Linc Treadwell Replaces Stan Margle as Wilson Borough's Solicitor

Attorney B. Lincoln Treadwell is Wilson Borough's newest Solicitor. He was appointed by Borough Council during a special meeting on February 18. The vote was 8-0, with one member absent. 

Voting to appoint Treadwell were Council members Shaun Gable, Susan Allen, Kendra Cooper, John Burke, Grace Hurd, Jeffrey Bracken, Russell Lipari and Michael Figueroa. Council member Kimberlee Muzac was absent.

Treadwell previously served as Solicitor to Lower Saucon Tp for 23 years. He walked away in 2023, after that Council became fractious. 

Treadwell was one of two applicants. The other was Attorney Chris Spadoni, who served as Solicitor to Bethlehem City Council and, most recently, to Northampton County Council. 

Treadwell replaces Attorney Stan Margle, who was incarcerated early this month for criminal contempt after he refused to be drug-tested in connection with cocaine-related charges filed against him. Margle has since been paroled for treatment at an inpatient facility.  

In Wake of Margle's Drug Charges Wilson Borough Looking For New Solicitor

On Tuesday, I told you that local attorney Stanley Margle, who is facing drug charges, was jailed for refusing to provide a drug-testing sample to pretrial services. Although he's presumed innocent, he's still required to comply with bail conditions. He learned the hard way just what can happen when they are ignored. According to the docket sheet, which sometimes can be a day or two behind real time, he was still jailed as of last night. Lehigh Valley Live has reported that Margle has since provided a sample, so the court might be inclined to release him. ... Or not.

As I mentioned, Margle was still Wilson Borough's Solicitor as of their reorganization meeting in January. That may be changing soon. Wilson Borough is now looking for a new Solicitor. Proposals are due February 20.

A post about a local attorney going through hard times is going to attract a lot of interest, especially when he has public clients. Years ago, I wrote about another local lawyer who was stealing money from clients and his own firm to pay for his drinking and gambling addictions. He never forgave me and once accosted me at a high school basketball game. 

I understand the anger. As most of you know, I am an alcoholic. Not a former alcoholic. There's no such thing. If you can't handle booze, you can never handle it and should always refer to yourself as a current alkie. I am very fortunate that I am one of the last of the true alcoholics, meaning that I was only using booze and no other drug. I am also grateful that one stint in rehab and one year of daily AA meetings have kept me sober. 

When confronted with the reality that an addiction is interfering with matters that mean something to you, most addicts and alcoholics will blame anything but their addition for their problem. In Stanley's case, it is a mysterious "rogue cop." Certainly not cocaine. 

Eventually, the lucky among us hit bottom. It finally dawns on us that we are addicts or alcoholics and it's something we can't outsmart. 

In my case, I hit bottom after the Disciplinary Board saw through my bullshit and recommended that I be suspended. I actually wandered off to the Delaware Gap National Recreation Area, where I was gonna' off myself. I don't know what happened because I told no one about my problems, but a good friend who practiced law with me somehow found me and talked me down. His nickname was Sunny. To this day, I don't know how he knew or how he was able to find me. 

My sincere hope is that Stanley has hit bottom and that he now realizes he's not smarter than his addiction. He still has a lot to offer this world and believe he can make an excellent contribution to this world if he meets his problem head on and fights it like the good lawyer he was a few years ago. 

There's Trouble in Wilson Boro's Dixieland

As many of you are aware, Northampton County Council voted recently to reject an ordinance that would have enabled a developer to finance the construction of his property with your money. In a narrow 5-4 vote, County Council denied a 20-year real estate tax break amounting to as much as $29 million to an out-of-town developer with no experience wnd who has already received handouts from the state. What's more, the developer wanted your money to provide housing for the wealthy - luxury apartments at the old Dixie Cup factory in Wilson Borough. But this is by no means over. Two of the Council members who voted No to this tax break - John Goffredo and John Brown - were defeated in November's election. A third No vote came from Council member Ron Heckman, who has opted to retire at the end of this year. The only Council members who voted against this tax break and who will remain on Council next year are Lori Vargo Heffner and Tom Giovanni. Next year's County Council might resurrect tis tax break even though it is highly likely that moeny is going to be tight.

The tax break in question is known as a TIF (tax increment financing). How does it work?

All properties, even the blighted Dixie Plant is assessed as having a certain value, and taxes are based on that assessment.

A developer who does not hold his hand out to the government for every penny he can grab, will see the assessment of the property increase as he develops and puts up apartments. The borough, school district and county will see increased tax revenue immediately, and that will continue for so long as apartments or other improvements are made.

A developer with a TIF is able to float a bond (tax-free, of course) based on the increased assessment anticipated. At the DIXIE, it's $29 million. When apartments are put up, the increased assessment is collected by all three taxing authorities, but it is not kept by them. They must fork the money over the county industrial development authority. This agency will administer the bond, no doubt for a tidy commission. This authority will use this money to pay down the debt on the bond, and for 20 years.

Basically, the government is financing and paying the debt service on a $29 million construction loan. I don't fault Skyline for taking advantage. I do fault the government for using your tax dollars.

One of the many things that troubles me about this tax break is that, once the $29 million bond is sold, Developer Bill Bartee (Skyline Investment) has put himself down for a $4 million "developer's fee." Consultant Claudia Robinson, who specializes in getting tax credits and public subsidies, is slated to pull down even more, $4.25 million. And Bartee's "exclusive" architect, CHASM, will collect a $6.75 million fee.  So, $15 million of the $29 million in increased assessment will be lining the pockets of a developer, a consultant who specializes in public cash grabs and an inflated architectural fee. The Borough, County and School District will just have to wait 20 years. 

