I don't know if Josh Shapiro has political ambitions beyond Pennsylvania, but if he does, he might consider dumping his Director of Revenue, Pat Browne.
Pat Browne devised the NIZ, which only Allentown qualified for. It turns out that his life long friend ended up being the biggest beneficiary of the program. Almost all the new buildings on Hamilton, Walnut and Linden Streets are owned by this friend, J.B. Reilly, and the debt service on them is paid for with diverted state taxes...that's right, private ownership paid for by the public.
New state senator Jarrett Coleman has been working since his first day to have financial information about the NIZ made available to the public. Browne, on his way out the door of the senate, inserted language into the NIZ ordinance making such information confidential.
As Shapiro complains about cuts from Washington affecting Pennsylvanians, he has remained complicit in the Allentown coverup. Although he touts the development in Allentown, he ignores the details of blatant favoritism and secrecy. If he has any dreams about 2028, it's a situation that he might want to get in front of.
With yesterday’s announcement that no interim audit of the NIZ will be produced a strong message is sent. There IS a COVERUP underway. That said, use of the term ‘interim’ suggests a final audit will be forthcoming, but when?
ReplyDeleteI have no doubt the knowledge gained so far reveals the NIZ has been a total failure. The goal was to create ADDITIONAL State Tax Revenue. I believe even a simple math calculation will reveal the embarrassing truth, NO additional STATE tax dollars beyond what was normally being produced by that same zone were realized.
Further, if the Morning Call and other media weren’t so complicit in this scheme, the ultimate failure of this program would have been obvious 5-6 years in, and perhaps the money pit could have been halted.
The Allentown NIZ plan must be stopped. No new recipient projects added. To continue on would be a continued misuse of taxpayer dollars.
I believe there was fraudulent behavior here on the part of several individuals and organizations. That must be identified. But, in today’s America, few have the courage to stand up and hold others to account. Senator Coleman deserves our thanks for trying to break through this shield.
There is a history of NIZ shenanigans, it can be found on this blog's archives. It is amusing that the Morning Call refers to their one RTK, when otherwise, they have been the main promoter and even beneficiary. I've been on the case before the first building of our mercantile history was demolished, and the first box for poached tenants built. Although the NIZ might be a gain for Allentown, it is a loss for the Lehigh Valley and the state. While Pawlowski was trying to ride that horse to Harrisburg or Washington, Shapiro better clean up the stable if he wants a bigger office.
DeleteI have always been suspicious of any Public, Private partnerships, especially if the public is responsible for the losses if it goes bad and the private reaps the rewards if it issuccessful. This had been going on in the LV for decades, The so called super 8 had these arrangements all over the place. From government guaranteed loans to the ability to rezone farmland into Industrial property, increasing value by millions in minutes.
ReplyDeleteGovernment should be limited to making the possibility of business to succeed by creating an honest and fair environment, not by financial guarantees and public investment.
@6:51
DeleteHelp me out here. Where is the “public” in this public/private partnership?
I don’t think the coverup ends at the NIZ borders.
ReplyDeleteThe state turned down an offer for the State Hospital property that would have saved them the expense ($15 million) of tearing down the buildings first.
In January 2023, the state executed the sale of the 195-acre property to City Center for $5.5 million, far below what it even cost to remove the buildings.
In February of this year, the Allentown School District purchased a 16.7 acre sliver of that same property for nearly $15 million (almost three times the purchase price of the entire 195 acres!) to build a new school there.
To make matters worse, I seem to remember that the local developer who originally attempted to buy the property (with the buildings) had even offered to DONATE whatever property the ASD needed for its new school.
Mind you, all this was done with the blessing of local democrat politicians and any opposition from Governor/Attorney General Josh Shapiro.
Final Score:
Delete- State taxpayers are down AT LEAST $9.5 million, plus whatever the local developer would have paid for the property.
- ASD taxpayers are down just under $15 million before even breaking ground on the new school building.
Delay, delay, delay, that is the tried and true strategy of the Democratic Party when it comes to attempts to uncover their corruption. This strategy works for them because the largely complicit media plays along. Republicans conversely cannot count on similar largesse and instead are held to account. It is not partisan to point out this obvious truth. Let imagine that Shapiro was a Republican, who brought in Browne, the author of the NIZ and it's shield from right to know laws, to be his revenue secretary. Then let's imagine a Mr Smith goes to Harrisburg type Democrat started asking questions about the very questionable money flow of tax payer dollars related to the NIZ. Does anyone think the media wouldn't lock onto to that story with unrelenting determination?
ReplyDeleteIf it wanted to do so the Morning Call could uncover and analyze data to assist its readers in better understanding the success or failure of their tax dollars due to the introduction of the NIZ back in 2009.
ReplyDeleteBack then, the Morning Call did publish the amount of already existing tax revenue from the same designated area. I recall that amount to be something like $27 million per year.
Multiply $27 million dollars times 14 years, that would total $378 million. Add an additional $60 million for subsequent tax increases, so about $450 Million gained by now without the NIZ ever put into place.
Next, subtract all the poached tax dollars from business who were already doing business elsewhere in Pennsylvania.
Add up all the reported incoming tax dollars annually to date since the NIZ began.
From this subtotal, subtract all the monies reported to have been shifted to cover new building construction in the NIZ.
