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Minutes

Committee Hearing, June 6, 2005

Philadelphia City Council Committee HearingsJun 6, 2005

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COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON RULES - - - Monday, June 6, 2005 10:30 a.m. - - - Room 400, City Hall Philadelphia, Pennsylvania - - - BILLS NO. 050302, 050346, 050364, 050365, 050366, 050367, 050368, 050370, 050372, 050373, 050380, 050381, 050382, 050385, 050386, and 050414 - - - PRESENT: COUNCILWOMAN ANNA C. VERNA, President COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DAVID COHEN COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILMAN FRANK DiCICCO COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN DARRELL L. CLARKE COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2

President Verna

Good morning, everyone. I am sorry, there is entirely too much noise. Those having conversations, I would suggest you do it in the corridor, please. Thank you. This is the Public Hearing of the Committee on Rules. I would like the record to reflect that we do have a quorum. To my immediate left is Councilman Kelly, to his left is Councilman Cohen, to my immediate right is Councilwoman Miller and Councilman Kenney. And I see that Councilwoman Brown is on the phone, but she is here. I would ask Ms. Murray to please read the title of Bill No. 050302.

The Clerk

Bill No. 050302, an Ordinance amending Title 14 of the Philadelphia Code entitled "Zoning and Planning," by providing for new special district controls for the Girard Avenue area, under certain terms and conditions.

President Verna

Good morning. Please identify yourself for the record and 3 BILL NO. 050302 - 6/6/05 proceed with your testimony.

Mr. Thomas Chapman

Good morning, Madam President and members of the Rules Committee. My name is Thomas Chapman, I am the Director of the Development Planning Division for the City Planning Commission, and I am here today to testify on Bill No. 050302. Councilman Clarke introduced this bill on April of this year. This bill is 11 an amendment to the Philadelphia Zoning Code 12 that would create a zoning overlay for a 13 portion of Girard Avenue. 14 The controls set forth in this bill 15 would be applicable to all commercially zoned 16 property with frontage on Girard Avenue, from 17 the 2500 block to the 3200 block, inclusive. 18 The following uses would be 19 prohibited in all commercially zoned 20 properties: Auto repair shops; the 21 installation of automobile, boat, motorcycle or truck parts; retail sale of bakery goods, confectionary goods, fruits, vegetables, or groceries where the use exceeds a thousand square feet of floor area; the retail sale of 4 BILL NO. 050302 - 6/6/05 automobiles; retail sale of drugs or cosmetics; retail sale of variety store merchandise; clubhouses, lodges, and fraternity houses. It would further prohibit businesses or professional offices and the personal treatment of patients when occupying the first floor of the building. This bill would also require any newly erected buildings to have no setback from the street line of Girard Avenue. The Planning Commission at its meeting of May 12, 2005, considered Bill No. 15 050302 and requested that the bill be tabled for further study. That concludes my testimony, and I would be happy to answer any questions of the committee.

President Verna

Mr. Chapman, did the Planning Commission have any role in drafting this bill?

Mr. Chapman

No, we did not.

President Verna

It is my understanding that this bill, which is, 5 BILL NO. 050302 - 6/6/05 essentially, a zoning overlay, would prohibit a number of uses in a special control district. Do many of these uses currently exist?

Mr. Chapman

Along this stretch of Girard Avenue, I really couldn't answer that question, Madam President. I might have to defer that one to Councilman Clarke.

President Verna

The record will also reflect that Councilman Clarke has now joined the committee. Councilman Clarke.

Councilman Clarke

Thank you. Thank you, Madam President. Good morning.

Mr. Chapman

Good morning.

Councilman Clarke

Madam President and to those interested parties, as you may know, Girard Avenue is currently under the process of hopefully some redevelopment. There is a substantial amount of activity proposed and currently taking place around this commercial corridor. There have been some concerns raised in the past about the potential use of some of 6 BILL NO. 050302 - 6/6/05 the parcels or stores on the avenue. What we're attempting to do is to, essentially, give the community and the business corridor an additional voice. Some of the zoning currently on the avenue could potentially authorize some developments that may not be conducive to what it is the community is trying to do up there. This particular bill, while placing certain prohibitions in addition to what's currently in place, does not prohibit any developer or development from going to the Zoning Board and getting a variance. But this just adds another level of process that, hopefully, community members will be able to be involved in, if there is something that's not conducive to what it is we are attempting to do. So that's why we are attempting to put this overlay in place.

President Verna

Thank you, Councilman. The Chair recognizes Councilman Kelly.

Councilman Kelly

Yes. I have a 7 BILL NO. 050346 - 6/6/05 question for Councilman Clarke. I just want to know how many businesses are currently doing business in that Girard Avenue strip? Are they going to be grandfathered in?

Councilman Clarke

Yes.

Councilman Kelly

They would be grandfathered in?

Councilman Clarke

Yes.