Once the developer and his associates are paid, they have every incentive to walk away. 

Without question, Dixie is blighted. But that's mainly because the borough allowed it to get that way over a period of 40 years. During that time, only tepid efforts were made to enforce obvious code violations. A local magisterial district judge who would decide enforcement actions was allowed to store his race cars inside the building, 

At a time when people are struggling to pay rent and when many county employees are actually on food strops, a tax break for luxury apartments is the height of arrogance. It is a reward to borough that failed to enforce code and to an owner who failed to maintain the property. 

That former owner is WilsonPark, who is fronted by Joe Reibman on behalf of a number of estates. On June 24, 2024, WilsonPark conveyed the defunct and dilapidated Dixie Cup factory to Brain Bartee, front man for Skyline Investment Group Easton, for $11 million. But Reibman has received no money. He's instead holding an $11 million mortgage, and that becomes due only when the TIF Bond is floated or after 33 months, whichever comes later.  What's more, his mortgage has been subordinated to a $4 million mortgage used by Bartee to acquire the vacant LA Fitness building. On his webpage, Bartee boasts that he will convert the former LA Fitness into "130 hotel suites with 250 multifamily residences are planned that will feature 1920s-inspired art elegantly paired with modern amenities and exceptional service. Along with the introduction of approximately 163 permanent jobs, The Wilson will feature EV charging stations, a high staff-to-room ratio, and a suite of premium services. Guests will enjoy the personalized attention of a dedicated butler, doorman, concierge, chauffeur, and valet parking, all provided by a team of highly trained professionals committed to the highest standards of hospitality."

That should solve the affordability crisis. 

In the meantime, the real estate broker who arranged the deal between Bartee and Reibman has been stiffed. According to a complaint (see below) filed in Northampton County, the broker put several years into this project and is still owed $183,000. Reibman has ignored requests for payment. He'll be unable to ignore a complaint. 

Garibaldi Complaint For Broker Commission by BernieOHare

Stan Margle Suggests He Was Framed at Wilson Borough Meeting in Which Helps Violate Pa Constitution

Last week, I told you that prominent Easton area attorney Stan Margle, age 67, has been charged with possession of both controlled substances and drug paraphernalia.  These are misdemeanor charges and were lodged on Tuesday by Edward Fox, a detective in the Northampton County DA's office. At Monday  night's meeting of Wilson Borough Council, according to WFMZ-TV69, Margle publicly addressed the charges. 

According to law enforcement, Margle appeared in Juvenile Court earlier this month, and when he departed, he left his satchel behind. In an attempt to determine the owner, Sheriff Deputies opened the bag and discovered that it belonged to Margle. They also discovered what was later determined to be cocaine, along with the paraphernalia facilitating its use. There was also video surveillance showing Margle bringing a satchel into Juvenile Court and then leaving without it. He later returned for the bag, only to discover it had been turned over to county detectives. 

At Monday night's meeting, Margle said he had told a Council member he knew nothing about the matter at first. That assertion stretches credulity inasmuch as Margle had been told that the bag had been turned in for county detectives to inspect. He knew something was up.

Although he expressed embarrassment, he also hinted that he had been framed. 

"It doesn't matter whether the allegations are true at this point because the damage is done, and the person behind it has won," he reported said. This is a suggestion that the illicit drug was planted. It's hardly a remorseful comment or a sign that he seeks help. 

Wilson Borough Council, the very same crew who recently voted unanimously to give the Dixie Cup developer a massive tax break for apartments that no one in the Lehigh Valley can afford, of course decided to keep Margle as their legal advisor. 

And then they promptly violated the Pennsylvania Constitution by removing a Council member who has missed 15 meetings, thanks to bad advice provided by Margle. 

The Pa Constitution specifically provides that an elected official, from Borough Council members to State Senators, can only be removed (1) on conviction for misbehavior in office; (2) on conviction of an infamous crime; or (3) by the Governor, after impeachment by the House and conviction in the Senate. (Article VI, Section 7). 

Wilson Borough Council has no authority to remove a council member notwithstanding the Borough Code. 

NorCo GPA Takes No Action on Dixie Land Transfer

In May, Skyline Investment Group representatives were at the NorCo's General Purpose Authority (GPA) meeting. Wilson Borough actually owns a small triangular piece shown on the tax map you see above as 1C-1. It is 0.35 acres located along the eastern side of 25th Street and is actually the beginning of a bike path that extends from the Palmer Bike path and hooks up with the Tatamy Trail. According to Claudia Robinson, who is actually a tax credit maven employed by an outfit called AreaProbe, Skyline plans to move the giant Dixie Cup currently on top of the vacant factory and plant it next to the bike path, where people could ooh and ahh at its wonder. 

But there's a problem. Wilson Borough is unable to convey directly to Skyline unless it first conducts an auction at which anyone could bid to buy the tract. This could complicate Robinson in her quest to attract private equity with promises of an historic tax credit. 

To foreclose the possibility that someone other than Skyline gets this tract, the Borough could convey to the county GPA, which in turn would munificently turn it over to Skyline. That way the law against this kind of insider dealing would be followed even though the spirit of the law would clearly be ignored. 

In July, the GPA tabled this land transfer because Wilson Borough itself had yet to take action.  Though Wilson Borough has since authorized the transfer, the GPA took no action at all at their meeting yesterday. 

