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Minutes

Committee Hearing, June 6, 2005

Philadelphia City Council Committee HearingsJun 6, 2005

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Councilman Clarke

Let me ask you a question. If somehow your property were able to stay at that location, would you have to have a similar treatment? How would you treat?

Mr. Lon

Sure no doubt about that. That's what I said earlier.

Councilman Clarke

You would do that for an existing property?

Mr. Lon

That is what I said. If 108 BILL NO. 050367 - 6/6/05 you are to fix the property, it would be subject to the qualification required by the city, that's one thing. It is interesting thing, is that he is talking about corner. This is not corner. And if they were to take all the block -- this is at the middle of the block. If they were to take all the block, that's a different issue. So I don't even understand why this property should be subject to their job, unless they can satisfy the concept that this particular property, the engineering suggests that this should be part of their project. He is not suggesting that the whole block should be taken; he is suggesting that this particular property, which is in the middle. So they are picking and choosing, and that is not acceptable. It should not acceptable to the Council, please.

Councilman Clarke

Let me ask a question with respect to occupancy, because I think this is probably going to come up in a number of bills we hear today. And I guess 109 BILL NO. 050367 - 6/6/05 this is directed to Mr. Wetzel. In the instance where a property owner, you know, whereas the property comes to us, City Council, and says it is occupied or says it is vacant, and it is indicated on the condemnation list that it is vacant and the property owner says, well, it may be vacant, but I am currently renovating the property, how does the RDA determine whether or not there is some active renovation, rehabilitation of a building? Is there a threshold in terms of activity or building permits, or what?

Mr. Wetzel

No, there isn't. And I will tell you the reason why. The properties -- the relevancy of whether it is occupied or not is a budgetary issue. If the desire is to acquire 14 properties for a specific purpose, whether that be retail, commercial, residential, et cetera, that's the redevelopment proposal. The proposal is to acquire these properties to do a project. And, so, the relevancy has a lot to 110 BILL NO. 050367 - 6/6/05 do with cost and budgeting, not so much -- for the individual, obviously, who is doing the work and were to get a letter saying that there is an interest in acquiring the property, it is very relevant to that individual. But for the purposes of planning a project, it is not -- it is important for budgetary purposes to know how many acquisitions of properties are going to be acquired are occupied, how many are residential, how many are commercial. The other part of this is -- and I think it is a good thing that we are facing -- is that we now have a more dynamic real estate market. There was a time in which no one would come forward on many, many of these redevelopment proposals because there was no 21 value in the real estate. So to a certain degree, with a dynamic market, you heard earlier somebody acquired a property in March. Maybe they have started rehab, maybe they haven't. I don't 111 BILL NO. 050367 - 6/6/05 know if there is any way that we could tell other than going out maybe the week before we have the hearings and doing one more survey, for example.

Councilman Clarke

So with respect to the level of activity in a building, it is really not the jurisdiction of the Redevelopment Authority to determine if there is an active renovation of the building, or -- I mean, I only say that, as a Councilperson, if I have to make a decision to maybe take a property off a list or delay the condemnation, if that person is actively renovating a property, how would we know?

Mr. Wetzel

If somebody comes here and testifies that they are actively renovating a property, we could, on your behalf, do the research for you to make a determination, does it have the building permit, go out and inspect the property. I don't know if everyone on Council is aware, we could acquire the property and revest it to the owner under a rehab agreement. 112 BILL NO. 050367 - 6/6/05 Or you could say -- or you could ask us not to acquire on the commitment that the individual is going to fix it up. And you can hold them to that commitment for if down the road, six months from now, they have done nothing, you could suggest that we acquire it again. So you do have options. And, as I mentioned earlier, the approval of any one of these ordinances is not a condemnation, it is not the use of eminent domain.

Councilman Clarke

Just authorizing you to proceed?

Mr. Wetzel

It is authorizing. And as you and other Councilpeople know, we work very closely with District Councilpersons regarding properties. And in many cases, you know, we have been able to revest title to somebody who is actually doing, you know, the rehabilitation of the property.

Councilman Clarke

Okay. Thank you. Anyone else? Anymore testimony on this? Thank you.

Mr. Lon

If I may, can I ask a 113 BILL NO. 050367 - 6/6/05 question?

Councilman Clarke

Certainly.

Mr. Lon

My concern is being prejudiced. What I understand is that they pick and choose 126 South 46th. There is 124 South 46th, why isn't that on the list? Are they picking and choosing? That's what I want to know.

Mr. Stoddard

Yes, sir, we have applied for the whole block. We have applied for all of the 4600 block. And we have applied for the whole block of South 46th, between Sansom and Walnut. Maybe some of those properties did not come up today, and there are four more properties that should come up at another hearing, but we have applied for the whole block. In no way, shape, or form did we apply for one or two or pick any properties. However, let me just say this, Councilman, and to the committee, we have very sensitive about homeowners. In other words, we do this in a stratified, hopefully correct, manner, where 114 BILL NO. 050367 - 6/6/05 homeowners that live in their homes obviously are a top priority. Then there are investors that may or may not be fixing up their properties, but investors that live elsewhere. And, you know, we work with the Redevelopment Authority and with Councilpeople, with our Councilperson, to work through all those issues. But, again, obviously, since this gentleman has come today, obviously the Councilwoman and Redevelopment, we are all going to sit down and try to work something out. But we are very sensitive. And I think with absentee landlords the issue then becomes what is the fair market value, what is the price, and that is determined by an appraiser.

Mr. Lon

Councilman, with all due respect, I think that the action today is premature. I would ask that the bill be denied at this time because I think that they need to do a lot of homework before they submit that to the Council.

Councilman Clarke

Thank you very 115 BILL NO. 050367 - 6/6/05 much. Anyone else to testify on this bill? There being none, will the clerk please read the title of the next bill.

