Council Minutes

November 20, 2007 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
10 East Church Street – Town Hall
Bethlehem, Pennsylvania
Tuesday, November 20, 2007 – 7:30 PM

1. INVOCATION
2. PLEDGE TO THE FLAG
3. ROLL CALL

President Schweder called the meeting to order. Reverend Alf Halvorson of First Presbyterian Church of Bethlehem offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, Karen Dolan, Robert J. Donchez, Joseph F. Leeson, Jr., Gordon B. Mowrer, and J. Michael Schweder, 6. Magdalena F. Szabo was absent, 1.

4. APPROVAL OF MINUTES

The Minutes of November 7, 2007 were approved.

5. COURTESY OF THE FLOOR (for public comment on ordinances and resolutions to be voted on by Council this evening)

None.

6. OLD BUSINESS

Certificate of Appropriateness – Streetscape Master Plan

Mr. Donchez, affirming he was unable to attend the last City Council Meeting because he had to be in Harrisburg, explained if present he would have voted yes on the Certificate of Appropriateness for the Streetscape Master Plan. Mr. Donchez confirmed that he sent a memorandum to Christopher Spadoni, City Council Solicitor, asking the process to bring the Resolution, that had failed by a tie vote at the November 7, 2007 City Council Meeting, before City Council for another vote.

President Schweder advised he was informed by Attorney Spadoni that only those Members of Council who voted on the prevailing side can ask for a reconsideration of the question. As a result, Mr. Donchez would not be able to move to reconsider the Resolution because he was absent. President Schweder stated that Mrs. Belinski or Mr. Leeson, who voted no on the Resolution, could bring the matter back before Council this evening under Resolutions.

Mrs. Belinski, noting she received several telephone calls, explained the bottom line is money. She continued on to say that, most of the time when the City initiates a request for grant funds, the City must supply matching funds. Mrs. Belinski, while expressing her agreement that it is a beautiful plan and she is in favor of it, asserted the City is in dire straits financially at this point and it is not a good time to initiate the plan. Mrs. Belinski added that she thought more time is needed to study the matter.

In response to Mr. Mowrer, President Schweder confirmed that the decision does not have to be made this year.

7. COMMUNICATIONS

A. Assistant City Solicitor – Records Destruction Resolution – Office of the Solicitor

The Clerk read a memorandum dated November 16, 2007 from Timothy P. Brennan, Esq., Assistant City Solicitor, requesting a resolution for the destruction of records from the Office of the City Solicitor. The Law Bureau reviewed the Municipal Records Retention Act and the records fall within categories where destruction is permitted.

President Schweder stated that the Resolution will be placed on the December 4 Agenda.

B. Martin Tower – Tax Increment Financing

The Clerk read a letter dated November 16, 2007 from John F. Lushis, Jr., Solicitor for Lehigh County Industrial Development Authority, requesting that, pursuant to the provisions of the Pennsylvania Tax Increment Financing Act (TIF Act), with regard to the Martin Tower Tax Increment Financing Project City Council fulfill its obligation under the TIF Act to designate a representative to sit on a "TIF Committee" that is being formed with representatives of the Bethlehem Area School District and Lehigh County.

President Schweder stated that he will recognize Attorney John Lushis, Jr., Solicitor for the Lehigh County Industrial Development Authority, under the second Courtesy of the Floor.

8. REPORTS

A. President of Council

President Schweder stated that City Council will meet as a Committee of the Whole on Tuesday, November 27 at 6:00 PM in Town Hall to conduct the Five Year Capital Plan Review.

President Schweder stated that City Council will conduct the Second Budget Hearing on Tuesday, November 27 at 7:00 PM in Town Hall.

B. Mayor

1. Administrative Order – Steven L. Glickman – Fine Arts Commission

Mayor Callahan reappointed Steven L. Glickman to membership on the Fine Arts Commission, effective until November 2010. Mr. Leeson and Mrs. Belinski sponsored Resolution 15,205 to confirm the appointment.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mower, and Mr. Schweder, 6. The Resolution passed.

2. Administrative Order – Joseph E. Long – Bethlehem Housing Authority

Mayor Callahan reappointed Joseph E. Long to membership on the Bethlehem Housing Authority, effective until November 2012. Mr. Leeson and Mrs. Belinski sponsored Resolution 15,206 to confirm the appointment.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, and Mr. Mower, 5. Voting NAY: Mr. Schweder, 1. The Resolution passed.

C. Human Resources and Environment Committee

Ms. Dolan, Chairwoman of the Human Resources and Environment Committee, presented an oral report of the Committee's meeting held on November 14, 2007 on the following subjects: Proposed 2008 Budget – Personnel Changes.

