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.
