Year 2005
Mayor
John Callahan
State of the City Address
Hotel Bethlehem
January 25, 2005
I want to thank the Greater Lehigh Valley Chamber of Commerce
and the Bethlehem Business Council for hosting and organizing
my second “state-of-the-city” address. It’s
fitting, for this event, that I’m joined today by both
my City Hall management team and by you, the private sector
leaders of the Bethlehem community. It is all of you –
through your daily activities of running your businesses,
creating jobs, and volunteering your time – who make
this city work and this community so special. I want to take
a few moments and introduce you to the members of my staff
who are here – many of whom you know –
It was a little less than a year ago that I took the oath
of office as Mayor of Bethlehem. It was a great honor given
to me by the people of this great City – an honor for
which I will be forever grateful.
Since Jan. 5, we have worked together to continue the growing
prosperity of Bethlehem, to tackle the challenges that have
come and, most of all, to ensure that the future of this city
is even greater than our glorious past.
And, as you – the people of Bethlehem – know,
we are well on our way. It has been a good year - a good year
for Bethlehem. And I’m proud to stand before you today
to say that the state of the city is strong.
Since the departure of Mayor Don Cunningham to join the Rendell
Administration, this City has had three different mayors during
the course of the last two years. Things have settled this
year. We have restored stability and kept the ship of state
on the right course – a course that has made Bethlehem
the shining star of not only the cities in the Lehigh Valley,
but of third class cities of Pennsylvania.
We don’t have to look very far to appreciate what we
have in this city. We inherit a rich history, a proud past
and the foundations upon which to grow a new and even more
prosperous future. We have built upon that foundation –
and emerging is a city that is the embodiment of a New Urbanism
in America.
Unlike most other cities of our size, we are on the way to
having a full complement of jobs, quality housing and recreating
opportunities within walking distance in a multitude of neighborhoods
of every socio-economic class across this city. Bethlehem
is a rare city where people can live, work, recreate and raise
a family in the safety and security of any given neighborhood.
Building upon the foundation of economic development, fiscal
responsibility and basic services that has been the hallmark
of Bethlehem’s government during the last seven years,
we have met several difficult challenges during the last year.
And one by one we’ve addressed them and put them behind
us.
There is no challenge that Bethlehem faces that can’t
be solved with hard work and the continued commitment to the
simple guiding principles of growing our economy, being responsible
fiscal stewards and always working to improve our basic services.
While we have faced issues that would have broken the financial
backs of many cities -- this Administration’s commitment
to fiscal responsibility and meeting our challenges head on,
has allowed us to pass a 2005 balanced budget that provides
for greater investment to improve city services, and the largest
projected cash balance this city has had in five years. A
$53 million dollar budget passed basically as proposed, with
less than $40,000 of changes. We’ve not shirked from
our challenges. We’ve taken them on one by one.
We live in a remarkable time. Bethlehem is completing its
transition from an industrial era to a new and exciting time
that, I have no doubt, will see Bethlehem emerge as a national
prototype for what former industrial communities can become
in the 21st Century.
Just this last year we’ve posted $450 million in new
economic development projects – and those are real projects
under way. Those projects, which range from industrial to
commercial to residential, will result in more than 1,700
new jobs.
These are extraordinary figures. And that growth and development
will be added to the $14 million in new real estate assessments
we saw added to the books during the last year. Unlike most
cities, Bethlehem is growing --- with more to come.
We rank third in Northampton County in building plans submitted,
behind only Forks and Bethlehem Township, two of the fastest
growing suburban townships in Pennsylvania.
The hard work and investment put into the former lands of
Bethlehem Steel and the south side has begun to bear tremendous
fruit. BethWorks Now is quickly becoming a reality just as
the LVIP lands of the Bethlehem Commerce Center are springing
up new businesses where this city once made the steel that
built America.
At the same time, the south side business district is thriving.
