COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE FY26 BUDGET City Hall, Room 400 Philadelphia, Pennsylvania Tuesday, April 15, 2025 10:00 a.m. PRESENT: COUNCIL PRESIDENT KENYATTA JOHNSON COUNCILWOMAN KENDRA BROOKS COUNCILWOMAN JAMIE GAUTHIER COUNCILWOMAN KATHERINE GILMORE-RICHARDSON COUNCILWOMAN QUETCY M. LOZADA COUNCILWOMAN CINDY BASS COUNCILMAN MICHAEL DRISCOLL COUNCILMAN CURTIS J. JONES, JR. COUNCILMAN NICOLAS O'ROURKE COUNCILMAN JEFFREY J. YOUNG, JR. COUNCILMAN ANTHONY PHILLIPS HELEN LOUGHEAD, CLERK - - -
Good morning, everyone. Good morning, everyone. This is the public hearing and public meeting of the Committee of the Whole regarding Bill Nos. 250-195, 250-196, 250-197, 250-198, 250-199, 250-200, 250-201, 250-202, 250-210, 250-211, 250-212, and Resolution No. 250-214. Ms. Loughead, would you please call the roll to take attendance?
Councilmember Ahmad. Councilmember Landau. Councilmember Brooks. Councilmember O'Rourke.
Present. A quorum of the committee is present and this hearing is now officially called to order. Ms. Loughead, will you please read the title of the resolutions?
Bill No. 250-195, an ordinance amending Chapter 19-1500 of the Philadelphia Code entitled Wage and Net Profits Tax, by revising certain tax rates under certain terms and conditions. Bill No. 250-196, an ordinance adopting the operating budget for fiscal year 2026. Bill No. 250-197, an ordinance to adopt a fiscal 2026 capital budget. Bill No. 250-198, an ordinance to adopt a capital program for the six fiscal years 2026 through 2031, inclusive. Bill No. 250-199, an ordinance amending Chapter 19-2600 of the Philadelphia Code entitled Business Income and Receipts Taxes, to revise tax rates and end certain exclusions from the tax on receipts, all under certain terms and conditions. Bill No. 250-200, an ordinance amending Chapter 12-1000 of the Philadelphia Code entitled Traffic Code to revise the fee for the use of parking meters, all under certain terms and conditions. Bill No. 250-201, an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled School Tax Authorization, to provide for an increase in the tax of the Board of Education of the School District of Philadelphia as authorized to impose on real estate. And amending Chapter 15 19-1300 entitled Real Estate Taxes, to establish an equivalent reduction in the tax rate for the city real estate tax, all under certain terms and conditions. Bill No. 250-202, an ordinance amending Chapter 19-1806 of the Philadelphia Code entitled Authorization of Realty Use and Occupancy Tax, to eliminate certain exemptions, all under certain terms and conditions. Bill No. 250-210, an ordinance amending Section 10-1001 of the Philadelphia Code entitled Fees of Commissioner of Records, to increase the portion of fees for the recording of deeds and mortgages and relating documents to be used for housing trust fund purposes, under certain terms and conditions. Bill No. 250-211, an ordinance amending Chapter 19-1400 of the Philadelphia Code entitled Realty Transfer Tax by revising the rate of the tax, all under certain terms and conditions. Bill No. 250-212, an ordinance to amend Chapter 19-4400 of the Philadelphia Code entitled Development Impact Tax, to end the imposition of the tax, under certain terms and conditions. Resolution No. 250-214, resolution providing for the approval by the Council of the city of Philadelphia of a revised five- year financial plan for the city of Philadelphia, covering fiscal years 2026 through 2030, and incorporating revisions with respect to fiscal year 2025, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority pursuant to an intergovernmental cooperation agreement by and between the city and the authority.
Thank you very much. Today, we continue the public hearing of the Committee of the Whole to consider the bills read by the clerk that constitute proposed operating capital spending measures for fiscal year 2026, a capital program and forward-looking capital plan for fiscal year 2026 through fiscal year 2031. We have scheduled testimony from the Department of Planning and Development, as well as Department of Commerce. This afternoon we have scheduled testimony from the Department of Public Property and the Department of Fleet Services. Before we call the first panel for testimony, I want to acknowledge the presence of Councilmember Jeffrey J. Young, Councilmember Dr. Nina Ahmad, Councilmember Nicolas O'Rourke and Councilmember Kendra Brooks. Ms. Loughead, can you please call the first panel?
Alba Martinez, Director of the Department of Commerce. DIRECTOR MARTINEZ: Good morning, President Johnson and members of Council. My name is Alba Martinez, and I am the City's Director of Commerce. I'm here this morning, joined by members of our leadership team, to provide testimony on the Commerce Department's fiscal year 2026 operating budget. The Commerce Department exists to grow a competitive economy that delivers opportunity to every neighborhood and every Philadelphian. Under Mayor Parker's leadership, we are focused, organized, and in motion. We are implementing a strategy we call Grow Philly, to make it easier and more attractive to start, operate and grow a business in Philadelphia. With investments that improve our services to businesses, expand access to education, support and capital, boost commercial corridor economic activity, and promote our city as a great place to do business. A few of our fiscal year 2025 highlights include the following: Commerce expanded and redesigned the Mayor's business action team to enhance customer service and make government more business-friendly as mandated by the Mayor's Open for Business executive order. Our business service managers have helped over 5,000 businesses this year. Four hundred of those cases were handled by our new MBAT navigators who specialize in resolving complex issues businesses face with the city. MBAT also launched Coffee and Commerce, which will be delivered in every council district on an ongoing basis. We are expanding online tools for businesses like the Permit Navigator, and next month we will launch the Philly Biz Hub, a new website designed for small businesses to provide streamlined 24/7 access to permits, licensing, education, and access to capital resources. Our incentive grant through the Philadelphia Business Lending Network has helped over 100 businesses secure loans from 30 lending partners, 70 percent were first time borrowers. We invested 500,000 in emergency funding, including 264,000 for businesses impacted by the 17 Northeast plane crash. 18 The commercial real estate 19 acquisition loan program helped four 20 entrepreneurs purchase properties 21 like Perfect Place Real Estate on 22 52nd Street and Next Level 23 Barbershop on Germantown Avenue. 24 We expanded our neighborhood economic development grant program to support projects like a Weaver's Way Co-op at Chelten and Morris, and the Olney Community Collaborative's new home and future retail incubator. 4 million in grants to 9 businesses that created 288 quality 10 jobs, full-time roles with living 11 wages and benefits like those 12 created by Attentive Care Service in 13 the 4th District. 14 In February, we announced a 15 5 million small business Catalyst 16 Fund to provide capital and support 17 to businesses ready to grow, 18 particularly those facing systemic 19 barriers. The catalyst includes 20 dedicated funding for life sciences, 21 manufacturing, the nighttime and 22 creative economies, and for 23 businesses purchasing a commercial 24 corridor property. The catalyst will also pilot our new single application process, an essential step towards simplifying access to support. The catalyst expression of interest form launches this week. To continue strengthening neighborhood commercial corridors, we expanded the taking care of business program from 10 million to 24 million, growing cleaning areas, vacant lot maintenance and tree planting across the city. TCB employs now 324 cleaning ambassadors across 39 non-profits and black- owned businesses. We'll soon expand to 52 partner organizations employing over 400 ambassadors. Just yesterday, applications closed for 500,000 in corridor enhancement grants to support non-profits leading creative projects that foster safety, vibrancy and foot traffic. We continue to invest in street scape projects like Broad, Germantown, and Erie.