The Clerk

Bill No. 050368, an Ordinance approving the second amendment of the redevelopment proposal for the Parkside National Register Historic District Urban Renewal Area, being the area generally bounded by Parkside Avenue and Girard Avenue on the north; the Conrail freight railroad right-of-way running east of and parallel to 38th Street on the east; the railroad right-of-way line on the former Pennsylvania Railroad on the south; and Belmont Avenue on the west; including the second amendment to the urban renewal plan and relocation plan, which provides, inter alia, for the additional land acquisition of approximately 7 properties for residential and related uses; the provision of certain relocation services, as required by law; and declaring that condemnation is not imminent with respect to the project. 116 BILL NO. 050368 - 6/6/05

Councilman Clarke

Mr. Wetzel.

Mr. Herbert E. Wetzel

Good afternoon, Mr. Chairman and members of the committee. I am here to speak in support of Bill No. 050368, which is the second amendment of the redevelopment proposal and the second amended urban renewal plan for the Parkside National Register, historic district, urban renewal area. This bill would authorize the Redevelopment Authority to acquire seven properties, a total of six vacant blighted structures and one vacant lot will be acquired on behalf of Habitat for Humanity Philadelphia for future residential and related development. Mr. Chairman and members of the committee, I respectfully request favorable consideration of Bill No. 050368 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

Councilman Clarke

Thank you. Councilwoman Blackwell. 117 BILL NO. 050368 - 6/6/05

Councilwoman Blackwell

Thank you. This is a project sponsored by Habitat for Humanity. We are happy to support this project. We realize there are a small number of residents who would rather see market-rate condos, but this area at this point won't sustain investment at 100,000 or more. We are hopeful this project will give long-time renters an opportunity to become homeowners, while increasing their investment in the neighborhood where they live. Thank you very much, Mr. Chairman.

Councilman Clarke

Thank you. Is there anyone to testify on this bill?

Mr. Tim Block

Tim Block, Executive Director for Habitat for Humanity. And I have with me today Jon Musselman, my director of project planning, who will tell a little bit about the project.

Mr. Jon Musselman

We have been working with the community in the East 118 BILL NO. 050368 - 6/6/05 Parkside neighborhood for a number of years following a successful long-term development in the Cathedral Park neighborhood. And we are very happy to be able to provide the type of homeownership opportunity through rehab that residents overwhelming in the neighborhood are looking for at this time. We do have very excellent relationships with numerous community organizations, including the East Parkside Residents Association and the local churches. So we are very happy to be able to continue this partnership in the neighborhood with these additional properties.

Councilman Clarke

Thank you. Councilwoman Blackwell indicated that this process would allow, I am assuming, affordable housing to take place in this neighborhood. What's the normal median income for applicants?

Mr. Block

Councilman, the median income that we service is between 30 and 50 percent of the area median income.

Councilman Clarke

So that's low. 119 BILL NO. 050370 - 6/6/05

Mr. Block

Very low.

Councilwoman Blackwell

Very low.

Councilman Clarke

Thank you. Anyone else to testify on this bill? Thank you.

President Verna

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. 11 050370.

The Clerk

Bill No. 050370, an Ordinance approving the redevelopment proposal of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Cathedral Park urban renewal area being the area generally bounded by Girard Avenue, 52nd Street, and Lancaster Avenue; approving the urban renewal plan and determining that such plan and redevelopment proposal conform to the general locality plan and make adequate provisions for individuals, business concerns, and families who are displaced; determining the necessity for changes in and for zoning, streets, alleys, public ways, street patterns, 120 BILL NO. 050370 - 6/6/05 location and relocation of public utilities; determining that the urban renewal plan and redevelopment proposal meet all nondiscrimination requirements of federal, state, and local laws and the regulations and policies promulgated with respect thereto; declaring that certain expressly designated and provided for condemnation is not imminent with respect to the project; and declaring the redevelopment undertakings in the project to be an important part of the city's program to remove and prevent the spread of urban blight.

President Verna

Mr. Wetzel.

Mr. Herbert E. Wetzel

Good afternoon, Madam Chairperson and members of the committee. I am here to speak in support of Bill No. 050370, which is the second amendment of the redevelopment proposal and the creation of the urban renewal plan for the Cathedral Urban Renewal Area. This bill would authorize the Redevelopment Authority to acquire 22 properties. A total of 5 occupied residential properties will be acquired on behalf of the 121 BILL NO. 050370 - 6/6/05 West Philadelphia Empowerment Zone for future development. The remaining properties consist of vacant blighted structures and 8 vacant 5 lots. 6 The properties to be acquired under 7 this plan amendment are with the project 8 footprint and will be used for residential and 9 related development. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050370 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

Thank you, Madam President. This is a new project that we received, a new area we have, because it was formerly Councilman Nutter's area. However, we are happy that we have the relationship we have formed with Cathedral Park Civic Association. The president, Mrs. Minnis, is here, 122 BILL NO. 050370 - 6/6/05 who knew Lucien even before me, so we go way back. We do support this bill with the exception of 4945 and 4951, and we ask that the RDA not acquire these. And we are also asking Mr. Wetzel if he would put on the record that RDA would be willing to leave these properties out of the equation.

President Verna

And those addresses, again, are 4945 and 4951?

Councilwoman Blackwell

Yes.

President Verna

Mr. Wetzel.

Mr. Wetzel

Council President, I received an e-mail earlier today from Councilwoman Blackwell and indicated to her that the Redevelopment Authority will not proceed with the acquisition of 4945 and 4951 if this bill is approved by this body.

President Verna

Thank you. For the record, can you explain the difference between a redevelopment area and an urban renewal area?

