EIT and the Arena
Greetings:
Received the following comment, which I felt it and my reply should be presented as a post for those who do not read through to comments.
Michael, sure be interested in your thoughts about how the NIZ is raping every other town in the Lehigh Valley with the EIT transfer, particularly as to how secretive it was.
Wouldn’t honesty have been a better policy?
Do you really wonder why the rest of the Valley hates Allentown anymore?
I’m sorry but I’m ticked, this is wrong. I already told my mayor I would make a personal contribution to cover the costs of any lawsuit filed to overturn this travesty. Our only hope is to tie Allentown up in knots so the damn thing never gets built.
My Response
Hello John, and thank you for writing. I am also going to post your comment and this reply separately.
Since the beginning, I have been describing this as all taxes other than real estate taxes derived inside the NIZ would go to Harrisburg. This included non-Allentown taxes. I have always been clear in any presentation that I have made. However, I have also noted that there was a cash flow timing issue that needed explaining, including estimates of how much would be delayed.
My knowledge of the proceeds based on conversations with experts associated with the project whom I trust is that state money would be more than sufficient to cover the bond requirements and that local money would not be needed.
That said, I also was quite clear to the Mayor and AEDC from the beginning how important it was to communicate the details of this project wisely. Perhaps, some information for good reason needed to remain private, but all along there were very important groups that needed briefings.
Late last summer, after a 3 month delay beyond the original “report” date, I demanded of AEDC, of which I was a member, to present the reports to the Board, to council, and where appropriate, to the public. This was on top of meetings in May and June, when I urged both the Mayor and the Board to follow best practices in working with the community on controversial projects like this was.
In October, the Board viewed a presentation that was, in my opinion, minimal. I again was quite clear that there was a lack of substantive information by which I or others could make wise decisions.
These reports were finally made available to Council in December, and I read them all. I was satisfied with the traffic and geo-technical reports. I was disturbed by the marketing report, which struck me as insufficient, although it was possible that my concerns would be reduced if I had been able to talk with the authors, just as I had done with the traffic consultants (I had some technical questions for them). I did receive information that the bond coverage was more than sufficient, and that local communities were more than likely only to suffer a cash flow delay. What was missing, however, was how much, and for that reason, I do not blame you for being pissed.
All along, I have been in favor of this project, but knew that it was complex and should involve all the stakeholders appropriately. Again, some matters would need to remain private, but there many, many other details that required deliberation with those whose opinion counted.
So, those are my thoughts. What will destroy the project are not disagreement on its merits. What would destroy it are the secretiveness and poor communication policies that were followed.
I need to close by saying that your last paragraph bothers me because it sounds like the feelings that have motivated the hollowing out of Allentown in the first place. Yes, information was not disclosed adequately, but I would ask that instead, let’s get the information on the table.
Again, thank you for writing.
Michael
Just read Bernie Ohare’s coverage of the NIZ Board that, according to him:
“They’re all scheduled for confirmation on Wednesday night by Allentown’s really, really independent City Council.
It’s all or none, too. According to the news account, Council must accept all or reject all. I’ve scoured City Council ordinances adopted between 2009 and 2011, and am unable to find any that establishes a Board for the NIZ. Some kind of action was taken on December 14, according to The Express Times, but neither the minutes nor any Ordinance is available online. But the City’s codified Ordinance on Authorities and Boards says this: “No appointee … shall hold any other elected office or any compensated position for the City.”
First I heard of this board was in the last few days, and council is charged with an all or nothing, up down vote a few short days later? We the people of the city of Allentown (and the surrounding communities that have found out post facto that they will pay for this massive project) deserve a much more open process.
I think council should vote no on principle of open Government.
Hi Bill,
I know that the board has been a matter of discussion for some time. Should it be ACIDA, an existing board, or a new board. Legal issues under state law concerning authorities were the deciding factor. Council was told that Authority Law (not NIZ law) required the up or down vote. That is something that I would have challenged at least when the vote was to be taken if I were in office, but I believe there was no option.
I do believe that an authority board has been discussed in the Morning Call several times at least going back to November. What has been the problem is that the names were just released and the vote gives little time for public discussion.
Have to run, I will read Bernie’s post. Have not done so, yet.
Michael
Just read his blog. I was “google” aware of some of Bernie’s presentation of what he researches as facts about the nominees. But for Mann, who should not be on the Board (I suspect the legal opinion is city elected office), I will not comment on the rest of the group. Instead, my criticism, as it has been all along, is the secrecy and the way this has all been handled.
I still in favor of the project, but the windows have to be opened completely.
Michael
Not entirely sure about the project but the secrecy sends me into the opposed category….This stuff needs to be much more open! Thanks for responding.
Best regards
Bill
Not sure about this arena deal and have not been since the beginning. The more I hear about hwo things have been done, the less I like it. What else have we not been told about the arena or the dealings of our city government. Basic trusts have been violated, time and time again.
Bernie O’Hare says on his blog..
Traffic Planning and Design Inc. They are represented by a Montgomery County attorney and Dem who has raised Ed about $100K.
