New Lawsuit Filed Over Allentown's NIZ

A new class-action lawsuit has been filed against the state on behalf of every municipality affected by Allentown’s hockey and entertainment arena project in the Neighborhood Improvement Zone, according to The Morning Call.

Upper Saucon and Catasauqua filed the suit Thursday against a 2009 law that enables Allentown to use the earned income taxes of workers in the 130-acre zone in center city Allentown, no matter where they live, to pay for the city’s new hockey arena.

Eleven other municipalities have already filed a suit challenging in court Allentown’s right to do that.  On May 7, Upper Saucon Supervisors passed a motion authorizing the solicitors Tom Dinkelacker and Jeff Dimmich to commence similar litigation.

State Sen. Pat Browne, R-Lehigh, who wrote the NIZ legislation, told The Morning Call that all the lawsuits essentially challenge the same thing, but the new class-action suit might bring about a uniform settlement.

At this point, no hard numbers have been given about how much money would or could be taken from area municipalities. But in February, Allentown’s director of finance, Garret Strathearn, estimated that about $550,000 of earned income taxes could be diverted to the city.

The cost of Allentown’s hockey arena project tops out at $158 million.