Politics & Government

Upper Nazareth Will Join NIZ Lawsuit

With only 30 days to file a petition to intervene, the Upper Nazareth Board of Supervisors votes to join the lawsuit against Allentown's Neighborhood Improvement Zone.

is the latest municipality to join the lawsuit against Allentown's controversial Neighborhood Improvement Zone (NIZ).

The lawsuit -- meant to stop earned income taxes from being funneled toward the construction of a $158 million hockey arena in downtown Allentown -- was initiated by Hanover Township, Northampton County.

Bethlehem Township, and have also joined the fight.

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Upper Nazareth's unanimously approved a motion at Wednesday night's meating that will allow solicitor Gary Asteak to file a petition to intervene. Mike Rinker, chairman of the supervisors, was absent from the meeting.

"It’s the principle of the thing that irritates me," said Supervisor Willard Mohn. "I wish we could just put our hat in the ring so they know that we also object."

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Asteak said the petition to intervene would be doing just that.

James Augustine, an assistant district attorney for Northampton County, initially played devil's advocate, saying the township shouldn't join the lawsuit without knowing how much earned income tax it stands to lose.

This was the in late March.

However, Asteak explained, the township can't decide "to join the party later." The township must intervene within 30 days of the filing of the lawsuit, which was on March 29.

When asked how much it would cost to intervene, Asteak had a hard time determining a number.

"I would like to say no more than several thousand dollars, and that’s assuming a trip to Harrisburg for an argument," he said.

Asteak told the supervisors that the lawsuit has merit. His only concern is whether political undertones will sway the Commonwealth Court.

The township solicitor said he felt confident in the lawsuit as long as "the Commonwealth Court looks at the lawsuit through the eyes of the law." In addition, Asteak believes the lawsuit will have more credibility with the more municipalities backing it.

Upper Nazareth supervisors joined the "" chorus in early February, asking residents who agree that losing the township's share of earned income tax is unfair to contact their state legislators -- state Rep. Joe Emrick and state Sen. Lisa Boscola -- to voice their displeasure.

Representatives of most of the municipalities and school boards of Lehigh and Northampton counties Allentown’s new Neighborhood Improvement Zone.

But the discussion was short and uneventful because they are waiting for promised answers to questions submitted to Allentown officials. City officials have told leaders of the Tax Collection Committees of both counties that they are still trying to compile the necessary information.

Beginning this year, earned income taxes -- for the state, local municipalities and school districts -- collected from within a 130-acre area in center city Allentown and along the waterfront, are being diverted to pay debt service on bonds that will pay for improvements in the area, instead of being forwarded to the home municipalities of those who work in the district.

The Northampton County Tax Collection Committee is scheduled to meet on April 12 in .


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