Councilman Kelly

Thank you.

President Verna

Are there any other questions from members of the Committee on this bill? Do we have anyone to testify on this bill? Seeing no one, I would ask Ms. Murray to please read the title of Bill No. 18 050346.

The Clerk

Bill No. 050346, an Ordinance amending Section 14-1629 of the Philadelphia Code entitled "Yorktown Special District Controls," by specifically amending Section 14-1629, Subsection 3, entitled "district Boundaries," all under certain terms and conditions. 8 BILL NO. 050346 - 6/6/05

President Verna

Please proceed.

Mr. Thomas Chapman

Good morning once again, Madam President and members of the Rules Committee. Once again, for the City Planning Commission, my name is Thomas Chapman. Councilman Clarke introduced Bill 9 No. 050346 on April 28 of this year. This bill is an amendment to the Philadelphia Zoning Code that would extend the boundaries of an existing overlay known as the North Central Community Special District Controls. This bill would add the area generally bounded by Turner Street, Master Street, Hutchinson Street, and 11th Street to the existing area of controls. The North Central Community Special District Control section of the code prohibits multiple-family dwellings, apartment houses, tenement houses, student housing which is not owner occupied, and fraternity or sorority houses. Currently this area is predominantly zoned R-9A residential, which does not permit 9 BILL NO. 050346 - 6/6/05 multiple-family occupancy as a matter of right. My understanding in discussing this bill with Councilman Clarke is that these amendments, as well as the original overlay, were done in response to a legitimate community concern regarding student housing in the area, in this area of the city. This area of the city is in a close proximity to Temple University. The Planning Commission had previously considered the subject matter of this bill at its meeting of October 14, 2003, and had recommended that the bill not be approved. Thank you.

President Verna

How many properties will be affected by the expansion of the boundaries of the Yorktown Special Control District, do you know?

Mr. Chapman

No, Madam President, I am afraid I don't know. I believe that the expansion is approximately eight to ten blocks.

President Verna

Mr. Chapman, what 10 BILL NO. 050346 - 6/6/05 do you mean when you say the area is predominantly zoned R-9A? Do you mean the existing special control district or the expanded district?

Mr. Chapman

I mean both, Council President.

President Verna

Well, if these controls exist in the adjacent area, what reason is there not to expand the district?

Mr. Chapman

I'm not sure I understand your question.

President Verna

If the controls exist in the adjacent area -- do the controls exist in the --

Mr. Chapman

Yes, they do. Yes.

President Verna

Okay. Then my question to you is, if in fact the controls exist in the adjacent area, what reason is there not to expand the district?

Mr. Chapman

Well, I am sure that Councilman Clarke's purpose in expanding the district is to extend the same controls to the expansion area that are in existence for the existing area and to offer that area the same 11 BILL NO. 050346 - 6/6/05 protections that are already in place.

President Verna

But you are saying that City Planning is not recommending that the bill be approved.

Mr. Chapman

That's correct.

President Verna

And I am asking why? If in fact the controls actually exist presently in the adjacent area, what reason can you give us not to expand the district?

Mr. Chapman

It's our position that the R-9A zoning in this area already prohibits apartment houses, student housing which is not owner occupied, tenement housing, and multiple-family occupancy. My understanding from discussing this legislation with Councilman Clarke in the past is that, he recognizes that it is his belief that having this overlay will add an additional layer of controls for this area, making it even more difficult for someone to establish one of these type of occupancies. And our position is that those 12 BILL NO. 050346 - 6/6/05 controls already exist. That rather what maybe should happen in this area is that there be a concerted effort to enforce the existing provisions of the Zoning Code.

President Verna

The Chair recognizes Councilman Clarke.

Councilman Clarke

Thank you, Madam President. Mr. Chapman, I'm not going to shoot the messenger. But do you believe that Yorktown, Peoples Village, and Jefferson Manor are probably some of the most stable neighborhoods east of Broad in North Philadelphia?

Mr. Chapman

Absolutely. Not doubt about it.

Councilman Clarke

Don't you also believe that we probably should maintain that character?

Mr. Chapman

Yes, sir.

Councilman Clarke

Do you believe that the enforcement on the existing zoning classification is essentially nil? It is more or less driven by a call 13 BILL NO. 050346 - 6/6/05 from a community resident? We don't currently have enforcement officers going around checking to see if people have converted properties?

Mr. Chapman

I would agree with that. It is, essentially, complaint-driven.

Councilman Clarke

So if your position is that we should, essentially, rely on the existing zoning classification, the likelihood is that we are going to continue to have individuals or developers who are cutting up that very, very, very pristine community, I will even use that terminology, because I think that is a pristine community, and continue to create student housing?

Mr. Chapman

Without a strong enforcement effort, without a concerted enforcement effort in this area, I would have to agree with you.

