A TIF tax break to convert Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments was defeated in November in a close, 5-4 vote. Yesterday, I told you about Executive Tara Zrinski's fallacious ceteris paribus argument for the TIF. Today, I'll shre the views of three of the Council members who voted Yes in November. - Ken Kraft, Kelly Keegan and Jeff Warren, All three reiterated their support at the April 16 public hearing.
Kraft, in his own inimical style, argued that we should take the $2 million up-front (legal) bribe being offered by the developer. Here's what he said: "What kind of skin do we have in the game? Which is really minimal. But now we got a number on it. $2 million. They're giving it to us. So, our saying no to this project would be the most bonehead thing you could possibly do, because you're not losing anything. ... We're not even impacted anymore. I mean, we have no impact at all. You've given us the money up front, that, you know, I don't know, not a financial person, but supposedly we can leverage to loan more money at no percentage, you know, to do affordable housing somewhere. ... So we're not losing a dime."
He's right, too. It's not a dime. It's a lot more. According to the TIF ordinance, which he really should read, the county is giving up $5.6 million in real estate tax revenue over the next 20 years.
That seems pretty boneheaded.
Keegan played a math game. "All right, so Wilson Borough Council approved the TIF in 2024 and then again in 2025, and 9 members sit on the council. It was unanimous. Wilson Area School District approved the TIF. All 9 supported it. It was unanimous. They lived there in Wilson. They were elected officials for Wilson. My district is, uh, Wilson is part of my district as a district 2 commissioner. If 5 out of 9 of us on this board votes no, then out of 27 elected people, 81.4% support it, and if 5 of us vote no, 18.6 will not."
Although Keegan's math is correct, she misses the point. The TIF is authorized by the state Urban Redevelopment Law, which requires the approval of a majority of all three separate taxing districts impacted by the handout. These taxing bodies all serve different taxpayers. The representatives of taxpayers in Upper Mount Bethel Tp and Lower Saucon should have a say in decisions that give their money away.
Finally, Warren had something to say, too. He said he "wasn't planning on speaking," which is code for "Get the NoDoz out." This time he did spare us from his argument that we should grant a TIF because his grandfather worked at Dixie. Now he's likening government to mechanics, saying that a TIF is just a "tool in the toolbox." I'm a terrible mechanic myself, but even I know that you do not use an allen wrench to put air in a bicycle tire. And you don't kiss away $26 million in tax revenue to an inexperienced out-of-town developer who has admitted a few times that he doesn't really need the county's participation.
Warren commended developer Brian Bartee, who he said has "truly given so much to the community by what he has done with that building already."
Say what? There are still gaping holes instead of windows. And what has government already done for Skyline's Bartee? Skyline has already been awarded $1,000,000 from an RACP application in 2024 and this year. It has 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
26 comments:
The three stooges. Nat Hyman can do it with no taxpayer dollars. These people are idiots.
what lawsuits does the public have that they can use to stop council from this bonehead givaway?
This project is obviously not self-sustaining. Shouldn’t that mean the project is not worth it, unable to exist on consumer demand alone to make it work? Thus, it’s a plaything for select persons only.
I’m not understanding this….As Mr. Hyman points out, Northampton County has so many pressing problems like Gracedale and the budget. Why on earth would they even entertain this use of taxpayers funds for luxury housing ?
It really is embarrassing to the voters how stupid these 3 are ! Shame on us for putting them in office and giving them oversight of our money
“We're not even impacted anymore. I mean, we have no impact at all. “ Is he insane ? It is the taxpayers money over the next 20 years that he is giving up . And that will certainly increase when Tara raises our taxes to balance the budget. Also, we will be on the hook for $29,000,000 when this untested developer bales on this job. The only smart thing he said is “I don't know, not a financial person, “
The only plausible reason these 3 are voting for this job is in some misguided attempt to make the trade unions happy. Beyond that their arguments are laughable
As Mr. Hyman said in your other article , they are giving him $29m to have him pay them $2m. Sign me up for that !
Bernie your $5.6m assumes that no other developer would come along in the next 20 years and add value to the building…..which I’m sure they would. You are also assuming taxes won’t be raised in the next 20 years….we know how that goes. Point being, they are giving up a lot more than $5.6m
Is Brian Bartee putting any money into this project or is it all being done with hand outs?
“The representatives of taxpayers in Upper Mount Bethel Tp and Lower Saucon should have a say in decisions that give their money away.” As I recall, a LERTA was given for a warehouse in the upper north section of the county and now it’s under foreclosure. WE CERTAINLY DIDN’T NEED ANOTHER WAREHOUSE!
But we do need housing and we do need money for affordable housing and we have an opportunity to get it and Wilson has an opportunity to get tons more tax revenue than they’re ever going to get with Dixie sitting around rotting.
Hyman has forgotten more about finance and development than these 3 clowns will ever know. They should just shut up and listen to the expert.
Let me get this straight. Your argument for the TIF, the biggest tax break other than the NIZ, is that we gave a LERTA in UMBT and it failed? Got it. Thanks for your brilliant contribution.
100% agree!
This was precisely the point made by Matthew Flower during courtesy of the floor and it is my default position regarding government handouts. I am generally opposed. If a business idea is a good idea, it will succeed without government help. If it is a bad idea, it will fail no matter how much money is poured in by the government. I do have no problems with LERTAs for homeowners who want to add a new roof or make improvements to their homes. But that is not economic development, It is community development.
How could Wilson get “tons more tax revenue” when the TIF by definition will take away their taxes from this property for another 20 years ? Another brilliant contribution
Since Keegan has dazzled us with her mastery of elementary school arithmetic, maybe the Count from Sesame Street can take her place at next the council meeting. "I count, five! Five! Five votes in favor! Five!" Betcha nobody would notice.
You missed the point.
This should clearly show those who voted these people in made a big mistake. Reach out to them. Tell them no. See if any care about what their constituents want
If I did, then so did many others.
do you understand the tax code and what this dump is contributing a year to the county, do you realize that NORCO is 10% of the tax base on this project and the school district is 67% and the local is 23% of these so called taxes you are referring too? These two already approved this 3 times yet you think that the county somehow is giving all this money away. Please enlighten us
You’re correct in your breakdown of the percentages but that begs the question why Bartee wants County approval so badly as to go back a second time ? Maybe because they are the authority issuing the bonds. And your argument is Because the school board is stupid and the borough is stupid so the county should be stupid too ?
Say no to TIF and give the money to the senior centers that are closing. The elderly go to the senior centers for meals and social activities.
This council is clueless. We need CPAs and financial people on council.
I don’t understand how 9 people on council can support this scam. This council is supposed to represent the people of Northampton County. They do not have a clue what they are doing. How can the people stop this? There are many more places this money can be spent to help the residents of the county. Northampton County does not owe this developer 1 dime. Vote NO TO TIF. Why is this even still on the table. Because the democratic council will approve it now??? It was already votes down. Move on.
Plus the developer said he would more forward with or without the money.
So let him. Letting the Three Stooges speaks just shows you how incompetent they are. While Keegan was right with math, someone wrote and put it together for her. She always reading notes or her phone. She can’t talk off the cuff. She’s clueless.
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