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.
It also wants $28.5 million in federal tax equity credits.
Moreover, this will actually make it more difficult to find affordable housing, especially when other landlords start increasing their rents.
At a time when it's all but certain that a tax hike is looming, this handout sends the wrong message.
35 comments:
It's difficult to believe that the government hacks who support this scandalous handout aren't receiving bribes. It's the only logical explanation. I'd rather have representatives who deal drugs during meetings, than hacks who accept considerations for a corporate welfare scheme.
The DSA are a bunch of lunatics! Having said that this is one issue I agree with them on.
This has been a bad idea from the start. That's why the dems will approve it.
This Dixie Cup project is becoming more curious by the day. It seems the developer wants to have anyone else to pay for the rehab besides himself. My question is, how much of his own skin is in the game?
I also believe this is the same unfortunate situation taxpayers are facing all across America. That is, elected officials handing out trillions of our dollars without much accountability should these schemes all come crashing down.
From what I read, the State of California taxpayers have been raped numerous times in a similar way, with roads to nowhere, solar panel fields, etc. Not much difference right here with Dixie Cup and the infamous Allentown Neighborhood Improvement Zone.
Why are taxpayers always at the bottom of the food chain?
If they give this Dixie tax break to this scammer every member who votes for it will never win an election again !
Who holds the mortgage for this property? Is it recorded? If Skyline is incapable of the conversion, who financially benefits? Will it be the mortgage holder who can then resell a fully-gutted property to yet another developer?
I hesitate to posit conspiracies. For good or for not so good (skewing toward good), Nat Hyman builds livable apartments. We have enough granite and stainless luxury units. We need places for families. I hope a builder/developer like Nat has financing ready to roll.
If nit -wit Reibman would have sold the property to Nat Hyman he would of been paid and project probably would be completed by now without any tax credits
This post makes no sense. The DSA opposes the handout? Your wording makes it sound like they oppose the flier they are handing out and you concur by saying the "this handout sends the wrong message".
RCAP grants should get a lot more scrutiny. There is no housing at the Martin Tower site, for example, and not much else besides the two Jefferson Health buildings (LVHN is just a brand now).
RCAP contributed $9 million for the medical offices.
RCAP:
https://www.pa.gov/agencies/budget/programs-and-services/for-people-doing-business-with-the-commonwealth/for-grantees-and-subrecipients/racp
Jeff Ward, Bethlehem
Northampton County and every taxing authority involved with this project should VOTE NO for a tax break. We are looking at one of the biggest tax hikes in County History. This project is not good for Wilson Boro and it certainly isn't good for the taxpayers.
John, This property is encumbered by two mortgages, One is with Unity Bank, but is bundled with the LA Fitness tract. The other is held by the prior owner, who will not be paid until or unless the TIF goes thru or other financing for the project is obtained. The prior owner's mortgage is subordinated to Unity Bank.
You can.t trust anybody anymore..
So Bernie, please walk me/us through the results of the possible failure of the TIF and Skyline’s possible to find future funding. What would happen next?
I am not aware of any timelines embedded into the Skyline proposal. How long might Skyline have to perform before a negative consequence is triggered? Is this a big deal for Unity’s financial condition? It feels like the press has not covered this well (or my memory is failing). BTW, social media is enjoying the Dixie Cup’s relocation and meme-ing it.
When DSA and numerous prominent Republicans are on the same page, you know something is wrong with this proposal.
First, it's a bad deal for the county and gambles future tax revenue on the theoretical success of a project by a developer with no track record to speak of. It's fiscally irresponsible, especially with the looming threat of county tax increases that will be necessary to dig us out of the current financial hole we are.
Second, and what I suspect is the primary concern of DSA, this project will do little or nothing to combat the affordable housing dilemma. The buyout per unit of low income housing is laughable and virtually ensures that no low income housing will be created.
As I said at the council meeting: Let developers develop, and let government govern.
Maybe this project will be a raging success, and I sincerely hope it is...but that success must be driven by a private developer, not a county government that has numerous internal problems to address before it gets into the real estate development business.
Anonymity is useful and even allows for some levity at times, but if a poster is going to accuse somebody of a crime, how about using your name?
Jeff Ward, Bethlehem
Hi Bernie, Thank you for sharing our flyer, the journalism you have done on this issue, and I appreciate you keeping us honest on the numbers.
