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
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