We also developed an investment strategy to beautify and activate corridors for 2026, including Point Breeze and Ridge Avenue. We implemented our $1 million Kensington Corridor investment to clean and beautify commercial areas, complementing broader city stabilization efforts. Our business development team continues to attract new employers, retain key firms, and support the expansion of local businesses. For example, DeVal Lifecycle Support, a Department of Defense manufacturer in the 10th District is expanding operations. Famous 4th Street Cookies is growing to reach international markets. FS Investments is expanding and remaining in Philadelphia. To expand and build on these efforts, we've launched a new Philly Business Brand Marketing Initiative to promote Philadelphia both domestically and internationally as a premier destination for business investment. Bottom line, we're making it easier for businesses to start, stay, and grow right here in Philadelphia by building a city where every entrepreneur can access the capital support and opportunity they need to succeed. Setting aside the 15 million for the convention center, the proposed fiscal year 2026 general fund budget totals $94,978,715, an increase of $44,396,900 over fiscal year 2025 estimated obligation levels. This increase supports targeted investments that advance our strategy to grow an inclusive and competitive economy, including 29 million for the Jumpstart Small Business Initiative to expand capital education and business services. 5 million to expand taking care of business and clean more commercial areas. Continued investment in PHL Open for Business to reduce cost and complexity for business services. Funding for an incentive study and market eat analysis -- Market East analysis. Support for projects that beautify brand and enhanced destination corridors ahead of 2026. Finally, the important work of our Workforce Solutions team will continue within the Chief Administrative Office in close partnership with commerce to support employers and deliver on key initiatives. The Department of Commerce looks forward to continue working with all members of Council to drive inclusive economic opportunity across Philadelphia. Philly is open for business. Thank you, and we welcome your questions.
Thank you very much, Ms. Martinez. Well, first and foremost, I want to thank you for your service, no matter how brief it was. We know that you has -- you have been an outstanding public servant to the city of Philadelphia, and I thought that's why it was prudent for the Mayor to bring you into her administration. So thank you for setting up -- setting the tone for the Department of Commerce. And so I just want to personally just thank you for your service and I wish you the best in your next endeavors. DIRECTOR MARTINEZ: Thank you, Mr. President. It's an honor to serve.
I have a couple questions before I turn it over to my members. And so part of the budget process, we are considering removing the exemption for the first 100,000 receipts for the business income and receipts tax, which is BIRT, and the use of occupancy tax due to the legal constraints that we're dealing with right now. And so for me, we're budgeting $150 million over the next five years, which is $30 million a year. And we know that this is going to be a significant change of terms -- in terms of how small businesses operate here in the city of Philadelphia in the event that we move forward. And so I'm concerned about the amount. And so give me an idea about your perspective and sort of how much we are investing because 150 over 30 -- 150 million over five years, we want to make sure it's more than enough to support those small businesses. But also most importantly, what are we doing to staff up to be prepared? And most critically, right now with you making the transition, who's the number two that's going to make sure that any event that this proposal does pass and members of council do say we are on board and supporting the exemption, we want to be reassured, especially with this transition going on, you being at the helm and then someone else is coming in, have to pick up and keep running. So who's the No. 2 that we should be talking to today to make sure small businesses are supported in the event that we move forward and take away this exemption based upon legal constraints for the record? DIRECTOR MARTINEZ: So thank you. So I -- it's a -- I believe it's a two part question. One is how do we feel about the investment and the size of the investment?
And how do y'all come up with the number? DIRECTOR MARTINEZ: In response to the BIRT -- to the BIRT change, right, and the impact on businesses, and then continuity in the department. So I'll start by saying that the 30 million, just to round up, of -- in the Jumpstart Program is an unprecedented investment by our city, by Council and the Mayor in the -- in well- being and the growth of businesses. Every single investment in that Jumpstart Program is tied to a program that is high functioning within the department has proven to be successful with businesses. And in the case of the Catalyst is a very innovative program where we are testing a new way of doing business and accelerating growth for our businesses. So I do believe that $30 million is a large amount of money to absorb within the department. And what we want to do is be able to execute on that quickly. So I'll speak about two things. First of all, the choices about what those investments are, were thoughtfully developed by the commerce team based on programs that work, No. 1. Number two, the education component of the business community is just as important. And so we are going to have an equally passionate investment in a comprehensive education and marketing strategy. And this really applies to any program that we talk about today from outreach, right, which is different than marketing. And now we have a marketing capability that we did not have before. We now have an email which I guess is called direct marketing, an email that goes to over 20,000 businesses. And when we sent a notice about the Catalyst, 40 percent opened that email. So we did not have that before, right? So we have new communication channels, we have an outreach function, we have marketing investments, and we intend to continue to hit the street, if you will, at multiple levels. In so -- so I'll leave it -- I'll leave that answer there. In terms of continuity, I will say that I am really going to miss commerce because of the caliber of the people who work there. I am really going to miss commerce and commerce will not miss a beat. We have a strategy, it's called Grow Philly. It is written down. We have a portfolio where we can identify every spend we have, who's in charge of it, how much money it is, and the outcomes on it. And if any of those three things are missing, we -- you know, we would redeploy that investment. So I would say that your point of contact would be Heloise Jettison as our chief of staff. And from a budgetary standpoint, Frank Nasir, our finance director, but every single leader in the department is here to serve. There is no wrong door.
