2010 comprehensive economic development -

LEHIGH VALLEY COMPREHENSIVE ECONOMIC DEVELOPMENT

STRATEGY COMMITTEE

2010 & 2011 Appointees

Lehigh County Appointees

Nancy Dischinat, Executive Director, Lehigh Valley Workforce Development Board

Cindy Feinberg, Lehigh County Director of Community and Economic Development

Jerome Frank, Attorney, King, Spry, Herman, Freund & Faul, LLC

Sara Hailstone, City of Allentown, Director of Community and Economic Development

Donald Snyder, President, Lehigh Carbon Community College

Tamara Weller, Executive Director, Allentown Parking Authority

Northampton County Appointees

Peter Albanese, Green Knight Economic Development Corporation

J. Lee Boucher, President, Bardot Plastics, Inc.

Alicia Karner, Northampton County Economic Development Administrator

Esther Lee, President, Bethlehem NAACP

Dr. Arthur Scott, President, Northampton Community College

Marc Troutman, Area Manager, FirstEnergy

Also part of this process were the following 2010 appointees whose terms have expired:

Donald Bernhard Cynthia Lambert

Richard Daughterty John Mehler

William Erdman William D. Michalerya

David Fink Mayor Ed Pawlowski

Tony Hanna Thomas Stine

ACKNOWLEDGMENTS

The following people headed subcommittees, prepared subcommittee reports, and provided staff

assistance for this project.

CEDS Subcommittees

Cynthia Lambert, Past Chair

Marc Troutman, Chair

Don Bernhard & Bob Wendt, Targeted Industry Clusters

Nancy Dischinat, Workforce Development

Staff for this Report

Lehigh Valley Planning Commission

Michael Kaiser, Executive Director

David Berryman, Senior Planner

Lehigh Valley Economic Development Corporation

Pete Reinke, Vice President of Regional Development

Laurie Demko, Executive Assistant

Special Initiatives Section

Holly Edinger, Lehigh Valley Economic Development Corporation, Alternative Energy

Steve Melnick, Lehigh Valley Economic Development Corporation, Wall Street West

and South Bethlehem Keystone Innovation Zone

Jarrett Witt, Lehigh Valley Economic Development Corporation, Foreign Trade Zone

John Taylor, Lehigh University, Lehigh Valley Life Science Network

Comprehensive Economic Development Strategy Page i

TABLE OF CONTENTS

Section Page

INTRODUCTION .............................................................................................................................. 1

I. PRIORITY PROJECTS FOR THE LEHIGH VALLEY .................................................................... 2

City of Allentown ...................................................................................................................... 3

City of Bethlehem, Northampton and Lehigh Counties ............................................................ 5

City of Easton ... ........................................................................................................................ 9

County of Lehigh .................................................................................................................... 12

Northampton County ............................................................................................................... 16

II. REGIONAL BACKGROUND ......................................................................................................... 20

Economic History of the Lehigh Valley.................................................................................. 20

Geography ............................................................................................................................... 25

Environment ............................................................................................................................ 28

III. POPULATION, LABOR FORCE AND ECONOMY ..................................................................... 29

Population Trends ................................................................................................................... 29

Labor Force ............................................................................................................................. 30

Planning and Development Activities ..................................................................................... 37

IV. ASSESSMENT OF POTENTIALS AND ISSUES TO BE RESOLVED ........................................ 40

Potentials ................................................................................................................................. 40

Issues to be Resolved .............................................................................................................. 49

V. GOALS AND OBJECTIVES ........................................................................................................... 57

VI. PLAN FOR IMPLEMENTATION ................................................................................................... 62

LIST OF TABLES

Table Page

1 Population Projection ........................................................................................................................ 29

2 Total Full Time and Part Time Employment by Industry

Lehigh and Northampton Counties (SIC) ............................................................................... 31

3 Total Full Time & Part Time Employment by Industry

Lehigh and Northampton Counties (NAICS) .......................................................................... 31

4 Largest Employers ............................................................................................................................ 33

5 Average Wages Comparison 2003 - 1Q 2008 Lehigh Valley Employment Clusters ....................... 35

6 Annual Average Earnings per Job for Lehigh County, Northampton County,

Northampton County and Nearby Areas: 1997-2007 .............................................................. 36

7 Labor Force, Employment and Unemployment Statistics for the Lehigh Valley, July 2009 ........... 36

Comprehensive Economic Development Strategy Page ii

8 Economic Development Resources Lehigh and Northampton Counties .......................................... 38

9 Keystone Opportunity Zones in the Lehigh Valley .......................................................................... 42

10 Utilization of the Lehigh Valley International Airport: 2002-2008 .................................................. 47

TABLE OF MAPS

Map Page

1 Regional Setting ................................................................................................................................ 26

2 Surface Terrain .................................................................................................................................. 27

3 Keystone Opportunity Zones, Lehigh Valley, PA ............................................................................ 43

Appendix A: CEDS Committee Data

Appendix B: Committee Summary Reports

Appendix C: Committee Minutes — 2010

Appendix D: Cluster Analysis

Comprehensive Economic Development Strategy Page 1

INTRODUCTION

The Comprehensive Economic Development Strategy (CEDS) refers to the planning process and document generated from it which sets forth the Lehigh Valley’s economic development vision, goals, strategies, and priorities for the future. CEDS work in the Lehigh Valley is accomplished by the Lehigh Valley Economic Development Corporation (LVEDC) and other organizations who participate in various ways on project implementation. The 2010 CEDS represents the eighth major update, with a previous document (formerly referred to as the Overall Economic Development Program) completed in 1999. The CEDS is viewed as the economic development plan for the Valley, with desired outcomes and action steps aimed at:

• Creating better jobs and incomes. • Business and job retention. • Diversifying the economy and strengthening economic sectors. • Exposing new market potentials and business opportunities. • Protecting resources and environment. • Developing and improving infrastructure. • Enhancing the quality of life.

Considerable effort was made in this process to choose the strategies and priorities most likely to produce these outcomes and offering the best returns on investment of time, money, and staff resources. The CEDS and Planning Committee met six times in 2009 and once in 2010. Priorities reflect the input provided by the counties and municipalities in our region concerning their goals and concerns, and are also based on in-depth analysis of the regional economy.


SECTION I: PRIORITY PROJECTS FOR THE LEHIGH VALLEY

This section of the CEDS Report provides a list of projects as presented by both Lehigh and Northampton counties and the cities of Allentown, Bethlehem and Easton that are important to the Lehigh Valley, regardless of EDA eligibility. The list of EDA-eligible projects appears in Section VI. The projects listed here change from year to year and were the projects presented in 2010. The Lehigh Valley Economic Development Corporation (LVEDC) was founded to promote and foster economic prosperity in the Lehigh Valley, while creating a culture of collaboration and regionalism in order to retain, create and grow jobs in the region. Our efforts have made Lehigh Valley a national model for collaboration and have greatly aided economic development efforts. One example of this regional effort is the development of the priority project list for the Lehigh Valley's economic and community development projects. In 2003, LVEDC began working cooperatively with the economic development professionals in the cities of Allentown, Bethlehem and Easton, and Lehigh and Northampton Counties to develop a regional economic development priority project list. During the last seven years, LVEDC’s regional approach to economic development has helped the organization become identified as a leader in building a regional response to local and urban economic development needs. This united effort has identified more than 100 potential economic development projects as priorities for Redevelopment Assistance Capital Program Funding (RACP) and other funding. The Commonwealth has provided funding for over 35 of those projects, putting more than $92 million of public investment to work in Lehigh Valley. These projects have resulted in hundreds of jobs and leveraged hundreds of millions of dollars in direct and indirect private investment. We are grateful for Commonwealth’s confidence in these Lehigh Valley projects. Some of the projects identified as priorities by this process that secured funding in 2009 are: Ben Franklin Technology Incubator, St. Luke’s Riverfront Campus, redevelopment of Martin Towers, SteelStacks Performing Arts Center, Gambet Center at DeSales University and the new Lehigh University Science Center. These projects are added to a distinguished list of Lehigh Valley community development projects that have received state help over the last seven years. LVEDC continues to successfully collaborate and bring together Lehigh Valley’s economic and community development leaders to present to the Commonwealth and other funding sources a unified list of Lehigh Valley priority projects. This section contains a list of the 2010 state priority projects. And this year, LVEDC is publishing a separate list of priority projects for funding under the Federal Department of Commerce’s Economic Development Administration grants.


CITY OF ALLENTOWN, LEHIGH COUNTY

WASTE TO ENERGY FACILITY PROJECT DESCRIPTION

Delta Thermo Energy, Inc. will construct an alternative energy facility which will generate electricity, create green jobs. It will recycle the energy content of biomass and industrial waste in order to generate large amounts of clean, thermal energy. It does not require fossil fuels. The fundamental idea is to locate this plant between the Allentown waste water treatment facility and a PPL power substation. They will take the sludge from the waste water treatment facility plus municipal solid waste collected in the municipality and will process the waste to produce clean energy (electricity, steam and hot water) to eventually power the waste water treatment facility and sell the excess power to the substation. This plant will be the first in the nation to bring this new process/technology into operation. This plant will become the demo facility/plant for other communities to visit as a working example of what could be installed. Approximately 20 jobs will be created in the first 2 phases and over 200 jobs once plant is operating and manufacturing begins for new plant components. STATUS OF PROJECT/TIMELINE

Project to be completed in three phases. It is ready to begin in mid 2010. First phase to be complete in early 2011. Second phase immediately following phase 1 and will be completed by end of 2011. Third Phase will be completed in 2012. Over 1 million dollars is committed from the Department of Energy and another commitment from DOE of at least 20 million dollars is expected shortly.

FUNDING

$2 million dollars is requested. TOTAL PROJECT INVESTMENT/COST: $44 million dollars ALLENTOWN INDUSTRIAL DISTRICT EXPANSION THROUGH FREIGHT RAIL EXPANSION PROJECT DESCRIPTION

The 1.5 mile Barber’s Quarry Branch freight rail extension will directly support the creation and retention of a significant number of manufacturing jobs in Allentown in three specific ways. First, it will greatly improve the capacity of two existing businesses and support their needs to grown and expand while reducing their transportation needs. These two existing businesses are immediately adjacent to the proposed freight rail expansion currently employ 95 people. Their expansions would create an additional 50 jobs. Second, there are two underutilized industrial sites along the BQB that could be redeveloped as modern rail served industrial space that would retain 12 existing jobs and create industrial space that would support approximately 190 new jobs. Finally, the extension of freight rail service is also adjacent to the City’s former incinerator which is industrially zoned and contains 9 acres of developable land which could support the development of a 50,000 square food manufacturing facility, creating another 40-50 jobs. The rail service will support the investment of at least $19,000,000 to redevelop the two existing underutilized sites and an additional $9,000,000 to develop the former incinerator site. In total the requested EDA funding will retain 107 existing jobs, potentially create 290 new


manufacturing jobs and induce the investment of $31,000,000 of additional private and public funding. STATUS OF PROJECT/TIMELINE

Bidding Documents and Permitting: Fall of 2010 Bidding for Rail Construction: Winter 2010 Construction: Spring 2011 to Spring 2012 Completion: Spring 2012

FUNDING

$2 million dollars requested. TOTAL PROJECT INVESTMENT/COST: $2.8 million dollars

BRIDGEWORKS ENTERPRISE CENTER CLERESTORY REPLACEMENT PROJECT DESCRIPTION

AEDC proposes to create a green business incubator in an energy efficient industrial building. The green business incubator will invest resources in facilitating entrepreneurship in green industries with a manufacturing focus. AEDC will focus on home-grown small businesses servicing the energy conservation industry and the renewable energy industry. The goal is to leverage existing local capacity in the production of machined parts, plastics manufacture, and construction materials to grow new businesses for the green economy. These efforts cannot be undertaken without the addressing energy conservation problems with the existing roof. AEDC will use EDA funds to replace the existing acrylic window panels with higher R-Value panes. This would result in the replacement of 2,400 linear feet of acrylic panes at a cost of $1.3 million. It is expected that the renovated center will employ approximately 120 staff.

STATUS OF PROJECT/TIMELINE

Construction will be ready to begin in Fall of 2010. 2011 will be used to complete renovations of existing facility, marketing for green business incubator, and support of continued expansion.

FUNDING

$1 million dollars is requested. TOTAL PROJECT INVESTMENT/COST: $1,300,000

LEHIGH RIVERFRONT PROJECT DESCRIPTION The Lehigh Riverfront Project involves the creation of a mix of uses including retail, entertainment, residential and an anchor building project such as an arena or hotel. Currently the Riverfront includes approximately 26 acres which is underutilized by Valley residents and tourists because of the industrial uses. The beauty of the Lehigh River is completely obstructed by older, industrial uses. The project would feature a riverwalk with the intent of re-connecting the community with the River. The section of the Lehigh River which would border this development is the only navigable section of the Lehigh River. The Riverfront will become a destination for the entire Lehigh Valley and has the potential of the creation 150 to 200 jobs.


Additionally, the construction of the American Parkway bridge will create additional access to the site linking the east side of Allentown to the downtown. STATUS OF PROJECT/TIMELINE Phase I includes acquisition, clean up and infrastructure. Total cost of Phase I is approximately $25 million. Identified land parcels are under site agreement. $5 million in RACP funds have been awarded to the project. Neighborhood Improvement Zone has been approved by the State of Pennsylvania. Phase I is expected to be underway in near future. Phase II includes construction of the buildings. FUNDING TOTAL PROJECT INVESTMENT/COST: Phase I and II Project Total: $175 million RACP award: $5 million to date. Additional funds are necessary for Phase II.

WEST END STREETSCAPE IMPROVEMENTS PROJECT DESCRIPTION This project will result with the following list of key projects that are programmed into a Multi-Year Revitalization Strategy.

Improve crosswalks/sidewalks.

Develop and enhance the organization’s website.

Work with the City to ensure zoning and land use ordinances are consistent with the vision statement.

Place new trash and recycling bins.

Improve street lighting.

Create sustainable merchants’ and residents’ associations.

Create unified advertising and marketing for the business district.

Install benches, planters, banners, trees and other streetscape improvements.

STATUS OF PROJECT/TIMELINE $1.5 million has been secured in RACP funding from the State of Pennsylvania. Additional requests are pending at this time. Conceptual designs are complete. Construction is expected to begin in fall of 2010. FUNDING $1.5 million is under request. TOTAL PROJECT INVESTMENT/COST: $ 3,000,000

CITY OF BETHLEHEM, NORTHAMPTON COUNTY

SOUTH MAIN STREET PARKING

PROJECT DESCRIPTION

Project involves implementation of parking solutions including the construction of a new parking garage adjacent to the existing parking garage at the south end of Main Street in Downtown Bethlehem behind the Main Street Commons. The existing structure will be rehabilitated, and


connected to the new garage once built. The garage will contain approximately 400 parking spaces and will support additional development contemplated by Moravian College at its Priscilla Payne Hurd campus along with existing needs to the Central Moravian Church, Moravian book Shop, Hotel Bethlehem and other businesses along the southern end of Main Street. The total project cost is estimated to be $10 million. STATUS OF PROJECT/TIMELINE

A feasibility study has been completed. Existing parking structure was acquired in Fall 2009, with rehab work commenced in January 2010. The City of Bethlehem has received an earmark for $3.5 million in RACP funding for the garage.

FUNDING

The City of Bethlehem is requesting $1.5 million in RACP funding. The remaining funds will be generated through City and Parking Authority borrowing. TOTAL PROJECT INVESTMENT/COST: $10,000,000

MAJESTIC BETHLEHEM CENTER

PROJECT DESCRIPTION Majestic Bethlehem Center is a 441 acre piece of property located on the former Bethlehem Steel Plant in Bethlehem. The parcel is owned by a Roski/Majestic affiliated entity, Bethlehem Commerce Center, LLC. It is located adjacent to the LVIP VII and it is a major part of the old Bethlehem Steel, Bethlehem Plant. Majestic Realty is one of the largest private developer of commercial real estate in the United States. They have developments in Southern California, Las Vegas, Dallas, Denver, Atlanta and now Bethlehem. Even in this difficult real estate market place, Majestic Realty is planning to begin construction, within the year, on the development’s first building. They have a number of potential end users looking at the site and they are committed to developing in Bethlehem. The initial building will generate $60 Million in construction investment. The site will require $60 Million for environmental remediation, basic site work and infrastructure improvements in order to transform the Majestic Bethlehem Center from a brownfield into a strong real estate site. When the site is fully developed, Majestic Bethlehem Center will have 7.5 Million square feet of LEED certified space, $500 million in construction investment and create between 3,000 and 5,000 jobs.

STATUS OF PROJECT/TIMELINE Northampton County has provided over $13 Million in funding to build Commerce Center Blvd, a road and rail grade separation project that makes the property fully accessible from Route 412 and I-78. Majestic has secured $1.75 Million in RACP funding and is using those funds to begin site work and environmental remediation work on the site. Additionally, Majestic is awaiting word on Growing Greener funding. The application for the initial $1 Million RACP has been completed and the Budget Office has approved the initial use of those funds. Phase I is estimated at $120 million, including $60 million towards remediation, site work, and infrastructure improvements. Majestic received $250,000 in RACP funding.

FUNDING

The City of Bethlehem and Majestic are requesting $5 million in RACP funding and $2 million in EDA funding. TOTAL PROJECT INVESTMENT/COST: $500 million


SOUTHSIDE PARKING STRUCTURE PROJECT DESCRIPTION

This is an integral project to the revitalization efforts for the Southside commercial business district. Aside from the planned First Fridays events which brings thousands of people to this area, everyday business opportunities become limited due to lack of parking. A number of key economic development projects remain reliant on this project to ensure that parking capacity will be available upon build out of these projects. Three sites in the South Side’s commercial business district under consideration and assessed for feasibility. Feasibility Study completed in winter of 2010. Sites under consideration are accessible to transit users, shoppers, businesses and downtown residents.


A feasibility study has been completed for this project, and construction can begin in 2011 pending receipt of grant assistance. FUNDING

A total of $2.75 Million in RACP support is being requested. The remaining funds will be generated through City and Parking Authority borrowing. TOTAL PROJECT INVESTMENT/COST: $5.5 million

4TH AND BROADWAY PARKING GARAGE PROJECT DESCRIPTION

Build a parking garage connected adjacent to the historic Flatiron Building at 4th and Broadway. The garage will have three levels and contain approximately, 450 spaces. It will support both the commercial revitalization of West Broadway, Wyandotte Street, and the adaptive re-use of the Flatiron Building. Major activity representing millions of dollars of investment along both the Broadway and Wyandotte Street corridors will require the addition of more off street parking. This area was targeted for revitalization in the South Side Master Plan completed by Sasaki Associates for the City of Bethlehem. The total project cost is estimated to be $7.5 million. STATUS OF PROJECT/TIMELINE

Acquisition is under agreement. Preliminary design and feasibility are currently underway. Project could be under construction pending receipt of grant assistance in 2011.

FUNDING

The City of Bethlehem is requesting $3 million in RACP funding. TOTAL PROJECT INVESTMENT/COST: $7.5 million

MARTIN TOWER

PROJECT DESCRIPTION The Martin Tower Complex was acquired in May 2006 by local developers with deep roots in the Lehigh Valley with the intent to redevelop the property. The Complex, including a 650,000 square foot 21-story high-rise completed in 1972, was developed by the Bethlehem Steel Corporation as its sole-occupant corporate world headquarters. Today, the building, due to its


age, design, code compliance deficiencies and extensive environmental issues remains obsolete and no longer viable for its originally intended purpose. The ―project‖ consists of the preservation and adaptive reuse of the 21-story Martin Tower into a mixed use facility containing office, retail and residential uses, in conjunction with various amenities including a complete fitness center, public spaces, interior and exterior recreation areas, and convenience store and meeting rooms. STATUS OF PROJECT/TIMELINE The City of Bethlehem and Martin Tower has received commitments for $2.825 million in RACP funding. The project is in final design. FUNDING The City of Bethlehem and Martin Tower are requesting and additional $8.3 million in RACP funding. Martin Tower anticipates an additional $8 to $10 million in TIF funding. TOTAL PROJECT INVESTMENT/COST: $200 million+

LEHIGH UNIVERSITY SCIENCE AND TECHNOLOGY INFRASTRUCTURE

PROJECT DESCRIPTION

A newly constructed state-of-the-art Science, Technology, Environment, Policy & Society (STEPS) building designed specifically for collaborative research, undergraduate teaching of life sciences and other environmental and energy fields, and the renovation of an existing former steel research building, Jordan Hall, for Cellular and Bimolecular Science & Engineering (CBSE) purposes. The newly constructed building will include modern classrooms equipped with the latest technologies to extend the learning experience beyond the classroom, instructional laboratories integrating both experimental and computational facilities, and research laboratories for faculty and students. Renovation of the current Jordan hall space will include undergraduate teaching laboratories, shared research facilities, lecture and meeting rooms, individual PI laboratory space, student and support staff offices for about 20,000 sq. ft. of usable space. This project will allow the University to seek and foster partnerships with medical schools, hospitals, medical device companies, and local entrepreneurs, and is located adjacent to the newly expanded en Franklin Incubator in Building G. Total investment for this project is $103M. This includes new building construction ($55M), renovations of an existing facility ($10M), and other programmatic investments ($38M) by the University such as endowed chairs and graduate fellowships, undergraduate research funds, seed grants for collaboration, new faculty hires, new graduate programs and industry, hospital and other partnerships. Construction of these facilities and the expanded partnership with the City of Bethlehem and the other partners of the Southside Bethlehem Keystone Innovation Zone are essential for the University to contribute to redevelopment of the community and to compete on a statewide, national and international level.


Lehigh’s President and the Board of Trustees have approved the project. The project broke ground in the fall of 2008 with completion expected in 2010. Lehigh University has committed $65 million in capital investments for the project. The City of Bethlehem and Lehigh University received $1 million in RACP funding.


FUNDING

The City of Bethlehem and Lehigh University is requesting $10 million in RACP funding. TOTAL PROJECT INVESTMENT/COST: $103 million

CITY OF EASTON, NORTHAMPTON COUNTY

13TH STREET SILK MILL PROJECT

PROJECT DESCRIPTION The 13th St. Silk Mill project includes the acquisition and redevelopment of several underutilized commercial and industrial properties along N. 13th Street (former Simon Silk Mill and Moon Properties). Proposed redevelopment is a mix of commercial, residential, and open space/community uses with a focus on the creative industries, the arts, and energy efficient technologies. Great progress has been made in 2009. A full site, structural, geotechnical, and building analysis have been completed as well as the development of a master plan. Also, the asbestos and containerized waste remediation has been completed. Additionally, feasibility of a geothermal system has been studied as well as the use of solar technology. The next step in this project is to install the necessary infrastructure to facilitate the rehabilitation of the individual buildings in the complex. Proposals have been received for the engineering and design of this infrastructure. Additionally, cost estimates for the construction of the infrastructure have been generated. The Redevelopment Authority of Easton is in the process of identifying funding sources to complete this important phase of the project. Upon completion of the infrastructure, solidifying and leveraging the private funds needed to complete the building restorations will be viable. Total permanent job creation upon project completion is estimated at 200+. STATUS OF PROJECT/TIMELINE Site and facilities analysis, program development, and asbestos and containerized waste abatement have been completed. A grant with DCED is pending in the amount of $500,000 for the acquisition of a small parcel and the design of the initial infrastructure at the site that is required to facilitate the rehabilitation of the buildings. This work includes the installation of water, sewer, and gas lines as well as the construction of a central boulevard and the parking lot for phase 1. The construction cost for this phase is estimated at $2,000,000. Engineering and construction of these improvements can begin as soon as the funding source is identified and permits are obtained. Funding sources received to date: EPA $ 200,000 (brownfield cleanup grant) EPA/County 477,000 (sub-grant and sub-loan for environ. cleanup) RACP 3,500,000 (acq.) EPA 40,000 (environmental assessment grant) DCED ISRP 1,000,000 (environmental assessment grant) DCED 115,000 (site planning & analysis, bldg. analysis & master

design) Preserve America 150,000 Total $ 5,557,000


FUNDING Financial Request: $1 million for infrastructure construction including water, sewer and gas lines, the main boulevard, and the parking lot for Phase 1.

