COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON RULES - - - - Room 696, City Hall Philadelphia, Pennsylvania Thursday, March 25, 2004 1:00 p.m. - - - - BILL 040183 - An Ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located with an area bounded by the Delaware River, Cottman Avenue, I-95 Expressway and Rhawn Street. BILL 040024 - An Ordinance amending Section 14-1200 of the Philadelphia Code entitled "Pending Public Acquisition District"... PRESENT: COUNCIL PRESIDENT VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO COUNCILMAN JACK KELLY COUNCILMAN JAMES KENNEY COUNCILMAN RICHARD MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 040183 PAGE THOMAS CHAPMAN, City Planning...... BILL 040024 HARRY PERKS, PCCA.................. ALBERT MEZZAROBA, PCCA............. 7 8 9 10 11 12 13 14 15 16 17 3 03/25/04 - RULES - BILL 040183
Good afternoon, everyone. This is the public hearing on the Committee on Rules. I would ask Mr. McPherson to read the title of Bill 6 No. 040183.
Bill No. 040183, an ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located with an area bounded by the Delaware River, Cottman Avenue, I-95 Expressway and Rhawn Street.
Madam Chairman and Members of the Rules Committee, for the City Planning Commission, my name is Thomas Chapman. I am the Director of the Development Planning Division at the City Planning Commission, and I'm here today to testify on Bill No. 040183. Councilwoman Krajewski introduced this bill on March 4th of this year. This bill rezones the area bounded by Rhawn Street, I-95, Cottman Avenue, and the Delaware River in Northeast Philadelphia. This area is just a small part of the area 4 03/25/04 - RULES - BILL 040183 that was the subject of the North Delaware plan. This rezoning is consistent with the recommendations of that plan and, as you will see, has considerable support. This rezoning serves a number of purposes. Currently, a significant portion of this area is zoned LR Lease Restricted and G-2 General Industrial. The existing zoning designations in this area allow for heavy industrial use, including the outdoor storage of material as well as the outdoor processing of material. This change in designation would require that all work and the storage of material be done in an enclosed structure. This outdoor work is not permitted in other industrial classifications. A number of current uses in this area are already non-conforming uses. While there are some existing businesses in this area, a significant part of this area consists of land and buildings that are either vacant or underutilized. It is hoped that this rezoning will send a message that both the District Council 5 03/25/04 - RULES - BILL 040183 Representative Councilwoman Krajewski and the surrounding community are receptive to new development. Notwithstanding these changes in zoning, it is likely that further action of City Council would be necessary should a residential, commercial or mixed-used development be proposed for any of the sites that are being changed. Ordinances may be necessary to place streets on the City Plan and additional rezonings may be necessary to accommodate proposed development. This rezoning is consistent with previous actions of the Planning Commission taken in connection with Bill No. 020278 and Bill No. 040007. And accordingly, we recommend that Bill No. 040183 be approved. That concludes my testimony. I would like to add, however, that you should have in your possession letters from House of Representatives Michael McGeehan, also from Senator Mike Stack, and also in the room today we have former Congressman Robert Borski who's been very instrumental in the development of North Delaware. 6 03/25/04 - RULES - BILL 040183
We certainly welcome the Congressman. I don't know that it's necessary for him to testify unless he wishes to. I understand he doesn't want to. I believe we also have a letter of support from Congressman Hoeffel. I would like to make certain that the stenographer does have copies of each of the letters so that they will be made part of the testimony. Are there any questions from Members of the Committee on this bill? The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. Good afternoon. Just one quick question. Is this proposed zoning in any way, shape or form or part of the proposed upper Delaware River development that has been discussed in prior meetings and is part of the Mayor's economic stimulus plan?
Yes, Councilman. It's definitely in support of that plan. 7 03/25/04 - RULES - BILL 040183
Is it a major portion of that proposed site? Just how much of it?
This is the northern edge of the -- part of the northern edge of the study area. It's not a significant amount of land as far as how much of the North Delaware that study covered.
Will there been additional zoning requirements to support the proposed development?