My other part of the question is how do we track the small businesses that need to be targeted that would really have to take advantage of this 30 million? Because they're the ones who are used to not having to file any paperwork, right? So is there any way for us to track and is there, like, go after those individuals who need this actual type of support as opposed to sending out a blind email of or 30,000 individuals? 13 DIRECTOR MARTINEZ: I just 14 asked Yvonne if she wants to take it 15 and she said, no, you do it. I'm 16 like, thanks a lot. I'm just 17 joking. 18
19 Come on, Yvonne. 20 DIRECTOR MARTINEZ: I'm -- no, seriously, it's -- so I believe that, you know -- first of all with revenue, we're working with the revenue department together on a strategy here because when businesses win and grow, we win, right?
Mm-hmm. DIRECTOR MARTINEZ: And we recognize that this could be seen as, you know, cutting against the grain of open for business, right? We understand that we are facing a reputational challenge and some confusion. So this is -- this is going to be an education effort with revenue.
It's going to be a sticker shock for some people. DIRECTOR MARTINEZ: For some people --
For those small businesses that have never -- DIRECTOR MARTINEZ: Right.
-- had to file. Right? And normally they know that first $100,000 is forgiven. DIRECTOR MARTINEZ: That's correct.
Now they have a bill and so -- DIRECTOR MARTINEZ: That's correct.
-- they have to do their due diligence, we have to do our due diligence to make sure they take advantage of the 150 million -- DIRECTOR MARTINEZ: That's correct.
-- over five years. And so that's -- DIRECTOR MARTINEZ: That's correct.
-- that's members' concern in terms of how we get the money directly into the hands of those individuals. DIRECTOR MARTINEZ: So here's the plan. First of all, there's coordination with revenue. Second of all, there's an outreach and marketing phase that begins immediately that, you know, I'll be involved in, the Mayor will be. We will all be involved in educating the business community around this. And then third of all, we will have lots of opportunities for businesses to self-identify and tell us, Hey, we want information, we want help. And we will 100 percent all the time respond to that. And so, you know, I can provide more detail, but for example, our business hub that comes out next week, I mean, we are going to have any relevant information that a business person needs right there on that web. Plus, the MBAT is a phone call away for any business in Philadelphia. As I mentioned, they've served 5,000 businesses this year. And with Jumpstart, we're expanding that staff so that they can serve almost double the amount of businesses in our city.
And then -- DIRECTOR MARTINEZ: No one should -- no one should feel lost or confused and not have a person to call either directly at Commerce or one of our partners. No one.
Okay. Awesome. All right. I am going to turn over to members. I also want to acknowledge also the presence of Councilmember Curtis Jones, Jr. And obviously when we do the marketing plan and get the word out, we would do it on diverse platforms, making sure information is provided in all different diverse languages for the demographics that represents the city of Philadelphia. Because again, small businesses expands across all different diverse spectrums and demographics of people. And we just want to make sure everybody take advantage of in the event that we move forward with this proposal that the individual's most impacted will take advantage of it. DIRECTOR MARTINEZ: Thank you.
So, okay. That being said, The Chair recognizes Councilmember Dr. Anthony Phillips. And I'm just going to state that if individuals could be direct with their questions, you can be direct with your responses so we can get two rounds in as we move forward in this process. With that being said, Councilmember Dr. Anthony Phillips.
Thank you, Council President. I just want to briefly say, Alba, we wishing you much success and thank you for the contributions you made to our 9th District. I also want to thank Salim Wilson and all the others who have done a lot of great work in for our district. He's been a really good person working with us. Number -- DIRECTOR MARTINEZ: Thank you.
Thank you. So one of the questions I have is about the April 14th deadline. Recently, there was a commercial corridor grant that was extended to neighborhoods. The deadline was April 14th. I did receive a lot of calls and neighbor emails about this grant. However, a lot of them were kind of nervous about applying, right? What can Commerce do in the future for some of these grants for commercial corridors that are really helpful to our businesses? Not just for the grant that we just did yesterday, but for all of the grants to come into neighborhoods and maybe do, you know, workshops or something to help people feel more at ease with, like, envisioning what they can do with a grant of that sort. Maybe past examples, because oftentimes people in more --
Oh, yeah. So that's it. He did say that and I did it anyway. Thank you. DIRECTOR MARTINEZ: Thank you.
Yeah. DIRECTOR MARTINEZ: That's an excellent question. You know, we all win when more individuals and organizations apply and compete for the funding. So I'm going to ask Deputy Director Boye to help answer what we are doing and what more we can do.
Good morning, Yvonne Boye, Deputy Commerce Director. I lead the Office of Neighborhood Economic Development. That's a really great question. We actually had 140 applications for half a million dollars. So yes, it's an investment that community groups really look forward to. First and foremost, we do have a briefing where we invite everybody who's interested in applying to attend this briefing so that we explain the expectations. And the application, I think is the shortest application that we have in the Commerce Department. It is a single page, is who you are, what you're going to do, and what you're going to use the money for. But your point is well taken. We have commercial corridor managers that we can actually give this information to, to assist any organization in those areas, to assist them in applying. Again, Alba talked about the marketing that we are beginning to ramp up. We've never really done that kind of outreach, and it's something that we are looking to, and we can include that so that people know where to go. And the Biz Hub, we should have one place where anybody can go to connect with someone to help them. And it's coming up. Thank you.
Thank you. I took up too much of my time, but I just want to say thanks. And hopefully the commercial corridor managers can go out and proactively let every association know about it. I'm not sure they do that already, but that's something I do.
All right. Thank you. DIRECTOR MARTINEZ: Thank you, Yvonne.
