After a great weekend of cycling fun in Philly, helped by outstanding weather, I finally had the opportunity to watch the public hearing for the tax break (known as a TIF) at the long vacant Dixie Cup factory in Wilson Borough. What I saw was pretty much a rehash of arguments previously made. County Council will vote on the TIF ordinance itself on November 6.
If it passes, it will be a $20-29 million windfall for the developer of the long vacant Dixie Cup factory in Wilson Borough. It will enable Skyline Investment to float two series of bonds for a proposed 405-unit luxury apartment complex and use the projected increased assessment to pay for the improvements made over a period of 20-25 years. During this time, taxing authorities will continue to receive the taxes on the existing assessment, but they will have to wait a quarter century to see receive the taxes it should receive when improvements are made.
In addition, Skyline will also use historic tax credits and has already received a state grant for asbestos removal.
It's nice to be a picked winner
Both Wilson Borough and Wilson Area School District have already agreed to this windfall.
Unanimously.
Skyline principal Brian Bartee and his bond counsel, Jonathan Cox, monopolized much of the hearing. Obviously, they're all for it. So is Doylestown attorney Richard Groff, who gobbles up distressed properties at tax and Sheriff sales and then flips or rents them out. Obviously, high rentals at Dixie will make it possible for him to charge more rent at his Wilson Borough and Easton properties.
Support from those who benefit financially is understandable. Unanimous support from Wilson Borough and the school district, however, is either incredibly naive or downright stupid. In Wilson Borough's case, I think it's stupidity. This is the municipality that uses Stan Margle, who is facing multiple drug charges, as their solicitor. He even spoke for the borough at two county meetings where he actually insulted one of the County Council supporters.
Brilliant.
In the case of the school district, the rationale offered by superintendent Harrison Bailey III (that's Doctor Bailey to you), was downright mystifying. He said students would receive an education by watching union contractors as they install drywall during the year or so that it takes. I bet. They would also be able to meet the developer and learn what it means to be an entrepreneur. Is that worth 20m years of tax breaks?
In response to questions from Council member John Brown, Dr. Harrison Bailey III said it costs about $22,000 a year per student. Brown indicated that some tenants at Dixie will have children who attend school, and the school district will have to pay for their education. Moreover, the school district will miss 20 years of increased property tax revenue Dr. Harrison Bailey III said taxes at Wilson have only gone up 0.66% for the past five years, but his doctorate certainly has nothing to do with math. This year alone, taxes at Wilson have gone up 3.5%. His doctorate has nothing to do with business, either. Dr. Harrison Bailey III conceded he did no analysis or study on exactly how much this TIF will cost the school district. People in the audience apparently shouted out that the school board did a study, but I certainly find it off that Dr. Harrison Bailey III had no knowledge of it.
This ordinance will be supported by Council members Ken Kraft, Kelly Keegan and Jeff Warren for one and only one reason - trade unions. Skyline Investment's Brain Bartee will use union labor. It matters not that this labor will be used to develop housing that only New Jersey and New York immigrants can afford. It matters not that this will just exacerbate the affordable living crisis. A year of union labor makes it all worth it to them.
I'm less certain about the others.
Bend over and grab your ankles Wilson citizens.
ReplyDeleteIt matters not that Bartee is a scam artist and can take the $29m and run and invest none of it in the building. If he did this there is absolutely nothing council could do about it
ReplyDeleteThat's not how a tif works. A lot wrong with this one, but not that
Delete"For one and only one reason"?
ReplyDeleteDid you ask any of them to report that? No you did not. And btw, you are wrong. That's pretty presumptuous of you, but I'm not surprised.
Do I need their permission to tell the truth about this? Of course that's why they support this. I went through this with the KIZ in Allentown as well. Dems loved it because it brought temporary jobs to the trade unions that contribute to their campaigns. But once the project is built and the jobs are gone, they then agree it was a mistake. If Bartee refused to do this with union labor, I can guarantee they would all be opposed.
DeleteWhich Dems in Allentown think the NIZ was a mistake? From what I've read, the local reps and NIZ mastermind have been doing everything they can to prevent people from knowing where the money goes by blocking release of the audit.
DeleteWhen I said Dems now concede the NIZ was a mistake, I refer to union members who advocated the project and who have said so to me privately. I am not sure they would say it publicly.
DeleteOk Kelly lol.
DeleteBlocking the release of the Allentown NIZ audit is simply outrageous! Taxpayers all over the state, including Easton, Wilson taxpayers are paying for those new, mostly empty Allentown NIZ buildings. How can this abuse and lack of respect for our taxpayers be allowed to continue on like this? Does no one look out for us?
DeletePeople should watch the meeting on YouTube. In my opinion, this article is written at the behest of and to the benefit of Nat Hyman.
ReplyDeleteI agree that people should watch the youtube video. I'll publish this, but not another comment that is little more than an ad hominem aimed at Nat. This article does not benefit Hyman. The property has already been sold. I have not spoken to Nat about this matter for some time. As for writing this at his behest, you don't know me. Nobody tells me what to write. I make my own decisions.
DeleteLori believes she is the queen of county council. She is not a super member. She is one of 9. We all know it drives her nuts, but Ken, Jeff, either of the Johns, etc... all have the same vote as she does and should not be stopped from speaking.