D. Finance Committee

Mr. Leeson, Chairman of the Finance Committee, presented an oral report of the Committee's meeting held on November 20, 2007 on the following subjects: Recycling Fee Increase – Residential; Transfer of Funds for: Mechanical Bureau - Overtime, Golf Course - Temporary Help and Overtime, Police Department – Overtime, Police Contract Salaries and Records Room Salaries, 911 Overtime, Water General – Professional Services, Wastewater Treatment – Overtime, and Sewer Maintenance – Overtime; Amending Liquid Fuels Fund Budget – Road Maintenance; Hiring Maher Duessel Auditors – 2007 Audit; Treasurer’s Escrow Account – Temporary Borrowing; Host Fee Revenue – Designation; and Update on Deficit.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 33 – 2007 – Amending General Fund Budget – Police Department – Roster Duty

The Clerk read Bill No. 33 – 2007 – Amending General Fund Budget – Police Department – Roster Duty, on Final Reading.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mower, and Mr. Schweder, 6. Bill No. 33 – 2007, hereafter to be known as Ordinance 4452, was declared adopted.

B. Bill No. 34 – 2007 – Amending Non-Utility Capital Budget – CED – OEA Grant

The Clerk read Bill No. 34 – 2007 – Amending Non-Utility Capital Budget – CED – OEA Grant, on Final Reading.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mower, and Mr. Schweder, 6. Bill No. 34 – 2007, hereafter to be known as Ordinance 4453, was declared adopted.

10. NEW ORDINANCES

A. Bill No. 35 – 2007 – Adopting the 2008 General Fund Budget

The Clerk read Bill No. 35 – 2007 – Adopting the 2008 General Fund Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE GENERAL FUND BUDGET FOR 2008.

B. Bill No. 36 – 2007 – Adopting the 2008 Water Fund Budget

The Clerk read Bill No. 36 – 2007 – Adopting the 2008 Water Fund Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE WATER FUND BUDGET FOR 2008.

C. Bill No. 37 – 2007 – Adopting the 2008 Sewer Fund Budget

The Clerk read Bill No. 37 – 2007 – Adopting the 2008 Sewer Fund Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE SEWER FUND BUDGET FOR 2008.

D. Bill No. 38 - 2007 – Adopting the 2008 Golf Course Enterprise Fund Budget

The Clerk read Bill No. 38 – 2007 – Adopting the 2008 Golf Course Enterprise Fund Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE GOLF COURSE ENTERPRISE FUND BUDGET
FOR 2008.

E. Bill No. 39 – 2007 – Adopting the 2008 Liquid Fuels Fund Budget

The Clerk read Bill No. 39 – 2007 – Adopting the 2008 Liquid Fuels Fund Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE LIQUID FUELS FUND BUDGET FOR 2008.

F. Bill No. 40 – 2007 – Adopting the 2008 Community Development Budget

The Clerk read Bill No. 40 – 2007 – Adopting the 2008 Community Development Budget, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE COMMUNITY DEVELOPMENT BUDGET FOR
2008.

G. Bill No. 41 – 2007 – Adopting the 9-1-1 Fund Budget for 2008

The Clerk read Bill No. 41 – 2007 – Adopting the 9-1-1 Fund Budget for 2008, sponsored by Mr. Leeson and Mr. Mowrer, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE 9-1-1 FUND BUDGET FOR 2008.

H. Bill No. 42 – 2007 – Adopting the 2008 Capital Budget for Non-Utilities

The Clerk read Bill No. 42 – 2007 – Adopting the 2008 Capital Budget for Non-Utilities, sponsored by Mr. Leeson and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE 2008 CAPITAL BUDGET FOR NON-UTILITIES.

I. Bill No. 43 – 2007 – Adopting the 2008 Capital Budget for Water Utilities

The Clerk read Bill No. 43 – 2007 – Adopting the 2008 Capital Budget for Water Utilities, sponsored by Mr. Leeson and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE 2008 CAPITAL BUDGET FOR WATER UTILITIES.

J. Bill No. 44 – 2007 – Adopting the 2008 Capital Budget for Sewer Utilities

The Clerk read Bill No. 44 – 2007 – Adopting the 2008 Capital Budget for Sewer Utilities, sponsored by Mr. Leeson and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, ADOPTING
THE 2008 CAPITAL BUDGET FOR SEWER
UTILITIES.

K. Bill No. 45 – 2007 – Fixing the 2008 Tax Rate for All City Purposes

The Clerk read Bill No. 45 – 2007 – Fixing the 2008 Tax Rate for All City Purposes, sponsored by Mr. Leeson and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, FIXING
THE TAX RATE FOR ALL CITY PURPOSES
FOR THE YEAR 2008.