Tax Break Will Line Pockets of Dixie Developer, Consultant and Architect With a Cool $15 Million

Last week, I published Allentown developer Nat Hyman's warnings to Northampton County Council at their June 6 meeting concerning a $29 million tax break known as a TIF proposed for the long vacant Dixie Cup factory in Wilson Borough. "Put simply, folks, you are being scammed," he cautioned. His remarks drew 65 comments from my readers, many of whom agreed with him. But he was also subjected to several attacks, which began almost immediately after he left the building. Many of them come from people who have a major financial interest in this project, thanks to taxpayer largesse. Developer Bill Bartee has put himself down for a $4 million "developer's fee." Consultant Claudia Robinson, who specializes in getting tax credits and public subsidies, is slated to pull down even more, $4.25 million. And Bartee's "exclusive" architect, CHASM, will collect a $6.75 million fee.  So, $15 million of the $29 million in increased assessment will be lining the pockets of a developer, a consultant who specializes in public cash grabs and an inflated architectural fee. The Borough, County and School District will just have to wait 20 years. 

Where did I get this outlandish information? Did I just make it up? Unfortunately, no. It is part of the TIF application attached to the Ordinance introduced on May 6. (Page 5).

The Hyman criticism began with Stan Margle, Solicitor to Wilson Boro. His borough has not formally acted on the TIF request. "I would preliminarily support it," he told Council, seeming to forget that his role is to provide legal advice, not opine on public policy. "This is a real developer," he added, although Skyline has never developed anything other than the Louix, a building that does not even exist. 

"I can tell you Nat Hyman is wrong," proclaimed Margle. "The developer is not getting $29 million out of that [TIF] if you pass it." Margle was unable, however, to tell Council member John Goffredo how much the tax benefit actually is. 

Despite Margle's claim, Hyman happens to be correct. He told County Council that they would be awarding a $29 million tax break, and that's precisely what it is. He did not guess at this figure. It is on page 9 of the TIF application    

Margle also claimed that Hyman was wrong when he asserted that Wilson Borough has been far too lax at enforcing code violations. He told Council member Ron Heckman that Wilson has cited Dixie 10 times for code violations and has fined the maximum $300 each time. I checked. It's true that Dixie was cited 10 times in 2018 and 2019, but not since then. Of these 10 citations, Dixie was fined only three times. They were $100 fines for snow and ice removal (once) and broken windows (twice). If Wilson was really interested in code enforcement, it could cite Dixie for every broken window, and on a daily basis. That would encourage a sale. Instead, it has allowed the property to languish for the past 40 years. 

Margle added that Hyman's $7 million offer to buy the property was rejected "because the product he proposed was substandard." Margle later conceded that Hyman "does good things, but it would not be appropriate for this building in this place." This was all news to Hyman, who told me he had prepared no plans for the property.

Rather than stick around through all the speeches about abortion and a SEIU union contract, Hyman left when he had finished his speech. Council member Jeff Warren waited until then to attack him. "Is Mr. Hyman still here?" asked the increasingly sanctimonious Warren. "I'd like to ask him a question. He came in here pretty bombastic about his project seeming as though he somehow wanted to destroy this project." He later added, "I was going to ask him about labor, but he's gone." 

That explains why Warren and Executive Lamont McClure are so gung ho over an out-of-state developer with zero experience. You see, this project is expected to create about 150 temporary construction jobs. Warren and McClure are so intent on seeing them go to their campaign contributors in the trade unions that they are willing to hand out $29 million of your hard-earned money to someone they do not know for apartments that most of us could never afford. This is no way to govern. 

Another black mark against Hyman, at least to Warren, is that he is from Allentown and not a Northampton County resident. Well, that's a helluva' lot better than a developer who uses a virtual address in NYC as his office. 

Hyman was slammed by Warren for leaving after he made his points, but developer Bill Bartee was completely MIA. Consultant Claudia Robinson, a specialist in corporate welfare, was physically absent and participated via a phone held up to the mike by the "Project Manager." Instead of outlining the advantages of this project, she of course attacked Hyman for a "very unfair" speech. She never stated how Hyman was wrong, but then launched this ad hominem. "Mr. Hyman has his own skeletons and it's really not appropriate for me to start discussing them now ..." Really? Then why mention that there are skeletons?    

Council President Lori Vargo-Heffner eventually stepped in and admonished Robinson. "With all due respect to Mr. Hyman, he came, he left a note, he's not the point of reference here. We are. So it's our turn to ask questions and get the answers. He had an opinion, but that's not what we're basing our questions on." Robinson then apologized.

Council member John Goffredo also defended Hyman. He pointed out that they were conducting a public hearing.  Hyman, unlike Robinson, was actually there, even if he did leave.  

Goffredo asked Robinson of the TIF was really needed. "Without this TIF, this project will not happen," she declared for the first time. Up until now, she had been saying it would be harder to attract private equity investors. Now it's impossible. 

Hyman was also defended by former Council President Ron Angle, who had come to the meeting to say good-bye to outgoing clerk Linda Zembo. "I don't know Nat Hyman, but I do know his reputation is very good," said His Eminence. "Whatever he builds is done right ... . Do you know who Skyline is? One guy. He'll give you all kinds of locations around the country ... That guy should be here. Nat Hyman did come here. He left, maybe he had another appointment, but he did come. ... "

Several people ridiculed the $1 million bribe for affordable housing as a drop in the bucket. Chuck Weiss, the Associate Exec Director of Housing for CACLV, noted that $1 million gets you maybe four apartments. "It would be nice to see a little more money coming out of this for affordable housing." Alyssa Baratta, Exec Director of Third Street Alliance, said that 2,203 LV households are homeless "A million dollars means nothing to housing these people." Armando Moritz-Chapelliquen, a Wilson Borough activist, looked at the gap between the $1,800 in rent to be charged for a 1 BR apartment and the fair market rent of $1,137. He concluded that a much fairer contribution to affordable housing would be $6.3 million. 

