Last night, Wilson Area School District voted unanimously in support of a resolution that will permit Skyline Investment Group to take a $29 million tax break known as a TIF for development of the long vacant Dixie Cup factory in Wilson Borough. The TIF resolution itself was unavailable to the public prior to the vote, but comments from school directors indicate that the district will receive $1.25 million from the developer.
Wilson Area School District is the largest of three taxing bodies (in addition to NorCo and Wilson Borough) willing to allow the developer to use an increased tax assessment to finance the project. As originally drafted, all three taxing bodies would need to wait as long as 20 years before seeing a dime in increased revenue.
In July, Skyline proposed giving the school district a $1 million cash contribution. Between then and now, that contribution has increased.
This tax break was also on Wilson Borough's meeting agenda last night. Skyline had proposed a $500,000 cash contribution to the borough in exchange for the tax break. That offer was sweetened to $600,000 and was passed unanimously as well.
According to Tina Smith, NorCo's Economic Development maestro, soonest that a TIF ordinance creating a TIF district can be introduced is September 5. A public hearing would take place September 19, with a final vote on October 17.
Northampton County is slated to receive $1.1 million for affordable housing in exchange for creating and approving a TIF district.
Real estate developer Nat Hyman, who himself was interested in acquiring the property with no tax incentives, has attacked the proposal and warned County Council they are being scammed.
Below is a summary from Wilson Borough activist Armando Moritz-Chapelliquen, who was at the school board's meeting.
Last night, both Wilson Area School District and Wilson Borough voted unanimously in favor for their TIF Resolutions, leaving the question of the TIF District, and the redevelopment of the Dixie Cup site, up to Northampton County Council.
Last time around (and in the picture above), I mentioned that the developer was offering up-front payments to both Wilson Borough ($500,000) and Wilson Area School District ($1,000,000). In the resolutions passed last night, both of these amounts were increased, with Wilson Borough now set to receive $600,000 and Wilson Area School District set to receive $1,250,000 at the loan closing. I am still not clear on what the mechanism is for these payments to be made, or if they're going towards particular uses (like the $1.1 million going towards the County's Affordable Housing Fund).
It should also be noted that I was under the impression that these resolutions would need to have a public hearing before getting a vote by the Borough and School District. That, apparently, was incorrect. The only body required to have a dedicated public hearing is the County, which is where the resolutions are headed now.
In the absence of seeing both resolutions or public hearings at either body, I'm expecting there to be a more thorough discussion about the TIF when this gets on County Council's agenda, which should be over the next couple months. I haven't yet heard much deliberation or rationale for the upfront payments or if they're enough for either the Borough and the District. Who came up with the figures? Who pushed them up? How will the money be spent? To date, I'm not clear on any of these questions.
I recognize that the Borough and School District voting unanimously sends a very strong message to the County Council. However, the Borough and School District also voted unanimously for the LERTA that I strongly opposed and led advocacy efforts against two years ago. County Council voted that LERTA down, preventing the sale of the Dixie Cup site to a developer who wanted to make it a warehouse. That same LERTA was repealed--unanimously--by both the Borough and School District last night.
I'm not suggesting that we're in the same position we were in two years ago; we're significantly better off... but we only got here because the County Council took the time to ask the hard questions, debate publicly, and share documents ahead of any scheduled votes. That deliberative and engaged approach needs to happen again.
The next and last stop for this public debate is Northampton County Council. A hearing could be scheduled as soon as next month. When that gets scheduled, I'll be sure to share the details. I hope to see you there.
18 comments:
Will this long county nightmare end? Even if county council votes this scam down; McClure will keep bringing it back with his puppets. He will use media to attack and push the issue. He wants to get his way and has no rules that affect him. Get ready for photo ops and press releases.
Wilson borough and school board just proved they are no better than ladies of the night. Next up, the NORCO hookers.
What a great plan ! 200 million in investment. 200 good paying construction jobs ! Immediate increase in EIT and LST taxes for Wilson Borough up to $500,000.00 per year. Way to go Mayor Barrett. You look like a genius.
Nat Hyman was right. They are being scammed . There is no reason to give away our tax dollars to these people with no return for 20 years. This is insanity. Let’s hope County Council is smarter than the Borough or School District.
When McClure is done, Tina Smith should be our next County Executive.
Council should "VOTE NO" on a twenty-year TIF. This is the most absurd "TAXING ISSUE" that has ever been presented to a taxing body. Why do you think the developer is throwing money at the governing bodies like a drunken sailor? quick money always looks good but this developer is going to reap the whirlwind fpr twenty years and his bribe money will be gone in one year. VOTE NO....VOTE NO.....VOTE NO,,,..VOTE NO..... VOTE NO...HELL NO
The Cup will be restored. The people of Wilson Borough and Wilson School District overwhelmingly support this redevelopment. This will be a sore test of Lori Van-Haggar’s leadership of County Council.
I'm going to buy that triangle of land by legal auction. I will then erect a statue of Nat Hyman in the space.
You are fake person you are afraid of the truth so you only print lies.
The pr firm is at it again. Rest assured there will be challenges to the school board in the election next year. They can give away $20 million but cannot find a superintendent.
Thank you Lamont for your comment here
I just read on the front page of today’s Morning Call that Mr. Hyman is redoing the old Crayola building into 108 apartments. No TIF, No tax credits, no taxpayer money. So if he can do it there, why do they need our money for Dixie? Sell Dixie to him and let’s keep our money!
Politicians do not worry about us tax payers and neither do you Bernie you have Trump Deranged symptom
Wilson people are not the brightest. They're too stupid to understand that they're struggling community is named for a vicious racist who resegregated the federal government. I wonder how Wilson's minority residents and students enjoy wearing that racist American native headdress and cheering for a racist-named high school and community. Why not rename the community after Hitler? Both were famous racists. No difference to minorities, right?
Hyman building in a flood plain - genius !
You’re so stupid! Half of Allentown is built in a flood plain
Mr. Hyman is rehabbing an existing multi-story building in Palmer along the Bushkill Creek. The building is elevated above the creek. What is usually done in that case is that you use the first floor for parking and keep it open for floodwaters to flow through during a severe storm. However, I have not seen the rehab design.
Fortunately, most of the floodplains in Allentown were preserved as parkland in the 1920s and 1930s through the leadership of Harry Trexler, who was chairperson of the City Planning Commission.
Charlie: The most important thing about Mr. Hymans Palmer project is that he is not seeking any TIF, RCap, historic tax credit or any other kind of tax payer funded incentive., unlike Dixie.
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