Bethlehem wins tax zone designation; mayor likens award to 'CRIZmas present'

The redevelopment of Bethlehem's long-vacant Martin Tower is part of the city's CRIZ plan. (Express-Times File Photo)

At first, Bethlehem wasn't even in the running to be awarded a special tax incentive zone aimed at spurring economic development.

But state Sen. Lisa Boscola successfully fought to change the population requirements so Bethlehem could apply.

Today, Gov. Tom Corbett announced that Bethlehem and Lancaster won the highly sought-after City Revitalization and Improvement Zone designation. Corbett signed the program into law as part of the 2013-14 budget to spur new growth in struggling cities, revive downtowns and create jobs.

"It's an exciting day for the city of Bethlehem," outgoing Mayor John Callahan said this afternoon, likening it to a late "CRIZmas present for the Christmas City."

Eight Pennsylvania cities were eligible for the designation that allows state and local non-property taxes from new development in the zone to help finance construction within it. A portion of new tax proceeds are diverted to support development for a set period of time.

It is similar to Allentown's Neighborhood Improvement Zone, which is funding the downtown hockey arena, but it avoids the controversial diversion of all non-property taxes in the Allentown zone.

When Bethlehem Steel Corp. shut its doors, it left behind an 1,800-acre brownfield and 20 percent of the city's taxable land sat dormant. Great strides have been made but there's still a lot of work to do and the zone is the perfect tool, Callahan said.

A game-changer:

Callahan compared the excitement of the award to learning that Bethlehem had won a casino license.

"This is a game-changer for the city of Bethlehem," Mayor-elect Robert Donchez said.

Bethlehem's application of 11 shovel-ready projects over 129 acres wowed state officials, Boscola said today. The zone includes Bethlehem Steel's former headquarters, Martin Tower, the Steel General Offices and the corner of Third and New streets. Plans call for transforming Machine Shop No. 2 into a Bass Pro Shops, hotel and conference center.

Bethlehem's newly created City Revitalization and Improvement Zone Authority's

Projected timeline:

Year one: The Bass Pro Shops, hotel and convention center, LVIP VII industrial and manufacturing space.

Year two: Third Street urban in-fill projects and the Walnut Street garage.

Year three: Phase one of Martin Tower, Bethlehem Technology Center, Northside Plaza and Long Street surface lot.

Year four: Phase two of Martin Tower

Year five: Remainder of vacant buildings on Steel Property -Source: Bethlehem's application

Now tasked with getting development funding and doling it out to approved projects. Authority Chairman Jim Broughal, a Bethlehem lawyer, pledged things will be done effectively and right.

"We start work tomorrow," he said. The construction will infuse $587 million of private and public dollars into the local economy and generate $15.3 million in annual taxes. The projects are expected to create almost 3,000 construction jobs and almost 4,000 permanent jobs.

These will be jobs for workers all over the Lehigh Valley, not just in Bethlehem, akin to when Bethlehem Steel was the region's economic driver, Callahan said.

He praised outgoing Director of Community and Economic Development Joe Kelly and his team for bringing together all the factions to create a stellar application.

Fast-tracked development:

Early on, Lehigh Valley Economic Development Corp.'s board got behind changing the law because the projects promise to transform the region, said Don Cunningham, LVEDC president and CEO and former Bethlehem mayor.

Developer Mike Perrucci said the designation means it's possible to speed up the timeline and pursue grander plans for the redevelopment of former Steel land and a mix of apartments, retail and office space along Third Street.

The adaptive reuse projects will save the Steel history and create more jobs, he said.

"This gives us an additional tool in which to attract tenants," Perrucci said after a press conference today announcing the award.

The applications were vetted by the state Department of Economic Development, Department of Revenue and the Office of the Budget, Boscola said. All three had to agree on their top two choices, which were sent on to Corbett, she said.

Bethlehem beat out Reading, its top competition, due to its "phenomenal application" and private developers' ability to fund the projects without state help, Boscola said.

It's expected that the state will award more designations in 2015 to cities like Erie and Reading that missed out this round, Boscola said. Corbett promised the state will work to improve the applications of those not selected.

"We're going to be that example," she  said.

