COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, June 7, 2005, 2:30 p.m. BILL NOS. 050338, 050340, 050377, 050378, 050379, 050456 and 050470 PRESENT: COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN KRAJEWSKI COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN TASCO COUNCILWOMAN DONNA REED MILLER COUNCILMAN JACK KELLY COUNCILMAN DiCICCO V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 2 June 7, 2005 - Public Property
Good afternoon. We'll be convening the Committee on Public Property and Public Works. We currently have a quorum. Councilman Rizzo, Councilwoman Tasco, Councilman Ramos and Councilwoman Joan Krajewski. Good afternoon. And Councilwoman Donna Reed Miller. Will the clerk please read the title of the first bill.
Bill NO. 12 050338, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying, for nominal consideration, fee simple title to certain tracts of City-owned land located at 2227 through 2251 Island Avenue and 7280 through 7282 Saybrook Avenue, with the buildings and improvements thereon, for further conveyance at fair market value. COMMISSIONER SCHLOTTERBECK: Good afternoon, Chairman Clarke and Members of the Committee on Public Works and Public Property. My name is John Schlotterbeck. I 3 June 7, 2005 - Public Property am the Commissioner of the Department of Public Property. I am here today to testify in support of Bill No. 050338, an Ordinance 5 authorizing the Commissioner of Public Property on behalf of the City of Philadelphia to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to a tract of City-owned land located at 2227 to 2251 Island Avenue and 7280 to 7282 Saybrook Avenue, with the buildings and improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. The Department of Public Property supports this measure, and, accordingly, I ask respectfully that City Council approve Bill 21 No. 050338. I also ask that the rules be suspended so that the odninance may be passed upon the second reading of Council. Thank you. I'm happy to answer any questions you may have. 4 June 7, 2005 - Public Property
Thank you, Commissioner. Any questions on this particular bill for this witness? (No response.)
There being none, we will proceed to the next bill. Will the clerk please read the title of the next bill.
Bill No. 050340, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying, for nominal consideration, fee simple title to a certain parking lot approximately 130 feet in depth along the southern side of West Westmoreland Street between Mascher Street and Howard Street, with the improvements thereon, for further conveyance at fair market value.
Please proceed. COMMISSIONER SCHLOTTERBECK: Yes. Good afternoon. My name is Joan 5 June 7, 2005 - Public Property Schlotterbeck. I'm the Commissioner of Public Property. I am here today to testify in support of Bill No. 050340, an Ordinance 5 authorizing me as the Commissioner on behalf of the City to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to a certain parking lot approximately 130 feet in depth along the southern side of West Westmoreland Street between Mascher Street and Howard Street, with the improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. Public Property supports this measure, and, accordingly, I respectfully ask that City Council approve Bill No. 050340. I ask that the rules be suspended so that that ordinance may be passed upon the second reading of Council. Thank you. I'm available to answer any questions you may have. 6 June 7, 2005 - Public Property
Thank you, Mr. Chairman. Just a quick question. Is this the old 25th Police District? COMMISSIONER SCHLOTTERBECK: Yes, it is.
Thank you. Any other questions of this witness by members of the committee? (No response.)
There being none, will the clerk please read the title of the next bill.
Bill No. 050377, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial 7 June 7, 2005 - Public Property Development a deed conveying, for nominal consideration, fee simple title to certain tracts of City-owned land located at 230 to 234 Dickinson Street, with the improvements thereon, for further conveyance at fair market value.
Please proceed. COMMISSIONER SCHLOTTERBECK: My name is Joan Schlotterbeck. I'm the Commissioner of Public Property. I am here today to testify in support of Bill No. 14 050377, an Ordinance authorizing me as Commissioner on behalf of the City to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to certain tracts of City-owned land located at 230 to 234 Dickinson Street, with the improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. 8 June 7, 2005 - Public Property Public Property supports this measure, and, accordingly, I respectfully ask City Council approve Bill No. 050377. I also ask that the rules be suspended so that the ordinance may be passed upon the second reading of Council. Thank you and we are available to answer any questions you may have.
Thank you. Any questions of this witness from members of the committee? (No response.)
There being none, will the clerk please read the title of the next bill.
