At last week's Northampton County Council meeting, there was a full-throated push for a substantial tax break known as a TIF at Wilson Borough's long-vacant Dixie Cup factory. and the plan to convert into 405 high-end apartments ($1,900 - $2,900). Those rentals are well beyond the means of most people who live here. This apartment complex will be marketed to double-platers (people from NJ and NY), who in turn will continue to drive up the cost of living here as we morph into another bedroom community for Gotham. These proponents of a public handout even included Executive Lamont McClure, no doubt because the developer, about whom I've previously raised a number of red flags, is willing to give the county $1 million for affordable housing. As nice as that might be for some county projects, it will exacerbate our affordable. Moreover, there is no real need to grant a TIF because the private equity firms funding this deal have never said it must happen. Finally, the argument that this would never be otherwise developed is simply false.
In response to stories I've written about this project, I received an email from Allentown developer Nat Hyman. He's rich. I'm poor. He'll deny this, but we are friends. The one thing we have in common is that everyone hates us.
I asked Hyman if I could publish his email, and he has agreed. I do expect the TIF to be adopted overwhelmingly, and by all three taxing bodies (borough, school district and county). I'll agree there are arguments to support it and have previously noted them. But Hyman's arguments against the TIF make sense to me. He was interested in buying the site and without any tax incentives.
I read with great interest your articles last week regarding the proposed Dixie factory adaptive reuse and the associated comments. I want to congratulate you on great investigative reporting to uncover so many red flags about this “developer” and finding that he has told so many untruths, most critical of which is that he has never developed any building….ever!
My company has developed dozens of buildings similar to Dixie. In all cases we have created affordable housing in those buildings. In all cases we have not accepted any TIF, LERTA , historic tax credit or any other government hand out. If we do not need the incentives to construct affordable housing, you are 100% correct when you wrote that it is absolutely not necessary to grant such a subsidy for luxury housing. In fact, it seems to me that it is an unconscionable waste of taxpayer money to give that to this developer for this project.
As a basis of comparison, in Northampton County we recently finished an 89 apartment development, purchased the Northampton Brewery for which we have received approval for 70 units and , just one mile from Dixie, purchased a 102,000 sf building with the plan to convert it to 120 apartments. All affordable housing. All with no government incentive or tax relief.
The $1,000,000 they are contributing to the affordable housing fund is de minimis when compared to the money they are receiving from the tax payers in the form of a 20 year TIF. In essence, they will give Lamont McClure $1 in exchange for the taxpayers’ $100.
For the record, I did try to buy the Dixie factory but was unable to make a deal with the seller. If I had bought it, I would have built affordable housing with no tax breaks or government incentives.
Having undertaken many of these adaptive reuse projects, I can tell you that they are a specialized type of development and difficult. Accordingly, it would be nothing short of miraculous for someone who has never built anything to be successful with a project of this scope and size. A 640,000 sf building is not where you cut your teeth. It is far more likely that this building will still be sitting there blighted five years from now.
After all that you have uncovered about this guy (ex: he lied on his website, claimed to have developed a project which was actually never done, lied about the number and locations of his offices, has zero development experience, lied about his partners, etc.) it is absolutely mind boggling to me that Lamont McClure, and council members, would still support this TIF! This is mismanagement 101. In business school we used the case method of study. I had a professor who constantly reminded us that “as circumstances change in any case, so must your evaluation and thinking. Business is fluid, not static.” I know you’ve written that this TIF is a done deal. If that is true, it is purely obstinance and stupidity. And for those who think this is the best chance they have to get this property developed, they are dead wrong. What they are actually doing is the opposite, ensuring that this blighted mess will sit there in perpetuity as this guy tries to finance against the TIF and get this thing developed. Make no mistake, if they give this TIF, this blighted building will be sitting there 5 years from now, exactly as it is today.
Finally, the developer himself has said that they will spend $150,000,000 on building 405 apartments. That is $370,000 per apartment! Given where rates are today, it is obvious that the project is not viable at the rents he claims he will be charging. The debt service alone will be $2,913 per unit per month. That does not include ANY of the myriad other expenses they will incur…..insurance, utilities, maintenance, real estate tax, etc and making a profit. They will need to charge $5,000 plus a month in rent for each apartment to make this project financially viable…..which they will never get in this market. They are trying to bring New York rents to Lehigh Valley economics.
