Allentown turned out to be the chief financial beneficiary of the smoky trash fire at the Americus Hotel in the spring.
The hotel's owner, Mark Mendelson, received not a penny of the $99,786 insurance payment.
The Americus owes the city nearly $145,000 in delinquent water payments, $37,000 in real estate tax and penalties, and $21,744 in unpaid assessments to the Downtown Improvement District Authority.
Allentown officials have not decided which delinquency to pay down with the city's share of the insurance payment, which amounts to $77,617.59, according to Frayda Kamber, an assistant city solicitor.
Of the total Allentown received from Lexington Insurance Co., the city was required to pay $5,987.16 to the Philadelphia insurance adjustors Clarke & Cohen/Adjusters International and Louis Hilt Electrical Contracting of Catasauqua, which made electrical repairs after the May 24 fire.
Even though more fire-related repairs need to be made at the hotel, none of the money the city received can be used to complete the work, according to Kamber.
"There are outstanding things that need to be fixed, but those are the responsibility of the Americus, not the city," Kamber said.
Reached Thursday, Mendelson's son, Seth Mendelson, who is playing an increasing role in the family's businesses, said he was not familiar with the details of the settlement and deferred to his attorney.
Mendelson's attorney, William Harvey of the Philadelphia law firm Klehr, Harrison, Harvey, Branzburg & Ellers, did not return a telephone call.
The fire happened in a hall that exits onto Court Street in the back of the hotel. Part of what burned was a pile of bagged trash, 20 to 30 feet long and 3 feet high, that accumulated after the Americus' garbage contractor ceased servicing the property because he wasn't being paid.
Although the fire was confined to that service area of the 13- story landmark at Sixth and Hamilton streets, subsequent city inspections found numerous building and safety code violations, and the operation was shut down.
The closing of the hotel drove one restaurant out of business, resulted in the relocation of other commercial enterprises and displaced numerous long-term residential tenants.
On Sept. 10, Mendelson paid Lehigh County $45,562.62 to save the Americus from being sold for back taxes.