City sues developer over his actions to slow arena project

Posted: 8:00 PM EDT Apr 22, 2012   Updated: 6:59 PM EDT Apr 23, 2012
New plans for hockey arena

Allentown is entering the legal fight over its hockey arena project.

The city and two city development boards are suing developer Abe Atiyeh.

Last week Atiyeh sued the state over Allentown's Neighborhood Improvement Zone (NIZ).

The state-created zone takes tax money from workers to fund projects like the arena.

Atiyeh is against that.

The city now claims Atiyeh's lawsuit is specifically meant to hurt the city and the arena project.

The city is seeking $150 million in damages.

Atiyeh's lawsuit is similar to a lawsuit filed by Hanover and Bethlehem Townships in Northampton County.

Several other townships have also voted to join that lawsuit.