The fact that McClure and council members did not take the minimal amount of time to investigate this developer and/or to review the finances of the proposed development before supporting the TIF, is amatuerish, sloppy and lazy. But if they still continue moving forward with granting it now that they know all of this, it is nothing short of malfeasance.
Having purchased a building one mile away, I really hope Dixie does get developed. A rising tide lifts all boats and it will improve the area in which I am invested. But it needs to be done by a competent, experienced developer (and there are several, not just me) with a viable plan. This has disaster written all over it.
Wishing you the best of luck on your cataract surgery.
Nat Hyman
69 comments:
Hyman Dixie sounds like a Vonnegut character.
Bernie, thank you for putting this post up. This is what happens when politician lawyers play at high finance government. McClure doesn't care if this works in the long run, he will be in Harrisburg. He wants the million to expand his influence peddling economic department, then he can hand out checks at press conferences. Mr. Hyman cuts through the bullshat and gets to the heart of the matter. Basic math, unheard of in government.
I think you have been mistaken by saying this will pass easily, I know of a few county council people that were never going to give a twenty-year tax break to that business. Of course, the three bubbleheads are for it that's their job, but it is no sure thing. Why do you think McClure's county paid publicist is plastering this, "once in a lifetime chance", all over social media. He wants the party hacks to pressure council people.
Thank you, Mr. Hyman, for your solid analysis of this project, even if it is in vain. You are up against one of the best bullshitters in politics.
Way to be, Nat and Bernie. The sad truth is that Jew hatred has always been quite fashionable. A wing of the Democratic Party is now proudly championing it. Nat cant get a deal on anything Democrat/government controlled because he's not a self hating Jew. Disgusting. But fact
I saw Nat Hyman stealing a bike in downtown Easton one time so I don’t know how trustworthy he really is.
McClueless needs to go!!!!!!! Families that have live here for generations are being pushed out by NY and NJ people AND MCCLUELESS!!!!
Mr Hyman was too polite to say it, but reading between the lines, they are giving this TIF to an inexperienced developer because Joe Reibman was too greedy to sell this building at a reasonable price. Instead he sold it to some sucker at an inflated price who needs our taxpayer money.Had Joe sold it to Mr. Hyman at a reasonable price, the work would be under way, we would be getting the affordable housing McClure says we desperately need, with no TIF.
Bernie: everyone may hate you both but at least he's smart!
I agree with Nat 100%. McClure is a moron.
if mclown and bandits want to give tax breaks lets start with all the residents in northampton cfounty no longer having to pay the county taxes,,,,,
Mr. Hyman makes excellent points. Even better, Mr. Hyman is clearly an expert on this topic having had a great deal of directly related experience with this same state and region. His explanation of the math behind this proposal should give everyone great pause.
I’ve never met the man, but I’ve watched what Mr. Hyman has accomplished in Allentown over many years. His projects in that city provide a much needed service to the population actually living there. He sees a REAL need in his community and he steps in to satisfy it. As a life-long resident of Northampton County, I am appalled by what looks to be a reckless approval of yet another tax giveaway.
Nat Hyman offered Reibman 7 million for the building. Reibman got 11 from Skyline. Nat’s a sore loser.
Nat’s idea of “Affordable Housing” is to send eviction notices to his tenants during a global pandemic. This despite the fact that there was a moratorium on evictions.
Did Nat Hyman use undocumented workers on the property he developed in Nazareth ?
Does Nat Hyman make it a practice to use illegal immigrants in his construction projects ?
Anon 7:18 AM Bernie clearly said that this was a private email sent to him which he later asked to print. Mr. Hyman is not a sore loser for sending this privately to his friend. After seeing all of Mr. Hyman's buildings around the valley, I hardly think he needs Dixie. In fact, it seems to me that Dixie needs him more than he needs it. Also, how do you know how much Mr. Hyman offered...unless this is Joe Reibman writing this comment. Finally, did it occur to you that maybe the building is only worth $7m and if this guy who never built anything understood the market and paid a reasonable price, we wouldn't have to give him our tax dollars.
