Over the past few days, I've been hammering away at the special tax break known as a TIF at the long-vacant Dixie Cup factory in Wilson Borough. I philosophically oppose most tax breaks but usually have no problem when it's given to develop a blighted urban property or a brownfield. The Dixie Cup is certainly a blighted urban property, but I oppose a tax break there for three reasons: (1) I believe it will exacerbate, not alleviate, our housing crisis; (2) I have no confidence in the private equity developer; and (3) It subverts natural revenue growth. TIF Having said this, I expect the TIF to be granted by the borough, school district and county. And no, it has nothing to do with campaign contributions to anyone. There are none. The simple reality is that reasonable people of good will can look at the same facts and have different opinions.
Yesterday, I received an anonymous letter (not an email, but an actual letter) endorsing the Dixie Cup project. Although I know who the author is, I'll honor his anonymity. Here's what he said: "The TIF is a good thing for certain type properties, like the Dixie Cup property which has sat vacant for too many years. Waiting another 20 years to get the increase in taxes is not a long time. The government bodies lose nothing because without the development there will be no increase in tax base. It's obvious this building will sit forever if no government incentives, like the TIF, are involved."
In addition to this anonymous letter, I also received a "Redevelopment Project Status Report" concerning the project, which you can review yourself below. Though Skyline's Brain Bartee leaves a lot to be desired, he has had enough sense to involve over 20 highly qualified consultants. Moreover, before closing on the deal, over $3.5 million has already been invested into this project.
I also received a message (I'll keep it anonymous) telling me that doing nothing is what exacerbates the affordable housing crisis. "[Y]ou exacerbate the Affordable Housing crisis by not increasing the overall supply of rental housing in The Valley. So, a warehousing use or worse yet no use at all makes things worse by failing to increase the overall supply. In other words, doing nothing or the wrong thing exacerbates the situation. More supply. Lower rents throughout the market as people will stop renting less housing than they can afford"
The justification for the $1 million the county receives for the TIF is that it will fund affordable housing projects in Glendon Borough, Forks Tp and on the Southside of Easton. But, more importantly it is sending a symbolic message that if you're going to build luxury or mid-market rate with County support, you are going to need to find a way to help us defray the costs of the Affordable projects we are working on all over the County.
I remain opposed to a TIF, but there are two sides to every coin.
Redevelopment Deal Status Report 240220 Dixie Cup by bernieohareiii on Scribd
21 comments:
Well, there are lies, darn lies and consultants and economic development experts.
Bernie, there is so much BS spread you could cover all the farmer fields in the county. McClure and his new best donor friend and the toadies are spreading it thick. You are right that this will probably pass but it is crap.
So, first what did/will they pay for the building. Why should taxpayers subsidize Reibman's crazy asking price? The Township should own up for letting this building go to Hell by not enforcing any codes on Reibman. Where were they on this? So now it is county taxpayers' problem?
Stop with the sophomoric Macro-Economic supply side theories. More supply equals less demand and prices dop. IN paradise and your textbook, it may but it's not worked here and other places due to a great many factors. Micro-economics is what real people have to live with and this will not help. More unaffordable housing is just that. Maybe in another thirty to forty years but the thousands of apartments so far have just made old cheaper apartments more expensive. Just go back to your worthless business school.
Just ask Mr. Lamont if the average county employee could afford to live there. Ther answer is no.
This is no more than slick business guys wanting to take advantage of local political rubes. Sadly, they are succeeding.
So many more real like points but it is late and you can't educate the uneducable
What the hell is this rumor that McClures Economic development crew demands county council signs an NDA? That is just NUTZ, If true. I hope they send it back with some choice words. What hutzpah. I can imagine what some old-time council members would say to that. lol
Doesn't PA have a law about blighted properties? Either the owner of property fixes it or it can be appointed a conservator and then ultimately demolished. Thought it applies to industrial sites as well.
The factory should be torn down and no warehouse or housing placed there. More housing=more schools=more taxes. Do people who live in apartments pay school tax? More warehouses=more traffic=expanded roads needed=more taxes.
They should keep Wilson a suburb and stop building here. Here's a thought, demolish and make a new park. Meuser is not what it once was. Have a county park that will add to the area,. Maybe some deal could be made. The owners tear down the building, make a beautiful park for a certain amount or county takes the property.
