COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON RULES3 Room 400, City Hall6 Philadelphia, Pennsylvania Wednesday, March 23, 20117 10:05 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA10 COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DiCICCO11 COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM K. GREENLEE12 COUNCILMAN CURTIS JONES, JR. COUNCILMAN JAMES KENNEY13 COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN14 BILLS 100610, 100611, 110181, 110083, 11013316 and 110134 - - - 2
Good2 morning, everyone. Can we have your3 attention, please. Thank you.4 This is a public hearing of the5 Rules Committee.6 I would ask the Clerk to please7 read the title of Bill No. 110133.8
Bill No. 110133, an9 Ordinance to amend the Philadelphia10 Zoning Maps by changing the zoning11 designations of certain areas of land12 located within an area bounded by13 Warfield Street, the Schuylkill14 Expressway, Reed Street, a Railroad15 R.O.W., and Moore Street.16
Thank17 you.18 This bill is going to be19 continued until the call of the Chair.20 The Clerk will please read the21 title of Bill No. 110134.22
Bill No. 110134, an23 Ordinance amending Title 14 of The24 Philadelphia Code, entitled "Zoning and25 3 3/23/11 - RULES - BILL 100610, ETC.1 Planning," by adding a new Section2 prohibiting the issuance of any permit3 for the construction of buildings,4 additions or roof decks, exceeding a5 certain height, on certain properties6 within the Point Breeze area of the City7 and providing that such prohibition shall8 expire after a specified period of time,9 all under certain terms and conditions.10
Thank11 you.12 Mr. Greenberger.13 (Witness approached witness14 table.)15
Good morning.18 COUNCIL PRESIDENT VERNA:19 Please identify yourself for the record20 and proceed with your testimony.21
Alan22 Greenberger, Deputy Mayor for Economic23 Development. Good morning, President24 Verna and Councilmembers. 1 the opportunity to present testimony on2 Bill No. 110134, which was introduced by3 Councilwoman Tasco on behalf of the4 Council President. Bill No. 1101345 proposes the imposition of a one-year6 moratorium on the issuance of any permit7 for the construction of buildings,8 additions or roof decks, exceeding two9 stories in height, in the area bounded by10 Washington Avenue, Broad Street, Moore11 Street and 25th Street. 18 The primary concern with this19 legislation is the extreme negative20 effect that the proposed moratorium will21 have on property values in the Point22 Breeze neighborhood and adjacent23 communities. 9 The goal of NSP2 is the10 stabilization of property values in11 selected neighborhoods through investment12 in affordable homeownership, housing13 rehabilitation, foreclosure prevention14 and weatherization programs. With the15 aid of federal dollars, the City has16 targeted the Point Breeze neighborhood to17 receive significant investment in the18 next two years. timeline to prove that property values2 have stabilized or increased. Department of Housing and Urban4 Development, HUD, requires that 505 percent of NSP2 funds be spent by6 February 2012 and the balance by February7 2013. 14 For example, a three-story development15 has been proposed for 17th and Federal16 Streets as part of NSP2. This17 development consists of 11 units of18 affordable homeownership row houses. The19 developers, Community Ventures with South20 Philadelphia HOMES, was chosen through a21 competitive City-issued RFP process. 2 I would also note that the City3 currently owns over 200 surplus4 properties in the area covered by this5 bill, ten of which are currently for sale6 under the Public Property pre-approved7 sale program. 14 Another major concern with the15 legislation is the wide breadth of the16 bill, both geographically and17 contextually. The legislative text18 states that the purpose of the moratorium19 is to preserve the uniformity of the20 streetscape in portions of the Point21 Breeze neighborhood. 1 thousands of properties. Moreover, the2 stated goal of the legislation is3 preservation of a purportedly4 characteristically two-story residential5 neighborhood. 21 The Philadelphia Zoning Code22 Commission has heard concerns regarding23 contextual design of new construction and24 renovation in neighborhoods. 5 Proponents of this measure have been6 active participants in the Zoning Code7 reform process and have repeatedly urged8 the codification of the prohibition of9 three-story buildings or additions to the10 Zoning Code. 14 Since the proposed measure was15 introduced, City Planning Commission16 staff has received a significant amount17 of community feedback on the bill. 1 concerns that this bill attempts to2 address, the harmful effects of this3 overly restrictive proposal far outweigh4 the notional benefit. 13 Thank you for the opportunity14 to testify. 16
Thank17 you, Mr. Greenberger.18 I believe you testified that19 there are over 200 properties in the area20 that are surplus properties owned by the21 City.22
And24 that ten of them currently are for sale.25 11 3/23/11 - RULES - BILL 100610, ETC.1 Does the City have plans to sell the2 remaining 190 properties in the near3 future, and, if so, can you tell us when?4
I don't know5 the answer to the "when" part, but the6 City is very interested in selling7 surplus properties. So the answer is8 yes. We're trying to organize a uniform9 system that would enable us to sell these10 properties efficiently.11
Thank12 you.13 You also mention that the14 proposed new Zoning Code addresses the15 matter of three-story construction on16 two-story block faces. Could you explain17 that further to the Committee, please.18
Yeah. In19 fact, you might -- I don't know whether20 you'll see them today. You might see21 some photographs of some developments22 where the middle of a two-story block23 somebody has bought the property and24 added a third floor right on the street25 12 3/23/11 - RULES - BILL 100610, ETC.1 face, and I have to say, the images that2 I've seen are not very convincing. If I3 were a neighbor of that development, I4 would be upset, that it felt like a5 pretty significant imposition on the6 character of the block. So in response7 to that, rather than wanting to shut down8 that opportunity for redevelopment of9 relatively small houses, we suggested10 that any third-story addition on such a11 block or the creation of a new12 three-story building on such a block have13 a setback at that second floor cornice14 line of at least eight feet, so that the15 face of the third floor is pushed back16 from the street a noticeable dimension,17 which would render it not invisible18 certainly, but it would render it19 significantly less visible.20
Does21 the new Zoning Code address roof decks as22 well?23
The new24 Zoning Code does address roof decks. It25 13 3/23/11 - RULES - BILL 100610, ETC.1 generally does allow them, but under2 restrictions of height and location,3 again, relative to front building faces.4
Thank5 you.6 The Chair recognizes Councilman7 Greenlee.8
Thank9 you, Madam President.10 Mr. Greenberger, just one11 question. You talk about that many of12 the blocks included in the moratorium13 have historically been three-story14 blocks. So as this bill reads now, if15 there are new construction on these16 blocks, they could only be two-story?17
Thank24 you.25 14 3/23/11 - RULES - BILL 100610, ETC.1
I'm2 sorry.3 The Chair recognizes Councilman4 Clarke.5
With10 respect to the third floor setback -- and11 I agree, because it's happened in my12 district in instances where that13 setback --14
Probably15 happened in a number of places in the16 City.17
Exactly.18 But would there be any prohibitions on19 decks being put on that area?20
Yes. Yeah.21 I think, again, the deck restrictions22 are -- it would apply, I believe, to the23 deck restrictions as well and, again,24 certain limitations about heights of25 15 3/23/11 - RULES - BILL 100610, ETC.1 railings and so on.2
I'm talking3 about decks on that portion that's now4 two stories.5
Yeah. I6 don't believe that we would allow that to7 happen, because you would have to then8 have a railing, and, again, then that9 would create a wall on the street.10
Exactly.11 It would defeat the purpose. And that12 would be within the Code, but what13 happens if the individual goes to the14 Zoning Board and gets a variance?15
It's16 possible, but I think the idea of having17 a new rule is that the rule has been18 thought through carefully, and we19 certainly would encourage the Zoning20 Board not to permit such variances. And,21 truthfully, I mean, especially for a22 deck, it would be pretty hard to argue23 that there was a hardship.24
Well, I25 16 3/23/11 - RULES - BILL 100610, ETC.1 hear you.2
I had a4 recent case over in Fairmount, Councilman5 Greenlee's area, over near Broad Street6 where --7
It's very8 clear that people like decks, but I think9 the particular concern is on these blocks10 that are consistently two-story blocks,11 and I think legitimately we have to be12 really careful about it. People can put13 decks on the back.14
Thank you,22 Madam Chair.23 Mr. Greenberger, you just24 mentioned that you would encourage the25 17 3/23/11 - RULES - BILL 100610, ETC.1 Zoning Board. How does the2 Administration encourage the Zoning3 Board?4
A member of5 the Planning staff is at all of the6 Zoning Board meetings and the Zoning7 Board does ask Planning's point of view8 on these things.9
Thank15 you.16 The Chair recognizes17 Councilwoman Miller.18
Hi. Good19 morning. Good morning, Mr. Greenberger.20 Just for clarity, does this21 bill just refer to new construction?22
New or23 renovated. So that if you have an24 existing -- well, "renovated" meaning25 18 3/23/11 - RULES - BILL 100610, ETC.1 you're doing an addition, a third-story2 addition on a two-story house.3
But if4 you have an existing third story on a5 home that needs renovating --6
No, it would7 not apply to that, unless you were adding8 to it. But if you were doing an internal9 renovation, it would not apply to it.10
Thank14 you.15 The Chair recognizes16 Councilwoman Brown.17
Thank you,18 Madam President.19 Follow-up to Councilman20 Kenney's question regarding the Planning21 Department urging the Zoning Board, has22 it been standard operating procedure that23 professionals of the Planning Commission24 sit --25 19 3/23/11 - RULES - BILL 100610, ETC.1
The12 Chair again recognizes Councilman Kenney.13
Thank you.14 Relative to staff15 encouragement, we had a situation in, I16 think, Councilman Clarke's district17 relative to the X-rated movie theatre and18 the go-go bar, for want of a better word.19
Yeah. What22 was the Planning staff's encouragement or23 lack thereof then?24
The25 20 3/23/11 - RULES - BILL 100610, ETC.1 encouragement was that there was an2 opportunity to actually lose one -- to3 get rid of one of the two operations on4 two blocks, one on the 2200 block, one on5 the 2100 block, and since the -- there6 was an opportunity to get rid of one of7 them, and we thought that that was a8 decent solution given that both of them9 are legal or grandfathered.10
But their11 request was for an expansion of the12 operation.13
Their request14 was to expand a second floor on the15 theatre one and they had offered to get16 rid of the other one and basically undo17 the zoning that allowed that to exist.18
Any24 other questions from members of the25 21 3/23/11 - RULES - BILL 100610, ETC.1 Committee?2 (No response.)3 COUNCIL PRESIDENT VERNA:4 Mr. Greenberger, thank you very much.5
Do we7 have anyone else from the Administration8 to testify on this bill?9
Thank12 you.13 Very well. Our first witness14 will be Betty Beaufort.15 Please approach the witness16 table, identify yourself and proceed with17 your testimony.18 (Witness approached witness19 table.)20
Good morning.23 My name is Betty Beaufort and I'm24 President of Concerned Citizens of Point25 22 3/23/11 - RULES - BILL 100610, ETC.1 Breeze. I'm here today to tell why we2 need this moratorium.3 This moratorium is for the4 people that lives in Point Breeze. Point5 Breeze needs the help -- Point Breeze6 needs help before the people become7 homeless. What I mean by that, they8 won't be able to live. They won't be9 able to afford to live --10
I'm11 sorry. You're going to have to pull the12 microphone closer to you.13
I said Point14 Breeze needs help, because before we know15 it, they won't be able to afford to live16 in Point Breeze because they will be17 taxed out and the luxury homes will push18 us out of Point Breeze. That's our19 concern for the people today. We're here20 for the people, because Point Breeze --21 people makes up Point Breeze.22 So how we got started with23 this, we had a campaign, Save Point24 Breeze, canvassing the neighborhoods, and25 23 3/23/11 - RULES - BILL 100610, ETC.1 the people began to ask us about the2 three-story houses. So we said, What3 about them? So they said, first of all,4 they don't like the way they look.5 They're too big. They don't fit the6 community, because we are a two-story7 neighborhood and we are looking to keep8 Point Breeze as a two-story neighborhood.9 They said they're going to tax10 us out, a rent increase. They block our11 sky view. They block the -- we have a12 view of Center City. It blocks our13 Center City view.14 So we want to know -- they want15 to know what could we do for them. So we16 began to see that -- we began to see17 their support, and we started doing18 petitions. After that, we met with19 Council President Verna. In a meeting we20 asked for a moratorium, and Council21 President Verna said she will look in to22 see what could be done. They said it23 could be done.24 How would this moratorium help25 24 3/23/11 - RULES - BILL 100610, ETC.1 the community? As stated in the2 ordinance, the residents in this3 characteristically two-story residential4 neighborhood, to give Council the5 opportunity to explore ways to preserve6 the uniformity of the streetscape and the7 current scape and density of the area.8 The way it is now is, people9 are being pushed out that can no longer10 afford to live in Point Breeze. The11 three-story houses are eyesores, look12 like dominos, one in the middle of the13 block, one in the middle of the block,14 one in the middle of the block. It just15 looks terrible, so -- and this is causing16 gentrification, and people began to17 stress and worry if they will be able to18 live in the community where they have19 lived all their lives.20 So just imagine yourself, if21 you live in the community all your life,22 and you see no way out. All these big23 luxury houses come in around you and you24 have nowhere to go. You would be25 25 3/23/11 - RULES - BILL 100610, ETC.1 stressed out and worried, and plus you2 have a family, and plus you know your3 salary. You know your salary will not4 meet up to the income that these houses5 are being priced at. Yeah,6 gentrification. Yes, indeed.7 Due to high stress, worrying8 brings about increased strokes and heart9 attacks and other health issues.10 This is about the people, and11 they have the right to say what comes12 into their community. This is a profit13 over people. Where is the human in this?14 I am asking the City Council15 members to pass this moratorium and16 really take time out to look at how this17 housing policy is having a negative18 effect on our community. And believe me,19 it is about the people and it's about the20 human that's in this situation.21 So I want you to think twice22 about how -- what you will be doing to23 the people that live in Point Breeze,24 because we need to.25 26 3/23/11 - RULES - BILL 100610, ETC.1
Thank2 you very much.3 Are there any questions or4 comments?5 The Chair recognizes Councilman6 Greenlee.7
Just one8 question, Madam President. Thank you.9 Ma'am, I know similar to the10 question I asked of Mr. Greenberger, he11 said that many of the blocks that are12 encompassed in this bill are three13 stories. Do you agree with that, and how14 would you address that if there's new15 renovations or construction? Would you16 think they should not be three-story?17
Councilman,18 believe me, we had a designated area for19 three-story houses before in Point20 Breeze. Mary McNichols, God rest her21 soul. There was always a designated22 place for three-story houses in Point23 Breeze, but, no, these three-story houses24 just plopping up anywhere, anywhere,25 27 3/23/11 - RULES - BILL 100610, ETC.1 anywhere, anywhere.2
So this3 proposed area, does it have three-story4 houses on its blocks, in the proposed5 moratorium area?6
We're talking7 about Point Breeze, the area of Point8 Breeze.9
Some places have16 three stories, but they was designated17 areas back in the day. I don't know18 when.19
But as I20 understand the bill, if there's any21 construction on those blocks, they could22 only be two-story, correct?23
Yes. That's24 what we asking for, yes.25 28 3/23/11 - RULES - BILL 100610, ETC.1
So even2 on three-story blocks, if they renovate3 properties, you want them to only be4 two-story?5
Most of the6 houses on three-story blocks, they7 already houses are there.8
Most of the10 houses they are building three stories11 are vacant lots.12
No. I said most15 of the houses they're building16 three-story houses on now are vacant17 lots.18
But19 that's my question. But on those blocks,20 aren't there also houses that are21 three-story? There might be vacant lots,22 but is the whole block vacant?23
No. What I'm24 saying, you have a block -- this is a25 29 3/23/11 - RULES - BILL 100610, ETC.1 block. This particular is a lot. When2 they come now, they build three stories3 in this two-story.4
All13 right. I'm not going to go back and14 forth. All right. Thank you.15
Thank16 you.17 Our next witness, Tiffany18 Green.19 (Witness approached witness20 table.)21
1 of Council, the Rules Committee. , and I was thinking8 about what Martin Luther King would say9 about three-story luxury homes being10 built in low-income, minority11 communities. 17 I want to take a look at those18 pictures of those three-story houses19 being built in two-story communities,20 because that's the reality of what we're21 dealing with from this whole new22 development. 1 We have rode around other2 areas, non-minority areas, like down3 Second and Mifflin, 12th and Girard -- I4 mean, 12th and Oregon, and they're not5 being targeted with these three-story6 houses and decks in the middle of7 two-story communities. It seems like the8 only communities really being targeted9 are low-income and distressed10 communities. And we're saying respect11 us. 12 Now, like Ms. Betty said, we13 started going around canvassing, and the14 people -- and we asked the people how15 they feel about their community, and they16 started coming up with these three-story17 houses. They didn't like them in their18 two-story community. 22 These structures do not conform to23 traditional two-story neighborhoods. 2 A setback is still a3 three-story. We saw a setback on the4 2200 block of Montrose. What did they5 do? They set back the building and then6 put a little white gate around it and did7 a sliding door and then still did a deck8 on the front. So the setbacks are still9 three stories. 10 Construction damage: We have11 quite a few residents who had12 construction damages. 17 They're hiring these construction18 companies. 1 getting all kinds of cracks in their2 buildings and that type of thing, and3 they don't know where to go. There's4 nothing set up. Many of them are low5 income. 6 Water damage and roof erosion:7 When you build three-story houses in8 two-story blocks, the water runs down and9 pops down onto their roof more, and that10 creates roof erosion. 14 Privacy issue: You can look15 down from a third-story house into a16 second story. They can't even open up17 their blinds. You need to take a look at18 this. 21 When you have these three-story houses22 being built on small blocks, it is23 blocking the whole skyline. 3 Also, their sunlight is being4 blocked. The sunlight is being blocked,5 because you're used to having two6 stories. 10 Potential burglary: These11 people -- we're not saying that everybody12 moving in is on the up-and-up. They can13 jump down onto the second story and go14 down into chimneys or whatever, or go15 through their window. 18 Noise nuisance: These decks,19 the people are up there having parties on20 the decks and everything and all times of21 the night. They call the police. The22 police can't do anything because they up23 on the deck. 1 smoking on the deck, if they're smoking2 on the deck and somebody don't put the3 cigarette all the way, the fumes can fly4 off to the side to the other roofs and5 then you have two or three roofs catching6 on fire. Well, who is going to be7 responsible for that? 11 So we talked about the fire12 hazard. It's changing the fabric of our13 community. Other communities we ride14 down, you know, in South Philadelphia and15 they look very nice and they're not being16 messed with. 21 Also, they feel that it's22 intentional targeting. They feel it's23 intentional targeting of distressed24 communities. 1 It's increasing our property2 taxes and rents, because what happens is,3 you have these landlords who might have4 been given out to Section 8 -- and let's5 talk about this. There were three6 projects closed down even though some was7 rebuilt. You have Passyunk Homes, you8 have Wilson Park -- I mean, you have9 Tasker and you have 13th and -- around10 13th and Fitzwater. They all were closed11 down, and these people migrated into12 Point Breeze. 17 Okay. 2 They're going for three or four hundred3 thousand dollars in our low-income4 community. And then what happens is, it5 inspires other landlords to start selling6 out.
