COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, October 26, 2005 2:20 p.m. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIRWOMAN COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILWOMAN MARIAN B. TASCO BILL 050471 - An ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an amount not to exceed One Million Dollars ($1,000,000) to assist in the construction of a new rehearsal facility for the Rock School of Ballet; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions. - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good afternoon. Thank you for your patience. The Committee on Finance for City Council will hold a public hearing now with regard to testimony for the following bill: Bill No. 050471. We will ask the Clerk to please read the title of the bill.
Bill No. 050471, authorizing the Philadelphia Authority for Industrial Development to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an amount not to exceed $1 million to assist in the construction of a new rehearsal facility for the Rock School of Ballet; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions.
Thank you very much. 3 10/26/05 - FINANCE - BILL 050471 The Chair will note as we ask those testifying, I assume it's you Mr. Fina, please come to the witness table, and we will note that we have a quorum present. To my right, Councilman W. Wilson Goode, who was here first. To his right, Councilman Frank DiCicco, in whose district this project is. To my left, Councilwoman Marian Tasco and to her left, the Vice-Chair, Councilwoman Blondell Reynolds Brown. Welcome again. Thank you. Please identify yourself for the record and begin your testimony.
Good afternoon, Chairwoman Blackwell and members of the Finance Committee.
My name is Robert Fina. I am Senior Vice-President of the Philadelphia Industrial Development Corporation, PIDC, and I am appearing on behalf of the Philadelphia Authority for 4 10/26/05 - FINANCE - BILL 050471 Industrial Development, PAID. With me today is my colleague, Krista Williams, from PIDC. I am here today to testify in support of Bill No. 050471, authorizing PAID to apply for a Redevelopment Assistance Grant from the Commonwealth of Pennsylvania in the amount of $1 million for renovations to the Rock School of Ballet in South Philadelphia. The Rock School provides pre-professional dance training at its facility at Broad Street and Washington Avenue. The new rehearsal facility will enable the school to continue and expand its excellent programs. The total cost of the project will be approximately $2 million. The Rock School will provide the required matching funds from private sources. To apply for a Redevelopment Assistant, three principal actions must occur. First, the Commonwealth's legislature must name the project and the 5 10/26/05 - FINANCE - BILL 050471 amount of funding in the approved state capital budget. Second, the Commonwealth's Office of the Budget or the Governor's Office must authorize PAID to submit an application to the Office of the Budget on behalf of the approved project. Third, City Council must approve an ordinance, such as Bill 050471 presently under consideration. In addition to these three primary requirements, the grant recipient must provide documentation that the state funds are matched dollar for dollar with non-Commonwealth funding. When PAID submits a project's Redevelopment Assistance Grant application to the Commonwealth's Office of the Budget, the grant recipient must demonstrate that at least 50 percent of the matching funds, the non-Commonwealth funding, is secured at that time. The Office of the Budget reviews the application materials 6 10/26/05 - FINANCE - BILL 050471 extensively with its team of consultants and PIDC. Based upon this review, the Office of the Budget drafts and executes the project's grant agreement that includes specific conditions the grant recipient must satisfy before receiving any funding. The Commonwealth only funds those projects with approved applications, executed grant agreements with all conditions achieved, and those projects in compliance with all program requirements. The Redevelopment Assistance Capital Program operates on a reimbursement basis for eligible project expenses, such as construction and acquisition costs. Throughout the process, PAID acts as the Applicant/Grantee, and the grant recipients are referred to as the Sub-Applicant/Sub-Grantee. Similar to PIDC's other financing programs, PAID/PIDC act as a conduit lender; that is, when the Commonwealth releases the 7 10/26/05 - FINANCE - BILL 050471 grant funds, it is by a check made out to PAID that we, in turn, disburse to the designated grant recipients. The disbursement process is closely monitored by the project auditors in the Commonwealth's Budget Office and by my colleagues at PIDC. No funds are disbursed unless the projects have documented their compliance with program requirements. I request the Finance Committee's favorable consideration of Bill No. 050471 and that the rules of Council be suspended to permit the first reading at the next regularly scheduled session of City Council. I will be happy to answer any questions you may have. I thank you for your consideration.
Thank you very much, Mr. Fina. Are there any questions or comments?
I just 8 10/26/05 - FINANCE - BILL 050471 have one question.
On where it says, "The Redevelopment Assistance Capital Program operates on a reimbursement basis for eligible project expenses," would you explain that? Does the money that they're giving to the project have to be paid back to them?
No, the money doesn't have to be paid back, but the state will not advance any funds, so the Sub-Applicant, the recipient, must expend the dollars first through a loan or their own funds and then they apply through PAID for reimbursement.
Thank you. Good afternoon. At what juncture are considerations around 9 10/26/05 - FINANCE - BILL 050471 MBE/WBE factors factored in? At what juncture is there a look at that particular concern?
That is discussed with the recipients, but it's on a volunteer basis.
And it's a volunteer basis because there are no City dollars involved in the initiative?
So then let me ask, does PIDC, given the role that you play in this kind of transaction, make that an option, a requirement or what in the process?
It is not a requirement, because we were acting as a conduit for the state dollars.
Thank 10 10/26/05 - FINANCE - BILL 050471 you very much. The Chair notes that Councilman Juan Ramos is present as well. Are there any other questions or concerns from members of the Committee? (No response.)
Seeing none, that will end the public hearing part of our deliberations. We will now enter into the Stated meeting, and the Chair recognizes Councilman DiCicco with regard to a motion and the suspension of the rules for Bill No. 050471.
Thank you, Madam Chair. I move that Bill No. 050471 be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)
It has been moved and seconded that Bill No. 25 050471 be reported out of Committee with 11 10/26/05 - FINANCE - BILL 050471 a favorable recommendation and, furthermore, that a recommendation for the suspension of the rules will occur at this time. All in favor say aye. (Aye.)
The ayes have it and so this bill is reported out of Committee, and that ends all our business here today, and we thank you all. (Committee on Finance adjourned at 2:30 p.m.) - - - 12 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 October 26, 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.)