COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING BEFORE THE COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, October 28, 1997 10:50 a.m. - - - BILL 970275 - An Ordinance authorizing the extension of the terms of the Authority known as the "South Street/Headhouse District of Philadelphia." - - - PRESENT: JAMES F. KENNEY, Vice-Chair COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN ANNA C. VERNA COUNCILMAN FRANK DiCiCCO COUNCILMAN RICHARD T. MARIANO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center Plaza, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 I N D E X BILL 970275 Steven Kujolic, Chairman, Board of Directors, South Street Headhouse District-------------- Richard W. Ostrander, Executive Director, South Street Headhouse District-------------------- 6 Ann G. Verber, Chair, Planning Committee, South Street Headhouse District-------------------- 18 7 David Cohen, Consultant, South Street Headhouse District------------------------------------- 33 8 Ray Kauffman, Board Member, South Street Headhouse District--------------------------- 37 9 Fluffy Palmer, President, South Street Neighbors Association---------------------------------- 39 10 Melvin J. Buckman, President, Society Hill Civic Association---------------------------------- 44 Bernice T. Hamel, President, Head House Conservancy---------------------------------- 52 Irwin Edward Robinson, Solicitor, Blackwell Place Condo Association---------------------- 63 Alan Hunter, President, Queen Village Neighbors Association---------------------------------- 72 Deborah Robinson, Member, Blackwell Place Condominium Association---------------------- 87 - - - Public Meeting---------------------------------- 97 - - - 3 BILL 970275 P R O C E E D I N G S CHAIRMAN KENNEY: Good morning, ladies and gentlemen. The Council Committee on Rules is now in session to take testimony on Bill 6 No. 970275. In attendance today are myself, Councilman Kenney, as Chair; Councilwoman Verna; Councilman DiCicco and Councilman Mariano, who are not formally on this Committee but are being assigned today for purposes of a quorum. Before we get started, I would like to sincerely apologize to all the people who came here today to testify. Every single one of you I think I know. And I know every single one of you work for a living and have taken time out of your businesses and out of your day to come here. And the least that this Council could do is to be here on time at 10 o'clock, as you were. Councilman DiCicco is the sponsor of the bill. He was going to be here. Councilman Mariano was not scheduled to be here and has come specially to get us a quorum. So we do apologize. I guess it is 4 BILL 970275 the choir apologizing to the pastor. But I just wanted to make sure that we made it clear that we do apologize four your inconvenience and thank you for coming. This, Bill 970275, is an Ordinance 7 authorizing the extension of the term of the Authority known as the "South Street/Headhouse District of Philadelphia," pursuant to the provisions of the Municipality Authorities Act of 1945, P.L. 382, as amended; approving the plan, estimated costs and proposed method of assessment and charges for and concerning business improvements and administrative services to the South Street and Headhouse areas of the City of Philadelphia. The Chair would like to call the first panel of witnesses, Steve Kujolic, Dick Ostrander, and Ann Verber. Please pull the microphone very close to you, speak directly into it, and identify yourself for the record.
Steve Kujolic. I am Chairman of the South Street Headhouse District. CHAIRMAN KENNEY: Please proceed. 5 BILL 970275
Of course in front of you, you have my testimony. So there is no point in going over that or reading that. CHAIRMAN KENNEY: For the record, if you could synopsize your testimony without reading it word for word, and give us a general idea as to what it is your position is.
Okay. That's what I was going to do. CHAIRMAN KENNEY: Thank you.
The thing that I would like to mention is, take a few points out of this text and discuss them with you. The years of operation was the 16 first thing on my list. The reason we are trying to 17 go for the 20 years is stability. 18 About two, three years ago, Ann 19 Verber and myself and a couple of other people have 20 gone for financial positions to build our plazas down there, and each and every one of them needed stability. Five years that we have originally started for does not give us the stability for any financial lender to give us the position that we 6 BILL 970275 have to go out and borrow or float bonds. When Center City District took the initiative to go for the years, we followed in 5 their -- right behind them and went for the 20 years 6 for that reason. 7 Whether it is for a plaza, whether it 8 is for other items that we want to do on South 9 Street, we still need the stability of the long 10 term. 11 We certainly do not like to tax 12 ourselves for this long of a period of time. But we 13 realize if we want to keep our area the way it is, 14 we need this. 15 The other item that I would like to 16 talk about is the sidewalk, the cleaning and the 17 things that we have done on South Street. 18 A great deal of our budget money, 19 over $100,000, is spent for cleaning of South 20 Street. Of course we know there is an abundance of people that come down to that street. We only collect a little over $200,000 totally in our budget. But we feel it is very, very important to keep the area the way it is and the way it's been. 7 BILL 970275 The last five years of our existence, I think there's been a great, great improvement in the South Street area as far as the sanitation goes, and things like that. There is a lot more to do on it. The other thing, of course, is to have the police mini-station on the street. Our budget also provides over $20,000 in support for the mini-station, which brings us the police that we need down there on time with -- for the crowds. The neighborhoods, the district, we all support this mini-station. I think it is a great improvement. I think it is a great thing for people, when they come into the city, to have the security of the police at this location. So that's another part of our budget that we work with. My constituents will tell you a little about our organizing process, so I am not going to get into that. The only thing I did want to get into, and the last thing I want to get into, is that I am one of the founding members of the district. I have been working very, very hard for this district for seven years now. It started in existence five years 8 BILL 970275 ago, but two years prior to that we worked in back rooms, in Downey's Restaurant, and anyplace that we could find to bring all these people together and to see what we could do about South Street. I myself think nothing of people -- or putting people on the Board, or anything like that, that really worked for the district. We have residents on the Board. We have businesspeople on the Board. We don't need free-loaders. We don't need people with figure heads that just say they are on the Board of South Street District; we need workers. Businesspeople are very, very tied up most of the time, and the residents that we have on the Board do work for us. There's a 23-member Board. It is not a big Board, but we accomplish a lot of things. In the last four and a half years, I don't think that the South Street area would be like it is if it wasn't for the district. We have set up different committees where we bring the neighborhood groups in. Ann and myself have worked five years ago on setting up a Committee with the zoning. 9 BILL 970275 And our objective was to have an one-stop-shop for people coming into the area that wanted to open up businesses. It was very difficult before to -- for people coming in. They would have to go to all the different committees. Well, up until this year, this committee is starting to roll.
Our past president is chairing that committee. But on that committee he has Queen Village, he has South Street Neighbors, and he has representatives of those two groups that attend these meetings. And everybody gets a feed for when these people come in and form -- want to form a business. We hear it all at one spot. So these are little things that we do. And we try to bring everything into being with the neighborhoods. I live in the neighborhood for over years, so it is not something that I don't think 21 highly of. 22 I work there. I live there. And we 23 try to bring everybody together with forums, with 24 meetings, with committees. 25 I just don't have a feel when people 10 BILL 970275 do not take advantage of this, and just want to be on the Board just to be on the Board. I thank you for hearing me. I don't want to take too much time. But these are just some of the points that I wanted to bring out. CHAIRMAN KENNEY: Thank you for your testimony. We will go through the entire panel and then we will ask questions.