So now you have families who have7 to move because they want to sell their8 house and get out of this particular type9 of industry. So you have families moving10 that can't really find -- they don't want11 to move to West Philly. They're moving12 to Darby and Chester. 14 The increased rents, the rents15 are going up to $1,500 to $2,000. 20 And when I was little, I used21 to go to Odunde. All those blocks were22 really mainly working-class communities23 and some low income. A lot of them have24 been moved out. anymore. They all moved out. And we consider this a health4 concern. The CDC has a report out that5 says that when people start seeing6 buildings like this and they start7 thinking about it's gentrification, they8 start to get worried. 9 It brings on increased heart attacks and10 also strokes. 13 We're saying you're bringing14 undue stress on our community. We're15 asking that you put this moratorium in16 and take a deep look at what is happening17 to the community. Yes, it started out18 great, Councilman DiCicco, with the19 ten-year tax abatement. 1 are having an effect on the ground2 troops. We are being attacked. It's3 starting to hurt us. And so we're asking4 you to take -- to pass through this5 moratorium and take a deeper look at your6 policies and respect our community. We7 want to stay two-story, two-story. 13 In conclusion, I just want to14 say this real quick, and then I'm going15 to go. Part of the other reason is with16 the new residents moving in, a lot of the17 residents felt disrespected. Okay? 1 who is going to handle zoning. 4 There's a lot of confliction5 going on in these communities. This is6 not just little Point Breeze. We're7 getting calls from people in West8 Philadelphia. 14 It's starting to be seen around. People15 are waking up. And we're asking you to16 make it a level playing field. Put the17 moratorium through. Let's take a look at18 it. 22
Actually, I4 don't. I may not necessarily have a5 question for you, but is Mr. Greenberger6 still here? Is there anyone representing7 the Planning Commission that I can8 address this to?9
While you're doing10 it, can I answer his question he posed to11 Ms. Betty, because I think Ms. Betty was12 confused in terms of his question.13 We're talking about two-story14 communities. Okay? Right now currently15 there were no real three-story in South16 Philadelphia, Point Breeze. If it was17 built to three-story, then they did it18 level. They did houses all on19 three-story. But in two-story20 communities, we have mainly two-story21 communities in Point Breeze, from22 Washington Avenue down to -- all the way23 down to like Passyunk Avenue, mainly two24 stories.25 42 3/23/11 - RULES - BILL 100610, ETC.1 COUNCIL PRESIDENT VERNA:2 Councilman Greenlee.3
Just real4 quickly, ma'am, on that. So in this5 area -- this is what I'm trying to get6 at. In this area where the moratorium7 would be, are there blocks that are8 three-story?9
They're not blocks10 that are three-story. You have -- if11 there was a block of three-story, they12 were already built together. They're all13 together. But mainly all the blocks in14 Point Breeze are two-story.15
I16 understand that. I understand, but the17 blocks that are three-story, are there --18
Okay.25 43 3/23/11 - RULES - BILL 100610, ETC.1 That's what I was trying to get at.2 Those blocks that have vacant lots, under3 the way the bill reads now, as I4 understand, you could only build5 two-story houses on those lots.6
We're saying that7 if it's a two-story community on that8 lot, we're asking to build a two-story9 house, to keep it consistent.10
Right, to11 keep it consistent. On those blocks --12 and you said there's not that many.13 Okay.14
But the16 ones that are three-story where there's17 vacant lots, the three-story blocks in18 this --19
There's not that20 many three-story blocks. You're trying21 to ask me is there, yes or no. I'm22 saying to you, to your answer is yes, but23 it's not that many. Majority are24 two-story communities.25 44 3/23/11 - RULES - BILL 100610, ETC.1
Okay.2 But the blocks that have three-story, if3 there's new construction on there, on4 those lots on those three-story blocks,5 they could only be two-story under this6 bill. That's all I'm trying to get at.7
When you say8 three-story blocks, are you talking about9 half a block or are you talking about a10 whole block?11
I'm asking you, are14 you talking about half a block or a whole15 block?16
Well, if you don't19 know, then I can't answer, because if20 you're saying like a half block -- like21 if you look at the 2100 block of Wharton22 Street, one-half is all three-story. It23 was built like that back in the '50s.24 But the whole block is three-story. So25 45 3/23/11 - RULES - BILL 100610, ETC.1 if there's a lot, then we would assume2 that they will build to the three-story3 to keep it even, to keep it conformed.4
But what5 I'm saying, ma'am, under this bill as it6 reads now, you could not do that. That's7 the only thing I'm trying to point out.8 Under this bill, you could not do what9 you just said.10
Thank15 you.16 The Chair recognizes17 Councilman --18
Just25 46 3/23/11 - RULES - BILL 100610, ETC.1 a moment, please.2 The Chair recognizes Councilman3 Goode.4
The bill9 calls for a temporary moratorium, and10 your testimony is in support of the bill11 for a temporary moratorium, but your12 testimony seems to also call for a13 permanent moratorium. So just for14 clarity of the record, are you really15 asking this Committee and this Council to16 do a permanent moratorium?17
We would like to18 have a moratorium at this particular19 point to look at it, and if it calls for20 that, to do a permanent moratorium.21 We're asking what the people want, and22 this is what the people want. They want23 it to --24
I was just25 47 3/23/11 - RULES - BILL 100610, ETC.1 asking whether the people actually want a2 permanent moratorium or a temporary3 moratorium. That was the question.4
Good question. We5 would prefer a permanent moratorium at6 this particular point. I can't define7 what a permanent moratorium is. Can you8 define it for me?9
It has no10 time limit to it. And this bill has a11 time limit to it.12
Do you think that13 within the one year that we can work14 something out to see what could best suit15 the residents?16
I think the20 pictures that you offered tell the story.21 I think you told the story that you22 wanted to tell. I think it was an23 effective story, whether people agree or24 disagree. I think what you're really25 48 3/23/11 - RULES - BILL 100610, ETC.1 asking for in the end is a permanent2 moratorium. So if that's what you're3 really asking for, I'm just saying for4 clarity of record --5
Yes. We would like6 to work towards having two-story houses7 built in two-story communities. That's8 what we're asking for, a permanent. Yes.9
Thank12 you.13 The Chair recognizes Councilman14 Clarke.15
Thank you,16 Madam President.17 I was actually just planning on18 asking some of the same questions as19 Councilman Goode, but the whole issue of20 the Zoning Code Commission, because I21 know the Planning Commission essentially22 wants us to not do any overlays or any23 aggressive Council-mandated legislation24 relating to planning, height limits and25 49 3/23/11 - RULES - BILL 100610, ETC.1 all the other things until that's2 finished. Can you tell me when the3 Zoning Code Commission will be finished4 and ready to be implemented?5
I'm Gary6 Jastrzab. I'm the Executive Director of7 the City Planning Commission.8 The Zoning Code Commission9 earlier this month voted to issue a10 preliminary draft report based on the11 rewritten Zoning Code, and the Zoning12 Code Commission is now allowing the13 public, interested stakeholders14 additional time to review the rewritten15 Code, is taking comments on that and16 expects to issue a final report -- I17 should say a preliminary report -- to18 City Council by the end of June. So19 that's the current timeline.20
Well, the object23 is to issue the preliminary report to24 Council before you go in recess. So25 50 3/23/11 - RULES - BILL 100610, ETC.1 then --2
I'm just3 trying to get a timeline. You don't have4 to be very detailed in terms of what5 actually has to happen.6 All right. Let me try to do it7 for you. There's going to be a8 preliminary report issued to Council.9
The word11 "preliminary" is key. There then shall12 be a review by Council on the preliminary13 report.14
And then16 Council at some point will schedule a17 hearing to discuss the final proposal.18
Council's20 process may take some time, as we're on21 Bill No. 1 for the last hour. So you can22 see, we do deliberate. So there's a23 strong possibility that this may not24 even -- the Zoning Code Commission report25 51 3/23/11 - RULES - BILL 100610, ETC.1 may not actually become legislation until2 the end of the year. So if the3 suggestion is -- and we're still in4 March. If the suggestion is that we5 impose a moratorium of a year for an6 area, the Zoning Code Commission's7 recommendations may not even become law8 until next year.9 So in terms of the timing, I10 don't see why that should be a problem.11 It's almost concurrent in terms of the12 timeframe. So while you all do your13 work, there could be a moratorium on any14 additional three-story units built within15 this targeted area, because as Mr.16 Greenberger said, his recommendations in17 terms of coming up with a compromise or18 some sort of solution and having setbacks19 or other prohibitions with decks may be20 the answer, but that's not going to be21 the law probably until the end of the22 year.23
Until Council24 passes it and the Mayor signs it.25 52 3/23/11 - RULES - BILL 100610, ETC.1
Exactly.2 So I don't see why that issue in terms of3 timing should be a problem if we impose4 this moratorium until you all with the5 Zoning Code -- I'm sorry; Ms. Gladstein6 does their work with the Zoning Code7 Commission.8 Secondly, this whole notion9 about overlays, I understand that City10 Planning doesn't like them, and I do them11 whenever I get a chance, when I think I12 need to do them.13
I did the15 Parkway overlay. It started very small16 and it grew, because that community up17 there wanted that overlay, and in that18 particular case, there was an opportunity19 to build the buildings a whole lot taller20 than three stories. As a matter of fact,21 it was in an area that it didn't affect22 residents directly until we expanded23 that, but at the end of the day, the24 residents in the Spring Garden and the25 53 3/23/11 - RULES - BILL 100610, ETC.1 Logan Square community thought it gave2 them an opportunity, at a minimum, to3 require developers to come to the4 community, and sometimes the community5 felt comfortable, most recently with the6 temple being built by the Latter-Day7 Saints.8 I don't see why in this9 particular case if -- and ultimately the10 sponsor of the bill will determine what11 strategy and process they will take. If12 there's a moratorium imposed in terms of13 height limit in that particular area, if14 there is a developer who comes in and can15 convince the local community that they16 should be able to build a three-story17 property within that targeted area and18 the community is comfortable with it,19 then they can always go to the Zoning20 Board and get a variance, right?21
Well, as I22 understand the bill, the bill imposes a23 one-year moratorium on the issuance of24 permits for any structure that would be25 54 3/23/11 - RULES - BILL 100610, ETC.1 taller than a two-story residential.2
So they3 wouldn't be able to get the permit. All4 right.5
So the9 moratorium is not on necessarily the10 right to build, but it's the issuance of11 permits, which provide the authorization12 to do the construction.13
Okay. All14 right. Well, as they say, a picture says15 a thousand words, or whatever the saying16 is. I can't remember exactly what it is.17 When I saw this picture here -- because18 I'm a pro-development guy. In my19 district we do a lot of development, but20 I see this picture here on this21 particular property stuck in the middle22 of this two-story block, I think that23 there needs to be some provision that24 prohibits this generally, not just for25 55 3/23/11 - RULES - BILL 100610, ETC.1 Point Breeze or anywhere, because this is2 not something that would be allowed to be3 done in a lot of parts of the City. I4 mean, we argue about a lot of things.5 Some people don't want buildings to have6 signs on them. You know what I mean?7
No. I would8 agree with that. From a design point of9 view, from an urban fabric point of view,10 that's something that we're not11 particularly in favor of either, and we12 think that some of the provisions of the13 newly rewritten Zoning Code will address14 those issues.15
All right.16 But that's not -- again, that probably17 won't be done until --18
And I know24 myself, because I have a lot of25 56 3/23/11 - RULES - BILL 100610, ETC.1 organizations in my district that are2 paying close attention to this Zoning3 Code Commission's report, and there are a4 lot of things in there that they don't,5 frankly speaking, like.6 So I personally, this7 Councilperson, who does not represent8 Point Breeze, I don't see a problem with9 imposing a moratorium. Maybe it10 shouldn't be a year or whatever, but I11 think that until the Zoning Code12 Commission, which was referenced by13 Mr. Greenberger as the solution to this14 problem, is put in place, I don't know15 why we shouldn't be in a position to put16 a moratorium on permits issued in this17 area.18
Well, our19 feeling -- the staff of the City Planning20 Commission and the Commission members21 themselves I think feel that a moratorium22 in this broadly defined area is also not23 a particularly good solution for dealing24 with the problem. Staff did a survey of25 57 3/23/11 - RULES - BILL 100610, ETC.1 the neighborhood, a sampling of blocks2 throughout the neighborhood, and the3 physical form of Point Breeze is very4 much varied. The blocks closer to Broad5 Street between Broad and 17th, 18th6 Street, the majority of those blocks are7 three-story blocks. I think as you move8 west, there is very much a mix. So --9
Let me ask10 you this, not to cut you off, are there11 areas where there are blocks that in its12 entirety are two-story blocks?13
So at a16 minimum, would it be reasonable to say17 that those blocks should have a18 moratorium on the issuance or some sort19 of provision that prohibits the20 construction of three stories on those21 blocks so you will maintain some22 consistency where there are no three23 stories on the block?24
That might be25 58 3/23/11 - RULES - BILL 100610, ETC.1 one possibility, but the bill as2 currently defined defines Point Breeze so3 broadly --4
-- and we think7 would have a chilling effect on new8 building, on renovations in the9 neighborhood in a way that would just10 have a negative effect not only on the11 neighborhood but on the City overall in12 terms of potential tax revenues for the13 future and attracting new residents.14
The first15 order of -- level of interest as it16 relates to us representing people should17 be the people that live there. I mean,18 if the people that live there think that19 this is good for them, I think that they20 should rank pretty high on the totem pole21 as it relates to --22
-- the25 59 3/23/11 - RULES - BILL 100610, ETC.1 priorities established in terms of what2 we do. So if the people in that3 neighborhood who have lived on these4 blocks and have these blocks that are5 three-story -- I'm sorry; two-story6 properties in its entirety or relatively7 close to three-story, if they say that we8 should maintain the character -- because9 I represent Center City and I represent10 the Art Museum area, and I always hear11 this "keeping within the character of the12 neighborhood," and you all usually13 support that.14
Sometimes16 recommend that. So in this particular17 case, I guess the request is that they18 want to maintain the character that19 relates to that particular neighborhood20 where we have these blocks that have21 two-story homes, and I don't understand22 why you all wouldn't take the same23 position on those particular blocks.24 Because the reality is, if I took that25 60 3/23/11 - RULES - BILL 100610, ETC.1 height limit off of the Parkway at 125,2 there probably would be a lot of people3 coming in wanting to build like that4 44-story building that was proposed at5 20th and Pennsylvania, and the neighbors6 were livid. A former Senator actually7 helped fund the opposition.8 So on these blocks -- and I9 don't know Point Breeze enough to have a10 real sense of -- but if you got blocks11 that are two-story blocks, I don't12 understand why we shouldn't be able to13 impose some sort of moratorium on it.14
I guess my15 response would be that we were evaluating16 the bill as written, and it's very --17
I mean, that's24 certainly a possibility, yes. But there25 61 3/23/11 - RULES - BILL 100610, ETC.1 are portions of the neighborhood that I2 think have serious concerns about the way3 the bill is currently written.4 Businesses along Washington Avenue, I'm5 told, have serious concerns because of6 the nature of those properties, the7 height of those properties would be8 prohibited from making additions or from9 being granted permits for anything that10 would allow --11
Usually16 when people are concerned, they come to17 the public hearing.18
It's having a2 chilling effect on us, and the Planning3 Commission at this particular point, if4 you read the Zoning Code -- first of all,5 the Zoning Code has been rewritten three6 times, and we've asked them to give the7 communities a chance to look at it three8 times. You can't get a copy. If you9 download it, it will mess up your10 computer.11 So I started to say, they have12 raised it from 35 feet to 38 feet, and13 we've had e-mail conversation with Eva14 saying, What is your reason for raising15 it from 35 feet to 38 feet? And in one16 of the reasons that was given to us was17 because there was too many people going18 to the ZBA for variances. This would cut19 back on paperwork.20 I mean, cut back on paperwork?21 You raise it to 38 feet. We're saying22 that at this particular point, we have23 support in 1700, 1600 blocks of -- 16th24 Street, 17th Street and 15th Street,25 63 3/23/11 - RULES - BILL 100610, ETC.1 little blocks that are two-story. We2 have that support, and they too don't3 want it.4 I just want to say thank you to5 Ms. Verna. I want to say thank you,6 Councilwoman Verna. It took a lot of7 courage -- not courage, but I want to say8 thank you for listening to us and9 understanding, you know, what your10 particular constituency was going11 through.12
And I13 will tell you that I did listen to your14 group and I did introduce this bill.15 However, never in my wildest dream did I16 think that there would be so much17 opposition. You know me long enough to18 know that in the past whenever we had an19 issue in the community, I always asked20 for a petition. Well, this area was so21 broad that it would be impossible to have22 received petitions from every area in the23 Point Breeze area.24 I know that you spoke about25 64 3/23/11 - RULES - BILL 100610, ETC.1 this for at least a year, a year and a2 half, but, as I said, when this became3 known to an awful lot of people, the4 opposition just kept growing every day.5 And while you're up there,6 Tiffany, let me just ask a question.7 Mr. Greenberger advised that the8 moratorium would interfere with9 investment in the neighborhood throughout10 the Neighborhood Stabilization Program11 administered by the Redevelopment12 Authority and could result in the13 Redevelopment Authority having to return14 federal funds. If the goals of the15 result in the RDA have not been achieved,16 the Neighborhood Stabilization Program is17 designed to stabilize property values in18 targeted areas such as Point Breeze19 through investment in homeownership,20 housing rehabilitation, foreclosure21 prevention and weatherization programs,22 all of which are beneficial to residents23 in the area.24 Now, I know how you feel about25 65 3/23/11 - RULES - BILL 100610, ETC.1 the community, and I feel equally as2 strongly. I don't know how we can afford3 to turn money back for all of these4 programs. If ever an area needed more5 funding, it's the Point Breeze area. So6 why would we jeopardize losing that7 money?8 Further, Mr. Greenberger also9 noted that the moratorium could also10 interfere with the City's surplus11 property program. There are over 20012 City-owned surplus properties in Point13 Breeze which are currently for sale by14 the Department of Public Property. This15 legislation, if passed, could prevent any16 sale of those properties and, as a17 result, prevent their return to the18 City's tax rolls.19 Are you willing to jeopardize20 all that --21
-- at23 this point in time when we can wait until24 the next Code comes out? And I know,25 66 3/23/11 - RULES - BILL 100610, ETC.1 Councilman, you said it would be --2 Councilman Clarke?3
I5 think you said you indicated it would6 take a year before --7
I said it8 could conceivably take a year, but, Madam9 President -- and I know I shouldn't be10 mucking around in your district, because11 I know --12
I should15 quit while I'm ahead.16 But, Madam President, I do have17 a concern about some of the testimony as18 it relates to Mr. Greenberger in19 discussing NSP, because, one, the reason20 why the funding of some of these stimulus21 dollars are in jeopardy is not because of22 Point Breeze, because there was a23 document sent by HUD that referenced all24 of the stimulus money, not Point Breeze,25 67 3/23/11 - RULES - BILL 100610, ETC.1 because of the process that was going on2 within the City has slowed down the3 ability for us to get that money in the4 pipeline, in addition to which if you5 look at -- if Mr. Greenberger was here,6 he can tell you the number of NSP7 properties are minimal, at best, that8 have been implemented, and I suspect that9 within the Point Breeze area, there's10 probably no more than two or three11 properties that have been selected for12 NSP, maybe a little more.13 I think that his testimony is a14 little overblown, in addition to which15 there are 200 City-owned plots in Point16 Breeze, but all of them are not for sale.17 I think the numbers are more around 20.18 And the question is, of that 20, how many19 people actually wanted to build three20 stories. So the testimony, I think,21 frankly speaking, is kind of --22