L. Bill No. 46 – 2007 – Amending Article 339 – Emergency and Local Services Tax –
Reenacting and Retitling to Local Services Tax ($12,000 Exemption)

The Clerk read Bill No. 46 – 2007 – Amending Article 339 – Emergency and Local Services Tax, sponsored by Mr. Leeson and Mrs. Belinski, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 339 OF THE CODIFIED ORDINANCES
ENTITLED EMERGENCY AND LOCAL SERVICES TAX.

Voting AYE on Bill Nos. 35 through 46: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer and Mr. Schweder, 6. The Bills were declared passed on First Reading.

11. RESOLUTIONS

A. Approving Amendment No. 1 to Use Permit Agreement – Northeast Little League – Field Lights

Mr. Leeson and Mrs. Belinski sponsored Resolution 11 A authorizing the Mayor and Controller to execute Amendment No. 1 to the Use Permit Agreement between the City and Northeast Little League for the installation of permanent field lights at Sell Field.

Ms. Dolan, affirming that the request was reviewed at the Parks and Public Property Committee meeting on November 7, pointed out that Northeast Little League did a very good job of talking to their neighbors and explaining the plan for installing of permanent field lights, and to get unanimous support from the neighbors. Ms. Dolan added that no one discussed any issues against the proposal. Ms. Dolan, advising that City Council looks at each amendment to a Use Permit Agreement separately, explained that approval of lights on this Little League field does not mean necessarily that blanket approval would be given to any others in the future.

President Schweder stated he will be voting against the request. While expressing what was stated by Ms. Dolan is probably what would likely happen, President Schweder said what concerns him is passing legislation based on current neighbors of a facility. President Schweder highlighted the fact that there are individuals at the Meeting from another section of the City who are very much opposed to having lights placed on the baseball field in that neighborhood. He continued to comment it would be a dangerous precedent to say tonight that there is agreement with the request of one Little League in one section of Bethlehem to have field lights, and to turn around in a few months and say to another Little League organization that they would be prohibited from installing field lights. President Schweder thought that could lead to legal action for inconsistency. President Schweder, focusing on the newly created Environmental Advisory Council, pointed out that having lights on the field requires additional energy, and will create light pollution. President Schweder remarked it would set a bad precedent that could end up in a lawsuit, and would result in an inconsistency in votes.

Mr. Mowrer expressed he supports President Schweder’s comments.

Mrs. Belinski, highlighting the fact that Lehigh Little League has lights on its fields so a precedent has already been set, pointed out, however, that it was according to the location of the fields. Mrs. Belinski advised that she personally visited the Northwest Little League area and the ballfields are right next to the neighbors’ back yards versus the Northeast Little League field.

Ms. Dolan commented it is City Council’s job to make these individual decisions, and they are made based on individual circumstances. She added there is not another pending decision in front of Council in that she was led to believe the request for the Northwest Little League would not be made until the future.

Mrs. Belinski noted that Ralph Carp, Director of Parks and Public Property, is working on revising the Use Permit Agreements. She further observed that older youths from various areas are using the City’s fields.

President Schweder, confirming it is within the purview of City Council to amend any of the leases, pointed out that traditionally they have been automatically renewed for the following years. President Schweder continued on to say that, in discussions with Attorney Spadoni, it would be within the purview of Council to amend the Northwest Little League lease to remove field lights from the lease. President Schweder commented it would be his recommendation to consider doing that rather than letting the issue continue on for another year, and to bring consistency to the Little League Use Permit Agreements. President Schweder noted he does not think these are segregated issues since the matter of comparing one to another could be before Council shortly.

Mrs. Belinski inquired whether it would be proper to table the Resolution until the new Use Permit Agreements are available.

President Schweder affirmed that a tabling motion is in order.

Ms. Dolan asked if President Schweder is saying he would be in favor of amending the Northwest Little League Use Permit Agreement to prohibit putting lights on the field.

President Schweder replied that is correct.

Ms. Dolan, communicating she probably would be in favor of that as well, advised that does not change her opinion of the Northeast Little League request for field lights. She added that tabling the Resolution might be a good idea.

Mrs. Belinski advised she would like to talk to Mr. Carp regarding the status of revising the Use Permit Agreements and to see how they can be uniformly addressed in order to be fair to everyone.

Mrs. Belinski moved to table Resolution 11 A, and Ms. Dolan seconded the motion.

Voting AYE on the motion to table Resolution 11 A: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The motion passed.

Considering Resolutions As A Group

Ms. Dolan and Mr. Donchez moved that Resolutions 11 B through 11 E be considered as a group. Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The motion passed.