Yes, definitely. Areas to the south of the Frankford Arsenal. Areas close to the Betsy Ross Bridge, I would suspect, would be the subject of rezoning bills in the future, as well as areas that have already been considered by Council. They might have to come back and change the zoning again, depending on what's being proposed there. And there also may be some requests to, I guess, institutionalize the existing industrial users that we expect to be there for quite some time.
Okay. Thank 8 03/25/04 - RULES - BILL 040024 you. Thank you, Madam President.
Thank you. Are there any other questions from Members of the Committee on this bill? (No response.)
Do we have anyone else to testify on Bill No. 040183? (No response.)
Seeing no 12 one, we will now consider the continued public hearing of Bill No. 040024. And I would ask Mr. McPherson to please read the title of that bill.
An ordinance 17 amending Section 14-1200 of the Philadelphia Code entitled "Pending Public Acquisition District," by designating a Pending Public Acquisition District in the area bounded on the east by North 13th Street, on the north by Race Street, on the west by North Broad Street and on the south by Arch Street.
Thank you. I believe everyone received a copy 9 03/25/04 - RULES - BILL 040024 of the letter of intent that was submitted to the Chief Clerk's office. We all have a copy of that. And also the attorney that appeared here at our previous hearing and he was asked a number of questions, he has submitted his responses in writing, and each Councilmember has a copy of his responses. Do we have anyone to testify on this bill? Please approach the witness table. Please identify yourself for the record proceed with your testimony.
My name is Harry Perks. I'm pleased to be here and have this opportunity to testify on behalf of the Pennsylvania Convention Center in favor of establishing a Public Acquisition District covering the area of our expansion. The Pennsylvania Convention Center Authority has been planning an expansion since 1997. That was when the Pennsylvania Economy League reported that the Convention Center's financial benefits to the hospitality industry and tax revenues to the City far exceeded 10 03/25/04 - RULES - BILL 040024 expectations; also, we weren't able to accommodate the larger conventions that were requesting to come to our City. The expansion is planned to go west to Broad Street between Arch and Race Streets, the area covered by this proposed expansion. Announcement by a public agency can set off a speculative binge that drives the uses that are not in accordance with any long-range planning are not in the best long-term interest of the City. This speculative binge can be indicated by undue inflation and property values within the given area. There has already been substantial inflation in property value since PCCA announced its intention to consider an expansion in 1997. And changes in use or density not otherwise permitted by the City Zoning Code or its planning documents should not be permitted during this two-year period. Their only effect in addition to violating long-established planning and zoning objectives will be to further artificially increase the value of the property needed for 11 03/25/04 - RULES - BILL 040024 this public use. This type of rush for a zoning change has already happened this year when a property owner was granted a change in zoning from commercial to residential and started renovations to accommodate approximately 60 condominiums. During the planning process for the Convention Center, PCCA commissioned the Redevelopment Authority to make preliminary appraisals for the value of the property needed for the expansion on three different occasions, 1997, 2000, and 2002. Those property appraisal were for 40, 80 and $120 million respectively during those five years. The inflation was over percent. 17 The property affected by this bill 18 has long been identified and zoned by the City 19 as primarily commercial. The current zoning 20 for the property as a result of appropriate planning and deliberation and describes the City's desired use for this property relative to both those properties surrounding it and other areas of the City. Property owners in affected area have long had an opportunity to 12 03/25/04 - RULES - BILL 040024 use their property in ways conforming with the City's planning goals. This bill will affect the property only for a limited time, two years, during which PCCA will pursue the potential acquisition or condemnation of the properties needed for this expansion, subject to the availability of funds and feasibility and viability of the project. In the meantime, properties in this area should not be subject to drastic changes in use which are not in keeping with the long-established zoning and community planning for this area. For these reasons, the Pennsylvania Convention Center Authority strongly endorses the passage of Bill No. 040024. Thank you for this opportunity to testify.
You're welcome, sir. Any questions of the witness from Members of the Committee?
Yes, sir. The Chair recognizes Councilman Cohen.
Did you see the 13 03/25/04 - RULES - BILL 040024 request made by someone who was in the neighborhood of reconverting his building to have a few more tenants? The letter we have from Klehr Harrison, the law firm speaking in opposition to the bill, I wonder if you could read that and state what your position on that would be.
