Last night Northampton County Council rejected a massive tax break, known as a TIF, to kickstart the conversion of Wilson Borough's vacant Dixie Cup factory into 405 luxury apartments. This proposal was defeated in November in a close, 5-4 vote. But in January, four new members joined County Council, and the thinking was that they might be more receptive to this incentive. They weren't. By a 6 to 3 vote, the measure failed. Voting against this tax break were Lori Vargao Heffner, Dave Holland, Theresa Fadem, Nadeem Qayyum, Jason Boulette and Tom Giovanni. Voting YES were Ken Kraft, Kelly Keegan and Jeff Warren. They had also voted for it in November.
I explained Tax Increment Financing (TIF) yesterday, but as a result of an error made last night by NorCo Exec Tara Zrinski, I feel compelled to do so again. She had stated, erroneously, that "the county continues to collect incrementally increasing taxes for the next 20 years." This is false. Instead, property taxes are frozen at their current level. Any increase in property taxes, resulting from new development is diverted to subsidize that development. Local public taxing bodies are denied the new revenue they would normally get from new development. Aside from Allentown's NIZ or an outright grant, a TIF is the most generous tax break a municipal government can provide.
Sensing which way the wind was blowing and knowing that the public has woken up to what is going on, an effort was made to delay the matter. Zrinski, in her comments, said that she expected the ordinance would be withdrawn or tabled. And sure enough, a motion to table was made by Jeff Warren and seconded by Kelly Keegan, supposedly at the request of the industrial development authority. The obvious reason is to delay and slip it back onto the agenda when everyone goes back to sleep.
The motion to table, which is undebatable, failed. Ken Kraft and Jason Boulette joined Keegan and Warren in seeking a delay. But Vargo Heffner, Holland, Fadem, Qayyum and Giovanni wanted a vote that night. Even after the motion to table failed, Kraft attempted one last time to push off the vote, but Fadem and Vargo-Heffner insisted on a vote.
During the courtesy of the floor, there were several speakers. I will summarize a speaker from each side.
Wilson Borough resident Armando Moritz-Chapelliquen urged a No vote for the following reasons:
Vote no, because the county, the borough, and the school district need the $26 million over the next 20 years.Vote no because the developer has already been awarded over $1.3 million in state and county funds.Vote no because the remediation of the site is not a blessing. It is a basic responsibility of any property owner, one that has been neglected by Wilson Park LTD, the previous owner, for over 40 years.Vote no because Wilson Borough hired a consultant to evaluate the TIF, and that consultant's report has not yet been publicly disclosed.Vote no because the borough is on the record saying they'll go ahead with the tip, whether you approve it or not.Vote no, because it is an outrage to provide a tax benefit for luxury housing in a school district with the third fastest increase in the poverty rate in the Commonwealth of Pennsylvania.Vote no because there will be no affordable housing units on site.Vote no because the county should not be the business of building housing, or, if you prefer, vote no because the county should be in the business of building housing. But $2 million isn't enough to replace the units that would otherwise go into a redeveloped Dixie.Vote no, because tax revenue should go towards supporting the most vulnerable among our neighbors.Vote no because the developer, because a developer who can't make this project pencil out, maybe shouldn't have spent $11 million on a site that was assessed at less than $3 million.Vote no because the Democratic Socialists of America oppose it.Vote no, because the Northampton County GOP opposes it.Vote no, because any Democrat who cares about affordability would never support giving $26 million to a luxury housing development.Vote no, because economic development and community development are intrinsically connected.And anyone who tells you otherwise doesn't know what they're talking about.And finally, vote no because the development of the Dixie Cup site is an inevitability..
Countering Moritz-Chapelliquen, NorCo Exec Tara Zrinski argued that
First, the Dixie Cup project is a brown field development. That means it is more expensive because of the environmental remediation. And that damage happened decades ago. In this case, underground tanks, asbestos, radon, and contaminated soil were removed at the cost to the developer of $35 million. The TIF only offers a fraction of recovery for him.