Once empty storefronts are now filled with restaurants, specialty
shops and new stores for Lehigh students and visitors. And,
across the river, the downtown continues to grow as the Liberty
Center has reached nearly full occupancy as Restaurant Row
has continued to travel up Broad Street.
There are more than 30 communities across Pennsylvania under
state receivership with “distressed community status.”
Pittsburgh is just the latest. We need only to look to our
east or west, at Allentown or Easton, to appreciate how unique
Bethlehem is and the progress our city has made.
Bethlehem is financially sound. Our bond rating is amongst
the highest of any city in the Commonwealth. It only takes
a stroll down any of our commercial streets, or a drive through
our neighborhoods or an honest look at our financial statements
to realize that Bethlehem is a rare gem.
And, if that’s not enough and someone wants an independent
source, I encourage them to take a look at the latest Pennsylvania
Economy League reports. Bethlehem ranks number one among third
class cities in Pennsylvania in real estate assessment growth
during the last five years. And, when it comes to tax rate,
Bethlehem ranks second lowest in tax rate growth in that same
universe of cities. A lot of that credit goes to the progress
made by the Cunningham Administration.
And, in the last 12 months we’ve added to that progress.
Since taking office on Jan. 5, we have:
• Closed on the sale of 1,000 acres of former Bethlehem
Steel land to Lehigh Valley Industrial Park, which has broken
ground with its first major tenant, US Cold Storage; In fact
it is likely that US Cold storage will accelerate their expansion
plans and bring upwards of 200 jobs to our City much sooner.
• In support of that development, began construction
of Commerce Center Boulevard, the key infrastructure project
to unlock access to the full development of that land;
• Saw the sale of the BethWorks property between the
bridges to a serious development group that has created significant
momentum toward a multi-use development focused on commercial
and residential growth, along with historic preservation and
the arts;
• Realized a commitment by Northampton Community College
to bring a campus to South Bethlehem that will not only bring
more student life and new jobs to the city, but will add to
future worker training capacity;
• Completed the full reconstruction of Fourth Street
in South Bethlehem with little to no interruption of business
services;
• The City and Lehigh University won the state’s
first designation as a Keystone Innovation Zone, directing
unprecedented grants and state help to continue the development
of a “knowledge neighborhood” and the creation
of new jobs to Lehigh and Bethlehem;
• Secured a $2.5 million state grant toward the construction
of a public parking garage in South Bethlehem to support a
$25 million investment to adaptively reuse the former Johnston
Machine Shop into market rate apartments, restaurants and
retail development;
• Added a new police substation to the Five Points
neighborhood in South Bethlehem and added a community contact
station in the Lehigh Shopping Center in West Bethlehem;
• Passed a budget that has the largest police force
in the City’s history and fully staffed our community
policing division, putting more police officers on bicycles
and in neighborhood substations;
• And, we added ambulance crews to our fire station
in Northwest Bethlehem, decreasing response times by 18 percent
without costing any additional tax dollars.
We’ve been busy doing more with less -- improving basic
services; investing in the infrastructure that will allow
us to continue to build the economy of tomorrow; and growing
our tax base and keeping our tax rate as low as possible.
First class city services, new jobs and investment are all
vitally important to Bethlehem’s future – but
we cannot achieve greatness if we isolate ourselves from the
rest of the Lehigh Valley – that is why I’ll be
supportive of LVEDC, the Greater Lehigh Valley Chamber of
Commerce, and the Lehigh Valley Partnership and their regional
agenda.
We’ve accomplished a lot. And I am confident that much
more can – and will – be done with more time.
I will continue the course we’ve been on – a course
of transition and growth; of fiscal responsibility and leadership;
and, a course that will lead Bethlehem to achieving the clear
status as the safest, most prosperous city in Pennsylvania.
This coming year – and beyond – will see us focused
on the same three main issues: fiscal responsibility, economic
growth, public safety and basic services. Specifically, however,
there are some major targets that will be my focus.