A closer look at the CRIZ projects:

Sands Bethworks Retail plans to convert the more than 1,500 feet long Machine Shop No. 2 into a shopping and hospitality destination that keeps the existing architectural history intact. Plans call for a Bass Pro Shops, hotel and conference center adjacent to the Sands Resort Bethlehem Casino and entertainment complex. Bass Pro Shops is expected to draw 2 million unique visitors to the area.

Second-phase plans call for expanding retail businesses and creating new residences on the rest of the tract. Key buildings include the Steel General Office building.

Cost: $106.5 million.

Timeline: Final land development approvals mid-2014.

Transforming the vacant Martin Tower and its 52-acre campus into a mix of office, retail, commercial and residential space to create a premier destination for the Lehigh Valley. It will be a live work environment.

Cost: $175 million

Timeline: Final development plans by mid-2014

A state-of-the-art industrial facility on Lehigh Valley Industrial Park VII land. The space could accommodate a range of manufacturers, processors or other businesses, like pharmaceutical firms, tech companies, food processors and light manufacturing.

Cost: $13.1 million

Timeline: Final land development approval mid-2014

BethWorks Renovations will turn parking lots on Third Street into four-story buildings with retail, office space and apartments. Bringing new residents and workers into the corridor will spur more retail, the city's application states.

Cost: $24.8 million

Timeline: Final land development approval mid-2014

Majestic Realty Co.'s Bethlehem Technology Center is planned on vacant land adjacent to LVIP VII

Cost: $180 million

Timeline: Already has land development approvals

The Gateway to South Bethlehem at the west end of Third Street is an urban infill development of a professional/mixed-use building.

Cost: $5.6 million

Timeline: Final land development approval expected mid-2014

Dennis Benner's ambitious plans for a 13-story student housing and retail complex and a seven-story office and retail complex in the South Side business district.

Cost: $56.5 million, including New Street garage

Timeline: Final land development approval expected mid-­2014

Close to Martin Tower on Eighth Avenue, Northside Plaza will expand on the corridor's medical and professional mixed-use development. Retail and hospitality uses will be on the first floor with medical and professional offices on the upper floors.

Cost: $33 million

Three projects involve using Bethlehem Parking Authority-owned land to drive urban infill development through a request for proposals process to select the best projects to drive jobs into the downtowns. The Walnut Street Garage would add several new floors of office space and residences above the existing garage. The Long Street surface parking lot along Broad Street is being eyed for office space and commercial mixed use. The New Street garage would be a new parking facility on New Street to serve all of the new development. The first floor will have retail space.

Source: LehighValleyLive.com

 

Neuweiler Brewery redevelopment project delayed until summer

A $30 million construction project at the former Neuweiler Brewery site in Allentown will begin a bit later than originally expected.

Ruckus Brewing Co. plans to establish a full-scale brewery operation and other mixed-use space in the 400,000-square-foot project.

Construction was originally expected to begin by the end of 2013 but now has been pushed to no sooner than May or June, as financing details are still being finalized.

Josh Wood, CEO of Ruckus Brewing Co., said the project's prospects remain good and he is optimistic there will be no need for another extension when summer arrives.

"We're taking it day by day and step by step," Wood said. "I'm an eternal optimist but we're working our butt off to get this done."

Ruckus had intended to close on the Neuweiler property by the end of this year, which itself was an extension of its originally projected closing date in October.

But the closing was postponed again until early March because the company is still finalizing the details with some of its financial partners.

"We're still in negotiations so we weren't in a position to sign them and make it official in December so we just needed an additional few months," Wood said.

The Neuweiler project is expected to produce about 100,000 barrels of beer a year. By comparison, Weyerbacher Brewing Co. in Easton produced 14,000 barrels last year.

Ruckus officials previously said they already had much of the financing lined up earlier this year. The project falls within the city's 130-acre Neighborhood Improvement Zone, which diverts nonproperty taxes for redevelopment projects.

Wood said Ruckus also received about a dozen additional financial partners through ForeFund Capital, a crowd-funding model similar to Kickstarter that is newly available for real estate ventures.

Wood said the first phase of the Neuweiler project will cost an estimated $15 million. Ruckus would be responsible for about $5 million with the remainder covered by a combination of NIZ funds and federal historic site grants.