Yeah, we do have25 68 3/23/11 - RULES - BILL 100610, ETC.1 further testimony.2 And, Ms. Verna, I just want to3 say to you real quick, you know I would4 not come here unless we had the community5 support. We are not focusing on6 organizations who, one, have received7 funds from developers or who are in the8 developing business. We have dealt with9 the residents. You know we have the10 support, and we don't have -- we would11 not come down here without the support of12 the people in terms of petitions.13 So the thing about it is, is14 that people have spoken, and we're asking15 you to respect their request.16 Thank you very much. Thank you17 very much.18 COUNCIL PRESIDENT VERNA:19 Tiffany, as I said, I've worked with you20 a long time. I have received countless,21 countless e-mails, telephone calls,22 letters of people who are opposed to23 this. Now --24
Well, we brought a25 69 3/23/11 - RULES - BILL 100610, ETC.1 bus down. We have the people sitting up2 there. We brought a bus down.3
And more could6 come, but we couldn't afford more buses.7 So at this particular point, we do have8 the support.9 COUNCIL PRESIDENT VERNA:10 Tiffany, I -- I'm sorry you had to wait11 so long, Councilman.12
Let me let some of14 the other residents come down to speak.15 COUNCIL PRESIDENT VERNA:16 Councilman Goode.17
I actually18 have a question for Mr. Jastrzab.19 You said in your comments20 earlier -- and I heard you clearly,21 because it's my job to hear you22 clearly -- that this is not a23 particularly good solution to this24 particular problem. Do you recall saying25 70 3/23/11 - RULES - BILL 100610, ETC.1 that?2
In terms of the6 physical nature of two-story blocks being7 impacted by property owners who may want8 to build a taller structure, a9 three-story structure, on a vacant lot or10 perhaps there may be situations where an11 existing three-story structure wants to12 build an addition, owner of a three-story13 property wants to build an addition onto14 the back.15
Well, we think24 one solution is some of the provision in25 71 3/23/11 - RULES - BILL 100610, ETC.1 the new Zoning Code. That is a solution2 that is kind of on the table currently.3 We do not believe that a moratorium on4 all new construction is.5
But that's10 very ambiguous, just like your comment11 was earlier about this is not a12 particularly good solution to this13 particular problem. Let me tell you what14 I heard, and you can correct me if I'm15 wrong.16 She identifies the problem as17 there being too many three-story18 buildings presently and in the future,19 and I think you identified the problem as20 being there being too many two-story21 buildings now and in the future.22
That's what24 I heard.25 72 3/23/11 - RULES - BILL 100610, ETC.1
What I meant was6 that on blocks that are consistently7 two-story, maintaining that consistent8 physical fabric of the City I think is9 something that we at City Planning10 Commission would also generally agree11 with.12
Is this13 wrong?14 (Councilman Goode holding up15 picture.)16
I don't know23 that I can say that it's wrong. It's not24 something that's preferred.25 73 3/23/11 - RULES - BILL 100610, ETC.1
Then I don't2 think you have a solution to the problem.3 Thank you, Madam Chair.4 COUNCIL PRESIDENT VERNA:5 You're welcome.6 The Chair recognizes7 Councilwoman Brown.8
Thank you9 very much, Madam Chair.10 My concern also is that I'm11 deeply troubled about process or lack12 thereof, because I did hear you mention13 that as a result of the release of the14 preliminary report, that it would then15 come to Philadelphia City Council,16 correct?17
And you19 also indicated that you'd be asking20 for -- let me back up.21 You will be asking for22 community input prior to the release of23 the preliminary report?24
From2 there, it will come to Philadelphia City3 Council?4
At what6 point in that process is there some7 feedback to the community on the points,8 concerns, issues, suggestions,9 recommendations raised as it relates to10 the report?11
Well, I think12 that during the whole process, the Zoning13 Code Commission's process, that there's14 been an attempt to make the process open15 and transparent and to conduct -- to16 allow for continuing dialogue between the17 Zoning Code Commissioners and staff and18 other stakeholders in the City who are19 involved in development, community20 associations, neighborhood residents. So21 that process has continued throughout the22 life of the Zoning Code Commission.23
I don't24 doubt that. The step I'm missing is the25 75 3/23/11 - RULES - BILL 100610, ETC.1 follow-through and the feedback to those2 stakeholders to find out where their3 concern has been registered in this4 preliminary report.5
I'm going to6 ask --7 COUNCIL PRESIDENT VERNA:8 Ms. Gladstein, if there's information you9 can give us to enlighten us, please feel10 free to go to the microphone.11 (Witness approached witness12 table.)13
Thank you. Eva14 Gladstein, Executive Director of the15 Zoning Code Commission.16 In addition to 43 public17 meetings and 36 community-based meetings,18 we had two meetings in February, on the19 18th and 28th, specifically to get20 feedback about what comments and input we21 had received from stakeholders and how22 the Zoning Code Commission had disposed23 of those, what positions the Zoning Code24 Commission had taken and the reasoning25 76 3/23/11 - RULES - BILL 100610, ETC.1 behind that.2
And then in4 addition to that, we're holding seven,5 what we're calling, stakeholder exchanges6 this month and next month going issue by7 issue having that conversation.8 And then, lastly, as Ms. Green9 said, I've had e-mail and personal10 conversations about this issue. I think11 we've just disagreed, but we've had a12 number of conversations about it.13
That is14 helpful, and that is what I was not15 hearing in terms of process.16 Please, you wanted to comment?17
Councilwoman18 Blondell Reynolds, the reason why they're19 having this, because what happened was,20 they had three rewrites of the Zoning21 Code since December, three rewrites, and22 they were not really being distributed23 out to the community, and we spoke to24 some community groups in our community.25 77 3/23/11 - RULES - BILL 100610, ETC.1 They didn't even know that there were2 three rewrites. And then when you ask3 for a copy, they didn't give out copies4 of it because it was so thick.5 So when we were -- so I decided6 to go down to the Zoning Code Commission7 and let them know our position about the8 three-story houses in our community. At9 that point when I let them know,10 according to the City statistics, 90,00011 kids do not have Internet access. So12 that means that their parents don't have13 Internet access. So how are they14 supposed to access zoningmatters.org?15 So then they come back with,16 oh, now they're going to have these17 community meetings for the community18 regarding -- explaining to them, but19 they're at 5 o'clock. A lot of parents20 are getting off at 5 o'clock, picking up21 kids. The Zoning meeting is at 8 o'clock22 in the morning. It was very hard for me23 to get there 8 o'clock in the morning.24 After three rewrites, you have25 78 3/23/11 - RULES - BILL 100610, ETC.1 changed what you went around and said to2 the community last year. That's not the3 same Zoning Code that they presented4 last -- back in Christmastime. You have5 three rewrites. So the community really6 don't know what has been put into the new7 Zoning Code.8
So given9 those revelations, Ms. Gladstein, what10 accommodations are being made for11 community members who indeed should12 have -- you've given them a say, but the13 process is not completed until the actual14 preliminary document, draft document, is15 shared with them in a way that meets16 where they are, and if there's no17 Internet access, then what accommodation18 is made?19
When asked, I20 have provided copies of the 400-page21 document. It has changed over time.22 It's changed because we are23 consistently --24
It's a25 79 3/23/11 - RULES - BILL 100610, ETC.1 fluid working document.2
And we're3 continuing to hear comments and react to4 them and make those changes as many5 groups have asked for.6 So when requested, we've7 provided copies. We've added these8 meetings. And when asked, I've gone out9 to speak to many community meetings. I10 was in a meeting that the Council11 President's office asked the Planning12 Commission to hold in the last maybe13 three weeks with residents of Point14 Breeze as well. That was held in the15 evening.16
That is17 helpful.18 My second and final question19 is, it appears from where I'm sitting and20 from what I've heard that there's a21 disconnect with L&I. Where is L&I in22 this process?23
L&I has advised24 our staff, the City Planning Commission25 80 3/23/11 - RULES - BILL 100610, ETC.1 staff, regarding this bill, but, I mean,2 I'm not sure that they're necessarily3 involved to the same extent. The4 moratorium would just prevent them from5 issuing any permits for structures over6 two stories in this neighborhood. I7 mean, they review the plans and the8 building permit applications for this,9 but, I mean, they're issuing the permit10 only. The bill would just prevent them11 from doing that.12
Yes. I assume15 upon passage and when this would become16 law, if it would.17
Thank you18 all for your testimony.19 Thank you, Madam Chair.20
I25 81 3/23/11 - RULES - BILL 100610, ETC.1 would like to make an announcement. We2 did have a Capital Budget hearing3 scheduled for 11 o'clock this morning.4 For some reason we thought we would be5 able to do that. It's quite obvious that6 we're not going to. Therefore, we are7 going to continue the Capital Budget8 hearing until 1 o'clock today. So anyone9 in here who is going to be testifying on10 the Capital Budget, I would suggest you11 go out and have yourself breakfast and12 come back at 1 o'clock. Thank you.13 Madeline Shikomba.14 (Witness approached witness15 table.)16
Good17 morning. Please identify yourself for18 the record.19 Madeline, I think you just20 heard me say that we do have a Capital21 Budget hearing.22
If24 you could be as brief as possible, we'd25 82 3/23/11 - RULES - BILL 100610, ETC.1 appreciate it.2
Thank you, City7 Council, for allowing me to speak before8 you. I appreciate this opportunity.9 Am I speaking into the mike?10
I'm not?13 Am I speaking into it now?14 COUNCIL PRESIDENT VERNA:15 That's fine.16
Thank you very17 much. Again, I thank you for letting me18 speak before you. I'm here about the19 three-story buildings. You've already20 seen the pictures and how blight they21 become to our neighborhood. 4 Also, as pointed out by5 Ms. Green, this impacts upon low-income6 people. You build these three-story7 houses, $400,000 for them. Who are they8 building them for? 10 Ms. 14 These buildings are a blight to15 the neighborhood. They have bay windows,16 some of them. They throw the whole17 neighborhood out of sync. 19 I live next to a building20 that's three-story -- that is taller than21 my house. 1 necessary repairs. So now I got to take2 them back to court again. 5 Also, you talking about6 building three-story houses. You're not7 building them for affordable people or8 low-income people. You building them for9 high end. So what you talking about when10 you talking about these vacant lots you11 have and everything? You not going to12 sell them for people who are going to13 build low-income housing. You know that14 as well as I do. You going to sell them15 to high-end folk. So they going to come16 in the neighborhoods, drive your people17 out of here. And Philadelphia is already18 losing a lot of people, okay, in terms of19 population, and all we got to do, have20 our representation go down because we21 losing people. not the high-enders. Okay? Secondly, your low-income4 people, they're the stabilizer of your5 neighborhood. They stabilized it. I6 live in a block, fortunately for me it's7 a historical block. A couple years ago,8 empty lot was bought. The man wanted to9 come in and build a three-story house on10 a two-story block. Fortunately for us,11 the Historical Society sided with us. He12 had to build a two-story house. But that13 was fortunate for us. 18 They got the RCOs, registered community19 organizations. They done rewritten this20 thing three times. Right now the current21 way it is written, RCOs are deleted. 1 us, shut us down, close our mouths. 10 We have talked to Eva about11 this. She has given us her answers and12 eliminated many of the suggestions that13 we have made. Some of them she has14 added. I'm not saying she eliminated all15 of them. Some of them she added. 2 We're asking you, again, to3 please allow this moratorium. It's only4 in Point Breeze. It's not hitting the5 whole City. You're seeing the pictures6 on how ugly these things look. 13
Thank14 you, Madeline.15 We will now hear from Claudia16 Sherrod and Universal Companies, if they17 could both approach the witness table.18 (Witnesses approached witness19 table.)20
Good21 morning. Please identify yourself for22 the record and proceed with your23 testimony.24
Say that again.25 88 3/23/11 - RULES - BILL 100610, ETC.1 COUNCIL PRESIDENT VERNA:2 Identify yourself for the record and3 proceed with your testimony.4
Okay. My name is5 Claudia Smith Sherrod. I'm the Executive6 Director of South Philadelphia HOMES and7 the President of the Point Breeze8 Community Development Coalition.9
Good morning.10 My name is Mook Manislam (ph) and I'm a11 counsel for Universal Companies.12 COUNCIL PRESIDENT VERNA:13 Claudia, would you proceed with your14 testimony.15
I'd like to say16 good morning to everyone, starting with17 you, Council President Anna Verna, and I18 am here to briefly state what many have19 called me to ask to repeal, this Bill No.20 110134. This bill does not represent the21 Point Breeze communities' support. It22 may have helped residents to realize we23 need each other more than ever than what24 we thought, and I thank you for that,25 89 3/23/11 - RULES - BILL 100610, ETC.1 because a lot of people have knocked on2 my doors and called me on the phone, just3 like you have.4 To the contrary to what you5 were trying to do, this bill would hurt6 the development and growth for affordable7 housing and market-rate housing, even the8 houses that we're planning to do would9 cease to be.10 We are a designated NSP211 funding area. We would lose this.12 Please let the area grow. With this13 bill, we would lose all we've tried to14 accomplish. Let the community, block by15 block, deal with the three-story issue as16 they deem necessary. This issue is not a17 legislative issue. It is personal and18 must be dealt with as individuals have19 concerns. And they do.20 There are blocks that have two-21 and three-story buildings, which is22 common in the Breeze. The small23 two-story blocks that are also a common24 site in the Breeze are the problems that25 90 3/23/11 - RULES - BILL 100610, ETC.1 draw disputes. These disputes are best2 handled by the residents that live within3 the blocks that are having an issue. The4 community will deal with the negative5 confrontations that periodically occur.6 The Zoning Commission has7 suggested a setback of third-floor units,8 8 or 9 feet, I'm not sure, from the view9 on two-story building blocks. Perhaps10 that will help. I really don't know. I11 don't have the answer.12 There is nothing more serious13 than having a community that cannot work14 together for the good of their area. The15 impact of this bill would be devastating16 to our community.17 That's all I really have to18 say, because I'm speaking on the bill19 only, not the issue.20 COUNCIL PRESIDENT VERNA:21 Claudia, how would this -- I believe you22 have indicated to me that in a short23 period of time, it is anticipated that24 they will start construction on Federal25 91 3/23/11 - RULES - BILL 100610, ETC.1 Street.2
Good morning,16 Madam President and members of City17 Council. 21 I am testifying today in22 opposition to Bill No. 110134, which was23 introduced at the March 3rd Council24 meeting. 1 moratorium for the issuance of any2 construction permit for buildings,3 additions to, or roof decks which will4 exceed two stories in height. The5 proposed boundaries are Washington Avenue6 to Moore Street and Broad Street to 25th7 Street. 16 Instituting such a moratorium is sure to17 have a chilling effect on the property18 values. At such a critical economic19 juncture where the values of residential20 property have reached record lows, this21 moratorium is sure to compound upon this22 pre-existing problem. 1 investment within the proposed area may2 be drastically affected. 11 Under the Promise Neighborhood Grant,12 Universal was awarded 500,000 by the13 Department of Education to revitalize the14 Point Breeze and Grays Ferry15 neighborhoods. 19 Coupled with an additional $250,00020 through the private sector, we are21 currently planning to address specific22 educational emphasis included on23 workforce development, economic24 development and housing blight. 8 Phase 2 of that grant is --9 will be awarded additional funding for10 implementation of that planning. 13 The implementation of a moratorium on14 building permits within the proposed area15 may severely affect Universal's ability16 to qualify for Phase 2 under the second17 phase of the grant. 1 corridors, improving housing conditions,2 implementing social programs and many3 other positive community enforcement4 programs. 10 Lastly, Universal has concerns11 in regards to the implementation of the12 bill as contrary to a significant portion13 of the housing stock in the proposed14 area. 17 However, properties from Broad Street to18 approximately 18th to 19th Street are19 comprised of a significant number of20 three-story structures. As testified by21 City Planning Commission earlier, this is22 not necessarily aesthetic to the entire23 location in the proposed area. 5 Included with the6 above-referenced concerns is the concern7 that such moratorium does not propose8 proper planning, studies or research9 throughout the duration of the10 moratorium. What is the need for such a11 halt in development? What specific work12 will be done? Without a mandate of such13 proportion, merely prohibiting14 construction of such building is likely15 to have greater negative effects than any16 possible marginal benefit. 1 Administration in its opposition to the2 approval of the bill. The implementation3 of such a moratorium is likely to cause a4 significant community backlash by its5 adoption with minimal community6 involvement. 14
Any15 questions for these witnesses?16 The Chair recognizes Councilman17 Goode.18
Thank you,19 Madam Chair.20 Just a simple question. What21 do you believe the bill was trying to22 address? What problem do you think23 exists or doesn't exist that the bill was24 trying to address?25 98 3/23/11 - RULES - BILL 100610, ETC.1
In my opinion, it2 was taking the voice away from the3 people.4
My question5 is, what do you think the bill was trying6 to resolve?7
Revolve8 three-story buildings being built on9 two-story blocks.10
At our zoning13 meetings when a three-story building goes14 onto a three-story block, if enough of15 the residents come out in opposition, we16 shoot it down before it get an17 opportunity to be built. So it's18 resolved. But I think the19 over-the-counter, you know, license or20 permits really hurt us rather than help21 us. This bill cannot really help our22 community.23
So if the24 resolution -- I understand your25 99 3/23/11 - RULES - BILL 100610, ETC.1 opposition to the bill. You don't have2 to keep stating it.3
I'm really5 just trying to figure out how we can6 resolve as much of that here. You said7 that the solution is to have it handled8 in the zoning committee by the community?9
Do you11 believe that's going to be able to be12 done after the Zoning Code goes into13 effect?14
Well, if the15 Zoning Code impedes the community's say,16 voice, it would be a problem. I don't17 know. I have to see what they have --18
So your19 solution to the problem is not going to20 last much longer than their solution to21 the problem.22
Possibility. I23 really don't know what the Zoning24 Commission have in store for the25 100 3/23/11 - RULES - BILL 100610, ETC.1 community. I know they're trying to do2 some things to update their files, but if3 they try to take our voice, it won't4 work.5
So if a6 temporary moratorium doesn't work for7 them and a temporary voice until the8 Zoning Code goes into effect for you,9 then you still have a problem. We still10 have a problem.11
I hear what12 you're saying, but we have not had a13 problem in the past. We've had some14 people who are really aggravated and15 upset because of the three-story16 buildings. Matter of fact, let me speak17 to my block. I live in the 2100 block of18 Federal Street. There are eight or nine19 three-story houses. I reside in one. On20 the opposite side, it's all two stories.21 Last year, a three-story building came22 up. I asked my neighbor did he have a23 problem with it. He said no. That was24 the end, case closed. It was no issue.25 101 3/23/11 - RULES - BILL 100610, ETC.1 I feel that it should be2 resolved between the blocks. It is an3 issue -- if a person don't have a problem4 in that block, why should anyone outside5 of that block have a problem? They don't6 live in that block.7
I don't8 disagree with that. My only point is9 that if that is the resolution to this10 problem, that resolution is temporary as11 well.12
Well, the13 resolution would stop development in14 Point Breeze and it would stop South15 Philadelphia HOMES from making affordable16 houses available for the residents.17
I get that.18 But if we don't do a moratorium, let's19 say we don't do a moratorium, the problem20 still exists on both sides. One, those21 people who want development not to go22 above two stories probably can't block it23 necessarily in the Zoning Code, and those24 people who might want it in some places,25 102 3/23/11 - RULES - BILL 100610, ETC.1 development to go above two stories,2 might not have it happen either. So the3 issue of it being resolved through4 neighbors working it out or neighbors5 being organized and neighbors having6 their own zoning committees is not7 necessarily a permanent solution. So I'm8 looking for how it's going to be worked9 out permanently.10
I think one11 way -- and Ms. Sherrod has mentioned12 this -- is block by block. The current13 proposed area is too expansive. You're14 talking about from Broad Street to 25th15 Street. You're talking about from16 Washington to Moore. I think there's a17 hundred -- I'm not sure. Mr. Greenberger18 testified to how large those properties19 are, but there's a lot of properties that20 are not two-story in nature. I think one21 idea could be possibly is if you minimize22 the bill to have a block that has 7523 percent two-story maybe, a block that has24 majority two-story. Maybe if you25 103 3/23/11 - RULES - BILL 100610, ETC.1 minimize the area of the bill.2
