COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY - - - Room 696, City Hall Philadelphia, Pennsylvania Tuesday, October 29, 2002 10:20 a.m. - - - BILL 020480 - An ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development (PAID), without consideration, a deed conveying fee simple title to a certain tract of City-owned land... BILL 020576 - an ordinance approving the sale of a certain lot or piece of City-owned ground... BILL 020603 - an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development (PAID), without consideration, a deed conveying fee simple title to a certain tract of City-owned land... BILL 020633 - an ordinance authorizing the Philadelphia Authority for Industrial Development (PAID) to purchase a certain tract of land situate at the southeast corner of 50th Street and Parkside Avenue... - - - PRESENT: COUNCILMAN JAMES KENNEY, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DICICCO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL NUTTER - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 020480 PAGE PAUL DEEGAN, PIDC ........................... ANDRES PEREZ, Public Property ............... JESSE BERMUDIS, AMLA ........................ BILL KRAMER, City Planning Commission ....... BILL 020576 ANDRES PEREZ, Public Property ............... BILL KRAMER, City Planning Commission ....... BRAD FELDMAN, Esquire ....................... BILL 020603 8 PAUL DEEGAN, PIDC and PAID ................. ANDRES PEREZ, Public Property .............. 9 BILL KRAMER, City Planning Commission ...... 15 BILL 020633 10 PAUL DEEGAN, PIDC and PAID ................. BILL KRAMER, City Planning Commission ...... 21 3 10/29/02 - PUBLIC PROPERTY - BILL 020480
Good morning, everyone. The Committee on Public Property and Public Works is now in session to conduct a hearing to listen to testimony on four bills. The first bill is Bill No. 020480, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon situated at the northwest corner of Fifth and Huntingdon Streets, subject generally to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement among the City, PAID, and the Philadelphia Industrial Development Corporation; and further authorizing PAID, notwithstanding any contrary requirements of the Philadelphia Industrial and Commercial Development Agreement, to convey such land and property to the Associacion de Musicos Latinos Americanos for a nominal consideration; all under certain terms and conditions. Please identify yourself for the record.
Good morning. My name is 4 10/29/02 - PUBLIC PROPERTY - BILL 020480 Paul Deegan. I represent PIDC. This bill 3 authorizes the City to convey this lot to PAID. After we acquire it, we're going to convey it to AMLA. AMLA intends to construct a 41,000 square foot state-of-art cultural center on the site. I'd like to amend my testimony. I think I put 35,000 square feet in there. The facility will include a performance and banquet, a recital hall, an audio and video recording studio, and office space. The total project cost will be approximately $8 million. This project has broad-based public and private support. The State of Pennsylvania, through the Redevelopment Capital Assistance Program, will fund $2 million of this project. The City is providing $1 million from the Economic Stimulus Program and also providing the land at the nominal consideration. Also, the American Street Empowerment Zone is contributing $1 million. The of the project cost is being raised privately by AMLA. Did I say, it is a 2.1 acre vacant parking lot. It used to be part of the St. Christopher's Hospital complex. It's in the Empowerment Zone and the City 5 10/29/02 - PUBLIC PROPERTY - BILL 020480 owns it at this point. Mr. Jesse Bermudis is here from AMLA to describe the project. And I would just like to ask that the Committee favorably and that the Rules of Council be suspended to permit first reading at the next regularly scheduled meeting of Council. I'd be happy to answer any questions you may have.
My name is Andres Perez, and I'm Commissioner of the Department of Public Property. I'm here today in support of the ordinance as described and the project as described by Mr. Deegan. We've attempted for many years to get something done with the site through a variety of 6 10/29/02 - PUBLIC PROPERTY - BILL 020480 initiatives, and this is the only initiative that has advanced to the stage where we're comfortable enough to support the transfer to PIDC and to the association. And also respectfully request suspension of the rules and favorable consideration.
Thank you very much. Any questions for the Commissioner? (No response.)
Seeing none, Mr. Bermudis, please identify yourself for the record.
