Committee Hearing, September 20, 2011

COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON RULES3 Room 400, City Hall6 Philadelphia, Pennsylvania Tuesday, September 20, 20117 10:10 a.m. PRESENT: COUNCILMAN JAMES KENNEY, CHAIR10 COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DiCICCO11 COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM K. GREENLEE12 COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN13 COUNCILMAN FRANK RIZZO, JR. BILL 110307 - An ordinance establishing a neighborhood improvement district in an area16 that generally includes, with the exception of those properties having frontage on north17 Broad Street, the area bounded by the northeast corner of Broad and Vine streets,18 the southeast corner of Broad and Spring Garden streets, the southwest corner of 8th19 and Spring Garden streets, the northwest corner of 8th and Vine streets and the20 northeast corner of Broad and Vine streets... - - -22 2

Good2 morning. 7 Today we will take testimony8 and have a public meeting on one bill,9 which is Bill No. 3 COUNCILMAN DiCICCO: Thank you,4 Mr. 5 After a number of conversations with6 individuals of the Callowhill Loft7 District and a conversation I had about a8 week or two ago, I believe, with9 Mr. 18 Having spoken with Sarah McEneaney and19 John Struble, who represent -- or two of20 the representatives from the Callowhill21 District, we will be amending this bill,22 drawing a new boundary that will include23 the bulk of the Vine Street Callowhill24 District and excluding that area which is25 9/20/11 - RULES - BILL 1103071 more commonly referred to as the2 Chinatown community, for lack of a better3 description. 10 So we will proceed with11 testimony. The Chair will call witnesses12 up. So I just want to let those folks13 primarily on the left, who are14 complaining about possibly having15 increase in their real estate tax, that16 you won't have anything to worry about,17 but as I leave here in about another18 80-something days and a new District19 Councilperson comes in, I can guarantee20 you as this NID begins to take hold and21 progress starts to develop, the folks on22 my left are going to be asking for why23 are we not getting our streets cleaned,24 why are we not getting lighting, why are25 9/20/11 - RULES - BILL 1103071 we not getting some of the benefits that2 our neighbors to the west are getting. 9

Excuse me.10 Excuse me. This is not a sports arena.11 COUNCILMAN DiCICCO: For those12 of you who are not --13

Excuse me.14 You're not going to be shouting out and15 interrupting this proceeding. The16 Councilman has said that the people who17 are here who are opposed to the bill are18 for the most part, if not all part, being19 taken out of it. So I don't see where20 there's any further conflict when the21 folks --22 (Audience members shouting23 out.)24

When you25 9/20/11 - RULES - BILL 1103071 have a chance to testify, you can say2 it's not true, but what I'm saying for3 the record now is that it's clear from4 his statement that the people who are5 opposed to this bill are being removed6 from it. So I don't continue to7 understand where the conflict rises, and8 if anyone would choose not to testify as9 a result of being removed from the10 process or from the bill, that would be11 fine, too. But what I don't want to see12 happen is the people on the list come up13 here and testify that they are opposed to14 something that's already been fixed,15 because you're not going to be included16 in the bill.17 So this is not a gripe session.18 This is a hearing to get a bill out of19 committee, and the bill will be amended20 accordingly.21 Before we go further, I'd like22 to recognize the fact that Councilman23 Rizzo is also in attendance today.24 Councilman, do you have25 9/20/11 - RULES - BILL 1103071 anything else or should we start the2 witness list?3 COUNCILMAN DiCICCO: That's4 fine. Thank you.5

Thank you6 very much.7 Alan Greenberger, please.8 (Witness approached witness9 table.)10

Good morning,11 Mr. Chairman and members of Council. My12 name is Alan Greenberger and I'm Deputy13 Mayor for Economic Development and14 Director of Commerce. 16 110307. 22 The creation of a Neighborhood23 Improvement District, referred to as24 NIDs, is consistent with the City's25 9/20/11 - RULES - BILL 1103071 Strategic Plan, particularly with regard2 to the core principles of healthy and3 sustainable communities. NIDs strengthen4 communities through cleaning,5 beautification, public safety and6 marketing activities. A number of people7 are here today to testify on the proposed8 bill. 15 First, the NID is one element16 of an overall strategy to manage and plan17 for growth of an area that we believe is18 poised for significant positive changes19 in the coming years. 25 9/20/11 - RULES - BILL 1103071 Second, resources of the NID,2 as outlined in the plan and budget, will3 not -- and I emphasize will not -- be4 used for the redevelopment, programming5 or administration of any reuse of the6 Reading Viaduct. 10 In its initial plan, this NID11 is only about providing cleaning and12 other services that are beyond the City's13 capacity for the benefit of a dynamic,14 diverse and growing community. 20 But that will require a new public21 approval process. 10 Regular weekly cleaning services to the11 NID area are projected to commence12 following the comprehensive cleaning13 program. 6 110307. 9

Any10 questions for Mr. Greenberger?11 (No response.)12

Thank you13 very much for your testimony.14

Thank you,15 sir.16

Sarah17 McEneaney, John Struble, Michelle Liao18 and Paul Levy.19 Is Paul Levy here?20 (No response.)21 (Witnesses approached witness22 table.)23

Good24 morning.25 9/20/11 - RULES - BILL 1103071 MS. McENEANEY: Good morning.2

4 MS. McENEANEY: Good morning,5 Mr. 6 My name is Sarah McEneaney. I'm a7 self-employed artist, and since 1979, I8 have lived and worked at 1115 Hamilton9 Street in the Callowhill industrial area10 just north of Center City. It's a very11 diverse neighborhood, from the makeup of12 the people who live and work there, to13 the street grid bisected by Ridge Avenue14 and the abandoned Reading Viaduct and in15 the beautiful 19th Century industrial16 architecture. 19 We are actively involved in zoning and20 preservation issues, and we have21 neighborhood clean-ups twice a year. But22 it's not enough. We need a Neighborhood23 Improvement District. 2 The process began just over a3 year ago and outreach to all our4 neighbors has been the major concern. We5 are a 100 percent volunteer group of6 residents, businesses and property7 owners. After a couple informal8 meetings, we organized two town hall9 style meetings that were held on October10 7th and December 16th of 2010. Paul Levy11 presented a feasibility study of the area12 at both meetings, and Councilman Frank13 DiCicco explained the process of forming14 a NID at the December meeting. 24 Biweekly NID Steering Committee meetings25 9/20/11 - RULES - BILL 1103071 began in January 2011. 4 The focus of the work is5 outreach. A tri-fold flyer was designed6 and produced and from mid March to mid7 April was delivered door to door and by8 mail throughout the neighborhood. 13 In addition to widely14 distributed emails, the Steering15 Committee has consistently reached out16 personally to community members, inviting17 them to get involved in the NID formation18 process. We have continually stressed19 that this is a working process and that20 we want everyone in the proposed21 boundaries to be involved. We have22 repeatedly stated in meetings and in23 follow-up emails that the ordinance is24 open to change and have listed the name25 9/20/11 - RULES - BILL 1103071 of the NID, the boundaries of the NID, an2 affordable assessment and budget3 accountability as issues we are open to4 working on with our neighbors. We have5 even met with an independent mediator in6 an effort to keep communication going7 forward. 15 I respectfully ask you to look16 over the information in the packets. 19 Both John Struble and myself have been20 attending Drexel University's BID/NID21 Certification Program. But, most22 importantly, we have done extensive23 outreach and have broad support24 throughout the neighborhood. 10 When you look at the photos,11 which we also made large that are in your12 packet, it's easy to see why we need a13 NID. 17

Thank you18 for your testimony.19 Please identify yourself for20 the record.21

I am Michelle Liao.22 I live on 310 North 11th Street. I have23 a very simple testimony.24 My hope for our neighborhood25 9/20/11 - RULES - BILL 1103071 for CRVNID is that I want to take strolls2 in the evenings to feel the fresh air and3 the breeze and not to be worried about my4 safety. And I want to see kids playing5 and laughing and full of joy. I want to6 wander into the neighborhood restaurant7 around the corner and have a nice bowl of8 noodles. I want to see people walking to9 work under trees that's covered with buds10 in the springtime. I want to see flower11 boxes on the sidewalks instead of piles12 of trash. I want to see a variety of13 businesses set up shop and all doing14 wonderfully well. I want to see studios15 and galleries full of fine work and they16 are selling. I want to see artist work17 that's sprout out everywhere. I want to18 see well-lighted streets with pedestrian19 and cyclist at leisure. I want to see20 small patches of garden, vegetable and21 flowers here and there. But mostly I22 want to see all the neighbors, especially23 our Chinese neighbors, working together24 for a safe, clean, vibrant and our unique25 9/20/11 - RULES - BILL 1103071 neighborhood.2 Thank you.3

Thank you4 very much for your testimony.5 Sir, please identify yourself6 for the record.7

My name is John8 Struble.9

John, could10 you do me a favor and pull the microphone11 close to you. Thank you.12

My name is John13 Struble. I live and work at 310 North14 11th Street. I am here to support Bill15 No. 110307.16 I have lived in this17 neighborhood for about 14 years and I've18 seen it go through considerable changes,19 and I would like to see it now become the20 next improvement district in the City of21 Philadelphia.22 There are presently 1423 improvement districts in Philadelphia in24 various neighborhoods and in extremely25 21 9/20/11 - RULES - BILL 1103071 different demographics. There's almost2 700 in the United States. Some of them3 assess only businesses; others assess4 business as well as residential5 properties.6 In Philadelphia, the largest is7 the Center City District, with more than8 4,500 properties taxed that creates a9 budget of almost $15 million to be spent10 each year. The smallest is in Port11 Richmond, with only 76 properties.12 We have about 550 properties13 that would give us almost $250,000 to14 spend in our neighborhood each year for15 the next five years. After five years, a16 sunset provision applies and we must then17 ask -- come to you for reauthorization.18 What is common about all these19 districts is that the money is spent only20 within the boundaries of the district.21 Nobody likes taxes, but this is local22 taxation at its very best and with direct23 representation. Each improvement24 district has its own management25 22 9/20/11 - RULES - BILL 1103071 association whose makeup is determined by2 the neighbors. This is overseen by a3 Board of Directors, and each year the4 budget gets audited by the Commerce5 Department.6 We have done a lot of work and7 outreach for this initiative. If we fell8 short in any way, it's not because we did9 not try to reach everybody.10 However, we are now beginning a11 process where those who want to see12 changes in the bill can come and step up13 and be part of that process. This will14 make our neighborhood much cleaner,15 greener and more secure and with a16 brighter future.17 Thank you.18

Thank you19 for your testimony.20 Mr. Levy, could you please take21 a chair.22

I have additional23 copies of my testimony here as well.24 Good morning. My name is Paul25 23 9/20/11 - RULES - BILL 1103071 Levy. I'm President of the Center City2 District and I'm pleased to offer my3 support for the creation of a4 Neighborhood Improvement District in the5 area that can serve the very mixed-use6 community roughly bounded by Broad, 8th7 Street, Spring Garden to South Street.8 Today, you will hear much9 discussion about the appropriate name for10 the area, about affordable housing and11 market-rate housing, and what should be12 done with the derelict Reading Viaduct13 that runs through this area. All of14 these are important issues that need to15 be debated. But today's question is very16 simple: Can a neighborhood be successful17 if it's covered with litter and graffiti,18 if it's the site for illegal dumping and19 if dark underpasses create a sense of20 danger? If you are in favor of dirty,21 dangerous and dark, then don't support22 the Neighborhood Improvement District.23 But if you believe that dozens24 of other business improvement districts25 24 9/20/11 - RULES - BILL 1103071 and special service districts that you2 have authorized in neighborhoods across3 the City over the last 20 years have made4 a difference, then vote yes to enable the5 residents and businesses of this6 neighborhood to create their own NID.7 If you believe that in times of8 scarcity government doesn't always have9 enough resources to solve every problem,10 then vote yes to enable this community to11 contribute their own resources to this12 proven mechanism of neighborhood13 self-help.14 This neighborhood does not15 belong to the Callowhill residents. It16 doesn't belong to Chinatown. The17 neighborhood doesn't belong to just18 businesses. It doesn't belong to just19 residents. This is a very diverse20 community that belongs to all of them21 together. The group that planned the22 Neighborhood Improvement District is23 quite diverse in makeup, and they made24 special efforts to reach out in multiple25 25 9/20/11 - RULES - BILL 1103071 languages and hold multiple meetings.2 As the City Planning Commission3 works with the community on a plan for4 the future, there will be plenty of room5 for more market-rate housing and for more6 affordable housing. There's a lot of7 vacant land and empty property in this8 neighborhood. There will be room for9 more residents and more businesses. But10 none of it will happen if they don't11 start with the basics, making the place12 clean and safe. I urge you to support13 the NID.14 Thank you very much.15

Thank you16 for your testimony.17 Councilman Greenlee.18

Thank19 you, Mr. Chairman.20 Mr. Levy, just a quick21 question. You kind of allude to it here,22 but obviously you have a lot of23 experience with the NIDs and the BIDs.24 After these districts have been in place25 26 9/20/11 - RULES - BILL 1103071 for a certain amount of years, what have2 you found the reaction of the residents3 and the businesses in the area once that4 has been established? I guess5 particularly maybe some of those people6 who had concerns about it to start with.7

Well, I think our8 history is illustrative. This Council9 approved our district in 1990 and 1991.10 We had 12 percent of the property owners11 object to the creation of the Center City12 District. When we reauthorized it in13 1994, we had percent object, and in14 each subsequent reauthorization, we've15 had less than five properties out of16 4,000 object. Every district, save one,17 which had some major problems, has been18 reauthorized in this city.19 Obviously people first react20 and say, Wait a minute, I don't want to21 pay more. It's a normal reaction. It22 happens every time. But when people23 understand that these resources are24 resources that they control, that they25 27 9/20/11 - RULES - BILL 1103071 direct what happens to them and that2 these resources have an immediate effect3 on the public environment, the support4 for these has been enormous.5 Just to amend John's number,6 there's now 1,000 of these in the United7 States, 14 here, another 24 across8 Pennsylvania. This is a tried and true9 method of public and private cooperation.10

Thank11 you.12

Mr. Levy,13 what was the one that wasn't14 reauthorized?15

I believe Kensington16 went through a period of time where they17 suspended, but then they have restarted.18

So they're19 back on?20

They're back on,21 yes, but they suspended for a period of22 time.23

Thank you24 very much.25 28 9/20/11 - RULES - BILL 1103071 Any other questions for2 Mr. Levy?3 (No response.)4

Thank you5 very much.6

Thank you.7

Let the8 record reflect that Councilmembers Clarke9 and Blondell Reynolds Brown are both in10 attendance.11 Amy Hooper, Matthew Pestronk12 and Robert Cheetham.13 (Witnesses approached witness14 table.)15

