Committee Hearing, December 1, 2009

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, December 1, 2009 10:20 a.m. - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN DARRELL L. CLARKE COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM GREENLEE COUNCILMAN JACK KELLY COUNCILWOMAN BLONDELL REYNOLDS BROWN BILL 090704 - An ordinance establishing a neighborhood improvement district in an area that generally includes Cheltenham Avenue with boundaries of Wadsworth Avenue on the west and Broad Street on the east... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Good morning, everyone. This is a public hearing of the Committee on Rules. I would ask Mr. Erekson to please read the title of Bill No. 090704.

Bill No. 090704, an ordinance establishing a neighborhood improvement district in an area that generally includes Cheltenham Avenue with boundaries of Wadsworth Avenue on the west and Broad Street on the east, Ogontz Avenue with boundaries of Cheltenham Avenue on the north and 67th Avenue on the south and Wadsworth Avenue with boundaries of Cheltenham Avenue on the northeast and Michener Avenue on the southwest; to be known as the Greater Cheltenham Avenue Business Improvement District; designating Greater Cheltenham Avenue Business Improvement District Inc., a Pennsylvania non-profit corporation, as the Neighborhood Improvement District Management Association for the District; approving a 3 12/1/09 - RULES - BILL 090704 plan for the District, including a list of proposed improvements and their estimated cost, and providing for assessment fees to be levied on property owners within the District; authorizing the Director of Commerce, on behalf of the City, to execute an agreement with Greater Cheltenham Avenue Business Improvement District Inc. relating to the District; and authorizing Greater Cheltenham Avenue Business Improvement District Inc. to assess property owners within the District a special property assessment fee to be used in accordance with the approved plan, all in accordance with the provisions of the Community and Economic Improvement Act and under certain terms and conditions.

Thank you. For the record, I would like to note that on June 11th, 2008, City Council held a hearing on Bill No. 080376 which will establish a business 4 12/1/09 - RULES - BILL 090704 improvement district covering the same area as is provided for in the bill 4 currently being considered. This bill 5 was approved. However, after the passage of the bill, it appears that some of the property owners had not been included with notification that they would be assessed for fees. Therefore, the sponsor proceeded with a new ordinance 11 that is before us today rather than amend the previous one. That is why we're here today. So I would ask our first witness to please take the witness table, identify yourself and proceed with your testimony. And while you're doing that, I would like the record to note that we do have a quorum. To my extreme left, Councilman Kelly, Councilwoman Brown, Councilman Clarke, Councilman Greenlee, and to my right is Councilman Goode. (Witness approached witness table.) 5 12/1/09 - RULES - BILL 090704

Thank you. Good morning.

Good morning, Madam Chairwoman and members of City Council. My name is Andrew Frishkoff. I am the Director of Neighborhood Economic Development for the City of Philadelphia's Commerce Department. In June 2008, we provided testimony in support of Bill 080376 authorizing the establishment of the Greater Cheltenham Avenue Business Improvement District. We understand that the previous legislation did not name all of the properties that would be subject to the BID assessment and today's bill is being submitted to correct those omissions and to ensure that all of the properties that would be included within the District are named and properly notified. I would like to reiterate the Commerce Department's support for the cleaning, public safety and marketing 6 12/1/09 - RULES - BILL 090704 activities that the Greater Cheltenham Avenue Business Improvement District will provide. I am happy to answer any questions you may have. Thank you for your time and consideration.

Thank you very much, sir. Are you aware of any property owners who continue to object to the adoption of this bill?

None have contacted our office at the Commerce Department.

Do you know how many additional properties have been specifically included in the bill for assessment purposes?

I do not. The community sponsors have that information. We'll be happy to share that.

And someone is here that would be able to tell us? 7 12/1/09 - RULES - BILL 090704

Yes.

Thank you. Are there any questions from members of the Committee? (No response.)

Mr. Frishkoff, you will remain in the event that we have some questions?

Thank you.

Thank you. Our next witness, please. (Witness approached witness table.)

Good morning. Welcome. Kindly identify yourself for the record.