Good morning, Mr. Chair and Members of City Council and Members of the Council of Committee on Public Property. My name Jesse Bermudis, and I am the Executive Director of the Associacion de Musicos Latinos Americanos, AMLA. Our mission is to promote the development, dissemination, and understanding of Latin music and culture with a strong emphasis on youth. As you know already, my purpose here this morning is to request an extension of the two years on the development rights for Fifth and Huntingdon Street where the association will build its new performance space. The plans for our 41,000 square foot 7 10/29/02 - PUBLIC PROPERTY - BILL 020480 facility are well under way. We have assembled a strong advisory group for the project chaired by Mr. Pedro Ramos, Vice Chair of the University of Penn. We have completed our construction documents and have engaged a major construction company, Turner and Terra to construct our facility. The Chairman of our Capital Campaign Committee is Ed Rendell who will surely have to be replaced as he assumes governorship shortly. But we also have many other prominent individuals on that team as well. Our plans are certainly moving forward, and we're currently interviewing candidates for the position of fund-raiser for the project and will be working with that individual on the completion our fund-raising strategies. Our time line for ground-breaking is within nine months from today. I hope that the Council Committee on Public Property will extend this time line and make it possible for one of the most exciting projects on arts and culture in the Puerto Rican Latino community to date. This project means a lot to the artists, to our young people, and to the revitalization of the Fairhill section of 8 10/29/02 - PUBLIC PROPERTY - BILL 020480 North Philadelphia.
Thank you very much for your testimony. Any questions for Mr. Bermudis? (No response.)
Seeing none, thank you for coming and good luck on your project.
My name is Bill Kramer. I am a zoning planner in the Development Planning Division of the City Planning Commission. I am here to testify on Bill 020480. This bill authorizes the City to convey a vacant 2.1 acre City-owned parking lot on the northwest corner of Fifth and Huntingdon streets to the Philadelphia Authority for Industrial Development. The property will then be conveyed to Musicos Latinos Americanos. This subject matter, Bill 020480 was previously considered and approved by the Planning Commission as Bill 970833 at its meeting of March 5, 1998. And we, therefore, support the passage of this bill.
Thank you very much 9 10/29/02 - PUBLIC PROPERTY - BILL 020576 for your testimony. Any further testimony for these witnesses? (No response.)
Seeing none, anyone else in the room to testify in favor or against this bill? (No response.)
Seeing none, we will now move to Bill No. 020576, an ordinance approving the sale of a certain lot or piece of City-owned ground, with the buildings and improvements thereon erected, if any, situate 923R South Second Street, Numbers 1 and 2, in the City of Philadelphia, and authorizing the Commissioner of Public Property to execute and deliver a deed to the purchaser, under certain terms and conditions. Please identify yourself for the record.
Again, good morning, Mr. Chairman. Commissioner Perez representing the Department of Public Property. The reference property, which is the subject of this bill, was sold at public auction, as we sometimes do throughout the year. The ordinance 10 10/29/02 - PUBLIC PROPERTY - BILL 020576 permits us to complete that transaction with the buyer. We ask for favorable consideration.
Thank you. Any questions for the Commissioner? (No response.)
Anyone else to testify on this bill? Please identify yourself.
Yes, good morning, Mr. Chairman. My name is Bill Kramer. I am the zoning planner for the Development Planning Division of the City Planning Commission. The Planning Commission is scheduled to consider Bill 020576 at its meeting of November 17th of this year with a staff recommendation of approval.
Thank you very much. Any questions for the witnesses? (No response.)
Seeing none, anyone else in the room to testify in this bill? Please come forward. Good morning. Please identify yourself for the record.
Good morning, Members of the Committee, Chairman Kenney. My name is Brad 11 10/29/02 - PUBLIC PROPERTY - BILL 020603 Feldman with the law firm Claire Harrison, and I represent the purchaser in this transaction, Mr. Phil McFillin. Just briefly, this is a property located off of Second Street on Souder Way. It is a vacant described blighted property with concrete, stored on it trash. And what the purchaser is looking to do is to take possession of the property, develop it, put two homes on it and then go ahead and sell those. This transaction would then free up some other properties around there which also in a blighted condition and really improve that neighborhood. And we're asking that the Committee report this out favorably and then proceed to suspend its rules so it can be read.
