Jul 16, 2019

NIZ And Our Tax Dollars

All citizens of Pennsylvania subsidize the NIZ in Allentown. While state taxes are used for the developer's debt service,  those taxes must be made up to maintain Pennsylvania services. The NIZ is administered by an oversight board called ANIZDA.  That is the official description in a nutshell.

Students of this blog know that my description of the district is much more realistic.  It is a legal real estate deal worked out by state senator Pat Browne and his friend, J.B. Reilly.  Reilly owns most of the developable property in the 128 acre district, and is by far the biggest developer. With a couple exceptions, all the new buildings belong to him.  He is now even landlord to the Morning Call.  Over the years I have documented many of the backroom shenanigans,  including the explusion of the former merchants and property owners.

A recent article outlined new board member Adrian Shanker's attempt to make the NIZ more diversity conscious. He slowed down approval of an eventual $250,000 advertising contract promoting the NIZ. In reality, the advertising agency is a Reilly tenant, and the contract insures the rent stream to Reilly, and hopefully more tenants for his buildings.
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5 comments:

  1. DonJuly 16, 2019 at 6:40 AM

    Everything about our downtown is so convoluted why not add diversity into it too.

    And why not add some climate change too. There's lots of wind and hot air with tall buildings.

    If Aldous Huxley had more imagination he could have incorporated downtown Allentown into his book, "1984".

    It would be great fiction because no mortals would ever believe this kind of shit could happen in a free democratic society.

    It is totally crazy.

    ReplyDelete
    Replies
    1. Steve TrappJuly 16, 2019 at 9:05 AM

      Don, Aldous Huxley wrote "Brave New World"(along with other works). George Orwell (Eric A Blair) wrote 1984 (my favorite book of all time) ... but I get your point and I agree with it.

      Delete
    2. DonJuly 16, 2019 at 4:46 PM

      Thanks Steve

      Delete
  2. JohnJuly 16, 2019 at 9:00 AM

    Michael, what have you learned about the cigarette warehouses in the NIZ? Pennsylvania’s taxes are $2.60 a pack. I have heard that among other outlets, the casino is one of the largest purchasers of wholesale cigarettes. Every penny in taxes, including the smoking-cessation and health portion of the tobacco tax, stays in the NIZ and rolls up to the developers.

    The smoking addiction of New York gamblers is going into the pockets of ANIZDA.

    ReplyDelete
    Replies
    1. JohnJuly 16, 2019 at 9:00 AM

      https://www.salestaxhandbook.com/pennsylvania/tobacco

      Delete

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