Please16 identify yourself for the record.17

My name is Amy18 Hooper. I would like to begin my19 testimony by thanking Councilman Frank20 DiCicco for his many years of support of21 the Callowhill community and the22 Chinatown community, as well as for many23 years of public service to our city. We24 couldn't have gotten to this point25 29 9/20/11 - RULES - BILL 1103071 without you, and deep-hearted thanks.2 I'm here today to ask3 Councilman DiCicco and all of the members4 of City Council to support the creation5 of the Callowhill Reading Viaduct6 Neighborhood Improvement District, or7 CRVNID, with boundaries between Vine and8 Spring Garden, 8th and Broad.9 I just want to say that this10 testimony was written before Councilman11 DiCicco's announcement that there would12 be a slight amendment to the boundaries.13 Twenty years ago I moved to14 1238 Callowhill Street. Although some of15 my friends and family questioned my16 decision to live in an industrial area of17 the City that was sparsely populated, I18 knew I found my place among a community19 of urban pioneers. Since then, I have20 become a community activist, working with21 my neighbors and community leaders, like22 many of you, to build a safe and clean,23 vibrant community while preserving its24 historic architecture. I'm a founding25 30 9/20/11 - RULES - BILL 1103071 member of Callowhill Neighborhood2 Association and I am the current3 President.4 Today, the Callowhill community5 has become a home for artists, galleries,6 dance studios, community gardens, social7 service organizations, entrepreneurs and8 businessowners, schools, restaurants, as9 well as a place for families to raise10 children. It has been an amazing11 transformation to participate in.12 For more than a decade,13 Callowhill Neighborhood Association, its14 volunteer Board and members have worked15 diligently to improve the quality of life16 for all residents, businessowners and17 visitors to our neighborhood. We have18 successfully collaborated with other19 neighborhood organizations by holding20 biannual clean-ups, tree plantings,21 building award-winning community gardens22 and organizing town watch patrols.23 However, these volunteer efforts alone24 are not enough, and they're not enough to25 31 9/20/11 - RULES - BILL 1103071 combat the constant trash dumping and2 neglected vacant parcels of land in our3 community.4 The creation of a Neighborhood5 Improvement District will improve our6 quality of life and strengthen property7 values. By bringing neighborhoods and8 businesses together, I believe we can9 attract economic investment and10 development that will invite more retail11 and restaurants to further enhance our12 neighborhood. In addition, improving the13 quality of life for our community will14 act as a catalyst for urban renewal for15 our neighborhood communities and for the16 City as a whole. We have an opportunity.17 There have been concerns among18 some of the members of the community that19 the direct cost related to the NID to20 individual residents will be21 unaffordable. Here are some examples of22 costs for residents based on the OPA23 taxes paid. I'll use myself as the first24 example.25 32 9/20/11 - RULES - BILL 1103071 My estimated property tax for2 2011 is $1,845.46. My cost would be that3 number times 7 percent, which equals4 $129.18 per year, or 35 cents per day.5 Based on 2010 taxes in the Hing6 Wah Yuen housing development of 51 units7 on the 300 blocks of North 8th and 9th8 Streets, the average assessment per year9 would be $138, or 37 cents per day.10 And although our neighborhood11 doesn't have many row homes, if we use12 the example of the 1200 block of13 Buttonwood Street, the average yearly14 estimate would be $68 per year, or just15 18 cents per day.16 I look forward to building on17 our community's successes as we continue18 our work together to create a safer,19 cleaner and greener environment for20 everyone to enjoy. I urge you, all of21 you, to support this exciting new22 initiative, and I thank you.23

Thank you24 for your testimony. Please wait at the25 33 9/20/11 - RULES - BILL 1103071 table in case there's any questions.2 Please identify yourself for3 the record and proceed.4

My name is Matt5 Pestronk. I'm the developer of the6 Goldtex building at 12th and Pearl.7 I'd like to speak to two points8 as to why I'm in support of the formation9 of the Neighborhood Improvement District.10 First of all, I've seen it firsthand in11 other parts of the City where we've been12 involved in multi-family rental real13 estate projects, specifically in Mount14 Airy and Northwest Philadelphia, where15 we've seen the impact of the NID be16 absolutely incredible and improve the17 quality of life for everyone. You know,18 you see derelict properties become reborn19 in the space of a year or two, and on20 Germantown Avenue in Mount Airy, it was21 incredibly compelling. In certain22 stretches what happened was incredibly23 compelling. In certain areas, it was24 significantly more derelict, for lack of25 34 9/20/11 - RULES - BILL 1103071 a better term, than the worst parts of2 the worst, most dumped on, most3 graffitied parts of Callowhill. And so4 I've seen it just have a tremendous5 impact firsthand and benefit the quality6 of life of every person living in those7 neighborhoods regardless of their8 socioeconomic status.9 As it relates to why I think it10 would be such a positive improvement in11 this neighborhood, we were attracted to12 the building we bought and which we're in13 the process of developing, which we hope14 to start heavy construction on soon, by15 the proximity of the neighborhood to16 Center City. And we didn't really know17 about all these passionate people that18 had lived here that had done so much to19 take the neighborhood sort of to the edge20 of greatness. That's what -- it was like21 sort of after we bought the building, we22 just liked the location, it was so close23 to Center City, I met Amy and everyone24 else, and we were like -- our impression25 35 9/20/11 - RULES - BILL 1103071 was, wow, this is sort of like you think2 you made a good economic real estate3 investment and then you have this added4 bonus of the area is about to really5 become significantly better. And what's6 important to us is that the area is7 appealing to a broad range of people and8 of all socioeconomic levels, and it was9 important to us in securing our zoning10 variance when we were meeting with the11 constituency groups in the neighborhood12 that we heard what they said and13 addressed their concerns in getting our14 zoning variance. And basically we feel15 like for the neighborhood to be16 successful, it's got to be a safe, clean17 place. For the neighborhood to be18 successful and achieve its potential,19 it's got to be a safe, clean place for20 everyone, and candidly, the biggest --21 the largest amount of daily traffic in22 the neighborhood is children, and I23 didn't really realize that until a few24 days ago because of the schools, churches25 36 9/20/11 - RULES - BILL 1103071 and day cares that are located within its2 boundaries.3 So to me, I think that the4 formation of the NID to have a really5 nice, clean, safe, physically stable6 place for people to raise their families7 would just be such a high return,8 low-cost investment.9 We've actually offered to pay10 our assessment on our full -- the11 assessment based on our full, unabated12 real estate taxes as a notion of we're13 really in support of this project. So I14 think that it's going to be an15 outstanding thing for the neighborhood.16

Thank you17 for your testimony.18 Please identify yourself for19 the record.20

My name is21 Robert Cheetham. I have a business at22 340 North 12th Street.23 Good morning, and thank you for24 offering this opportunity to provide25 37 9/20/11 - RULES - BILL 1103071 feedback regarding the proposed2 Neighborhood Improvement District.3 My name is Robert Cheetham.4 I'm originally from the Midwest. I5 didn't grow up here in Philadelphia.6 After living overseas for several years,7 I came to Philadelphia in 1994 as a8 graduate student in the School of Design9 at the University of Pennsylvania.10 Following graduation, I worked for the11 Philadelphia Police Department and then12 for what is now known as the Office of13 Innovation and Technology. After working14 there for several years, I started my own15 business, a software business called16 Azavea, in 2000. I started the business17 working out of my own apartment in the18 Spring Garden neighborhood, and as we19 grew and hired our first person, we20 opened an office in the Callowhill21 neighborhood in 2002. Over the past nine22 years, Azavea has grown from one person23 to 32 people, most of whom work in this24 original office in Callowhill.25 38 9/20/11 - RULES - BILL 1103071 Despite the high taxes,2 Philadelphia has been good to my company.3 Many of our products began with ideas4 generated in this office and5 organizations here in Philadelphia and6 later sold to people all around the7 United States. During this time, we have8 watched this neighborhood change and grow9 in some positive ways, but while it is a10 relatively safe neighborhood with an11 outstanding location adjacent to Center12 City, the neighborhood continues to13 struggle with trash, graffiti and other14 quality-of-life concerns.15 We want to continue to keep and16 grow our business in Philadelphia and the17 Callowhill neighborhood, but these are18 real and significant issues. But I19 believe they are solvable. As a business20 located in this area, I welcome the idea21 of creating a safer, cleaner and greener22 environment for everyone to enjoy. I23 feel that while it will raise property24 taxes, the proposed NID will enable us to25 39 9/20/11 - RULES - BILL 1103071 improve our quality of life, strengthen2 property values and make the neighborhood3 more attractive to residents and4 businesses, and it will do so in a manner5 that will give those residents and6 businesses control over that money and7 how it's spent.8 Additionally, by bringing9 neighbors together in common cause, I10 believe we can create economic11 investments and the development that will12 invite retail and restaurants to further13 enhance our neighborhood as well as grow14 the City.15 From a business perspective,16 while Azavea always recruits locally17 first, we frequently cannot find18 qualified technical staff we need in the19 region and we're forced to recruit20 software engineering talent from all over21 the United States. For example, tomorrow22 we will be interviewing a prospective23 software engineer who currently lives in24 New Mexico. If he is the right person, I25 40 9/20/11 - RULES - BILL 1103071 will need to convince him to come live in2 Philadelphia. When you look around this3 neighborhood, that can be a tough sell.4 So my desire is to see our neighborhood5 improve not just so that I can work and6 live in a nicer place, I want a vital and7 dynamic neighborhood that will make it8 easy to convince someone from anywhere in9 the world to relocate their family here,10 thereby contributing not just their wage11 taxes, but their energy and commitment to12 making this city a great place to live.13 I see the proposed NID as an important14 step in making that possible, and I urge15 you to support it.16 Thank you.17

Thank you18 for your testimony. Thanks for choosing19 Philadelphia. We appreciate it.20 Any questions for these21 witnesses?22 COUNCILMAN DiCICCO: Thank you,23 Mr. Chairman. I just have a statement I24 should have made at the onset.25 41 9/20/11 - RULES - BILL 1103071 Ms. Hooper, you and I met2 approximately 16 years ago when I was3 first sworn in as Councilman for the4 district, and I appreciate your comments5 earlier. I too had questioned your6 reasoning or rationale for wanting to7 live in that neighborhood, if you8 remember that conversation some 16 years9 ago, and I think it's important for this10 panel, this committee, to understand11 that.12 This is one of those unique13 neighborhoods where the folks who live14 there, many of them there 15, 20 years,15 some have been more recent, have really16 taken a leap of faith, in my opinion, in17 moving into this neighborhood. If you've18 ever had the opportunity to walk or drive19 through it, you will get a better20 understanding of why I believe that this21 NID is crucial to the continual22 development of this community. And the23 best part about the folks who live there,24 they have really asked very little of me25 42 9/20/11 - RULES - BILL 1103071 in the last 16 years. We've done some2 walk-throughs over the years. We've done3 some tree plantings. We've done some4 minimal, at best, graffiti removal, and5 we tried to add some of the street6 lighting that you desperately needed, but7 we never were able to get there, because8 the cost is just too great. We just9 don't have that kind of money.10 This is the future of11 Philadelphia. We're looking at the12 future of Philadelphia, and that13 neighborhood is poised, as I think Paul14 said in his testimony, to become one of15 the great neighborhoods of the City of16 Philadelphia. With the NID and the17 Viaduct coming together, it will not only18 enhance the Callowhill District, but it19 will be that missing link, if you will,20 from Callowhill up to Center City on the21 east side and now on the west side in22 Councilman Clarke's district where we're23 seeing a lot of that development that was24 up in Fairmount moving and pushing east.25 43 9/20/11 - RULES - BILL 1103071 This is that hole in the doughnut, if you2 will, that I think will really make not3 only that community but really set4 Philadelphia many years ahead in5 developing its core Center City6 neighborhood.7 So I want to thank all of you8 folks who are here, even those who are9 opposed who may be living in that10 neighborhood, for all the things that you11 have done to make my job and City12 Council's job a lot easier by13 volunteering and doing the things that14 you did without any assistance from the15 City of Philadelphia.16 Thank you.17

Thank you18 very much for your comments and your19 testimony. Thank you.20 John Chin, Phil Browndeis,21 Maria Yuen, John Yuen.22 (Witnesses approached witness23 table.)24

Whoever is25 44 9/20/11 - RULES - BILL 1103071 ready to proceed, please identify2 yourself for the record.3

My name is4 Philip Browndeis. Council Chairman and5 members of the Rules Committee, thank you6 for the opportunity to speak before City7 Council. My name is Philip Browndeis and8 I am a resident of the proposed NID.9 On August 19th, I was notified10 by the Clerk of City Council that the11 City of Philadelphia would compel my12 membership in a private corporation, the13 Callowhill Reading Viaduct NID, and grant14 it the power to collect a compulsory15 assessment on my property, and should I16 refuse to pay this assessment, the NID17 would instruct the City of Philadelphia18 to place a lien on my property.19 It seems to me that it is not20 right for City Council to sanction a tiny21 group of people with the private power to22 tax their neighbors. This is taxation23 without representation. It is wrong for24 City Council to delegate its power to25 45 9/20/11 - RULES - BILL 1103071 these people who claim to represent the2 neighborhood when in fact they represent3 no one but their own narrow interest.4 The Callowhill Reading Viaduct5 NID is not a democratic institution. In6 a democracy, decision-making power is7 granted to the representatives elected by8 its citizens, regardless of whether they9 own property or not. The small group of10 people who convinced Councilman DiCicco11 that they represent us operated in12 secrecy, without transparency and without13 informing the neighborhood that their14 intention was to tax us to reclaim the15 Reading Viaduct and redevelop the16 structure into a park.17 Maybe I'm still just a simple18 guy from Northeast Philly, but it seems19 to me that the purpose of the NID is to20 fulfill the dream of a select group of21 people who seek to emulate life in New22 York City and want their very own High23 Line Park. Paul Levy, CEO of the Center24 City District, said to New York Times,25 46 9/20/11 - RULES - BILL 1103071 quote, "What we want to do is build the2 first phase, like New York, and have3 people say they love it and want to do4 the rest," end quote.5 Mr. Levy is quoted in the same6 article stating that the Viaduct Park7 would only cost $36 million, but no one8 has seen Mr. Levy's study. According to9 a September 14th email from John Struble10 of the NID Steering Committee to me,11 Mr. Levy has not even provided his study12 of the Viaduct Park to the NID Steering13 Committee.14 According to an article in the15 September 15th City Paper, Mr. Levy16 observed the difficulty of funding the17 annual maintenance costs of the New York18 High Line Park and said to the supporters19 of the Viaduct Park, quote, "We recommend20 that they consider creating an21 improvement district both for short-term22 reasons but also to have in place a23 mechanism so they wouldn't face this24 after it's all happened," end quote.25 47 9/20/11 - RULES - BILL 1103071 Maybe Mr. Levy can find the2 money to transform the Viaduct into a3 park. He knows people. And maybe the4 park will be more than just a $36 million5 dog park. John Struble says that taxing6 us for the Viaduct is taxation at its7 best. He is wrong. The Callowhill8 Reading Viaduct NID empowers the wrong9 people to tax us for all the wrong10 reasons.11 If this proposed public park is12 so important to development of the City,13 then let City Council allocate its14 revenues for that purpose and let the15 entire City pay for it.16 It is hard to imagine that in17 Philadelphia where the Declaration of18 Independence and the Constitution were19 written that we, the people of the20 Callowhill and Chinatown North21 neighborhoods, would be deprived of our22 liberty and the right to free association23 by the City Council of Philadelphia.24 Please do not vote for this25 48 9/20/11 - RULES - BILL 1103071 bill. Thank you for your time.2

