Allentown's Urban Growth Regime

Michael Donovan

In 2009, there were 63,806 registered voters in Allentown. It took just 7,908 of them - a scant 12.4%  - to elect Edwin Pawlowski to a second term as Mayor. In a one-party town, that election was a mere formality. The only reason to bother was so that Pawlowski could dun City vendors in his never-ending quest for campaign contributions.

Democracy is dead in Allentown.

Allentown, Urban Growth Regime

Oh sure, the trappings still exist, but democracy in the Queen City has been replaced by something more nefarious. It's an urban growth regime in which politicians and select members of the business community co-opt each other, not for the benefit of the community, but to advance their own business interests.

"I've never seen so many democrats fighting so hard to make republican developers rich," notes one of my astute readers. That's what happens in an urban growth regime.

They like the term "public - private partnerships." I prefer to call it what it is - an oligarchy.  It's Crony Capitalism. An urban growth regime. A consortium of select real estate developers, attorneys, engineers, consultants and other City vendors whose membership can be determined by looking at the 87-page report of $251,915 in campaign contributions received by Mayor Pawlowski in 2011, a non-election year.

Is it any wonder I call him King Edwin?

It's been going on in Allentown for years. Behind the curtains is the secretive Lehigh Valley Partnership, a body of unelected bluebloods. They set municipal policy and support the politicians who do their bidding. They control LVEDC, CACLV and RenewLV. Their central theme, over the past twenty years, has been the revitalization and growth of Allentown.

The primary justification for real estate growth in Allentown is that it will raise assessments and tax revenue. Growth is good. But this total emphasis on adding Johnny Mananas and Brew Works ignores most of the City's population. Class separation results, De Facto segregation occurs. The poor, most of them minorities, are ignored or provided substandard jobs. Crime increases. Educational opportunities decrease. The City becomes unsafe.

Such is Allentown.

Despite all the many types of revitalization and attempts at urban growth over the years, per capita income is just $16,917 per year. 27% of the City's population struggles below the poverty level. It's at 42% among Hispanics.

Donovan Joins the Urban Growth Regime

Michael Donovan knows these things, better than most. He's devoted a career to studying urban growth regimes.

When he joined Allentown City Council, he became a part of Allentown's urban growth regime. After four frustrating years of trying to effect change from within, he's had enough. ... At least for now.

Donovan's first experience with the urban growth regime occurred in late 2005, when he served on Mayor Pawlowski's transition team, and focused on economic development. Their strategy for Allentown's poor? "We need to bus 'em out of town," remarked one teammate. They were intent on continuing to do what they've been doing for years - build their way out of the mess.

In fact, that's the whole point of the Neighborhood Improvement Zone (NIZ). Donovan had warned Pawlowski, "I don't want 50 rich white guys being the only beneficiaries." But that's exactly what happened. It will convert J.B. Reilly From millionaire to billionaire. It will make Lee Butz and Joe Topper even more wealthy.

But will it help the quarter of the City's population, struggling below the poverty level?

Pawlowski's "Trickle Down" Economics

"A rising tide lifts all boats," assures Allentown Mayor Ed Pawlowski, borrowing the words of President Kennedy. But this "rising tide" argument is really nothing other than the trickle down economics that progressives all supposedly eschew. And empirically, the urban growth regime has continually failed in the Queen City.

According to Donovan, "Nobody is thinking about the population of Allentown, but the wallets of private developers."

Pawlowski's Penchant For Secrecy Hurts NIZ Process

When Pawlowski quoted JFK's remarks about rising tides, he might have looked at what Kennedy had to say about government secrecy.

The very word "secrecy" is repugnant in a free and open society; and we are as a people inherently and historically opposed to secret societies, to secret oaths and to secret proceedings. We decided long ago that the dangers of excessive and unwarranted concealment of pertinent facts far outweighed the dangers which are cited to justify it. Even today, there is little value in opposing the threat of a closed society by imitating its arbitrary restrictions. Even today, there is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment. That I do not intend to permit to the extent that it is in my control. And no official of my Administration, whether his rank is high or low, civilian or military, should interpret my words here tonight as an excuse to censor the news, to stifle dissent, to cover up our mistakes or to withhold from the press and the public the facts they deserve to know.

Donovan saw this secrecy first hand.

In addition to serving on City Council, Donovan was named to the Allentown Economic Development Corporation (AEDC). He was constantly stymied in his efforts to see feasibility and marketing plans for the Neighborhood Improvement Zone, which was already receiving heavy infusions of cash.

In fact, he had no idea of J.B. Reilly's involvement as the major developer until July or August of last year.

Donovan is by no means alone.

The NIZ legislation (authored by J.B. Reilly's attorney for Senator Pat Browne) was slipped into a 2009 budget package and voted on without any real knowledge of its details. Township officials were never informed their EIT would be used to finance development projects in Allentown. They have since been stonewalled in their attempts to get information concerning the impact of lost EIT revenue on their own bottom lines. In fact, their lawyers have recently suggested this refusal to share financials "is both disturbing and in bad faith."

Morning Call columnist Bill White acknowledges these concerns, but then goes on to say, "[T]hat hardly warrants deep-sixing this entire project."

Really? I'd argue that anyone who believes in democracy or open and accountable government should pull the plug now, especially before $40 million becomes $500 million.

When City officials finally decided to share some details with Donovan in October, he was appalled by the lack of financial information. "I wouldn't a student a decent grade on what I saw," he told me.

But by that time, Donovan could see he had worn out his welcome at AEDC, and was battling a serious illness. He had become a voice in the wilderness.

How a NIZ Could Work

According to Donovan a NIZ could work, done right. He points out it's called a "neighborhood" improvement zone, and should be structured in a way that actually achieves that goal, instead of hurting townships or making rich developers even richer.

Should an Arena Be the Anchor?

You need to identify an anchor, claims Donovan. Something that attracts people. But should that be an arena?

According to Justice and the American Metropolis, the analytic findings are nearly unanimous "that investment in sports produces neither economic development nor neighborhood improvement. ... Planning consultants who promote particular kinds of investments, especially convention centers and sports venues, bolster the predilections of local officials seeking the glory of bringing in a team or cutting the ribbon before the new convention facility."

Donovan tells me there "was excessive focus on the arena, rather than looking at the bigger picture of what was possible."

A Real Community Benefit Agreement

After identifying an anchor, you need to identify what you consider Allentown's most serious problems. It could be the crime, the lack of educational resources, the poor housing stock. Use money to address these shortcomings. Hire more police. Develop affordable housing programs.

Donovan would like to see a vo-tech in Allentown, along the riverfront. "You can't offshore the repair of trucks," he told me, noting that many young men and women could benefit from that kind of training.

He even suggested a veteran overlay zoning district, which could attract federal money.

Where would these commitments be memorialized? In a Community Benefit Agreement.

Donovan has seen a draft of the Community Benefit Agreement being worked on for Allentown's NIZ, which merely imposes the same old tired construction quotas that have failed to solve a single societal problem in the past. It makes no real commitment to the neighborhood that is supposedly being benefited by the NIZ.

