Lawsuits Filed In Allentown

Developer Abe Atiyeh has filed a lawsuit against Allentown, Pa., challenging the downtown arena zone, and the city has filed a countersuit.

Atiyeh challenged the creation of the zone, which would channel state and local tax revenues into its funding. The city filed a counterclaim of $50 million, alleging Atiyeh wants to delay the city from being able to take out a $220 million bond issue it needs to build the 8,500-seat facility, according to the city’s Morning Call newspaper.

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.