Thank you3 for your testimony.4 Please identify yourself for5 the record. Please pull the6 microphone -- thank you.7

Hi. Excuse my8 voice. My name is Maria Yuen. I work9 for the City of Philadelphia, since10 somebody asked me yesterday what I do for11 a living. I've been a police officer for12 almost 18 years. I live within the13 boundaries of this proposed bill.14 COUNCILMAN DiCICCO:15 Mr. Chairman.16 Where do you live?17

920 Ridge Avenue.18 COUNCILMAN DiCICCO: 920?19

Ridge Avenue.20 COUNCILMAN DiCICCO: Thank you.21

So I first heard22 about this bill when I received a packet23 end of August. We, just a small group of24 us, Mr. Phil, Lee, James Morton, just a25 49 9/20/11 - RULES - BILL 1103071 few of us got together outside of2 Callowhill Association, all of different3 race, and we said we would not stand for4 this bill.5 Since then, I started hitting6 the pavement. This is where I lost my7 voice. I hit the pavement door to door8 starting September 1st within two weeks.9 And I'm also trying to find out the10 sentiment of the people in my11 neighborhood.12 Now, remember, the bill was13 introduced in April and none of us knew14 about this, nor the people that I spoke15 with. My neighbors did not know about16 this.17 And a lot of people also told18 me they were grateful, because they did19 not even know about the bill until I20 approached them about the bill and21 explained to them what we're doing.22 There are very few23 manufacturing left within this boundary.24 I don't know if you're aware of that.25 50 9/20/11 - RULES - BILL 1103071 Very few. And a lot of warehouses. We2 have very few retail in this area. So3 who is going to benefit this?4 Warehouses, manufacturing can move right5 outside the City. I think you know that.6 Raising taxes? How is that going to7 benefit anybody?8 And to say that this small9 group of people are representing all of10 us -- once again, I repeat, I went door11 to door. Only place I could not get into12 was high-rise condos that I didn't have13 access to. Those people I could not14 speak to.15 And my husband will take over16 from here to talk about the results of17 the petition.18 COUNCILMAN DiCICCO:19 Mr. Chairman, before they proceed, could20 I just show her the map. I think she is21 in the area that we're going to be22 amending out.23

But not -- excuse24 me, sir. With all respect, my petition25 51 9/20/11 - RULES - BILL 1103071 was not collected just within my -- I2 went from 8th to Broad Street, not the3 front facing, but also from Vine Street4 to Spring Garden. So people I spoke with5 are not just in my immediate6 neighborhood.7 COUNCILMAN DiCICCO: I8 understand, but I want to make sure I9 have it right. You're the 900 block of10 Ridge?11

That's correct.12 COUNCILMAN DiCICCO: So you'll13 be in here somewhere?14

That's correct.15 COUNCILMAN DiCICCO: Thank you.16

So what you're17 cutting out is a little tiny corner, but18 I went -- once again, I walked from19 Spring Garden to Vine Street, from 8th20 Street to almost Broad Street to collect21 my petition, sir.22

Okay.23 Thank you.24 Please identify yourself for25 52 9/20/11 - RULES - BILL 1103071 the record.2

Yes. This is my3 wife, by the way, Maria. I'm very proud4 of her. Because of her voice, she did go5 knock door to door, and I do want to6 share the result with you later on.7 My name is John Yuen. I live8 in 920 Ridge Avenue, same address as my9 wife.10

That's11 good.12

I'm just going to13 continue on. I'm an engineer by14 training, so a lot of things I'm15 extremely proud of which I have16 accomplished in a very short amount of17 time. As you know, campaigning is not18 easy. And this is an election year, as19 everyone knows.20 I'm going to go very quickly21 with basically what I have to say, and22 you have it also, but basically all stats23 everyone knows.24 Out of the 751 properties in25 53 9/20/11 - RULES - BILL 1103071 the bill currently as it stands, roughly2 about 66, I believe, should be out.3 Number one, 22 of those property belong4 to the Reading Railroad Company, 125 belong to the City of Philadelphia, two6 belong to the Commonwealth of PA, five7 PennDOT, one SEPTA. There's five8 churches in the area, and basically9 those -- and there are 16 condo parking10 spaces, by the way.11 Now, the remaining 650 property12 are made up of -- consisting of 261 condo13 units, 86 townhouses and the remaining14 268 are row houses and businesses.15 Now, the average tax I16 calculated from the paying, I guess, a17 portion out of the 730 paying units, the18 average tax, property tax, currently as19 of 2011 is 4,000 per household. Now, the20 average condo is about 1,100.21 COUNCILMAN DiCICCO: Excuse me.22

I really23 would need to see that document.24

Yes, and we have it25 54 9/20/11 - RULES - BILL 1103071 all here. Everyone knows --2

Look, I3 recognize in certain parts of the City4 that property taxes are extremely high5 and other parts of the City they are6 extremely low, but 4,000 on average is7 difficult. I've been here 20 years. On8 average is --9

Well, out of the10 751, there are two that pays quarter of a11 million dollars a year, and that's 900 --12

If you take13 those two out, what's the average of the14 rest?15

I can calculate, but16 I can provide that information to you.17 If you provide me email, I'd be happy to18 actually email it to you.19

I think20 that would be more illustrative.21

Okay.22 Now, for example, most of the23 townhouses and the new condos, they24 actually pay substantially less, and the25 55 9/20/11 - RULES - BILL 1103071 reason why is obvious, because of the2 ten-year abatement. And if you look, for3 example, in 2010, there were 25 units in4 429 13th Street. Their tax abatement5 expired. Their average was 200 and6 skyrocketed to $2,600. This is an 8307 percent increase in that once you lose8 your abatement.9 In 2011, there were 12 units in10 428 13th Street, and their taxes went on11 average from 673 to $2,800. This is a12 322 percent. This is what happens when13 you lose -- your abatement expires.14

Can I just15 ask a question? Do you also have the16 numbers on the value of the property17 that's increased in the last ten years or18 just the amount of taxes?19

Just the amount of20 taxes.21

I'd be22 interested in knowing if you can also --23

This is all24 information provided by the BRT.25 56 9/20/11 - RULES - BILL 1103071

Let me2 finish. If you could also I think,3 again, it would be fairly illustrative --4 if you could tell us for the record what5 the value of the property was when it was6 first abated and what the value of the7 property is after ten years, because then8 that would give us --9

That's fluctuation10 of the market as far as housing is11 concerned.12

It's called13 the improvement of the housing value.14

Now, if everybody15 think that the value of their house is16 going to increase, well, you have to go17 over and above 7 percent of the tax you18 pay. So in basically five years or 3519 percent, you'd better have your20 appreciation more than 35 percent to even21 break even on your appreciation. That is22 the fact.23

I don't24 know what the fact is.25 57 9/20/11 - RULES - BILL 1103071

Let's actually jump2 right into the results. As I've said, in3 two weeks, in less than two weeks, my4 wife actually spearheaded the petition5 alongside with PCDC, alongside with6 people, concerned citizen, like Lee7 Quillen, Phil Browndeis, Maria Bekas,8 James Morton, myself and the community.9 We have collected roughly 11 pages, and10 they are made up of people from, as I11 said -- I totally agree with Paul Levy.12 This is a diverse community, and if13 that's the case, how can you carve out14 something that is Chinese or otherwise?15 You cannot guarantee by splitting up16 these neighborhoods. This is diverse.17 Chinese Americans and everyone live all18 over. You cannot put a boundary between19 Chinese on one side and the other side20 rest of the people. No, we cannot amend21 this bill.22 As far as the --23 COUNCILMAN DiCICCO: You want24 in?25 58 9/20/11 - RULES - BILL 1103071

As far as the number2 of people, we have collected people from3 8th Street, 9th Street, 11, 12, a couple4 of condos, the Lucky Garden, Callowhill,5 Hamilton, Spring Garden. And to date, to6 date, we have collected over, over 53.97 of the assessed value, and we are ready8 to submit.9 (Applause.)10

The people have11 spoke.12

One second.13

We respectfully --14

One second.15 One second. Let's all come back to16 earth. We're having a hearing. We'll be17 giving testimony, taking testimony. The18 dramatics and the slamming and stuff is19 really not necessary. Whatever facts you20 happen to have, we're happy to review,21 but let's keep it real.22

To date, we have23 53.9 of the assessed value. We have not24 started mailing out, notifying people.25 59 9/20/11 - RULES - BILL 1103071 This is just two weeks of foot campaign,2 foot campaign, hard concern, foot3 campaign. May I repeat that.4 And now I would respectfully5 ask you to withdraw this bill, Councilman6 DiCicco.7 COUNCILMAN DiCICCO: I have a8 question for you in relationship to your9 comment that you mention Paul Levy was10 accurate, that is a very diverse11 neighborhood and we should not draw12 boundaries that separate one community13 from the other. Are you suggesting then14 that I do not do the amendment and keep15 everything --16

Absolutely. I17 believe the people have spoken, 53.9 to18 date, to date.19

Two weeks.20 COUNCILMAN DiCICCO: We'll keep21 it all in. I won't amend it.22

Just one23 philosophical question. Do you think24 it's a bad thing in general for housing25 60 9/20/11 - RULES - BILL 1103071 value to improve over a ten-year period?2

We are paying3 currently taxes --4

No, no, no.5

No one vote --6

I ask you7 one question and you answer a different8 one. Do you think in general it is bad9 for the value of your home to improve10 over ten years?11

Who is going to12 guarantee that?13

No.14

The housing15 market --16

Your house17 in the last ten years has improved in18 value. Do you think that's a good19 thing --20

Yes. I totally21 agree with you, as long as I move out of22 the community.23

Can I just24 finish the question?25 61 9/20/11 - RULES - BILL 1103071

As long as I sell my2 house and move out of the community.3

Why won't4 you --5

It actually means6 nothing --7

Why won't8 you --9

-- if it appreciates10 if I want to stay in the community.11 I came -- I live basically in12 Chinatown.13

You're not14 going to have a dialogue because you're15 going to scream over me. So I appreciate16 your testimony.17 Councilman --18

Excuse me, sir.19 What we're saying is --20

Excuse me.21 Excuse me. Councilman Goode has a22 question. If you're going to have a23 discussion, he'll have a discussion. If24 you're going to scream and yell over25 62 9/20/11 - RULES - BILL 1103071 everybody, then we'll let you go and you2 can go on your way.3 Councilman Goode.4

Thank you,5 Mr. Chairman.6 Actually, my question is for7 Mr. Browndeis. Mr. Browndeis, are you8 opposed to this particular neighborhood9 improvement district or are you opposed10 to neighborhood improvement districts in11 concept?12

I'm opposed in13 concept. As I said, it's not a14 democratic institution. You, the City15 Council, are delegating your authority to16 private citizens and sanctioning them17 with the power to tax us.18

Before you19 were notified by the Chief Clerk's Office20 of this proposed NID, were you familiar21 with neighborhood improvement districts22 before that?23

I was aware of24 the Center City District, but I didn't25 63 9/20/11 - RULES - BILL 1103071 know the entire process until I read the2 bill and I read several articles about3 the process, and then as I became aware4 of it, I realized that it was5 fundamentally a delegation of authority6 to private citizens.7

Have you8 looked at neighborhood improvement9 districts that have been done elsewhere10 within the City or elsewhere within the11 state or around the country?12

Yes.13 Councilman, the Germantown Business14 District is an example of a business15 district that is not successful. There's16 very little revenue, and it has faltered,17 although it is recently extended for 2518 years on the backs of the residents and19 businesses there. So I don't think20 that's a successful one. In fact,21 there's been no --22

I was not23 asking you to evaluate neighborhood24 improvement districts. I was asking how25 64 9/20/11 - RULES - BILL 1103071 familiar you were with them.2

Until I moved3 into the area, no, I wasn't. I came back4 to Philadelphia after many years. I was5 not aware of this process where the City6 Council has empowered people to tax7 neighbors. I was not aware of that.8

And that9 power came from where?10

That was -- the11 City Council granted it by creating these12 private corporations.13

And that14 power, that authority --15

You have a16 municipal statute, I understand, that you17 can do that.18

No. That's19 actually authority given to us by the20 state.21

Yes. I22 understand that.23

So City24 Council did not create neighborhood25 65 9/20/11 - RULES - BILL 1103071 improvement districts.2

You are3 chartering the organization.4

I understand5 exactly what we have done in the past. I6 understand exactly the matters before us.7 I'm actually a former economic8 development practitioner. I've dealt9 with the whole issue of business10 improvement districts, business service11 districts, neighborhood improvement12 districts for decades. I'm very familiar13 with them. I'm familiar with those that14 work, those that haven't worked, and15 that's why I asked you the question are16 you opposed to them in general.17

In general,18 yes.19

That I20 cannot agree with. I mean, if you're21 opposed to this particular one for22 particular reasons, I can understand23 that. As a matter of development, I took24 particular opposition to your statement25 66 9/20/11 - RULES - BILL 1103071 that said that in order to improve a2 particular area, we should charge the3 entire City.4

If it is about5 the Reading Viaduct and if it is to6 benefit the whole City -- and, again,7 this is before you read this language8 that we found out today was going to be9 removed. But, yes, if this is a public10 park to benefit the entire City, then let11 City Council allocate its revenue.12

So you're13 suggesting that we should have taxed the14 entire City to improve Center City?15

It benefits all16 the residents; does it not?17

And so you18 think the way we went about it in terms19 of creating the Center City District was20 wrong?21

Again, it's22 allocated private power to a small group23 of individuals.24

I understand25 67 9/20/11 - RULES - BILL 1103071 exactly what it does.2

Yes.3

And I also4 understand how effective it's been.5

Listen, with6 all due respect, the death penalty is7 legal, but I don't know if it's8 effective. Many people oppose it, but9 it's the law.10

I don't11 think it is. I don't think the death12 penalty is effective, but that's not --13

It's the same14 principle.15

No, it's not16 the same principle. That's not what17 we're discussing.18

It's a law, but19 I don't believe it's right.20

So what21 would be more effective?22

I believe that23 the City should allocate its resources,24 accept its responsibility to provide25 68 9/20/11 - RULES - BILL 1103071 clean streets and lighting that benefits2 the whole City.3

That's not4 the question I asked. What would be more5 effective at developing that particular6 area?7

Not on the8 backs of the neighbors.9

I asked you10 what would be more effective.11

What would be12 more effective is the City provides13 services such as clean streets, proper14 lighting and do all the things to make15 this a better city.16

To add17 particular services to that particular18 area, what would be a more effective19 tool?20

I suggest that21 we use the general revenue funds for22 everybody. We all are residents of the23 City.24

