civus
Minutes

Committee Hearing, May 4, 1999

Philadelphia City Council Committee HearingsMay 4, 1999

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING & MEETING, COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, 5/4/99, 11:25 am - - - BILL 990181 - Amending Title of Phila. Code 6 entitled "Miscellaneous" by adding a new Chapter 21-1400, "Tax Increment Financing Districts". . . 7 RES. 990261 - Appointing Chas. M. Warfield, Jr. to City Ave. Special Services District Board. 8 RES. 990262 - Appointing Andrea Gilbert to City Ave. Special Services District Board. 9 RES. 980933 - Appointing Andrea Brescia to South Street/Headhouse District Board. 10 RES. 980934 - (Withdrawn) RES. 980935 - Appointing Bernice Hamel to South 11 Street/Headhouse District Board. RES. 980936 - Appointing Steve Giannascoli to 12 South Street/Headhouse District Board. RES. 980937 - Appointing Fran Holtzin to South 13 Street/Headhouse District Board. RES. 980938 - Appointing Rick Millan to South 14 Street/Headhouse District Board. RES. 980939 - Appointing Michael Samschick to 15 South Street/Headhouse District Board. RES. 980940 - Appointing Abner Silver to South 16 Street/Headhouse District Board. 17 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILWOMAN AUGUSTA A. CLARK 18 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DAVID COHEN 19 COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER 20 COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN MARIAN B. TASCO 21 COUNCILMAN FRANK DICICCO COUNCILMAN RICHARD T. MARIANO COUNCILMAN FRANK RIZZO CHAS. MCPHERSON, Chief Financial Off. - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 PUBLIC HEARING - COMMITTEE OF THE WHOLE I N D E X BILL NO. 990181 William Hankowsky, President. . . . . . . . . 3 Philadelphia Industrial Development Corporation RES. NO.'s 990261, 990262 David L. Cohen Executive Director . . . . . . 41 City Avenue Special Services District. RES. NO.'s 980933, 980934, 980935, 980936, 980937, 980938, 980939, 980940 Richard (Dick) W. Ostrander. . . . . . . . . 67 Executive Director South Street/Headhouse District 3 5/4/99 Comm. of Whole - Bill 990181 P R O C E E D I N G S

Council President Verna

Good morning. This is the public hearing of the Committee of the Whole. I would ask Mr. McPherson to please read the title of Bill No. 990181.

Mr. Mcpherson

An ordinance amending Title of The Philadelphia Code entitled 10 "Miscellaneous" by adding a new Chapter 21-1400 11 entitled "Tax Increment Financing Districts" and 12 providing for certain reporting requirements. 13

Council President Verna

Good 14 morning. Mr. Hankowsky? 15

Mr. Hankowsky

Yes. 16

Council President Verna

Please 17 identify yourself for the record and proceed with 18 your testimony. 19

Mr. Hankowsky

Thank you, Madam 20 President. Good morning. My name is William 21 Hankowsky, and I'm President of the Philadelphia Industrial Development Corporation, here today to testify on Bill No. 990181 regarding Tax Increment Financing reporting requirements. As you're aware, an economic 4 5/4/99 Comm. of Whole - Bill 990181 opportunity plan or an affirmative action plan is developed in direct and active consultation with City Council staff, and is acknowledged or, in effect, approved by the staff under the authority of the Council President's office. I am in support of the concept and the spirit that Bill 8 No. 990181 represents since it is an extension of the economic opportunity plan. Furthermore, similar language proposed by this bill is in two already-approved TIFed ordinances, the Pavilion Market East and the West Philadelphia Retail TIF. However there are some technical and administrative problems associated with the bill 15 as currently drafted. First and foremost is the language proposed in Section 2. And, to quote: "The provisions of this ordinance 18 shall take effect immediately and shall apply to any Tax Increment Financing District established prior to, on, and after the effective date of this ordinance, and the reporting requirement shall apply to the full term of any Tax Increment Financing District, including any years which such district has been in existence prior to the date this ordinance became law." 5 5/4/99 Comm. of Whole - Bill 990181 For each TIF district, a number of legally binding documents are executed. One document known as "the TIF Agreement" is executed by PIDC through the Philadelphia Authority for Industrial Development ("PAID"), the City, the School District, the private lender of the TIF note (for example, a bank), and the developer. This agreement delineates the terms and conditions of the TIF transactions and the obligations of all the parties involved. New conditions, as benign as job reporting might be, cannot be unilaterally imposed on already-approved transactions. Each TIF agreement and other documents must be amended. The process of amending each agreement would be difficult for several reasons, including, but not limited to, other participants in the agreement needing changes that they might ask for, once you start negotiating a document over, that might not be acceptable to the City or to PIDC. Of particular concern would be the reaction of the TIF note lender, or often banks. Lenders, conservative by nature or training, would view changes to a TIF deal, we believe, is a 6 5/4/99 Comm. of Whole - Bill 990181 problem. The TIF agreements as they stand are fully enforceable under law. PIDC would be pleased to request and encourage response from all developers and businesses within a TIF district for job information, existing districts. Any TIF developer that has tenants with letters of intent or leases executed could request the job information; but again, the response would be voluntary. Going forward with new TIF districts, we would request the information as proposed in this bill. So we're -- I just want to make the point that we're totally comfortable doing this. Going forward --

Council President Verna

In the future --

Mr. Hankowsky

-- I just want to be careful that if we can't get somebody voluntarily to do it who already has a transaction, we can't unwind their TIF deal; that's my only concern here. As I previously mentioned, a TIF developer provides an economic opportunity plan. We'd be pleased to provide this data as 7 5/4/99 Comm. of Whole - Bill 990181 development is completed and enterprise occurs on the utilization of minority, female, and disadvantaged businesses within the district. Again, legally, this may not be enforceable for existing TIFs, but we would request such and use our influence with the developers to obtain such. We will also require this data for all future TIFs brought before City Council. In closing, we support approval of Bill 11 No. 990181, provided Council would make the revisions that we would suggest. Thank you very much.

Council President Verna

Thank you. The Chair recognizes Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. Good morning, Mr. Hankowsky. Mr. Hankowsky, I've read through your testimony on a couple of occasions since receiving it, I think, yesterday or possibly on Friday. What I don't understand, I guess, about the testimony is, first and foremost, the bill does not request anything of PIDC. The bill 24 specifically asks the mayor to make certain reports to City Council. That's first. 8 5/4/99 Comm. of Whole - Bill 990181 Second, I would get the impression from your testimony that you're not already asking for the information that's a part of the reporting requirement in Bill 990181. Now, it cannot be your testimony that we don't already have access to, if not require, this limited level of data about this kind of financing, some of which are fairly extensive. You're not saying that we're not asking for this information already, are you?

Mr. Hankowsky

No. What I'm saying is -- and it will vary, Councilman. Well, maybe I have two comments. One is, I appreciate that the ordinance requires the mayor to make the request, and I guess I'm being proactive in the sense that I --

Councilman Nutter

You're trying to anticipate the call from the mayor.

Mr. Hankowsky

Right.

Councilman Nutter

Right.

Mr. Hankowsky

'Cause I assume we'll end up having to compile the information, so. . .

Councilman Nutter

Well, we can establish for the record that we are not asking PIDC in this bill to do anything. 9 5/4/99 Comm. of Whole - Bill 990181

Mr. Hankowsky

Right.

Councilman Nutter

Correct?

Mr. Hankowsky

That's true.

Councilman Nutter

Okay.

Mr. Hankowsky

But I think the only way -- to be quite candid, the only way to really be in the spirit of the bill is to require that the various kinds of information delineated in the bill be included in the reporting requirements that would be in the various TIF agreements that we would enter into.

Councilman Nutter

I understand.

Mr. Hankowsky

That we would all be comfortable, no matter who's head of PIDC or who's the mayor, that the information would be necessarily provided.

Councilman Nutter

So on that point, on the other 12 TIFs, 'cause 2 of the 14 TIFs that we've done have this reporting requirement in them. Are you saying that on the other 12 TIFs, there's no requirement for anyone to keep information on the number of construction and permanent jobs and demographic data on those jobs? 10 5/4/99 Comm. of Whole - Bill 990181

Mr. Hankowsky

No, I'm not saying that. I want to be precise as to what I'm saying. What I'm saying is that we have a pipeline of TIFs that have been approved.

