Martin Tower Zoning Appeal Quashed

As was expected in most legal circles, Lehigh County Judge Douglas Reichley has quashed a zoning appeal of Bethlehem City Council's controversial decision late last year to rezone the 53-acre Martin Tower tract. Judge Reichley's ruling, quietly released on Friday afternoon, clears the way for a mixed use development, as well as the possible demolition of Bethlehem Steel's former headquarters.

Judge Reichley ruled that the group of residents and merchants who filed this challenge lived too far away from the proposed development and thus lacked standing. Even if they had the right to seek judicial relief, Reichley found their complaint devoid of merit.

The chief argument against the zoning change was that Planning Director Darlene Heller failed to give the Planning Commission enough time to review zoning changes. But the City countered that that Heller is also the Planning Commission Secretary, and that notice to her was timely.

Merchants and residents were represented by prominent zoning attorney Marc Kaplan. The City was represented by its Solicitor, Bill Leeson. He's one of the Lehigh Valley's best attorneys.

Lawyer Asks State to Crush CRIZ

Bethlehem's decision to rezone the 52-acre Martin Tower development has already resulted in a land use appeal. Distinguished land use and zoning attorney Marc Kaplin, who maintains a practice in Blue Bell, filed it on behalf of Hotel Bethlehem, Donegal Square, the Taylor Family Gas Station and residents Rocco and Electra D'Amato, Steven and Barbara Diamond, Clint and Sonia Walker, Deni Thurman-Eyer and Robert Romeril. But that's not all. Last week, he sent a letter to state officials, asking that the CRIZ designation for Martin Tower be withdrawn  because the City, in effect, pulled a bait and switch. It told state officials that the tower was the cornerstone of its attempt to make adapative re-use of steel buildings. But once it received the designation, it adoopted an ordinance authorizing the developer to demolish it.

Developer Lew Ronca has 52 CRIZ acres, with nothing left over to help the Boyd Theater, downtown development and even the new FED EX Ground facility.

Kaplan's letter, which is addressed to Governor Tom Wolf and other, is below.

In 2013, the Commonwealth of Pennsylvania awarded a CRIZ designation to the City of Bethlehem under the City Revitalization and Improvement Zone Act (“Act”).  The CRIZ designation allows specific properties within the City of Bethlehem (“CRIZ Properties”) to be redeveloped using state income and sales tax to fund the cost of development.  The cornerstone of the Commonwealth’s CRIZ designation for the CRIZ Properties was the preservation and adaptive re-use of the historic Martin Tower building on the 52 acre Martin Tower property.

On December 15, 2015, Bethlehem City Council adopted Bill No. 38-2015 as an Ordinance amending the Bethlehem Zoning Ordinance (“Zoning Amendment”).  The Zoning Amendment now allows for the demolition of the historic Martin Tower building. It also dramatically increased from 50,000 square feet to 380,000 square feet the amount of new retail/restaurant/entertainment square footage permitted on the property.  The Zoning Amendment effectively allows for the creation of a new destination retail “downtown” area on the outskirts of the City of Bethlehem which will detrimentally impact the continued revitalization of the existing historic Downtown area of Bethlehem (“Downtown”).

I represent some of the merchants and residents within the existing Downtown who have worked steadfastly over the past 16 years to restore and revitalize the existing Downtown.   If the Martin Towner property is permitted to be turned into a new “downtown” using taxpayer dollars, the merchants in the existing Downtown will not be able to effectively compete for retail and office tenants, and customers will be drawn out of the existing Downtown to the new “downtown”, which will lead to the blight of the existing Downtown area.  All of the significant past efforts to revitalize the existing Downtown will be for naught. 

My clients object to the use of their taxpayer dollars to subsidize the redevelopment of the Martin Tower property in a manner that does not comply with the original intent of the Commonwealth’s CRIZ award to the City of Bethlehem, nor the Act and guidelines promulgated thereunder.  The development of the Martin Tower property in the manner permitted by the new Zoning Amendment violates the CRIZ award made by the Commonwealth.  The City of Bethlehem was awarded the CRIZ based on an application (“CRIZ Application”) submitted by the Bethlehem Revitalization and Improvement Authority (“Authority”).  The CRIZ Application was based on eleven (11) specifically identified projects, including the Martin Tower property redevelopment being the feature property with the largest acreage in the Bethlehem proposal.  With regard to the Martin Tower property, the CRIZ Application represented that:

•           The vacant 52-acre Martin Tower campus sits as a landmark and gateway to historic Bethlehem.  The owner/developer intends to redevelop the 21-story tower as a mixed-use facility and develop the surrounding acreage with office, retail, commercial and residential uses resulting in one of the Lehigh Valley region’s premier commercial and residential destinations.  Martin Tower is another example of Bethlehem’s efforts to create its future from the vestiges of Bethlehem Steel’s past.