Councilman Clarke

So given the fact that we probably don't have the level of enforcement that should take place, my option, along with the community -- because the community participated in pulling this 14 BILL NO. 050346 - 6/6/05 legislation together -- would be to increase the level of requirement by the developer to ultimately get zoning. That's what we are attempting to do, short of having the appropriate enforcement.

Mr. Chapman

I understand your position, sir, Councilman.

Councilman Clarke

Okay. Well, there is currently, if you can check this out, there's currently a property on 12th Street, I believe it is just south of Jefferson, that is being converted, and I don't recall ever seeing a zoning notification. So if you can track down one of those enforcement officers and ask them to go out and look at that, because I am sure they haven't got proper zoning notification. It is being converted as we speak.

Mr. Chapman

12th and where, Councilman?

Councilman Clarke

It is on 12th Street, just south of Jefferson. It is actually in the rear of a cul-de-sac. The front of the property is on the cul-de-sac. 15 BILL NO. 050346 - 6/6/05 And the rear, they are taking the garage out and they are converting it into an apartment. And I am willing to bet that there has been no 5 zoning and no building permits.

President Verna

Thank you. Are there any other questions or comments from members of the committee? Seeing none, I would ask anybody else like to testify on this bill?

Mr. Chapman

Thank you.

President Verna

Mr. Chapman, you can stay there. There are three seats. Good morning. Kindly identify yourself for the record.

Ms. Barbara King

Good morning, my name is Barbara King, and I am a resident of Jefferson Manor. And we have written a number of letters to Councilman Clarke asking him to straighten out the boundaries of Jefferson Manor. The way this bill is written up, the townhouses were built in 1958, and it was two sections. And all of the sudden our section 16 BILL NO. 050346 - 6/6/05 is not included with the other section of Jefferson Manor. We need to be protected by the special control district. At present, the enforcement policy under L&I is not protecting us. And this is the first time I ever seen this gentleman, and I don't understand why he is speaking for our community.

President Verna

Thank you very much. Any questions or comments from the committee of this witness? Thank you for coming in to testify.

Ms. King

Well, I would like to know what the results is going to be before I leave.

President Verna

We have several bills that are listed, and at the conclusion of the hearing the committee will make its determination. Or you could call Councilman Clarke's office later in the day, since it is his bill.

Ms. King

Can I ask, what does this 17 BILL NO. 050346 - 6/6/05 gentleman have to do with our communities?

President Verna

He makes recommendations; he is from City Planning.

Ms. King

You will be hearing from us.

President Verna

Do we have anyone else to testify on this bill? Seeing no one, I would suggest that Ms. Murray please read the title of Bill No. 11 050363.

The Clerk

Bill No. 050363, an Ordinance approving the eighth amendment of the redevelopment proposal for the Haddington Urban Renewal Area, Unit No. 1, being the area beginning at the intersection of the northerly side of Parrish Street and the westerly side of 52nd Street, including the eighth amendment to the Urban Renewal Plan and the First Amendment to the Relocation Plan, which provides, inter alia, for the additional land acquisition of approximately four properties for residential and related uses; the provision of certain relocation services, as required by law; and declaring that 18 BILL NO. 050363 - 6/6/05 condemnation is not imminent with respect to this project.

President Verna

All right. Are we going to hear from Mr. Wetzel or someone from his office? Good morning.

Mr. Herbert E. Wetzel

Good morning.

President Verna

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

Mr. Wetzel

I promise I'm not reading everything in here. Good morning. My name is Herbert Wetzel. I am Executive Director of the Redevelopment Authority of City of Philadelphia. Madam Chairperson and members of the committee, I am here to speak in support of Bill No. 050363, which is the eighth amendment of the redevelopment proposal and the eighth amendment of the urban renewal plan for the Haddington Unit Urban Renewal Area. This bill would authorize the Redevelopment Authority to acquire four 19 BILL NO. 050363 - 6/6/05 properties, four vacant structures will be acquired on behalf of Mr. Carmel Human Services Corporation in partnership with Jacques Ferber. These structures will be substantially rehabilitated and sold to low- and moderate-income first-time home buyers. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050363 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

Thank you. Mr. Wetzel, what is the estimated cost of acquisition for the four properties?

Mr. Wetzel

The estimated acquisition budget is $112,600.

President Verna

I'm sorry?

Mr. Wetzel

$112,600.

President Verna

Am I correct in assuming that NTI bond proceeds are being used for this acquisition?

Mr. Wetzel

That is correct, Madam President. 20 BILL NO. 050363 - 6/6/05

President Verna

What is the source of funding that will be used for the development phase of this proposal, and will that funding come from the Year 31 CDBG budget?

Mr. Wetzel

My understanding is that this project is going to use the HRP program, the Homeownership Rehab Program, that's administered by the Redevelopment Authority. It could come from Year 31, it could come from Year 30 money, depending on if there is any Year 30 money left.

President Verna

Great. Mr. Wetzel, can you please explain to this committee what is meant in the last clause in the title of this and all condemnation bills declaring that condemnation is not imminent with respect to the project?

