About Me

My photo
Nazareth, Pa., United States

Tuesday, March 20, 2012

Bethlehem Township To Join Legal Challenge to Allentown's EIT Tax Grab

Solicitor Jim Broughal is a Vietnam War vet
Two municipalities, both from Northampton County, have now decided to sue over the diversion of their local taxes to pay for the construction of a 8500-seat hockey arena and other improvements in Allentown's 130-acre Neighborhood Improvement Zone (NIZ). On March 13, Hanover Township Supervisors voted unanimously to fight the "misappropriation of Hanover Township’s EIT by the City of Allentown." Bethlehem Township, Hanover's next door neighbor, has decided to join the lawsuit.

Bethlehem Township's unanimous decision, reached during their March 19 meeting, comes on the heels of a thirty-minute executive session requested by President Paul Weiss. It authorizes Solicitor Jim Broughal to join in Hanover Township's "potential litigation involving the appropriation of Township earned income tax to support the City of Allentown NIZ."

There was no public discussion prior to or following the vote, with President Paul Weiss directing all inquiries to Jim Broughal.

Lehigh Township is considering joining this potential litigation as well, according to Supervisor Cindy Miller. "We were blindsided," she has complained. Their next meeting is scheduled for March 27.

In Lehigh County, East Penn School District adopted a resolution on March 12, condemning the NIZ legislation, but stopped short of authorizing litigation. Salisbury Township has voted against litigation, while Upper Macungie Township has authorized the pursuit of "additional remedies."

39 comments:

Anonymous said...

One of the municipalities that joined the fitness club business is now upset. Government is great.

Anonymous said...

Is there any cap on legal expenses that I as a Twp taxpayer will pay?

What are the estimated cost's associated with this lawsuit?

Same lawyer as Hanover Twp so cost should be shared?

Bernie O'Hare said...

I do not know the details but believe there will be cost sharing by all the municipalities involved.

Anonymous said...

Forget it. The only winner in any of this are the lawyers.

Anonymous said...

What does "potential" litigation mean?

Same solicitor?

30 minute executive session (closed meeting"? This should not have been in executive session.

Just as secretive as the EIT numbers.

zoid said...

executive session was to discuss"potential" litigation and thereby allowed. From what I read the vote to authorize this was done at the public meeting.

Anonymous said...

The state is allowing the city to STEAL tax money from the burbs. Its illegal and not constitutional. Does anyone in the burbs have a say as to how the city will use that money? No. This is typical redistribution of the wealth as promoted by LIBERALS!! Don't tread on me comes to mind. Its good that these townships are putting up a fight. This is what happens when liberals like Browne, Rendell, Boscola get together. This needs to stop. Let the City pay for its own arena.

Anonymous said...

Where were these ass clowns when two fitness gyms in Bethlehem Twp. went tits up because of competition from the township's taxpayer-funded fitness center in the palatial municipal building? The NIZ is bad. Government's going into private enterprises with tax money is worse.

Anonymous said...

Wealth redistribution will not correct the ills of slums.

Anonymous said...

Allentown took down one block now and should continue all the way down to Route 22. Now that is progress!

Anonymous said...

Pawlowski knows he needs to clean the minorities out of Allentown before whites and their money come back. He's working a very logical plan.

Anonymous said...

The test case is important.

Should the townships win, no legislator dares replicate it elsewhere.

Should the City prevail, watch the NIZ of various shapes and sizes bloom all over the state and other states.

While NJ and NY keep EIT, 511 prohibits PA municipalities from doing the same thing within the state.

Anonymous said...

I live in Lower Saucon where the voters approved an increase in the EIT rate to fund open space. How can Allentown or Browne think they can legally take that money? I hope Lower Saucon fights as well. If they do they should not go with Broughal as this would be too complicated for him to handle. He's alright with the day to day stuff of little municipalities and authorities but that's about it.

Anonymous said...

The bitterness over this stupid Palace of Sport WILL last a long, long time.

People don't like having crap like Obamacare or Palaces of Sport shoved down their throat.