Acquisition $ 3,500,000 expended Site/Facilities Design 75,000 expended Master Plan Design 75,000 expended Environmental 2,000,000 expended or secured for future lead

abatement work Engineering (phase 1 infr.) 500,000 Grant Pending Engineering (later phases) 500,000 unsecured Phase 1 infr. Construction 2,000,000 unsecured Construction/hard costs 70,000,000 unsecured private investment Total $ 78,650,000

$2,000,000 needed to complete phase 1 infrastructure.

TOTAL PROJECT INVESTMENT/COST: In excess of $70 Million

INTERMODAL/PARKING FACILITY/ NATIONAL HIGH SCHOOL SPORTS HALL OF FAME MUSEUM PROJECT DESCRIPTION

This project consists of the demolition of two parcels totaling approximately 2 acres on the west side of South Third Street in downtown Easton, followed by construction of an intermodal bus/parking facility and the National High School Hall of Fame Museum. The facility will be a parking deck and bus intermodal facility in the rear and a 3-story, 60,000-square foot commercial building along Third Street which will house, in part, the National High School Sports Hall of Fame Museum. STATUS OF PROJECT/TIMELINE

A feasibility study has been completed, and engineering has begun. Property acquisition is underway, and construction is slated to begin in September, 2010.

FUNDING

Acquisition costs: $ 2,500,000 Secured: $ 4,000,000 LANTA Project development: 250,000 $ 3,400,000 RACP Design: 700,000 Site preparation: 1,900,000 Construction of parking deck & intermodal facility: 6,000,000 Construction management: 800,000 Financing: 200,000 Contingency: 500,000 Building construction: 3,000,000

TOTAL PROJECT INVESTMENT/COST: $ 15,850,000


BLACK DIAMOND SOUTH SIDE MILL COMPLEX PROJECT DESCRIPTION

This project consists of the redevelopment of a blighted and structurally unsound mill complex on the city’s South Side at Lincoln and Coal streets. This 4 AC parcel is in an excellent middle class neighborhood adjacent to an elementary school. The complex encompasses a full square block that is prime real estate for a mixed use development of single family, townhouses and neighborhood services.


Funds will be used for acquisition and demolition of the property to provide a developable 4-acre site.

FUNDING

Acquisition costs: $ 1,200,000 Environmental costs: 1,000,000 Demolition costs: 800,000+ Soft costs: 400,000 Construction costs: 8,000,000+ Total: $ 11,400,000+

TOTAL PROJECT INVESTMENT/COST: +/- $ 12 Million

13TH STREET AND INTERSECTION IMPROVEMENTS PROJECT DESCRIPTION

Improvements to 13th Street and the intersections at 13th Street and Wood Ave., one of the Route 22 exchanges in Easton, and 13th St. and Bushkill Drive need to be done in preparation for extensive redevelopment activities at the Silk Mill on North 13th Street and east along the Bushkill Creek as part of the larger Bushkill Creek Corridor RACP Project. These activities have the potential to generate a great deal of additional traffic to an area that is already congested. Additionally, these intersections need to be pedestrian and bike friendly to accommodate this type of traffic to the Silk Mill site and interconnection to the regional trail system.


Design: Summer, 2010 Construction: Spring, 2011 FUNDING

Design: $ 150,000 Construction: $ 1,000,000 TOTAL PROJECT INVESTMENT/COST: $(+/-) $ 1,200,000


LEHIGH COUNTY, CATASAUQUA BOROUGH REDEVELOPMENT OF F.L. SMIDTH PROPERTY

PROJECT DESCRIPTION

F.L. Smidth currently owns a 12.52 acre parcel in Catasauqua along the Delaware and Lehigh Heritage Trail Corridor adjacent to the Lehigh River. The property, along Front Street, makes up 3% of the Borough of Catasauqua. F.L. Smidth is actively marketing the property for sale. Several developers have been interested in the property but the complexities of redeveloping the property, including soil contamination and flood plain issues, are making it difficult to sell. The Borough is interested in having the property redeveloped to help generate needed tax revenue and to help with the revitalization of the community. Catasauqua has been part of the Lehigh Valley Borough Business Revitalization Program for the past four years and has been very proactive about revitalization of their business district. The property is a brownfield as soil investigations have been done on the site and identified raised levels of lead, arsenic, and Benzo(a)pyrene.A Special Industrial Area cleanup plan was approved for the site that outlined a need for capping and deed restrictions to the site. Ground water was not tested on the site, but is a concern for prospective developers. Ground water testing will need to be done before redevelopment of the site can begin. This is a significant project for the Borough, Lehigh County and the Lehigh Valley Land Recycling Initiative (LVLRI). The best reuse for the site has been determined to be multi-use with townhomes, apartments, retails and mixed use units along Front Street. Redevelop efforts could result in $453,000 in new taxes for the Borough. STATUS OF PROJECT/TIMELINE

F.L. Smidth is actively marketing the property. Several developers and the Borough of Catasauqua are considering redevelopment opportunities. LVLRI, DEP, EPA and FEMA have been involved in redevelopment discussions with the Borough. Once a purchaser is confirmed for the property timelines and detailed project plans will be developed.

FUNDING

Amount of funds still needed/being requested for project completion. Please include details on leveraged and/or matching funds. Property acquisition is under discussion. RACP Request: $5M TOTAL PROJECT INVESTMENT/COST: TBD


LEHIGH COUNTY, CITY OF BETHLEHEM REGIONAL DEVELOPMENT – CITY CENTRAL LAND DEVELOPMENT (FORMER MARTIN TOWER COMPLEX) PROJECT DESCRIPTION

The City Central land development (formerly the Martin Tower complex), located in the City of Bethlehem, consists of 53 acres of land and encompasses the 21-story Martin Tower constructed in 1970 with a gross floor area of 664,450 square feet. In addition to the Tower, the property includes three peripheral buildings: 1) the U-shaped Annex, a 253,452 square foot building adjacent to the Tower (connected by a common corridor) was constructed in 1958; 2) the Printery Building, a one story industrial building containing 95,000 square feet with an office area, loading dock and printing reproduction area; and 3) the Central Heating and Refrigeration Building (known as the CH&R Building) is a one-story plus mezzanine level industrial plant building used to generate hot and cold water which heated and cooled the Tower. In total, the former Martin Tower complex contains over one million square feet of building area – all of which has been completely vacant since the last tenants moved out in February 2007. The conditions of the property apply to the respective characteristics of blight as defined in the Urban Redevelopment Act, which resulted in the City of Bethlehem declaring the entire property a Redevelopment Area in 2008. The City Central land development plan is centered around the adaptive re-use and redevelopment of the Tower and surrounding 53-acres as a mixed-use residential, retail and commercial property. A committee made up of members from Lehigh County, the City of Bethlehem and the Bethlehem School District have been involved (with future meetings planned) in the evaluation of financial opportunities for the project, including the development of Tax Increment Financing (TIF) District. STATUS OF PROJECT/TIMELINE

The current owners purchased the property in 2006. Master Development Plans are being finalized for review with the City of Bethlehem (see attached concept plan). RACP funding of $2,825,000.00 has been authorized by the Office of the Budget, with additional RACP funding pending. A meeting with the TIF Committee (consisting of Lehigh County, the City of Bethlehem and the Bethlehem School District) will be scheduled once the Master Development Plan has been reviewed by the City of Bethlehem. The project will be developed in various stages to support the mixed-use elements planned for the property.

FUNDING

Estimated Project Value: The investment for the proposed redevelopment of Martin Tower is approximately $90 million. The planned redevelopment of the peripheral land will exceed $200 million in total value. RACP Funds: $10,000,000 TIF Funds: $10,000,000 Conventional Financing: To be determined Owner Equity: To be determined TOTAL PROJECT INVESTMENT/COST: $200,000,000.00


LEHIGH COUNTY, CITY OF ALLENTOWN REGIONAL DEVELOPMENT – J.G. PETRUCCI AND AZTAR/TROPICANNA LAND AND LSI OFFICE/MANUFACTURING FACILITY PROJECT DESCRIPTION

Coca-Cola Park opened to Lehigh Valley baseball fans in April of 2008. The return of professional baseball to the Lehigh Valley for the first time since 1960 was met with remarkable community support, unprecedented excitement and unrivaled fanfare in 2008. By becoming one of just six Minor League franchises to surpass the 600,000 mark for total attendance, the IronPigs emerged as one of the top draws and premier franchises in Minor League Baseball. Coca-Cola Park, the foremost baseball and entertainment venue in the Minors, drew rave reviews for its intimacy, fan-friendly atmosphere and architectural design. The success and excitement continued through the second session and in year-three Coca-Cola Park will host the Triple-A 2010 All Star Game. Retail, entertainment and sports venues are an economic generator for the community and are often clustered in one area. There are two vacant parcels and one office/manufacturing facility, adjacent to Coca-Cola Park, which are available for development. The first vacant parcel, bordering Dalphin Street is 26 acres and is owned by J.G. Petrucci. The second vacant parcel, consisting of 18 acres, was planned to be used by Aztar/Tropicanna for the development of a slots-based casino if they received the license. The development of these two parcels and the redevelopment or the reuse of the office/manufacturing facility would complete the redevelopment of east Allentown and allow for continued economic revitalization of the community.


The two vacant parcels are available for development. The office/manufacturing facility, currently owned by LSI, is mostly vacant and has been on the market for several years. FUNDING

RACP funding may be appropriate for the project based on final plans. TOTAL PROJECT INVESTMENT/COST: $ To be determined based upon the scope of the project.

LEHIGH COUNTY, MULTIPLE MUNICIPALITIES

TRANSPORTATION – ROADS, BRIDGES, MASS TRANSIT AND AIRPORTS

PROJECT DESCRIPTION

Safe roads, structurally sound bridges, modern airports and efficient mass transit projects are important to the economic stability of Lehigh County and the entire Lehigh Valley. With the number of projects planned, it’s imperative for the region to have an understanding of the process, funding timelines and project contingencies for all projects. Lehigh County continues to collaborate with legislators and funding agencies to ensure the successful funding and timely completion of projects in the region.


Plans for Route 22 have been re-designed and PennDOT is reviewing the changed plans with the region and the MPO. Lehigh County, Northampton County and LVEDC are completing a regional transportation/rail study with New Jersey Transit and Systra to help understand the transportation needs of the region. LANTA has completed a comprehensive strategic plan which looks at the system needs for the next 12 years. Lehigh Northampton Airport Authority (LNAA) has planned and designed upgrades to the Main Terminal at Leigh Valley International Airport. The project is under construction with funding assistance from Federal and Commonwealth agencies. Additional hanger and infrastructure projects are needed to generate additional revenue, particularly in the area of general aviation. STATUS OF PROJECT/TIMELINE

The Transportation Improvement Plan (TIP) has been authorized by the region through 2012. A new TIP is under discussion and will be finalized this year. Route 22 plans need to be finalized and funding needs to be authorized for the project. The federal stimulus funds have been used for updating bridges and a few enhancements to major roads in the Lehigh Valley. The regional transportation/rail study will be completed in late March 2010 and will prompt discussions on how to fund the recommended projects. LANTA’s plan requires increased funding and regional collaboration with the Lehigh Valley Planning Commission and the municipalities. Regional collaboration will be instrumental to the development and adoption of the effective land use plans recommended in the LANTA strategic plan. FUNDING

To be determined once a compete review of all the transportation, mass transit, roads, bridges and airports needs are reviewed and a comprehensive picture of all the needs of the Lehigh Valley are understood. A priority needs to be established and state and federal elected offices need to understand the overall needs for funding in the Lehigh Valley.

LEHIGH COUNTY, WESTERN LEHIGH COUNTY

INFRASTRUCTURE – WATER/WASTE WATER PROJECT DESCRIPTION Effective water and wastewater plans are important to the successful growth of Lehigh County. This is especially important in Western Lehigh County where several of the municipalities have experienced heavy growth in commercial and residential projects. Lehigh County Authority (LCA), Lehigh County and the City of Allentown signed a regional collaboration agreement to help provide for the long term water needs for Lehigh County municipalities. For now, the water needs of the community are being met. The Lehigh County Authority provides the majority of the water and wastewater services. The Lehigh County Authority has developed a 10-year capital plan consisting of $150 million in projects. Additional water supply and wastewater capacity accounts for approximately 50% of the plan. The Lehigh County Authority has $12 million in reserves and other loan funds in hand


and has applied for $28 million in infrastructure development funds from the Commonwealth Financing Authority (CFA) to move forward with the initial projects. The total amount of funding was not authorized by the CFA so additional funds are being requested. Wastewater capacity is depleted in Western Lehigh County. LCA and its signatory communities are preparing to embark on numerous projects associated with its wastewater treatment and conveyance infrastructure to obtain the additional capacity required to meet its short and long-term capacity needs. The projects are interrelated, very large in scope and will require support from LCA staff, consultants, surrounding communities and regulatory staff. STATUS OF PROJECT/TIMELINE The Lehigh County Authority has developed a 10-year Capital Plan which includes $150 million in projects. $28 million in projects are ready for development The Lehigh County Authority has $12 million in funds available and has requested $28 million in Commonwealth Financing Authority (CFA) funds which were not approved. Additional funds are needed to allow the Lehigh County Authority to provide additional capacity, particularly with wastewater to allow expansion of current businesses and development of new businesses to occur. FUNDING Lehigh County Authority: $12 million Pennvest: $7 million Current CFA Requests: $28 million – Not Approved TOTAL PROJECT INVESTMENT/COST: $150,000,000.00 over 10-years

NORTHAMPTON COUNTY

ST. LUKE’S RIVERSIDE HEALTH CAMPUS – BETHLEHEM TOWNSHIP PROJECT DESCRIPTION St. Luke’s Hospital & Health Network plans to develop 500 acres of land into the Riverside Health Campus at the intersection of Rt. 33 & Freemansburg Avenue. When fully developed, it is expected to integrate patient care with teaching, research, housing, recreation and retail activities. This will be one of the largest health care campuses in the country, enhancing the profile of Northampton County and the region as a destination for comprehensive and state-of-the-art health care. Initially 685 direct new jobs with an estimated $28 million annual payroll will be created along with 715 indirect new jobs with an estimated $24 million payroll impact. The Health Complex portion, which encompasses 40 acres of the project, represents 251,000 square feet of new space consisting of a 77,000 square foot medical office building, a 126,000 square foot acute care inpatient hospital, and a 48,000 square foot free standing Cancer Center has an estimated expense of $96 million. This portion of the project is scheduled to begin in late Spring of 2010 and finish in late 2011. Planned future phases could include a medical school, pharmaceutical research center, hotel and conference center, school of nursing, life care and a retirement community and represents about 4,000,000 square feet of new construction. STATUS OF PROJECT/TIMELINE Property acquisition totaling $40 million is completed. Preliminary site work is completed.


Building Pad Construction is scheduled to be completed in 2010 Health Complex construction scheduled to begin late Spring 2010 and finish in late 2011. FUNDING $4,950,000 in RACP funding has been committed to date. TOTAL PHASE 1 ( ROADS, LAND, INFRASTRUCTURE, CONSTRUCTION COSTS) PROJECT INVESTMENT/COST: $147,599,976

RTE. 33/TATAMY INTERCHANGE – PALMER TOWNSHIP

PROJECT DESCRIPTION A Point-of Access Study (POA) was completed at the expense of Chrin Companies and submitted to PennDOT in September 2009. Approval of the POA is expected by June 2010, which could provide for the completion of the interchange in 2013. In 2008, then State Senator Wonderling put forth a $14 million request in the PA Capital Budget, which represents approximately one-half the estimated cost to complete the interchange Construction of the interchange may be financed using both public and private monies. The interchange will open up the entire 800 acres to development, potentially resulting in the creation of over 6,700 jobs once full build-out of the entire Centre is achieved. STATUS OF PROJECT/TIMELINE Interchange plans are moving forward. Senator Mensch attended a meeting March 12, 2010 with Chrin Companies, Northampton County, LVEDC and other interested parties in order to move the project forward. POA approval expected June 2010 and construction is expected to be completed in 2013. FUNDING Amount of funds still needed/being requested for project completion. Please include details on leveraged and/or matching funds. Interchange Funding. 2008 RCAP request for $14 million to cover infrastructure and construction. Possible $6.9 million in Northampton County RZEDBs. TOTAL PROJECT INVESTMENT/COST: $25,000,000

LEHIGH VALLEY ENTERTAINMENT COMPLEX – PALMER TOWNSHIP PROJECT DESCRIPTION

The Lehigh Valley Entertainment Complex will seat 8,000 - 10,000 for sporting events, including AHL ice hockey, indoor soccer, lacrosse and basketball, national concert tours, family entertainment and related shows, with surface parking for approx 3,500 cars. The complex is proposed as part of the 800-acre Chrin Commerce Centre, located in Palmer Township. The entertainment complex staff and the team will create 200 jobs. The estimated economic value to the community for both the arena and the interchange will be in the millions of dollars within two years of completion. The annual positive economic impact will be $25 -$35 million. The entertainment complex staff and the team will create 200 jobs.


STATUS OF PROJECT/TIMELINE Entertainment Complex. Northampton County is proposing this site to the AHL Philadelphia Phantoms owners. Site selection is expected on or before July 30, 2010. The complex is expected to open no later than the end of September 2013. Estimated costs are $60 million with approximately 50% public funds leveraging 50% private investment in the project. Possible sources of public funding are the state RCAP and/or county TIF and the hotel tax. Interchange is in the planning phase. PennDOT is expected to approve the Point of Access Study by the end of June 2010. FUNDING Entertainment Complex Funding. Developer is seeking significant public investment in support of the project. Various economic and infrastructure development resources will need to be accessed to make this project feasible. There is a $30 million line item in the 2006 PA Capital Budget available for potential funding. Project will have private investment component of approximately 50% of the project cost. ENTERTAINMENT COMPLEX TOTAL PROJECT INVESTMENT/COST: $60,000,000

CHRIN COMMERCE CENTRE – PALMER TOWNSHIP AND TATAMY BOROUGH PROJECT DESCRIPTION The Chrin Commerce Centre is a unique multi-phased development to be constructed on an 800-acre site along Route 33. Phase I, the Business Park, consists of 11 lots primarily designed for light industrial and offices. This 77-acre tract received subdivision approval in 2008 and is home to Porsche’s 130,000 square-foot Northeast Retail Support Center, which received LEED Gold certification for environmental sensitivity. Chrin is exploring alternative development scenarios for Phases II and III ranging from town center and mixed-use development to office and light industrial. Current projections estimate that over 5,000 jobs can be created with the build-out of these phases. PennDOT required on-site and off-site traffic improvements with a cost $2,195,354. In May 2009, An Infrastructure Development Program Grant (IDP) was approved for the development, in the amount of $1.25 million. Approximately $4 million, excluding land costs, has been privately invested by Chrin Companies for on-site infrastructure development to-date. A key component in the ability to continue to attract top tier companies and employment is the construction of an interchange at Route 33 and Main Street. STATUS OF PROJECT/TIMELINE Detailed Phase I engineer’s construction costs estimates are completed and all on-site and off-site traffic improvements are scheduled for completion in 2010. $600,000 of the Pennsylvania IDP grant proceeds have been applied to improvements completed in 2009. The remaining improvements are expected to be completed in 2010. The Porsche facility was completed and occupied in July 2009. FUNDING Phase I Funding Leveraged Investment: $39,330,000 Equity in flex building and on-site improvements: $3,445,354 PA Industrial Development Program Grant for off-site traffic improvements: $1,250,000 TOTAL PROJECT INVESTMENT/COST: $44,025,354 for Phase I


SLATE BELT INDUSTRIAL DRIVE – PALMER TOWNSHIP AND SLATE BELT INDUSTRIAL DRIVE PROJECT DESCRIPTION PA Routes 512 and 115 run through the Borough of Wind Gap. Route 512 is classified as a minor arterial roadway with current Average Daily Traffic (ADT) of approximately 17,000 vehicles per day, including 700 trucks per day. In the borough, PA Route 512 is characterized by one thru lane in each direction with on-street parking on both sides of the road. The SR512 and SR1007 corridor receives significant through business traffic from the north going south along SR1007 and east along SR 512 through Plainfield Township, Washington Township and Bangor Borough. The construction of Industrial Drive will provide valuable local access which is required for the beneficial development of a 10-Lot Industrial Park. This Industrial Park will redevelop an existing Brownfield Site, and will provide over one mile of new industrial frontage. The development will also include infrastructure improvements including sanitary sewer mains, pump station, water mains, and additional storm water drainage improvements. A future Phase 2 bypass road is envisioned to further alleviate traffic congestion within the Borough. Phase 2 will connect Industrial Drive with PA Route 33 via a new south interchange. The benefit projected by these improvements is a reduction of 6,200 vehicles per day (21%) due to the Phase 1 and 2 connector roads when fully developed. STATUS OF PROJECT/TIMELINE Detailed engineer’s construction costs estimates are complete, as well as on-site storm water improvements. To date, $600,000 has been spent on Engineering, Environmental and Legal costs and approximately $350,000 has been spent on the storm water improvements. FUNDING Construction $8,262,991 NEPA and Permit Renewal $300,000 Contingencies $743,669 Engineering, Legal, Administrative $743,669

TOTAL PROJECT INVESTMENT/COST: $10,050,329


SECTION II: REGIONAL BACKGROUND The Lehigh Valley region (Lehigh and Northampton counties) is located in the central-eastern portion of Pennsylvania; within 300 miles of the major metropolitan areas of the eastern United States. In 1978, both counties adopted Home Rule charters, which provide for government by nine-member elected legislative bodies and an elected County Executive. Within the two-county region, there are 62 municipal governments, 17 school districts, and various special purpose authorities.

ECONOMIC HISTORY OF THE LEHIGH VALLEY

The Lehigh Valley was settled in the early 1700’s by German and Scotch-Irish farmers who established farmsteads and small villages in the southern part of Lehigh and Northampton counties. The Walking Purchase was negotiated between the Delaware Indians and the Proprietary British Government in 1737. The Walking Purchase transferred to the proprietary government ownership of all land that now comprises Lehigh and Northampton counties. It made the area available for future settlement. Bethlehem and Nazareth were settled by the Moravian religious sect in the 1740’s. They were the first towns in the region. Bethlehem was planned and located to serve as the economic and trade center for the Moravian Community in the region. Easton was planned and located by the British Proprietary Government at the Forks of the Delaware in the 1750’s to serve as a trade center for the newly settled region. In 1752, Northampton County was created out of Bucks County to promote Easton as the county seat and trading center. Indian uprisings between 1755 and 1763 slowed growth, particularly north of the Bethlehem-Easton area. In 1762, Allentown was founded on land owned by William Allen in the fort of the Jordan Creek and Little Lehigh Creek. The site was chosen for its potential trade and milling advantages. Influence of the Pennsylvania German settlement The years 1763 to 1790 were characterized by the settlement of the region by Pennsylvania German farmers in the region. Farmers were principally self-sufficient, depending upon their own crops and using a barter economy to obtain necessities they could not produce. Poor transportation and the scarcity of money inhibited commercial trade. Industry and commerce was initiated on a small scale during this period in the form of small shops such as weavers, tanners, shoemakers, gunsmiths and other artisans. Flour and gristmills were also located along swift flowing streams. The immigration of the Pennsylvania Germans continued through the years 1790 to 1830. During this 40-year period, the region benefited from an increasingly prosperous agricultural economy. Farmers prospered while villages increased in number. Taverns, gristmills and tanneries were common in villages. A few villages had distilleries, saw mills, limekilns and iron furnaces. Road and bridge improvements around the turn of the century facilitated trade and travel over stagecoach routes.