Totally agree with Nat's analysis. As a prior comment said, the financial analysis is something I didn't understand before and should give all of the council and McCLure pause. But since this guy has lied about so many other things, it doesn't surprise me that he would lie about the rents he proposes to charge.
BernieOHare to all: I spoke to Nat yesterday when I asked whether I could publish his letter. I asked whether he uses undocumented workers on his projects. The answer was a firm No. it is true many workers are immigrants but all are here legally. I also asked whether he uses unions. He tends to give work to competent workers who will give him a good price, union or nonunion. It is also true that, during COVID, his office manager sent eviction notices mistakenly, and Hyman regrets that error.
Thank you for publishing this, Bernie. Mr. Hyman makes several excellent points. I'm sorry that he was not able to buy the property a few years ago. Mr. Hyman has a good record of rehabbing buildings in the Lehigh Valley.
Great info. For all the McClure comments. Most of the people on this blog probably voted for him! Think about your next vote!
Appreciate your clearing that up Bernie. The person writing that he uses "illegal immigrants" is a racist using a racist trope
Mike McFadden
It doesn’t make sense to grant tax incentives to residential projects with the hopes of attracting New York workers. Pennsylvania does not have a tax reciprocity agreement with New York. Employees who work in New York pay local and state income tax to New York and New York City. Those entities keep the money. The employee can use the payment as a credit to offset any income taxes owed to Pennsylvania and local earned income tax districts . Since the New York tax rates are higher than Pennsylvania no dollars ever come back to Pennsylvania. The bigger problem is that there are no dollars going to Pennsylvania Income taxes that will be given to school districts as a subsidy. Pocono and Bucks County municipalities have dealt with this issue for years. The same argument can be made for utilizing tax dollars to provide commuter train service. It ends up being a considerable hidden cost particularly if the commuter moves a family of school age children here. That education cost has to be absorbed by present residents. Numbers don’t really show many New York commuters presently living in Pennsylvania. Bucks County has commuter service and is closer to New York and provides close access to New Jersey transit. It doesn’t have many New York commuters. Even Warren County, NJ has done studies showing 17,000 residents leaving the county daily to commute to work with only several hundred traveling to New York City. The belief that New Yorkers will move here may be a myth.
Nat Hyman doesn’t pay prevailing wage.
Nat Hyman charges market rate rent for his apartments. His assertion in this email that these apartments would meet the definition of “Affordable Housing” is a lie.
I think you and Nat are gonna get sued this time.
Attacking the messenger is when you know that you are on the losing side of an argument. All of Hyman's reasoning is sound. The other comments about him, most of which I attribute to jealousy, is irrelevant as it relates to Dixie and the TIF
You can't argue with one thing Nat wrote to you Bernie. The Bartee guy is a proven liar. He has never developed anything, he admitted that. The people he passed off as employees at the hearing were shills. There is no way $370,000 per unit makes sense in this market. Lamont is insane for backing the TIF.
Tortious interference much ?
7:18 How could you possibly know what Hyman's offer was and how much this supposed developer paid? I saw Dixie advertised on line for $10m. Why would this guy pay $11m? He must be a worse businessman than we thought.
Does Hyman meet the classic definition of slumlord ? Ask his tenants.
Bernie did you do the “investigation” or did Nat feed you the facts you’ve now published twice ?
I agree with Na's assessment of the Dixie project. This has disaster written all over it. Much like some of Allentown's former Nueweiler Brewery plans with inexperienced NY developers. One would think the McCLure and others would have learned from those failed experiences.
"Bernie did you do the “investigation” or did Nat feed you the facts you’ve now published twice ?"
What I did was review the Skyline website. All of the red flags I note arise from the false information on that site. (1) Skyline Invest can be easily confused with Skyline Development, a major developer. (2) The site claims five physical locations that are nonexistent. (3) The one physical address listed is actually a virtual address. (4) The "services" offered have nothing to do with redevelopment. (5) The portfolio lists a project called the Louix that simply does not exist.
In addition, I watched the presentations at Council and the GPA. The public faces of Skyline have not been Skyline employees but people associated with other firms. Bartee himself did not appear until I raised questions.
I have also posted the arguments made in favor of the project.
Opposition to a TIF before it is adopted by governing bodies is not tortious interference. That argument would assume a contractual relationship between them and the developer that does not exist.
