The other side of the Tax argument… Should residents pay for warehousing?

Ongoing dialogue about the tax issue.

Last week, I posted about Home Rule Charter. It’s the lynchpin of Commissioner Conrads proposal to replace property tax with an increased earned income tax. The problem is almost no one understands what Home Rule Charter is. Including myself until I started researching it. I’m still learning. As I outlined last week it’s a complicated undertaking. There are positives and negatives. One negative being it is not easy to initiate. It takes both time and alot of money. I thought it was important to get people thinking about Home Rule.

Today, I wanted to spend some time talking about arguments I’ve heard in favor of property tax. It’s important to present both sides of the argument. To understand the argument, we need context.  4 years ago, the township refused to fight a quarry proposal and instead engaged in a Memorandum of Understanding that resulted in 700 acres of farmland (Over 1 square mile) rezoned to mostly industrial.

Industrial and Orlic = Distribution warehouses. In this case, large distribution warehouses. This is our new reality.

The pro property tax argument centers around our growing inventory of commercial and industrial development. Since we’ve gone down this road with no turning back some argue warehousing is a key to our fiscal equation. Much like Upper Macungie. This, in my opinion becomes the most compelling counter argument for a property tax.

To put it simply, the EIT plan let’s warehousing and large commercial shopping centers off the hook.

Remember, there is no single use in the entire township that generates more liabilities than distribution warehouses. Under Ryan Conrad’s proposed plan warehousing contributes very little to Lower Macungie’s tax base aside from LST and one time windfall.

You can further assume that a large number working at these large distribution warehouses are folks from outside the township. (evidenced by LANTA’s push to expand lines to them) Because of this we capture little EIT from employees locally.

I have a hard time trying to reconcile warehousing paying so little in local taxes with my belief that development should pay it’s own way over the long term. Residents should not carry the bag for industrial and commercial development.

Here are some numbers to think about. Under .33 mil property tax proposal.
A 200,000 residential home: = 66.00 in property tax
8,000,000 Shopping Center (Trexlertown mall) = 2,640.00
*24,000,0000 Industrial Warehouse: = 8250.00 in property tax.
*74,000,000 projected value of Hamilton Crossings: = 24,420.00 (/2 with TIF = 12,210.00)
*Assessed values based on County website
**Based on TIF narrative 

Here is my question to residents:
Now that Commissioners have doubled down on warehousing, isn’t it sort of crazy not to cash in? 

Help Alburtis Fire Dept. win new imaging camera

From Alburtis Fire Dept. FB page:

Please take a minute and vote for the Alburtis Fire Dept to win a new TI Camera from MSA. If voting from a computer this link should take you right to the page. If voting from your phone click view and vote and our pitcher is #41, It will be on the 4th page. Just look for the below photo. Once on the page click love it. Thanks It appears that you can vote once a day so please go on every day and vote.
Macungie Fire Dept., Alburtis Fire Dept., Lower Mac and in fact all our local fire dept’s all work together to provide coverage from our area. Equipment benefiting one benefits us all! According to the FB post the departments current thermal imaging camera is older and unreliable.
How to help:
1. Login to Facebook
2. Find Alburtis Fire Dept. Page by clicking this link
3. Follow directions!
Takes 10 seconds. You don’t have to sign up for anything.

Youth movement in Lower Macungie Township

The average age of myself, Brian Higgins and Ryan Conrad is 35. This will bring the average of the Lower Macungie Board of Commissioners to around 45 along with Doug Brown, 55 and Jim Lancsek who will be the elder statesmen at 60.

The previous composition of the board averaged nearly 60 in age. Ron Eichenberg and Roger Reis the outgoing incumbents were 67 and 70.

There are at least 4 township volunteers serving on the EAC, Parks and Public safety boards under 40 who have applied and were appointed over the last year or so.

I think this is great and I’m excited to be a part of a young forward thinking board. The current age composition is much more in line with our demographics where the median age is 41. It would be nice to have a little more diversity on the board. I know one woman I hope runs in two years. The best person for the job regardless of gender, age or race should win elections but diversity is never a bad thing.

Penndot in a nutshell.

A resident submitted a request to explore the speed limit on Willow Lane/East Texas Rd. a few months ago. Since Willow Ln otherwise known by Penndot as “State Rt. 3003” is a state road even though local Commissioners agreed in theory to a speed limit reduction the request had to go through the Ultimate Bureaucracy (tm) of PENNDOT.

Now bear in mind this section of Willow Lane goes through the Village of East Texas. It’s a long time residential neighborhood. In some cases homes are 20 feet away from the roadway. It’s an area that’s been a residential community for almost a century. The area of study encompassed East Texas Rd. at Brookside through East Texas to just beyond the Willows Restaurant.

Fast forward. I was wondering what was up so I emailed Bruce our Township Manager for an update. I rec’d the following letter from Penndot that was sent to LMT.

Here is everything wrong with Penndot in a nutshell.

Follow me here. Residents submitted a petition signed by nearly the entire neighborhood requesting a speed limit reduction since they felt the speed didn’t match up with the residential character of the Village of East Texas. The township supported the request. In fact they even identify East Texas as a traditional town center area. In other words all interested parties who actually understand the context of the road agree.

But based on one sized fits all engineering guidelines, Penndot’s answer is….. wait for it. . .

To actually increase the design speed of the road!!!

Let that sink in. This my friends is insanity. Penndot’s answer is increasing design speed by widening the street, flattening the street, removing all trees so cars can drive faster, THEN posting a speed limit so they slow down?

Penndot completely ignores the context and character of the roadway with it’s one sized fits all application of the 85th percentile speed. It applies standards blindly as if every road was a connector street.
85% speed followup post.

This letter reflects everything parodied in this wildly popular strongtowns.org youtube video entitled “Conversation with an Engineer”. Everything wrong with the “Ultimate Bureaucracy” ™ of Penndot. If you have never seen this take a moment and watch it. I can’t wait til we come up with a community serving plan for Hamilton Blvd. and Penndot just completely torpedoes it. Can’t wait….

 

 

NOTE: I’ve contacted the offices of Rep. Schlossberg (serves on transportation committee), Rep Mackenzie who represents LMT and State Senator Pat Browne. I wish to have them walk this neighborhood and see the situation on the ground. I will report back when I get replies. 

1PM: ADDED SOME PHOTOS FOR CONTEXT for those not familiar with the neighborhood.

Speeding problems? Cut down the trees so it’s safer for cars to drive faster!!!

Residential character that the “one sized fits all” Penndot design standards completely ignore.

The gentleman who first circulated the petition lives in this area. He was absolutely correct to request a speed reduction. Turns out almost 100% of his neighbors agree.

BOC Agenda preview 10/3

FYI – This is a practice I started and will continue as a member of the BOC. With these previews while I may indicate a voting inclination, it in no way means my mind is made up on any issue. Back during a critical hearing for the Jaindl issue, a Commissioner once spoke before public comment outlining he was voting to move forward the project regardless of what people said during public comment. That was wrong.

My hope is this opens the door for conversations before public meetings. One of my biggest issues with the Jaindl debacle was people didn’t truly understand what was happening until it was “too late”. I plan on doing everything I can to make sure residents have background information and my thoughts on issues before they come to a vote  in front of the board. This is one mechanism to do that.

Executive session – Clerical union contract review – I believe Bruce Fosselman and Ryan Conrad (chair of budget and finance committee) are the designees to negotiate. I think this is a strength of Conrad’s and I’m happy he has this responsibility.

Hearings and Approvals

Shepherds Corner – Development project on the corner of Krocks and Hamilton Corridor. At this stage I would vote to approve this project. However, had I sat on the planning and zoning committee when this plan came in as a sketch at that point I would have encouraged the developer to consider swapping the storm water features to the front of the building and moving the parking to the rear.

If you ever drove past the medical office on Walnut St. in East Macungie near the Buckeye tavern it’s a similar look with attractive storm water features in the front. I think that a landscaped storm water basin with split rail fencing presents a very pleasant street scape. This would be something more in line with our vision for a “world class boulevard”. Something less “strippy”. To achieve this we need to encourage developers to pay attention to curb appeal. The time to do this is very early in the process.

One of the biggest things that makes a strip development a strip is locating the parking in the front so it becomes the dominant feature.  It is important to shield the parking from boulevard. Thats the difference between a “Boulevard” and Macarthur Rd. or any other strip. We have Commissioners who talk about the world class boulevard and that’s wonderful yet they keep approving strip (or strippy) projects. Shepherds Corner is not a terrible project. (I reserve that label for plan approvals like the “American Kitchens” approved plan) It could be alot better but at this point it is what it is. And that is what we need to shoot for design wise if we want to have a “World Class Boulevard” in our township. Main Street design. Not strip design with some bells and whistles.

Ideal form of Hamilton Boulevard Buildings. This emulates a classic Main St.

This would be the ideal form of commercial/office development on Hamilton Boulevard. I believe we need to start proposing a unified vision. One way to do this is to present photographs of desired “look” to developers early in the process. This would be a model I would encourage.

*Note this project is tied to (because of shared stormwater) Hamilton Crossings. It’s unlikely it would happen without Hamilton Crossings being built.

Plan approval for Millbrook farms – This is another project that has been in the “pipeline” for awhile and I would likely vote in support of. Millbrook farms is a great subdivision with a very active HOA who is currently working with the township to utilize tree-vitalize grants to enhance their public realm.

Engineering – Acceptance of roadways for Liquid Fuels Reimbursement.

What is the Liquid Fuels Tax 
A tax of 12 cents per gallon is imposed on all liquid fuels (primarily gasoline) used or sold and delivered in Pennsylvania. The tax is imposed on the ultimate consumer, but the distributor is liable for collecting and remitting the tax.

 

Portions of this tax are then distributed to municipalities. The amount we receive is based on miles of roadways and population. There is a very specific list of items the township can use this state money for.  Primarily it consists of repair and maintenance of roads.

Authorization to advertise Act 537 ordinance – See last months meeting agenda preview for an overview of Act 537.

Township Manager’s Report – Last meeting the board instructed the the manager to continue with the process to subdivide and sell the Kratzer farm house. As you might recall, I and others including the Parks board, EAC and Planning commission formally expressed concern with a previous plan to subdivide the house, barn and driveway. More information here

We were successful in convincing the board to explore the value of the access (driveway) and the barn for a potential future greenway trailhead. The discussion at the time was to hold off on any subdividing until the results of the parks and recreation comprehensive plan were completed and presented. At least that was mine and others understanding.

At some point the discussion shifted and the process moved forward with the house. At last weeks meeting I would have voted against an authorization to instruct the manager to move forward with an appraisal and I would have honored the previous discussions to stop the subdivision process entirely until the park plan addressed the issue.

General Admin – One item on the Gen Ad agenda is the creation of the TreeTenders AD-Hoc committee. I support this in lieu of a shadetree commission. I attended the tree-tender training and think it’s an excellent program.

 

No political party owns “smart growth” issue

As a Republican I’m often frustrated with the notion that one party owns “smart growth”.

Republicans fall into certain traps regarding “smart growth” and the big picture behind it. The big picture in my opinion can be boiled down to one sentence. Smart Growth is about making growth pay it’s own way. It’s about rolling back gov’t subsidies for suburban sprawl and leveling the playing field. Charles Marohn and the strongtowns organization is dedicated to raising awareness of the fiscal issues with sprawl. Sprawl is a by-product of decades of gov’t meddling with the market.

It all comes down to the “growth ponzi scheme“.
The ponzi scheme is:

When a local unit of government benefits from the enhanced revenues associated with new growth, it also assumes the long-term liability for maintaining the new infrastructure. This exchange — a near-term cash advantage for a long-term financial obligation — is one element of a Ponzi scheme. – Strongtowns.org

There is a problem out there among certain conservative circles because there is a total misunderstanding of what smart growth is and means. Again for me it’s based on the paragraph above. And I can’t think of anything more conservative. Think about it, I want growth to pay it’s own way. I want to eliminate the subsidies so the playing field is even. I want to save taxpayers the burdens of the 2nd and 3rd lifecycle of greenfield development so we can keep tax rates predictable, stable and low.

So why don’t conservatives flock to “smart growth”?

I think you can chock some of it to blatant mis-information. Misinformation that is perpetuated by the extreme right wing crowd. I’m talking about the kind of folks that carry around ridiculous “agenda 21” pamphlets to public meetings. Smart growth is an easy target because as Bacon points out in the interview linked to below “planners use terms with political baggage meaning half of America tunes it out as white noise“. When you use terms that only other planners understand it becomes easy to mislabel a movement. This is a problem with the planning community and their refusal to be “jargon conscious”.

Nobody makes the case that conservatives should be smart growth champions better then James Bacon:

Political conservatives should be smart growth champions, with James Bacon

If you walk into a Republican-sponsored function and boast about supporting “smart growth” people will assume you hate liberty, you promote centralized planning, you oppose family values, and you think trees are more important than humans.

Smart Growth for Conservatives

Smart growth is too important to leave to liberals. Conservatives must articulate their own vision for creating prosperous, livable and fiscally sustainable communities.

The most important historical aspect one must understand to “get” why a conservative would be so passionate about smart growth is the fact that throughout the last 30 or so years gov’t entities including local, state and federal have been in the business of subsidizing sprawl.

Here is a post full of examples:

Conservative pols hate gov’t subsidies, unless they subsidize sprawl.

How do conservative voters and politicians square their hatred for government subsidies with their city-shunning sprawl patterns that suck the lifeblood out of local governments – and taxpayers? Outward sprawl forces jurisdictions to keep building new roads and schools and to extend emergency services farther and farther afield. Sprawl induces driving and leads to more public pressure to expand roads — a vicious circle of new development and new roads. Even in rural areas, one lane mile of new road can cost up to $9 million

 

Kratzer Farm Information

My letter to planning commission (CC: Board of Commissioners & Staff) sent 7/5/13

Planning Commission,
A few items for consideration at your July 9th meeting.

1. The Kratzer house, barn and driveway should not be subdivided until results of the Parks and Recreation comprehensive plan are presented. Since we are already engaged in this comprehensive planning process (that was unanimously supported by the BOC), committee feedback will be valuable to determine whether the house, barn and/or driveway present any value in regards to the overall goals of a permanently protected centralized passive park and/or the Greenway system. Potential uses for the house, barn and driveway should be an agenda item at a future Parks and Recreation Comprehensive plan meeting.
2. If the parks and recreation comprehensive planning committee recommend that the house, barn and/or driveway should be sold, then funds from the sale should be used or earmarked for future improvements to the Kratzer Farm Park only.
Some potential items include:
  • Park access
  • Creation of a major central trailhead to the Greenway
  • A trail section
  • Master planning
2. A master plan for the 88 acre park should be considered. One question that should be examined is whether the approx 50 acres of active farmland (currently leased to farmers) should be permanently preserved. If 50 acres can be preserved the remaining 38 acres can continue to be dedicated to greenway, naturalized forest and community gardens.To accomplish this goal:
A. The township could apply to sell agricultural conservation easements to Lehigh County. According to a representative from the program the parcel would likely be valued a high priority since it contains fertile limestone soil. Further the agricultural conservation easement area may be drawn in such a way as to allow Greenway trail along the Creek and perimeter of the property. This should be explored in terms of feasibility so it can be considered as one potential option.


Proceeds from a potential sale of the agricultural conservation easement on the Kratzer farm could be used for protection of other farmland or open space in the township or construction of a section of greenway.
B. The township could explore placing deed restrictions on the property. 

Thank you
Ron Beitler
CC: BOC & Staff


My position
 statement from March (I first spoke in front of the board on this matter in March 2013). Note in original board comments I urged the township to consider applying the farm to the county program for this budget cycle. I rec’d a garbled response from Mr. Eichenberg.

The Kratzer Farm is centrally located in Lower Macungie Township. It’s strategic centralized location makes it immediately accessible to thousands of township residents easily and safely within walking distance. The park was purchased by a previous Board of Supervisors 15 years ago for the intent of land preservation in a rapidly growing township. The scenic landscape and fertile limestone soil make this a community treasure. The adopted greenway plan will further improve walking access and functionality of the park making it a potential township “Central Park”. The Kratzer Farm should be a destination, centerpiece and focal point of the greenway system. READ ENTIRE POSITION HERE

Letters from:

 

Planning Docs

 

Articles

“The EAC urges the Board of Commissioners to initiate a formal study of all options for future use and/or disposal of the Kratzer Farm property. The recommended study should evaluate all potential future options for this tract, including subdividing and selling portions of the Kratzer Farm, selling development rights for the property, and all potential recreational uses and the access needs for those potential recreational uses.

“Accordingly, the EAC recommends that no further efforts to subdivide and sell the house, barn, and driveway at the Kratzer Farm should proceed until the recommended study is completed and then only if that study finds that it is clearly in the best interest of Lower Macungie residents to sell any portions of the subject property.”

Parks Letter

Greenway plan maps

Kratzer Farm Lower Macungie Map

Map of 88 acre Kratzer Farm. The 1.5 acre proposed subdivision is directly in the center off the best existing driveway.

Can incumbents buy election?

The Lower Macungie Township Commissioner race has heated up to the point where special interest money and misleading ROBO calls have now flooded the township.

Two items I want to address head on.

1. Special interest money is a major problem. Finance reports show an astronomical amount of outside the township money being spent on this local primary race. Over 20,000 dollars have flowed into the incumbents coffers from the Alliance for a better Pennsylvania. The group based out of Lemoyne, PA produced and paid for the “fake newsletters”, ROBO calls and television ads is a front group for the PA Realtor PAC.

Two reasons it’s critical to follow the money trail:

(a) For the past 3 years I’ve questioned various real estate conflicts of interest regarding development decisions. This proves who the incumbents answer to. It’s not residents.

(b) The PA association of Realtors is against traffic impact fees. I believe impact fees are an important protection for a community facing continued growth pressure well into the next decade.The levying of impact fees on large-scale greenfield developers is one of the reasons we have avoided a property tax. I do not believe there is any way to maintain a 0% property tax rate without impact fees.

The incumbents are selling the township to outside interests….Is your vote for sale?

Want to Help Replant Sauerkraut and Willow Lane Trees? Here’s How

After - Sauerkraut Lane in Lower Macungie Township

After – Sauerkraut Lane in Lower Macungie Township. After PPL tree cutting.

When trees were clear cut on Willow and Sauerkraut I was hoping residents affected would band together to spearhead an effort to re-plant in light of the township failing to take the reigns. The entire community is affected by the unfortunate decision to remove the streetscape buffer.

It comes down to property value. For me, a house is the biggest investment I’ll make in my life. That rings true for most people. Residents not only adjacent to affected streets but also nearby lost property value. Street-Scapes add value to our community.

There is alot of interest in residents taking matters into our own hands and addressing the issue. Residents I’ve spoken with are interested fundraising and coordinating an effort to replant the buffer with approved small trees and shrubs in appropriate locations.

Neighbors working together is critical. Streetscaping is only effective when it is coordinated. It’s a design issue but the most cost effective strategy. Compatible trees and shrubs can be purchased in bulk. A unified design will make the replanting more attractive and effective. Plus it’s a great way for residents to work together to take a disheartening situation and make the best of it.

We can take this situation and make the best out of it. Who knows, a new street-scape with flowering dogwoods, redbuds, ornamental grass, low lying evergreen shrubs and witch hazel would be beautiful all 4 seasons. (all these species are approved by PPL and endorsed by the EAC) We could make the street-scape even better then it was before.

I’ve talked already to one landscape service willing to discount or donate resources.

I live near but not directly adjacent to the cutting, but I feel strongly about the community wide benefit of replanting. I’ve spoken out at many meetings over the last 2 years regarding the benefits of a coordinated, attractive streetscape.

  • Traffic Calming. Studies show cars drive slower on tree lined streets. (Trees in travel perception)
  • Stormwater Management. Trees absorb 30% of precipitation through leaf and root system.
  • Safer walking environment
  • Softens the harsh features of utility poles.
  • Added value to all our homes. Up to 10% increase in nearby home values.

Do you live adjacent to the cut zone? Are you willing to volunteer time or resources to help restore the neighborhood to it’s prior charm? Winding Brook resident Randy Fritz is coordinating an effort to look into alternatives and options. Please contact him at GIJoe196910@yahoo.com.

Here is the before image. An evergreen stand went the length of Sauerkraut Lane adjacent to Winding Brook Manor in Lower Macungie

Growth issues: The key is Free market solutions for land preservation

At the ‘smart growth workshop‘ meeting this past Tuesday one of our volunteer planners said point blank that he ‘has concerns with the current board of commissioners being too accessible to developers.’ That the process has become “backwards”.

I tend to agree with this assessment and feel as though the Allen Organ project is the prime example. After having attended or watched every BOC meeting either in person or via webcast over the last 2 years I have witnessed this first hand.

Our current board is consistenly deferential to developers. Why? There is a difference between handing out gifts and landowner’s rights. Ron Eichenberg and Roger Reis the prior two presidents of the board who in turn speak for the board have and will continue to attempt to blur that important distinction in the upcoming election. The residents having a voice in the way we grow is consistently circumvented.

Yes, landowners have rights. That is a fundamental American value. I have personally advocated for protecting them. The solutions I have proposed are market based. Solutions such as transferable development rights programs. I can’t think of a solution more soundly grounded in conservative principle then one that solves our open space preservation issues with a market based solution.

As a commissioner I will not vote to hand out intensity/density without proper rationalization and due diligence. I will not allow a sketch plan to dictate a critical new zoning ordinance.

Free market solutions such as a TDR program will eliminate even the appearance of cronyism. If the township creates a mechanism for landowners to be compensated for development rights in addition for developers to be able to purchase intensity, then the appearance of cronyism when we simply hand it out for nothing is eliminated.

The landowner get fairly compensated, the township has a mechanism to guide growth to appropriate places and finally residents have a fair way to encourage open space preservation and protect our school district and our community.