[CPEO-BIF] Bethlehem (PA) cuts size of tax-break zone

[bobh@np.craigslist.org]

Business-friendly area now centers on old Bethlehem Steel land.

By Nicole Radzievich
The Morning Call
October 3, 2007


Bethlehem, PA
Bethlehem City Council on Tuesday signed off on the most drastic changes yet to an
18-year-old tax-break program.  In a 6-1 vote, council cut by more than half the
tax abatement zone, leaving it to cover only 1,382 acres of old Bethlehem Steel
land. Mayor John Callahan's administration has argued the new boundaries for the
Local Economic Revitalization Tax Assistance program show the success the city has
had in revitalizing areas such as Stefko Boulevard to a point where the program is
not needed there anymore.

...Under the program, companies and merchants pay no property tax on new
construction the first year, then 10 percent more each year until they pay the full
tax after a decade. A similar tax payment schedule is set up over five years for
improvements to buildings in the tax abatement districts. The old Steel plant, set
to become a 124-acre entertainment district anchored by a slot machine casino,
would continue to be ineligible for the tax breaks under the proposal. Nor are
residential owners receiving the incentive.

Councilman Joseph Leeson, who cast the lone vote against renewing the program, said
development on the Bethlehem Commerce Center is well under way with agreements of
sale on much the land. He said the tax district served the city well, but its time
has passed. The city, which has been running tight budgets, can no longer afford to
charge companies just a portion of the tax bill, he said.

For the entire article, see:
http://www.mcall.com/news/local/all-b3_4council.6071696oct03,0,4594435.story

Bob Hersh
CPEO


_______________________________________________
Brownfields mailing list
Brownfields@list.cpeo.org
http://www.cpeo.org/mailman/listinfo/brownfields