COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE COUNCIL COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, April 6, 1999 11:32 p.m. - - - BILL 990111 - Amending an ordinance approved June 23, 1998 which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Point Breeze East Urban Renewal Area. . . BILL 990112 - Amending an ordinance approved December 22, 1987 which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Cecil B. Moore Avenue Urban Renewal Area. . . BILL 990113 - Amending an ordinance approved December 15, 1969, as amended, which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Model Cities Urban Renewal Area. . . PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILWOMAN AUGUSTA CLARK COUNCILMAN DAVID COHEN COUNCILMAN JAMES F. KENNEY COUNCILWOMAN MARIAN B. TASCO COUNCILMAN FRANK DICICCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 4/6/99 COMMITTEE ON RULES I N D E X Bill 990111 Nicole Bouvier, Deputy Executive Director . . . Redevelopment Authority, City of Philadelphia Jeff Brown, Project Manager . . . . . . . . . . Redevelopment Authority for South Philadelphia Bill 990112 Nicole Bouvier, Deputy Executive Director . . . Redevelopment Authority, City of Philadelphia Anthony McIntosh, Executive Vice President. . . Philadelphia Housing Development Corporation Bill 990113 Nicole Bouvier, Deputy Executive Director . . . Redevelopment Authority, City of Philadelphia Andrew Toy, Commerce Department . . . . . . . . 3 4/6/99 COMMITTEE ON RULES - Bill 990111 P R O C E E D I N G S
Good morning, everyone. I apologize for the delay. This is the public hearing of the Committee on Rules. I would ask the clerk to please read the title of Bill No. 7 990111.
An ordinance amending an ordinance approved June 23, 1998 which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Point Breeze East Urban Renewal Area, by approving the first amendment of the redevelopment proposal and the first amendment to the urban renewal plan, which provide, inter alia, for certain additional land acquisition, and provision of certain relocation services, as required by law, for the individuals, families, and business concerns which may be displaced.
I believe Noel Eisenstat isn't here, but I'm sure we have a representative here today from his office.
Yes. (Nicole Bouvier comes forward.) 4 4/6/99 COMMITTEE ON RULES - Bill 990111
I would like the record to reflect that a quorum is present. To my extreme left is Councilwoman Tasco and Councilman Cohen. And to my right is Councilman Kenney and Councilman DiCicco. Again, good morning. Please identify yourself for the record.
Good morning. I'm Nicole Bouvier, Deputy Executive Director of the Redevelopment Authority of the City of Philadelphia. I am here today to speak in support of Bill No. 990111, which is the first amendment to the Point Breeze East Redevelopment Proposal and Urban Renewal Plan. The Point Breeze East Urban Renewal Area renewal areas is bounded by Washington Avenue on the north, South Broad Street on the east, Moore Street on south, and South 20th Street on the west. This bill would authorize the Redevelopment Authority to acquire 94 predominantly vacant and vandalized buildings and lots to eliminate blight in this long-neglected neighborhood. The properties to be acquired will 5 4/6/99 COMMITTEE ON RULES - Bill 990111 be developed through a combination of new construction and rehabilitation for low- and moderate-income families. This acquisition consists of 51 blighted residential buildings, 4 blighted mixed commercial-residential use buildings, and 39 vacant lots in the vicinity of 16th and Federal Streets, the 1600 block of Annin Street, the 1500 and 1600 blocks of Ellsworth and Federal Streets, and the 1100 block of South Mole Street, the 1100 and 1200 blocks of South 16th Street. The Redevelopment Authority intends to acquire these properties for new construction of affordable rental housing and rehabilitation. The Authority plans to issue a request for proposals to select a developer to develop the site, and funds will be provided by the Office of Housing and Community Development, with additional funds leveraged by the low-income housing tax credit program of the state. All of the buildings are vacant except for two residential buildings and the residential portion of one mixed-use building. Madam Chair and members of the 6 4/6/99 COMMITTEE ON RULES - Bill 990111 Committee on Rules, on behalf of the Redevelopment Authority, I respectfully urge favorable consideration of this bill. I would also like to formally request a suspension of Council rules that would allow the first reading of this bill at your next session.