Source: LehighValleyLive.com

Firings at Lancaster County's youth center weren't anti-union, Pa. court finds

Were two security officers at Lancaster County's Youth Intervention Center fired because they were caught on video taking snacks from a co-worker, or were they canned for backing a drive to unionize their jobs?

The Pennsylvania Labor Relations Board concluded that Tommy Epps and Adam Medina were axed by county officials out of anti-union spite in June 2010.

But on Monday, Commonwealth Court in a split decision overturned the labor board's ruling, finding instead that there is not sufficient evidence that Epps and Medina's firings were linked to their union activities.

The court's stance marks a victory for county officials, who argued that Epps and Medina were terminated not because they were pro-union, but because they set bad examples for the juveniles, including criminal offenders, they were charged with supervising.

The case revolves around action, reaction and timing.

Three years ago, Council 89 of the American Federation of State, County and Municipal Employees was trying to bring security guards at the juvenile center into the AFSCME bargaining unit that already included Lancaster County's prison guards.

Epps and Medina favored unionization and told their immediate supervisors they backed the AFSCME effort. In June 2010, AFSCME filed a petition with the PLRB to represent the juvenile center guards.

Less than two weeks later, a co-worker of Epps and Medina reported to her supervisor that someone had stolen snacks from her workplace mailbox. The supervisor reviewed video surveillance recordings, which showed Epps, Medina and a part-time worker taking cookies and chips from the co-worker's box.

Epps and Medina admitted taking the snacks, although Epps said he thought the box belonged to another worker who had given him permission to take the food. Medina said he believed he had removed the snacks with permission.

The co-worker who reported the thefts told her supervisors she didn't consider the food removal to be a big deal.

Still, Epps, Medina and the part-timer were fired. "We work with residents that are detained, some of them for theft charges, and we expect our staff members to come and be role models for these residents," center Director Drew Fredericks wrote of the decision to axe the three.

Medina and Epps filed grievances challenging their firings with the county, but lost. AFSCME then filed an unfair labor practice charge against the county.

County officials appealed to the Commonwealth Court in 2012 after a state hearing examiner and the PLRB both concluded there was something fishy about the firings and ruled that the county had violated the state Public Employee Relations Act.

The hearing examiner found the timing of the firings to be suspicious, given the nature of the offenses and the simultaneous union organization drive. The examiner noted that the county fired Epps and Medina rather than employing its progressive discipline policy that allows for lesser penalties like suspensions. That added up to an anti-union act in the examiner's view.

In overturning the PLRB's ruling and upholding the firings, the Commonwealth Court majority found a lack of proof that Fredericks, who made the firing decisions, knew about Epps' and Medina's pro-union activities.

"There is no evidence in this case of anti-union sentiment," Judge Patricia A. McCullough wrote in the majority opinion.

Lack of a link between the firings and the union drive is bolstered by the fact that the part-timer who was caught taking snacks also was fired, and she had not engaged in union activity, McCullough noted.

She concluded that the timing of the terminations doesn't prove county officials were out to get Epps and Medina for their union backing, either.

"If the timing of the county's discipline in this case were a strong indicator of anti-union animus, then employers would be prohibited from disciplining their employees for legitimate reasons just because the employee engaged in pro-union conduct prior to committing work-related infractions," McCullough wrote.

The lone dissenter on the court, Judge Bernard L. McGinley, argued that his colleagues ignored plain evidence.

The PLRB was not wrong in concluding that Fredericks likely knew that Epps and Medina were union advocates, McGinley wrote, and the timing of their firings seems to provide evidence of retaliation.

He noted that, while they axed Medina and Epps for taking snacks, county officials didn't probe other reports that a cell phone had been stolen, claiming no investigation was done in that case because the victim didn't file a written report. "If the theft of snacks warranted dismissal of two employees, it would follow that the theft of something more valuable…would merit an investigation," McGinley wrote.

The firing of Epps and Medina, therefore, must be regarded as examples of "disparate treatment" and the PLRB had grounds to find that the firings had to be based on anti-union bias, he concluded. 

Source: PennLive.com

AFSCME District Council 33 announces contract settlement with Philadelphia Parking Authority; four year deal contains increases in wages and health benefit contributions.

For Immediate Release - AFSCME District Council 33 announces contract settlement with Philadelphia Parking Authority; four year deal contains increases in wages and health benefit contributions.