In order to25 69 9/20/11 - RULES - BILL 1103071 add additional services -- I'll ask it2 one more time to see if you can actually3 follow the logic of this.4

Okay.5

In order to6 provide additional services to that7 particular area, what would be a more8 effective means of doing that? That's9 the only question I'm asking.10

Okay. I will11 again proceed with my answer. I believe12 that in my neighborhood and any other,13 when there is a need for street cleaning14 and lighting, whether it's more lighting15 or more street cleaning, it is the16 responsibility of City Council to17 allocate that and provide the funds. It18 is not up to each neighborhood to do19 that. Because if you wish to dissolve20 the responsibility, then what is next?21 Police power? Do we provide our own22 security? No.23 I believe that is up to the24 City to provide that and not do it on the25 70 9/20/11 - RULES - BILL 1103071 backs of individual neighbors.2

And I think3 you're confusing the issue of basic4 services and additional services, but --5

I don't see6 why, sir, that you do not provide it.7

But I8 believe you've answered the question, and9 what you're saying is that you don't10 believe in tax assessment districts, that11 things will be provided through General12 Fund, and I can say that the response to13 that is, then there would be no14 additional money and there would be no15 additional services.16 Thank you.17

Councilman18 DiCicco.19 COUNCILMAN DiCICCO: Thank you,20 Mr. Chairman.21 I want to clear something up.22 You keep referencing that the City has23 the responsibility to do the improvements24 to the Viaduct. The City is taking that25 71 9/20/11 - RULES - BILL 1103071 initiative. There's two things going on2 in this community, the Viaduct and the3 NID issue. They are somewhat linked4 insofar as if the NID is established,5 that lighting, cleaning, other6 improvements to the Viaduct may be a part7 of their annual budget, but it is not a8 direct revenue stream to build out the9 Viaduct. It is a City, SEPTA and10 hopefully a Reading Railroad joint11 venture to make the Viaduct -- make the12 improvements to the Viaduct and create13 this environment that we're looking to14 create.15 This NID was not created to16 develop the Viaduct. The City is putting17 in somewhere around 5 million, if memory18 serves me right, to date. I'm using NTI19 funds, about a half a million dollars or20 maybe more. I'm thinking of shifting21 some money from other places so they22 actually -- I may be putting more NTI23 money in.24 So there may be some dollars as25 72 9/20/11 - RULES - BILL 1103071 it was laid out at what the NID intends2 to do - clean streets, graffiti removal,3 lighting - that will maintain or support4 some of the maintenance of the Viaduct,5 but it is not the revenue stream to6 develop the Viaduct.7

If I may add,8 the language appeared there in the9 ordinance, that the mission statement was10 to reclaim and redevelop the Reading11 Viaduct as a park.12 COUNCILMAN DiCICCO: In the13 context of developing that area, yes.14

Well, sir, our15 concern was that this is never ending16 and --17 COUNCILMAN DiCICCO: This is18 what? I'm sorry.19

This will never20 end. It is not a democratic institution.21 As I said, Mr. Levy is quoted as saying22 that this NID is necessary to provide23 maintenance for it.24 COUNCILMAN DiCICCO: We are a25 73 9/20/11 - RULES - BILL 1103071 governing body. You are a citizen of2 this city. You are here testifying3 today. Is that not a democracy? Are we4 not elected to make those decisions?5

The NID itself6 is not a democratic institution. City7 Council is --8 COUNCILMAN DiCICCO: It's part9 of legislation. It's part of the10 legislative process.11

Excuse me,12 Mr. DiCicco. Can I ask you a question?13 Do you represent all of us or just a14 special interest? Because what does this15 petition mean, 53.9?16 COUNCILMAN DiCICCO: I suggest17 that you look at my record.18

What does that mean,19 sir? If we go up to 65 percent, what20 does that mean? Are you here as a21 neutral listening to both sides? Because22 people have spoken from what I'm hearing.23 I did not only speak with Asian people.24 I did not only speak with Chinese people.25 74 9/20/11 - RULES - BILL 1103071 I spoke with all races, all different2 background, also businesspeople, some of3 them manufacturers, and they objected to4 this bill.5 COUNCILMAN DiCICCO: When you6 say do I represent "us," who is "us"?7

All of us who live8 in Philadelphia, who live in this area.9 What I'm hearing from you, sir, from the10 beginning of the hearing is that you are11 pushing this, and I find that -- you are12 not guaranteeing anything. You're13 leaving this office, first of all, and14 then you're pushing for this bill, which15 is 53.9 has said no, in two weeks,16 without mailing, without contacting, some17 of the condo --18

Listen to19 me, you don't understand --20

I'm trying to21 understand.22

You don't23 understand the process. This is not the24 end --25 75 9/20/11 - RULES - BILL 1103071

Sir.2

Let me3 finish.4 This is not the end of the5 process. There's a two-hearing6 requirement, and after the second hearing7 is when the alleged 53 percent of the8 people will have a chance to express9 their view against the bill. That's when10 it happens. So if it's 53 or 43 or 33 or11 20, we will find out --12

So, sir.13

Let me14 finish -- 45 days after the second15 hearing. This is the first hearing.16 Forty-five days after the second hearing,17 people will have an opportunity to either18 mail in or bring into the Chief Clerk's19 Office their opposition, and if your20 numbers are right, this won't happen and21 the Viaduct won't get developed and the22 neighborhood won't get cleaned up and the23 graffiti will stay and we'll move on.24

Sir, I understand25 76 9/20/11 - RULES - BILL 1103071 the procedural ruling. I understand2 about that. Are you saying that even3 though -- and you can verify each4 address, each signature, each owner who5 signed for the property, but what I'm6 saying to you, that's fine. If that's7 what you want, we will show you. It will8 go beyond this. This is in two weeks.9 I'm just letting you know.10

Let me say11 it again, because maybe you're just not12 hearing me.13

No. I hear it loud14 and clear.15

This is the16 first --17

But you also have18 the power to withdraw the bill.19

We're not20 withdrawing the bill until we go through21 the process. So what do you want me to22 tell you?23

You have the power.24

I have the25 77 9/20/11 - RULES - BILL 1103071 power --2

You're going to3 waste more time and taxpayers' money.4

You know5 what, we're done. Thank you for your6 testimony. We'll see you at the second7 hearing, I'm sure.8 Mr. Chin, are you testifying?9 Because I called you and you didn't come10 up.11

Yes.12

Mr. Reuben,13 Tamara Sepe.14 (Witnesses approached witness15 table.)16

Please17 identify yourself for the record.18

24 PCDC was founded 45 years ago25 78 9/20/11 - RULES - BILL 1103071 to save a church and school, and all the2 work that we've done in this community is3 about improving it for all people living4 in the neighborhood. 9 We continue to promote,10 preserve and protect Chinatown. We11 provide financial counseling services and12 social services to several hundred13 clients annually. We are invested in14 this community, and, in fact, PCDC worked15 with the Callowhill Neighbors Association16 years ago and their members to help17 establish their organization, because we18 thought that and we believe that working19 together, that we can improve this20 neighborhood. 22 What we do not agree with is23 this legislation and parts of this24 legislation as written. Here are some of25 79 9/20/11 - RULES - BILL 1103071 the programs that we have implemented in2 the community. We have a Dollar Day3 Cleaning Campaign where we raise money4 from within the Chinatown community,5 donations, and we've hired three6 part-time personnel to sweep and clean7 the streets of Chinatown. 16 PCDC opposes Bill 11030717 because as it's written and as reference18 to the Reading Viaduct, it provides19 benefits to special interests. It is20 asking people as far as three blocks away21 from the Reading Viaduct to pay a 722 percent tax increase. 3 This bill is about steering4 money toward the maintenance of a park5 called the Reading Viaduct Project more6 than it is about cleaning and safety. 10 What I will tell you is that11 this bill places an undue financial12 burden on many working families. It's13 not a modest tax assessment, as this bill14 states. The 7 percent tax increase is15 the third real estate tax increase16 proposed in 13 months. 75 percent in20 new taxes. 75 percent, 723 percent more than any other neighborhood24 during the same period of time. What25 81 9/20/11 - RULES - BILL 1103071 will happen when the Office of Property2 Assessment begins reassessing real estate3 values in our neighborhood? 5 For many people in this6 community, asking them to pay higher7 taxes is asking them to make difficult8 choices. Maybe they forego the purchase9 of new clothes for their children. Maybe10 a senior citizen chooses to turn off her11 heat several hours a day. 4 percent of households have income13 less than $10,000. 20 Unemployment is also very high21 in Chinatown sitting at 23 percent. The22 City of Philadelphia currently has an23 estimated unemployment level of 1624 percent. This year, for the first time25 82 9/20/11 - RULES - BILL 1103071 in 14 years, my organization was involved2 in helping two families dealing with3 mortgage difficulties. We are living in4 the greatest recession since 1929. 6 Finally, PCDC laid the7 groundwork for redevelopment, greening8 and housing in the Chinatown North9 District. 1997 marked the completion of10 our first planned urban development of 5111 units of mixed-income housing. This12 project received the Fannie Mae Maxwell13 Award for Excellence. This was the first14 new housing in Chinatown in 15 years. We15 successfully moved many families out of16 substandard housing into a place they17 call home today. The bill would sanction18 a second entity to plan and implement19 projects, setting up this neighborhood20 for future conflicts. The residents call21 Chinatown North home and want to continue22 living in Chinatown North. 2 I think for all the reasons3 stated above, this bill will negatively4 impact Chinatown and the surrounding5 neighborhood. 14

Thank you15 for your testimony.16 Please identify yourself for17 the record.18

My name is Gary19 Reuben and, Mr. Chairman and members of20 the Council, I thank you for the21 opportunity to present my testimony in22 favor of the NID.23 My business partner and I24 purchased the Wolf Building in May of25 84 9/20/11 - RULES - BILL 1103071 1997. Located at the corner of 12th and2 Callowhill, this seven-story, 170,0003 square foot building had been vacant for4 some number of years when we took5 ownership. We have continually improved6 the building in the intervening years,7 plowing millions of dollars into8 upgrades, which have included all new9 electrical, mechanical and plumbing10 systems, modernized elevators,11 life-safety systems and more. Today,12 even in a difficult economy, the Wolf13 Building is thriving with some 5014 apartments, 50,000 square feet of15 non-profits and social services16 providers, and 30 or 40 businesses, which17 include architects, production companies18 and even an internationally renowned art19 school.20 Fifteen years ago, when I made21 a commitment to this neighborhood, I was22 considered a pioneer. Now our23 neighborhood is maturing and new,24 substantial developments are underway and25 85 9/20/11 - RULES - BILL 1103071 continue to be undertaken. The2 character, diversity and vibrancy of our3 neighborhood are emerging and becoming4 quite an attraction. Nonetheless, we5 struggle against the tide of trash and6 graffiti and the many problems associated7 with these, which give an impression of8 our neighborhood as suffering from9 continuing decay, neglect and, of course,10 crime. While there are significant11 numbers of us who are fully invested in12 making the commitment to maintain and13 improve our properties and who know these14 words don't properly characterize our15 neighborhood, all too often we find16 ourselves having to overcome the deficit17 of this first impression just to get to18 the starting line as we struggle to19 entice new business associates and20 residents to join us.21 And so the creation of an NID22 is a logical step for us to take at this23 point. As a businessowner, I consider24 the additional levy to be an investment25 86 9/20/11 - RULES - BILL 1103071 that undoubtedly will pay handsome2 returns. Significantly, we will be3 making this investment in our own4 community, according to our own knowledge5 and assessment of very particular,6 localized priorities and needs. And7 while none of us is anxious to pay8 additional taxes, the NID provides a9 mechanism for us to leverage our10 individual contributions for the purpose11 of making a major impact. As one of the12 larger property owners who will be making13 one of the larger contributions, I can14 tell you authoritatively that the amount15 of the payment will not impact my bottom16 line in any significant way, and I have17 absolutely no intention of passing along18 the cost directly to my tenants. To put19 it in perspective, I spend an amount20 equal to the additional NID charge just21 stocking the bathrooms in my building22 with soap and paper products.23 Our neighborhood stands ready24 to step up and establish itself as a25 87 9/20/11 - RULES - BILL 1103071 great place to live and work, and is a2 great asset to the City of Philadelphia.3 We have big plans for our future. We4 have the energy and the resources to make5 big things happen. Please support us by6 supporting the creation of the CRVNID.7 Thank you.8

Thank you9 for your testimony.10 Please identify yourself for11 the record and proceed.12

My name is Tamara13 Sepe. 17 I have been an early childhood18 educator for 13 years, providing services19 to children with special needs. 3 A lot of people don't think of4 children when they think of this5 neighborhood, but they should. There are6 at least four schools included in the NID7 boundaries, serving at least 1,8008 children. 14 We have at least one day care15 and at least two churches that I believe16 Mr. Yuen's testimony, he mentioned more17 than two, and those churches have youth18 programs. 2 As a new mother of a3 ten-month-old, I see the potential for my4 son to live in a vibrant community where5 he has many friends right in his own6 neighborhood. I envision him running7 into other children with whom he plays8 and chats on 11th Street while their9 parents and I exchange pleasantries or10 discuss neighborhood issues. 16 Allowing the current issues of17 litter, short dumping and poor security18 to continue unchecked prevents this19 vision and sends a message to our20 children: It doesn't matter, filth is21 acceptable, we simply don't care. We are22 telling them their health, both physical23 and spiritual, is unimportant. 5 Some people will say if I don't6 like it, I should move. But I love my7 home, which was abandoned when I moved in8 and which I fixed with my husband. And I9 love my neighbors. My husband, a metal10 worker, works just two blocks away, so11 the baby and I can easily visit during12 the day. I like the architecture and I13 like the history of this neighborhood,14 both as an icon of our industrial past15 and as a hub for new immigrants. I don't16 want to move, but if really, really17 pressed, I could. The children who live18 here, go to school, church and day care19 or come for social services, however,20 don't have that choice. The adults in21 their lives have made it for them. And22 that is why it is our responsibility to23 provide them with a safe and healthy24 environment by passing this NID. 5 I became an NID supporter6 because I saw it as an opportunity for7 our community to work together to8 transform itself. 16 This was certainly never our intent. 3

Thank you4 very much for your testimony. Thank you.5 Sorry. Hold on one second,6 please.7 Councilman Clarke.8

Thank you,9 Mr. Chair. Mr. Chairman, I'm not sure I10 necessarily have questions for these11 individuals, maybe Mr. Chin, but I12 actually had some kind of broader13 questions as it relates to the process --14 not process, but the ultimate outcome.15 One, Mr. Chin, this is a16 question for you. When you said there17 were a number of residential property18 owners in the targeted area and whose19 income was $10,000 or less, did I hear20 you say that?21

Yes.22

What was23 that percentage?24

Forty point four25 93 9/20/11 - RULES - BILL 1103071 percent of the population in Chinatown's2 income is at $10,000 or less.3