This is exactly why those without business acumen go into politics. If they had good business sense they could make a lot more money without all the headaches being in political office creates.
After reading this post I am glad I voted for Mr. Hyman and very sorry we do not have him as our mayor today. Unfortunately logic and reasoning do not override the clown show of politics we see today. Hopefully he will run again and get elected to help clean up the mess that is Allentown.
Why is Nat lying about building Affordable Housing ? None of his projects meet the HUD definition of “Affordable”.
I have a feeling Nat crossed a line here. David Amirian probably isn’t going to like Nat trying to cause him to waste his millions.
Hey, 906: I am one of his tenants. I’ve been living in the building. I’m in for two years now. Before that I lived in another Hyman building. The building I’m in now has a waitlist to get in. My neighbors and me love it here. We’re like a family. I have a gym, a game room a lobby , washers, and dryers on my floor and a really nice apartment for $990 a month for a one bedroom. He ain’t no slumlord. And saying that is both a lie and rude to his tenants. I’m proud of where I live. I don’t think he would keep building buildings like this if his tenants didn’t like it. I’m tired of all you assholes making shit up. I bet you’ve never even been in one of his buildings. You know, the guy takes these shitty old buildings and turns them into something nice and not only doesn’t he get credit for it but people like you shit all over him. Why don’t you get off your fat ass and do something for the city like he did.
I remember that Nat got into several lawsuits with Donald Trump. I’m sure he’s not gonna sweat David Amirian
Anyone who paid $10 million or $11 million for that place is batshit crazy. That's the first and most troubling sign in this scheme.
I used to work in a division of housing urban development. A lot of people confuse subsidized housing with affordable housing. The HUD definition of affordable housing is that it is no more than 30% of the household income of a household making no more than 20% higher than the poverty level of the state in which the building is situated. The PA state poverty level was approx $38,000 when I worked there. So the rent would need to be no more than 30% of $45,600 or $13,680 per year or $1,140 per month. If Hyman averages $1000 for one of his apartments, it is definitely considered affordable housing.
I think what’s going on here is that Hyman may have made a low ball offer to Reibman. It’s possible Hyman tried to “buy” Dixie on a rent to own scheme. In other words, Hyman may not have had the cash to even close his low ball offer. Reibman and Hyman hate each other, so Hyman may have been embarrassed by the fact that he didn’t have the money to complete the deal, and now he’s trying to ruin Reibman’s ?
Couldn’t come up with the cash Hyman ? This thing has sat vacant for decades and now we are expected to run into the arms of a guy who evicted his tenants in the middle of a plague ? A guy who lives about his apartments being affordable ? A guy who wanted to buy the place on time ?
I have a feeling Nat crossed a line here. David Amirian probably isn’t going to like Nat trying to cause him to waste his millions.
Hyman has worked very hard to kill this deal. Someone should ask Joe Reibman why.
Is Hyman the sleaziest player in this whole sordid affair ?
I’m not sure where the anti-senitism is here. Reibman, Hyman, Amirian, are all Jewish.
Would Nat use cheap labor and inferior materials to redevelop the Dixie ?
Doesn’t Hyman bring Amish guys here to undercut our local labor ?
11:36 Mr. Hyman didn’t have the cash???? He owns half of the Lehigh Valley. Reibman on the other hand, was repeatedly delinquent on his taxes ! He also didn’t put a dime into this building for 40 years and let it become a blight on our community. He’s a dead beat. He never had the money to develop it. And this Bartee guy is a proven fraud who never had the money to build anything . That’s why he has to try to bring in all of these partners. You got a screw loose partner.
"Reibman and Hyman hate each other, so Hyman may have been embarrassed by the fact that he didn’t have the money to complete the deal, and now he’s trying to ruin Reibman’s ?"
You're taking the side of a guy who held onto an increasingly blighted mess for Wilson residents, while he waited for a handout scheme vs a guy who has actually blighted developed places where people can live. Reibman tortured Wilson Borough on purpose.
Hyman needs Dixie like he needs a hole in his head. He wrote to Bernie that he just bought a big building one mile away. It helps him if Dixie is developed responsibly to improve the neighborhood. I agree with him that this guy doesn’t sound capable and it will be sitting there blighted 5 years from now
Bartee desperately wants a TIF and Hyman has never taken one but Hyman is the one with no money? Sounds like something Lamont McClure would say.