The final speaker was Wilson Borough Mayor Donald R. Barrett Jr. Unfortunately, he wasted a lot of his five minutes by needlessly criticizing Wilson Borough activist Armando Moritz-Chapelliquen. "It just needs to get done." he said.  

Warren, who never is at a loss for words, made this final pitch. "Sometimes, you take what you can get."

That's a ridiculous excuse for throwing away $29 million in taxpayer money. 

The Argument For the Dixie Cup TIF

Over the past few days, I've been hammering away at the special tax break known as a TIF at the long-vacant Dixie Cup factory in Wilson Borough. I philosophically oppose most tax breaks but usually have no problem when it's given to develop a blighted urban property or a brownfield. The Dixie Cup is certainly a blighted urban property, but I oppose a tax break there for three reasons: (1) I believe it will exacerbate, not alleviate, our housing crisis; (2) I have no confidence in the private equity developer; and (3) It subverts natural revenue growth. TIF Having said this, I expect the TIF to be granted by the borough, school district and county. And no, it has nothing to do with campaign contributions to anyone. There are none. The simple reality is that reasonable people of good will can look at the same facts and have different opinions.

Yesterday, I received an anonymous letter (not an email, but an actual letter) endorsing the Dixie Cup project. Although I know who the author is, I'll honor his anonymity. Here's what he said: "The TIF is a good thing for certain type properties, like the Dixie Cup property which has sat vacant for too many years. Waiting another 20 years to get the increase in taxes is not a long time. The government bodies lose nothing because without the development there will be no increase in tax base. It's obvious this building will sit forever if no government incentives, like the TIF, are involved."

In addition to this anonymous letter, I also received a "Redevelopment Project Status Report" concerning the project, which you can review yourself below. Though Skyline's Brain Bartee leaves a lot to be desired, he has had enough sense to involve over 20 highly qualified consultants. Moreover, before closing on the deal, over $3.5 million has already been invested into this project. 

I also received a message (I'll keep it anonymous) telling me that doing nothing is what exacerbates the affordable housing crisis. "[Y]ou exacerbate the Affordable Housing crisis by not increasing the overall supply of rental housing in The Valley. So, a warehousing use or worse yet no use at all makes things worse by failing to increase the overall supply. In other words, doing nothing or the wrong thing exacerbates the situation. More supply. Lower rents throughout the market as people will stop renting less housing than they can afford"

The justification for the $1 million the county receives for the TIF is that it will fund affordable housing projects in Glendon Borough, Forks Tp and on the Southside of Easton. But, more importantly it is sending a symbolic message that if you're going to build luxury or mid-market rate with County support, you are going to need to find a way to help us defray the costs of the Affordable projects we are working on all over the County.

I remain opposed to a TIF, but there are two sides to every coin. 

Redevelopment Deal Status Report 240220 Dixie Cup by bernieohareiii on Scribd

Dixie Cup: Skyline Addresses Red Flags About Its Credibility

On Friday, I questioned the bona fides of Skyline Investment Group. This private equity firm plans to buy the long vacant Dixie Cup building in Wilson Borough and convert it into 405 apartments. Why this matters is because it seeks a considerable 20-year tax break known as a TIF. Under this program, it can use the increase in property taxes that result from development to finance additional development. The three taxing authorities (county, school district and borough) will see none of it, although Skyline is willing to give the county $1 million for affordable housing projects in Forks Tp, Glendon and Easton. After I published this story, I received a call from Brian Bartee, the founder of Skyline.  He blew smoke up my ass, telling me that this small blog is very influential. At the same time, he threatened me with a defamation lawsuit from the Morgan, Lewis law firm. The purpose of this story is to review each of the red flags I raised on Friday, along with Bartee's response. You can then decide for yourself whether this is a credible developer. 

Red Flag #1. Skyline Investment Group appears to be a knock off of the worldwide Skyline Development Group. That's owned by Zygi Wilf, who also owns the Minnesota Vikings and is an actual developer. I believe using a name so similar to Skyline Development Group is designed to confuse gullible people.  

Bartee's response. - He chose the name because he likes the word Skyline, did the necessary corporate name search and had no desire to fool anyone. 

Red Flag #2. Skyline Investment Group's website lists locations in California, Florida, New York, Tennessee and Texas. But with the exception of its New York location, it fails to provide a physical address for any of these other venues. The only contact - and it's the same contact for all five locations - is a cell phone number with a 551 area code (in New Jersey). This kind of misrepresentation is designed to make Skyline look bigger than it actually is. 

Bartee's response. He admits he has no physical presence anywhere except for NYC. He blamed it on COVID. 

Red Flag #3.  The sole physical location that Skyline does list is in New York at 200 Park Avenue, Suite 1700. That's the Metlife Building, and the use of that address is intended to create the impression that Skyline has a prestigious address. But it's a virtual address. 

Bartee's response: He admits he uses a virtual address. He also blames this on COVID. 

Red Flag #4. The portfolio for Skyline lists one project called the Louix. It fails to indicate where it is, what it is or when it was built. There is no description at all. 

Bartee's response. He admits there is no Louix anywhere. Apparently, it is a design prepared by CHASM architecture. 

Red Flag #5. The services offered at Skyline' webpage are a ridiculous array of items from accounts receivable to second mortgages to lines of credit to energy production. This is not development. 

Bartee's response.  Before he went into development, and the Dixie Cup is actually his first development. Bartee provided these services, mostly as a broker. 

