NorCo Closes on Wolf Building

Developer Mark Mulligan closed on his purchase of Easton's Wolf Building today. His agreement required him to pay $1.925 million for the property.  County Exec John Brown promised Council he'd a have a more detailed report tomorrow at their Council meeting.

Rumor Mill: Wolf Building Granted KOZ

At the end of a very lengthy budget hearing yesterday, Northampton County Council members began hounding executive John Stoffa to update them on the progress of the Wolf Building sale. Bob Werner, the sole Council member to vote against it, said he's been hearing and reading a number of things, and asked Stoffa if the County has agreed to accept less than developer Mark "I'm an opera singer" Mulligan had agreed to pay for the property in June. That agreement was contingent upon a KOZ classification, which basically would exempt the property and all its tenants from all but federal income taxes.

Stoffa started to answer, but then changed his mind. "I'll have a report tomorrow," he told Werner.

Although no one is willing to go on record, I've heard from several persons that there's no reason to give Mulligan any breaks at all. That's because, against all odds, state officials have designated the Wolf building as a KOZ property. I'm guessing this is what Stoffa intends to report.

If this is so, Mulligan has no basis for holding Northampton County hostage to a reduced sales price.

What this also means is that the mad rush to reduce the assessment on this property, which was being pushed by Mulligan and Easton officials, was totally unnecessary.

The Revenue Appeals Board broke the law for nothing. The members of a quasi judicial board stained their credibility and integrity by not just disregarding the law, but by permitting one person to vote by proxy in a matter in which he had heard none of the testimony.

NorCo Revenue Appeals Board Bends Rules For Wolf Developer

Mark Mulligan

During a bizarre assessment hearing on Monday, the NorCo Revenue Appeals Board ignored a 2010 ordinance governing the timing of appeals. That's not all. One of five members of what is supposed to be a quasi judicial body, Richard McAteer, actually voted by proxy. They were all in a hurry to give Easton's latest savior, gazillionaire Mark Mulligan, yet another tax break. They voted, 3-2, to lower the assessment at the county-owned Wolf Building, a property that Mulligan won't even own until next March. Let me tell you the story.

Northampton County is hell bent on relocating and centralizing its human services department to a building under construction in Bethlehem Township. But to make this work, it had to unload the two buildings where human services workers are located. One of these places is the Bechtel Building, which was sold last Wednesday to prominent Bethlehem Attorney Justin McCarthy. But the other property, Easton's Wolf Building, is more problematic. Developer Mark Mulligan agreed to purchase the property in June for $1.925 million, but his agreement was contingent on a KOZ tax exemption that could be disapproved by the state. Mulligan told Council he'd probably still go ahead if the designation was disapproved, but reducing the assessment would sweeten the pot for Mulligan.

Never mind that the state could very well decide to grant the KOZ.  Let's give this guy another tax break!

There's no need to sweeten his pot. Easton has fallen over itself to give Mulligan practically anything he wants. The Easton Silk Mill project, for example, has benefited from at least $7 million in RCAP grants, but the City is just giving it to this guy. That's a project that could easily be split up among three or four developers, but Mulligan is their fair-haired boy. He once sang opera, so he must have class.

Recently, a trendy "Cheeburger Cheeburger" opened up at one of Mulligan's properties. Easton waived all permit fees. Do you think they did that for Sharbel Koorie's "Daddy's Place," which opened up just a stone's throw away?

Some people get special treatment. Others get the bill.

Not content with all the money and projects they've showered on Mulligan, which includes regular payments from the Easton Redevelopment Authority as a project manager, Easton officials wanted the assessment reduced at the Wolf Building.

To be more specific, Easton Redevelopment Authority's Richard McAteer, wanted that assessment reduced. So he asked the County to start the ball rolling..

Here's the problem. If you know you could never get a nickel over $150,000 for your property, but the tax man says it's worth $300,000, you can always file an assessment appeal. But if you want it to take effect for the next tax calendar year, you must file by August 1. This way, the Assessment office has time to process and hold a hearing. This isn't some rule or guideline. It's an ordinance. It was adopted by Northampton County Council in 2010, pursuant to the state Tax Code. It's the law.

Northampton County, at the urging of Easton officials, appealed the $1.6 million assessment of the Wolf Building, which  translates to a building worth $4,224,000. Obviously, it is overvalued. But instead of filing its appeal on or before August 1, it filed on November 19.

Under state law and a Northampton County Ordinance, the Revenue Appeals Board lacked the authority to reduce the assessment for calendar year 2014. But they did it anyway.

During the hearing, the County produced a 2012 appraisal that valued the property at $1.8 million (not the $760,000 incorrectly reported yesterday). A County appraiser decided to appraise the property herself, using both comparable sales and income. She valued the property at $2.55 million, far more than the the $1.925 million that Mulligan agreed to pay.