Mr. Wetzel

Yes, Council President. What's before this body in the form of an ordinance is a redevelopment proposal that was adopted by the Redevelopment Authority's Board, which was reviewed by the Planning 21 BILL NO. 050363 - 6/6/05 Commission and is in front of you today. It adopts the proposal, but does in the require the Redevelopment Authority to acquire these properties. The act of acquisition has to be an act taken by the Board of Directors of the Redevelopment Authority. So Council is authorizing -- or, by authorizing this proposal allows the authority to take that action, but doesn't require or mandate that that action be taken. And there are cases where, for example, Council President, that the project doesn't have all its financing in place, and there may be a desire to wait until the project is fully financed before you would acquire the properties.

President Verna

I guess for the benefit of those in the audience, too, how is the declaration of taking different from what we are doing here today in Council?

Mr. Wetzel

The declaration of taking, which would be approved by the Board of Directors of the Redevelopment Authority, 22 BILL NO. 050363 - 6/6/05 is the actual act of using its eminent domain powers to acquire the real estate. There are other actions that are taken prior to that, including an appraisal of the property, allowing the owner to be accompanied by the appraisal, an offer letter, and other acts taken by the authority. But the declaration of taking itself is the act of the authority using its eminent domain power to acquire the real estate.

President Verna

Can you define what a moderate-income buyer is according to the RDA? What is the upper income that a buyer could have and still qualify for a property?

Mr. Wetzel

Council President, for the specific dollar amounts, we will get back to you. But in the way the city structures its CDBG program, 80 percent of median or less is considered low and moderate. In many cases, low income is around 50 percent of median, in between 50 and 80 is moderate income. 23 BILL NO. 050363 - 6/6/05 And if you would like the specific dollar amounts for the current year for what those represent, depending on family size, we can make sure you have a copy today.

President Verna

I would appreciate that. Is the income criteria the same for all affordable housing developments funded through the RDA?

Mr. Wetzel

The 80 percent of median is tied to all federal funding that the city has adopted, when you adopt the consolidated plan. Occasionally the Redevelopment Authority will receive or have bond proceeds that have a different criteria and, essentially, consider moderate income up to 115 percent of median.

President Verna

Thank you. Any questions of Mr. Wetzel from members of the committee? The Chair recognizes Councilman Cohen.

Councilman Cohen

You stated that 24 BILL NO. 050363 - 6/6/05 you have put aside a certain sum of money, I think $112,000. How was that dollar amount arrived at?

Mr. Wetzel

There is an estimate of the value of the real estate. There are also the advertising costs, the appraisal costs. There is a contingency of 35 percent in the event that there is a negotiated settlement. There are monies set aside for legal fees and other items that all together compose that number. So it may not cost $112,600 in the end; it may be less than that or it could be more than that.

Councilman Cohen

It could be more?

Mr. Wetzel

Yes, it could be.

Councilman Cohen

And from whom do you get approval for that larger sum, if needed?

Mr. Wetzel

For additional sums of money?

Councilman Cohen

Yes.

Mr. Wetzel

We would have to come back and get approval from the Administration 25 BILL NO. 050363 - 6/6/05 to spend any additional dollars over that amount.

Councilman Cohen

Is there a document which shows the present amount?

Mr. Wetzel

Yes, there is.

Councilman Cohen

Could we have a copy of that document? Could you send it to the President, so she can make it available?

Mr. Wetzel

Yes, we can get you the detailed budget that's behind that number.

Councilman Cohen

And suppose the number is lower than that?

Mr. Wetzel

Then that money gets reprogrammed and not used. This money, I believe, is in Councilman Nutter's district, so there is a budget for his district. And, so, any unused money then goes back into that budget to be used for future acquisitions.

Councilman Cohen

What about this budget per district; how is that arrived at?

Mr. Wetzel

I'm sorry, Councilman?

Councilman Cohen

How is the budget for each district arrived at? BILL NO. 050363 - 6/6/05

Mr. Wetzel

That's in the NTI program statement and budget. There is a detailed breakdown of how the acquisition money was divided among the various districts.

Councilman Cohen

How it was divided. By whom was it divided?

Mr. Wetzel

There is three categories, Councilperson: High, districts that had a high level of vacancy and blight; a moderate level; and I'm not quite sure what the other one was, but let's just say it was a very low level of vacancy and blight. And there was a formula developed to divide the acquisition money among the districts based on that calculation.

Councilman Cohen

Who developed the formula?

Mr. Wetzel

Councilperson, I believe it was the NTI office that put that together.

Councilman Cohen

Could we have some document showing that, showing how it was --

Mr. Wetzel

Sure. 27 BILL NO. 050363 - 6/6/05

Councilman Cohen

Could that be sent together with the document establishing the sum of money allotted?

