Save for this blog, nobody until recently concerned themselves with the shuffling of our diverted state taxes to the NIZ oligarchy. New State Senator Jarrett Coleman campaigned on scrutinizing the NIZ, but has been stymied by the NIZ shield of privacy rules. While this post is based on a recent Morning Call article, the paper has unfortunately performed more like a partner in the NIZ, instead of a watchdog. They actually were dealt into the hand, with their former building being included in the NIZ district map, despite being on the wrong side of the road, or in this case Linden Street.
The latest $75mil bond deal involves, as usual, Reilly's City Center. While his two Hamilton Street projects will be fronted $33.5mil in construction loans, the remaining major portion, $41.5mil, will go to associated expenses. Those expenses include refinancing existing debt, reserve funds and cost of issuance. I'm no finance man, but it's hard to understand the refinancing of (recent) existing debt. We left a 2% environment and are now three times higher. Are we providing seed money for projects outside of the NIZ, such as the former State Hospital parcel?
Besides Reilly, what all these transactions have in common are ANIZDA board leaders signing off with their permission. Chairman Seymour Traub is quoted as saying that the two projects will provide "thousands" of construction jobs. I know that there will be dozens of workers, maybe even a hundred... but can you imagine thousands of workers on a couple three story projects?
I have serious doubts that Jarrett Coleman will be able to shine any light on the NIZ. However, if he even sincerely continues to try, he'll keep my support.
You don’t have to publish this comment, but I thought you’d want to correct the post.
ReplyDeleteJarrett Coleman is a State Senator, not a State Rep.
Finally a "politician" is demanding transparency! We should back this man 100% and castigate the state reps from Allentown who are feverishly working to stop him in order to maintain the corrupt status quo. By the way, who are those state reps?
ReplyDeleteGiven the NIZ is funded by government tax dollars, why all the privacy? Are we building nuclear missile control centers in Allentown? These are government funded work projects and should be all open for review.. at least one would think....
ReplyDeleteThe question is how it's possible that the NIZ hasn't thrown off a penny in tax revenue to offset the tax burden of the hardworking families and businesses paying for it. How does anyone explain a 6.9% tax increase in Allentown?
ReplyDeleteIf Joe Biden’s proposed ban on menthol cigarettes goes through, what will that do to NIZ revenue? Should the FDA enact the ban, cigarette tax revenue would be lost. This blog has commented on what taxes are generated by the cigarette distribution facility in Allentown’s NIZ. Could there be a reshuffling of state, local, or corporate money to compensate?
ReplyDelete