I am Dick Ostrander. I am the Executive Director of the South Street Headhouse District. I am one of the founding Board members of the district, and was a Board member for about the first two years of the district's existence. I live a block and a half from South Street, in a house on the 400 block of South 6th Street, where we moved 27 years ago, and soon discovered that South Street was a vital part of our lives. And soon discovered and made a realization, which I realize more today than ever, that a healthy South Street, a good, vibrant business community on South Street means everybody in the world to all of the surrounding residential 11 BILL 970275 communities. It has been my belief for years, and it is firmly and strongly today, that a South Street in good health, in good business health, a good economy, raises property values in all the surrounding communities. It is an absolute necessity, in addition to being a lot of fun, the places to go. If I may just refer very briefly to Steve's final comment. He mentioned the Zoning Committee, and that several neighborhood groups were on that committee and regularly appeared. He left on Society Hill Civic association, whose Zoning chairperson has always been on our invitation list, but has, unfortunately, never attended one of our meetings. I am here, basically, to talk about the organizing process, about where we hope to go tomorrow, and detail a little bit the renewal process that we have been through, Mr. Chairman. And I only intend to take two or three minutes. The organizing process was an amazing one. You or your representative, Mr. Chairman, were frequently in attendance, as was our then 12 BILL 970275 Councilman, representatives from various City departments, the Police Department, the Commerce Department, the Mayor's Office, et cetera. It was an exciting and complicated time. We spent many, many months and many, many meetings going over how we were to compose ourselves, how we were to organize ourselves, who would be and who would not be represented on the Board, and how those positions were to be chosen. We have with us today, sitting back available for comment, if you need his comments, Mr. David Cohen, who was then with CPDC, the Central Philadelphia Development Corporation, was our consultant in the organizing process. And, in fact, has been our consultant again in the renewal process. One of the things that we debated extensively, and I know you are going to hear more about it from several people this morning, was who and how should people be represented on the Board. There were discussions about whether each block should have a designated seat on the Board. There were discussions about whether each neighborhood should have a designated seat on the 13 BILL 970275 Board. There were discussions about each business category -- restaurants, retail, drugstore, various business categories -- each having a designated seat on the Board. The decision, after a lot of consideration, was that that really was not the best and strongest way to guarantee a good and strong and continuing Board. And the bylaws were very carefully drafted to be as inclusive as possible, allowing any person who has interest in the support and benefit and welfare of the district to be qualified for membership on our Board. And it is that way today. I think that Ann Verber will make specific reference to it. It is part of our Article 18 5 in the bylaws. And there is a single paragraph which very specifically deals with the process, and is advertised annually as we go to the nomination process. I recall one of the fun things as we started our district was, we had several classes of membership. Five-year terms were specified, but you have to start some place. 14 BILL 970275 So we started with memberships of one, two, three, four, and five years. And we drew straws to see who was going to get which membership category, and then we acted accordingly.
Looking a little bit toward the future, which is the second thing I am to spend my time with, I put on the floor just in front of the table two renderings, two artistic renderings, of the Streetscape Project, which has been a project that has been under consideration by us and which we hope to forward. And it is a complicated and difficult and costly project. When the Delta Group originally created these plans, and looked over the work area, over two years ago, two and a half years ago, the project was estimated to cost in excess of $12 million. I would imagine that that project today would be costed at maybe $15 million, or some such number. We don't have an exact number. We do know it is a highly desirable development. The things that you are looking at were first presented to public meetings held at the 4th and Pine Street Community Center two years ago 15 BILL 970275 January. They were almost universally applauded, welcomed, and people wished us well in the process. As we go forward in our renewal process, the Streetscape is one of the principal reasons for our interest in an extended renewal period. We will be working to get included in the capital budget, and I'm sure that we will be back to City Council in one fashion or another for that. We will also be looking toward the Commonwealth, towards the federal government, towards foundations, towards corporate sponsors, towards businesspeople in the community to support the project with financial aid. Clearly, every one of these funding sources is going to require stability. They will require an extended period of our existence, as was the case in the Center City District, when they were renewed for 20 years so that they could float a bond issue to support the project which is now going on so significantly and so stunningly. The improvements they have made are made because they have the 20-year stability. That 16 BILL 970275 is what we ask for 20 years for. My final comments will be, briefly, about our actual renewal process. And I won't deviate very much from the statement, the written statement, which you have, because it is a very precise process, and I don't want to risk misstating. The procedure requires that every property owner who has a chance to be assessed may be -- must be advised of the renewal process. And after that, they have a 45-day period during which they may vote us down, if you will, by responding that they do not wish to have the district renewed. If more than one-third of the property owners take that step, if they vote against us, the district ceases to exist, it automatically is down. In our case, that down number means that we would have to have in the vicinity of 150 to 175 objections. I have forgotten the exact number of assessed properties. But it is on the low side under 200, but approaching that number. In our particular case, nearly a thousand formal letters were mailed to all of the 17 BILL 970275 property owners and also to all of the business owners. The business owners do not have a vote unless they own the property. But they have the privilege of speaking to their landlords and saying the district is or is not doing a good job, and they should or should not be renewed. I have copies of those letters, if you are interested in them. I have a copy of the public notice that was published on April 22, advising everybody of the community hearing, which was held on May 6 at the Old Pine Community Center. The 45-day period for objections to the renewal process expired on the 20th day of June. We were amazed, surprised, and delighted, any wonderful adjective that you would like to apply, on the date of June to find that 20 we had a grand total of one objection, one. It was an astounding affirmation of what we had done. The assessments are not insignificant. And everybody -- I made reference here when I was writing my notes, looking over my notes last night, that I remembered the Ivory Soap 18 BILL 970275 slogan.
99-and-44-one-hundredths percent pure. We exceeded that. Almost as close to -- literally as close to 100 percent as you can get. We feel strongly that we have an excellent opportunity to make significant contributions to the community at large, to the South Street Headhouse District, and to the neighboring communities as we go forward. We are hopeful that your actions today will help us in that process of renewal. Thank you. CHAIRMAN KENNEY: Thank you very much for your testimony. Please identify yourself and proceed.
