From The Morning Call

Bethlehem planners won't back zoning to ban Steel gambling

City Council will be urged to assess slots' impact. Hearing drew a fervent crowd.

By Spencer Soper
and Nicole Radzievich Of The Morning Call

August 25, 2005

Gambling opponents suffered a setback Wednesday when the Bethlehem Planning Commission refused to back a proposal to ban a $300 million slots parlor on former Bethlehem Steel land.

After 51/2 hours of debate before a crowd of about 700, the planners voted 5-0 to recommend that City Council reject a zoning change that would prohibit gambling of any kind in selected industrial areas, including the Steel site.

The decision was based on the very narrow question of zoning and did not reflect what commissioners believe about gambling coming to the Christmas City. Commission members, who faced a deadline to vote on the proposal Wednesday, said there was not enough time to study how it would affect other parts of the city.

''The proposed amendment did not address the overall question of where gambling could go,'' said commission Chairman Andrew McIntyre.

McIntyre joined commission members Lawrence Krauter, Jean Black, Andrew Twiggar and Martin Smith in making the recommendation after hundreds spilled into Lehigh University's Packard Auditorium to have their say on the amendment.

The crowd overflowed into the hallway, and police and fire officials had to interrupt the session to clear people from the aisles and doorways.

Plumbers, iron workers and electricians in union T-shirts wore stickers that said ''Build BethWorks Now'' to show support for a gambling and entertainment complex they see as the most promising proposal yet to revitalize the dormant steel plant and preserve its rich history.

''At stake in this development ... is an ongoing partnership of south Bethlehem's organizations and residents to establish a brand-new community that will ensure the celebration of Bethlehem steelmaking heritage in the history of America,'' said Roger Hudak, a South Side resident.

He accused the city of unfairly trying to prevent the proposed slots parlor. ''It seems as though the city is changing the rules as the game is being played … [City Council members] shouldn't retool zoning laws to suit their personal preferences and religious beliefs.''

Opponents had their own buttons and signs dotting the auditorium: ''Seniors Against Slots,'' ''Teens Against Slots'' and ''Gambling is Fraud.''

''This city was founded on Christian principles,'' Bethlehem resident Harold Seyfried said, referring to its Moravian heritage. ''We're demoralizing our city ... by allowing the games to come in.''

The zoning change would cover the city's industrial districts, including the 126 acres where BethWorks Now and Las Vegas Sands Corp. want to build the slots parlor, hotel, shopping mall and up to 1,200 apartments wrapped around restored Bethlehem Steel buildings.

City Councilmen Gordon Mowrer and Joseph Leeson Jr. proposed the change. Council, which has ultimate say on the proposal, is expected to hold a public hearing in September.

The emotional debate that played out Wednesday pitted residents eager for economic growth and money for historic preservation on the Steel site against those who said the risks of increased crime and addiction that could accompany gambling are too great.

Slots opponents told the Planning Commission not to be fooled by optimistic projections provided by the project's backers. The promise of a windfall for government services and an economic spark to revitalize south Bethlehem is not worth the baggage slots will bring, they said.

Bethlehem resident Larry Burd said gambling would be followed by a spike in crime and increases in bankruptcies, divorces, child abuse and even suicides.

''Don't be deceived,'' he said of the economic projections. ''Gambling breeds greed, and greed breeds corruption.''

But Bethlehem resident Mary Pongracz said slots opponents were getting carried away with their arguments. Lehigh Valley residents already travel to Atlantic City by the busload, and that money could stay in town, she said.

''I want a world-class casino in Bethlehem,'' Pongracz said. ''I am appalled by the view of some people that anyone who pulls a slot machine is an addicted gambler.''

Even local business owners are split on the issue.

Lucy Lennon, owner of Dancing Fish restaurant, said a casino wouldn't provide the economic foundation Bethlehem Steel once did with its good-paying union jobs. Instead, the slots parlor would bring low-wage service jobs not worth the problems gambling could bring, she said.

''I personally gamble ... but I do not want it in downtown Bethlehem,'' she said.

But Michael Kohn, owner of Patti's Petals flower shop, said the BethWorks project would be even better than Bethlehem Steel because it would stimulate the economy without creating environmental problems or putting employees in jeopardy.

''I believe a slots parlor will bring all that was good with Bethlehem Steel without all the negative,'' Kohn said.

City officials specializing in planning and economic development recommended against the proposed zoning change.

Darlene Heller, the city's planning and zoning director, said the amendment does not specify where a slots parlor should be allowed in the city. The Bethlehem Steel site is better than other possibilities, such as the Westgate Mall, because it is removed from residential areas, she said.

Tony Hanna, the city's community and economic development director, said a slots parlor is the only hope to redevelop the old plant while preserving its history, because nothing else will generate the millions of dollars needed to restore Steel's buildings.

''Without gaming and the money it generates, we fear nothing will happen on this site except the demolition of historic buildings,'' Hanna said.

Mayor John Callahan, who is on vacation, has argued the Lehigh Valley is probably going to get one of the two available gaming licenses for freestanding slot parlors. The city, he argued, will still feel the effects of crime and addicted gamblers. But if the gambling hall is in Bethlehem, he said the city will get millions of dollars in taxes and a $10 million host fee each year to deal with the repercussions.

Michael Perrucci, a New Jersey attorney and partner with BethWorks Now, said the project would create 5,500 jobs on-site plus thousands of construction jobs.

''We believe it gives the most bang for the buck,'' Perrucci said.

nicole.mertz@mcall.com

610-861-3614