This lawsuit, filed March 29, effectively prevented Allentown from floating a $220 million bond for a hockey arena and other improvements inside the NIZ. State legislators finally addressed these concerns on June 30, when they adopted a budget. In addition to removing language that allowed for what was in effect a tax grab of local EIT, state lawmakers expanded the definition of a Neighborhood Improvement Zone so that it could conceivably apply to other municipalities.
These legislative change have made the municipal challenge moot, according to Attorney Gary Asteak, who represents several of the governing bodies who joined the litigation.
At their July 16 meeting, Bethlehem Township Commissioners unanimously authorized their Solicitor, Bethlehem Attorney Jim Broughal, to withdraw their challenge at his own discretion.
Broughal's law firm, Broughal and DeVito, also represents Hanover Township. Their Supervisors will next meet on July 24, and are expected to give him similar instructions.
21 comments:
Did they laugh when the paid out more than $15K in tax dollars? When it comes down to it, they lost. They had an opportunity to make money on Allentown's future! Instead they laughed at it and now they will gain nothing. Oh those Tea Partiers are so dialed in to reality. It is a shame... they are the anti regionalism and only time will tell what they have lost...
Why can I say this? Because Nazareth, Bangor, Beth and Hanover, South Whitehall, Palmer, Hellertown, etc... would not exist with out ABE. That is a fact. But O'Hare likes to argue that his small place in Nazareth(which he rents and pays no taxes on) would be here if none of the cities were. What a foolish belief!
The teabaggers blew it big time on this one. They ended up spending more tax money then they saved. But then, that is teabagger math.
Anons in the 2 am hour -
Thanks you for your comments. You've made it crystal clear who the big loser is.
Yeah, after the legislature does exactly what the townships asked them to do, NIZ cheerleaders try to make it seem that the townships lost. The legal bill to BT will be less than $10k. They did not hire Dilworth like the NIZ cheerleaders.
Bill will be under 6,000. What Allentown is doing still has a bad smell to it. Who really benefits from this???? One person -----JB.
Some people just don't get it. I am a lifelong Democrat and the furthest thing from a "Tea bagger" you can find. Few of my friends and other daily contacts are "tea baggers" either. Many of us are also urban residents or at least urban oriented in our work and habits and want Allentown to succeed. Yes, a better Allentown will benefit the entire Lehigh Valley but that fact does not justify using illegal means to approach that end. The NIZ as originally constituted was so flawed that the majority of all people opposed it. It might be of surprise to some of the NIZ cheerleaders, but there still are many of us out there who want honest and competent government that understands that there are valid conditions and limits on the use of public funds. The NIZ is now better because of the legal challenges and hopefully the parties responsible for the original disaster are chastened and realize that they are being closely watched. In the end result that too contributes to making Allentown a better place. I wish Allentown well in its efforts.
Anti-regionalism? So how exactly do you define regionalism?
I would define that as a cooperative and transparent effort to plan and implement a common vision. The enabling NIZ legislation was neither cooperative nor transparent, just Browne, et al providing Allentown a way to reach into other's pockets, hopefully before they noticed. Fortunately, they felt Ed's hand trying to reach in before it was too late. In the "long run" the challengers were not the "losers".
Hopefully, I never see these people at a hockey game. What a disgrace.
Dear Anonymous 8:53
You won't have to worry about seeing me at most expensive minor league hockey rink ever in world history!
NOT A DOWNTOWN FUTURE ARENA DOOFUS
"PERMANENT DAMAGE TO PHANTOMS PRODUCT LABEL?"
Anon 2:13 - A renter pays real estate taxes just like everyone else. Typically, the RE taxes are worked into their rent and the landlord pays the tax bills. Renters have the right to send their kids to the school district, even if they own a home in another school district. As long as they rest their head in the rented space for a majority of their time, they have the same rights as everyone else.
"Bill will be under 6,000. What Allentown is doing still has a bad smell to it. Who really benefits from this???? One person -----JB."
Absolutely. I expect Alan Jennings to do everything he can to make sure that it gets spread to those who really need it. He is working on some things.
"The Government doesn't have a responsibility to provide entertainment."
"...the direct provision of entertainment is not a job of municipal Government."
JON GEETING
-------------
Sure, NOW they tell us after ramming the NIZ through!
If you read the Morning Call article the Township's spent pennies to save millions over 30 years.
Dillsworth was billing the City and their agencies $475 an hour. If you check the city's records, they spent 5 to 6 times what the NIZ litigants spent.
Perhaps the commuter tax victums should hire the NIZ people as consultants.
Allentown lost. After its retroactive arguments failed, it was forced to get the state law changed. Whatever legal fees the plaintiffs spent were well worth it considering the approporiation of suburban municipal (and school) earned income tax money was to have lasted for 30 years. And considering there's no guarantee that the project will make enough money to cover its debt (a problem common to other minor league building projects across the country), let alone repay money it "borrowed" from the suburbs. The city's roundabout offer to "share" in revenue was akin to buying into a lottery ticket pool. I'd like to see what the city and its surrogates paid to defend what ended up as an indefensible law.
The "regionalism" arguments advanced by the city are after-the-fact. Since the 1980s, the valley has been trying to get a minor league baseball team and THOSE were inclusive efforts. Ironically, one of the many failed baseball attempts was short-circuited when a past Allentown mayor went out and got a minor leage team that wasn't affiliated with Major League Baseball, setting the effort back years. If the hockey area project was truly regional, its proponents would have been drumming up support instead of scheming to conduct a late-nite raid on suburban taxes. I don't recall reading about any "regional" meetings to discuss the benefits of a hockey arena.
And let's stop with the you-owe-Allentown bit. For 36 years I watched Downtown go from a vibrant working and shopping locale to what one Hamilton Street stockbroker called his "window on the weird." If the suburbs were so dependent on the city, they would have suffered at the same time. Instead, they did OK on their own.
Next time someone has a hidden agenda, reconsider and take off the wraps and discuss it in the light of day. That's how we ended up with a MLB-affiliated baseball team.
Allentown lost, because it's still Allentown.
2:13 AM
Nazareth would not exist without ABE? It's relatively new, I'll admit, only being founded in 1740 and it's cement industry and Martin guitar would be bankrupt without ABE. Bangor has a similar story. Other than that little detail, great point!
further point on 2:13 AM
Bernie, and all other renters, pay taxes through their rent. As a former landlord that cost was certainly inlcluded in my rental fees.
@ Anonymous 2:13.... allentown's just now celebrating 250 years.... most of the Boroughs, and Townships did the 20-25 years ago... so I'm not sure what your point is. They won no doubt about it they got almost everything they were suing for, its all they wanted in the first place. They would have existed maybe not in the current form but they were here first.
south whitehall dropped the lawsuit intervention as well at their meeting July 18
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