COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND HEARING BEFORE THE COUNCIL COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, 6/4/02 10:31 a.m. - - - BILL 020312 - an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying fee simple title to two certain tracts of City-owned land with the buildings and improvement telephone situate in the vicinity of the 19th Street and Allegheny Avenue... Bill No. 020347 - an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying fee simple title to two certain tracts of City-owned land with the buildings and improvements thereon, situate in the vicinity of American Street and Montgomery Avenue... COUNCILMEMBERS PRESENT: James F. Kenney, Chair Jannie L. Blackwell, Vice Chair Blondell Reynolds Brown Darrell L. Clarke Donna Reed Miller Michael A. Nutter - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 BILL 020312 PAGE PAUL DEEGAN, PIDC, PAID ....................... KENNETH A. SIPOS, Dept. of Public Property .... BILL 020347 PAUL DEEGAN, PIDC, PAID ....................... 3
Good morning, ladies and gentlemen. The Committee on Public Property and Public Works is now in session to hear testimony on two bills. The first bill is 020312, which is Bill No. 020312 an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying fee simple title to two certain tracts of City-owned land with the buildings and improvements thereon situate in the vicinity of the 19th Street and Allegheny Avenue, subject generally to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation; and further authorizing PAID, notwithstanding any contrary requirements of the Philadelphia Industrial and Commercial Development Agreement to convey such land for a nominal consideration; all under certain terms 4 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS and conditions. (Witnesses come forward.)
Good morning. Please Identify yourself for the record and proceed.
Paul J. Deegan, I represent PIDC and the Philadelphia Authority. This bill authorizes the City to convey two parcels containing 5.4 acres of vacant land in the vicinity of 19th Street and Allegheny Avenue to PAID. After acquisition by PAID, this property will be sold to Philadelphia Stainless, Incorporated, now located at 2015 West Allegheny Avenue, an existing manufacturer and distributor of metal products. The company intends to construct a new 7500 square foot building and create approximately 35 new jobs. The total project cost of this construction will be $3.75 million. The bill also authorizes PAID to negotiate a sale to Philadelphia Stainless at a price below the fair market value. We believe that the retention of the company in this area, the total investment in the project, and the new 5 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS job creation on the site will justify the financial assistance we can provide by reduced land costs. After our proceeds after we negotiate a price, the net proceeds from the sale of the land will go to the City's General Fund. I ask that the Committee consider bill favorably and that the rules of Council be suspended to permit First Reading at the next regularly scheduled meeting at City Council. Thank you. And I'd be happy to answer any questions you may have.
Mr. Deegan, this is City-owned property we're selling to a private entity?
Good morning, Mr. Chair. Good morning, Mr. Deegan and the other gentleman.
Good morning, 6 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS Councilwoman.
I'm really bad with names. I just want to do make a statement and just say that this parcel is located in the 8th Council District. It's a part of our Keystone Zone. It's in our Keystone Zone designation. And it's been an eyesore and blighted for many, many, many, many years. So we're really pleased that this is finally going to be developed and we're excited about the new job creation and we just strongly support this particular project. And thank you for your testimony.
Mr. Chairman, members of the Committee. My name is Kenneth A. Sipos. I'm representing the Department of Public Property. This bill will permit the property to be sold for the purpose of constructing a new 7 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS building by an existing manufacturer and distributor of metal products and the creation of approximately 35 new jobs. The Department supports measure, and accordingly, I respectfully ask that the Committee consider this bill 7 favorably. Thank you. I'll be happy to answer any questions you may have.
Thank you very much. Any questions of Mr. Sipos? (No response.)
Seeing none, anyone else here to testify on this bill? (No response.)
Seeing none, we'll now move to Bill No. 020347, an ordinance 19 authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying fee simple title to two certain tracts of City-owned land with the buildings and improvements thereon, situate in the vicinity of American Street and 8 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS Montgomery Avenue, subject generally to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation; and further authorizing PAID, notwithstanding any contrary requirements of the Philadelphia Industrial and Commercial Development Agreement, to convey such land for a nominal consideration, under certain terms and conditions. Please, identify yourself for the record and proceed.