Easton was the fastest growing and most prosperous of the region’s towns from 1790 to 1830, benefiting from its location and county seat status. Bethlehem, under Moravian ownership and control, grew at a more moderate rate. Allentown was a smaller town at this time, but grew due to its importance as a county seat and farm trade from the area. Allentown became the county seat of Lehigh County in 1812, the year Lehigh County was created from Northampton. Mining and the Industrial Revolution The industrial revolution in the Lehigh Valley was characterized by the mining of anthracite coal, slate, iron and zinc ore, and the building of canals and railroads. The mining of anthracite began in the counties to the north of the Lehigh Valley. By 1830, coal was being transported down the Lehigh River Canal to Easton and from there to Philadelphia and, later, to New York. In addition to coal, the transportation potential of the canals created a greatly expanded trade area for the products of the agricultural economy of the Lehigh Valley. The Lehigh Canal was a major force in land use changes and the creation of new commercial settlements. The mining of iron and zinc, slate and limestone began in the Lehigh Valley during this same period. A technological breakthrough in the 1830’s perfected the anthracite smelting process and resulted in a major increase in the production of iron in the region. By 1855, large iron furnaces using steam power instead of waterwheels could be found in the region. Over this same period, the mining of iron ore also increased greatly. Substantial zinc mining and smelting occurred in the Saucon Valley between 1845 and 1855. The Lehigh Canal was vital to the slate industry due to the transportation difficulties inherent in moving slate. Slate was first quarried commercially near Slatington in 1844. By 1850, five major quarries were operating along the Slate Belt from Slatington to Bangor. Cement kilns were established in Allen Township in the 1850’s. The cement industry, however, did not reach its peak until much later. The growth of mining, particularly anthracite, led to the growth of railroads in the region. The railroads were an improvement in transportation over the canals in that they were less affected by weather and terrain and less restricted in routing. The Lehigh Valley Railroad Line from Mauch Chunk to Phillipsburg, NJ was completed in 1855 primarily to carry anthracite coal to major eastern markets. The Lehigh Coal and Navigation Company, builders of the Lehigh Canal, completed construction of a railroad line from Wilkes-Barre to Phillipsburg in 1868. The line, called the Lehigh and Susquehanna, was also principally a coal carrying line and was sold to the Central Railroad of New Jersey in 1871. The Philadelphia and Reading Railroad was also an influence on the region through its purchasing and leasing of smaller railroads in the valley. The most important was the purchase of the North Pennsylvania Railroad, which had a line from the coalfields to Philadelphia through the Lehigh Valley. By 1890, the last of the major railroad routes had been laid out in the Lehigh Valley. With the growth of the railroads, the industries of the region increased the value of their products from $4.7 million in 1850 to $41.9 million in 1890. Employment increased from 3,419 in 1850 to 19,539 in 1890. Iron and Steel The iron and steel industry continued to expand rapidly in the 1870’s. By 1873, railroads, anthracite, limestone and iron ore made iron production the leading industry in the region in terms of product value. Many iron furnaces existed along the Lehigh River at Coplay,


Catasauqua, Allentown, South Bethlehem, Glendon and South Easton. Furnaces were also located in Alburtis, Emmaus, Lower Saucon Township and Allentown. After 1873, local mining began to decline and ore was transported into the valley. Competition reduced the number of companies through consolidation and shutdowns. Bethlehem Iron Company began in 1865 and expanded to become the region’s largest by 1890. By 1890, many manufacturers in the region were dependent upon the iron and steel industry for raw materials and machinery. During the same period, other important product manufacturers in the region were flour and gristmills, tanning and shoemaking, cigar making, zinc oxide making and smelting. During the 1890’s, the production of cotton, wool cloth and raw silk became important. The slate and cement industries north of the cities were also beginning to employ substantial numbers of people. Industrialization No company has affected physical growth in the region as profoundly as Bethlehem Steel Corporation. By 1890, success in the iron and steel industry required tremendous capital, worldwide markets, research, sophisticated marketing, and control of production from mining to consumer. Bethlehem Steel was the only company in the region to meet these requirements and survive past the 1930’s. In the early 1900’s, Charles M. Schwab organized the Bethlehem Steel Corporation, headquartered in South Bethlehem, with subsidiaries throughout North America. Acquisitions and expansion continued at a fast pace through the 1920’s. By 1930, Bethlehem Steel was the second largest producer of steel in the United States. Bethlehem Steel’s primary impact on physical growth has been in the Bethlehem area. The presence of Bethlehem Steel, however, has also encouraged companies fabricating iron and steel products to locate in the region. By 1920, metal and metal products were well established as the principal industry in the region. In 1875, David O. Saylor manufactured the first Portland Cement at the Coplay Cement Company. Portland Cement was more durable, uniform and harder than natural cement. This discovery, together with improved kilns and a growing demand for superior building products, resulted in the rapid expansion of the cement industry in the region. In 1900, about 70 percent of the Portland Cement in the United States was produced in the Lehigh Valley region. Relatively large numbers of independent companies were initially involved and continued to be involved in cement production. Plants existed at or near Martin’s Creek, Nazareth, Bath, Stockertown, Sandts Eddy and Northampton in Northampton County, and Egypt, Ormrod and Fogelsville in Lehigh County. Cement production continued to increase in the region until 1930 when it hit 27 million barrels annually. Not until the 1960’s did the cement industry of the region begin to face serious economic problems due to competition from other cement producing areas. The textile and clothing industry began to grow in the region during the 1880’s due to the arrival of skilled workers and the advent of the silk production industry. The immigration of Eastern Europeans for the steel and cement industries created a pool of skilled labor in the spinning, weaving and sewing trades. The region also benefited from being close to major eastern markets. The spinning and weaving of silk cloth was important in the region from 1880 to 1930. With the declining demand for silk, the textile industries switched to other fabrics and man-made fibers.


The garment industry began in the region about 1910 with decentralization from New York City and the increasing demand for ready-to-wear clothing. The industry was then and is now characterized by many small companies in a highly competitive market. There have always been many individual failures and many new company starts. The primary influence of the textile and garment industry in the region was in the employment of thousands of workers. The importance of agriculture has declined in the region since 1890 although it has continued to play a significant role in the economy of the valley. Technological improvements and scientific methods aided the farmer in increasing crop yields despite the fact that the percentage of the population employed in agriculture declined drastically. During the twentieth century, the growth of industry and changes in lifestyle in the region created greatly increased demand for retail and wholesale trade and services. New products and marketing techniques created demand for electrical appliances, automobiles, gasoline and home heating furnaces. Around the turn of the century, department stores began to appear in downtown areas. The Hess Brothers opened the first department store in the region in Allentown in 1897. Other department stores located in the three cities of the region during the early 1900’s. Chain stores appeared in the 1920’s with branch stores of national organizations replacing the neighborhood variety and grocery stores. Post World War II years saw the rise of the shopping center and suburban discount store following residential growth in suburban areas. Modern Times The building of U.S. Route 22 between 1952 to 1957, created great opportunity for development of the suburban perimeter north of the valley’s urban core. In 1959, the first section of the Lehigh Valley Industrial Park (LVIP) was opened to developers at the Airport Road interchange of U.S. 22. Additional LVIP sections opened in 1964 and 1974. In 1966, the Whitehall Mall opened at the MacArthur Road interchange, joined in 1976 by the Lehigh Valley Mall in that same vicinity. The highway improved travel between the cities of the region and brought a wider labor pool accessible to local employers. U.S. 22 was a direct link to New Jersey and New York City. With the completion of Pa. 309 in 1958 and Pa. 33 in 1973 (both connecting to U.S. 22), inter-regional transportation was improved to the markets of suburban Philadelphia and New England ports. With immediate access to U.S. 22, the ABE Airport (opened in 1929) grew to a regional-scale facility. A modern terminal was built in 1975, and International Full-Service Port of Entry status was conferred in 1985 by the U.S. Customs Service. Passenger traffic continues to grow. The continuing dispersal of the regional population to suburban and rural areas and the reliance upon automobiles has resulted in the decline in use of mass transit (the public bus system) and the discontinuation of passenger rail service connecting the region to New York and Philadelphia. In 1976, Conrail took over the rail freight service in the area. While a major east-west switching yard is located in Allentown and some local industries are still served by rail, numerous lines have been abandoned. The completion of I-78 in 1989 facilitated motor freight service to the region. The late 1960’s and the 1970’s were periods of rapid suburban industrial construction. In 1966, the Lehigh County Authority was established to plan the provision of sewer and water service in western parts of the Lehigh Valley; by 1971 the first interceptor sewer had been built to serve industrial plants such as Kraft Foods and Schaefer (now Guinness) Brewing Company and the Iron Run Industrial Park. The establishment of suburban industrial parks drew some companies


away from their urban locations, such as Binney & Smith, Inc., Victaulic Co. of America and James River Dixie-Northern Inc., which have relocated from close-in sites to Easton to the Forks Township industrial area. Before 1970, office space construction was slow in the suburbs. During the 1975-1990 period, most office space was built in the suburbs. Suburban industrial parks attracted offices of a number of major insurance companies. General purpose, luxury office space was built to meet the needs of expanding industries such as health services, utilities and business services. Expansion of office space during this period was in response to the shift from a manufacturing-based economy to a service-based economy. In addition, in the 1975-1990 period, government programs began to encourage the redevelopment of older areas (the cities and boroughs): Allentown, Bethlehem and Easton experienced some commercial and residential renovation and construction projects. Reuse of former factory buildings (e.g. for apartment buildings) in the boroughs has occurred and the older housing stock is becoming attractive to renovators or young persons unable to afford suburban housing costs. The national recession of 1980-1981 lingered in its effects in the Lehigh Valley through mid-decade. People began to realize that a new diverse regional economy must be built to shelter citizens from the high unemployment caused by cycles in demand for durable products such as steel and transportation equipment. In the early 1980’s, numerous economic development organizations were created, including the Northampton County Development Corporation, the three cities’ economic development corporations, the Ben Franklin Partnership, the Lehigh Valley Partnership, and the Lehigh Valley Convention and Visitor’s Bureau. Their roles differ, but they share the goal of a healthy future Lehigh Valley economy. Immigration of new residents and businesses from New Jersey started in the early 1980’s and continues to be the primary population growth force in the early 2000’s. The 1980’s real estate boom quickly escalated both land and housing values in the Lehigh Valley. During the 1980’s and 1990’s, Lehigh and Northampton Counties concentrated their development efforts on highway improvements such as the widening of Route 512 and the completion of the three-mile link in Route 33 between Route 22 and I-78, relocation of Route 222 in Lehigh County and improved road access to the airport. In Northampton County the major business and industrial growth corridor of the future is expected to be along Route 33. The Route 33 link was completed in 2002. In Lehigh County, it is expected that development will continue at a rapid rate in the Route 222 and Route 100 corridors coupled with the Route 222 bypass, scheduled for completion in 2004. In the mid to late 1990’s there was a resurgence of interest in renewal of the downtown areas of Allentown, Bethlehem and Easton. All three cities are making progress. Easton’s Two Rivers Landing/Crayola Factory has sparked new business activity in downtown Easton. Business and investment is also expanding in downtown Bethlehem as a result of tourism, successful historic preservation activities and renewal of numerous properties in and around the Downtown. Allentown is also making progress in the downtown renewal activity. The Hamilton Mall environment is being transformed with removal of the canopies, opening of the Lehigh County Government Center in the refurbished Leh’s building, development of Portland Place, refurbishment of Symphony Hall and redevelopment of the 9th and Hamilton site by PPL. In the late 1990’s, the Lehigh Valley Economic Development Corporation (LVEDC) was created to promote economic growth activities regionally. LVEDC has a vigorous marketing program that promotes Lehigh Valley interests nationally and internationally, LVEDC has also become the prime point of contact for the retention and attraction of business in the Lehigh Valley.


GEOGRAPHY Although there are numerous ways to describe the geography of the Lehigh Valley, from a local political, historic and cultural perspective the Lehigh Valley is mainly identified as the area bounded by Lehigh and Northampton Counties, Pennsylvania. The counties are situated in the east-central portion of Pennsylvania approximately 90 miles west of New York City and 60 miles north of Philadelphia. The two counties form the core of a metropolitan area defined by the Bureau of the Census as the Allentown-Bethlehem-Easton Metropolitan Statistical Area. The Lehigh-Northampton county area contains three cities, twenty-seven boroughs and thirty-two townships. The cities of Allentown, Bethlehem and Easton and the suburban fringe on their boundaries comprise a large share of the regional population. In 2000 seventy-seven percent of the population of the Lehigh Valley lived in the cities, boroughs and townships in the urban core. Most of the urban infrastructure (public sewer, water and major roads) in the region is located in these municipalities. Predominant geographic features include the Blue Mountain at an elevation of 1,700 feet separating the counties from Monroe and Carbon counties to the north, the South Mountain at an elevation of 1,000 feet which forms a scenic mountainous backdrop for Allentown, Bethlehem and Easton and separates the cities from the suburban areas to the south. The Lehigh River runs south from the Blue Mountain to Allentown and then east to the Delaware River at Easton. The Delaware River forms the eastern boundary of the region, and is the longest free-flowing river east of the Mississippi. It forms a natural border between Pennsylvania and New Jersey. The southern half of the valley is limestone area with gentle slopes. It contains most of the prime agricultural land of the region. The northern portion of the Lehigh Valley is underlain by shale, and is higher in elevation and rougher in terrain. It contains less productive agricultural land. South of the South Mountain, there is a complex pattern of valleys and hills with some prime agricultural lands interspersed with steeply sloping wooded areas.


ENVIRONMENT Two major rivers flow through the region, the Lehigh and the Delaware. The Coplay, Jordan and Little Lehigh creeks in the west, the Saucon Creek in the south, and the Monocacy, Bushkill and Martins creeks in the north, all drain into the Lehigh or Delaware rivers. The topography ranges from elevated regions along the northern edge of the area and along a line just south of the three cities to the relative flat, undulating terrain of the central portion of the Lehigh Valley. Elevations vary from 200 feet above mean sea level (MSL) along some parts of the Lehigh and Delaware rivers to greater than 1,695 feet MSL on the Blue Mountain and 1,042 feet MSL on South Mountain. There are over 1,000 wetland sites in the Lehigh Valley, with more than 300 in Upper Mount Bethel Township, Northampton County. Forty-six of the 62 municipalities in the Lehigh Valley are underlain entirely or in part by carbonate rock. The area enjoys a moderate climate, with an annual average temperature of 51 degrees Fahrenheit. Temperatures are rarely above 100 degrees or below 0 degrees Fahrenheit. Precipitation is generally ample and reliable, with destructive storms seldom occurring. The growing season is 170 to 185 days.


SECTION III: POPULATION, LABOR FORCE AND ECONOMY POPULATION TRENDS

In the Lehigh Valley, population growth is caused by natural increases (more births than deaths) and migration of people into the region. Population projections for the Valley are most strongly influenced by the migration of people in or out of the region. Over the past several decades, both Lehigh and Northampton counties have experienced a strong migration of people into the area. During the 1990s, Lehigh County added about 11,900 people from migration and Northampton County added about 13,300 people. These numbers reflect net migration — meaning that, even though people moved both in and out of each county, those moving in outnumbered those that left by these totals. Migration accounted for more than half of Lehigh County’s total population growth of 20,959 during the 1990s and two-thirds of the 19,961 population growth in Northampton County during the decade. From 2000 to 2005, Lehigh County added about 15,005 people from migration and Northampton County added about 18,111 people. These numbers reflect net migration, i.e. the difference between people moving in and people moving out. Migration accounted for more than 82% of Lehigh County’s total population growth of 18,434 during the early 2000s and 88% of the 20,698 population growth in Northampton County during the five year period. Lehigh Valley Planning Commission population projections for Lehigh and Northampton counties and the Lehigh Valley total are presented in Table 1.

TABLE 1 POPULATION PROJECTION

2000 Population

Population Projections 2010 2020 2030

Lehigh County 312,090 342,932 370,644 399,721

Northampton County 267,066 301,416 333,382 368,135

Lehigh Valley 579,156 644,348 704,026 767,856

Source Lehigh Valley Planning Commission; U.S. Census.

• The Lehigh Valley population will increase by 188,700 people from 2000 to 2030 or

by 32.6% over three decades. This projected increase in population represents faster growth than experienced over the previous 30 years (1970-2000) during which the population increased by 23.3%.

• Lehigh County’s population will increase by 87,631 people from 2000 to 2030 – 9.4% per decade. In comparison, the population grew at a rate of 7.4% per decade over the previous 30 years.

• Northampton County’s population will increase by 101,069 people from 2000 to 2030 – 12.6% per decade. In comparison, the population grew at a rate of 8.2% per decade over the previous 30 years.

• Northampton County’s population over the projection period will increase faster than Lehigh County’s population because of additional migration. Lehigh County will experience a net migration of about 67,000 people over the projection period compared to the 102,000 people Northampton County will gain due to migration over the same period. Thus, Northampton County is projected to receive about 1.5 times as much net migration as Lehigh County.


• Northampton County’s net migration is stronger than Lehigh County’s because it is closer to the main inflow of people from New York and New Jersey.

Age of the Population

According to the 2000 Census, the average median age of residents in the Lehigh Valley was 38.4 years. Approximately twenty-four percent of the population were under 18 years and approximately sixteen percent were 65 years and older.

The age distribution will be changing dramatically over the projection period as the baby boomers move from the mid-years of the population to the older years. A graph and table showing population change by age group for 2000 to 2030 can be found on page 7. Several key elements of the projected population change are as follows:

• In 2000, 24.8% of the Lehigh Valley population was 55 or older. It is projected that in

2030 31.7% of the regional population will be 55 or older. • The number of people in the Lehigh Valley that are 55 or older will increase by

69.4% from 143,811 in 2000 to 243,589 in 2030. • In 2000, 15.8% of the Lehigh Valley population was 65 or older. It is projected that in


72.6% from 91,464 in 2000 to 158,006 in 2030. • In 2000, 8.0% of the Lehigh Valley population was 75 or older. It is projected that in


63.7% from 46,192 in 2000 to 75,594 in 2030. LABOR FORCE Overview The civilian labor force includes all people over 16 who are working or actively seeking work. An expanding labor force is necessary to supply business with a pool of workers. The composition of labor force in the Lehigh Valley has changed over time. The growth rates and demographic changes in population have clear implications for a region’s workforce development. Steady population growth can produce the continued labor force expansion that is critical to meeting the labor demands of area employers. The age structure of the population is also critical, as an imbalance of workers entering and leaving the workforce can result in shortages or oversupply of workers in specific occupations or entire industries. The racial and ethnic makeup of the population also has workforce implications, impacting regional labor force participation rates and the diversity of available workforces.


TABLE 2 TOTAL FULL TIME AND PART TIME EMPLOYMENT BY INDUSTRY

LEHIGH AND NORTHAMPTON COUNTIES (SIC)

1970 1980 1990 2000

Total full-time and part-time employment 224,198 255,978 288,970 324,309

Wage and salary employment 201,344 228,476 246,629 279,240

Proprietors employment 22,854 27,502 42,341 45,069

Farm proprietors employment 1,675 1,358 1,045 1,094

Nonfarm proprietors employment 21,179 26,144 41,296 43,975

Farm employment 2,509 2,337 1,622 1,482

Nonfarm employment 221,689 253,641 287,348 322,827

Private employment 201,278 229,335 260,496 291,936

Agricultural services, forestry, fishing and other 609 809 1,974 NA

Mining 604 476 456 NA

Construction 10,055 10,633 16,041 17,125

Manufacturing 93,923 88,096 61,509 53,331

Transportation and public utilities 11,042 12,839 14,195 18,629

Wholesale trade 8,080 10,766 11,904 13,847

Retail trade 31,632 41,256 48,801 54,746

Finance, insurance, and real estate 10,559 14,595 21,271 22,846

Services 34,774 49,865 84,345 107,985

Government and government enterprises 20,411 24,306 26,852 30,891

Federal, civilian 1,550 1,653 2,173 2,846

Military 2,630 1,930 2,440 1,851

State and local 16,231 20,723 22,239 26,194

State government NA 2,495 2,378 2,362

Local government NA 18,228 19,861 23,832

Source: Regional Economic Information System; Bureau of Economic Analysis; U.S. Department of Commerce, Table CA25.

TABLE 3

TOTAL FULL TIME & PART TIME EMPLOYMENT BY INDUSTRY

LEHIGH AND NORTHAMPTON COUNTIES (NAICS) 2002 2003 2004 2005 2006 2007 2008

Total employment 323,741 326,904 333,010 339,990 350,831 354,367 358,273

Wage and salary employment 278,532 280,037 284,223 288,926 295,200 298,959 296,024

Proprietors employment 45,209 46,867 48,787 51,064 55,631 55,408 62,249

Farm proprietors employment 1,092 1,066 1,066 1,074 1,070 1,062 870

Nonfarm proprietors employment 44,117 45,801 47,721 49,990 54,561 54,346 61,379

Farm employment 1,461 1,383 1,381 1,375 1,387 1,366 1,177

Nonfarm employment 322,280 325,521 331,629 338,615 349,444 353,001 357,096

Private employment 290,585 292,979 298,680 305,299 315,776 318,773 322,082

Forestry, fishing, related activities, and other NA NA NA NA 113 114 114

Mining NA NA NA NA 95 100 116

Utilities 3,319 3,187 3,116 949 1,016 966 977

Construction 17,627 18,006 18,949 20,058 21,391 20,583 19,776

Manufacturing 43,461 39,853 38,214 34,379 33,026 32,341 31,530

Wholesale trade 11,367 11,323 11,741 12,636 13,368 13,754 13,873

Retail trade 38,725 39,769 40,270 40,628 40,712 40,204 39,355

Transportation and warehousing 11,276 11,722 11,466 12,563 14,487 14,534 14,373

Information 7,318 7,327 7,151 7,132 6,982 6,965 6,990

Finance and insurance 15,421 15,502 15,460 15,776 16,413 16,191 16,836

Real estate and rental and leasing 9,127 9,135 9,199 9,610 10,016 11,748 14,774

Professional, scientific, and technical services 15,024 14,979 16,012 16,746 18,049 17,522 18,583

Management of companies and enterprises 3,151 4,912 4,917 10,459 10,077 10,379 9,882

Administrative and waste services 18,307 18,262 20,288 20,843 22,281 23,468 22,784

Educational services 9,821 9,731 9,907 10,218 10,568 11,392 11,278

Health care and social assistance 40,756 42,493 44,102 44,982 47,187 48,596 49,924

Arts, entertainment, and recreation 6,301 6,481 6,737 6,957 7,172 7,159 7,369

Accommodation and food services 19,048 19,901 20,647 21,012 21,626 21,969 22,561

Other services, except public administration 19,535 19,391 19,563 19,402 20,375 19,995 20,092

Government and government enterprises 31,695 32,542 32,949 33,316 33,668 34,228 35,014

Federal, civilian 2,216 2,246 2,161 2,190 2,146 2,190 2,150

Military 1,953 2,032 1,893 1,875 1,915 1,806 1,760

State and local 27,526 28,264 28,895 29,251 29,607 30,232 31,104

State government 2,441 2,502 2,608 2,593 2,570 2,561 2,600

Local government 25,085 25,762 26,287 26,658 27,037 27,671 28,504

Source: Regional Economic Information System; Bureau of Economic Analysis; U.S. Department of Commerce, Table CA25N.


