UPDATE: Kraus and Assad write; records show he(Reilly) didn't buy his first new property until March 2011 — three months after the new downtown NIZ map was adopted, and a week after the city publicly announced it was shifting the arena downtown. Public records refer to deed transfers, but when were the Agreements of Sale signed? Reilly wonders why other developers are not taking advantage of the NIZ. Perhaps because Reilly has already purchased all the adjoining blocks? Perhaps because they are not assured that their project will be granted the same NIZ Authority approval, necessary for the tax debt funding, being enjoyed by Reilly?
above reprinted from February of 2013
ADDENDUM FEBRUARY 28, 2023: A decade has passed and not much has changed about the Morning Call's reportage on Reilly and the NIZ. Ironically, Reilly now owns the former Morning Call building, and the city is now covered by reporters who never heard of Allentown in 2013. Of course Allentown is much more Reillytown now than it was ten years ago. This past weekend even fellow blogger Bernie O'Hare seemed to pitch Reilly a soft ball. He wondered if the town seems dead, it could be because residents are at home, like most of us. Needless to say, young professionals don't move to center city, tolerate parking in deck a block away, to stay in at night. O'Hare goes on to explain... The NIZ is controversial, but this post [O'Hare's post] is NOT about the wisdom of this redevelopment tool, It's here. It's whether Reilly's vision can be seen as putting Allentown in a better position than other downtowns.
O'Hare and I agree that Hamilton Street is almost 100% Reilly. IMO, that alone demonstrates the moral dilemma of the NIZ. I have little doubt that it was a boutique legislation for a friend, a quintessential insider deal. Reilly can keep building without corresponding occupancy, because diverted state taxes are paying his debt service. While this arrangement may be legal by the boutique NIZ state law, it is a profound conflict of interest against the taxpayers.
Scrutiny of the NIZ remains limited to this blog, and for my reward I remain a persona non grata.