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State of City Address

Year 2008

Mayor John Callahan
State of the City Address

February 21, 2008

I want to thank the Greater Lehigh Valley Chamber of Commerce and the Bethlehem Business Council for hosting and organizing my fifth “state-of-the-city” address. It is fitting for this event, that I am joined today by both my city 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 to introduce you to the members of my staff, who are here – many of whom you know…

A little more than 10 years ago I decided to run for City Council because I saw the City at a crossroads. There were too many people looking backward rather than looking forward lamenting what we had lost instead of dreaming about what we could be. A decade ago there was a great deal of uncertainty over the future of the City and with good reason. Today, however, that uncertainty has been replaced with great anticipation and optimism about tomorrow.

Last year, at this time, the City was basking in the glow of being awarded a license for a stand-alone casino. But even then we knew there was much work to be done. This casino development will be the economic engine that allows the City to realize the dream started over a decade ago on the old Bethlehem Steel property. Today I want to take the opportunity to discuss the preparations the city has undertaken in anticipation of the opening of the casino.

It is really easy to see the progress of this project. One needs to just drive over the Minsi-Trail Bridge and look east and west to see the transformation. To date, about $100 million has been spent on demolition, remediation, utility relocation and other site work and only now is steel rising from the ground. This tremendous capital investment reaffirms my belief that the only way to develop this particular piece of steel land, which in many ways is one of the most difficult parcels, was through the extraordinary resources brought by the casino. The foundations have been poured, the utilities have been laid and soon the steel will be put in place – American steel at that. A new era for Bethlehem is just around the corner.

Today, we are preparing for this new era. We too are laying the foundation by investing in some of the most fundamental areas of City government, planning, infrastructure and public safety. While the Sands development will be a tremendous boon to the city’s economic development future, we will not sacrifice the character and quality of life in Bethlehem, which has become our hallmark. Today, we are the envy of most cities throughout this Commonwealth. Through proper planning and preparation we will remain the envy of cities decades from now. We must continue to be the gold standard for mid-size cities in the state.

We need to ensure that our roads are prepared to handle the traffic generated by an additional 5 million visitors each year. Over the course of the next four years $100 million in road improvements will take place in South Bethlehem alone. Penn Dot is undertaking a long-awaited $70 million major reconstruction of Route 412. Las Vegas Sand is investing an additional $18 million in road improvements along that corridor. The City, meanwhile, is implementing plans to address the traffic patterns at the Five Points intersection. For some time now it has been clear that the current configuration was insufficient to handle even existing conditions, threatening this part of the city with gridlock. The Five Points Gateway Enhancement plan, a $2 million private-public partnership among the Sands, St. Luke’s, the State and the City will improve pedestrian safety, increase parking, and improve the flow of traffic through this corridor a decade sooner than otherwise would be possible.

While it is certainly important to invest in hard infrastructure I want to turn my attention for a moment to something that has long been a focus of mine, and that is our public safety infrastructure. There is no more important indicator for a city’s livability and ability to attract more economic growth, than safety. We can’t attract millions of visitors to Bethlehem if they don’t feel safe. We can’t expect someone to raise a family here if they don’t feel safe. We can’t expect someone to grow or relocate a business here if they don’t feel safe. In the first part of this decade Bethlehem has been the safest city in the state with a population over 30,000. This is a testament to the unprecedented investment in public safety - the most important of which is manpower. Between 1984 and 2004 the City added a total of 12 new police officers. Since 2004, we have added 10 police officers. And, for the first time in 20 years officers were added to patrol. Today, I am proud to announce that we will add an additional four officers in next year’s budget bringing our total force to yet another all time high of 158 strong.

Not only do we have more police officers, but also they are better equipped and better trained than at any point in the City’s history. Our police department recently received accreditations – national accreditation from CALEA and statewide accreditation from PLEAC. Our police force is one of only eight departments with such a distinction and is the largest municipal police force to achieve both accreditations.

Furthermore, we have invested $5.5 million dollars in upgrading our equipment, radios and computers to ensure our police officers are equipped with the best crime fighting technology available.

As part of a new police master plan, we have redeployed our officers in an innovative community patrol model – to ensure that community policing, a program that this city lead the way on in the 1990s, becomes more than just a division in a department but rather a philosophy that permeates the entire department. We have empowered our officers to make more decisions at the street level, bringing greater accountability and resources to bear sooner before a small problem becomes a larger one. A critical component of this plan is the redeployment of our officers to four major neighborhood substations in each quadrant of the City. By placing more officers in the neighborhoods where the residents need them, we have helped to improve the quality of life in our City. This model has been well received by all of our community groups and block watch captains.

Our investments in technology and manpower have paid off. In last year’s state of the city I said that no matter what the budget constraints, we will never skimp on public safety. And I will invest whatever is necessary to ensure that we maintain or improve public safety as this casino is developed. I am happy to report to you today that I made good on that promise and that these investments have paid off. Violent crime has dropped from 2006-2007 by 8%, non-violent crime by 4.5% and total crime in the city is down by almost 6% year over year.

Just yesterday a long time city resident walked up to me and asked simply “Are we ready?” This simple question sums up the challenge we have before us as a city government. And the answer is yes, we are ready because we are aware of the work that needs to be done, and we are prepared to meet the needs that this change will bring.

