Criminality and Immorality Merge In Allentown

One thing is for certain, Allentown's mayor Ed Pawlowski will be resigning, even if he isn't charged with anything. Quite a turn of events for someone, less than two weeks ago, who was touting his role in Allentown's revival as a reason to represent the Lehigh Valley in Washington. Today, the Morning Call wonders if the cloud over Allentown might stymie the fast paced development occurring in Allentown. That cloud hovers above Pawlowski, and the people who are benefiting from the $multi-billion $dollar state tax dollar gift called the NIZ, will make him go away, quickly.  Did this cloud come from out of a clear blue sky?

Those familiar with Pawlowski are less surprised than John Q Public about the allegations. The mayor is known to be a vindictive manager. City employees have toiled under that fear for three terms. Furthermore, those of us engaged in policy disagreement know that he doesn't hesitate to publicly defame his opponents. Combine that deficit of character with the NIZ revitalization, and you have the recipe for unbridled hubris. In less than a week, he has gone from stating the investigation centers on city policy, to hiring an acclaimed defense attorney for himself. I do not know if the mayor has done anything illegal. Apparently, the FBI felt that there was probable cause, and executed search warrants. On the other hand, some things that are legal, have profound moral shortcomings.

I believe that some day business and law students will read a case study about the NIZ, and how it legally stole from the taxpayers of Pennsylvania. Over the decades the state devised tax incentives to revitalize certain sites. These plans became more lucrative, climaxing in the absurd NIZ. Everything about the plan suggests that it received little to no oversight by state representatives, who seem universally incompetent. It blatantly only applied to Allentown, which required an amendment to fix. It blatantly overreached on earned income tax, which required an amendment to fix. Its application in Allentown is highly questionable. One individual was loaned a huge amount of money before any plans were submitted to a supposed oversight committee, which was yet to be formed. That individual now owns most of the real estate in the NIZ zone, including almost a square block across from the arena. More astounding, state income taxes and sale taxes are used to finance his privately owned buildings. Even the state cigarette tax can be used, yielding $millions from tobacco wholesalers he acquired. None of the above is illegal, it conforms with a new law, which received no scrutiny by legislators in Harrisburg. How did this money tree come to be?

In the last general election, seven out of eleven state representative were unopposed. The statehouse has become a closed club, where familiarity breeds complacency. Here in Allentown, Pat Browne wisely included the Morning Call building, although it was outside the NIZ map rectangle. News coverage of the arena and construction resembled promotion from an advertising agency. The attitude is that maybe everything is light on fairness, but Allentown's changing for the better.

Although Pawlowski was used as a prop to cut the ribbons, the NIZ was way above his pay-grade from it's start. He tried to use it as a backdrop to first move on to Harrisburg, and now Washington. He's half right, he will be moving. He now is a negative distraction for the Renaissance. The NIZ Barons will pay for his moving van.

The Renaissance, Drive By Shootings, And Resignation

One wonders if there can be a true renaissance, when drive-by shootings are occurring three blocks away. Although discussions of this sort are referred to as nay-saying in Allentown, that reality is affecting the marketplace. Lehigh Valley Health Network was supposed to put their orthopedic satellite on Hamilton, at the arena. After realizing that patients wouldn't go there, they chose the Westfield Building, out on Tilghman street. To fulfill their obligation to J.B. Reilly, they instead installed a fitness center. However, to induce employees to go down there and use it, they must now hire security personnel to escort the nurses to their cars. Although Pawlowski and his police chief say that crime is down, the nurses know better, they see too many victims. Reilly is succeeding in inducing a critical mass of office workers into the zone. They will need lunch, and there will be a market for restaurants. The success of any shops remains to be seen. How many new apartments can be supported, and who will occupy them, also remains to be seen.

Rumors are starting to circulate that Pawlowski is making plans to resign. Consequently, there are discussions on who council would appoint to replace him. This blog will wait to address that topic when a change occurs. However, the uncertainty doesn't help Reilly's Marketplace.

artwork courtesy of Mark Beyer

The Honeymoon Is Over

In just a few days time the local newspaper has gone from writing puff pieces to stalking the moving truck driver at Mike Fleck's house. Yesterday, somebody asked me if I feel vindicated, because this blog has been questioning the values of this administration since 2007. Understand, that back then, even the other bloggers thought that I had a personal axe to grind. Truth be told, I was offended by the inequitable policies of city hall, and the hubris and arrogance with which they were implemented. I'm offended that the NIZ fronts one man the money to build $half a billion dollars of real estate, then has the taxpayers pay his mortgage. Although the newspaper is now stalking some of the players, don't expect them to scrutinize the NIZ, they're part and parcel of it. I'm offended that although I have been championing for the WPA structures in our park system for years, half of Lehigh Parkway is now essentially closed from neglect. I'm offended that voters in this town accepted a mayor telling them who to vote for on city council and the school board.

