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Minutes

Committee Hearing, April 25, 2007

Philadelphia City Council Committee HearingsApr 25, 2007

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Organizations mentioned

Councilman Kenney

Let me ask you a simpler question. How many areas of the City are not certified as blighted?

Mr. Redding

Well, I think in terms of total geography of the City of Philadelphia, roughly one-third of the geography is certified as blighted and eligible for redevelopment.

Councilman Kenney

Right.

Mr. Redding

We do this in order to establish the urban renewal process as a tool, as one of the tools in 145 4/25/07 - RULES - BILL 070005, ETC. the City's toolbox to facilitate community development projects.

Councilman Kenney

In your memory, how many residential properties have been taken in opposition to the owners? I mean, do we take a lot of residential property as a regular course of business? I mean occupied residential property.

Mr. Redding

The objective is to keep any relocation to an absolute minimum, and I don't have an exact number of how many residential takings have been done that were contested.

Councilman Kenney

So generally when we take a residential property for whatever reason, it's not occupied; is that a safe standard?

Mr. Redding

Well, the vast majority of condemnations affect vacant properties. Is that what you're saying?

Councilman Kenney

Yes. All right. I'm done. Thank you.

Mr. Newton

If I may ask a 146 4/25/07 - RULES - BILL 070005, ETC. question, please. Since vast areas of the City seem to be categorized as blighted, I just want to make sure I have the definitions clear. A redevelopment area in terms of this, like three square blocks, is this the same as declaring like a broader area? You're saying everything from South Street to Washington Avenue is a blighted area. Is that the same legal characterization as this three-block redevelopment zone?

Mr. Redding

Yes, it is. It is the same legal characterization. It's a terminology that's required under state redevelopment law in order for the area to be eligible for the use of condemnation in support of these kinds of neighborhood improvement projects.

Council President Verna

The Chair recognizes Councilwoman Miller.

Councilwoman Miller

Thank you, Madam President. Mr. Redding, doesn't it need, 147 4/25/07 - RULES - BILL 070005, ETC. too, that you would not be able to use those NTI bond proceeds, or how does that tie in, if it ties in at all, in terms of the funding for the acquisition?

Mr. Redding

The presence of a redevelopment area or urban renewal area is not related to the ability to use NTI bond proceeds.

Councilwoman Miller

So you can use any funds to do the acquisition for that particular property, correct, at 9th and Ellsworth?

Mr. Redding

You could use City funding, funding from other levels of government or NTI bond proceeds, yes.

Councilwoman Miller

So whether it's blighted or not has nothing to do with acquiring the building? When it's designated --

Mr. Redding

Well, yes. It has a lot to do with acquiring, the ability to acquire. In fact, that's the purpose of the bill today, is to authorize acquisition of that Ice House 148 4/25/07 - RULES - BILL 070005, ETC. property.

Councilwoman Miller

But it certainly doesn't mean that your house is blighted, individual houses are blighted. It just means that that's an area where they're going to do a plan. And I know that a lot of citizens have that mixed up. Many people live in a redevelopment area or urban renewal area.

Mr. Redding

Yes. The Planning Commission is not making a statement that the South Philadelphia area or the Italian Market area is a blighted area. However, really this process began with the notion that there's an important community development project; namely, the renovation or the redevelopment of the Ice House building, and that it was anticipated that condemnation may be needed in order to move that project ahead. That's really what was driving this. And on the basis of that concept, the Redevelopment Authority, the Planning 149 4/25/07 - RULES - BILL 070005, ETC. Commission and City Council met and discussed and said we need a blight certification for this area to establish that tool in case it's needed. The Planning Commission then looked at the possibility of what should the boundary be for the blight certification and the redevelopment area, which, by the way, are two separate reports. And we looked at where concentrations of vacancy were. We looked at where underutilization of property existed -- and sometimes that constitutes surface parking or parking lots -- and we looked at the area of the Italian Market that was lagging behind other areas, that some sections of the Italian Market area were thriving with hardly any vacancy at all, but then there was also an area where we could see that stimulus and investment was needed in order to make the whole area really go even better. So that's the reason that we 150 4/25/07 - RULES - BILL 070005, ETC. established this boundary. Within the boundary, the vast majority of properties would not be touched by any urban renewal action or acquisition or condemnation. For instance, the homes on Darien Street, there's no intention at all. In fact, parts of the Redevelopment Area Plan talked about the need to preserve and reinforce the 9th Street area as a commercial hub and as a mixed-use area. So we understand the historical significance, and what we're trying to do is make strategic small-scale changes to really uplift the entire area. That's really the idea that's behind it.

Councilwoman Miller

And the only focus is on the 40-year-old abandoned building, the Ice House?