I have just one more question, and it was about the 9th -- just in general, that we know that there are -- there are court -- commercial corridors that are impacted by the -- basically they need a uplift, they need an anchor business, right? How are you helping each district get an anchor business so we could turn it from the traditional, you know, mom and pop stores to something not more sustainable? How are we doing work for that? Yeah. DIRECTOR MARTINEZ: So the activation of corridor economic activity is one of the core strategies for the Commerce Department Growth Philly plan. So it's a -- it's a multi-faceted approach. One of the new things we're doing, which I'm excited about and we are all excited about, is that the Catalyst Fund offers a -- amount of funds. I believe it's a million dollars right now for businesses that want to buy and occupy a property in a corridor, right? So we are going to help them, we're going to provide them some funding substantial, at least 50,000, might even be more. We're still working out the details, but we have to invest and incentivize people to want to be in the corridors. And that Catalyst Fund is going to do that. And because that fund is really looking for businesses ready to grow, there's going to be a high vetting of those businesses to make sure that they're growth ready, councilman, because what that will do is it will increase the chance of success for that business to become an anchor.
Thank you. DIRECTOR MARTINEZ: So that's one example of the things we're doing. And we are looking at other programs where we could further incentivize the elimination of vacancy in important corridors.
Thank you. DIRECTOR MARTINEZ: Plus for 2026, we're going to put millions of dollars into a number of targeted corridors to boost their attractiveness. And last but not least, we are investing in a tool like Placer.ai. It may not be Placer.ai, but a tool like that. We have not had it before where we can actually measure the impact of our investments in a corridor, because that allows us to measure foot traffic. So we are about to invest in that, and we will be able to share that data with every corridor in the city so that they don't each have to buy it themselves because it's cost prohibitive.
Thank you for that response. I just -- seconds, I 4 just wanted to say my only -- my 5 only suggestion is that if we can -- 6 if you all can help identify those 7 businesses for us -- 8 DIRECTOR MARTINEZ: Sure. 9
10 -- and make a strategic 11 plan to bring them to our corridors 12 and present it as a possibility to 13 be an anchor business, that could 14 change a lot of our -- 15 DIRECTOR MARTINEZ: Thank you, sir.
Thank you, Dr. Phillips. Councilmember Jamie Gauthier.
Got you. Good morning, Director Martinez. Thank you for all your service to the city. It's been good working with you. Last September, Lancaster Avenue saw a mass shooting in front of a local business, Oxygen Deli, a business we've had many other issues with over time. Since then, our office has been partnering with the local Police Department, Commerce Department, the Office of Clean and Green, LA21, and many other non-profits and agencies to improve the environment of the Lancaster Avenue Business Corridor. I want to give a special shout out to the Commerce Department team, Michelle Price and Shanshan Ma for attending several after hours meetings, getting us cameras for the business corridor, and so much more. Your partnership is making a notable difference for that area. My questions, looking ahead, can you speak to commerce's plans for the Lancaster business corridor? What additional resources can you invest to make improvements along the corridor? For example, is it possible to do a set of storefront improvements focused on the 4,000 and 4,100 blocks of Lancaster Avenue? Or could we see a greater investment in LA21, which manages the corridor and supports local businesses? We're trying to invest in a way that can drive away some of the significant violence that we've seen. DIRECTOR MARTINEZ: Thank you -- thank you for the question. I will invite Deputy Director Boye to answer momentarily. But what I do want to say is that, you know, my experience with LA21 is that it's an extraordinarily valuable partner. And we are grateful for their support. And anything that Commerce can do to support a partner that's already pulling an enormous amount of weight in a community that needs so much, we will go out of our way to support them. Not just them, but any other organization like them in the city. So, Yvonne, I'll turn it over to you.
I think Alba really answered your questions, which is yes and yes.
Okay. That was easy. DIRECTOR MARTINEZ: Thank you, Yvonne.
We look forward to working with you on that targeted strategy. Thank you so much. DIRECTOR MARTINEZ: Thank you.
Thank you. Staying on the subject of business support organizations, our office has been working with the Enterprise Center to help them create and implement a plan for Enterprise Heights. This is a large set of parcels that they own at 46 and Market, and they've been trying to come up with a strategy for it for some time. Are there resources that the Commerce Department can offer to support the enterprise centers in our offices' efforts? And just to give you just a little more context, Enterprise Heights is directly across the street from the West Park renovation that will bring a thousand units to the area, it's near to where we're building the forensics lab. So it's a prime opportunity to develop this land in a way that's good for the community. DIRECTOR MARTINEZ: It's an incredibly important area. And I'm not going to give an opportunity to Yvonne to just say yes and yes, Yvonne.
Enterprise Heights makes me remember how long I've been working with the city. And so the Commerce Department already invested when it started. So we are not going to leave it in the middle of the road, right? We are going to work closely with the Enterprise Center to make sure that they are able to fulfill the dream and they're able to provide the community with what it needs. So yes, we are -- we are all in. Thank you.
We -- my office looks forward to working with you on that, and I'm sure the Enterprise Center will be very excited.
Thank you. Chair recognizes Councilmember Majority Gilmore- Richardson.
Thank you. Thank you very, very much, Council President. And thank you very much, Alba, for your service in the Commerce Department, and just also your overall service with city government. I wanted to, you know, zero in on workforce development. If you all could just talk about the workforce development solutions grant programs. How many grants have been given out thus far this year? To which organizations? And I'll start there. And I will say, and I want to say this for the record, that I just received, like literally as we've been sitting here, the follow- up memo regarding my concern around the Office of Workforce Development under Commerce, the unit. I should say under Commerce. And I wanted to thank the Administration for the ongoing conversations that we've been having over the last week regarding that matter. I am not fully prepared to speak to that because I literally just got the memo after I sat down in my chair. So what I want to focus on, one is, you know, be thankful for the continued commitment around workforce development, but two, talk about the specific work that you all have been undertaking around workforce development this year. DIRECTOR MARTINEZ: Thank you very much. The workforce solutions division within commerce has been critical to being able to meet the needs and expectations of employers and to be competitive in the business development space. Right? Because one of the questions that businesses always have is, how's the talent? Am I going to be able to find the talent? So that is an absolutely critical function for us. I want to address the issue briefly of the movement of workforce solutions, because my understanding of it is that it's fundamentally aimed at maximizing impact for all of us. And so, therefore, it is something that will only positively affect the Commerce Department because it is important to underscore that all of the support that the Workforce Solutions Unit provides right now in partnership with Commerce. Because it's always done in partnership with Dawn Summerville and biz-dev is going to continue. But the reality is that the city is not being as efficient as it could be.
I heard the bell. I'm so sorry. I heard the bell and I got to get this in there. And I agree with you. I want to underscore that you know that we agree on the end goal, right? DIRECTOR MARTINEZ: Yes. Okay.
