulance response times are as long as 30-minutes, and one employee passed away en route to the hospital. Firefighters said that the development would give them an extra $130,000 every year for life-saving equipment.  

Those opposed to the LERTA expressed concern that, despite Pektor's desire to build manufacturing businesses, he'd end up with warehouses. "I think you're gonna' get warehouses one way or the other," warned Plainfield Tp Supervisor Don Moore.  UMBT resident Charles Cole warned that, of 17 buildings planned for Riverpointe, eight are over 500,000 sq ft.  

Environmental activist and former UMBT Supervisor Judith Henckel agreed that, though the land may be zoned industrial, most of it is farmland or woodlands set aside specifically by former owner Met Ed as a buffer from its electric generation facility by the Delaware River.  She implored Council to deny the LERTA and redraft it in a way that preserves the "rural character" of the community, a thought echoed by others. 

Some, like Kyle Dutt,  questioned how the LERTA could apply. How can farmland be "deteriorated", he asked. He also denied that UMBT is economically distressed, and said there are wineries and eateries.  

At one point, former UMBT Supervisor Anthony DeFranco took Council member Tara Zrinski to task over recent statements she made on Business Matters,  She stated that the zoning had changed from agricultural to industrial through a change to the zoning ordinance crafted by the developer. "You're full of baloney,." he said to her. "Either you are not informed or you are lying." His accusation was echoed by Pinter. "The libel and fear mongering must stop," he said, noting that the land has been zoned industrial since 1971.

In fairness to Zrinski, the land in question is zoned industrial, but has been used as farmland and woodland. Also, it is common for a developer's attorney to be involved in the drafting of a proposed text amendments to a zoning ordinances. "We are not liars," she said in defense of herself. "We are not charlatans."

After nearly everyone had spoken, Executive McClure exercised courtesy of the floor himself. He stated he was convinced that developer Lou Pektor wants to build only manufacturing facilities. He suggested tabling the ordinance so it could be re-crafted to limit the tax break to manufacturers. "We don't need to incentivize warehouse development," he said.  Lou Pektor then rose himself.  Surprisingly, he said he he "applauds" McClure's suggestions. 

You'd think at this point that a member of Council would make a quick motionto table and everyone could go home happy, right? 

Wrong. 

Instead, Zrinski and Lott both spoke against the LERTA, although Lott said he'd eventually move to table the ordinance. 

The two sponsors of the LERTA, both of whom live in the slate belt, spoke in support of extending this tax break.

Council member John Goffredo stated that the two main industries that provided economic revenue and jobs in the slate belt are gone. "I would like to see people that I grew up with stay in the area," he lamented  He observed that most of those who oppose this tax break are all retirement age, implying they need no jobs. But he indicated he'd support an attempt by McClure and developer to redo the LERTA. "If that's a possibility I think that's great."

Council member Tom Giovanni was a bit more succinct, as is his style. "I've seen people struggling with their taxes. My father-in-law is one of them."  He wanted the LERTA as is. 

Lott then made his motion to table. It was shot down in a 5-4 vote. Voting to table were Lott, Zrinski, Goffredo and Council member John Cusick. Voting No were Council members John Brown, Ron Heckman, Lori Vargo-Heffner, Tom Giovanni and Kerry Myers. 

Then John Brown made a motion to adopt the ordinance as is, seconded by Tom Giovanni. This prevented John Cusick from introducing an amendment to limit the LERTA to a rusting power plant at the site. 

Heckman stated that he's leery of getting involved in discussions of what constitutes a warehouse or manufacturing site. "I want to give it a thumb up or a thumb down, and people can do what they do. ... I think we're getting way too deep in zoning issues." 

Lott then made a second motion to table.  This time, only three Council members - Zrinski, Lott and Cusick - were willing to give McClure and Pektor the opportunity to rework the tax break so it only applied to warehouses. 

This failure paved the way to the adoption of the LERTA by the same 6-3 vote. 

Surprisingly, three Democratic Council members - Lori Vargo-Heffner, Ron Heckman and Kerry Myers - voted to extend a tax break for warehouse development when they had an opportunity to redraft it so that the tax break would be limited to manufacturing sites. This would have left opponents and proponents satisfied. They chose instead to continue the division in that area. 

51 comments:

  1. Bernie,

    Do you think this council is the dumbest county council when it comes to common sense or just simple addition?

