Council MInutes

March 2, 2010

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

President Donchez called the meeting to order. Pastor Boddan Jurczyszyn, of Our Lord’s Ascension Polish National Catholic Church, offered the invocation which was followed by the pledge to the flag. Present were Jean Belinski, David T. DiGiacinto, Karen Dolan, Eric R. Evans, Gordon B. Mowrer, J. William Reynolds, and Robert J. Donchez, 7.

4. APPROVAL OF MINUTES

The Minutes of February 16, 2010 were approved.

5. COURTESY OF THE FLOOR (for public comment on Ordinances and Resolutions to be voted on by Council this evening – 5 Minute Time Limit)

Completion of Bethlehem Sands Project

Robert Pfenning, 2830 Linden Street, stated that his comments in no way are critical of the Las Vegas Sand Corporation or the local Sands corporation and the carrying out of their local citizenship in which they have done an excellent job, and said he does not want his remarks to be misconstrued. Mr. Pfenning held up flyers from 2005-2006 about what was going to happen at the BethWorks site to save the City’s industrial heritage and regarding the casino project. Recalling there was a newspaper story this past weekend concerning the taking over of the Sands casino in Bethlehem, Mr. Pfenning asserted that the City has absolutely no power in the matter because it is a State Gaming Control Board matter. Mr. Pfenning noted that the Mayor made an impassioned plea to the Gaming Board at the hearing on renewal of the Sands casino license concerning the fact that the remainder of the project including a hotel, retail, and conference center are not yet completed. Referring to an enforcement of condition 51 of the license about the things that the Sands promised to do at the site, specifically the hotel, etc., Mr. Pfenning said only the Gaming Board can enforce that. Mr. Pfenning, observing that Resolution 11 F is addressed to the Sands not the Gaming Control Board, stated that the Gaming Board is the only body that can enforce anything. Mr. Pfenning thought that City Council should be backing up the Mayor 100% in requesting that the Gaming Control Board enforce condition 51 and, in the event there is another licensee is approved, that something very similar to condition 51 appears in that company’s license agreement. Mr. Pfenning commented he is disappointed with the Resolution that he felt was not strong enough.

Dana Grubb, 2420 Henderson Place, stated he seconds everything Mr. Pfenning said, and thought City Council needs to take a very firm approach with this matter. Pointing out there were a lot of commitments made throughout the process, Mr. Grubb commented that Council’s responsibility is to the community, not to the Sands. Mr. Grubb thought the Resolution should be directed to the Pennsylvania Gaming Control Board, and Council’s firm position should be that the project should be completed. Mr. Grubb did not think the renewal of the Sands casino license should be predicated on completing the project at this point, but reiterated that a very strong message needs to be sent because the project in its entirety is what City Council, the Administration, and many citizens bought into.

Completion of Bethlehem Sands Project; Cell Towers

Bill Scheirer, 1890 Eaton Avenue, seconded the remarks made about completion of the Bethlehem Sands project. Mr. Scheirer asked how many cell towers are in the City in service, under construction, and/or approved. Ralph Carp, Director of Parks and Public Property, replied six or seven.

Completion of Bethlehem Sands Project

Eddie Rodriquez, 1845 Linden Street, observed that the Sands is constructing a casino elsewhere and questioned why not complete the project that was started in Bethlehem. Mr. Rodriquez thought that Council should look at this matter with the Gaming Board. Mr. Rodriquez, commenting that people do not want the Sands to move out of the City, remarked give them the time they need to complete the project. In response to Mr. Rodriquez, President Donchez informed him that the genesis of the story in the Express-Times was a corporate source.

Mary Pongracz, 321 W. Fourth Street, commented she finds it most uncharitable to expect everything to proceed as planned for the Sands project. Ms. Pongracz enumerated that the Sands hired 800-1,000 employees, developed, built, helped with the roadways and in many other ways, and has been a good neighbor. Ms. Pongracz said the fact that there is a Resolution to ask the Sands to complete their project is in line in that it is a statement that Council is aware that the Sands has not done what they said they would do. Ms. Pongracz observed that the Sands has said they will do it and will be starting shortly. Applauding City Council’s initiative in sending a notice to the Las Vegas Sands that the Members of Council would like the project done as promised, Ms. Pongracz said if the Sands does not do that then people can get mad.

6. OLD BUSINESS.

A. Tabled Items

None.

B. Unfinished Business

1. Establishing Article 1716 – Landmarks and Properties of Historical Interest
(Assigned to Preservation Plan Task Force)

C. Old Business – Members of Council

Letter to Controller and Auditor – Casino Host Fee and Treasurer’s Escrow Account

Mr. DiGiacinto, focusing on the draft letter to the Controller and Auditor prepared by Christopher Spadoni, City Council Solicitor, regarding Option 2 listed in Attorney Spadoni’s January 15, 2010 memorandum that was forwarded to the Members of Council, stated he proposes one change that is to add the following paragraph: Please accept this correspondence that Bethlehem City Council requests your [Controller’s] attendance at the next Finance Committee Meeting to address governance, review, and oversight by the City Controller's Office.