Mr. Wetzel

Right. That document is contained in the program statement and budget. And we can find the reference page in the program statement and budget that each of you have received.

Councilman Cohen

All right. I would be pleased if you would do that. Thank you very much.

Mr. Wetzel

You are welcome, Councilman.

President Verna

Are there any other questions from members of the committee of Mr. Wetzel? Do we have anyone else to testify on this bill?

President Verna

Please approach the witness table. And Doris, you can also approach the witness table. Good morning. Kindly identify yourself, sir, for the record, and proceed with your testimony. 28 BILL NO. 050363 - 6/6/05 REV. ALBERT F. CAMPBELL: I am Albert F. Campbell, Pastor of the Mr. Carmel Baptist Church in West Philadelphia, which is part of the Haddington district. And President Verna and members of the Rules Committee, I am pleased and delighted to have the opportunity to address this group on behalf of the Mr. Carmel Baptist Church, which is currently in the process of redevelopment of its own facilities and, hopefully, the acquisition of other housing locations that will help to expand the services that we already render in this community. Mr. Carmel Baptist Church is 125 years old in that location, in Haddington. And we have invested just during my own 39 years of tenure there something close to 5 or 6 million dollars in redevelopment. We have built Mt. Carmel Gardens, which is a low- and moderate-income housing development adjacent to our church facilities. We have provided counseling for victims of alcohol and drugs and HIV/AIDS. We provide 29 BILL NO. 050363 - 6/6/05 after-school programs for youngsters in reading, writing, and arithmetic, and in music, both voice and instrumental. And we sponsored a successful charter school, at least it is successful up to this point, called Discovery Charter School. So that we feel we have established an important and meaningful track record in the Haddington area. And, so, our desire is to expand our facilities in order to expand our services. But in light of the bills, two of the bills, 050363 and 050366, which have mentioned eminent domain, it is our desire to redevelop the spaces that are made available to us and the houses that are made available to us; but also to rehabilitate other housing, make other housing renewable for the benefit of those persons who may be relocated, who will want to continue to live in the immediate area. And they will be provided with virtually new housing. And we feel that we have the entity, 30 BILL NO. 050363 - 6/6/05 we have Mt. Carmel Human Development Corporation, we have access to responsible legal counsel and financial counsel that will help to stabilize the community. That's our desire, ultimately, to help stabilize what is a changing, if not deteriorating, neighborhood and community. And we think we can play an important role in making that happen, stabilization, both for the present and the long-term future of the neighborhood and community. And I am here on behalf of Mt. Carmel Baptist Church.

President Verna

Thank you very much, Reverend. Thank you. Good morning, please identify yourself for the record.

The Witness

Hello. I can't hear you.

President Verna

I said, please identify yourself for the record.

Ms. Doris Warren

My name is Doris Warren, 5711 Race Street.

President Verna

Are you in favor 31 BILL NO. 050363 - 6/6/05 of the passage of this bill?

Ms. Warren

I know nothing about it. I am here for information. This is all that I know.

President Verna

Oh, she received a letter. Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. Madam Chair, I would have to believe that the witness is probably holding up a notice that she had received regarding this property. The documents that we have as a part of this package show 5711 Race Street presently as a vacant structure. And, again, as Reverend Campbell has alluded out, this would be part of a revitalization opportunity for the neighborhood. I do not believe that I know the lady individually, or what her circumstance or situation may be. But I fully support both bills, 363 and, I believe it is, 366, as possibly some of the most important work that 32 BILL NO. 050363 - 6/6/05 will be done in this part of West Philadelphia. I would be glad to have a conversation, or if she needs to talk to the Redevelopment Authority further, about the matter involving this property. But it is listed as a vacant structure and clearly is in need of rehabilitation. Thank you, Madam Chair.

Reverend Campbell

Madam President, I would be happy for us to sit together and talk about this.

President Verna

That would be wonderful. And Councilman Nutter just offered his time and service. Thank you, Reverend. Do we have anyone else to testify on Bill No. 050363? Anyone else to testify on Bill No. 050363? Seeing none, no one, I would ask Ms. Murray to please read the title of Bill No. 22 050364.

The Clerk

Bill No. 050364, an Ordinance approving the sixteenth amendment of the redevelopment proposal for the South 33 BILL NO. 050364 - 6/6/05 Central Urban Renewal Area, being the area beginning at the intersection of the southerly side of Washington Avenue projected and the easterly side of Delaware Avenue, including the sixteenth amendment to the urban renewal Plan and the twelfth amendment to the relocation plan, which provides, inter alia, for the additional land acquisition of approximately three properties for residential and related re-uses; the provision of certain relocation services, as required by law; and declaring that condemnation is not imminent with respect to the project.

President Verna

Mr. Wetzel.