•           Located in close proximity to the region’s main transportation artery, Route 22, this project is ideally situated and will be readily marketable for the intended uses.  Representing a $175 million investment in the City, Martin Tower will provide an excellent opportunity to promote a live-work environment.  This “smart growth” approach to redevelopment is a cornerstone of Bethlehem’s CRIZ Plan and one that has helped the City earn the reputation as a community that executes on opportunities and generates positive results for itself and the region.

The CRIZ Application also represented that the intended uses of the Martin Tower property complied with current zoning and already had a Master Plan approved.  The Master Plan approval referred to was a Master Plan approved by Bethlehem City Council in 2007 which proposed the preservation of the Martin Tower building and retrofitting it with 266 condominium units, the construction of only 13,000 square feet of “neighborhood retail” shopping space south of Martin Tower, and the construction of 552 townhouses on vacant parking lots and otherwise unused land east of Martin Tower and west of Burnside Plantation.  As represented in the CRIZ Application, the development on the Martin Tower property would have brought many new residents to the downtown area and added to the retail and restaurant revival in the existing Downtown area.  A copy of the 2007 approved Master Plan for the Martin Tower building was attached to the CRIZ Application.

Development of the Martin Tower property with 380,000 square feet of new retail/restaurant/entertainment square footage instead of the primarily residential development represented in the CRIZ Application, represents a dramatic change to permit a “destination retail center” and constitutes a “bait and switch” which violates the basis of the CRIZ award, and also violates the purposes of the CRIZ Act and the guidelines promulgated thereunder.  The Pennsylvania Department of Revenue, Pennsylvania Department of Community and Economic Development and the Governor’s Office of Budget are tasked with administration of the CRIZ Program and have issued guidelines to administer the CRIZ Program (“CRIZ Guidelines”).  As stated in the CRIZ Guidelines, one of the primary purposes of the Act is “to provide opportunity to spur new growth in cities that have struggled to attract development, helping to revive downtowns and create jobs for the residents in the regions.”  Rather than help to revive the existing Downtown area within Bethlehem, the Zoning Amendment will decimate the existing Downtown and diminish the property values and quality of life of the residents and businesses in the Downtown area.

Section IV of the CRIZ Guidelines specifically states that:

E.  If the zone plan is amended or modified in a significant manner after the zone is approved and during the term of the zone, the contracting authority must inform DCED, the Office of the Budget and the Revenue Department in writing with a detailed explanation of the amendment or modification.  DCED, the Office of the Budget and the Revenue Department may ask for additional information.

Therefore, since the Zoning Amendment adopted by the City of Bethlehem now allows for the demolition of the Martin Tower building and significantly alters the development permitted on the Martin Tower Property as represented in the CRIZ Application, the City and/or the Authority is required to notify DCED, the Office of the Budget and the Revenue Department in writing of the amendment of its CRIZ plan and to obtain new CRIZ approval for such significant changes.

Since the development of the Martin Tower property in accordance with the City of Bethlehem’s new Zoning Amendment is not in accordance with the CRIZ Guidelines or the CRIZ Application, my clients respectfully request that the CRIZ award for the Martin Tower 52 acre parcel be revoked at this time and that the City of Bethlehem be permitted to designate other properties for CRIZ redevelopment that will not undercut its core Downtown revitalization and existing businesses.  Please acknowledge receipt of this correspondence and advise action to be taken in light of this new information provided herein.  

Very truly yours,

Marc B. Kaplin

Martin Tower By Drone

Kevin Schlough has shot a video of Martin Tower by drone. It apparently was no easy task and shot over a period of several days, with only a little sun but a lot of wind. Nevertheless, the view from the sky is jaw-dropping. Perhaps this is what made billionaire Norton Herrick decide to buy it when he first spotted it from a plan while landing at LVIA.

Now Bethlehem City Council has adopted a zoning ordinance that will enable the owner of this property to tear it all down.