Mr. Wetzel

Yes. A redevelopment area is an area established by the Planning 123 BILL NO. 050370 - 6/6/05 Commission. The Planning Commission under state law is the only entity, whether it is a county Planning Commission or the city's in this case, that can survey an area and make what's called a blight determination. And if the Planning Commission certifies an area as blighted, they must develop what's called a Redevelopment Area Plan. And that plan would indicate that you want residential here and commercial there and, essentially, a general plan for the area. And that is established by the Planning Commission. An urban renewal area can be the same size as a redevelopment area or it can be smaller than the redevelopment area established by the Planning Commission. So, in many cases, there are redevelopment areas such as the West Philadelphia redevelopment area, that have multiple urban renewal areas within them.

President Verna

Do you know what the West Philadelphia Empowerment Zone 124 BILL NO. 050370 - 6/6/05 proposes to do with these residential properties, and when they intend to do it?

Mr. Wetzel

I believe representatives are here today to speak to that, Council President.

President Verna

I think we ought to have that, for the record.

Ms. Eva Gladstein

Good afternoon. My name is Eva Gladstein, I am Executive Director of the Philadelphia Empowerment Zone. This project is one of several that are scheduled for housing development and housing rehabilitation in the West Philadelphia Empowerment Zone through Empowerment Zone funding, as well as funding through the Office of Housing. The plan is to do new construction on this block, which is an important gateway into this community. Right now there are a large number of vacant structures and vacant properties. It will be developed for affordable housing for homeownership.

President Verna

Thank you. Mr. 125 BILL NO. 050370 - 6/6/05 Wetzel, have the occupied residents already been contacted about relocation?

Mr. Wetzel

Yes. And they would have been noticed. I believe there was a meeting on Saturday. Am I correct? Yes.

President Verna

What is the estimated cost of this acquisition? And can you tell us if that also includes relocation benefits?

Mr. Wetzel

Yes, it does. And the estimate of the acquisition costs, including relocation, is $558,000.

President Verna

Thank you. And I see we have a young lady to your right, who we would be happy to recognize. Please identify yourself for the record.

Ms. Minnis

Thank you, Madam President. And also thank you our Councilperson, Ms. Blackwell. It is great to be here today. It is a long time coming. We have been looking forward to this project for a long, long time. And those of the Cathedral Park area, Girard 126 BILL NO. 050370 - 6/6/05 Avenue area, and other parts of Cathedral Park, are very happy to welcome something new and something different in our area. And we want to thank you very much.

President Verna

Thank you very much. Mr. Wetzel, I don't believe I heard you ask for a suspension of the Rules on this particular bill.

Mr. Wetzel

Yes, I did. If I didn't, I am.

President Verna

Okay.

Mr. Wetzel

Do you want me to do it formally?

President Verna

That would be fine.

Mr. Wetzel

I request favorable consideration of Bill No. 050370 and would ask the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

Thank you. Do we have anyone else to testify on this bill? Seeing no one, I would ask Ms. 127 BILL NO. 050372 - 6/6/05 Murray to please read the title of Bill No. 3 050372.

The Clerk

Bill No. 050372, an Ordinance approving the ninth amendment of the redevelopment proposal for the Nicetown urban renewal area, being the area beginning at the intersection of the easterly side of Broad Street and the northerly side of Wingohocking Street, projected, including the ninth amendment to the urban renewal plan and the amended relocation plan, which provides, inter alia, for the additional land acquisition of approximately five properties for residential and related 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 afternoon, Madam Chairperson and members of the committee. I am here to speak in support of Bill No. 050372, the ninth amended redevelopment proposal and the ninth amended urban renewal plan for the Nicetown 128 BILL NO. 050372 - 6/6/05 redevelopment area. Passage of this bill will allow the Redevelopment Authority to acquire a total of five vacant structures as part of the Neighborhood Transformation Initiative. It is anticipated that these five structures will be conveyed to the Nicetown Community Development Corporation to rehabilitate and sell to first-time low- to moderate-income home buyers. This project was recommended to the Redevelopment Authority by the city's Office of Housing and Community Development, as it was selected as part of the 2004 Homeownership RFP. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050372 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

Thank you very much. Mr. Wetzel, can you tell us if there is a public subsidy for the development phase 129 BILL NO. 050372 - 6/6/05 of this project, and what the estimated subsidy is?

Mr. Wetzel

Council President, I can't tell you the estimated amount, but these properties are going to be rehabbed under the Homeownership Rehabilitation Program which has a maximum subsidy cap of $50,000 per unit.

President Verna

Thank you. Can you give us the estimated cost for acquisition?

Mr. Wetzel

$129,375.

President Verna

For all five properties?

President Verna

Okay. The Chair recognizes Councilwoman Miller.

Councilwoman Miller

Thank you, Madam President. I don't know whether -- Majita Rashid is supposed to be here from Nicetown CDC. I don't see her in the audience. But we have been working with this community development corporation, and we are 130 BILL NO. 050373 - 6/6/05 very pleased to support this project because it is the beginning of a much-needed rehab, much-needed renovation work in the Nicetown area. Thank you.

President Verna

Thank you. 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. 11 050373.

The Clerk

Bill No. 050373, an Ordinance approving the redevelopment proposal of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Southwest Germantown urban renewal area, being the area generally bounded by Hansberry Street on the north, Greene Street on the east, Windrim Avenue and Roosevelt Boulevard on the south, and Pulaski Avenue on the west; approving the urban renewal plan and determining that such plan and redevelopment proposal conform to the general locality plan and make adequate provisions for individuals, business concerns, and families who are 131 BILL NO. 050373 - 6/6/05 displaced; determining the necessity for changes in and for zoning, streets, alleys, publicly ways, street patterns, location and relocation of public utilities; determining that the urban renewal plan and redevelopment proposal meet all nondiscrimination requirements of federal, state, and local laws and the regulations and policies promulgated with respect thereto; declaring that certain expressly designated and provided for condemnation is not imminent with respect to the project; and declaring the redevelopment undertakings in the project to be an important part of the city's program to remove and prevent the spread of urban blight.

President Verna

Mr. Wetzel.