    ReplyDelete
  2. They had a resolution agreeable to both sides, but managed to muck it up. I get the slate belt members and have no criticism of their desire to help their area. But the remaining council members, including three Democrats, alienated about 70% of UMBT, cast a vote for warehouse development and pretty much did the most stupid thing they could do. They allowed their animosity for McClure to interfere with good government.

    ReplyDelete
  3. Anyone who falls for Pektor's lies about his latest development scheme has only themselves to blame. You're getting warehouses: lots and lots of warehouses. What easy marks.

    ReplyDelete
  4. So, despite two weeks of time before this vote, McClure decides to wait until the last possible second in front of a crowd to pull his PR stunt. He could have called Pector at any time. He could have called Mr. Giovanni at any time. He did not because that is not his style, this wannabe state senator does not share the spotlight. He also could have just supported Mr. Cusick if he really cared so much but he doesn't want him to get any attention. What a BS move, real taxpayers up here are glad a bipartisan group of council members saw though it and moved it on. Now a meaningless veto for more drama. All political theater.

    ReplyDelete
    Replies
    1. You are wrong again about everything you said here Lori

      Delete
  5. Bad moves all around. McClure has earned little respect and simply can't lead. Council is headed by a lame duck slow adult. The majority blue county is rudderless. Thank you Democrats. Fine job.

    ReplyDelete
    Replies
    1. McClure isn’t supposed to rule council, it’s 3 branches of government.

      Delete
  6. And soon the rats will eat each other. Well known UMBT- resident Hidy Ho is doomed to have to move (or float) downstream...

    ReplyDelete
  7. Typical government-this is why we will continue are downfall on all levels of government.

    ReplyDelete
  8. McClure needs to veto this Lerta as is and make them go back and only allow it for mon warehouse uses.

    ReplyDelete
  9. Ron Heckman was correct. This is a local decision for Upper Mt Bethel Township and whether they want to work with the Bangor School District to lessen the property tax impact. Hopefully McClure and Pector can continue to work together and even get the LVEDC to market manufacturing for the area.

    ReplyDelete
  10. And Pecktor gets to keep a cool million taxpayer dollars from yet another failed project in south Bethlehem, the former Riverport market project.

    ReplyDelete
  11. 8:26, The LERTA passed 6-3, and though it will be vetoed, those six votes would be enough to override the veto.

    ReplyDelete
  12. Pektor is a Moravian grad and thus beyond reproach.

    ReplyDelete
  13. "So, despite two weeks of time before this vote, McClure decides to wait until the last possible second in front of a crowd to pull his PR stunt. He could have called Pector at any time"

    I believe that was a matter of tactics. It is quite clear to me that a majority of Council is intent on sabotaging any of his initiatives. This is why he's unable to get to first base with a health center. Had McClure disclosed his willingness to rework the LERTA sooner, that might have worked. But it would have enabled Council to do precisely what they did to Cusick, and that is call for a vote on the ordinance as is without giving him an opportunity to offer his amendment to limit the LERTA to the former power plant. I don't blame Giovanni, Goffredo and Brown for voting as they did. They live in the slate belt. I'd be tempted to defer to them as well. But if you don't live there and you have a resolution that is acceptable to the pros and the cons, how can you not go for it unless you're being totally vindictive to one side or one person? As it stands, Heckman, Myers and Vargo-Heffner will beknown for siding with corporate welfare and warehouses over manufacturing and open space. That is their legacy.

    Heckman does not want to get involved with zoning, but just approved a Bethlehem LERTA that regulated how often a Bethlehem homeowner can fart on his stoop. Who the hell is he kidding? Vargo-Heffner and Myers are simply unwilling to do anything that might make McClure look good, even if that means voting against a resolution that everyone on both sides seemed to embrace. It was bad government. It will almost certainly guarantee that we subsidize warehouses if Pektor can sell them in a saturated warehouse market.

    ReplyDelete
  14. Dr. Voodoo Economics, PHD, OB-GYN, DVMApril 7, 2023 at 10:07 AM

    "Pektor is a Moravian grad and thus beyond reproach."

    This is demonstrably true. Aside from being well known for their ribs and dicks, here is a list of Greyhound alumni business successes:

    ReplyDelete
  15. Heckman should resign. He’s embarrassing himself.

    ReplyDelete
  16. This Council might be in the running for the worst ever. Not because they gave a tax break to a developer, the voters will decide if that’s a good idea or not. They are in the running for Worst Council Ever because they don’t understand basic procedures.

