Foreclosures in Bethlehem

December 4th, 2008 | Tags: Foreclosures

The Bethlehem Mayor John Callahan is facing challenges thanks to the foreclosure crisis. In Northampton County, foreclosures have increased by a third. The builders of Sands Casino Resort Bethlehem may foreclose. However, Callahan said that Bethlehem is facing the foreclosure crisis better than most other cities. He said that the city’s economic position was stable. During the 10th annual Business Leaders’ Breakfast held at Moravian College, Callahan said, “We are growing our way out of this very difficult situation”.

Greater Lehigh Valley Chamber of Commerce organized the Business Leaders’ Breakfast which was attended a record number of people. The event, which attracted 185 visitors, was held under the sponsorship of Philadelphia Trust Co.

Northampton County foreclosures are expected to exceed the previous year’s by more than one-third. However, according to Callahan the city has not succeeded in collecting 99 percent of the real estate tax. $146 million worth of development has been approved this year through building permits. The city expects a bigger tax base for the coming year.

Work on the retail and hotel project of Sands was stopped due to a credit freeze. Although this is a big disappointment, the Mayor however is not too upset. He said that the city was not depending too much for its income on that particular project.

Gordon Mowrer, the City Councilman, attended the presentation made by the Mayor at the Business Leaders’ Breakfast. He was the only council member present there when the Mayor spoke. He will help decide whether the Mayor’s economic optimism is justified. Next month the council will vote on the budget. Mowrer said, “It\’s a bad economy, but I really think Bethlehem can get through this. We\’ve done it before, and I think the mayor showed that today.”

Callahan is optimistic that the work on Majestic Realty’s $500 million business park will begin in spring. The city’s spending meanwhile will go up by 3.1 percent. This will be the lowest increase since 2001, the year in which Bethlehem Steel plant filed for bankruptcy.

Callahan explained how the city tightened its belt, like families facing foreclosure. Some vehicle purchases were postponed, the temperature in some buildings in the city were lowered. There is expected to be an 8 percent increase in medical costs. This will be far lower the increases of 22 percent in recent years. Money has been earmarked for four new police officers, construction of a miniature golf course and a rails-to-trails park, which will be money-spinners for the city, said Callahan.