He spoke of a community benefit agreement in Pittsburgh, providing for a grocery store, employment center, multi-purpose center and family-sustaining jobs.

Allentown's Real Problem

Allentown is not its NIZ, or its poverty, or its poor education, or even its crime. Its real problem is that it is no longer a democratic form of government. It's a very selective oligarchy - an urban growth regime in which cronies masquerade as capitalists. Only friends of the King will see any development opportunities or business.

The few benefit at the expense of the many. And with the NIZ, the few will benefit at the expense of the many who live in the townships and other cities throughout the state.

Long live the King!


Blogger's Notes:

Statistical data concerning Allentown can also be found in LVPC's "Lehigh Valley Profile and Trends" (June 2011).

The references to Justice and the American Metropolis are contained on pp. 160 and 165.

Bethlehem Planners Reject 1000' Rehab Buffer

Eric Evans

Bethlehem planners, at their May 10 meeting, frowned on a proposed change to the current zoning ordinance, which would require a 1000' buffer between a residential rehab center and schools, parks, playgrounds, daycares and colleges or university campuses. But they unanimously recommended a 500' buffer.

City Council president Eric Evans told planners that a new zoning ordinance, which removes residential rehabs from residential areas and requires a 500' buffer, is slated for its first public hearing on July 3. But until this massive overhaul is enacted, Council wants to consider a text change to the existing ordinance, to deter a rash of recent rehab zoning appeals near schools. That could be considered in early June, a full month before the major revisions. "Any time we can save to put something in place to make our neighborhoods safer, our children safer, is worth it," explained Evans. "We thought this 1000' buffer would send a message. We think it's important," Evans added.

In addition to Evans, City Council members Dave DiGiacinto and Mike Recchiuti attended the Planning Commission meeting.

Planning Commission Chairman James Fiorentino, an attorney, worried that a 1000' buffer would likely be considered an outright ban on residential rehab centers. "It's an invitation to a lawsuit we can't win," he observed. "It smacks of something that looks like an excluded use."

Planner Andrew Twiggar agreed that a 1000' buffer puts us "in very choppy water. At 500', we're much more secure."

Developer Abe Atiyeh has at least four applications for residential rehab centers, all within 1000' of Bethlehem schools. His Senior VP, Dave Harte, is a Professional Engineer. In response to a question from planner Andrew Twiggar, Harte flatly stated, "1000' is exclusionary." A 500' buffer, Harte conceded, would provide "a little bit more of an opportunity," but in densely "populated residential neighborhoods." He claimed even a 500' buffer would be both "arbitrary" and unnecessary for a private pay residential treatment center.

Harte also noted that residential treatment centers were authorized by a zoning change six years ago. "I would have hoped that the City would have studied it and thought about it six years ago, when they intentionally placed a new zoning district, and intentionally zoned it to allow residential treatment centers immediately adjacent to a school," Harte reasoned. "I don't see the reason for the flip flop at this time."

City Council is not bound by the 500' recommendation, and could still impose a 1000' buffer when it considers this zoning change in June.

Reilly & Traub Drop Out of DeSales NIZ Ethics Breakfast

Dr. Stephen Thode

J.B. Reilly is the major developer at Allentown's Neighborhood Improvement Zone (NIZ). Sy Traub chairs the Allentown Neighborhood Improvement Zone Development Authority (ANIZDA). On Monday, I told you that both had agreed to participate in a $25 per head breakfast forum focused on NIZ ethical implications. It now appears that both of them have withdrawn.

Could this be because the third confirmed panelist, Lehigh University's Dr. Stephen Thode, is an ardent NIZ foe?

The biggest problem with Allentown's NIZ, from its very inception, has been a lack of communication. This latest snub reveals that NIZ supporters have learned nothing.

Work Will Start on LC Detox This Monday

On Monday, May 14th, at 11:00 AM, Lehigh County Executive Don Cunningham will hold an official groundbreaking news conference for the Lehigh County Detoxification Center for inpatient treatment of drug and alcohol addiction issues.

After more than a decade of work to find a location for a county-owned site in Lehigh County, construction is finally ready to begin for the provider-run facility that will accommodate 31 residential clients for detoxification and rehabilitation.

The facility is located next to the Lehigh County Community Corrections Facility on River Road in Salisbury Township.

Williams Township Endorses NIZ Intervention By State Ass'n

Supervisor George Washburn

At last night's meeting, Williams Township's Board of Supervisors voted unanimously to support a statewide association of township supervisors in a legal challenge to the 2009 law creating Allentown's Neighborhood Improvement Zone (NIZ).

The Pennsylvania State Association of Township Supervisors  represents the interests of 1,455 townships in the commonwealth, which comprise 95 percent of Pennsylvania’s land area and are home to more than 5.5 million citizens — 44 percent of the state’s population. It has decided to intervene in the NIZ litigation started by Hanover and Bethlehem Townships.

Township resident Joe Schiller told the Board to keep the pressure on Allentown Mayor Edwin Pawlowski. "Maybe he'll make the developers pay for this instead of the Townships," Schiller argued.

I was very impressed by the Williams Township board, by the way. It relies heavily on volunteers who report on different aspects of Township government. There's separate Advisory Committees for the Budget, Sewer, Landfill and Land Preservation. A representative from each of these advisory committees provides an oral report at each meeting. As a result, there were 33 people in the meeting room, engaged in open and accountable government.

The Township, incidentally, is considering a repeal or amendment of three "conservation by design" ordinances adopted in 2007. They're known as 50-50 ordinances, which restricts development by a property owner with ten acres or more to either keeping 50% as open space or planning on 3 acres per house.

Halden Ballek, a fourth-generation farmer who has challenged these ordinances in Northampton County Court, told Supervisors this legislative scheme is :"discriminatory towards farmers, whose occupation requires large tracts of land to earn a living." He complained these ordinances "quietly erode people's property rights."

Resident Bob Lilley was a little more frank. "Conservation by design is simply stealing," he asserted.

Supervisor Vince Foglia is ready to pull the plug on "conservation by design," but George Washburn and Sally Hixson are leaning towards making it a voluntary scheme.

They're asking owners directly impacted by this legislation to come to their June meeting and share their experiences.

As Allentown Goes, So Goes the World

David Olson, President of Walton Consulting, is one of King Edwin's men. In response to Hizzoner's "It's Time to Stand Up For Allentown" missive, Olson sent a mass email to his contacts, entitled "Help the Valley - Help Allentown." Here's what is says.

Friends and colleagues,

As a board member of ACIDA (Allentown Commercial and Industrial Development Authority) and an advocate of the Arena project, I have had a firsthand look at the wonderful and positive impact the Neighborhood Improvement Zone will have on the economic revival of the City of Allentown, and the ripple effect potential on the Lehigh Valley as a whole.

I have attached a letter written by the Mayor of Allentown, Ed Pawlowski, which he has asked me to share. May you please consider reading this and applying your influence in areas that will ultimately have a positive impact on the Lehigh Valley? Thank you!

Since Olson has had a firsthand look and is a consultant and everything, I decided to ask him some questions.