Below is another view of Martin Tower by drone, in a video shot by Nathan Johnson. Nathan's cool music makes it sound like a scene from Diehard. I'd do this myself, but would probably crash into the tower, knock it over and get sued by Lew Ronca and get hit with a missile strike for violating the no-fly zone.

Martin Tower Rezoning leads to Lehigh County Land Use Appeal

Bethlehem City Council's controversial rezoning of the 52-acre Martin Tower is supposed to jump start development at the long vacant site, including the possible demolition of the iconic 21-story former Bethlehem Steel headquarters. While City official wait for a master plan, they've been greeted by something else - a lawsuit. Two Downtown Historic Bethlehem businesses have been joined by one South side business and four families to file a land use appeal of the rezoning decision. Filed in Lehigh County Court on January 13, the lawsuit is a procedural challenge to the new zoning ordinance.

Distinguished land use and zoning attorney Marc Kaplin, who maintains a practice in Blue Bell, filed the land use appeal on behalf of Hotel Bethlehem, Donegal Square, the Taylor Family Gas Station and residents Rocco and Electra D'Amato, Steven and Barbara Diamond, Clint and Sonia Walker, Deni Thurman-Eyer and Robert Romeril.

According to the 196-page filing, two critical errors doomed the zoning ordinance, which was adopted by City Council by a 6-1 vote at their December 15, 2015 meeting. First, Planning Director Darlene Heller made changes to the ordinance on August 28, 2015, which were transmitted to Council without review by the Planning Commission. Second, after City Council itself proposed some amendments to the ordinance, Heller failed to provide those changes to the Planning Commission at least 30 days in advance of a hearing.

According to the Municipalities Planning Code (MPC), amendments proposed by a governing body like City Council must be submitted to the Planning Commission at least 30 days in advance of a hearing. They must also be provided with changes unilaterally made by the Planning Director.

Because the City failed to follow the procedural requirements set forth in the MPC, Attorney Kaplin argued that the ordinance adopted on December 15 is void on its face.

You can read the Complaint here.

Bethlehem - A City Divided Against Itself

Rev. Mable Humphrey warned against a house divided 

Rev. Mable Humphrey, a preacher at Grace Deliverance Baptist Church who delivered the invocation at last night's crowded meeting of Bethlehem City Council, just might have set the record for lengthiest prayer ever, but it was a good one. Although I'm sure the Jesus references were something that the Jews in attendance could do without, she prayed for unity and reminded everyone that "no city or house divided against itself will stand."  If that's so, Bethlehem should come crashing down even sooner than Martin Tower. Last night, a nearly unanimous Council voted 6-1 to approve a new ordinance that permits developer Lew Ronca to tear down the tower with $9 million of our money, and develop the 53-acre site with a mix of office buildings, residences and retail. They did so despite protests from 21 of 22 residents, merchants and assorted professors.

Rod Holt, Apollo Grill co-owner, reminded both City Council and Mayor Donchez of what Japanese Admiral Isoroku Yamamoto supposedly said after the Pearl Harbor attack. "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve."

"You all know how that ended," Holt concluded.

He was hinting that the Administration and Council will pay a heavy price at the polls for their actions last night in adopting an ordinance almost universally opposed by Downtown Bethlehem and South Side merchants. Some say this anti-incumbent sentiment is what has already swept Olga Negron and Michael Colon into office.

Although Mayor Donchez insisted at the start of the meeting that the process was fair to all involved, Holt countered he was at a meeting with Planning Director Darlene Heller denied that the Administration was talking to the developer in and that Community and Economic Development Director Alicia Karner twice refused to let merchants meet with the Mayor. Diane Holt, Rod's wife, added that Karner came into a meeting with "guns blazin'" and yelled at merchants who wanted to meet with the Mayor.

Throughout the evening, Holt's allegations were confirmed by Brew Works owner Jeff Fegley, Donegal Square owner Neville Gardner and Hotel Bethlehem Managing partner Bruce Haines.

"We were shut down," complained Fegley.

Neither Karner nor Heller responded to these allegations, but they were praised earlier by the Mayor and later by City Council. They have previously denied that they prevented merchants from seeking out the Mayor.

Jim Fiorentino, Chair of the Planning Commission, also addressed Council. He told them he first became aware of the new ordinance at Martin Tower in June, and was immediately struck by the detail. He believes he and other planners were misled about the involvement of developer Lew Ronca.

