BETHLEHEM, Pa. — A builder's plans for “one of the largest developments in recent Bethlehem history” on the city’s South Side isn't sitting so well with some residents.
- Many residents oppose the 240-unit, six-story development proposed at 119 Technology Drive
- They say the building could affect local business, traffic flow, housing costs, air quality and more
- The official zoning change will come to a vote on May 2
During a public hearing Tuesday night, city council heard comments concerning requests from Broughal & DeVito LLP — legal counsel for developer Serfass Development and Acquisitions — for a zoning change that would clear the way for a six-story, 240-unit apartment complex. It would be built at 119 Technology Drive, near Second Street and the south end of the Fahy Bridge.
Residents scrutinized the plans, and a letter to city leaders from the region's top economic development official indicated covenants placed during prior sales of the property limit its reuse for several purposes, including residential ones.
The four-acre site now is occupied by IQE, a U.K.-based global supplier of semiconductors that is moving operations to North Carolina.
The rezoning request would change the property’s current zoning designation of Industrial Redevelopment (IR) to Central Business (CB).
Kevin Serfass, a partner with the development company, said the project would put some ease on the local housing demand.
“We feel that [this] would greatly help the current housing crisis that’s going on, not just in Bethlehem, in the Lehigh Valley, but all across the U.S. We’re seeing that affordability, attainability and availability crisis.”Kevin Serfass, vice president of Serfass Development and Acquisitions
“We feel that [this] would greatly help the current housing crisis that’s going on, not just in Bethlehem, in the Lehigh Valley, but all across the U.S.,” Serfass said. “We’re seeing that affordability, attainability and availability crisis.”
Comments from planning director
The Lehigh Valley Planning Commission and Bethlehem Planning Commission have said the proposed apartment building would align with area needs.
Darlene Heller, city planning director, said it would bolster a more walkable South Side and provide space for parking and amenities — all while sitting just outside the Historic Conservation District.
An enhanced bus route also runs nearby, she said.
Heller added that the city’s comprehensive plan provisions would support such a project.
“In the Downtown Revitalization and Economic Development section, it notes that the city should sustain a physical environment in and around the city’s retail centers that encourages people to work, live and play in Bethlehem, and to ensure that the city’s zoning ordinance permits mixed residential and non-residential uses in all appropriate locations,” Heller said.
If council votes in favor of the redevelopment at the next meeting, it would go before the city planning commission for a land development review.
That would include a peak-hour traffic study.
She said most people who would be interested in living here would prefer to walk, bike or use public transit.
“And generally speaking, residential uses have less impact on traffic overall than industrial uses or other non-residential uses, because the trips are more random throughout the day, rather than being in and out during peak hours of traffic."Darlene Heller, city planning director
“And generally speaking, residential uses have less impact on traffic overall than industrial uses or other non-residential uses, because the trips are more random throughout the day, rather than being in and out during peak hours of traffic,” Heller explained.
When asked about rental costs at the proposed building, Serfass said the price would “be in line with the rest of the market.”
And since the construction could take two years, “it’s hard to predict” what the exact cost would be when that time comes, he said.
He said the property would offer a certain value to the residents, offering a co-working space on site, gym, parking, shared services and a community room.
Concerning the endangered status of the nearby Lehigh River, Serfass said, if approved, the property would have to go through all appropriate stormwater regulations, as per the National Pollution Discharge Elimination System and the Department of Environmental Protection.
The property’s covenants
The disclosure of covenants on the property came from Don Cunningham, a former Bethlehem mayor who now heads the Lehigh Valley Economic Development Corp., tasked with recruiting business and industry to the region.
Cunningham did not attend the meeting but issued concerns in a letter to council members and city administrators.
He said the tract was built as the Bethlehem Technology Center in 1993 — the very first project aimed at transforming the city’s economy from the heavy industry of Bethlehem Steel to a new one focused on sectors like the life sciences and technology.
He noted that the property was built with public money from the city, Northampton County, Ben Franklin Technology Partners and Lehigh Valley Industrial Parks.
“The intention at the time of construction and at the time of sale (from Bethlehem Steel) was for the area to serve as a life sciences and technology hub for Bethlehem on former Bethlehem Steel land that could serve as a home to companies graduating from Ben Franklin Tech Partners or to house other tech and life sciences companies,” Cunningham said.
He said the original sales agreement from 1993 as well as a subsequent sale in 2007 limit reuses for residential purposes, schools, day care centers “and many other people-intensive purposes.
“Those covenants need to be released by several entities for the property to ever be used for residential,” said Cunningham, who was mayor from 1998 to 2003.
“The central question before you is one of timing. Is it time to walk away from technology or life sciences uses? Has adequate effort been made to continue this use and/or is it time to repurpose the property for residential?” he wrote.
Cunningham said Lehigh University had the building under agreement of sale for almost a year before deciding against buying it last fall.
He said IQE marketed the building in the fourth quarter of 2022 before “settling” on an agreement with Serfass Development in January.
“You will hear tonight that the property was marketed for life sciences and technology and there were no takers, therefore, there is no other option,” he wrote. “Because of what I do for a living, I can offer that it often takes harder work — longer than 90 days — and a much-wider national net to find a specialized user for a building constructed for this purpose.”
According to Cunningham, LVEDC as well as the state and federal governments have targeted life sciences and technology development, with about 170 such companies in and 6,600 workers in the Lehigh Valley.
He said LVEDC is in the midst of a national marketing campaign to grow the sector here.
“It will send an economic development message if the region's second-largest municipality moves this quickly to repurpose away from its life sciences-technology hub at a time when other states, regions, and the federal government are investing money and creating consortiums to build capacity,” Cunningham wrote.