President Donchez, upon hearing no objections from the Members of Council, stated that the paragraph will be added and the letter will be sent.

7. COMMUNICATIONS

A. Council Solicitor – Sands Casino Bethlehem Development Resolution – Completion of the Project

The Clerk read a memorandum dated February 24, 2010 from Christopher T. Spadoni, City Council Solicitor, to which was attached a proposed Resolution that requested Bethlehem Sands to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, and to provide City Council with quarterly updates as to when the project will be completed.

President Donchez highlighted the fact that he had asked Attorney Spadoni to draft the Resolution two weeks ago prior to the articles in last weekend’s newspaper.

President Donchez noted that Resolution 11 F is listed on the Agenda.

B. City Solicitor – Records Destruction Resolution – Purchasing Bureau

The Clerk read a memorandum dated February 24, 2010 from John F. Spirk, Jr., Esq., City Solicitor, requesting a Resolution for the destruction of records from the Purchasing Bureau. The Law Bureau reviewed the Municipal Records Retention Act and the records fall within categories where destruction is permitted.

Ms. Dolan mentioned it is ensured that all important information is backed up before any paper records are destroyed.

President Donchez stated that the Resolution will be placed on the March 16, 2010 Council Agenda.

C. City Solicitor – Deed with Commonwealth of Pennsylvania Department of Transportation – Hellertown Road near Millside Drive

The Clerk read a memorandum dated February 25, 2010 from John F. Spirk, Jr., Esq., City Solicitor, to which was attached a proposed resolution authorizing the execution of a Deed with the Commonwealth of Pennsylvania Department of Transportation to grant and convey a portion of City owned property, approximately 0.165 acres, to the Commonwealth for right-of-way required by the Commonwealth along Hellertown Road near Millside Drive. This is part of the overall Route 412 project and PennDOT would like to have this right-of-way in place so that they are in a position to let this portion of the road improvement project this year.

President Donchez stated that the authorizing Resolution is listed on this evening’s agenda.

8. REPORTS

A. President of Council

B. Mayor

C. Parks and Public Property Committee Meeting

Chairman Evans presented an oral report of the Committee’s meeting held at 5:30 PM on March 2, 2010 prior to the City Council Meeting on the following subjects: Site Agreement – TowerOne Bethlehem 001, LLC – North Central Fire Station; and Use Permit Agreement for Public Property – Star of Bethlehem Festival – Riverside Wine Festival.

9. ORDINANCES FOR FINAL PASSAGE

None.

10. NEW ORDINANCES

A. Bill No. 3 - 2010 – Amending Article 1701 – Adopting 2009 Pennsylvania Uniform Construction Code (PA UCC)

The Clerk read Bill No. 3 - 2010, Amending Article 1701 – Adopting 2009 Pennsylvania Uniform Construction Code, sponsored by Mr. DiGiacinto and Mr. Reynolds, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 1701 OF THE CODIFIED ORDINANCES
ENTITLED PENNSYLVANIA UNIFORM CONSTRUCTION
CODE, BY ADOPTING THE 2009 PENNSYLVANIA
UNIFORM CONSTRUCTION CODE REVISIONS

Ms. Dolan queried whether this is required to come into compliance with current State regulations. Craig Hynes, Chief Building Inspector, replied that is correct.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 3 – 2010 was declared passed on First Reading.

B. Bill No. 4 - 2010 – Amending Article 1702 – Revising Fees for the Enforcement of the Pennsylvania Uniform Construction Code

The Clerk read Bill No. 4 – 2010, Amending Article 1702 – Revising Fees for the Enforcement of the Pennsylvania Uniform Construction Code, sponsored by Mr. DiGiacinto and Mr. Reynolds, and titled:

AN ORDINANCE OF THE CITY OF BETHLEHEM,
COUNTIES OF LEHIGH AND NORTHAMPTON,
COMMONWEALTH OF PENNSYLVANIA, AMENDING
ARTICLE 1702 OF THE CODIFIED ORDINANCES
ENTITLED FEES FOR THE ENFORCEMENT OF THE
PENNSYLVANIA UNIFORM CONSTRUCTION CODE,
ACT NO. 45-1999

Ms. Dolan asked if this also is to come into compliance with current State fees. Mr. Hynes responded no. Mr. Hynes explained the State does not have any required fees, and it is up to the municipality to assess fees for the enforcement of the Uniform Construction Code. Ms. Dolan, inquiring whether the City’s fees were compared with those of other Third Class Cities, questioned how the determination was made. Mr. Hynes advised that no studies were done by the Code Enforcement Bureau, but the Fire Department conducted a study to determine their fees. Mr. Hynes, noting that the fee changes for the Code Enforcement Bureau are rather minor, continued on to explain the Bureau tried to make consistent the fees for plumbing, mechanical, and electrical codes that had been slightly different previously. Because the State adds a fee for training and education, the Bureau consolidated the fee into one section of the Ordinance so that if the State changes the fee then the City has to make the change in only one section rather than in multiple sections of the Ordinance as had been included in the past. The fee for minor electrical work was reduced. Ms. Dolan, explaining she had been told that Bethlehem’s fees are relatively low compared to townships and the other two cities, wondered whether Bethlehem is obtaining sufficient fee income. Mr. Hynes answered that it is a very efficient Department, and added there is a State law that the Code Enforcement Bureau is not allowed to make money. Every year the Bureau reviews fee revenue and the cost of running the Bureau. When the State Code was adopted, one of the largest complaints was from the Pennsylvania Builders Association about fees and the State at one point was going to adopt language to require a certain maximum for fees but that legislation did not pass. Mr. Hynes added that the Department is totally funded every year. Ms. Dolan questioned why the City cannot make a profit from building fees. Tony Hanna, Director of Community and Economic Development, noted that rationale could be provided. Mr. Hanna added that a suit was brought by a builder against Wilson Borough on excessive charges for roof permits, and commented that a number of municipalities have been put on notice by that decision. President Donchez asked that the information be provided.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. Bill No. 4 – 2010 was declared passed on First Reading.