    ReplyDelete
  17. Lori Vargo-Heffner showed leadership last night. She demonstrated that she’s not afraid to take tough votes. It’s not popular to be supporting warehouses right now, but she stepped up to help the people of Mt. Bethel ! Thank you Lori !

    ReplyDelete
  18. Kerry ran a pretty good meeting last night. See what you can do when you stay off Twitter.

    ReplyDelete
  19. Ron Heckman has become a laughingstock. Watch him. Every meeting. Argues for both sides and then always loses.

    ReplyDelete
  20. I think Spadoni made a few errors. Why wasn’t Cusick’s amendment in order once the ordinance was introduced. Isn’t an amendment in order under discussion after the 2nd?

    ReplyDelete
  21. "Why wasn’t Cusick’s amendment in order once the ordinance was introduced. Isn’t an amendment in order under discussion after the 2nd?"

    It is. The amendment had not been offered when Brown called for a vote on the ordinance as is, with a second. I believe Cusick probably could have spoken up and insisted he wanted to offer an amendment. He never did, likely bc (1) he felt he was unable or (2) read the tea leaves.

    ReplyDelete
  22. "Kerry ran a pretty good meeting last night. See what you can do when you stay off Twitter."

    It was a circus, with goofy motions to vote on an ordinance as is and points of order interjected after a motion to table had been seconded. Not entirely his fault, though. He did allow people to speak.

    ReplyDelete
  23. "Lori Vargo-Heffner showed leadership last night. She demonstrated that she’s not afraid to take tough votes. It’s not popular to be supporting warehouses right now, but she stepped up to help the people of Mt. Bethel ! Thank you Lori !"

    I'll disagree. She alienated about 70% of UMBT, voted for corporate welfare for warehouses, ignored a resolution that would have made both sides happy, and pulled Myers and Heckman into her web. It was very bad government and very bad politics as well.

    ReplyDelete
  24. I feel sorry for Heckman. He’s become a caricature of himself. He gets a call from his old buddy Rich and all of sudden he’s for giving out tax breaks. Ron you’re not a force for good anymore - if you ever were. Resign.

    ReplyDelete
  25. This is quite frankly the dumbest County Council in the history of Home Rule.

    ReplyDelete
  26. NORCO council makes me glad I live in Lehigh County

    ReplyDelete
  27. Why o why are we giving millionaires tax breaks when the basic needs still aren’t being met in the county? Does everyone in the county have access to affordable health and dental care? If the answer is always no, then tax breaks to corporations should never be granted.

    ReplyDelete
  28. 2:22, I am philosophically opposed to tax breaks, with the exception of money spent to redevelop brownfields precisely like the Met Ed power plant. Having said that, a LERTA is the least offensive. Taxing authorities still get the taxes, but the increased assessment due to improvements is phased in over 10 years. LERTA tax breaks are often made available to residential homeowners in Easton and Bethlehem. Even there, I have reservations. Too much favoritism to those in the know.

    ReplyDelete
  29. "I feel sorry for Heckman. He’s become a caricature of himself. He gets a call from his old buddy Rich and all of sudden he’s for giving out tax breaks. Ron you’re not a force for good anymore - if you ever were. Resign."

    I could understand him deferring to his colleagues in the slate belt and trying to spur economic development there. But he had a resolution that was acceptable to the pros and the cons and he spurned it. That made no sense at all. If he doesn't want to get into the uses of the property, then why on earth would any LERTA be granted? The very reason they are enacted is so that a developer can use the property in exactly the way the municipality intends.

    ReplyDelete
  30. "They are in the running for Worst Council Ever because they don’t understand basic procedures." That's true. Council has never adopted rules that outline their procedures. I am told that one Council adopted Robert's Rules, but not as an ordinance. So it's unclear what rules they follow. They certainly were not following Robert's Rules on Thursday night. This is what happens when you don't have operating rules.

    ReplyDelete
  31. "I believe that was a matter of tactics. It is quite clear to me that a majority of Council is intent on sabotaging any of his initiatives."

    Now that is funny. How dare anyone question him of his motives. You on the payroll as well?

    ReplyDelete
  32. 6:12, Not funny at all. This same trio of Democrats are largely responsible for blocking an employee health center.