Dateline: Philadelphia, PA Monday, December 30, 2013 3:00 pm

Contact: Bob Wolper, 215-896-2970

Source: AFSCME District Council 33

Pete Matthews, the President of AFSCME District Council 33, the City Municipal Workers Union, along with Barry Cox, President of Local 403, Bobby Davis, President of Local 696 and Frank Halbherr, President of Local 1637 today announced that a four year contract settlement between local unions in District Council 33 and the Philadelphia Parking Authority (PPA) has been unanimously ratified by the union’s membership.

The agreement, also approved by the Board of the PPA, calls for bonuses for members, based on seniority, of between $600 and $2,400 as well as a 2.5% wage increase retroactive to September 1, 2013 and additional wage increases of 3% on September 1, 2014, 2.5% on September 1, 2015 and 3% on September 1, 2016. It also contained a schedule of technology fee payments to Parking Authority employees based on their job classifications.

Matthews announced that the Parking Authority also agreed to make increased contributions to the union’s Health and Welfare Fund.

“In addition to these increases in wages, bonuses and other increases as well as increased health benefit contributions for our members it is important to note that District Council 33 agreed to a contract that was fair to its members, the Parking Authority and the citizens of Philadelphia,” said Matthews. “This settlement is a result of honest bargaining with an employer that respects their employees.”

Parking Authority Board Chairman Joe Ashdale and Executive Director Vince Fenerty agreed with the settlement noting the urgency in reaching an accord with the union by stating that PPA employees had not had a raise since 2007 and that the PPA had a responsibility to provide “a living wage and reasonable benefits” and further characterized the wage increases as “modest” and the benefit increases as “adequate though not extravagant”.

Matthews said the contract settlement with the Parking Authority should serve as an example to the City of Philadelphia on how to achieve a fair contract settlement and bring a successful conclusion to a contract negotiation that has dragged on for more than five years due to the Nutter Administration’s insistence on what Matthews characterized as “unjustified concession demands” (i.e. furlough days, pension adjustment, work rule and health and welfare benefit changes). Matthews said that all District Council 33 members have continued to work in every department in the City for the last five plus years, (i.e., trash collection, snow emergencies, and crossing guards protecting our children), have not gone on strike and have helped the City financially by foregoing raises and health care increases during that time.

That opinion was recently shared by City Councilman Bobby Henon on his Facebook page. Referring to the catastrophic water main break on Frankford Avenue in Northeast Philadelphia as a specific example, Henon noted that District Council 33 members have been “working 12-16 hour work days during the holiday season on water main breaks from 2 inch to 60 inch mains – ALL without a contract”.

Matthews said that District Council 33 members, just like members working for the Parking Authority, have earned the right to a fair contract settlement as a result of their dedication and the sacrifices they have already made.

The union was instrumental in helping the Nutter Administration achieve legislative approval for an increase in the sales tax which generated over $425 million in new revenue and allowing pension trustees to defer pension payments saving the City millions of dollars.

“District Council 33 members who work for the City have waited long enough, and contributed more than their fair share to help the City through the recent recession, not receiving health benefit and wage increases in over five years,” said Matthews. “That has resulted in hundreds of millions of dollars in savings, five balanced budgets and kept the City on a steadfast growth to a Wall Street A plus bond rating that the Mayor himself said reflected the City’s strong financial management practices. It is time for the Nutter Administration to step up and follow the lead of the Philadelphia Parking Authority and get these contracts settled.”

Area schools get money for new roofs, energy projects

Next year is likely to be a good one for companies that provide roofing and HVAC systems for New Jersey schools.

The state Schools Development Authority this month announced almost $508 million in funds for 1,538 construction projects in 331 school districts. The majority of the projects address health, safety and energy efficiency issues such as roofing, ventilation, heating systems and security.

Local district officials welcome the funds, though they are a bit wary about whether a bill for the grants might come due down the road.

Schools in Atlantic County will get $19.5 million toward 45 projects in 13 districts. Cape May County will get $5.8 million for seven projects in six districts. Cumberland County will get almost $296,000 to support six projects in three districts, and Ocean County will get $26.5 million for 90 projects in 12 districts.

The money represents at least 40 percent of the total cost of eligible projects in regular operating districts. Funds for the 31 districts labeled special-needs by the SDA, including Pleasantville, Vineland, Millville and Bridgeton, are allocated separately.