Bill No. 050378, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying, for nominal consideration, fee simple title to certain 9 June 7, 2005 - Public Property tracts of City-owned land located at 1113 to 1125 North 3rd Street, with the improvements thereon, for further conveyance at fair market value.
Please proceed. COMMISSIONER SCHLOTTERBECK: Joan Schlotterbeck. I am the Commissioner for the Department of Public Property. I am here today to testify in support of Bill No. 12 050378, an Ordinance authorizing me as Public Property Commissioner on behalf of the City to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to certain tracts of City-owned land located at 1113 to 1125 North 3rd Street, with the improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. The Department of Public Property supports this measure, and, accordingly, I 10 June 7, 2005 - Public Property respectfully ask that City Council approve Bill No. 050378. I also ask that the rules be suspended so that the ordinance may be passed upon the second reading at Council. Thank you. I'm available to answer any questions.
Thank you. Any questions of this witness by members of the committee? (No response.)
There being none, will the clerk please read the title of the next bill.
Bill No. 050379, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying, for nominal consideration, fee simple title to certain tracts of City-owned land located at 1049 through 1069 North Front Street, with the 11 June 7, 2005 - Public Property improvements thereon, for further conveyance at fair market value. COMMISSIONER SCHLOTTERBECK: My name is Joan Schlotterbeck. I'm the Commissioner of the Department of Public Property. I am here today to testify in support of Bill No. 050379, an ordinance 9 authorizing me as the Commissioner on behalf of the City of Philadelphia to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to certain tracts of City-owned land located at 1049 to 1069 North Front Street, with the improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. Public Property supports this measure, and, accordingly, I respectfully request Council to approve Bill No. 050379. I also ask that the rules be suspended so that the ordinance may be passed upon the second 12 June 7, 2005 - Public Property reading at Council. Thank you and I'm available to answer any questions you may have.
Yes. Thank you, Commissioner. Commissioner, I'm assuming that these properties are all a part of the City's asset sales? COMMISSIONER SCHLOTTERBECK: Yes.
And they will be charged to your department? COMMISSIONER SCHLOTTERBECK: Yes.
As it relates to -- COMMISSIONER SCHLOTTERBECK: My personal bank account. (Laughter.)
Okay. So we're essentially just using PAID as a conduit for purposes of sale? COMMISSIONER SCHLOTTERBECK: Yes.
Thank you. 13 June 7, 2005 - Public Property Any questions of this witness by members of the committee? (No response.)
There being none, will the clerk please read the title of next bill.
Bill No. 050456, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to a certain tract of City-owned land situate in an area generally located on the east side of University Avenue between Guardian Drive and Curie Boulevard, with the buildings and improvements thereon, for further conveyance at fair market value. COMMISSIONER SCHLOTTERBECK: My name is Joan Schlotterbeck. I'm the Commissioner of the Department of Public 14 June 7, 2005 - Public Property Property. I am here today to testify in support of Bill No. 050456, an Ordinance 4 authorizing me as the Commissioner on behalf of the City to execute and deliver to Philadelphia Authority for Industrial Development, for nominal consideration, a deed conveying fee simple title to certain tracts of City-owned land in an area generally located on the east side of University Avenue between Guardian Drive and Curie Boulevard, with the buildings and improvements thereon, for further conveyance by PIDC at fair market value, with the net proceeds to be returned to the General Fund. The Department of Public Property supports this measure, and, accordingly, I respectfully ask that City Council approve Bill No. 050456. I also ask that the rules be suspended so that the ordinance may pass upon the second reading of Council. Thank you.
Thank you. Any questions of this witness? (No response.) 15 June 7, 2005 - Public Property
Commissioner, as it relates to our appraisal process, are we faring any better on clearing up our backlogs on appraisals? I know one time we were talking about our ability to get appraisals and we had a limited amount of appraisers. Are we further along on that? COMMISSIONER SCHLOTTERBECK: Yes. We actually had an approved productivity bank loan for $200,000 to proceed with our appraisals. We're doing a great job.
Okay. On any of these particular conveyances do we have expressions of interest or will PAID essentially go out and start marketing the properties? COMMISSIONER SCHLOTTERBECK: We actually have -- basically on every single one of them there's an interested party or parties.