It could be, but5 our concern is the expansiveness of it.6 And the second concern, more7 importantly, is, what is the call for the8 study. If you want a study today or9 tomorrow to go into effect, I think that10 will be a better solution to say, Hey,11 let's determine what blocks are affected12 by this issue and let's then address it13 that way. But just to initially propose14 a moratorium, it affects the property15 values and it affects a significant issue16 with economic viability for a struggling17 area.18
My last19 question is real simple. Are the two20 sides having conversation right now on21 this issue?22
Two sides24 within the community.25 104 3/23/11 - RULES - BILL 100610, ETC.1
The community as2 a whole was not abreast to this act even3 being put into place. They were -- they4 didn't know anything about it. So when5 we got it, I just got calls all over the6 place, and I will be discussing it when7 we have our next community meeting. But8 we knew nothing about it. So how could9 you have a discussion when you don't know10 anything about something?11
Thank16 you.17 Thank you both very much.18 Our next two witnesses,19 Bernardino Allegretti and Amy Henson.20 Is Mr. Allegretti here?21 (No response.)22
I'm coming25 105 3/23/11 - RULES - BILL 100610, ETC.1 down.2
Thank3 you.4 While they're coming down, if5 Jonathan King and Barbara Capozzi are on6 this level, if they would please approach7 the witness table.8 (Witnesses approached witness9 table.)10
Good11 afternoon. Kindly identify yourself for12 the record.13
Good afternoon.14 Thank you for allowing me to speak. My15 name is Jonathan King and I'm a homeowner16 in the 2100 block of Tasker Street.17 COUNCIL PRESIDENT VERNA:18 Please proceed.19
As an initial20 matter, Councilwoman, you mentioned the21 opposition that has been coming in to22 this bill. 1 mentioned, it was kind of the last2 minute. We put up a website on Saturday3 night where neighbors could sign a4 petition, and in just three days, we have5 104 signatures on our online petition6 opposing this bill. 8 In addition to that, I would9 like to -- one second. 12 My wife and I moved to Point13 Breeze in 2008 after I was laid off from14 my job. What seemed like unfortunate15 circumstances turned out to be the best16 financial decision of our lives. 4 To explain, Councilman5 Greenlee, you were asking specific6 questions about this bill. I live on a7 block with a three-story building on the8 end of the block, a church, which is9 obviously more than three stories with10 the steeple, and a four-story community11 center. If this bill passes, my wife and12 I will not be able to build a three-story13 building even though on our block there14 is a three-story building. And if you go15 through Point Breeze, there are one or16 two at least three-story buildings on17 most blocks, including on the east side18 where it's -- three-story buildings are19 quite common. 1 specifically checked the Zoning Code to2 make sure that we could build a third3 story if we could ever afford to do it,4 and by passing this legislation, you are5 taking that right away from us after the6 fact. Now, I know we're only7 contemplating a one-year ban here, but we8 all know this is an election year and the9 future is anything but certain. So my10 fear is that -- and I think a lot of11 people's fear here -- is that this12 one-year ban could easily be made13 permanent. 16 My wife and I are not real17 estate speculators trying to make a quick18 buck. We want to stay in our homes for19 the rest of our lives. Banning20 three-story homes will take away our21 ability to expand our home to meet our22 family needs. It will also cause our23 home -- and this is where it gets me24 upset. 1 immediately lose value, and like a lot of2 people these days, our home is our only3 asset. It will also place restrictions4 on our neighborhood that do not exist5 anywhere else in the City. 9 Now, I understand that some of10 our neighbors, including -- I remember11 Ms. Beaufort said this. Some of our12 neighbors are worried that they will be13 forced to move. I don't want to see14 anyone forced to leave their home. I15 don't think anybody does. But16 three-story buildings don't force anyone17 to move. 19 And now I don't -- I don't know20 if there's been any property tax21 increases in Point Breeze, but if there22 is, then that is the problem that needs23 to be addressed. 1 they will be allowed, our neighborhood2 will be allowed to grow, and everyone3 will be able to stay and enjoy it. There4 is plenty of room in Point Breeze for5 everyone. 6 We have abandoned lots. We could have7 new residents. We can have long-time8 residents stay. 10 There are very few issues in11 government where one solution benefits12 everyone. 20
We21 appreciate your coming in to testify.22 Thank you so much.23 Barbara.24
My name is25 111 3/23/11 - RULES - BILL 100610, ETC.1 Barbara Capozzi and I have in the last2 two months become more and more familiar3 with the wonderful people in Point4 Breeze, and they asked me to get involved5 with this issue.6 The people that I have been7 speaking with did not know about this8 bill until last week. There had been9 rumors, but they did not know about it10 until after it was introduced. But I11 also want to say that there was some12 confusion yesterday between the Mayor's13 Office and City Council's office, and14 many, many people thought the bill was15 being continued. So I don't see as many16 people here as originally we expected.17 You will be able to -- I will urge them18 to write letters, et cetera.19 One thing that really upset me20 was that the first people that testified21 thought that they were being targeted and22 their neighborhood. Certainly, certainly23 not true. You can go to any neighborhood24 in the City and see three-story homes25 112 3/23/11 - RULES - BILL 100610, ETC.1 popping up. My own neighborhood -- and I2 want to say how it was addressed in my3 neighborhood. People came to us and4 complained, but the people that were5 right near them did not mind that a6 two-story became a three-story. It7 represents a family that wants to stay.8 They've outgrown their two-story home or9 they've had a baby or they've had to take10 in a mother or a father and their11 alternative was either to sell their home12 or to build that third story. So that's13 a family that wants to stay. And if I14 had a choice between even the15 worst-looking third story or a sale sign,16 even as a realtor, I'd rather see that17 third story go up, because that's a18 family that wants to stay, and every19 community needs more people that want to20 stay and less that want to go.21 The best thing about this22 bill -- and I thank you for introducing23 it -- is that it has brought long-term24 residents together with the newer people25 113 3/23/11 - RULES - BILL 100610, ETC.1 that have moved in. Could you ask for2 anything better than someone like3 Jonathan that moved here with his family,4 wants to stay here, welcomes the fact5 that the older people want to stay here,6 wants to work through solutions? I mean,7 that's what this city needs more and more8 and more of. But we also definitely want9 the long-term residents to stay and feel10 comfortable.11 So this bill has actually12 brought some people together, and13 anything that we can do in the next14 couple of months with meetings to bring15 more people together would be fine. The16 problem with the moratorium is, it's17 going to stop all that discussion,18 because then the lines are drawn again19 and everybody comes apart. But right now20 they're together. They're talking21 together, and we hope to bring more and22 more people into the fold to work out23 solutions.24 The Zoning Code will never,25 114 3/23/11 - RULES - BILL 100610, ETC.1 ever, ever take away block-by-block2 discussion. Never was it meant to do.3 Never will it do that. The immediate4 neighbors always have the primary say,5 and if they can work it out, then that's6 what every neighborhood wants, people7 talking.8
You9 know, in the last couple of years, I've10 been very proud of the fact that all of11 the community groups have been working12 together.13
And that's not14 easy.15 COUNCIL PRESIDENT VERNA:16 Believe me, that was a hard, hard17 achievement. And I'm just very disturbed18 that this one issue now has divided the19 community to such a point that it's20 utterly ridiculous. I want to see the21 community working together to resolve22 this issue. If it means that we get City23 Planning and whoever else and the24 Administration to come to the meetings,25 115 3/23/11 - RULES - BILL 100610, ETC.1 that's what we'll do, but I am not going2 to sit here and allow the community to be3 divided on an issue that hopefully can be4 addressed.5 The Chair recognizes Councilman6 Kenney.7
Thank you,8 Madam President.9 When I first got involved in10 government in 1978, '79, the issue was11 Queen Village and the gentrification in12 Queen Village and the displacement of13 African-Americans, Polish-Americans,14 Ukrainian-Americans, I mean all15 hyphenated Americans who lived in that16 neighborhood for a hundred years, and it17 was a terrible situation then, and it18 kind of in some way worked itself out,19 but most of the people who lived in that20 neighborhood then are either passed on or21 were forced out.22 This issue is another classic23 example of the gentrification of24 neighborhoods, which is not a pejorative25 116 3/23/11 - RULES - BILL 100610, ETC.1 term, it's not a negative term, but it2 makes people afraid, because the thing3 that they own the most, the thing that4 there's the most value to them is their5 home. If they see them or they feel that6 they're being encroached upon, if they7 feel that their property values,8 therefore their taxes, are going up, they9 are fearful. I've seen the stress. I've10 seen the concern from the folks in Queen11 Village back in the late '70s and '80s,12 and I hear it in the voices and the13 concerns of the people now.14 This seems to me to be an issue15 that could take a full day of hearings,16 and the one thing that I've heard in17 testimony is that people don't feel like18 the Zoning Code Commission has listened19 to them. Perhaps a three- or four-hour20 hearing just on this will give people the21 opportunity to be heard by the -- and22 we'll bring the Zoning Code Commission in23 and let them sit here and listen to this,24 but I don't think, in my opinion -- and I25 117 3/23/11 - RULES - BILL 100610, ETC.1 don't know it until I've seen the final2 product -- that they've taken that into3 consideration.4 Councilman Goode is right, this5 looks terrible and someone should have6 protected those folks either at City7 Planning or at L&I from this happening.8 But --9 (Applause.)10
But the11 nuclear button of this bill is not going12 to fix that problem. The issue is, I13 think that we need to have a full day of14 hearings, whether it's the Rules15 Committee or Legislative Oversight or16 whatever it is, L&I or a combination17 thereof, Zoning Code Commission, people18 who live in this neighborhood or any19 other neighborhood that's going through20 it and the appropriate officials to21 listen to what people have to say.22 I don't want to see young folks23 like this upset and concerned and afraid24 about their investment. I don't want to25 118 3/23/11 - RULES - BILL 100610, ETC.1 see the folks that have been living there2 for 50, 60, 70 years concerned about3 their investment. The government should4 be here to protect them and try to5 balance both sides of good.6 So I think -- we're having this7 hearing today, but I would recommend to8 the Chair that we look at a resolution to9 authorize hearings which would go on for10 as long as it needs to be until everyone11 has their say and we can craft some12 protection for all these folks, both new13 residents and long-term residents.14
The general issue15 of gentrification should definitely be16 addressed. That way, it's just not Point17 Breeze's problem.18
I know that we21 can learn from what other neighborhoods22 have done, because other neighborhoods23 have not needed a moratorium to work out24 their issues.25 119 3/23/11 - RULES - BILL 100610, ETC.1
And I think9 it warrants an entire day of hearings or10 entire -- a lengthier hearing than we can11 fit in here today. So that would be my12 suggestion.13
Thank15 you.16 Any other comments?17 Councilman DiCicco.18 COUNCILMAN DiCICCO: Thank you,19 Madam Chair, and good morning.20 The issue of Queen Village,21 I'll use that as an example. Many years22 ago, in the City's effort to try to23 create housing that would be24 accommodating newer generations of folks,25 120 3/23/11 - RULES - BILL 100610, ETC.1 in particular neighborhoods like South2 Philadelphia where parking was always3 difficult, it became part of the Code, if4 I'm not mistaken, part of the Code that5 when more than, I think, four or five6 houses were built on a unit block, those7 homes were required to be built with8 garages at the ground floor level, and it9 probably at the time sounded like a great10 thing. It was a good amenity to11 encourage people to move into the City,12 you have a place to park, you don't have13 to drive to South Jersey to get a home14 with a garage.15 But over time, we recognized16 that that has actually caused some17 problems in those neighborhoods, because18 now we have eliminated that many more19 on-street parking spaces, which added to20 the parking congestion and parking21 availability problems that were there for22 many, many years.23 I did a bill a couple years ago24 which kind of reversed that requirement.25 121 3/23/11 - RULES - BILL 100610, ETC.1 The bill, if I have it right, now says if2 80 percent of the block face of the3 properties on a block do not have4 garages, you then need to go to the5 Zoning Board of Adjustment to get a6 variance to build a home with a garage.7 So you just don't get to do it as a8 matter of right.9 So a suggestion in the short10 term, because we know that the Zoning11 Commission won't be ready for six months12 to a year, there is -- as you said, Madam13 President, there's extreme division and14 anxiety in the community on both sides.15 Maybe there's a shorter term solution16 that deals with the issue of the height17 of houses similar to what we did with18 garages. So if you have, as an example,19 80 percent of the block face homes on a20 block are two-story, you just could not21 come in as a matter of right, which is22 probably what happened in this case, and23 build a three-story home. You would then24 need to go to the Zoning Board for a25 122 3/23/11 - RULES - BILL 100610, ETC.1 variance in order to build that, and then2 the community, both sides, pro and con,3 have an opportunity to be heard and a4 decision could be made.5 So it's just a suggestion --6
A possible7 solution.8 COUNCILMAN DiCICCO: -- that9 might require obviously a new piece of10 legislation, which may not just11 necessarily have to pertain to Point12 Breeze, but in this case -- because I13 live in South Philadelphia, I live at14 11th and Federal, several blocks away15 from the 16th and Federal housing16 development that is being proposed. It's17 a hodgepodge of everything down there.18 There's two-story homes, three-story19 homes, but there are some blocks that are20 unit blocks that are traditionally all21 two-story, especially the tertiary22 blocks.23 So what you need to do, I24 think, is find a way which you can25 123 3/23/11 - RULES - BILL 100610, ETC.1 protect those, without putting a2 moratorium in place that says no more3 development anywhere within this 20, 304 square block area. That doesn't serve5 anyone's needs.6 So just a suggestion, Madam7 Chair, that maybe you can get somebody to8 look into that.9
Good13 afternoon. Please identify yourself for14 the record and proceed with your15 testimony.16 I'm so sorry. I didn't look.17 The Chair recognizes Councilman Goode.18
Thank you,19 Madam Chair. Just two quick questions.20 Ms. Capozzi, very simple21 questions. You made two statements I22 don't believe to be true. I wanted to23 know if you want to clarify them.24 One, I believe you said that25 124 3/23/11 - RULES - BILL 100610, ETC.1 all the community is working together.2
No. I said that3 this bill has been the impetus to bring4 more different factions in the5 neighborhood together.6
Well, it's only12 been a week. It's been probably ten days13 since some people found out about it.14
Has that happened17 yet? It's happened online, it's happened18 in side conversations. Has it happened19 in one big meeting yet? No.20
Second25 125 3/23/11 - RULES - BILL 100610, ETC.1 question is, you made a statement that2 the Zoning Code can't be changed to take3 away residents' power or community4 organizations' power. That is not true5 either?6
I don't think the7 Zoning Code ever intends to take away --8
The Zoning9 Code can be changed to take away10 residents' and community organizations'11 power. It can be. It should not be, but12 it can be. You made a statement that --13
Oh, it can be?14 Yes, but I don't believe that it has been15 and I don't believe that it will be.16
Perhaps I wasn't19 clear. It should not be. And I don't20 believe that it has been. I don't think21 that you're ever going to take away22 neighbors from being able to discuss23 things with their neighbors, and that's24 the most important thing.25 126 3/23/11 - RULES - BILL 100610, ETC.1
But you can2 take away their powers in the process,3 which we should not do.4
My name is9 Bernardino Allegretti and I manage10 neighborhood redevelopment projects for11 Innova Services Corporation and its12 subsidiary, Innova Redevelopment.13 Innova employs 15 people and14 has been located at 16th and Tasker in15 Point Breeze for more than 15 years.16 Innova's focus is affordable housing17 development in transitional18 neighborhoods. We have been an active19 partner with the City of Philadelphia and20 the Redevelopment Authority in the21 Neighborhood Stabilization Program, and22 we were previously active in the City's23 Homeownership Rehabilitation Program.24 In the past two years, we have25 127 3/23/11 - RULES - BILL 100610, ETC.1 redeveloped 13 formerly vacant properties2 and sold them to low- and moderate-income3 buyers. Eight of these homes are in or4 adjacent to Point Breeze. We are5 currently in the process of completing6 three additional NSP properties for7 affordable sale in Point Breeze, and with8 our community development partner,9 Diversified Community Services, we have10 proposed to build ten new homes on vacant11 parcels in Point Breeze for sale to low12 and --13 COUNCIL PRESIDENT VERNA:14 Where?15
It's scattered19 sites between Federal and Morris. So20 none of them are contiguous. 22 All of Innova's redevelopment23 work to date has focused on preserving24 existing housing. 4 As with daily witness of new5 development going on in Point Breeze, we6 fully understand City Council's concern7 about the proliferation of new8 construction that is architecturally9 incentive to the surrounding parcels in10 the neighborhood. 20 The motivation for creating21 three-story homes where two-story homes22 previously existed is twofold. 1 back side yard that most older homes2 used, because new building codes require3 setbacks that often preclude this. My4 written testimony shows a typical5 L-shaped second floor and a plan of a6 second floor home where the piano key7 L-shaped setback is not possible. 13 Homes developed using federal14 money, like NSP, are often required to15 make homes visitable for persons in a16 wheelchair. This means that the front17 entrance must have -- must be at grade18 instead of being located three feet or19 more above the sidewalk grade, as a20 traditional row home stoop is. 1 another aesthetic concern. More2 important than that is, there could be no3 basement. 12 Even if the adjacent owners would agree13 to allow this to be done, it would be14 financially impractical to do so. 7 However, in the process of devising the8 plans for Innova's proposed three-story9 homes on two-story blocks in Point10 Breeze, we worked to find a way that11 would not -- not to avoid the use of a12 three-story facade on a two-story block13 and came up with a design that we believe14 eloquently solves the space problems as15 well as the aesthetic ones. Because most16 existing three-story houses in17 Philadelphia are actually two stories18 with a third -- short third story that is19 set back from the rear of the house, we20 propose to construct a third story that21 is set back from the street facade on22 those two-story blocks. This is similar23 to what Mr. 1 With a third story set back2 from the street, the two-story facade can3 be extended up to meet those of its4 neighbors with a suitable cornice to5 carry the style across and to offer a6 partial screen of the third floor that7 has been set back from the street. 2
Thank3 you.4 Any questions from members of5 the Committee?6 The Chair recognizes Councilman7 Goode.8
Thank you,9 Madam Chair.10 Good afternoon. Thank you for11 your thoughtful testimony. You mentioned12 in the beginning of your testimony that13 you currently have a project?14
You16 mentioned in the beginning of your17 testimony that you currently have a18 project?19
We are -- I20 have just finished one. It's a little21 south of Point Breeze. We're currently22 working on two projects within Point23 Breeze.24
By working25 134 3/23/11 - RULES - BILL 100610, ETC.1 on two projects, what does that mean?2
I'd say 807 percent through the rehabilitation of the8 first and 25 percent through the second.9
So you don't14 have any projects that you need permits15 for?16
We have17 responded to an RFP from the18 Redevelopment Authority to develop ten19 new affordable units.20
You do not25 135 3/23/11 - RULES - BILL 100610, ETC.1 have site control yet?2
So in the9 proposal you submitted, how long would it10 take for you to need permits in the11 proposal you submitted?12
I didn't ask15 you that. I asked you, in the proposal16 that you submitted, how long would it17 take for you to need permits?18
We would need19 permits immediately upon financing. We20 would need to start within 15 --21
You didn't22 answer my question again. I'm going to23 ask you one more time. I'm just going to24 pull your proposal.25 136 3/23/11 - RULES - BILL 100610, ETC.1 In your proposal, how long2 would it take for you to need permits?3
Okay. We6 can take the long route.7 When would you be approved for8 the project?9
That would be13 the source of the financing, NSP. So,14 yes.15