Mr. Herbert E. Wetzel

Good morning. My name is Herbert Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. Madam Chairperson and members of the committee, I am here to speak in support of Bill No. 050364, the sixteenth amended redevelopment proposal and the sixteenth amended urban renewal plan for the South Central Redevelopment Area and the South 34 BILL NO. 050364 - 6/6/05 Central Urban Renewal Area. This bill will allow the Redevelopment Authority to acquire a total of three properties, vacant structures, to support new residential project. The planned amendment includes properties to be acquired under the Neighborhood Transformation Initiative. This ordinary provides for the acquisition of three properties on behalf of Habitat for Humanity. Habitat will rehabilitate the three vacant structures on South Colorado Street for sale to very-low-income households. This new development in South Central will support prior development by Habitat and will not require additional public subsidy. This project was recommended in the Office of Housing and Community Development's RFP for the acquisition and development of homeownership. The estimated acquisition costs for this project is $250,000. Madam Chairperson and members of the committee, I respectfully request favorable 35 BILL NO. 050364 - 6/6/05 consideration of Bill No. 050364, and would ask for the suspension of Council Rules to allow first reading on June 9, 2005. Thank you.

President Verna

Thank you, Mr. Wetzel. I am rather curious, why is it that you have chosen to reveal the cost of acquisition for this bill and two others, but for the vast majority of the bills before us you have included no testimony about the cost of acquisition?

Mr. Wetzel

You have got a very good eye, Council President, and I would be glad to include it in all in the future. And I can also probably tell you on the ones that don't have it in the actual testimony, I believe I will either get you the answer today or I will be able to tell you now because I may have it in my material. In the future, I will be cognizant of and we will include the cost of acquisition in the testimony directly.

President Verna

Thank you. 36 BILL NO. 050364 - 6/6/05 Is the cost identified for acquisition just the fair market value compensation for the land, or does it include all RDA costs for legal and advertising, as well?

Mr. Wetzel

Yes, Council President, the detailed budget that backs up each one of these includes the estimate of the fair market value of the real estate, but also the additional costs associated with acquisition; including appraisals, title reports, advertising costs, potential legal fees, and a contingency fund in the event that there is a negotiated settlement.

President Verna

Can you tell me what the average price of homes in the nearby area would be?

Mr. Wetzel

Council President, I can't off the top of my head. But we will get that detail from the budget that was put together and deliver it to you.

President Verna

Very well. This is my bill. And I will not at this time, I will repeat, at this time, support the 37 BILL NO. 050364 - 6/6/05 declaration of taking for 1024 South Colorado Street. Do we have any questions from members of the committee? The Chair recognizes Councilman Cohen.

Councilman Cohen

I haven't heard in any of the bills presented by you, Mr. Wetzel, anything about an investigation as to how the community feels. Are these places without other communities or other people going to be affected by these various condemnations or takings or improvements?

Mr. Wetzel

Councilman, my understanding in this particular instance, and in many of these instances, this is three vacant shells. I think the Council President has asked us not to acquire one of those three. Am I correct, Council President?

President Verna

Yes. That's 1024 South Colorado Street. And I can only talk for my bill, Councilman -- 38 BILL NO. 050364 - 6/6/05

Councilman Cohen

I am not thinking of any particular bill. I am just noting --

President Verna

If I can finish, please.

Councilman Cohen

Yes.

President Verna

I can tell you that both SOSNA and the ward leader have agreed to what we are doing here.

Councilman Cohen

I am just wondering, don't you, as a matter of course, document your efforts made to inform community residents in case any of them have any knowledge? I am content that the area covered by the Council President is fully dealt with, but I am thinking of other areas. You have covered quite a wide area here this morning.

Mr. Wetzel

Councilman, what we do is, we rely on the other city agencies that are asking for this acquisition and District Councilpeople to inform us as to whether or not there are any issues with the neighborhood. We would not proceed if the 39 BILL NO. 050364 - 6/6/05 Councilperson or the entity that's asking that we acquire these, if they felt that there wasn't some sense of support for this. So we do rely on others, Councilman, in order to put this package together.

Councilman Cohen

Well, do you indicate somewhere the extent on which you rely and how deeply you question whoever speaks on behalf of the community to make sure yourself that the investigation has covered enough ground? If I had a conference with each member of City Council to know that each one did a thorough investigation and had full concern, that would be one thing. But District Council members are quite busy, and they may or may not have the time nor the inclination for whatever reason to make a full investigation. I am interested in my duty to protect constituents much more than I am interested in the particular rights of the Council member. (Applause.) 40 BILL NO. 050364 - 6/6/05

Mr. Wetzel

I understand, Councilman, and my answer is the same. We are relying on the different city entities that make these requests and working closely with District Councilpeople. That's the extent of our investigation.

President Verna

And, Councilman, I am sure that before a Council member introduces an ordinance that's in his district, he certainly wants to be completely aware of --

Councilman Cohen

I don't like to disagree with Madam President --

President Verna

-- of how that affects the community.