My name is Ann Verber. I am the Chair of the Planning Committee for the District. I am the Chair of the Nominating Committee. I am on the Board, and was one of the founding Board members when the district was brought into existence. I was on the committee early on that contained the business and commercial representatives, the community representatives. 19 BILL 970275 I was at that time the President of Queen Village Neighbors. I lived in Queen Village for years, and have just moved into Society 5 Hill. So I am still bracketing South Street. 6 Dick Ostrander was the Chair of 7 Society Hill Civic. Dominic Lazaro was representing 8 Bella Vista. 9 And I think I would like to make the 10 point that the district began with an all-inclusive 11 consideration of business and communities. 12 The organizers of the district, who 13 were the initial property owners, who had the idea 14 in the first place, understood that this is a commercial business district. That, by law, the only people who can be actual members, voting members, of the district are those who own property within the boundaries of the district, commercial property. However, there was a sensitivity then, which we were all very pleased about -- and I believe it has continued -- to the neighborhood concerns. Because although residents of Queen Village and Society Hill, Bella Vista, the 20 BILL 970275 neighbors' associations, would not actually ever be assessed for taxes or voting on the renewal of the district, the impact of the founding of the district was going to be felt in an area that was much larger than just the corridor of South Street. And, so, residential input was sought right from the beginning. And the Chairs of the various civic groups were asked to participate, or to delegate the initial representation. And the Chairs all decided to participate because we wanted to see what was happening. And we were all part of the ensuing debate about how the Board of the district would be structured once City Council voted the district into existence. And we realized that the district is not going to have a great many outside resources. Our budget is not large. We have one professional staff member we employ, one part-time business -- one part-time bookkeeper, and we needed to depend on our Board members, and, through them, our committee structures, to accomplish all of the work of the district. 21 BILL 970275 So it was decided, as Dick said -- and I won't continue to repeat -- that we would elect people to the Board as individuals who showed an interest in rolling up their sleeves and coming to work, individuals who wanted to further the goals of the district and who were willing to put in the time that we could not pay professionals to, you know, to do for us. The bylaws, which you have in front of you, the main section that we wanted to call your attention to about the nominations, show that it is individuals who are solicited to participate on the district Board. We have a nominating process. We do -- well, let me step back a moment. We do all our business in the sunshine. We are the most open organization that we can possibly be. Our monthly Board meetings are advertised well in advance. They occur on the same day of each month. And all the public is invited to participate. And we often have a very nice gallery of interested people who come and participate and comment and give us the benefit of their thinking. We have a very active committee 22 BILL 970275 structure. And the Board members are involved in the committees. We have, just for your information, Sanitation Committee, Public Safety, Traffic and Parking, Marketing and Promotion, Zoning, Business Communication, Street Decor, and Development and Planning. And the business of the district gets done in those committees, the work gets done in the committees, and then comes up to the Board for public discussion, public approval, modification if something isn't working.
When we have our annual election of Board members to fill expiring or vacant terms, we publicize this for -- well, for weeks in advance. We invite self-nominations of people who are interested in working. We encourage people who nominate themselves and say, "This sounds good. I'd like to be on the Board," we encourage them to join us, to come into the committees, to work and to see what we're all about, and we get to know them and they get to know us. It doesn't work 100 percent of the time exactly that way. But in order to get our work 23 BILL 970275 done, we need people who are going to come and do the business of the district. We have a very, very diverse Board. And attached to my testimony is a list -- at the very end is a list of the Board members listed by their neighborhood of residence. And of the Board members, 15 are 9 clustered around South Street. We have 5 from 10 Society Hill, 5 from Queen Village, 2 from South 11 Philadelphia, 2 from Bella Vista, we have a Wash 12 West representative, and then we have a handful of 13 business owners who commute in from the suburbs and 14 get caught in traffic every time we have an 15 early-morning Board meeting. 16 COUNCILMAN DiCICCO: That's why they 17 should move back. 18 CHAIRMAN KENNEY: They could avoid 19 that if they would just move back. 20
If they only knew the 21 right place to live, they could avoid all of that. 22
That's probably true. The other point that I would like to 24 BILL 970275 make is to just reaffirm, from my perspective as Chair of the Planning Committee, the need for us to be able to stay in business for the period of time for which we have asked reauthorization. There are many of us here who have been traveling the circuit from one funding source to another to try to do the things that will achieve our goals, which really is to make South Street not only a benefit for the businesspeople who live there, but a vital link in the whole city development for tourists' visits, for entertainment, and yet to keep it civil so that all the surrounding communities can enjoy the improvement of South Street, without being burdened by incivilities that might go along with bringing in more people. When we have taken our dog and pony show on the road to potential funders, we have been told, "Well, this is a great idea. We love it. Who else is going to support you, and how do we know you are going to be here?" So that if we, a corporate sponsor, wants to dedicate a plaza, that sponsor isn't going to want to see the corporate logo over an area where grass is growing through the cracks because suddenly 25 BILL 970275 we are out of business. And it makes a difference to the -- our ability to continue and to achieve our expanded goals for the future. And I want to thank you very much for the opportunity to present this testimony. CHAIRMAN KENNEY: Thank you very much for your testimony. On a personal comment, the work of the district, I think, has made a marked improvement on the condition of the street, primarily its cleanliness. One of the problems that I was very concerned about a number of years ago was the sidewalks had seemed to be caked with material from restaurants and people dropping. There is just such a significant difference in the quality of sidewalk and just in the organizational aspects of the street. That there seems to be a lot more order, without decreasing the benefits of the eclectic nature of South Street. I think you have had a nice mix of order and still freedom and funk and other things BILL 970275 that make the street what it is. But it is cleaner and safer, I feel safer there, than in the past number of years. And I really think you have done a wonderful job. One question. Do you have any numbers on the average annual cost per business? I know businesses pay different rates based on their assessment. But I'm wondering if there has ever been established what each individual businessperson on average is putting into the district.
David Cohen could address that. He probably, David probably, knows the formula. The formula is rather archaic. It involves a calculation that includes the combined value of all the properties in the district. And the other factors that are considered are the individual assessment related to that combined value, and the district's budget related to that. So there is no specific number. It depends upon the valuation of the individual property. The more expensive properties pay more. As a rule of thumb, as just a 27 BILL 970275 round -- this is sort of the number -- it is about a percent surcharge on their regular city taxes. It 4 is in that vicinity. 5 CHAIRMAN KENNEY: Not insignificant. 6
Not insignificant. 7 CHAIRMAN KENNEY: And so the record is clear, there is no cost whatsoever to any residential property owner in the district or around the district, for that matter?
Any residential property owner is invited -- they receive an assessment bill at the proper time of year, which will be in late January. At that time, any single-family, owner-occupied dwelling can exempt themselves from paying the assessment simply by filing a piece of paper. And that's very clear. CHAIRMAN KENNEY: And the solicitation on this go-around for commercial property owners, was it clear to them that the request was going to be made for a 20-year term?
It was, indeed. It was part of the letter. And enclosed with the -- enclosed 28 BILL 970275 with the renewal letter was the district renewal plan, the reauthorization plan, which you have seen copies of, and which details exactly what our mission is, what our expectations are, and what the assessment -- how the assessment formula will be adjusted over the years. CHAIRMAN KENNEY: Okay. Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Mr. Chairman. My question any one of you can answer. When this Streetscape plan was first designed, or when you began the design of it, how long ago was that? I remember attending, I think it may have been at the Society Hill Sheraton or some place, there was a lender came in and did a slide presentation?
