I've told you why NorCo Exec Tara Zrinski supports a tax break to convert Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. I've shared arguments of three Council members who voted for the tax break (called a TIF) when it failed last year. Now I'll share the views of someone who actually knows what he's talking about. Allentown developer Nat Hyman has done 40 projects similar to Dixie, and here's what he shared with NorCo Council.
I write you regarding the TIF you are considering giving to the developer of the Dixie Building in Wilson Township. Please keep in mind that a TIF is the MOST generous form of tax incentive, far more so than a LERTA ! There are a few fundamental facts I believe you should consider before giving this money to Skyline Investment Group:
1. This will do absolutely NOTHING to address the affordable housing crisis. This developer has repeatedly said that they will be spending $185,000,000 for 400 apartments. That is a staggering $462,500 per apartment !!!! Basic math tells you that the interest costs alone will be $2,500 per apartment / per month (without including any amortization and all of the other operating expenses). These numbers will require rents north of $6,000 per month just to break even…..hardly affordable ! And the fee in lieu of $1.2 million that they propose paying toward affordable housing is nothing. This would build 8 affordable apartments and, more importantly, they are paying you out of the $29 million you are giving to them ! They are paying you with your money !!
2. Some have tried to claim that this project will create many jobs. The reality is that Dixie will create some construction jobs on a very short term basis. It seems to me that some people are pushing this TIF to curry favor with those construction unions. After that, there will be virtually no jobs created. Two or three full time people will be needed to run this apartment complex once it is built. This is not a project like Eli Lily which will create 1,000 good paying and long term jobs.
3. This “developer” has actually NEVER DEVELOPED ONE BUILDING. While they did list one project on their website called “The Louis” that they said they had developed, that was a lie. When confronted with this lie, they removed the project from their website. In addition, they had listed 5 offices around the country all with the same phone number which is the principal’s cell phone number. Those offices have likewise now been removed from the website. Finally, their supposed office in NYC is simply a shared executive office where they use a community receptionist. Do you really want to give $29,000,000 in taxpayer dollars to someone who has never built anything and is clearly a scam?
4. Skyline is presently in DEFAULT of its purchase agreement of the Dixie property with Wilsonpark. To date, they have paid ZERO principal or interest on the $11.5 million purchase price. So you are considering giving money to a borrower who has shown their inability and/or unwillingness to honor its obligations. There is not a lender in the world who would loan money to a borrower with a history of not paying its debts.
5. As I said, Skyline has said that this Dixie project will cost $185,000,000. ANY lender loaning or granting money to a borrower would want to be 100% assured that the project will be fully funded. There is NO WAY you should consider giving Skyline the $29,000,000 unless and until they can prove they have a firm commitment for the other $156,000,000 to complete this project.
6. Having done 40 developments similar to the Dixie building, I can tell you , unequivocally, that this project can be done beautifully with absolutely no government assistance. It would seem to me that the $29,000,000 is better spent on Gracedale, budget deficits or a reduction in your constituents’ taxes.
Finally, a disclaimer …..despite what some have said, I have ABSOLUTELY NO vested interest in this project and nothing to gain or lose by your choosing to give or not give them this money. This building has been sold and the title transferred to Skyline Investment Group and nothing you do will change that. I will not own this building regardless of your decision. I am simply a taxpayer upset by seeing my tax dollars wasted and I do have a philosophical disagreement with the concept of giving taxpayers’ money to a private developer to build luxury apartments. That said, I come at this from a unique perspective as the Lehigh Valley’s largest developer of adaptive reuse projects ….I have done 40 projects virtually identical to Dixie and have never taken one dime of government money or any incentive. As an example, I am converting the former Crayola headquarters in Palmer Township (only 3 miles from Dixie) into 94 affordable apartments with absolutely no taxpayer money. This developer could do the same with Dixie and he has told Council that he can indeed build Dixie without this TIF!!! So why would you give it to him??!
Ask yourselves, if I am correct and you give this untested “developer” $29,000,000 in tax payer dollars and, as I predict, the project is never completed, what legacy you will have created for this Council?
40 comments:
Mr. Hyman offers a VERY compelling argument against my Northampton County approving such an outrageous investment in what is truly a hornswoggle of every taxpayer living here.
I am astounded my elected leaders are so naive about snake oil salesman who prey on precious citizen tax dollars. Actually, I am shocked this request still has any life in the minds of those who should know better.
Folks, we are being DUPED. Stop this nonsense now!
NC Executive is another loser for the County. She is going to give a TIF to Dixie but going to have to increase taxes to taxpayers because of McClueless actions.
Hyman is 100% correct !
He makes total sense to me. Let’s see if those idiots like Kraft and Warren are smart enough to listen to someone who actually knows what he’s talking about. My guess is no !
If Nat has done these projects 40 times and never taken a dime from the government, it defies logic why they would give this guy one cent let alone $29 million!!!???!! And as Nat pointed out, the guy never built one building ! This is insanity!!!!
Any member of council who votes for this should be voted out of office. They are clearly pandering to the unions and putting that ahead of the taxpayers’ interests.
I wish council would listen to him. These people have no idea what they are talking about. A mediocre school nurse who celebrates the murder of political opponents isn’t an authority on real estate development. Neither is that bloviating idiot sidekick of hers Warren.
This man is 100% right and hopefully there's a lawsuit one or more can use to stop this move from council.
Nat's missing a big opportunity here if he doesn't patent a game called "Hyman Sez". Hyman Sez.....develop it!
Of course it can be developed without tax payer money. But then how will campaigns receive the obligatory quid pro quo "donations" from developers who got to dip into the slush fund.
Hyman is smarter than all of these council people put together. They should just listen to him .