Just4 generally?5

Yes.6

The reason7 I ask that question --8 COUNCILMAN DiCICCO: Point of9 order, if I may, Councilman. I don't10 want to interrupt you, but when you say,11 Mr. Chin, Chinatown, what boundaries are12 you referring to that reflect that13 40-something percent?14

Filbert Street going15 up to Spring Garden --16 COUNCILMAN DiCICCO: I'm sorry?17

Filbert to Spring18 Garden, 8th to 13th.19 COUNCILMAN DiCICCO: And part20 of that is north of where this NID would21 take place. Filbert Street --22

You mean south.23 COUNCILMAN DiCICCO: South.24 I'm sorry. Filbert Street north to Vine25 94 9/20/11 - RULES - BILL 1103071 would be -- they're part of that 442 percent. So if you extract those3 residents, that number 44 would go down4 considerably, wouldn't it?5

Twenty percent.6 COUNCILMAN DiCICCO: Thank you.7 I just wanted to clear that up. Thank8 you.9

Councilman.10

Thank you.11 Thank you, Councilman.12 Okay. So 20 percent of the13 targeted area are under the 10,000. I14 understand if you don't have this15 information. Of that 20 percent, could16 you calculate how many are probably17 senior citizens?18

That I couldn't give19 you today.20

I21 understand that. The reason I ask that,22 because based on that number, it's clear23 that if the individuals were seniors,24 they would fall under the City's Senior25 95 9/20/11 - RULES - BILL 1103071 Citizens Tax Relief Program, so they2 would not incur an additional assessment,3 increase in their taxes. And I also ask,4 as a result of that in the calculation of5 the $250,000, was that taken into account6 that if assuming -- and I imagine if7 somehow this happened, people would8 aggressively ensure that people who9 qualify under that tax relief program10 would be involved.11 Is that $250,000 -- and I guess12 I'm more asking this question of13 Councilman DiCicco -- that 250,000 is14 based on every property owner paying an15 additional increase?16 COUNCILMAN DiCICCO: Correct.17

Regardless18 of income?19 COUNCILMAN DiCICCO: Correct.20 Based on the real estate.21

Based on22 real estate. So it could possibly be23 lower.24 The other question I have in25 96 9/20/11 - RULES - BILL 1103071 terms of the mix, the split between2 businesses and residents, residential3 properties, is there information on that,4 how much revenue the business properties,5 businesses, would raise in terms of6 increased assessment; i.e., dollars to7 the NID versus the residential? And the8 reason I ask that question, because we're9 actually in the process of doing I guess10 it's a BID up in the Temple University11 area, because there is an issue about12 being able to provide additional clean-up13 and security protection for the residents14 in the Temple area, and we opted to go15 the BID, because residents did not want16 to have the additional tax imposed,17 because they say that the problem that18 was being created was as a result of the19 businesses.20 So I'm wondering if there's a21 split between -- if we had that22 information, what would the businesses23 raise if the BID were incorporated as24 opposed to the NID.25 97 9/20/11 - RULES - BILL 1103071

We have2 time between this hearing and the next3 hearing to come up with that number.4 Additionally, Mr. Chin, are the5 folks you're talking about generally at6 that $10,000 income level and senior7 citizens eligible for the state real8 estate rebate if they own their property?9

I don't know which10 ones would apply. I know we've helped --11

Well,12 certainly 10,000 or under they certainly13 meet the income threshold.14

We've helped some15 families in the community apply for --16

But they17 certainly meet the income threshold at18 $10,000, and if they're seniors, whatever19 real estate taxes they pay get rebated by20 the state, correct, through lottery21 funds?22

Yes.23

So they24 aren't paying anything, correct?25 98 9/20/11 - RULES - BILL 1103071

I don't know how2 much --3

It's a rent4 rebate.5

It's a real6 estate tax rebate. So if you're a7 senior, you own your property, you pay8 real estate taxes, you make under a9 certain -- I don't know what the income10 level is.11 COUNCILMAN DiCICCO: I think12 it's 15 or 16.13

Fifteen or14 $16,000, you get your real estate taxes15 rebated by the state through lottery16 money. So you're not paying any real17 estate taxes if you're in that category.18

If you're in that19 category and you get 100 percent rebate,20 yeah, then that's true, yes.21

All right.22 Just so the record is clear.23 Councilman Clarke.24

This is for25 99 9/20/11 - RULES - BILL 1103071 informational purposes, because if this2 passes -- and I'm not sure. I'm not even3 sure how I'll vote ultimately on it, but4 I wanted to make sure that we're dealing5 with accurate information and make sure6 on both sides of the issue, either7 support or non-support, if it does and if8 it doesn't happen, we want to make sure9 that the information is accurate.10 Councilman, I heard several11 questions relating to this concern about12 the Viaduct, and there appears to be13 language in there that is somewhat14 ambiguous in terms of what this money15 will ultimately be spent for, and I see16 that that seems to be a significant issue17 among a lot of residents, particularly18 ones that don't live directly adjacent to19 the Viaduct.20 Is there a way that that21 language could be clear in terms of what22 that money would be used for?23 COUNCILMAN DiCICCO: Yeah. I24 think that could be arranged, but I don't25 100 9/20/11 - RULES - BILL 1103071 want to mislead people into suggesting2 that the monies that would be collected3 in the NID, that it would never, any of4 that money, would ever be used for5 maintenance or cleaning or lighting. I6 mean, that Viaduct is part of the7 geography of the community where the NID8 is going to be established. So what are9 we saying, anything above street level we10 won't take care of?11

I don't --12 COUNCILMAN DiCICCO: I13 understand your question. I think we can14 get close to that, but in all honesty, I15 can never suggest that, when the NID16 Board meets and decides on programs that17 they want the money to be spent on that18 someone would say, Oh, we can't spend any19 money to do some maintenance on the20 Viaduct. I mean, they could make that21 decision.22

The Board23 itself?24 COUNCILMAN DiCICCO: Yeah.25 101 9/20/11 - RULES - BILL 1103071 They determine how the money gets spent.2 Whether it's lighting, whether it's3 graffiti removal, whether it's clean-up4 or all of those, that's the decisions5 that the Board makes.6

So do we7 have to have that in the ordinance?8 Since the Board would ultimately make the9 determination as to how that money would10 be spent, should it be referenced in the11 ordinance in any level of specificity12 that it would go towards -- that seems to13 be a big issue.14 COUNCILMAN DiCICCO: I can see15 Mr. Levy trying to -- do you want to come16 up?17

While he's18 on his way up, can we just get19 Councilwoman Brown to ask her question20 and Mr. Levy can --21 COUNCILMAN DiCICCO: I have22 another question for Mr. Chin afterwards.23

Good24 morning.25 102 9/20/11 - RULES - BILL 1103071

Does anyone2 have any questions for the other two3 witnesses?4

I do.5

Oh, you do?6 Okay. Thank you.7

Good8 morning. Mr. Chin, I want to start with9 a question raised by my colleague,10 Councilman Goode, of another witness.11 What is your position12 philosophically on the concept of13 neighborhood improvement districts?14

I think15 philosophically, I think if operated well16 and assessed properly, they do bring17 benefits, and we've seen that. But it's18 a matter of fairness and evenhandedness19 with legislation. The biggest issue20 right now with this legislation is the21 fact that there is direct reference to22 the Reading Viaduct Project and there are23 no restrictions at all that none of these24 monies would not be used for that25 103 9/20/11 - RULES - BILL 1103071 project.2 This is a very expensive3 project. This legislation is4 single-focused on the Reading Viaduct,5 outside of the cleaning services, and we6 as a non-profit in Chinatown have worked7 many, many years on many needs and issues8 of the community, yet none of those needs9 and priorities are addressed anywhere10 with this neighborhood improvement11 district.12

When you13 say "we" support it when it is fair,14 define "we." Who is "we," so that we're15 all on the same page here? Who is "we"?16 Is "we" the Philadelphia Chinatown17 Development Corporation?18

I am, yes,19 Philadelphia Chinatown Development20 Corporation.21 COUNCILWOMAN BROWN:22 Procedurally, inside the organization was23 there Board action that authorized you to24 move to render the position you've taken25 104 9/20/11 - RULES - BILL 1103071 today? Share with us what process the2 organization went through to get to the3 position you've shared with us today.4

This matter was5 discussed at at least two separate Board6 meetings. At those two meetings, the7 Board voted on this particular Bill8 110307 and voted to oppose this bill as9 written.10

Was that11 vote unanimous?12

Yes.13

Thank you.14 Ms. Tamara, correct my thinking15 if I misheard you. Did I hear you say16 that you own a child care center in this17 area?18

No. I am a speech19 therapist and I have a small private20 practice within this area that contracts21 with the City of Philadelphia.22

Did I hear23 you say that your little people attend a24 child care center in this area?25 105 9/20/11 - RULES - BILL 1103071

There are children2 who come to me, to my office, for speech3 therapy, yes, and some families have been4 uncomfortable with the neighborhood, and5 in fact, once while I was treating a6 session, my home was vandalized by7 somebody throwing a rock through a8 window.9

Okay.10 Based on your observation of the child11 care centers in the area, are they12 culturally rich?13

Yes.14

And so to15 anyone at the table, have there been16 opportunities where all worlds that sit17 in the boundaries of this district have18 had an opportunity to interface in a way19 that's positive and favorable on an20 issue?21

Yes.22

Yes.23

Cite24 examples or testimony.25 106 9/20/11 - RULES - BILL 1103071

I'm sorry. You said2 favorable on this issue?3

On an4 issue. Separate from this, have there5 been other opportunities where residents6 of the boundaries that we're talking7 about have had a chance to interface in a8 favorable way?9

I would reference10 the neighborhood clean-ups where we've11 had residents from many different12 organizations, backgrounds work together13 to clean the neighborhood. Does that14 answer?15

In some16 way.17 Please, sir.18

Because my19 building is zoned G-2 Industrial, for20 just about anything I want to do in the21 building, I have to go before the Zoning22 Board of Adjustment for a variance, and23 the place I start is with the24 neighborhood association. So I've had at25 107 9/20/11 - RULES - BILL 1103071 least in the past 14 years probably 302 different encounters with the3 neighborhood association, including PCDC,4 at which people from all walks of life5 within the neighborhood have had an6 opportunity to weigh in with their7 opinion. And since in those 30-some8 variance requests I've been successful9 100 percent of the time, I would say that10 it's been a positive outcome.11

What12 neighborhood association is that?13

Well, my building14 is located at 12th and Callowhill and we15 certainly think of ourselves as part of16 the Callowhill Neighbors Association, but17 we have brought various requests for18 zoning variances to PCDC, including the19 most recent one, which was to create a --20 I think the most recent one was to create21 a performing arts venue in the basement22 level of our building.23

My last24 question is, is the financial aspect of25 108 9/20/11 - RULES - BILL 1103071 this bill or the financial obligation of2 this bill the wedge, one of the wedges,3 or what?4

For me it's almost5 a non-factor. We have invested so much6 in the real estate that this -- I feel7 that this small additional charge, when8 gathered together with all of the other9 businesses and residents in the10 neighborhood, would give us a chance to11 have a major, major impact. We have lots12 of vacant property with absentee13 landlords, and unfortunately, in all too14 many cases, those people don't make the15 commitment that I make with my property.16 And so that if there were a mechanism17 that, to my way of thinking, is fairly18 painless to make those people step up to19 the plate, that will leverage the money20 that I willingly put out for this and21 allow us to make a major, major impact in22 the community.23

Mr. Chin,24 finally, did you tell the story of the25 109 9/20/11 - RULES - BILL 1103071 specifics of this bill or did a2 representative from the Councilman's3 staff come in to speak to the specifics4 of the bill?5

The specifics of the6 bill, we read the bill and obtained the7 specifics of the bill. We were8 approached with the general concept of9 this legislation, but we had to read the10 legislation for the very specific items11 in there.12

Thank you13 all for your testimony.14

I would just like to15 make one point of16 distinction/clarification for the record17 in answering your question about our18 general philosophy about BIDs and NIDs.19 I want to make a clarification that20 business improvement districts, our21 philosophy is, they do bring about some22 good to communities. There is a23 distinction between a business district24 versus a neighborhood improvement25 110 9/20/11 - RULES - BILL 1103071 district and how property owners -- which2 property owners are taxed. So the BID is3 the one that's --4

I'm sorry.5 Just on a broader note, there seems to be6 a lot of fixation and discussion about7 this Viaduct, and Councilman DiCicco has8 endeavored to clear the fact that9 although the money that's going to be10 raised specifically is not for the11 development of the Viaduct in the future,12 perhaps the Board would make a decision13 to light or clean whatever comes out as a14 result of the Viaduct project. And15 there's been -- I don't know if it was16 your testimony or someone else's in17 opposition of the bill that said how does18 the Viaduct project like that impact or19 help anyone who lives three or four20 blocks away. Is that your position?21

Yes.22

And I look23 at the other example of what probably is24 one of the most beautiful and vibrant25 111 9/20/11 - RULES - BILL 1103071 children's parks in the world or in the2 country right at Franklin Square, and I3 recognize that it's also adjacent to4 Chinatown, what we know as Chinatown.5 And not that Chinese Americans can't live6 everywhere, but we recognize Chinatown as7 one of those places.8 Public money, private money,9 state money were all put into the10 development and improvement of that,11 which was basically a hotel for men who12 drink, and now it's something different.13 The people who live in Chinatown and who14 have children, I assume, will walk three15 or four, five blocks to utilize that16 carrousel and playground area and Square17 Burger and whatever else that's going on18 in there and the beautiful fountain19 that's there.20 What's the difference between21 the Viaduct, when Councilman Greenlee has22 said he's been to the one in New York,23 that it's unbelievable, and the one at24 Penn that just opened again is25 112 9/20/11 - RULES - BILL 1103071 unbelievable? And it doesn't just affect2 the people who live in the block next to3 the Viaduct. Why is the Viaduct's4 development, ultimate development, some5 kind of negative? I don't understand6 with, again -- and with Franklin Square7 as an example, that the people who live8 in Old City walk three or four blocks9 with their kids, the people who live in10 Chinatown or in Center City walk five or11 six blocks with their kids and they enjoy12 the park.13 What's the difference between14 that and the Viaduct development?15

The Reading Viaduct16 project is a project that is going to17 require millions and tens of millions of18 dollars.19

Which in20 New York it was done privately, by the21 way, just for the record.22

What I would say to23 you is that during the years that this24 project continues to move forward to try25 113 9/20/11 - RULES - BILL 1103071 to get some traction with funding, this2 legislation, this asking people --3 requiring people to pay taxes toward the4 Neighborhood Improvement District in5 hopes of creating this park above ground,6 PCDC has so many priorities and focuses7 at the street level, and our first8 priority and focus is making sure that9 the families that live in the10 neighborhood get the basic necessities,11 like a roof over their homes. Our12 biggest priority is affordable housing13 for the many low-income families living14 in the community.15