Once again, I am compelled to correct yet another misstatement. According to the TIF ordinance itself, Exhibit I, the remediation cost is $8 million, not $35 million. Moreover, he would be getting $5.7 million back directly from the TIF. In addition, he has already been awarded $1 million in outright grants for remediation. Instead of listening to a developer, Zrinski should be reading the ordinance.
Zrinski also made an argument for being kind to the rich:
I don't want to gloss over the iniquities within our society. I think we all realize they are real, but that does not mean that any alliance at all to someone with wealth is a betrayal of the working-class families or the poor. This is a false narrative that pits the rich against the poor, driving a wedge between the two further. There is no diametric opposition that is mutually exclusive.There are a few people in our community who are using the Dixie Cup Project for self-serving purposes, and twisting comments made in this very room. When it comes to housing, we have to say yes to affordable housing. But not to the exclusion of other projects that would not ever come to fruition but through government assistance.
During the meeting, Council members Theresa Fadem and Dave Holland both indicated that they had received "unsettling" pressure to vote for the TIF. I am looking into these allegations, which I consider serious.
I'll have more about this meeting and the committee hearings next week.
95 comments:
Know you love the McClure gang and of course he will deny it, but why would Terry and David say it publicly. They have to know they put a political payback target on themselves. McClure is a bully. He and his team are known for this behavior. His hit piece mailers on Coswell and Brookks went out. He is the only candidate smearing his opponents. His followers are doing the same on social media.
Zirinski is doing herself no favors by being his puppet and reading their scripts as executive. She should have shed his gang at the start of her term. She is now known as Zirinski(aka)McClure.
Got help the NC taxpayers with Zrinski running the County. Just when you think things can't get any worse.
This project provided a rare opportunity for members of the Northampton County GOP to find themselves in agreement with local Democratic Socialists in concluding that the proposed TIF was a bad deal for Northampton County tax payers. We appreciate their cooperstion and engagement on this issue.
I predict the project will continue, although without the benefit of county tax dollars.
I sincerely hope it is independently successful.
Good vote by Council! However, it's embarrasing and pathetic that the former County Controller doesn't know the difference between TIF and LERTA.
I believe she knows the difference and just misspoke. I do not know where she got that $35 million figure from.
David Holland was far less specific, and no, we do not know exactly what happened yet. I will be writing about it once I have gathered the information I need.
I would not condemn Zrinski simply bc you disagree on one issue. I will have more about the meeting next week, and I am positively encouraged by some of the other things happening under her watch.
Matt, One of the few areas where you and I would agree is opposition to government handouts for private business. As you said during the public hearing, a good business plan will succeed without it, and a bad one will fail no matter how much money is thrown at it.
I do support LERTAs for residential homeowners who desire to make improvements to their homes. But I do not generally like LERTAs for private business.
If a TIF or LERTA is needed for massive amounts of new public infrastructure or for community development like the redevelopment of BS southside, that would be a rare exception to my general thinking.
I've seen too many dog-and-pony shows.
From the original post: “…as a result of an error made last night by NorCo Exec Tara Zrinski…”; “She had stated, erroneously…”; “Once again, I am compelled to correct yet another misstatement.”
An ”error”? A “misstatement”?
Zrinski has served as a council member, controller, and now county executive. If Zrinski had actually been competent in any of those roles, she - more than anyone else in county government - would know exactly what a TIF is and how it functions. The fact that she doesn’t shows either willful deception (lying) or an appalling lack of knowledge coupled with gross incompetence.
This is the SECOND time that this legislation has been before NorCo Council, so there should be no unanswered questions at this point for those involved.
The fact that you continue to try to cover for Zrinski with terms like “error” or “misstatement” makes you look like a political hack or a simple buffoon.
By not calling her out as the unqualified idiot that she is, you’re making yourself look incredibly foolish.
Allegations made by the two commissioners should be investigated as well by proper authorities in the state as sound like felonies were made. I am hopeful for this county council as 6 commissioners used common sense and voted this TIF down. The two commissioners in Kraft and Keegan looked like kids throwing a tantrum and were big mad. Kraft saying stop clapping sums him up and had no clue about the first amendment.
