Allentown, Developer File Dueling Suits Over Arena

Allentown filed the $50 million lawsuit against Abe Atiyeh on Monday, one business day after the developer challenged the creation of a zone that channels state and local tax revenues into its funding

A developer and the city of Allentown have filed dueling lawsuits over the construction of a downtown arena.

Allentown filed the $50 million lawsuit against Abe Atiyeh on Monday, one business day after the developer challenged the creation of a zone that channels state and local tax revenues into its funding.

The Morning Call of Allentown reports the city's suit claims Atiyeh wants to prevent the city from taking out a $220 million bond issue for the 8,500-seat arena.

Atiyeh and two townships filed separate suits saying they don't want the project funded by income tax money from residents who work inside the zone but live outside it.

The city says litigation could delay construction a year if the bond financing can't be completed May 1.

Copyright AP - Associated Press
Contact Us