Councilman Nutter

Right.

Mr. Hankowsky

A number of those TIFs included, for example, economic opportunity plans. Even though in the Council action on the TIF, there wasn't this reporting requirement.

Councilman Nutter

Right.

Mr. Hankowsky

As in the last two. So the Loew's Hotel -- simply pick one.

Councilman Nutter

Right.

Mr. Hankowsky

There's a plan. The plan's being executed, reports are being provided. They're being monitored by OHCD, the Office of Housing and Community Development.

Councilman Nutter

Right, mm-hmm.

Mr. Hankowsky

And the data that's provided -- again, we'd be pleased to provide to whoever would be interested in it.

Councilman Nutter

Right.

Mr. Hankowsky

But there was not necessarily an equal-opportunity plan in every one 11 5/4/99 Comm. of Whole - Bill 990181 of the TIFs that were previously approved. The one I can think of, I think -- I do not believe there was a plan for the PNC Operation Center. That's just the facts. I just don't think there was one.

Councilman Nutter

I understand.

Mr. Hankowsky

So since there wasn't a plan in place, that information wasn't tracked. It was built -- it's built. I mean, it's there.

Councilman Nutter

Right.

Mr. Hankowsky

We can go back and we can ask the developer to tell us, you know, who they used and what happened. And we would be pleased to try to do that and get whatever information there is, but we may not be able to get every type of -- they may not have, you know, demographic -- I'm making up -- you know, in their files or whatever, and they'd have to go find subs to find out who was the actual worker.

Councilman Nutter

Right.

Mr. Hankowsky

And I just don't know what all would be entailed there.

Councilman Nutter

Right.

Mr. Hankowsky

And one of things I'm 12 5/4/99 Comm. of Whole - Bill 990181 particularly concerned about is --

Councilman Nutter

But you're not saying that there's anything wrong with us asking and --

Mr. Hankowsky

Oh, no. 7

Councilman Nutter

And trying to find out the answers to those questions, right?

Mr. Hankowsky

And I, in my testimony, say we would be prepared to go and get it.

Councilman Nutter

Okay.

Mr. Hankowsky

I just don't want to be in a position where -- I just want to be clear. I've tried to -- even if we don't agree in this chamber, I try to be forthright in this chamber, that I will try to get what I can get, but I just want to be clear that I may not be able to get every type of information listed here.

Councilman Nutter

I understand.

Mr. Hankowsky

And I just, on the record, want be clear that if such -- when the first anniversary of a report is due, that people understand that for the, quote, old ones, we may not have it all, and just that people understand that. 13 5/4/99 Comm. of Whole - Bill 990181 The other example as an example is with PNC, and PNC is a great corporate citizen, and they'll probably do this for me if I just ask them.

Councilman Nutter

Right.

Mr. Hankowsky

But, as an example, Liberty Property Trust was the developer. There's a lease between them and PNC. The TIF note actually goes to Liberty Property Trust. If I -- now go to -- I have no contractual right at the moment to go to PNC and ask them to provide me with the demographic data on the 1500 people that work there.

Councilman Nutter

I understand.

Mr. Hankowsky

I can ask them and they'll probably give it to me.

Councilman Nutter

I understand. You can ask them on behalf of the mayor who's trying to be in compliance with the ordinance.

Mr. Hankowsky

Right.

Councilman Nutter

They can say, "We have it," or they can say, "We don't," or they can say, "We have some of it." And the mayor will report whatever the mayor has been able to gather, 14 5/4/99 Comm. of Whole - Bill 990181 and then it will be left to us to react to it.

Mr. Hankowsky

Right.

Councilman Nutter

You can only report what people give you.

Mr. Hankowsky

Right. And I just want to --

Councilman Nutter

If they choose not to be cooperative or share the information, then that's life in the big city.

Mr. Hankowsky

Right.

Councilman Nutter

That's the way it goes.

Mr. Hankowsky

I understand. But I just want to be clear that, A, I'll use the term "a TIF recipient developer corporation," or whatever, who is either unable to provide this data because they just didn't collect it whenever it happened, or are conceivably even unwilling to provide it for some reason. I mean, some companies don't want to send out salary information. I mean --

Councilman Nutter

I don't believe we asked for salary information.

Mr. Hankowsky

No, and such an entity 15 5/4/99 Comm. of Whole - Bill 990181 is not in default of their in-place TIF agreement and --

Councilman Nutter

Mr. Hankowsky.

Mr. Hankowsky

-- they can tell a lender that they're not in default. I just want to --

Councilman Nutter

Mr. Hankowsky.

Mr. Hankowsky

That there's no 10 implication of that.

Councilman Nutter

I know that you're a well-read man. There is not one mention of the word "default," "take-away," even for the moment, "claw-back" or anything else.

Mr. Hankowsky

Right.

Councilman Nutter

It is a mere reporting requirement. People can report, they cannot report.

Mr. Hankowsky

Right.

Councilman Nutter

And they can only give us what they're willing to share with you. And if a TIF recipient who got public dollars is unwilling to make a report to the governmental body that approved their TIF, then that's their business. 16 5/4/99 Comm. of Whole - Bill 990181

Mr. Hankowsky

Right.

Councilman Nutter

And we'll then do whatever it is that we choose to do about it or whatever we're legally able to do about it. Or we may not do anything about it.

Mr. Hankowsky

Right.

Councilman Nutter

All I'm asking is that there be a reporting requirement for certain information, that the mayor report it on a date certain, and we'll take it from there.

Mr. Hankowsky

Right. And I just want to make -- I mean, again, I think it's all in the spirit of having this discussion. The other point I want to make is that, which is in my testimony, to the degree again, on the old ones, I don't want to go back and say I want to negotiate the right to require them to do it because, to be very blunt, I don't want to reopen the agreements. We are often -- I'll be honest with you, we are often -- parties often come back and say, Well, could we redo the agreement. We have a little thing we'd like to change. Nope, the deal's the deal. 17 5/4/99 Comm. of Whole - Bill 990181

Councilman Nutter

I understand.

Mr. Hankowsky

So I don't want to give them an entree to ask for something by me --

Councilman Nutter

I understand. Again --

Mr. Hankowsky

We will voluntarily solicit --

Councilman Nutter

There is nothing in the bill that makes any reference to reopening agreements.

Mr. Hankowsky

Right, I just want to be clear.

Councilman Nutter

It's not a repealer bill on somebody's TIF, it's not trying to get something that we don't have a right to, also. It's a mere reporting requirement.

Mr. Hankowsky

Right.

Councilman Nutter

They can choose to report, they may not. But, you know, you'll know if somebody reported if you get a 2-page report from one recipient and you get a 15-page report from another; we can figure that out.

Mr. Hankowsky

Right.

Councilman Nutter

But I appreciate 18 5/4/99 Comm. of Whole - Bill 990181 you putting items on the record and, I mean, I don't see where we are in conflict as it relates to this particular bill.

Mr. Hankowsky

Fine.

Councilman Nutter

Okay, thank you. Thank you, Madam Chair.

Council President Verna

Thank you. Mr. Hankowsky, does PIDC provide information to the State Department of Commerce in order to assist them in the preparation of their report to the governor? Because, according to the Act, the Department of Commerce and Cooperation, where there are other state agencies and local governments, shall make a comprehensive report to the Governor and General Assembly every two years, commencing January 1, 1992 so as to the social, economic, and financial effects and impact of the Tax Increment Financing District projects.

Mr. Hankowsky

Right.

Council President Verna

Do we, in fact, report to the Department of Commerce?

Mr. Hankowsky

I will confirm this. I don't believe that there is a formal reporting 19 5/4/99 Comm. of Whole - Bill 990181 mechanism that they have established, and I say that because I know in some other programs, they have a -- there's very formal mechanism. The Small Business First Program, we actually formally do a quarterly report that we have to submit, and we get (unintelligible) notices if we don't send it, so I'm very conscious of when they formally ask for it. I think basically what the State Commerce Department is keeping track of are the -- I'll use the term "the TIF directs" that are established in the Commonwealth, simply a listing of them and maybe the amount of the TIF note. But there is no large or exhaustive reporting mechanism that's established at this point.

