Township Commissioners Vote to Drop Arena Lawsuit

Bethlehem Township commissioners voted unanimously Monday night to drop its stake in a lawsuit that has for months of a hockey arena in downtown Allentown.

Bethlehem Township was one of at least 11 municipalities across the Lehigh Valley that sued to stop Pennsylvania from toward project funding.

As part of the Neighborhood Improvement Zone, state, local and school district earned income taxes collected from employees who work within a 130-acres area of center city Allentown were redirected toward projects to revitalize the city, including the $158 million hockey arena.

But new legislation adopted in June removes the local and school district taxes from the funding stream. It also calls for money already been diverted to be returned.

Litigants also complained that the NIZ-enabling legislation was unconstitutional and that it threatened to lure local businesses to downtown Allentown with tax-funded financial incentives.

Township commissioners voted to authorize solicitor James Broughal to negotiate the final settlement. After the meeting, Broughal said he mainly wants to ensure that the money already diverted is returned to township coffers.