Although these are indeed interesting times politically, this blog will go back to championing for the traditional values which make this town great. Contrary to popular hype, those new shiny buildings are not a renaissance for Allentown. They are just a real estate portfolio for a few chosen men. For a true renaissance we need values, which are solely lacking here in Allentown.

The Neuweiler Brewery, A Pawlowski/Fleck Shenanigan

The City of Allentown stole the brewery from the rightful owner. Just as the former merchants of Hamilton Street were never allotted the opportunity to benefit from city arranged grants or the NIZ, the former taxpaying owner of the brewery was never given any assistance. Mayor Pawlowski can't stand private investors: If he didn't give you a grant, you're not worth much.

In the early 70's, the City and Redevelopment Authority gave control of the Neuweiler Brewery to a friend. Under the City's watch, windows were removed and exterior walls broken through to remove the brewing tanks and piping for scrap. All metal, wires and any object of value were crudely ripped out in an orgy of demolition. With a large opening in the back wall smashed out, the basement was used as a free landfill by a roofer.

Still, the building remained iconic, because of it's rich industrial architecture. In 2003, a New Jersey investor bought the building in the condition shown in the photograph. The building has been in that condition since the late 70's. His hope was at some point the City would appreciate the landmark, and cooperate in its revival. He must have found the building citations from the Pawlowski administration mind-numbing; Can you image being held responsible for carnage committed by a previous owner under the City's watch? Mayor Pawlowski, afraid someone might want to invest private money in Allentown and pay real estate taxes, actually had the Neuweiler owner jailed when he came to Allentown to discuss the property. The city, then seized the brewery. The former Neuweiler garages, behind the brewery, had been sold years prior to a roofer. A couple years ago the City purchased the roofer's portion,  reuniting the parcel. In May of 2013,  it was announced that Ruckus Brewing was buying the Neuweiler property from the city, and could indeed use NIZ funds for it's redevelopment.

Ruckus was nothing much more than the hype of a young marketing promoter, represented locally by business consultant Mike Fleck.  It has no actual brewing experience,  no experience operating a brew pub,  no real estate experience,  with a very limited distribution of some small beer labels, brewed by contract  elsewhere.  The business,  a marketing office in New York City, already  featured Neuweiler Brewer's Hill Project on their website, as an accomplishment,  to attract investors.  They were actually seeking outside investors on the web, when given the option by the city in 2013. Given extension after extension by the city, they finally settled on the brewery in 2014.  In February of 2015, they were hooked up with the city commercial and economic development agency,  providing more documentation with which to continue seeking  investors.

Above, I compiled excerpts from my previous posts outlining the City's complicity in distressing a property with a first owner,  then stealing it from a second owner, and finally promoting a third owner, with no capital or relevant experience, but the right connection.   molovinsky on allentown, providing the real story behind local shenanigans.

Schlossberg and Schweyer Should Share Shame

Last evening, Michael Schlossberg and Peter Schweyer appeared on the WFMZ segment about Pawlowski. Both these state representatives agreed with Pawlowski suspending his senate campaign, to concentrate on being mayor. Up until this past weekend, both these boys were supporting Pawlowski's political agenda, including his recommendations about who should sit on the school board and on county board of commissioners. For years, both boys were yes Pawlowski bobbleheads on city council.  Only here, in the valley of political mediocrity, can they get away with such duplicity. School board candidate Charlie Thiel, last week part of Pawlowski's PAC, this week is sharing the scandal stories on his facebook page. These people think that if they change their shirt, they're absolved of any connection with the unfolding drama. With the local conventional media, they are correct about there being no political memory or consequence. However, there also exists an alternative source of scrutiny, thanks for reading molovinsky on allentown.

Morning Call Puppies Waking Up

Readers of this blog know how exasperated I've been by The Morning Call. Although their columnists and reporters had the bully pulpit, they instead wrote one puff piece after another about Allentown's Renaissance. When I complained about the inequities of the NIZ, Bill White actually referred to me as misguided. Today, fellow blogger Bernie O'Hare wrote a laundry list against Allentown mayor Ed Pawlowski. Although O'Hare and I differ on our approach, he targets who he perceives as the perpetrator, I attack the flawed policies, many of his examples today linked back to my blog. Today, the Morning Call is finally forced to wake up. Media sources in Philadelphia are reporting the growing scandal which occurred in the Morning Call's back yard, while they reported on puppies and dining choices. This week I will reprint some posts on abuses which should have been noted by the local media.