"Since you have so much knowledge about this project, please share the financials with us. Why has the City refused to do that? How much money exactly has ACIDA spent on this project so far? Where did this money come from? How much went directly into J.B. Reilly's pocket? Why was he selected? Why was this opportunity afforded to him and him alone? Does it have anything to do with the $20,000 that he and his partner gave Pawlowski last year?"

Alas, Olson refuses to answer my questions.

Hello Bernie,

I sent a personal e-mail to people I know who are in my contacts. You are not in my contacts.

Best Wishes,

David Olson

Sorry, Dave. My mistake.

Glendale's Hockey Arena Costing City $12.9 Million Per Year

But that can't happen in Allentown, even though the City refuses to release its financial information concerning the project.

Pawlowski Becomes Bottom-Feeding Blogger

We know he can't spell for shit, his grammar is horrible and lots of people hate his guts. So it's no surprise that King Edwin has decided to become a bottom-feeding blogger.

He's even took a flipcam to Israel.

Now that there's a one-square block hole in the ground, Pawlowski Press has surfaced here in the LV Blogosphere. It's Allentown Mayor Edwin Pawlowski's latest attempt to build support for his increasingly unpopular 130-acre Neighborhood Improvement Zone.

By the way, we do say nice things about Hizzoner from time to time. Blogger Community activist Michael Molovinsky, for example, likes Pawlowski's hole.

He even said so on TV.

But Michael's misguided. Now, don't you get the idea I'm demeaning him when I say he's misguided. I just summarized his views and said I felt he is misguided. There's nothing demeaning about that.

Do you like Pawlowski's hole?

Brackbill: As Allentown Goes, So Goes the Lehigh Valley?

Former Northampton County Exec Bill Brackbill asks, in an Express Times guest column, challenges the thesis that the Lehigh Valley's health is dependent on Allentown's health. "In the last 10 years the Lehigh Valley has seen economic growth in spite of Allentown’s decline, thereby negating the premise that as Allentown goes, so goes the Valley."

But this should not be phrased as a suburb v. city issue. It is actually just one greedy municipality taking advantage of everyone else. Bethlehem is no suburb. Nor is an established older borough like Nazareth, which Pawlowski once dismissively referred to as a part of "the boonies of Northampton County."

Emmaus, Bangor, and other older boroughs are just as urban as Allentown. Some have been around longer, too.

Pawlowski's NIZ Talking Points Backfire: More to Sue

Yesterday, I provided you with grammatically challenged "NIZ Key Talking Points" that Allentown Mayor Edwin Pawlowski wants his disciples to parrot to everyone, even their dogs. This follows a somewhat condescending missive to "local officials", located in what Hizzoner likes to call the "boonies." But his PR campaign, which also included the idiotic decision to send circus clown Michael Fleck to the Great NIZ Debate, has failed.

On Monday night, Upper Saucon Township voted to file its own separate suit challenging Allentown's Neighborhood Improvement Zone (NIZ). I am informed that Emmaus and Catasauqua Boroughs voted to sue as well, and will confirm that later this morning.

On top of these three municipalities, I've been told that Bethlehem City Council and Bethlehem Areas School District will take up the NIZ next week.

If all five of these governing bodies join or file their own challenge, that will amount to twenty different municipal governments and school boards.

Hanover and Bethlehem Townships are spearheading the challenge. Other municipal bodies that have voted to sue, in one way or another, include Bushkill, East Allen, Lehigh, Lower Nazareth, Lower Saucon, Palmer, Plainfield, South Whitehall, Upper Nazareth and Whitehall Townships; Hellertown and Stockertown Boroughs; and the Whitehall-Coplay School District.

Finally, the Pennsylvania State Association of Township Supervisors is slated to vote on intervening in the NIZ litigation, either today or tomorrow.

Updated 10:35 AM: At this point, Catasauqua has NOT voted to join the NIZ litigation, according to a borough official. I am still waiting to hear back from Emmaus or its Solicitor.

Updated 2:00 PM: Emmaus, like Catty, has NOT yet voted to join in the NIZ litigation.

Updated 2:35 PM: I just spoke to Jeff Dimmich, whose law firm represents Upper Saucon, Emmaus and Catty. He tells me that he HAS been authorized, by both Catasaqua and Upper Saucon, to sue over the NIZ.  He will be filing his own suit to raise constitutional issues not presented in the original litigation. He questions whether this really can be settled because there is no mechanism that guarantees payment in lieu of taxes, and those are judicially unenforceable.

How to Give a Township Manager a Headache

Jay Finnigan's good side

"Development" is an agenda item for every meeting of Hanover Township's Board of Supervisors. But at their May 8 meeting, Supervisor Mark Tanczos had no action items.

"There is no development in Hanover Township," Tanczos somberly reported.

"Look at the bright side," wisecracked Supervisor Jack Nagle. "We don't have a hole in the ground."

Nagle was referring to the open pit at 7th & Hamilton in Allentown. Slated for a hockey arena, the project has been stalled by litigation being spearheaded by Hanover and Bethlehem Townships.

Township Manager Jay Finnigan, celebrating his 55th birthday, just put his head in his hands, and then told Nagle he was lucky the press was there.

Freeman's Mobile Home Bill Passes State House

State Rep. Bob Freeman's bill to protect trailer park tenants sailed through the state house yesterday in a 190-7 vote. Basically, it requires manufactured housing community owners to provide adequate notification and offer protections and compensation to their tenants when they sell the community to be developed as another use.

Freeman introduced this bill after the Barbosa Trailer Park, located in Bethlehem Township, was sold to a developer without giving tenants enough time to find alternative housing.

"Currently, there are no adequate protections for tenants when a manufactured housing community is sold," Freeman said. "As in the case of the Barbosa Trailer Park, residents should have received more advance notification of the sale and a guarantee of compensation for the cost of moving or losing their homes. This bill would provide those protections for all such sales, while addressing the concerns of both community owners and tenants."

The bill would require manufactured home community owners, when closing the community, to provide at least 60 days notice to tenants, the Pa. Housing Finance agency and the home municipality. Tenants get six months to find another home, as well as some relocation money.
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Freeman claims his bill is a consensus among advocates for residents and the industry itself.

The bill now goes to the Senate for consideration.

King Edwin Distributes NIZ "Talking Points" to His Loyal Subjects

After having his Royal Derriere handed to him in the Great NIZ Debate, Allentown Mayor Edwin Pawlowski has issued a Royal Proclamation to his subjects calling upon them to promote his urban growth regime at the expense of everyone else. He has even provided "NIZ KEY TALKING POINTS" to make sure everyone is on the same page, spinning the same message.

He's dropped Jeff Barber's "cancer" and the Fleckser's "hysteria" claims.

Here's his Royal Proclamation, complete with all the misspellings by which we all know Hizzoner.

IT'S TIME FOR US TO STAND UP FOR ALLENTOWN.

There is much misinformation being propagated concerning the Allentown Areana [sic] development and the Neighborhood Improvement Zone (NIZ). I need your help in geting [sic] the facts out.