Reibman will be long dead before this building gets done. If past is prologue, he failed at many other attempts to rehab this building, this time will be no different.
"I’m not sure where the anti-senitism is here. Reibman, Hyman, Amirian, are all Jewish."
I did receive a few anti-Semitic comments that I refused to publish. Anti-Semitism is very real, as I'm sure Reibman, Hyman and Amirian can all attest.
Hyman tried to buy Dixie like he was at Rent-A-Center. Typical for a bottom feeder like him. Who’s your model Nat, Trump ? Seems about right.
"Hyman tried to buy Dixie like he was at Rent-A-Center. Typical for a bottom feeder like him. Who’s your model Nat, Trump ? Seems about right."
Pipe down, Steve. You know you failed to perform due diligence for county taxpayers. You're just a partisan ass with no financial chops at all. The "units developed" scoreboard shows lots of points for Hyman and ZERO for the guy you want to gift with others' tax dollars. You're a petty guy; especially when you've been utterly embarrassed by a suspicious blogger who also knows how to Google. Good grief.
Based on the flack he's getting from McClure's bots, Nat is right on target. Wilson Area School Board memebers who vote for this should be voted out next May.
So let me get this straight.....Mr. Hyman writes a private email to BO. BO asks if he can publish it , to which Mr. Hyman says yes. The issue which Mr. Hyman brought up in his private email is why he thinks a TIF should not be granted. A reasonable position. As a result, Mr.Hyman is getting viciously attacked and threatened with a lawsuit. This has nothing to do with him personally and is solely about the TIF. Seems to me that this in a nutshell is what is wrong with political discourse in our society.
For those of you who didn't catch it, TODAY The County of Northampton (aka McClueless) posted on Facebook pictures of this proposed development with the hashtag #GetDixieDone . Clearly it was in response to today's blog. You have to wonder why mcclueless wants this developer so badly?! I have never seen them do this for any other development. Could be another FedEd
anon 7:18 Little Steve Barron, see you rolled out of bed and alerted all the Cult members to attack Mr. Hyman. They are all out there now, even defending Reibman's ridiculous prices.
Maybe you fake money people should stick to impassioned BS speeches and get professional financial people to handle these big money deals.
Yours truly, Taxpayers!
12:52 You are 100 % correct. Reibman is a loser and the borough sited him plenty of times plus he was always behind on his taxes. I'm not sure if he ever paid any of his fines. Plus when Nat offered to buy the place he offered what the current value of the property was worth but Reibman wanted a rediculous price which is why the property sat so long. Sorry for my misspells.
Bernie oh Bernie, you have put Nat in a tough spot. You got him in trouble with the McClure Cult and they are inflamed. They will attack relentlessly. You and he better take shelter. You guys may even have a censoring resolution brought by Warren or Keegan.
Shame, Shame!!
Also heard that he has activated the union guys who he promised jobs to as they are the ones who benefit from this government largesse. If it fails in a few y,ears too bad.
Is Nat a slumlord ? That’s really the question. If Nat’s a slumlord, do we really want him lecturing us on redevelopment ?
If Nat sends eviction notices to his tenants during a health emergency, isn’t that evidence of very low character ?
Has Nat produced all of the I-9’s for all of the immigrants who worked on his Nazareth project ? With Nat’s record of sending eviction notices to his tenants during the Covid-19 when he was legally prohibited from doing so, can we really trust him ?
Who says they have to?
Bernie, did you ever get a copy of the goofy NDA the company wanted the county council members to pay? If not, we can get you one. Community and Economic Development should be ashamed of themselves. Who do they work for?
This is an obscure developer. Perhaps there is some wining, dining, and pocket lining going on here. I find it curious that McClure insists on this outfit.
Dixie Cup developer says he’s being ‘bullied’ by environmental cleanup lawsuit
Updated: Jun. 05, 2024, 5:06 p.m.|Published: Jun. 05, 2024, 11:39 a.m.
Bartee has a big mouth. Loved his comment about if he doesn't build it, no one will ... it will sit vacant for 40 years.
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