Last year, NorCo Council denied a tax break known as a TIF to Skyline Enterprises, the developer of plan to convert the vacant Wilson Borough Dixie Cup factory into 405 luxury apartments. The TIF would enable Skyline to float a bond to pay for the cost of construction, payable from future increases in assessment. But as I told you yesterday, Skyline plans to try again in March.
Skyline was at a NorCo Council committee meeting last week to seek County Council's approval of its application for a $500,000 state RACP grant. "You're doing a fantastic job!" gushed Council member Jeff Warren to Skyline managing partner Brian Bartee. He noted that Bartee has spent his own money to prepare the site. That's a bit misleading. Bartee has or will be receiving at least $1,383,257 from the state alone, to say nothing of the TIF and federal tax credits.
Warren also claimed that the Lehigh Valley needs 10,000 housing units and "This is needed to make housing more attainable." This is the same argument that former Exec Lamont McClure made. They are both wrong. This will actually make housing less attainable. Let me explain why.
If the Lehigh Valley were a bubble into which no one could move and no one could leave, 405 luxury apartment units would make housing more attainable. But as we all know, the Lehigh Valley is no bubble into which no one can move or leave. The addition of 405 luxury apartments will only attract people from outside of the Lehigh Valley who can afford to pay the high rent as they commute to their jobs in NYC or Jersey. And guess what? The Lehigh Valley will still need 10,000 housing units.
If Skyline was building workforce housing, this would probably alleviate the housing crisis. But it's not. It is building luxury apartments and a luxury hotel, not a place for a weary corrections officer to rest between shifts.
In reality, this will exacerbate the housing crisis. When nearby landlords see the rents being charged by Skyline, they will increase their monthly rents as well, making housing less affordable. During the hearings in advance of the TIF that failed last year, a well-known local landlord argued in favor of the TIF for the obvious reason that he could then charge higher monthly rents.
In addition to actually exacerbating our housing crisis, Skyline does not really need a TIF from the county. Council member Jason Boulette queried Bartee on that topic. "It really means a lot to us to have the county support and buy-in as well." answered Bartee. But when pressed he acknowledged that "[t]here are other ways to have the project move forward."
Given that this project will actually worsen the housing crisis and can move ahead without shackling the county taxpayer, there is no need for the county to give this nonlocal developer any tax break. The county is looking down the barrel of a tax hike next year for Gracedale and better wages and should probably think twice before investing taxpayers' hard-earned money into this boondoggle.
21 comments:
As a taxpayer I resent the idea of a Tif for this project and as a voter in Jeff Warren's district I will express that resentment in his upcoming election.
“The county is looking down the barrel of a tax hike next year for Gracedale and better wages and should probably think twice before investing taxpayers' hard-earned money into this boondoggle.”
It’s sounds like the county already did “invest my hard-earned money into this boondoggle”.
Or doesn’t the RCAP grant they just approved count as my tax dollars (a.k.a. my hard-earned money)?
Bernie, Mr. Grubb gave a great insiders take on the runaway politics of public-private partnerships that work for some but not most. These departments have devolved into campaign offices for Mayors and country executives. Photo ops and big cardboard checks. I agree with your take on this Dixie fleece. So, county taxpayers may or may not see a benefit in taxes by the middle of the century, no guarantees. It will not help renters in the LV.
I did vote for Ms. Zrinski because I think she is a breath of fresh air. Her keeping the entire McClure gang is disappointing and this decision is the result. I would tell all these directors they have this year and next year she would get her own team. Especially in Human Services Because they are destroying her at gracedale.
Council should have raised taxes as McClure ran the bank dry. Also, I wish the old council was there. These clowns can't think for themselves. Mr. Hyman should write an editorial.
Becky Bradley and the entire Lehigh Valley Planning Commission approved this project. LVPC in its letter of recommendation concluded the exact opposite of what you have written here.
In my opinion, Bernie is engaging in his brand of muckraking, yellow journalism at the behest of Allentown landlord Nate Hymen. Nate is the guy who sent his tenants eviction notices during Covid - despite there being a moratorium. Hymen is the Allentown landlord who sued the City forcing them to displace the unhoused. I bet if you take a look at the sudden spike in evictions in the Lehigh Valley, you just might find Nate Hymen’s properties all over them. If you want evictions to spike in Northampton too, you really should let Nate have the Dixie - IMO.
Not so sure of your reasoning. If folks from outside the valley were not to buy the Dixie homes they might be bidding up prices on current housing stock. Making housing less affordable to the locals seeking a home.
The exec and council have their heads up and locked on this issue. Follow the money?
This is a union jobs program, and rich people from Jersey need a second or third place to stay. Don't be jealous.
The notion that this will "exacerbate, the housing crisis is absolutely ludicrous." Laughable in fact.
Also laughable, no mention in this story of Lori Vargo Heffner getting a huge campaign contribution last year from another developer opposed to this project.
As a Northampton County resident, I don’t want to see any of my tax dollars going to pay for this Dixie Cup scam. Be supportive any way you like. Speak out in favor, donate your own money, even move in there. Just leave MY money alone!
I'm sure the $500 she received from a developer who hates handouts is what made her the top vote getter. That might have paid for 1/14 of one mailer. But I will soon be looking at everyone's campaign finance.
I've explained clearly why this exacerbates the housing crisis. It creates luxury housing that cannot be afforded by most people in the LV. It will draw renters from outside the LV, and the 10,000 housing units the LV needs will still be there. What we need is workforce housing. This does not solve the problem. What does is better zoning and smaller homes. We should be pushing in that direction instead of exacerbating the problem.
Bingo, This is precisely why the Kraft-Keegan-Warren troika pushed this last year. It has nothing to do with housing. It is all about the trade unions. Barteee even mentioned how he will be sending the trades in to do the work. I support union labor but do not support stupid projects simply bc union labor is used.
LVPC does not weigh in on the propriety of using taxpayer resources to fund a project. It does not opine on whether the plan makes housing more affordable (it doesn't). It opines on whether a project is consistent with the uses outlined in its regional plan.
They are already doing that and will continue doing that and this will add to the spiral of the increase in housing costs instead of reversing it. If the government were truly interested in providing workforce housing, it would push for changes in zoning to allow for smaller homes. This just makes the problem worse.
You explained clearly with your own personal bias context. But you left out a lot per usual. Not surprising.
Once again Bernie is spot on. The Three Stooges pushing McClure’s agenda and as good puppy dogs. Now Tara will take the reign and push for this disaster. Taxes are going up and up and Gracedale will fail for sure. This county needs leaders not self serving clowns and suck ups like Warren. Gag him every time he opens his mouth it’s sickening to listen to him. Run for the state representative seat, people will see right through this phony BS. Just have a beer with him. You’ll find out.
Bernie, I agree with your assessment on housing and affordability relative to this project. By all appearances it doesn't meet local housing needs.
This developer is full of it. Who will pay those rents to live between 2 high schools and a highway? The reality is that this project will likely turn into Section 8 apartments and a low budget hotel. The old Kmart will become another Dollar store. The private equity scum will then suck all the value out, load it up with debt and then declare bankruptcy. The way to make housing "affordable" is to stop government from subsidizing it.
You clearly just want to bash Nat Hyman Why would he care if they give this scam artist money? He doesn’t own the building , its Skylines building now
I totally agree and I wonder how much Nate is paying Bernie to bash the Dixie project
A little off topic but developers are building million dollar homes. Even 55 and older start around half a million. Affordable housing seems to be a thing if the past. Even elderly looking to downsize can't afford it as the homes are more expensive than theirs. Thus aging in place and less affordable homes are not going up for sale.
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