The Revenue Appeals Board decided to ignore the County's own appraiser and reduce the value of the property to $1.925 million, the amount that Mulligan agreed to pay. But there was a problem. Appeals Board members Bob Miklas and George Andralis voted to reduce the assessment, but Board members Marci Carter and Leonard Zavacky said No.

This dilemma was solved when Miklas announced that he had a proxy from the absent fifth board member. That absentee is none other than Richard McAteer, the Easton Redevelopment Authority official who improperly suggested that the assessment be reduced in the first place.

So the bluebloods took care of each other on Monday.

And we will make up the difference.

If the state grants a KOZ and exempts the property from all property taxes for ten years, this will mean that the Revenue Appeals Board broke the law for nothing.

According to one assessment official, there has never been an occasion before Monday in which a late appeal was entertained for the next calendar year. And she's never heard of a Board member voting by proxy.

The Board is clearly playing favorites, especially among certain Easton-connected property owners. I've been told for example that Gretchen Longenbach, an Easton official tied at the hip to McAteer, has had the assessments reduced on two of her Bethlehem-owned properties. I am not sure about that, but will be checking.

After playing favorites with Easton Savior Mark Mulligan, the Revenue Appeals Board screwed Abe Atiyeh. He had appealed the assessment on a school building that he actually owns, located on Northampton Street. He had an appraisal, but failed to submit it ten days before the hearing. He was shot down for failing to follow their rules. This was from the same Board that thought nothing of breaking both County and state law for the opera singer.

Abe's blood is not blue enough.

What's disturbing about this is the involvement of Richard McAteer, who was Shadow Mayor under Phil Mitman. After screwing that up, he's latched onto Executive Elect John Brown. It is McAteer who got Brown on the RenewLV Board and who introduced him to all the Lehigh Valley Partnership aristocrats. It is McAteer who thinks he can vote by proxy on a quasi judicial board, and who urged the County to violate the law. It is McAteer who jumped the gun on getting a lower assessment without waiting for a KOZ determination that could be granted.

Northampton County Seeks Lower Assessment at Wolf Building

Northampton County's Governor Wolf Building, located in Easton, is currently under agreement of sale to developer Mark Mulligan. When the County moves its 173 human services workers into a new, centralized facility next March, Mulligan is expected to take over, and pay $1.925 million for the building. His agreement is contingent upon a KOZ classification, which basically exempts the property tenants from virtually all property and even state income taxes for ten years. It now appears unlikely that the state will grant this designation. But instead of pulling the plug, which has worried Council member Bob Werner, Mulligan appears to be moving forward. Mulligan will reportedly use the property’s LERTA designation for a tax abatement that is based on the value of improvements above and beyond the property’s initial assessed value.

But the property is assessed at $1.6 million, meaning it has a fair market value of $4,224,000. That's a lot higher than the $700,759, at which the property appraised.

So yesterday, Northampton County presented an assessment appeal of its own property to the Revenue Appeals Board, seeking a lower assessment for Mulligan.

Although I understand the appeal was granted, I do not know the new assessment. I will found that out and report it to you tomorrow.

There is also some question about the timing of this appeal. Because it was seeking a KOZ classification, the County missed the August 1 deadline for filing assessment appeals that would be effective in 2014. So I don't know whether the new assessment will be effective in 2014 or 2015. I will have to find that out tomorrow, too.

But it appears that KOZ or no KOZ, Mulligan is moving forward.

Who's Buying the Governor Wolf Building?

When Northampton County Exec John Stoffa proposed a centralized human services building in Bethlehem Township, replacing two buildings in downtown Easton and Bethlehem, one of the biggest criticisms was that the County was abandoning Easton. Although most feel that the County would find a good use for its Bethlehem site, concerns about a vacant Easton eyesore were raised. But Easton's biggest cheerleader, Mayor Sal Panto, publicly supported Stoffa's proposal. He'd do that only if he had a better use for the property.

Today, at 10:30 AM, we'll learn who bought the Governor Wolf Building. Located at 45 N 2d St in Easton, this 52,171 sq ft schoolhouse, built in 1893, was purchased by the County in 1986 for $912,000. It is home to 173 human services workers. According to County officials, it needs $3.3 million in capital repairs and improvements over the next 5-10 years. CYF workers have complained about conducting supervised visitation amid asbestos, lead paint and bat guano.

Area Agency on Aging Director John Mahler has told Council that the ceiling was caving in at three different areas in his offices. Two of the sites have been recently repaired. He also detailed mold and lead paint problems.

VA Director Freddie Ramirez is concerned about access by 25-35 veterans, some of them disabled, who visit every week, and have to chug up a steep hill. The County has 23,690 vets.

Controller Steve Barron, however, injected himself into this issue and told Council to forget it. He had no regard for abused or neglected children. No regard for our disabled veterans. He was instead carrying water for SEIU and Jim Gregory, who has since been disgraced with woman beating charges and a PFA.

Barron later said that his grandfather was a vet, so that made everything ok.

Council ignored Barron and Gregory, and voted for centralized human services, 8-1.