Thank you very much. Any questions for the witnesses? (No response.)
Seeing none, anyone else to testify on this bill? (No response.)
Thank you. We will now move to Bill No. 020603, an ordinance 25 authorizing the Commissioner of Public Property to 12 10/29/02 - PUBLIC PROPERTY - BILL 020603 execute and deliver to he Philadelphia Authority for Industrial Development, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon, situate on the southwest corner of American and Somerset Streets, subject generally to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation and further authorizing PAID, notwithstanding any contrary requirements of the Philadelphia Industrial and Commercial Development Agreement, to convey such land for a consideration of $100,000, under certain terms and conditions. Please identify yourself for the record.
My name is Paul Deegan. I represent PIDC and PAID. I'm here to testify in support of Bill No. 020603. This bill authorizes the City to convey a 1.4 acre parcel of vacant land at the southwest corner of American and Somerset Streets to PAID. After acquisition by PAID, the property will be sold to Mr. Reinaldo Pastrana, 2727 North American 13 10/29/02 - PUBLIC PROPERTY - BILL 020603 Street, for a consideration of $100,000. Mr. Pastrana intends to construct a 40,000 square foot retail and commercial and office complex on the site. He projects the total project cost of $5 million and the creation of 90 temporary and 115 permanent jobs in the American Street Enterprise Zone where this parcel is located. Mr. Pastrana is the successful developer of Plaza Americana, a retail, warehouse, and office complex on the northeast corner of American Street and Lehigh Avenue, across the street and a little bit to the south from the subject property. This project was part of a general revitalization of this area that includes the recently completed Congreso de Latinos Unidos facility on the southeast corner of American and Somerset streets, directly across the street, the 30,000 square foot multi-tenant building constructed by PAID on the northwest corner of American and Somerset Streets and a new Rite-Aid store on the southwest corner of American Street and Lehigh Avenue. The subject property was originally donated to the City by the E.F. Houghton Company in July 1980. Since that time, the site has had a 14 10/29/02 - PUBLIC PROPERTY - BILL 020603 history of hazardous material contamination and poor soil quality. I think there were some oil tanks underground. They were dug out some poor fill was put in there, and it's made it difficult to attract development on the site. Even though the past contamination has been abated, the site conditions put a premium on construction costs reducing the value of property below that of comparable sites in the area. The City and particularly the Commerce Department has been negotiated with Mr. Pastrana and they've agreed on a price of $100,000 for the site. This price taking into account the history of the site and the poor soil conditions which Mr. Pastrana will to deal with when he builds his facility. By selling the site to a local developer with a proven track record, the City will put a vacant site which is often dumped on back on the tax rolls, create new jobs, and relief itself of any liability or responsibility for clean-up and maintenance. I ask that the City consider the bill 24 favorably and that the Rules of Council be suspended to permit first reading at the next regularly 15 10/29/02 - PUBLIC PROPERTY - BILL 020603 scheduled meeting of Council. Thank you. I'll be happy to answer any questions.
Thank you very much. Any questions for the witness? (No response.)
None. Commissioner, please identify for yourself for the record.
Good morning, Chairman Kenney. My name is Andres Perez, Commissioner of Department of Public Property and I'm here today to testify in support of Bill No. 020603. We support this transaction to PIDC and the ultimate buyer. The property has been in the City's land back for many years, a problematic property with very limited reuse purposes, and we completely support the project. We ask for your favorable consideration in this matter.
Thank you very much. Any questions for the Commissioner? (No response.)