He said he’s aware of the demand for new housing in the Lehigh Valley, and as a former city council member understands the pressures of the position.
“I know you all have the good of our city at heart. I want you to make your decision after a full examination,” he said.
On a 'knife's edge'
Councilwoman Hillary Kwiatek asked about the covenant placed on the property. She asked why it would be permitted to work around that, as arsenic was found on site following a DEP report.
“I don’t have a problem with more residences and all those kinds of things,” Kwiatek said. “But the environmental concern for me is pretty strong in the sense that, 20 years from now, we could have people getting sick or something — and then saying to the city, ‘Why did you allow this change in zoning and this lifting of this covenant to allow people to live here when it appears that it’s a pretty rough situation with the ground?’”
Serfass answered that covenants are common in the industry, and the environmental concerns listed in the document are not specific to the Lehigh Valley.
He added that the covenant was put in place when the property was in remediation following its former use by Bethlehem Steel.
“So, we’ve met with DEP, explained to them our plan, we have an environmental engineer on board and we received their sign-off to our plan. … Anything that would be stirred in a new development would get clean-filled-covered or impervious cover.”Kevin Serfass, vice president of Serfass Development and Acquisitions
“So, we’ve met with DEP, explained to them our plan, we have an environmental engineer on board and we received their sign-off to our plan,” Serfass said. “ … Anything that would be stirred in a new development would get clean-filled-covered or impervious cover.”
Kwiatek spoke of a “bottleneck” affecting first-time homebuyers because of the current rental market, as that’s the most common housing option.
She added developers should consider implementing more small houses, bungalows and condos.
Councilwoman Paige Van Wirt said the covenant had her “concerned” when she first read it.
“I’m sure it’s fact that the DEP is okay with this. But I just don’t understand how this could be prohibited, and yet the solution is to cover it with topsoil or pavement.”Councilwoman Paige Van Wirt
“I’m sure it’s fact that the DEP is okay with this,” Van Wirt said. “But I just don’t understand how this could be prohibited, and yet the solution is to cover it with topsoil or pavement.”
Serfass said the DEP regulations and testing are thorough, and testing included pits, borings, soil samples, groundswell monitoring, a soil management plan, as well as a health and safety plan.
Councilwoman Rachel Leon spoke of her concerns surrounding the property and housing affordability.
“We can’t talk about market rate-affordable without talking about the fact that there are people who are literally being squeezed out because of what is considered market rate-affordable right now.”Councilwoman Rachel Leon
“We can’t talk about market rate-affordable without talking about the fact that there are people who are literally being squeezed out because of what is considered market-rate affordable right now,” Leon said.
She said some nearby restaurants are on a “knife’s edge” and could close as a result of this site’s construction period among other surrounding projects.
City council President Michael Colón asked about the potential expansion of the building’s current footprint.
Serfass said for the sake of ease of development, developers are looking to maintain the existing footprint.
That would allow for the use of current stormwater facilities, paving, curb lines, landscaping and more.
Comments from residents
Resident Dana Grubb said the proposed property would have a negative effect on small businesses, affordable living options, traffic and air quality.
“We all know we need affordable housing options. And a project like this with all the amenities really won’t address that and serve the city’s needs.”Dana Grubb, city resident
“We all know we need affordable housing options,” Grubb said. “And a project like this with all the amenities really won’t address that and serve the city’s needs.”
Jo Daniels, a South Bethlehem resident, said the new building would “take away from the view” as people come from the North Side to the South.
She said that as the area's median income is $55,000, this property would not be offering reasonable rent if the cost is based on current market rates.
Traffic flow was another of Daniel’s concerns; she said the current public transportation bus system and other options aren’t robust enough.
“I see no way and how a 240-unit building right off of Third Street is going to work traffic-wise. It’s just not possible.”Jo Daniels, South Side resident
“I see no way and how a 240-unit building right off of Third Street is going to work traffic-wise,” Daniels said. “It’s just not possible.”
She referenced the city-allocated $800,000 for the South Side’s Five 10 Flats apartment building to cover environmental testing costs.
“Why should the city have to continuously give, give, give and the residents get nothing? The residents that live and work here get nothing.“Jo Daniels, South Side resident
“If a developer is coming into Bethlehem and they need to check to make sure that there’s no lead, asbestos and arsenic, and whatever else in the ground and water — that’s on them,” Daniels said. “Why should the city have to continuously give, give, give and the residents get nothing? The residents that live and work here get nothing.“
Resident Bill Scheirer opposed the proposal.
“Bethlehem is rapidly approaching the point of no return,” Scheirer said. “Will it continue to sacrifice the small-town feel that is partly what is attracting people here, or will it decide that it doesn’t want to be a pale imitation of a larger city?”
City native Tina Cantelmi spoke of the economic development impact of losing IQE.
She also said the flow of pedestrian traffic near the Fahy Bridge makes for dangerous conditions.
“That bridge, the pedestrian traffic there is worse than Manhattan.”Tina Cantelmi, Bethlehem native
“That bridge, the pedestrian traffic there is worse than Manhattan,” Cantelmi said. “And it’s more dangerous because you’re on the corner by yourself or maybe one other person — and the cars don’t care.
“It’s a frightening intersection.”
City council will consider the zoning change at its May 2 meeting.
Other business
City council voted in favor for the city, its police department and BusPatrol — an AI-powered school bus safety program — to enter into a memorandum of understanding.
It comes in mutual support of a “Stop Arm Program,” placing a system on each school bus to enforce illegal passing of the bus while its red lights are flashing.
Deputy Police Chief Scott Meixell said the owner of any vehicle that illegally passes a stopped school bus would receive a citation.
Bethlehem police would confirm the owner’s information before BusPatrol mails out a citation.