The story of the Sands development is but a small part of the tremendous growth on-going in the City today, and one of the challenges for us is to ensure that a casino does not come to define just what or who we are. It needs to be part of our success. The redevelopment of the steel land places Bethlehem in the enviable position of being able to accomplish some extraordinary things. However, the redevelopment of the steel land alone will not guarantee the vitality of Bethlehem for years to come. Balanced growth and investment in all areas of the City are equally critical to ensure our success.

Bethlehem is in the midst of the most rapid period of growth and change in our 265-year history. Bethlehem is the fastest growing, most prosperous mid-sized City in Pennsylvania. Over the last four years we have seen a $91 million increase in our tax base, $30 million year over year, last year alone. In that same four-year period the City has experienced $682 million in economic investment, and has created and retained 3500 jobs, in every sector of the economy - all the while investing in ourselves and maintaining fiscal responsibility by not taking on more debt than we pay off. Unlike so many other cities we have not mortgaged our future. Since I became Mayor we have decreased the city’s total debt by $35 million and we are on track to aggressively pay down debt by fifty percent in the next seven years and sixty percent in the next ten years – a claim that very few governments can make. And I’m happy to add that we have accomplished all this without a tax increase in the last two years.

Today, Bethlehem has more than $1.8 billion dollars of investment on the horizon and anticipates more than 5,000 new jobs in the City. This does not include the Majestic property or any other LVIP announcements that have not been made. Undeniably, $1.8 billion will change the way Bethlehem looks.

But as we grow it is important that we do so in a responsible manner. That is why for the first time in 15 years we are updating the city’s comprehensive plan. This comp plan, along with the $450,000 of corridor studies and master plans that were already completed, will act as a guidepost and blue print for our future. To ensure that as we continue to grow we do so with an eye towards smart growth, sustainability and quality of life - we’re not going to grow for growths sake. We’re also embarking for the first time in our city’s history a city-wide parking master plan to evaluate capacity, utilization, anticipated projected demand and the feasibility of additional parking garages. We recognize that the Walnut Street garage is at capacity and the North Street garage is close to capacity – these are all good signs of a vibrant downtown but we need to address the deficiency of parking at the south end of Main Street so that our north side business district remains strong and our merchants can compete. Now some say we cannot afford to look at these issues – to those individuals I say ask Central Moravian Church, ask Moravian College, ask the Moravian Book Store and ask the Hotel Bethlehem. They will say we can’t afford not to, and I agree.

It is also vital to our long-term success to preserve our neighborhoods and our quality of life. It is our neighborhoods that make this City so special, it is our neighborhoods that make this city what it is today, and they are the lifeblood of our community. I encourage any of you to drive the 20 square miles of our city and see the amazing diversity that is Bethlehem. Or if you want to train for a marathon, you can probably run those 20 square miles. If we fail to invest in our neighborhoods, we will fail our residents.

Our ongoing Elm Street initiative focuses on two important core neighborhoods on both our North and our West sides. But investing in our neighborhoods is not limited to bricks and mortar. It is also important to focus on the subtle investments, not readily visible to everybody but important nevertheless to maintaining a strong quality of life. These include clean streets, increased code enforcement, and better parks and recreation, just to name a few.

I am also happy to announce that in a matter of weeks, we will close on the South Bethlehem Greenway in the weeks ahead - a project that will have a transformative impact on each neighborhood that it touches and each neighborhood that it connects.

Today, Bethlehem enjoys a reputation of being a well-managed city. This reputation was not earned by accident. We take pride in delivering more with less. While we have worked to put our resources on the front lines - we have our largest police force in history, largest EMS and fire departments in history, - we continue to have one of the smallest non-uniformed workforces in our city’s history and we still deliver services at an unprecedented high level. The Continuous Improvement initiative has helped to continue our goal of delivering more with less. CI in the City is the innovative public-private partnership with Air Products that eliminates waste, increases efficiency, and empowers employees to do their jobs better. Through Continuous Improvement we have decreased the permitting process from 42 days to 2 weeks. Most recently we have announced curbside pick-up of paper products saving an additional 100,000 more trees a year and an additional 750 tons of carbon annually, all without increasing costs to the taxpayers. CI has become, and is an essential tool in providing good, cost effective government.

Bethlehem is a remarkable community, but you don’t have to take my word for it. Clearly the plans are in place and they’re working, but you can see I’m not giving this speech on an aircraft carrier with a “mission accomplished” banner behind me. There is more work to be done. And I want to stress, this is not about a mayor, its not about a city council, or its not even about a city government - it is all of us working collectively to prepare this community for change.

As late President John F. Kennedy said, “Change is the law of life. And those who only look to the past or present are certain to miss the future.”

It is important that I end where I began, by thanking all of you. It is you who will ensure that the promise of tomorrow becomes a reality. We need to look beyond today and prepare for tomorrow.

So if you ask me what the state of the city is - my answer is:

We are a fiscally healthy city that is getting healthier.
We are an improved city that is continuously improving.
We are a growing city that is growing greener.
We are the safest city, getting safer.
In short, we are the best, getting better.

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