Tax Break For Luxury Apartments at Wilson Borough's Dixie Cup Fails With NorCo Council

Kristen Bertucci is with the Recovery Partnership, a nonprofit that provides mental health recovery services in the Lehigh Valley. At last night's NorCo Council meeting, she provided a list of human services vendors who have received no or only partial payments from the county for the past five months as a result of the state's inability to adopt a budget. Her own staff has been laid off, and she wonders if they'll be there if and when the state legislature finally gets its head out of its ass. To make matters worse, she notes that SNAP (food assistance) benefits "for the most vulnerable in our community" have been suspended as a result of the federal shutdown. She said this deprives many people of their "most fundamental human need." The only constant she has observed is a "complete disregard" that taxpaying citizens receive from all levels of government. "These actions tell us that we don't matter, at least not as much as a bond rating or in comparison to a real estate taxpayer. " she concluded, and she's right.  The county has stopped paying human services vendors. Human services caseworkers, who investigate abuse claims against seniors and children, have possible furloughs hanging over their heads like the sword of Damocles.  Against this backdrop, County Council was being asked to give a 20-year real estate tax break amounting to as much as $29 million to an out-of-town developer with no experience. He has already received handouts from the state and wants even more.  The noble purpose of this largesse? Luxury apartments at the old Dixie Cup factory in Wilson Borough. He was able to find the money to buy the Planet Fitness building next to the Dixie Cup factory, but wants government to help him build high-end apartments. 

I'd say the only idiots who would support this type of obscenity would have to be snorting cocaine. In fact, that's precisely what Stan Margle, the Wilson Borough lawyer who pushed this project before County Council and insulted them in the process, is accused of doing. 

Last night, after months of delay between the developer and an industrial development authority, County Council was finally asked to voter on the matter.

Council member Jeff Warren bloviated over the phone and apparently thinks the tax break should be granted because his grandfather once worked at Dixie. He called this decaying hulk of a factory a historic building. He contended we already give tax breaks to multimillion dollar corporations "out the wazoo."  I'm uncertain how this argument is even logical, but there it is. His real argument is the promise that the apartments will be built with trade union labor. 

Other Council members had different views. John Goffredo said the county is making no payments for pensions this year and predicts it will soon have to raise taxes. John Brown argued that the developer's willingness to contribute $1 towards affordable housing is too low. Ron Heckman said he does not think a TIF should be awarded for one building with one developer. He said the county should be more concerned about human services. Lori Vargo Heffner said she's opposed to a tax break at a time when county finances are uncertain. 

County Council voted to reject the tax break in a 5-4 vote. Goffredo, Brown, Vargo Heffner, Heckman and Tom Giovanni voted No. Voting Yes were Kelly Keegan, Jeff Warren, Ken Kraft and Jeff Corpora. 

After the meeting, the county issued a news release attacking its own County Council. Here's a portion of the news release, using county resources to attack a branch of its own government:

“The council was presented with a straightforward plan to breathe life back into a site that has sat empty for 42 years,” said County Executive McClure. “They continue to prove themselves to be the most useless county council in home rule history.”

“At a time when action was needed, Council dropped the ball, turning a chance for progress into yet another chapter of missed opportunity.”

If he thinks this Council is bad, wait until next year. 

Frankly, there is no compelling reason for this handout. The only jobs it will produce will be temporary union jobs that will end once the apartments are complete.  It will make housing more unaffordable. Nearby landlords will increase their rents. And no one will see any increase in tax revenue for 20 years, if then.