Yesterday, I shared Lehigh Valley News Brief's story about the DaVinci Science Center boondoggle, and told you about its hopefully dead plans to build a 500,000 gallon salt water aquarium in downtown Easton, complete with a 100' tall Vitruvian man straddling it. Believe it or not, Northampton County Council wasted $300,000 on this project before common sense prevailed. Jeff Ward, who publishes Lehigh Valley News Briefs, believes we "need more skepticism in local government, particularly when it comes to dispensing taxpayers’ dollars." At least DaVinci is a nonprofit with a noble mission. But guess what? Local government is falling all over itself to help a for-profit private equity firm (Skyline Investment Group) build both luxury apartments and a high-end hotel in Wilson Borough. In addition to seeking a $29 million tax break to redevelop the vacant Dixie Cup factory, it already has received $838,257 in state grants. What's more, it wants another $9.5 million from the state. Without the local tax break known as a TIF, which amounts to about $29 million, it is seeking $124,338.257 in the form of outright grants or tax credits.
I know this because of a Redevelopment Assistance Capital Grant Program (RACP) filed with the state this year for a $9.5 million grant, which you can see for yourself below.
Technically, the applicant is NorCo Exec Lamont McClure. This in itself is odd. County Council was never informed of this grant request, nor was its approval sought. County Council is usually asked to endorse grant applications to the state, and I question whether the Executive has the authority to seek a state grant without the assent of the governing body. The grant writer is in fact a county employee in the Department of Community and Economic Development, meaning that the county has devoted its own manpower to this project.
Under the county's Home Rule Charter, the Executive has the authority to represent the county in obtaining federal or state assistance to local governments (Section 303(6)), but has no power to seek grant assistance on behalf of a for-profit corporation.
The grant application includes the Wilson Borough Dixie Cup factory, which is slated for luxury apartments that few can afford. It also includes its "New Life," project, a plan to convert the 3-acre former LA Fitness site into a "premier hotel" known as The Wilson. According to Skyline, "130 hotel suites with 250 multifamily residences are planned that will feature 1920s-inspired art elegantly paired with modern amenities and exceptional service. Along with the introduction of approximately 163 permanent jobs, The Wilson will feature EV charging stations, a high staff-to-room ratio, and a suite of premium services.
Guests will enjoy the personalized attention of a dedicated butler, doorman, concierge, chauffeur, and
valet parking, all provided by a team of highly trained professionals committed to the highest standards of hospitality".
Do you think it's wise to spend public tax dollars for luxury apartments and a premier hotel that includes butlers and chauffeurs?
The grant application describes the site as a "brownfield," but that is completely untrue of the LA Fitness site.
What you see below indicates that Skyline has already been awarded $500,000 from an RACP application in 2024. It also received $163,257 from a DCED Multimodal Transportation Funding Grant and a $175,000 Greenways, Trails and Recreational Program grant .It is seeking even more grant money from PennDOT, DCED Mixed Use Housing Development, another DCED Greenways grant, another DCED multimodal transportation grant, and Pa Historic tax credits
It also wants $28.5 million in federal tax equity credits.
That’s crazy why not just build 124 million worth of housing without this developer why are we socializing their greed. It’s our tax dollars being pissed away all the same
ReplyDeleteFirst of all, this is nothing but a bad idea. It seems from your previous reports that the company that wants this is less than qualified to complete it. Wilson needs high end apartments' etc like Bethlehem needs a food co-op. Secondly, McClure, as usual, played dirty and undermined Council. His motives are questionable. Now you have a new exec and new members of council. What moves can they make and in which direction will they go?
ReplyDeleteWrong. There’s no Charter provision prohibiting the County from being the municipal conduit for an RCAP grant applicant. Applicants are often for-profit entities attempting to do brownfield redevelopment and other impossible to do projects. (Lou Pektor has received a few in his day for example.) Alas, no County money is spent and/or committed for the RCAP. The County would merely be the pipeline for the funds from the State to the entity - which County Council would have to approve the receipt of via Resolution and then Budget Amendment. This has only been done 100 times across multiple administrations since the inception of the RCAP program.
ReplyDeleteI wish people in county government would actually start reading the Charter. The Executive's powers are limited. Under Section 306(6), he can "represent the county in any programs of inter-governmental cooperation or for obtaining federal or state assistance to local governments ... ." There is no provision allowing him to do so on behalf of a private enterprise. This has not been done 100 times in the past, although I believe it has been done a few times and when it has been done, it has been done in violation of the HRC. You could argue that this is a residual power, but residual power is vested in Council. That is why I believe county council should have authorized the grant application. Of course the HRC should be construed liberally, but reading it all together, I believe Council's assent is necessary for this grant application.
DeleteFrom a guy who said early on that he didn't want any government money because he had his own, must have looked at his checking account balance and realized he's a fraud with little money but a big mouth!
ReplyDeleteI think there's a widely held expectation that taxpayer money will always be used by politicians to provide gifts for politicians' friends. The poors get a lot of stuff. Why not give the rich some stuff?