Council President Verna

The Chair recognizes Councilman Cohen.

Councilman Cohen

Thank you, Madam President. In the discussion you were having with Councilman Nutter, I find the discussion more confusing than clarifying. It seems to me you are presenting arguments, though you haven't said what I'm about to say, that you're seeking to provide 20 5/4/99 Comm. of Whole - Bill 990181 justification for the recipients of TIF benefits not to answer questions. We're all adults here. We know businesses have to make their own decisions ultimately. But it would seem to me the spirit of the bill we're talking about would incorporate the strongest possible efforts by the mayor and those under the mayor to secure that information. We're expressing a real interest in having that information under those terms. We would expect people to get it. No one has said, as Councilman Nutter appropriately pointed out, that you have to get it because you're not in a position where you have to get it, but you are in a position where you can try very hard to get it. Most TIF recipients may be wanting to come back at a later time for another arrangement with the City, which might be in the interest of both parties, and a decision would be made later. But, obviously, how they respond to this might impact on how Council would look at a second request. Also, if they don't want to give this information, it creates a suspicion about what may have occurred, you know, with respect to the 21 5/4/99 Comm. of Whole - Bill 990181 problems that are raised. So I would just like to feel that if -- that the -- your PIDC and the mayor, whoever the mayor would happen to be at any given time, would be working to secure the information that the legislative body, correctly called "the governing body" by Councilman Nutter, gets the information it wants. And nobody's going to hold your feet to the fire. We know you can't compel it. But I am concerned that you put forth excellent justifications as to why you can't get it, and that that may indicate that there's going to be something less than a really best effort to get it. I think a very good case could be made out for each company to get it. Nobody wants them to go through huge expenditures. Most of them will have available information. It may take a little time to do it. And it seems in the spirit of cooperation, they ought to be willing to do it. And they're not going to get punished if they don't do it with respect to the existing TIF. And I'm just concerned about why you 22 5/4/99 Comm. of Whole - Bill 990181 are so intent in pointing out that you can't get it. And that's the reason I make these comments. I think there should be real best efforts made in every way to get that information. And then, as Councilman Nutter said, it ought to be reported back. So this is not really a question, it's a comment. But you're free to comment on that.

Mr. Hankowsky

Yeah. My comment will be extremely brief, Councilman. We will use our best efforts. I'm not -- you know, as I -- perhaps I was unclear, and I didn't mean to be unclear. You know, we accept the spirit of the proposal and have no problem prospectively actually putting in the documents that people are required to do reporting. And in going, quote/unquote, backwards in trying to get the information, I simply want to be clear that I'm going to do the best I can, make my best effort. But I just want to make clear that at the moment, I don't have a provision in some of the agreements that require them to do it. So what I will get I will bring to this body, and you will have it. And then, as 23 5/4/99 Comm. of Whole - Bill 990181 Councilman Nutter said, you all can use that information as appropriate. That's all. I just want to be clear about what I have and don't have the right to do.

Councilman Cohen

All right, thank you. Thank you, Madam President.

Council President Verna

You're welcome. The Chair recognizes Councilman Kenney.

Councilman Kenney

Thank you, Madam President. Considering the fact that the bill is going to require the mayor to do certain things, I, as a member of the body, would be interested in knowing what the mayor thinks about this. Obviously, it was clear from your testimony and your discussion with Councilmember Nutter that PIDC is not being required to do anything specifically; it's the mayor that's being required to do it, and we haven't heard either verbally or in writing anything from the mayor. I mean, it would benefit me in my deliberations and final vote as to what the mayor 24 5/4/99 Comm. of Whole - Bill 990181 thinks about this since it's he that we're requiring to do something.

Mr. Hankowsky

I believe -- and I will confirm this, Councilman -- but I believe my testimony this morning is both on behalf of PIDC and the Administration. But I will confirm that to make sure we've reviewed our testimony with the Administration.

Councilman Kenney

I appreciate you being here and explaining your position both retrospectively and prospectively, but I'm more concerned about what the mayor and the mayor's people think about this since they're going to be the ones to be required, for the most part, to retrieve the information on the 12 TIFs that didn't provide the information through the documents. I think prospectively, we'd have to just make a judgment based on who the next mayor is, whoever he or she may be, you know, whether they would be in favor of it or not. But this particular mayor, based on the 12 TIFs he needs to retrieve the information for, I'd be interested in knowing from him or his chief of staff what their 25 5/4/99 Comm. of Whole - Bill 990181 positions are on the bill.

Mr. Hankowsky

Fine.

Council President Verna

The Chair recognizes Councilwoman Tasco.

Councilwoman Tasco

Thank you, Madam President. I just want to say that I agree with Councilman Cohen, that when you bring the Tax Increment Financing District proposals to us in legislation, we are always told what it does for the City, that there are so many jobs generated, what the benefit will be. And it seems to me that it is not an onerous request to ask for the documentation to substantiate the request. If we take for face value your comments, 'cause we're not given -- we say, Well, it's going to create so many jobs. Well, does it really create jobs? So backtracking on the spirit of the testimony and the questioning that takes place during the course of the discussion of the ordinance, it seems that we ought to be able to retrieve some information to document what you say. So it's not a demand; it's a request for information that we would require to substantiate 5/4/99 Comm. of Whole - Bill 990181 what was told to us when they came to us. The other thing in terms of the mayor, I think it is the mayor, whoever the mayor is, it is that requirement that we were placing on the mayor since he is the titular head of the Administration and you report to him. So, therefore, the mayor, though PIDC, would see that this is brought forth. Whether this mayor likes it or not, it puts a requirement on the mayor of the City of Philadelphia to do it. Thank you very much.

Mr. Hankowsky

Sure.

Council President Verna

The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Thank you, Madam President. Mr. Hankowsky, going back to the 12 TIFs that have not been requested to provide data, could you -- could you describe the bureaucracy or the amount of effort that it would require? When we constantly hear businesses complaining about data and reports and information and they're trying to make a living, what burden do you anticipate we'd be putting on these organizations 27 5/4/99 Comm. of Whole - Bill 990181 to go back and gather all this data that would be needed?

Mr. Hankowsky

Councilman Rizzo, that will -- to be candid, that will vary by each TIF, so I'm going to do this partially off the top of my head. But the PSFS, City Hall Annex, Reading Terminal, the ones that are in construction or nearing completion, had economic opportunity plans. So probably most, if not all, of the data picked up by this ordinance is actually available. The Bartram, which was the PNC, did not. So that's an example of where I just don't know whether they can go back, given it was built, and retrieve some of this data from contractors and subcontractors. Franklin Plaza is under construction, so presumably, they could give us a level of information. But, as you can see, the glass is going in, it's getting close to being done. Um, I'm just looking here. Most of the others have not started construction. So if we tell them now that we want this kind of data, they can probably get close to compiling it. Understand also, this ordinance -- or 28 5/4/99 Comm. of Whole - Bill 990181 proposed ordinance -- requires that, for example, employment information be done over the life of the district. And I'm not saying that's a good thing or bad thing; I'm just saying that's what it requires. Most of the economic development programs generally have either a 3- or a 5-year reporting period, so this would be a 20-year period. But, again, presumably, a company can, you know, make a run and tell us how many people are working in the hotel years from now and do 13 that. So it's an amount of work. 14 I -- other than the two -- the one 15 that's physically complete and the one that's deep in construction, I think most of this is probably not a big task bureaucratically for their clients. I don't think it's a big task.

Councilman Rizzo

What would you -- how would you suggest when we would ask for that information if there would be something that would surface that wouldn't be favorable or a problem that is identified how we deal with that?

Mr. Hankowsky

Well, I'm not sure -- I guess I would start with, I'm not sure what the 29 5/4/99 Comm. of Whole - Bill 990181 definition of a problem necessarily would be. I mean, there's two aspects. One is, if they don't report, is that, quote/unquote, a problem? And I think in the spirit of the questions and answers I had with Councilman Nutter, I mean, I think the spirit of that is we will tell you that. You know, we will tell you that "Acme Widget," we asked them with our best efforts, as Councilman Cohen requested, and they told us this much or that much, and you'll know. And, as was pointed out, there is no 13 default mechanism here. I think you'll know that the next time "Acme Widget" wants a zoning variance or something like that, I guess you'll take that into consideration.

