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| This picture was taken 8/17. Windows are now being fixed. |
In addition, Skyline will also use historic tax credits and has already received a state grant for asbestos removal.
Both Wilson Borough and Wilson Area School District have already agreed to this windfall. but NorCo Council has yet to weigh in. Under state law, the soonest they can do so will be in late October.
Council member John Goffredo described what is happening as "almost like corporate welfare. We're giving a tax break to some of the most wealthy and most privileged people there are out there," he complained. Wilson Borough Council President John Burke said the development might actually attract other projects to hos borough and might even lead to reduced taxes "down the line."
Skyline's Brian Bartee said he'd be contributing $1.1 million for low-income housing. His rental rate will be $2.51 per sq ft., which is actually cheaper than three luxury apartment complexes he identified in Easton and Bethlehem. He said the average rent at one of his apartments will be $2,452 per month. Once construction starts, he projects that he'll be able to build 20 units a month.
Noting that the project would take Bartee about 20 months (or slightly longer) to complete, Council member John Brown told Bartee that he'd be generating a substantial cash flow (406 units @ $2,452 is about $1 million a month). "Why do you need an additional 17 years of tax break in order to make the project work? There's something in that math that seems a little odd to me." At that rate, Brown noted he could have everything paid off in 12-15 years.
Bartee answered that "[w]e need a 20-year term so that we can maximize the proceeds so that we can meet the equity constraint to close." He said a lesser term would make it impossible to close.
Brown also noted that Bartee's background is "pretty scarce." (I have previously raised a number of red flags about Skyline) "You have a nice website and that's about it," Brown said. Bartee conceded he has no previous experience as a developer, but his partner (David Amirian) does and won developer of the year in 2024.
28 comments:
Has the political world turned upside down? The Republicans were always the party of the rich and connected and the Democrats were the party of the middle class and workers and those in need. So now the county is going to underwrite upper-class higher income apartments using the county taxpayers to underwrite the venture. Why is the county subsidizing expensive apartment for New York and New Jersey transients?
Developer of the year? How the fuck is that determined? Blood duels? A composite of the BCS and AP polls?
It's a weird world when Democrats are the party supporting corporate handouts and crony capitalism. Wasn't there a developer with an extensive track record who was willing to rehab that eyesore without robbing taxpayers? This proposal is the epitome of poor government and stealing from hard-working taxpayers.
Bend over and grab your ankles
How bad is this council when John Brown is the only one asking the right questions?
This project will be a huge benefit not just to Wilson but to NC. Jeff Warren made several great points about this. We’re talking quality of life issues and how that manifests into positive regional impact. Council should not be shortsighted about this project.
100% bad move if council passes this Lerta. This project should've never been approved by Wilson and the school district. Its only the promise of cash that the developer will pay up front instead of providing afforadable housing which is needed in the Boro. Taxes will be raised for the residents to absorb before that 20 years is up. People need to fight against this Lerta.
What is the recommendation of the County Administration? Who looked at this project for the County and who did the assessment for the County on the value? In simple words, who is looking out for the County and "crunching the numbers for the County"? No one on Council is experienced enough to give an expert "financial opinion" on this project. Hire an expert to crunch the numbers and give an expert opinion on the value of the project. Parking and traffic flow will be a mess and a deterrent for renting at the 2,500 dollars per unit. Tread softly here. I think someone is getting snookered. No risk for the developer and a lot to lose for the taxpayer.
Are these special deals for construction speculators performamce-based and incremental? In this example, there is skepticism about the developer's ability to deliver what's been described.
Why not agree to the request in stages? Come back in three years. If 200 units are up and rented and occupied, we will take up the matter again and consider adding another term.
In a related situation, it seems an incremental commitment built into Allentown's NIZ would have been much less controversial than what is now considered to be an outrageous abuse of Pennsylvania tax dollars.
Totally ridiculous
Only in Norco would this type of unnecessary tax break (corporate welfare may be more applicable) be granted to a seemingly shady NY/NJ group with zero development experience. I seem to recall a local willing and experienced developer who did not require a tax break offering to complete this project. Why would we ignore the local developer? Perhaps his Campaign contributions are a lot lower than the New York guy.
This is not a LERTA. It is a TIF. There is a difference and a TIF is far more generous to a developer.
I believe Warren was tacking onto points already made by Burke and Bartee, but perhaps I should have highlighted them as well.
Bartee is actually a salesman, a first class bullshitter, and is putting this together and attracting investors. This is a private equity project. David Amirian is a NYC developer who will do the actual work.
Yes but that developer doesn't support Lamont!
Just keep on telling county employees there is no money to pay them a livable wage . But hell give millionaires tax breaks to build some apartments that county employees could never afford to live in. Lamont what a labor guy!!! Yeah sure!!! Biggest anti union democrat I've ever seen
That is exactly what is happening here - Democrats subsidizing wealthy and upper middle income NY/NJ/CT transplants. I never imagined I would see the reversal of party core values. This does nothing for county Citizens and the lack of affordable housing. Nothing at all. Does the party now believe in trickle down economics? Something smells rotten here. This is why the working class and Latinos are abandoning the party.
Because the building trade unions involved in the labor for the project have been big contributors to McClure (Zrinski) campaigns?
This might be worse than Willie Reynolds screwing up the Martin Tower deal! At least there the City would have gotten taxes back under that LERTA on a ten year basis not to mention the money Crampsie Smith made sure the city would get if there aren’t enough affordable units that could have been put towards homelessness or city owned AH units. Voters had their say and they’ll find out more about Willie and his deals in the next year or so!
Most talk about affordable housing is nonsense. There is no inherent right to “affordable housing” and local government has little to do with housing costs beyond setting tax rates.
No developer would agree to staggered approvals and more importantly nobody would finance such a project.
You missed the NIZ?
This has boondoggle to-be written all over it. How long into the project will locals be saying they wish they had their dilapidated, abandoned eyesore back?
Are they going to stream this evenings council meeting ?
Anti Union Democrat? That’s funny. Apparently County employees forget about Stoffa and Brown. If you can’t make it work get a new job or a second job. I have seen the contracts he has given out let’s face it , better than most public sector employees are getting and if you are a CO you will never be happy. I’m so happy I retired from the prison years ago before I had to deal with the idiots that are running that local. Whoever the next executive is good luck with that group.
Someone is getting their pockets lined and the S---t will hit the fan soon
Sound like certain people from the School District and Wilson Council
are in bed with the Developer
I'm sure the local Developer did not offer enough POCKET CHANGE
Bring on the low to moderate income housing.
Wilson SD needs more high quality students to fill there empty class rooms
This situation drew my mind to Martin tower and the farce we were sold about asbestos abatement. Shame we lost that historical building
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