The end goal is what we all agree on. The challenge I think that I was initially having was that we just did a charter change in 2023. DIRECTOR MARTINEZ: Understood.
And it really felt as if that charter change was not being taken into consideration, you know, after it had been voted on by the voters. And we've, you know, sort of had a process in place. My question is: Based on this proposal, what is changing from a staffing perspective? Because I need this for the record. DIRECTOR MARTINEZ: Sure.
If you could walk through really quickly of -- this is who's under Commerce now. This is who's under workforce solutions or under the workforce development unit. This is who will move and, you know, even if it's just position or name. Because we're familiar with everybody, Heloise, who we do nothing without. Gianna, Karen, Yvonne, Dawn, Frank, everybody at Commerce, Celine, everyone. We appreciate each and every one, and particularly that workforce development unit. Because when the previous administration eliminated that department, we had nothing and they had to stand that unit up from the ground. And so I deeply appreciated and I'm grateful for the work that they have done over these last several years. But I need to hear, on the record, what's going to change? Right now it's X, Y and Z positions under Commerce. And now this is what will go under CAO, and this is the Class 100 impact. DIRECTOR MARTINEZ: And we appreciate your leadership in this space to be very, very clear. While I invite my colleague, Camille Duchaussee to come up and help me answer that question, I will speak to you as a stakeholder, as a partner and as a customer. We can't do our work without a workforce solutions partnership. And so from my perspective, nothing will change in relation to what Commerce needs to get the work done. So I will -- I will turn this over to Camille.
Good morning. My name is Camille Duchaussee. I am the chief administrative officer. Thank you, Majority Leader, for the question. And we appreciate it because we feel similarly to you that the work of the Workforce Solutions Unit is substantial and it's necessary for us to meet our goals as a city. And in direct answer to your question, nothing is changing other than the leadership structure to ensure that we have synergy between -- continued synergy between the work of OWD and the work of CCME and workforce planning. So specifically --
Yeah. Walk me through -- and you understand what the question is?
Walk me through what that means? So would it be that everyone who's already in workforce will stay put, but that the leadership reporting structure is changing?
Like, meaning -- walk me through if there's any Class 100 movement from CAO to kind of -- like, walk me through that whole process.
Right. So currently there are three positions that are filled within Commerce in Class 100. The leadership of that unit is under Gianna Grossmann. Those three positions are very specifically moving into the CAO Class 100. There were two vacant positions within Commerce. Those two vacant positions have also moved within OWD, are also being moved to CAO. And then within CAO, we have increased our position allocation by two additional staff to support, again, both the internal and external work of these two units.
Okay. And if you all could just prepare that for us in writing and for the President --
-- and then for dissemination to members. And like I said, I'm not, you know, going to pretend that I am prepared to adequately speak to this issue because I have not had a chance to fully read the memo and digest the information that's shared to double back and read back the provisions of the charter that have been referenced in this memo. And I don't want to speak out of turn because I just received this information. So if you could give that information to the president, I'll review that along with the memo, do the follow-up meetings with the administration, and we'll go from there.
We look forward to having that conversation with you. Absolutely.
Okay. All right. Thank you very, very much.
Okay. Yes, thank you, Mr. President. Thank you very much.
The Chair recognizes the gentleman from the great Northeast, Councilmember Jim Harrity.
Thank you, Council President. Thank you for your service. Just to get it out of the way so I can stick to the timeline. I -- like -- too, Council President, I have concerns about the taking of the 100,000 away. Commerce indicates that 30 million will be allocated to help out small businesses now affected by the change to the BIRT exemption. How many businesses will this affect, for one? Because so many of these smaller mom and pop shops, you know, I still remember COVID, and I remember that in my neighborhood, if it wasn't for the Dominican Grocers and the Asian takeout stores, we would've been in some bad shape. So very concerned about that going away because I understand that that's important to businesses. And the other thing is the grants that are going to be there. I toured in Councilman Jones' district, the Container Village. That is an unbelievably fantastic idea. I mean, what a way to get small businesses started. And I understand that a few have already jumped into -- to actual storefronts after being in there to get started. So what are we doing to spur programs like that? Because we have vacant lots all over the city that could be turned into these little villages. I mean, I don't know if you've been over there but it's really something. They actually even had a place to pray during Ramadan. They have a stage, they have a TV screen to do stuff, and they got stuff going on, videos and little commercials for the businesses. It's really great. So just want to make sure that the businesses like that will also be able to apply for these grants as well as -- do you -- how many businesses are going to be affected, and is this 30 million a year going to be enough? DIRECTOR MARTINEZ: Yeah. Councilman, I'm going to very quickly turn this over to Yvonne. But what I will say is that, again, that 30 million is an unprecedented opportunity and investment. We take it very, very seriously. And it is just as important to put quality programs, whether they're education, service, technical assistance, quality programs that actually work for businesses along with capital programs. It's important to put those into the marketplace along with a really robust marketing and outreach strategy that truly creates transparency for businesses in Philadelphia. Because I do believe we can do better to make sure that every business in every corner of Philadelphia has the chance to compete. If you don't have the chance to compete, that's not inclusion. So, Yvonne, why don't you talk about numbers?
You know, I'm just trying to get to the bottom of, if this 30 million is going to add up. How many businesses? It's just simple numbers. DIRECTOR MARTINEZ: We'll talk about that.
How many businesses are going to lose this 100 million -- DIRECTOR MARTINEZ: Let's do it.
-- deduction? And how many businesses are we going to be able to help? Because I just don't see it adding up.
Yeah. So, that is a good question. And it's unfortunate that, you know, we -- it has come to this. But I think we have about 75,000 businesses who previously did not have to file for the BIRT who now will have to file.
-- businesses. So we have about 56,000, right, who are not real estate businesses who will now begin to file BIRTs that did not have to do that before. And based on the programs that we've decided to deploy the $30 million in, we will serve about 11,000 -- a little more than 11,000 businesses in the first year. Does that answer your question?
I'm just trying to do a little math here. And, you know, we got 70 --
Point of information. Councilmember Majority Leader Gilmore-Richardson.
Thank you so much, Council President. To follow-up on Councilmember Harrity's question, I know I asked previously for a breakdown of the 75,000 businesses by council district. Is that something that you all could provide to us today for our district colleagues, particularly? DIRECTOR MARTINEZ: I don't believe we have that data today. However, I will make sure that we continue to work with the revenue department to provide as much detail as possible about where those businesses are and who they are.