ReplyDeleteThat's your boy Lamont. He promised something to someone and it got shot down by council so just apply for something behind the tax payers back....
ReplyDeleteDon't worry with this new council this company will get everything they want. Lamont will cash in those IOUs from Tara and it will get pushed though.
Still screwing over the county even after he's gone!!!!
I'm sure Lamont will be doing some kind of legal work or lobbying for that construction project to make some cash. In the future.
BO: Has Skyline ever built or developed anything ? Are they trying to convince us to give taxpayer dollars for a huge development to someone who has zero experience?
ReplyDeleteIf Tara Zirinski supports the Dixie TIF she will destroy her credibility (and political capital ) right from the beginning and the rest of he term will be a lame duck because she will never get reeelcted.
ReplyDeleteYou obviously don’t understand what a “lame duck” means in the political realm. She will not be a lame duck being majority of council is within her same party affiliation. Now if doing her term the R’s assume a majority of the council seats then she’d be a “lame duck”.
DeleteThis is unbelievable ! Is Skyline going to spend one dollar of their own money ? Thank Joe Reibman for letting this building sit for 40 years and now selling it to someone who will end up doing nothing with it for another 40 years
ReplyDeleteDoesn’t Reibman hold the mortgage? So if the project doesn’t succeed and the developer defaults, Joe (or heirs, none of us are young) can sell it again!
DeletePropping up for-profit development with these kinds of public subsidies is utterly ridiculous. The only way I believe that public funding should be even considered in support of private for-profit projects is when any public infrastructure is required to complete a project. At least in that case the taxpayers own those public improvements and get something tangible in return. However, that value should be delineated at the start of the project process so taxpayers understand how much skin they have in the game.
ReplyDeleteThis sort of sneaky, if not illegal, dealings by McClure should immediately disqualify him for Congress. Anyone who votes for him should be ashamed of themselves.
ReplyDeleteThe county never “writes” the grants. A consultant hired and paid for by the entity usually does.
ReplyDelete@8:08
DeleteYou nailed it.
Well, well, well. Someone is finally waking up to find what the real McClure is all about. We've been trying to tell you for years that McClure doesn't care about anyone but himself and he will do anything to further his own financial standing in the community. He has screwed his employees and used the unions and the taxpayers and he doesn't care about The Home Rule Charter or any other laws. In order to do the illegal things that he has done, he needs the support of a willing Council and a loyal "LEGAL DEPARTMENT". Where is his Solicitor on all this? Zrinski should give notice to whomever allowed McClure to violate County law.
ReplyDeleteThis is crazy. Ultra high end living with tax payer assistance. Our local representatives are fools for offering government assistance from the pockets of the working person for this project.
ReplyDelete8:08, The grant writer is specifically identified, and she is a county employee.
ReplyDeleteOf course the name of a county employee’s name will be on the grant application, it’s a “County” grant after all.There is a well established protocol to follow here.
DeleteSo who is Rebecca Sanchez????
DeleteShe is a county employee who works in DCED. She is a grant writer. That is her job. But I am not criticizing her. In fact, she did a good job.
Delete@ 1108… “Who is Rebecca Sanchez”? Rebecca is an invaluable employee to both the county and the residents! Rebecca is a dedicated public servant who does her job well! None of this is a surprise being she works in the department overseen by Tina Smith who is equally dedicated, hard working and will do all she can for this county.
Delete~ fellow county cohort
This is what happens when half of your neighbors are racist neo-Nazi types and the entire country is sliding rapidly into a fascist state.
ReplyDeleteDream on. Look at council's make up. The party of the working man is making shady developers very wealthy with your money (assuming you have a stake in county finances and pay any taxes at all). In fairness, rich New Jerseyites escaping that state's taxes need an opulent place to live that is paid for by working folks' dollars.
DeleteMcClure is a sleaze bag. Calling Nick Shirley, investigate Northampton County and McClure.
ReplyDeleteHe (developer) will probably bring back Mr. Reidman to help spend the taxpayers money
ReplyDeleteUsing tax payer money to subsidize for-profit endeavors is just not fair, especially when funding anything luxury. At best maybe loans that must be repaid at current interest rates might be considered fair to the taxpayer, but of course, how many times have we seen developers wriggle out of repayment?
ReplyDeleteSo he wants to build a luxurious hotel with butler service next to an abandoned K-Mart with a beautiful view of Easton Area High School? (No mention of him buying Kmart, only LA Fitness building). Ooo sign me up.... Not... Wow.
ReplyDeleteIf I remember your prior article, Joe Reibman GAVE the building to skyline and kept a mortgage for the entire purchase price . There is no doubt the prior comment is correct….Reibman is getting paid under the table by Skyline
ReplyDeleteBefore Council gives this guy a dime, shouldn’t he have to prove that he has the rest of the money to finish it ? That Seems obvious to me
ReplyDeleteThose members of the Wilson Boro Committee, Wilson School Board and Stan Margle who voted to give this guy $29m must be so blinded by desire to get this built or just patently stupid
ReplyDeleteToo bad Irwin Allen is no longer with us. This project would make a great disaster film.
ReplyDelete