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Wednesday, September 26, 2012

Hanover Township Returns $30,000 in NIZ Suit Money

Manager Jay Finnigan
It was a showdown between Allentown and many of its surrounding municipalities. In an effort to revitalize the Queen City with a hockey arena, office buildings and a luxury hotel, a special tax district was created. In a 130-acre Neighborhood Improvement Zone (NIZ), developers could pay for these projects, in part, by diverting the local taxes of out-of towners who worked there. This would deplete municipal coffers.

What's good for Allentown is good for the Lehigh Valley, argued Allentown Mayor Ed Pawlowski, calling the NIZ a "rising tide" that would lift all boats. A host of townships and boroughs responded with lawsuits.

At the spearhead of this litigation were two Northampton County municipalities, Hanover and Bethlehem Townships, represented by the Bethlehem law firm of Broughal and DeVito. Eventually, eight other municipalities joined this suit and contributed to the legal expenses. Nine other municipalities paid their own way or filed separate suits.

In the end, City and state officials blinked. The NIZ law was amended on June 30 to prevent any diversion of local taxes.

How much money was collected from these townships for the litigation? How much was actually spent? Those questions were answered by Hanover Township Manager Jay Finnigan at the conclusion of a Supervisors' meeting on September 25.

Hanover Township collected $70,000 from intervening municipalities. Hanover, Bethlehem, Lower Saucon and Lehigh Townships each kicked in $10,000, as did the Whitehall Coplay School District. Plainfield Township, Hellertown and Bangor ponied up with $5,000 each. There were also $2,500 contributions from East Allen Township and Walnutport.

Between April and September, the Broughal law firm was paid $39,806.58. The remaining money, a little over $30,000 has been returned in proportion to the contributions made.

Hanover, Bethlehem, Lower Saucon and Lehigh Townships, as well as Whitehall Coplay School District, have each received checks for $4,313.35. Plainfield Township, Hellertown and Bangor have been paid $2,156.67. East Allen Township and Walnutport have received #1,078.34.

It is unclear how much Allentown, the NIZ Authority and state officials spent in this legal dispute.

17 comments:

Anonymous said...

$39,0000 to fight the NIZ? Something seems strange there. Hardly a lot of legal money. I remember there was a lawsuit filed, wranglings with city lawyers and all kinds of claims that the townships would make that lawyer rich. That number seems way too low. Almost charity work. Is anyone looking into what the City paid their lawyers?

Anonymous said...

Mr. O'Hare, prehaps an open records request to the City of Allentown and the Allentown Neghborhood Improvement Zone Authority is in order.

zoid said...

Kudos to Hanover and Bethlehem Townships for leading the way and doing the responsible thing for the taxpayers!!

Anonymous said...

Yes has allentown gave all allocated monies back to the surrounding towns and boroughs? With the sale/lease imminently being rubber stamped thursday at city counsil the shell game with the money is about to go on!!!

Carol said...

Bernie, sidebar for Bangor, when you get a chance, take a ride to the Slate Belt and view the mural that Jim Gloria painted on the wall of the Trust Building, it depicts Bangor's downtown from years ago. It is outstanding. Carol

Anonymous said...

The lawyers and engineering firms are bankrupting local governments!

Anonymous said...

Anon 741am is right - the water/sewer deal is yet another kick in the shorts for the suburbs.

Anonymous said...

I want free hockey tickets.

LOYAL ALLENTOWN DEMOCRAT

Anonymous said...

@ 10:13 AM:

Run for office and get elected, all the freebies you will ever need...

Bernie O'Hare said...

Carol, I'll get a pic this weekend.

Bernie O'Hare said...

I will be filing a RTK request. Need to hone down exactly where it should go.

Anonymous said...

Allentowns king will get the suburbs to finacialy buy into his failling city one way or another?

Anonymous said...

Bangor's mural is indeed beautiful. Bangor's morals, not so much.

the truth be told said...

j never passed a mirrow he did't like. the pic didn't need to be him. it is however because he is one of bo's man crushes. angle and soffa r jealous

Anonymous said...

The taxpayers that got screwed are the municipalities that didn't join Hanover and Bethlehem Townships and paid their own solicitor.

Anonymous said...

Thanks for pissing away our taxes, Bethlehem Township. A bumbling mess of a Township I live in. You can't even bring a dog to the park. What a joke.

Anonymous said...

Kudos to Hanover and Bethlehem Townships for leading the way and doing the responsible thing for the taxpayers!!


What's that? Giving taxes to a law firm to fight something good for the valley? Brilliant.