People don't like having their money stolen.

People are really starting to not like Big Government and the arrogant Bureaucrats.

Once those on Government Assistance figure out that Government Assistance does not mean FREE TICKETS, the Palace of Sport will be even less popular than it already is.

What did PPL PARK do for Chester, Pennsylvania?

DAN KEHL has a report, "A NEW SOCCER FAN? PHILLY HOME OPENER"

http://noisenation.wordpress.com

zoid said...

to 9:41

I too hope Lower Saucon jumps into the mix and I do not agree with you about Broughal. He and his group are as good a bunch of attorney's as anyone out there.

Bernie O'Hare said...

I'll agree. I've seen Broughal. He is perhaps the best municipal attorney in the Lehigh Valley. He does not, however, litigate. There are other members of his firm who do that. From what I can gather based on what I saw in Hanover, I think Att'y Jim Preston (from Broughal's firm) will handle this matter. He is tough, smart and does not like to lose.

Having said all this, Lower Saucon certainly is free to do what it wants or use its own attorney.

Bernie O'Hare said...

"One of the municipalities that joined the fitness club business is now upset."

These community provide a service to the community. You may not consider it an essential service, but it extends way beyond fitness center. I frankly like the idea of a community center to provide a place for youth activities like basketball.

Under your reasoning, townships would have to close their pools bc someone from the private sector might want to compete.

zoid said...

Bernie, you are correct, Jim Preston will be handling this from what I heard. He is a tough customer.

FutureDowntownArenaAttendee said...

ah this is starting to unfold as the Broughal & Devito lawsuit. Interesting that the firm represents both Hanover and Bethlehem Townships... Talk about a law firm trying to milk some money.

zoid said...

FDAA you are so full of shit. There are actually attorneys who have a concience like these guys unlike all of the lawyers, Sen Browne, the mayor et al involved with the EIT grab

FutureDowntownArenaAttendee said...

James Broughal is the solicitor for both Hanover and Bethlehem Townships. That is a fact!

The fact is that the only townships that have authorized a lawsuit have the same solicitor. That is more than a coincidence.

Bernie O'Hare said...

Broughal & DeVito is the Solicitor to both townships. Both townships will now pay half what they would pay if just one of them were suing. That firm does practice municipal law and represents several local municipalities, so this is no surprise to me. In the final analysis, it is the merits of the litigation that matters.

Anonymous said...

Anyone see the final results from the MCALL last Friday. 97% agreed with the municipalities fighting the NIZ. The Mayor, Senator and JB should see the MOmentum turning!

Anonymous said...

Ok now there are two municipalities joining together. Every one else can stand on the sidelines and get any good news and take no risk???

These legal fights are based on the lawyers getting the benefits first.


No real facts as yet???

TJD said...

I am a resident of Hanover Township and agree with the principle of fighting the NIZ legislation. I do have two concerns, one of which has already been well documented by several people (including comments on this blog):

1. It is unclear to everyone (including those who drafted this legislation) exactly what the economic impact will be on each municipality. Without that information, it is hard to make an informed decision as to whether the cost of litigation will outweigh the benefit of keeping the EIT money.

2. If the lawsuit by Hanover and Bethlehem Townships is won and the legislation is found to be illegal or unconstitutional, wouldn't all of the municipalities that would have been affected by the NIZ benefit from the efforts of Hanover and Bethlehem Townships? (ie they wouldn't lose their EIT money thanks to those that are willing to fight the NIZ). I would hope in the end that any money invested by the municipalities fighting this would be reimbursed should they win the lawsuit. And in that case, the entity doing the reimbursing would be the state...reimbursing us with our own money!

Anonymous said...

2:50 PM

You have the sense of what is in process. First there is no info on the EIT loss or deferal by municipality. Second there has been no info as to the impact of the litigation. Lot's of litigation doen't result in reimbursement of costs.Maybe maybe not.

Anonymous said...