He likened planning to building a snowball, which he said should be built at the top of a hill, with many people helping. Once that snowball starts rolling down a hill, it's hard to change it.

Fiorentino concluded that adoption of this ordinance would send the message that the City can be underhanded in everything we do."

Hotel Bethlehem Managing Partner Bruce Haines had three points. First, even with Eric Evans' amendments, the amount of destination retail permitted at the Martin Tower site will still be 2 1/2 times the size of Historic Downtown Bethlehem shopping district. Second, the developer is being rewarded with a windfall after he blighted the tower himself. Finally, he called the City Revitalization and improvement Zone (CRIZ), a special incentive under which Ronca can use state and local taxes to finance development, the "root cause" of the problem. He warned that Ronca can use the CRIZ to drive every downtown merchant out of business, and then move the CRIZ downtown after buying all their buildings at reduced prices.

Irishman Neville Gardner told the story of being forced to call Ronca from Scotland because the developer was going to refuse to permit parking at the Martin Tower lot during Celtic Classic."You're dancin' with the Devil," he warned.

Dana Grubb suggested that the City should conduct a number of neighborhood meetings, as it did when it considered a new zoning ordinance.

Kisann Albanese, a massage therapist downtown, noted the absence of both a plan and the developer.

The sole supporter of Martin Tower rezoning was David "Lump" Sanders, owner of the popular Center Street deli where the famous Table of Knowledge is located.

"Some days you're the bug, some days you're the windshield," he started.He noted plans like these always have opposition, including the Sands and Lowe's. He said that Martin Tower doesn';t generate enough taxes to even pay for a police motorcycle.

When all were said and done, all Council members save Cathy Reuscher voted for the mixed use ordinance. Eric Evans stated that the people in the room do not speak for all 77,000 Bethlehem residents. Recchiuti, who plans on moving to Hanover Township, voted for big boxes and suburban sprawl. Bryan Callahan amazingly avoided insulting the audience for the first time in several meetings. Lou Stellato said, "We gottta' do something!" for the third time. Adam Waldron wants to "scale it down," a little bit, but not enough to vote No.Reynolds tried to be conciliatory, but

It's too soon to say whether merchants will challenge this ordinance in court. But it's very likely that supporters of this ordinance will be challenged in upcoming elections. Historically, mercahnts have stayed out of electoral politics, but that appears to be changing.

The City is divided against itself.

Updated 11:45 am. There are stories at WFMZ-TV69, Morning Call and Express Times.

Martin Tower RTK an Exercise In Participatory Journalism

On Tuesday night's public hearing on zoning changes at Martin Tower, I was sitting inside the gym at East Stroudsburg High School South, watching my grandson play basketball. I refuse to miss his games this year. But I'm told that my name and the RTK were mentioned frequently. I feel it is important to make some clarifications about the RTK.

First, it was not my RTK, but an exercise in participatory journalism. - While I love to hear nice things about myself, I need to point out that the RTK was effective only because several people reviewed it and made their own observations. Frank Barran, Bruce Haines and Jeff Fegley are three names that come to mind. That is why I posted the material online. Had I been the only one reviewing it, I'd still be trying to figure it out. .

Second, the RTK refutes improper pay-to-play. - There is no question that many elected officials have received political contributions from CRIZ beneficiaries. I admit I was suspicious. I asked for all emails, even from personal email accounts. I find it interesting that, among the hundreds of pages supplied, there is no mention at all of these campaign contributions. Whatever role these contributions have played, they are subtle, not overt.

Third, Bethlehem gave me everything, even information that made it look bad. - I immediately jumped on the text exchange between Lew Ronca and Alicia Karner. That was red meat. But that period of just three days is the sole text exchange between the two. There is also a much more limited exchange between Alicia Karner and Ronca lackey Duane Wagner, but it is unrelated to Martin Tower. I did not like to see Mayor Donchez signing off on a letter typed in advance by Ronca, but the City was forthright and disclosed it.  The City was trying to be as open as possible. I need to make that clear as someone who files frequent RTKs and knows how many jurisdictions drag their feet and deny everything. i was quite impressed at the honesty.

Fourth, Ronca penchant for secrecy is what really hurt the City's credibility. - The only time Ronca tipped his hand was when he discussed the possibility of a high end gas station. Other than that, no one has a clue what he plans to do. His unwillingness come up with a specific plan and defend it in public has hurt the City's credibility. The City should have done a better job of explaining that this may be its own ordinance, but that it was meeting extensively with Ronca. The City should also have realized the firestorm it was creating when it was allowing virtually unlimited and publicly subsidized retail, with no concrete plan. I think it knows that now.