B. Certificate of Appropriateness – Moravian College South Campus

Mr. Leeson and Mrs. Belinski sponsored Resolution 15,207 that granted a Certificate of Appropriateness to construct a new dormitory on Moravian College's South Campus.

C. Certificate of Appropriateness – Sun Inn Courtyard

Mr. Leeson and Mrs. Belinski sponsored Resolution 15,208 that granted a Certificate of Appropriateness to construct a stage in the Sun Inn Courtyard.

D. Certificate of Appropriateness – 406 North New Street

Mr. Leeson and Mrs. Belinski sponsored Resolution 15,209 to paint the exterior of the dwelling at 406 North New Street.

E. Certificate of Appropriateness – 229 East Wall Street

Mr. Leeson and Mrs. Belinski sponsored Resolution 15,210 to replace windows at 229 East Wall Street.

Voting AYE on Resolutions 11 B through 11 E: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The Resolutions passed.

Removing Resolution 11 F from the Table - Approving Right of Way – UGI – Stefko Boulevard and Washington Avenue - Tabled at September 4, 2007 City Council Meeting

Mr. Mowrer and Mrs. Belinski moved to take Resolution 11 F, that was tabled at the
September 4, 2007 City Council Meeting, from the Table.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The motion passed.

Mr. Donchez and Mrs. Belinski sponsored Resolution 11 F to authorize the Mayor and Controller to execute an Easement between the City and UGI Corporation to install gas regulation equipment and facilities across the City’s Park at the Southwest corner of Stefko Boulevard and Washington Avenue, according to the Agreement.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The Resolution passed.

12. NEW BUSINESS

Setting Date for Adoption – 2008 Budget

Mr. Mowrer and Mr. Leeson moved to set the date for adoption of the 2008 Budget on Tuesday, December 18, 2007 at 7:30 PM in Town Hall.

Voting AYE: Mrs. Belinski, Ms. Dolan, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Mr. Schweder, 6. The motion passed.

13. COURTESY OF THE FLOOR

Proposed Tax Incremental Financing (TIF) District – Martin Tower – Eighth Avenue

Attorney John Lushis, Jr., Solicitor for the Lehigh County Industrial Development Authority, stated he is at the meeting to address the Proposed Tax Incremental Financing (TIF) Project related to the Martin Tower complex on Eighth Avenue. Attorney Lushis emphasized that his role is Solicitor to Lehigh County Industrial Development Authority, and he does not represent the owner of Martin Tower. Attorney Lushis advised that Joseph Hogan, of Mullin and Lonergan consultants, is at the meeting who is a Tax Increment Financing expert. Mr. Hogan has been involved in TIF projects throughout the Commonwealth and several in the Lehigh Valley. Attorney Lushis, affirming that Pennsylvania enacted the Tax Increment Financing Act in 1990, noted it was amended in 1992. He added that 49 States plus the District of Columbia now have TIF legislation similar to Pennsylvania’s. The impetus behind the enactment of the TIF legislation stems from the fact that over the years the Federal redevelopment dollars have diminished, and States have looked for more creative ways for financing various commercial or retail projects. Pennsylvania’s TIF Act requires that the financing be conducted either through a County Industrial Development Authority or a Redevelopment Authority. Attorney Lushis said the decision was made to have the financing in this case channeled through the Lehigh County Industrial Development Authority. The board of directors of the Lehigh County Industrial Development Authority in September authorized Attorney Lushis to be its designated representative to sit on the TIF Committee. Confirming that under the TIF Act the Authority has the legal obligation to make a formal presentation to each of the three taxing bodies, Attorney Lushis said that is why he is at the Meeting tonight. Over the last week and a half, Attorney Lushis made a presentation to the Bethlehem Area School District and to the Commissioners of Lehigh County. Attorney Lushis informed the Members he is at the Meeting tonight for the specific purpose to ask City Council to fulfill its statutory obligation under the Act to designate a representative to sit on the TIF committee. Affirming that under the Act each of the three taxing bodies has to designate a representative to the TIF committee, Attorney Lushis advised that the Bethlehem Area School District has done so as has the Commissioners of Lehigh County. Acknowledging that the TIF financing is a fairly complicated process, Attorney Lushis noted he just wants to give an overview this evening. Attorney Lushis advised that, under the TIF Act, the Lehigh County Industrial Development Authority will issue bonds, that can either be tax-exempt or taxable, and will be purchased by investors. The proceeds from the sale of the bonds will be used to defray a portion of the project costs associated with Martin Tower. Attorney Lushis noted the TIF legislation has as its basic intent to address issues associated with blighted areas, the definition of which is quite broad and covers areas where there are deteriorated buildings, and socially or economically undesirable use of land. It can also address situations where buildings have design defects, such as Martin Tower that has serious design defects including lack of a sprinkler system, and contains asbestos. Attorney Lushis notified the Members the specifics of the TIF plan is work that is delegated to the TIF committee. Once the revitalization project is completed, the additional tax revenues generated from a property for which the assessed value will be much higher will be used to pay back the payment obligations of the Industrial Development Authority. Once the bonds are paid off the tax revenues generated by the property that has been revitalized then go entirely to each of the three taxing bodies. The property that has a tax base today of a certain value after the revitalization project is completed will have a much higher assessed value or an increment in the amount of taxes generated by that property. Attorney Lushis confirmed it is not tax abatement.