Mr. Chairman, Members of 16 10/29/02 - PUBLIC PROPERTY - BILL 020603 the Committee, my name is Bill Kramer. I'm a zoning planner in the Development Planning Division of the City Planning Commission. I'm here today to testify on Bill 020603. This bill authorizes the City to convey a 1.4 acre parcel of vacant land at the southwest corner of American and Somerset Streets to the Philadelphia Authority for Industrial Development. The property then will be sold to Reinaldo Pastrana for a consideration of $100,000. The Planning Commission is scheduled to consider Bill 020603 at its meeting of November 17th of this year with a staff recommendation of approval.
Thank you very much. Any questions for these questions witness? (No response.)
Anyone else in the room to testify on this bill? (No response.)
Seeing none, is there a request for a suspension on this?
Yes, Mr. Chairman. If we could, we'd like to have the rules suspended to 17 10/29/02 - PUBLIC PROPERTY - BILL 020633 permit first reading on this Thursday. I think you're off next Thursday so actually it will two weeks for the bill to pass, and I note that the developer is anxious to start site work and investigations on the site.
Thank you. Since there's no one else to testify on this bill, we'll now move to Bill No. 020633, which is an ordinance 10 authorizing the Philadelphia Authority for Industrial Development (PAID) to purchase a certain tract of land situate at the southeast corner of 50th Street and Parkside Avenue, for a consideration not to exceed $70,000, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, PAID, and Philadelphia Industrial Development Corporation (PIDC). Please identify yourself for the record.
Good morning, Mr. Chairman and Members of the Committee. My name is Paul Deegan. I represent PIDC and PAID. I'm here today to testify in support of Bill No. 020633. This bill authorizes PAID to purchase an approximately one-acre property, a vacant lot, at 18 10/29/02 - PUBLIC PROPERTY - BILL 020633 the southeast corner of 50th Street and Parkside Avenue for consideration not exceed $70,000. After acquisition by PAID, we will improve this lot with landscaping and signage to create an attractive and visible entrance to the 60-acre West Parkside Industrial Park located immediately to the south. Both the Commerce Department and PIDC believe that this industrial park needs a visible presence on Parkside Avenue to encourage companies to consider this as an attractive location. The park is now surrounding by existing industrial and residential development, making it invisible to traffic on Parkside Avenue. And needless to say, sales have been very slow in this industrial park. By creating an attractive front door on Parkside Avenue, we intend to increase interest in the industrial park and also to enhance the appearance of this intersection. This will benefit the existing businesses on Parkside Avenue as well as the vacant industrial land to the south. The purchase price is based on a recent appraisal of the property by an independent appraiser. And the current owner of the lot, Consolidated Drake Press, 5050 Parkside Avenue, has 19 10/29/02 - PUBLIC PROPERTY - BILL 020633 agreed to sell the lot to PAID. The cost of the acquisition will be paid from available capital funds in the Industrial and Commercial Development Revolving Fund. I ask that the Committee consider this bill favorably and that the Rules of Council suspended to permit first reading at the next regularly scheduled meeting of Council. Thank you for the opportunity to testify, and I'll be happy to answer any questions you may have.
Thank you, Mr. Chairman. Mr. Deegan, thank you for your testimony. I do look forward to creating a bit of a gateway to the West Parkside Industrial Park. And maybe just the clean-up and the signage will actually encourage people to stay a little while and inquire about the site. What I'd like to ensure is that you will work with my office and the business association and the local civic organization and neighborhood people 20 10/29/02 - PUBLIC PROPERTY - BILL 020633 about issues related to the landscaping and the signage to make sure that it is appropriate for the area and naturally suit your purposes as well. Can you work with us on that?
Yes, we certainly will. We would like this to be, not just an asset to our industrial park, but to kind of advertise the whole area. And I think we've been talking to WPFSI. We also attend the monthly meetings of the West Parkside Business Association. We've talked to, obviously, Consolidated Drake Press who's selling us the property. They're located there. The BTC, the Business Technology Center next door, I think they think it's a good idea. And I think we would like to create something that benefits everybody on Parkside Avenue, also, the coming shopping center on 52nd Street. But most of all, we just want to get people into Parkside so we can sell some land.