We have a point of information for Councilmember Brooks.
So did you say -- did you say -- 11,000. What was that 11,000 number for? Is that the number of anticipated business that you'll be able to support out of the 56?
Yes, per year. Right. So per year, based on the 30 million that we have, the programs that we're going to put in,
And then, out of that, 11,000 are the number that we can give grants for?
Per year. As the -- first of all, yes, it doesn't add up in numbers.
But don't every business have to file 21 taxes every year?
Yes. But the average -- the average small business makes about $50,000. And that works out to about $300 of taxes that they have to pay. That is really what it is that they have to do.
Yeah, because 30 million would only be about $400 per business.
Yeah. But we are not doing it on a one-to-one reimbursement. What we are doing, we are putting it into programs that will help the businesses grow, provide capital to businesses that will also help them grow. And --
What happens to the rest of those businesses. So we lose them?
Well, some of these businesses are going to be in some bad trouble if they lose that 100,000. That first 100,000 write off.
No, they're not losing 100,000. They're paying taxes of an average of $300. So that is not -- that is what it is. What they are actually losing is an average of $300 based on the average of the BIRT that the small businesses pay. So they're not losing 100,000. Absolutely not. DIRECTOR MARTINEZ: Can I just --
Yes. DIRECTOR MARTINEZ: So, Councilman, the other thing I just want to clarify is that the 11,000 is direct service. Like, you know, the value of each of those services is more than $300. In some cases, much more, right? We're talking about grants, helping businesses purchase properties on the corridors, you know, tax assistance, helping them go into compliance. So it's like really top quality services. Many, many more businesses will be reached with education and awareness and support, you know, and MBAT services than those 11,000. I think that what we're saying is $30 million is going to enable us to provide really high quality deep services to 11,000 businesses, which is, you know, frankly, a substantial number of businesses within the overall ecosystem. And that number will repeat every year. So every year it'll be a different 11,000. But in the meantime, we're educating the entire community and answering everybody's questions. So it's not like we're going to ignore everybody else. We will be of -- there will be no wrong door. And we will have to try to find ways to make it as easy as possible for people to file, right? That's work that we are just going to have to, you know, do and we will do it.
Commissioner, just a real quick question. So we have the confidence that y'all want to do an excellent job getting the word out. DIRECTOR MARTINEZ: Yes.
Excellent job getting the word out. Is there a concern that our system would be flooded with individuals coming, putting in requests for support, and that 30 million would be gone within the first month because we did an outstanding job getting the word out? And then that first 30 million -- is that -- just wanted to ask that question. DIRECTOR MARTINEZ: Unfortunately, it's not as easy for businesses to take the time to apply for something as we want it to be in the future. So I don't think that literally we'll run out of, you know, resources in a month. However, if we build efficient systems, which we are looking to build, you know, it would be a good problem to have, you know, and it's good and it's not good. If we are so effective at getting resources into the hands of businesses --
It's a good thing. DIRECTOR MARTINEZ: -- and be able to measure the impact of those, and we run out of money, we should be able to measure the impact that that has on job creation and wages. And then we should be able to come back, you know, and talk about what additional investment is required. But the reality is, we need to make it as easy as possible for businesses to access the resources we have already. And that's the bar that we need to set for ourselves. Make it really easy and see how quickly actually we can get these resources into the hands of people. That would be a great thing.
I apologize, Council President. I raise a question for the privilege of the House. What I'd like to ask is, if you could break down the $30 million and what it would go towards? Because I think there's a misconception as a part of this conversation right now, that the entire $30 million is being allocated to grants for businesses. And that is not the case based on the proposal that we initially received. So this is not a point of clarification. This is really a question for the privilege of the House. Thank you.
Ten million of the 30 million is going to go to the tax prep, bookkeeping, and business assistance programs that we'd mentioned. The remaining million 19 is what is going to go into the direct capital to businesses. The remaining million will go to staffing to help us to run these programs.
The Chair -- we're moving along, too. The Chair now recognizes Dr. Nina Ahmad.
Thank you, Council President. I had a quick question about the Liberty Bell -- oh, there we go. The Liberty Bell Safe Certification Program. And how will this be featured in our 2026 plans in terms of really making sure we have all our, you know, our commerce being ready to receive all these guests? DIRECTOR MARTINEZ: Thank you for the question. I invite Deputy Commerce Director Summerville to help answer. Nighttime Economy has been reporting to her.
Good morning, everyone. Good morning, Councilmember Ahmad. Thank you for the question. The Liberty Bell Safe Certification Program runs out of the Nighttime Economy, which is led by Raheem Manning. It's been a wonderful program. We had our first cohort of over businesses that 9 are in -- that operate within the 10 night economy -- participate. And 11 they participate on this space of 12 understanding how for conflict 13 resolution, harm reduction, 14 interaction, how to diffuse things 15 that are happening within 16 establishments, right, that can 17 cause a nuisance business or draw 18 attention to that business. 19 We began that program with 20 in mind for 2026, but I like to say 21 2026 and beyond. Because the city 22 is not just preparing for 2026, we're preparing to be a global city. So we are marketing that effort along with Visit Philly to identify these establishments of safe places to go and enjoy as visitors and residents that are here in the city of Philadelphia. The marketing behind that is to give the concept, if you're looking for somewhere to go, you understand that folks have been trained in these establishments to diffuse any harm that may come to patrons there. So we are excited for the first cohort that has went through.
So thank you for that. Do we expect to increase that number from 2022, I gather, you said? And the second piece which perked my ears was nuisance businesses. In the process of doing this, is Commerce sort of connected and understanding how many nuisance businesses are popping up and how we can feed that information to make sure we are addressing the issues? Particularly around those smoke shops and things that are popping up and selling to minors.
So, the Night Economy, again, the -- that division, they're not doing this alone. We are in partnership with the police department, license and inspection. We're getting support from our legal team as well. And yes, they are also working with the Nuisance Task Force for those discussions as well. This, again, as I stated, is the first cohort. There will be additional. The goal is to have everyone participate in this effort.
Thank you. And I just wanted to quickly say thank you to Alba for her service. We will miss you, but you're not going to be very far. And hopefully we -- the creative economy will benefit from your participation, and we can have the city to be the global city that we all desire to be. So thank you all. DIRECTOR MARTINEZ: Thank you so much. Thank you, Dawn.
