On Friday, I questioned the bona fides of Skyline Investment Group. This private equity firm plans to buy the long vacant Dixie Cup building in Wilson Borough and convert it into 405 apartments. Why this matters is because it seeks a considerable 20-year tax break known as a TIF. Under this program, it can use the increase in property taxes that result from development to finance additional development. The three taxing authorities (county, school district and borough) will see none of it, although Skyline is willing to give the county $1 million for affordable housing projects in Forks Tp, Glendon and Easton. After I published this story, I received a call from Brian Bartee, the founder of Skyline. He blew smoke up my ass, telling me that this small blog is very influential. At the same time, he threatened me with a defamation lawsuit from the Morgan, Lewis law firm. The purpose of this story is to review each of the red flags I raised on Friday, along with Bartee's response. You can then decide for yourself whether this is a credible developer.
Red Flag #1. Skyline Investment Group appears to be a knock off of the worldwide Skyline Development Group. That's owned by Zygi Wilf, who also owns the Minnesota Vikings and is an actual developer. I believe using a name so similar to Skyline Development Group is designed to confuse gullible people.
Bartee's response. - He chose the name because he likes the word Skyline, did the necessary corporate name search and had no desire to fool anyone.
Red Flag #2. Skyline Investment Group's website lists locations in California, Florida, New York, Tennessee and Texas. But with the exception of its New York location, it fails to provide a physical address for any of these other venues. The only contact - and it's the same contact for all five locations - is a cell phone number with a 551 area code (in New Jersey). This kind of misrepresentation is designed to make Skyline look bigger than it actually is.
Bartee's response. He admits he has no physical presence anywhere except for NYC. He blamed it on COVID.
Red Flag #3. The sole physical location that Skyline does list is in New York at 200 Park Avenue, Suite 1700. That's the Metlife Building, and the use of that address is intended to create the impression that Skyline has a prestigious address. But it's a virtual address.
Bartee's response: He admits he uses a virtual address. He also blames this on COVID.
Red Flag #4. The portfolio for Skyline lists one project called the Louix. It fails to indicate where it is, what it is or when it was built. There is no description at all.
Bartee's response. He admits there is no Louix anywhere. Apparently, it is a design prepared by CHASM architecture.
Red Flag #5. The services offered at Skyline' webpage are a ridiculous array of items from accounts receivable to second mortgages to lines of credit to energy production. This is not development.
Bartee's response. Before he went into development, and the Dixie Cup is actually his first development. Bartee provided these services, mostly as a broker.
Red Flag #6. The webpage lists several firms as "partners" that are actually not partners. For example, CHASM Architecture is listed as a "partner." It is actually an architectural firm that would be employed by a developer.
Bartee's response. CHASM Architecture is his exclusive architect for all his development projects. (He has one). He added that Nathaniel Clark, managing partner at CHASM, is a principal in Skyline Easton, the entity that actually is poised to buy the Dixie Cup. So there is validity to his claim that CHASM is a partner.
Red Flag #7 The public faces of Skyline at municipal meetings have been Claudia Robinson and Neil Griffin. But get this. Neither is actually employed by Skyline at its make-believe office. Robinson is actually employed at AreaProbe, Inc., a Washington DC real estate advisory firm. She is apparently particularly good at snagging tax credits and is obviously working this deal as a consultant. I don't know what she may have told other municipal bodies, but she failed to disclose exactly what her employment status is with Skyline, despite a direct question about it from Council member Lori Vargo Heffner. As for Neil Griffin, he is a Project Manager at CHASM.
Bartee's response. He acknowledged that neither Robinson nor Griffin is employed directly by Skyline. He stated that he has 80 people working this project, including the Morgan Lewis lawfirm. They are not employees. When pressed, he said he has 11 direct employees.
Red Flag #8. On Friday, I confused Bartee with another person by the same name and incorrectly stated he was in sales for the medical care industry.
Bartee's response. He has never been involved in the health care industry and has devoted his career to real estate. He correctly took me to task for that error on my part. He acknowledged that this is his first actual development.