Fifth, the RTK reveals no evidence of any criminal behavior. -  I'm told that the FBI was mentioned several times. They're a little busy right now, and that's just with all the reports concerning terrorism. I see nothing on the RTK that would warrant an FBI or any kind of criminal investigation. I think those concerns are a bit over the top. If you disagree, please tell me what evidence of criminality is unveiled by the RTK.

What now? - Eric Evans was right when he suggested this zoning ordinance should be tabled until Ronca produces a clear plan detailing what he intends to do. There are simply too many uncertainties without a clear vision. While the Martin Tower tract needs to be developed, that's no excuse for allowing the very opposite of smart growth.This is the only workable solution.

Last Night's Martin Tower Hearing

I skipped last night's public hearing concerning the new zoning proposal for the 53-acre Martin Tower developments, which is owned by Lewis Ronca and Norton Herrick. So, apparently, did they. I was at my grandson's basketball game. I won't be missing those. I've learned that children grow up very quickly, and every second you miss is a second you'll never get back. But the time for talking is over. It's time for Bethlehem City Council to do what Eric Evans suggested in October - send it to a committee.

To those who think this raises the specter of contract zoning, I think the Right-to-Know showing the City and Lew Ronca exchanging seven different draft versions of an ordinance already makes that a distinct possibility. The only way to prevent that is by encouraging public involvement at a much earlier stage than happened here.

While watching Central Catholic win its first league game, I did receive a lot of first hand accounts from people who were at town hall for the two-hours of public comments. For the second time, public opposition to Martin Tower rezoning was unanimous. For the third time, Bryan Callahan mixed it up with one of the merchants. I don't know if Lou Stellato said, "We've got to do something!" again or whether Adam Waldron had any more questions about the frickin' tree canopy.

The sole reason for this mess, however, is NOT City Council or Mayor Donchez or Darlene Heller or Alicia Karner.

It's the developer who is hiding in some hallway, texting messages from his smart phone. An owner who let a building sit vacant for seven years and now wants new zoning so he can rip it down.  A businessman who never approached Guardian Life about relocating to Martin Tower. Who never marketed Martin Tower at the Lehigh Valley Economic Development Corporation. An entrepreneur unwilling to defend his vision, if he even has one, in a public venue.

As Hotel Bethlehem managing partner Bruce Haines has repeatedly observed, there is nothing wring with the current zoning at Martin Tower. The problem is the developer.

Ronca is the beneficiary of a special tax concession that permits him to use nearly all state taxes and some local taxes to fund development. In Bethlehem's application for this special tax zone, the City bragged about how it would adaptively re-use a former Bethlehem Steel Building. What happened to that?

Ronca is also getting a $9 million RACP grant that was supposed to help Martin Tower survive, not knock it down.

Given the amount of public assistance he's received, he needs to share publicly exactly what he intends to do at the site, not slink around in back rooms and hope that his campaign contributions will do the trick.

I skipped tonight because nothing more need be said.  City Council needs to scrap this ordinance and start over, in a much more public setting, and insist that Ronca attend. Zoning or Planning by "appeasement," as Matt Malozi calls it, is never a good idea.

RTK: Will Martin Tower Be Replaced By Gas Station?

(Blogger's Note: This analysis appear is today's Bethlehem Press, which also includes a timeline of the back and forth between Ronca and City officials. I am repeating the story here, where it is easier for readers to comment. )

A controversial mixed use ordinance at the 53-acre Martin Tower campus is poised for adoption by Bethlehem City Council later this month, following a review by the Planning Commission. Mayor Bob Donchez and Council President Willie Reynolds have publicly stated that they want to give developer Lew Ronca more flexibility for numerous different uses like destination retail, big boxes and apartment buildings. But documents provided in response to a right-to-know reveal that, despite numerous meetings with city officials since January, Ronca appears to have no idea what he wants to do. Only two things are clear. First, he will demolish the iconic 21-story building that once stood as headquarters to Bethlehem Steel. Second, he will replace this landmark listed on the National Register of Historic Places with a small commercial building, most likely a high end gas station. .