Thank you. And also, just want to acknowledge also the hard work of Raheem Manning, like we call him the night Mayor. And I understand my colleague, Councilman Thomas, like, worked to create the position. But he is actually doing a good job helping us manage with a lot of businesses, particularly in the Rittenhouse Square area and, you know, the late night hour, people hanging out. But as a person who's able to bring us together to kind of resolve the quality of life issues and actually advocate on behalf of the businesses. DIRECTOR MARTINEZ: Thank you.
So I do want to go on the record and thank Raheem Manning for his hard work. DIRECTOR MARTINEZ: Raheem is an excellent emissary for this issue for Philadelphia, and is sought after nationally to speak about this issue. So we're very, very proud of Raheem and his work.
Good. Thank you. The Chair recognizes Councilman Nicholas O'Rourke, and then Councilman Jeffrey J. Young.
Thank you, Mr. President. Alba, you're leaving us. But in more respect, Director Martinez, I believe that you might have been the first director or the first person that I spoke to in the first, I guess, couple months of this gig. And so to see your arc and all that you've provided to the city really is a blessing. Thank you for your service. DIRECTOR MARTINEZ: Thank you so much.
2025, to those that care, and to the United Nations, as well as more relevantly to the city of Philadelphia, is the year of the cooperatives. 2025 is also the year that the Commerce Department is significantly expanding their small business and grant offerings with millions more in grants and technical assistance, which is a big milestone, even with all our questions about it, commendations on that front. This administration has stated, though, that their goal with this funding is to make sure that all Philadelphians have access to economic growth and opportunity. What we also know, as a point of fact, is that cooperatives have higher business success rates than traditional businesses. That they have higher pay rates, that they have lower turnover, that they consistently provide more reliable opportunities for generational wealth building. And finally, they're much more likely to be owned by women and people of color. Given these facts, the Philadelphia Area Cooperative of Alliance in my office are advocating for $1 million dedicated grant fund and 300,000 in technical support dollars specifically set aside for cooperative business growth and development. So I want to ask, would you support a dedicated line of funding specifically for growing and developing cooperative businesses? DIRECTOR MARTINEZ: Cooperatives are, I have to agree, incredibly important in an economic ecosystem. At this point, I can't make a financial commitment to a specific line of funding because that's a collective effort budget-making. In the Parker administration is a collective effort. But I will say that I agree with you of the significance of cooperatives and that the Commerce Department, you know, specific line item or not, is in the business of supporting cooperatives that are in the business of helping grow the economy. So we will support cooperatives with everything we can, regardless of whether it sits in the budget or not.
Thank you for answering the question. Just taking a moment to say that I do believe that the more that we shine the light on cooperatives and elevate them up for what they provide for those at the grass roots, for those who might be outside of the typical business track, I think the better. And I think the more we will actually be able to realize economic growth and opportunity for all. Thank you so much. Yes, ma'am.
I just wanted to add that we already support the cooperatives. The area cooperatives, we already fund them through our technical assistance program. And we've changed some of our programs to now -- we've changed some of our programs to now include cooperatives where before, you know, it was a business with one or two owners. We've expanded it. So we are on the right track.
Thank you, Member O'Rourke. The Chair recognizes Councilmember Jeffrey J. Young, then Councilmember Brooks. Then we will officially go into round two. Oh, sorry. Councilmember Jones.
Thank you, Mr. President. And good morning. My first question is around the Catalyst Fund. So most non-profits in our city and in our commonwealth are corporations technically, right? So what opportunities exist for our non-profit partners to access funds from this Catalyst Fund to get the technical assistance that they need to help scale their business, essentially or not? Because non-profits, you know, believe it or not, are corporations, are businesses. DIRECTOR MARTINEZ: So Councilman, the Catalyst Fund is envisioned as very targeted and focused on businesses, whether they're micro businesses or small businesses that are a private, not non-profit, that are growth ready, but who lack the kind of love capital that you don't have when you don't come from money, right? So it's truly focused on businesses and giving them love in the form of capital and support in the form of technical assistance and capacity building.
So I guess -- so my question would be why are non-profits excluded from this? DIRECTOR MARTINEZ: Because non-profits don't have -- I mean, it's just really a design choice. It's about focusing and targeting our effort. However, there are other programs within Commerce that can support non-profits. So this is -- this is just one product, if you will, within a product line. And there are other product lines that would support non-profits in their growth and development, recognizing that they also are economic engines in the community. So under no circumstance is it a diminishment of non-profits. It's simply saying there is a fund for businesses that are taking risk, right, and that are profit-making businesses. And we want to help those business owners to achieve the greatest chance of economic success. And yes, make profit because when they make profit, we win.
Can you tell -- I guess this is something for my own personal information. But if you could provide us with who in the Commerce Department we can talk to about those opportunities for the non-profit organizations, I think that'll be helpful. We have a lot of non-profits in our city that are providing services and programs and they actually, you know, hire people too, right? My second question is regarding the Ridge Avenue corridor. You mentioned Ridge Avenue in your statement. There's a lot of people on Ridge Avenue with great ideas, but there are a lot of vacant and blighted properties. So what strategy does Commerce have to help property owners stabilize commercial corridors like this, so the ideas aren't -- just don't go by the wayside.
Thank you, Councilman. We're working closely right now with Lower North to figure out the best way to reactivate that corridor. We're working with them collaboratively with PHA. We also have all our resources that we have for businesses available to them. But we are not doing it in a hands-off manner. We are working very closely with Lower North, as I said, to make sure that they get what they need, they get the assistance that they need. And we are actually in the process of helping them hire a project manager who will be out there and who will -- who will figure out what the market conditions are and help us collectively figure out what is the best way or the best businesses to move into Ridge Avenue.
So one solution I have is allowing -- providing some funding for some of these non-profits to file Act 135 conservatorships on these vacant and blighted properties. Those are the entities that I believe that law was made for. And for -- you know, and for the city to provide that support for these non-profits, I think, will be helpful on these commercial corridors as neighborhoods continue to gentrify. Thank you, Mr. President. I'll come back in round two.