11. RESOLUTIONS

A. Authorizing Redevelopment Capital Assistance Grant – Historic Bethlehem Partnership – Colonial Industrial Quarter

Mr. Evans and Mr. Mowrer sponsored Resolution No. 2010-24 authorizing the execution of documents necessary to transfer that portion of Redevelopment Assistance Capital (RACP) Grant funds originally designated for the Moravian Museum of Bethlehem, Inc.’s “Moravian Museum Expansion” project to the Historic Bethlehem, Inc. for the “Colonial Industrial Quarter – Renovations to Various Sites” project, as requested by Historic Bethlehem Partnership.

Mr. DiGiacinto, affirming that this was a previously approved grant, asked whether the bills have to be paid first for reimbursement later.

Mr. Hanna replied that Redevelopment Assistance Capital grants are all reimbursable, the money has to be paid up front, the matching requirement established, and then the Commonwealth of Pennsylvania will reimburse the expenditure. In further response to Mr. DiGiacinto, Mr. Hanna said the organization has been getting reimbursements all along for the ongoing series of projects.

Ms. Dolan asked if the City is using this partnership to help the City obtain partnership type grants.

Mr. Hanna responded that the City utilizes the precedent set in terms of its relationships. Mr. Hanna explained that the work done in Historic Bethlehem would go a long way to establishing the relationship, and all of the properties in the Colonial Industrial Quarter are owned by the City and leased to Historic Bethlehem so the organization is doing this on the City’s behalf.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolution passed.

B. Authorizing Redevelopment Capital Assistance Grant – Historic Bethlehem Partnership – Kemerer Museum of Decorative Arts

Mr. Evans and Mr. DiGiacinto sponsored Resolution No. 2010-25 authorizing the execution of documents necessary to transfer that portion of Redevelopment Assistance Capital (RACP) Grant funds originally designated for Historic Bethlehem Partnership’s “Collections Resource Center” project to the Kemerer Museum of Decorative Arts for the “Kemerer Museum – Expansion” project, as requested by Historic Bethlehem Partnership.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolution passed.

C. Authorizing Site Agreement – TowerOne Bethlehem 001, LLC – North Central Fire Station

Mr. Evans and Mr. Mowrer sponsored Resolution No. 2010-26 that authorized the execution of a Site Agreement between the City and TowerOne Bethlehem 001, LLC for the purpose of erecting and maintaining improvements, personal property and facilities necessary to operate a cellular communications system to be located at the North Central Fire Station on Dewberry Avenue (Tax Parcel No. N6-9-5 – High Street).

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolution passed.

D. Authorizing Use Permit Agreement for Public Property – Star of Bethlehem Festival – Riverside Wine Festival – Sand Island

Mr. Evans and Mr. DiGiacinto sponsored Resolution No. 2010-27 that authorized the execution of a Use Permit Agreement between the City of Bethlehem and Star of Bethlehem Festival for use of Sand Island west of the railroad overpass; parking lot property west of the Ice House Building; and macadam property on the southwest corner of West Lehigh Street and Main Street, for the Riverside Wine Festival for the time period May 20, 2010 to May 25, 2010, according to the terms of the agreement.

Ms. Dolan asked for a recap of this matter that was reviewed at the Parks and Public Property Committee meeting held prior to the City Council Meeting.

Chairman Evans advised that the Star of Bethlehem is a new group, the festival will be two days on Saturday, May 22 and Sunday, May 23, the day before and after will be for set up and take down. The plan is to have a small festival for the first year, the entrance fee will be $15-$20, the group has the required insurance, there are presently 6-7 local wine vendors and there will be food vendors, and the hours will be 12:00 PM to 5:00 PM.

Mr. Reynolds added that the Committee asked numerous questions, and Police Officers were at the meeting who explained they have worked with the group regarding various matters. Mr. Reynolds further advised that Chairman Evans asked about following the guidelines for recycling, and so on.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolution passed.