Mr. Redding

That's right. The number one need within this redevelopment area, by far the number one need, is to fix up this one property that's the subject of this bill.

Councilwoman Miller

Nobody 151 4/25/07 - RULES - BILL 070005, ETC. else's property is in jeopardy. Okay.

Mr. Redding

That's right.

Councilwoman Miller

Thank you.

Council President Verna

Thank you. Any other questions from members of the Committee? (No response.)

Council President Verna

Thank you very much. Do we have anyone else to testify on this bill?

Mr. Pollock

Can I just have one closing, being the property owner?

Council President Verna

Certainly, Mr. Pollock.

Mr. Pollock

I'll let anybody else go first. INTERPRETER: My name is Kuang Sang Lin.

Council President Verna

Excuse me. We are running rather late. There was supposed to be another hearing 152 4/25/07 - RULES - BILL 070005, ETC. scheduled at o'clock. May I ask you to try to be as brief as possible. INTERPRETER: Uh-huh.

Council President Verna

Thank 6 you. 7 Do you have a copy of what the 8 gentleman has? Maybe you could just read 9 it. 10 INTERPRETER: Oh, okay. 11

Council President Verna

Maybe you could read it. INTERPRETER: Just read it, translation?

Council President Verna

Yes, please, or summarize it. INTERPRETER: Good morning. My name is Kuang Sang Lin and I'm the officer of Fujar (ph) Association. Also, I own a house in the blight area. I heard the news from a local community organization that the City had planned to name this area as blight. I got a mortgage from the bank to buy this house a couple years ago. I use my house in 153 4/25/07 - RULES - BILL 070005, ETC. Chinatown as equity to get this loan. I fixed the house and developed this area. I hope this investment will benefit the education of my children. My son was accepted by University of Pennsylvania this year. I need to support him to go to this college. I'm worried that by making the area blighted, the City will be able to take my house. Then my son cannot finish college. This will be a big financial hardship for my whole family. I would not be able to pay the mortgage, and my son could not be able to afford college. I will be broke and have no money. American is democracy country. I want my representative to represent my need. Thank you.

Council President Verna

Thank you very much. Is there anyone else to testify? (No response.) 154 4/25/07 - RULES - BILL 070005, ETC.

Mr. Lin

Can I ask one question, please? Can you please don't take my house. Please. Please. Thank you very much.

Council President Verna

Thank you. (Applause.) Mr. Pollock, we are really running late. We have another hearing.

Mr. Pollock

Just very briefly, since it's been stated and some of the issues today have been that the blight certification goes farther, but it clearly comes down to -- one building has been targeted, one building has been focused. But I couldn't have orchestrated better citizen witnesses than you've heard today, that you're dealing with a 2000 blight certification. Things have changed in this area. This is -- and physically you haven't seen a shot of what this is, and I've circled it in blue. And I would like the Sergeant-At-Arms to come up. The Ice 155 4/25/07 - RULES - BILL 070005, ETC. House is the biggest building on the property, but what you're hearing today is, this is not a blighted neighborhood. It's a thriving neighborhood. There's private development money coming in. Market forces have worked. Instead of being skeptical and saying, We don't believe this, here is an opportunity to allow to happen through private development what everybody is saying they want. And why then are we putting the City of Philadelphia into the business of being a real estate broker for this one piece of ground where there is -- and I've handed it up and made it part of the record -- an active Agreement of Sale that will do privately what every person has said they want to have happen here, the Ice House to be developed? And why are we making our taxpayers and the rest of the City pay for that when the opportunity is there now? That's my question, and I leave that for you to answer. Thank you. 156 4/25/07 - RULES - BILL 070005, ETC.

Council President Verna

Thank you. This will conclude our public hearing. We will now go into our public meeting, and the Chair recognizes Councilwoman Miller regarding Bill No. -- the Chair recognizes Councilman Greenlee regarding a motion on Bill No. 070005.

Councilman Greenlee

Thank you, Madam President. I move that Bill 12 No. 070005 be approved by this Committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and properly seconded that Bill No. 070005 be reported out of Committee with a favorable recommendation. All in favor will signify by saying aye. (Aye.)

Council President Verna

Those opposed? (No response.) 157 4/25/07 - RULES - BILL 070005, ETC.

Council President Verna

The ayes have it and the motion carries. The Chair recognizes Councilman O'Neill regarding Bill No. 070168.

Councilman O'Neill

Madam President, I move that Bill No. 070168 be reported out of Committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Bill No. 13 070168 be reported out of Committee with a favorable recommendation. All in favor will say aye. (Aye.)

Council President Verna

Those opposed? (No response.)

Council President Verna

The ayes have it. The motion carries. And this concludes our public meeting. Thank you all very much. (Committee on Rules adjourned at 12:55 p.m.) 158 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 April 25, 2007, 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.)