Ronca instrumental in securing CRIZ in Bethlehem

Documents released by Bethlehem reveal that Ronca was instrumental in obtaining a City Revitalization and Investment Zone (CRIZ) designation in Bethlehem. The Martin Tower project is described as the "cornerstone" of Bethlehem's 130-acre CRIZ plan and as "another example of Bethlehem's efforts to create its future from vestiges of Bethlehem Steel's past."

Ronca orchestrated the use of lobbyists Anthony Pugliese and Heather Browne, wife of State Senator and NIZ author Pat Browne, to navigate the treacherous political waters in Harrisburg to secure favorable tax concessions for a closed club of developers that included him, Dennis Benner, Mike Perrucci, J.G. Petrucci, Majestic Realty and the Sands Casino. At the time that Ronca and then Mayor John Callahan were conducting conference calls with these lobbyists, emails reveal that developer Lou Pektor was on the outside looking in. He tried over and over to get a seat at the table, but it was a closed game.

When the CRIZ designation ultimately came in late 2013, Ronca finally had a green light to use state sales and income tax to fuel development at the site. What's more, any attempt to transfer the CRIZ away from Martin Tower to another part of the City would require his assent. He could just sit on the entire tract and do nothing, and the City would have to pay him to move the CRIZ somewhere else. 

Ronca Also Beneficiary of $9 Million RACP Grant

Think the CRIZ is enough of an incentive to jump start development? Think again.

In addition to the CRIZ, Ronca has another government concession. It's $9 million in taxpayer dollars to remediate asbestos at the site, as well as add a sprinkler system. Over the summer, Mayor Donhez requested a one-year extension on the site, signing off on a letter that had been prepared in advance by Ronca. This is part of the state Redevelopment Assistance Capital Program (RACP), and was initially obtained by Lou Pektor he was involved in the Martin Tower project. Since this funding stream was approved before the CRIZ, Ronca will be able to take advantage of this state grant as well as use state taxes to pay for construction.

Instead of using $9 million in RACP funds to just remove the asbestos from Martin Tower, he intends to do that and then tear down the building.  He will spend $5.1 million on asbestos remediation, $1,75 million for demolition and $1.5 million on regrading. The tower structure is to be replaced by a $4 million commercial building.  The state will reimburse $9.075 million of the money spent.

Ronca Wants To Replace Martin Tower With High End Gas Station

This new commercial building will most likely be a high end gas station. Ronca and his business associate, Duane Wagner, began meeting with City officials in earnest concerning a new Office Mixed Use Ordinance in January. In late February, Ronca broached the idea of a high end gas station, possibly a Sheetz, to replace the Martin Tower. He seemed concerned at the time that it might be too close to Interstate 378, but his worries seem to have been answered. 

A high end gas station is appealing to Ronca because, as he explained in email exchanges with City officials, it will generate $210,000 annually in state taxes. That money can in turn be used to fuel more CRIZ development.Thus idea was discussed with Mayor Donchez. 

According to a timeline Ronca submitted to the state. he was hoping to get the Office Mixed Use Ordinance approved in November. After that, he would present a Master Plan for approval in February and a specific plan to demolish Martin Tower in May. The Tower would tumble in October 2016.

This is completely contrary to redevelopment elsewhere in Bethlehem, where the emphasis has been on adaptive re-use of Bethlehem Steel structures. 

What happens to the rest of the site is unknown.

Contacts With City Officials

Ronca and other CRIZ beneficiaries have been major contributor to Mayor Donchez and several Council members. The Right-to-Know request asked for all written communications between these elected officials and Ronca, even phone text messages and emails from their personal accounts. Aside from two emails from Michael Recchiuti, inviting Ronca to campaign fundraisers, nothing indicates that Ronca reminded any elected official of his contributions or that there were any communications at all between Ronca and elected officials, with the exception of meetings with Mayor Donchez to discuss the new zoning proposal. 

But Ronca did have frequent contact with City Planning Director Darlene Heller and Department of Community and Development Director Alicia Karner, as several drafts of the new proposal went back and forth. 

Finally, after two meetings with the Planning Commission, Heller forwarded the new zoning ordinance to City Council with a memo calling Martin Tower "blighted and obsolete." She claimed the City was being "proactive," but the reality is that this ordinance was inspired by Ronca, who provided the original draft or a mark-up of an existing ordinance to the City on January 20, 2015.  