E. Authorizing Deed – Commonwealth of Pennsylvania Department of Transportation – Hellertown Road near Millside Drive

Mr. Mowrer and Mr. Reynolds sponsored Resolution No. 2010-28 that authorized the execution of a Deed with the Pennsylvania Department of Transportation (PennDOT) for the purpose of granting and conveying approximately 0.165 acres to PennDOT for right-of-way required along a portion of property of the City of Bethlehem located along Hellertown Road near Millside Drive, in accordance with the terms of the Deed.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Evans, Mr. Mowrer, Mr. Reynolds, and Mr. Donchez, 7. The Resolution passed.
F. Requesting Completion of Bethlehem Sands Project

Mr. Reynolds and Mrs. Belinski sponsored Resolution 11 F requesting Bethlehem Sands to complete the entire approved plan including, but not limited to, completion of the mall, convention space, and hotel, to be located at the BethWorks site of the Casino built on the South Side near the Minsi Trail Bridge, and to provide City Council with quarterly updates as to when the project will be completed.

President Donchez noted that he had asked Christopher Spadoni, City Council Solicitor, to draft a Resolution with certain parameters. President Donchez stated that Mr. DiGiacinto will propose two amendments. In addition, President Donchez advised that he made some editorial changes to the original Resolution and that is what is before the Members of Council this evening.

Mr. Mowrer said he does not think it is necessary to vote on the Resolution since it appears that the Sands is planning to do the kind of things they said they were, and to hound them does not seem appropriate.

Mr. Mowrer moved to remove the Resolution from the Agenda. Mrs. Belinski seconded the motion.

President Donchez inquired whether Mr. Mowrer wanted to remove the Resolution from the Agenda or to Table the Resolution so that it could be considered again in several months.

Mr. Mowrer stated he would be willing to go along with Tabling the Resolution but at this point he does not want to vote on the Resolution tonight. Mr. Mowrer added that as long as the company is moving in good faith he would like to support them.

Motion – Tabling Resolution 11 F - Fails

Mr. Mowrer moved to Table the Resolution. Mrs. Belinski seconded the motion.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, and Mr. Mowrer, 3. Voting NAY: Ms. Dolan, Mr. Evans, Mr. Reynolds, and Mr. Donchez, 4. The motion to Table Resolution 11 G failed.

Motion – Removing Resolution 11 F - Fails

Mr. Mowrer moved to remove the Resolution from the Agenda. Mrs. Belinski seconded the motion.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, and Mr. Mowrer, 3. Voting NAY: Ms. Dolan, Mr. Evans, Mr. Reynolds, and Mr. Donchez, 4. The motion to remove Resolution 11 G from the Agenda failed.

Mr. Reynolds commented that if the Resolution is passed the Gaming Control Board should get a copy. Referring to the Gaming Control Board hearing on February 3, 2010 on renewal of the Sands Casino license, Mr. Reynolds noted that Mayor Callahan attended, and that President Donchez submitted comments in support of the license renewal. While acknowledging there is support for the Sands Casino license renewal, Mr. Reynolds pointed out that at the same time there is concern about the conditions. Focusing on comments that the Resolution might not be as strong as it can be, Mr. Reynolds pointed out that the City cannot demand that the Sands do anything, but the City can be heard before the Gaming Control Board and the feelings can be made known to the Board. Highlighting the fact that the Sands has had a good relationship with the City and has been a good corporate citizen, Mr. Reynolds thought the Resolution makes Council’s wishes known and acknowledged that Council cannot tell them what to do. Mr. Reynolds, referring to the press release yesterday in which the Sands indicated that the hotel project will start in the coming weeks, thought that Council should keep an eye on whether the Sands will keep their word. In view of economic difficulties, Mr. Reynolds communicated his understanding of why the hotel and the other development that the Sands had hoped to originally complete has not yet been completed. Mr. Reynolds said he will be voting for the Resolution tonight because he feels that Council deserves to be heard, although Council cannot demand that the Sands do anything, and it shows the support that Council has and the appreciation for what the Sands has done while including language requesting that the project be completed. Mr. Reynolds thought that Council should come back in the near future if it is felt that the Sands is not making progress.

Mr. Evans stated that he will support the Resolution. Referring to the newspaper article that appeared on Saturday, Mr. Evans advised he re-read the Resolution that was in the Agenda packet distributed Friday, and tried to remain objective. Mr. Evans commented that he had a level of comfort in reading the press release from the Sands on Monday. Mr. Evans communicated that he felt that the Resolution is appropriate, he felt confident in the Sands, he hopes they will be able to finish the project, and thought the Resolution sends the right message.

Ms. Dolan thought that the Resolution speaks the truth about what most of the Members are feeling in Bethlehem, that the Members want the Sands to follow through on their promises, and it makes Council’s hopes and opinions clear. Ms. Dolan observed it also straddles a very thin line in that Council does not want to cause offense to the Sands as an excellent community partner. Ms. Dolan credited President Donchez for the Resolution.

Mr. Mowrer said he will vote against the Resolution because he thinks under the circumstances that Council needs to stay out of the matter because the Sands is already committed to doing what they said they were going to do. Mr. Mowrer stressed that the Sands is in business to make money and when they do not make money they cannot afford to do certain things but at this point it looks like they are going to try to complete the hotel. Mr. Mowrer added that if they are not making money they may not do the retail regardless of the strength of Council’s demands.