Councilman Rizzo

That was my point. No hard feelings, hopefully.

Mr. Hankowsky

I'm sorry?

Councilman Rizzo

No hard feelings, hopefully --

Mr. Hankowsky

Yeah.

Councilman Rizzo

-- to these folks if they don't comply. If they're not required to comply and they don't, then there's no hard 30 5/4/99 Comm. of Whole - Bill 990181 feelings if they don't. There shouldn't be.

Mr. Hankowsky

I would -- yeah. I mean, I -- again, I -- I mean, our task will be the assemblage of the data and the providing of it. I won't have any hard feelings.

Councilman Rizzo

Right.

Mr. Hankowsky

And I would hope that others would share that. I mean, I. . .

Councilman Rizzo

Thank you, Madam President.

Council President Verna

The Chair recognizes Councilwoman Miller.

Councilwoman Miller

Thank you, Madam President.

Mr. Hankowsky

Okay. Could I make one -- Madam President, could I just make one comment. We did confirm that the Administration does support our testimony. That's the Administration issue. Okay.

Councilwoman Miller

Mr. Hankowsky, you just answered a part of my question.

Mr. Hankowsky

I'm sorry, I'm sorry, I'm sorry.

Councilwoman Miller

Okay. My initial 31 5/4/99 Comm. of Whole - Bill 990181 question was going to be, how many TIFs were actually functioning? and you just answered that somewhat. But I guess I'm more concerned about the fact that it seems to me you've presented information to us that seems like it's really difficult to get this data, and I don't know why that would be. I mean, is anybody currently monitoring what goes on with these TIFs? I heard you mention OHCD a little earlier.

Mr. Hankowsky

Right.

Councilwoman Miller

What are they doing?

Mr. Hankowsky

Yeah. Where there was an economic opportunity plan as part of the overall transaction, then those plans are being monitored. And I want to make sure I'm right, but I think I'm right. I think in every instance, they are being monitored by OHCD. 'Cause generally, there was either public -- there might have been other public dollars in the transaction, and they are doing that for all of us.

Councilwoman Miller

So then even if the TIF person itself -- OHCD should have the data 32 5/4/99 Comm. of Whole - Bill 990181 that answers a lot of these questions in this piece of legislation.

Mr. Hankowsky

It will have the data for a number of them, yes.

Councilwoman Miller

Okay. Because it doesn't -- I mean, I can remember who put my porch roof on years ago. And certainly, I'm not 9 building a big hotel. But to me, it just seems 10 ridiculous that people would not be able to access 11 this information or that it would be such a hard 12 chore to talk about who got contracts, who's 13 working, etc., etc. I don't think that's a big 14 demand. 15

Mr. Hankowsky

No, I'm not saying it 16 is. I am simply saying that we will, in good 17 faith, ask and seek to get the information. 18 That's all I'm -- and we will attempt to do that 19 and I think they can do that. 20 I mean, you know, an instance could be a situation where there's a retail tenant in a building, and forget Loew's. I mean, they're kind of the real beneficiary. But, you know, I'll throw out a name. I hope it won't be inflammatory but, you know, we have a lease in place with Hard 33 5/4/99 Comm. of Whole - Bill 990181 Rock Cafe. I mean, we can ask them for it, but in that lease, we don't actually say, Give us this report every year. So you know, so there's levels down that you have to go down to get the information; it isn't just a single party who would have to do it. I'm sure they'll provide it. I'm just saying there's a little bit of work here, that's all.

Councilwoman Miller

All right, you thank you.

Mr. Hankowsky

Sure.

Council President Verna

The Chair recognizes Councilwoman Clark.

Councilwoman Clark

Good afternoon. How are you?

Mr. Hankowsky

I'm fine, thank you. And yourself?

Councilwoman Clark

I'm good. I didn't hear the entire discussion but maybe by way of wrap-up from what I've been able to glean from the discussion, you have no 23 objection to asking everybody who receives a TIF benefit, whether it is ongoing, proposed or completed, to report consistent with the 34 5/4/99 Comm. of Whole - Bill 990181 requirements of this bill.

Mr. Hankowsky

Correct, that's right.

Councilwoman Clark

Whether they do or not is something that we are free to have a judgment about. But you are certainly going to ask everyone who has ever accepted a TIF benefit to give you the report.

Mr. Hankowsky

That's correct.

Councilwoman Clark

And whether it's onerous or not is not useful to us or to this record, because it certainly won't be more onerous than the benefit they received from the TIF. And this body is entitled to have an opinion about them and their reporting when next they come asking for their next benefit. That is why we make public records, so that we, or our successors, can see what the relationship between this body and business entities who come and ask for benefits. Now, whether there are hard feelings or not is way less than important to this record than whether there's a benefit received and whether this is an onerous requirement to offset that benefit. 35 5/4/99 Comm. of Whole - Bill 990181 So will you notify us that you have written to each and then notify us what their response is.

Mr. Hankowsky

Yeah. Well, I am happy to do that. I presume that if this bill is enacted -- I'm trying to see when the first report would. . . We would do that by the end of this calendar year pursuant to this report. Excuse me, pursuant to this ordinance, we would do the report, right.

Councilwoman Clark

Pursuant to the ordinance, you would issue the report.

Mr. Hankowsky

Right.

Councilwoman Clark

And would you do so as to every other TIF that has been granted?

Mr. Hankowsky

Oh, yeah, yeah.

Councilwoman Clark

By the end of this period?

Mr. Hankowsky

If this is enacted, yeah, we will do this tells us to do, and we will do it in good faith and with the best efforts.

Councilwoman Clark

Fine. Now, as to proposed TIFs, we will make 36 5/4/99 Comm. of Whole - Bill 990181 it a condition of granting the TIF that the business entity accept the requirement and the responsibility to provide you with the data sufficient to make the report.

Mr. Hankowsky

Oh, yeah. What this would do is -- to be candid, it would eliminate the need to, in the last two TIFs, to amend it each time to make it specific.

Councilwoman Clark

Right, it will be standard boilerplate language.

Mr. Hankowsky

The day we now will meet with the client, we will say, By the way, you know, if we agree you should get a TIF and if Council then deems it appropriate that you should have one, you will be required to do these things.

Councilwoman Clark

Right.

Mr. Hankowsky

So we will know going in that this is part of the process. Oh, absolutely.

Councilwoman Clark

I believe that clears up my concerns. Thank you.

Council President Verna

Thank you. The Chair recognizes Councilman Nutter.

Councilman Nutter

Thank you, Madam 37 5/4/99 Comm. of Whole - Bill 990181 President. Mr. Hankowsky, just two last questions. How many of the TIFs have HUD 108 5 loans as a part of their financing deal? 6

Mr. Hankowsky

I'm told by Bob that 7 there are four definite and three possible. Three 8 because we haven't yet determined the final -- for 9 example, West Parkside Retail, we think we will 10 have one but -- 11

Councilman Nutter

HUD 108 is a part 12 of the proposed financing mechanism, and until it 13 gets squared away, you're not absolutely sure. 14

Mr. Hankowsky

Right.

Councilman Nutter

So possibly 7 out of 14?

Councilman Nutter

Okay. And aren't there certain reporting requirements automatically by HUD --

Councilman Nutter

Because of 108 loans?

Councilman Nutter

And isn't some of 38 5/4/99 Comm. of Whole - Bill 990181 the same information the same information that we're talking about here today?

Mr. Hankowsky

Yes. And in those instances, there is no, quote, problem getting it.

Councilman Nutter

Okay.

Mr. Hankowsky

The only caveat to that is, the HUD 108, I think, has a five-year reporting window. But it's just the same thing, the data would be the same.