The parcels18 are City-owned properties, so depending19 on how quickly we can move through them20 through the City. That would be the21 limiting factor.22
So the City23 is giving you all the money and all the24 land?25 137 3/23/11 - RULES - BILL 100610, ETC.1
Any15 other questions from members of the16 Committee?17 (No response.)18
Thank19 you. Thank you very much.20 It is getting rather late and21 apparently we are not going to come to22 any conclusion as to where we're going23 with this bill today. What I would like24 to do is ask those who are in favor of25 138 3/23/11 - RULES - BILL 100610, ETC.1 this bill to please stand so we could2 recognize you.3 (Some audience members4 standing.)5
Those6 who are opposed.7 (Some audience members8 standing.)9
So10 they're opposed to the bill? You're in11 favor.12 Those in favor, please stand so13 we could count.14 You're in favor of it.15 Well, since they can't hear and16 I can't count, it's not going to matter17 at this point.18 It's getting rather late. We19 have three other bills to be considered20 today, along with our Capital Budget21 public hearings. As I said, we could22 listen to everybody in the room today and23 we are not going to resolve this issue.24 Therefore, I am requesting that the bill25 139 3/23/11 - RULES - BILL 100610, ETC.1 be continued to the call of the Chair.2 In the interim, I would like the3 community groups to get together. We can4 have an all-day hearing so that5 everybody's voice can be heard, at which6 time we can have City Planning and Eva7 Gladstein and whoever else would be8 interested in addressing this issue.9 Again, I want to thank you all10 for coming. It's been very important.11 However, I think it's absolutely totally12 essential that the community groups work13 together to resolve this.14 Thank you all very much.15 Our next bill will be --16
Just give17 everyone an opportunity to -- those who18 are leaving on this particular bill,19 please do so as quietly as possible. As20 soon as they've left, we will begin with21 the other four bills that are on the22 Calendar, and we will try to expedite23 them as quickly as possible.24 And please keep your discussion25 140 3/23/11 - RULES - BILL 100610, ETC.1 to a minimum.2 (Pause.)3
The next4 bill for consideration is Bill 110083,5 which is an Ordinance amending Section6 14-1607 of The Philadelphia Code,7 entitled "Special District Controls for8 the Center City Commercial Area," and9 Section 14-1605 of The Philadelphia Code,10 entitled "Regulated Uses," and Section11 14-305 of The Philadelphia Code, entitled12 "'C-4' Commercial and 'C-5' Commercial13 Districts," by adding to all Sections14 special provisions relating to the area15 bounded by Chestnut Street, 12th Street,16 13th Street and Sansom Street, all under17 certain terms and conditions.18 (Witness approached witness19 table.)20
Good afternoon.23 My name is Martin Gregorski. I'm a24 Zoning Planner in the Development25 141 3/23/11 - RULES - BILL 100610, ETC.1 Planning Division of the Philadelphia2 City Planning Commission. I'm here to3 testify today on Bill No. 110083, which4 was introduced by Councilmember DiCicco5 on February 10th of this year.6 Bill No. 110083 amends three7 sections of the Philadelphia Zoning Code:8 Section 14-1607, "Special District9 Controls for the Center City Commercial10 Area," Section 14-1605, "Regulated Uses,"11 and Section 14-305, the "'C-4' and 'C-5'12 Commercial Districts," limiting changes13 to an area bounded by Chestnut Street,14 12th Street, 13th Street, and Sansom15 Street.16 The purpose of this bill is to17 amend the Zoning Code to allow for the18 reuse of the existing building located at19 1200 Chestnut Street as an upscale20 billiards hall in the existing Beneficial21 Bank building. Additionally, the22 developer proposes a rooftop addition to23 the existing structure.24 Bill No. 110083 amends Section25 142 3/23/11 - RULES - BILL 100610, ETC.1 14-1605 of the Code, entitled "Regulated2 Uses," by changing the definition of a3 pool room and removing it as a regulated4 use within the area bounded by Chestnut5 Street, 12th Street, 13th Street and6 Sansom Street. It further amends Section7 14-1607, entitled "Special District8 Controls for the Center City Commercial9 Area," by permitting restaurants, cafes,10 coffee shops and similar establishments11 along the south side of Chestnut Street12 between 12th Street and 13th Street which13 are accessory to the principal use of a14 pool hall or billiard hall. Lastly, the15 bill removes various height and bulk16 restrictions for properties on the south17 side of Chestnut Street between 12th18 Street and 13th Street, as indicated in19 both Sections 14-1607 and 14-305 of The20 Philadelphia Code.21 The Philadelphia City Planning22 Commission considered Bill No. 110083 at23 their meeting of February 15th of this24 year. After consideration, the25 143 3/23/11 - RULES - BILL 100610, ETC.1 Commission recommended that Bill No.2 110083 be approved. While the3 Philadelphia City Planning Commission4 does not normally recommend piecemeal5 amendments to the Zoning Code, the6 Commission found these amendments to be7 generally consistent with the proposed8 revisions to the Zoning Code being9 prepared by the Zoning Code Commission.10 This concludes my testimony. I11 appreciate the opportunity to appear12 before you today and will be pleased to13 answer any questions you may have.14
Thank you15 very much for your testimony.16 Any questions for this witness?17 (No response.)18
Thank you19 very much for your testimony.20 Please remain close by in case21 we need some additional information.22 Mr. Patterson, Mr. Beauvais,23 Mr. Giegerich, Mr. Schultz, Mr. Soens,24 whoever is going to represent your25 144 3/23/11 - RULES - BILL 100610, ETC.1 testimony.2 (Witnesses approached witness3 table.)4
Please5 identify yourself for the record and6 proceed.7
Thank you. My8 name is Ronald Patterson. I'm with the9 law firm of Klehr, Harrison, Harvey and10 Branzburg, 1835 Market Street. 14 This regards the old Beneficial15 Savings Bank building at the corner of16 12th and Chestnut Street. 18 It was the headquarters for Beneficial19 Savings Bank. They vacated the building20 in 1999. It's been vacant and it's been21 a haven for vagrants and beggars since22 then. 15 The first floor would16 accommodate 17 pool tables. 19 The second floor or full floor20 is the old boardroom/office area. 22 The photos reflect that as well. 7 Under the current Zoning Code,8 the pool hall is a regulated use, as9 mentioned, since the 1970s, the10 perception at that time being that pool11 halls created a deleterious effect,12 creating secondary effects, and it's13 grouped in with the regulated uses such14 as massage parlors, go-go bars, tattoo15 parlors and pawn shops. It's definitely16 antiquated, as the Planning Commission17 would agree, and they aren't the crime18 havens that they used to be. This is not19 an arcade, by the way. So, curiously,20 the Code, which I heard under the21 proposed Code provisions, would allow22 this use. 9 We also propose a restaurant,10 and any type of restaurant on Chestnut11 Street, because of the Center City12 Special Control Overlay, requires a trip13 to the Zoning Board. There's also a14 height provision that we're seeking15 relief from, which says that no building16 on the south side of Chestnut Street can17 be taller than 50 feet. Our current18 building is at 74 feet, and the additions19 that we are proposing, which would20 encompass an elevator structure, stair21 structure and a retractable opening and22 closing glass roof, would take the23 building height to 89 feet. 4 The accoutrements I mentioned5 on the roof were reviewed and approved by6 the Historical Commission, because the7 building is historically designated. The8 roof area, the terrace and the9 retractable glass roof were all designed10 with a barrier wall on 12th Street to11 eliminate and/or attenuate sound from12 traveling beyond the property line, in13 accordance with the Health Code. 16 The ordinance would also --17 this ordinance would adjust -- allow for18 an adjustment for a reasonable19 accommodation of this use. It is not20 spot zoning, as you may hear, per21 caselaw. The Planning Commission has22 vetted this. The Law Department has23 looked at this. 1 commercial use that's surrounded by acres2 and acres of residential uses. This is3 one of the primary commercial corridors4 that's also primarily mixed use of5 residential and commercial. 8 We have neighbors on three9 corners. 18 The southeast corner, which is19 a condominium building, is zoned and20 controlled by the Tony Goldman Group, who21 is a landlord to numerous bars and22 restaurants in that area, and I'll just23 leave it at that. 2 We were proceeding to the3 Zoning Board. We couldn't reach an4 agreement with that White Building. We5 reached a detailed agreement, as I6 mentioned, with the Washington West Civic7 Association that we hope that we will8 sign -- that they will sign. 12 If you look at the agreement,13 which I did hand up, you'll see that it14 addresses all the issues concerning15 parking, loading, limiting occupancy to16 500 total with 150 on the terrace, the17 roof use, the times of operation, the18 decibel levels, the opening and closing,19 et cetera, et cetera. We've also20 submitted an equal opportunity plan that21 the City reviewed and approved. 1 I have David Schultz here, who2 is the architect on the project, Paul3 Giegerich, who is the proposed owner and4 operator, if there are any questions for5 him or them. If not --6
Councilman10 DiCicco, say what you have to say and11 then --12
Sure.13 COUNCILMAN DiCICCO: Thank you.14 Good afternoon. Just for the15 record, Mr. Patterson, either you or -- I16 don't know if the architect, someone else17 will speak to it as it relates to the18 roof deck portion when you talk about the19 wall on the east side of it. For the20 record, could you explain how we got to21 that? The initial plan was for a fully22 glass enclosed roof deck on at least23 three sides, including the east side, and24 then there was an agreement as a result25 152 3/23/11 - RULES - BILL 100610, ETC.1 of the complaints that were coming from2 The White Building being able to --3
That is4 correct.5 COUNCILMAN DiCICCO: Could you6 just for the record explain that?7
Sure I would.8 The west side of the property, let's say,9 has a wall that's higher than the roof.10 Our retractable glass roof would cover11 all sides. And in addition, based on our12 studies and consulting with the sound13 engineer, proposed an eight-foot14 translucent barrier wall along the 12th15 Street perimeter that, in our opinion,16 would block any sound from traveling17 across 12th Street. So that was18 incorporated into the design and approved19 by the Historical Commission.20 COUNCILMAN DiCICCO: But that21 came about as a result of meetings and22 conversations with the folks who live in23 The White Building.24
As well as the25 153 3/23/11 - RULES - BILL 100610, ETC.1 Washington West Civic Association.2 COUNCILMAN DiCICCO: Thank you.3
Thank you4 very much.5 Any more questions for any of6 these witnesses?7 (No response.)8
To offer10 what? What's the testimony going to be11 offered?12
Mr. Muller is a13 representative of the owners on the14 northwest and northeast corners, just to15 testify to the agreement.16
Okay.17 Thank you.18 Please identify yourself for19 the record.20
My name is Greg21 Muller from SSH Real Estate. As22 Mr. Patterson mentioned, we control the23 building at 1201 Chestnut and also own24 Girard Square, which is the northeast25 154 3/23/11 - RULES - BILL 100610, ETC.1 corner. We're in support of it at 12012 Chestnut. We're in the process of3 redeveloping 100 apartments. They'll be4 delivered this summer, and we're spending5 $30 million.6 To be short and sweet, our7 thought is that having a redeveloped8 amenity is better than a vacant bank9 branch, and we're having our own10 agreement to deal with some of the sticky11 issues, but we're in support of it.12
And that is the13 agreement I handed up to the Committee.14
We have it16 for the record. Thank you.17 Mr. Gallery, please identify18 yourself for the record.19
John Gallery.20 I'm the Executive Director of the21 Preservation Alliance for Greater22 Philadelphia. We're here to support this23 bill.24 I submitted a letter of25 155 3/23/11 - RULES - BILL 100610, ETC.1 support, which I assume members of the2 Committee have, and consequently, I'll3 just make a few brief points.4 This is a very important5 building. It is historically significant6 for three reasons. Beneficial Bank was7 an important financial institution in the8 City, a pioneer in developing9 homeownership financing. Architecturally10 it was designed by Horace Trumbauer, one11 of the great architects of Philadelphia,12 the early 20th century, and the exterior13 is a landmark in its location. But I14 think most relevant to this bill is the15 fact that the interior of the building is16 completely intact in terms of its17 original design. In fact, if the18 building had been nominated to the19 Philadelphia Register after City Council20 approved the designation of historic21 interiors, I have no doubt that the22 interior would have been designated as23 well. It's that significant and that24 complete in terms of its integrity.25 156 3/23/11 - RULES - BILL 100610, ETC.1 Once this building became2 vacant, I became very concerned about it.3 I toured the building myself. I spoke to4 a number of developers trying to find5 someone interested, but the response that6 I always got was, there's not enough7 usable space in the building to make a8 financially feasible deal. So we're9 grateful that a developer has come along10 that can use this space, but we also11 understood the need to add something on12 the roof. We reviewed the proposed13 designs very carefully, testified in14 support of the rooftop additions at the15 Historical Commission.16 I'm also aware of the work the17 developer has done with the community,18 and we think that there's been a really19 sincere and extensive effort to resolve20 differences of opinion.21 I am an amateur pool player22 myself. I've played pool in most of the23 major cities in the United States and in24 some in Europe. Philadelphia does not25 157 3/23/11 - RULES - BILL 100610, ETC.1 have a first-class pool facility in the2 vicinity of Center City. Every other3 major city in the country probably does.4 This would be a great asset to5 Philadelphia, and I hope that the6 Committee will report the bill out7 favorably and Council will support it.8 Thank you.9
I'd like to add a12 footnote, directed mainly to Councilman13 DiCicco on the last hearing that you had.14 You may remember several years ago you15 introduced a bill for conservation16 districts. A conservation district would17 be an ideal, permanent and relatively18 quick solution to the Point Breeze19 problem. If residents of the20 neighborhood would be interested in21 pursuing that, the Preservation Alliance22 would be willing to provide technical23 assistance to the community to do that.24 COUNCILMAN DiCICCO: Thank you,25 158 3/23/11 - RULES - BILL 100610, ETC.1 but I will pass that on to Council2 President, since it's her district. But3 thank you for that offer.4
Thank you5 very much for your testimony. It's6 always nice having you on board with the7 project. We appreciate it.8 I don't really need anything9 else.10
Thank you.13 Any other questions for these14 witnesses?15 (No response.)16
Seeing17 none, Mr. Adamondo, please. Is Mr.18 Adamondo here?19
Mr. Adamondo20 can't make it and Mr. Muller was21 testifying on his behalf.22
Fine.23 Is there anyone else to testify24 on this bill?25 159 3/23/11 - RULES - BILL 100610, ETC.1 Please come forward.2 (Witnesses approached witness3 table.)4
My name is John8 Kaskey. 10 I'm also a resident of The White11 Building. 14 I think that this proposal or15 this proposed ordinance unfortunately16 constitutes a blatant case of17 unconstitutional spot zoning. 20 It would be hands-down the biggest bar in21 Center Philadelphia. It would contain a22 roof deck that would allow for music on23 the rooftop 50 feet away from people's24 bedroom windows. 1 here from where you're sitting to the2 back of the room, it's no more than that3 far away. 9 This project requires three10 variances in the Zoning Board of11 Adjustment certificate. That's the12 applicant's burden of proof on each one13 of those items, to prove that it meets14 the standard for the variance and for the15 certificate. The applicant was never16 seated before the Zoning Board of17 Adjustment to obtain any of the needed18 variances or the certificate. 13 I've handed out a map to you,14 and if you look at the two maps, it will15 be really evident really quickly how this16 project violates everything. 3 If you then go ahead and you4 look at the bigger map or the map of the5 City of Philadelphia, this map slots in a6 that little section called Center City7 District. So in all of Philadelphia,8 except for that little dot here now,9 which is going to be in Center City, you10 can't have a billiard hall within 50 feet11 of any residence -- or 500 feet, excuse12 me, of any residence, church, et cetera,13 with the exception of this one little14 spot, this one little island that15 Mr. Patterson previously said doesn't16 exist. This changes the residents'17 rights vis-a-vis the rest of the City of18 Philadelphia. Everyone else in the City19 has the right to appeal, to protest20 against the issuance of a variance,21 except on this one little spot, and22 that's what this ordinance is designed to23 do. 1 of proof on this project from the2 applicant to the residents and force the3 residents to go before a judge and have4 an injunction issued to have this project5 or this ordinance overturned. It is6 completely unfair in terms of its7 treatment of residents. 1 removed and the requirement to obtain a2 Zoning Board of Adjustment certificate3 would have been removed. That's not the4 case, and it's not the case because I5 don't think that any -- I don't believe6 Councilman DiCicco believes that City7 Council would support that. 1 obtained them, that nothing has been done2 there. And I'll note that the residents3 of the building, who have been against4 this project since day one because of the5 scope of the project and because of the6 roof deck, have on numerous occasions7 offered the developer the opportunity to8 enter into an agreement which would allow9 the creation of a billiards hall in the10 interior space, not on the roof, and with11 limited size restrictions so that at 2:0012 in the morning when the place empties13 out, you don't have 500 to 800 drunks on14 the sidewalk waking everybody up. 22
Thank you23 for your testimony.24 Sir, identify yourself, please,25 166 3/23/11 - RULES - BILL 100610, ETC.1 for the record.2
My name is Andrew3 Gowa. I'm a lawyer. 9 I don't want to be repetitive10 of Mr. 13 The Condominium Association has14 tried to negotiate an arrangement and an15 agreement with the developer. We've been16 trying to do that since Mr. DiCicco sent17 my client a draft of that agreement, I18 believe, on February 24th. We carefully19 considered, met with the client, my20 client, and marked up that agreement and21 sent it to Mr. Patterson. It was another22 two weeks before Mr. Patterson returned23 it. 1 yesterday with Mr. Patterson and the2 principal of the developer,3 Mr. 5 What my clients or in6 particular the Association wants is the7 ability to have peaceful enjoyment of8 their residential units. 1 With the greatest respect for2 the City, the City passed a noise3 ordinance some years ago. 7 However, technology has changed. I8 learned in this process over the last9 four or so weeks that there are many10 different measurements, and when you talk11 about noise being a certain dB level,12 there are at least three different dB13 measurements. 18 There is no one scale. There's the L Sub19 1 scale, the L Sub E scale, the L Sub 6020 scale and the LEQ scale. There may be21 others, but I'm just a poor lawyer, not22 an engineer. 1 cetera. What we have asked of the2 developer is that we establish, with a3 mutually agreeable expert before the4 ordinance is passed, what the appropriate5 levels are, what the appropriate6 standards of measurement are, what kind7 of person will be retained as a mutual8 expert. For example, in our draft of9 this proviso agreement, we specified that10 the expert must be a member of INCE,11 which is the preeminent trade or12 professional association. 14 That was rejected. 20 The major thrust of my clients'21 concern, while it is concern with a great22 number of things, as Mr. 1 people are let out, is what's going on on2 the roof, because it is, despite what3 everybody tells you from the developer's4 side, it is open, except probably in the5 extreme winter. And noise travels. We6 have no doubts that the developer would7 do certain things to attenuate the noise,8 but I believe Mr. Patterson testified a9 few minutes ago that the steps they're10 taking will, quote, block any sound going11 across the street. Pretty bold12 representation. 19 There have been other issues20 where the developer's proposed agreement21 has been somewhat helpful. 2 I would point out some other3 things. At one time, I was a developer4 too and I learned some things about5 drawings and renderings. If you look in6 the package that I just got a couple7 minutes ago that Mr. Patterson handed out8 that shows the rendering of the roof -- I9 think it's probably around six pages10 in -- it looks very benign. First of11 all, a large part of the roof is closed,12 it's retracted, it's pulled out. And,13 second of all, you see all these nice14 comfortable chairs with tables in front15 of it. 12 I do support what Mr. 18 And as Mr. 21 It is still there. He hasn't pursued it,22 but it is there. 1 I would point out that it is2 perhaps disconcerting the speed with3 which things have progressed with Bill4 110083. It was introduced on the 10th of5 February. Five days later, without6 notice to the community, the Planning7 Commission heard it. The Historic8 Commission, without notice, heard it. We9 did not get -- "we," the community and10 the condo association and its members --11 did not get the proposed proviso from the12 developer until Councilman DiCicco was13 good enough to supply it on February14 24th. We turned it around as quickly as15 we could. It's a rather long, difficult16 type of agreement, and returned it on the17 11th of March, and I didn't get it back18 marked up from Mr. 20 For some reason, things seem to21 be steamrolling downhill without the kind22 of deliberate and due process that City23 Council prides itself in.