Mr. DiGiacinto commented that, while being a proponent of a Council Resolution to reinforce the thought that the City wants to have this casino project continued and finished, stated he did not think the Resolution was strong enough. Mr. DiGiacinto affirmed he did not think that words like desirous and request related strongly enough the feeling about getting the project finished. Mr. DiGiacinto stated he would like to propose an amendment, but would like to make further comments. Regarding the newspaper articles over the weekend and the Sands press release yesterday, Mr. DiGiacinto related his understanding of how press releases are written with very strong legal review. However, Mr. DiGiacinto said he has still not interpreted the commitment to continue the project as a solid one by the corporation. Mr. DiGiacinto observed the Sands needs to move forward to simply continue operations, or to continue operations and build, or continue operations and start to build and perhaps auction off the buildings or portions of the business, or solicit inquiries. Mr. DiGiacinto stated that the Sands needs its license renewed and it needs gaming tables because that is how they make their money and increase their valuation regardless of whether or not they stay here. Mr. DiGiacinto observed that if the Members are confident in what they read yesterday that the Sands is going to renew their commitment and build, then a Resolution is not needed. However, Mr. DiGiacinto said he has not gotten that feeling. Mr. DiGiacinto, turning to the 2010 Budget Hearings, recalled that during the review of the General Fund there was a discussion on what the Sands would need to do to continue forward or perhaps look for a suitor. Mr. DiGiacinto recounted he had said it would not be such a bad idea if another company came in and continued the project. Mr. DiGiacinto enumerated the various comments made in several news releases, as follows: in a news release from June 2009 the Las Vegas Sands referenced the slot machines, a 300 room hotel, and 200,000 sq. ft. of shopping space; in a February 4, 2010 Express-Times article CEO Sheldon Adelson is quoted as saying if the State legalized table games, he would build a major resort in Bethlehem, including a 1,000 room hotel; in a February 27, 2010 Express-Times article it was reported that Las Vegas Sands Corporation is seeking to sell its Bethlehem casino, according to a person with direct knowledge of high-level discussions; the March 1, 2010 Las Vegas Sands news release stated that recent rumors of the company’s supposed interest in selling its Sands Casino Resort in Bethlehem, or indefinitely delaying the completion of the hotel and other components of the development are unfounded, and that the company has already mobilized its development team and could restart construction on the 300 room hotel within the next several weeks. Adelson said “we are looking forward to reviewing our table games application with the Gaming Control Board, and at the same time we have undertaken efforts which will result in construction resuming on the hotel portion in the very near future.” He also said the company would assess restarting construction on the remaining aspects of the development including the retail space and multi-purpose facilities while it prepares for table games and the resumption of construction on the hotel tower. Agreeing it is a business to make money, Mr. DiGiacinto stated it is a business that means a lot to the City, and it means a lot that the Sands or someone finishes the project. Mr. DiGiacinto expressed the belief that the Gaming Control Board should see something from City Council that is a little stronger than what was written.

Amendment 1 to Resolution 11 G

Mr. DiGiacinto moved the following amendment, and Mrs. Belinski seconded the amendment.

That the Fifth paragraph which reads as follows:

WHEREAS, the City Council of Bethlehem is [desirous] of Bethlehem Sands completing the entire construction project as presented by Bethlehem Sands to the City of Bethlehem; and

Shall be amended to read as follows:

WHEREAS, the City Council of Bethlehem insists of Bethlehem Sands completing the entire project at the earliest possible time as presented by Bethlehem Sands to the City of Bethlehem; and

Ms. Dolan suggested the word “that” be inserted instead of the word “of”, to read as follows:

WHEREAS, the City Council of Bethlehem insists that Bethlehem Sands complete the entire project at the earliest possible time as presented by Bethlehem Sands to the City of Bethlehem; and

Mr. DiGiacinto expressed his agreement with the wording change.

Mr. Reynolds, restating that City Council does not have the power to insist that the Sands complete the project, noted only the Gaming Control Board can insist. Mr. Reynolds notified the Members that he was going to vote on the Resolution and insert a deadline of May 1, 2010. Mr. Reynolds continued on to say if Council felt that enough progress was not being made then other avenues could be considered to pass something with stronger language.

Ms. Dolan requested that it be asked of whoever is appropriate what powers City Council has in terms of requiring the Sands to meet any sort of conditions in the approved project.

President Donchez, recounting that the genesis of the matter is as a result of the State Gaming Control Board hearing on February 3, 2010 in Town Hall on renewal of the Sands casino license, noted he submitted written comments. President Donchez highlighted the fact that the Resolution did not reflect the newspaper articles over this past weekend. President Donchez, agreeing Mr. Reynolds is correct that City Council does not have the power, thought the word insist is too strong since only the Gaming Board has that power. President Donchez pointed out that the Sands has been a good corporate citizen, involved with the community, Daly Avenue improvements, the Greenway, Northampton Community College, and the Community Action Committee. President Donchez continued on to say that Robert DeSalvio, President of the Sands BethWorks, has done an excellent job as the primary contact person and he has been involved in Bethlehem. President Donchez observed this discussion would probably not be occurring if the stock market had not dropped over a year ago and the company’s stock also dropped, and the hotel project would likely have been completed. President Donchez stated that the project is key and vital to developing the whole site from the Minsi Trail Bridge to the area planned for ArtsQuest and PBS 39. President Donchez, affirming that the Las Vegas Sands is a publicly traded company, stated they are not beholden to anyone other than their stockholders. President Donchez commented that the Pennsylvania Gaming Board has leverage in renewing their license. President Donchez denoted that, in response to Ms. Dolan’s question, he does not think City Council has much power in the matter.