Mr. Herbert E. Wetzel

Good afternoon, Madam Chairperson and members of the committee. I am here to speak in support of Bill No. 050373, which would approve the redevelopment proposal and the urban renewal plan for the Southwest Germantown area. Passage of this bill will allow the Redevelopment Authority to acquire a total of 132 BILL NO. 050373 - 6/6/05 properties, 10 vacant lots and vacant 3 structures, as part of the Neighborhood Transformation Initiative. Six properties, which include five vacant lots and one structure, will be acquired to support new construction of five units of for-sale housing to low-income families by Habitat for Humanity Germantown. This phase of the acquisition was recommended to the Redevelopment Authority by the city's Office of Housing and Community Development as it was a submission under the 2004 Homeownership RFP. The remaining seven properties are being acquired in support of Germantown restaurant owner Adam Kim's plan to construct a commercial strip. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050373 and would ask for the suspension of Council Rules to allow first reading on June 9, 2005.

President Verna

Thank you. Mr. Wetzel, again, I am going to ask 133 BILL NO. 050373 - 6/6/05 what is the estimated cost of this acquisition?

Mr. Wetzel

$240,225.

President Verna

Is there a public subsidy for the development part of the homeownership acquisition?

Mr. Wetzel

No. Habitat doesn't accept public subsidies. The only time we have subsidized any Habitat development is when we have put foundations in on properties.

President Verna

So Habitat is going to do all of the development?

President Verna

Isn't there a commercial acquisition involved?

Mr. Wetzel

Yes. You asked -- with regards to Habitat, there is no subsidy. With regards to the seven properties that ultimately could be conveyed to the gentleman Adam Kim for a commercial strip, there is no 22 public subsidy in that. And unless there is any jobs generated as a result of that, the property would have to be conveyed at fair market 134 BILL NO. 050373 - 6/6/05 value.

President Verna

Do you know if he is going to be paying fair market value?

Mr. Wetzel

At this point in time, that determination has not been made.

Councilman Cohen

What was that question?

President Verna

I asked if Mr. Kim, who is the restaurant owner, will be paying fair market value for the property. And, if so, how much would he be paying. Any questions or comments from members of the committee? Seeing none. Are there witnesses? Yes. And Councilwoman Miller has a comment. Councilwoman Miller.

Councilwoman Miller

Thank you, Madam President. These properties have been an eyesore, particularly the ones that Habitat are taking, for a long, long time. In fact, some of them have been demolished. And the Wayne Avenue business strip, 135 BILL NO. 050373 - 6/6/05 Wayne Avenue is a major corridor in Germantown. And we have been working with many, many people to try to see what we can do to bring some of these blocks in under NTI, Neighborhood Transformation Initiative, to see what we can do to turn the community around. So many of them are vacant lots and some of them are vacant structures, and no one will be relocated in any of this action. Thank you.

President Verna

Thank you. Good afternoon. Please identify yourself for the record and proceed with your testimony.

Ms. Pamela Braci

Good afternoon. I am Pamela Braci, a 25-year resident and homeowner in the Southwest Germantown area, and I would like to speak to the bill before you today. This bill appears to not be in the best interests of the community for the following reasons: A blight certification was declared on December 17, 1998, but the community at-large was not informed, and we 136 BILL NO. 050373 - 6/6/05 really would like to know why and how this was done. The community was not informed about this bill, either. Had we not stumbled upon it in the newspaper, our NAC office was not informed of this bill. So, we really did not find out about it. The community is having some real problems with the blight certification because it is based on the following criteria: Unsafe, unsanitary, inadequate, or overcrowded conditions; economically or socially undesirable land use; faulty street and lot layout; and inadequate planning. Southwest Germantown has been a recipient in recent years of receiving large quantities of Section 8 residents, group homes, Narcotics Anonymous, Alcoholics Anonymous facilities, absentee landlords, abandoned properties that are oftentimes abandoned due to absentee landlords, and some of these properties are due to large representatives of the community that rehab them and then leave them sitting for several 137 BILL NO. 050373 - 6/6/05 years. The term "economically or socially undesirable land use," do these terms mean low-income persons, persons that someone has declared are undesirable for the community and must be moved out? Is this some kind of criteria that's been set up that the community at-large is not aware of? The faulty street and lot layout, is this due to the large number of properties that have been demolished, oftentimes over the objections of neighbors? The streets were laid out over 300 years ago, so what does the faulty street statement really mean? Inadequate planning. When research was done regarding Germantown, Germantown doesn't have a plan. According to the Planning Commission, it is declared blighted and a reclamation area. So where is the plan? Southwest Germantown has been included many times in the great grant-writing process, but in many areas of Southwest Germantown this does not reflect the written 138 BILL NO. 050373 - 6/6/05 projects. And many of these proposals are written over ten years ago, where houses were supposed to have been built ten years ago and monies were allocated, and those pieces of land are still waiting to be taken care of. Southwest Germantown doesn't want persons in the community displaced because somewhere along the line someone is thinking that Germantown is a great place, a right place for gentrification and some of the people living there now just don't fit.

President Verna

Excuse me. You are aware that the properties in question are all vacant?

Ms. Braci

That's my next statement, that they are vacant.

President Verna

They are?

Ms. Braci

Yes. We are speaking to the fact that Germantown historic area. If this project is carried out, the community must be consulted because it appears as though we have individuals who come into the community to make plans, and then we don't hear about it anymore. 139 BILL NO. 050373 - 6/6/05 It also appears as though there are streets that are listed in this particular bill today that are not listed anywhere else. So it appears as though something is truly missing from the bill, especially when we have angle points here, center line there relating to streets. What does that mean? So we of the community, some of us, many of us, are really demanding respect by all persons, especially those in this Council here today, to the developers, and anyone else who is involved in Germantown. Thank you very much for your time.

President Verna

Thank you for coming in to testify. May I ask, do you own any of the properties that may be subject to eminent domain?