1 restriction and bulk restriction that2 applies to this area was enacted by City3 Council, there were voluminous, careful4 and detailed findings of fact and5 background, and now without any6 explanation, without any research,7 without any due diligence as to why those8 bulk and height restrictions should not9 apply to one little spot on the map, as10 Mr. Kaskey calls it, is a little11 puzzling. 17 That's what the ordinance says now. And18 added to that, except in this one block19 in the City of Philadelphia. you have the same pool tables, you don't2 have a pool room. We have tried acidulously to5 heed the wise advice of Councilman6 DiCicco to try to work with the7 developer. I speak for myself, who was8 on the telephone yesterday with9 Mr. Patterson and the developer. That10 effort does not seem to be receiving any11 kind of reception from the developer,12 other than telling me, I've been at this13 for months and I've had it. It's, I14 think, a bit -- I don't want to use the15 word "arrogant," but I think it's a bit16 heavy-handed. And I am struck by the17 fact that the developer himself,18 Mr. 1 terrace, thanks to the active support of2 the project from the City, including the3 Mayor. 4
This is5 clearly not a court of law or you would6 not be able to put that into the record.7 So it is in the record now, and we8 understand that's your assertion.9 However, as a lawyer, you know that that10 probably would not be accepted, what11 Mr. Giegerich went around and said to12 someone else. We at least agree on that13 point?14
All along we've been19 told by the developer that there'll be no20 promoters, there're not going to be21 people from the outside coming in and22 promoting all sorts of big, splashy23 events that are going to further disturb24 the neighborhood. When it came time to25 177 3/23/11 - RULES - BILL 100610, ETC.1 putting that in writing, he wouldn't do2 it.3 We insisted that there be4 survivability and enforcement by the5 homeowners. Again, with all due6 deference, the City is not rolling in the7 riches right now and has trouble8 enforcing many provisions. So the9 neighbors really want that right of10 survivability so that it passes to the11 next owner, if the current developer12 sells it, and the right to go to court13 and stop it.14 I believe there are perfectly15 adequate safeguards in place if the16 applicant and developer went the route of17 the ZBA, which is spelled out clearly in18 the ordinance. I think it's, as19 Mr. Kaskey said, inappropriate for City20 Council to willy-nilly change zoning21 ordinances for one person on one half of22 one street in the entire City.23 I would be glad to answer any24 questions that Council and the Rules25 178 3/23/11 - RULES - BILL 100610, ETC.1 Committee has.2
Thank you3 for your testimony.4 Councilman DiCicco.5 COUNCILMAN DiCICCO: Thank you.6 Good afternoon, gentlemen. I7 know Mr. Patterson would like to respond,8 I'm sure, to some of the comments --9
I just want10 to say, before you make your statement, I11 don't want -- the purpose of this hearing12 is that you hear people for the record13 and to hear the concerns and to hear both14 sides, but I'm not going to enter into a15 legal debate in the midst of this hearing16 when I have three more bills that I'm17 hearing. So if there's going to be a18 legal debate somewhere down the road, it19 should be in another room in this20 building, not in here.21 So if Mr. Patterson -- we've22 given in the past on other issues the23 ability to kind of improve the record or24 whatever he wants to do with the record,25 179 3/23/11 - RULES - BILL 100610, ETC.1 the things that you've been saying, but2 I'm not -- I know lawyers and I love you3 all, but this could go back and forth4 forever. So if you want to -- I'm sorry.5 Councilman DiCicco.6 COUNCILMAN DiCICCO: I agree7 with you, Councilman. I just think that8 there are some comments that have been9 made that need to be clarified for the10 record, not to create a legal debate11 here. I agree. And sometimes it turns12 out that way even though we try not to13 make that happen.14 But you mentioned, sir, that15 this agreement was introduced or gotten16 to you a couple of weeks ago. You're a17 new attorney representing some of the18 residents in The White Building. Is that19 accurate?20
And the Condominium21 Association.22 COUNCILMAN DiCICCO: And23 there's been reference made that the bill24 was introduced on February 10th and it25 180 3/23/11 - RULES - BILL 100610, ETC.1 kind of seems like this is on a fast2 track. Well, if memory serves me right,3 I think I've been discussing this project4 with Mr. Patterson and the developer and5 the community, who I met in The White6 Building to have a discussion, and7 correct me if I'm wrong, it's almost one8 year ago that the discussion on this9 project began. You may not -- you were10 not here. I understand that. But I11 think it's disingenuous for anyone to12 suggest that this is on a fast track,13 when it's almost 12 months that we've14 been working on this project. And there15 have been a number of give and takes, if16 you will, from both sides.17 The roof deck that was18 referenced -- and I made mention of this19 earlier -- was a fully glass enclosed20 roof deck at one point. There is now an21 opaque wall on the eastern side of it.22 That is the result of the developer23 agreeing to put something up that would24 protect or camouflage the tenants who are25 181 3/23/11 - RULES - BILL 100610, ETC.1 in The White Building from looking2 into -- on the upper floors of The White3 Building, from being able to see across4 and for patrons to look into their5 window, the windows of the tenants in The6 White Building. And there are other7 things as well.8 I just want the record to be9 clear. People may think this is fast10 tracked, but there comes a time when you11 do these types of bills -- and I've been12 doing this for a little bit more than 1513 years -- when you reach an impasse, and14 it seems to me in those cases -- and15 there have been a few of them -- that16 when the bill gets introduced and you17 have a first reading, it seems that that18 really gets people to understand that19 something is going to happen and maybe we20 all need to start to look at this a21 little bit more closely and see if we can22 work out and peel away some of those23 issues. You may not get to all of them.24 That's very rare that you get to all25 182 3/23/11 - RULES - BILL 100610, ETC.1 those issues, but peel away some of those2 issues. Because if I didn't do this3 bill, the discussions that have been4 going on for the last six months over the5 same issues, important issues to some,6 maybe not important issues to others,7 would be the same -- we'd be in the same8 spot today that we were in six months9 ago, and that to me doesn't do anyone any10 good.11 We need to get development in12 the City. That is an empty, vacant13 building. I know the problems with the14 homeless and all the other things that15 are there. We want an operator in there16 that's going to not only create jobs, but17 start to maybe add some viability to the18 1100 and 1200 block of Chestnut Street.19 And there are going to be obviously20 people who have differences of opinions21 there.22 Do you, sir -- you called my23 office a couple of weeks ago on a Friday24 afternoon, I believe it was?25 183 3/23/11 - RULES - BILL 100610, ETC.1
I did call your2 office and I did speak with you.3 COUNCILMAN DiCICCO: And you4 spoke with me, and you talked to me about5 your concern again for how this process6 was moving too quickly and that a lot of7 things were being rubber stamped, to8 quote you. Things were being rubber9 stamped at the Historical Commission, at10 L&I, in my office, and that you were11 going to go nuclear with the media to let12 the media know that I was pretty much13 ignoring the folks who live in The White14 Building.15
That's not an16 accurate assessment, but I'll respond in17 a moment, though.18 COUNCILMAN DiCICCO: It's19 close. It's close. It's close. You20 were going to go nuclear --21
It's not close --22 COUNCILMAN DiCICCO: Here's how23 it works --24
One at a2 time, please.3 COUNCILMAN DiCICCO: I say4 something, then you respond. I'm not5 done.6 You did that. I don't take it7 as a threat, but you did say that.8 Do you own a unit in that9 building?10
No. The woman I11 live with owns the unit.12 COUNCILMAN DiCICCO: Did you13 not tell me that you may be forced to14 sell her unit in a depressed real estate15 market?16
No, that's not17 what I said.18 COUNCILMAN DiCICCO: You didn't19 tell me that?20
That's not --21 COUNCILMAN DiCICCO: Let me ask22 you another question.23
I'm happy to24 answer the questions --25 185 3/23/11 - RULES - BILL 100610, ETC.1 COUNCILMAN DiCICCO: Let me ask2 you one more question and then you can3 answer.4
If you want to ask5 me and you want me to answer, I'm happy6 to do so.7 COUNCILMAN DiCICCO: Okay. You8 answer me. Answer me.9
What I said to10 you, Councilman -- and let me be clear,11 and let me just take one step back for12 your lead-in here. The issue here is,13 you do not -- and I will bet any amount14 of money on this -- do not inject15 yourself into every Zoning Board dispute.16 When a developer comes forward and he17 needs to get a variance and if there are18 neighbors who actually are against the19 project, you don't come forward and20 introduce a special ordinance every time21 that happens. You don't sit there and22 not let the Zoning Board of Adjustment23 hear cases.24 You have chosen to do that here25 186 3/23/11 - RULES - BILL 100610, ETC.1 and you have chosen to do it in one or2 two other occasions. For what reason, I3 don't know. I suspect at some point4 along the way we'll find that out.5 In answer to your question to6 me --7 COUNCILMAN DiCICCO: Could you8 be more specific about that last9 statement, somewhere along the way you10 will find that out?11
I imagine that if12 the bill passes, that we will be in13 litigation over this issue and I will be14 taking depositions of people.15 COUNCILMAN DiCICCO: Sounds16 good to me. I look forward to that.17
Okay. Moving18 forward, in answer to your question, I19 said to you that I objected to this20 project that would put that roof deck 5021 feet away. You said to me, sir, that you22 were going forward with this because I23 would object to any use or any proposed24 variance in that building, and I told you25 187 3/23/11 - RULES - BILL 100610, ETC.1 specifically that was not the case. I2 told you that people would support,3 including myself and the owner of the4 unit, of a proposal that would put a5 billiard hall in the interior of that6 building, but to build a rooftop deck on7 that building, to increase the capacity8 by 250 people, was not acceptable in any9 way, shape or form, and that I would not10 be forced to sell the unit today with11 that threat of that rooftop deck pending12 out there.13 That roof deck, I think -- and14 I believe almost everybody who lives on15 the 5th floor believes -- it will be the16 demise of the value of their units.17 You're sitting there saying that you're18 going to put a bar with 200 people 5019 feet from their bedroom windows, and if20 you think that's going to enhance values,21 well, come on over, because I'd love to22 have you buy the unit.23 COUNCILMAN DiCICCO: There are24 bars within 50 feet of most residential25 188 3/23/11 - RULES - BILL 100610, ETC.1 neighborhoods in the City everywhere you2 go. El Vez, 13th and Sansom, is directly3 across the street from a condominium.4 People live within 50 feet of that.5 We live in the City. We don't6 live --7
Not up in the sky8 and not requiring a variance.9 COUNCILMAN DiCICCO: Well,10 you're going to debate that and we'll11 have that discussion later, but I also12 need to ask you one more question. Did13 you ever have a discussion with the14 developer about his purchasing your15 fiancee's unit?16
The developer has17 offered to buy her unit multiple times.18 I have that in writing. I have numerous19 offers from him.20 COUNCILMAN DiCICCO: Did you21 make that offer to the developer?22
No. The developer23 made it to me. I have it from his lawyer24 and from him directly, and if you'd like25 189 3/23/11 - RULES - BILL 100610, ETC.1 to see copies of it, I'm happy to share2 them with you and anyone else on the3 panel.4 COUNCILMAN DiCICCO: And why5 did you turn down the offer?6
Why did I turn7 down the offer? Very simple. The offer8 was that he would not put enough money9 down. He wanted me to no longer be10 involved in the representation of her.11 He asked me to sign an agreement that I12 would represent an entity of his, since13 you're asking me this and putting this on14 the record, so that I would be stopped as15 a lawyer from being able to represent16 anyone else in the building. And I'm17 happy to share that agreement with you18 since you've asked me that as well and19 you've implied that there's something20 improper about that. As a matter of21 fact, I'll send a copy of it over to you22 today so you can see it with your own23 eyes. And the reason I turned it down24 was because all the developer would do25 190 3/23/11 - RULES - BILL 100610, ETC.1 then is not close under the agreement of2 sale and I would get the deposit back,3 which would not be sufficient to cover4 what the loss would be along the way.5 COUNCILMAN DiCICCO: I didn't6 imply anything. I just asked you a7 question.8
Again, I will12 send --13 COUNCILMAN DiCICCO: And you14 will say on the record --15
I will send you16 all of the copies of all of the offers17 from the developer and his counsel.18 There are multiple offers.19 COUNCILMAN DiCICCO: And you20 didn't say, for the record, you didn't21 call me up and tell me that you're22 being -- you may be forced to sell your23 fiancee's unit at the low market value?24
No, I did not. I25 191 3/23/11 - RULES - BILL 100610, ETC.1 said I would not be forced to sell it2 because of this ordinance.3
Excuse me, sir. May6 I just make a quick point, two quick7 points?8
One is, with all due11 respect, I am not Mr. Kaskey. My client12 is not Mr. Kaskey. I represent the Condo13 Association and certain other owners. I14 think I've made my position clear, and15 apropos of what you've said, Mr. Kenney,16 I don't want to prolong the proceeding17 today, but I would like to reserve my18 right to respond to whatever19 Mr. Patterson or his client says either20 in writing or at a subsequent hearing.21
Thank you.23 COUNCILMAN KENNEY:24 Mr. Patterson, I'm going to ask you to25 192 3/23/11 - RULES - BILL 100610, ETC.1 please --2
Sure. Ronald11 Patterson.12 Since Mr. Gowa mentioned my13 name in conversations and he so14 eloquently misrepresented the facts of15 our conversations and I appreciate how he16 tried to bait me in the conversation17 yesterday, this agreement that two of the18 other property owners have signed has19 been out on the table for a year, as the20 Councilman has said, at least since the21 summertime. We've heard no discussions22 from that side, from Mr. Gowa's clients,23 probably since December, and now on the24 eve of the ordinance hearings, I get an25 193 3/23/11 - RULES - BILL 100610, ETC.1 onerous response that probably changed a2 third of the agreement, if you look at3 everything that was changed, and then my4 response saying I can't agree to this or5 that now turns into I stymied the6 process. That's just not true. That's7 my spin on it.8 Thank you.9
We stand ready or11 sit ready, as the case may be, to12 continue negotiating in good faith with13 Mr. Patterson --14
-- and his client.16 Good faith we recognize on both sides17 means flexibility, and we welcome the18 good graces and assistance of Councilman19 DiCicco or anybody else that could bring20 two parties together.21 I've been doing zoning work for22 36 years and I got to say, 90 percent of23 the time it results in an understanding24 or an agreement, not a fight.25 194 3/23/11 - RULES - BILL 100610, ETC.1 COUNCILMAN DiCICCO: And that's2 all I've been trying to do, and to let it3 sit there without having this hearing, I4 believe we would not move off of square5 one for another year. And the bill may6 come out of this Committee favorably.7 You'll still have time before the final8 vote is passed to hopefully work out some9 of the additional issues that are on the10 table. I suspect -- and I said this11 earlier -- no one is going to get a12 hundred percent on either side. It just13 doesn't work that way.14
Councilman, I am15 very old and, therefore, very aware of16 what you're saying, and I would17 respectfully hope that the Committee not18 report it out favorably or unfavorably,19 but in the meantime, that the parties20 continue working in good faith.21 I did not mean to misstate22 anything about Mr. Patterson, who is a23 fine, honorable and reputable lawyer. I24 want to get to some sort of accommodation25 195 3/23/11 - RULES - BILL 100610, ETC.1 that works. And I think Mr. Patterson2 will agree that when his client yesterday3 criticized something I put in my draft, I4 said, Take it out, you're right, I didn't5 think of that.6
Just one last10 thing for the record. Have the applicant11 proceeded in front of the ZBA. We'd be12 six months along in the process there.13 There's no reason that we couldn't have14 been there and there's no reason for the15 applicant not to be proceeding before the16 ZBA.17
Thank you18 very much.19 Anything else on this bill?20 (No response.)21
Seeing22 none, we're going to -- we have three23 more bills dealing with parking in some24 form or another.25 196 3/23/11 - RULES - BILL 100610, ETC.1 First of all, I want to2 apologize to all these folks from the3 parking industry that have been here all4 this time. I never expected that the5 first bill would go as long as it did,6 and we had no knowledge that that was7 going to happen. So for all the working8 folks in the audience, we apologize for9 the length of time.10 Let me explain to you what I11 think we're going to try to do today.12 There are three bills left. The most13 important bill for me is the issue14 relative to the parking tax and its15 reduction. As we currently stand,16 Philadelphia has a higher parking tax17 than New York City, at two points higher18 than New York City. I have, as a member19 of this Council, committed to working20 with the Parking Association to attempt21 to get that number down. The Parking22 Association has an idea as to where they23 want to bring the number. I would like24 to help them get there. We have to25 197 3/23/11 - RULES - BILL 100610, ETC.1 continue to have the discussion with the2 Administration.3 The issue is -- and I think you4 understand this -- for whatever amount we5 bring the parking tax down, we have to do6 one of two things. We have to raise7 additional revenue, which enforcement and8 better enforcement of the existing laws9 will do. We have to change some of the10 ways in which we deal with parking now,11 which the other two bills will hopefully12 do. And whatever level we bring the13 parking tax down to, we need to try to14 show the Administration that we're15 providing additional revenue to replace16 that revenue. But I am committed -- and17 I think I can speak for the rest of this18 panel and Council. We are committed to19 getting that parking tax back down to a20 fair level.21 What I'd like to do in an22 effort to free up, if possible, some of23 the folks that are probably not lawyers24 and not getting paid by the hour, those25 198 3/23/11 - RULES - BILL 100610, ETC.1 who are here for the parking tax and its2 ongoing efforts to having that reduced, I3 would like you to please stand and be4 recognized so we can see the number of5 people that have come here today.6 (Most audience members7 standing.)8
I think9 that speaks quite volumes.10 Please sit down. But I wanted11 to make sure for the length of time you12 sat here today, if we don't get to13 everyone's testimony or everyone have a14 chance to testify, at least we understand15 the importance of this problem for16 working people in the City. It's not17 just parking lot owners. It's folks who18 actually go to work -- not that you don't19 go to work every day, but it's actually20 for people who go to work every day and21 are trying to make their way in the City.22 So Councilmember Brown.23
Yes.24 Mr. Chairman, I simply want to go on the25 199 3/23/11 - RULES - BILL 100610, ETC.1 record as well and let the record reflect2 that I've had some preliminary offline3 discussions with members of this4 community as well and stand committed as5 well to work with you, Mr. Chairman.6
Thank you.7 Just for the record, I hope to8 get two of the three bills out. The9 parking tax reduction bill is going to10 have continued discussion with the11 Administration and the Mayor and the12 Mayor's people, and we want to try to13 coordinate this in the course of our14 budget hearings, that we have these15 ongoing discussions on this tax16 reduction, revenue enhancement and17 whether or not we need to cut on18 something else to make it all work, and19 that's appropriately done through the20 course of our budget discussions, not21 outside of it. And that's one of the22 promises that we made to the23 Administration, that we at least have the24 discussion within the confines of the25 200 3/23/11 - RULES - BILL 100610, ETC.1 budget deliberations.2 So what I'm going to do now is3 read all three bills. Everyone who comes4 to the table to testify should testify on5 all three bills, and this will6 consolidate the length of time we have to7 spend here more.8 So first is Bill No. 100610,9 which is an Ordinance amending Section10 12-917 of The Philadelphia Code, entitled11 "Valet Parking Zones," by revising the12 Valet Parking Zone permit fees, all under13 certain terms and conditions.14 The second bill is Bill No.15 100611, which is an Ordinance amending16 Section 9-601 of The Philadelphia Code,17 entitled "Garages, Parking Lots, Sales18 Lots and Sales Showrooms," by requiring19 Public Parking Lots and Public Garages to20 accept credit cards and debit cards in21 payment of parking rates, by conditioning22 all licenses and permits issued under23 that Section on the authority of City and24 Philadelphia Parking Authority25 201 3/23/11 - RULES - BILL 100610, ETC.1 enforcement officers to enter public2 garages and parking lots to enforce the3 provisions of the Section, by revising4 the provisions governing the permitting5 and regulation of valet parking6 operators, and by making certain7 technical changes, all under certain8 terms and conditions.9 The third bill, which is the10 bill which will not move today, is Bill11 No. 110181, an ordinance amending Chapter12 19-1200 of The Philadelphia Code,13 entitled "Parking Tax," by providing for14 scheduled reductions in the rate of the15 tax beginning in Fiscal Year 2012, and by16 making certain technical amendments, all17 under certain terms and conditions.18 I would like to ask the three19 representatives of both the20 Administration and the Parking Authority21 to please take the table to start your22 testimony.23 (Witnesses approached witness24 table.)25 202 3/23/11 - RULES - BILL 100610, ETC.1