Dixie meant alot to Wilson residents as did Schaibles, etc... but those it meant most to are no longer there and we shouldn't keep a blighted building for memories sake.
This blog has been and always will be a Contrary Mary towards the McClure administration. At the present time it's merely to entertain Republicans and tell LVH and her side kicks how to vote.
Let's not pretend these units are affordable, or that the "developer" doesn't have serious credibility and track record issues. Don't make a dumb mistake. Nat Hyman could develop a masterpiece without taxpayer largesse. There are alternatives to the same old crony capitalism.
"Bernie, there is so much BS spread you could cover all the farmer fields in the county. McClure and his new best donor friend and the toadies are spreading it thick. You are right that this will probably pass but it is crap."
Aa I point out in my post, I see no contributions from any of the players involved here. Your accusation is false.
This plan is extremely popular with the public. The dog park. The connection to the Two Rivers Trail all will have public access.
"Let's not pretend these units are affordable, or that the "developer" doesn't have serious credibility and track record issues."
Agreed. I'd never vote for it.
"This blog has been and always will be a Contrary Mary towards the McClure administration. At the present time it's merely to entertain Republicans and tell LVH and her side kicks how to vote."
Well, I certainly hope this is true. But for some reason, they never do. I told them to vote for the health center. They did not. I told them to vote against the LERTA in UMBT. They voted for it. I told them to vote No to the warehouse LERTA for Dixie. They were poised to vote yes until I learned it was behind on taxes.
"What the hell is this rumor that McClures Economic development crew demands county council signs an NDA?"
I have not heard this.
Ron Heckman is the only one weak minded enough to be influenced by this blog.
NDA is real. Get a copy from council. What nonsense.
A few points:
1). If they need a NDA, they should not be asking public bodies for a TIF. Government business is meant to be done in public.
2). I see no reason for the public to subsidize this development, as it is not needed and is only subsidizing an increased profit for the developer and current owner. It can be built profitably without a TIF.
3). The amount they are proposing to contribute for “affordable housing” is less than what the taxing entities will lose by granting the TIF. And that’s before the costs of educating more kids, providing more police and fire protection, or the increased county services that will be needed.
4) Anon 12:58 am has it right about the borough failing to properly enforce their building codes on Reibman. This shouldn’t become the problem of county or school district taxpayers.
5). The attempt to use the county to circumvent the borough’s auction requirement is sleazy, and if the person commenting about NDA’s is correct the TIF should be immediately rejected on either of those two points alone. Those on county council (and borough council and the school board) are there to represent the people and keep them informed - not to participate in a coverup designed to keep the truth from them.
6). The affordable housing “crisis” is being cause by factors well outside of local control and will not be solved through the efforts of local government. As long as the federal government continues to print money without anything backing it, our purchasing dollars are being devalued. Couple that with the increase in interest rates (also caused by fiscal/monetary policy at the federal level) and people of all income levels will be finding that housing is no longer affordable.
Hyman may be able to develop it without incentives, but it would certainly be no masterpiece.
I have asked the clerk's office to furnish any NDAs that have been sent to Council members.
Speaking of the Clerk’s Office. Do we know why Eileen feel asleep during a Commissioner meeting last year ?
The ghost of Zirinski is still here. This Keegan now wants Northampton County to be an abortion Sanctuary County. So, there is that.
It has been over 40 years that Dixie left Wilson Borough. No one has stepped up to plate to develop this property, it’s more than an eyesore. To demolish the structure will cost millions to rehab it, it will cost millions. If it’s not this developer or another developer they will need assistance like TIF. I don’t think there is any developer that will take on a project like this without TIF. If the county doesn’t want to approve TIF they can keep it its present condition for another 40 years. Taxpayers pay for open space programs throughout the County and no
one seems to complain about that.
Keegan is worse than Zirinski. Her resolution is crazy lft wing crap that has zero to do with county government. Some activist boil plate thing that causes more division than uniting people.
@10:58The ghost of Zirinski is still here. This Keegan now wants Northampton County to be an abortion Sanctuary County. So, there is that.
How would anyone know about Keegan submitting a resolution about Roe v. Wade that was not discussed in a public meeting without the paid employees of the County Council office leaking information?? There is zero trust within this office!
I hope the place becomes an abandoned, decaying shell, just like the structure is now, in the future just so we can reflect on how dumb those are who allowed this project.
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