Good for Armando. Level headed guy.
A misstatement? TZ, like any politician will twist anything anyway to get what they want. Truth is, she meant to misstate, which amounts to a lie, thus showing her true colors.
Guess some people won't get their cut.
She “misspoke” not once but twice. She doesn’t know WTF she’s talking about. Misspoke is code for totally unprepared.
Exactly right! Bernie can be stubborn. He likes her and wants to stick up for her, but this is inexcusable. She’s clueless.
Agree totally with May 8th:
TZ is not new to any of these situations, in fact, she bragged about being far more aware of the county fiscal concerns when she was the short term controller. I agree that anyone can “mis-quote a number” , but her bullhorn bravado is now done, she is demonstrating that she is more concerned with pleasing unions, attempting to do club photo ops, and Gracedale visitation propaganda, than “producing” real answers to solve pending, time restricted Gracedale problems, fiscal budget voids and deficits, with no real answers to the public . Quite a show with no substance.
Wilson's racism is on display with blinking lights. This isn't affordable housing. It's fancy digs for rich elites from NJ. How appropriate for Wilson, a borough named for one of the premier racists in US history. Woodrow Wilson despised reconstruction, resegregated the federal government, and represented white elites in NJ as president of Princeton and NJ governor. Princeton took his name off buildings several years ago out of disgust and embarrassment. Wilson is keeping alive the racist, elitist's tradition.
I'm certain she had absolutely no clue until corrected last night. As my grandmother used to say about Zrinski types, "she's all heart and a yard thick."
I totally agree with 5:42 AM. Tara was the County Controller ….I find it hard to believe that her explanation of the TIF was just a misspeak !!! That’s a HUGE difference ! And then to compound it with giving Council the wrong information about the remediation costs??!! Come on Bernie…she is either incompetent or outright lying !
One thing Zrinski is right about is this vilification of successful people. Blue states have lost 2 trillion in wealth, taxes, and jobs over the last decade to red states. That’s a fact. The sane people in the democrat party, the few that are left, are waking up to this.
Hate to tell everyone but Bartee will get this completed and there will not be any affordable housing there. Rich elites will move there and that's that. Next topic!
6:28 am, there's nothing wrong or inappropriate about lobbying Council members before a vote in a democratic government. It's a right we all have and I see nothing wrong with Council members engaging in private persuasion, either. But there's a difference between persuasion and coercion. There's a difference between making a case to an elected official and intimidation. Regardless of the intent, it is obvious that Fadem feels that an attempt to intimidate her was made. I will have a story once I gather enough information.
While I seriously doubt that Wilson is any more or less racist than any small borough, I do agree that its namesake is a disgrace. I would also point out that the very reason Wilson Area School District was formed was bc of fear of the black students in Easton. Those days are long gone, and the current superintendent of Wilson School District is black.
Armando is right. So glad we have smart people speaking up.
7:35, It's not a fact in the Lehigh Valley or NorCo. We have gained people from NY and NJ, and they are the main reason why rents and home prices have increased. What Zrinski was supporting would just exacerbate this spiral and make housing less affordable even if Bartee paid a $2 million legal bribe. The argument that adding luxury apartments would open up housing for others is nonsense because it assumes a stagnant population.
Is this dead now, or can they go to other gvt bodies and get this?
Bernie, did you see Fadem announcing to the council that Lamont tried to intimidate her through her employer????
Kraft, Koo Koo Keegan & Warren, better known as the 3 stooges, would vote for this, since they only care about themselves & their cronies.. As far as Zrinski, her ignorance of basic Economics, is breathtaking, but doesn't surprise me, since her entire political career has been propped up by the establishment.
Someone should investigate Kelly Keegan. Not only her bullying people behind the scenes for this vote but also what she would gain financially had the vote passed. Many people are aware of the alleged back-door deal with her and McClure. Dig dig dig - find the answers then remove her from council! She is the rotten apple that tarnishes this county and her incompetence and political indiscretions need to come to light once and for all.