Ms. Dolan observed it would be incorrect to state in the Resolution that City Council believes that the completion of the entire project as presented by the Bethlehem Sands to the Pennsylvania Gaming Commission was required as a condition of their approval. Ms. Dolan continued on to note that, in the thinking and judgment of the Pennsylvania Gaming Commission, there is no link that would require the Sands to complete all of the other projects including the hotel, retail, etc. to receiving approval to renew the casino license.

President Donchez commented that might have been part of the Sands gaming application in the beginning when the company applied for the casino license but he is uncertain since he has not reviewed the document.

Ms. Dolan, wondering if there is any lever in the application, queried when the Sands went before the Gaming Commission was the build-out of the entire project written into the conditions for approval.

Mayor Callahan explained it is his understanding that the project in its totality including the casino, parking garage, mall, convention and multi-purpose space, and hotel were all a part of the application process and the license awarded was conditioned on building what was presented. Mayor Callahan continued on to say the Sands was granted a waiver by the Gaming Control Board to cease construction of certain aspects of the project due to economic conditions, and the waiver is still in effect. Mayor Callahan informed Ms. Dolan that questions such as the timeline of the waiver are best asked of the Gaming Control Board.

Commenting that perhaps Tabling the Resolution should be considered again, Ms. Dolan observed this brings up another issue in that City Council should be commenting from a position of full disclosure and knowledge. If this was a condition of approval of the Sands casino license, Ms. Dolan thought it could be used as a wedge but Council should be sure that it was a condition of approval.

Mr. DiGiacinto pointed out that the Pennsylvania Gaming Board held the hearing in Town Hall to receive public comment and to hear from community leaders before making a decision on the license renewal. Mr. DiGiacinto mentioned that he is supportive of Mayor Callahan’s comments at the hearing regarding the Sands completing their project. Noting there will be a hearing on March 11 in Town Hall on approval of table games for the casino, Mr. DiGiacinto restated that the Board wants to hear what people have to say. Mr. DiGiacinto thought that something from City Council to the Gaming Control Board referencing the Sands and their project would not be inappropriate, and observed that Council is trying to determine what would be the most effective format. Mr. DiGiacinto remarked it would not be said that Council does not have any impact in view of the fact that the Gaming Board is holding hearings to hear what the community has to say. Otherwise, he noted that the Board could have the meeting in Harrisburg to make the decision.

President Donchez, advising that Council has input as elected leaders, stated that Council cannot make any demands as a legislative body since demands would come from the Gaming Control Board and the conditions based on the Sands license and whether it is renewed.

Mr. Reynolds communicated that Members of Council agree that they can say something, and it is a matter of at which level Council is able to say something. Mr. Reynolds exemplified that the Gaming Board is aware that if a community is not behind a proposal there could be problems in the future. Mr. Reynolds restated that his personal opinion was to look at a date such as May 1 and, unless there is a good reason otherwise, then review what Council could do to forward its complaint.

Mr. DiGiacinto asked what the Mayor would feel would be supportive from City Council.

Mayor Callahan affirmed that the Resolution was drafted prior to the press release from Las Vegas Sands yesterday morning stating that recent rumors of the sale of the Sands Casino Resort, or indefinitely delaying the completion of the hotel and other components of the development are unfounded, and that the company has already mobilized its development team and could restart construction on the 300 room hotel within the next several weeks. Noting that one could question whether the Resolution is necessary at all, Mayor Callahan commented that if at this point the Sands made good on their commitment and hotel construction is seen in the next several months then that is the answer. Mayor Callahan, communicating this is ultimately a decision that Council can make, pointed out he made his feelings clear at what he thought was the most appropriate venue that was the Gaming Control Board hearing on the Sands Casino license renewal. Mayor Callahan thought the Resolution strikes the appropriate tone and sends a message that it is Council’s will and desire to see the project completed.

Mr. Mowrer made a motion to call the question on Amendment number one. Mr. Evans seconded the motion.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, and Mr. Mowrer, 3. Voting NAY: Ms. Dolan, Mr. Evans, Mr. Reynolds, and Mr. Donchez, 4 . Amendment number one failed.

Ms. Dolan questioned whether there is a time factor that is so crucial that the matter could not be held so that it could be brought fully up to date, the Resolution could state exactly what Council wants it to state, Council could review the conditions placed on the Sands when the casino license approval was granted, and Council could decide to whom the Resolution should be addressed.

President Donchez noted he did not believe that there would be a decision by the Gaming Board on renewal of the license in the next two weeks.