Councilman Cohen

There is a difference of opinion with respect to that, particularly on several occasions Council members get very busy, and they may or may not have the time. I think it is the duty of the acquiring agency to make certain, not to depend on unknown factors involving other people's decisions. And, to me, it has always 41 BILL NO. 050364 - 6/6/05 been fundamental that the acquiring agency must make an independent investigation. Has that matter been researched by Redevelopment?

Mr. Wetzel

No; but I would gladly look into it for you, Councilman

Councilman Cohen

Well, I would like you to and would be requesting independently a recommendation from the City Solicitor

Mr. Wetzel

Thank you.

President Verna

And I think that City Council is the authorizing agency, that's why we are here today.

Councilman Cohen

I'm not trying to lessen the role of the Council member, but I think it gives the Council member full protection.

President Verna

The Chair recognizes Councilman Kelly.

Councilman Kelly

Yes. Mr. Wetzel, I just want to know, these properties, they are not vacant, are they? Or are they vacant?

Mr. Wetzel

In this ordinance, yes, 42 BILL NO. 050364 - 6/6/05 they are.

Councilman Kelly

They are vacant. And I understand that they are being developed by Habitat?

Mr. Wetzel

Yes. Habitat for Humanity Philadelphia.

Councilman Kelly

In other words, they have the properties in hand and they are doing the restoration or all the improvements to these properties?

Mr. Wetzel

Well, they don't have them in hand. We have to carry out this ordinance, and then we will convey them to habitat. Habitat has done a number of rehabs. And I think one of the fascinating things with Habitat is that the buyer, the person that's going to buy, actually has to work on the house and help rehab the house they are going to live in. It is a very exciting program.

Councilman Kelly

Thank you.

President Verna

Thank you. Are there any other questions from members of the committee? 43 BILL NO. 050365 - 6/6/05 Do we have anyone else to testify on this bill? Seeing no one, I would ask Ms. Murray to please read the title of Bill No. 6 050365.

The Clerk

050365, an Ordinance 8 approving the First Amendment of the redevelopment proposal for the 51st and Baltimore Avenue Urban Renewal Area, being the area in and around the 5000 and 5100 block of Baltimore Avenue at 51st Street, including the First Amendment to the urban renewal plan and the relocation plan, which provides, inter alia, for the additional land acquisitions of approximately properties for institutional 17 and related uses; the provision of certain 18 relocation services, as required by law; and 19 declaring that condemnation is not imminent 20 with respect to the project. 21

President Verna

Thank you. The 22 Chair recognizes Councilwoman Blackwell. 23

Councilwoman Blackwell

Thank you, 24 Madam President. We strongly support this bill and 44 BILL NO. 050365 - 6/6/05 its intended use; that is, the redevelopment of this stretch of Baltimore Avenue supported by BARC, Baltimore Avenue Redevelopment Corporation. Almost ten years ago we first met with Bishop Patterson to create this urban renewal area for Mercy Health Center and made a commitment to redevelop this stretch of Baltimore Avenue with the social service theme and recognition of the growing needs of families in adjacent blocks. We welcome the University area residents and institutions, as well as Cedar Park neighbors who may want to deal with the creation of retail shops and push the real estate market. We would like, however, to note that in the 5100 and 5200 blocks of Baltimore Avenue, the churches and pastors in that area have long had a stewardship about what happens. And we hope that the faith-based community and Cedar Park neighbors and others can work together with regard to the future of 45 BILL NO. 050365 - 6/6/05 this area. We applaud faith-based redevelopment plans and it reminds us that this area is a gateway to Southwest, a section of the city that has high rates of disease and unemployment. We believe that this redevelopment proposal will provide a balance for the existing residents, as well as new residents, so that we maintain a diverse and equitable community now and into the future. Thank you.

President Verna

Thank you. The Chair recognizes Mr. Wetzel.

Mr. Herbert E. Wetzel

Good morning. My name is Herbert Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. Madam Chairperson and members of the committee, I am here to speak in support of Bill No. 050365, which is the first amendment of the redevelopment proposal and the first amended urban renewal plan for the 51st and Baltimore urban renewal area. This bill would authorize the 46 BILL NO. 050365 - 6/6/05 Redevelopment Authority to acquire vacant structures and lots. 21 properties comprised of vacant structures and 15 lots will be 5 acquired on behalf of the Baltimore Avenue 6 Redevelopment Corporation, Incorporated, or BARC. These structures will be demolished and on the assembled land will be a newly constructed with 38,000 square feet community development center, which will be leased by the Richard Allen Preparatory Charter School and shared for night and weekend adult and continuing education programming. Three vacant structures will be acquired on behalf of the Peoples Baptist Church to be fully rehabilitated and used as a community center. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050365 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

Mr. Wetzel, I am assuming that all of the properties that we're 47 BILL NO. 050365 - 6/6/05 referring to in this bill are vacant? AUDIENCE MEMBERS: No. No. 4

President Verna

Just a moment, please.