Labor Force Growth

The Lehigh Valley labor force growth between 1980 and 2000 was approximately 24%. Between the years 2000 and 2020, it is forecast that labor force growth will slow to about 12.0% due to the aging of the labor force and the leveling out of female participation rates. One reason for growth of the labor force in past decades has been the entry of women into the labor force. In 1980, 42% of the labor force was female. This share grew to 47% in 2000. It is likely to be about the same in 2020.

Employment

Tables 2 and 3 shows the growth of total employment and various employment sections since 1970. Like many other industrial areas in Pennsylvania and northeastern USA, the Lehigh Valley has experienced employment reductions due to loss, downsizing and movement of major industries. Since 1970 manufacturing has declined by 43%. Major components of this decline have been the cessation of steel manufacturing and fabrication and losses in the apparel industry. While it would be surprising if there are major net gains in this industry in the coming years, the trend of the past 30 years seems to be close to the bottom. Perhaps some other manufacturing industry will push manufacturing back up in the future.

Losses in manufacturing have been more than offset by gains in non-manufacturing. Since 1970 non-manufacturing employment has grown by 122%. With the exception of mining and farming, all categories of non-manufacturing have increased since 1970. Growth has been particularly robust in services. Services encompass wide variety of employment activity including health, education, legal and other professions, business services, personal services, social services, etc. In the Lehigh Valley no category comes close to health services in employment growth. Of the 57,629 job increase in services from 1980 to 2000, 30% were in health services. The closest other category is business services which accounts for 21% of service growth.

Table 4 shows the major employers in the Lehigh Valley as of February 2011.


TABLE 4

LARGEST EMPLOYERS

(Ranked by number of total employees in the Lehigh Valley)

Ran

k

Employer Rank Employer

1 Lehigh Valley Hospital Center 26 East Penn School District

2 St. Luke’s Hospital 27 Crayola LLC

3 Air Products & Chemicals, Inc. 28 Easton Hospital

4 Federal Government 29 Hartford Fire Insurance Company

5 Allentown School District 30 City of Allentown

6 Lehigh County Government Center 31 T Mobile USA

7 Giant Food Stores LLC 32 Northampton Community College

8 Northampton County 33 Mack Trucks, Inc.

9 State Government 34 Sacred Heart Hospital

10 Lehigh University 35 City of Bethlehem

11 Lehigh Valley Physician Group 36 Victaulic Company of America

12 Dorney Park/Wildwater Kingdom 37 Parkland School District

13 Wal-Mart Associates, Inc. 38 Good Shepherd Rehabilitation Network

14 Easton Area School District 39 Wachovia Shared Resources LLC

15 The Guardian Life Insurance Co. of America 40 Colonial Intermediate Unit 20

16 Bethlehem Area School District 41 LSI Logic Corporation

17 B Braun Medical, Inc. 42 Lafayette College

18 Lutron Electronics Company, Inc. 43 The Receivable Management

19 Wegman’s Food Markets, Inc. 44 Northampton Area School District

20 Lehigh Valley Hospital Muhlenberg 45 The Home Depot USA, Inc.

21 Weis Markets, Inc. 46 Muhlenberg College

22 PPL Services Corporation 47 Walgreens

23 The Wood Company 48 Staffmark Investment LLC

24 HCR Manor Care 49 Sands Bethworks Gaming LLC

25 Carbon-Lehigh Intermediate Unit 21 50 Health Network Laboratories

Source: Pennsylvania Career Link Lehigh Valley.

The Lehigh Valley experienced numerous layoffs during the last two years. The key to both short-term and long term stability in the local economy will be the Lehigh Valley’s ability to cultivate and nurture high-tech industry and commercial enterprise. Updating and supplying both transportation infrastructure and human capital whose abundance and quality, to a large degree, guide potential growth, will become increasingly high priorities.

• Allentown Metal Works (Allentown) closed January 15, 2011 and eliminate the remaining 5

jobs. Recent employment there peaked at 80. • OraSure Technologies (Bethlehem) cut 9% of its workforce impacting 24 workers locally.

Most of the job losses are effective December 31st. • Allentown Shotcrete Technology (Upper Macungie Twp.) is closing its local facility after 100

years in operation dislocating 22 employees. • Ossur Americas (Allentown) closed December 2, 2010 dislocating 18 workers.


• HMX Group (Easton), formerly Country Miss and International Women’s Apparel started

layoffs effective January 10, 2011 with a final plant closing on May 31, 2011. 75 workers are affected.

• F.L. Smidth (Bethlehem) laid off 13 employees on September 16, 2010. • Victaulic, Inc. (Forks Twp.) laid off 42 union employees during the week of September 13,

2010, in addition to the 37 unionized workers in laid off in July 2010. The company has a long-term goal to reduce unionized staff at the plant to between 200 and 225, from 275 prior to the July cut.

• Paris Accessories (Allentown) will close the Allentown Plant in November with the loss of 66

jobs. • Amcor Pharmaceutical Contract Packaging (Bethlehem Twp.), formerly Alcan Packaging, will

close and begin laid off all 95 employees with the plant closing in December 2010. • DeSales University (Center Valley) eliminated 18 non-faculty positions in June 2010. • OraSure (Bethlehem) – 18 workers laid off in May 2010. • Sands Casino Resort (Bethlehem) laid off 80 in April 2010. • Victaulic, Inc., Alburtis – 37 employees laid-off in February 2010, in addition to 55 employees

laid-off effective November 2009. • F.L. Smidth (Bethlehem) laid off 19 people in January 2010. • Muller Martini Mailroom Systems (Hanover Twp.) laid off 55 people January 2010. • Merck & Company (ex-Schering-Plough) (Allentown) – closed January 1, 2010 due to a

merger and consolidation of operations. 80 employees from this pharmaceutical packaging company will lose their jobs.

Wages

Table 5 compares wage levels of various industry groups. The top wage earners in the Lehigh Valley work for management, wholesale trade and utilities. Distribution facilities that have located in the Valley in recent years are counted in the transportation/public utilities sector. Unfortunately, the number of top paying jobs in the Valley has decreased because of employment declines in manufacturing. Although numerous distribution facilities have located in the Valley their employment numbers have not been high enough to make a major impact on employment, even though wages are relatively high.


TABLE 5 AVERAGE WAGES COMPARISON

2003 – 1Q 2008 LEHIGH VALLEY EMPLOYMENT CLUSTERS

Clusters 2003 Average Wage 1Q 2008 Average Wage Percent Change

Utilities $73,854 $153,684 108.1%

Construction $41,891 $50,933 21.6%

Manufacturing $50,582 $54,961 8.7%

Wholesale Trade $46,073 $61,867 34.3%

Retail $22,412 $24,059 7.3%

Transportation and Warehousing $33,653 $40,747 21.1%

Information $44,339 $61,279 38.2%

Finance and Insurance $47,568 $57,287 20.4%

Real Estate and Rental and Leasing $29,381 $35,561 21.0%

Professional and Technical Services $47,433 $55,360 16.7%

Management of Companies and Enterprises $71,316 $119,390 67.4%

Administrative and Waste Services $26,192 $28,729 9.7%

Educational services (excluding public education) $36,531 $40,139 9.9%

Health Care and Social Assistance $36,595 $43,988 20.2%

Arts, Entertainment, and Recreation $15,905 $20,270 27.4%

Accommodation and Food Services $12,528 $14,060 12.2%

Other services, except public administration $23,504 $26,097 11.0%

Other, including public education $33,192 $36,922 11.2%

Lehigh Valley Average $36,371 $43,423 19.4%

Source: Pennsylvania Department of Labor and Industry.

Most job formation in the Lehigh Valley has been at the low end of the wage scale, i.e. services and retail trade. While job formation in these sectors has helped to increase employment levels in the Valley, wage levels in these sectors are much lower than manufacturing. Some workers in the Valley have had to accept lower paid employment in order to keep working. Any efforts to build higher paying and higher quality jobs would likely be welcomed by many current employees. On the other hand many employers and prospective employers may have a negative view of escalating wage rates. Low paying industries may decide to look elsewhere if low wage scales are the primary driving force for business relocation.

Average Earnings Per Job

Table 6 shows average earnings per job in Lehigh and Northampton County compared to nearby areas in Pennsylvania and New Jersey. Following are key findings:

• In 2008 Lehigh County annual average earnings per job are about 2.3% higher than

the Pennsylvania average. Northampton County earnings are 12% lower; • Except for Warren County, New Jersey, Lehigh and Northampton earnings per job

are much lower than any of the listed areas in New Jersey and New York; • Earnings growth from 1998 to 2008 in the Lehigh Valley lags the Philadelphia area

and all areas indicated in New York and New Jersey.


TABLE 6

ANNUAL AVERAGE EARNINGS PER JOB FOR LEHIGH COUNTY,

NORTHAMPTON COUNTY AND NEARBY AREAS:

1998-2008

Areas

Annual Average Change

Earnings ($) 1997-2007

(Place of Work) 2008 1998 % Change

USA $50,259 $35,996 39.6%

Pennsylvania $49,119 $36,798 33.5%

Lehigh County $50,225 $37,967 32.3%

Northampton County $43,236 $32,746 32.0%

Allentown-Bethlehem-Easton MSA $46,696 $35,406 31.9%

Berks County $43,853 $34,185 28.3%

Bucks County $47,879 $35,044 36.6%

Lancaster County $41,944 $33,559 25.0%

Philadelphia, PA-NJ-DE-MD PMSA $58,157 $42,173 37.9%

Scranton-Wilkes Barre-Hazleton, PA MSA $40,757 $31,345 30.0%

New York-Northern NJ-Long Island CMSA $71,655 $52,134 37.4%

Hunterdon County, NJ $55,799 $43,618 27.9%

Somerset County, NJ $82,624 $57,971 42.5%

Morris County, NJ $71,470 $52,548 36.0%

Warren County, NJ $46,285 $36,116 28.2%

Source: REIS; Bureau of Economic Analysis; U.S. Dept. of Commerce Table CA30.

Unemployment

Unemployment in the Lehigh Valley is slightly higher than the state rate and below the national 9.4% unemployment rate. The following table shows the comparison of Lehigh Valley unemployment to state and national levels.

TABLE 7

LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT STATISTICS FOR THE LEHIGH VALLEY

February 2011

Lehigh County Northampton County

Lehigh Valley Pennsylvania

United States

Labor Force 175,300 151,000 326,300 6,360,000 153,700,000

Number Employed 159,400 137,200 296,600 5,820,000 139,200,000

Number Unemployed 15,900 13,800 29,700 540,000 14,500,000

Unemployment Rate 9.1% 9.2% 9.1% 8.5% 9.4%

Source: PA Department of Labor and Industry.


PLANNING AND DEVELOPMENT ACTIVITIES Many organizations, both public and private, are concerned with economic development in Lehigh and Northampton counties. Table 8 shows the various organizations currently operating in the Lehigh Valley and the major services they provide.


TABLE 8

ECONOMIC DEVELOPMENT RESOURCES -LEHIGH AND NORTHAMPTON COUNTIES

Organization Contact Person

Phone Number

FAX Number

E-mail Address Address Primary Functions Allentown Economic

Development

Corporation

Scott Unger,

Executive Director

Phone: 610-435-8890

FAX: 610-435-6166

E-mail:

[email protected]

435 Hamilton St.

Suite 331

Allentown, PA 18101

Urban Economic

Development

Bangor Area School

District Regional Economic Development

Authority

John Reinhart Phone: 610-588-2163 123 Five Points Richmond

Bangor, PA 18013

Development

Bangor Economic

Development

Corporation

Alicia Karner Phone: 610-588-0913 129 S. Second St.

Bangor, PA 18013

Financial Assistance

Ben Franklin

Technology Partners of

Northeastern

Pennsylvania

R. Chadwick Paul, Jr.,

CEO

Phone: 610-758-5200

FAX: 610-861-5918

125 Goodman Dr.

Bethlehem, PA 18015

Recruitment/Promotion of

Hi-Tech Industry, Business

Incubators, Financial

Assistance, Technical Assistance

Career Education

Cooperative (Bethlehem

Area Vo-Tech School)

Sandra Kline,

Cooperative

Coordinator

Phone: 610-866-8013,

Ext. 111

3300 Chester Ave.

Bethlehem, PA 18020

Manpower Training and

Placement

City of Allentown

Department of Community

Development

Ed Pawlowski,

Mayor

Phone: 610-437-7547

City Hall

435 Hamilton St. Allentown, PA 18101

Marketing, Site/Building

Development, Financial Assistance, Technical

Assistance, Resource

Improvement

City of Bethlehem

Department of

Community

Development

Joseph Kelly,

Director

Phone: 610-865-7085

FAX: 610-865-7330

E-mail: jkelly@bethlehem-

pa.gov

City Hall

10 E. Church St.

Bethlehem, PA 18018

Site/Building Development,

Financial Assistance,

Resource Improvement

County of Lehigh

Department of

Development

Cindy Feinberg,

Director, Community

and Economic

Development

Phone: 610-782-3001

FAX: 610-820-3615

Email:

[email protected]

Government Center

17 S. 7th

St.

Allentown, PA 18101-2400

Data Distribution, Financial

Assistance, Technical


Improvement

Easton Area Industrial

Land Development Co.

Charles A. Roseberry,

Executive Director

Phone: 610-258-5647

FAX: 610-258-5186

E-mail: [email protected]

Web Site: www.eaild.com

Alpha Building, 8th

Floor

One S. 3rd

St.

P.O. Box 936

Easton, PA 18044-0936


Advocacy of Physical

Improvements

First Energy Corp./Met-

Ed

Marc Troutman Phone: 610-250-2811 2121 Sullivan Trail

Easton, PA 18040-8341


Development, Technical Assistance

Green Knight Economic

Development

Corporation

Carlton Snyder,

President

Phone: 610-863-5395

Fax: 610-863-5009

Web Site: www.gkedc.com

P.O. Box 4

2247 Pen Argyl Rd.

Pen Argyl, PA 18072

Energy Center, a methane

gas-to-energy plant

Greater Easton

Development

Partnership

Michael Dowd,

Executive Director

Phone: 610-330-9940 158B Northampton Street

Easton, Pa 18042


Financial Assistance

Greater Lehigh Valley

Chamber of Commerce

T. Anthony Iannelli,

President

Phone: 610-841-5860

FAX: 610-437-4907

E-mail:

[email protected]

Web Site:

www.lehighvalleychamber.org

840 Hamilton St., Suite 205

Allentown, PA 18101

Business Retention, Data

Distribution, Technical


Improvement

Industrial Development Corp. of Lehigh County

John Kingsley Vice President,

Economic Development

Finance

Phone: 610-266-6775 FAX: 610-266-7623

E-mail: jkingsley@

lehighvalley.org

2158 Avenue C, Suite 200 Bethlehem, PA 18017

or

P.O. Box 21750

Lehigh Valley, PA 18002-1750

Site/Building Development, Financial Assistance,


Lehigh Carbon

Community College

Ann Bieber,

Vice President for

Workforce and

Community Services

Phone: 610-799-1581

FAX: 610-799-1187

Email: [email protected]

4525 Education Park Dr.

Schnecksville, PA 18078

Entre./Management Skill

Development, Workforce

Training

Lehigh Career and

Technical Institute

Dr. Clyde Hornberger

Executive Director

Phone: 610-799-1322

Email: [email protected]

4500 Education Park Dr.

Schnecksville, PA 18078

Manpower Training and

Placement

mailto:[email protected]

http://www.eaild.com/

http://www.gkedc.com/




TABLE 8 (cont.) ECONOMIC DEVELOPMENT RESOURCES - LEHIGH AND NORTHAMPTON COUNTIES

Organization Contact Person

Phone Number

FAX Number

E-mail Address Address Primary Functions Lehigh Valley Career

Link

Esther Wenck,

Director

Phone: 610-437-5627

FAX: 610-434-4122 Email: [email protected]

1601 Union Blvd.

Allentown, PA 18103

Marketing, Financial

Assistance, Technical Assistance, Manpower

Training and Placement

Lehigh Valley

Convention & Visitors

Bureau, Inc.

Michael Stershic,

President

Phone: 610-882-9200

FAX: 610-882-0343

E-mail: mike@ lehighvalleypa.org

Web Site:

www.lehighvalleypa.org

840 Hamilton Street

Suite 200

Allentown, PA 18101

Data Distribution, Out-of-

Region Representation for

Travel & Tourism Industry

Lehigh Valley Economic

Development Corp.

Phil Mitman,

President & CEO

Phone: 610-266-6775

FAX: 610-266-7623


2158 Avenue C, Suite 200

Bethlehem, PA 18017

or

P.O. Box 21750


Marketing, Data Distribution

Lehigh Valley Industrial

Park, Inc.

Kerry A. Wrobel,

President

Phone: 610-866-4600

FAX: 610-867-9154


1805 E. 4th

St.

Bethlehem, PA 18015


Grantmanship, Resource

Improvement

Lehigh Valley Land

Recycling Initiative

Holly Edinger,

Director

Phone: 610-266-6775

FAX: 610-266-7623

E-mail:

[email protected]

2158 Avenue C, Suite 200

Bethlehem, PA 18017

or

P.O. Box 21750 Lehigh Valley, PA 18002-1750

Brownfields Redevelopment

Lehigh Valley Planning

Commission

Michael N. Kaiser,

Executive Director

Phone: 610-264-4544

FAX: 610-264-2616


961 Marcon Blvd., Suite 310

Allentown, PA 18109

Data Distribution,

Grantmanship, Advocacy of

Physical Improvements,

Regulatory Optimization,


Manufacturers Resource

Center

Jack Pfunder,

Executive Director

Phone: 610-758-5599

800-343-6732

FAX: 610-758-4716

E-mail: [email protected] Web Site: www.mrcpa.org

125 Goodman Dr.

Bethlehem, PA 18015-3715

Technical Assistance to

Manufacturers

Northampton

Community College

Center for Business and

Industry

Donald Robertson or

Donna Goss (Business

& Leadership Courses)

or Kent Zimmerman

(Technology Courses)

Phone: 610-861-5577

FAX: 610-861-5060

3835 Green Pond Rd.

Bethlehem, PA 18020

Entre./Management Skill

Development, Technology

Access, Workforce Training

Northampton County

Department of

Community and

Economic Development/ Northampton County

Industrial Development

Authority

John Conklin,

Director of

Administration

Phone: 610-559-3200

FAX: 610-559-3775

Web Site:

www.northamptoncounty.org/ depts./economic development

Northampton County

Government Center

669 Washington St.

Easton, PA 18042

Marketing, Technical

Assistance

PPL, Inc. Don Bernhard, CEcD Phone: 1-800-523-9854

E-mail:

[email protected]

PPL Economic Development

Two North Ninth Street

(GENN5)



Development, Technical

Assistance

Slate Belt Chamber of

Commerce

Paul Donovan,

President

Phone: 610-863-0315

Fax: 610-863-0315

Email: [email protected] Web Site:

www.slatebeltchamber.org

856 W. Pennsylvania Ave.

P.O. Box 5

Pen Argyl, PA 18072

Business Resources and

Assistance

Small Business

Development Center,

Lehigh University

Sandra Holsonback,

Director

Phone: 610-758-3980

FAX: 610-758-5205


621 Taylor St.

Rauch Business Center

Bethlehem, PA 18015

Data Distribution,

Grantmanship, Revolving

Loan Fund, Technical

Assistance

Team PA Export Network

Cora Landis Phone: 610-758-3980 FAX: 610-758-5205


621 Taylor St. Bethlehem, PA 18015

Export Assistance

Workforce Investment

Board

Nancy Dischinat,

Executive Director

Phone: 610-437-5627

FAX: 610-437-3527

1601 Union Blvd.

P.O. Box 20490 Lehigh Valley, PA 18002-0490

Workforce Development

Source: Lehigh Valley Planning Commission, March 2010.


http://www.lehighvalleypa.org/




http://www.mrcpa.org/


http://www.slatebeltchamber.org/




SECTION IV: ASSESSMENT OF POTENTIALS AND ISSUES TO BE RESOLVED The previous chapters of this report presented a review of the Lehigh Valley’s historic development, its current economic situation and its resources. This chapter will focus on an assessment of the economic resources and problems in the region from an economic development perspective. The assessment will be used to develop a general economic development strategy and then more concrete proposals for executing that strategy. POTENTIALS 1. Proximity to Markets. Proximity to markets is the primary advantage of the Lehigh Valley

as a location for business and industry.

(a) The region is well situated with respect to major highway access to the important East Cost markets; New York, Philadelphia, Baltimore and Washington, D.C. are within 200 miles. New York City is a 1½ to 2 hour drive and Philadelphia about 1¼ hours.

(b) The region is within a one-day truck drive of one-third of the U.S. market and

one-half of the Canadian market. The suburban New York City metropolitan area is expanding into central New Jersey; the residential and commercial development of central New Jersey along Interstate 78 presents opportunities for future spillover benefits to the Lehigh Valley. The region attracts new residents who work in New Jersey and are willing to commute from homes in Pennsylvania.

(c) The location of the region also provides opportunities for expansion of tourist

trade at historic sites and special events; these assets could increasingly be promoted to suburban Philadelphia and New Jersey audiences.

(d) The completion of I-78 has made the area attractive for business development.

Expansion of Route 33 from Route 22 to I-78 will greatly increase the attractiveness of the Northampton County portion of the region.

(e) The Lehigh Valley International Airport is centrally located along Route 22. Direct

daily service is available to a number of major cities. Customs service is also available at the airport.

(f) Norfolk Southern provides mainline railroad freight service in the county. A major

classification yard is located in Allentown. A modern intermodal (piggyback) terminal in Salisbury Township serves the Lehigh Valley area. A new intermodal facility has been developed by Bethlehem Steel in the Bethlehem Commerce Center on Bethlehem’s south side.

2. Labor Force. The region provides a large and high quality labor force of 325,200 to

employers. The supply of workers and their skills are diverse. As employers require new skills from the labor force, the region has the resources for appropriate training or retraining: private colleges, customized job training at the community colleges, vocational-technical high schools, the Private Industry Council and other programs.


The Northampton County component of the labor force is relatively low cost in comparison with other parts of eastern Pennsylvania and counties in central and eastern New Jersey and the New York metro area. Lehigh County is low cost relative to New Jersey and New York.

3. Major Land Available for Business and Industry. The Lehigh Valley Planning

Commission has evaluated land presently zoned for industry in Lehigh and Northampton counties in order to determine which sites and areas have the greatest potential for industrial development in the future. In April 2002 the commission released a report entitled Summary of Vacant Parcels Zoned for Industry Lehigh and Northampton Counties. The Lehigh Valley Economic Development Corporation has kept an updated inventory of under utilized sites in the Valley since the late 1990’s.

(a) Survey of Vacant Parcels Zoned for Industry. As of April 2002 about 12,200

acres of land on 540 sites are zoned for industrial development of one type or another. In Lehigh County there are 4,200 acres; Northampton County has 8,000. After screening out sites with environmental limitations such as steep slopes, flood plains and wetlands, sites that don’t have adequate sewer, water and road access and sites that are not on the market the total acres of prime sites was estimated at 4,500 acres. In Lehigh County there are 1,860 acres and Northampton County has 2,600 acres.

