Upper Saucon Township Joins Allentown Arena Lawsuit

There’s a loose puck in Allentown’s

To those who live in Upper Saucon and elsewhere outside the city, it’s called earned income taxes.

Non-Allentown residents working in the city’s fear their earned income tax revenue will land in center ice when the arena opens as home for the Philadelphia Flyers' farm team, the Phantoms, in September 2013 -- and not benefit the municipalities where they live.

Local communities have put Allentown Mayor Ed Pawlowski in the penalty box of the 8,500-seat arena by turning to their solicitors and looking for a way to keep the tax money out of the city.

The latest came Monday night when the Upper Saucon Township supervisors voted 4-0 to allow their solicitor to join the fray.

Following a one-hour, 15-minute executive session at the township Municipal Building, board chairman Stephen Wagner said that members were discussing potential litigation to recover lost revenue stemming from the creation of Allentown's improvement zone.

“I would like the board to consider a motion to authorize the solicitor to commence litigation in regard to improvement zone tax issue in a manner that the solicitor finds appropriate,“ Wagner said.

The township solicitors are Tom Dinkelacker and Jeff Dimmich.

The 30-acre zone surrounding the soon-to-be arena diverts revenue from non-property state and local taxes to fund construction of the arena and related areas.

Other townships and municipalities reported to have joined the lawsuit against the zone include:

• Stockertown
• Whitehall-Coplay School District
• Whitehall Township

James Rowland, a PPL engneer who works in downtown Allentown and lives in Center Valley, watched the meeting carefully from the audience. He said he favored the litigation to recover the losses to the townships.

“I’m not against the hockey arena,” he said. “I’m against income taken without due process.”