Yes. We contracted with the Delta Group between four and five years ago to start this process. And they have very generously exceeded the amount we were able to start with them, 29 BILL 970275 to give us additional updates and renderings and to suggest how costs might be cut without sacrificing the overall plan. We have pursued it actively, and have been hampered because money is -- as certainly I am preaching to the choir -- money is not easily available and we did not have the -- either a track record or a guarantee that we were going to be able to use and then administer and maintain what we were asking people to give to us. We have had a tremendously enthusiastic reception, as I think you know. And I believe that if Council authorizes the district under the pending reauthorization proposal, that, plus our planning of how we can break the project into segments and have the segments funded individually, will bear fruit very soon. I think we are going to be able to hit the ground running if we get the reauthorization. COUNCILMAN DiCICCO: So my point, I guess, is that since the inception, the vision, the idea of the new Streetscape plan, you have already spent between four and five years -- without being 30 BILL 970275 critical -- and the best we have gotten is, obviously, some drawings and a concept and a plan. But we haven't been able to go any further. And it took almost five years to get to that point.
I can speak to the date. The Delta Group's work came to a state where it could be publicly exposed for the first time late in 1994, and there was a public meeting. They took the comments from that meeting, made additions, changes, and subsequently came back to us, to another public meeting, which was in January of 1995. And that was the first time at which we saw these color renderings. COUNCILMAN DiCICCO: I guess that's the presentation that I was present at. I didn't even think I would be a Councilman at that time.
I believe you were at 31 BILL 970275 that meeting. COUNCILMAN DiCICCO: Thank you. And if I can read into the record, there is a letter from Paul Levy, who was not able to be here this morning, and asked that I read this into the record. Paul Levy is the Executive Director of the Center City District. CHAIRMAN KENNEY: Please proceed. COUNCILMAN DiCICCO: "I am writing in support of the proposed reauthorization of the South Street Headhouse District. The South Street community has demonstrated clearly that they have been able to make the special service district concept work in a smaller scale commercial district. "My understanding is that they have been reauthorized by an almost unanimous vote of the affected property owners who must pay the supplementary charges. "They have thus served as an important model for neighborhoods across the city who may have initially thought that this approach could only work in densely populated, central business districts. 32 BILL 970275 "I am in support, as well, of the proposed longer life for the South Street Headhouse District to give them the long-term stability necessary to carry out Streetscape improvements." Signed by Paul R. Levy, Executive Director of Center City District. CHAIRMAN KENNEY: That will be made part of the record. The Chair recognizes Councilwoman Verna.
Thank you, Mr. Chairman. I don't have any questions. I simply want to tell you how impressed I am with your testimony. I think that you are certainly well organized. And I want to applaud you, because, I will tell you, it is not very frequently that we get groups come in as organized as you have been. And I think that you are to be applauded for all of your contributions. CHAIRMAN KENNEY: Thank you very much. Thank you for your testimony.
Thank you for the 33 BILL 970275 opportunity. Mr. Cohen and Mr. Kauffman, do you have anything you want to add?
Thank you. I am David Cohen, and I am a consultant to the South Street Headhouse District. I consulted initially in a prior capacity to help get the district up and running. And I have also been involved in working with the district on the process to getting reauthorized this time. I just want to make a brief statement about the 20-year reauthorization time period. Under the enabling legislation, the Municipality Authorities Act of 1945, as amended, districts can be operational for a period up to 50 years. So under the legal basis, years clearly 19 falls within that parameter. 20 Also, the district chose to follow the precedent set by the Center City District to be reauthorized for a 20-year period. As earlier speakers have commented, the 20-year period will better enable the district to carry out Streetscape improvement plans and other 34 BILL 970275 capitalization projects by possibly incurring debt to be paid in future years with assessments, and also by entering into cooperative arrangements with public and private funders that want to see stability and a long-term track record that the 20-year process can provide. Thank you. CHAIRMAN KENNEY: Thank you very much. Any questions for Mr. Cohen? COUNCILMAN DiCICCO: Yes. Thank you, Mr. Cohen. It is obvious that there are some people here this morning who will be suggesting that the reauthorization be held to a lesser time than 17 years. 18 In your professional opinion, could 19 you shed some light on to why that may not be in the 20 best interests of the South Street Headhouse District? And I know you just explained something about the bond things. But why wouldn't it work for five years?
There are two or three 35 BILL 970275 points I want to address in response to that question. The authorization process for a district is time-consuming, it costs money and effort, which diverts districts from the true mission of improving an area, whether it is Center City or South Street or another neighborhood in Philadelphia, that is involved in the district process. So that will be one reason why the district should be for a period of time that has a certain longevity involved to it. The second reason would be that the years would enable South Street District 16 conceptually to incur debt that could be repaid over 17 a longer period of time. 18 I am not suggesting that South Street 19 will do this or can do this, because their 20 assessment rate and total assessed valuation is much smaller than Center City. But Center City District is able to, as I understand it, to incur some financial obligations the city would normally have to incur to provide matching funds for Streetscape improvement 36 BILL 970275 plan. So potentially through loans and potentially through floating bond issues, the South Street Headhouse District can legally incur both of those expenses and use both of those processes. It could determine a way to pay back debt over a period of time, with the much more substantial base of funding than they would have over a five-year period. Also, in regards to the 20-year period, the district, I believe, during the first five years has established a track record as being credible, as being productive, efficient, and achieving a lot of their stated goals in the first five years. The district would not be operating in perpetuity, but would operate under an additional 20-year time sunset provision. The third point is, if the process was decided by Council to be less than 20 years for reauthorization, the district would have to go back and notify all property owners again, redo a plan, submit that plan to all the property owners and commercial tenants by now, hold a public hearing, 37 BILL 970275 and then wait for the vote back, the one-third negative vote against the district. So it would incur additional time and expense to the district, and would put the district back at least four months in the process to be reauthorized because of building time delays in regards to that process. COUNCILMAN DiCICCO: Thank you very much. CHAIRMAN KENNEY: Mr. Kauffman.
Thank you. Ray Kauffman, and I am a member of the Board of the South Street Headhouse District. The testimony that was already given this morning pretty much handles most of the situation. I don't really want to go over all of it, except to say that, in the very beginning, we set very, very high standards and very large goals for this district, which we have tried to do. We have, for many, many years, handled tremendous groups of people with probably one of the best safety records in the entire city. We have done everything that we could 38 BILL 970275 to support the local police. We have done everything we could as far as sanitation. And we still are continuing in these efforts. These people who formed this Board at the beginning, this was not a taxation-without-representation situation. This is a situation where people voluntarily decided to give their money and their efforts to make the area -- not just South Street itself, but the entire area -- a better place for people to live and to work and to invest their money into property. And this is what's happened. And we have a growing situation that should continue to flourish. I think that the 20-year plan, because of the things that other Board members have already expressed, as far as being able to come up with the money to be able to put these projects forth, so that more people will want to come to the South Street area and enjoy it for what it is, and the better thing that it can even become. So that's my opinion that I wanted to express here this morning. CHAIRMAN KENNEY: Thank you very 39 BILL 970275 much. Any questions of Mr. Kauffman or Mr. Cohen? Thank you very much for your testimony. The Chair now calls Mr. Buckman, Miss Palmer, Mr. Robinson, and Miss Hamel, if they want to come up as a panel. CHAIRMAN KENNEY: Mr. Hunter is not on my list. Is he interested in testifying?