Below are some key facts concerning the zone, the city's offer to the suburban municipalities and an Oped [sic] I recently submitted to the local papers.

Feel free to share and reproduce this information on your social media sites, blogs, newsletters and other information outlets.

Talk about this project to your friends, family, neighborhood dog, basically anyone who will listen.

Also if you know any of the local officals [sic] in these suburban areas talk to them and tell them to support Allentown and our region.

We need to stop the rethoric [sic] and get on with the business of building a better Lehigh Valley. To do that I NEED YOUR HELP.

Thanks in advance for your help and support.

Mayor Ed Pawlowski

I love the "stop the rethoric [sic]" line.

Another word for that is democracy. He's not used to that in his urban growth regime.

Here's his talking points.

NIZ KEY TALKING POINTS

Allentown requires something drastic to spur development. The NIZ is a catalyst to drive transformative change, which is necessary to create a healthy urban core and a more successful region.

The suburban municipalities are during [sic] the city over the capture of Earned Income Tax (EIT) which is mandated by the state law. This issue of withholding is being addressed by the City through a proposal that guarantees they will not lose their current earned income tax from their residents working within the NIZ, nor will there be any delay in receiving their EIT.

The NIZ is a finite area of a few square blocks downtown and a couple dozen acres along the Lehigh River – not large enough to have material impact on the Lehigh Valley real estate market. Buildings excluded from the NIZ area include the PPL Tower, County Government Center, City Hall, The Allentown School District Administartion [sic] building, County courthouse and federal courthouse. These are major employment centers which are not in the NIZ thus limiting even more the impact of lost EIT by suburban municipalities.

In addition, to make sure the surrounding municipalities share in the upside of future development projects within the zone, all NIZ developers of commercial office projects will be charged $1 per square foot for occupied office space created in the zone. This fee will be assessed on a yearly basis to create a Regional Development Fund. That fund will share revenue with municipalities and school districts annually (much like the casino-revenue-sharing arrangement in Northampton County) and will be distributed according to the percentage of each municipality’s residents working within the NIZ area.

The proposal by the city will apply to all of the municipalities, regardless of their position in or outside of any lawsuit.

The downside of not settling the lawsuit with the suburban municipalities is the NO ONE WINS. If the suburbs win, (or in the event the case drags on endlessly) the arena and related development may never occur and some existing employers may close shop thus reducing EIT collections below current levels. if people aren't working their not earning income. Someone without a job has a hard time paying any taxes. Conversely if the City wins, taxing bodies get only the EIT not used for the financing and NIZ development. in settling everyone gets something and everyone wins.

MOVEMENT OF OFFICES FROM THE SUBURBS

Putting aside the fact that this has been happening for years (businesses moving from the city to the suburbs) and no one seemed to take notice. Their [sic] has been concern that the NIZ will be such an advantage that all development will move from the suburbs to the city.

An urban environment appeals to a limited number of companies, many prefer suburban.

The creation of the above mentioned development fund will also help address the concern that there would be an unusual movement of office tenants from neighboring communities by placing a $1.00 per square foot additional charge on every foot of space developed in the NIZ.

Suburban Lehigh Valley Class A office space leases for around $16-20/square foot; NIZ Class A office space is leasing for around $13-16/square foot – the rates overlap, hardly the $5/square foot being talked about.

Also withhin [sic] those limited areas, few sites are available for commercial development, and all sites present urban challenges costs.

The Great NIZ Debate: Who Won?

WFMZ-TV 69's Business Matters broadcast the great NIZ debate tonight. Allentown blogger Michael Molovinsky and LU's Dr. Stephen Thode teamed up against NIZ cheerleaders Michael Fleck, Sy Traub and Jeff Barber. (You can see the debate here).

I'm obviously biased, but I'd give this one to Molovinsky and Thode, hands down, both on substance and style.

Fleck, who is being paid both by Allentown Mayor Edwin Pawlowski and the trade unions, came on way too strong, interrupting people and attempted to shout them down. He hysterically used the word "hysteria" nine times. At one point, as he ranted, I thought his crazy eyes would pop right out of his head.

Fleck also contradicted himself.  He alternately claimed that the NIZ is a "first time piece of legislation," but later claimed that other states have NIZs.

He also contradicted the Mayor and Allentown officials. Pawlowski, in his latest missive to country bumkis, claimed there would be 240 FT jobs. An Allentown powerpoint claims 750. But Fleck talks about "thousands" of jobs being poached from New Jersey.
Fleck also claimed that Townships originally were opposed to KOZs. On what planet was that?

Here are some debate highlights.

Michael Molovinsky: "Usually in good government, you have a little bit of due diligence and consensus before you dig the hole."

"I want to start a movement to save the hole. We did very nice with Mayor Heydt's hole. We tore down Hess', we had a hole, it sat there for a couple of years, PPL came in, built the Plaza ... Let's keep Pawlowski's hole."

Steve Thode: "Comparing the NIZ with the casino is like comparing apples and hand grenades."

"All you're doing is reshuffling the deck chairs of the Titanic."

Sy Traub: "This Bill and the NIZ proposal offers the first real opportunity to make a major difference in the redevelopment of Allentown."

"Anytime there's change, there's going to be concern and angst."

Jeff Barber: "This [the displaced merchants] was a bunch of cancer, and we cut the cancer out of Allentown."

Steve Thode: "The people who lived there are going to be happy to hear you called them cancer. Which cancer was the merchants?"

Michael Molovinsky: "This was a classist, almost racist move."

Jeff Barber: "Without a healthy Allentown, you're not going to have a healthy Lehigh Valley."

Michael Molovinsky: "I'm very happy for Mr. Reilly and his children and his grandchildren, but they have to figure out a way that the rest if Allentown can benefit from this project."

Who do you think won?

Updated 9:00 AM: WFMZ-TV69 has a more neutral account of the debate. Reporter John Craven notes that Bethlehem Township Commissioners took no action on Allentown's latest settlement offer. Actually, the offer was rejected on Friday.

Hanover & Bethlehem Townships NIX Allentown's NIZ Offer

Hanover and Bethlehem Townships have rejected Allentown's offer to settle their NIZ challenge. Both Townships are urging the City to keep their EIT, but reduce the size of the NIZ to the downtown area around the arena. Here's a copy of the letter that went out on Friday.


Updated 9:12 AM: Matt Assad's account for The Morning Call is here.
Updated 12:05 PM: Colin McEvoy's account for The Express Times is here.

KIng Edwin Reaches Out to Boonies

Allentown Mayor Edwin Pawlowski once referred to Nazareth, first founded in 1740, as "the boonies of Northampton County." He has a pretty dim view of us country bumpkins. But being an ordained minister, he's condescended to send a massive municipal missive to all the hayseeds in the Lehigh Valley, explaining why the NIZ is just what we need.

What is (sadly) unremarkable is that Ed is so accustomed to "rubber stamp rule" in Allentown that he projects every other public official to be equally sycophantic to his ambitions.

What is remarkable is the poor legal advice he is getting. These empty efforts to "settle" will hardly play well when, as I suspect, the law is ruled unconstitutional and reopened for modification.