So your16 suggestion is the development of the17 Viaduct is going to supplant any18 resources going to affordable housing or19 to -- I don't understand the nexus20 really. I mean, I understand in the21 middle of this vibrant or trying to be22 vibrant neighborhood is this hulking23 rusted metal mess that can be converted24 into something that's beautiful and25 114 9/20/11 - RULES - BILL 1103071 attractive and even a place where people2 want to come and see it from other3 neighborhoods. I don't understand what4 the nexus is between these folks' desire5 to tax themselves, taking out some of the6 people that you're talking about out of7 the bill, and why is that ultimate8 development of that Viaduct such a9 negative thing for the City? If they10 thought that way in New York, New York11 would be -- wouldn't be a very desirous12 place to be.13

I'll take it one14 step further and I'll tell you that the15 Viaduct, if you look on the map,16 transverses the community and it sits on17 properties that could be developed.18 There's still structures that could be19 taken down, and if they're taken down,20 you open up huge lots available for21 development, especially for affordable22 housing. And that's our tie-in with the23 Reading Viaduct.24

I hear you.25 115 9/20/11 - RULES - BILL 1103071 I don't understand it, and I respectfully2 don't understand the nexus between the3 two. And the excitement that's being4 generated in New York and in West5 Philadelphia over these types of6 projects, to me it would seem something7 that would raise property values, raise8 real estate taxes, bring people to the9 community, people would come and eat in10 the restaurants. I don't understand the11 focus on the Viaduct, but that's -- we'll12 move forward.13 COUNCILMAN DiCICCO: Thank you,14 Mr. Chairman.15 Just picking up on Councilman16 Kenney's comments, if a portion of the17 monies that the NID will generate is used18 for lighting and maintenance, cleaning of19 the areas below the Viaduct in the20 neighborhood that you said the Viaduct is21 traversing through part of the Chinatown22 community, wouldn't that be a benefit to23 the people who live in that community, to24 have a much safer environment than exists25 116 9/20/11 - RULES - BILL 1103071 today?2

Yeah. I mean, I've3 testified that we support cleaning and4 greening. We don't oppose that. But you5 have all these people sitting behind me6 that are very concerned about the tax7 increase and implications.8 COUNCILMAN DiCICCO: I9 understand that. If this was done10 without any tax increase, probably11 everybody would be singing Kumbaya out12 there and everybody would be happy.13 I want to go back to earlier14 when we established that of the 4415 percent, there are 20 percent of the16 folks that would be left within this17 boundary that would be part of the18 Chinatown community. If you extract that19 portion on the map that I show Hing Wah20 Yuen and surrounding block or two from21 that 20 percent, how many people are left22 in the Chinatown community?23

I mean, most of24 these people here sitting behind me,25 117 9/20/11 - RULES - BILL 1103071 these residents from Chinatown, do not2 live in that green square block.3 COUNCILMAN DiCICCO: I'm asking4 percentages. You came in with a 445 percent. We got it down to 20 everything6 south of Vine. North of Vine to7 Callowhill, 10th Street east to 8th8 Street, what percentage make up that 209 percent?10

I can't tell you11 where they all live.12 COUNCILMAN DiCICCO: It's got13 to be less than 20 percent.14 (Audience yelling "more.")15

We'll have16 an opportunity -- let's go forward this17 way. If the bill is amended today,18 again, we have another required hearing.19 People can figure out after looking at20 the map whether they live in there or21 they don't, and we'll know.22 COUNCILMAN DiCICCO: Before you23 go on, one other question.24 John, you mentioned in your25 118 9/20/11 - RULES - BILL 1103071 testimony -- I think it was a question to2 Councilwoman Reynolds Brown -- about you3 view this -- and I'm paraphrasing -- you4 view this development, this NID, for a5 specific purpose, to develop the NID -- I6 mean the Viaduct. I'm sorry; the7 Viaduct. You and I and Cecilia and8 others have been dealing with an issue to9 build a community center in Chinatown.10 There's state, possibly federal money,11 NTI dollars are going in. Isn't that a12 specific project?13

That is a14 specific --15 COUNCILMAN DiCICCO: So should16 the folks who live at 13th and Callowhill17 object to that project because it doesn't18 directly benefit them?19

This is an20 additional 7 percent real estate tax,21 mandatory tax increase, that you're22 asking the people to pay for a specific23 project.24 COUNCILMAN DiCICCO: All right.25 119 9/20/11 - RULES - BILL 1103071

Could I add one2 thing?3 COUNCILMAN DiCICCO: But the4 community center is a specific5 development?6

Yes, it is.7 COUNCILMAN DiCICCO: Thank you.8

Yes, sir.9 Please identify yourself again.10

Yes. Again, my11 name is Gary Reuben, and I didn't mention12 that I happen to be an architect. I've13 been a registered architect for over 3014 years and I spent a substantial portion15 of my professional career as a real16 estate developer and an architect working17 in affordable housing. In fact, one of18 my projects involved rehabilitating, I19 think it was, 10 or 12 houses in the 150020 block of Christian Street for affordable21 homeownership, and I've done projects all22 over the state. And I will say that I23 think it's the wrong way to look at24 affordable housing to say that affordable25 120 9/20/11 - RULES - BILL 1103071 housing needs to be placed in blighted2 areas. The best affordable housing I've3 ever worked on are home projects that are4 well integrated into the neighborhood and5 integrated among the best neighborhoods.6 In addition, while the cost --7 and I can speak of this as an architect8 and a developer. While the cost of9 converting the Viaduct into a park, while10 those costs are substantial, the costs of11 demolishing the Viaduct are not12 insubstantial in any way, and it strikes13 me that there are plenty of opportunities14 for affordable housing throughout the15 neighborhood, not the least of which16 remain within the right-of-way of the17 Viaduct, parts of that right-of-way,18 which wouldn't require the demolition of19 the Viaduct in order to be developed as20 affordable housing.21

Thank you.22 Any other questions for this23 panel?24 (No response.)25 121 9/20/11 - RULES - BILL 1103071

Seeing2 none, thank you very much.3 Paul, you want to come back?4 (Witness approached witness5 table.)6

Again, my name is7 Paul Levy, Center City District.8 I wanted to respond to the9 question that Councilman Clarke raised10 and Councilman DiCicco raised and just11 talk the legal process here. What you12 are doing, I believe, in this hearing is13 authorizing the creation of an14 organization, which is a Neighborhood15 Improvement District. That Neighborhood16 Improvement District has put together a17 proposed plan and operating budget for18 five years that specifically commits the19 funds to ground level, street-level20 maintenance and lighting, et cetera.21 There is now going to be a public process22 in which all the property owners get to23 vote on that. So we'll find out what24 people think on that.25 122 9/20/11 - RULES - BILL 1103071 It would take a new plan and2 budget of this organization to say, We3 don't want to spend 40 or 60 percent on4 clean and safe at street level, we want5 to also maintain the Viaduct. So that6 what is being asked to be approved by the7 property owners is a plan for8 ground-level maintenance, for lighting9 and for those improvements and10 potentially some looking at the future,11 but overwhelmingly street-level12 maintenance. The Board, in my13 understanding, doesn't have the14 unilateral authority to simply change how15 that money is spent. They would have to16 come back to the property owners in the17 future, propose a new plan and budget,18 and this Council would have to approve19 it.20 So what's being asked for here21 is a plan for ground-level maintenance22 and security. At such time, let's say,23 we all dramatically succeed in the future24 and raise the money to improve the25 123 9/20/11 - RULES - BILL 1103071 Viaduct, the property owners would get a2 second opportunity to vote, saying, We3 like that and we want to help maintain4 that. That is not what is in front of5 people today. I think Councilman DiCicco6 said this well. There are two things7 going on here, the effort to create a NID8 and a wish for the future that the9 Viaduct could be something better. But10 the operating money that's being proposed11 in this budget is for street level. It12 is not for capital improvements to the13 Viaduct.14 Thank you.15

Thank you.16 Thank you, Mr. Levy. Hold on, Mr. Levy.17 So the question is, during the18 course of the testimony, this whole issue19 about the Viaduct continues to come up,20 and I think it was indicated that it was21 actually referenced in the ordinance. I22 have not seen that particular reference23 in the ordinance because I didn't read it24 in its entirety. So based on what you're25 124 9/20/11 - RULES - BILL 1103071 saying, one, has that been communicated2 to all of the residents and will that be3 communicated in a subsequent community4 meeting hopefully in all parts of this5 targeted area so people are clear that6 based on the plan that's presented and7 that will be authorized by the8 authorization of the NID, it does not9 target any direct funding to the Viaduct?10 So if that's the case, then it seems like11 that particular issue is off the table.12

I believe the13 confusion was created because in the sort14 of aspiration statements in the15 paragraphs at the beginning, it talks16 about future improvements, but the budget17 section, which is the binding section, is18 very explicit that the money is being19 spent to street-level improvements. So,20 I mean, I'm not the proponent of it. The21 neighborhood is, if they wanted to22 redraft that or if Council wanted to23 clarify that. But clearly this24 neighborhood is looking to the future and25 125 9/20/11 - RULES - BILL 1103071 the City, and we and others are looking2 at how money could be raised. Obviously3 that Viaduct is largely owned by the4 Reading Company. They must be part of5 that conversation. We're planning6 someone else's property here. Let's be7 clear about that. So that obviously is a8 much longer process. I think it's just9 the confusion in drafting. The budget is10 very explicit as to what the money is to11 be spent on.12

My concern13 is sometimes when we deal with14 aspirational language in a legislation,15 it can sometimes impact legislation,16 negatively or positively. So what I'm17 saying is that if it's based on the18 aspirational language in the draft or19 whatever, it creates a negative spin on20 the opportunity to pass legislation, if21 the people choose so to be supportive of22 it -- because at the end of the day, they23 get to determine that -- then maybe it24 would be better if that were not in this25 126 9/20/11 - RULES - BILL 1103071 particular proposal. Ultimately, again,2 the community and the Councilman who3 represents the area will make that4 determination.5 You've answered my second6 question in terms of the Board opting to7 make some changes in terms of where those8 dollars will be targeted. You have to9 start an entirely new process --10

Yeah.11

-- on the12 Board level to authorize a change in the13 plan?14

Generally, yes. I15 mean, I think if there's an outlet, say,16 if they had 10 percent of their money for17 planning for the future, they might do a18 little bit of work on the Viaduct within19 that number. But you cannot as a Board20 under either the BID or the neighborhood21 legislation dramatically deviate from the22 budget that's been approved by the23 property owners and this Council. They24 have no unilateral authority to do that25 127 9/20/11 - RULES - BILL 1103071 apart from the mandated process. So I2 think that provides a protection that I3 think would address many of the concerns4 I heard expressed here.5

Okay.6 Thank you, Mr. Chair.7

Thank you.8

Thank you9 very much.10 Thank you, Mr. Levy.11 Cherry Wong, James Morton,12 Shirley Young and Yue Ling Le.13 (Witnesses approached witness14 table.)15

Whoever is16 prepared to begin, please identify17 yourself for the record and proceed with18 your testimony. Pull that microphone19 close to you. It's easier to hear.20

21 Hi. 22 I am a resident as part of the Hing Wah23 Yuen Homeowners' Association. I'm also24 the President of the Hing Wah Yuen25 128 9/20/11 - RULES - BILL 1103071 Homeowners' Association. 4 Now, there are some things that5 I really am really concerned about the6 bill being introduced. One of them was7 that I didn't receive any mailings from8 the official notice. I believe out of9 our 51 homeowners that make up the Hing10 Wah Yuen homeowners, only one person11 received the mailing. 12 With the Callowhill Reading13 Neighborhood Improvement District, they14 have said they talked and tried to15 communicate with us. I communicated with16 them starting in June. This ordinance17 was submitted back in April/May. I'm18 concerned about that. 20 If you're asking me to pay a21 tax, asking my neighbors, my homeowners22 as part of Hing Wah Yuen, to pay a tax23 and we don't find out until after all24 this is submitted, that makes me very25 129 9/20/11 - RULES - BILL 1103071 concerned. I've asked about why we2 didn't get any mailings of the official3 notices. I got no response back for that4 as to why. I get my tax bill. 6 The other thing is that as a7 homeowners' association, we pay fees to8 clean up our property, to clean up our9 area. We have landscape, the green10 space. It's great, you know. We've had11 problems with vandalism, graffiti, and we12 pay that, and we have trash issues that13 we address. So our homeowners'14 association are already paying into that15 already existing. So here you have this16 NID that's saying, Okay, you're going to17 have to pay more to do the same things18 pretty much. 3 We have nuisance bars, nuisance4 nightclubs. We've got other people in5 that neighborhood that are contributing6 to making our streets unclean and needs7 to be picked up. 13 We've had a security system in place at14 Hing Wah Yuen that's been broken more15 than three times. Right now we have to16 upgrade our system to try to fix it to17 get new stuff to get security. 20 I do have a concern about when21 I read this back, that I really think22 there's no definite to say what the23 Viaduct -- the funding of my money would24 go to the Viaduct or not. 2 There's a lot of things I want3 to say. I think average round-about we4 pay around 3,000 in taxes. So the first5 year would be 7 percent, but according to6 the ordinance written, it can increase7 every year 5 percent. So by the end of8 the five years or the third year, we go9 up to 17 percent. That basically can say10 for Hing Wah Yuen for the homeowners, for11 51 homeowners, we can go up to $26,000 as12 a group of homeowners. The tax per13 homeowner, if I'm saying around 3,000 for14 the taxes, $510 a year. 17 They're working harder, hard enough18 trying to even pay our fees, and we're19 really trying to, I guess, be effective20 in our spending, in our expenses. 23 I'm learning being part of Board of24 Directors from 1998. I've been part of25 132 9/20/11 - RULES - BILL 1103071 the Board of Directors or some sort of2 part of the Board of Directors since Hing3 Wah Yuen was settled. I like where I'm4 at. 17

Please18 identify yourself for the record.19

Good morning.20 My name is Cherry Wong, but I request21 Chinese interpreter, because my English22 is not that great.23

Do we have24 someone who is willing to interpret?25 133 9/20/11 - RULES - BILL 1103071 Anyone?2 Ma'am, could you do me a favor3 and take -- I'm sorry. The first4 witness, could you just take a seat right5 there, Ms. Young, so that the interpreter6 can use the microphone to interpret. And7 just do me a favor, just pull the8 microphone back and forth to each other.9 INTERPRETER: My name is Cherry10 Wong. I live at 903-A Wood Street.11 I oppose the City bill, City12 Council Bill No. 110307. I live out of13 very low income condition right now. I14 don't have an American degree. I don't15 speak good English. I'm living a very16 hard life and making very low income.17 Now everywhere is laying off workers and18 they're reducing working hours. I used19 to work five days a week. Now I'm20 working three or four days a week. But21 the price for the goods are rising22 significantly.23 The real estate tax, it's24 increasing 10 percent every year, and25 134 9/20/11 - RULES - BILL 1103071 this year we are starting to pay the2 additional 3.75 to School District.3 We will pay whatever we ought4 to pay, but it's cost pressure on us.5 But I cannot afford the actual 7 percent.6 And the government have starting cut all7 the welfares, especially the medical8 insurance. So we have to pay a lot9 actual on the medical expenses.10 It's not only me. There are a11 lot of people in my neighborhood living12 in this similar condition, and so the tax13 will make us -- make the condition worse.14 We would like to see a greener15 city and a safer environment, but this16 should be the responsibility of the17 government. Every one of us is paying18 for the tax every day. So our government19 should be responsible to give us a safe20 and clean living environment, but not to21 pass this duty to ourselves. We want22 more job opportunities and more benefits23 and to help us to live through the24 hardship.25 135 9/20/11 - RULES - BILL 1103071 That's it.2