I think that you have a copy of my testimony. Officially introducing myself, I am Fluffy Palmer, President of South Street Neighborhood Association. I would also like to introduce myself as a founding non-member of the district, because I was initially on all the task forces that -- or the majority, anyway, of the task forces that were set up when we, as residents, were invited to the Mayor's task force, when discussions about a district and how to kind of clean up our act were 40 BILL 970275 held. I am guessing six and seven years ago. Before the actual formation of the district, there were several other task forces that certainly didn't do the same thing, but the intent was to be the initiators of this kind of a district. In fact, I can't remember the exact name -- maybe somebody else does here -- it wasn't a special services district, but it was in fact called a district. I have rolled up my sleeves on many of the committees of the special services district. I have been actively in the past participating on the Sanitation Committee, on the Planning Committee. I have introduced my name to be a Board member for several years in a row. " I actually do not have the time now to serve as a member, so I feel safe in saying this. Usually it is the person who comes up with an idea that gets put on that committee. 41 BILL 970275 Because I am President of the South Street Neighborhood Association, I don't have time right now to serve as a district Board member. But I certainly have introduced my name many years in a row after having, I believe, fulfilled all the qualifications of a Board member, which includes showing up, rolling up your sleeves and working, having the interests of the district and the neighborhood in mind. Maybe not always having the same exact opinion, but certainly overall having the same goals in mind. I have never been invited to be a Board member. So I just want to clarify that for the rules. That there is something more than just putting your name in and volunteering your time that enables you to be a member of this Board. I would like to say officially that the South Street Neighborhood Association goes on record as saying that we enthusiastically support this special services district being recertified. The South Street corridor is being better served because of them in terms of sanitation, safety, and communication. 42 BILL 970275 We would, however, like to see certain changes made in the Charter, and we feel that it will benefit all of us who work and live in the corridor. First we need to have specified and required community representation on the district's Board. There are many decisions being made daily and monthly that affect our everyday lives. While there is limited representation now, that is strictly at the whim of the membership, and not based on any systematic representation for each of the affected communities. We need to have representatives selected by each association who cannot always speak for our interests, but communicate the interests of the Board to us, the people who live and work here. It is very important that this is established as a standard, and not an intermittent event. In order for this to consistently happen, I believe it must be required by the bylaws of the district. Second, to approve any body for 20 years is stretching the boundaries of my common 43 BILL 970275 sense. A 5-year term, or at most, would be a more reasonable limit, at the end of which the district could be reconfirmed. How can we begin to know what we will want and what will be best for us in years? 7 I think for us that is especially 8 exaggerated because we don't have the input of ideas 9 into what the district does, while we do receive the 10 effect of the actions. I would like to commend the officers and Board members of the district for all the hard work they do and the time and energy they volunteer. I have seen and witnessed that myself.
We, the South Street Neighborhood Association, as well as all of the other nearby community groups, share the same goals as the special services Board, to provide a better, cleaner, and safer neighborhood in which to live, work, shop, and dine, and to attract a diverse and responsible group of visitors to the area. Thank you very much for considering these modifications. CHAIRMAN KENNEY: Thank you very much for your testimony. 44 BILL 970275 Whoever would like to go next, please identify yourself.
Good morning, Mr. Kenney, and good morning, Mr. DiCicco. My name is Mel Buckman. I am President of the Society Hill Civic Association, and have been for the last two and a half years. And I thank Council for giving us this opportunity to participate in these proceedings. And I am sure that our testimony will be considered, even though, in a way, it comes at the very end of the process, as opposed to what happened six or seven years ago, when the communities were involved all during the process. I think that the testimony we heard from the district demonstrates that before there was a district, everybody thought that the people that lived around the district should have some participation in its creation and in its operation. And I will talk more about that later. But, first, a brief statement of what is Society Hill. It is a neighborhood of over 5700 residents in Center City. Basically we lie between 45 BILL 970275 the South Street District, the Independence Park, 8th Street, and Delaware Avenue. We are in the midst of extensive business, entertainment, and tourist activity, which, as you know, brings thousands of visitors annually to Philadelphia, most of whom go through Society Hill at one time or another. But our neighborhood itself is predominantly residential. Over the past 30 years it has been one of the great urban successes in this country. It has been upgraded from a blighted area of flop houses, et cetera, to one of the most beautiful residential districts of any city anywhere, and certainly the most extensive historic residential district of any major American city. We live in Society Hill because of its beauty and its location in the heart of the city, convenient to shopping and all the other things the city provides. To keep the neighborhood as it is, it is essential that it remain a good place to live. This is required not only for our own tranquility, but to maintain our property values and to attract 46 BILL 970275 new residents, when, as is inevitable, for many reasons, people move away. The association itself is a voluntary neighborhood association of residents of Society Hill. We have over 660 memberships, most of which are households of two or more individuals. We are all unpaid volunteers. We have an administrator who takes care of clerical functions. We certainly don't have an $80,000-a-year administrative and professional budget, as does the South Street District. Our mission is to preserve the beauty, tranquility, and quality of our community. And, in passing, I must say that if our Zoning Chair has ignored invitations to a meeting, it is news to me. But if Miss Verber said that happened, I guess it happened. Now, what are our concerns about this? We don't oppose the continuation of the district. Indeed, we urge its continuance, but under different terms than have been proposed. And this is the reason: The district was created to promote business activity in the South Street corridor adjacent to our neighborhood. 47 BILL 970275 It does this by bringing in more and more customers. And they congest our streets, spill over into our neighborhood, and are noisy, and otherwise deleterious fashion. There has been so much in the press about the need for toilet facilities, about the need for better sanitation, about the need for noise control. And I need not go into it all now. Now, we have had lip service from the district from all this. But the thrust of all the district's activities has been, from the first, to promote business, without regard to how that may impact on the surrounding areas. And believe me, I don't think it is evil that they did this. That's what they were formed for. But it does have an effect on us. Now, as I said before, that attitude has not always prevailed. Before the district was authorized, as has been testified by the district proponents themselves, there was substantial neighborhood support and participation.