Red Flag #6. The webpage lists several firms as "partners" that are actually not partners. For example, CHASM Architecture is listed as a "partner." It is actually an architectural firm that would be employed by a developer.

Bartee's response. CHASM Architecture is his exclusive architect for all his development projects. (He has one). He added that Nathaniel Clark, managing partner at CHASM, is a principal in Skyline Easton, the entity that actually is poised to buy the Dixie Cup. So there is validity to his claim that CHASM is a partner. 

Red Flag #7 The public faces of Skyline at municipal meetings have been Claudia Robinson and Neil Griffin. But get this. Neither is actually employed by Skyline at its make-believe office. Robinson is actually employed at AreaProbe, Inc., a Washington DC real estate advisory firm. She is apparently particularly good at snagging tax credits and is obviously working this deal as a consultant.  I don't know what she may have told other municipal bodies, but she failed to disclose exactly what her employment status is with Skyline, despite a direct question about it from Council member Lori Vargo Heffner. As for Neil Griffin, he is a Project Manager at CHASM.

Bartee's response. He acknowledged that neither Robinson nor Griffin is employed directly by Skyline. He stated that he has 80 people working this project, including the Morgan Lewis lawfirm. They are not employees. When pressed, he said he has 11 direct employees. 

Red Flag #8. On Friday, I confused Bartee with another person by the same name and incorrectly stated he was in sales for the medical care industry. 

Bartee's response. He has never been involved in the health care industry and has devoted his career to real estate. He correctly took me to task for that error on my part. He acknowledged that this is his first actual development. 

Why Dixie Developer Needs NorCo To Take Over Wilson Boro Tract

Last week, Skyline Investment Group representatives appeared at the county's General Purpose Authority.   Wilson Borough owns a small triangular piece shown on the tax map you see above as 1C-1. It is 0.35 acres located along the eastern side of 25th Street and is actually the beginning of a bike path that extends from the Palmer Bike path and hooks up with the Tatamy Trail. Skyline wants to take it over and move the giant Dixie Cup that currently sits on top of the factory to this triangle. But Skyline wants this deal to go through the county. It wants the Borough to convey to the county or General Purpose Authority, then have the county or General Purpose Authority convey to Skyline.

Why?

Under the Borough Code, Wilson Borough can convey land to another municipality or municipal authority. But if it desires to convey to a private party, it must do so by auction. 

This provision in the Borough Code is obviously intended to prevent sweetheart deals between a municipality and for-profit developers. But isn't that exactly what is happening? 

UPDATED: Dixie Cup's Questionable Developer Will Exacerbate Affordable Housing Crisis

In March, Northampton County Council approved a nonbinding resolution aimed at capping increasing lot fees charged by the private equity firms that are gobbling up manufactured home developments throughout the country. But at the same time, Northampton County is poised to give a significant tax break for Skyline Investment Group. This private equity firm plans to buy the long vacant Dixie Cup building in Wilson Borough and convert it into 405 apartments. Monthly rentals for single bedroom apartments will be $1,900, which is well above what City Center charges ($1,200) for luxury apartments at the Strata. It's nearly twice what most commercial landlords charge in the Lehigh Valley. Though Skyline is willing to throw a $1 million bone to the three taxing districts for affordable housing elsewhere, all three taxing authorities will have to wait 20 years before they see increased revenue to help their bottom lines. While waiting, ordinary taxpayers will have to pick up the tab for the increased services that the school district, borough and county will have to provide for double-platers who move here from New Jersey and NYC. These transplants will be among the few who can afford these rents. Most of us would agree that tax breaks for warehouse developers should be spurned. Similarly, we should discourage private equity firms like Skyline that exacerbate the affordable housing crisis. They've already taken over the trailer parks and now have their sights set on larger apartment complexes throughout the country. While they certainly have the right to invest in apartment buildings and charge exorbitant rents, the last thing a government should do is incentivize them. 

Earlier this week, I shared Armando Moritz-Chapelliquen's informative description of the project (you can read it here.) In addition to seeking a tax break known as a TIF, which would delay enhanced tax revenue for 20 years, Skyline wants the county to acquire a triangular tract (at least temporarily) next to the factory upon which it plans to move the Dixie Cup that currently sits on top of the building. 

One of my readers asks, "Has anyone done research into this developer? What other projects have they done? Anything of this size? Do they have a reputation as a good operator? I would think that A LOT of research should be done before McClure hands out our tax dollars to them!"

I've done a little digging and can see a number of red flags.

First, this private equity firm (it is not really a developer) calls itself Skyline Investment Group. Just as there are knock offs of name brand products, Skyline Investment Group appears to be a knock off of the worldwide Skyline Development Group. That's owned by Zygi Wilf, who also owns the Minnesota Vikings and is an actual developer. I believe using a name so similar to Skyline Development Group is designed to confuse gullible people.  

Second, Skyline Investment Group's website lists locations in California, Florida, New York, Tennessee and Texas. But with the exception of its New York location, it fails to provide a physical address for any of these other venues. The only contact - and it's the same contact for all five locations - is a cell phone number with a 551 area code (in New Jersey).

Third, the sole physical location it does list in New York is 200 Park Avenue, Suite 1700. That's the Metlife Building, and the use of that address is intended to create the impression that Skyline has a prestigious address. But it's a virtual address. 

Fourth, the portfolio for Skyline lists one project called the Louix. It fails to indicate where it is, what it is or when it was built. There is no description at all. 

Fifth, the services offered are a ridiculous array of items from accounts receivable to second mortgages to lines of credit to energy production. This is not development. 

