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City Terminates Agreement with DTE A

10/01/2014
City Terminates Agreement with DTE A
The City of Allentown has terminated its agreement with Delta Thermo Energy A to build a waste-to-energy facility on Kline’s Island.

In a three page letter detailing the city’s decision City Solicitor Jerry Snyder wrote that DTE A had “consistently failed to advance plans for the project and clearly cannot meet the deadline for final project operation. Under the circumstances the City has no reasonable alternative than to declare the Agreement terminated.”

Project proponents first met with the city in 2009.  City Council approved the plan in March 2012. DTE A failed to satisfy a financing requirement which had an initial January 31, 2013 deadline. The city extended the deadline on more than one occasion. The last deadline expired April 1, 2014.

The Agreement required the facility to be completed by January 1, 2016. Snyder wrote that it is now beyond doubt that DTE cannot satisfy the final completion date.

The city’s contract with Waste Management for municipal solid waste collection and disposal runs through the end of 2015.

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