NIZ Finances Already On Shaky Ground?

PPL is spinning off its PPL Energy Supply unit.-- "The PPL unit is being rolled into the power generation business of energy investment firm Riverstone Holdings LLC, and it will become an independent and public corporation called Talen Energy, traded on the New York Stock Exchange... Talen Energy will be based in Pennsylvania, but a specific location has yet to be determined."

By Scott Kraus, Of The Morning Call-- "Allentown is engaged in a high-stakes effort to keep PPL Corp.'s soon-to-be-created power generation and marketing spinoff company Talen Energy in its Neighborhood Improvement Zone.... Losing roughly 600 PPL Energy Supply employees and the tax revenue the company contributes to support payments on the arena complex's $235 million bond issue would be a serious blow... PPL Energy Supply parent company PPL Corp. is listed in the authority's bond financing documents as one of five large taxpayers that together produce 72 percent of the tax revenue swept up in the zone to cover debt payments... If that were to happen, new revenues produced by Talen, over and above current amounts committed to covering arena debt service by PPL Energy Supply, could be used with ANIZDA's permission to help finance construction of its new offices, Browne said."


CommentarySo let me get this straight. (1) It might cost taxpayers another large chunk of change to entice Talon to stay here by constructing yet another building? (2) There will be less employees paying taxes towards the NIZ then we now have even if they do? (3) Rather then bring in more taxes from outside Pennsylvania we might lose more then we already had in Allentown? (4) PPL will need less office space?

While this may all be conjecture for the moment, even a optimum outcome will produce less tax revenue and the promised increase in jobs then what we had before the NIZ. Sure this sale might have happened with or without the NIZ, but the question is, after spending nearly $1B will the net result leave taxpayers' in Pennsylvania better off?

There is room for argument that at least we here in Allentown will offset the loss. However, Pennsylvania taxpayers were promised more jobs and businesses would come in from out of state. That has not happened so far The bottom line in all of this is while Allentown may be better off will Pennsylvania taxpayers be (as a whole) when all is said and done?

In my opinion the answer is obvious, they will not.

One Final Thought
     Bend over. I don't see how this will benefit electrical consumers either.