COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT Remote location using Microsoft® Teams Tuesday, November 21, 2023 1:00 p.m. PRESENT: COUNCILMAN MARK SQUILLA, CHAIR COUNCILMAN CURTIS JONES, JR., VICE-CHAIR COUNCILWOMAN KATHERINE GILMORE RICHARDSON
Today is the Committee on Commerce and Economic Development, Tuesday, November 21, 2023. Good afternoon. Before we begin the public hearing, I will make the following announcement: Due to the continued threat of COVID-19, City Council Committees are currently meeting remotely. We are using Microsoft Teams to make these remote hearings possible. Instructions for how the public may view and offer public testimony at public hearings of Council Committees are included in the public hearing notices that are published in the Daily News, Inquirer and Legal Intelligencer prior to the hearings and can also be found on PHLCouncil.com. I now note that the hour has come. Mr. McMonagle, can you please call the roll to take attendance for the people at the hearing today.
Good morning, Mr. Chair. Good morning, colleagues. I am present. Actually good afternoon.
Good afternoon, Mr. Chairman, colleagues. I am present.
Thank you, Mr. Councilman. A quorum of the Committee is present and the hearing is now called to order. This is the public hearing on the Committee of Commerce and Economic Development regarding Bill 12 No. 230109. Mr. McMonagle, can you please read the title of the bill.
Bill No. 230109, adopting an amendment to Section V of the Articles of Incorporation of the Philadelphia Authority for Industrial Development by increasing the Authority's term of existence to a date 50 years from the date of approval of Articles of Amendment by the Secretary of the Commonwealth, under certain terms and conditions.
Thank you. Before we begin hearing testimony from the witnesses we have for today, everyone who has been invited to the meeting to testify should be aware that this public hearing is being recorded. Because the hearing is public, participants and viewers have no reasonable expectation of privacy. By continuing to be in the meeting, you are consenting to being recorded. Additionally, prior to recognizing Members for the questions or comments they have for witnesses, I will note for the record at this time that we will use the chat feature available in Microsoft Teams to allow Members to signify that they wish to be recognized. In order to comply with the Sunshine Act, the chat feature must only be used for this purpose. Mr. McMonagle, would you please call the panel we have to testify this afternoon on Bill No. 1 230109. 2
Sam, just 5 state your name for the record, thank 6 you, and proceed with your testimony. 7
Thank you very 8 much. Good afternoon, Chair Squilla 9 and Vice-Chair Jones and members of 10 the Committee. My name is Sam Rhoads 11 and I am Executive Vice-president for 12 PIDC, the City's public-private 13 economic development corporation. I 14 am here today to provide testimony in 15 support of Bill 230109. This bill 16 would amend the Articles of 17 Incorporation of the Philadelphia 18 Authority for Industrial Development 19 by increasing its term of existence 20 to a date 50 years from the date of 21 approval. 22 By way of background, PAID is 23 a public authority incorporated by 24 the City of Philadelphia and 25 organized under the Commonwealth's Economic Development Finance Act to undertake primarily three activities: First, PAID is a vehicle through which PIDC manages properties and industrial sites on behalf of the City, including property acquisition improvements, environmental remediation and/or sale. Secondly, PAID also issues taxable and tax exempt bonds on behalf of nonprofit organizations, qualified manufacturers and other exempt organizations and the City of Philadelphia pursuant to IRS and Commonwealth regulations. And last, PAID serves as a conduit for City and other governmental contract and grant program funding for economic development projects throughout the City. In accordance with the Commonwealth's economic development finance law, economic development authorities can only exist for up to 50 years and they are not permitted to enter into agreements with initial terms that extend beyond that. In order to accommodate requests for longer term agreements, it is critical to our operations that PAID's existence be extended to the full 50 years. PAID was initially incorporated by the City Council in 1967. And thus, its original term is authorized in 1967 would have expired in 2017. We've previously come before the City Council twice over the last few decades to extend our term of existence. Our current term expires on September 19, 2061, providing less than 38 years of remaining terms which would be problematic for any transactions extending beyond this time. The proposed bill I'm here to testify in support of simply extends PAID's existence. This has previously been done with similar legislation most recently in 2011 and 1991 before that. In closing, extending PAID is important to Philadelphia's continued economic growth and we thank you for your consideration of the legislation that does that. Thanks again for inviting us to provide testimony. We're happy to answer any questions.
Thank you, Sam, for your testimony. How many years were left on the last agreement?
All right. So this would extend it up to 50, correct?
Exactly, which is the most we're able to do under the state law.
Thank you, Mr. Chairman. I just want to briefly for the record acknowledge PIDC's role in the City of Philadelphia's economic development community. And as an economic development practitioner in another life, PCDC, Philadelphia Commercial Development Corporation, I had opportunities to work with this institution on a number of projects in Center City and in neighborhoods. And I wanted to state for the record that PIDC isn't our grandfather's institution. During the pandemic they stepped up to the plate in a big way and helped nontraditional Black and Brown businesses get their piece of the pie through PAID and other financial mechanisms to make sure that they were stakeholders in Philadelphia and I am thankful to being a part of that process. So this is a worthwhile piece of enabling legislation.
Councilman, thank you very much for your support. We really appreciate it. You know we're proud to work with on the various initiatives on that end. So thank you.
Thank you, Mr. Councilmember. Are there any questions from anybody else on the Committee? (No response.)
Hearing no further questions from Members for the panel, is there anyone else here to testify? (No response.)
Hearing nobody else to testify, Sean, is there any public comment today?
Thank you. Since there's nobody else to testify, we'll take a brief break to connect members -- since there is nobody else to testify this afternoon on Bill No. 230109 and no other further questions, we'll conclude the hearing and go into a public meeting. There being no further questions from members of the Committee and no other witnesses, I will ask if there's anyone else present in the hearing whose name we have failed to call and wish to offer testimony on the bill being considered today? (No response.)
Seeing none and hearing none, I want to thank all the panels, especially Mr. Rhoads, witnesses and participants today, we value your opinions. Now, I invite all panels and witnesses to please disconnect from the meeting before we go into a public meeting. We will now pause the proceedings briefly as multiple participants leave the hearing. This concludes the public hearing of the Committee. We will now go into a public meeting to consider the actions to be taken on the bills before this Committee today. We will now convene the public meeting. Mr. McMonagle, can you please call the roll to take attendance. Members in attendance will please indicate that you are present.
I am present. And I note for the record Councilmember Gilmore Richardson is also pres --
Good afternoon, Mr. Chair and colleagues. I am present.
Thank you. That will give us a quorum. We will go into our public meeting. The Chair recognizes Councilmember Jones for a motion on Bill No. 230109.
Thank you, Mr. Chairman. I move that Bill No. 230109 be reported from this Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next session of Council.
Thank you. For the record, the Chair notes that Councilmember Gilmore Richardson seconds the motion. It has been moved and properly seconded that Bill No. 230109 be reported from this Committee with a favorable recommendation and further move that the rules of Council be suspended as to permit the first reading of this bill at the next session of Council. All those in favor of the motion will signify by saying aye. (Aye.)
The ayes have it and the motion carries. That will conclude our meeting for today. Thank you for everybody who participated in today's meeting and were able to get on and get this done very quickly. Everybody have a great day.
Happy Thanksgiving. (Hearing concluded at 1:19 p.m.) C E R T I F I C A T I O N I, hereby certify that the proceedings and evidence noted are contained fully and accurately in the stenographic notes taken by me in the foregoing matter, and that this is a correct transcript of the same. __________________________________ TANEHA CARROLL