Ms. Dolan thought it would be best to make another motion to Table the Resolution especially since a decision on the license renewal would probably not take place in the next two weeks.

Motion – Tabling Resolution 11 F

Ms. Dolan moved to Table Resolution 11 F. Mr. DiGiacinto seconded the motion.

Voting AYE: Mrs. Belinski, Mr. DiGiacinto, Ms. Dolan, Mr. Mowrer, and Mr. Donchez, 4.
Voting NAY: Mr. Evans and Mr. Reynolds, 2. The motion to Table Resolution 11 F passed.

President Donchez asked Attorney Spadoni to review the Sands Casino license application, and to research the points raised by Ms. Dolan. President Donchez noted that the Resolution would have been written differently if the news reports from last Friday to yesterday had been known at the time.

12. NEW BUSINESS.

Committee Meeting Announcements

Chairman Reynolds announced a Finance Committee meeting on March 10, 2010 at 7:00 PM in Town Hall.

Chairman DiGiacinto announced a Public Safety Committee meeting on April 27, 2010 at 7:00 PM in Town Hall.

Moravian College

Mr. Reynolds referred to a recent newspaper article about a decision of Moravian College requesting that in the future all students live on campus unless they are commuters. Noting that he and President Donchez have attended numerous Block Watch meetings, Mr. Reynolds observed it has been a concern of residents in the area about the increasing numbers of students moving into the neighborhood. Mr. Reynolds communicated that the decision, which would be of benefit to Moravian College, could be a benefit to the City and the neighborhoods. Mr. Reynolds advised that he has personally written a letter that he is planning to send to the President of Moravian College, the Board of Trustees president, and the Student Government president. Continuing on to say that he will attend the Block Watch meeting on March 9 with the letter, Mr. Reynolds suggested that Members of Council could review the letter and sign it if they desire.

Completion of Bethlehem Sands Project

President Donchez asked that, after the information is received from Attorney Spadoni, the Members of Council forward any ideas and thoughts on the matter of completion of the Bethlehem Sands project so that a draft can be developed for review by the Members.

13. COURTESY OF THE FLOOR

Bethlehem Fields – Lights

Joan Madzarac, 2704 Easton Road, Lower Saucon Township, stressed that the neighbors are not going to be held hostage by a light meter in the matter of the lights from the Bethlehem Fields development that are shining into their homes. Stating that this is a serious problem, Ms. Madzarac said please do not take it lightly. Ms. Madzarac pointed out it is ten months and the problem is not solved. Ms. Madzarac expressed that the lights should be removed to give the neighbors peace and return their lives to normal. Asserting that the quality of human life is at stake, Ms. Madzarac remarked that a light meter should not be accepted as the final judgment on the intrusion of light from Bethlehem Fields into the neighbors homes and property in Lower Saucon Township. Highlighting the fact that the neighbors own their homes and are permanent residents, Ms. Madzarac pointed out that Bethlehem Fields is owned by absentee landlords and occupied by itinerant residents. Explaining that all the neighbors are asking for is the removal of the offending lights in the parking lots and on building I, which will end the problem, Ms. Madzarac stressed what has been inflicted on the neighbors with the lights will continue forever. She added that is only part of the problems the neighbors are having with the project along Cherry Lane and Easton Road. Ms. Madzarac asked again that the City solve the problem. Ms. Madzarac asked the Mayor and Mr. Alkhal if there could be a meeting to resolve the problem that has gone on much too long.

Completion of Bethlehem Sands Project

Stephen Antalics, 737 Ridge Street, made reference to the newspaper articles about the matter of the Sands Casino project and comments of CEO Adelson, and said that City Council is a paper tiger. Mr. Antalics commended Ms. Dolan, and stated that Mr. Mowrer is on target. Mr. Antalics communicated that, rather than putting out a Resolution to an excellent community partner who is doing the best they can, one has to take a person such as Mr. Adelson at their word rather than responding to a hearsay article about a possible sale of the Sands Casino in Bethlehem. Observing that table games bring high rollers, Mr. Antalics stated that the number of hotel rooms reported in the news release went from 300 to 1,000 because of the table games, which is where the money is, that bring to casinos high rollers who will stay in the hotel. Mr. Antalics thought that to consider a Resolution at this point is insulting to an excellent community partner and to the CEO of Las Vegas Sands who has not said anything negative, and instead there is negative reaction to a preceding newspaper article. Mr. Antalics remarked that the Resolution should not come up again unless the CEO reneges and makes a concrete statement about selling.

President Donchez reminded the assembly that the Resolution was drafted before the newspaper articles appeared last weekend.