My name is Paul Deegan. I represent the Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development. And I'm here today to testify in support of this bill. This bill authorizes the City to convey a 1.5-acre parcel of vacant land at the intersection of American Street and Montgomery Avenue to PAID. After acquisition from the City 9 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS by PAID, the property will be sold to White Oak Ice Company. They're an existing company now located in Bucks County. This company intends to construct a new 15,000 square foot building for the storage and distribution of ice. The facility will create eight new jobs immediately and eight additional jobs within three years. The bill also authorizes PAID to negotiate a sale of White Oak at a price below fair market value. As with the first case, we believe that attracting a move-in company from Bucks County to the American Street corridor and the company's willingness to invest in the project and the new job creation will justify the financial assistance of a reduced land cost. These are very similar bills, I think, both 19 and Allegheny and American and Montgomery. It's the same concept. It's vacant land acquired by the City either through sheriff's sale or condemnation, a company we're trying to retain in the area or attract to area and one of the financing tools we're using is reducing the land price. And both sites, as 10 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS Councilwoman Miller reminded me, I forgot to mention, both sites are in the Keystone Opportunity Zone. So we ask that the Committee consider the Bill favorably and that Rules of Council be suspended to permit First Reading at the next regularly scheduled meeting of Council. And thank you for the opportunity to testify. And I would be happy to answer any questions you may have.
Mr. Deegan, just one question relative to the first bill which we've sold the 5.4 for $3.75 million, which is a pretty good price for vacant land in that particular area.
On the second bill no number. Is there any reason why we haven't --
I think the 3.75 million in the first case is based on the total cost of construction of the --
Oh, I'm sorry. Okay. 11 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS
I misread that. I'm sorry. So both of them are just authorizations to proceed to negotiate a sale.
And try and give them reduced land costs. I should have put in Bill No. 020347. We estimate this is probably going to be close to a million dollar facility because it's going to be 15,000, probably close to $100 a square foot because of the refrigerated and freezer space needed for ice storage.
I'm sorry, I misread the testimony. I thought the sale price was 3.75. I see now you're just going to -- we're authorizing the negotiation of the sale.
Okay. Thank you. Any questions for Mr. Deegan? (No response.)
Ken, please. 12 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS
Mr. Chairman, Members of the Committee, this bill will permit a property to be sold. The Department of Public Property supports the measure, and accordingly, I ask that the Committee consider this bill favorably. Thank you, and I'll be happy to answer any questions.
Thank you very much. Any questions for this witness? (No response.)
Seeing none, that will conclude the business of the Public Property and Public Works Committee. - - - 13 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Tuesday, June 4, 2002 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 02312, 020347 - - - PRESENT: JAMES F. KENNEY, Chair JANNIE L. BLACKWELL, Vice Chair BLONDELL REYNOLDS BROWN DARRELL L. CLARKE DONNA REED MILLER MICHAEL A. NUTTER - - - 14 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS
We will no 3 convene a public meeting. The Chair recognizes Councilmember Miller for a motion on Bill No. 020312.
Thank you, Mr. Chairman. I move that Bill No. 020312 be reported out of this committee with a favorable recommendation and that the Rules of Council be suspended so as to permit First Reading at our next session.
There are none opposed. Bill No. 020312 will be reported out of this Committee favorably. A request will be made for rule suspension to allow for First Reading at our next Council Session. The Chair recognizes Councilman Rizzo 15 6/4/02 - PUBLIC PROPERTY AND PUBLIC WORKS for a motion on Bill No. 020347
I move that Bill 4 No. 020347 be reported out of committee with a favorable recommendation, with a recommendation that the Rules of Council be suspended so as to permit First Reading of this bill at our next Session of Council. (Duly seconded.)
It's been moved and seconded. All in favor? (No response.)
There are none opposed. Bill No. 020347 reported out of this committee favorably. A request will be made for rule suspension to allow first reading at our next council session. That concludes the business of the Public Property and Public Works Committee. Thank you for your attendance. (Committee proceedings end at 10:44 a.m.) - - - 16 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee on Public Property and Public Works of Tuesday, 6/4/02, are contained fully and accurately in the stenographic notes taken by me, and that this is a true and correct transcript of same. _______________________________, Josephine Cardillo Registered Professional Reporter and Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)