Thanks, Councilman, for showing the witness the letter.
The question is are you in support, meaning by you, I'm referring to the same group that you are representing today, and I understand that's Convention Center Authority? Do you approve of the position taken in that letter or do you have differences? And if so --
I have no quarrel with the position that's taken in this letter. Everything, as I far as I know, they did legally and in accordance with the City's 14 03/25/04 - RULES - BILL 040024 requirements.
Therefore, you say that the new law would not affect them?
The new law, I don't think it's retroactive in any way. I think this is only for properties going forward.
How do you justify the difference? Why should that be legal for them to do it, but if an owner begins to think about that now and says, "I would like to in the normal course of events I would have done the same thing last year. I wasn't in a position to. I am this year," he cannot go ahead if this becomes law without forfeiting certain rights he has.
The question is, why doesn't the person who has not yet reached that decision but who can show that he would have done it in normal circumstances but he would have done it a year after the bill 24 became law rather than before the bill becomes law, why should that person be penalized? 15 03/25/04 - RULES - BILL 040024
I can't answer it. And I asked you, I was hoping perhaps you might answer. I have great difficulty understanding the difference.
Do we have any other questions of this witness? (No response.)
The CEO and President of the Convention Center Authority are here, Mr. Mezzaroba is here if anyone has any questions. He wasn't prepared to testify, but I'm sure he would be more than willing to answer any questions that the Committee may 16 03/25/04 - RULES - BILL 040024 have?
Let me just state for the record that I know there was controversy when Mr. Mezzaroba was appointed. I think he has proven himself time and time again to be an excellent executive director, and I think everybody will agree to that regardless of what their positions were at the beginning. I supported you, but I know it was not an easy time there. But I hear nothing but good things.
Do we have anyone else to testify on this bill? The Chair recognizes Councilwoman Miller.
Thank you, Madam Chair. This proposed amendment -- I guess I'll address this to Councilman DiCicco. This proposed amendment, does it basically say that 17 03/25/04 - RULES - BILL 040024 the letter of intent is forthcoming or it's been filed?
I'm sorry. I think I mentioned earlier that it has been filed with the Chief Clerk and each Councilperson has a copy of it before them. Any other questions?
The question on the statement of intent, essentially the Pennsylvania Convention Center Authority files a statement of intent, to acquire by condemnation or otherwise, I'm assuming the otherwise would be direct purchase from a property owner as opposed to condemnation? In the statement, "The Pennsylvania Convention Center files a statement of intent to acquire by condemnation or otherwise the property identified as A." I'm assuming the otherwise is a direct negotiation/purchase with any property owner.
That would be 18 03/25/04 - RULES - BILL 040024 correct. That would be the first form, Councilman. Secondly, if we cannot take it through negotiations, you would then file a statement of condemnation and take it through the courts.
And that the Convention Center would be the entity that would negotiate the purchase or would it be another entity?
That hasn't been completely decided. When the current center was built and the land acquisition took place, the authority hadn't been formed yet, so we went through the RDA. So the Convention Center and the City went through the RDA. It's been contemplated to do it either way. We have condemnation power. The RDA has condemnation power. So we can do it either away. Right now, I think the sentiment is to basically do it through our condemnation power, potentially hiring the RDA as our agent since they have the ability to figure out the legal and the appraisals and things of that 19 03/25/04 - RULES - BILL 040024 nature.
Okay. I was centering in more on the "otherwise" aspect of acquisition. I was just trying to get a sense of what mechanism, what entity. Would you hire a straw party to purchase --
No, no, no. We would do it -- The only question would be -- the "otherwise" is we would buy it upright. So the Authority would make an offer to a property owner. And if the property would accept, we could do a regular agreement of sale and by it in the conventional manner. If any or all property owners decide that they do not want to sell, we would go then go through eminent domain or we could do a negotiated eminent domain, which is normally what's done in these processes.
Well, what happens is, as far as for tax purposes, the property is taken via eminent domain but no one fights 20 03/25/04 - RULES - BILL 040024 it. The only question is what the number is. So the property owner says, "We agree that you can have it, take it," and the courts will decide -- or the Board of View, and if you don't like that, the court will decide what the number is.