And I believe that if the neighborhoods had not approved this, there probably wouldn't be a district. 48 BILL 970275 But now that they have been in business for five years, they don't want to hear from us. And going back to this process, they have known for several years that we wanted representation on their Board. And they have just stonewalled us and said no, even though in the beginning everyone says that it was promised that the neighborhood would continue to be represented. Now, is the neighborhood represented? Yes, there is a list that Miss Verber provided. And it shows five members from Society Hill. Without getting into personalities, I will tell you that every one of those persons listed have important business or professional interests on South Street or in the district. And, therefore, if there is an issue as to whether the district should do something that the neighborhood really wouldn't want, there is an innate conflict of interest. These people do not represent the residential community. The second matter of concern is this 20-year extension. 20 years is a long time. And 49 BILL 970275 the city should not cede its power over the district for such a long period of time. Because once you give this 20-year charter, gentlemen, you cannot change it without the district's consent under the prevailing constitutional law. Now, there has been some talk about floating a bond issue. Well, if you look at the budget of 323,000 a year, and figure that maybe they take percent of all this money and put it into 12 bond payments, they might raise a million and a half 13 dollars. 14 I can tell you, because it is part of 15 my professional work, that you will not find an 16 investment banker that will float a 17 million-and-a-half-dollar bond issue. It doesn't 18 exist. 19 Now, we now have been told about 20 corporate support. It is the first we have heard 21 about it. And I want to address that briefly in a 22 moment. 23 But our position, basically, is, 24 first -- and I want this to be very clear on the 25 record -- we believe the district has had a 50 BILL 970275 beneficial effect, and should be renewed, but on different terms. Second, the district shouldn't be continued, though, unless the surrounding neighborhoods are provided with dedicated Board representation. Experience has shown that we cannot rely upon the promises of the managers of the district to provide that representation, or, indeed, to give attention to the needs of the neighborhoods. Therefore, we request that the neighboring associations most directly impacted be entitled to dedicated Board seats to give them an effective vote on the Board. And, last, years is too long. The 18 reorganization plan, which has been submitted as 19 part of the proposed bill, does not contain any 20 detail of any project for which a 20-year term would be required. It does not say anything about corporate sponsorship or bond issues or loans or anything of the sort. They have given no reason to Council 51 BILL 970275 to cede its jurisdiction to the district for years. The only specific proposals in that plan are to keep the sidewalks clean and purchase waste baskets. And I don't think you need a 20-year term for that purpose. We ask that in considering this bill, Council keep in mind that it is creating an entity of substantial power. This district has the power to tax and, from that power, to use its tax funds in many, many different ways. Insofar as the district's activities bring more and more visitors into our crowded community, they necessarily affect the quality of life of all the surrounding neighbors who are close by. I believe that Council would be remiss in its duty to the public if it does not retain the right to review these activities at reasonable intervals, and we suggest that the original five-year interval be continued.
I have submitted with my written testimony a copy of a letter that we sent to Councilman DiCicco in June. It repeats many of the 52 BILL 970275 things I have said, some of that in more detail. In closing -- and I thank you for your patience -- we ask the Council, as our elected representatives, consider and agree with our requests on the extension of the district, which, after all, is a creature of Council and which we hope Council will structure in a manner that will require it to operate in a fashion that will give due regard to the welfare of the surrounding communities. We believe that requires a shorter period of time and dedicated community representation. Thank you very much. CHAIRMAN KENNEY: Thank you very much for your testimony. The next witness, please.
Good morning or good afternoon, as the case may be. CHAIRMAN KENNEY: It is still morning.
My name is Bernice Hamel. I am a resident at 302 South 2nd Street, which is two blocks from historic Headhouse, 53 BILL 970275 America's oldest surviving volunteer fire house attached to the Colonial era Old Second Street Market. I am a founding member and President of the Headhouse Conservancy, the grass-roots, nonprofit organization that intervened to restore Headhouse and to preserve it for the pleasure of Philadelphia's citizens and for future generations. As you probably know, these important 18th Century structures, unique in the country, are owned by the City of Philadelphia. After federal and city resources helped save them from demolition in the late 1950s, the city failed to maintain them and began a 30-year period of neglect that seriously threatened their integrity. The Conservancy raised approximately $250,000 and conducted a series of major repairs, including a complete renovation of the interior of Headhouse, to make it habitable and suitable for public service, which was its original purpose. 5 million. When the newly authorized South Street/Headhouse District needed a home, the Conservancy rapidly completed the interior renovation to suit the district's needs. The Conservancy then acted as brokers in the lease arrangement between the Department of Public Property and the district, convincing both the district and the department that the renovated Headhouse building would be ideal as headquarters for the district. This arrangement has been satisfactory. And the district, as well as the city, has been benefitting from the beautiful and fully modernized building for the last few years at, I believe, the symbolic rental rate of $1 a year. I don't know for sure, since I have never actually seen the final lease that was drafted. In fact, the Conservancy has had no 23 official role in the building's management. However, we do maintain an ongoing interest in it and continue to monitor its needs. 55 BILL 970275 In fact, the Conservancy is designed and will soon pay for and replace the graffiti-damaged signs that currently deface the property. The new signs will welcome tourists to the district and will provide fascinating historical information about the structures and their important roles within the district. Since the district's establishment in 1993, I have supported and will continue to support the district's goals to provide a safer, cleaner, and well-managed district. I complement the district's Board of directors, good people all, who have devoted their time and energy to further the district's mission. But these unpaid volunteers are not elected officials. Why should the district's appointed representatives be exempt from the same kind of scrutiny that any official is subject to? I argue strongly that monitoring in five-year intervals would be best for the district and for the city as a whole. Without such a built-in mechanism of oversight, there would be nothing to prevent a 56 BILL 970275 self-perpetuating bureaucracy evolving from within. I have neither heard nor read any compelling reasons for seeking a 20-year period prior to reauthorization. If there is a rationale that years 7 would enable the issuing of bonds for future 8 development of the district, I think the district is 9 obliged to provide at this time such detailed plans 10 for evaluation by City Council and the public, but 11 no plans of this kind have been announced. 12 That, in my opinion, is all the more 13 reason why our elected City Council should be 14 involved in a timely -- should be involved in timely 15 five-year intervals to determine whether the 16 district's long-range development plans would serve 17 in a truly beneficial way the district's business 18 community and nearby residential communities. 19 Everyone in this room wants what is 20 best for the city, both for the short and long term, but none of us have a crystal ball.
I strongly urge that discussion, reevaluation, and reauthorization of the district be held in five-year intervals. If there are any compelling reasons 57 BILL 970275 to extend this process beyond that window of time, may I suggest that you negotiate an equitable and true compromise that would be agreeable to all. A moderate ten-year cycle would be acceptable. Perhaps this middle course could be given thoughtful consideration so that everyone can walk away from the table feeling positive, rather than skeptical about the district's ongoing and future success. I thank you very much. CHAIRMAN KENNEY: Thank you very much for your testimony. Councilman DiCicco. COUNCILMAN DiCICCO: Miss Hamel, I had a copy of your testimony last evening, and I read it. And you just read it for the record today. The last paragraph on , you have not heard any testimony or read any compelling reasons for seeking a 20-year period prior to reauthorization. I assume that's still your opinion today?
