It's difficult for the straight laced, and the main stream media to acknowledge the sleigh of hand occurring in the NIZ. Officially, the residential units were not supposed to reap the developer the state tax flow, as in commercial and retail. Reilly is now interested in building a third Strata Flats on the Parking Authority lot at 6th and Linden. The Parking Authority apparently will continue its practice of neglecting the public good, by allowing chosen developers to build on it's surface lots. In this case, the lot served the art and music community. While the first floor of the new building will contain retail, how much of the project can utilize the NIZ financing is the question of this blog post. Supposedly, corporations have rented apartments in Strata 1. That is the explanation for the dark units in a building supposedly full. One must wonder if the tenant is a corporation, are state taxes from that tenant to be used for Reilly's debt service? We do know that the entire NIZ is neither monitored or scrutinized. * Between the ANIZDA in Allentown, and Pat Browne in Harrisburg, there's nobody watching the henhouse.
Between the lines, apparently the commercial demand has waned; Its been a long time since Reilly managed to poach a commercial tenant from somewhere else. I suspect now that somehow the taxes from the residential tenants are being harvested.
* Reilly told the Allentown Parking Authority that $1million in NIZ tax funds would be used annually for the project. Apparently, Reilly now makes these decisions directly, instead of just telling the ANIZDA puppets what to say.
What I found to be even more unique is the role of the Parking Authority in handing over money to a private developer on a speculative real estate project.
ReplyDeleteIs such a role even in their charter. If they had 5 million to invest, I'm sure they could do better than an apartment building.
geoff@8:01, agreed, the concept of the parking authority partnering with reilly in an apartment house is astounding. it shows how far the authority has swayed from their public mission. it also illustrates how much control over city matters reilly has amassed.
ReplyDeleteThe fact that the PA has to do the borrowing is also interesting. I would think Ms. Opilo might be able to dig deep on that question. Credit hasn't been an issue before.
ReplyDeleteThe other option is that the PA essentially gives the land for free to City Center, and reimburses itself with borrowed money while getting equity in the project to even things out for the accounting side. Also a rather reckless act for a commission that is supposed to produce income streams, not stock in real estate.
Let's hope Penrose gets the job. Just what the new Millennial and 'empty nest' Nizers need is some low-income neighbors. Then watch to see what happens to those $1,500 a month rents.
ReplyDeleteAlso, if those apartments were really loaded with empty nesters don't you think Matt Assad would have don't a prize-winning series on them by now? I can read the headline now: "NIZ a Great Location for Fired Air Products Staff"
george@6:09,, what could be more politically correct than mixed income housing. perhaps singing kumbaya together?
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