School districts submitted proposals for projects, and some still may have to go out to the voters for approval if they intend to borrow money through bond referendums for their projects. But with voters skittish about spending, several school officials said they have been saving money in capital reserve accounts for their projects and will be able to fund them without borrowing.

Galloway Township received $2.4 million toward a $4.3 million project to replace roofs at Roland Rogers and Smithville elementary schools, and fire alarm systems at the Reeds Road, Roland Rogers and Smithville schools.

The district twice asked voters to approve bonding the projects and was rejected both times. Galloway Superintendent Annette Giaquinto said the district instead has been putting money aside each year, and replaced the roof and storm-water drainage systems at Arthur Rann Elementary School last summer. The state grants will allow them to complete the other projects.

Hammonton school board President Joseph Giralo said his district will have work done on the middle school’s HVAC system, including air conditioning. The district will get almost $2 million in state funds toward the $3.5 million project.

“We are using surplus we set aside for the project,” he said. “There will be no tax impact on local taxpayers.”

Wildwood school Business Administrator Martha Jamison said her district will do a five-year lease-purchase on its share of the almost $1.3 million it will cost to replace the roof on the high school and middle school. The state will contribute $508,000.

“The old roof has been patched but still leaks,” she said. “But there will be no bond. They never get approved here. The grant is our only opportunity to get this done.”

While the funds are considered grants, the SDA in 2011 began requiring school districts to pay 15 percent of the interest payment on the bonds taken out by the state to fund the grants. That makes some district officials a bit nervous, since they don’t know how much that could be down the road.

State Department of Education spokesman Mike Yaple said no decision has been made on requiring districts to pay back part of the grants next year, but school officials said they will have to plan for it in their budgets anyway.

“The state hasn’t said anything yet about a payback, but we do expect to have to pay a share,” Egg Harbor City Business Administrator Joseph Smurlo said.

Several local districts, including Egg Harbor Township and Egg Harbor City discovered this year that the SDA debt payment negated the extra state aid they received.

“There was nothing in the old contracts about that payment, so we’ll have to wait and see what is in the new contracts,” Smurlo said.

Egg Harbor City is getting $813,000 of an almost $1.2 million project to replace the roof and upgrade the HVAC at the Spragg School. Smurlo said the district has saved about $239,000 of its share, and he hopes to save the rest this year so the project can be done over the summer.

Other local work includes a $24 million project to replace windows and doors and upgrade the fire alarm and HVAC systems at Cape May Technical High School.

“We’ve had this in the plans for years,” Superintendent Nancy Hudanich said.

Middle Township will spend $1 million to finish a roof project at the middle school and replace the HVAC system. Business Administrator Diane Fox said the school board had not yet decided how it will fund the district’s share of about $600,000.

Districts have 18 months to either bond or raise their share of the funds.

Little Egg Harbor Township got $500,000 toward a $1.25 million project to repair the veneer on the Frog Pond School and add new security cameras. Superintendent Frank Kasyan said the district will either do a lease-purchase or try to use surplus, but it will not bond.

Buena Regional was approved for $4.3 million in state funds toward almost $7 million in projects, including new HVAC at the Milanesi and Colllings Lakes schools and security at the middle school.

Buena Regional Superintendent Walter Whitaker said the school board would discuss which projects the district can do with its surplus and capital reserve funds, and what might require a bond referendum.

Several district officials said they were not approved for all requested projects, and they had not been notified by the state how the funds were allocated. Many districts did not get all of their projects approved but can resubmit them for state debt service aid.

Northfield submitted several applications but was approved for just two, a new HVAC system and new exterior doors with a keyless entry system, totaling $4.1 million. Those not approved include new roofing, interior doors and additional security and outdoor lighting, Business Administrator Linda Albright said.

Northfield Superintendent Janice Fipp said district officials are happy with the $1.7 million they will receive from the state.

While all were grateful for the funds, there was some speculation on the impact of announcing funds for so many similar projects at once, especially since many districts will try to get the work done over the summer.

“It is a shame it all comes at once, because it’s likely to drive up the prices when we all go out for bid,” Smurlo said. “But the roof is a high priority for us.”

Source: PressofAtlanticCity.com