In addition to being the driving force between this new ordinance, Ronca business associate Duane Wagner even went so far as to provide Darlene Heller with "talking points" to answer merchant concerns about the ordinance as fears of a third downtown began  to surface. The ordinance went through seven different drafts, and included as many meetings with City Officials, including the Mayor. 

Ronca Strategy : Wear the Public Down. 

Instead of publicly defending his proposal, or presenting a specific plan of what he intended to do at the 53-acre site. Ronca's strategy was to wear the public down. He failed to appear when the new zoning ordinance was presented to the Planning Commission in July and August, and has been absent at three public hearings concerning these zoning changes. 

Ronca's Martin Tower Timeline Shows Demolition in 2016

In order to get an extension on an $8 million Redevelopment Assistance Capital Program (RACP) grant from the state, developer Lew Ronca has been required to provide a timeline about what he expects to happen at the 53 acre site. Much of this is contained in Part 11 of the information provided by the City.

He already expected at this time to have City Council approval of a new Office Mixed Use Zoning Ordinance at the site, with which he has been intimately involved.

Once the ordinance is adopted, he plans immediately to begin engineering a master plan for the site.

In February 2016, he expects to see a Master Plan approved by the Planning Commission. It will include the demolition of Martin Tower, which will be replaced by a commercial building. Asbestos remediation will cost $5.1 million, demolition will cost $1.75 million and another $1.5 million will be spent to prepare the site for a new building. He will spend $2.375 million to prepare for a 30,000 sq ft mixed use commercial building. He will have to front the money, but will be reimbursed by the state, except for the new building. So at this point, he will have spent nothing.

The building will cost $4.1 million.

After approval of the Master Plan, he will submit a specific plan to demolish Martin Tower, and expects to have that approved by April. After that, he will seek bids for demolition, and will begin work on that in October 2016.

What else is planned? Ronca sidekick Duane Wagner discussed a possible Sheetz gas station, which could provide between $218,500 per year in tax money to fund construction costs.

I should complete my review by week's end.

Martin Tower Developer Used NIZ Lobbyist and Heather Browne For CRIZ

Yesterday, I told you that Bethlehem has complied with a right-to-know request for all communications between developer Lewis Ronca and City employees that are related to Martin Tower. I know City officials took this matter very seriously and provided a wealth of information. Here and there, email addresses and phone numbers are redacted, but my chief concern was establishing when contacts between Ronca and the City began, and what was discussed. I believe the City demonstrated great transparency in putting this information together in an expeditious manner, and I'd be remiss if I failed to point that out and express my appreciation. It could easily remove some documents, and I'd be none the wiser, but it took the high road and gave everything, warts and all.

I want to discuss one of those warts.

On August 28, 2013, ( see Part 9). before the CRIZ was approved, Lew Ronca set up a conference call with Mayor Callahan, Senator Lidsa Boscola and Ronca's partner in Martin Tower, billionaire Norton Herrick. The purpose of this call was to engage high power lobbyists. Who better than the very lobbyists who managed to get the NIZ enacted for Allentown? So the call also included lobbyists Rocco Pugliese and Heather Browne of Pugliese Associates. It also included governmental relations specialist Daniel Robinson, who most have been on board for the ride with Pugliese. .

Heather Browne is married to State Senator Pat Browne, a ranking Senate Republican whose support would be instrumental in getting the CRIZ enacted. And he supported it.

Browne denied his wife had anything to do with the NIZ, but it's pretty clear she had a lot to do with the CRIZ. How is this not a conflict of interest? When he ran against Senator Browne many moons ago, Rick Orloski discussed this arrangement:

"Pat and Heather Browne have injected something new into Lehigh Valley politics, namely, the husband and wife team working in the Capitol with Pat Browne receiving public monies and Heather Browne receiving private monies to advance private agendas. Senators are supposed to serve the public good, not private agendas. Maybe the ideal solution is for Pat Browne to relinquish his public position and join his wife's lobbyist firm."

Under the state Ethics Act,

"A conflict of interest is defined as use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family, or a business with which he or a member of his immediate family is associated."

It appears that Browne's vote to support the CRIZ was for the private pecuniary interest of his wife and hence a conflict.

Let's discuss another wart.

According to the CRIZ application, Martin Tower represents a $175 million investment. There will be $.42.8 million in financing, with an annual debt service of about $3 million. It is projected to create 1,375 jobs. Total CRIZ revenue through 2024 is estimated at $34.2 million.