Bernie,if Whitehalls earned income tax rateis 1.5 and the Whitehall resident Works in the NI.Z.,is the 1.5 with heldfor the arena or Allentowns tax rate of 1.

Anonymous said...

The fight is worth it to protect against what's coming. Panto is coming for a similar payday for crazy schemes in clean and safe Easton (another daytime West Ward shooting today). Dopey mayors of screwed up cities stay awake at night scheming for more money to spend on nonsense. Allentown is an important battle to win in cutting these thieves off.

Bernie O'Hare said...

5:54, The Whitehall rate can be used.

Bernie O'Hare said...

"t is unclear to everyone (including those who drafted this legislation) exactly what the economic impact will be on each municipality. Without that information, it is hard to make an informed decision as to whether the cost of litigation will outweigh the benefit of keeping the EIT money."

True, but it is clear that Allentown has no intention of releasing that information until it has floated bonds, by which time it will be too late to complain. So I believe it is prudent to object now.

"wouldn't all of the municipalities that would have been affected by the NIZ benefit from the efforts of Hanover and Bethlehem Townships?"

Yes.

Anonymous said...

This is not about the cost of solicitors , but fighting an ill ADVISED political robbery heisted by a senator who took an oath of office to uphold the law as well as a mayor. It never said you can make your own laws.

Anonymous said...

Could you imagine if five, ten or fifteen other municipalities join BT and HT and join in the fight. The cost to each municipality would be minimal and the impact would carry so much more weight. Is this a political issue be challenged or a legal issue. Think about it and now you are the judge making the decision. Let me think, fifteen municipalityies up in arms because of Allentown shannanagans. Not a tough decision.

Anonymous said...

Let me get this right, the NIZ area was created with-in the City of Allentown.
With-in the NIZ area, a new stadium will be constructed as the CENTER PIECE.
The EIT taxes on JOBS created in this NEW AREA will remain in Allentown. If it wasn't for this area, there wouldn't be a renaissance! WHAT'S the PROBLEM!!

Anonymous said...

What a joke.

Yo Bethlehem Township, just fix the damned potholes. You need to get into the pissing contest too? You have MORE than enough money.

Anonymous said...

People don't like having crap like Obamacare or Palaces of Sport shoved down their throat.

Oh please. Put on your tri-corner hat and welcome to 2010. Your tea party nonsense is tired and over.

Anonymous said...

10:49 - The problem is that the people who live in the suburbs have a problem with an undefined amount of money (a minimal amount in the grand scheme) going to help a city ridden with crime and minorities. It's the same old tea party narrative - no government intervention unless it benefits me directly. Fortunately, like the tea party, this is a fringe element objecting to this arena. Most everyday people just want something to do and look forward to other options.

Anonymous said...

Oh 12:07am..

You have not yet realized that the small amount of people here and on molovinsky's page are far right tea bagers?

The far rural idiots(bernie doesnt pay taxes), Molovinsky(does not live in Allentown) throw stones from miles away.

Is it not ironic that Bernie who does not own a home complains about taxes, when he doesnt pay them himself. Then we can look upon Molovinsky who doesnt live in Allentown, complains about how OUR park system operates. Two non Allentowians. Throwing stones on issues that they have no financial interest in. Neither of these two men pay taxes in Allentown nor live here, but they toss garbage.

FutureDowntownArenaAttendee said...

Oh 12:07am..

You have not yet realized that the small amount of people here and on molovinsky's page are far right tea bagers?

The far rural idiots(bernie doesnt pay taxes), Molovinsky(does not live in Allentown) throw stones from miles away.

Is it not ironic that Bernie who does not own a home complains about taxes, when he doesnt pay them himself. Then we can look upon Molovinsky who doesnt live in Allentown, complains about how OUR park system operates. Two non Allentowians. Throwing stones on issues that they have no financial interest in. Neither of these two men pay taxes in Allentown nor live here, but they toss garbage.

Anonymous said...

10:13

Adding more muncipalities to a suit doesn't always spread the cost very far. Too many involved adds to legal costs. This is a solicitor gold mine.