Denise Holloway. Good morning, Councilwoman Verna, other members of the Rules Committee and members of City Council. My name is Denise Holloway from the Office of State Representative Dwight 8 12/1/09 - RULES - BILL 090704 Evans. I am here today to testify on behalf of Bill No. 090704, which establishes a neighborhood improvement district known as the Greater Cheltenham Avenue Business Improvement District. The District focuses on revitalization of portions of the economic corridors of Cheltenham Avenue, Ogontz Avenue and Wadsworth Avenue. The Greater Cheltenham Avenue Business Improvement District is the second phase of a larger plan, the Cheltenham/Northwest Philadelphia Inter-Municipal Cooperative Planning Initiative. In the past, the commercial areas of Cheltenham, Ogontz and Wadsworth Avenues were vibrant, bustling strips catering to the many needs of those it served. However, in most recent years, these same corridors have been slow to attract high-quality merchants and are perceived as unsafe and unclean. The BID is looking to reverse this trend. Through cooperation with 9 12/1/09 - RULES - BILL 090704 Cheltenham Township, some of the benefits of the BID are: Commercial enterprises within Northwest Philadelphia and the region will increase their market share. BIDs have worked successfully in a thousand communities, including several in the Philadelphia region and a bi-municipal BID on City Avenue. Bids keep costs low because all owners share the cost of security, cleaning and marketing. On average, this BID will cost each property owner approximately $224 per year, or about 61 cents per day. BIDs are planned and run by businesspeople, those who are assessed. BIDs increase property values for merchants and those in the surrounding residential area. BIDs promote neighborhood beautification. BIDs enhance public safety. BIDs improve customer experience, and BIDs improve quality of life. In addition to local business participation, the BID will also solicit 10 12/1/09 - RULES - BILL 090704 financial support from local non-profit organizations that will also benefit from this partnership. Thank you for this opportunity to testify today.

Thank you very much. I'm really not too familiar with this area. Can you tell us if all of these property owners are within the City limits or are some located in Cheltenham Township?

For this legislation, the 239 properties that have been included are in the Philadelphia area.

Thank you. What is the total annual budget and what percentage is supplied to the City property owners?

The budget is $400,000 collectively, but that's -- Philadelphia will pay about ten percent 11 12/1/09 - RULES - BILL 090704 of that, but the collective budget between Philadelphia and Cheltenham is $400,000, and Philadelphia will pay about 38,000.

Has a new revised final plan for the proposed district been submitted?

I'm sorry? Has a new plan been?

Submitted.

Well, the committee has met during the time, and so -- the committee has met, and I wouldn't say that it's a revised plan. It's been a progressive plan to fit the needs of both sides of Cheltenham Avenue between Cheltenham and Philadelphia.

Thank you. The Chair recognizes Councilman Greenlee.

Thank you, Madam President. 12 12/1/09 - RULES - BILL 090704 Good morning, Ms. Holloway.

Good morning.

Just quickly, you mention -- and you partially answered it, I think, in a previous answer. You say through cooperation with Cheltenham Township. What exactly are they providing? What are they doing?

Actually, they have about, I believe it's about, 40 properties that are also contributing to the BID, and they are contributing the majority of the budget to the BID. So they've been equal partners with decision-making and analyzing what would best -- the needs of both sides of Cheltenham, because the idea is a regional effect, since most people that are shopping in the area don't realize -- they don't consider that they're crossing the street to go to Cheltenham or Philadelphia. So we're looking at it as a regional opportunity.

I mean, 13 12/1/09 - RULES - BILL 090704 I'm kind of familiar with this area. Has there ever been a study like as far as who shops there? Is it more Philadelphians that shop there, more people from Cheltenham or Montgomery County? Do you have a feel for that?

I would say I can only answer that question anecdotally. Anecdotally, more Philadelphians shop there on the Cheltenham side in the Cheltenham Mall and the Cedarbrook Plaza than people from Cheltenham, though there has been a larger influx of people from Cheltenham that have started to come to those areas.

Okay. All right. Thank you.

You're welcome. Are there any other questions from members of the Committee? (No response.)

Thank you very much. 14 12/1/09 - RULES - BILL 090704

Thank you.

Do we have anyone else to testify on this bill? (No response.)

Seeing no one, this will conclude our public hearing and will be continued to the call of the Chair. Thank you very much. (Committee on Rules concluded at 10:30 a.m.) - - - 15 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on December 1, 2009, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)