Thank you very much. I notice that you have 16th and Reed also blacked out. That is not included in this ordinance; is that --
It's not. That was in the original redevelopment plan, so we already own it.
We plan to issue the RFPs as soon as the ordinance is signed, which is really the earliest point at which we can do that.
And with the three occupied properties, what provisions have you made or are you making to accommodate the people that reside there? 7 4/6/99 COMMITTEE ON RULES - Bill 990111
We will follow -- the Uniform Relocation Act will notify the occupants. They will be given full relocation benefits, and we'll assist them in finding comparable units.
Well, don't you think we should be notifying them?
Do you know, are they one-family, or are they duplexes, or --
It's generally hard to tell. I believe that there's probably one household in each of these units, but it's very hard to tell. (Unidentified person addresses Council off mike.)
You're going to have to identify yourself for the record and use the microphone so that the stenographer can hear you. (Same unidentified person comes 8 4/6/99 COMMITTEE ON RULES - Bill 990111 forward.)
I'm Jeff Brown, Project Manager with the Redevelopment Authority for South Philadelphia. We just did some street surveys, and it appears as if there are tenants in two of the properties on Federal Street in very poor condition, 1641 and 1647. And in -- it looks like a residential tenant in the corner of the 16th and Ellsworth Street property on that block, but we have not had any interviews with those tenants yet.
Well, I suggest that that be done as soon as possible.
Now, you did not include any of the properties owned by the Hawkins Funeral Home.
Fine. All right. Are there any questions from members of the committee? (No questions.) 9 4/6/99 COMMITTEE ON RULES - Bill 990112
Do we have anyone else to testify on this bill? (No response.)
Since we have no one else to testify on that bill, I would ask the clerk to please read the title of Bill No. 8 990112.
An ordinance amending an ordinance approved December 22, 1987 which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Cecil B. Moore Avenue Urban Renewal Area, by approving the fifth amendment of the redevelopment proposal, the fifth amendment to the urban renewal plan, and the fifth amendment to the relocation plan, which provide, inter alia, for the additional land acquisition of approximately 42 properties and provisions of certain relocation services, as required by law, for the individuals, families, and business concerns which will be displaced.
Again, please identify yourself for the record and proceed with 10 4/6/99 COMMITTEE ON RULES - Bill 990112 your testimony.
Again, I'm Nicole Bouvier, Deputy Executive Director of the Redevelopment Authority, and I'm requesting your support of Bill No. 990112, which would authorize the fifth amended redevelopment proposal and the fifth amended urban renewal plan of the Cecil B. Moore Avenue Urban Renewal Area. This is generally bounded by Montgomery Avenue, Carlisle Street, 19th Street, and Jefferson Street. This bill provides for the acquisition of 42 properties and the relocation of 1 household in preparation for the development of home ownership opportunities for low- and moderate-income families. This is Phase II of a development that's currently underway, known as "Cecil B. Moore Home Ownership Zone." The Planning Commission, at their meeting of February 18th, approved the fifth amended redevelopment proposal and the fifth amended urban renewal plan as set forth in this bill. These properties are to be combined with an additional 173 properties, which you will 11 4/6/99 COMMITTEE ON RULES - Bill 990112 hear about when we discuss Bill No. 990113. The total of 215 properties will be acquired for Phase II of this project. They'll be conveyed to the Cecil B. Moore Avenue Limited Development Corporation, and the project will consist of new construction and rehabilitation of homes in the 1500, 1600, and 1700 blocks of North Bouvier Street in the area generally bounded by 19th and 20th Streets, between Master and Oxford. These properties will be combined with 30 properties currently owned by the RDA. This bill is consistent with the plans for the Cecil B. Moore Avenue Urban Renewal Area and would enhance community development. Therefore, I respectfully urge your favorable consideration of Bill No. 990112. At this time, I would also like to formally request that the rules of the Council be suspended to allow for first reading of this bill at your next session.