Councilman Nutter

Okay. And lastly, as we've read on many occasions in the five-year plan in the economic development section, prior to any of this kind of reporting requirements in any of the various deals that the City has done -- not TIF deals -- some without HUD 108 loans, we have had incredible success apparently at at least calculating the number of jobs that are either created or retained which are the centerpiece of the section on economic development in the five-year plan. And somehow we were able to pull all of that documentation together with no 23 requirement of anyone to report anything. Isn't that right?

Mr. Hankowsky

It's not as easy a 39 5/4/99 Comm. of Whole - Bill 990181 question as it might seem. There are reporting requirements for a number of the economic development funding programs prior to any of this discussion.

Councilman Nutter

Mm-hmm.

Mr. Hankowsky

So where community development block grant money is lent, UDAGs, Pennsylvania Industrial Development Authority, various -- there's a whole bump of them that have requirements.

Councilman Nutter

Okay.

Mr. Hankowsky

Not every program has requirements.

Councilman Nutter

I understand.

Mr. Hankowsky

So when -- and I don't know the exact phraseology in the economic stimulus chapter, but I think it's something like, you know, "impacted" or some such phraseology because it both includes those, I'll use the term "hard numbers" that we can verify and numbers that we think --

Councilman Nutter

Create.

Mr. Hankowsky

Think are going to get created but aren't necessarily as hard. 40 5/4/99 Comm. of Whole - Bill 990181

Councilman Nutter

I understand. Okay, thank you. Thank you, Madam Chair.

Council President Verna

Thank you. Are there any other questions from members of the committee? (No further questions at this time.)

Council President Verna

Is there anyone else to testify on this bill? (No response.)

Council President Verna

Gentlemen, thank you.

Mr. Hankowsky

Thank you. And I also want to thank you for taking us first. I deeply appreciate it.

Council President Verna

You're welcome. The next resolution to be called Resolution No. 990261.

Mr. Mcpherson

A resolution appointing Charles M. Warfield, Jr. to the Board of Directors of the City Avenue Special Services District of Philadelphia and Lower Merion.

Council President Verna

Good morning. 41 5/4/99 Comm. of Whole - Res. 990261

Mr. Cohen

Good morning. My name is David L. Cohen, and I'm the Executive Director -- (Laughter.)

Mr. Cohen

I'm the Executive Director of the City Avenue Special Services District. And I'm obviously a different David L. Cohen and I'm also not related to the Councilman.

Councilwoman Clark

What's the L stand for?

Mr. Cohen

It's also Louis, and Louis is spelled the same way.

Council President Verna

How about that.

Mr. Cohen

Thank you for letting me testify here before you today on Resolution 17 990261. As the Executive Director of the City Avenue Special Services District, I'm here to thank you for considering this resolution to appoint Charles Warfield, Jr. to the Board of Directors of the District. The District, as you may know, is the first district in North America out of over 1200 that was created by 2 jurisdictions -- by Philadelphia and Lower Merion. And as we develop 42 5/4/99 Comm. of Whole - Res. 990261 our programming, we look forward to working with you and also Lower Merion to help improve the area that is impacted by both Philadelphia and Lower Merion. Mr. Warfield's been active on our marketing committee and as the CEO and Vice President of WDAS radio. He owns property in the District and operates a business. And it would be very beneficial and advantageous to have him appointed to our Board of Directors officially. I'll be happy to take any questions.

Council President Verna

How many Board members do you have?

Mr. Cohen

We have Board members 16 and 4 ex-officio Board members. 17

Council President Verna

Thank you. 18 Are there any questions regarding the appointment of Mr. Warfield?

Councilwoman Clark

Is he here?

Council President Verna

He's not here.

Mr. Cohen

He was not able to attend. (No questions.)

Council President Verna

I would ask 43 5/4/99 Comm. of Whole - Res. 990262 the clerk to please read the title of resolution 3 990262.

Mr. Mcpherson

A resolution appointing Andrea Gilbert to the Board of Directors of the City Avenue Special Services District of Philadelphia and Lower Merion.

Council President Verna

Mr. Cohen?

Mr. Cohen

Yes. Thank you. Again, my name is David L. Cohen. I'm the Executive Director of the City Avenue Special Services District. Thank you for letting me testify here before you here today on Resolution No. 990262. Andrea Gilbert is the CEO of City Avenue Hospital, and she's been very active with the District. She sits on our steering committee. And if I could, I'd like to read a letter into the record that she wrote to Councilman Nutter. And I also have extra copies.

Council President Verna

Thank you.

Mr. Cohen

"Dear Councilman Nutter: I will be unable to attend the public hearing on May 4, 1999 regarding the resolution for the City Avenue Special Services District regarding my appointment to the Board. 44 5/4/99 Comm. of Whole - Res. 990262 "As the newly appointed CEO for City Avenue Hospital, I am pleased to serve as an official member of the City Avenue Special Services District Board. I have been an active participant on this revitalization initiative for the past year and I am very committed to its goals. "Thank you for the opportunity to contribute to this important effort for City Avenue. "Sincerely, Andrea F. Gilbert, Chief Executive Officer of City Avenue Hospital."

Council President Verna

Thank you. Are there any questions from members of the committee? The Chair recognizes Councilwoman Clark.

Councilwoman Clark

Madam Chair, did we receive biographical sketches of these appointees?

Council President Verna

We have not.

Councilwoman Clark

Is anybody prepared to tell us anything about 'em other than that they want to be on the Board? 45 5/4/99 Comm. of Whole - Res. 990262

Mr. Cohen

I'll be happy to try to expand a little bit.

Council President Verna

Please do.

Mr. Cohen

Okay. In the case of Andrea Gilbert of City Avenue Hospital, as indicated in her letter to Councilman Nutter, she has been with City Avenue Hospital for nearly a year. And City Avenue Hospital, through Tenet, is very committed to supporting the efforts of the district. As representative from City Avenue Hospital, the District contributes a significant amount of revenue to the District by an assessment on an annual basis. And that's in addition to any real estate taxes or other taxes or fees they have to pay to the City or County of Philadelphia. She has been very active in regards to working on the steering committee and helping to shape policy in having us develop our programming. I, unfortunately, don't know about her background or her credentials.

Councilwoman Clark

Madam Chair, is this usual for us to approve people in blank? If they don't come and accept the nomination, they 46 5/4/99 Comm. of Whole - Res. 990262 don't send the biographical sketch, they don't give us any real reason to be for or against them except that their name has been put before us just kind of out of the blue. I have nothing against this candidate, don't know enough about her to be for or against here. And when I don't know about something, I'm more inclined to vote against it than for it. I think this is contemptuous of our process to have people ask us to confirm with no information at all. Now, if someone knows something about these people or why these and not other people should be appointed, I'm willing enough to hear that. Other than that, I think we should postpone affirmation. I just don't know who they are.

Council President Verna

Councilman Nutter, would you like to shed some light on this issue, please?

Councilman Nutter

Sure. Madam Chair, I think all I can add to the record is that on a number of occasions, I've either sat through Committee of the Whole hearings, or sometimes I've been in attendance prior to my service -- I think 47 5/4/99 Comm. of Whole - Res. 990262 some people get confirmed through the Rules Committee; I could be incorrect -- where information was not necessarily available. I certainly did not ask for any, so I'll take the weight on that. I'll be glad to provide information on these two nominees. And if the Council wants to have a process where we do that going forward, I certainly have no objection to it. But that's -- it's really just kind of been my experience.

Councilwoman Blackwell

Madam President?

Council President Verna

The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

On that issue, it was mentioned by Mr. Cohen that they are assessed, as Center City District does so much for this. Is it a Special Services District?

Councilman Nutter

Yes, it is.

Councilwoman Blackwell

All right. What is that assessment? What do they give?

Mr. Cohen

Right. The assessment -- let me give you the formula, then I'll give you the more direct response. 48 5/4/99 Comm. of Whole - Res. 990262 The assessment is somewhat different in Center City's calculation. The formula is, it's the value of real estate taxes on a property divided by the real estate tax value of the entire District times the amount of annual assessments that we apply. In the first year, that's approximately $660,000. The inverse of the calculation results, in Philadelphia's case and/or Lower Merion's case, of a property being responsible or liable for approximately 6.5 percent of the value of the real estate taxes. In other words, if the real estate taxes were $100, they would pay an additional amount to the District of approximately $6.50.