This reminds me of "Barbarians at the Gate" when the Chairman of the Board of RJR Nabisco informs CEO Ross Johnson that his bid for the company has been rejected. "You were just too greedy, Ross. The board couldn't stomach it."

There is now blood in the water, and Allentown may very well end up with a lot less than it might have gotten had it been less greedy.

State Ass'n of Township Supervisors Intervening in NIZ Litigation?

According to an email being circulated among Township officials, The Pennsylvania State Association of Township Supervisors has reportedly changed its internal rules so that it can directly intervene in the NIZ litigation.  i Just received this information, and will attempt to confirm tomorrow.

DeSales To Host Forum on NIZ Ethical Questons

Of course, the ethics of this venture probably should have been discussed before the 2009 law was enacted, but better late than never. Is it ethical to divert state resources from children's health programs to help turn millionaire J.B. Reilly into a billionaire? Is it ethical to enable developers like Reilly to offer reduced rents to other Lehigh Valley businesses, and at a time when Bethlehem's Martin Tower sits vacant? Is it ethical for all these NIZ developers and other beneficiaries to be so involved in financing the campaign warchest of Allentown Mayor Edwin Pawlowski? Is it ethical to refer to the merchants displaced for a new hockey stadium as a "cancer"?

Hopefully, these and other questions will be asked during a DeSales University breakfast forum about the ethical implications of the NIZ on June 7, called Who Is My Neighbor?

You practically have to be a millionaire to attend. It's $25 a pop. But it might be worth it. J.B. Reilly will be there for a Q&A session.

Last Week's NIZ News at a Glance

According to the Urban Dictionary, a NIZ is a "cool guy." But here in the Lehigh Valley, the NIZ is Allentown's 130-acre Neighborhood Improvement Zone, consisting of 40-acres in the City's downtown and another 90-acres along the riverfront. It's the result of a 2009 law introduced by Senator Pat Browne in 2009. It's how Allentown will pay for hockey. All state taxes and EIT generated within this district can be used to finance the costs of improvements like its downtown arena.

Hanover and Bethlehem Townships, upset that they were never even told about this tax grab, have challenged the 2009 law in Commonwealth Court. Ten municipalities have voted to join them, and developer Abe Atiyeh has filed a separate suit.

Last week's NIZ action - fast and furious - was crammed into Thursday and Friday.

The Great NIZ Debate. - Business Matters, a WFMZ show hosted by Tony Iannelli, hosted a 5-person debate concerning the NIZ that was almost as controversial as the NIZ itself. Michael Fleck, Mayor Pawlowski's campaign consultant and a trade unions consultant, refused to appear unless I was disinvited. Allentown's DCED Director, Sara Hailstone, decided at the last minute that she was unable to appear because of the pending litigation. But her replacement, ANIZDA chair Sy Traub, would have the same problem. Halfway through the show, Traub was replaced by Lehigh Financial Group's Jeff Barber, who dismissed the businesses displaced by arena demolition as a "cancer."

The show airs tonight on WFMZ-TV's Business Matters, 8 PM.

A Nuts and Bolts Presentation. -  In stark contrast to the fireworks on Business Matters, Northampton County's Eeconomic Development Administrator, Alicia Karner, provided a neutral presentation to Northamptn County Council's Economic Development. She indicated the downtown NIZ will increase downtown office space between 350,000 and 500,000 sq ft. There will also be up to 100,000 sq ft of retail space. The project will produce approximately 750 full-time jobs.

Taxpayers Spending $667,000 per Job.- The downtown NIZ arena will be financed by a $220 million bond. The debt service and renovations over thirty years will cost around $500 million. Doing the math, taxpayers will spend $667,000 for each of the 750 permanent jobs created.

Asked for comment, Allentown DCED Director and Interim ANIZDA Exec Director Sara Hailstone has  declined to respond.

Transparent and accountable as always.

ANIZDA might consider Anti-Poaching Guidelines. - In a brief Thursday meeting, Allentown Neighborhood Improvement Zone Development Authority Chair Sy Traub suggested reducing the tax concessions available to Lehigh Valley businesses that move within the NIZ. But no action was taken on his proposal, and only minor changes were made to development guidelines.

Northampton County Council Takes a Stand. -  In a 5-4 vote, Northampton County Council adopted a resolution calling for a repeal of the NIZ legislation legislation.

So Does Upper Milford Township. - Unanimously, Upper Milford Supervisors condemned the NIZ, but stopped short of joining the litigation.

Townships Respond to Allentown's Settlement Offer.  Broughal and DeVito, the law firm representing Townships in their constitutional challenge to the NIZ legislation, has responded to Allentown's settlement offer. Have they accepted or rejected a proposal that would allow Townships to keep current EIT and share in a development fund? So far, mum's the word. But that won't last long.

Stay tuned.

(Updated 7 AM, to note Upper Milford's opposition.)

Bury My Heart at the Wounded Warrior 5K

Heartless bastard confirmed!

Actually, that's the one thing the paramedic from Cetronia Ambulance was unable to find. I have no heart, which explains why I'm a blogger. But even a heartless bastard like me was unable to resist a 5k to benefit our local veterans and their loved ones.

Keystone Wounded Warriors, an organization that honors the sacrifices made by our men and women in the military, hosted today's first-ever Wounded Warrior 5k in Upper Macungie's Lone Lane Park. Over 300 people participated and were rewarded with water, bananas and ... hot dogs.

Race coordinator Sam Johnson, who runs Allentown's Marine Corps Reserve Center, was "ecstatic" about the turnout. Race proceeds will help Pennsylvania's returning vets make the transition into civilian life.  

Alvin the tool dog

Alvin the tool dog, a 3 year-old Golden Retriever therapy dog, ran the race. He's famous for fetching different tools. I caught him in the third mile, where I shouted, "Go get the screwdriver!." Alvin dragged owner Steve Hujsa off the course and I slipped by them both.

All's fair in love and 5ks.

But one runner I was unable to catch was Breinigsville's 10 year old Drew Kloss. In his first ever race, he finished in 26:28, about 30 seconds ahead of me.

"How did you do it?" I asked.

"Probably my mom," Drew responded, as he and his sister chowed down on very healthy hot dogs and potato chips.

You could tell this was a military 5k. The flat course was clearly marked about every three inches, and the volunteers all called me "Sir," which caused me to turn around a lot.  

You don't have to run these 5ks. You can walk, and most of you will probably beat me.

NIZ Will Cost Taxpayers $667,000 Per Job

My NIZ in a Nutshell post reveals that the downtown NIZ will produce 750 jobs. With a projected $220 million bond for the arena complex, and a debt service of around $500 million, Doc Roc aptly observes that we'll be spending about $667,000 for each job created.

Does this make sense?