I truly believe, no additional state tax dollars have been realized due to the NIZ. So, why should this failing program be allowed to continue?
It's really difficult to make a short comment on Allentown's current condition because it is so completely screwed up. City and State governments whose only purposes are to acquire and retain power and money, self- service replaced public service years ago and we're living the results. Allentown's once owner-occupied, cared -for residential neighborhoods now hopelessly overcrowded, blighted and the landlords profit. The once vibrant central business district now an isolated, impersonal, pile of steel, stone and glass arbitrarily plopped down by one man whose only purpose is to make money. It's dangerous to drive through Allentown let alone stop to make a purchase, then the parking authority hunts you down to squeeze another parking deck payment out of you. Disgusted -yep, sorry - you bet. Our once great little town is now corrupt, incompetent, dangerous and expensive. So what needs to be done to get back on the right track? You tell me, I can't even write a short comment.
ReplyDeleteIf the audit is not made public, rest assured it is because it will not reflect well on government and many local persons. I do not expect the Morning Call to do any real journalism, as it was a shameless shill all along. I hope there is an organization that has the wherewithal and the integrity to pursue this information through the courts, if necessary.
ReplyDeleteIf this remains hidden, there is something more than rotten in Denmark.
I am unclear on some things. The buildings that have been built, are already paid for by public tax money?
ReplyDeleteOr is the interest on the construction loans paid for by the taxpayer and the principal paid out of the revenue generated by the buidings?
anon@9:22: The debt service on the new buildings is met with diverted state income taxes from the tenants. In addition to those funds, the NIZ ordinance was expanded to allow state cigarette tax to also be utilized. The ordinance was essentially written in pencil, and Browne revised it as more opportunities appeared for the few players involved.
Delete9:22 –
DeleteRemember that after several of the downtown buildings were built, Lehigh County assessed them at the reported cost of construction.
City Center appealed those assessments, and won!
What should that tell you? Either:
1) The buildings were immediately worth less than what is being charged to the taxpayers (even before including interest), meaning that the taxpayers were overcharged (I would say defrauded) by those in the construction process;
OR
2) There was a portion of the money that was claimed to be a cost of construction that was actually diverted to people outside of the actual construction process, also defrauding the taxpayers. This of course would also raise the possibility of public corruption and require an answer to the question of who actually got that money.
My personal belief is that the audits are being withheld/suppressed to stop that second scenario from being investigated, and the bigger questions that would come from such an investigation from even being asked.
Seems quite simple to me. If the NIZ were a resounding success after the audit they'd being throwing confetti, balloons and holding public celebrations. If they're so concerned about releasing any details this sends a clear message it's something otherwise.
ReplyDeleteOf course this is a boondoggle of tremendous proportions. The question is who would be the investigating entity?
ReplyDeleteDecades ago a Cracker Jack investigative journalist with a great news paper like the old Philadelphia Inquirer would go after this with a series of pieces. I can’t think of any print media that would have any interest or capacity at this point in time.
The One Party urban regime clearly has a significant interest in squashing any investigation and the particular circumstances would seem to preclude any federal LE investigation.
Years ago, I was a subscriber to PHILADELPHIA MAGAZINE, a viewer of the CBS show 60 Minutes. Both of these outlets would have jumped all over this story. A lengthy segment, or multiple pages describing an in-depth investigation of the proceedings would follow.
DeleteSome excellent reporters would win prestigious journalism awards. Thousands, if not millions of taxpayers would demand accountability.
Folks, there is more than enough here for a reporter to make good money and win a Pulitzer Prize, an Emmy Award, and move up the career ladder.
Serving in the interest of our public good was once the objective of news media, but now, not so much.
What the HE*L happened?
anon@11:51: You can't even find many people willing to sign their name to a blog comment... On that note, I rejected several anonymous comments with various allegations.
DeleteMike, obviously I posted the 11:51 and this post anonymously. I think you are needlessly concerned about contributor IDs. If a contributor offers an opinion that adds substance and doesn’t slander/call names, etc. you should value such participation. There are very legitimate reasons why someone like me will only contribute anonymously. My suggestion is, just keep rejecting the junk. I’m sure there is plenty of garbage coming in.
DeleteAnyone who lived through the Pawlowski years understands that much of the corruption remains. Hundreds of millions of dollars are in play. Your courageous is extraordinary, Michael, speaking for myself, yes, I fear potential retaliation of one sort or another.
DeleteWhy no signatures???...Truth be told, Allentown has a long, unforgiving, spiteful and revengeful memory.
Deleteanon@1:13: When I was a landlord/property manager, Pawlowski would inquire of code enforcement if they had any complaints against me (they didn't)
Deleteanon@1:41: My current exclusion from the Parknership shows that the current administration is not above holding grudges.
1:41 here... If anyone should be on the parknership, you should be number one. As you have seen, and are currently experiencing, Allentown is exceptionally vindictive and quite small minded. Too bad their collective "elephant memory" doesn't recall all the things they passed against such things as double parking, loud exhaust cars and rolling speaker cars... that they can conveniently forget whenever it suits them...
DeleteBe thankful you no longer own property to be targeted in this now sad city.
From my perspective as a native Allentonian, I fear it the Queen City has reached the tipping point.
ReplyDeletemj adams