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Friday, February 12, 2016

Can Bethlehem Lure FedEx?

Deed restrictions prohibiting commercial or industrial use have stymied FedEx's efforts to build a $335 million megahub for its delivery service in Allen Township for the past two years. This legal monkey wrench also delayed Lehigh-Northampton Airport Authority from making its final, $7.1 million payment, on a $26 million award entered against the Authority when it condemned the land in the '90s. But instead of walking away from the Lehigh Valley, Fed Ex is being lured by come hither looks being cast in its direction by Bethlehem.

On February 11, Bethlehem's Planning Commission voted 4-0 to approve plans for a distribution center in Bethlehem, along 131 acres at 3633 Commerce Center Boulevard, next to centers already owned and operated by Walmart and Crayola.

The project was endorsed by the City's Planning Department.  

Eric Scheler, Majestic Realty's District manager, outlined plans for a 981,321 sq ft warehouse distribution center, exactly 1.3 miles along Route 412 from Interstate Route 78. Over 400 trucks a day would flow into the facility as 2,500 employees working three shifts would sort and load packages. Most of that truck traffic would then return to Route 78, although a smaller number of local delivery vans would leave the facility for local deliveries in the Bethlehem area.

"The City is open for business," said Sheller, adding that his company "has the horsepower to attract these kinds of tenants."

The only concern, raised by Matt Malozi, was whether delivery trucks would stack at other locations. Scheler stated that the four-lane approach to the facility would allow trucks to stack there.

"I don't think you could find a better spot," exclaimed Planning Chairman Rob Melosky, who called the project a "slam dunk."

Melosky pressed Sheler for a time line. "We're ready to pour concrete in May," Scheler answered.

FedEx representatives were absent from the meeting.

No members of the public opposed or supported the project.

Voting to approve the plans were Chair Rob Melosky, Matt Malozi, Tom Barker and Lou Stellato. Jim Fiorentino was absent.

18 comments:

Dean Browning said...

Bernie:

A correction to your article - the Airport Authority has made the final payment so that is settled.

Dean

Anonymous said...

This is the site FED EX should have come to in the first place.

Anonymous said...

was it neither opposed or promoted by citizens because of a lack of or short notice of the agenda? This seems to be this admins MO.

Anonymous said...

Karner'so Feb 12 memo to council asking them to expedite a resolution supporting the submission of an RACP application for a project includes construction of common roadway and related backbone infrastructure at the Majestic Bethlehem Center industrial park, which may include: (i) construction of Commerce Center Boulevard North and related connector roadways, (ii) construction of utility and other infrastructure, mainly in, around and/or related to roadway improvements, including (a) water, electric, communication and natural gas infrastructure, (b) storm water infrastructure including lines, outfalls, basins and improvements to address new flow such as stream erosion mitigation, and (c) sewer infrastructure including lines and a new sanitary sewage lift system or improvements/expansion to the existing, (iii) earthwork and mass grading to facilitate roadway and infrastructure construction, and removal of rock and legacy foundations remaining from the prior Bethlehem Steel buildings, (iv) extension of rail infrastructure along Commerce Center Boulevard, and (v) street lighting, landscaping and directional signage. The project budget is $38,750,000, which includes $19,250,000 of RACP funds.


.....can anyone provided details on this? Is this Bethlehem's way of luring on project away using tax dollars?

Anonymous said...

If an airport nearby is not necessary, this sounds like a no brainer. 22 isn't suitable for the additional truck traffic.

The Airport Authority should have settled that case 20 years ago, but someone was profiting from the lengthy litigation and had an incentive to drag out the appeals process.

Ray Nemeth Sr said...

Fed-ex should change their strategy, get out of that congested area, put out a notice asking who would like a fed-ex in their township, I bet they would get calls form lots of places who would like to have the revenue, why fight with these people when there are lots of localities who would be glad to have them.


Anonymous said...

Hey...look famailiar? June 12 2014
The project includes construction of common roadway and related backbone infrastructure at
the Majestic Bethlehem Center industrial park, which may include: (i) construction of
Commerce Center Boulevard North and related connector roadways, (ii) construction of utility
and other infrastructure, mainly in, around and/or related to roadway improvements, including
(a) water, electric, communication and natural gas infrastructure, (b) storm water infrastructure
including lines, outfalls, basins and improvements to address new flow such as stream erosion
mitigation, and (c) sewer infrastructure including lines and a new sanitary sewage lift system
or improvements/expansion to the existing, (iii) earthwork and mass grading to facilitate
roadway and infrastructure construction, and removal of rock and legacy foundations
remaining from the prior Bethlehem Steel buildings, (iv) extension of rail infrastructure along
Commerce Center Boulevard, and (v) street lighting, landscaping and directional signage.
The project budget is $10,000,000 of real estate match and $10,000,000 of construction cost.

Anonymous said...

Let them build in Bethlehem. It's the ideal site. Close to the interstate, intermodel and a great newly reconstructed road system that feeds to 78. This is a no brainer.

Anonymous said...

I am all for The Majestic Dev I think it is great for the region and the city. I also think the fed ex plan is perfect for this site. I do have an issue with $19,000,000 going to A Billionaire to make it happen. Money from Harrisburg is hard to come by and there are more worthy projects in the city than this one. If it happens great, but not at the sacrifice of every other thing going on in the city. If Bethlehem got $19M for this there would be no other money for anything else.

Ron Beitler said...

This location makes a lot more sense.

Anonymous said...

Now, if we could just convince FedEx to take over tracking of VISA overstays .....

Ray Nemeth Sr said...

That's easy just put a barcode on the visitors ass or somewhere.

Bernie O'Hare said...

Corrected, Dean. Thanks.

Anonymous said...

I think this comes down to the relationship between FedEx and Rockefeller.

Rockefeller has the airport property to build something on regardless if FedEx mails itself to Bethlehem. Simply depends on what the client wants to do now that it's got two offers.

Make no mistake, all the local screws will be tightened as much as possible to make the airport land the winner. There has been a lot of political and real capital vested into it.

In my opinion I'd rather see Majestic get it. Better location locally and Majestic is American owned. Rockefeller is not.

Anonymous said...

Too congested. Should build up route 33 around Belfast. Lots of land and easy access to 33 then 78. Less time for multiple trucks on local roads. 412 is already a nightmare and even with the expansion going towards Hellertown is a nightmare.

Not good, no logic.

Anonymous said...

I say let Bethlehem win, ONE GREEDY Family is all that stands between a great project for the area or nothing in that area for many many many years to come. Let them choke on their horse rentals and higher tax base because they drove the only new tax paying investment in that part of the township in years and years

Anonymous said...

Much better site. Rail lines already exist at this location (along with an intermodal facility). FedEx Ground moves a lot of trailers over rail. I support FedEx at either location, but would rather see it here.

Hank_Hill

Anonymous said...

the fact that FedEx wasnt there speaks volumes

-coward