President Schweder referred the matter to the Finance Committee. President Schweder clarified to Attorney Lushis that he will also refer the matter to the attorneys to confirm the designation of a representative versus determination of supportiveness before designating a representative.

James Follweiler, 2222 Main Street, questioning the role of a TIF for this type of project, recalled the proposed developer previously stated he would shoulder the cost to redevelop the entire Martin Tower site. Mr. Follweiler encouraged City Council to pay attention to the proposal, read between the lines, and ask the right questions such as what would happen if one or two of the three entities choose not to participate. Mr. Follweiler stated that distribution of all or part of the increased taxes must be defined. Further noting that the City can elect to participate or not participate in all or part of the TIF project prior to the date of Lehigh County’s public meeting, Mr. Follweiler stressed the date should not be left to pass by default. Referring to the presentation to the Bethlehem Area School District, Mr. Follweiler questioned since when do taxpayers continually finance private property investment projects. Noting the TIF proposal refers to the tower and small portions of adjacent land, Mr. Follweiler stressed that clear definitions of the boundaries should be requested since the proposal discusses the printery and annex buildings, and the power plant that will be demolished, and those figures are included in the funding. Mr. Follweiler asserted it needs to be known what percentage of taxes comes from the exact TIF district and the non-TIF zone that would generate tax revenue immediately for all three bodies. Informing the Members that in the proposal to the Bethlehem Area School District he did not see calculations on loan repayment time frames and costs, Mr. Follweiler said he assumes the TIF committee will discuss these matters. Mr. Follweiler remarked that the taxpayer will help pay the developer’s bill and their taxes will not be adjusted. Mr. Follweiler, acknowledging the quality of the work of Ashley Development’s projects, nevertheless commented the real taxpayers of the City continue to carry the burden for a successful private developer. Mr. Follweiler, while recognizing that the TIF is not a tax abatement program, said in essence it is.

Yeates Street Vicinity - Problems

James Kovacs, 716 Yeates Street, explained that he called the Police Department about the blast of loud noise that can be heard inside his house and was told there is nothing that can be done about it because the area is zoned Light Industrial. Mr. Kovacs highlighted the fact that there is an Ordinance that governs decibel levels. Mr. Kovacs, informing the Members he and his brother were told their houses are illegal because they are located in the Light Industrial District, advised the houses were there when it was Minsi Trail Farms and farmed by his grandfather before there were any industrial uses in the area. Asserting the City allows businesses to conduct things illegally, questioned how a business can be allowed to construct beyond their property line, how paper streets such as Marshall, Logan and Bryan Streets are allowed to be built on, and Union Street where there is a property built illegally and trucks block the street. Mr. Kovacs advised when the building behind his house was sold the new owner’s lights now shine into his house. Mr. Kovacs further questioned if a contractor is allowed to break off a curb to make more parking.

Bruce Kovacs, 713 Yeates Street, advised he has a list of Ordinances that are being violated, and enumerated various sections. Mr. Kovacs stated he called the Zoning Officer and the Mayor and nothing has been done about it over the past two months. Affirming that a person in the Zoning Office commented that his house is non-compliant and should not be there, Mr. Kovacs notified the Members that his house was there before roads were built there. Mr. Kovacs listed the violations including land use, noise that resembles a jumbo jet, and air pollution. He stressed the dust is intolerable, he cannot open his windows, and the electronics in his home have been destroyed. Mr. Kovacs further informed the Members there is water run-off, a 2 foot deep trench next to his garage, a 25 foot tree overhanging onto his driveway, and there are site violations. He affirmed that a curb was removed from Yeates Street, and the loading and unloading zone is not specified. Mr. Kovacs informed the Members that four people and four animals have died of cancer. Mr. Kovacs advised the DEP did air quality tests at the site and the residents are breathing 30% of a particular matter, and there is crushed stone and concrete dust. Mr. Yeates pointed out he thinks people should start doing something about these matters.