Blogger Michael Molovisnky notes that even this figure is low. The arena bond is only the first of many bonds to be floated. But only 750 jobs will be produced in the downtown NIZ

Repeal Allentown NIZ, Sez NoCo Council

Northampton County Council has added its voice to the chorus of municipal governments opposed to Allentown's Neighborhood Improvement Zone (NIZ). Despite pleas from Allentown DCED Director Sara Hailstone and NIZ developer J.B. Reilly, a sharply-divided Council decided, in a 5-4 vote, that the economic development tool gives Allentown an "unfair economic advantage" at the expense of other Lehigh Valley municipalities. It calls on the state legislature to repeal the 2009 law under which it was created.

Allentown's NIZ is a 130-acre tract (40 acres downtown and 90 acres along the riverfront) set aside for redevelopment in legislation that applies only to the Queen City. Virtually all state taxes, as well as the EIT of workers within the NIZ, will be used to help finance a hockey arena, luxury hotel, offices, parking garages and other improvements.

A legal challenge to the constitutionality of the NIZ, spearheaded by Hanover and Bethlehem Townships, has attracted a baker's dozen of local municipal government. Developer Abe Atiyeh has filed a suit as well.

Council also heard from LU Professor Steve Thode, who was there on behalf of around 50 local developers. Thde suggested the NIZ should be smaller.

Ron Angle, from the peanut gallery, thundered that Council should have joined the litigation. He called the resolution "great grandstanding, but not where you get results."

Ken Kraft, a trades union business agent representing many of the union workers who will be doing the construction, refused to disqualify himself. Council Solicitor Phil Lauer ruled there was no conflict despite my objections.

Like Kraft, Lamont McClure voted against the resolution as well. McClure said he'd prefer to sit back and "watch how this plays out."

(Translation: I don't want to piss off the unions.)

Scott Parsons appears to have voted against the resolution because it does not go far enough. "We need a seat at the table," he stated. "We should take a leadership role." Parsons likened the NIZ to "spot zoning."

As Kraft and McClure were swayed by the unions, Peg Ferraro voted NO because of her love for bluebloods. After all, she just had lunch with J.B. Reilly. "I think Allentown needs help," she stated.

Barb Thierry, who sponsored the resolution, spoke about an uneven playing field. Bruce Gilbert complained there should be a NIZ in every city. Bob Werner condemned the entire process. "Th mechanism this was built on is wrong, dead wrong," he stated.

But Council president John Cusick, who has spoken forcefully against the NIZ before, told his colleagues they wre missing an even bigger point. At the same time that the state is proposing drastic cuts for human services, it is diverting millions is state revenue "that will exclusively benefit one city and a few developers."

NIZ in a Nutshell

While I was covering the ANIZDA meeting in Allentown yesterday, Northampton County Economic Development Administrator Alicia Karner was explaining the NIZ to Council's Economic Development Committee. It's a neutral presentation of th NIZ in a nutshell, and she was kind enough to forward it to me, so I can share it with everyone.

NIZ Board Considers, But Does Not Adopt, Anti-Poaching Measures

Sy Traub

During a brief meeting yesterday afternoon, Allentown's newly formed Neighborhood Improvement Zone Development Authority (ANIZDA) unanimously adopted development financing guidelines for projects within the 130-acre zone.

They're basically identical to procedures previously approved.

NIZ Development Guidelines Discussed

Before its unanimous vote on NIZ development guidelines, Chairman Sy Traub acknowledged the concerns of many municipalities and LV developers about poaching. "We have heard the concerns about other businesses moving into the NIZ."  He acknowledged the disquiet over the possibility that the Neighborhood Improvement Zone (NIZ) creates an uneven playing field in which tenants from other parts of the Lehigh Valley can be lured in by cheaper rents.

Traub insisted that the purpose of the NIZ is "to redevelop Allentown, not to hurt others." He suggested development guidelines should be "altered somewhat" by reducing the tax concessions available to a Lehigh Valley-based business that moves into the NIZ.  He expressed a desire to "minimize any harm for others in the Lehigh Valley."

But are Traub's concerns shared by other members of the Board?

Alan Jennings, the only other Board member who really did any speaking at all during yesterday's meeting, seemed to question Traub's proposal. "Should we use our authority to level the playing field for poaching from South Whitehall Township, but not New Jersey?" Jennings asked.

Neither Traub nor any other ANIZDA Board member offered any amendments to the NIZ guidelines tat actually addressed his concerns. Whether he intends to do so is unclear.

Riverfront Redevelopment a Long Way Off

In addition to approving NIZ guidelines, interim Executive Director Sara Hailstone provided a very brief overview of the riverfront, where 90 acres of the 130-acre NIZ is located. She told board members that the City intends to "open up the riverfront for use by the public." But whatever happens, it won't be soon.

Hailstone and Sy Traub both stressed that very little - around 27 acres - of the riverfront is actually developable.

A PPL power station at the riverfront, located next to Bucky Boyle Park, would cost at least $40 million to move. The America on Wheels Museum and Bucky Boyle Park would also remain untouched by developers.

"We have no intention of taking that park away," stated Hailstone. "We will actually add to it."

Hailstone and Traub both pointed out that the Iron Mountain data storage facility, also located along the riverfront, is under a long-term lease making development impossible.

That leaves the 27-acre Lehigh Structural Steel area. But even that is "years away from development," according to Hailstone. She noted that there are several leases, ranging from 3 to 10 years, at that site.

Alan Jennings

Township Litigation

Before adjourning into a closed-door meeting to discuss a NIZ challenge being spearheaded by Hanover and Bethlehem Townships, Traub outlined a settlement offer made by Allentown, which involves a return of current EIT and a revenue sharing plan for development outside of the immediate arena area.

"That is what's on the table," Traub announced. It should address a substantial amount of the concerns, if not all the concerns, that the municipalities have." Traub added this offer is available to all municipalities, regardless whether they are part of the NIZ litigation.

Although Traub attempted to be conciliatory, Alan Jennings was more strident. "Can we deduct the damages caused by those municipalities which have sued us?" he asked.

Housekeeping

The ANIZDA also took care of some housekeeping matters. It approved a $1 million liability insurance policy for an annual premium of $2,200, which will be fronted by the City. It will start selecting its own Solicitor, distributing requests for proposals (RFPs) to what Traub called "worthy law firms." Finally, at the insistence of Alan Jennings, Allentown Assistant Solicitor Frances Fruhwirth was identified as its Right-to-Know officer.

It's an 8-member board, thanks to the recent resignation of Lehigh Carbon Community College's Don Snyder. In fact, most of the meeting was dominated by discussion about how he'll be replaced.

ANIZDA's next scheduled meeting is on June 3, 5 PM, at City Council chambers.

Who Won the Great NIZ Debate?

Fleck in Hanover, where he orchestrated union invasion

I'm nizzy from all the NIZ news on Thursday.

Unless you've been living on Neptune, you probably know the NIZ is Allentown's 130-acre Neighborhood Improvement Zone, the only one of its kind in the country. All state taxes and EIT generated by businesses inside that zone can be used to fund improvements like a hockey arena, luxury hotel, office space and parking garages.

Created by a 2009 law that could only ever apply to Allentown, the NIZ is unpopular with surrounding communities because they will lose the EIT generated by their residents working inside the NIZ. It's also unpopular with office building developers because it creates an uneven playing field in which their tenants can be poached to move into the NIZ, where the rents are cheaper.