Sixth, it lists several firms as "partners" that are actually not partners. For example, CHASM Architecture is listed as a "partner." It is actually an architectural firm that would be employed by a developer.

Seventh, the public faces of Skyline at municipal meetings have been Claudia Robinson and Neil Griffin. But get this. Neither is actually employed by Skyline at its make-believe office. Robinson is actually employed at AreaProbe, Inc., a Washington DC real estate advisory firm. She is apparently particularly good at snagging tax credits and is obviously working this deal as a consultant.  I don't know what she may have told other municipal bodies, but she failed to disclose exactly what her employment status is with Skyline, despite a direct question about it from Council member Lori Vargo Heffner. As for Neil Griffin, I was unable to find out exactly who he is and where he works.

So who is the moving force of Skyline? It appears to be one person - Brian Bartee. Amazingly, his LinkedIn page fails to even mention Skyline. He calls himself an investor in venture capital and private equity. He was a salesman for Lifescans for a year and was an account manager for the health care industry.  

If Bartee has lined up a number of investors for the Dixie Cup, good for him. If he wants to charge rents that most of us could never afford, that is his right. But the government should do nothing to help someone who is only going to make the affordable housing crisis worse even if he dangles a $1 million carrot.  

UPDATED (12:30 pm): Brian Bartee, Skyline's owner, called me this morning. The one part of my story that is inaccurate is my confusion of him with another Brian Bartee from Arizona. He also insists that CHASM is a partner, although that's debatable. The rest of my story is accurate. I'll fill you in on that conversation on Monday.  

UPDATED: Dixie Cup Developer Wants County To Take Over Wilson Borough Tract

Last week, the New York City based developers of the long vacant Dixie Cup building presented their plans to NorCo Council. Skyline Investment Group is seeking a tax incentive known as a TIF. Under this kind of a tax break, the owner can divert increased real estate taxes to pay for improvements over a period of 20 years. In exchange for this benefit, they will make 10% of their apartments "affordable" or kick in a little over $1 million that the county can use for affordable housing elsewhere.  As generous as that may be Skyline has one more request.

Yesterday, Skyline was at the county's General Purpose Authority (GPA) meeting. Wilson Borough actually owns a small triangular piece shown on the tax map you see above as 1C-1. It is 0.35 acres located along the eastern side of 25th Street and is actually the beginning of a bike path that extends from the Palmer Bike path and hooks up with the Tatamy Trail. Wilson Borough wants Skyline to take it over and move the giant Dixie Cup that currently sits on top of the factory to this triangle, where people can offer human sacrifices or whatever to the Dixie Cup gods.  Skyline wants GPA to help with the purchase of this tract. Specifically, it wants the NorCo to assume ownership of the triangular lot, and then eventually pass it on to Skyline. 

It's unclear to me why this is necessary. 

Tina Smith, NorCo's Director of Economic Development, told the GPA that "[I]t's a great project and we hope to see it come to fruition."

Skyline Investment Group descriobes itself on LinkedIn as "one of the premier nationwide commercial real estate finance firms. Senior debt, preferred debt, student housing, construction, multifamily, hospitality, retail, industrial, office, net lease, credit lines and assisted living financing is part of our core business." I'm unaware of any projects in which it has been involved.

Claudia Robinson told Council member Lori Vargo Heffner, "It;s a small industry. My area is historic rehabs." Though she presented on behalf of Skyline, she actually is employed by another firm. She did identify a major investor, but I was unable to catch the name. She stated that monthly rents for 1 BR apartments would be about $1,900.

Dixie Cup Developer Wants Tax Break

Below you will see a detailed report from Wilson Borough resident Armando Moritz-Chapelliquen concerning the redevelopment of the long vacant Dixie Cup factory into apartments. Developer Skyline Investment group wants a tax break known as a TIF in exchange for setting aside 10% of the units for affordable housing. Wilson Borough and the school district have both signed off on this tax break, and all that is left is approval from the county. This TIF must be approved by Wilson Borough, the school district and the county to get the benefit from all three taxing bodies.

I will weigh in with what I think after checking out this New York investor. 

Armando's report:

[On May 2], two representatives from Skyline Investment Group, the buyer for the Dixie Cup site, presented their most up-to-date plans to Northampton County Council's Economic Development Committee. A lot of information was shared in the supporting documents (which you can find here starting on Page 13), but among the biggest updates is that the developer is requesting the Council pass an ordinance to set up a Tax Increment Financing District, or TIF.  

 

What is a TIF?

As Good Jobs First explains it, Tax Increment Financing is a geographically targeted economic development tool. It captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development. That diversion means local public services do not get the new revenue they would normally get from new re/development. 

 

In the case of the Dixie Cup site, the TIF would be in effect for roughly 20 years. Given this potential diversion of tax revenues, the question on everyone's mind should be "Is a TIF worth it for this project?"

 

What is Being Proposed

Some may recall an earlier image I circulated to show what were some of the major components of this project. The below image comes from the developer's TIF Plan, submitted to County Council as part of their May 2 meeting (accessible here starting on page 24).

• Dixie Cup Seating Area (Red Square): The Dixie Cup currently on top of the building will be brought down to ground level and set up with benches for people to enjoy up close. A replica cup will be created and placed on the roof. Based on the plan provided, this area would be close to where the bike path meets 25th Street.
   
• Access Lane to Bike Path (Green Oval): The bike path that runs along the western end of the site will be accessible from the southern parking lot of the redeveloped Dixie Cup building. This would provide a new outlet for cyclists who can currently only exit this stretch of the bike path at Northampton Street to the north or 25th Street to the west.
   
