Hanover Township ("Township") has and continues to support the Arena Project and the revitalization of the City of Allentown. The following sets forth the position of the Township with respect to the current status of any negotiations to settle the NIZ Litigation as well as the future position of the Township with respect to the NIZ Litigation and any attempts at a future settlement.
Hanover Township will only continue to negotiate with parties to the NIZ Litigation filed on March 29, 2012.
The correspondence forwarded to the Township thus far does not contain any settlement offer that could be acted upon by the Township, and in addition, such settlement proposals would be an attempt to circumvent existing legislation by agreement or otherwise, and therefore, would be void as contrary to public policy, and in addition, such settlement agreement may preclude the Township from later challenging the constitutionality of that legislation.
The Township does not have the authority to bind other political subdivisions that have intervened in the NIZ litigation, and the Township would not agree to any settlement until all parties to the NIZ Litigation were in agreement; i.e. universal settlement.
The Township believes that any settlement that does not include the amending of the current legislation to make it constitutional would leave such legislation, which is unconstitutional, in place, and could later be used to rescind any settlement agreements.
The Township is supportive of the Arena Project and the revitalization of the City of Allentown, it is not supportive of the Township's Earned Income Tax ("EIT") revenue being used for public and/or private initiatives in the City of Allentown.
Any settlement of the NIZ Litigation can only occur if the existing legislation is amended to:
(A) Make it constitutional; and
(B) Remove all references to EIT contained therein and ensure that it is not replaced with other sources of revenue generated by or from political subdivision sources outside the City of Allentown; and
(C) Reduce the size of the NIZ so that it does not unfairly compete with non-NIZ venues.