Wednesday, March 11, 2015

Allentown's NIZ To Cost Another $200 Million+

March 10, 2015: Allentown planners OK plan for 200 apartments at Eighth and Walnut streets According to another article published last December "J.B. Reilly, president and CEO of City Center Investment Corp., wanted to add a residential portion to the Five City Center project and to expand his $180 million revolving line of credit to $265 million to fund the project, Traub said."

On the same day (March 10, 2015) the 33-story Landmark Tower building received Allentown planning approval. According to the Morning Call that's another $60 million. previously reported, Pennsylvania's current structural deficit is about $1.5 billion. In order to meet the shortfall "Governor Tom Corbett's administration took out a line of credit for $1.5 billion last September".

In my opinion it's foolish to forgo nearly $1 billion in future revenue (if not more taking into consideration the future Riverfront NIZ project needs) over the next several years. This while at the same time borrowing to meet the state's own financial shortfalls.

Some may argue it's an investment in our future hoping to produce greater revenue for the state.

Question is, should Pennsylvania taxpayers assume the risks involved with speculative commercial private development ventures?
Is this simply another example of government pork barrel spending?

Until 10 or 20 years rolls around there can be no financial certainty in all of this no matter who says or promises what.

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