(b) Potential Redevelopment Sites and Stage One Redevelopment Site Screen. The

LVEDC has estimated approximately 2,100 acres of redevelopment sites are available in the region. Sixteen hundred of these acres are the former Bethlehem Steel property on the south side of Bethlehem. Redevelopment of old industrial sites presents a major economic development and community development challenge to the Lehigh Valley.

4. Keystone Opportunity Zones. Map 3 shows the location of Keystone Opportunity Zones

in the Lehigh Valley. Table 9 shows data on these zones. The goal of the KOZ program is return previously used properties back to productive use for new economic development.


TABLE 9 2010 KEYSTONE OPPORTUNITY ZONES

AND KEYSTONE OPPORTUNITY EXPANSION ZONES IN THE LEHIGH VALLEY

Expiring in 2010

County Sub-zone Acreage

Lehigh Allentown 154.78

Lehigh North Whitehall 147.412

Lehigh Washington/Slatington 32.72

Northampton Allen Township 181.67

Northampton Bangor/East Bangor 263.37

Northampton Bath 53.5

Northampton Easton 50.08

Northampton Lehigh Twp. 26.7

Northampton Portland 18.95

Northampton Pen Argyl 15.95

945.132

Expiring in 2013


Lehigh Upper Saucon Twp. 54.00

Expiring in 2017 - Flat 7


Northampton Bangor 55.98

Northampton Portland 12.65

68.63

Expiring in 2019



Expiring 10yrs after occupancy


Northampton Northampton Borough 3.5


47.578

TOTAL ACREAGE 1203.602

Expiring in 2022


Lehigh Upper Macungie* 25.931

*Strategic Development Area created in 2007. Source: Lehigh Valley Economic Development Corporation


5. Utility Infrastructure. Generally, utility infrastructure in the Lehigh Valley offers

considerable potential for the future although there are some specific problems that need to be resolved. The problem areas will be discussed in a later section of this report. This section outlines the major potentials.

(a) Lehigh County Sewer. There are currently seven public sewage treatment plants

operating in Lehigh County. In addition, Lehigh County Authority entered into a lease/purchase agreement with Lehigh County in 2005 for the industrial pre-treatment plant located in Upper Macungie Township. The Authority took responsibility for operating the plant in 2006. The plant is used for the pre-treatment of industrial sewage before final treatment at the Allentown sewage treatment plant (STP). The largest plant serving Lehigh County is the Allentown STP. Permitted plant capacity is 40MGD. In 2008, the average daily flow through the plant was 35.82 MGD. The Allentown STP provides sewer to portions of 15 municipalities in Lehigh County.

(b) Northampton County Sewer. There are 13 public sewage treatment plants

operating in Northampton County. Portland Borough completed construction of its treatment plant, and it became operational in 2009. The largest plant serving Northampton County is the Bethlehem sewage treatment plant (STP). The 2008 average daily flow was 14.20 MGD. The City’s current permit allows for 20 MGD through the plant; however the City’s 2008 draft Act 537 plan reassesses plant capacity at 15.5 MGD. According to the draft plan, the City plans on restoring the plant’s capacity to 20 MGD. Sewer service from Bethlehem is available to LVIP IV and V, the Bethlehem Business Park and the Lehigh Valley Corporate Center, which are located in Hanover and Bethlehem townships. The Bethlehem STP also serves a portion of Lehigh County.

In 2008, the Easton STP was discharging 6.17 MGD. The plant capacity is 10.0

MGD. The Forks and Palmer Industrial Parks both are tributary to the Easton plant.

(c) Lehigh County Water. In Lehigh County, Allentown provides water service to the

City and portions of four other municipalities with water drawn from the Little Lehigh Creek, the Lehigh River and two springs. In addition, the City of Allentown and Lehigh County Authority (LCA) signed an agreement in 2009 that will allow LCA to purchase up to 7 million gallons of water per day from the City to meet increasing demands in the LCA service area. The City of Allentown’s permit allocation for all sources is currently 39.0 MGD. Average use in 2005 was 15.3 MGD. Treated storage capacity for the City of Allentown service area is 51.37 MG. As part of their agreement with the City, LCA has constructed a transmission line from the City’s Schantz Spring water source to LCA’s distribution system to meet their short term needs. To meet their long term needs, LCA will construct a transmission main to convey water from the City’s water filtration plant to LCA’s distribution system. LCA service is divided into several service areas including: the Northern Lehigh Service Area serving North Whitehall and Washington townships and the Western Lehigh Service Area serving major residential and industrial developments in Upper and Lower Macungie townships, in addition to small portions of five other municipalities. Combined average use in 2005 was approximately 5.3 MGD. Sources of water


supply include approximately 27 wells and agreements with other water suppliers. Treated storage capacity available overall is approximately 10.9 MG. Smaller systems serve the Boroughs and other municipalities. The source of water supply for these systems is primarily wells.

(d) Northampton County Water. In Northampton County, the Easton area, including

several suburban municipalities, is particularly well served with its source of water being the Delaware River. The City of Easton currently has a permit to withdraw up to 13 MGD. The Easton Suburban Water Authority, which operates an extensive network of water distribution lines in the suburban area, has a 25 year lease on the City’s water system to operate the entire system. Their combined average use for 2005 was approximately 7.9 MGD. Treated storage capacity for Easton and the suburbs is 27.07 MG. The City of Bethlehem, in 2005, used 15.7 MGD.

Elsewhere in Northampton County, water service is provided by a number of

smaller water systems. These systems are both municipal and private water companies. Among the smaller systems, the Northampton Borough Municipal Authority system is particularly well supplied since its source is the Lehigh River. The Pennsylvania American Water Company provides water service to the Slate Belt region of the county.

(e) Telecommunications. The Lehigh Valley is served by modern

telecommunications facilities that are constantly being expanded and improved by Verizon, Nextlink, PECO Hyperion, RCN, and Service Electric. Currently, 100% of the telephone switches in the Lehigh Valley are digital. Fiber optic transmission technology, another prerequisite for advanced digital services, has been aggressively deployed in the Lehigh Valley for over 10 years. Hundreds of miles of fiber are in place, and many more miles are being placed on a daily basis, for both normal subscriber requirements, and specialized customer networks. This fiber is being used in conjunction with the latest SONET (Synchronous Optical Network) technology, which enables the traffic on this fiber to be reliable and secure. Several communication companies serve the Lehigh Valley. These include Verizon, PenTeleData, US LEC and Omnipoint.

(f) Electric Service. Electric service distribution in the region is provided by two

investor-owned electric utility companies, PPL Inc. and First Energy. Both companies offer a high degree of reliability with ample generation, transmission and distribution capabilities. Pennsylvania has implemented customer choice of electric generation suppliers, which will continue to serve as an incentive to industrial growth in the area.

(g) Gas. Natural gas in the Lehigh Valley is provided by Metropolitan Edison and

UGI, which has an extensive network of lines serving the region. (h) Solid Waste Disposal. There are three permitted landfills in the region that will be

used for waste disposal in the near future. These are: the IESI landfill in Lower Saucon Township, the Chrin Landfill in Williams Township, and the Grand Central Landfill in Plainfield Township.


6. Transportation Infrastructure. Five expressways, two of which are Interstate highways, serve the Lehigh Valley. The Interstate roads are I-78 and I-476. Other expressways are Route 22, Route 33, a portion of Route 309, and a portion of Route 378 through the City of Bethlehem. Traffic exiting freeways and expressways is transferred to arterials — roadways that serve primarily a through-traffic function and provide access to collectors and local roads. Examples of principal arterial roads in the region include Route 309, Route 145, Route 222, Route 29, Route 248, and Route 378. Still more roads are identified as minor arterials. Arterial traffic is transferred to collectors — roadways that provide both land access and traffic circulation service within residential, commercial, and industrial areas. Some examples of collectors include Oakland Road in Bethlehem Township and Jacksonville Road in Hanover Township, Northampton County. In Lehigh County, Walbert Avenue in South Whitehall Township and Fullerton Avenue in Whitehall Township constitute collectors. Collector traffic is transferred to local roads that primarily provide access to individual properties. The Lehigh Valley contains 57 miles of interstate highways, 30 miles of freeways/expressways, 189 miles of principal arterials, 216 miles of minor arterials, 357 miles of major collectors, 163 miles of minor collectors, and 2,837 miles of local roads for a grand total of 3,849 miles. Key highway projects in the current Transportation Improvement Program include the American Parkway Bridge, improvements to Route 412 in Southside Bethlehem and widening and improvement of interchanges on Route 22 from 15th Street to Airport Road.

(a) Bus Transportation. The Lehigh and Northampton Transportation Authority

(LANTA), was formed by Lehigh and Northampton counties in 1972 to provide public transportation services for the inhabitants of the Lehigh Valley. LANTA’s operations are comprised of two operating divisions — Metro and Metro Plus. The Metro division provides fixed-route services along 26 routes and carries about 5.1 million trips annually. It serves the Lehigh Valley metropolitan area including the cities of Allentown, Bethlehem, and Easton and their surrounding environs. The Metro Plus division provides door-to-door service for the region’s elderly and those with disabilities. This coordinated transportation system is operated through contracts with private transportation providers and provides nearly 477,000 trips annually.

Intermodal centers were constructed in Allentown and Bethlehem. The centers

provide a protected terminal and transfer center for transit passengers and include items of convenience such as ticket vending, electronic bus information, beverages and newspapers.

A sufficient supply of convenient, affordable, and reliable inter-city bus service

exists to popular destinations such as New York City and Philadelphia. This service is provided by private, unsubsidized bus operators Carl R. Beiber and TransBridge Lines, Inc.

(b) Air Transportation. LVIA is operated by the Lehigh-Northampton Airport

Authority. It occupies a 1,000 acre site. The main runway is 7,601 feet long and 150 feet wide. The crosswind runway is 5,790 feet long and 150 feet wide. The airport’s tri-level passenger terminal building was opened in 1975. A new departure building, the Wiley M. Post Concourse, opened in 1997. A new flight control tower became operational in 1995. The major issues facing the airport in the next decade include planning for future runways/runway extensions to meet


projected demand and working with local, state, and federal governments to achieve compatible off-airport land use in the noise impact areas.

TABLE 10

UTILIZATION OF THE LEHIGH VALLEY INTERNATIONAL AIRPORT: 2002-2008

2008 2007 2006 2005 2004 2003 2002

TRAFFIC REPORT

MAJOR AIRLINES

Passengers - Emplaned 36,367 36,230 33,617 63,543 79,697 64,848 120,542

- Deplaned 31,913 30,279 25,367 60,056 78,838 66,562 123,153

- Sub-Total 68,280 66,509 58,984 123,599 158,535 131,410 243,695

REGIONAL AIRLINES

Passengers - Emplaned 355,849 391,145 361,313 353,758 424,639 427,638 280,518

- Deplaned 355,839 389,872 368,214 354,213 426,777 423,729 273,941

- Sub-Total 711,688 781,017 729,527 707,971 851,416 851,367 554,459

GRAND TOTAL 779,968 847,526 788,511 831,570 1,009,951 982,777 798,154

AIRPORT OPERATIONS

Major Airlines 11,701 16,668 17,613 20,012 20,880 18,509 17,426

Regional Airlines 17,007 13,732 18,365 17,871 19,058 21,895 21,043

Military 943 932 1,447 1,746 2,275 1,842 3,075

General or Civil Aviation 44,036 44,177 45,887 51,038 56,623 55,586 63,501

Total Itinerant 73,687 75,509 83,312 90,667 98,836 97,832 105,045

Total Local 50,121 45,059 38,700 36,133 34,133 33,285 37,296

GRAND TOTAL 123,808 120,568 122,012 126,800 132,969 131,117 142,341

Source: Lehigh-Northampton Airport Authority.

Queen City Airport is owned and operated by LVIA. The airport is located on a 198 acre tract of land in southwest Allentown, adjacent to I-78 and Lehigh Street. The airport’s primary east-northeast/west-southwest oriented runway is 3,940 feet long and 80 feet wide. The crosswind runway is 3,380 feet long and 80 feet wide. The airport serves as a general aviation airport for private aircraft.

Braden Airpark is located on a 71.3 acre Forks Township tract just east of

Tatamy. The general aviation airport has a paved runway that is 1,950 feet long and 50 feet wide. The airport was acquired by LNAA from private ownership in 1999.

Slatington Airport is a general aviation airport located on a 56.5 acre tract along

the Lehigh River in Slatington. The privately-owned airport has a 2,500 foot north-south runway (2,000 feet are paved) that is 30 feet wide.

The Flying ―M‖ Aerodrome is located at the base of Blue Mountain in northern

Heidelberg Township. The privately-owned airport has a 2,375 foot long by 100 foot wide east-west oriented grass landing strip.

(c) Rail Transportation. In an era when rail service is declining or threatened in some

communities, the Lehigh Valley remains in a relatively strong position. The dominant class 1 rail freight carrier in the Lehigh Valley is the Norfolk Southern Railroad, which operates lines that were formerly operated by Conrail. The railroad’s Newark, New Jersey to Harrisburg main line passes through the two counties. This line is one of the busiest in the state. A secondary main line


extends north from Allentown to the Scranton area. Numerous branch lines provide Norfolk Southern service to area shippers. The Cement Secondary which serves the Forks Industrial area and the C&F Secondary which serves the Fogelsville area are the most prominent of the branch lines. A second class 1 carrier also serves the Lehigh Valley via trackage rights. CP Rail has assumed the operations once provided by the Delaware and Hudson Railway. The area is also served by six short line railroads: RJ Corman-Allentown, the East Penn Railway, the Northampton Development Corp. Railroad, the Belvidere & Delaware River Railroad, the Delaware Lackawana Railroad and the Lehigh Valley Rail Management (LVRM) railroad.

These railroads operate several significant rail facilities within the Lehigh Valley.

The Allentown Classification Yard is one of the major yards in the Norfolk Southern System. The LVRM operates an intermodal terminal and container terminal, both located in Bethlehem.

No commuter or intercity passenger service is available in the two counties. The

most recent passenger train to actually enter the two counties was the Southeastern Pennsylvania Transportation Authority service to Philadelphia which ended in 1981. Passenger service from nearby Phillipsburg, New Jersey to Newark was ended in 1983 by New Jersey Transit. A study to evaluate alternatives, feasibility and cost of alternative bus and rail connections between New Jersey and the Lehigh Valley was completed in 2010.

(d) Bicycle and Pedestrian Transportation. The 2000 census estimated 10,300

commuters walked to work and another 550 biked to work, representing 3.8% and 0.2%, respectively.

7. Target Industries. Targeted industries are determined using qualitative screening

criteria in combination with a quantitative statistical approach and the review of previous studies. Screening criteria isolates industries which will:

• Provide above-average wages and be less reliant upon low-wage labor. • Incorporate a high-technology, knowledge, skill-set component. • Have synergy with existing Lehigh Valley workforce, infrastructure, educational

institutions, soft-and hardware. • Leverage existing Lehigh Valley assets without exhausting land resources. • Expand upon established competitive positioning in the U.S. and globally. • Have a high value-added component in local economy. • Be classified as growth industries at the state and/or national level.

These screening criteria have been combined with a statistical approach of analyzing location quotient data from the Center for Workforce Information and Analysis to identify trends and opportunities in employment clusters. Appendix D provides a more detailed analysis of industry clusters. Following are the major target categories identified by LVEDC:


The six main Clusters of employers targeted for attraction, retention and expansion include:

• Health Care and Life Sciences • Diversified Manufacturing and Services • Financial Services • Business & Professional Services • Information & Communication • Green or Energy-Related Manufacturing and Services

ISSUES TO BE RESOLVED Urban Centers 1. Business Maintenance and Development. One of the most critical elements of healthy

urban center development is maintaining and growing existing business and attracting new business. The greatest need for redevelopment and revitalization still rests squarely in the Central Business Districts. The goal is to develop a business and employment friendly environment that is cost-competitive for development in the urban centers.

2. Public Safety. Public Safety is an important regional issue. It is important that visitors and

residents to the region’s urban neighborhoods feel comfortable and secure. 3. Housing & Neighborhood Development. Urban Centers tend to have a concentration of

older housing stock, needing ongoing maintenance and rehabilitation. Encourage increased individual home ownership, appropriate and adequate rental property maintenance, responsible landlords and pride in the community. Discourage the concentration of poverty through pursuing a regional approach to provision of assisted and affordable housing. Support the efforts of the Coalition for Affordable Housing.

4. Planning, Zoning & Building. Facilitate adoptive reuse of buildings through revisions of

planning and zoning laws. 5. Cultural/Entertainment. Cultural, historical and entertainment assets are typically located in

our urban centers. The goal is to successfully use cultural, historical and entertainment assets as vital elements in urban renewal.

Target Industries and Marketing

1. Translate this analysis into an action strategy starting with assuring that it is fully integrated into the LVEDC marketing, business retention and business attraction plans. Utilize Targeted Industry Clusters as a marketing, retention and attraction tool to identify the base of existing employment clusters, regional assets and resources to support these clusters and highlight local workforce strengths.

Health care and life sciences, diversified manufacturing, business and professional services, information and communications, financial and energy services have been prioritized by LVEDC as the primary economic development opportunities for the Lehigh Valley. Marketing strategies already being employed to promote the existence of this


capacity in the Lehigh Valley in conjunction with our cost advantage over adjacent high cost areas.

Targeted Industry Clusters:

The six main Clusters of employers targeted for attraction, retention and expansion

include:

• Health Care and Life Sciences

• Diversified Manufacturing and Services

• Financial Services

• Business & Professional Services

• Information & Communication

• Green or Energy-Related Manufacturing and Services

Additionally, the focus on the region’s urban centers’ revitalization and declining availability of large tracts of greenfield sites requires that we target and focus on attracting, retaining and expanding those clusters that represent the greatest potential to maximize economic impact and income per developable acre consumed. That focus favors the targeted clusters cited above, compared to the economic impacts of developing retail and distribution opportunities. Promoting and Fostering Prosperity – Maximizing Economic Impacts with Minimum Land Use

Industry Avg $ Income Jobs Per Acre Income Per Acre

Office & Technology $45,500 35 $1.6 million

Manufacturing $53,600 15 $0.8 million

Retail $24,800 25 $0.6 million

Distribution/Logistics $40,000 5 $0.2 million

That focus favors the targeted clusters cited above, compared to the economic impacts of developing retail and distribution opportunities. Encouraging ―retail‖ development should be focused on those enhancing quality of life in our cities and boroughs.

2. Assure periodic updates of the Targeted Industry Cluster Analysis. Workforce Development

1. It is our goal that the Lehigh Valley has an employer demand-driven, world-class workforce system aligned with economic development, education and the community focusing on Targeted Industry Clusters. Economic development, workforce development and education also must be aligned to ensure that all partners understand the region’s job and labor market information, as well as the workforce delivery system that can provide employers and job seekers with the employment, training, and support services in our region. This alignment is critical for attracting and retaining firms providing career opportunities with family sustaining wages and benefits. Our goal is to


align the current and future workforce with the academic skills and training opportunities based on the Lehigh Valley’s targeted industry clusters and economic growth.

2. Based on demographic trends and employer needs, the Lehigh Valley must prepare

for potential future shortages of qualified workers in targeted industry clusters. By understanding and anticipating industry needs, as well as regional, statewide, national or global market forces, we can prepare an educated and trained workforce to meet these needs, allowing employers to remain competitive.

3. As indicated by Lehigh Valley employers, we must increase the number of students who

graduate with solid academic and technical skills and promote career pathways through career and technical education and community colleges, thereby increasing the number of career and technically trained students and providing school administrators, teachers, guidance counselors and the public with information on the basic, technical, work readiness and employability skills needed for work. Our goal is to have world-class, competitive workforce. Our mission is to ensure an employer demand-driven, world-class workforce system focused on targeted industry clusters and high-priority occupations and, aligned with economic development, education and the community.

Science and Technology 1. Success in launching and growing technology-oriented businesses in the Lehigh Valley

should be a focus of economic development and requires a focused set of economic development parameters. Purpose built facilities, increased exposure to funding opportunities and increased connections with experienced networks to assist entrepreneurs are all hallmarks of a successful economic development initiative.

2. Startup technology-based companies frequently need a great deal of mentoring as well as financial assistance before they can even begin to seek equity-oriented capital. Early funds most typically come from founders, family and friends and angels or angel networks. For those companies that require equity injections, the Ben Franklin Technology Partners may invest as much as $450,000 over a three-year period in what are considered seed-stage technology companies. Venture capital funds will not typically invest less than $1 million, leaving a funding chasm of $500,000 to $1 million into which many high potential companies fall.

3. Many technology companies prefer to locate in the center of urban life and to surround themselves with other technology companies. Currently, Ben Franklin’s TechVentures technology incubator on Lehigh’s Mountaintop Campus, and the Allentown Bridgeworks are the sole locations in the Lehigh Valley that provide true incubator space. The Southside Bethlehem Keystone Innovation Zone is the sole program in the valley to provide assistance to startup and early stage ventures. Efforts should be increased to provide additional services and facilities in the other urban centers of the Lehigh Valley. These urban facilities must provide the right combination of commercial business activity, inexpensive occupancy costs and available business infrastructure to attract early stage technology companies. There must also be a buy-in from other local colleges and universities within these particular areas.

4. Economic conditions and resources at the state and federal levels provide a unique opportunity for the Lehigh Valley to reach out to and help develop energy-related companies.


5. Economic development leadership in the Lehigh Valley has begun to create partnerships with institutions of higher learning in the Lehigh Valley to facilitate growth of the technology economy. Colleges, universities and research hospitals play a central role in the best known technology economies in the country and the Lehigh Valley is fortunate to be home to eight institutions of higher education and several major healthcare providers including a significant research hospital.

6. There are no standard rules for measuring the impact that technology companies have on a local economy. However, one measure may be the amount of money early stage companies pump back into the local economy through the sale of Pennsylvania state business tax credits. In the south Bethlehem KIZ, over $2,000,000 in tax credits have been sold over the past several years. This money is received by the local businesses and is used for hiring employees, buying inventory, improving services and other critical business expenses.

Foreign Trade Zone No. 272 (FTZ) The Foreign Trade Zone (FTZ) is an economic development program that creates investment and jobs by maintaining and attracting U.S. based operations for international trade. LVEDC is the Grantee of Foreign-Trade Zone No. 272. The Grantee is a public or private corporation to which the privilege of establishing, operating or maintaining a Foreign-Trade Zone has been given. The principal benefits of an FTZ include: duty deferral, duty reduction, duty elimination, zone-to-zone transfers, direct delivery/weekly entry and export and certain production equipment duty deferral and reduction. FTZ No. 272 originally consisted of seven general-purpose zones in the Lehigh Valley totaling 1,927 acres. Four sites being in Lehigh County (891 acres) and three sites being in Northampton County (1,036). Recently, an eighth site comprised of approximately 163 acres was added in Upper Nazareth Township, Northampton County. As of January 1, 2009, BMW North America was permitted to take advantage of the FTZ benefits. This relocation of their Northeast Parts Distribution facility from New Jersey to the Lehigh Valley was a $16,000,000 investment creating 118 new jobs. A 9th General Purpose Zone was added to include Majestic Reality’s 440+ acre redevelopment of former Bethlehem Steel land. This designation will support the redevelopment by providing additional incentive to companies looking for multi-modal functionality and importers seeking a new inland port in this region During 2010, LVEDC sponsored and submitted two special subzones applications to the FTZ board requesting manufacturing authority for Grundfos Pump Corporation and Piramal Critical Care. FTZ benefits will dramatically help these Lehigh Valley Manufacturers reduce tax and tariffs, strengthen their financial bottom line, better position them to remain competitive in


domestic and foreign markets and keep jobs in the Lehigh Valley. Approvals are expected 1st

and 2nd

quarter of 2011. FTZ No. 272 official logo.

