Three-building multi-use complex gets approval from Bethlehem CRIZ authority

A $38 million plan to put up a three-building complex of offices, storefronts and apartments along East Third Street in south Bethlehem got approval Thursday to receive tax benefits through the City Revitalization and Improvement Zone.

The centerpiece of the Greenway Commons would be a five-story building between Fillmore and Pierce streets that would have ground-floor retail space and 95 luxury apartments above.

To its east there would be a four-story building with more ground-floor retail and 15 apartments. To its west, there would be another four-story building with retail and 63,000 square feet of Class A office space.

With conditional approval from Bethlehem's CRIZ authority board, developer Bethlehem Renovations can take that to banks to help secure private financing for the project. The project received approval from the city Planning Commission in October.

Several lenders have expressed interest in investing in the project, not only because of its inclusion in the CRIZ but also because it represents another step in the "rebirth of south Bethlehem," said Rob DeBeer, a development director for Bethlehem Renovations.

Among the conditions attached to the approval is proof of private financing for the project. The developer and authority also must negotiate the "level of increment," or the percentage of tax deferment the project will be allowed to leverage.

The CRIZ covers 130 acres in Bethlehem, including large portions of former Bethlehem Steel land, and allows developers to use certain state and local taxes to offset construction costs, so long as new jobs are created.

According to the developer's CRIZ application, the project would create more than 200 temporary construction jobs, more than 200 office jobs and 300 retail jobs.

DeBeer told the authority some prospective tenants have expressed interest and that Bethlehem Renovations may have announcements regarding anchor lessees by the time construction begins in March. He anticipated construction would take nine to 12 months.

Bethlehem Renovations is a company of BethWorks Now, one of the original investors in the redevelopment of the Bethlehem Steel brownfield.

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Three-building multi-use complex gets approval from Bethlehem CRIZ authority