Mr. Wetzel

The data that we have indicated that all the structures were vacant. AUDIENCE MEMBERS: Do your homework.

President Verna

So how many properties are we talking about?

Mr. Wetzel

There's properties, 12 Council President. There are 15 lots and 9 13 structures. 14

President Verna

You know, the 24 15 properties to be acquired in this bill 16 represent one of the larger proposed takings 17 we're considering today. 18 I think the total under 19 consideration is approximately 185 properties; 20 is that correct? 21

Mr. Wetzel

That's correct. 22

President Verna

That makes me 23 wonder how quickly the Redevelopment Authority 24 can process these bills. If we approved these bills today and 48 BILL NO. 050365 - 6/6/05 the Mayor were to sign them this month, when do you reasonably anticipate the Redevelopment Authority will have these properties in their inventory for disposition to redevelopers?

Mr. Wetzel

Council President, approximately nine months from the time the Mayor approves the ordinance.

President Verna

I know that you would probably not have this answer off the top of your head. But of the more than 5,000 parcels that Council has approved for acquisition since 2002, how many have actually been acquired by the RDA and how many have been disposed of to the intended recipients?

Mr. Wetzel

I can give you a estimate.

President Verna

I know you have that information off the top of your head, I just know that.

Mr. Wetzel

Council President, I wish I did. Well over 2000 have been acquired, and I will have to find out how many have been 49 BILL NO. 050365 - 6/6/05 disposed of.

President Verna

Okay.

Mr. Wetzel

Thank you.

President Verna

What is the Baltimore Avenue Redevelopment Corporation? Who is the head of that organization? Would you take the witness table, please. Good morning, sir. Welcome. Kindly identify yourself for the record and proceed with your testimony.

Bishop Joseph D. Patterson

My name is Joseph D. Patterson. I am the former Pastor of the church at 50th and Baltimore Avenue.

President Verna

Okay. And, Bishop, you are the head of the organization?

Bishop Patterson

Yes, I am.

President Verna

Can you tell us who is the head of the Board of the Richard Allen Preparatory Charter School?

Bishop Patterson

I am.

President Verna

You are. Fine.

Bishop Patterson

When I came to that area, 50th and Baltimore, I began to 50 BILL NO. 050365 - 6/6/05 think in terms of the academics of our young people. And I developed a child care center that had over 175 children, and then we moved into the charter school area. And we now have 350 young people, with a waiting list of another 75. And that is the reason why we want to expand our facilities. I also was the builder of the wellness center at 50th and Baltimore Avenue that will be adjacent to this property.

President Verna

Thank you, Bishop. Do we have anyone else to testify on this bill? Your name, please. We will take everyone. Please. Please identify yourself, sir, for the record.

Dr. Benjamin Smallwood

I am Dr. Benjamin Smallwood. I am a consultant to the Baltimore Avenue Redevelopment Corporation, and my firm is Management and Environmental Technologies, Inc. Just to add with what Dr. Patterson said, the Baltimore Avenue Redevelopment Corporation was created in 1990, and its 51 BILL NO. 050365 - 6/6/05 mission was to combat deteriorating areas, particularly the Baltimore Avenue business corridor. In 1997, the Baltimore Avenue Redevelopment Corporation was named redeveloper of the 51st and Baltimore Avenue urban renewal area and acquired properties from 5008 Baltimore Avenue to 5038 Baltimore Avenue. Those structures were demolished and a new $3 million outpatient medical center was constructed in an area which had been heretofore considered medically underserved. In October 1998, the Samuel J. Patterson Mercy Wellness Center opened with a lease to Mercy Health Systems for 15 years, and it carries with it two 15-year options. Additionally, after the opening of the medical center, support for the Baltimore Avenue Community Development Center was requested by BARC and support was received from Councilwoman Jannie L. Blackwell. The community center will be located adjacent to the medical center on 50th and 52 BILL NO. 050365 - 6/6/05 Baltimore Avenue. The Baltimore Avenue Community Development Center will be used by a public education entity and will host evening and weekend job training, education training, and social events for community organizations, adults, and youths. The local community will be involved in the planning of the evening and weekend activities of the center. Thank you.

President Verna

Thank you, sir. Do we have any questions of the witnesses from members of the committee? Thank you very much, Bishop. Thank you very much, sir. We will now hear from members of the community, I assume.

The Clerk

Carla Brown, who has signed.

President Verna

She had called and said she wanted to testify. Can you pull the chair closer to the witness table, please, identify yourself for the record, and proceed with your testimony. 53 BILL NO. 050365 - 6/6/05

Ms. Carla Brown

My name is Carla Brown and I am a property owner in the area that they are talking about redeveloping, that they are stating that all the properties have been researched and they found that they were vacant. My property is not vacant. I am 739 South 51st Street.

President Verna

I'm sorry. 739 --

Ms. Brown

739 South 51st street.

President Verna

Now, that is a residential property?