Yesterday afternoon for WFMZ's Business Matters taped the Great NIZ Debate. The show airs Monday night, 8 PM.

As a disinvited panelist, I thought it would be bad form for me to show up and cover the event. But The Morning Call's Bill White and Matt Assad were both there.

Dr. Steven Thode, director of the Murray H. Goodman Center for Real Estate Studies, teamed up with Allentown blogger Michael Molovinsky. They both oppose the NIZ in its current form. Thode and Molovinsky tangled with three NIZ cheerleaders:  Allentown Mayor Ed Pawlowski's campaign consulant and paid trade unions consultant Michael Fleck;  Allentown Neighborhood Improvement Zone Development Authority (ANIZDA) Chairman Sy Traub; and NIZ realtor and financial maven Jeff Barber. Tony Iannelli, who hosted the debate, is pro-arena and a regular Edwin Pawlowski campaign contributor.

Traub claimed that Pawlowski had sent him because Hizzoner wanted someone with more knowledge about the NIZ than the Fleckster or Fleck.

On Monday night, we'll see for ourselves who won this debate. But her's what I've been able to gather, which is strictly second hand.

Mike Fleck constantly interrupted other people, called Thode "insane", and said "he could care less" if Trexlertown becomes a ghost town.

Fleck tried to compare the NIZ to the casino, at which point Thode responded, "You are comparing apples to hand grenades."

The casino is actually the anti-NIZ. Bethlehem shares revenue with numerous other municipalities, including an annual $4.5 million payment to Allentown. But the NIZ, in contrasts sucks money and businesses from other municipalities.

Sy Traub left after the first half of the taping. Everyone I have spoken to tell me that Tony Iannelli's fast-paced style was too much for Traub, who came off like a deer caught in the headlights. His heart was clearly not in it. When Dr. Thode held up a carton of cigarettes to illustrate what a windfall the cigarette tax would be for the NIZ, all Traub could say was, "That's not true." He had nothing to back it up.

Jeff Barber replaced Traub after "halftime." After his "God, I love Allentown" speech, Molovinsky challenged him on the tenants displaced from the NIZ. Barber came off like a racist (something about "those people" not maintaining their properties) and Molovinsky called him on it.

Molovinsky was low key, and from what I'm told, came across as the voice of reason.

Go figure!

Will Cunningham Take Reins at LVEDC?

In the 2013 Bethlehem Mayoral race, many think that Council member Bob Donchez will square off against his friend, Lehigh County Exec Don Cunningham. As a popular two-term Mayor, Cunningham held the City together throughout the turbulent years that followed the demise of Bethlehem Steel. But Donchez, a former teacher and son of a police detective, has consistently been high vote getter in the last few races.

But will Cunningham really run?

Lehigh Valley Economic Development Corp. is looking for a new CEO. According to inside sources, it has narrowed its list of candidates to just two people.

One of them is Don Cunningham.

Hailstone To Be Replaced by "Wise Guy" At Great NIZ Debate

Jeff Barber, Wise Guy

Allentown's DCED Director, Sara Hailstone, has decided, at the last minute, to decline to participate in the Great NIZ Debate.

This debate, which will be taped today at WFMZ's Business Matters, originally featured Hailstone and Michael Fleck, who is the Allentown mayor's campaign consultant as well as a shill for the Lehigh Valley building trade unions.

In view of pending NIZ litigation with surrounding municipalities and developer Abe Atiyeh, municipal attorneys have wisely counseled Hailstone to stay out of the arena.

She'll be replaced by NIZ cheerleader Jeff Barber. He's the President of Lehigh Financial Group, has a realty office and also is a partner at Wise Guys Beer Depot, located at 209 W. Union. Barber claims that this demonstrates he's "very civic minded."

I doubt Barber is really a "wise guy." But one of his two Lehigh Fnancial colleagues, Gary Chromiak, spent a year in federal prison after helping Michael Solomon get illegal kickbacks from Northampton County in 2002. So he's got that going for him.

Fleck's benefiting personally from the NIZ, too.

He recently herded about thirty trade union members to invade Hanover Township and pressure Supervisors to drop their NIZ litigation. This lawsuit, filed in Commonwealth Court, challenges Allentown's tax grab of EIT for a hockey arena and other improvements.

Supervisors listened politely to union workers, but were unswayed.

Union pressure is less effective in suburban communities as it is in one-party Allentown.

But Fleck is getting paid anyway.

Unlike paid NIZ advocates, nobody is paying Lehigh University's Dr. Steven Thode a dime for his opinion. Thode recently facilitated a meeting among developers who are concerned that Allentown's 130-acre NIZ will destabilize the tax base, resulting in real estate tax increases for residential home owners. He also participated in a Morning Call Point and Counterpoint.

Thode warns that the NIZ, which gives Allentown and a few favored developers, special preferential treatment at the expense of everyone else, is a death knell to regionalism.

Fundamentally, the NIZ is likely to greatly diminish cooperation among Lehigh Valley cities and municipalities in promoting the Lehigh Valley as a region. The NIZ is the first volley in, sadly, what will likely become an "every municipality for itself" mentality. That could have a devastating effect on job growth and the quality of life for everyone in the Lehigh Valley.

Originally, I was going to be Dr. Thode's tag team partner, not that he needs one. But Fleck, who knew very well that I'd be connecting the dots between him, unions, Mayor Pawlowski and campaign contributions, objected. So I've been replaced as a panelist.

After today, Fleck might regret that decision. I've been replaced by blogger Michael Molovinsky. He's been writing about this topic long before anyone.

He's not being paid a dime by anyone, either.

And unlike the other participants, he's the one panelists with deep City roots.

I'm told The Express Times will cover the debate. I was invited to cover it, too, but I think it's bad form for me to show up after being disinvited as a panelist. I look forward to hearing and reading the acconts, and then watching the show on the 'Net.

LVEDC Tries To Explain Summer Hours ... Again

Last year, a Lehigh Valley Economic Development Corporation (LVEDC) tweet about Friday Summer Hours, in the midst of a recession and increasing unemployment, really bothered a lot of people adversely impacted by the economy. After all, our tax money helps support LVEDC.

As I mentioned yesterday, it's that time of year again. Instead of a Facebook tweet, LVEDC's Vice President of Regional Development, Pete Reinke, sent an email blast about 19 weeks of Friday afternoon golf, at 19 different courses.

After getting wind of this story, the Express Times contacted LVEDC and was told this was a private email.

Really?

Reinke's LVEDC email address is PReinke@lehighvalley.org. That's the email address he used to send his "private" email. The email was sent to all members of LVEDC's publicly funded staff. At their official email addresses.

Another LVEDC VP, Steve Melnick, used his LVEDC email address to send a "private" reply.

Reinke also used his LVEDC email address to contact public sector employees, at their public sector email addresses. These include over 100 employees of Northampton County, Allentown, Lehigh County, Easton, Bethlehem, and even New Jersey. In addition, this "private" email went to numerous employees of other publicly funded nonprofits.