An 16 June 7, 2005 - Public Property interested party? COMMISSIONER SCHLOTTERBECK: Yes.
And that will be done via RFP or does PAID have the ability to essentially negotiate a sale without -- COMMISSIONER SCHLOTTERBECK: Actually, we do both, but, no, they don't negotiate sales without us, no. 12
I guess my question is, if there's opportunities for purchase of public property, is there -- I hate to use this term since it's been thrown around so much lately -- some levels of transparency as it relates to the acquisition process or does an interested party essentially just contact somebody in Public Property and say, I'm interested in buying this publicly owned piece of land, you start some discussions and then you send it to PAID and then PAID consummates the deal with the interested party? COMMISSIONER SCHLOTTERBECK: 17 June 7, 2005 - Public Property Yes, but go ahead, John. DEPUTY COMMISSIONER HERZINS: My name is John Herzins, Deputy Commissioner. The process we've been working with, which has been working out well, is, when we have an interested party, we refer the interested party to the respective Councilperson to discuss with them their plans for the site, and then we also work with -- then we work with PIDC to gather the appraisal information and to help us either market the property or put it up -- we also put up signs, if there's more than one interested party. We also do an RFP on those properties where we know there will be a significant amount of interest.
You say you can do one of those three things? DEPUTY COMMISSIONER HERZINS: Right. There are a number of properties we currently have signs up for where we've received 10 to 15 inquiries or offers on the sites.
All right. 18 June 7, 2005 - Public Property Under the proposed contracts legislation that will be voted on by the members, will this process be affected in any way, shape or form? Will there now be a requirement for the purchaser to -- COMMISSIONER SCHLOTTERBECK: You know what, I don't believe it will, but --
Because I think the proposed legislation asks City-related agencies, and I think PAID is a City-related agency. COMMISSIONER SCHLOTTERBECK: I do not believe it will be, but I guess I can get clarity. I have John Mondlak here from the Law Department. He did not do any specific --
Councilman, my name is John Mondlak. I'm Deputy City Solicitor in the Law Department. And I do not know. I'm not familiar with that piece of legislation. I know it's out there, but I'm not familiar with the specifics of it. I'll be glad to take a look at it and get a quick answer to you. 19 June 7, 2005 - Public Property
I'm just wondering, because I know there was a lot of discussion about the process and at one point City agencies were out of the bill, so people didn't pay a lot of attention to it. Now I understand it's back in the bill. And I guess I'm trying to understand can an individual under that proposed legislation enter into an informal discussion with first the department, then subsequently the Councilmember and ultimately consummate a deal or would that have to be posted on an Internet, would it have to be left for bid or adding some additional process? Given the nature and the number of these things we do, I think it's important that we, at a minimum, have a sense whether or not that is in fact incorporated into the proposed legislation. COMMISSIONER SCHLOTTERBECK: Okay. I have to be honest with you, I ask about many things that would impact on my department and would you believe that I never raised that? So we will get that answer. 20 June 7, 2005 - Public Property
All right. Thank you. Any questions of this witness? (No response.)
There being none, will the clerk please read the title of the next bill.
Bill No. 050470, an Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development a deed conveying, for nominal consideration, fee simple title to three adjacent parcels measuring approximately 67,500 square feet in total, all three parcels bounded generally by 12th Street on the west, Wharton Street on the north, 11th Street on the east and Reed Street on the south and southeast, with the buildings and improvements thereon, for further conveyance at fair market value. 21 June 7, 2005 - Public Property
Thank you. Please proceed. COMMISSIONER SCHLOTTERBECK: My name is Joan Schlotterbeck. I am Commissioner of the Department of Public Property. I am here today to testify in support of Bill No. 8 050470, an ordinance authorizing me as the Commissioner on behalf of the City to execute and deliver to PIDC, for nominal consideration, a deed conveying fee simple title to three adjacent parcels measuring approximately 67,500 square feet in total, all three parcels bounded generally by 12th Street on the west, Wharton on the north, 11th on the east and Reed on the south and southeast, with the buildings and improvements thereon, for further conveyance by the Philadelphia Authority for Industrial Development at fair market value, with the net proceeds to be returned to the General Fund. The Department of Public Property supports this measure, and, accordingly, I respectfully ask City Council to approve this Bill No. 050470. I also ask that the rules be 22 June 7, 2005 - Public Property suspended so that the ordinance may be passed upon the second reading at Council. Thank you.
