Politics & Government

Callahan: Bethlehem is 'Poised for Prosperity'

Mayor offers optimistic outlook after recent struggles; pushes Martin Tower TIF

While admitting that city government has suffered financially in the past two years, Mayor John Callahan pointed to Bethlehem’s safety record, continued private investment and an expanding tax base to paint an optimistic picture during his annual “State of the City” address on Thursday.

“Clearly, the state of the city is strong and getting stronger,” Callahan concluded. “2011 will be a dynamic year with much to celebrate. I am happy to report the city is poised for prosperity.”

As has been customary, Callahan delivered his annual address during a breakfast meeting of the Greater Lehigh Valley Chamber of Commerce, whose members gathered at an events room in the on Third Street in South Bethlehem.

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During his remarks, the mayor announced one new initiative: a “broad based survey” of residents to measure how government services are viewed in Bethlehem. The results “will be used as a guidepost for setting budget priorities for next year and the years to follow,” Callahan said.

After the speech, Callahan said he still needs to determine how the poll will be conducted and by whom, but conducting a scientific survey of city residents is a clear goal he has set for 2011.

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“Citizen participation input is critical to understand how we are delivering our city services and, in a world of limited budgets, which services we should prioritize,” the mayor said. “It is the taxpayers’ dollars at work and they should have some say in how they are spent.”

Callahan made only a passing mention of the recent downgrade of the city’s , but touted the 12 percent reduction in annual spending this year to “right size our government and bring it in line with our ability to pay for it.”

Those cuts included 54 full- and part-time jobs, reducing the city’s work force to 629 employees, the least it has been “in probably 50 years,” Callahan said. The cuts represent a permanent annual savings of $3.1 million “and should help stabilize budgets going forward,” he added.

The mayor also used his stage to renew pressure on the Bethlehem Area School Board, which looked , but has again , Tax Increment Financing for the owners of Martin Tower. The financing would allow the Lehigh County Industrial Development Authority to borrow money to help pay for necessary renovations to the landmark, which would be repaid by diverting a portion of the real estate tax revenue away from the city, county and school district.

“In 1990, the property tax revenues from this building were $1.5 million,” Callahan said. “Today, this building generates $117,000 in tax revenues. Every year the taxpayers of the school district, county and city lose over $1 million in tax revenue. It will never be reoccupied as a corporate headquarters.

“The TIF plan, as proposed, will spur over $200 million of private investment in the community and generate hundreds of construction jobs and full-time jobs,” Callahan continued. “Equally importantly, this project promotes some of the broader public policy goals of smart growth we all support: adaptive reuse, curbing urban sprawl and investing in our urban cores.”

The mayor spoke optimistically about the growth on former Bethlehem Steel land, including the , Lehigh Valley Industrial Park VII and the Majestic Corp.’s 441-acre piece which is expected to bring at least 3,000 new jobs and $500 million in economic development when it is fully built.

The also got an optimistic mention.

“The 300-room hotel is slated to open at the end of May,” Callahan said. “It will be the largest full service hotel in the Lehigh Valley. And I fully anticipate the work to restart on both the mall and the event center this year.”

To read more from Callahan's "State of the City" address, click 


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