Showing posts with label NIZ. Show all posts
Showing posts with label NIZ. Show all posts

Wednesday, May 21, 2014

Great Entertainment Lineup Coming to Allentown

I don't think that it would be possible to have a better entertainment line up coming to Allentown this Summer.  First, there are the Eagles.  Enough said.  Number one best selling band of all time.  It was a hell of a get for a mid size city, but it just goes to show how powerful the draw of the new arena is.

What about all the talk that people will be too afraid to come to the downtown with all of its drugs and gangs and what not.  Once again, an utter myth spread by a few haters.  The arena actually had to suspend sales during the American Express advance ticket purchase window because they were going sell out before tickets could be purchased by the general public.  Then, once they did go on sale, they sold out in under two hours.  That's a huge show of support for the downtown.

The next show is Cher.  I'm not a huge fan myself, but over on the WFMZ website there were about 20 comments with people from all walks of life absolutely psyched about the show---and not just that---but about the fact that Cher was coming to their own backyard.  That's what the NIZ is all about, making Allentown vibrant enough that the town is self supporting of everything you need to live.

And, finally, it was just announced that a rodeo is also coming to town.  I think that's great.  The lehigh valley is still, in many ways a rural and agricultural place.  Just like the Great Allentown Fair, the rodeo ties people in the city to the country side.  Its a great throw back.

At this point, it is getting harder and harder for the haters to hate.  Allentown is coming back stronger than ever.

Monday, May 19, 2014

What Social Equality Looks Like to Millenials

A few days ago, someone in the comment section accused this blog (and Job Geeting) of asking big government for a hand out.  That's absurd.  As I replied, this blog (and Jon Geeting's which proceeded it), is largely premised on the fact that government ought to deregulate the housing market by stopping absurd subsidies to wasteful suburbs.  That is exactly what has happened in Allentown.  As I pointed out yesterday, Allentown has created a real estate free market where tax money flows back to developer to be used to finance the construction of new real estate.  That and minimal zoning restrictions has allowed Allentown to amass nearly a BILLION dollars of real estate investment.  Like I said, Allentown should be the wet dream of free market republicans and the libertarians.

What does this have to do with social equality?  Well, a strong case can be made that starting in the 1950s, the federal government and states undertook a conscious effort to segregate minorities in cities from the Lilly white suburbs.  If you read the transcripts of the senate debate about the mortgage interest tax deduction, Southern Democrats actually note that a benefit of the program will be to help middle class white folks escape "animals" in the cities.  Yikes, (bad quote isn't it Bernie? lol).  The fact is that the suburbs received TRILLIONS of dollars of tax subsidy over the years in a process that was meant to segregate a white middle class suburban majority from minorities who were to be left in cities.  Don't believe me, try to remember how the media depicted cities in the 1980s, you know when Philadelphia fire bombed a residential block or the film "Escape from New York."
Oh look, a black guy with a gun and a chain.

Now, I will concede that there were social programs around the edges to try to help populations left in cities.  But, here is the thing, I think most millennials are willing to concede that in many cases, government programs are ineffective.  Social programs are often a band aid over a much, much larger cultural problem.  What was that problem in America---it was racism that led to an incredibly unfair housing policy that sent middle class folks to the suburbs with their money and their cultural institutions.  The cities were left to rot with strongly derided "social programs" providing a modicum of relief.  When these social programs failed, the middle class sneered even harder form their suburban fiefdoms.

How to fix the problem?  Ronnie Reagan maybe got something right, maybe, sometimes government is the problem.  That is why Allentown's free market, zoning-light NIZ district is such a big deal.  For the first time, in a long time, it is encouraging people to come back to the city.  It is only when the middle class returns to Allentown, with their tax money and philosophy of stable civic organizations, that things are going to turn around for everyone in Allentown.

This is not to say that millennials are some sort of uber-generation bent entirely on social equality.  They want cities because cities are cool and interesting places to live.  But, here is the thing, they don't demand a lilly white playground like the suburban white flightiers before them.  And because of that single important fact everyone's ship in a city will rise.  By ignoring race and class, rather than dwelling on it, the millenials will do more for everyone than the previous generations could even dream.

Sunday, May 18, 2014

Its Official: One Billion Dollars of Development

Its hard to know where to start on an article like this.  The idea that Allentown, Pennsylvania could have brought in nearly a billion dollars of investment money even five years ago would have been laughable.  The city was on the ropes.  Not anymore.  Now Allentown is the place to be, its the place to go out, and pretty soon it is going to be the place to live.

The first place to start might be to address some of the negative criticisms.  There are a lot of questions about what will happen after the NIZ run outs.  First off, that is a long way down the road.  The NIZ is in place for 30 years and will drive development during that entire time.  Why?  First, you need an explanation of how the NIZ works.  The law is complicated, but essentially this is how it goes:

1.  NIZ taxpayers pay their rent as normal.

2.  That local and state taxes are sequestered at the state level and returned to the ANIZDA board.

3.  ANIZDA uses the money to pay off the construction loans of the new development.

When you zoom out, what the NIZ is really doing is creating a free market, it is saying, if you build within the geographical boundaries of this zone, you can use your own money to finance the construction of your own building---the state will bow out of the market.  That's smart.  That's a free market---that what hardcore Republicans and libertarians have been gunning for for years.  People like J.B. Rilley couldn't compete with all the tax breaks and incentives that had previously been going to the 'burbs, but, because Allentown now has a free market, he (and other developers can compete).

The consequence:  ONE BILLION DOLLARS in investment.  The best part is, there is no way the tax payers are left holding the bag.  Once the NIZ ends, tax revenue is returned to the state---the new real estate development should be totally financed by that point.

Once again, this is a huge win for Allentown.  Haters are gonna hate but they are now in the minority.  My generation, the millennials, want vibrant cities.  For all we care, the strip malls of suburbia and McMansions ought to decay into dust---it would look better anyway.

Great job Allentown.