Forks Township Won't Join Lawsuit Against Allentown Hockey Arena Tax Plan

Don't expect Forks Township to join other municipalities in a lawsuit against earned income taxes going to Allentown's hockey arena.

That doesn't mean though that officials aren't against the Neighborhood Improvement Zone that Allentown wants other townships to help support financially.

"A lawsuit might not be financially prudent," said Erik Chuss, chairman of the Forks Township Board of Supervisors. "But the precedent this sets is incredible. I'm amazed that this project is being funded where municipalities have no say where the money is going. This is wrong on so many levels."

Chuss said that the Council of Governments plans on filing a lawsuit and is asking municipalities to sign up.

Lower Saucon Township, Bethlehem Township and Hanover Township have already filed a lawsuit challenging a special state law allowing Allentown to retain earned income taxes of employees who work within the city's Neighborhood Improvement Zone.

A deadline for when municipalities can join the lawsuit is April 27.

Palmer Township plans to discuss the lawsuit at its Board of Supervisors meeting.

Chuss said that since township officials do not know how much local taxpayer funds would be contributed to Allentown -- although he believes it could be a small amount -- it's not worth spending "several thousands on legal fees for a lawsuit."

The zone will help Allentown build a hockey arena and redevelop other parts of its downtown and waterfront with an estimated $550,000 in earned income taxes coming from surrounding municipalities and school districts.

Under ordinary circumstances, earned income taxes paid in the municipality where someone works are forwarded to their home municipality where they are typically shared between the local government and school district.

Township Supervisor David Billings blasted the Northampton County Council and state representatives for not addressing the issue.

"Our state representative hasn't done anything and the Northampton County Council hasn't done anything," Billings said. "This was designed just for Allentown. Our state and county representatives should be fighting for us. We need their help. A lawsuit is not good use of our money."

Supervisor Robert Egolf said the issue was now "beyond a letter-writing campaign."

Chuss suggested, though, that the township send a "strongly worded" letter to state Rep. Joe Emrick and the county council voicing their displeasure."