The key part of Fadem’s claim that makes it newsworthy is that Lamont went to her employer, where she is reportedly employed as a “real estate compliance professional”. Trying to get her to vote for this TIF through that avenue is downright criminal and textbook corruption on the part of McClure.
No but you literally corrected 2 errors she made in your original post and that is a problem. She should be certain of her facts especially in a high profile situation like this.
She probably should get her facts straight before speaking on such a hot button topic.
Thanks Bernie for your continued coverage on this issue. Your attention on this and the bipartisan consensus that formed in your comments section encouraged me to hold a small press event ahead of last night's vote with members of the Northampton County GOP and Lehigh Valley DSA. Both groups, and individuals from those respective political ideologies, deserve credit for making this vote happen as decisively as it did.
Per the developer and the Borough's own words, the redevelopment of this site will move forward whether the County granted the TIF or not. If that turns out to be untrue, someone else should take over the site and the subsequent redevelopment. For the sake of my community, I wish the developer success in remediating and developing the property he purchased.
While I can understand public comments being made that are inaccurate or heated, our elected officials should be held to a higher standard, speaking the truth and governing transparently. My hope is that last night's decisive rejection of the TIF can also mark a decisive turn away from the namecalling, demeaning, and allegedly coercive way of running government. I would hope those tactics are abandoned because they are wrong, but what last night also revealed is that they simply won't work anymore.
What a nightmare! Those three commissioners probably went home and had temper tantrums! Congratulations to those who held their ground for the citizens of Northampton County.
@ 7:02 Correct. She did not have her facts and she really needs to be better prepared. Perhaps cupcakes would help.
This!!
Correct. She didn't come across as knowledgeable about this situation.
And media will twist to whatever suits their need. "Misspoke". OK sure we'll call it that.
I know you favor TZ, but man, nothing reiterates "UNQUALIFIED" more that reading her quotes.... and I hear those quotes in the Snoopy teachers voice... Geez, we are screwed with her leading the cupcake brigade......
You should investigate Keegan. If many are aware of a back door deal then please tell us! And all the people who were bullied by her for a vote should stand up and let it be known.
Let’s see what she has done?!
Another NY liberal
should be about 3 years before the first reassessment happens so as warren said, where is the 2 million for affordable housing now? the DSA really won here, they screwed everyone
Mayor Don mentioned Easton more than he did the TIF or wilson last night, guy seems obsessed. Maybe if he focused more on his own Boro than Easton, Wilson would be in a better potition today than the one he and his goons on council put them in.
She "misspoke" because that's what ChatGPT-reliant, low intelligence, empty skulls do. We knew we electing a dummy. Don't act surprised.
Unfortunately those refugees from NY and NJ are coming here and bringing their voting habits with them. They’re not making the connection between what they’ve fled from and the policies of Leftists they elected that created their problems.
Thus more of the criminally stupid or actually corrupt get put into office here.
The question is will those voting for the Leftists wake up and see the socialists and progressives for what they are before it’s too late, or will they simply consume all that they can here and move on like locusts to the next area to ruin?
One can easily follow the money trail of all the lawyers backing McClure's campaign. Those also masking themselves under "business consulting" firms. Follow the money. What kick backs have they received over the years via their businesses? How has Kelly voted in county, township levels and how has her husband voted with the school board for companies being contracted and used. What lawyers run this county? What solicitors and superintendents have backed Kelly and her visceral actions allowing her to work with children? Who get to keep their cushy jobs because it. Who is hoping McClure make congress with the most to lose if he doesn't? Follow the votes, follow the money, and you will find the answers. Developers, lawyers, property investors. They are the most corrupt individuals this county has ever seen. Research Brian Bartee and his non-experience in this scope of project. He was a personal shopper turned development mogul? Give me a break. He's flipped some houses in Easton kicking out people who can't afford to live there. Then said I want Dixie? He doesn't care about affordable housing he cares about being paid. As does McClure , Keegan's, and all their puppet regime. They're scared their funding will be pulled, watch the real estate lawyers that jump this case now. Follow the money.
It was stated as clear as day, McClure applied pressure to her employer. He’s a lowlife scumbag. And he wants to represent us in Congress. He would be bought in a second. Talk about Bullies. POS.
