Feb 1, 2013

Remaining Merchants Pay For Reilly's World

Pat Browne is confident that 2012 is the only year in which the Arena Authority will have to dip into the base state tax, I'm confident it is not. Browne's excuse for breaking the promise not to use those funds was the delay caused by the lawsuit, filed by the surrounding municipalities not wanting to pay for J.B Reilly's real estate empire. Of course they also were promised that their taxes would be returned. Sy Taub, Authority Chairman, said it stands to reason that during the period of the hole, before revenue starts pouring in from completed construction, that there would be a shortfall. He has more confidence in the pending success of both the Palace of Sport and Reilly's Office World than I do. They used up the taxes of the small merchants this year because the NIZ law allows them to do so. Expect more broken promises and excuses in the coming years.                                                                         commentary based on Morning Call report by Scott Kraus and Matt Assad

15 comments:

Anonymous said...

I think the article today said the ANIZDA decided to pay off some early development bonds ahead of the due date to minimize costs? If they had to make payments(under original EIT law) to municipalities the early paydown would not have occured. Sounds like a simple decision on when to make payments on the debt.



michael molovinsky said...

@10:08, the $7.3 million was used as partial payback toward the $35million loan from National Penn. These funds were used pre-construction, and have no bearing on the bond debt. it's apparent that the surrounding municipalities read the tea leaves correctly, which you haven't.

Anonymous said...

It is very interesting on how out of touch a South Whitehall and former Mayoral candidate can be. The article clearly states that that funds that were used to "retire short-term loans issued by National Penn Bank and secondary lenders to jump-start arena construction". This would have never been the issue if the suburbs had sued. Since they did, the authority took the next best financial route to save the city from future costs. But in your very one sided mind that the city can't do anything right you see it has it is always going to be a failure. Why don't you do a post on how Patrice Sodiene(sp) and the owners of NY fashion are failing? The rhetorical answer why, is that they are not. Patrice is thriving her new location in Emmaus and NY Fashion is doing better then ever on their new location on 7th St. If you are so concerned about the small business owners, why do you not talk about their success's post NIZ? Is it because you hate anything the administration has done since you received 3% of the vote? Or is it because you are a man in is 60's you looks forward to the day when Hess's returns?

michael molovinsky said...

it's unclear to me because of the time of your comment, if you're the mentor, the mentor's wife, or their student. never the less, i print your garbage because it raises a good point. that loan by national penn was made well before the lawsuit by surrounding municipalities. it was made to jump start the construction, but also provide j.b. reilly seed money to acquire real estate in the adjoining blocks, and acquire he did. so although pre-bond money was spent, there was no new revenue stream for payback. there still is no stream, nor will there be to at least 2014 by their own admission. the lawsuit provided an excuse, not a reason to use the base tax. the salon may be doing better in emmaus than on 8th street with her suburban clientele, ny fashion is doing less on 7th than it did on hamilton. other merchants fared much worse; one on hanover ave. isn't making rent. now get back to your cyberstalking, that's a full time job you got there.

monkey momma said...

Any reasonable business person planning such an extravagant piece of development (and corresponding legislation) would have seen the lawsuits coming long before the first suit was filed. I'm surprised it took municipalities and developers from surrounding areas as long as it did to file suit. So, it's rich that Brown and company act as if the lawsuits threw a wrench in their plans, when they should have seen them coming from the beginning.

Now I'm waiting for the state to realize what happened here in Allentown. And I'm also waiting for Allentonians themselves to realize we now have a hole in our own city's budget for police and road repairs. We are actually losing money in the city for the basics for this arena this year.

This article in the Call was not featured prominently, and this morning it is not even on their "front page" of electronic news - I had to search to find it. Seems odd that the paper isn't howling about this outrage.

Anonymous said...

PALUMPA, here we will give you this much money for your property, but you have to by this one for more money than we will give you¿ Than we will give you federal grants to help cut your costs of relocating.

Is this even etihical for the administration to be in on realastate deals paid for with revenues generated and federal grants put in place to set up start up for new shops¿ Since you mention 7th st how come the lehigh county DA is not arresting someone in allentowns now defunt engineering for the One Million Dollar mistake for the lights on 7th¿

REDD

Anonymous said...

I can remember when Mayor Pawlowski shot his mouth off about the fact that his magnificent Palace of Sport WOULD draw 2,500,000 visitors ANNUALLY.

I wonder if the fearless leader inthe City With No (Spending?) Limits realizes the ADIRONDACK PHANTOMS are currently running 14th out of 15 teams in their conference ... and WILL BE missing the playoffs for the FIFTH consecutive season?

I mean, even if the Phantoms sell out every single regular season home game, I wonder if the Mayor has figured out yet that such a 100% attendance record would still only add up to less than 350,000 people?

And, there are not that many playoff games even if the Phantoms did advance to the Calder Cup Final every season.

So, I sincerely hope Mayor Pawlowski can remember where he was planning on coming up with another 2,000,000 plus more cash-paying customers ... PER YEAR.

Because I have absolutely no hope that General Population in the People's Democratic City can remember when the "transformative" Palace of Sport was only supposed to cost $ 80.0 million dollars.

Since I have posted the releveant articles from The Morning Call here previously, must I, once again, re-post the actual articles from The Morning Call to back up my "outlandish" statements?

Respectfully,

ROLF OELER

ALFONSO TODD said...

MM, I spoke to Patrice Sidione yesterday and while people like to crow about how successful her establishment is in ANOTHER area, (unsure why people are happy that a former business tax base is helping a different town) they are not considering that she, as well as other businesses, NEVER wanted to move and were part of the A-town fabric of businesses that invested in our area way before it was thought to be fashionable and deserved better treatment that they received...

ALFONSO TODD

We CAN Do Better...

www.votealfonsotodd.com

michael molovinsky said...

alfonso, that particular comment was from the cyberstalker, who in reality could care less about the arena. his agenda is to attack me (and you're also on his list). considering his attacks have grown to include local clergy, i would doubt if pawlowski will again agree to a question and answer session with him this election cycle. the real public seems indifferent to the arena, except there is consensus that it is in the wrong location. i suspect that there would be actual outrage if they knew (or cared) about the details.

PresentAllentownParkAttendee said...

Alfondo wants no part of the blog mentor but apparently you do Mike. Duly noted...

michael molovinsky said...

mr. villa, while you insult and harass people from early morning till late evening, any mention of your despicable behavior results in thinly veiled physical threats; they will eventually earn you the arrest you so clearly deserve.

Anonymous said...

You asked for it Mike.

Anonymous said...

You asked for it Mike.

Anonymous said...

Just shameful how you've provoked that brave family.

michael molovinsky said...

villa, you're not brave; you're a coward, harassing and threatening people anonymously for not taking your cyber-bullying in silence.