Ms. Braci

No, ma'am.

President Verna

Thank you. Good afternoon. Please identify yourself for the record and proceed with your testimony.

Ms. Franklin

My name is Catherine 140 BILL NO. 050373 - 6/6/05 Franklin. I am a long-time resident of Germantown, since 1958, and a fifth-generation Philadelphian, and we know each other by sight. But I am here to support Southwest Germantown people. I was one of the people who found the legal notice in very small print in the paper and spread the news around the neighborhood about it. I called some people in Southwest Germantown, all of whom were very, very surprised at the bill and the news. I moved to Germantown with my family because I wanted an area that was historic and had very different backgrounds for people, that you couldn't just say, oh, you're from Chestnut Hill and assume something. Germantown is very interesting and wonderful. What has been happening over the last ten years is not so wonderful. We have become impacted, absolutely, with homes of every kind. It is not the same as having neighborhoods. You just don't walk up to another group home or something and say, 141 BILL NO. 050373 - 6/6/05 "Can you watch my baby, I have to go and do something? Can I have a cup of sugar," whatever. It is different. It is very, very different. A certain number are welcome, but we are impacted. We do not need in a select area, that has had a very fine study by Marianna Thomas, took something like three years to do, we do not need to have actions which are against the historic nature of our area. It is a beautiful community. Strip malls do not help it. We need an emphasis on tourism and jobs associated with tourism to help our area, since we have lost our manufacturing. The people of Southwest Germantown -- I have talked to some block captains and I have talked to some officials -- have no idea about this bill. What meeting May 5? It is a surprise to them

President Verna

I don't mean to cut you short in any way. But I know if this were in my district and people didn't know about it and simply read it in the paper, 142 BILL NO. 050373 - 6/6/05 their first thought would have been to call the District Councilperson. Did you do that?

Ms. Franklin

We got copies of the bill, if that's what you mean.

President Verna

Did you call the District Councilperson?

Ms. Braci

I did not call. I went online to find out what the bill was, because it was only last week that we found out about it.

Ms. Franklin

There is a 5 foot set of plans in the Planning Commission for the Germantown area. 5 feet. Where is the Main Street program?

President Verna

The Chair recognizes Councilwoman Miller.

Councilwoman Miller

Thank you. I want to thank you, Ms. Franklin, Ms. Braci, for coming in to testify. I don't see that what we're doing today as relates to 13 properties that are vacant and a couple of vacant lots goes against any plan that Germantown has. 143 BILL NO. 050373 - 6/6/05 This is actually a plan that will help to restore and rehabilitate some of the areas in Germantown. This is giving Habitat for Humanity, whom everybody knows and they are working with us in other parts of Germantown, an opportunity to renovate vacant homes and then they actually give those homes to people that fit in the very low income category. So that's bringing some stability back to a couple of blocks. And with the commercial strip there, or the former strip at Wayne and Berkley that is now a tremendous eyesore, and I am glad -- I know that you would agree with that, at Wayne and Berkley, would just begin to restore some of the areas along Wayne Avenue that are blighted. We are not trying to go against any plan that Germantown already has. I, too, I was born and raised in Germantown, lived there all my life. Knew what it looked like when I was a child, and absolutely know the difference now. And have been there through all the various changes. 144 BILL NO. 050373 - 6/6/05 Germantown, Southwest Germantown urban renewal and blight certification happened in 1998 through the Office of Housing and Community Development. There were many meetings at St. Stephen's Church at Queen Lane and Germantown Avenue. I'm sure -- I think it is St. Stephen's, where many people from the community

Ms. Braci

Trinity Church.

Councilwoman Miller

Okay. But it was right there on Queen Lane. And, so, I know that probably some people in this room 15 were also invited to those meetings. So the blight certification happened in 1998.

Ms. Braci

I recall attending those meetings. There was nothing mentioned about blight. Someone came down from New York to give us a plan. And one of our questions was at that particular time, was the fact that this really was not new information; that it was information that anyone had seen in the past. But I know we're going back over 145 BILL NO. 050373 - 6/6/05 something. I would just like to say, Madam President, that I don't see, and Councilwoman Miller, with all due respect, I don't see that this is a plan for the area. I see it as something -- excuse me, if I may. I see it --

Councilwoman Miller

This is not a plan. We are just.

Ms. Braci

That's my point.

Councilwoman Miller

We are just giving away properties. We are just 13 talking about 13 properties, and certainly that is not a plan for an entire area. So that is all we are doing here today.

Ms. Braci

If you would be kind enough, Madam President and Mrs. Miller, that when your office decides to put together a plan -- because I think we will all agree, and you just stated publicly, that we don't have a plan, we really need one. Because our area is really being deteriorated greatly. And I think to put blight certification on it really makes us feel 146 BILL NO. 050373 - 6/6/05 extremely terrible about the fact that we are trying very hard and we attend meetings, but yet still it seems as though the more we attend meetings, it seems as though the more we are being dumped on. So I know that is not going to be addressed here today, but we are just saying that we are really a little tired of receiving just, it seems like, all the negative elements that society has to offer. And we know that, through God's grace, that we move forward. But sometimes, even with God's grace, you get a little tired. So we are a little tired of just waiting and waiting and waiting. And I think we have waited long enough, and we really need to move forward. So thank you again for your time.

President Verna

The Chair recognizes Councilman Cohen. Just a minute.

Councilman Cohen

Is there a developer, does anybody know, of anything? Is there a developer currently in the picture?

Ms. Braci

I believe the proposal says Habitat for Humanity and Mr. Kim. Is 147 BILL NO. 050373 - 6/6/05 that correct, Ms. Miller?

Councilwoman Miller

Yes. Habitat for Humanity.

Councilman Cohen

It has been in the papers about a Germantown community organization having difficulties. And the Redevelopment Authority, I think, has been involved in that. And I am wondering if that's tied to the same group or is this a different arrangement? I am trying to sort out where this fits. Does Mr. Wetzel know?