Because traditionally you get -- I knew with the Redevelopment Authority there's an appraisal, there's a number associated with that condemnation; and then if the property owner does not agree with that number, they then go to court.
They can go to the Board of View. If they don't agree with the Board of View, they can appeal to the Common Pleas Court.
You're saying that the Redevelopment Authority may or may not be hired as an agent for the condemnation or any of the negotiations. 21 03/25/04 - RULES - BILL 040024
That's correct. The preliminary numbers we have right now -- and Harry would be able to answer this a little better. But since the year '98 or '99, we've hired the RDA to do three sets of appraisals for us. The first set, then doing a second set, the most recent being done in the year 2001, I believe. And they act as our agent. We pay them a fee; they give us the appraisals.
My recollection in the testimony last week was that the RDA could not do an appraisal until there was an authorization for condemnation.
The RDA cannot file 17 an intent of taking until we do something. But we hire them the way that we would hire PIDC or any private agency. As a government agency, we have access to them, we pay them for their time that they put in, and they give us a figure as to what the condemnation would be worth. So when we go to Harrisburg and we come eventually to City Council and ask for money, we need to know what it's going to 22 03/25/04 - RULES - BILL 040024 cost. And we've previously gotten those numbers through the RDA since they have the ability to put them together.
You're welcome. Are there any other questions from Members of the Committee? (No response.)
Anyone else to testify on this bill? (No response.)
Seeing none, that concludes our public hearing. - - - - 23 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON RULES - - - - Thursday, March 25, 2004 - - - - Public meeting conducted by the Committee on Rules, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 040183, 040024. PRESENT: COUNCIL PRESIDENT VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO COUNCILMAN JACK KELLY COUNCILMAN JAMES KENNEY COUNCILMAN RICHARD MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN 24 03/25/04 - RULES - PUBLIC MEETING
We will now go into our public meeting. And the Chair recognizes Councilman Clarke regarding Bill No. 040183.
Thank you, Madam President. Madam President, I make a motion that Bill --
Thank you, Madam President. If I may, as part of my testimony I neglected to mention that Councilwoman Krajewski had asked if I would ask the Committee on her behalf to suspend the Rules for this bill.
Thank you, Madam Chair. Madam Chair, I move that Bill No. 21 040183 be reported out of Committee with favorable recommendation and a request for suspension of the Rules as to allow reading at the next Session of Council. (Duly seconded.) 25 03/25/04 - RULES - PUBLIC MEETING
It has been moved and seconded that Bill No. 040183 be reported out of Committee with a recommendation, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next Council Session. All in favor will say aye. (Aye.)
Ayes have it, and the motion carries. The next bill to be considered is Bill No. 040024. The Chair recognizes Councilman DiCicco.
Thank you, Madam Chair. I offer a proposed amendment to Bill No. 040024. I believe all members of your Committee have a copy. I would ask for that to be accepted, and I would further ask when you take action on this bill that the Rules of Council be suspended. 03/25/04 - RULES - PUBLIC MEETING
Thank you, Madam President. I make a motion that the amendment to Bill 040024 be approved. (Duly seconded.)
It has been moved and seconded that the amendment be approved. All in favor will indicate by saying aye. (Aye.)
The motion carries. The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. I move that Bill No. 040024, as amended, be reported out of Committee with favorable recommendation and request for a suspension of the Rules as to allow reading at 27 03/25/04 - RULES - PUBLIC MEETING the next Session of Council. (Duly seconded.)
It has been moved and seconded that Bill No. 040024 be reported out of Committee with a favorable recommendation, as amended, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next Council session. All in favor will say aye. (Aye.)
Madam President, I would note my abstention. The City Charter permits abstentions at committee sessions, not at a final vote.
Your abstention will be so noted for the record Councilman. Thank you very much. The ayes have it, the motion carries. This concludes our public meeting. Thank you all very much. 28 03/25/04 - RULES - PUBLIC MEETING (Council adjourned at 1:50 p.m.) - - - - 29 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Thursday, March 25, 2004, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON RULES _________________________ Lisa C. Bradley, RPR