Thank you. Did you want to testify, dear? 12 4/6/99 COMMITTEE ON RULES - Bill 990112 (Unidentified woman at witness table shakes head.)
Any questions from members of the committee? (No questions.)
Good morning. My name is Anthony McIntosh, and I am the Executive Vice President of the Philadelphia Housing Development Corporation.
Mr. McIntosh, I'm sorry, would you pull the microphone closer to you please.
I'm here this morning to testify on behalf of Bill No. 990112. This ordinance will allow the Redevelopment Authority to acquire properties which are part of Phase II of the Cecil B. Moore Home Ownership Zone Development. PHDC will be a joint venture partner with the Tenth Memorial CDC 13 4/6/99 COMMITTEE ON RULES - Bill 990112 and the Cecil B. Moore CDC in the development of units in the 1400 to 1700 blocks of Bouvier Street in the area generally bounded by 19th, 20th, Master and Oxford Streets. Funding for this activity, as well as the development itself, will come through the City's Office of Housing and Community Development. As a part of Phase I, PHDC and the Cecil B. Moore CDC have built 30 new and rehabilitated homes in the 1500 to 17800 blocks of North 18th Street, and we will shortly begin the construction of 35 new and 4 rehabilitated dwellings in the area bounded by 18th, 19th, Jefferson, and Harlan Streets. In order to carry out the development activities of Phase II, a new local development corporation will be formed between PHDC, the Cecil B. Moore CDC, and the Tenth Memorial CDC. As well as being a partner in the local development corporation, PHDC will provide the technical support necessary to administer this complex development. City Council's approval will allow the 14 4/6/99 COMMITTEE ON RULES - Bill 990112 Cecil B. Moore Home Ownership Zone Development to proceed in an orderly and timely manner, capitalizing on the successful development of Phase I. I am, therefore, asking for your favorable consideration of Bill No. 990112. Thank you.
Thank you, Mr. McIntosh. Are there any questions from members of the committee? (No questions.)
Do we have anyone else to testify on this bill? (No response.)
Seeing none, I would ask the clerk to please read Bill No. 21 990113.
An ordinance amending an ordinance approved December 15, 1969, as amended, which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the 15 4/6/99 COMMITTEE ON RULES - Bill 990113 Redevelopment Authority of the City of Philadelphia for the redevelopment of the Model Cities Urban Renewal Area, by approving the 23rd amendment of the redevelopment proposal and the 15th amendment to the urban renewal plan, which provide, inter alia, for additional land acquisitions of approximately 218 properties.
Good morning. I'm Nicole Bouvier, Deputy Executive Director of the Redevelopment Authority of the City of Philadelphia. And I'm here today to speak in support of Bill No. 990113, which would authorize the 23rd amended redevelopment proposal and the 15th amended urban renewal plan for the North Philadelphia Redevelopment Area Model Cities Urban Renewal Area. The urban renewal plan would provide for the acquisition of a total of 218 properties and the relocation of occupants of 5 residential structures. These properties will be used for five separate projects, and I will very briefly 16 4/6/99 COMMITTEE ON RULES - Bill 990113 describe them for you. A total of 173 of the properties will be acquired on behalf of the Cecil B. Moore Home Ownership Zone, which we previously discussed in the context of Bill 990112. Twenty-two of the properties will be required on behalf of the Women's Community Revitalization Project for their Sixth and Montgomery Project. The project will consist of new construction of units of affordable rental 12 housing for a special-needs population. The 13 acquisition and development will be supported by 14 the Office of Housing and Community Development. 15 Eight properties will be acquired on 16 behalf of the Friends Rehabilitation Program for 17 its Alfonso Dio (ph.) Housing Project Phase I. 18 This project will consist of new construction of 19 33 home ownership units. 20 Fourteen properties will be acquired on behalf of Sun Key Tofu Foods Company, to be used for business expansion. The acquisition cost of this acquisition will be borne primarily by the developer, with support by the Commerce Department. 17 4/6/99 COMMITTEE ON RULES - Bill 990113 One property will be acquired on behalf of West Poplar Nehemiah Phase II, a 57-unit home ownership development for low- and moderate- income, first-time home buyers. This bill is consistent with the plan for Model Cities Urban Renewal Area and would enhance community development. Therefore, I strongly urge, on behalf of the Redevelopment Authority, your favorable consideration of Bill 11 990113. At this time, I would also like formally to request that the rules of Council be suspended to allow for first reading at your next session. There are several people here to speak in support of this bill. Andy Toy from the Commerce Department.