Mr. Wetzel

Yes. The proposed developer -- and, for clarification purposes, again, we have to come back to City Council in order to dispose of any properties. So whatever developer is selected must be approved by this body. The proposed developer for a portion of this is Habitat for Humanity, and the proposed developer for the commercial shopping is Adam Kim, who owns a restaurant on Wayne Avenue. Those are the two proposed developers. 148 BILL NO. 050373 - 6/6/05

Councilman Cohen

Is it tied in with anything that has appeared recently in the press about Germantown community organizations?

Mr. Wetzel

I have no idea. I just know that both Habitat and Adam Kim are independent entities.

Mr. Cohen

Because I think in view of what has been occurring, it is very important that we step carefully and the people of Germantown feel that everything is being done properly and in order and that they're fully consulted. And I speak also as a past District Councilman to that area, and I feel very strongly attached to that area. So I do think it very important that we inform the city of what's going to happen and that there be complete community involvement.

President Verna

I think Councilwoman Miller has already indicated that she will be certainly be doing that, did you not?

Councilwoman Miller

We have always 149 BILL NO. 050373 - 6/6/05 invited people. Many of people in this room 3 with signs on, it is my understanding, were a part of some of the meetings when the area was declared blighted. I called the director this morning from the NAC to ask him who was a part of the meetings when you had the meetings during the blight certification. And because I couldn't tell him everybody that was here, I just named a few people. I have seen many of these individuals at meetings prior to me becoming a Councilmember, and I see them occasionally now. But we are not doing anything in secret. It is our goal to help revitalize the Germantown community. We expanded the Germantown redevelopment plan from Sedgwick, down to Berkley so that we could have easier access to acquire buildings, vacant lots, and move forward with development. And that's all we are trying to do here. We are not trying to do anything against anyone's back. 150 BILL NO. 050373 - 6/6/05 The notice in the paper, big or small, we have no control over. City Council pays the various newspapers to publicize the public hearings. I did not know you were coming here this morning until I showed up in this chamber. If there were questions or discussions that anybody wanted to have, we could have had those without a problem. We are not treating Germantown any different than we have treated other parts of our district as it relates to community involvement. We have people stop us all the time wanting to know what's going to go on on Wayne Avenue because it is such an eyesore. And that's all we are trying to do here.

President Verna

Thank you, Councilwoman. Excuse me. Did you want to testify? Please approach the witness table. Thank you both for coming in to testify. Please identify yourself for the record. 151 BILL NO. 050373 - 6/6/05

Ms. Marlene Pryor

Good afternoon, my name is Marlene Pryor. I am the founder, one of the founders, of the Concerned Neighbors of Greater Germantown, Inc., for 6 years. 7 And I am real full because Mr. 8 Wetzel was part of us, with the Southwest 9 Germantown Development Corporation. Donna has 10 a communication problem with me. But as of 11 today I'm 70 now. I have been in that area 12 for 33 years getting beat on, pushed around, 13 trying to help the people. But I come here 14 today because I want better communication with 15 Donna for that area. 16 Our organization have a property on 17 Wayne Avenue, at 4809 Wayne Avenue. We have 18 one at 101 West Logan, which they tried to 19 take away from us for back taxes. 20 Because we tried to do this 21 community work volunteer. We have no money. 22 We get no funding from the city or no one 23 else. And I'm really sad here today. 24 So all I want to say is I want some 25 communication about all this from Herb Wetzel, 152 BILL NO. 050373 - 6/6/05 because he lived right there. I am still there, 70 years old, trying to uphold the community with nothing, and it is very unfair to me, and Donna know it. As of today I hope, with me testifying, she give that community better service. Because it is a war zone, and I am very upset. I got grands, 8 greats, and 5 11 great-greats in that community, trying to 12 serve them with food and whatever. 13 Councilman Cohen know me since 1970. 14 Majority of them know me. Blondell Reynolds, 15 I am a committeeperson. I did everything I 16 can. So help, help, help. Thank you. 17

President Verna

Thank you very 18 much. 19 Gentlemen, are you going to be 20 testifying on this bill? Please approach the witness table. Kindly identify yourself for the record.

Mr. Robert Merit

My name is Robert Merit, and I do own one of the lots that --

President Verna

Excuse me, Robert. 153 BILL NO. 050373 - 6/6/05 You are going to have to pull the microphone closer to you.

Mr. Merit

Good afternoon, Council. My name is Robert Merit, and I do own one of the lots in question here. I guess I can give you first a little bit of background about myself. I grew up in Germantown as a young person on Wayne Avenue. And I raised -- after I moved out of my home, I moved on to Coulter Street, which is right next to Germantown, and I raised a family of three there on Coulter Street. So I will say that I love Germantown first, so you will know my interest. I am also currently a realtor who services Germantown area for sales, along with Mt. Airy and West Oak Lane being my prime areas of location. I have since built, what you call it -- renovated quite a few homes in Germantown, one being on 4711 Green Street, 4616 Pulaski Avenue, 30 East Coulter, 6126 Belfield Avenue, 557 East Locust Street, just to inform you that I have a group of people 154 BILL NO. 050373 - 6/6/05 who renovate properties. My purpose in purchasing the property, the lot on Pulaski Avenue, which is on the corner of Pulaski and Berkley, was to acquire the other lots next to them. There are approximately four other lots next to them, two of them are owned by another individual and the other two are owned by the City of Philadelphia. Excuse my ignorance, Councilwoman Miller. I was not aware that I should have come, obviously, to Council to find out how to go about getting these properties. I was actually pushing for a sheriff's sale of the other two properties owned by the person who had just back taxes on them. In fact, one of those properties are pending sheriff's sale now, which I intend to go and purchase that lot. My overall goal -- I have already had a developer look at the lot and give me a plan and a cost associated with renovating that particular lot that runs from Pulaski and Berkley, to the next small street there. We 155 BILL NO. 050373 - 6/6/05 intend to build approximately homes there and sell them to low- to moderate-income people. So I am not interested in selling my lot or having someone take it away from me, because my goal is to help continue to help fix up Germantown Avenue.