I have not identified these publc sector employees because they have no control over who sends them an email blast.

In addition to using his LVEDC address, Reinke also lists his LVEDC phone number and LVEDC fax number for replies.

In addition to repeating the same exact mistake it made last year, LVEDC is compounding its folly. Just like it did last year, it's making up bullshit excuses after getting caught.

Incidentally, Summer's not here yet.

This must be Spring Hours.

Bottom-Feeding Blogger Disinvited to Great NIZ Debate

This morning, I told you I'd be Dr. Steve Thode's tag team partner in the Great NIZ Debate, which will be taped for Business Matters tomorrow. But in the span of a few short hours, I've been disinvited.

Pro-NIZ Michael Fleck a paid union trades consultant and campaign manager to Allentown Mayor Edwin Pawlowski, is one of the combatants. He has called Business Matters to say that if I'm there, he won't be.

He knows that I'd certainly point out who butters his toast.

His tag team partner, Sara Hailstone, would presumably refuse to appear as well. At least that's what the folks at Business Matters seem to think.

So rather than have no show at all, or a one-sided NIZ debate, I was disinvited.

Sic transit gloria mundi. 

I suggested Michael Molovinsky as a replacement, but Fleck might have the same objection to him. He's a bottom-feeding blogger, too.

Updated 1:52 PM: Michael Molovinsky has agreed to take my place.

Super Full Moon This Saturday

... according to Newsworks. The trolls will be out in force.

LVEDC Announces the Return of Summer Hours

Last year, a Lehigh Valley Economic Development Corporation (LVEDC) tweet about Friday Summer Hours ignited a firestorm.

"We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?"

The notion of a publicly-funded economic development engine hitting the links in the midst of a recession is a tad insensitive.

Not only did the tweeter take the heater, but LVEDC CEO Phil Mitman eventually resigned, too.

Guess what?

Fore!!!

Pete Reinke, LVEDC's VP of Regional Development, just sent this email blast out to all LVEDC staff, public employees and numerous LV Movers and shakers:

It’s that time of the year!
Friday afternoon golf. Starts this week.
This year’s theme: 19 courses,19 weeks, plus the ever important post round 19th hole.
Each course can only be played once, so suggest a course and a week to play it, or I will pick.

This Friday-Beth Muni: 136,144,152.
Who wants in!
Tell me who to add to this list or tell me if you want to be removed

Seve Melnick, VP of Entrpreneurial Development at LVEDC, has already responded, "I'm in".

These guys just don't get it, do they?

If you want to see your tax dollars at work, drop by Bethlehem Municipal Golf Course on Friday to see how many public employees are working on their handicaps.

Is Farmland Preservation On Way Out?

Northampton County usually has about thirty farms on a waiting list for farmland preservation dollars. But this year, farmers are actually reluctant to apply, according to Farmland Preservation Board member Ron Angle.

Low appraisals, a stagnant economy and Lower Mount Bethel Township 90-10 Ordinance are the reasons, according to Angle.

He predicts that next year, a state government looking to make cuts will eliminate the program completely. "It's luxury compared to human services," Angle told me.

Dr. Thode's Tag Team Partner in the Great NIZ Debate? ... Moi

Yesterday, I told you that Tony Iannelli will be hosting a NIZ debate during a Thursday taping of WFMZ's Business Matters.

From Lehigh University, weighing in at 160 lbs, Steve (the Doctor) Thode will square off against a pro-NIZ contingent consisting of Mike (the Fleckster Wrecker) Fleck, Sara (Celtic Thunder &) Hailstone and Iannelli himself.

They don't stand a chance.

Last night, I received a desperate call from a Business Matters producer. Looks like the Bombastic Blogger, yours truly, will now serve as the Doctor's tag team partner.

One of my fans has already commented, "How can someone like you, with your baggage be a credible person on this show?"

Good point, but look at our opponents.

Good News on State Budget Front

April revenues are $40-$50 million above estimates, according to The Citizens Voice. The revenue deficit has shrunk from $700 million to $350 million.

Ayn Rand's NIZ Commentary

"When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see money flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a selfsacrifice - you may know that your society is doomed." - Ayn Rand, Atlas Shrugged (1957).

She saw saw the future of society - quite specific to Allentown - in 1957.

The Great NIZ Debate

This Thursday, Lehigh University's Dr. Stephen Thode will debate the NIZ at a Business Matters taping, hosted by pro-NIZ Tony Iannelli.  In addition to going up against the moderator, Thode will face Mike Fleck, Allentown Mayor Edwin Pawlowski's campaign consultant. For good measure, NIZ cheerleaders will add Allentown's DCED Director, Sara Hailstone.

This doesn't seem like a fair fight.

There should be at least two or three more pro-NIZ people ... if they can find them.

Don't know when the show will air, but it should be a hoot.

Is The Morning Call Deceptive In Its Billing Practices?

I first met Paul Muschick when he covered Northampton County government for The Morning Call. He was a terrific reporter. I could never guess what he was thinking. His stories were always accurate and objective. No bullshit. Just the facts.

;Now he's been doing a great job as The Morning Call's Watchdog, investigating scams and unethical business practices. But can he investigate unethical business practices at his own paper?

A friend of mine claims the paper has "stooped to new lows" in its billing practices. Here's his story.

I received my new statement the other day and it seemed normal until I looked closer. My previous statement was for the period from Feb 24th thru May 17th. My new statement was for the period from May 9th thru July 17th. The start date for the new billing period was 8 days earlier than the end of the previous period. The price went from $60.60 to $59.90. A decrease in price of $.70 made no sense and upon further review, realized that the subscription went from a 12 week period down to 10 weeks. This amounted to a 18.9% increase. The subscriptions used to be for either 13, 26, or 52 weeks. I am not sure when it went from 13 weeks to 12 weeks but believe it was back in 2010. So within the period of two years the price has gone up 30%. When I called the Morning Call about the earlier start date, I was told that there was a price increase and the Customer Service Rep immediately said that he would correct the date. Whoever heard of a price increase during a fixed subscription period? It seems that the MC made a conscious decision to slip in the price increase to existing subscriptions and back off if anyone called them on it. I wonder how long the MC can stay in business when you see this type of behavior. I also wonder how many unsuspecting subscribers are out there. It is easy to miss the reduction in length of the subscription or the increase in price to a previous one. Most people just look at the amount of the bill and really don’t look at the details. Since the amount of the bill really hasn’t changed much, it is easy to miss what had happened. I don’t have a problem with anyone raising their prices, but when it is buried in the details such as this, I find it very disgusting. If you do a story on this, please do not use my name.

Whether it's tax grab for the NIZ or a rate hike for a daily newspaper, people like to be (1) told what is going on; and (2) asked if it's OK.

I'll forward this complaint to Paul. Don't know if he can ethically investigate the ethics of his own newspaper, but if it is some honest mix-up, he can probably tell us.

Updated 9:00 AM: The author of this email is unable to identify himself, but how about you? If you are a Morning Call subscriber and have had an experience like the one mentioned, Paul Muschick has told me he'll look into it. you can contact him at PMuschick@mcall.com.