Thank you. Before Mr. Toy testifies, can you tell us how many properties are presently occupied and how many people would have to be relocated.
There are five residential structures that are currently occupied. We believe -- but won't know until there's a preliminary survey -- that there would be one household in each of those structures. 18 4/6/99 COMMITTEE ON RULES - Bill 990113
And all the others sites are, what, abandoned or vacant land or --
They're a combination of vacant structures and vacant lots. I can be more specific. Okay, it's 170 lots, 45 structures.
Thank you. Mr. Toy from the Commerce Department? (Andrew Toy comes forward.)
Good morning. My name is Andrew Toy from the Commerce Department, and I'm here representing the City's Commerce Department. And I'm here in support of the Redevelopment Authority's condemnation of properties in the area of the northeast corner of Tenth and Fairmount as part of Bill No. 990113. The condemnation of these lots and the sale to the adjacent business, Sun Key Tofu, will accomplish three objectives. First, it will allow the expansion of a small local manufacturing company. Second, it will eliminate a blighted lot -- or blighted lots, which have been historically the dumping ground in the neighborhood. And, 19 4/6/99 COMMITTEE ON RULES - Bill 990113 third, it will allow better vehicle access for the adjoining businesses, which will minimize traffic congestion for the neighboring residents. Sun Key Tofu is assuming payment for the appraised fair market value of these properties, as well as all appraisal, title, and advertising costs associated with this condemnation. The Commerce Department and Philadelphia Industrial Development Corporation have been supportive of Sun Key Tofu in its effort to expand its small tofu manufacturing business. Sun Key presently manufactures much of the tofu for the local Asian markets but would like to expand production into mainstream supermarkets, restaurants, and health-food stores. By locating operations to an abandoned building adjacent to the lots, Sun Key will be able to install state-of-the-art equipment and more than double current production. Sun Key's total investment is around three quarters of a million dollars for the building renovations and equipment. Sun Key expects to add ten new employees to the six currently on staff. And Sun 20 4/6/99 COMMITTEE ON RULES - Bill 990113 Key has pledged to the District Councilman's Office to explore all opportunities to hire from the neighborhood. Again, the Commerce Department supports the passage of this bill and would appreciate your consideration on this matter.
Thank you. The Chair recognizes Councilman Cohen.
Recently in the press, there was a story involving an empowerment zone that was acquiring property, and property was acquired that had been recently transferred within the last few years at a very low sum. But when it was acquired, the price escalated by 10, 15, 16 times. 17 Do you run into that kind of problem in 18 these areas? And if so, how do you deal with it? 19 Was that an aberration that was reported in the 20 press? I don't know whether your agency had anything whatever to do with it or whether it was some other agency that has its own system.
Typically, when we condemn property, we are required to get a fair-market value appraisal of the property, and 21 4/6/99 COMMITTEE ON RULES - Bill 990113 we have to offer the owner fair-market value as just compensation for the taking. So we would have an independent appraisal, unless the property is of very nominal value, that appraisal's done by somebody who's not of staff of the Authority so that it is considered independent. And by law, we're required to follow that process. So in instances -- I think what you're describing, those were negotiated deals, but I'm not --
Well, I think there were appraisals by allegedly so-called independent appraisers who said now that somebody was interested in acquiring the property, its value had escalated manyfold. And I think it was the North Philadelphia Empowerment Zone. I'm not sure which empowerment zone to be sure. But it was reported recently and it's just kind of disturbing when you go out in the community and you're asked questions about it. And we don't seem to have any good answers to give.
Well, I would say in most of the neighborhoods that we are doing work, 22 4/6/99 COMMITTEE ON RULES - Bill 990113 property values aren't really escalating. So I'm not. . .