I really wish Mr. Hyman would take a shot for mayor of Allentown again, hopefully people in our town would realize he might actually move our city back to sanity using some reason and logic instead of voting for the next carpetbagger to come to town who always seem to make things worse.
Nat didn’t come up with any plans for this site, Bartee did. Northampton County will LOSE 2 million dollars for affordable housing, so a vote No is a vote against that. And if this project doesn’t pass and Bartee loses his financing AND the project doesn’t get approved, then Wilson AND the county get NOTHING! No tax revenue that they would’ve received otherwise. So good job Bernie touting your boyfriend Hyman! You will get us nothing AND a building that will sit and continuing rotting.
The traffic on 25th St. is so to be spectacular.
Hyman wrote, "if I am correct"?
Nah, I'm not betting on Hyman. Hyman is a day late and 2 million dollars short for affordable housing.
They don't. Instead, they lob anonymous personal attacks that I refuse to publish unless these pols identify themselves. Hyman is not running for office. Those who wish to attack him need to identify themselves or do so to his face, instead of waiting 'till he leaves the room like Jeff Warren did last year.
9:22 and 9:31 do you understand that they are giving Bartee $26m and out of that he is giving them $2m back?? Are you people stupid ?
So, with this deal Northampton County will LOSE 20 million dollars for the General Fund. That money could be spent on so many more of our needs than just "affordable housing."
I am smart enough to see the whole picture. I’m smart enough to understand several things at once.
Hyman’s is the only opinion that should matter on this subject. He is the only one with real world experience in doing exactly these projects. Keegan, Warren and Kraft know absolutely nothing about this . If this were a matter of brain surgery or arguing a case in court they would know to defer to the expert. But for some reason in this case, they think they have enough knowledge to opine. They don’t ! If development was easy, everyone would do it. They don’t !
OMG...10:21 AM must be The Queen from Alice and Wonderland..the one who could believe six impossible things before breakfast, or maybe brunch in this case.
Take a look at our present council members. Anyone with common sense will be outvoted by those just tagging along with Tara. Our county is doomed.
Bernie you hit the nail on the head, the whole point of this is to curry favors and get $$ from the construction unions. It boggles the mind that a group representing so few people (trade unions comprise approx. 6% of the total labor force) remains so powerful. It's not votes, it's $$$.
Already approved by the school district and the local government, what is so shocking is that you have no idea what you are talking about but still feel compelled to respond.
no, He is not
What unions are you talking about? It is being done with non union labor, drive over there and see for yourself
They are not giving him 26million county tax dollars, that is a lie
No trade unions on this job, drive over and see for yourself, it's all Non-Union doing the work
No one on Council has ever addressed Mr. Hyman’s point of “ There is NO WAY you should consider giving Skyline the $29,000,000 unless and until they can prove they have a firm commitment for the other $156,000,000 to complete this project.”. Seems to make perfect sense to me. Has Bartee ever shown anyone where the other $156 million is coming from and if it is confirmed ?
No it’s not! Do you even understand how a TIF works? They are issuing a bond for $26 million, giving that money to Bartee and then paying the bondholders back from what would have been the increased taxes on the property over the next 20 years. They are absolutely giving him the money
I'll go with Hyman over the disgraced school nurse. Limousine liberals pushing more luxury housing at the expense of working folks!
If you drive over, yiu won't see anything. Construction has not begun. When it does ot will be with the trade unions. Bartee acknowledged that himself at a committee meeting. Also, the asbestos removal was union labor. Let's stop trying to be cute.
Thank you Mr. Hyman for speaking truth and, knowledge to ignorance and sell jobs. Zirinski reads what she is given. The only real job she can get is an elected position, even if she is not qualified for it. Council is now filled with puppets. Kraft is a bonehead. He compares this to a real brownfield tiff that has remediated one o th largest brownfields in the country to a beautiful site used by all. Not a gift to an inexperienced developer looking for a handout. This is a gift to Rebmann who overpriced the property and Wilson Boro who did not enforce codes.
The county needs revenue. The bribe he is offering is for housing, not a fundamental county service. Yet we read that senior centers must close. How about some money for necessary county services. Do the McClure, council people even know what county government does? County government is not in the real estate business or code enforcement. IN business we don't have a clue, only cash giveaways or people with influence. Get back to county business. Lord knows you have plenty of issues that need attention more than this foray into the world of finance.
McClure won’t let them vote no. He owns these morons. Kraft said it’s stupid not to approve this. Fact is you’re really stupid if you do.facts were provided. Do your own research if you don’t believe what was presented. Donations from unions should persuade you. If it does, you’re corrupt.
Good for you, Bernie. Warren is just hot air. Kraft is a bully, and Keegan is a scarecrow.
Do the math $29!million vs $2 million. Who wins. 🤦♂️🤦♂️and Tara will raise taxes. County residents lose. Vote no. Let’s see if Jason is a lion or a scarecrow and vote no.
1:47 - we all know the school district and borough government have already fallen into the trap. This comment addresses a third component, the County, who might well make the same mistake as those other two groups.
Raeganomics for Dummies. The McClure democrats must be proud.
@ 1:47… not surprised, the town NEEDS tax incoming. They are missing a ton of tax revenue when the previous for-profit hospital whom paid taxes on the Easton hospital properties in the borough sold to a “non-profit” hospital network who now’s owns those very properties. Thankfully St. Luke’s is doing their “best” to be a good neighbor and keep pumping money into the town, for now, to keep the fire department staffed and other essentials but this developer seems shady, and just not trustworthy based on what Hyman wrote.
Say no, let the agreement default, let Hyman purchase it and everyone is happy!
Because this property isn’t owned by Trump, no quid pro quo involved or needed!
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