• Cafe and Dog Lounge (Blue Triangle): The old boiler house will be converted into a retail/commercial space, along with a dog run (note the bone-shaped outline on the western end of the triangle). This amenity, in addition to the Dixie Cup seating area, will be open to the public and provide an additional component of connective tissue between the Wilson Area High School to the east and Easton High School to the west.
   

The previously mentioned fire lane around the building, pool for building residents, and rooftop lounge are still included (the pool can be seen to the west of the 2nd northern-most "finger" of the main building). While the parking lot to the south of the building is visible even today, it's bound to be more active once the building is complete. 

Affordable Housing

Within the TIF ordinance is a section on affordable housing (pages 18-19 for those reading through the documentation). While the text requires 10% of the units to be affordable, there is also language that allows for an owner using the TIF to opt out of this requirement if they contribute $27,000 per unit, up to 10% of the total number of units, to the County's Affordable Housing Initiative Program. The redevelopment plan is for 405 units, meaning either 40 units would need to be affordable OR the developer would contribute $1,080,000 ($27,000 x 40 units) to the County fund. The developer has repeatedly stated they would prefer to contribute to the fund, so the only remaining question is whether $1,080,000 is a sufficient contribution to the fund. 

My Opinion

While the affordable housing question still needs to be answered, this proposal is an enormous validation of community voices--like yours-- that pushed back on the warehouse plan in 2022 and completed my survey in 2023. For those unfamiliar, I asked area residents to score their favorability towards various uses permitted on the Dixie Cup site. The results were very aligned with what Skyline Investment Group is proposing.

Separate from affordable housing, I still have questions regarding some of the more specific details of the site (amenity access, bike path accessibility from Washington Blvd, general questions about vehicular traffic, etc). Regardless, the possibility of a reactivated and engaging Dixie Cup site as part of our community is only because of community involvement and advocacy over the past few years. And if you have concerns about this plan, there is still time to make your voice heard.

Next Steps

County Council will be holding a public hearing on the TIF ordinance on Thursday, June 6. A vote on the ordinance is scheduled for Wednesday, July 3. I'll be attending both and am happy to meet up with others who would like to give testimony. We are so close to getting something that will benefit our community. Let's make it happen!

 

Thanks as always for your collaboration!

-Armando

 

PS: If you think someone would appreciate this information or want to receive updates on this Dixie Cup site, forward them this email!

Dixie Cup's Supposed Buyer Lends $442,000 to Owner

 Yesterday, I shared Armando Moritz-Chapelliquen's take on the latest proposal for the redevelopment of the blighted Dixie Cup factory in Wilson Borough. What I neglected to tell you is that, contrary to what has been reported in some media sources, the property is still owned by Joe Reibman's WilsonPark,LTD. Although a memorandum of an agreement of sale has been recorded with Syyline Investment Corp, no Deed has actually been conveyed.

Even more interesting is that the Seller has actually borrowed $442,000 from Skyline. I have never seen a commercial buyer loan a seller money and have no idea why they would do this.

Latest Dixie Cup Proposal

Blogger's Note: Armando Moritz-Chapelliquen is a Wilson Borough resident very interested in the redevelopment of the blighted Dixie Cup factory located between S 24th and S 25th Sts. He attended a presentation on Monday night that describe the project in detail. You can post your thoughts in the comments. 

Good Morning Neighbor,   [Monday] night, two representatives from the prospective buyer of the Dixie Cup site presented updated plans to Wilson Borough Council. While some things remain the same, there were some substantive changes that I want to highlight.   What's New The biggest differences since the August presentation were in the details provided. Below is an image I drafted up to try and convey some of the new details that were shared.

Retail and Community Space (Red Circle): The development team has proposed to activate the old boiler room for the site as a retail and community space open to the public. The idea is that people could access this space from either the bike path (which currently runs along the building) or from a newly activated roadway on the southern side. Reactivated Roadway (Blue Rectangle): The gray line on the map represents a roadway that has not been in use but would be reopened to allow for the public to access the retail and community space. Fire Lane Around the Building (Orange Line): The orange line is a poor approximation but is meant to convey that there will be a fire lane all around the building, allowing for emergency vehicles to access the building from any side. I believe this would also allow for greater pedestrian and bicycle flow off of Washington Blvd and the bike path.   In addition to these changes, the developer is not (yet) requesting a tax benefit in the form of a LERTA or TIF. This is different from August's presentation, where a Tax Increment Financing (TIF) was floated as a potential request.

Unchanged Proposal Elements Several elements of the proposal remain (largely) the same. A quick rundown is below: Market-Rate Residential Units: There are 405 units proposed for the building, 76% will be 1 bedroom, 24% will be 2 bedrooms (August unit count was 422). All units are expected to be market rate. Target demographic is still "young professionals". Resident-Only Amenities: Amenities for residents include a rooftop lounge, co-working rooms, club rooms, pool on the western side of the building, and courtyards that will be between the "fingers" of each building.   According to a traffic study done by the development team, impact on traffic could be mitigated with updated timing on the signal lights at 25th and Butler. Additionally, with the reactivated roadway, parking around the building and use of the adjacent lot for resident parking, there is minimal concern for increased competition for on-street parking.

What About The Cup? The development team indicated that the existing cup is not safe to stay in its current location. They are proposing bringing the cup down to the proposed community and retail space and building a replica cup with new materials to put in the original's place.

What's Still Unclear In August, I indicated that the developer was considering a contribution into Northampton County's Affordable Housing Fund. Whether that is happening (and how much would be contributed) is still unclear. Additionally, there are still questions as to who exactly the developers of this site are.