Wall Street West Initiative Wall Street West is a not-for-profit partnership in Northeastern Pennsylvania with a focus on strategic workforce development and state-of-the-art economic development. Through a grant from the United States Department of Labor’s Workforce Innovation in Regional Economic Development (WIRED) program, and with oversight by the Pennsylvania Department of Labor and Industry and the Ben Franklin Technology Partners of Northeastern Pennsylvania, Wall Street West has invested in both workforce systems and the region to create a custom-made business environment that will attract organizations in industries such as financial services, information technology and healthcare. As a result of this process, we expect an increase in job creation and economic development throughout the region’s counties. The Wall Street West Executive Committee has dedicated its efforts to making investments in education and workforce development that will generate long-term dividends for the future of the Commonwealth. Its Investment Portfolio summarizes these efforts by sharing the progress and potential of projects funded by the initiative, including a breakdown of partners, leveraged funding and outcomes. As this portfolio demonstrates, every county, legislative district and media market in the region has benefitted from Wall Street West funding. To date, Wall Street West projects have achieved numerous benchmarks and milestones in areas such as new curricula for educating teachers and students and incumbent worker training. The program has awarded over $11 million in federal funding to workforce development projects. The Wall Street West Program concluded in December of 2009 and all identified goals were achieved. Southside Bethlehem Keystone Innovation Zone (KIZ) The Pennsylvania Department of Community and Economic Development certified the Southside Bethlehem Keystone Innovation Zone (KIZ) in May of 2004. This program was established to develop a ―knowledge neighborhood‖ by identifying and coordinating the talent and resources of both Lehigh University and Northampton Community College. Focusing on several high-technology business clusters, The KIZ has bolstered the local economy by providing assistance to startup and entrepreneurial ventures. The funding provided by our local ―Primary Partners‖ has enabled the KIZ to assist twenty-seven new business enterprises. For their investment in our community, each ―Primary Partner‖ has a voting seat on our governing board and participates in all funding decisions.


Our direct financial assistance comes in the form of two ―Keystone‖ programs. Our Technology Transfer Grant Program is a $15,000 award to projects approved by our board members. Our Student Internship Program gives undergraduates a $2,500 stipend and graduate students a $5,000 award to work with selected technology companies on specific projects.

Over the past four and one-half years, the KIZ ―Primary Partners‖ have invested over $830,000 in the KIZ. Combine that with state and other grant funding, we have leveraged a total investment of over $1,650,000 into $42,385,240 in additional business funding.

Lehigh Valley Life Sciences Network (LVLSN) In October 2010, the LVLSN will have been up and running for three years. Currently, there are 107 individual members from 55 organizations representing life science businesses, economic development organizations, hospitals and higher education. In the past year the network has been used for various life science industry-related reasons and issues like:

Funding sources for early to mid stage companies, or for product development;

Access to research facilities, faculty and equipment, skilled workers trained in our local colleges and universities;

Referrals to reliable, high quality, affordable business services; and

Potential business opportunities or partnerships with local organizations. If you are interested in joining the LVLSN, please contact John Taylor at [email protected] or call him at 610-758-3592.

ITEM NEEDED

Total KIZ companies assisted since 2004 34

Student startup companies assisted 7

KIZ jobs created 189

KIZ jobs retained 115

PA college graduates hired 23

KIZ company patents filed 120

KIZ company patents awarded 62

University/college licenses awarded 16

KIZ collaborative ventures 22

ITEM NEEDED

Technology Transfer Grants awarded $ 654,355

Federal, state & local grants $ 3,333,738

Investment Capital $ 34,520,851

Debt financing $ 3,876,296

Student Internships awarded 80

Total funding leveraged $42,385,240



Environmentally Sustainable Growth The Lehigh Valley has seen tremendous growth in the last 15 years. As resources become more precious, the region must focus on practices that will make the Lehigh Valley more environmentally sustainable. This course of action will assist in preserving the quality of life in our region. It will ensure continued economic growth. The new five-year strategic plan of the Lehigh Valley Economic Development Corporation (LVEDC) names environmental sustainability for the region as a goal for the organization. Through the partnerships like the Lehigh Valley Sustainability Consortium this complex topic will be explored. LVEDC will work with several partner groups to develop ―green‖ goals for the region. This effort will include groups such as: the Greater Lehigh Valley Chamber of Commerce, The Sustainable Energy Fund, The Alliance for Sustainable Communities, Renew Lehigh Valley, Lehigh Valley Planning Commission, Lehigh Valley Chapter of the Delaware Valley Green Building Council, and others. LVEDC will pursue grant funding and private sector contributions to support the efforts of these groups. These efforts shall include: energy efficiency, renewable energy, brownfields redevelopment, smart growth land use principles, and alternative transportation. Alternative Energy and Energy Conservation in the Lehigh Valley In alignment with the 2008 PA Special Session House Bill #1, the Lehigh Valley Economic Development Corporation will focus and encourage the development of alternative energy and energy conservation projects. In cooperation with its various partners, LVEDC will encourage education about energy conservation and alternative energy sources. Having PPL located in Allentown and as an existing LVEDC partner presents opportunities that will be fully explored as will opportunities to work with Air Products to further their Hydrogen Economy initiatives. By raising the awareness of energy efficient building practices and fostering collaboration among regional stakeholders, LVEDC will bring focus to this growing business sector. The reduction of energy use is good business practice and through outreach about this topic LVEDC hopes to motivate the business community to make upgrades and conserve energy. The goal of this initiative will be the economic growth arising out of the development of the service and installation businesses in the field of energy efficiency. In addition, the Lehigh Valley will seek out entrepreneurs and innovators in energy efficiency to join our community. Smart Growth and Brownfields Redevelopment A key component of an environmentally sustainable community is the balance between developed land and green space. Green space is needed to ensure water quality and it improves air quality by sequestering carbon. In the Lehigh Valley, the Lehigh Valley Land Recycling Initiative has been championing the redevelopment of brownfields for over eleven years. This initiative of LVEDC’s has been awarded a 2008 Environmental Achievement Awards by EPA Region 3 and this year Program of the Year by the Northeastern Economic Developers Association. LVEDC will continue to focus on brownfields and be a part of a dialogue about bigger land use issues. Smart growth has a growing awareness in the region. LVEDC is supporting smart


growth by including reinvestment into the urban cores as a strategic goal for the organization. LVEDC will work closely with the three cities and the smaller boroughs of the region to revitalize these areas. Alternative Transportation The Passenger Rail Committee was created in 2007 as the LVEDC Transportation Committee. Originally, a subcommittee of the LVEDC Planning Committee, it was renamed in 2008 as a consequence of the funding of a study in conjunction with Lehigh and Northampton Counties of transportation along the I-78 corridor from Phillipsburg to Allentown. The committee reviews and advises LVEDC with regard to local and regional transportation issues, primarily focusing on passenger rail transportation, with the goal of revitalizing the urban core of the three Lehigh Valley cities. The focus is on the completion of the SYSTRA study in early 2010, as well as working with PennDOT on an in-progress statewide rail plan which is addressing both passenger and freight rail.


SECTION V: VISION, GOALS AND OBJECTIVES

VISION: A united Lehigh Valley community where elected officials, communities and business leaders come together to develop plans and actions that will create jobs and economic prosperity, improve the quality of life, promote positive, sustainable growth and create a stable tax base. Goal 1: Urban Revitalization and Development. Renew and strengthen the economic development of Allentown, Bethlehem and Easton and other urban areas to make urban sites in the Lehigh Valley competitive with development sites in suburban and rural areas. Objective (a): Convert Brownfields, Market Enterprise Zone, and redevelop KOZ sites into job-

producing and tax generating properties. Facilitate redevelopment of properties through programs such as the Lehigh Valley Land Recycling Initiative.

Objective (b): Attract and retain companies focusing on financial services, technology and

biomedical to city locations by marketing low cost and amenity advantages of these locations to targeted businesses.

Objective (c): Improve housing stock and facilitate neighborhood redevelopment through

increased individual home ownership, mixed income housing, appropriate and adequate rental properties, responsible landlords and pride in the community. Ensure that planning and zoning are appropriately revised to allow for modern yet adaptable reuse of existing urban properties.

Objective (d): Use cultural, entertainment, tourism and non-profit assets as vital elements in

urban revitalization. Objective (e): Ensure that urban infrastructure such as transportation, infrastructure, utilities,

technology, parking, connectivity and access is adequate to support the attraction of businesses.

Objective (f): Protect and enhance the built environment by paying more attention to design,

encouraging infill development that reflects the existing neighborhood development pattern, creating more attractive commercial corridors and protecting our historic and architectural resources.

Stakeholders: • City, County and Municipal Officials • LVEDC, LVLRI, Chambers of Commerce, Workforce Investment Board • Pennsylvania Department of Community and Economic Development • Businesses in Lehigh Valley • Lehigh Valley Planning Commission • PENNDOT • Utility/Technology Companies • Housing Authorities • Neighborhood Organizations • Parking Authorities


• Non-Profit Organizations • Federal Agencies (EPA, USDOT, FHA) Goal 2: Marketing to Target Industries. Develop new and expanded marketing efforts to increase the Lehigh Valley’s capacity for attracting and growing technology companies and other targeted industry clusters. Objective (a): Position the Lehigh Valley as a competitive region for national and international

business investment by building on documented cluster strengths and opportunities.

Objective (b): Focus marketing efforts on industries that have the following characteristics:


and other institutions. • Leverage existing Lehigh Valley assets to minimize land, energy and other

resources. • Expand upon established competitive positioning in the U.S. and globally. • Have a high value-added component in the local economy. • Be classified as growth industries at the state and/or national level.

Objective (c): Keep target industry list up to date by periodic updates to the cluster analysis

method and review by the LVEDC marketing committee. Objective (d): Conduct a detailed resource assessment and profile of at least one target cluster

and develop a marketing strategy based on the strengths identified as the reasons for the cluster’s existence in the Lehigh Valley.

Stakeholders: • Lehigh Valley Economic Development Committees • Pennsylvania Department of Community & Economic Development • Colleges and Universities • Cities and Counties • Chambers of Commerce • Representatives of key target industries • Lehigh Valley Workforce Investment Board

Section V: Vision, Goals and Objectives Goal 3: Workforce Development. Assure that the current and future workforce is trained for the demands of business and industry, focusing on high-priority occupations in targeted industry clusters in the Lehigh Valley. Objective (a): Prepare for potential future shortage of qualified workers, especially in targeted

industry clusters. Objective (b): Provide access to academic and training opportunities for the current and future

workforce.


Objective (c): Target training programs at groups with higher than average rates of unemployment.

Objective (d): Align labor pool and build capacity with forecasted employer needs. Objective (e): Market the benefits of Career Pathways, Career and Technical Education,

Community Colleges and Continuing Education. Objective (f): Maintain a demand-driven, facilitated Workforce System, focused on targeted

industry clusters. Objective (g): Align workforce development with economic development priorities and

educational assets. Objective (h): Identify the human capital potential of Lehigh Valley’s workforce, and develop

strategies to train and retain a qualified workforce. Objective (i): Create prosperity through a highly-skilled workforce.

Stakeholders: • Lehigh Valley Workforce Investment Board, Inc. • PA Career Link® Lehigh Valley • Lehigh Valley Economic Development Corporation • U.S. Department of Labor, PA Department of Labor and Industry and PA

Department of Education, PA Department of Public Welfare • Lehigh Valley Private Training Institutions • Universities/colleges, community colleges, career and technical schools, preK-

12 education, literacy providers • Greater Lehigh Valley Chamber of Commerce • Society for Human Resource Management/Lehigh Valley Chapter • Municipal governments (Counties, Cities, etc.) • Labor organizations • Pennsylvania Department of Aging • Manufacturers Resource Center • Ben Franklin Technology Partners • Small Business Development Centers • Community- and faith-based organizations • SkillsUSA Council • Renew Lehigh Valley • Media outlets Goal 4: Infrastructure Improvements. Improve public and private infrastructure to support sound community and economic development.

Objective (a): Encourage municipalities to correlate development activities with infrastructure

capacity by careful coordination of infrastructure, land use planning, and development at the local, multi-municipal and regional levels.

Objective (b): Discourage the extension/expansion of infrastructure into areas not designated

for growth in the regional plan.


Objective (c): Construct projects on the Transportation Improvement Program of the Lehigh Valley Transportation Study and other public capital investment programs.

Objective (d): Plan and program small scale transportation projects and expedite/simplify the

regulatory approval process to facilitate the completion of such projects. Objective (e): Develop better data and maps that identify general service areas for private

sector infrastructure. Stakeholders: • Lehigh Valley Planning Commission/Lehigh Valley Transportation Study • State Legislators • Lehigh Valley Economic Development Corporation • Counties, Municipalities and Authorities • Pennsylvania Department of Transportation • Developers Goal 5: Science and Technology. Create an environment which facilitates the creation and growth of advanced technology companies. Objective (a): Continue to stimulate and create new ways of generating further growth in

developing advanced technology companies through ongoing partnerships with colleges, universities, research hospitals and other organizations involved in technology transfer and deployment.

Objective (b): Develop a formalized incubator program and services focused on development of

15 new life science companies and attraction of 5 established life science companies in the next five years, preferable located in an urban center with easy access to commercial activity and college students.

Objective (c): Develop a technology investment fund from which up to $500,000 in equity-

oriented capital can be obtained to supplement other sources of funding. Objective (d): Devise an index of technology employment for use in measuring the impact that

technology employment has on the economy of the Lehigh Valley. Objective (e): Continue to foster local networking among technology based companies, local

sources of intellectual capital, equity investors and service providers. Objective (f): Begin to marshal available resources to attract and grow companies in the Lehigh

Valley engaged in energy-related businesses. Stakeholders: • Ben Franklin Technology Partners • Lehigh Valley Economic Development Corporation • Pennsylvania Department of Community and Economic Development • Counties and Municipalities • Colleges and Universities


Goal 6: Cooperation and Partnering. Enhance cooperation and partnering with municipal officials.

Objective: Create strong working relationships with municipal officials to insure coordinated

planning and mutual support for sound municipal planning that supports economic development targets and other goals indicated in this plan.

Stakeholders: • Counties, Municipalities, and Authorities • Lehigh Valley Planning Commission • LVEDC • Developers and Businesses • Departments of Pennsylvania State Government

Goal 7: Land Use. Assure orderly growth of the Lehigh Valley by renewing urban areas, protecting important natural resources, and coordinating development with infrastructure.

Objective (a): Coordinate economic development and community development efforts including

urban redevelopment, brownfield development, urban infill, private and public sector investment at inner city locations.

Objective (b): Improve urban access, streetscapes, and gateways through public investment in

urban transportation projects.

Objective (c): Improve urban communities including historic sites, cultural facilities, parks and

open space.

Objective (d): Preserve open space in suburban and rural areas including major natural

features, farmland and regional recreation.

Objective (e): Support the Comprehensive Plan for the Lehigh Valley created by the Lehigh

Valley Planning Commission and consistent multimunicipal plans created by local municipalities.

Stakeholders: • Counties and Municipalities • Lehigh Valley Planning Commission • Departments of Pennsylvania State Government

• Environmental and Conservation Organizations


SECTION VI. PLAN FOR IMPLEMENTATION

The main purpose of this section is to prioritize economic development projects that are of major importance in the Lehigh Valley and are potentially eligible for funding under the Public Works and Economic Development Act of 1965, CFR 13, Chapter VIII ―Public Works and Economic Development Assistance.‖ The projects listed here are consistent with the goals and objectives of this plan. We also believe that these projects are consistent with the goals of the EDA funding program as follows:

―EDA will provide Public Works investments to support the construction or rehabilitation of essential public infrastructure and development facilities necessary to generate private sector jobs and investment, including investments that support technology-led development, redevelopment of brownfield sites, and eco-industrial development.‖ (13 CFR, Chapter VIII)

A wide array of federal, state and local funding sources need to be considered to implement economic development projects. Potential federal funding sources include the Economic Development Administration, the U.S. Department of Commerce, the Department of Housing and Urban Development, the U.S. Department of Labor, the Environmental Protection Agency and the Small Business Administration. State agencies that may provide program or project funds include the Department of Community and Economic Development, Department of Environmental Protection and the Department of Transportation. To determine projects for this plan, the CEDS Committee prioritized projects that best fit the goals of this document and federal funding guidelines. In 2010, the Committee selected the City of Easton’s 13th Street Silk Mill Project as its number one project one for CEDS EDA funding. Two other projects were included in the top three priority projects for the Lehigh Valley. These projects are listed below.

CEDS EDA Funding 1. City of Easton, Northampton County – 13th Street Silk Mill Project

PROJECT DESCRIPTION The 13th St. Silk Mill project includes the acquisition and redevelopment of several underutilized commercial and industrial properties along N. 13th Street (former Simon Silk Mill and Moon Properties). Proposed redevelopment is a mix of commercial, residential, and open space/community uses with a focus on the creative industries, the arts, and energy efficient technologies. Great progress has been made in 2009. A full site, structural, geotechnical, and building analysis have been completed as well as the development of a master plan. Also, the asbestos and containerized waste remediation has been completed. Additionally, feasibility of a geothermal system has been studied as well as the use of solar technology. The next step in this project is to install the necessary infrastructure to facilitate the rehabilitation of the individual buildings in the complex. Proposals have been received for the engineering and design of this infrastructure. Additionally, cost estimates for the construction of the infrastructure have been generated. The Redevelopment Authority of Easton is in the process of identifying funding sources to complete this important phase of the project. Upon completion of the infrastructure, solidifying and leveraging the private funds needed to complete the building restorations will be viable. Total permanent job creation upon project completion is estimated at 200+.


STATUS OF PROJECT/TIMELINE Site and facilities analysis, program development, and asbestos and containerized waste abatement have been completed. A grant with DCED is pending in the amount of $500,000 for the acquisition of a small parcel and the design of the initial infrastructure at the site that is required to facilitate the rehabilitation of the buildings. This work includes the installation of water, sewer, and gas lines as well as the construction of a central boulevard and the parking lot for phase 1. The construction cost for this phase is estimated at $2,000,000. Engineering and construction of these improvements can begin as soon as the funding source is identified and permits are obtained. Funding sources received to date: EPA $ 200,000 (brownfield cleanup grant) EPA/County 477,000 (sub-grant and sub-loan for environ. cleanup) RACP 3,500,000 (acq.) EPA 40,000 (environmental assessment grant) DCED ISRP 1,000,000 (environmental assessment grant) DCED 115,000 (site planning & analysis, bldg. analysis & master

design) Preserve America 150,000 Total $ 5,557,000 FUNDING

Financial Request: $1 million for infrastructure construction including water, sewer and gas lines, the main boulevard, and the parking lot for Phase 1.

Acquisition $ 3,500,000 expended Site/Facilities Design 75,000 expended Master Plan Design 75,000 expended Environmental 2,000,000 expended or secured for future lead

abatement work Engineering (phase 1 infr.) 500,000 Grant Pending Engineering (later phases) 500,000 unsecured Phase 1 infr. construction 2,000,000 unsecured Construction/hard costs 70,000,000 unsecured private investment Total $ 78,650,000

$2,000,000 needed to complete phase 1 infrastructure. TOTAL PROJECT INVESTMENT/COST: In excess of $70 Million FUNDING PRIORITIES/CRITERIA FOR EDA ASSISTANCE

Support long-term, coordinated and collaborative regional economic development approaches. Support innovation and competitiveness. Encourage entrepreneurship. Support strategies that link regional economies with the global marketplace. Respond to sudden and severe economic dislocations (e.g., major layoffs, plant closures or disasters).


Advance the goals of link historic preservation. Support the economic revitalization of brownfields. 2. City of Bethlehem, Northampton County – Majestic Bethlehem Center

PROJECT DESCRIPTION Majestic Bethlehem Center is a 441 acre piece of property located on the former Bethlehem Steel Plant in Bethlehem. The parcel is owned by a Roski/Majestic affiliated entity, Bethlehem Commerce Center, LLC. It is located adjacent to the LVIP VII and it is a major part of the old Bethlehem Steel, Bethlehem Plant. Majestic Realty is one of the largest private developer of commercial real estate in the United States. They have developments in Southern California, Las Vegas, Dallas, Denver, Atlanta and now Bethlehem. Even in this difficult real estate market place, Majestic Realty is planning to begin construction, within the year, on the development’s first building. They have a number of potential end users looking at the site and they are committed to developing in Bethlehem. The initial building will generate $60 Million in construction investment. The site will require $60 Million for environmental remediation, basic site work and infrastructure improvements in order to transform the Majestic Bethlehem Center from a brownfield into a strong real estate site. When the site is fully developed, Majestic Bethlehem Center will have 7.5 Million square feet of LEED certified space, $500 million in construction investment and create between 3,000 and 5,000 jobs.

STATUS OF PROJECT/TIMELINE Northampton County has provided over $13 Million in funding to build Commerce Center Blvd, a road and rail grade separation project that makes the property fully accessible from Route 412 and I-78. Majestic has secured $1.75 Million in RACP funding and is using those funds to begin site work and environmental remediation work on the site. Additionally, Majestic is awaiting word on Growing Greener funding. The application for the initial $1 Million RACP has been completed and the Budget Office has approved the initial use of those funds. Phase I is estimated at $120 million, including $60 million towards remediation, site work, and infrastructure improvements. Majestic received $250,000 in RACP funding.

FUNDING

The City of Bethlehem and Majestic are requesting $5 million in RACP funding and $2 million in EDA funding. TOTAL PROJECT INVESTMENT/COST: $500 million

FUNDING PRIORITIES/CRITERIA FOR EDA ASSISTANCE Support long-term, coordinated and collaborative regional economic development approaches. Support innovation and competitiveness. Encourage entrepreneurship. Support strategies that link regional economies with the global marketplace. Respond to sudden and severe economic dislocations (e.g., major layoffs, plant closures or disasters). Support the economic revitalization of brownfields.


3. City of Easton, Northampton County – Intermodal/Parking Facility/National High School Hall of Fame Museum PROJECT DESCRIPTION

This project consists of the demolition of two parcels totaling approximately 2 acres on the west side of South Third Street in downtown Easton, followed by construction of an intermodal bus/parking facility and the National High School Hall of Fame Museum. The facility will be a parking deck and bus intermodal facility in the rear and a 3-story, 60,000-square foot commercial building along Third Street which will house, in part, the National High School Sports Hall of Fame Museum. STATUS OF PROJECT/TIMELINE

A feasibility study has been completed, and engineering has begun. Property acquisition is underway, and construction is slated to begin in September, 2010.

FUNDING

Acquisition costs: $ 2,500,000 Secured: $ 4,000,000 LANTA Project development: 250,000 $ 3,400,000 RACP Design: 700,000 Site preparation: 1,900,000 Construction of parking deck & intermodal facility: 6,000,000 Construction management: 800,000 Financing: 200,000 Contingency: 500,000 Building construction: 3,000,000 TOTAL PROJECT INVESTMENT/COST: $ 15,850,000

FUNDING PRIORITIES/CRITERIA FOR EDA ASSISTANCE

Support long-term, coordinated and collaborative regional economic development approaches. Support innovation and competitiveness. Encourage entrepreneurship.


