Atiyeh Makes Case For Luxury Apartments in Bethlehem

"I'm extremely embarrassed that this is a failed project. But I have to look beyond that and look at what is the next best use for that site without having 300 neighbors here."

That's what developer Abraham Atiyeh told Bethlehem zoners during an October 13 special meeting. He's decided to scrap Bethlehem Manor Village, a proposed assisted living facility at the southeast corner of Center and Dewberry, in favor of of four three-story apartment buildings, totaling 102 one- and two-bedroom luxury apartments with a monthly rental of up to $1,295. Because the area is zoned only for institutions like schools or hospitals, he needs a use variance. Although there was no crowd of 300 neighbors, Town Hall was still packed with around 25 people who either oppose or are concerned about this project. Senior Judge William Moran and Councilman J. William Reynolds sat quietly, while former Northampton County Councilman Greg Zebrowski was one of several who spoke forcefully against the project.

Atiyeh had his own private army of supporters, too. They included the zoning board's own Solicitor, Mickey Thompson. Although he did recuse himself from the matter, Thompson still sat in town hall with another Atiyeh employee, watching the action. Atiyeh was represented by Allentown Attorney Bill Malkames, who spent most of the evening either objecting to neighbors' questions or answering them himself. In addition to Atiyeh, Malkames called an architect and real estate appraiser to testify during what turned out to be a four-hour hearing.

Architect Eugene Berg, Atiyeh's lead-off hitter, testified that because the market for assisted living facilities is "saturated," he fired off letters to hospitals and schools on September 13 to determine if there was any interest in any other kind of institutional use of this five-acre tract. But eight Bethlehem neighbors were skeptical. The Carver House's Terry Beidelman, amidst constant objections, wanted to know why the property was never listed with a realtor. And in response to questions from Al Bernotas, Berg conceded that the September 13 letter was sent, at Malkames' direction, in order to "build a case."

Commercial real estate appraiser Joseph Genay, who has conducted 130 appraisals of assisted living living facilities during A 35-year career, told zoners that the real estate prices have declined between 40 and 50% since 200, and commercial real estate is down 50%. He stated there is a "major structural shift" in the way people view assisted living, and the current trend is for people to "stay in place." He indicated that, to be viable, assisted living facilities need an 85% occupancy rate, but the total occupancy rate in Northampton County is only 62.7%. One market that is doing well right now is "multi-housing," where vacancy rates are only between 5 and 7%.

Greg Zebrowski questioned Genay's claim that real estate vales have dropped between 40 and 50% in the Lehigh Valley. "If that's the case, I think we all should sell and head on to the hills." Genay clarified, "I did not say there is a 40% decline in the Lehigh Valley. No one has a definitive study of this particular marketplace." He indicated his conclusion was based on a study of 20 other housing markets throughout the country.

Atiyeh stated that, in addition to spending $1.4 million to buy this five-acre tract, he spent another $600 thousand in soft costs for engineering and marketing. He's only been able to get three reservations for his assisted living project, but needed twenty to to secure financing. Part of his problem is that, as soon as he started his project, five new assisted living facilities opened.

Unable to do anything with it, Atiyeh said he'd be willing to sell, if only he could find a buyer.

"This is the best site in the City for a luxury apartment community because of churches around the street, Beca High School. It's a good place for 102 luxury apartments. The infrastructure is perfect."

He also claimed that home values in the surrounding community would actually increase. "The value of your house is going to increase. 'Wow! There's a $12 million complex across the street with good working-class people in the City of Bethlehem.'"

Ron Simoncini, a consultant for Northfield Apartments, asked Atiyeh to "explain for us how your appearance here is in the interest of the town rather than in the interest of helping you succeed with your investment." After multiple objections, Atiyeh insisted on answering and said that "this use is the only valid use on this site. We have a hardship here."

Mike Polay reminded Atiyeh of the proposed apartment complex at Martin Tower and asked, "Are we going to have white elephants all over town?"

Zoning Chair Gus Loupos called it a night at 11 PM, stating testimony will resume on October 20 at 7 PM.