Allentown's Development Problem

Governor Josh Shapiro recently took aim at the Commonwealth’s licensing, permitting, and certification processes. He's ordered a comprehensive review of how long it takes agencies to process different applications.

“State government’s top priority should be serving the people of our Commonwealth, but for far too long, Pennsylvanians have had to endure long wait times, outdated systems, and bureaucratic delays. They deserve a government that works efficiently and effectively to get them answers,” said Governor Josh Shapiro. “Under my Administration, Pennsylvanians will have certainty – they will know how long it will take for agencies to respond, and if an agency doesn’t live up to that promise, they deserve their money back. Pennsylvanians work hard to keep our economy moving, and the Commonwealth should work just as hard to process their applications.”

This might be needed even more on a local level, especially in Allentown. 

According to the Lehigh Valley Planning Commission, nearly 6 million square feet of non-residential development was approved in 2021. It's a booming market. Except for one place. Allentown. 

Allentown has three problems. The first and biggest is a failing school system. You can blame whomever you want, but any school district that goes through six superintendents in 20 years has a problem, I've long maintained it should be divided up among adjoining school districts. 

Its second problem is high crime. This is not just violent crime, but minor crimes like littering, loud music, and illegal race dirt bikes, These petty crimes demonstrate a general disregard for others. others. 

Its third major problem is a city bureaucracy that is intent on stifling, rather than encouraging, development. 

As a result, Allentown really only has two developers - J.B. Reilly and Nat Hyman. The former is relying on a public subsidy. The latter is beginning to invest his money elsewhere. 

Here's the problem. Most municipalities have third-party reviews of development projects. BASE Engineering, Barry Isett or any of a host of other firms can review development plans more quickly and more correctly than a municipality. This means less work for the government and less liability, too. If something goes wrong, it's on the developer and third party review firm. 

Allentown is different. Like most municipalities, it requires third-party review. But in addition, it then conducts its own in-house review as well. It's short-staffed, so the review takes forever. This delay occurs before actual submission of a plan, so timelines are irrelevant. It's like setting a bonfire to a developer's money. If he has a $7 million loan, he's spending $560,000 a year while city officials think about hiring one or two of the 28 bureaucrats they claim they are short. 

As a result, developers stay away. So do architects and engineers.  

Hyman gave me some examples. One of them, believe it or not, was a lengthy delay in his own donation of a subpolice station to Allentown.  

Here's another. 

He's proposed a Nathan's hot dog franchise at 328 W Linden. His plan was submitted 9 months ago for a grand total of 1,300 sq ft. It went through third-party review. Now city planners have come back with 61 comments. What's more, they reserve the right to add even more once plans are re-submitted. 

This absurdity has prompted two City Council members to consider a resolution putting a time limit on internal plan reviews. 

I suspect it will be delayed.

In the meantime, blogger Michael Molovinsky has recommended that Hyman change his last name to Reilly.