Yes. Because I don't see 58 BILL 970275 any -- COUNCILMAN DiCICCO: After having heard some of the testimony you heard and the professional witness, as I refer to Mr. Cohen, you still believe that that --
I still do. Because, frankly, I feel that while the South Street Headhouse District used the Center City District as a model, it is a very excellent model, but it is really a different kind of animal than the South Street Headhouse District. It is so much smaller, that I think to look to the Center City District is a good thing, and to try to emulate it is a good thing, but to try to duplicate it is obviously impossible. And I have not seen, even after today's testimony, I have not heard any detailed plans that truly justify, that truly justify, a 20-year interval. And I think if there is enough expressed interest in modifying 20 years, I think a compromise would be something that truly everybody could live with. And even the fact of the cost, the 59 BILL 970275 costly process of public hearings, if you did it half again, if you did every ten years, I think that would be tolerable. But every -- and I can sort of understand five years as a cost problem. But I do have a hard time believing that they -- I feel it wouldn't be good for the entire community to wait 9 years, with a very skeptical eye. 10 I think it would be much more 11 positive to think in terms of ten-year intervals, 12 even after today's hearing. 13 COUNCILMAN DiCICCO: Do you have any 14 knowledge as to any of the other special services 15 districts in the city, what their time period is? 16 Because I don't. 17
I know Center City is 20 18 years. 19 COUNCILMAN DiCICCO: Other than 20 Center City.
No, I really don't. COUNCILMAN DiCICCO: Germantown has a special services district. They are forming one along City Line Avenue. Old City is in the process of doing one. And I believe Old City is looking to 60 BILL 970275 do years, also. And I am not suggesting that because they are doing it, we should do it here. I am just trying to see if there is some consistency. David, can you help us on that? Would you state your name again for the record.
Yes. It is David Cohen, 9 consultant to the South Street District. 10 I am not positive, but I believe with 11 some certainty that the other districts that have 12 been formed, or are in the process of being formed, 13 are also aiming at or do have a five-year period 14 initially. 15 And, again, there is no magic number, 16 in my opinion. I think it does vary by district. 17 The only requirement is it can be no more than 50 18 years; that's the only requirement legally that 19 exists. 20 COUNCILMAN DiCICCO: So we are already doing better than half. But it is five years, basically, because they are new, they are just starting up?
That's correct. COUNCILMAN DiCICCO: So at the end of 61 BILL 970275 five years, they may come back and ask for a similar type of thing. We don't know that, but they could possibly come back and ask for a 20-year reauthorization, too?
That's right. Conceivably, they could either cease operations or they could ask reauthorization for any period of time up to 50 years. COUNCILMAN DiCICCO: Thank you. CHAIRMAN KENNEY: You have to sit at the microphone, because the stenographer won't be able to hear you.
I happen to have the bill for the Old City District, and it would authorize it for five years. It would terminate on the fifth anniversary of the commencement date. CHAIRMAN KENNEY: That's standard for all new special service districts. I guess the question is, what happens when these districts come back for reauthorization after five years. And the testimony has been that the Center City District has asked for and received 20 years. 62 BILL 970275 This organization is asking for years, and we don't really know what other reauthorizations have asked for at this point.
I didn't know there 6 were any other reauthorizations at this point. 7 CHAIRMAN KENNEY: Well, there are 8 other initials, and I guess they will be back in 9 five years or less to come back and reauthorize. 10 COUNCILMAN DiCICCO: Germantown 11 Special Services District, they have been around for 12 a couple of years, at least, I guess now. And they 13 will be coming back shortly for reauthorization. 14
If I may just say this, 15 there was no reason to limit them to five years in 16 the first place legally. They could have been set 17 up for 50. Council wanted to take a look at it. 18 COUNCILMAN DiCICCO: It would make my 19 job easier. I wouldn't be here today. 20 CHAIRMAN KENNEY: Just one question on Miss Hamel's testimony. Your testimony is confined to the length of time requested for reauthorization, and not to any other issue?
Yes. 63 BILL 970275 CHAIRMAN KENNEY: Okay. Thank you very much. Mr. Robinson. You have to use the microphone and identify yourself for the stenographer.
My name is Irwin Edward Robinson officially, but otherwise known as Eddie. In a picture that I treasure that the Mayor autographed he said, "Two Eds are better than one." So here I am. I live at 6 Blackwell Place, with my pride and joy, to borrow a phrase from Stu Bykofsky. And I have lived there for 20 years. My roots in this neighborhood go back to 1894, when my grandfather got off the boat from Austria with my mother age 3. And I have continuously been in this area, starting with as long as I can remember. In fact, I remember just recently celebrating the Jewish holiday last week at Bnai Abraham. And remembered when I was 6 years old, in 1933, I celebrated it at Kasher Israel at 3rd and Lombard. 64 BILL 970275 Now to my testimony. I think all the kudos are well merited. But I think, to a certain extent, like many things in this world, things are seldom what they seem, and skim milk often masquerades for cream. And I tell you, insofar as the cream is concerned, the cream is true cream, and it is South Street Command, the police command which exists because of the district, the mini district. And I think true kudos are deserving of Lieutenant McCarthy and his force, which keeps sanity and safety alive Friday, Saturday, and Sunday nights on South Street. I truly do. And I think they are entitled to every bit of support that they can be given by both the businesspeople and by the residential people. And I know that insofar as the residential people are concerned, that Mel Buckman, through the Society Hill Civic Association, has continuously rendered support to McCarthy and his folks. And the old word back in World War II for Merrill's Marauders was, the general said, "You 65 BILL 970275 take care of the troops, and they will take care of you." And those troops truly take care of us who live in Society Hill. Another thing that I think is deserving of kudos comes from the night court that has been established in our area, and in which Judge Seamus McCaffery and Judge Levin have been front-runners in making it clear that any lawlessness that goes on after dark, or any other time, for that matter, over a weekend is going to be swiftly dealt with at night court. And I have gone to night court at 2:00 in the morning and seen what happens there. And the invitation has gone out to the neighbors to come and be there, and be seen there. So that the people who get picked up for lawlessness, such as under-aged drinking, such as intoxication, such as motorcycle biking, clearly in violation of the laws which this Council in its infinite wisdom has passed, aren't violated. And, if violated, are dealt with summarily. Another kudo that I think comes under the auspices of the district, and in large measure is helped along by Miss Hamel, is the craft fair 66 BILL 970275 that exists Friday, Saturday, and Sunday through the summer months, and then a longer period of time over the Labor Day weekend. And I think this year for the first time they even went another month beyond Labor Day. Is that correct?