Comprehensive Economic Development Strategy (CEDS) Program

EDA Funding Grant Worksheet

If you are submitting your County’s or City’s project for CEDS EDA Funding, you will need to

ensure that your project must meet the following minimum criteria for eligibility:

Project is clearly defined and ready to proceed.

Project will create or retain jobs upon completion.

Project has the support of municipal officials. (If the project is submitted by an entity

other than the municipality where it is located, a letter from the municipality must be

attached indicating support.)

Project is consistent with CEDS vision, goals and objectives.

Project has region-wide benefit.

Project requires some form of public funding.

If your project meets these criteria, please proceed and complete the following:

Project Name Project Location Submitted by Contact Information Date Submitted

Project Categories:

(Check One)

Planning Study

Construction/Development

(Check One)

EDA Eligible

Non-EDA Eligible

PROJECT DESCRIPTION

Describe the project, identify the region and briefly discuss the expected economic impact. Include any alternative energy and/or green

components. If alternative energy or green components, include costs.



Include timeline for expected date of construction, shovel-readiness. Also include amount and source of funds already committed to the

project.

PROPOSED PROJECT BUDGET

Include all sources/amounts of additional funding, include total project cost.


FUNDING PRIORITIES/CRITERIA FOR EDA ASSISTANCE

Does your project do any of the following? (Check all that apply.)

Support long-term, coordinated and collaborative regional economic development approaches.

Support innovation and competitiveness.

Encourage entrepreneurship.

Support strategies that link regional economies with the global marketplace.

Respond to sudden and severe economic dislocations (e.g., major layoffs, plant closures or disasters).

Enable BRAC-impacted communities to transition from a military to civilian economy.

Advance the goals of link historic preservation.

Support the economic revitalization of brownfields.

REGIONAL GOALS (MAXIMUM POINTS 25)

Project Criteria Guidelines (Check which one best applies.) Scoring

Points

1. Project Priority. Not relevant to CEDS plan or criteria 0

Project is not in CEDS plan but consistent with its

criteria 5

Project is in CEDS plan 10

2. Project is consistent with local land Not consistent or requires zoning changes 0

use regulations. Appears to meet zoning, requires special permit 5

Consistent with local zoning 10

3. Project maximizes the use of existing Requires development of new infrastructure 0

water, sewer and transportation Creates necessary community infrastructure 3

infrastructure. Improves community infrastructure 4

Maximizes use of existing infrastructure 5

Score


PROJECT IMPACT (MAXIMUM POINTS 30)

Project Criteria Guidelines (Check which one best applies.)

1. Project will create or retain jobs. Project is estimated to create/retain less than 25 jobs 2

Project is estimated to create/retain 26 to 50 jobs 3

Project is estimated to create/retain 51-75 jobs 4

Project is estimated to create/retain more than 76

jobs 5

2. Project demonstrates ability to impact

distressed populations, such as provision Does not impact 0

of jobs, improving job skills, or providing higher wage jobs. Demonstrates some direct or indirect impact 3

Demonstrates significant direct impact 5

3. Time frame for when this project is To occur after five years 0

expected to reach its total estimated job retention or creation. To occur between two and five years 3

To occur within two years 5

4. Project will leverage future private

investment. Project will not leverage private investment 0

Project will leverage private investment that is less

than 5% of the total project cost 1

Project will leverage investment that is 5-24% of the

total project cost 2

Project will leverage private investment that is 25-

49% of the total project cost 3

Project will leverage private investment that is greater

than 50% of the total project cost 5

5. Project Location. Located in a rural area 0

Located in urban area but not a Brownfield site 5

Located on Brownfield site 10

Score


READINESS TO PROCEED (MAXIMUM POINTS 25)


1. Feasibility. No market analysis has been done 0

Market analysis study completed 2

List of potential tenants identified 3

Letters of interest obtained from potential tenants 5

2. Project Status. Early planning stages 0

Feasibility or planning study completed 1

Preliminary engineering and costs completed 3

Final engineering plans, costs, specifications and

permitting completed 5

3. Site Control. No site is identified 1

Site is identified for project 3

Site is acquired or option secured 5

4. Availability of local match for funding. No commitment to local match funds 0

Match sources identified 1

Applications made for local match 2

Funding committed or in hand 5

5. Project is consistent with local, state Not clear what plans are made for permits 0

and federal regulations. Necessary permits identified 1

Permits are in process 3

Permits are in hand 5

Score


MANAGEMENT CAPACITY (MAXIMUM POINTS 25)


1. Organization responsible for developing

or managing this project. Unclear who will develop or manage project 1

Project developer has been identified 5

Identified project developer has successful experience

in implementing type of project proposed 10

2. Clear plan of implementation. Project is just a concept 1

Plan for development 3

Organization in place to implement development plan 5

3. Clear marketing plan upon completion. No marketing plan 1

Plan for marketing 3

Market plan in place and organization identified to

conduct marketing 5

4. Project proponent has capacity to

manage economic development projects. Has completed at least 1 other similar project 1

Has completed 2-3 other similar projects 3

Has completed more than 3 other similar projects 5

Score

SCORING RECAP FOR EACH SECTION

Actual score Maximum Score

1. Regional Goals

25

2. Project Impacts

30

3. Readiness to Proceed

25

4. Management Capacity

25

TOTAL SCORE

100


Appendix A

CEDS Committee Data


INITIAL CEDS COMMITTEE

William Bachenberg (NC)

President & CEO

DBSi

3949 Schelden Circle

Bethlehem, PA 18017

(610) 691-8811; (610) 694-1020

[email protected]

Nancy Dischinat (LC)

Executive Director

Lehigh Valley Workforce Investment Board

1601 Union Boulevard


(610) 439-1123; (610) 434-4122

[email protected]

Wayne Barz (LC)

Manager of Entrepreneurial Services

Ben Franklin Business Incubator

115 Research Drive

Bethlehem, PA 18015

(610) 758-5421; (610) 861-8247

[email protected]

Tony Hanna (NC)

Director of Economic Development

City of Bethlehem

10 E. Church Street

Bethlehem, PA 18018

(610) 997-7628; (610) 865-7310

[email protected]

Donald Bernhard (LC)

Manager of Economic Development

& Community Affairs

PPL Corporation

2 North 9th Street, GEN A9-4

Allentown, PA 18101

(610) 774-5458; (610) 774-0193

[email protected]

Diane Elliott (NC)

Lafayette College

Meyher Center

014 Kirby Hall of Civil Rights

Easton, PA 18042-1785

(610) 330-5856; (610) 330-5643

[email protected]

J. Lee Boucher (NC)

President

Bardot Plastics, Inc.

10 McFadden Road

Easton, PA 18045

(610) 253-0600; (610) 252-5497

William Erdman (LC)

Keystone Consulting Engineers

6235 Hamilton Boulevard

Wescosville, PA 18106

(610) 395-0971; (610) 391-8942

[email protected]

Richard Daugherty (LC)

Lehigh County Senior Citizens Center

1633 Elm St.

Allentown, PA 18102

(610) 437-3700; (610) 437-6252

[email protected]

David Fink (LC)

Board of Supervisors Chair

Heidelberg Township

P.O. Box 87

Germansville, PA 18053

(610) 767-1408; (610) 767-1312

[email protected]



Cynthia Lambert (LC)

Good Shepherd Rehabilitation Network

543 St. John St.


(610) 776-3323; (610) 776-3286

[email protected]

Lauren Giguere (LC)

Director of Community Development

City of Allentown

436 Hamilton Street

Allentown, PA 18101

(610) 439-5965; (610) 439-5947

[email protected]

John Mehler (NC)

Northampton County Area Agency on Aging

Governor Wolf Building

45 N. 2nd Street

Easton, PA 18042

(610) 559-3245; (610) 559-3297

[email protected]

John Saraceno (NC)

President

Saraceno Design, Inc.

26 E. 3rd Street, Second Floor

Bethlehem, PA 18015

(610) 866-4422; (610) 866-5279

[email protected]

William Michalerya (LC)

Associate Vice President

for Government Relations

Lehigh University

318 Whitaker Laboratory

5 East Packer Avenue

Bethlehem, PA 18015-3181

(610) 758-5802; (610) 758-5480

Thomas Stine (LC)

President

ISM

One Bethlehem Plaza

Bethlehem, PA 18018

(610) 865-0300; (610) 868-6277

[email protected]

Kenneth Mohr (LC)

Director of Community & Economic Development

Lehigh County Government Center

17 South 7th Street

Allentown, PA 18101

(610) 782-3614; (610) 820-3615

[email protected]

Marc Troutman (NC)

Area Manager

Met-Ed, a FirstEnergy Company

2121 Sullivan Trail

Easton, PA 18040

(610) 250-2811; (610) 250-2849

[email protected]

William Newhard (LC)

Business Manager

International Brotherhood of Electrical Workers

1201 W. Liberty Street

Allentown, PA 18102

(610) 432-9762; (610) 432-8467


Appendix B

Committee Summary

Reports


APPENDIX B

SCIENCE & TECHNOLOGY SUMMARY REPORT

OVERVIEW The Lehigh Valley Economic Development Corporation has assessed the state of technology economy in the Lehigh Valley and has documented existing resources for growing the technology economy. LVEDC has identified 28 action recommendations that fall under 6 major recommendation areas. ISSUE #1 The Lehigh Valley has had significant success in helping to start and grow businesses in various industry clusters, particularly in the life sciences and information technology industries. These successes have pointed out the need for additional resources such as dedicated, purpose built facilities like post incubator space, and shared workspace locations for light manufacturing and product development. Additionally, funding sources and increased connections within experienced industry networks and the creation of new innovation and entrepreneurial networks is needed. Progress and Financial Resources Needed The Ben Franklin Business Incubator Center had been located on Lehigh University’s Mountaintop Campus, and has housed over 80 companies throughout its existence. Currently, 19 companies are housed there, with room for 6-8 more. The high-tech space has over 11,000 square feet of wet lab space, allowing it to better accommodate the growing number of life science industry start ups in the region. This space is not sufficient accommodate the growing need I for reasonably priced cooperative space anticipated into the next decade. As life science companies continue to emerge in large numbers and increasingly look to the Lehigh Valley as a home, , demand can be expected to remain strong for specialized lab spaces. The region should begin planning now for a potential space expansion. An outcome of a Keystone Innovation Zone report (KLIOS Report) was the establishment of the LV Life Sciences Network (LVLSN). Currently, the network consists of more than 60 individuals from over 40 organizations that communicate through an email listserv. This launch will allow these people to remain better connected and will lead to additional Network activity (events, websites) and better outreach and support for other life science companies that begin to look to the LV as their home. Identified Partners Major partners include the Lehigh Valley Economic Development Corp., local governmental entities, Lehigh University and private investors.


Necessary Process

1) Identify potential sites for new facilities. 2) Develop cost estimates for construction/renovation. 3) Identify investment partners. 4) Identify potential funding sources LV Life Sciences Network should continue to be

promoted and expanded. ISSUE #2 Technology based companies frequently need to attract as much as $2-5 million in equity-oriented capital in order to launch and grow. Early funds most typically come from founders, family and friends. These sources typically cannot provide more than $100,000 in capital. Ben Franklin Technology Partners invests as much as $450,000 over three years into seed-stage technology companies. Venture capital funds will not typically invest less than $1 million, leaving a funding chasm of $500,000 to $1 million in to which many high potential companies fall. The Lehigh Valley should seek to develop a fund from which investments of as much as $500,000 can be made to supplement private investors. Progress and Financial Resources Needed Availability of capital is a critical ingredient in helping technology companies to grow. The Southside Bethlehem Keystone Innovation Zone through a combination of state and local government assistance and private sector investment, continues to award $15,000 mini-grants to early stage and startup ventures. Other resources such as the Rising Tide Community Loan Fund, the Ben Franklin Gap Fund and others, from time to time, also provide financial support to this clientele. The Lehigh Valley also houses Originate Ventures a $30+ million dollar venture fund as well as the recently the Lehigh Valley Angel Investors Group. Promotion of local angel and venture capital resources should be continued and venture capital and angel investors from outside the region should continue to be invited to network and view deals available here. Identified Partners Ben Franklin Technology Partners, Originate Ventures, DCED, Pennsylvania Angel Network Lehigh Valley Angel Investors and the Southside Bethlehem Keystone Innovation Zone. Necessary Process

1) Expand the number of events focused on angel and venture capital funding. 2) Continue to network in venues where start up technology companies gather outside

the Lehigh Valley and to create venues where entrepreneurs can gather inside the Lehigh Valley.

3) Continue to help LV companies connect to sources of capital outside the Lehigh Valley.


ISSUE #3 The Lehigh Valley has numerous resources to assist in the development of companies with technologies that support alternative, clean, secure and efficient energy. As businesses in these industries begin to develop in the Lehigh Valley, more effort should be made to direct and focus the resources to these companies. Progress and Financial Resources Needed It is unclear at this time as to what financial resources will be available to stimulate the development of the energy economy in the Lehigh Valley. Identified Partners The Lehigh Valley Economic Development Corporation, Ben Franklin Technology Partners, PA Department of Community and Economic Development Necessary Process

1) Document existing resources and companies involved in energy related industries in the Lehigh Valley.

2) Begin to network the companies and resources in the region and begin to gather information about the industry at large by attending energy related conferences and meeting with people from the energy industry.

3) Work to secure funding from the state and federal governments to invest in energy industry companies.

ISSUE #4 Many technology companies prefer to locate in the center of urban life. The cities of the Lehigh Valley provide the right combination of commercial business activity, inexpensive occupancy costs and available business infrastructure to attract early stage technology companies. Packaging this combination of amenities, and communicating their availability to targeted audience needs a concerted effort. Lehigh Valley leaders should facilitate development of the Lehigh Valley’s cities as areas of attraction for technology based companies. Financial Resources needed There are many aspects to making urban centers friendlier to technology businesses. The recommendations are geared to providing support for initiatives already underway. Aside from each city allocating funds for marketing their communities, the Lehigh Valley Economic Development Corporation should develop a plan to ensure an adequate marketing, planning and activity funding effort to attract technology companies into the urban areas. Identified Partners The Lehigh Valley Economic Development Corporation and the city administrations in Allentown, Bethlehem, and Easton will be the major partners in order to develop action plans for these recommendations.


Necessary Process

1) LVEDC should consult with the economic development leaders in the cities and select key strategic projects and/or establish program resources for the urban centers that will support the attraction and growth of technology companies.

2) Each city and LVEDC should implement a plan for marketing those projects or resources to other partners in order to leverage their investments.

3) Each city and LVEDC should partner to market those projects or resources to the appropriate targeted groups.

ISSUE #5 LVEDC and its economic development partners have been implementing innovative business attraction strategies. Small technology companies frequently require even more non-traditional approaches. LVEDC should develop new, and expand existing, marketing efforts geared toward increasing the Lehigh Valley’s capacity for attracting and growing technology companies. Progress and Financial Resources needed The Lehigh Valley Economic Development Corp’s new strategic plan identifies the need to boost innovation and talent in the Lehigh Valley. In that regard they have formed a new standing committee for that purpose and in collaboration with the Southside Bethlehem Keystone Innovation Zone are developing a series of new initiatives to address this issue. Additionally the Ben Franklin Technology Partners personnel have been active in attending, marketing at, and sponsoring events outside of the region, where technology companies gather. Between the efforts of the Southside Bethlehem Keystone Innovation Zone, the Allentown Economic Development Corp’s Bridgeworks incubator and the Ben Franklin TechVentures Incubator over 50 new companies in various stages of growth have established themselves in the Lehigh Valley. Financial resources for addressing this issue are required more in terms of dedicating time of existing staff members rather than allocating cash. Efforts to increase promotion of the technology economy to local residents and managers expand and refine a college graduate retention initiative, and build a Technology Ambassador Pool should be achievable with adequate funding over the next several years. Identified Partners LVEDC and Ben Franklin Technology Partners, LVTechNet and the Lehigh Valley Life Science Network should lead the effort to dedicate staff and resources. Necessary Process

1) LVEDC and its marketing committee should formally endorse the recommendations found in this report. The new Innovation and Talent Committee should endeavor to adopt these recommendations and address the programming of them

2) Leaders from LVTechNet and LVEDC should meet to discuss the formation of the Technology Ambassador Pool and to begin establishing a list of potential candidates and marketing approach.


3) LVEDC has begun exploring a more formal relationship with LVAIC and its member schools to generate a target list and events to target the return of people that have graduated from LVAIC colleges.

ISSUE #6 Colleges, universities and research hospitals play a central role in the best known technology economies in the country. The Lehigh Valley is fortunate to be home to eight institutions of higher education and several major healthcare providers including a significant research hospital. Economic development leadership in the Lehigh Valley needs to support and create new ways for engaging these institutions in a significant way to facilitate the growth of the technology economy here. Progress and Financial Resources needed An initiative like the Keystone Innovation Zone is an example of a collaborative effort (involving personnel from area hospitals, colleges and economic development organizations) that engage the large academic and healthcare institutions directly and formally in the process of building the technology economy of the Lehigh Valley. In addition, Lehigh University has initiated a technology commercialization effort that has begun to yield results with several new ventures being discussed. LVEDC is working on the creation of a technology transfer program that all colleges and institutions in the region could capitalize on, help further engage faculty with entrepreneurs and would help to better connect college students with local technology companies. Identified Partners Lehigh University, Ben Franklin Technology Partners, LVEDC, LVAIC, and LVTechNet should work together, as needed, on various aspects of these projects. Necessary Process

1) Lehigh University should consider funding and fully staffing their technology transfer program for a long-term commitment.

2) Ben Franklin and LVEDC should work with Lehigh University to seek to adapt the model to other colleges and institutions in the Lehigh Valley.

3) LVTechNet Should work with LVAIC to establish events/forums for faculty at colleges and professionals at other institutions to interact with area entrepreneurs and technology leaders.

ISSUE #7 There are no standard rules for measuring the impact that technology employees have on a local economy. Many states and major metropolitan regions have engaged in a variety of methodologies, most of which included primary market research and surveying. The Science and Technology Subcommittee report estimates that nearly 9% of the workforce in the Lehigh Valley could be considered to be part of the technology economy. Consideration should be given to devising an index of technology employment in the Lehigh Valley, and attempting to update it on an annual or bi-annual basis.


Progress and Financial Resources needed Ben Franklin Technology Partners engaged a team of Lehigh University students in 2006 to develop an initial set of data and conclusions regarding the magnitude of the Lehigh Valley’s technology economy. LVEDC should utilize it’s research capabilities to develop data and draw conclusions regarding the implementation of new programs designed to address these issues mentioned in this report. Identified Partners LVEDC, Lehigh University and Ben Franklin Technology Partners Necessary Process

1) Fully define the desired outcomes of creating an index of the technology economy in the Lehigh Valley.

2) Approach the PA Department of Community and Economic Development for such an index for the various urban areas of the state.


TARGET INDUSTRY SUBCOMMITTEE SUMMARY REPORT OVERVIEW To improve economic prosperity of the Lehigh Valley by targeting selected industries that will:


and other institutions. • Leverage existing Lehigh Valley assets to minimize land, energy and other

resources. • Expand upon established competitive positioning in the U.S. and globally. • Have a high value-added component in the local economy. • Be classified as growth industries at the state and/or national level.

These screening criteria have been combined with a statistical approach of analyzing data from the Pennsylvania Department of Labor and Industry, Center for Workforce Information and Analysis, and the Department of Community and Economic Development’s ―IBM Global Competitiveness‖ study to identify trends and opportunities in employment clusters.

ISSUE #1 Translate this analysis into an action strategy starting with assuring that it is fully integrated into the LVEDC marketing, business retention and business attraction plans. Utilize Targeted Industry Clusters as a marketing, retention and attraction tool to identify the base of existing employment clusters, regional assets and resources to support these clusters and highlight local workforce strengths. Health care and life sciences, diversified manufacturing, business and professional services, information and communications, financial and energy services have been prioritized by LVEDC as the primary economic development opportunities for the Lehigh Valley. Marketing strategies are already being employed to promote the existence of this capacity in the Lehigh Valley in conjunction with our cost advantage over adjacent high-cost areas. Targeted Industry Clusters: The six main Clusters of employers targeted for attraction, retention and expansion include:


Additionally, the focus on the region’s urban centers’ revitalization and declining availability of large tracts of greenfield sites requires that we target and focus on attracting, retaining and expanding those clusters that represent the greatest potential to maximize economic impact and income per developable acre consumed.


That focus favors the targeted clusters cited above, compared to the economic impacts of developing retail and distribution opportunities. Promoting and Fostering Prosperity – Maximizing Economic Impacts with Minimum Land Use

Industry Avg $ Income Jobs Per Acre Income Per Acre

Office & Technology $45,500 35 $1.6 million

Manufacturing $53,600 15 $0.8 million

Retail $24,800 25 $0.6 million

Distribution/Logistics $40,000 5 $0.2 million

Green and alternative energy and energy conservation related businesses are becoming more of a significant potential for the Lehigh Valley. Many regions are talking about targeting such employers, but the Lehigh Valley has a strong base to work from. Our region is home to two Fortune 500 companies, PPL and Air Products. Air Products hydrogen vehicle program is a very unique strength and PPL will be doing many things with both conservation and alternative energy. LVEDC will continue to define how we can build on this strength. Financial Resources Needed Minimal incremental cost, LVEDC marketing program is funded and these are strategy adjustments. Identified Partners LVEDC Investors, private sector, county and municipal Economic Development professionals, PPL, First Energy, Air Products, Commonwealth of Pennsylvania DCED, Regional Universities, Ben Franklin, Manufacturers Resource Center, Economic Partnership, Lehigh Valley Workforce Investment Board, unions, representatives of key targeted industries. Necessary Process Periodic reviews will be carried out by the LVEDC Marketing and other Committees, the Executive Officers, Executive Committee and LVEDC’s Board of Directors. ISSUE #2 Assure periodic updates of the cluster analysis. In the past, new cluster analysis work has been done by outside consultants at a cost of tens of thousands of dollars every few years. This analysis of Targeted Industries was updated in 2010. Financial Resources Needed Staff time and volunteer time. Some financial resources will be needed to access data and information that is not available via public means. That cost should be minor, but is unknown at this time. Identified Partners


Lehigh Valley Workforce Investment Board, Pennsylvania Labor and Industry Center for Workforce Information & Analysis, local volunteers to validate conclusions in the real world.


URBAN CENTERS SUBCOMMITTEE SUMMARY REPORT

OVERVIEW

To address the continuing economic development need in our downtowns, the Urban Centers Subcommittee’s purpose was to examine issues affecting cities and boroughs and propose actionable solutions. Toward this end, the committee evaluated several approaches to urban center economic redevelopment planning and identified critical elements to a plan’s success. With these success factors, the Urban Center Subcommittee examines 19 community and economic development components and focused on each by identifying Proposed Solutions, Recommended Actions, a ―tool box‖ of existing programs and proposed urban centers projects. ISSUE #1 – BUSINESS MAINTENANCE AND DEVELOPMENT One of the most critical elements of healthy urban center development is maintaining and growing existing business and attracting new business. The greatest need for redevelopment and revitalization still rests squarely in the Central Business Districts. The goal is to develop a business and employment friendly environment that is cost-competitive the urban centers. Financial Resources Needed Financial resources include tax incentives, grants, especially for urban brownfield redevelopment, job credits, reduced lease rates, technical assistance and increased networking capabilities. Priority should be given to providing financial incentives only to businesses locating in cities. Identified Partners Partners in the process include city officials (Allentown, Bethlehem, and Easton), county officials (Lehigh, Northampton), municipal/borough officials (Lehigh Valley-wide), local and regional economic development and workforce organizations (LVEDC, Chamber, and Workforce Investment Board), commercial business, Pennsylvania’s Department of Community and Economic Development, TeamPA and colleges and universities. Necessary Process

1. Inventory and target old business and Brownfield properties for redevelopment. 2. Renovate targeted strategic planning areas utilizing façade and streetscape

programs. 3. Implement business attraction and retention programs. 4. Promote and utilize existing financial incentives for redevelopment or create new

programs such as LERTA, KOZ, TIF and KIZ. 5. Determine why businesses stay and/or leave and implement a plan for business

retention and attraction. Develop a tool to integrate business attraction and promotion into economic development planning at the municipal level.