Thank you. And just for comment, you know, there's a lot of conversation regarding the revitalization of corridors, right? I know for a fact, I've heard three members specifically talk about it. And do yourself some service and talk about the model you did in Point Breeze, right? Where we worked with PIDC, right? We work with the Point Breeze Business Association, right? We came up with a master plan, right? Had everybody at the table. We had the non-profit there, right? We had the business owners from Point Breeze Avenue there. We had old residents, new residents. PIDC is part of the conversation, right? And the corridor managers came up with a plan to turn and move forward. So, tell your story.
Thank you, Council President. And the funding actually came from you for us to be able to --
Yes. So the funding came from you for us to be able to move forward with that. But that is really our model in most corridors. I can point to a North 5th where we started with a plan, right? We -- it's difficult for us to move forward without a plan. And we do provide a limited amount of funding for organizations and corridors to actually undertake plans. And again, yes, it's multifaceted, just as you mentioned. So we have the cleaning that TCB is taking care of. We have the corridor management, right, working with the businesses and making sure that they are present there. But the beginning of it is all a plan. And, again, I appreciate you for providing the funding. But point is worth taking.
You can -- with Jeffrey Young and get your team maybe talk about that same model. Part of his budget request for his district may be creating that overall vision so he can incorporate exactly what he wants to have accomplished.
And we are working with Lower North towards that. Do you want to add to that? DIRECTOR MARTINEZ: I just want to a address briefly the issue of activation of corridors and vacant properties that has been mentioned a couple times and is, you know, one of the issues I would say that I lose sleep over, right? Because the idea that we have these assets and they're dormant, and everybody agrees it's an issue, and how do we work efficiently to stimulate that in a targeted manner? And the Mayor has made very clear to the Commerce Department that she wants to see a strategy. And we are working on a strategy right now that would be, you know, in support of businesses that want to step up, right? Growth ready businesses, corridor ready, businesses that want to step up and be in the corridor, right? And help fill a vacancy. How can we support them? And we believe that the time has come for us to develop a program to address that. We are working on it quietly right now to make sure we have a model that we can feel proud of. But the Mayor has made very clear, she wants Commerce to step into that issue and provide some leadership.
And I would just -- I think that's great. And we're all on board. It's how we work in partnership together. DIRECTOR MARTINEZ: Absolutely.
But also, just making sure that part of that strategy overall, when it's rolled out, it's in consultation with the district councilmembers -- DIRECTOR MARTINEZ: A hundred percent.
-- for rolling out and making sure there's buy-in from the community. And I think that's that synergy that I know we can all do to move the city of Philadelphia forward. DIRECTOR MARTINEZ: Council President, a strategy like that would only work in tight coordination with the district council people.
And the last part, something I deal with in Point Breeze, that we're balancing also is making sure -- and I know Jeffrey is sensitive to this, because I used to come passed Ridge Avenue when I was a young guy from South Philly hanging in North Philly. The Ridge Avenue today is not the Ridge Avenue in the early 2000s, right? And a diverse neighborhood is a strong neighborhood. But we also want to make sure that the neighborhood reflects those -- the long-term residents who live there and maintain the cultural fabric of the neighborhood. And also making sure that we don't have 10 coffee shops on the corridor, right? We can mix it up a little bit. Maybe some Aldis and some Dollar Generals and some CVSs, and not just all, you know -- and I go to Sprouts and stuff like that and Whole Foods, but at the end of the day, I grew up at ACME, and I get it. So we have to make sure that the businesses that do come in reflect the demographics of the neighborhood. But also, from an economic standpoint, like when you have the changing of Girard Avenue, where I can go to the corner store -- can I say the Poppie store and get me a a cheese steak? Well, I don't eat meat anymore. But a platter might cost $2.50, and then that new store comes with that same platter that's $15. And so, you know, it creates a different market inside the neighborhood. So those are things we have to be very, very thoughtful about, in terms of when we -- when we're looking at our corridors and we're making sure that, you know, it's a corridor for everybody. But I know we are on the same page with that. DIRECTOR MARTINEZ: Council President, that's absolutely right. It's not just throwing money at a problem, which is why I'm saying the commitment is there, the requirement from the Mayor is there, and we are currently working on a model that we will then obviously work in collaboration with Council to vet and make sure that it is something that we can all feel proud of.
Looking forward to the plan. DIRECTOR MARTINEZ: Thank you.
Thank you very much. Councilmember Brooks, then Councilmember Jones. Bass, I don't see your light on. Squilla, I don't see a light on. Are you okay? Okay. Then Councilmember Bass. So it's Brooks, Jones, Bass.
Thank you, Council President. My question is for Planning and Development. Are you going to -- they're not here?
They're here. They have not come up and given their presentation just yet.
My questions were kind of connected with Harrity's stuff.
So Councilmember Jones, then Councilmember Bass.
Thank you so much, Mr. President. And I join the course that we'll miss your transition from the Commerce Department, but wish you success. DIRECTOR MARTINEZ: Thank you.
And thank you, thank you, thank you for your team that has meant so much to my district. Couple of things. Number one, I'm looking forward to the tour with your department with the Mayor on Main Street, April 24th, to take a walking tour, ride-around tour about the eclectic nature of Main Street. If Chestnut Hill and South Street had a baby, it would be Main Street because neither one of them have the water that we have in the canal. So we want to get the Mayor up there to share her vision. I'm going to take you back to before your tenure when we had social uprising and some -- and some risings that didn't look real good in the corridors. You represent about 103 corridors. They took a hit when we had that unrest. And many of those corridors still, to this day, have not recovered fully. One of the things that came out of that was we wanted to kind of create a AMBER Alert warning system. When these peaceful protests evolved into something nefarious on our commercial corridors. I'll never forget me and Member Gauthier sharing phone calls about 52nd Street when one of the police -- she was --
Oh, my question is: Where are we with a AMBER Alert warning system that kind of checks in, when we have a peaceful protest that falls into the evening? That we work with the business corridors, the police departments to secure our vulnerable corridors and how to protect them?
And for the record, I do want to acknowledge the work of Curtis Jones, Jr., when George Floyd hit, sound the alarm when they were looting and ravishing Shop Rite. And the key plans in his district at 52nd and Parkside is the impetus of this question. DIRECTOR MARTINEZ: Yes. First, I want to thank you for your leadership around the blueprint. And in preparing for this -- for this testimony, I reflected upon all of the things that we've implemented, aligned with the blueprint report. And I'm proud to say that a lot of that work is underway. I've invited Deputy Director Fegely to answer your question specifically about that tool.