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Council approves submission of $9.075 million RACP award for Martin Tower redevelopment
Summary
Council authorized city officials to execute application and cooperation agreements to pass through $9,075,000 in Redevelopment Assistance Capital Program funding for the Martin Tower project; the resolution passed 6–0 with one member recusing due to a family connection.
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The Bethlehem City Council authorized city officials to execute applications and cooperation agreements needed to submit a Redevelopment Assistance Capital Program (RACP) grant application for $9,075,000 for the Martin Tower redevelopment project.
Sean Ziller, deputy director of economic development, said the RACP award traces to February 2009 and has been amended multiple times; the current action represents an administrative step to finalize the funding flow for construction. "This original RACP award goes back to 02/2009," Ziller said, noting the file has reached amendment No. 12.
Council members clarified how the funds will be used and what remains on the site. City staff confirmed the $9,075,000 will be applied to the two medical office buildings at the front of the property; residential development on the rear acreage has not moved forward at this time. Officials said the zoning for the site permits up to roughly 1,085 residential units, a limit established by prior zoning changes.
Mayor Reynolds and Mr. Ziller also said the Martin Tower project is a rare case in Pennsylvania of a property using both RCAP/RACP assistance and CRIS benefits because the RACP award predated the CRIS program (2013) and has been carried forward with state approvals. Councilwoman Grimsey Smith recused herself from the vote, citing a conflict — she said a family member is employed by Lehigh Valley Health Network (LVHN), a project beneficiary — and the resolution passed 6–0 with that recusal.
The council’s vote authorizes the mayor and controller to execute the required forms and cooperation agreements for the RACP pass-through. The action was framed as part of a long-running redevelopment effort and a procedural step to secure previously committed state funding rather than the start of a new funding request.

