It is not surprising the well meaning and competent LNP reporter who reported on July 24 “CRIZ 2.0: Big things expected from revamped tax incentive” failed to recognize the significance of a misleading clause that bestowed up to an $18 million rebate of taxpayers money on Penn Square Partners (PSP), equitable owner of the downtown Marriott Hotel. Fortunately the publisher of NewsLanc did see through the obfuscation and broke the story that sent local miscreants into a tizzy.
According to Page 146, item “c” of the Tax Bill: “Recalculation. — The department shall not recalculate the baseline of a zone designated prior to the effective date of this subsection to include the hotel occupancy tax imposed under Part V of Article II.” Clear as mud and dropped out of the clear blue sky!
In apparent response to the NewsLanc’s revelation that had been shared with LNP a week before publication to allow for comments that never came, an LNP article appeared on August 8th entitled “City expecting additional money from CRIZ hotel tax”
The new article hypothesizes a $600,000 annual benefit for up to 30 thirty years for Penn Square Partners, of which LNP is partners with a subsidiary of the High Companies. Moreover, it reports that Randy Patterson, Lancaster city’s Director of Economic Development and Neighborhood Revitalization, acknowledged it.
What is naïve on the part of the same reporter was buying into the notion that that, after politicians had apparently schemed, clawed and traded other favors to players throughout the state to achieve the carve out, presumably led by an author of the CRIZ program Lancaster Senator Lloyd Smucker, that PSP would not make use of its ill gotten gains.
But not to worry! We are to understand from Patterson that Penn Square Partners will not seek to make use of the $18 million gift.
According to the article “…Patterson initially said he had expected the baseline to apply to the Marriott and its taxes… (In other words without consideration of the carve out.) Nor will the additional money be used to finance the Marriott’s planned $30 million expansion. The authority approved CRIZ funding for the project last month, but the revenue will be generated by the expansion once it’s built, not by the existing facility.”
Last week LNP reported “The City Revitalization & Improvement Zone Authority approved Penn Square Partners’ request to use CRIZ revenue to pay debt service on $5.6 million on Tuesday.”
The article, without reference to the carve out, said “The money will be used for site acquisition; furniture, fixtures and equipment expenses; design engineering and land planning and fees.” Note no reference to construction and furnishing.
So we are to understand that Penn Square Partners who more than any other brought us the Convention Center Project… that Penn Square Partners that refused to make any concession to join with others in the grand compromise that then Commissioner Scott Martin arranged to keep the Convention Center from closing… that Penn Square Partners who likely worked hand and glove with legislators to achieve the favorable treatment (including Wikileak’s report of Dale High’s $11,000 in campaign donations to Smucker)… that Penn Square Partners won’t avail themselves of all or any part of the added $18 million subsidy to which they are legally entitled towards the actual construction and furnishing of the proposed Marriott Annex?
All they need to do is to apply.
NewsLanc will be watching. We hope you will too.
I just read Day 3…thank you! I’m betting Bumsted “forgot” that little item about Beemer forgetting he signed a secrecy oath, too.
I could write a book on TIFs. Why didn’t I? Because everyone, including the media, didn’t give a damn that TIFs are just another scheme for developers to rip off. The only people screwed are the taxpayers who don’t understand the process and also don’t write campaign checks.
Something (anything!!) must be done to stop this wanton fleecing of Lancaster County taxpayers and the Lancaster County hotel industry. PSP needs to be put to rest.