• We need to stay the course in South Bethlehem and
accelerate the development of the former industrial lands
of Bethlehem Steel, including the sale of the remaining 550
acres of land to a viable developer. We will continue to invest
in the neighborhoods and retail districts that surround those
lands and focus on ensuring the blending of new development
with the integrity of the neighborhoods. The long-held dream
of creating a “linear park” in the former railroad
corridor needs to become a reality.
• We will complete development of the former Durkees
spice plant on Eighth Avenue.
• We will complete the construction of Commerce Center
Boulevard and use all of our strength, energy and ability
to launch the reconstruction of Route 412, creating a new
gateway into South Bethlehem.
• Next month, we will introduce a long-term strategic
plan for Bethlehem’s water system that will, in concert
with the Bethlehem Authority, finally address the financial
imbalance on that system that has existed since the borrowing
of $65 million to build a new Penn Forest Dam combined with
the loss of Bethlehem Steel as a water customer.
• And, as we did with the 2005 budget, we will continue
to do more with less, find ways to streamline our city operations,
and grow our tax base to keep our tax rate in check. And,
as we did this year, we will continue to pursue our own tax
reform that expects those who work here and enjoy the benefits
of our services to help lift some of the burden from our residential
and commercial tax payers.
For the last several years, we have marketed Bethlehem as
“One City with Two Great Downtowns.” There are
not many Cities in Pennsylvania that can support one downtown
let alone have two thriving and growing central business districts.
And for that we should be proud. But Bethlehem is more than
two downtowns. Bethlehem is more than 3rd and 4th Street.
Bethlehem is more than just Main St. Bethlehem is a city of
neighborhoods and the people who live in them. Now with great
strides having been made with the redevelopment of our two
downtowns, it is time to turn our focus to our neighborhoods,
and the commercial corridors that they support. Today I intend
to do just that today.
Strong neighborhoods are the life blood of our city and are
essential for our continued growth. These neighborhoods exist
throughout our city, and include the West Side, in the areas
along West Broad Street and the lower avenues, on the North
Side, in the areas along Center Street, and along Stefko Boulevard
and Pembroke Road in the city’s North East.
Today I am pleased to announce a neighborhood planning initiative
to bring increased economic and community development forces
and dollars to these neighborhoods. Under the state’s
new Elm Street Program we will develop a plan for growth in
North and West Bethlehem. We also have set aside $100,000
to begin to implement the plan. We will pursue funding from
the state’s Department of Community and Economic Development
to complete a corridor study of Stefko Boulevard and Pembroke
Road working with Just Born Candy to realize the vision of
a tourist center. We know that with the right attention and
investment we can make these neighborhoods even better. We
want to ensure that all the neighborhoods in Bethlehem share
in the renaissance of this proud City. The very same model
we have used so successfully in South Bethlehem and the business
district with the Sasaki Plan can be applied to our neighborhoods
and their businesses.
My focus will be crystal clear. I’ve been elected to
keep Bethlehem moving forward, to build upon the success that
has started, and to lead us to a brighter tomorrow. This city
has a rich history. We’ve met adversity time and time
again and came away stronger. In our own quiet way, we’ve
led the nation during Colonial times, during the Industrial
Revolution, through the great world wars. The continued success
of Bethlehem rests not with one person, or one Mayor, one
company or one institution, but with the collective efforts
of all citizens, all of its businesses and all of its institutions.
All of you will determine our ultimate course. So I call on
every member of our community to do their part to ensure that
the spirit of Bethlehem lives on. Together we can accomplish
anything, but divided our opportunities will be squandered
and our momentum lost.
Bethlehem can be a showcase for a new mid-size urban America
– an urban America founded on great neighborhoods, a
strong community, good schools, a diverse economy, and a rich
history, appreciation for arts and culture, and attractive
downtowns. In short, a good quality of life built upon a solid
way of life. During the last 100 years our name became synonymous
with steel. In the next decade, Bethlehem will become the
benchmark for livable urban communities, where all people
from all neighborhoods North, South, East and West can live,
work and play all in walking distance. Thank you.
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