One point of clarification. Generally, our position is the county shouldn't use our tax dollars to incentivize private development, especially development that is not directly addressing resident's needs by creating affordable housing, safe neighborhoods, good jobs, etc. I agree that luxury apartments will only make rents go up, gentrify the surrounding community, and make the are less livable for regular working people. All things LVDSA opposes.
In that vein, I don't want to "squeeze more money from an unproven and nonlocal developer", because the development can happen without the public money and anything the developer offers to pay back is a pittance in comparison to what they stand to get. I think the developer should pay the taxes everyone else is required to pay. There might be some differences, but I think it is very similar to the position you have shared and that of Nat Hyman. We might be strange bedfellows, but I think we are of similar mindsets here.
And you might be surprised at how many local issues we agree on.
...until you hear about another issue they're championing.
People are scared of the "S" in DSA but almost every single plank of their platform is immensely popular.
Willie Reynolds buddy Zach was probably doing both of those things.
Property taxes is legalized robbery It must be stopped now. If necessary, total rebellion by the good people of this state is necessary.
Leo, I appreciate your comment. What I should add is that the DSA members who spoke in opposition to the TIF at the public hearing were opposed only bc they wanted more $ from the developer. Glad to hear that you are opposed.
Under state law, a TIF can only be granted if the development would be impossible "but for" the tax break. This is simply untrue. Dixie had a buyer who was willing to develop without a handout. It also had a buyer who was seeking a less egregious LERTA.
I am generally opposed to tax breaks. If a business plan is good, it should need no public incentive to succeed. If bad, no amount of public money will save it.
I do not oppose tax breaks for community development. If a homeowner wants to fix his roof or make other improvements to his real estate, I have no problem with phasing in the tax hike over a number of years, which is what happens with a LERTA.
And yes, I do agree with your group on many issues, including Medicare for all, minimum wage. But when it comes to foreign policy, we are on different planets.
I’m one of the bad people of this state. Should I rebel too?
So I went to the DSA website. The top “planks” prominently displayed are:
Freeing drug trafficker Nicholas Maduro.
The Green New Deal.
Anti Capitalism.
Supporting biological males playing against females. Supporting school districts that refuse to tell parents they go by a different gender at school.
Standing with the Iranian people. The website conveniently leaves out that anti semitism is welcome given that Rashida Talib and Ilhan Omar are prominent DSA leaders, and openly hostile to Jewish people. Openly hostile to Israel.
That’s just a quick look around. They use cute catch phrases like “housing justice” but provide no serious policies that would achieve that. They did remove the defund the police stuff, but let’s face it, top DSA Mamdani already cancelled all the new Academy classes in NYC. I’m sure they’re quite ok with an open border as well. Not so sure those policies are popular. What’s popular is anyone that is anti Trump so unfortunately lots of these DSA loons are going to get elected.
Free stuff is popular. Catch phrases are popular. The problem is once you have power you have to govern.
T-Rump is a fascist and the contemporary incarnation of Hitler as BOH has consistently pointed out. In the current national economic environment any number of unreasonably and counterproductive development deals are bound to happen.
Thank you for your vigilance Bernie.
You remain the voice of reason.
And they kicked Tabia to the curb so they have two good things going
Sure, they will. In Norco, all they need is a D after their name.
DO YOU NOT PAY ATTENTION AT ALL?
Even the D’s who hang out and vote with Republicans get elected. Crazy times.
Jeff the question is why are you so gung ho for this TIF to the point of giving tours of the building ! Everyone knows you’re stupid, arrogant, abusive and a Lamont lackey but there must be something else at play here. Even you aren’t that stupid to give $26m to a guy who has never built anything ……well, on second thought
My apologies to Jeff Ward for my “stupid & arrogant “ comment. I thought it was Jeff Warren who wrote it …..who is very stupid and arrogant !
3:17 pm no just to California.
I have no idea of what you’re talking about, but that’s fine. You don’t either.
When did I give this mythical tour?
You’re mistaken me for somebody else or you’re just babbling.
Thanks. I saw this after responding.
Worse things have happened to me, so all is well.
Something so nonsensical - even involving slimy politicians using others' money - can only be explained by bribery. There's no other logical reason for this gifting to a shady developer. Remember Ed Pawlowski? We do.
Stay on point with your rant.
You do realize this nonsense has been going on for years under many others right?
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