Thank you, Mr. Chairman. Good afternoon, Commissioner. Concerning the parcels at 12th and Wharton, is it possible or would it be possible to subdivide a sale or is it going to be sold as a package? I mean, I know of someone prior to you becoming the Commissioner -- which I vented on a few times, and, again, I apologize, it was not meant for you -- that had made an offer on the parking lot when it was 90,000. It is now, I think, appraised at 450,000. So, in effect, if that person or some other person wanted just to buy the parking lot and not the Fleet Management building and the other parcel attached to it, would that be possible or does it have to be 23 June 7, 2005 - Public Property sold as a package? COMMISSIONER SCHLOTTERBECK: It was my understanding that since our discussion that the interested party wanted all of the parcels.
That interested party, the purpose was building a charter high school, but if that fails for whatever reason, I just was curious if for some reason that doesn't happen, is there any restriction on subdividing it? COMMISSIONER SCHLOTTERBECK: I don't believe so.
No. We did have a separate appraisal on the parking lot. We would have to introduce another ordinance, because we combined the two packages into this one.
I just want to protect everyone's interest in the event that the charter high school doesn't move forward in order to accommodate selling our assets, we may have other buyers, and I just didn't want to make sure if it was not 24 June 7, 2005 - Public Property being -- if someone didn't have the wherewithal to do the entire package, could they buy one or two of the parcels.
Thank you, Councilman. Any other questions of these witnesses? (No response.)
There being none, this concludes the public hearing on Committee on Public Property and Public Works. (Public hearing on Committee on Public Property and Public Works adjourned at 2:50 p.m.) - - - 25 June 7, 2005 - Public Property CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 7, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.) June 7, 2005 - Public Property COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING - COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, June 7, 2005, 2:50 p.m. BILL NOS. 050338, 050340, 050377, 050378, 050379, 050456 and 050470 PRESENT: COUNCILMAN DARRELL L. CLARKE COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN TASCO COUNCILMAN JACK KELLY COUNCILWOMAN DONNA REED MILLER V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 27 June 7, 2005 - Public Property
We will now go into the public meeting. Councilwoman Miller, can I please hear a motion on 050338.
Yes. Mr. Chair, I move that Bill No. 050388 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.
Bill No. 20 050338 will be reported out of committee with a favorable recommendation with a rules suspension. Councilwoman Miller.
I move that Bill No. 050340 be reported out of this 28 June 7, 2005 - Public Property committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.
The ayes have it. Bill 050340 will be reported out of committee with a favorable recommendation with a rules suspension. Councilwoman Miller.
Mr. Chair, I move that Bill No. 050377 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.
All in 29 June 7, 2005 - Public Property favor? COUNCIL MEMBERS: Aye.
The ayes have it. Bill 050377 will be reported out of committee with a favorable recommendation with a request for rules suspenion. Councilwoman Miller.
I move that Bill No. 050378 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.
It's been motioned and seconded. All in favor? COUNCIL MEMBERS: Aye.
All opposed? (No response.) 30 June 7, 2005 - Public Property
The ayes have it. Bill 050378 is reported out of committee with a favorable recommendation. Councilwoman Miller.
Yes. I move that Bill No. 050379 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.
It's been moved and seconded. All in support? COUNCIL MEMBERS: Aye.
The ayes have it. Bill 050379 is reported out of committee with a favorable recommendation. Councilwoman Miller.
Yes. I move, Mr. Chair, that Bill No. 050456 be 31 June 7, 2005 - Public Property reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at the next session.
It's been moved and seconded. All in favor? COUNCIL MEMBERS: Aye.
Bill 050456 will be reported out of committee with a favorable recommendation with a rules suspension. Councilwoman Miller.
Yes, Mr. Chair. I move that Bill No. 050470 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at the next session.
Moved and seconded. All in favor? COUNCIL MEMBERS: Aye.
The ayes have it. Bill 050470 will be reported out of committee with a favorable recommendation. This concludes the public meeting. Thank you all very much. (Public Meeting on Committee on Public Property and Public Works concluded at 2:55 p.m.) - - - 33 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 7, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)