Land Development Services. T and M Associates, represented by Pawlowski campaign manager Mike Fleck.
Would you care to comment on those charges?
I have met the Traffic Planning and Design people, who have offices inside Allentown, and I conclude they are professionals doing good work. I did not know who their lawyer is.
The Land Development Services issue is new information and yes, it pisses me off to learn that Fleck is involved.
As far as commenting, how many times do I have to repeat hear and elsewhere that I told the Mayor early last year that “I did not want 500 white guys being the only benefactors of this project.” I have said that also loud and clear at council meetings.
Again, but for the “crap” of politics, I like this project very much, and know that it could falter because of these issues. You also know that I want to get more out of this than an arena and office space. I have been very outspoken about that, too.
Michael
Michael, thanks for responding, I do appreciate it (even though the rest of this email won’t sound like it!). But we’re as far apart on this matter as two people possible could be.
I read everything I could find on the arena over the last many months, and none of the information spelled out that all the surrounding towns were going to be kicking in. No quote, no honesty, no “let’s work together.” The fact is no one in the small towns (or cities like Bethlehem and Easton) knew this was happening.
Pawlowski and Browne conspired to keep that piece quiet until it was too late for anyone to do anything. They knew they had to keep it quiet because the only way the legislation would get passed was through a cover-up of that piece. They pulled one over on the entire Lehigh Valley.
Even if local money isn’t needed, the fact that they put it in there and covered it up until it was too late is enough for me. This is one giant F-U from Allentown to the rest of us so I’m sorry, but the only response I have to that is F-U to Allentown. I’ll be damned if I’ll go to anything at that arena, nor will I go to any restaurant or store. Bethlehem, Easton and every other town in the Lehigh Valley just picked up a new customer. I don’t think I’ll be alone.
I’m sure I’ll calm down in a couple days and be able to engage in rational discussion, and I do apologize for the tone of this email.
Hello John,
I agree that it was not publicly explained by the powers to be! But I repeatedly said everywhere that all EIT funds were to be collected. Unfortunately, I was just a voice in the wind about transparency.
You can say F-U to me all you want, but remember that there are 118,000 people in Allentown, and most do not have any say in our government. So please do not say it Allentown. Say it to those who have not managed this well or fairly, which can include me because no matter how hard I tried, I could not get an appropriate process to unfold.
I hope that you calm down, because this can be a good project that benefits lots of people (especially those we all want to benefit, not the select few).
Michael
Mike, a couple days and still ticked. Wrote this on Geeting’s blog, here’s what I want to see:
The way the merchants in Allentown were treated is disgraceful. These people took huge risks in investing in Allentown when no one else would, and to just shove them aside violates every tenet of decency and compassion for our fellow man. JB Reilly is being handed upwards of $100 million in taxpayer money for this project. Before he takes one dime out of this back to Saucon Valley, those merchants need to be taken care of out of HIS pocket, not the taxpayers. After all, if all that happens here is rich white guys get richer with the taxpayer picking up the tab, then this will be an utter failure.
The way Mayor Pawlowski and Sara Hailstone treated property owners is also disgraceful. Hiding behind shell buyers who started out by threatening eminent domain, denying it was the city when in fact it was, then lying about how open the process was were wrong. Those two should grow a pair and meet publicly with all the people who were hurt and tossed aside by this process. They’ll get blasted and they should sit there and take it like the grown ups they proclaim to be.
Pat Browne needs to direct his wife to exit the lobbying contract with JB Reilly immediately and return any payments made with interest. It may be legal but it is slimy. We need to hold politicians to some sense of decency and we need to start doing that now.
Browne, Pawlowski and anyone else with a hand in it need to meet publicly with all the surrounding towns and apologize for their reprehensible actions in this legislation. We need everyone in the Lehigh Valley working together to make this project work, and the worst possible way to start that process was to hide critical facts and bury them in legislation no one read.
Chances of any of this happening? 0. And that’s a damn shame because any support this project had in the suburbs is rapidly disappearing. People don’t like getting schnookered, and that’s what happened.
ce
Hi John,
I do not disagree with your frustration and anger. At this point, all I can do is write about the same things I tried to say and do while in office.
As someone who would not join the “team” (that is how I have been criticized) I have very little influence. The political process, anywhere, is about gamesmanship, something that I have never developed well.
This is a project that could provide tremendous opportunities for the city and the region. There are not many times that capital can be redirected in this way to kickstart development, both economic and community. Unfortunately, as is the case in so many urban areas, the community was forgotten, and economic advantage for the few appears to be the emphasis.
I do not like it, and yet I do not want to stop this project. That would be a disaster. The solution, I think, is to somehow have thoughtful, broad-minded individuals join the endeavor so that trust and opportunity return. I just do not know because I look across the field and I see too many different groups, with different interests, unwilling to come together and say, “wow, look at what we have, and what we can really do.” Instead, it is dominated by one group, and that is the urban regime, comprised of a secretive Mayor and developers who focus only on financial rate of return.
Michael