Councilwoman Miller

What's the 10 address of your lot? 11

Mr. Merit

The address is 4529 Pulaski Avenue. And the other two -- there are other two lots, 4531 and 35 is owned by another individual who will -- those properties are going to a sheriff's sale. And 4533, 37, and 39 are owned by the City of Philadelphia. We really need to sit down and talk. And I am not talking about a situation where we would wait five to ten years to have this project started. If I had possession of those properties, a project would be started within six months to a year, we would start building. Thank you. 156 BILL NO. 050373 - 6/6/05

President Verna

I would just like to get it clear in my own mind. You own one of the lots in question on this bill?

Mr. Merit

Yes. That would be the largest lot there on the corner of Pulaski and Berkley. Now, I don't believe that the other lots are included in this particular -- I haven't received any notice, other than this paper here telling me that there was a bill 12 where they would authorize the Redevelopment Authority to acquire my property. And I have been diligently trying --

President Verna

The Chair recognizes Councilman Kelly.

Councilman Kelly

Sir, this lot, is this where you intend to construct new homes?

Mr. Merit

Yes; along with the other lots.

President Verna

Which he doesn't own.

Councilman Kelly

You don't know the other lots.

Mr. Merit

Not yet. I am 157 BILL NO. 050373 - 6/6/05 negotiating --

Councilman Kelly

You are negotiating to purchase the lots so you can construct new homes?

Mr. Merit

Right. Right now I can build two homes. But it would be next to a large lot, and that's just not a good way of building. We want to make sure that the community is built up and not to just build two new homes right there and not build up the whole section.

Councilman Kelly

How did you purchase the lots that you do own?

Mr. Merit

Again, this was from the sheriff's sale.

Councilman Kelly

And now you are trying to negotiate with the city to purchase the other lots?

Councilman Kelly

Now, when would construction begin, or do you still intend to construct on the property that you own?

Mr. Merit

Not unless I can get the 158 BILL NO. 050373 - 6/6/05 other lots. It would just not be economical and it would not look good for the community. My goal is to make sure that there are homes in that area. And just to put up two new homes next to a large lot would obviously indicate that I have not done my homework to acquire those additional lots to move with the full project.

Councilman Kelly

But, as far as I know, the Redevelopment Authority, of course, has an interest in also constructing homes on those lots.

Mr. Merit

Well, I had no knowledge of them at all until, again, I received this notice May 17.

Councilman Kelly

Well, wouldn't this be in your best interest to -- if they did decide to put homes on those other lots, wouldn't that also be a good selling point for you in constructing two new homes on the lot that you own?

Mr. Merit

That may be the case. But I am not sure if they actually went out to purchase the other lots, just as myself. I 159 BILL NO. 050373 - 6/6/05 have been trying to get them, as well. And they are not part of this. COMMISSIONER KELLY: I would certainly think that no matter what we do here, we are going to see construction of new homes, at least I would like to think that.

Mr. Merit

But I would hate for someone to have to take mine to build, and I am willing to build. And I have also demonstrated that I have built in the past and renovated homes in Germantown.

Councilman Kelly

Have you incurred any expenses so far, as far as cleaning the lots or doing anything of that nature? Putting up fencing?

Mr. Merit

Yes, I have. Along with costs of a development plan, as well.

Councilman Kelly

Okay. Thank you.

Mr. Merit

Thank you.

President Verna

Let me ask you, excuse me, sir, what would be the cost of acquisition for this bill?

Mr. Wetzel

May I have the bill 25 number again? 160 BILL NO. 050373 - 6/6/05

President Verna

We are still on Bill No. 050373.

President Verna

And I would ask the young man at the table who just testified, would you be able to afford the acquisition?

Mr. Merit

Yes, I would be able to afford the other lots in question.

President Verna

Do you know how much they are selling for?

Mr. Merit

No. They have not -- as I indicated to you, Madam President, there are one of those lots pending a sheriff's sale. I intend to be there and to properly bid.

Councilwoman Miller

And you own 4925 Pulaski?

Mr. Merit

That would be 4529.

President Verna

And you would have the wherewithal for both acquisition and for construction?

Mr. Merit

Yes, Madam President.

President Verna

You would not be looking for any subsidies?

Mr. Merit

None. 161 BILL NO. 050373 - 6/6/05

Councilman Cohen

Madam President.

President Verna

The Chair recognizes Councilman Cohen.

Councilman Cohen

Mr. Wetzel, is there a general feeling that if there is a private venture, the government would stay out and permit the private venture to take first place?

Mr. Wetzel

In general, that's the theory that we operate under. In this particular case the question is, do you allow Habitat for Humanity to develop properties that are going to be affordable to low- and moderate-income individuals versus a market-rate development. And, so, it is a public policy question.

Councilman Cohen

Well, it isn't as if Philadelphia doesn't have properties. Philadelphia abounds in properties that are available for Habitat for Humanity and for other well-meaning groups. It seems to me we are moving backwards here rather than forwards, if we reject a private venture and, instead, have 162 BILL NO. 050373 - 6/6/05 something done with government funding. I'm confused by the different parties. I would expect that I might be on the side of government funding, and all the others would be on the other side. But I don't understand why we don't want to support a private venture. I have heard nothing except positive things about this gentleman today, his willingness to undertake the risk. (Applause.)

Mr. Merit

Thank you, Councilman Cohen.

Mr. Wetzel

Councilman, I think that, again, is going to be a judgment call made by this body. And, you know, the question in some cases, yes, there are lots of properties in the City of Philadelphia. But you could be in a neighborhood with rapidly escalating real estate values in which you would want to create some affordable units. And that's going to be a public policy decision that we will face more and 163 BILL NO. 050373 - 6/6/05 more as our real estate values are escalating across the city. And I don't disagree with you. It is a good dilemma to have. Before we couldn't giveaway properties in areas like this, so it is a good dilemma to have.