Are there other questions from members of the committee?
We're trying to find ways of dealing with it. It may be a problem that, you know, really can't be dealt with. I guess the fact is, when you have some form of economic development, the properties in the area do increase in value.
There are neighborhoods where our activity affects value, and it's not necessarily a bad thing. It does make condemnation and paying for it more complicated. But in general, I would say where we're doing -- certainly for any of these projects, I don't think we've seen huge escalations in value.
Thank you. 23 4/6/99 COMMITTEE ON RULES - Bill 990113 The Chair recognizes Councilwoman Clark.
I came in for that part of your testimony that deals with the Nehemiah project on 13th Street, just south of Girard. I want to tell what you a successful project that is and how it has blossomed and changed a blighted area into an area of hope. I live within walking distance of it, and every day am impressed by the vision of the Nehemiah planners and the way the various City agencies cooperated to make this happen. And so, I am very pleased to have been responsible on this bill 18 which provides whatever other access you need to complete the project. With respect to the comments that Mr. Cohen was making, though, I believe he's discussing some inflated figures that were paid for nearly abandoned properties in the Cecil B. Moore area dealing with the Apollo, on what used to be Columbia Avenue, between 15th and 18th 24 4/6/99 COMMITTEE ON RULES - Bill 990113 Streets, and some properties were acquired at what appears to be inflated prices. You really need to look into that and get back to the Chair with a better answer than we just had from you.
Thank you. Are there any other questions from members of the committee? (No questions.)
For the record, there are representatives that I know of in particular who are --
Representatives of several of the other projects that will be affected by this bill -- Jim Wilcox of the Friends Rehabilitation Program, Irene Wright of the Women's Community Revitalization Project, and 25 4/6/99 COMMITTEE ON RULES - Public Meeting Roger Kern, the Director of West Poplar Nehemiah, and I'm sure he in particular appreciated your very nice words, Councilwoman.
Thank you. Since we have no one else to testify on this bill, this will include our public meeting. - - -
We will now go into our public meeting. The Chair recognizes Councilman Kenney regarding Bill No. 990111.
Thank you, Madam Chair. I move that Bill No. 990111 be reported out of this committee with a favorable recommendation and a request be made for a rules suspense to allow for first reading at our next counseling session. (Duly seconded.)
It has been moved and properly seconded that Bill No. 990111 be reported out of committee with a favorable recommendation. Also a recommendation that the rules of Council be suspended so as to permit 4/6/99 COMMITTEE ON RULES - Public Meeting first reading at our next session of Council. All in favor will signify by saying aye. Any opposed? The ayes have it, the motion is carried. I would just like to suggest that now that we have reported this out and the rules have been suspended, I would like to see the Redevelopment Authority move on this. I think we've been moving at a snail's pace. And now that we have concluded this, I would like to see them move forward as promptly as possible. The Chair recognizes Councilman Kenney regarding Bill No. 9901112.
Madam Chair, I move that Bill No. 990112 be reported out of this committee favorably and that a request be made for a rules suspension to allow for first reading at our next Council session.
It has been 27 4/6/99 COMMITTEE ON RULES - Public Meeting moved and properly seconded that Bill No. 990112 be reported out of committee with a favorable recommendation. Also a recommendation that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. The Chair recognizes Councilman Kenney for --
Thank you. Madam Chair, I move that Bill No. 20 990113 be reported out of this committee with a favorable recommendation and that the rules of Council be suspended so as to permit first hearing at our next stated meeting. (Duly seconded.)
It has been 28 4/6/99 COMMITTEE ON RULES - Public Meeting moved and properly seconded that Bill No. 990113 be reported out of committee with a favorable recommendation. Also a recommendation that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will signify by saying aye. Those opposed? The ayes have it, the motion is carried. This concludes the public meeting of the rules committee. And, again, I apologize for our lateness and thank you for your patience. (Adjourned at 11:58 a.m.) - - - 29 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, April 6, 1999, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON RULES BILL NO.'S 990111, 990112, 990113 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter