New Bethlehem economic development authority formed, may select redevelopment sites next week

A new Bethlehem economic development authority formed to seek a major state redevelopment incentive will meet for the first time Monday.

Bethlehem City Council tonight appointed five members to the new board, known as the City Revitalization and Improvement Zone Authority. The board will be tasked with applying for a Pennsylvania City Revitalization and Improvement Zone, which would allow state and local nonproperty taxes from new development in the zone to help finance construction within it.

The zones have been called a watered-down version of Allentown’s Neighborhood Improvement Zone, which has allowed for a hockey arena and other significant redevelopment projects in the city. Still, Bethlehem officials say an improvement zone designation would be worthwhile for the city and they hope to be one of the two City Revitalization and Improvement Zone cities designated by the state in the next few months.

“It’s clearly going to be a very powerful tool for two lucky cities,” council President Eric Evans said.

Bethlehem officials have said they believe the zone could allow for at least $300 million of new development in the city. Expected to be included in Bethlehem’s 130-acre proposed zone is the vacant Martin Tower along Route 378 and a portion of the former Bethlehem Steel Corp. site that would host a proposed convention center, new hotel and a Bass Pro Shops.

At least two parcels within the South Side business district also are expected to be included. Developer Dennis Benner earlier this week announced plans for a 13-story student housing and retail building on the first block of West Fourth Street and a seven-story retail and office building at West Third and South New streets.

Three Center City business owners tonight pleaded their case to have some of their neighborhood included. The owners of Donegal Square, Hotel Bethlehem and the International Institute for Restorative Practices all said the business district’s inclusion in the zone is critical to the existing businesses’ survival.

“A lot of the businesses on the north side are really having a tough time,” said Donegal Square owner Neville Gardner, who also owns McCarthy’s restaurant. “I think you have to take care of your downtown first.”

What’s included in the proposed zone will be up to the new authority. Its members are: Bethlehem Community and Economic Development Director Joe Kelly, Bethlehem lawyer James Broughal, Easton Community and Economic Development Director Gretchen Longenbach, former Northampton County councilwoman Ann McHale and Bethlehem accountant John Filipos.

Council members -- who approved the authority board with a unanimous vote -- said they felt all the board members were well-qualified.

The new authority will be meeting at either 4 or 4:30 p.m. Monday at Town Hall, 10 E. Church St. Bethlehem hopes to submit its improvement zone application to the state by the end of the month or sooner, officials have said.

Source: Lehigh Valley Live