6. Implement a comprehensive marketing effort to promote business activity in urban centers.

7. Engage regional organizations and businesses to grow the urban areas. 8. Encourage Lehigh Valley’s large employers to play a larger role in urban

revitalization and help improve the desirability of the area by locating more


employees in downtowns and directing more non-profits (on whose boards they serve) to do the same.

ISSUE #2 – PUBLIC SAFETY Public Safety is an important regional issue. It is important that visitors and residents to the region’s urban neighborhoods feel comfortable and secure. Financial Resources Needed Support is needed from county, state and federal sources to increase resources to increase public safety. Identified Partners City officials, including law enforcement representatives (Allentown, Bethlehem, Easton), county officials (Lehigh, Northampton), municipal, borough officials (Lehigh Valley–wide), federal and state public safety officials, neighborhood crime watch groups and other participating non-profits, local and regional economic development organizations should work co-operatively to increase public safety. Necessary Process

1. Participate in federal, state and county programs targeted at intensifying police activity in neighborhoods and economic revitalization of problem crime areas, such as Weed & Seed initiatives.

2. Support urban centers as entertainment and business destination. 3. Address quality of life issues in order to improve public perception of safety. 4. Encourage cooperative and regional initiatives. 5. Support community policing programs. 6. Foster and nurture citizen crime watch programs and neighborhood groups.

ISSUE #3 – HOUSING & NEIGHBORHOOD DEVELOPMENT Urban Centers tend to have a concentration of older housing stock, needing ongoing maintenance and rehabilitation. Encourage increased individual home ownership, appropriate and adequate rental property maintenance, responsible landlords and pride in the community. Discourage the concentration of poverty through pursuing a regional approach to provision of assisted and affordable housing. Support the efforts of the Coalition for Affordable Housing. Financial Resources Needed (TBD: Financial resources contingent on applicable proposed Urban Centers Projects from ―Urban Centers Action Plan for cities and boroughs.‖) Identified Partners City officials (Allentown, Bethlehem, Easton) including redevelopment authorities, housing authorities, County Officials (Lehigh, Northampton), Municipals/Borough officials (Lehigh Valley-wide), Local economic development (LVEDC, Chamber, WIB, Main Street Programs), housing


organizations and related non-profits (Alliance for Building Communities, CACLV, Habitat for Humanity, Elm Street Program), historic preservation organizations and federal and state housing representatives. Necessary Process

1. Promote mixed income housing use. 2. Create activities and entertainment on ―Main Streets‖ to attract visitors and

consumers, as well as to serve the residents. 3. Utilize Home and other programs for de-conversion of multi-unit housing back into

single family units. 4. Implement home ownership programs and financial assistance (e.g. city programs

such as home improvements, façade improvements, CACLV education and assistance programs, lead paint abatement etc.).

5. Implement rental unit inspections as well as ―point of sale‖ inspections. 6. Use existing neighborhood and community groups such as Allentown’s Properties of

Merit, Old Allentown Preservation Association, Main Street Programs and other grassroots efforts for ―clean-up days.‖

7. Celebrate cultural diversity via festivals and awareness/educational programs 8. Recognize and utilize historic preservation principles, tax incentives and

organizations as tools for neighborhood development. 9. Promote the uniqueness of urban centers offering a mix of office and retail uses near

residential opportunities. 10. Create incentives and market vacant space over storefronts for conversion to market

rate loft apartments. 11. Beautify neighborhoods and improve pedestrian friendliness through design and

implementation of streetscape programs. 12. Incentivize inclusionary zoning in the region’s suburban communities.

ISSUE #4 – PLANNING, ZONING & BUILDING Facilitate adoptive reuse of buildings through revisions of planning and zoning laws. Financial Resources Needed (TBD: Financial resources contingent on applicable proposed Urban Centers Projects from ―Urban Centers Action Plan for cities and boroughs.‖) Identified Partners City officials including planning and code department representatives for Allentown, Bethlehem and Easton, county officials (Lehigh, Northampton), municipal/borough officials and appropriate staff from Lehigh Valley Planning Commission. Necessary Process

1. Educate municipalities on building codes and code enforcement. 2. Encourage consistency in code enforcement. 3. Encourage application of Municipal Planning Code that provides for multi-municipal

planning and zoning.


4. Revise zoning to encourage development of business districts and preservation of urban form.

5. Locate business development and permitting assistance in single location (―one-stop shop‖) therefore making it easy for business to understand and navigate the approval process.

6. Encourage all communities to follow recommended residential densities as outlined in the Lehigh and Northampton Counties’ Comprehensive Plan.

ISSUE #5 – CULTURAL ENTERTAINMENT Cultural, historical and entertainment assets are typically located in our urban centers. The goal is to successfully use cultural, historical and entertainment assets as vital elements in urban renewal. Financial Resources Needed (TBD: Financial resources contingent on applicable proposed Urban Centers Projects from ―Urban Centers Action Plan for cities and boroughs.‖) Identified Partners City officials in Allentown, Bethlehem and Easton, county officials (Lehigh, Northampton), municipal/borough (Lehigh Valley-wide), non-profit arts, cultural, historic preservation organizations, colleges and universities, including accompanying volunteer base, Lehigh Valley Economic Development Corporation, state and federal funding sources Necessary Process

1. Establish urban arts and cultural districts. 2. Encourage cities and boroughs to partner with historical and cultural organizations to

enhance their urban centers and make them a destination. 3. Use a regional approach to market and fund cultural assets of urban centers. 4. Advocate for increased funding for the arts including building rehabilitation funding. 5. Foster development of volunteer base.


ECONOMIC & WORKFORCE DEVELOPMENT SUBCOMMITTEE SUMMARY REPORT

ISSUE #1 – ALIGNMENT OF ECONOMIC DEVELOPMENT, WORKFOCE DEVELOPMENT AND EDUCATION It is our goal that the Lehigh Valley has an employer demand-driven, world-class workforce system aligned with economic development, education and the community by focusing on Targeted Industry Clusters. Economic development, workforce development and education also must be aligned to ensure that all partners understand the region’s job and labor market information, as well as the workforce delivery system that can provide employers and job seekers with the employment, training, and support services in our region. This alignment is critical for attracting and retaining firms providing career opportunities with family sustaining wages and benefits. Our goal is to align the current and future workforce with the academic skills and training opportunities based on the Lehigh Valley’s targeted industry clusters and economic growth. Financial Resources needed Dependent on continued identification of employer needs and resource mapping. Identified Partners Lehigh Valley Economic Development Corporation, Lehigh Valley Workforce Investment Board, Inc., PA CareerLink® Lehigh Valley, LVWIB Industry Partnerships, Lehigh Carbon Community College, Northampton Community College, Four-Year Education Institutions, Manufacturers Resource Center, Society for Human Resource Management/Lehigh Valley Chapter, Greater Lehigh Valley Chamber of Commerce, Lehigh Valley Planning Commission, Lehigh Valley Association of Independent Colleges, Lehigh Valley Training Institutions, Career and Technical Schools, and PreK-12 education community. Necessary Process

1. Ensure that economic growth and employer needs are aligned with workforce initiatives, skills training requirements, and education outcomes.

2. Align labor pool with forecasted employer workforce requirements and industry trends.

3. Continue to build upon the strength and collaboration between the Lehigh Valley Workforce Investment Board, Inc. and Lehigh Valley Economic Development Corporation to provide economic developers and employers with information and data about the Lehigh Valley’s workforce skills and availability.

4. Strengthen the cooperation between education, training and workforce developers, enhancing and integrating with the one-stop comprehensive workforce delivery system.

5. Enhance the occupational profile of the region’s workforce including current skills, projected shortages and skills deficiencies.

6. Continue to educate the workforce on the skills needed for current and future high growth/high demand occupations in the Lehigh Valley.


ISSUE #2 – PREPARING FOR A POTENTIAL QUALIFIED WORKFORCE SHORTAGE Based on demographic trends and employer needs, the Lehigh Valley must prepare for potential future shortages of qualified workers in targeted industry clusters. By understanding and anticipating industry needs, as well as regional, statewide, national or global market forces, we can prepare an educated and trained workforce to meet these needs, allowing employers to remain competitive. Financial Resources needed To be determined. Identified Partners United States Department of Labor, Pennsylvania Department of Labor and Industry (PA L&I), PA L&I Center for Workforce Information Analysis, Lehigh Valley Workforce Investment Board, Inc., PA CareerLink® Lehigh Valley, LVWIB Industry Partnerships, Lehigh Valley Training Institutions, Two- and Four-Year Education Institutions, Career and Technical Schools, Media Outlets, Pennsylvania Department of Aging, Society for Human Resource Management/Lehigh Valley Chapter, Lehigh Valley Economic Development Corporation, Lehigh Valley Association of Independent Colleges, Greater Lehigh Valley Chamber of Commerce, and PreK-12 education community. Necessary Process

1. Continue to research and analyze data that indicate the composition of the labor force including the percentage of older workers, women and minorities in the workplace and implement a workforce action plan addressing employer needs and market trends.

2. Continue to research the forecasted needs of business, industry and government. 3. Continue to assist employers in understanding the importance of quality/balance of

life issues. 4. Continue to assist employers in the development practices geared to retention and

recruitment of their workforce. 5. Continue to educate job seekers and employers on labor market and economic data

in the Lehigh Valley, including the diversity of employers in our region. 6. Prepare a workforce that is adaptable to change. 7. Continue to work closely with the PreK-16 education community with career

awareness and preparation initiatives. 8. Continue to embrace cultural and generational diversity. 9. Retain and attract a technically qualified and entrepreneurial workforce. 10. Continue to develop our workforce delivery system based on industry needs and

focused on targeted industry clusters. 11. Be the catalyst for change for transportation, childcare, elder care and other support

service issues. 12. Continue to develop countywide and regional workforce preparation programs. 13. Continue to evaluate the Lehigh Valley workforce system and its partners, and

position them as centers of information and conduits of change. 14. Continue efforts to regionalize our workforce system, including opportunities to

extend beyond our current two county service territory.


15. Utilize media outlets and develop outreach strategies to educate, inform and involve the community in workforce development.

ISSUE #3 – PREPARE A WORKFORCE THAT IS APPROPRIATELY TRAINED FOR NEW AND EXISTING COMPANIES AND INDUSTRY CLUSTERS As indicated by Lehigh Valley employers, we must increase the number of students who graduate with solid academic and technical skills and promote career pathways through career and technical education and community colleges, thereby increasing the number of career and technically trained students and providing school administrators, teachers, guidance counselors and the public with information on the basic, technical, work readiness and employability skills needed for work. Our goal is to have world-class, competitive workforce. Our mission is to ensure an employer demand-driven, world-class workforce system focused on targeted industry clusters and high-priority occupations, and, aligned with economic development, education and the community. Financial Resources needed Dependent on needs identification and continued examination of industry cluster analysis. Identified Partners Lehigh Valley Workforce Investment Board, Inc., PA CareerLink® Lehigh Valley, LVWIB Industry Partnerships, Lehigh Career and Technical Institute, Bethlehem Area Vocational-Technical School, Career Institute of Technology, SkillsUSA Council, Society for Human Resource Management/Lehigh Valley Chapter, Lehigh Valley Economic Development Corporation, Two- and Four-Year Education Institutions, Lehigh Valley Training Institutions, PreK-12 education community, Literacy Providers, Greater Lehigh Valley Chamber of Commerce, and Lehigh Valley Association of Independent Colleges. Necessary Process

1. Continue to promote the need to increase the number of people graduating with solid academic and technical skills through high school degree attainment, in conjunction with a career and technical education, and continuing with a plan of lifelong learning, especially through community colleges.

2. Ensure that students acquire the necessary literacy and numeracy skills required to obtain and retain employment.

3. Promote the need for our region to have a more educated workforce through the strategy that the new high school diploma is an associate’s degree; accelerate the process to attain education and credentials through programs such as career pathways and early college opportunities (i.e., dual enrollment and middle college, etc.).

4. Continue to monitor employer workforce needs, focusing on targeted industry clusters.

5. Continue to assess critical skills needed in the workforce and share findings.

6. Promote the benefits of attaining industry-driven credentials and technical skills, through a career and technical/community college education to post-secondary education to lifelong learning.


7. Continue to engage and inform school administrators, teachers, guidance counselors, parents and the community about business and industry skill sets. Facilitate ongoing discussions concerning gaps to ensure all parties have a clear understanding of required skills and the economic development strategic plan for the Lehigh Valley.

8. Continue to create opportunities for PreK-16 educators to interact with business to develop a better understanding of the global economy and the workforce needs of local companies.

9. Continue to develop strategic partnerships between business and education.


INFRASTRUCTURE SUBCOMMITTEE SUMMARY REPORT

OVERVIEW The infrastructure subcommittee discussed the specific components that comprise the broad definition of infrastructure and how to categorize the various components in order to facilitate the development of challenges and goals. Subsequent discussions focused on identifying the current and anticipated problems or needs with specific categories of infrastructure as well as the stakeholders and goals to address the problems during the next five to ten years. The following lists of infrastructure categories and issues summarize the work of the subcommittee. Infrastructure Categories Transportation Water Sanitary Sewer Storm Sewer Solid Waste Energy Utilities Electric Natural Gas Information Systems Phone Cable Internet Wireless Definition – excess infrastructure capacity is the capacity remaining in the facility after accounting for the capacity required to serve existing users and the capacity required for prospective users within the area directly serviceable by the existing infrastructure. ISSUE #1 – MINIMAL OR NO CORRELATION BETWEEN INFRASTRUCTURE CAPACITY AND THE NEEDS OF THE COMMUNITY It is an issue because some planning documents do not limit growth to areas where infrastructure capacity exists while infrastructure extensions/expansions are constructed in areas where growth should not occur. GOAL: Encourage municipalities to correlate development activities with infrastructure capacity through the use of regional or sub-regional joint planning activities and discourage the extension/expansion of infrastructure into areas not designated for growth. IDENTIFIED PARTNERS: State Legislators Counties Lehigh Valley Planning Commission Lehigh Valley Economic Development Corporation Municipalities and Authorities Developers


ISSUE #2 – LACK OF PROGRESS ON SMALL TRANSPORTATION PROJECTS DUE TO LIMITATIONS OF RESOURCES, BOTH FINANCIAL AND PERSONNEL Examples: Small Bridge Projects Sub-Regional Intersections Route 100/Route 29 Route 309/Route 100 It is an issue because major projects have historically utilized all available resources, particularly personnel resources at state agencies. GOAL: Develop innovative methods of administering and completing such projects within the existing procedural and financial constraints and, if necessary, initiate legislative efforts to eliminate the constraints. IDENTIFIED PARTNERS: State Legislators Pennsylvania DEP PennDOT Counties Lehigh Valley Transportation Study Lehigh Valley Planning Commission Lehigh Valley Economic Development Corporation Municipalities and Authorities ISSUE #3 – LACK OF DATA REGARDING INFORMATION SYSTEM SERVICE AREAS AND NO CENTRALIZED SOURCE OF SUCH INFORMATION FOR EXISTING AND PROSPECTIVE BUSINESSES This is an issue because businesses need access to such information for development purposes and providers are protective of the information due to concerns about competitors and, more recently, security/terrorism. IDENTIFIED PARTNERS: State Legislators Lehigh Valley Economic Development Corporation Information System Owners Existing Businesses Developers/New Businesses GOAL: Lehigh Valley Economic Development Corporation / Lehigh Valley Planning Commission to develop maps identifying general service areas of various providers and data base of information regarding available service and contact information for system owners.


Appendix C

Committee Minutes

2010


Planning Committee/CEDS Strategy Committee Meeting

May 25, 2010, 12:00 Noon to 1:30 p.m.

Lehigh Valley Economic Development Corporation

Large Conference Room

Members Present: Representing Northampton County – John Mehler, Lee Boucher, Marc Troutman, and Esther Lee. Representing Lehigh County – Cindy Lambert, Sara Hailstone for Mayor Pawlowski, Don Snyder, Don Bernhard and Jerry Frank. Members Absent: Dr. Arthur Scott, Northampton County. Others Present: Steve Melnick and Laurie Demko of LVEDC. Also present were John Conklin, Northampton County, and Tony Hanna, City of Bethlehem. I. Welcome. – Cindy welcomed the members of the CEDS Strategy Committee. Introductions were made since newly-appointed members were present from Northampton County. II. EDA/Projects/CEDS. A. Recap of Last Meeting. – Steve reported that following the March 19th Joint Meeting, the staff met to rank/rate the projects presented at the Joint Meeting. Three projects are being presented today for discussion and selection. B. Update on EDA Meeting in Philadelphia. – Steve met with Alma Plummer, of the EDA, in Philadelphia on May 6th. Highlights of that meeting include:

Applications will not be accepted until after September 30, 2010.

Applications must be tied directly to a strategic component of the CEDS plan document. It must fulfill a need that is specified in the plan document.

At the time of application, the applicant must have its cash match for the grant in hand.

Applicant must document other funding sources they have explored in addition to the CEDS funding source.

Applicant must identify the industry cluster listed in the plan document that it is associated with.

The applicant must demonstrate and document that each project is a collaborative effort.

Updates to the EDA’s website include an on-line tool for applicants to rank their own projects before submission; sample applications; requirements checklist for each application; and 7 programs which they now administer.


C. Discussion and Project Selection. The top three projects are:

1. 13th Street Silk Mill Property Redevelopment – 92 score (21 readiness; 7 of 8 EDA criteria)

2. Majestic Bethlehem Center – 88 score (15 readiness; 6 of 8 EDA criteria); and 3. Intermodal Park Facility/High School Sports Hall of Fame Museum – 88 score (17

readiness; 3 of 8 EDA criteria). Highlights of the discussion were:

Old criteria were used in scoring; no adjustments were made for new criteria. It was also suggested that the Strategy Committee be given the top three projects next year without each project’s score.

Tony noted that since the form was submitted in March the Majestic had all its permits in place which would adjust the scoring. A lengthy discussion was had on updating the information on all three projects and re-scoring each. It was decided to use March 30th as the deadline date.

Don Snyder noted that the Majestic would exceed either project in job creation and felt the merits of each project should be discussed. The project selected should have the most impact on this region in terms of economic development.

Also discussed was having the projects presented to this committee and it was decided that was the purpose of the presentations at the March meeting.

Discussion turned to which cluster each project would fit into – transportation, manufacturing, hospitality, or arts and culture?

It was decided the Silk Mill Property Redevelopment project would benefit the most from receiving the grant money and would have a major impact on economic development for Easton and the region.

Whereupon a motion was made, seconded and carried to endorse the Silk Mill project for EDA CEDS funding, with Esther Lee and Don Snyder opposing the endorsement. D. Discussion on Drafting New CEDS Document. – The plan document is a five-year comprehensive plan and is updated annually. It is prepared jointly by the Lehigh Valley Planning Commission and the LVEDC Planning Committee. The committee will need to take a closer look at this year’s updates, and in particular focus on sections pertaining to the Valley’s initiatives and identification of industry clusters. Cindy requested that the staff prepare an analysis of the current plan indicating what needs to be changed and how that will happen. Steve agreed to prepare that analysis. III. Membership & Dates/Times for Future Meetings. – Since LVEDC committee restructuring is still in process, these items will be determined at a later date. The meeting adjourned at approximately 1:20 p.m. Respectfully submitted, Laurie A. Demko Executive Assistant


Appendix D

Cluster Analysis


LEHIGH VALLEY TARGETED CLUSTERS INDUSTRY REPORT - 2010

Goal: To improve economic prosperity of the Lehigh Valley by targeting selected industries. Process: Targeted industries are determined using qualitative screening criteria in combination with a quantitative statistical approach and the review of previous studies. Screening criteria isolates industries which will:


institutions, soft-and hardware. • Leverage existing Lehigh Valley assets without exhausting land resources. • Expand upon established competitive positioning in the U.S. and globally. • Have a high value-added component in local economy. • Be classified as growth industries at the state and/or national level.

Conclusions: The Committee’s conclusions from this approach have resulted in a

recommended targeting of six broad categories of industries:


Healthcare and Life Sciences relates to the well-being of the population and those social

services provided. Revolves around healthcare using direct patient services and research to improve the quality of life for all generations, as well as, activities which support healthcare. Life Sciences incorporate findings from research into the organization and processes of the body into the exploration and innovation of procedures and new methods of caring for patients. Includes:

• Hospitals • Ambulatory Healthcare Services • Nursing and Residential Care Facilities • Biology Laboratories/Other Research Facilities

Diversified Manufacturing and Services includes nearly all durable goods manufacturing industries and a number of non-durable goods industries. Major technological advances have changed the nature of manufacturing, increasing the demand for highly-skilled workers. Most employers in these industries must be flexible in their production processes to take full advantage of the rapid and constant technological changes. The viability of businesses in this cluster depends on a skilled and competitive workforce.


Includes:

• Chemicals and Plastics • Electronics, Communication Equipment • Medical Equipment/Technology and Devices • Metals/Metal Fabrication, Non-Metallic Products • Specialty Printing and Packaging Design and Manufacturing • Bio-medical, Pharmaceuticals • Vehicle and Vehicle Equipment • Food Processing • Supply Chain and Logistics Services

Business and Professional Services includes all of the services a company needs to operate and sustain business. They are targeted towards the business world enabling more efficient operations and the ability of companies to better serve their stakeholders and meet organizational goals. Industry involves a range of services and skill levels, from marketing consultants and engineering firms to logistics management. Includes:

• Professional, Scientific, and Technical Services • Specialized Design Services • Architecture, Accounting, Legal, and Advertising Services • Data and Information Processing, Disaster Recovery

Information and Communication revolves around the production, refinement, and transfer of information and the methods employed in its distribution. This includes the main companies that communicate the information, as well as those providing support to the industry by providing outlets and servicing the transfer of information. Includes:

• Software Publishers • Internet, Services, Internet Publishing and Broadcasting • Sound Recording, Motion Picture Broadcasting • Telecommunications

Financial Services deals specifically with Finance, Banking, Credit, and Insurance specializations. These are services provided to businesses and consumers, and a high level of skill and specialization are generally required by personnel. The included services allow clients to benefit with financial stability, security, coverage, or opportunities to change the value of assets. Includes:

• Securities, Commodity Contracts, and other Financial Investments • Monetary Authorities, Banks • Funds, Trusts, and Financial Vehicles • Insurance Carriers • Data and Customer Service Centers


Green or Energy-Related Manufacturing and Services includes industries directly involved in extracting materials used to generate both traditional and alternative energy; producing, transmitting, distributing or supplying this energy or energy efficient technologies; engaged in manufacturing items used to product this energy; engineering, construction and project management firms associated with the energy industry; and alternative and renewable energy companies. Includes:

• Utility companies, including electricity and natural gas distribution, propane and energy-related products

• Petroleum distribution • Alternative/renewable energy, including solar, wind, and others • Energy conservation equipment manufacturing, products and services • Manufacture of alternative energy generation equipment and systems