Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure Project topic
No spam. Unsubscribe anytime.
Supervisors waive letter‑of‑credit requirement for LTMA sewer project tied to Lehigh Valley Resort & Spa
Summary
Lehigh Township supervisors unanimously approved waiving a letter‑of‑credit requirement for LTMA’s sewer plant land development so the authority can proceed with a $4.5 million first‑phase contract backed by $3 million in grants and a cash‑replenished $300,000 escrow pledged by developer Jaindl.
Lehigh Township supervisors on Nov. 11 voted unanimously to waive the township’s usual letter‑of‑credit requirement for the Lehigh Township Municipal Authority’s (LTMA) land development agreement tied to a new wastewater treatment plant that supports the planned Lehigh Valley Resort & Spa.
LTMA representatives said phase‑one construction bids came in at approximately $4.5 million. The authority has secured roughly $3 million in grant funding (a mix of local share grants and an H2O grant). Developer Mr. Jaindl has agreed to provide the required local match by posting $300,000 in cash with the authority; as contractor invoices are paid the cash will be replenished until the full estimated match (about $1.4–$1.5 million) is met.
Attorney Joseph Zator and LTMA’s Fred Ebert said the approach differs from a typical land development escrow because the improvements are tied to authority infrastructure rather than public roads that the township will adopt. Attorney David Backenstoe explained the township’s standard practice is to require security for public improvements, but noted the authority would remain ultimately responsible for the project if the developer defaulted. Board member David Hess moved to waive the letter‑of‑credit requirement; Cindy Miller seconded and the motion carried unanimously.
LTMA said the next steps are issuing the notice to proceed and executing the land development agreement; mechanical equipment installation is planned in a later phase. Board members asked for documentation of permits and bonds associated with the public bidding process before finalizing agreements.
The waiver clears a path for LTMA to begin phase‑one work before grant reimbursements are received, with the $300,000 escrow intended to cover early contractor payments and be replenished by the developer as required.