I understand. Make sure you also talk with the Parkside Association of Philadelphia. And I understand there's some local people who may be engaged in some gardening-related activity, and we'd like to talk about how some of that may be incorporated into what's going on here. 21 10/29/02 - PUBLIC PROPERTY - BILL 020633
Yes. I think it's an acre and we don't intend to build anything there, so I think whatever would make it look attractive and productive for the area is what we're trying to do.
Good morning, Mr. Chairman and Members of the Committee. My name is Bill 14 Kramer. I am a zoning planner for Development Planning Division of the City Planning Commission. I'm here to testify on Bill 020633, which was introduced by Councilman Nutter on October 17 of this year. This bill authorizes the Philadelphia Authority for Industrial Development to purchase approximately one acre of property at the southeast corner of 50th and Parkside Avenue for consideration not to exceed $70,000. This lot will be improved with landscaping and signage in order to create an attractive invisible entrance to the 60-acre West 22 10/29/02 - PUBLIC PROPERTY - BILL 020633 Parkside Industrial Park located to the south. The new entrance is intended to increase the interest in the Industrial Park and enhance the appearance of the intersection. The Planning Commission is scheduled to consider Bill 020633 at its meeting of November of this year with a staff recommendation 8 of approval. 9
Thank you very much. 10 Any questions for this witness? 11 (No response.) 12
Anyone else to 13 testify for or against this bill? 14 (No response.) 15
Seeing none, that 16 will conclude the public hearing for the Committee 17 on Public Property and Public Works. - - - 23 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Tuesday, October 29, 2002 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 696, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 020480, 020576, 020603, 020633. - - - PRESENT: COUNCILMAN JAMES KENNEY, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DICICCO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL NUTTER - - - 24 10/29/02 - PUBLIC PROPERTY - PUBLIC MEETING
We will now convene a public meeting. The Chair recognizes Councilmember Clarke for a motion on Bill No. 020480.
Thank you, Mr. Chairman. I make a motion that Bill No. 020480 be reported out of this Committee with a favorable recommendation and a request for suspension of the rules to allow reading at the next Session of Council.
There are none opposed. Bill No. 020480 reported out of this Committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Miller for a motion on Bill No. 020576 with a rules suspension. 25 10/29/02 - PUBLIC PROPERTY - PUBLIC MEETING
Mr. Chair, I move that Bill No. 020576 be reported out of this Committee with favorable recommendation and that the Rules of Council be suspend so as to permit first reading at our next session. (Duly seconded.)
There are none opposed. Bill No. 020576 reported out of this Committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Clarke for a motion on Bill No. 020603.
Thank you, Mr. Chairman. I make a motion that Bill No. 020603 be reported out of Committee with favorable recommendation and a request for suspension of the rules to allow reading at the next Session of Council. (Duly seconded.)
Moved and seconded. 10/29/02 - PUBLIC PROPERTY - PUBLIC MEETING All in favor? (Aye.)
Bill No. 020603 reported out of this Committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Nutter for a motion on Bill No. 020633.
Thank you, Mr. Chairman. I move that Bill No. 020633 be reported out of this Committee with favorable recommendation and a further recommendation that the Rules of Council be suspended so as to permit first reading at our next Session. (Duly seconded.)
There are none opposed. Bill No. 020633 reported out of this Committee favorably. A request will be made for rules suspension to allow first reading at our next 27 10/29/02 - PUBLIC PROPERTY - PUBLIC MEETING Council Session. There are two announcements. Public Property Committee that was supposed to be meeting tomorrow on the airport, due to inability to get our witnesses all in line on their same schedules, we're going to postpone that and we will be rescheduling the hearing. Also, the Council President requests that the Members of this Committee meet with her at 11:00 a.m. on various issues. Thank you. That concludes the business of this Committee. Thank you for your attendance. (Council adjourned at 11:45 a.m.) - - - 28 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of October 29, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ___________________________ Lisa C. Bradley, RPR and Notary Public