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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
-- 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.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
That was -- the11 City Council granted it by creating these12 private corporations.13
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
So City24 Council did not create neighborhood25 65 9/20/11 - RULES - BILL 1103071 improvement districts.2
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
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
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
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
No, it's not16 the same principle. That's not what17 we're discussing.18
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
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
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
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
You don't23 understand the process. This is not the24 end --25 75 9/20/11 - RULES - BILL 1103071
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
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
We're not20 withdrawing the bill until we go through21 the process. So what do you want me to22 tell you?23
I have the25 77 9/20/11 - RULES - BILL 1103071 power --2
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
Mr. Reuben,13 Tamara Sepe.14 (Witnesses approached witness15 table.)16
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
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
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
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
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