Councilman Cohen

It is a dilemma we ought to be encouraging private industry everywhere to build and rebuild our communities. Government can't do it all by itself, and we ought to use government funds where no other funds are available. You shouldn't use government funds where other funding is available. I don't know. I'm getting all twisted here with different theories being distorted. It seems to me if there is a private venture that seems to work, and on that I would bow to your expertise and would want to know why this doesn't work, if it doesn't work; but why it works, if you think it does. But assuming that it works, then I think we want to give support to private 164 BILL NO. 050373 - 6/6/05 initiatives all along. Because the force of private initiatives will be far greater than any general government force. (Applause.)

Councilman Cohen

Thank you.

President Verna

Thank you, Councilman. Councilwoman Miller, was your light on?

Councilwoman Miller

Yes. Thank you, Madam President. I didn't really catch your name, but we can get -- I can get it later.

Councilwoman Miller

But what I would like to do is have this bill voted out and ask RDA not to take any action until we get back to you.

Mr. Merit

Thank you, Councilwoman. (Applause.)

Councilwoman Miller

You are welcome.

President Verna

Good afternoon, sir. Are you testifying? I think if you are 165 BILL NO. 050373 - 6/6/05 going to be testifying on part of this bill, I think the Councilwoman has indicated her willingness to meet.

Councilwoman Miller

I have willingness to meet. Did you hear what I said? Would you please say, yes, on the record.

Mr. Wetzel

Yes, Councilwoman, we will not take any action if this ordinance is approved and signed by the Mayor until we hear from you.

Councilwoman Miller

Thank you. Tim.

Mr. Block

Madam President, my name is Tim Block. I am Executive Director of Habitat for Humanity Philadelphia. And I agree with the Councilwoman's decision, if she wants to table this for now. And I just want to say that Habitat is about partnerships, and we are willing to sit down with the residents of a community. That's our policy going into any project, is to work with the community as far as design, as far as identifying partner 166 BILL NO. 050373 - 6/6/05 families for our program. We do work with the community and we are also looking to do some joint ventures. So if that young man is interested in working with us, there may be an opportunity for us to work together, too. So, we will be back.

Councilwoman Miller

Thank you.

President Verna

Thank you. Thank you very much. Do we have anyone else to testify on this bill? Please come forward, identify yourself for the record.

Mr. Ron Devereaux

My name is Ron Devereaux. I am block captain, 1500 block of Green Street and a long-time resident. And my concern is, I am supporting, you know, my community. I am not opposed to seeing, you know, the community being built up as far as, you know, houses being redeveloped, as long as we get, you know, good tenants. My concern is that we don't get red-lined as far as being blighted. Where in 167 BILL NO. 050373 - 6/6/05 the south side of Germantown, there was a time when that district was red-lined. We had Queen Lane above, just slightly above where we live, was considered a high classification. They were eligible to receive funds to build their community so they could keep it up and keep it as a historical society, historical neighborhood. Our neighborhood is just a little bit below. Now, when I heard the blight certification, and I just heard it, I was kind of surprised, because we do have a lot of homes that's being built up in that area, people are investing in their homes. We have a lot of concerned neighbors, some of them who were just up here talking, and people who want to keep Germantown as a historical place. So my main concern is that the blight certification does not stop us from getting funding so we can continue to build our community up.

President Verna

Mr. Wetzel is sitting next to you and he is nodding his 168 BILL NO. 050414 - 6/6/05 head. So why don't you say something, Mr. Wetzel, to assure this gentleman.

Mr. Wetzel

The certification of blight is not a deterrent to increasing values. All of Center City, from river to river, from Vine down to South Street, is a redevelopment area that was certified blighted and areas within that have been recertified as blighted over the years. It is not a deterrent to value at all.

President Verna

Thank you. Thank you for coming in to testify. Did you want to testify, ma'am? I understand you are here to testify on the next bill. Do we have anybody else to testify on Bill 050373? Seeing no one, I could ask Ms. Murray to please read the title of Bill No. 22 050414.

The Clerk

An Ordinance approving the second amendment of the redevelopment proposal for the Tioga Urban Renewal Area, 169 BILL NO. 050414 - 6/6/05 being the area generally bounded by Hunting Park Avenue on the north, Broad Street, Germantown Avenue, Venango Street, 15th Street, Allegheny Avenue, and Germantown Avenue of the east, Glenwood Avenue and Lehigh Avenue on the south and 23rd Street, Allegheny avenue and 22nd Street on the west.

President Verna

Mr. Wetzel.

Mr. Herbert E. Wetzel

Good afternoon, Madam Chairperson and members of the committee. I am here to speak in support of Bill No. 050414, the second amended redevelopment proposal and the second amended urban renewal plan for the Tioga redevelopment area. Passing of this bill will allow the Redevelopment Authority to acquire a total of 30 properties, vacant lots and 9 vacant 20 structures, as part of the Neighborhood 21 Transformation Initiative. 20 of the vacant lots will be acquired to support the expansion of Kinderton Recreation Center. The remaining vacant lot is to be acquired for reuse as parking for the 170 BILL NO. 050414 - 6/6/05 adjacent Tioga Arms Apartment Building. vacant structures, 7 of which are architecturally significant, are being acquired for the development of for-sale housing to low- and moderate-income home buyers. This project was recommended to the redevelopment authority by the city's Office of Housing and Community Development, as it was selected under the 2004 Homeownership RFP. Madam Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 050414 and would ask the suspension of Council Rules to allow first reading on June the 9th, 2005. Thank you.

President Verna

So as we understand it, it is the acquisition of 30 properties, vacant lots and 9 vacant 20 structures? 21