Robert Pfenning, 2830 Linden Street, made a correction noting there is no third license for Singapore. Referring to the Las Vegas Sands conference call on February 17, Mr. Pfenning said Mr. Adelson did not mention Bethlehem or Pennsylvania. The mention of 300 rooms not being enough for convention business was concerning the Macau casino. Mr. Pfenning commented that the fourth quarter loss of $2 million is basically an accounting loss and he did not think it reflected operating losses. Mr. Pfenning exemplified that the Sands Bethlehem results should be reviewed in the context of all the casinos in Pennsylvania for comparison. Mr. Pfenning stated that the Sands is applying for 89 tables games, 77 will be banked, 12 will be non-banked. Mr. Pfenning, informing the assembly that he attended the Pennsylvania Gaming Congress on February 23, noted the following: he heard the words maturing and saturation used regarding slot machine play; a comment was made that the hotel at Sands Casino in Bethlehem is needed to maximize revenue potential; Mr. DeSalvio, President of Sands Casino in Bethlehem, said he was not going to give any dates for starting the hotel. Mr. Pfenning expressed his agreement with Mr. DiGiacinto regarding the wording of the March 1, 2010 Las Vegas Sands news release in which Mr. Adelson was quoted. Mr. Pfenning said the answer is yes to whether the operation is covering its costs of operation and to whether it is generating cash for the corporation, but to the question of whether the facility is consistent with the business model his answer is no.

President Donchez stated that the Members of Council will be provided with the fourth quarter financials for the Las Vegas Sands that was posted on their website.

Completion of Bethlehem Sands Project; Cell Phone Legislation

Dana Grubb, 2420 Henderson Place, stated his belief that Council should express their opinion concerning the commitments made for the Sands Bethlehem project. While commenting it is not a criticism of the Sands that has been an asset to the community, Mr. Grubb wondered what is driving the discussion, remarked that something does not rhyme with the situation, and added that advancing the balance of the project is very important. Mr. Grubb highlighted the fact that legislation was passed in Allentown to prohibit using cell phones and texting while driving, since it could be a long time before the State passes legislation. Mr. Grubb thought that Bethlehem should also be proactive in the matter and enact legislation that will make it safer for people in the community. Mr. Grubb stressed that too many people are using cell phones and texting while driving and not paying attention to the roadway. President Donchez informed Mr. Grubb that the appropriate reference to the location of the North Central Fire Station will be checked.

Non-Controversial Resolution

James Halleman, 817 Lynn Avenue, suggested that City Council pass a non-controversial Resolution, such as is done by the State.
Various Issues

Eddie Rodriquez, 1845 Linden Street, said a good job was done clearing the snow from the streets. Mr. Rodriquez thought that somebody has to answer for the situation involving the remainder of the project at the Sands Casino that has not been completed. Mr. Rodriquez, commenting that there are not straight answers from some Departments in the City, communicated there has been disrespect when one tries to obtain answers. He stated this has to be corrected so it does not happen again. He added there is a lot of drug activity in the City, and the information must get through to the appropriate people.

Cell Phone Legislation; Completion of Bethlehem Sands Project

Bill Scheirer, 1890 Eaton Avenue, noted a study has found that talking on a cell phone while driving is as dangerous as driving while drunk, and a study has found that texting while driving is approximately six times as dangerous as driving while drunk. Mr. Scheirer thought that the word insist is proper regarding the issue of the completion of the Sands Casino project. Informing the assembly that at a meeting of the task force on the Comprehensive Plan a representative of the Sands said at that time that a ten story hotel would be built but if they got table games they wanted to build two hotels of 20 to 30 stories each, Mr. Scheirer felt that if they got table games then at least they should finish the ten story hotel. Communicating that people should be held to their statements, Mr. Scheirer thought City Council has every right to insist that the Sands do the honorable thing and do what they said they were going to do.

Elias Market - Linden Street; Idling of Diesels

Al Bernotas, 1004 Johnston Drive, provided an update on the matter of the appeal of the variance that was granted to Elias Market on Linden Street. Mr. Bernotas said the local residents of Johnston Drive have provided as much legal information as they could to their attorney, David Backenstoe, and to Attorney Spadoni. Mr. Bernotas thanked City Council for supporting the residents in their appeal of the variance granted by the Zoning Hearing Board. Mr. Bernotas commented that the way a city is kept nice is to have rules and to keep neighborhoods in good order. Mr. Bernotas expressed his opinion that the Zoning Hearing Board has been encroaching into the residential area with commercial development, and is the kind of thing that neighborhoods need to fight. Regarding the idling of diesels in neighborhoods and Pennsylvania Act 124, Mr. Bernotas noted he would like to talk to the Police Commissioner about the matter.

President Donchez affirmed that the information provided by Mr. Bernotas to Attorney Spadoni is available in the City Clerk’s Office for Council’s review.

Completion of Bethlehem Sands Project

Mary Pongracz, 321 W. Fourth Street, felt that it was almost a condemnation of the Sands in the discussions this evening without anyone from the Sands being at the meeting to present their side of the story. Ms. Pongracz suggested that a meeting be held with officials from the Sands to get the story from the real source, and discuss the rumor.

President Donchez affirmed that a copy of Resolution 11 F listed on the Agenda this evening had been forwarded to a representative of the Sands, and he had spoken with someone from the Sands regarding the Resolution. President Donchez encouraged Members of Council to meet with Mr. DeSalvio, President of Sands Bethlehem, and added that he meets with Mr. DeSalvio every few months to obtain periodic updates from him.

The meeting was adjourned at 9:00 p.m.