    ReplyDelete
  33. Yes, Mcclue's biggest saboteur is McClure and his gang. As an old ex-county official sated, McClure is more lawyer than County Executive. He has a majority on council yet cannot build a coalition, since he does not know how. All he can do is us his gang and you to attack any who disagree with a policy and insult them with gender ana ageist insults. You, Kraft and Barron are good at it. It is clear that you have to be with him all the way like his two rubber stamps and follow the script you are sent, or you are against him, it is sad the guy just does not know how to be anything other than his angry controlling self. But yes, blame everyone but him for his problems.

    ReplyDelete
  34. " All he can do is us his gang and you to attack any who disagree with a policy and insult them with gender ana ageist insults"

    I was unaware that Heckman and Myers identify as women. Good for them. I was unaware Vargo-Heffner is old. She doesn't look a day over 25. I've criticized Heckman because he talks too much and out of both sides of his mouth, and is completely illogical.. I criticize Myers bc he's a bully, vulgar and lazy. I am critical of Vargo-Heffner bc she can be snarky. None of these criticisms has anything to do with age or sex. I do not criticize them for the pay study or Gracedale audit. I agreed with them about council review of small business grants. I even agree that the health center should be bid, which McClure is doing. I have no problem with and applaud a check and balance on executive power, but they demonstrated on Thursday night that they are just out to sabotage McClure, even to the point of rejected a solution to both those who supported and opposed the LERTA.

    ReplyDelete
  35. These schemes are corporate welfare. A numbers guy like Cusick should know better. But he's still a school teacher with zero business acumen. He's been had and now we'll be had too. Idiocy and naivete win the day again.

    ReplyDelete
  36. Yes, Cusick is a numbers guy, but you are obviously not a reading guy. Cusick voted No to the LERTA. He voted Yes to table the matter twice. He indicated his reservations two weeks ago as well, and I reported it then.

    You are not a numbers guy or a reading guy. What you are is a partisan hack whiose reql objection to Cusick is his party.

    ReplyDelete
  37. At this point in our nation’s history it matters little what political party someone identifies with. We are watching a devolution into One Party government. The Incumbent political class has the SAME goal . . . their focus is on being re-elected, not necessarily what is best for you and I. The final decision on this Northampton County issue will be based largely on necessary campaign funds flowing their way from special interest groups. You and I are minor players.

    ReplyDelete
  38. Agreed. No question Mcclure end his gang meant to sabotage Mr. Cusick's plan as they always do. This was pure politics to wait till the last minute and help Zirinski. If McClure is serious instead of just his silly pr veto, he can take the time and work out a REAL deal with Pector and have it ready for council. He won't, but he could. He will cry victim and you will gleefully agree.

    ReplyDelete
  39. I'll disagree with you. In local government, one person can still make a difference. You just have to pay attention. Most of you either don't pay attention or are caught up and twisted by national events.

    ReplyDelete
  40. Do Not expecxt to see a comment in violation of my comments policy. That includes complaints about my comment policy

    ReplyDelete
  41. ". No question Mcclure end his gang meant to sabotage Mr. Cusick's plan as they always do. This was pure politics to wait till the last minute and help Zirinski.'

    Wow! McClure must be far more powerful than I thought. He got John Brown, who hates his guts, to submit a motion to consider the ordinance "as is," thus preventing Cusick's amendment. He git Ron Heckman, who increasingly is in never never land, to go along with it. He convinced Chris Spadoni, who works for Council and not him, to sit on his hands through several violations of Robert's Rules. That's really good.

    Or maybe, just maybe, you're completely full of shit.

    ReplyDelete
  42. Late to the party here. But where does it say that we need to give tax breaks to a multi-million dollar developer to transform an undeveloped area of our community? Why does every last undeveloped corner of our world equate to dollar signs by these billionaires? Quality of life means nothing to these people.

    ReplyDelete
    Replies
    1. Ask Don “Warehouse” Cunningham

      Delete

You own views are appreciated, especially if they differ from mine. But remember, commenting is a privilege, not a right. I will delete personal attacks or off-topic remarks at my discretion. Comments that play into the tribalism that has consumed this nation will be declined. So will comments alleging voter fraud unless backed up by concrete evidence. If you attack someone personally, I expect you to identify yourself. I will delete criticisms of my comment policy, vulgarities, cut-and-paste jobs from other sources and any suggestion of violence towards anyone. I will also delete sweeping generalizations about mainstream parties or ideologies, i.e. identity politics. My decisions on these matters are made on a case by case basis, and may be affected by my mood that day, my access to the blog at the time the comment was made or other information that isn’t readily apparent.