Councilwoman Blackwell

So you said about 600,000 they're giving per year to the Special Services District?

Mr. Cohen

Right. Properties, in other words, pay their proportional share based on the size of their tax value to the District. And that would be for the five-year period for which the District's budget has been approved by Council and by Lower Merion.

Councilwoman Blackwell

What would the 49 5/4/99 Comm. of Whole - Res. 990262 split be out of 660,000 between Lower Merion and Philadelphia?

Mr. Cohen

The split is approximately 50/50. I believe that in Philadelphia's case, Philadelphia is liable for approximately 55 percent, and Lower Merion for approximately 45 percent.

Councilwoman Blackwell

So they're given about 330,000 -- around 300,000 a year to the City.

Mr. Cohen

Well, that would, again, be in terms of all the properties --

Councilman Nutter

No. 15

Mr. Cohen

-- in the District.

Councilman Nutter

In the District.

Councilwoman Blackwell

That is one, this tenant?

Mr. Cohen

No, no, I'm sorry. In the entire District, there's 263 properties, so they would pay their proportional share, which, I believe, in the first year, was approximately $22,000.

Councilwoman Blackwell

So you mean your whole district, the budget for the whole 50 5/4/99 Comm. of Whole - Res. 990262 Special Services District is 660,000, and about 300,000 goes to the City, and this Hospital is given 22,000?

Councilman Nutter

Councilwoman, just so --

Councilwoman Blackwell

I mean, for that little bit, she can come in.

Councilman Nutter

Just one point of information.

Councilwoman Blackwell

I got voluntary assessments of 300,000 myself --

Councilman Nutter

None of the money is --

Councilwoman Blackwell

-- from what I created. Geez.

Councilman Nutter

None of the money is coming to the City; it all goes to the Special Services District.

Councilwoman Blackwell

I mean to the Special Services District, right.

Councilman Nutter

Right, okay.

Councilwoman Blackwell

For 22,000, she can come in, please. I agree with Councilwoman Clark that if 51 5/4/99 Comm. of Whole - Res. 990262 these people want our consideration, certainly I will defer to your wishes for your area. But for 22,000, she can take a morning off. Boy, $22,000 from a whole hospital a year to a city is not a lot of money -- unless, it seems to me, your needs are very small for your Special Services District. But at any rate, I'll defer to the next person. Thank you, Madam President.

Councilman Nutter

Councilwoman, we hope our Special Services District will eventually rise to the level of the University City Special Services District.

Councilwoman Blackwell

Sorry, Council. My colleague mentions UCD. I created another one.

Councilman Nutter

That's right.

Councilwoman Blackwell

Irrespective of the Inquirer reporters who say I have no 21 creative plans, we created one ourselves.

Councilman Nutter

Right.

Councilwoman Blackwell

I created West Philadelphia On The Move.

Councilman Nutter

Absolutely. 52 5/4/99 Comm. of Whole - Res. 990262

Councilwoman Blackwell

And we created a Special Services District, Mercy Health West Philadelphia Special Services District and got private funding from Mercy Hospital.

Councilman Nutter

Right.

Councilwoman Blackwell

I hope they're listening. To pick up at 50th Street where UCD stops.

Councilman Nutter

Right.

Councilwoman Blackwell

So we go from 50th Street to the park to the end of the city. That's all private initiative out of our creative ideas. So I just wanted to say that to those who choose to listen and want to have some idea of what the truth is.

Councilman Nutter

I understand. I'd like to add one additional piece of information to the record. The bylaws of the Special Services District of Philadelphia and Lower Merion require that the Board make decisions about who will serve on the Board of Directors. Those names are submitted to the mayor who then sends them to City Council for confirmation. 53 5/4/99 Comm. of Whole - Res. 990262 Again, I'll be glad going forward, whether it's City Avenue, South Street, Center City or anywhere else, to establish a particular process in the way of handling these needs by way of background information, resume, CV, or anything else. I will glad to be in compliance with that.

Council President Verna

The Chair recognizes Councilman Cohen.

Councilman Cohen

For one second, I yield to Councilwoman Clark.

Councilman Nutter

There's never been a one-second yield.

Councilwoman Clark

I think that we ought to from this day forward make the confirmation process mean something. This is proforma here. We might just as well not do this. We don't know anything about her when it starts. After we have confirmed her, we don't know anything about her. So if the process means anything, let's give it some value. If it doesn't mean anything, let's not have the nuisance value of holding over a potential nominee that you must be confirmed by Council. That confirmation ought to be based on 54 5/4/99 Comm. of Whole - Res. 990262 something other than the fact that the person was nominated. And I would suggest that a CV that gives us some background about the person and their fitness for the position for which they seek confirmation is the minimum that we ought to have in this process.

Council President Verna

I would like to agree with Councilwoman Clark. And to the best of my memory, heretofore, we have had the candidates come before us. In fact, I believe that Councilman DiCicco, the last time we had this, didn't you have your candidates appear?

Councilman Dicicco

Yeah. There's 15 to 20 people but today, I chose only to bring in Dick Ostrander in the interest of time. So I mean, in the future, I will bring them all in if that's the desire.

Council President Verna

I would suggest that. The Chair recognizes Councilman Cohen.

Councilman Cohen

I think it's an extremely important matter we're discussing. This resolution was advertised, was it not?

Council President Verna

Yes. 55 5/4/99 Comm. of Whole - Res. 990262

Councilman Cohen

Because City Council always has to work in an open fashion. It isn't that these people come in just for City Councilmembers, but the public at large has the right to come the to hearing and to see people who are being considered by City Council for any position. So it's not just City Council; it's the whole public. Unlike the mayor who can behind closed doors, you know, appoint people, the Home Rule Charter provided gave the mayor that right to do things, you know, in a closed session as the chief executive, but also required that Council conduct it's business publicly, to invite in not just the Councilmembers but to invite in the whole public. Therefore, I think, except in an extreme emergency, say if a vote had to be taken on something life and death tomorrow and some unforeseen reason prevented somebody from coming, except in on outright emergency, I think we ought to stick strictly to the process that was always the procedure -- that all nominees who were considered by Council had to appear.

Council President Verna

Definitely. 56 5/4/99 Comm. of Whole - Res. 990262

Councilman Cohen

It may be in the -- we have the right to decide whether they should be questioned or not. And it may be in the course of questioning that some matters may come up. 'Cause we're going to be held responsible by the people of Philadelphia for the quality of the work of these people. So I think we ought not to shortcut it. So I agree with Madam President and with the sentiments expressed generally that people ought to come. No 12 disrespect to them. And I don't think a written biography or resume is sufficient; I think we ought to have that with respect to everybody, you know, to look at it in advance if we wish to or at the time of the hearing. But I think we're entitled to have the opportunity, and the public has -- somebody from the public may want to come forth and testify on the basis of the questioning that occurred by City Council. So I would support the -- and would support a motion to withhold action on the resolution. And it should be made clear that this is no criticism of the people themselves involved 57 5/4/99 Comm. of Whole - Res. 990262 in any way.

Councilman Nutter

Madam President?

Council President Verna

Yes, the Chair recognizes Councilman Nutter.

Councilman Nutter

. Thank you. I heard the point and the information raised by Councilman Cohen. I think I can only add to the record that -- I mean, this is for a person to serve on the Board of Directors of a Special Services District. They are not asking for anything from the City of Philadelphia. As a matter of fact, they are asking for the right and the opportunity, as granted to them by the Commonwealth, to additionally assess themselves for certain things that they would like to provide in their particular areas. This Special Services District is no 19 different than Center City, South Street, Headhouse, Frankford, Germantown, Main Street. And I mean I think that covers the lot. And I mean, again, I don't think there's any problem with having people come in, if they want to answer questions write a biography, their whole life history. But the Special 58 5/4/99 Comm. of Whole - Res. 990262 Services District, at least on City Avenue, would like to have a full complement of people. We have vacancies. We would like to make sure that we're able to conduct all of our business and have representation from businesses on City Avenue. The City Avenue Hospital had representation before when it was in a nonprofit status and now happens to be in a for-profit status. I mean, that's a whole separate issue. But I mean, I don't remember -- I guess I'm slightly perplexed as to why we need to hold up particular action today on a matter that -- I mean, Councilman, I'm not sure that we have a very clear process and procedure. I'm more than willing to agree to one going forward. But I know that I have sat in these chambers for the Center City District, where ten people were confirmed and none of them came. And I believe the Executive Director, Paul Levy, was here, he sat at the table. Maybe it was because more of the names were known than these two individuals. Most of them are folks who are well-known to us. I mean, I respect the request, but I would like to respectfully ask that we move 59 5/4/99 Comm. of Whole - Res. 990262 forward on these nominees.