Fruit Loops is in way over her head. Just listen to her at every meeting. All she does it try to be funny to cover up that’s she’s really an idiot.
Watching her babble about the tiff was hilarious. Saying that it’s not going to cost the taxpayers anything. The development brings more traffic, need for Police, fire, students, etc and the TIF diverts revenue that could pay for those services, so taxes go up. Then when their was that long pregnant pause and she said I’m done with my notes. Basically, she was done reading the bullet points that were given to her because she’s clueless.That’s McClure’s puppet, Koo Keegan.
The fact that the developer said the project was
Moving forward with or without the TIF was enough to not even have a vote. He’s committed.
Oh they certainly did. Kraft telling the people to stop clapping. Wtf. Another Bully like McClure. I’m glad Lori called him out for his stupid comment too. Turns out the asses are the Three Stooges. Kraft, Keegan and Warren. Don’t vote for Warren for State Rep. clearly he doesn’t understand finances. He’s just a puppet.
Shocker the Keegan voted yes LMAO just kidding. It is pretty typical of her ways. Just watching her body language last night shows she has not learn from the past or “become a better person” as she claimed. She is the same hateful person she has always been. She is perfectly happy imposing taxes on residents for her unnecessary pet projects that do nothing but hurt tax payers yet seems it it is ok to pay developers. Keegan does not understand the “big picture”. She needs to go along with Warren and Kraft.
I wouldn't believe anything Fadem says. Especially somebody who's going to insinuate something in a public meeting instead of just calling that person back and telling him to go screw off. I'd have more respect for somebody who did that than being a spiteful nasty ass in a public meeting. Grow up and stick up for yourself
What does reassessment have to do with anything? It’s been forever since the last one, to the point that nobody’s property is properly valued now.
There should be a reassessment now, and there should be a schedule set up to do them periodically and automatically thereafter (like every 10 years).
It’s ridiculous that anyone has to pay more or less tax than what is their fair share just because the cowards in county government don’t want to do their jobs.
Guarantee he never gets this done. He will pocket the money and run. The. It will sit dormant for the next 10 years while it winds its way through bankruptcy. Reibman will end up with Zero, as he should
Armando you’re a dunce. Take your W and leave. Your 15 minutes are over
There was no mention of a racist concern in the 1912 notes from the population growth which created the scenario of Wilson breaking from Palmer/Forks.
The population grew and that spike, or agitation, was indicated as the reason for the break.
Glad the DSA and GOP can come together on this one. Can't wait for the DSA to start calling the GOP nazis again because I guess they were not being nazis in this situation...
Oh Bernie, I do agree that voting this down was the right thing to do. The reason NY and NJ people are coming here is because they are fleeing the very things that they voted for. High taxes and cost of living as a result of one party rule. Now they are voting for the same shit here. Look at what these DSA darlings have done in NY. In NY, the top 1% pay 45% of the taxes. 200 people who are super wealthy pay 8% of the taxes in the state, they give millions more to NY charities. So what’s DSA darling Mandami and AOC do? They vilify them and ridicule them! Guess what? If you’re reliant on a handful of ppl to make your state run it’s probably not a good idea to piss them off! There are 49 other states that will gladly take them.
There school district is on of the most diverse in the Lehigh Valley.
I demand an investigation into this alleged extortion and coercion. The three council members who voted in favor and Commissar Tzara should also be investigated.
I would appreciate it if you could disclose the “deal” that McClure supposedly has made with Keegan. Can’t be a job. As a school nurse she earns far more than anything she would get as a confessional aide. Be specific please.
1:20 is that you Kelly lol.
Bernie is right, it’s fine to lobby. They don’t call them whips in Congress for nothing. However, there is a line you can’t cross, going to someone’s employer or making g threats of that nature is over the line!!!!!
Absolutely!!!!
I’ll wait to see what Bernie comes up with, but if this is even remotely true shame on him. He made promises he couldn’t keep, but why??? Campaign donations maybe??????
After it cost 35 million dollars to actually improve the property for occupancy you don't think the developer deserves a tax incentive??