The only way that happens is with retail. Lots of retail.

Martin Tower RTK: Ronca Wanted to Wear Public Out

Bethlehem has filed a detailed response to a right-to-know request I filed in October, seeking the following:

"This request is for the period of time extending between 1/1/13 and present. It applies to all City of Bethlehem employees as well as all members of Council and the Planning Commission. What is sought is all correspondence, email communications and text messages between City of Bethlehem employees, City Council members and Planning Commissioners and representatives of the Martin Tower development related to the following topics:
          1) Participation by Martin Tower development in the CRIZ project.
          2) The zoning changes at Martin Tower development under consideration by City Council.
          3) Campaign contributions.
          4) leasing of the martin tower site for Celtic Fest."

I have started to go through it, and will report my conclusions soon. But the more eyes that see this, the more likely it is that someone will pick up on things that I miss. For that reason, I have uploaded the response below.

This is an exercise in participatory journalism. Your mission, should you choose to accept it, is to go through this RTK and note your conclusions in the comments. Here's what I know so far:

* Developer Lew Ronca and his sidekick, Duane Wagner, were in on this new ordinance from the onset. It is NOT a City proposal, despite the City's claim that it is.

* Duane Wagner went so far as to provide talking points to Planning Director Darlene Heller to use with the public, including the myth that the current ordinance allows up to 425,00 sq ft for retail.

* Lew Ronca was hiding in the hallway during the public hearing, but left because he "needed to avoid reporters." He was engaged in a text message party with DCED Director Alicia Karner during the hearing. The plan, it certainly seems, was to wear the public out with Heller's 2 hour, 15 minute presentation.

Oct 6
Ronca: "Didn't D [Darlene Heller] wear them out?" 
Karner: "Only a few."
Ronca:  "OK. Keep me posted. Any grumbling from the audience?"
Karner: "Hearing just ended. rest of council to go. 34 speakers. 2 supportive."
Oct 7
Ronca: "What time did you get out of there?"
Karner: "Idk. 1230 or so."
Ronca: "My God. Had I known I would have bought you a drink or two after that!"
Karner: "http://lehighvalleyramblings.blogspot.com/2015/10/bethlehem-city-council-proves-they-can.html"
Ronca: "There ya go. All was not wasted then!!"
Ronca: "Yes. I read that first thing this morning. Schweder is an asshole by the way."
Karner: "First I ever saw/heard him speak." 
Ronca: "There is a story. I'll tell you when I see you."
Karner: "Can't wait (note the sarcasm)."
Oct 8
Ronca: "Can you meet with me and the mayor tmrw at 3:30?"
Karner:"Yes. At Mayor's office?"
Ronca: "Yes please. See you then." 

The documents:

Part One, Part Two, Part 3, Part 3 (cont'd), Part 4, Part 5, Part 6, Part 7, Part 8, Part 9, Part 10, Part 11

Can Bethlehem Merchants Survive the CRIZ?

I ask that question in a news analysis for this week's Bethlehem Press. I do question whether Historic downtown and South side merchants can compete against a new Promenade at the publicly subsidized Martin Tower, where zoning changes certainly make it a possibility. I also remain appalled at the shabby treatment that City Council gave to 100 merchants at their meeting last week, where they were denied the right to speak at a public hearing for three hours. Finally, I am doing research, and believe the influence of pay-to-play is much greater in Bethlehem than many realize. Allentown and Bethlehem both suffer from crony capitalism. I'll have more about that next week.

$860k EPA Loan Fund for Asbestos Removal at Martin Tower

I remember when Martin Tower, the Lehigh Valley's largest building, first opened its doors in the early '70s. My Dad was invited to Bethlehem Steel's open house, and took the family. I remember nothing about the building itself, but can still see the proud smile on Curtis Barnette's face. At that time, Barnette was one of the steelmaker's many attorneys. Barnette would go on to become Director, but the steel itself would fall on hard times, and the majestic tower sits vacant, a prominent symbol of the region's economic decline.

Developer Lewis Ronca wants to change that. He and silent partner Norton Herrick plan to convert this former office building complex into 230 apartments and up to 285 townhouses. But before anything happens, the asbestos has to be removed.

As LC Comm'r Dan McCarthy noted at a meeting last week, the Bethlehem Steel "is gone, but the asbestos remains." Last week, Commissioners agreed to act as the pass through agency for an $860,000 EPA loan for asbestos removal project.