Proposed TIF District – Martin Tower – Eighth Avenue; and Casino Host Fees

Robert Pfenning, 2830 Linden Street, expressed his concern about what will happen when a sewer plant needs to be built in the future in view of $1.7 million in sewer tapping fees received by the City from the casino project, and $4 million from the Suburban Stakeholders Agreement being utilized towards the General Fund. Referring to an Express-Times article on November 13, 2007, Mr. Pfenning noted that Mr. Pektor, the developer, said the Martin Tower project cannot be done without the financing. Continuing on to point out that, according to the Ordinance, without the concurrent rehabilitation of the building the high density housing project cannot be done, Mr. Pfenning questioned whether building permits can be issued on the townhouse portion of the development when it is being said the Martin Tower project cannot be done without the TIF financing. Noting that Representative Freeman proposed to provide municipalities with tax relief if 17% or more of their assessed valuation is tax exempt, Mr. Pfenning observed Bethlehem is at 19.1%. With all the pending development, Mr. Pfenning questioned whether the City will be able to take advantage of it if the legislation should pass. Mr. Pfenning encouraged City officials to review the host fees from the Mt. Airy Lodge casino project.

President Schweder pointed out he had been assured by Tony Hanna, Director of Community and Economic Development, that no construction could start on the other phases of the Martin Tower property until the work began on the Tower since the work had to be done simultaneously.

Five Points Area Traffic Proposal – One-Way Pairs

Edwin Rodriquez, 1845 Linden Street, handed to President Schweder a petition containing about 105 signatures of individuals who are opposed to the Five Points area one-way traffic proposal. Advising he reviewed the traffic study, Mr. Rodriquez highlighted the fact that there will be decreased accessibility to businesses, and pointed out that most businesses on Broadway eastbound will suffer the most impact from the one-way traffic pattern because patrons would have to circle around in a loop. Consequently, Mr. Rodriquez asserted that customers will chose to go to another grocery store, restaurant, jeweler, pharmacy, and so on. Mr. Rodriquez recalled when the plan was initially presented in 2004 City Council asked that a better plan be developed. Mr. Rodriquez stressed that more input from the community is necessary, and the meeting should not be held at Nativity Church but possibly at Broughal School. Mr. Rodriquez explained there are pedestrian safety issues, and there will be a lot of dangerous areas for school bus loading and unloading, particularly in the area of Carlton and Montclair Avenues. In addition, Mr. Rodriquez pointed out there are physically and emotionally disabled, and blind residents in the area since Victory House and New Bethany Ministries are located there. Mr. Rodriquez remarked this should be taken into consideration by the inconsiderate people who have proposed this plan.

President Schweder asked if there are any plans to hold a public hearing.

Mayor John Callahan, responding there are, noted the Administration had attempted to get on the Agenda this evening, as well as the last City Council Meeting, to discuss the one way pair idea with the Members of Council. Mayor Callahan recounted that when the idea was previously presented there was no funding available and the project could not move forward. Mayor Callahan affirmed that now a creative public-private partnership has been forged with the City, St. Luke’s Hospital, and Sands BethWorks. Mayor Callahan observed there is the opportunity to make a presentation before City Council on December 18, 2007.

President Schweder expressed he would prefer perhaps that a public hearing could be held as opposed to a presentation to the Members of Council.

Mayor Callahan explained the goal was to get before City Council first. Mayor Callahan continued on to inform the Members that next week he will be making a presentation on the one-way pair proposal before the South Side Task Force. Mayor Callahan advised the original idea was that, in conjunction with the normal South Side vision meeting held by Reverend Atkinson at Cathedral Church of the Nativity located in the area of the one-way pair proposal, flyers would be posted in the area for the affected property owners and as public outreach for the meeting. Mayor Callahan, referring to Mr. Rodriquez’s comments, noted if Broughal School is a more suitable location then it may be able to be held there. Mayor Callahan restated the Administration will do its best to communicate the one-way pair concept to City Council and to the community so there is an understanding of it. Recalling that traffic engineers and planners were asked to take a hard look at the Five Points Corridor in 2004, Mayor Callahan affirmed everyone knows how bad the traffic is in the area. Stating that the traffic has gotten worse since the study was done, Mayor Callahan continued on to denote there has been a lot of development in the Stabler complex and within the South Side including the growth at St. Luke’s Hospital. In looking at the traffic projections from the casino project and other developments, it is a difficult situation. Mayor Callahan communicated that people tend to avoid the Five Points area now such as in the morning and afternoon peak hours. While acknowledging the one-way pair proposal is not a panacea and does not cure the traffic situation, Mayor Callahan said there are certain restraints in the corridor that must be accepted. Mayor Callahan pointed out the concept improves the level of service in all the intersections in the corridor, allows for re-introduction of street parking for businesses, will significantly enhance the aesthetics of the corridor with streetscaping, and will improve pedestrian safety.

