Bethlehem to Look Again at Plan for New Street Apartments at Site of Former Pat’s News; Commission Wants to Save Facade, Developer Says Costs Would Be Too High in Clash of History Versus Development

April 14, 2026

— Jeff Ward, Lehigh Valley News Briefs

Bethlehem’s Historic Conservation Commission will look again at a plan for a seven-story Southside apartment building at 327 S. New St.

That’s where Pat’s News Stand used to be. I miss that place but it’s gone.

The plan is a big one and would require demolition of several buildings, and the commission — the HCC — has asked that some of the brick facade be saved.

The development team said earlier that would be difficult and make the project a financial loser.

Here’s an excerpt from a Jan. 21 letter posted on the city website from DCI Engineers to North Star Construction Management:

“We understand there is a desire by some parties to maintain the front brick facade of the 321-323 S. New Street building, while the remainder of the building behind and adjacent to this facade is demolished to accommodate redevelopment of the site. We believe this will be very challenging to accomplish and may compromise the integrity of the wall or the market success of the proposed redevelopment,” according to the letter from Steven Krumenacker of DCI.

DCI’s website says one of Krumenacker’s favorite college classes was statics, the study of rigid bodies, so I suspect he knows what he’s talking about.

The developer’s plan is for 42 units, a mix of one- and two-bedroom apartments. The HCC’s wish of keeping the facade would limit the project to 40 units and make the proposal a financial dud, according to an analysis by North Star:

“In summary, taking into account the added work to make the existing building viable to use along with the reduction in rent, the revised Debt Coverage ratio indicates the project is infeasible,” according to North Star.

Debt coverage ratio is a projection of whether a project will generate enough income to cover its debt service. The HCC requirement would add $259,800 to the project, according to Northstar, and cut the number of apartments to 40 from 42. So costs go up, revenue goes down and debt coverage ratio falls.

The HCC’s desire to save a brick facade versus the developer’s need to put up 42 apartments will clash again Monday.

I’m neutral here, but I’ve walked through the 300 block of New Street many times. I miss Pat’s News Stand, but as for the facade, I won’t miss it if it goes. Perhaps I have no sense of history. I recall there was also a little nook nearby where an old fellow used to sell fruit, at least in theory.

The Historic Conservation Commission will meet at 6 p.m. on Monday, April 20, in Town Hall. Agendas are subject to change. Check the city website closer to the meeting date.