And for2 those folks who are here and have been3 here for a long time who feel, after4 listening to all parameters which we've5 set to consider this, need to leave to go6 to work or to do whatever they need to do7 and if you're permitted by your employer,8 you can go, but if you want to stay,9 you're certainly welcome. 15 COMMISSIONER RICHARDSON: Good16 afternoon, Councilman Kenney. 18 Good afternoon, Councilman19 Kenney, members of the Committee of20 Rules. 24 Bill No. 1 permit fee of $250 for each 20 feet of2 curb space and additional 250 fee for3 each parking meter that must be removed4 to install the valet parking zone in5 Center City, University City and Delaware6 Avenue Entertainment District. In these7 areas, the bill proposes to raise the8 annual permit renewal fee to $2,500 for9 each 20 feet of curb space used for the10 valet parking zone. In all the areas of11 the City, the bill proposes to increase12 the annual permit renewal fee to $775 for13 each 20 feet of curb space used for the14 valet parking zone. The Revenue15 Department supports Bill No. 19 Bill No. 110181 proposes to20 reduce the parking tax rate from the21 current rate of 20 percent to 15 percent22 over the next five years. In FY12, the23 rate would be reduced to 19 percent. 1 percent. Each year the rate would be2 reduced by one percentage point until the3 rate reaches 15 percent in Fiscal Year4 2016 and thereafter. 57 million in revenue based on these8 projections and reductions. 14 The parking tax was increased15 from 15 percent to its current level of16 20 percent on July 1st of 2008. This17 increase in the parking tax rate was a18 specific policy decision to generate19 revenue intended to be used for new20 initiatives. 1 operator that the operator then remits to2 the City. 10 Even with the economic downturn, parking11 tax revenues remained the same in Fiscal12 Year 2010 as they were in Fiscal Year13 2009. This evidence points to a healthy,14 thriving industry where customers are15 willing to pay the slightly higher16 parking rates to park in one of over 40017 lots and enjoy all the attractions that18 Philadelphia has to offer. 1 owed to the City and School District. In2 2009, the Revenue Department, in concert3 with the hiring of five new auditors,4 expanded the enforcement of the parking5 tax. 7 In 2009 and 2010, the revenue has8 assessed an additional 2 million in all9 taxes due from parking operators. The10 Department of Revenue continues to train11 new auditors to become full-performance12 auditors, which will help with additional13 audits in this area. 17 We understand that the sponsor18 is considering an amendment to begin the19 parking tax rate reductions later in the20 course of the Five Year Plan and perhaps21 limit the amount of full reductions to22 somewhere between 15 percent and the23 current 20 percent. Again, I don't think this is an onerous4 tax. It's a trust fund tax. 12
I'll give13 you a good example. Enforcement of other14 parts of the issues of parking impact the15 collection of the tax. For example, if16 valet operators are not following the17 current rules and regulations that we18 have in place, that they need a19 seven-year agreement with a structured or20 surface parking lot that is paying the21 tax, then if they don't do that, we don't22 collect the tax. So if they're putting23 the cars on the street or they're putting24 the cars on an unpaved lot that somebody25 209 3/23/11 - RULES - BILL 100610, ETC.1 they know owns just using for storage,2 obviously we're not capturing potential3 parking tax revenue, because if the valet4 operator put the particular car in one of5 our licensed lots that are paying taxes,6 we would then be collecting those taxes.7 You agree?8 COMMISSIONER RICHARDSON: I9 agree with you. However, again, you may10 have some valet parking companies that11 are paying the tax even though they're12 not parking the cars in the lots that we13 are talking about.14
Where are15 they parking?16 COMMISSIONER RICHARDSON: They17 could be parking cars on the street, but18 they still could be collecting the tax.19
That's my20 point. We're on the same page. We're on21 the same page. In a perfect world, if we22 collected all the tax that was owed to23 us, everyone would share the tax burden24 equally and, therefore, we may not need a25 210 3/23/11 - RULES - BILL 100610, ETC.1 higher rate. Is that a fair statement?2 You don't have to hang on to the 20.3 COMMISSIONER RICHARDSON: No,4 I'm not trying to hang on the 20. I5 guess my concern at the end of the day6 is, again, as a taxpayer, when I go into7 a parking lot, that rate I don't see --8 it doesn't bother me. So I think that's9 what we need to be looking at, not just10 hurting the companies.11
Now, you're12 certainly not a parking expert or parking13 tax expert necessarily, but why would14 Philadelphia need to have a two percent15 higher tax than New York City?16 COMMISSIONER RICHARDSON:17 That's a policy decision that was made,18 and, again, that was something that was19 signed by Council back in 2008. Again,20 New York's rate is 18.375 percent as21 well.22
Thank you,25 211 3/23/11 - RULES - BILL 100610, ETC.1 Mr. Chairman.2 Commissioner, on the two bills3 you do support, how much revenue do you4 believe that would generate?5 COMMISSIONER RICHARDSON: On6 the bill with regards to the Parking7 Authority piece, I couldn't tell you how8 much it would generate. I think that it9 would help them with enforcement on the10 valets and the parking lots. So it11 wouldn't be a situation that I would say12 we would generate a lot of money from13 that. We can't project.14
Do you have15 any estimate of what revenue could be16 generated from either of the bills?17 COMMISSIONER RICHARDSON: From18 our bill that we are opposing right now,19 it would be a reduction of about $58.520 million.21
I'm asking22 on the bills that could potentially23 generate revenue, do you have any24 estimate of how much revenue they would25 212 3/23/11 - RULES - BILL 100610, ETC.1 generate?2 COMMISSIONER RICHARDSON: No.3 Again, the first bill that I testified in4 support of would go towards the Parking5 Authority. So that money potentially6 would go to the School District, not to7 the General Fund. And, again, the8 Parking Authority, if they're here, they9 can testify about this. A lot of that10 may go to their enforcement policies to11 help them out throughout the course of12 the day. And the gentleman is here.13
So there14 would not necessarily be an offset to the15 City coffers?16 COMMISSIONER RICHARDSON: No.17
Please19 identify yourself for the record and20 clarify the ultimate recipient of the21 increased valet parking fees.22
Sure. My name is23 Richard Dixon. I'm the Senior Director24 of Strategic Planning at the Philadelphia25 213 3/23/11 - RULES - BILL 100610, ETC.1 Parking Authority.2 Under the agreements of3 cooperation between the City and the4 Parking Authority, which have been5 codified in law, there's a formula by6 which revenue is divided between the City7 of Philadelphia and the School District8 of Philadelphia. This would be subject9 to the same percentages. So this year,10 for example, we will give about 33 and a11 half million dollars to the City, 7 and a12 half million dollars to the School13 District. So if under this bill,14 assuming that every current valet15 operator maintained the zones, it would16 generate about an additional hundred17 thousand dollars in revenue. So you18 could say that 7 and a half -- 7,50019 would go to the School District and20 33,000 -- my math is wrong. But the21 overwhelming majority would go to the22 City of Philadelphia.23
But let me24 clarify what I think is the ultimate25 214 3/23/11 - RULES - BILL 100610, ETC.1 benefit of that particular situation.2 The increased enforcement allows the3 Parking Authority to ensure that the4 valet parking operators are actually5 putting the cars in the places where6 they're supposed to legally; therefore,7 we're collecting the tax, as opposed to a8 vacant lot somewhere that they've secured9 that's not paying the tax, that's an10 illegal rogue lot that's not paying the11 tax. So the more valet parking cars we12 force into legitimate lots, the more13 revenue the City collects directly.14
Clearly, that is15 one of the financial incentives of doing16 this. There's also a public policy17 motivation to do this, that if we -- if18 some of these valet operations could19 consolidate operations for multiple20 facilities using the same valet operator,21 we turn some of those other spaces back22 to the public for the general public to23 have access to them.24 We're trying to balance the25 215 3/23/11 - RULES - BILL 100610, ETC.1 needs of those people who want to run2 valet operations, the public who also has3 a demand on the space and who deserve to4 be compensated for those spaces that are5 taken from public use and turned over to6 a private operator for their exclusive7 use.8 COUNCILMAN GOODE:9 Mr. Chairman?10
I was not12 questioning the other merits of the bill13 or whether it has financial merits beyond14 direct merits, but in terms of what we15 know right now, your estimate is that it16 would only bring in about $100,000 in new17 revenue; is that correct?18
Councilman21 DiCicco.22 COUNCILMAN DiCICCO: Thank you.23 I think there's another24 component to this, and I don't know if25 216 3/23/11 - RULES - BILL 100610, ETC.1 anyone spoke about it. I was distracted2 earlier. And Councilman Kenney and I3 many years ago tried to do some work with4 valet parking with the Parking Authority5 and L&I.6 For every patron who comes to7 the City of Philadelphia and either goes8 to a theatre, most likely to a restaurant9 and uses valet parking, when that car is10 not parked in a parking lot as per the11 valet companies' agreement and that car12 is parked on the street, there is a very,13 very good chance that that car will be14 ticketed. The owner of the vehicle15 doesn't know about that ticket until he16 or she gets a notice 10, 12 days after17 the fact. What that causes is a ripple18 effect in the region for people saying,19 I'm not going back to Philadelphia again20 because I paid somebody $15 or $20 to21 valet my car and I wound up getting a $4522 or $55 ticket. It is bad business all23 the way around. And I know many24 restauranteurs who have over the years25 217 3/23/11 - RULES - BILL 100610, ETC.1 complained to me and have showed me2 stacks of tickets, parking violations,3 that they paid for from patrons who wrote4 back to them and said, I valeted in front5 of your restaurant and I got a ticket,6 I'm not coming back again. And in order7 to keep these patrons, the restauranteurs8 have to wind up paying for those tickets,9 for those who even take the time to do10 it.11 So there's a much even greater12 revenue loss to the City, because we lose13 the patron, we lose the sales tax and the14 other taxes that we collect, liquor tax,15 drink-by-the-liquor tax, in those16 restaurants. So the policing and17 enforcement of valet is more -- there's18 another layer to it that I think is just19 as important, if not more important.20
Thank you,23 Mr. Chairman.24 Out of curiosity, how are and25 218 3/23/11 - RULES - BILL 100610, ETC.1 how were the valet agreements negotiated2 and based on what value were they3 originally given as an estimate to the4 City and to the particular -- who worked5 that deal out?6
The original valet7 ordinance I believe was enacted around8 1995 or '96. The fees for those zones9 were made pretty much equal to the10 application for a loading zone. The11 difference between valet zones and12 loading zones, however, are that in a13 loading zone, it is not the exclusive14 use -- it's not for the exclusive use for15 anyone. They're available to the public.16 Just because they happen to be placed in17 front of a particular business, they're18 not the exclusive domain of that19 business. Valet zones, on the other20 hand --21
Excuse me.22 Do I understand you to say that when you23 pull up to a restaurant, they valet park,24 often in Parking Authority spots -- have25 219 3/23/11 - RULES - BILL 100610, ETC.1 you ever seen that? Valet parking parks2 in what would be metered parking. And3 then it is not the exclusive of the4 restaurant or the valet -- the5 restaurants?6
Valet zones are the7 exclusive use of that valet operation.8 Contrary to a loading zone, which was9 where the original price was, loading10 zones are available to anyone. Valet11 zones are only for the exclusive use of12 that valet operation. And that's why I13 think that the Councilman is now saying14 by removing that from public use and15 turning it over to the exclusive use of a16 private operation, that the City and the17 public should be compensated for the lost18 revenue that derives from that.19
That's20 exactly my line of thinking. And then if21 we did not have valet parking, where22 would those individuals park? They would23 be parking in lots probably, right?24
They would be25 220 3/23/11 - RULES - BILL 100610, ETC.1 parking on lots or on the street, spaces2 that are available to the public.3
You're6 welcome, Councilman.7 Mr. Haigler, could you please8 add your testimony to -- and I assume,9 Mr. Dixon, you're here for illumination10 of issues relative to the Parking11 Authority or do you have specific12 testimony?13
I didn't16 think so.17 So, Mr. Haigler, please, and18 could you please testify on all three19 bills.20
Well, then23 testify on one bill. That's even better.24
Good afternoon,25 221 3/23/11 - RULES - BILL 100610, ETC.1 Council President Verna, Chairman Kenney2 and members of the Committee. I am Otis3 Haigler, Jr., Director of Enforcement and4 Emergency Services for the Department of5 Licenses and Inspections. Today I am6 here to provide testimony on Bill 100611,7 which, if enacted, will amend Section8 9-601 of The Philadelphia Code related to9 parking garages, parking lots and valet10 parking operations.11 We support the substantive12 measures of the bill, which we understand13 to be designed to promote efforts to14 ensure that all businesses are paying15 taxes they owe. We have some concerns16 about language of the bill that relates17 to the Parking Authority's enforcement of18 Code provisions regarding the obligations19 of parking garages and parking lots. We20 understand that the sponsor will be21 proposing amendments to the bill to state22 that any such enforcement activity would23 be contingent upon the City entering into24 a memorandum of understanding with the25 222 3/23/11 - RULES - BILL 100610, ETC.1 Authority that would outline the PPA's2 authority, and we agree with any PPA3 enforcement activity -- we agree that any4 enforcement of PPA activity should be5 contingent upon this agreement.6 Thank you for the opportunity7 to provide this testimony. I'll be happy8 to answer any questions at this time.9
Thank you10 very much for your measured testimony. I11 appreciate that, Mr. Haigler.12 Any questions for Mr. Haigler?13 (No response.)14
Or15 Commissioner or Mr. Dixon?16 I'm sorry. Councilwoman Brown.17
What21 monitoring strategies, practices do you22 have in place to ensure that all of those23 who show up saying that they are valet24 are indeed that?25 223 3/23/11 - RULES - BILL 100610, ETC.1
Monitoring valet2 operations is incredibly labor intensive.3 It really requires following almost every4 vehicle that leaves the valet zone to5 determine whether or not it's actually6 put in the garage that it's supposed to7 be taken to. As Councilman DiCicco8 indicated, the one complaint that we get9 with some frequency is that someone10 turned their vehicle over to a valet11 operator and then 15 or 30 days later,12 they got a notice from the Parking13 Authority saying they got a ticket for14 being parked in front of a fire hydrant,15 with late charges on it, after they had16 assumed that it had been parked in a17 legally licensed garage after being18 turned over to a valet operator.19
Just let me20 interrupt. There's a provision in the21 second bill, Bill No. 100611, which would22 require the valet operator to present a23 receipt from the garage where the car is24 parked to the owner, so that at least the25 224 3/23/11 - RULES - BILL 100610, ETC.1 owner would have some proof that his or2 her car was at that location for that3 period of time.4
Which really7 reduces the amount of labor that's8 required from our officers, which is an9 almost impossible task to follow these10 vehicles. So if there's a paper11 documentation of this, it really reduces12 the likelihood that there would be13 violations of that provision.14
And,15 therefore, the Parking Authority would16 take the responsibility to ensure that17 consumers know that, know this, this new18 practice?19
The provisions of20 the bill require posting of all of these21 kinds of things at the locations.22
All right,23 then. Thank you.24 Thank you, Mr. Chairman.25 225 3/23/11 - RULES - BILL 100610, ETC.1
Thank you2 very much.3 Any other questions for these4 witnesses?5 (No response.)6
Seeing7 none, we thank you for your testimony.8 Mr. Dixon, if you could hang9 for -- I think you guys are all right,10 but I think I might need Rick.11 Mr. Zuritsky, Corie Moskow and12 Jane Lipton. Whoever is with your folks,13 please come forward and we'll just14 testify in turn.15 (Witnesses approached witness16 table.)17
Good afternoon,18 Madam Chairperson and members of the19 Committee. My name is Robert Zuritsky20 and I represent the Philadelphia Parking21 Association. 2 I want to begin by3 acknowledging a reality that all of us in4 the parking business understand. People5 don't necessarily like paying for6 parking. 10 But the fact is, parking lots11 and garages are an essential component of12 any city. A percentage of people going13 to work, restaurants, theatres, seeing a14 doctor or conducting business need places15 to park, and they have the right to16 expect professionally operated, clean and17 safe parking facilities with courteous18 staffs. 21 What the citizens of22 Philadelphia may not know is that23 licensed parking operators here pay a 2024 percent tax on parking revenue. 6 The first chart here will show7 anyone who has run a business or a8 household budget can see what we are up9 against. 11 The parking tax, property tax, use and12 occupancy tax, wage tax are just some of13 the 11 taxes and fees we pay. That means14 that we have already paid out 55 percent15 in taxes before we begin to pay our16 employees, maintenance and repair, our17 utility bills and our insurance. 17 The Philadelphia Parking18 Association is made up of legitimate19 businesspeople. We are licensed. We pay20 every dime of tax owed. 1 of 100 rogue parking lots that do not2 play by the rules. They run their3 parking lots and garages without being4 registered with the City. 11 We as an association have been12 working with the City to crack down on13 these entities. I want to use this14 occasion to publicly thank the City's15 Revenue Department for its partnership in16 going after some of these operators. 8 million. Millions19 more can be found by auditing every20 parking facility in the City. 1 recommending that the audits be regularly2 conducted. The City could hire two3 additional auditors to handle only this4 work. 12 An important point to remember13 is that many of these rogue parking14 facilities are open next door to or near15 our licensed facilities. When a driver16 pulls into a lot, he or she does not have17 any way of knowing if it's a legitimate18 business. That means the driver doesn't19 have the assurance his car will be20 insured. In addition, the City loses all21 of the taxes I listed before. 2 As I mentioned, we know that3 many people don't like parking companies,4 but that's not a reason to make us an5 easy target of a 20 percent tax. Think6 about it. Think about paying 20 percent7 tax on your next purchase. 9 When the parking tax was10 increased to 20 percent in 2008, the11 national recession had just hit. That12 combination of recession and this onerous13 tax have devastated our industry. 9 percent real estate16 tax increase that everyone else has, and17 the water runoff tax will be doubling for18 parking lot operators over the next five19 years. Who pays that tax load over the20 long haul? 21 I say that because without22 profits in our industry, we won't have23 the resources to maintain our properties24 or invest in new facilities. 1 that would lead to smaller supply of2 parking lots and garages. And when that3 supply shrinks, the prices will rise even4 further. A perfect example of this is a5 garage at 219 South Broad Street, right6 down the street, right across the street7 from the Bellevue. It's a 60-year-old8 parking garage that has an elevator that9 operates, gets the cars up and down. Two10 months ago that garage stopped using nine11 of its ten floors. The owners determined12 that it was -- that they could not afford13 to rehab that business, to rehab the14 elevators and the concrete in that15 garage. It's a very good location for16 parking and, at its peak, it parked 40017 cars a day. Now it parks 45 cars. The18 monthly rate went from 173 to $289 per19 month. Jobs were lost. 22 We come before you today not to23 ask that you roll the tax back five24 percent in one fell swoop.