Thank you.3

Thank you4 very much. Just let me say from the5 outset, thank you for your testimony, and6 the issue of language is not important7 here. It's not like ordering a cheese8 steak. We accept multiple languages here9 and we love our multi-cultural10 communities. So you can come in here11 with any language you like to speak and12 we'll interpret or figure it out some13 way. But thank you for your testimony.14 Can we get her exact address15 again, because we lost it when...16

903-A Wood17 Street.18

What19 street?20 INTERPRETER: Wood Street.21

Oh, Wood.22 Thank you very much. Thank you for your23 testimony.24 Sir, could you please identify25 136 9/20/11 - RULES - BILL 1103071 yourself for the record.2 Could you give him the3 microphone. Thank you.4

My name is James5 Morton and I live at 1238 Callowhill6 Street.7

Please8 proceed.9

I've been living10 there since 1997. I guess I consider11 myself a community member. I'm not an12 organizer. 14 I'm older. I'm retired. I'm15 living on a fixed income. That means16 that some months I don't have enough17 money to buy all of the medicines that I18 need. At my age I spend most of my19 disposable cash on doctor visits and20 medicines, and I'm at the point where21 some months I have to go without and then22 the next month I might get it, and23 sometimes I take a pill every other day24 instead of taking it every day. 3 Now, I've heard people say that4 the tax increase is trivial. Trivial to5 them. It's significant to me. I'd like6 to point out that what I've seen here7 today is all the proponents of the NID,8 save one, white, well-to-do, politically9 connected, developers, know the10 Councilman on a first-name basis. I'd11 like to point out that you have one12 clique that's pushing for this that has13 vested interest, that are going to make a14 lot of money. 17 I'd like to say that there's a18 whole bunch of people here sitting with19 me behind me who are not part of that20 clique. We were not included in this21 project. It was completely hidden from22 us. No transparency. I never found out23 about it until a couple weeks ago when it24 had already been submitted through the25 138 9/20/11 - RULES - BILL 1103071 Councilman's office. It's just2 undemocratic and unfair the way the3 proceeding has gone. They say that4 they've reached out. I would have to beg5 to differ, because I'm there every day6 and I never had any knowledge that this7 was going on. When there's a community8 meeting, I attend it. 10 I'd like to say further that11 the reason that's been given for this12 NID -- oh, I'd like to say that it's not13 really an NID. It is a Callowhill14 Reading Viaduct Neighborhood Improvement15 District. So right in the title it says16 viaduct. 19 So where was I? 4 I don't think it's fair or right or5 correct that myself and other poor folk6 should have a tax put on us by those who7 are well connected so that our money has8 to go into their vanity project. 10 Person after person has sat11 here and said that, Well, we have12 problems with graffiti, we have problems13 with trash, we have problems with poor14 lighting, et cetera. 15 I live at 13th and Callowhill. I walk16 everywhere I go. I don't have a problem17 with graffiti. There's little graffiti18 in the area. There's a minimum amount of19 trash dumping. I don't have a problem20 with trash, and I certainly don't have a21 problem with lighting, and I'm out on the22 streets, you know, all different hours23 and so forth. So I'm saying that that's24 being put forth as some kind of a straw25 140 9/20/11 - RULES - BILL 1103071 man, because who could be opposed to2 clean streets? Of course you want clean3 streets, but under the guise of clean4 streets, all this other stuff is being5 slid in. 6 Furthermore, I'd like to say7 that I've been there since '97. It's a8 very diverse neighborhood, black people,9 white people, Asian people, very wealthy10 people, very poor people, and we've all11 gotten along. As far as I can see,12 there's no strife. 14 I've never seen any strife, friction15 between any of the groups in the16 neighborhood until now. 19 They got thugs out on the street. If you20 try to put up a sign for a community21 meeting, they'll threaten you. They'll22 rip your sign down. It's turned into23 like a war zone. 4 I'm completely opposed to this,5 as I guess you can see. And furthermore,6 the general question that was asked, am I7 opposed to NID in general in concept,8 yes, I am. Now, I don't know much about9 it. I'm not a community developer. I10 don't have a lot of education. But as I11 see it, it balkanizes your city. Certain12 neighborhoods where the people have some13 money, they can get these services, but14 up in North Philly or ghetto areas where15 the people don't have money, well, they16 got to pick through the trash. 20

Thank you21 for your testimony.22 (Applause.)23

That's my family.24

Everyone25 142 9/20/11 - RULES - BILL 1103071 has had their opportunity to testify at2 length and I still have two more3 witnesses.4

I have one5 more question, only one question for6 Mr. DiCicco.7

Would you8 like the interpreter back again?9

I think it10 would be better.11 Mr. DiCicco -- I'm sorry. I12 need to speak Chinese.13 INTERPRETER: Mr. DiCicco --14

You have to15 speak closer to the microphone, please.16 INTERPRETER: Mr. DiCicco, her17 question is, do we really need the18 improvement of this -- to this19 neighborhood?20

Does this21 neighborhood really, really need22 improvement you're talking about?23 COUNCILMAN DiCICCO: In my24 opinion, yes.25 143 9/20/11 - RULES - BILL 1103071 But I think it's important that2 you point out to the young lady that the3 home that she lives in, the block in4 which her home is located will be removed5 from the legislation that's part of the6 amendment. Hing Wah Yuen, 903 Wood will7 not be in the NID.8

Thank you.9 But still the question is, if you think10 we really need to do this, why the11 government didn't do for us? Why we need12 to do it ourselves? It's not my job.13

He's not14 going to defend himself. That is not a15 fair statement, because I've been here16 with him for 16 years, almost -- well, 1717 years, and I know the work that he's done18 in the Chinatown community, and I suspect19 that those people sitting in the front20 row who he's worked with for all these21 years would agree that there's been22 resources brought to the Chinatown23 community directly through him, and I24 just really believe that that statement25 144 9/20/11 - RULES - BILL 1103071 is just totally unfair. It's just2 unfair. I've seen it happen. I voted on3 it. We fought the stadium in Chinatown.4 It's down in South Philly because we5 stood up for Chinatown at the time.6 And so to implicate or give the7 impression that somehow he has ignored8 this neighborhood is totally, totally9 unfair. It's just unfair. Because I sat10 over there when the Chinatown people11 expressed their opinions about the12 stadium. And the stadium is not in13 Chinatown; it's in South Philadelphia.14 I mean, I understand we15 disagree on this point, but you can't in16 any way talk about his work in that17 neighborhood in a disparaging way,18 because I'm not going to sit here as19 Chairman and let that happen.20

I do have a21 question. My name is Shirley Young.22 You talked -- you made a23 reference earlier to Franklin Square.24 Now, I grew up in Chinatown as a kid and25 145 9/20/11 - RULES - BILL 1103071 initially it went into bad shape, but I'm2 not being specifically taxed to have --3 when Franklin Square got renovated and4 now is a great viable park.5

Your tax6 dollars went into the project.7

And that's8 everybody, not --9

Now, after10 we read the amendments, you will not be11 specifically taxed for this project. So12 there's really no complaint left.13

Let me make my14 point. Okay? The Franklin Square was15 City tax dollars. The NID is specific to16 tax dollars. So basically, okay, in the17 zone, in this -- hold on. I'm not18 finished yet. They're going to give19 improvements to their streets and their20 cleaning, but then my side won't.21

That's an22 unfortunate position --23

But why can't the24 City pay to clean the streets? I mean,25 146 9/20/11 - RULES - BILL 1103071 I'm paying taxes. Why --2

They and3 their and them and them, it's just really4 degenerating into a really sad commentary5 on this discussion. Have you ever heard6 of the Old City Service District?7

Yes.8

Their9 people pay money, extra money over and10 above what they normally pay, to maintain11 that neighborhood where Franklin Square12 sits. So, I mean, we can go on splitting13 hairs all day long. If you're not happy14 with the bill, I understand, I hear you,15 but, I mean, you're not even going to be16 in the district, so what's the problem?17

I don't18 understand --19

You're not20 in it.21 COUNCILMAN DiCICCO: Can I ask22 a question, ma'am?23

But it's not that.24 You don't understand my question, though.25 147 9/20/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: Ms. Young,2 you mentioned earlier that the3 Homeowners' Association and Hing Wah Yuen4 pays an assessment for those services5 that would be duplicated under NID,6 although you're not going to be in the7 NID. What is the annual assessment on8 average for the average homeowner?9

On average or what10 we collect annually or monthly?11 COUNCILMAN DiCICCO: How many12 units, 51 units?13

Yes.14 COUNCILMAN DiCICCO: How much15 do you collect annually?16

Hold on. Let me17 get the number out for you.18 COUNCILMAN DiCICCO:19 Approximately.20

We're about like21 140 a month.22 COUNCILMAN DiCICCO: A hundred23 and forty dollars a month per house?24

Per household.25 148 9/20/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: So the2 same benefits that the NID would supply,3 you'd be entitled to if you were in the4 NID, on average, if the numbers I5 remember are somewhat correct, would be6 about $138 a year.7

But we're still8 having that right now. You're adding --9 COUNCILMAN DiCICCO: No, no.10 Wouldn't it make more financial sense for11 the people who are living in Hing Wah12 Yuen to opt into the NID and pay $140 a13 year as opposed to paying $140 a month14 for the same services?15

But that's going to16 increase 5 percent year after year.17 COUNCILMAN DiCICCO: It's for18 five years. It's for five years, it19 would be -- I'm rounding the number20 off -- I think it was 138 and some change21 for Hing Wah Yuen. Your residents would22 be saving $140 times 11.23

But that's24 because --25 149 9/20/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: Fifteen2 hundred dollars a year.3

But the4 decision-making is directly with the5 residents.6 COUNCILMAN DiCICCO: I7 understand, but you said in your8 testimony you don't see why the9 homeowners and Hing Wah Yuen should have10 to pay for services such as cleaning of11 streets and lighting and all those things12 that your association pays for that would13 be part of the NID assessment. They're14 already paying for it, you said. Why15 should we pay twice.16 If you were to go with the NID,17 the homeowners would be saving18 approximately $1,500 a year for the same19 services.20 I'm not asking you to get into21 the NID. I just don't understand the22 logic.23

I guess I'm getting24 a little bit confused now.25 150 9/20/11 - RULES - BILL 1103071

Well, if they're2 not in it, if they're excluded from it,3 then it's a moot point.4

Well, hold on. I5 mean --6

Taking this7 particular property out of the NID is not8 in your best financial interest, because9 you're going to be continuing to pay for10 services you pay for privately that the11 NID would pay for at a lower cost.12 That's what it comes down to.13

It's also not being14 able to be part of that decision-making.15 COUNCILMAN DiCICCO: You would16 be, but, again, he's right, it's a moot17 point. With all due respect, Hing Wah18 Yuen is out of the NID, so why are we19 talking about Hing Wah Yuen? It's not in20 the NID.21

Hold on. What Hing22 Wah Yuen would like to see is a more --23 we're always -- Hing Wah Yuen and the24 neighbors are very close knit. We always25 151 9/20/11 - RULES - BILL 1103071 try to improve it. We don't want the2 dirty streets and stuff like that. So,3 you know, you're saying, Well, if you're4 not going to be in the NID, well, you're5 going to just, you know, really -- you're6 going to lose out on it.7 COUNCILMAN DiCICCO: You're8 going to continue to do what you have9 been doing.10

But let me --11 COUNCILMAN DiCICCO: You're12 going to keep assessing your homeowners13 $140 a month.14

Now you're15 interrupting me.16 COUNCILMAN DiCICCO: And that's17 your choice.18

Councilman, now19 you're interrupting me.20

It's a moot point.21

Let me speak,22 please.23

It's a moot point.24

Ninth Street --25 152 9/20/11 - RULES - BILL 1103071 hold on.2

It's a moot point.3

We're getting a new4 city block laid out. It's being redone5 to make it more walkable. That's with6 City funds. This NID, when I read it, is7 saying I'm going to pay extra money to do8 that same thing.9 COUNCILMAN DiCICCO: It's10 project specific.11

No, you're12 not going to pay extra money because13 you're coming out.14

It's a moot point.15

Sir, I16 didn't agree with most of what you said,17 but I do agree with that statement, it is18 a moot point.19

That's what I'm20 trying to say.21

Thank you22 for your testimony.23 Helen Psirakis and Dimitry24 Bekas. Are they here?25 153 9/20/11 - RULES - BILL 1103071 (Witnesses approached witness2 table.)3

After these4 witnesses, is there anyone scheduled to5 testify? Can I see -- just one? How6 many more? Two, three. Anybody else?7 This is going to be the last call.8 (No response.)9

Okay. I10 have three more witnesses after this.11 Please pull the microphone12 close to you, identify yourself for the13 record and proceed.14

We completely15 silent with that. Good evening.16

I'm sorry.17 Excuse me.18

-- Italian19 American accent.20

Excuse me.21 I would ask that all conversation stop.22 Please be respectful to the witnesses.23 It's been a long day, I know, but we're24 getting through it. So please take your25 154 9/20/11 - RULES - BILL 1103071 conversations in the hallway.2 Please identify yourself for3 the record.4

My name is Helen5 Psirakis. I live 1301 Vine Street on the6 second floor.7 My question is, for long, long,8 long time ago, that area called, if I9 pronounce okay, Skid Row area. How they10 call? United States, of course,11 Philadelphia. How come one park -- the12 City build one park -- can clean the13 name? All be convention, we'll clean the14 name.15 The taxes when they raise can16 clean the name? How we can live over17 there? The area is very low with so many18 homeless. It's a homeless area. How can19 we afford to raise the taxes? We need to20 lower the taxes.21 One park no help us. Don't22 help me to open again my restaurant 4023 years close, because the area is mad.24 Can you do me favor to open my place25 155 9/20/11 - RULES - BILL 1103071 after one you build the park? The2 convention built so big convention and no3 clean the area. We need to clean the4 area first and raise the taxes and build5 the park.6 We don't need no park. We need7 to survive, to live in a place. I'm8 tired to sleep for 12 years weekends9 under the bed because the bullet, the10 drug dealers in front of my door. If you11 go right now 13 and my door, you see so12 dirty whom the people -- the homeless13 people.14 Can the City clean first the15 area and then raise the taxes and then16 you build big park? We don't need no17 park. We need something really to18 survive and live like human beings. We19 no living like human beings. No. No.20 If you doesn't understand me, come in,21 somebody, to live with me for two days.22 We don't need no park. We need23 to clean the place, to make it safe, the24 place. The area is bad.25 156 9/20/11 - RULES - BILL 1103071 No taxes. No. Lower the2 taxes. We no afford to raise the taxes.3 We don't need no park either.4