What Do You Think? The development team is looking to start work on the project in April of this year and completing work by 2025 or early 2026. There is a lot to digest from this update, but I'd love to know what you think about what's changed and what's remained the same. This is a massive development that could fundamentally transform our community. Do you think it will change it for the better?   As always, thanks for the collaboration! Armando

Wanted For Armed Robbey: Alhakeem Hamilton

From Wilson Borough Detective Jason Hillis: On 08/09/2016 the Wilson Borough Police were flagged down by Joseph Popham, of the 1900 block of Fairview Ave. who reported that he had just been jumped by three black males. Popham stated that he was in the alleyway behind his residence (Linden St) when a male named Alhakeem Hamilton approached him and struck him on his head with his fist.  Two other unidentified males began punching him. Popham fell to the ground the males began to kick him repeatedly on his head. During the assault Hamilton took his silver in color LG Lean smart phone valued at $100.00.

 Popham was taken to a local area hospital for an injury to his right ear and was treated and released. Alhakeem was positively identified by Popham through a photo. A warrant for arrest was obtained for Hamilton for Robbery, Simple Assault, and Theft. Anyone with information should contact the Northampton County 911 Center 610.759-2200 

Wilson Boro Police Warn Against Nighttime Burglaries

From Wilson Borough Detective Jason Hillis: "On 07/31/2016 the Wilson Borough Police Department received two burglary reports. One occurred on the 1500 block of Ferry Street and one on the 1500 block of Lehigh Street. One caller reported that an unknown person(s) had entered the home between 0130 hours and 0930 hours, though an unsecured window and stole her purse. The caller also stated that the unknown person(s) had left through the rear door to the residence.

"The second caller reported that they were awoken when they heard a noise downstairs in their residence. The caller also reported that they went downstairs and observed both the front and back door to the residence were open. The caller reported that a screen in the window located to the rear of the residence had been push in and there was a chair underneath the window. The caller stated that the doors were locked to the residence. Nothing was reported taken from the residence. Anyone with any information should call the Northampton County 911 Center non emergency number (610) 759-2200 or Detective Jason Hillis (610) 258-8542. Residents are urged to lock their doors and windows."

Do You Know Nuki?

If you do, Wilson Borough police would like to hear from you. Here's a report from Detective Jason Hillis.

On 02/01/2016 a concerned parent brought their 16 year old juvenile female daughter to the station to report a suspicious male. The juvenile female stated that she was walking home from school on the 1700 block of Filbert St. on 02/01/2016 when a tall black male with a mustache approached her. She stated that the male asked how she was doing and kept walking closer to her. She stated that the male kissed her hand and asked if he could walk her home and also took a bottle of liquor out of his pocket and started drinking it. The male introduced himself as “Nuki”. The juvenile female walked away from this male and walked into her residence without being followed. Anyone with information regarding this incident or similar incidents are asked to call Detective Jason Hillis 610.258.8542 or the Northampton County 911 Center 610.759.2200.

Wilson Police Seek Help in Luring Incident

From Wilson Borough Police: On October 23, 2015, at approx. 6:05PM, in the 2200 block Washington Blvd., a woman observed an actor operating a silver Volkswagen Passat, with a brown interior, tinted windows, and an unknown Pennsylvania registration, talking with two 15YOA females. The actor was talking to the females and the females were telling the actor that they could not hear him. They were asking him what he was saying and getting closer to the vehicle. This woman stayed in the area of the girls until the actor left.

The girls told this woman that the actor was telling them that he was there at the direction of their fathers and talking in a lower voice so that the girls had to get closer to the car. The woman counselled the girls about safety and then left. A few minutes later, the woman saw the actor on S. 24th St. He told her to “stay out of his business” and yelled obscenities at her then left the area, last observed traveling into Palmer Township on Butler St.

Police checked the area and could not locate the actor. The Police Department never received any calls from the female juveniles.

The actor was described as a Hispanic male, with his hair buzzed around the sides and a little longer on top. He is approx. late 30’s to early 40’s and was wearing a white t-shirt with a large silver necklace on.

Anyone with information about this incident should call Det. Jason Hillis @ 610-258-8542, or the Northampton County Control Center @ 610-759-2200.

Dees Reports Jill Garcia Now Wilson's Borough Manager

Jill Garcia, a former part-time West Easton Borough clerk, was forced to leave her job there as a result of harassment by Tricia Mezzacappa, which was both vulgar and extremely personal. She went to work for Wilson Borough, and Matt Dees is now reporting that she's just been named Borough Manager! Good for her!

Jill, I owe you a lunch at Betty's Luncheon, home of the best falafel in the Lehigh Valley.

Nasty People

It's hard to believe that people would criticize Bob Donchez, Charlie Dent or John Stoffa for being nice guys, but that's the world we live in. As Ann McHale once said before Stoffa beat her, "Nice guys finish last. "

They perceive kindness as a weakness when it is also a strength. It's very hard to see the good in some other people, as the latest attempted blog hijacking by Tricia Mezzacappa makes clear to me. Even worse than that is the story of a poor roofer who last Friday lost $600 in cash at a local grocery store.

He earned that $600 after a week of roofing in frigid weather. When he was paid, he went to the local Bottom Dollar in Wilson Boro, where he accidentally dropped his wallet with $600, minus whatever groceries he had just purchased. When he realized his mistake, he went back to the store and found his wallet. All the money was gone. So were his credit cards.

That's bad enough, right there. But it gets worse. Inside the wallet was a note saying, "Thanks, asshole."

His credit card was used at nearby WaWa, and hiopefully, police will catch these nasty people.