Council President Verna

The Chair recognizes Councilwoman Miller. Did you want to be recognized?

Councilwoman Miller

Thank you, Madam Chair. I was going to say that I need to be excused from this committee hearing to attend Council business, and I will be voting aye, but I'll wait for this discussion to end.

Council President Verna

The Chair recognizes Councilman DiCicco.

Councilman Dicicco

Thank you, Madam President. I, too, would like to follow up on Councilman Nutter's comments and ask that today, at least, that we do not hold up the confirmation of these appointments. And maybe going forward, there is a better way of doing things. The one thing I did want to point out is that -- and I said it earlier and I'll say it again for the record -- it was at my instruction that the appointees not come here today 'cause I thought, in the interest of time, that was the best thing for all of us. I have personal 60 5/4/99 Comm. of Whole - Res. 990262 experience with the people who I'm requesting to be appointed to the South Street/Headhouse District, as I'm certain Councilman Nutter has with the appointees that he has put forward today.

Councilman Nutter

So do I.

Councilman Dicicco

These, by the way, are people who are not being compensated in any way, shape, or form, do give of their own free time for the betterment of their community. And some of these people, I think, even if I had asked them to come, may not have been able to because most of them are business people or working people who may not be able to take the time off to come here -- not because it's not important to them, but they do give up their time day in day out in their community 365 days. And all of us know about boards and commissions where we are not financially compensated, and they are the things that we do out of the goodness of our heart for our community. And, again, going forward, maybe there is a better process, and I'd like to discuss that. But I would certain ask that we move forward with these appointments today. 61 5/4/99 Comm. of Whole - Res. 990262 Thank you.

Council President Verna

Thank you. The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Madam Chair, I also have Council business outside at 12:30 so I'm going to have to leave shortly. So I want to vote aye on the bills and resolutions before us.

Council President Verna

Thank you. I'm just hoping we'll have a quorum at the conclusion. This should take no more ten more minutes. The Chair recognizes Councilman Cohen.

Councilman Cohen

I just wanted to mention, without getting in a major discussion with Councilman Nutter, I was chairman of the committee at the time the 1st District was set up. It was a very serious matter because what a district does is to exercise a taxing power. And that's the reason I think we have to take these matters concerning districts very important. We've cloaked them -- the district, not the individuals, but the district, within with an aspect of government power for which we're responsible. And that's the reason I think these 62 5/4/99 Comm. of Whole - Res. 990262 are not just routine appointments. We do applaud the willingness of these people to work without compensation. We have others, like SEPTA and, you know, board members who serve without compensation. I had no -- it is my feeling that with respect to today's activity, in view of the previous understandings that Councilman DiCicco and Councilman Nutter have had, I have no objection to moving forward today. But I would like to express the view that I think from this point on, there ought to be the furnishing of the data and the public hearing. I think both Councilmembers acted in good faith based upon their understanding. And so I have no problem at all with the approval today, but I do think we ought to go back to the method that existed for a long time of requiring presence.

Council President Verna

Thank you. The Chair --

Councilman Nutter

Madam President, if I could only suggest -- and I appreciate what Councilman Cohen said. If we can just ask the President to -- I mean, in light of today's 63 5/4/99 Comm. of Whole - Res. 990262 discussion, establish a process and procedure either by discussion with the members or -- I mean, you heard what people want and how they want to handle things, and maybe just a memo should go out to all of us saying that, you know, in the future, this is what we need, this is what we want. If anyone has any nominees to anything, these are required documents and we want people to attend, we want a background. You know, we just did the Police Advisory Commission yesterday. I mean, people had to fill out a questionnaire. I mean, you know, there were five questions that were pertinent to that particular business. So maybe there's something that's, you know, rather generic for this kind of appointment that says, This is why I want to serve on "XYZ." And, you know, they bring it in and they show up.

Council President Verna

Thank you. The Chair recognizes Councilwoman Clark.

Councilwoman Clark

Thank you, Madam Chair. I think my comments are very close to 64 5/4/99 Comm. of Whole - Res. 990262 Michael Nutter's, except I would not go to the detail that he has taken, as I think, though, that the whole subject of confirmation, people to serve on boards, is one that I would respectfully suggest that you look at carefully. I just want to comment briefly on whether there's any benefit that flows to the individual for serving on a non-paid board. I have to think there must be 'cause they wouldn't do it. And there is a delegation of a governmental power that requires to us act in a responsible way. I do not like any process that is a sham. And to confirm a person on as skimpy amount of information as is before us today is less than a sham, except that the people who introduce them are well-intentioned, and I raise no questions as to their motivations. I know that they are pure in their motivations. But we need to have a reason for voting them. You have a reason for proposing them. What reason would I have other than my personal love for the two of you for voting for them based on the record before me? And the answer is none. 65 5/4/99 Comm. of Whole - Res. 990262 So let's don't do this again in the future.

Council President Verna

Thank you, Councilwoman. The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

Thank you, Madam President. May we request in this instance that the background information with regard to their interests and resumes be submitted to the President, who can then get that out. And maybe I associate myself with Councilman Clark's comment. Certainly, we trust your concern, Councilman DiCicco and Nutter, and so we want to try to make life as easy for you as possible. And maybe we can kind of conclude this issue by asking if you'll submit some letter and bio to the President who can copy us.

Council President Verna

I think they ought to go to Councilman Nutter and Councilman DiCicco.

Councilwoman Blackwell

Well, I assume they would request it, I assume they would request 66 5/4/99 Comm. of Whole - Res. 990262 it. That's why I asked that they submit it to you and we get copies.

Council President Verna

Great.

Councilwoman Blackwell

I assume they would be the ones to request the information from the candidates.

Council President Verna

Thank you. Does anyone have any questions of Mr. Cohen who's been extremely patient? (No questions.)

Council President Verna

Thank you, Mr. Cohen.

Mr. Cohen

Thank you.

Council President Verna

I would ask Mr. McPherson to please read the title of Resolution No. 980933.

Mr. Mcpherson

A resolution appointing Bernadette Brescia to the Board of Directors of South Street/Headhouse District of Philadelphia.

Council President Verna

Good morning.

Mr. Ostrander

Good morning.

Council President Verna

Kindly identify yourself for the record.

Mr. Ostrander

I'm Richard W. 67 5/4/99 Comm. of Whole - Res. 990933 (regularly known as "Dick") Ostrander, Executive Director of the South Street/Headhouse District.

Council President Verna

Please proceed.

Mr. Ostrander

I regret that there is some possible controversy or question, but our motivation, I can assure you, is 100 percent correct. The nominations which you have in front of you were made in pursuance to the Municipal Authorities Act of 1945, as amended, City Council Bill No. 209, which established us and which was an act of Council. The articles of incorporation of the South Street/Headhouse District and, of course, the bylaws, which you also approved. We are anxious always to conform to the requirements placed on us in terms of confirmation with procedure. The names which are placed in front of you are names of well-known owners of businesses. One resident of the community, Bernice Hamel, who is the chairperson of the --

Council President Verna

Excuse me. Presently, we could take each one individually since all of them weren't read. Can you tell us 68 5/4/99 Comm. of Whole - Res. 990933 something about Bernadette, please.

Mr. Ostrander

Surely, Madam President. Fran Holtzin, Frances Holtzin is co-owner, with her husband, of Metal Works Contemporary Jewelry Shop, which is an excellent place to --

Council President Verna

I'm sorry, sir. We are presently considering Resolution No. 11 980935. I believe that's regarding --

Mr. Ostrander

Excuse me, 980935?

Mr. Mcpherson

No, 33.

Council President Verna

33.