Thank you.5

Thank you.6

Thank you.7 Please identify yourself for8 the record.9

I'm Dimitry Bekas.10 I'm owner of the restaurant business.11 I'm 38 years in the area. I have three12 different location of restaurants.13 So these people, first of all,14 working behind us. They're not tell us15 we going to create this kind of problem,16 number one.17 Number two, these people that18 have ten years free taxes there and after19 ten years, they're going to leave the20 area. They're not going to give it21 nothing opportunity to us.22 I got grand-kids. I got sons23 who live in the area forever. No for24 Temple area for today, like these people25 157 9/20/11 - RULES - BILL 1103071 leave Temple area over there. And these2 people try to make it behind our back3 money. These people coming from another4 place to use us.5 Thank you very much. Not6 supposed to pass that bill.7

Thank you8 for your testimony.9 Who else was -- how many?10 Because I had --11

Three.12

The record13 is quite full, but -- I'm sorry. Yeah,14 everybody has got a right to do it, a15 chance to do it, but I just need to know16 who it's going to be -- three more from17 where?18 (Witnesses approached witness19 table.)20

Please21 identify yourself for the record.22

My name Julie23 Wong. And the idea is very good, but24 only one thing I think we cannot really25 158 9/20/11 - RULES - BILL 1103071 afford for another 7 percent for the real2 estate tax above what we are paying3 almost 80-some thousand already.4

I'm sorry.5 Please proceed. Do you have more? I'm6 sorry.7

No. That's8 all.9

Oh, okay.10 Thank you.11 Sir, I'm sorry. You've12 testified once already today.13

I'm interpreting.14

Oh, I'm15 sorry. Thank you.16 Is this the witness that needs17 interpretation? Well, then, Julie, could18 you please take one of the seats there19 and let the gentleman sit there to20 interpret.21 Excuse me. Who is going to22 interpret? Ms. Wong, are you going to23 interpret?24

Yes.25 159 9/20/11 - RULES - BILL 1103071

Please2 identify yourself for the record.3 INTERPRETER: She said that she4 living in the Hing Wah Yuen residence.5

No. I need6 the lady's name, please.7

My name So Kin Cong8 (ph).9

Thank you.10 INTERPRETER: She living in one11 of the residence at Hing Wah Yuen.12 She said that living over there13 mostly is lower and middle-income person.14 She said mostly are low income. She said15 really I don't have qualified to stay in16 the Hing Wah Yuen, living in the Hing Wah17 Yuen, resident in the Hing Wah Yuen.18 She stay very luckily under the19 government subsidize. So that's the20 reason I have in the resident in Hing Wah21 Yuen, because subsidize.22 She said I living in there23 almost more than ten years. She said24 everything is very quiet and peacefully.25 160 9/20/11 - RULES - BILL 1103071 She said living there very happy. She2 say why all the sudden going to increase3 the property tax?4 She say that I'm retired almost5 13 years. She say that my income is SSI6 and the income only. I'm 77 years old.7 I don't have -- she say she don't have8 income and she don't have working, she9 not working. She say that really don't10 have any ability to increase the tax.11 She say that I definitely and I can't12 stand the tax raise, raise the tax. She13 say that she don't have any money to pay14 that real estate tax, additional real15 estate tax. Everybody don't want to pay16 the additional tax.17 She say right now the income18 she have is very limited and she can't do19 nothing anymore. She say the most20 resident over there is low income and21 they don't have any additional income and22 they cannot afford additional tax.23 She say that she really don't24 understand why they need to pay25 161 9/20/11 - RULES - BILL 1103071 additional tax. She say that she want to2 know why we need to pay extra tax. She3 say everybody agrees and no tax. She say4 most in the back -- she say that5 everybody hope under no tax increase.6 (Audience members yelling.)7

Thank you.8 (Audience members yelling.)9

Thank you.10 Could we ask, just so we can see, the11 residents -- Julie, could you ask the12 residents of Hing Wah Yuen to stand up,13 please.14 (Ms. Julie Wong interpreting.)15 (Audience members standing.)16

Thank you.17 Thank you. Just for the record, all the18 people standing will not be in the NID19 and will not be paying extra taxes.20 You're getting out today. We're amending21 it out. We're amending your building out22 today. There will be no concern for23 increased taxes at the housing facility.24 Okay?25 162 9/20/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: Julie?2

Are you3 telling them they're coming out?4

Yes.5 Hello?6 (Ms. Julie Wong interpreting.)7

Okay? So8 no worries.9 (Audience members yelling.)10

Listen, I11 understand. We cannot -- we're not going12 to be able to complete this hearing13 unless people stop speaking out. We need14 to have quiet in order to proceed.15 Do you have anything further to16 add?17

Yeah. I say18 how about 1037 Vine Street? We're being19 taxed almost 80,000. Add about another20 6,000, we cannot afford it.21

At the end22 of this hearing, we will read the23 amendments, which will give you the new24 boundaries of the NID, and you can decide25 163 9/20/11 - RULES - BILL 1103071 for yourself whether -- you can know2 clearly whether you're in or out.3

Okay.4

Thank you.5 Thank you for your testimony.6 Yes, sir. Please identify7 yourself for the record.8

Good morning,9 Councilmembers. My name is Jeffrey10 Koopman. My wife and I, Suzanne, we're11 property owners at 429 North 13th Street.12 We moved to Philadelphia 11 years ago.13 We were drawn to that area initially14 because of its urban landscape, its15 industrial architecture and its16 convenient location. We're just a few17 blocks to the Reading Terminal Market,18 676, 76, I-95, the Broad Street Line,19 Chinatown with its dozens of great20 restaurants and fascinating markets and21 cultures and even City Hall where we22 stand today. We found out rather quickly23 that we didn't move into a neighborhood,24 we moved into an area. Not just any25 164 9/20/11 - RULES - BILL 1103071 area. Ours was dark from lack of2 lighting, it was strewn with garage and3 graffiti and all of the unfortunate perks4 that any area is rewarded with when it5 receives decades of neglect and a blind6 eye.7 These perfect conditions8 created an environment that encouraged9 crime. It came in the form of10 prostitution, open drug dealing and the11 usual entourage of associates. One such12 associate was so eager to welcome us to13 the neighborhood he forcibly robbed my14 wife.15 What we also found out is that16 there was hope, hope in the form of other17 concerned neighbors who wanted to take it18 upon themselves to create a real19 neighborhood. The Callowhill20 Neighborhood Association was soon formed.21 We started and trained the22 patrol for our very own community town23 watch. We even scheduled neighborhood24 clean-ups. Put simply, people who became25 165 9/20/11 - RULES - BILL 1103071 neighbors got engaged to have a positive2 impact on their own surroundings.3 It's all too easy to sit back4 and say it's the City's responsibility to5 add additional lighting, they need to6 help us work towards more green space,7 they need to help clean up graffiti, they8 need to keep the streets and sidewalks9 clean and safe. And in many instances,10 the City, particularly Councilman11 DiCicco, has assisted us. But we need12 more. The funds available to help us13 improve and plan for the future of this14 neighborhood are just not there right15 now, nor do they look like they will be16 there any time soon.17 The creation and formation of18 the Callowhill Reading Viaduct19 Neighborhood Improvement District will20 provide all of us who make this21 neighborhood home with the opportunity to22 stop saying the City needs to get this23 done and turn it into we will get this24 done.25 166 9/20/11 - RULES - BILL 1103071 Our nephews are and years2 old. They spend many weekends with us3 exploring the City. When they visit, we4 want to provide them with a sense of5 safety, a sense of security and a place6 to be young boys, and most of all, we7 want those very same qualities of life8 for our neighbors, in particular the9 thousands of school children who come in10 and out and reside in our neighborhood11 every day.12 As an individual, I respect13 that there are some of you in this room14 that may not want to get involved in the15 Neighborhood Improvement District.16 Volunteering your time for the betterment17 of others requires a commitment. It18 requires dedication, and it just isn't19 for everyone. But you cannot deny the20 mutual responsibility that we have to21 ourselves, our community, our children22 and our neighbors to do whatever it is23 that we possibly can to make our24 neighborhood a better place.25 167 9/20/11 - RULES - BILL 1103071 I want to thank you for your2 time. We strongly encourage you to pass3 this resolution so, along with my4 neighbors, we can get to work.5 Thank you.6

Thank you7 very much for your commitment to the City8 and for your testimony. And I guess9 you're considered a newcomer after 1310 years, right? Okay.11 Please come forward and12 identify yourself.13

My name is Bill14 Curran. I've had an architectural metal15 work, design and fabrication business in16 this neighborhood for 11 years. I employ17 two people. I also live here, I own18 property here and I have a family here.19

Excuse me.20 Please take extraneous21 conversation into the hallway so we can22 get through this hearing. Thank you.23 Please begin.24

With a background25 168 9/20/11 - RULES - BILL 1103071 in architecture and interest in history2 and a father who loved trains more than3 anyone could imagine, this area was a4 perfect fit for me. The architecture5 tells a fascinating story of our6 industrial past, and I'm not the only one7 who thinks so. In June of 2010, the8 National Park Service approved a section9 of the proposed NID to be on the National10 Register of Historic Places. This11 historic district and its surrounding12 traces the history of the industrial13 architecture as it evolved over 100-plus14 years from standard brick and wood beam15 construction to elaborate use of concrete16 and steel. It also contains examples of17 buildings designed by some of the leading18 American architects of the time, and the19 Reading Viaduct built in the last part of20 the 19th century referencing our nation's21 critical period of growth through22 railroads. My wife and I often enjoy23 trying to imagine what this neighborhood24 was like 75 or 100 years ago when the25 169 9/20/11 - RULES - BILL 1103071 railcars pulled right up to the buildings2 and trains were on multiple levels.3 Sadly, the presence of large4 amounts of trash and debris combined with5 a lack of security prevents people from6 fully appreciating the beauty of the7 neighborhood.8 I live two blocks away from9 where I work, and as I walk to work,10 there are these beautiful moments,11 cobblestone streets, pie-shaped12 brownstone buildings, barrel-vaulted13 arched tunnels. The corner of Wood and14 13th Street has the Packard Building, the15 City's own morgue and the high building16 where I can catch an almost pure glimpse17 of Philadelphia, old Philadelphia. Of18 course, I can only partially enjoy these19 moments because if I enjoy them for too20 long, I am bound to step into a ripped21 plastic bag containing something22 unspeakable, maybe trip over a23 five-gallon container of used cooking oil24 dumped from a neighboring restaurant or25 170 9/20/11 - RULES - BILL 1103071 step on glass from a broken 40-ounce malt2 liquor bottle.3 Our history is undeniably an4 important economic resource to the City.5 I want tourists and people from the6 surrounding neighborhoods to appreciate7 the history of these buildings the way I8 do, and I hope to see the next generation9 of Philadelphians grow into the10 neighborhood. I want to see these11 buildings reused and preserved for the12 quality of their architecture and the13 quality of their construction and for the14 piece of our history they describe.15 With the situation as it is,16 the chronic short dumping, severe litter17 problems and security issues, it will be18 very difficult for anyone but a few who19 live here right now to enjoy these20 features. And even this is quite limited21 by the litter and crime.22 Cleaning up the trash and23 making the neighborhood more secure would24 turn it from the iffy neighborhood with25 171 9/20/11 - RULES - BILL 1103071 parking close to Center City to a place2 people appreciate for its own sake, a3 slice of Philadelphia's past that it4 reveals.5 I support the NID as a vehicle6 for achieving that transformation. It's7 good for the people who live here and8 it's good for the City.9 And thanks for hearing my10 testimony.11

Thank you12 for your testimony.13 That will conclude our public14 hearing, and as I stated prior, there's a15 need for a second public hearing that16 will be -- notification will be sent out17 for a second hearing.18 We will now proceed to go into19 a public meeting for the purposes of20 amending this bill, which will be heard21 again at the subsequent hearing in the22 future. Forty-five days after the end of23 that hearing, all the folks involved in24 whatever this district is going to be,25 172 9/20/11 - RULES - BILL 1103071 with the exception of what's being2 amended out, will have a chance to vote3 up or down on the establishment of the4 NID. And that's that information.5 Now, this amendment that has6 been circulated to members of Council and7 will be available in the Chief Clerk's8 Office tomorrow does the following. It9 eliminates the following language from10 the mission statement. So please,11 everyone, pay attention. This language12 is coming out of the bill and will amend13 the mission statement accordingly. This14 is coming out: "In addition, we will15 seek to reclaim the Reading Viaduct and16 redevelop the structure into a park to be17 used by residents and visitors of the18 Greater Philadelphia area. As a19 reclaimed public space, the Reading20 Viaduct will successfully bring together21 economically and culturally diverse22 communities, generate economic23 development and provide a catalyst for24 the redevelopment of this section of25 173 9/20/11 - RULES - BILL 1103071 North Philadelphia."2 That language is being, once we3 vote on it, is being removed from the4 bill. It's out.5 The second amendment will be an6 amendment to the district itself, and the7 following what I read is what the8 district is proposed to be. So if9 anybody wants to jot down the boundaries10 so they can determine its impact on them,11 I will read slowly, and this will also be12 available in the Chief Clerk's Office by13 request, I believe, tomorrow.14 This is amending the mission15 statement, Section 2. The new language16 will read accordingly: "The service area17 for the District includes taxable18 properties listed in Exhibit A-2 and19 located within the area bounded by the20 northeast corner of Broad and Vine, the21 southeast corner of Broad and Spring22 Garden Streets, the southwest corner of23 8th and Spring Garden Streets, the24 southwest corner of 8th and Callowhill25 174 9/20/11 - RULES - BILL 1103071 Streets, the southwest corner of 10th and2 Callowhill Streets, the southwest corner3 of 10th and Vine Streets and the4 northeast corner of Broad and Vine and5 certain blocks of intersecting streets,6 except that those properties which have7 frontage on North Broad Street shall not8 be included in the District."9 Those are the two amendments10 that have been circulated to members of11 the Committee and I would request someone12 move their adoption.13 COUNCILMAN DiCICCO: I move for14 the adoption of the amendments.15 (Duly seconded.)16

It's been17 moved and seconded.18 All in favor?19 (Aye.)20

Are there21 any opposed?22 (No response.)23

The ayes24 have it. The bill will be amended25 175 9/20/11 - RULES - BILL 1103071 accordingly.2 There will be a notice sent out3 for the next hearing of this Committee to4 review this Bill 110307, and that will5 conclude the business of the hearing of6 the Rules Committee today.7 Thank you for your attendance.8 (Committee on Rules concluded9 at 12:50 p.m.)10 - - -11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 176 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on September 20, 2011, and7 that this is a true and correct transcript of8 same.9 10 11 12 13 --------------------14 MICHELE L. MURPHY15 RPR-Notary Public16 17 18 19 (The foregoing certification of this20 transcript does not apply to any reproduction21 of the same by any means, unless under the22 direct control and/or supervision of the23 certifying reporter.)24 25