Bethlehem Community and Economic Development Director Alicia Karner on March 26 told the Community Development Committee that she wants to add two new positions to the Community and Economic Development department, part of the city government.

The positions are a full-time economic development administrator and a coordinator to help administer the new developments expected under the City Revitalization and Improvement Zone (CRIZ) which covers 130 acres in several locations within the city.

Among the CRIZ-related projects that could increase demand for city services are a development of the asbestos-plagued Martin Tower on Eighth Avenue and Eaton Street and a proposed seven-story building on Fourth Street in south Bethlehem.

Karner also wants to upgrade the part time housing inspector to a full time position. She said this is feasible because of a three-year, $40,000 grant from Lehigh University that would be used to finance the upgrade. She said Lehigh University's off-campus students living in private homes and apartments give the university an interest in funding this position.

The Community Development Committee, chaired by City Councilman Bryan Callahan, agreed with Karner on the housing inspector issue and voted to forward the proposal to city council, recommending approval.

Reflecting a growing tendency of government to save the expense of paying for employees' retirement and health insurance by outsourcing jobs to contractors, the housing inspector position is a contracted position and would remain so under Karner's proposal.

Regarding the other two positions, the committee agreed that Karner needs the help but balked at the idea of recommending the funding of new positions when they are expecting $1.5 million shortfall in the upcoming annual city budget.

Unusually high snow fall this winter cut into the city's budget by about $400,000.

"It's going to be a very tough budget," said Callahan. "We can't save enough paperclips to make up the shortfall. We need to give tax payers a break."

"We can afford these positions," said Mayor Bob Donchez, who sat beside Karner. "It will be a return on investment."

However, while committee members conceded the need to increase staff, it continued to express concern about the retirement and health care costs for regular employees. They favored outsourcing the proposed positions to contractors to save pension and health care expenses.

Sensing an opportunity to get the staff increases, both Donchez and Karner supported the idea of contracting the positions.

"To think the CRIZ will not have an impact on the department is unlikely," said Councilman Eric Evans, who also attended.

The committee voted to send, without recommendation, Karner's proposal for increasing the size of her staff to the City Council's Finance Committee for its consideration.