1 will take time for the auditors to do2 their work and bring the unlicensed3 operators into compliance. 6 The first reduction of one7 percentage point would take effect on8 July 1st and would bring Philadelphia9 closer to New York's tax. 12 The legislation simultaneously13 calls for five steps that would balance14 the revenue scales, including enforcement15 of the existing laws on the 100 rogue16 operators. And I've been informed that17 we have found another 32 rogue parking18 facilities since the last book was19 published. 22 The parking industry is an23 important component of Philadelphia's24 transportation infrastructure. 1 other components, roads, bridges, mass2 transit, are subsidized by taxpayers. 17 The 17 companies represented by18 our Association are very proud. As you19 could see, we had at least 160 of them20 here, and they hung in for close to four21 hours. I really appreciate that. 23 Most of them live in the City of24 Philadelphia. 1 citizens. 5
Whoever is9 next, please identify yourself for the10 record.11
Madam President12 and honorable Councilmembers, my name is13 Tsegaye Arrefe. I'm the City Manager for14 Ampco System Parking doing business as15 Five Star.16 Five Star/Ampco System Parking17 operates 11 large to mid-sized surface18 lots and garages throughout the City of19 Philadelphia. We have about 10020 employees. We pay decent salaries and21 benefits. Although we do not question22 the City's right to tax us, we do feel23 that our 20 percent parking tax, almost24 two percent higher than the New York City25 236 3/23/11 - RULES - BILL 100610, ETC.1 parking tax, is unfairly high.2 The tax on parking, a service3 that enables visitors to enjoy the City's4 shops, restaurants and cultural5 activities, is far higher than taxes on6 those other industries. Without clean,7 safe places to park, visitors and8 tourists would not be able to spend time9 downtown and experience everything the10 City has to offer.11 In fact, during our current12 recession, parking is down, causing some13 operators to consider layoffs or the14 possibility of closing their lots.15 The parking industry makes a16 valuable contribution to the City's17 economy, and we believe we should be18 taxed fairly, but not excessively.19 We also face unfair competition20 from parking lots around the City that21 are not licensed. While we play by the22 rules paying not only the parking tax but23 property tax, use and occupancy tax and24 the wage tax, these other garage owners25 237 3/23/11 - RULES - BILL 100610, ETC.1 pay no taxes at all.2 We urge the City to do two3 things. We ask you to gradually reduce4 the parking tax to 15 percent as it was5 in 2008. That would enable us to lower6 our fees and fill our spaces, keep our7 employees and bring more people into the8 City to spend the money they save on9 parking.10 And we ask you to crack down on11 the over 100 unlicensed parking lots12 throughout the City and make them play by13 the rules as we do. We're certain that14 the income from these unlicensed15 operators will more than compensate for16 the reduction in the parking tax.17 Thank you very much for your18 time and consideration.19
Thank you20 very much.21 Councilman Goode.22 (Applause.)23
One second.24 Councilman Goode has a meeting at 1:3025 238 3/23/11 - RULES - BILL 100610, ETC.1 and has some questions he'd like to ask2 before he leaves.3
Just a4 couple questions. Thank you for your5 testimony, and even though the witness6 that has not testified can answer this7 question as well.8 You've testified that there are9 17 companies that employ as many as 3,00010 employees. I have several questions11 about that. The first question is, if we12 were to lower the parking tax back to 1513 percent immediately, would that actually14 create jobs?15
I'm not18 asking for anecdotal information. I'm19 asking, do you know how many jobs it20 would create?21
I can answer22 that. I just had a conversation with --23 I can't speak for the entire industry,24 for my company, but I had a conversation25 239 3/23/11 - RULES - BILL 100610, ETC.1 with a gentleman from Towne Park, and he2 mentioned that during that recessionary3 period, he laid off 43 people.4
That's not5 my question. My question is, if we6 lowered the parking tax to 15 percent7 immediately, do you know how many jobs it8 would create?9
I was going to10 get there.11 If you lowered the rate -- if12 you lowered the tax immediately, the13 rates would come down in the City for14 sure, and the data that I got from Towne15 Park just recently showed that they had16 laid off 43 -- they had to lay off 43 of17 their people. They have 350 people in18 the City. They laid off 43 people in19 that period of time. They're parking20 fewer cars at a much higher rate, and21 they would be able to lower their rate,22 probably attract more business and hire23 more people. So, yes, I would say that24 the employment would go up.25 240 3/23/11 - RULES - BILL 100610, ETC.1
Did you not2 hear the Chairman say I'm working with a3 short period of time?4 Do you have a number of how5 many jobs it would create?6
The second8 question is, do we have any guarantee9 that if we lower it to 15 percent or to10 16 percent or to 17 percent or to 1811 percent, competitive with New York, these12 jobs would be guaranteed anyway?13
Do I have more14 than a second to answer? No, there's no15 guarantee.16
I have a17 better question for you, then. You said18 in the second page of your testimony that19 we are licensed, we pay every dime of tax20 we owe. I will leave that up to License21 and Inspection to determine and the22 Revenue Department to determine. But23 then you say, We pay our employees decent24 salaries and benefits. I'm interested --25 241 3/23/11 - RULES - BILL 100610, ETC.1 and you go on to say we play by the2 rules. I'm interested in knowing what3 your minimum wage and minimum benefits4 are that you offer.5
Minimum wage,6 our starting wage, $8.50 to $10 depending7 on the position.8
Minimum11 benefits, they get healthcare immediately12 or after a month?13
After 60 days,16 they get healthcare, they get life17 insurance.18
What type of19 healthcare and life insurance do they20 get?21
And they24 have earned paid sick leave?25 242 3/23/11 - RULES - BILL 100610, ETC.1
In terms of4 the wage rate, are you familiar with the5 City's minimum wage rate, the standard6 that we have set?7
I'm sure we are8 aware of it. I think we are well above9 it, I would assume.10
You are not.11 The City has set a minimum wage rate of12 150 percent of the federal minimum wage,13 would be at least $10.88 per hour.14
I can say that19 our employment rate has been -- the20 openings that we have had for our company21 have been record lows. We have22 unbelievably low turnover. I think we're23 a very good company. We pay benefits, we24 pay fair wages, and we have -- I would25 243 3/23/11 - RULES - BILL 100610, ETC.1 defend -- if you want me to come down and2 sit with you and defend our -- what we're3 doing as a company -- what my company is4 doing, I would love to do that.5
I have not6 criticized your company or your industry.7 All I've said is that the City has a8 minimum wage standard. That minimum wage9 standard is actually 150 percent of the10 federal minimum wage, which at this point11 works out to be $10.88, per hour, at12 least $10.88 per hour. I ask you to13 respond to that standard that we have14 set.15
I would respond16 to that by saying that 55 percent of my17 operating expenses go to the City in some18 form of taxation and it's very19 challenging to pay wages and fair20 benefits, and we have had to have wage21 freezes and benefits rollbacks because22 this taxation has come in and we have23 lost money the last three years. This is24 the tipping point. This is where you25 244 3/23/11 - RULES - BILL 100610, ETC.1 look at your businesses in the City and2 you say do you want them to survive or do3 you want the hundred --4
No. I said that7 the taxation on the businesses are too8 high.9
The wage tax is12 too high? The wage tax is one of 1113 taxes that we pay --14
Wage15 standard. Do you think our minimum wage16 standard is too high?17
The wage18 standard is too high? I am not in a19 position to answer that.20
You are an21 employer, an employer who didn't know how22 much you paid your employees, but I'm23 asking you now, do you know how much you24 pay your employees, and I tell you what25 245 3/23/11 - RULES - BILL 100610, ETC.1 our minimum wage rate is.2
That's our3 starting wage. Most of our people, I4 would believe, are well above what the5 number that you had quoted.6
That's not11 way above $10.88. But that's the end of12 my questions.13 Thank you, Mr. Chairman.14
Thank you15 very much.16 Please identify yourself for17 the record.18
My name is Jane19 Lipton. I'm the Executive Director of20 the Manayunk Development Corporation.21 Chairman Kenney and members of Council,22 thank you for giving me the opportunity23 to speak to you today about the impact of24 the parking tax on my district. I'm here25 246 3/23/11 - RULES - BILL 100610, ETC.1 to put a little bit different of a face2 on some of the impact of parking tax.3 The Manayunk Development4 Corporation operates three parking lots,5 but our primary mission is to support6 economic development in the Manayunk7 Business District. Providing parking for8 visitors who come to enjoy our unique9 shops and restaurants is a service that10 helps us attract customers. Manayunk is11 in a unique position. We are the12 northwest section of the City of13 Philadelphia that borders Montgomery14 County's beautiful Main Line. As part of15 the City, we abide by all rules and16 regulations for City parking lots. Our17 dilemma is that we serve a suburban18 clientele who, while they may love our19 historic semi-urban suburban feel, are20 not willing to pay the City parking rate.21 We must charge for parking to22 keep our district vibrant, our lots open,23 cared for and insured. This is24 especially vital now that Manayunk is25 247 3/23/11 - RULES - BILL 100610, ETC.1 beginning to re-emerge as a shopping and2 dining and tourist destination. We must3 continue to push forward with the4 Manayunk brand, and part of that branding5 is ease, availability and affordability6 of parking.7 Although we operate parking8 lots, we are a non-profit organization.9 The financial proceeds from our lots go10 straight back into business and economic11 development. Parking proceeds help pay12 for things like arts festivals, Halloween13 parades, ice festivals or go towards14 district-wide cleaning and streetscape15 beautification projects that make16 Manayunk more attractive.17 Just lowering the tax by one18 percent, as proposed for the first year,19 would give us $6,500 to work with and20 give us two great options. The first21 would be to put the additional revenue22 back into making our neighborhood a23 Philadelphia destination to rival Center24 City.25 248 3/23/11 - RULES - BILL 100610, ETC.1 Second could be lower our2 parking rates, which would also bring3 more customers and shoppers to our shops4 and restaurants. Either way, we would5 bring more suburban customers into the6 City of Philadelphia to spend their7 dollars, which is good for everyone.8 A parking tax of 20 percent is9 an onerous burden that our closest10 shopping competition in the suburbs does11 not have to bear. We are not asking to12 remove the tax altogether. We want to13 support the City and we are happy to pay14 our fair share. We just want the playing15 field to be level.16 I hope you will consider that a17 lower tax may benefit everyone.18 Thank you.19
Thank you20 very much for your testimony.21 We're waiting for the Council22 President to reenter the room. We're23 going to do a little bit of a tactical24 issue and quickly recess our public25 249 3/23/11 - RULES - BILL 100610, ETC.1 hearing, go into our public meeting, do2 our business we need to do in the public3 meeting and then come back to the public4 hearing to finish up. So as soon as she5 steps into the room or if there's another6 Council -- I apologize. These bills7 should not have been scheduled all at8 once today.9 Who else is to testify?10
Please13 identify yourself and proceed. We're14 back in the public hearing. And if you15 can hit areas of testimony that have not16 been talked about already, that will be17 helpful. So please identify yourself for18 the record.19
I'm pretty sure20 most of what I say hasn't been talked21 about yet.22
1 President of the Parking Network. The2 Parking Network is a parking audit3 company that audits parking facilities4 nationwide for landowners and building5 owners. In the process, about ten years6 ago of being one of the largest parking7 lotted company in the country, the City8 of Miami imposed a parking tax in9 September of 1999. 1 Miami. In the first nine months, we2 increased on an annualized basis the3 amount of parking tax collected by the4 city by over 20 percent. 9 It's a very difficult business. There10 are a lot of parking facilities out11 there. 16 So we took the experience in17 Miami -- in Miami we ended up an18 administrator of the program, which was19 not really what my company is designed to20 do, but we did that over nine years. 1 happening in the City of Los Angeles. In2 the City of Los Angeles, the parking3 tax -- I'm sorry; the commercial parking4 operator groups went out and hired a5 lobbyist to challenge the city to have a6 better audit performance, because they7 were really getting damaged. 11 It took them a few months and12 they found us. We negotiated a contract13 with the city. In that particular14 contract, I'm completely at risk. 17 In the first year, we18 immediately found over $5 million for the19 City of Los Angeles, and believe me, it's20 a big city and very spread out. Also in21 that process of that first year, to show22 you how serious this business is, I had23 employees threatened, assaulted and I had24 my office firebombed. 1 on the 12th floor of the office building2 on Wilshire Boulevard, and it was full of3 people. 7 As we moved forward in the City8 of Los Angeles, we continued to audit,9 and we continue to audit today. The10 findings there continue to be very, very11 large. Over the course of the five years12 that we've audited in the City of Los13 Angeles, the amount of money that we now14 can point to that we identified and15 discovered for the City of Los Angeles is16 $35 million. That's 35 million that17 grows now at a rate better than 5 million18 a year every year for the City of Los19 Angeles, and we do that with three20 people. Because we're totally at risk21 there, the waves go up and down and we22 keep three people -- actually, we're at23 four people now on staff to do that type24 of audit. 1 Angeles, we're able to find numbers that2 are that large. 7 For our part, city auditor8 types tend to really be record audits and9 audits -- accounting-style audits. 13 I think in looking at the City14 and in talking to everybody here, I think15 we see the same thing here that we see in16 many other cities. 1 the tax -- this is a trust fund tax. The2 tax is on the citizens, but it drives the3 parking rates up, and the higher you4 drive the parking rates -- downtown5 thrives on parking, this downtown. A6 perfect example of that -- and I just7 happen to be in national Tennessee a8 couple of weeks ago. Thirty years ago I9 was in national Tennessee and we are10 trying to develop Second Avenue. Second11 Avenue, the developers came in, but they12 really didn't plan parking very well, and13 Second Avenue absolutely died. With all14 the money that was put into it, it15 absolutely died. About five to seven16 years later, parking began to develop17 around Second Avenue. 9 When you reduce the parking rates and you10 attract more people, you increase their11 business and they hire more people. And12 not only do they increase their business13 and hire more people, other downtown14 institutions do as well. We saw the same15 similar things in Los Angeles. As we16 were moving out rogue operators, we got17 rid of bad operators because they weren't18 able -- their business model was built on19 cheating. Once we moved them, good20 operators came in. They were in a good21 business, and business in the area22 improved dramatically. 1 A perfect example of that has2 been Hollywood.
Hollywood today is very,3 very, very busy and doing a great job,4 but because of a lot of work that we did5 five years ago to run out the rogue6 operators that were in Hollywood,7 everything has improved there. 12 Thank you very much. 14
Thank you15 very much for your testimony.16 We're going to do this17 housekeeping real quick. We're going to18 temporarily recess the public hearing and19 enter into a public meeting.20 The Chair will note that Bill21 Nos. 110133, 110134 and 110181 will be22 held to the call of the Chair.23 The Chair recognizes24 Councilmember DiCicco for a motion on25 259 3/23/11 - RULES - BILL 100610, ETC.1 Bill No. 110083.2 COUNCILMAN DiCICCO: Thank you,3 Mr. Chairman. I move that Bill No.4 110083 be reported out of this Committee5 with a favorable recommendation and a6 further recommendation that the rules of7 Council be suspended.8 (Duly seconded.)9
There are14 none opposed. Bill No. 110083 will15 report out of this Committee with a16 favorable recommendation and a request17 made for rules suspension for first18 reading at our next Council session.19 The Chair recognizes20 Councilmember Reynolds Brown for a motion21 to approve the amendment to Bill No.22 100610.23 COUNCILWOMAN BROWN:24 Mr. Chairman, I make a motion that Bill25 260 3/23/11 - RULES - BILL 100610, ETC.1 No. 100610 be approved.2
I need3 approval of the amendment. There's an4 amendment that was circulated.5
I make a6 motion that Bill No. 100610 be amended.7 (Duly seconded.)8
There are13 none opposed. Bill No. 100610 will be14 amended accordingly.15 The Chair recognizes16 Councilmember Reynolds Brown for a motion17 on the amended bill.18 COUNCILWOMAN BROWN:19 Mr. Chairman, I move that Bill 100610, as20 amended, be reported out of the Committee21 with a favorable recommendation and22 further move that the rules of Council be23 suspended so as to permit first reading.24 (Duly seconded.)25 261 3/23/11 - RULES - BILL 100610, ETC.1
There are6 none opposed. Bill No. 100610, as7 amended, will report out of this8 Committee favorably and a request made9 for rules suspension to allow for first10 reading at our next Council session.11 The Chair recognizes12 Councilmember Greenlee for a motion to13 approve the amendment to 100611.14
Thank15 you, Mr. Chairman. I move the approval16 of the amendment to Bill No. 100611.17 (Duly seconded.)18
There are23 none opposed. The amendment is approved.24 The Chair recognizes25 262 3/23/11 - RULES - BILL 100610, ETC.1 Councilmember Greenlee on the amended2 bill.3
Thank4 you, Mr. Chairman. I move that Bill No.5 100611, as amended, be reported out of6 this Committee with a favorable7 recommendation and that the rules of8 Council be suspended to allow for first9 reading at our next session of Council.10 (Duly seconded.)11
There are16 none opposed. Bill No. 100611, as17 amended, will report out of this18 Committee favorably and a request made19 for rules suspension to allow first20 reading at our next Council session.21 That will end the public22 meeting for today and we will now23 reconvene the public hearing.24 Any questions for these25 263 3/23/11 - RULES - BILL 100610, ETC.1 witnesses?2 (No response.)3
If I may just6 comment, we have letters of support from7 the Building Managers Association.8
And we've sent11 that in. Corie Moskow was going to speak12 for Rittenhouse Row Association. It's13 like two or three hundred restaurants14 along West Chestnut and Walnut.15 The only point that I would16 like to counter is Commissioner17 Richardson's comments about our industry18 being hurt. He mentioned that the tax19 revenue went up 25 percent in the first20 year of the tax increase. The tax went21 up 33 percent, 33 and a third percent.22 That was the impact of the tax increase.23 So right there, you only collected 2524 percent more. That means we did less25 264 3/23/11 - RULES - BILL 100610, ETC.1 revenue and you collected more, but he2 would have collected $16 million in the3 first year, and that's what they had4 budgeted for, if our industry had just5 broken even with our revenues. So I just6 wanted to comment on that.7
Thank you8 very much.9 I want you to consider the fact10 that we're going to have at least one11 more hearing, maybe two. Just pull the12 microphone close. We're desperately13 behind on Capital Budget. So please14 identify yourself for the record.15
I'm Harvey Spear,16 EZ Park and the Parking Association.17 It's very important to18 understand that these rogue lots are not19 insured. They're not lit. People that20 come into the City that park in these21 lots don't know if they're licensed or22 not. I want you to know that if somebody23 gets hurt, falls, there's no insurance.24 I want you to know that the valet25 265 3/23/11 - RULES - BILL 100610, ETC.1 operations that operate have a way to get2 around getting insurance. They call3 their employees independent contractors,4 which leaves the risk of not having5 workmen's comp insurance. So if somebody6 gets hurt working at a valet operation,7 it's not just the tax and the money, it's8 the perception to the public and what9 happens in the future. That's why it's10 important that this bill goes through.11
Thank you12 very much. Again, we will be having13 continuing discussions with the14 Administration relative to the rate and15 the amount of the rate and the speed of16 the reduction, and we will be having17 other hearings before the passage of the18 budget.19 So thank you all for your20 attendance and thank you for your21 patience.22 The Capital Budget hearing will23 begin immediately.24 (Committee on Rules concluded25 266 3/23/11 - RULES - BILL 100610, ETC.1 at 1:50 p.m.)2 - - -3 267 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on March 23, 2011, and that7 this is a true and correct transcript of same.8 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23