Mr. Ostrander

33. Okay, let me get 'em lined up.

Council President Verna

They should be in order. I believe it's the second one in that group.

Mr. Ostrander

I have 34.

Councilman Dicicco

There are some missing in that group.

Mr. Ostrander

I apologize. I looked -- I was looking at the original letter of submission. 69 5/4/99 Comm. of Whole - Res. 990933

Council President Verna

Okay, no 3 problem.

Mr. Ostrander

Bernadette Brescia is the owner of Brescia Salon at 118 South Street. It's a salon which has been in business on South Street for more than a dozen years. It previously was located at 538 South Street. Bernadette is the proprietor, a well-known business woman, and is serving, of course, as do all of our Board members, in an uncompensated volunteer position.

Council President Verna

Thank you. Are there any questions from members of the committee regarding this candidate? (No questions.)

Council President Verna

The clerk will please read Resolution No. 980934.

Mr. Mcpherson

A resolution appointing Johanna Hambrose to the Board of Directors of the South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Madam President, this particular nomination, when made, was appropriate. At this point in time, it is not. Johanna has distanced herself from the activities of the District, and I come here today to ask on 70 5/4/99 Comm. of Whole - Res. 980935 behalf of the District that that name be withdrawn from the nomination.

Council President Verna

It is withdrawn. Thank you. Mr. McPherson will read the title of Resolution No. 980935.

Mr. Mcpherson

A resolution appointing Bernice Hamel to the Board of Directors of the South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Bernice Hamel is a very -- a community activist; a member of the Board of the Society Hill Civic Association; a preservationist well-known to the City and to the community; is the chairperson of the Headhouse Conservancy, which restored the Headhouse in shambles in the early 1990s to prevent its further decay. And she has been a resident of the community immediately adjacent to the Headhouse. She lives in the 300 block of South Second Street for about a dozen years.

Council President Verna

Thank you. Are there any questions regarding Bernice Hamel? (No questions.) 71 5/4/99 Comm. of Whole - Res. 980936

Council President Verna

Seeing none, the clerk will please read the title Resolution 4 No. 980936.

Mr. Mcpherson

A resolution appointing Steve Giannascoli to the Board of Directors of South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Steve is the proprietor -- the owner of an organization known as "Triad Realty." Steve was a founding Board member of the District, and at the expiration of his term, has taken about two years off of the Board and is now interested and willing to come back and be a Board member again. His firm represents more individual commercial properties on the street than any other Realtor.

Council President Verna

Are there any questions regarding Steve Giannascoli? (No questions.)

Council President Verna

Mr. McPherson will please read the title of Resolution No. 22 980937.

Mr. Mcpherson

A resolution appointing Fran Holtzin to the Board of Directors of the South Street/Headhouse District of Philadelphia. 72 5/4/99 Comm. of Whole - Res. 980937

Mr. Ostrander

Frances Holtzin is the co-owner, with her husband, of Metal Works Contemporary Jewelry at 315 South Street. She moved there from a location on the 400 block of South Fourth Street about a year and a half or so ago. Forgive my using the word "high-level" but it is a retail shop with very interesting, unusual contemporary modern jewelry, excellent glass. It's a joy to shop there, I must say, and it can be quite expensive. But she's a well-known business person in the community running an excellent business.

Council President Verna

Thank you. Are there any questions regarding Fran Holtzin? (No questions.)

Council President Verna

Hearing none, Mr. McPherson will please read the title of Resolution No. 980938.

Mr. Mcpherson

A resolution appointing Rick Millan to the Board of Directors of the South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Rick Millan has owned several businesses on the South Street corridor 73 5/4/99 Comm. of Whole - Res. 980938 over the years. He is the founder and proprietor of Zipperhead. He also has real estate interests in the general area. He was considered for membership to the Board when we were founded nine years ago -- eight years ago, excuse me, and was unable to devote the time to it at that time. He now is available to serve, and we're pleased to have him nominated.

Council President Verna

Are there any questions on this nominee? (No questions.)

Council President Verna

Thank you. The clerk will please read Resolution 15 No. 980939.

Mr. Mcpherson

A resolution appointing Michael Samschick to the Board of Directors of the South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Michael Samschick is a resident of the South Street area, living on the 600 block of South Front Street and has extensive real estate and other business interests in the district.

Council President Verna

Thank you. Are there any questions on this resolution? 74 5/4/99 Comm. of Whole - Res. 980939 (No questions.)

Council President Verna

Mr. McPherson, would you please read Resolution No. 5 980940.

Mr. Mcpherson

A resolution appointing Abner Silver, Esquire, to the Board of Directors of the South Street/Headhouse District of Philadelphia.

Mr. Ostrander

Abner Silver, you will probably recognize as the owner of Jim's Steaks, a very popular restaurant at 400 South Street. He is a businessman of good repute who's been on the street for many, many years.

Council President Verna

Are there any questions from members of the committee? (No questions.)

Council President Verna

Thank you very much, sir.

Mr. Ostrander

Thank you.

Council President Verna

This concludes the public hearing. - - - 75 5/4/99 Comm. of Whole - Public Meeting

Council President Verna

We will now go into our public meeting. The Chair recognizes Councilman Nutter regarding Resolution No. 990261.

Councilman Nutter

Madam Chair, I move that Resolution No. 990261 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and properly seconded that Resolution No. 12 990261 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman Nutter regarding Resolution No. 990262.

Councilman Nutter

Madam Chair, I move that Resolution No. 990262 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been 76 5/4/99 Comm. of Whole - Public Meeting moved and seconded that Resolution No. 990262 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman DiCicco regarding Resolution No. 980933.

Councilman Dicicco

Thank you, Madam President. I move for the -- make a recommendation that Resolution No. 980933 be reported out of committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been properly moved and seconded that resolution No. 20 980933 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion carries. 77 5/4/99 Comm. of Whole - Public Meeting The Chair recognizes Councilman DiCicco regarding Resolution No. 980934.

Councilman Dicicco

Madam President, I ask that Resolution No. 980934 be withdrawn.

Council President Verna

The record will so note that Resolution No. 980934 has been withdrawn. The Chair recognizes Councilman DiCicco regarding Resolution No. 980935.

Councilman Dicicco

Madam President, I recommend that Resolution No. 980935 be reported out of committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution No. 980935 be reported out of committee with a favorable recommendation. All in favor signify will signify by saying aye. Those opposed? The ayes have it, the motion carried. The Chair recognizes DiCicco regarding Resolution No. 980936.

Councilman Dicicco

Thank you, Madam 78 5/4/99 Comm. of Whole - Public Meeting President. I move that Resolution No. 980936 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution No. 980936 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman DiCicco regarding Resolution No. 980937.

Councilman Dicicco

Madam President, I move that Resolution No. 980937 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution 980937 be reported out of committee with a favorable recommendation. All in favor will signify by saying 79 5/4/99 Comm. of Whole - Public Meeting aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman DiCicco regarding Resolution No. 980938.

Councilman Dicicco

Thank you, Madam President. I move that Resolution No. 980938 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution No. 980937 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman DiCicco regarding Resolution No. 980939.

Councilman Dicicco

Thank you, Madam President. I move that Resolution No. 980939 be 80 5/4/99 Comm. of Whole - Public Meeting reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution No. 980939 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman DiCicco regarding Resolution No. 980940.

Councilman Dicicco

Thank you, Madam President. I move that Resolution No. 980940 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Resolution No. 980940 be reported out of committee with a favorable recommendation. All in favor will signify by saying 81 5/4/99 Comm. of Whole - Public Meeting aye. Those opposed? The ayes have it, the motion carries. The Chair recognizes Councilman Nutter regarding Bill No. 990181.

Councilman Nutter

Madam Chair, I move that Bill No. 990181 be reported out of this committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been move and seconded that Bill No. 990181 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. This concludes our public meeting. I thank you for you all for your patience. (Adjourned at 12:39 p.m.) - - - 82 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, May 4, 1999, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE OF THE WHOLE BILL NO. 990181 RESOLUTION NO.'s 990261, 990262, 980933, 980934, 980935, 980936, 980937, 980938, 980939, 980940 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter