Yesterday The Morning Call came out with their annual NIZ sleight of hand report. It states that the NIZ is a success, because in addition to generating the taxes that center city paid previously to the state, it earned an additional $53 million, which was used to pay $20 million for the arena and $33 million to J.B. Reilly's privately owned, but publicly financed real estate empire.
This year's report is written by a different reporter, because the previous one spun so well he is now working for the tax funded county development agency.
What the report doesn't tell you is astounding. Not one job or tax dollar is new to Pennsylvania. All the businesses were poached from elsewhere in the state, many from South Whitehall. A large percentage of that money isn't from jobs at all, but actually from the cigarette tax, which previously was used for CHIP, the children's health insurance program.
Understand that the sleight of hand report was written in the Morning Call building, now owned by Reilly, by a reporter whose own states taxes now go to Reilly. Finding truth in this valley is becoming more challenging. Don't assume it's in the newspaper, or even elsewhere in the local blogosphere.
Mike,
ReplyDeleteThanks for being to voice to this fraud. By the way, the NIZ profiteers are putting there money on gold medal winner Marty Nothstein for congress. He has is eye on the finish line and they hope to have purchased their voice in Washington. They will be in the 'circle and the rest of the public on the outside. Just like the NIZ itself.
For the sake of disclosure I am supporting the other candidate in this primary, that however doesn't change the facts.
scott@7:15, this blog prides itself on signed comments, or in the least, established pseudonyms, and not deleting comments with which i disagree.
ReplyDeletealthough i find much delusion in regard to the NIZ, i do NOTassociate it, in any way, with the current congressional race.
Pennsylvania net taxpayers were forced to "invest" in this fiasco against their will (Allentown's teeming masses of welfare recipients, however, will reap whatever benefits may perhaps possibly be created gratis, of course).
ReplyDeleteFor the conscripted PA "investors," there is no Return-on-Investment anywhere in sight. This stands in stark contrast to Alaska, where citizen (and now their grown children) pay no state tax *AND* receive a dividend of hundreds of dollars per year. The NIZ seems rather unlikely to even stave-off a tax increase.
If anyone on Wall Street had packaged such an "investment," they'd be in jail for decades...
The NIZ sleight of hand starts with that (hush-hush) cigarette tax. It doesn't go to the state, but is used to fuel the engine that is the NIZ. Connect the dots as they run from Allentown to Harrisburg to the fuel company that runs convenience stores nationwide, selling these tax free cigarettes. CAPL - Capital Partners, headquartered in Allentown and Houston (Joseph Topper) - chief stockholder and instrumental with the NIZ gang. Also note, but not quite 100% sure - the cigarettes come out of Linden Street (NIZ Zone) - I believe formerly Doorwood Wholesale on Hanover Avenue. So let's do some homework and see where they lead. Could be quite interesting.
ReplyDeleteSome interesting posts by the bloggers who seem to have a handle on this issue.
ReplyDeleteIt is too bad that the City of Allentown, the host of this government supported rip-off, doesn't make any money to pay off its huge debt which will necessitate a massive tax increase in the future. His royal highness, the former Prince of Allentown, the disgraced Ed Pawlowski, left this city with impending debt and major issues that have to be fixed first. I don't relish Mayor O'Connell's task.
The NIZ, fully supported by these state taxes, doesn't care about the rest of Allentown and its crumbling infrastructure. Nor does it care about budget shortfalls, as long as they get their money for construction costs, the arena payments and administrative costs. This program hasn't generated any outside of the state customers and poaches other local companies with low rental costs. At least one person makes out on his investment, the one that forked over $25,000 in campaign donations to his former majesty Prince Edward, Mr. J.B. Reilly.
Mike, My comment is clearly signed as usual, so what is the problem there? As to your comment that you see no connection between the NIZ and the Congressional race I believe I have made the connection quite clear. The same people who bankrolled the NIZ and are now profiting from it are supporting Marty Nothstein. The candidate who is portraying himself as a Trump loving conservative who will drain there swamp. Frankly you can see and smell the swamp all over him, the same swamp that brought us the NIZ.
ReplyDeletescott@9:42, some people refer to you as a partisan, because your comments tend to be through a republican prism, and in this case perhaps the republican candidate you prefer for the primary. that is fine, and your comments are always welcome. my comment was intended to clarify that my observations on the NIZ are non-partisan. I will also take this opportunity to clarify that there is nothing illegal about the NIZ; it is pa. act 61. In my opinion that legislation was not in Pennsylvania's best interest. furthermore, I find that most people do not understand the ramifications, and that the paper is not an honest broker in its reportage of it.
ReplyDeleteMike,
ReplyDeleteIt is worth mentioning that only Republicans who dare to speak out are labeled as "partisan". I dare anyone to name a Democrat labeled as such. So when people refer to me a "partisan" it is a means to impugn my opinions rather than address them. So why not call that out instead of giving it legitimacy? By the way, name one thing I have been wrong about. We both have a great track record of predicting calamities here in Allentown.
Of course the NIZ is not illegal and those involved committed no crimes, they did it the correct way, through donations to the politicians who do their business for them. That is my point.
One can accept more of the same
Much to your point, Scott, I don't ever recall hearing anti-Constitutionalists, forced-membership unionistas, and supporters of compulsory income redistribution being referred to as left wing or far left, but I often hear pro-Constitutionalists and tax critics referred to as "right wing" and "far right."
ReplyDeleteSince this topic has shifted to the congressional race, trying to connect a candidate to an unpopular program is just plain politics. Where is the proof, of Nothsteins support of the NIZ. Sadly your candidate has run for every office in the county and lost every one since he was the deciding vote to raise county taxes by 16%. If he is the candidate he will lose again. He is a nice guy, but he just is not electable.
ReplyDeleteRay, The smear you are perpetuating was very damaging and effective. The fact is Marty and the other commissioners could never roll back the increase. That means it was necessary at the time to cover locked in costs and the send back vote was just pure politics.
ReplyDeleteThe NIZ is a fraud on the taxpayers and so was the send back vote. The same person who pushed the send back is now a never Trumper and is financing Marty's campaign. This matters.
There's plenty of slight of hand and undisclosed connections in the NIZ.
ReplyDeleteDescribing it as a conspiracy is a bit much. In fact, it simply is a supersized version of the urban thinking that many forgotten cities have tried. Cities like Allentown are no longer going to be centers of industry, the theory goes, so "recreate" downtowns into cultural/educational/artistic places and the "new" jobs will follow. Allentown tried a project to "import" white collar workers onto a thin layer of these cultural assets.
The problem, of course, is that the old uses of these buildings were real sources of wealth for the community--and you can't replace a factory that employed 400 with an artist space that employs five and not have a fiscal impact.
Finally--as the "Amazon II" scam continues, the deck is loaded against cities like Allentown. Knowledge companies aren't looking at places like Allentown...the Big Sort continues without it.
Scott, I am not attempting to smear anyone, I have not met either candidate. I live in Lynn Township, mention Browning and the people have a long memory, whether deserved or not. I want a republican house, every seat is important. I would not bet on a horse that has not won a race in over ten years. Niz and canopies and other such programs are all bound to fail, to restore the city, the idea should be to encourage people with money to actually live in the city, to encourage manufacturing to fill those old buildings rather than places for the people from the suburbs to visit. People move to areas of opportunity, then business follows to provide their needs. This is the only formula that will work.
ReplyDeleteIt doesn't sound like an All-American City to me.
ReplyDeleteSome cities, like Pittsburgh for example, which once were centers of industry, have managed to transform themselves into the modern information age successful city. By combining the retail & tech & healthcare industries developed by partnering with university research spin offs they have developed sufficient job opportunities that support housing development that in turn can spur city retail & cultural/social incentives to attract an educated working age demographic to live and work in and around the city.
ReplyDeleteAllentown has the university infrastructure nucleus and it's lower cost of living plus easy access to both urban & suburban housing are fundamentals that could, with the right policies, simulate a renaissance like that experienced by Pittsburgh & Atlanta.
I'm from Pittsburgh. The only thing standing in the way of a similar transition here are the elected leaders and the voters who put them into office.
ReplyDeleteHas as anyone noticed that the NIZ has resulted in the Plaza being a see-through office building? Talen is moving down the street to subsidized floor space, leaving the Plaza to stand as Allentown's answer to the Martin Tower.
ReplyDeleteCongratulations!