DeleteBernie doesn't do anyone's bidding for them - certainly not a developer. Pull your head out.
DeleteIf council gives him one cent, they should all be voted out. They are giving away $29m of our tax payer dollars because Lamont wants labor's support for his congressional election.
ReplyDeleteThis has needed to be done for so long. Lamont just happens to be in control now that it is happening and the stars have alligned.
Deleteyes, vote them out John Goofy, John Brownstain and Lori V Heffer, election is two weeks away, gt to work on that
DeleteYou should be reporting about Goffredo’s outburst and how he left the meeting because he couldn’t get his way to continue badgering the speakers.
ReplyDeleteI saw no outburst. I did see him complain when LVH asked him to let others speak. I did see him and did see him walk out. I suspect he left in anger. He is a passionate guy and I agree with him. This was a public hearing. What good is it if the persons who are deciding are unable to ask questions of those who seek it? LVH should have allowed the questioning even though there were other council members who had questions as well. They could then ask their questions. If that means the meeting is longer, that's the way it works. This is a lot of money. If other things must be done that evening, the hearing can be continued at the next meeting.
DeleteThis is unbelievable ! They are actually considering giving 25 million dollars to a private developer to do a private development that he will privately own. And the apartments will not even be affordable ! Insanity!
ReplyDeletethey arent giving anyone 25 million from county money, get your head out of your a$% and read the entire article
DeleteThe stupidity is breathtaking!
ReplyDeleteBy another name, this kind of redevelopment "investment" stinks as much as that scam in Allentown called the Neighborhood Improvement Zone, a massive failure to all but a few private owners.
ReplyDeleteUnions are McClure’s cash cow. This is why he wants it approved. Democrats don’t care about the people, only getting elected and staying in office. Term limits are needed for every elected official. Federal, state and local levels. Vote no for the PEOPLE you represent.
ReplyDeleteI'd bet the entire $20M that the so-called doctor superintendent has an IQ below 85. He's barely mastered our native language. You have to admit it's hilarious to see government officials completely bamboozled in public sight. Govern me harder, daddy.
ReplyDeleteDr. Baily is smarter than 90% of your readership. 100% smarter than the commentors.
DeleteThat's Dr. Harrison Bailey III to you.
DeleteNo TIF, no Keegan, no Warren, no Kraft or McClure, the people don’t want you anymore!
ReplyDeleteAfter watching this meeting this developer seems ultra shady and as one person spoke it’s a slap in the face to give big breaks to greedy get rich companies when the citizens of Wilson get nothing.
I am a Wilson taxpayer for over 50 years will I get a tax break?
ReplyDeleteHell no your only a taxpayer not a politician.
DeleteYou’ll get nothing,
DeleteAnd like it.
The school board of directors Wilson must be morons. They gave up tax benefits from this property for the next 20 years ! We can only hope County Council isn’t that stupid
ReplyDeleteThis scam artist already said he would build the building without getting the TIF from Council . So why on earth would they still give it to him????
ReplyDeleteDidn’t he just buy LA Fitness for 6 million? So if he has the money to buy that, shouldn’t council deduct that money from the TIF? Something doesn’t smell right here
ReplyDeleteRumor has it he is seeking a TIF for that too.
DeleteNYC developers come to little ol LV for our tax breaks. We can't be this foolish!
FINANCIAL CLUSTER F@CK! Should have gone with Hyman.
ReplyDeleteI’m with Bernie on this one also. Holy shit I’ve agreed twice in three days! I think when everyone looks back on this a decade from now they’ll realize what a colossal mistake they made. I really hope I’m wrong, but this makes no sense to me.
ReplyDeleteJersey people need apartment units too.
ReplyDeleteWarren asked that you stop busting his balls.
ReplyDeleteAs they will charge 2500/month rent it would seem that any council member that votes for this corporate welfare should resign as they do not have the best interest of the constituents they were elected to serve.
ReplyDeleteI had a college professor with a PhD who regularly reminded his students that PhD stands for phony doctor. This guy is proof. The thought that kids will have on-the-job learnings from this boondoggle is incredibly dumb - even for a PhD. The project is underway and students would be better informed - free of charge - to read this blog, or attend a lecture by this blogger about the folly of government picking winners and throwing tax gifts at developers with no record of success and shifty, murky backgrounds designed to deceive.
ReplyDeletethe study, it was mentioned later in the meeting that the School District would only see an impact of 6 students in the school district. That is correct, SIX students over 400+ apartments... I think the DR. may want to have an independent study completed....
ReplyDeleteI haven't read anything about any public officials questioning what TIF funds would be spent on. Public infrastructure? I would think that is rather important for the taxpayers to know.
ReplyDeleteDana, it would appear the funds would all go into his building project..
ReplyDeleteThe pockets that are being greased now (SCHOOL BOARD MEMBERS & CERTAIN COUNCIL MEMBERS ) better get their heads out of their butts and think of the tax payers ( or resign before you go to jail )
ReplyDeleteAs of today 10-24 I hear BARTEE is buying track shoes GET THE HINT
ReplyDeleteHere comes Mr. Reidman welcome back