Tax Break Will Line Pockets of Dixie Developer, Consultant and Architect With a Cool $15 Million

Last week, I published Allentown developer Nat Hyman's warnings to Northampton County Council at their June 6 meeting concerning a $29 million tax break known as a TIF proposed for the long vacant Dixie Cup factory in Wilson Borough. "Put simply, folks, you are being scammed," he cautioned. His remarks drew 65 comments from my readers, many of whom agreed with him. But he was also subjected to several attacks, which began almost immediately after he left the building. Many of them come from people who have a major financial interest in this project, thanks to taxpayer largesse. Developer Bill Bartee has put himself down for a $4 million "developer's fee." Consultant Claudia Robinson, who specializes in getting tax credits and public subsidies, is slated to pull down even more, $4.25 million. And Bartee's "exclusive" architect, CHASM, will collect a $6.75 million fee.  So, $15 million of the $29 million in increased assessment will be lining the pockets of a developer, a consultant who specializes in public cash grabs and an inflated architectural fee. The Borough, County and School District will just have to wait 20 years. 

Where did I get this outlandish information? Did I just make it up? Unfortunately, no. It is part of the TIF application attached to the Ordinance introduced on May 6. (Page 5).

The Hyman criticism began with Stan Margle, Solicitor to Wilson Boro. His borough has not formally acted on the TIF request. "I would preliminarily support it," he told Council, seeming to forget that his role is to provide legal advice, not opine on public policy. "This is a real developer," he added, although Skyline has never developed anything other than the Louix, a building that does not even exist. 

"I can tell you Nat Hyman is wrong," proclaimed Margle. "The developer is not getting $29 million out of that [TIF] if you pass it." Margle was unable, however, to tell Council member John Goffredo how much the tax benefit actually is. 

Despite Margle's claim, Hyman happens to be correct. He told County Council that they would be awarding a $29 million tax break, and that's precisely what it is. He did not guess at this figure. It is on page 9 of the TIF application    

Margle also claimed that Hyman was wrong when he asserted that Wilson Borough has been far too lax at enforcing code violations. He told Council member Ron Heckman that Wilson has cited Dixie 10 times for code violations and has fined the maximum $300 each time. I checked. It's true that Dixie was cited 10 times in 2018 and 2019, but not since then. Of these 10 citations, Dixie was fined only three times. They were $100 fines for snow and ice removal (once) and broken windows (twice). If Wilson was really interested in code enforcement, it could cite Dixie for every broken window, and on a daily basis. That would encourage a sale. Instead, it has allowed the property to languish for the past 40 years. 

Margle added that Hyman's $7 million offer to buy the property was rejected "because the product he proposed was substandard." Margle later conceded that Hyman "does good things, but it would not be appropriate for this building in this place." This was all news to Hyman, who told me he had prepared no plans for the property.

Rather than stick around through all the speeches about abortion and a SEIU union contract, Hyman left when he had finished his speech. Council member Jeff Warren waited until then to attack him. "Is Mr. Hyman still here?" asked the increasingly sanctimonious Warren. "I'd like to ask him a question. He came in here pretty bombastic about his project seeming as though he somehow wanted to destroy this project." He later added, "I was going to ask him about labor, but he's gone." 

That explains why Warren and Executive Lamont McClure are so gung ho over an out-of-state developer with zero experience. You see, this project is expected to create about 150 temporary construction jobs. Warren and McClure are so intent on seeing them go to their campaign contributors in the trade unions that they are willing to hand out $29 million of your hard-earned money to someone they do not know for apartments that most of us could never afford. This is no way to govern. 

Another black mark against Hyman, at least to Warren, is that he is from Allentown and not a Northampton County resident. Well, that's a helluva' lot better than a developer who uses a virtual address in NYC as his office. 

Hyman was slammed by Warren for leaving after he made his points, but developer Bill Bartee was completely MIA. Consultant Claudia Robinson, a specialist in corporate welfare, was physically absent and participated via a phone held up to the mike by the "Project Manager." Instead of outlining the advantages of this project, she of course attacked Hyman for a "very unfair" speech. She never stated how Hyman was wrong, but then launched this ad hominem. "Mr. Hyman has his own skeletons and it's really not appropriate for me to start discussing them now ..." Really? Then why mention that there are skeletons?    

Council President Lori Vargo-Heffner eventually stepped in and admonished Robinson. "With all due respect to Mr. Hyman, he came, he left a note, he's not the point of reference here. We are. So it's our turn to ask questions and get the answers. He had an opinion, but that's not what we're basing our questions on." Robinson then apologized.

Council member John Goffredo also defended Hyman. He pointed out that they were conducting a public hearing.  Hyman, unlike Robinson, was actually there, even if he did leave.  

Goffredo asked Robinson of the TIF was really needed. "Without this TIF, this project will not happen," she declared for the first time. Up until now, she had been saying it would be harder to attract private equity investors. Now it's impossible. 

Hyman was also defended by former Council President Ron Angle, who had come to the meeting to say good-bye to outgoing clerk Linda Zembo. "I don't know Nat Hyman, but I do know his reputation is very good," said His Eminence. "Whatever he builds is done right ... . Do you know who Skyline is? One guy. He'll give you all kinds of locations around the country ... That guy should be here. Nat Hyman did come here. He left, maybe he had another appointment, but he did come. ... "

Several people ridiculed the $1 million bribe for affordable housing as a drop in the bucket. Chuck Weiss, the Associate Exec Director of Housing for CACLV, noted that $1 million gets you maybe four apartments. "It would be nice to see a little more money coming out of this for affordable housing." Alyssa Baratta, Exec Director of Third Street Alliance, said that 2,203 LV households are homeless "A million dollars means nothing to housing these people." Armando Moritz-Chapelliquen, a Wilson Borough activist, looked at the gap between the $1,800 in rent to be charged for a 1 BR apartment and the fair market rent of $1,137. He concluded that a much fairer contribution to affordable housing would be $6.3 million. 

The final speaker was Wilson Borough Mayor Donald R. Barrett Jr. Unfortunately, he wasted a lot of his five minutes by needlessly criticizing Wilson Borough activist Armando Moritz-Chapelliquen. "It just needs to get done." he said.  

Warren, who never is at a loss for words, made this final pitch. "Sometimes, you take what you can get."

That's a ridiculous excuse for throwing away $29 million in taxpayer money.