President Schweder, highlighting the fact that the final passage of the Budget Ordinances will take place at the December 18, 2007 City Council Meeting, communicated that consideration might be able to be given to a presentation prior to the Council Meeting, or some other date as a separate meeting. President Schweder recalled that when a presentation was made several years ago people were not in favor of it, and he would like to find out if that sentiment has changed.

Various Issues

Dean Bruch, 555 Spring Street, commented that most people agree Mr. Pektor has done very good things in terms of developments in the City, and is to be commended. Mr. Bruch said he, too, would like to see something done with the Martin Tower property on Eighth Avenue. However, if the TIF plan would go through, Mr. Bruch stated he would want the assurance that he along with others are not going to be straddled with the money that is needed to pay down the financing. Mr. Bruch remarked on the unanticipated and costly problems that occur when engineering a project. Mr. Bruch stressed everybody has to have accountability and that includes Mr. Pektor. Mr. Bruch recounted his idea of using the Greenway on the South Side to bring visitors into the City and leave cars and emissions outside the City. Noting that he reviewed the proposed 2008 Budget book, Mr. Bruch said he likes the Mayor’s idea that there will not be a tax increase, but cautioned against the unknown timing of a delay in a tax increase.

Mortgage Crisis

Phil Valenti stated he is with the LaRouche Committee in Delaware County, Pennsylvania, and works with State Representative Harold James who is the sponsor of House Resolution 418 dealing with the crisis in home foreclosures and banking and financial systems. Mr. Valenti said what is being faced is a collapse in the tens of billions of dollars that was created over years by the policies of the Federal Reserve, and inflation of prices of properties, leading to a huge increase in indebtedness. Mr. Valenti added it also led to speculation internationally that is now collapsing. He remarked that large banks and hedge funds used mortgages like gambling chips, buying and selling them, taking thousands of mortgages and pooling them into mortgage-backed securities, with bonds being sold to hedge funds all over the world. Mr. Valenti expressed that Wall Street firms recruited unscrupulous brokers to sign up the biggest mortgages possible under fraudulent pretenses that would be immediately sold between banks or financial firms. These mortgage backed securities amounting to about $7 trillion is what is collapsing in a domino effect, threatening to bring down the banking system, and banks write off bad assets that could be estimated at $2-$4 trillion. Consequently, Mr. Valenti stated Federal intervention is needed to prevent the disaster of the millions of foreclosures. He enumerated cases in Pennsylvania in Lancaster and Berks Counties involving a broker who went bankrupt and had defrauded over 800 families. A class action suit started in Berks County is now in Federal court charging 24 major banks and mortgage lenders with complicity and fraud. Mr. Valenti explained what is proposed in the Resolution is a homeowner and bank protection act that would be a moratorium on foreclosures until the financial entanglement can be sorted out. Homeowners would continue to pay an affordable monthly payment and be able to stay in their homes. Protection is needed for banks, and deposits need to be protected, but with no bailout for the hedge funds. Since the Federal Reserve is trying to bail out the inflated financial securities, it is destroying the value of the dollar internationally leading to hyperinflation of prices of oil and other things. Mr. Valenti, stressing this is a major crisis for the nation, asked for Council’s support for House Resolution 418 that calls on Congress to take those steps. There will be a hearing in Harrisburg on November 29, 2007 and as much support as possible from local elected officials is requested. Mr. Valenti noted that the City Councils in New Castle, Johnstown, and Elwood City have passed Resolutions of support. Mr. Valenti, observing the practice in the City of Bethlehem is to write a letter, advised that would be beneficial.

President Schweder, affirming the tradition of the Bethlehem City Council is not to pass Resolutions requesting the State legislature to do something, noted a letter could be drafted, and it is an individual decision of each Member of Council whether to sign.

Rare Bethlehem Steel Corporation Trucks

John Ladics, Kaywin Avenue, recalled when he was a Bethlehem Police Officer he had been working with hit and run and abandoned vehicles. A representative of the former Bethlehem Steel Corporation asked that two trucks belonging to the company be removed as abandoned vehicles. The vehicles were moved and remain at the Grants salvage yard in Coopersburg. Mr. Ladics, advising the trucks that are in good condition are vintage and rare Bethlehem Steel Corporation trucks with the I-beam logo, stated perhaps they could be restored and placed in the steel museum or possibly at Sands Beth-Works casino. Mr. Ladics asked if thought could be given to do so.