Must say thanks to Lori for saving the night! She ensured the vote got made as it should, she knows how to run a meeting much better than Kraft. The queen of council put Kraft in his place! Good job Lori! Keegan, Warren and Kraft the more nonsense goes on the voters will be sure not to vote for you and Your other office runs and that includes the ones you support aka McClure!
Whoops, I meant their school district, Wilson, is one of the most diverse in the Lehigh Valley. To suggest ppl in Wilson are racist is nonsense.
It’s amazing!!! She was County Controller she has no grasp of even basic economic principles lol.
Once a liar always a liar and should never be trusted.
Maybe if Easton’s mayor had not decided to demolish and liquidate Easton’s affordable housing obligations on the south side and spread that burden beyond its jurisdiction, Wilson would be better off.
I believe this developer has received or qualified for MULTIPLE incentives.
I don't think Northampton County or its tax payers here can afford to provide an additional incentive to a project that is clearly moving forward in any event. To do so would be both fiscally irresponsible and morally reprehensible...
...once taxes are increased for the rest of us.
I wish this developer and Wilson Borough the best success.
I just don't think any additional assistance is necessary to reach the outcome I firmly believe a large majority desires.
Ask to see the receipts.
Shocking they just lost 2 million dollars upfront. It will take years to get that money for the tax payers of Northampton. Lori should know better but I’m not surprised that she doesn’t.
A reassessment is as good as them raising taxes. Don't reassess. If you believe your individual property taxes are too high, file an appeal. Otherwise, let sleeping dogs lie.
No. That's not how it works. The developer is not some kind of non-profit. They are going to making millions. And charging people for market rate rent regardless of whether there is a TIF or not. Those hundreds of tenants will need public services, and we need to fund them.
Maybe Fadem should have her Attorney look into charges against McClure if he went to her Boss about putting presure on her to vote for the TIF. Also, Holland needs to speak up as well. This can't be left to go away.
County didn't lose 2 million dollars. With the county tax increase and property reassessment, county will get more than the 2 million dollars for affordable housing.
you
What charges, lobbying for something is not a chargeable offense. Fadem is brand new and egotistical zoning enforcement officer trying to make a name for herself. Nothing more, nothing less, can't wait until us hellertown people run her out of town.
Exactly ! Is anyone asking how Nat Hyman can build the same buildings with absolutely no taxpayer or government money, yet this guy has applied for (and mostly gotten) every government handout under the sun ?!
You’re not understanding how this works.
Fadem did the right thing. Lamont is a bully and needs to be called out. Now an investigation needs to be done. Time to payback this idiot.
Fadem is hilarious. She literally used her position on Hellertown Borough Council to get a job with Hellertown Borough as a zoning enforcement officer.
4:02, she is enforcing a code as it is written, a.k.a. “Doing her job”. Don’t you expect that from government employees?
Hello Lamont.
Let's make the point that she got her job by using politics and from the political power she had. She was on Hellertown's board and then she became the zoning officer. We aren't blind!
If the developer openly stated with or without help from County he will go on, then let him.
Let’s not over complicate this, there are more concerning problems to address.
Council saved themselves utter humiliation by not voting for this TIF . This guy is a scammer and will keep the money and Had they voted for it they would have egg on their face.
Now we have to get the Boro and School District to wake up and cancel their TIF!
Her day is comming---Highly doubt she will be re-elected.
Absolutely !!!
8:54 am... Is that you Amy and Anne... Amy... how does Lehigh feel about your comments about someone who might be a Congressman in a couple months... I wonder.
Eastons Mayor and its city council are the biggest gentrifiers in the history of the Lehighvalley.
Mayor Panto exported his poor a decade ago and Wilson Borough absorbed them.
Easton is now a city that no one from Easton can afford to live in; a city that now charges its parking meters in 5 minute intervals.
But, you can buy a $25 martini and $12 pint of beer to compliment your $60 entree, on top of your $2500 per month rent for a 350 square foot studio apartment.
So enjoy Eastonians. And Wilsonites.
Your problems have both names and political party affiliations.
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