NIZ Board Considers, But Does Not Adopt, Anti-Poaching Measures

Sy Traub

During a brief meeting yesterday afternoon, Allentown's newly formed Neighborhood Improvement Zone Development Authority (ANIZDA) unanimously adopted development financing guidelines for projects within the 130-acre zone.

They're basically identical to procedures previously approved.

NIZ Development Guidelines Discussed

Before its unanimous vote on NIZ development guidelines, Chairman Sy Traub acknowledged the concerns of many municipalities and LV developers about poaching. "We have heard the concerns about other businesses moving into the NIZ."  He acknowledged the disquiet over the possibility that the Neighborhood Improvement Zone (NIZ) creates an uneven playing field in which tenants from other parts of the Lehigh Valley can be lured in by cheaper rents.

Traub insisted that the purpose of the NIZ is "to redevelop Allentown, not to hurt others." He suggested development guidelines should be "altered somewhat" by reducing the tax concessions available to a Lehigh Valley-based business that moves into the NIZ.  He expressed a desire to "minimize any harm for others in the Lehigh Valley."

But are Traub's concerns shared by other members of the Board?

Alan Jennings, the only other Board member who really did any speaking at all during yesterday's meeting, seemed to question Traub's proposal. "Should we use our authority to level the playing field for poaching from South Whitehall Township, but not New Jersey?" Jennings asked.

Neither Traub nor any other ANIZDA Board member offered any amendments to the NIZ guidelines tat actually addressed his concerns. Whether he intends to do so is unclear.

Riverfront Redevelopment a Long Way Off

In addition to approving NIZ guidelines, interim Executive Director Sara Hailstone provided a very brief overview of the riverfront, where 90 acres of the 130-acre NIZ is located. She told board members that the City intends to "open up the riverfront for use by the public." But whatever happens, it won't be soon.

Hailstone and Sy Traub both stressed that very little - around 27 acres - of the riverfront is actually developable.

A PPL power station at the riverfront, located next to Bucky Boyle Park, would cost at least $40 million to move. The America on Wheels Museum and Bucky Boyle Park would also remain untouched by developers.

"We have no intention of taking that park away," stated Hailstone. "We will actually add to it."

Hailstone and Traub both pointed out that the Iron Mountain data storage facility, also located along the riverfront, is under a long-term lease making development impossible.

That leaves the 27-acre Lehigh Structural Steel area. But even that is "years away from development," according to Hailstone. She noted that there are several leases, ranging from 3 to 10 years, at that site.

Alan Jennings

Township Litigation

Before adjourning into a closed-door meeting to discuss a NIZ challenge being spearheaded by Hanover and Bethlehem Townships, Traub outlined a settlement offer made by Allentown, which involves a return of current EIT and a revenue sharing plan for development outside of the immediate arena area.

"That is what's on the table," Traub announced. It should address a substantial amount of the concerns, if not all the concerns, that the municipalities have." Traub added this offer is available to all municipalities, regardless whether they are part of the NIZ litigation.

Although Traub attempted to be conciliatory, Alan Jennings was more strident. "Can we deduct the damages caused by those municipalities which have sued us?" he asked.

Housekeeping

The ANIZDA also took care of some housekeeping matters. It approved a $1 million liability insurance policy for an annual premium of $2,200, which will be fronted by the City. It will start selecting its own Solicitor, distributing requests for proposals (RFPs) to what Traub called "worthy law firms." Finally, at the insistence of Alan Jennings, Allentown Assistant Solicitor Frances Fruhwirth was identified as its Right-to-Know officer.

It's an 8-member board, thanks to the recent resignation of Lehigh Carbon Community College's Don Snyder. In fact, most of the meeting was dominated by discussion about how he'll be replaced.

ANIZDA's next scheduled meeting is on June 3, 5 PM, at City Council chambers.