Five Points Area Traffic Proposal – One-Way Pairs

William Scheirer, 1890 Eaton Avenue, noted he attended the past public hearing on the one-way pairs proposal and people were not in favor of it. Mr. Scheirer, recalling that people were focused on the necessity of driving around to reach the businesses, observed the other perspective is there would hopefully be less congestion. Mr. Scheirer thought it might help to clarify the issue if the consultants could calculate estimates using representative businesses of the added time to reach the businesses and the time savings because of reduced congestion.

Proposed Tax Incremental Financing (TIF) District – Martin Tower – Eighth Avenue

Stephen Antalics, 737 Ridge Street, stated he attended the Bethlehem Area School District meeting on the TIF plan for Martin Tower, and acknowledged the developer has done much for the City. However, Mr. Antalics stressed the question becomes where is the burden of proof. Mr. Antalics read from the State’s TIF program, and added that the TIF is a tool to use future gains in taxes to finance the current improvements that will create those gains. He continued on to say there is an increase in the value of the surrounding real estate, and the TIF channels funding towards improvements in areas where development would not otherwise occur, and creates funding for public projects such as sewer, curbs, sidewalks, storm drainage, and so on. Mr. Antalics asserted that too often cities use the TIF to underwrite projects in affluent areas and subsidize construction on undeveloped lands for large projects which is the exact opposite of the original purpose of the TIF. While agreeing he would like to see Martin Tower developed, Mr. Antalics questioned whether the developer or the community should bear the responsibility of the cost. He observed that the plans are for high-end luxury apartments rather than low-income apartments, and stressed that the interests of the citizens of Bethlehem should be taken into account.

Dana Grubb, 2420 Henderson Place, recalled that in 1999 there were negotiations with Bethlehem Steel Corporation on the TIF district for the BethWorks site where roadways and public utilities were installed. Mullin and Lonergan were the City’s consultants for that TIF district and are now the consultants for the Martin Tower TIF district. Mr. Grubb communicated that, as was referenced by the previous speaker, if it were an affordable, working-class housing development it would have a greater impact on whether the TIF should move forward. Mr. Grubb asserted that asbestos remediation, sprinkler systems, windows and so on are not public improvements. Mr. Grubb stressed that, contrary to what was stated in a newspaper article, this is not a taxpayers problem and rather is a private developer’s issue that seems to be driven by a downturn in this type of housing. Mr. Grubb stated perhaps the project should proceed more slowly if that is what market conditions dictate. Mr. Grubb further recounted that the BethWorks TIF loan was used as a guarantee for a HUD Section 108 Loan that was taken through the City’s Redevelopment Authority in order to build the public infrastructure improvements. In addition, the BethWorks site was a Brownfield versus the Martin Tower site that is not. Mr. Grubb observed that any resident of Bethlehem driving past the Martin Tower site would be hard-pressed to be convinced it is a slum and blighted area. Mr. Grubb thought the worst-case scenario is that the development could be delayed until the market rebounds, and taxes continue to be collected at the current rate. After the improvements, the full amount of taxes could be paid to the taxing entities that Mr. Grubb said would be a winning proposition for taxpayers instead of repaying borrowed debt. Advising he heard from many taxpayers last week about the TIF proposal for Martin Tower, Mr. Grubb stated he did not hear one positive comment. He continued on to say people are looking at the proposal as a public subsidy for private development, and they are unconvinced that this funding mechanism is necessary for a project at this location. Mr. Grubb stressed that a lot of hard questions need to be asked, and a lot of financial statements need to be examined before advancing the proposal.

Five Points Area Traffic Proposal – One-Way Pairs; and Proposed TIF District – Martin Tower – Eighth Avenue

Mary Pongracz, 321 West Fourth Street, saying Mr. Rodriquez is right, pointed out she can go to Ahart’s food market that is two blocks from her home versus 11 blocks under the one-way pair proposal. Ms. Pongracz, stressing that one-way traffic in the area where she lives would be a total disaster, questioned why planners do not deal in the world of reality. Turning to the proposed project at Martin Tower, Ms. Pongracz pointed out that the Bethlehem Area School District is already under financial burdens. She asked why an additional school should have to be built in another area for the Martin Tower project when schools are not being built in areas where they are now needed. Ms. Pongracz stressed that elementary schools such as Donegan and Fountain Hill schools each have over 700 students. Highlighting the fact that if she wanted to build a house she will pay for it, and she does not ask the City to pay for it, Ms. Pongracz stressed if a developer wants to build a project then they should pay for it because that is their responsibility, not the taxpayers. Expressing she does not doubt it is a wonderful project, Ms. Pongracz asserted that the citizens of Bethlehem do not need to be burdened any more than they are already.

14. ADJOURNMENT

The meeting was adjourned at 9:10 p.m.