90-foot-tall, 141-room hotel set to enjoy its stay along South Bethlehem’s Third Street corridor

BETHLEHEM, Pa. — City Council on Wednesday unanimously approved a certificate of appropriateness to allow development of a 141-room hotel in South Bethlehem’s Historic Conservation District.

The 90-foot-tall Tempo by Hilton hotel, set for 14-36 W. 3rd St., was pitched by Lancaster-based High Hotels Ltd. to include a ground-level restaurant and bar, rooftop bar and expanded fitness center in a building along the western end of the South Bethlehem Greenway.

Two structures on the property, both slated for demolition, stand across from the Banana Factory and next to the six-story, multi-use Gateway at Greenway Park building at Third and South New streets.

That corner building also is attached to the New Street Parking Garage.

The city Historic Conservation Commission, a recommending body reviewing modifications to the outside of buildings in the Historic Conservation District, supported the proposal last month.

The applicant will be back before historic officials with even finer project details — such as storefront systems, signage and lighting — later.

Another previous approval

Former property owner Patriot Ventures LLC and its previous proposal known as South Pointe Flats, which was approved in 2021, called for an eight-story structure with ground-floor commercial storefronts and multifamily residential dwellings in the floors above.

In 2021, HCC recommended to deny that project. City Council ultimately overruled that decision, though the property ended up having a change in ownership.

That meant that particular certificate of appropriateness for South Pointe Flats was still standing prior to Wednesday’s vote, with the new developer working to make adjustments under city guidance in the time leading up to the decision.

After some back-and-forth from the panel over the particulars of the vote, council solicitor Stephanie Steward and city solicitor John Spirk Jr. agreed officials would have to weigh any potential change on the general historical nature of the district — specifically any change from what’s already been approved with the previous COA.

Citing Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 8004, Steward said, “If you deny a COA, that denial has to be written.

"And you can say, 'This is why we find it inappropriate, why we denied it and these are the corrections that could be made.'

“There’s also an appeal process set forth in the ordinance.”

'An economic win'

Councilwoman Rachel Leon said she felt the proposed hotel certainly was a better use of what’s there currently.

It could complement the incoming ArtsQuest Cultural Arts Center, she said, bringing a new energy to the area without any broader changes to surrounding infrastructure such as a new parking facility.

“To me, this is an economic win,” Leon said. “This is a high-end hotel that wants to be in South Bethlehem and is not asking us to do anything other than say, ‘Yeah, go ahead.’

Both the hotel’s potential effects on Third Street traffic flow and current vacancy rates in the area were what concerned Councilwoman Grace Crampsie Smith the most about the proposal.

“In the most recent conversations I’ve had with the Discover Lehigh Valley folks who track this pretty closely is that in the area we see about 80-percent occupancy rate in hotels, which is very high,” Community and Economic Development Director Laura Collins said in response.

“We’ve heard from them that there is indeed a need for and a value in additional hotel rooms in the area.”

Filling 'a need within the city'

Councilman Bryan Callahan said the current tax revenue coming from the property probably is far below what could come from the proposed project once completed, also factoring in all the new jobs for South Bethlehem.

“If you look at the property as it is right now, there’s really nothing that’s historic on the property, Callahan said. "And I think it is a need within the city.”

Callahan called the occupancy rates at nearby Wind Creek Bethlehem casino “astronomical.”

Councilwoman Colleen Laird said, “I’m really glad to hear that there’s been conversation both ways, and I see the note in the proposal that the applicant would be returning to the HCC for some further conversation about the details to help blend it in.

“So I appreciate that, as well, and think it’s a good example of how we can balance things in our development.”

'Tiny Manhattan on the Lehigh'

City resident Bill Scheirer argued the new hotel would not be historically appropriate.

“I think taller buildings make people feel smaller,” he said. “That’s why I would not choose to live in Manhattan.

“And now there are some people here who think this is a good thing that we get to see Tiny Manhattan on the Lehigh.”