It is a true asset to the community. I have heard visitors from foreign lands, from afar, from other states, who just wonder in amazement at what is being done there by true artists, not some hockey-pockeys who go to some jobber and buy some craft stuff and put it up for sale. But true art work that people can buy and take home and remember Philadelphia for. Now, let me talk about some of the negative things that I see. Particularly during the summer months, crimes against persons, and including two recent murders this summer. The guy who wanted a parking spot, got the parking spot, but he lost his life. The guy who took umbrage to his 67 BILL 970275 friend being approached as they came out of the Monte Carlo Dining Room by someone who suspected they may have some money, and he lost his life at 127 Pine Street because he believed, albeit erroneously, that that gun was a toy. Public urination and consumption of alcoholic beverages off premises. I am, in addition to being the Solicitor and a member of the Blackwell Place Condo Association, which is condos that lie 11 between 2nd and 3rd, between Pine and Stamper 12 Street, and the Solicitor for that organization, 13 albeit without compensation, and I am the Liquor 14 Control Chair for Society Hill Civic. 15 And I do my job assiduously. As a 16 matter of fact, some people think too assiduously. 17 And I have been accused of pretending 18 that I am from the LCB. I have never, ever told anybody that I am from the LCB. I simply say I am the Liquor Control Chair of Society Hill Civic. If you hear LCB from what I say -- and I can assure you, Councilman Kenney, that as a lawyer, I talk with some precision, and I don't say LCB, when I'm not. I don't even think I'd want to be an LCB person, in all truth. 68 BILL 970275 But be that as it may, that is one way that I am intimidating. And, as a matter of fact, letters have been written about me and about my assiduous effort to enforce the Liquor Control laws. And the particular violators of those laws in our neighborhood are Thank God It's Friday, which had off-premises consumption of alcoholic beverages over the Fourth of July Weekend, in clear violation of their license, in clear violation of their agreement with Society Hill Civic, and in clear violation of their agreement with Blackwell Place Condo. And they ignored it, with impunity. And Dickens Inn, another clear violator. People leaving and coming to that premises with open containers of alcohol. CHAIRMAN KENNEY: Could I make a suggestion? And not to interrupt your testimony. Could you please give us your opinion on the issue of Board configuration and membership and the length of the proposed --
I think that it is unquestionable that Board configuration should include at least two dedicated seats from each one 69 BILL 970275 of the key civic associations. And I think that at least one dedicated seat should come from Blackwell Place Condo Association. Not by virtue of the number of residents that we have, but by virtue of the value of the property that we have at stake here. We have houses, with values 9 upwards of $450,000. Now, that's a big piece of 10 change to want to protect. And I'm here to say that 11 we feel that proper protection requires our presence 12 on their Board. 13 I have attended, and I did so 14 assiduously -- again using that word. 15 CHAIRMAN KENNEY: It is a nice word. 16
-- the Board meetings 17 of the South Street Headhouse District. 18 I was thoroughly ignored. As a matter of fact, I was structured out of the meeting. No longer was I able to speak to any issue as it came up during the course of the meeting. But a new rule was passed -- and I suggested it was the Robinson rule -- and I suggested that rule provides that there will be 70 BILL 970275 nobody who is not a member of the Board who shall speak, save and except at the end of the meeting, if they ask for the privilege to do so, and that will be ten minutes in the entirety, in the aggregate. Well, guess what? I don't attend any more meetings. Because it is obvious nobody wants to hear what I have to say. And, as a matter of fact, they structured me out of being able to say anything. CHAIRMAN KENNEY: Do you have an opinion, sir, on the length of term being asked for for extension?
My opinion of the length of term is that, before Council enacts that, they should seek legal advice from the City Solicitor's office or from their own counsel. My familiarity with the length of terms goes back to the time that I was a lawyer, a very young one, in an office that represented the Philadelphia Parking Authority, when an effort was made to give a certain Mr. Scott a long-term contract as the Executive Director of the Philadelphia Parking Authority, that went beyond the term of the people who were on the Board. The case 71 BILL 970275 is Scott versus the Parking Authority. I think there is some learning in that case. Not exactly on this issue per se, but enough to say that these long-term contracts that go beyond the term of the people who created it have an inherent vice in them that should not be permitted. And the suggestion of Miss Hamel, and the suggestion of Mel Buckman and Miss Palmer that 5 years is plenty, and maybe a compromise of 10 years, but certainly not 20. CHAIRMAN KENNEY: Thank you very much. Are there any questions of Mr. Robinson? Thank you very much for your testimony. Mr. Hunter.
Excuse me. May I have leave to file my remarks in writing, and to submit with my remarks pictures that I have been taking over the past several months dealing with the issues of safety and cleanliness in the corridor? CHAIRMAN KENNEY: Yes, you may.
And how much time 72 BILL 970275 would I have to do that? CHAIRMAN KENNEY: How long would you need?
Could you give me a week? CHAIRMAN KENNEY: We could always keep the record open for additional submissions.
I will do it within whatever time you give me. CHAIRMAN KENNEY: Again, the record will remain open for additional submissions. If you are asking for a delay in a vote, that --
I have taken, with pride, some excellent pictures of what goes on on South Street from dusk to dawn. CHAIRMAN KENNEY: And we would be happy to have them submitted at your convenience.
I will submit them to you, sir? CHAIRMAN KENNEY: Yes, sir. Thank you.
Thank you, Chairman Kenney and members of City Council, for hearing my 73 BILL 970275 testimony. My name is Alan Hunter, and I am President of the Queen Village Neighbors Association. Queen Village is a residential area of over 8500 and is bounded by the Delaware River to the east, 6th Street to the west, and Washington Avenue to the south. The northern end of Queen Village includes most of the South Street Headhouse District. I have been asked today to testify relative to the 20-year extension of the South Street Headhouse District. Quite frankly, I am confused and stumped as to a position to put forward. Although I consider myself an informed and curious person, I simply cannot get a handle of why I should be in favor of this extension, nor am I secure enough to say that we are against it. Is it true that a 20-year extension is the only way to secure bond financing for long-term improvement? If so, it surely has not been shown to me in a manner that is clear. 74 BILL 970275 Perhaps I, as President of the Queen Village Neighbors Association, had the responsibility to search out for myself why a 20-year extension is necessary. Perhaps this business group, with comfortable funding and a professional staff, has the onus to communicate clearly its needs and the benefits of this extension to the surrounding community. To me, the common enemy here is the separateness that has developed between the business community and the residential community. This separateness keeps us focused on mistrust and our differences, instead of powerfully creating our common future. It should be obvious to all that the residents of the community and the business interests of the community are both parts of the same body, and only a true acknowledgment that we are linked can bring about the future that is possible. The South Street business area cannot survive without a thriving community surrounding it, nor can the community prosper without a successful 75 BILL 970275 South Street. To this end, I have a few suggestions. First, an immediate outreach by this district to my community that will allow us to fully understand all facets of this extension, with a clear understanding I could have been here today as an escort instead of a confused witness. Second, I suggest a new committee of the South Street Headhouse Board whose mission would be to merge the common interests of business and residence, thus building trust and communication between us in ways absent until now. As some of you know, I am also President of Urban Strategies. We are a strategic planning firm that specializes in the combining of multiple communities, business interests, and government into a shared vision. This shared vision is an extremely powerful tool in creating change. Along with this testimony is an application to serve on this committee, and to be accepted as a new Board member of the district. It is indeed time to put aside all these past arguments, misconceptions, mistrusts, and missteps, and to simply move forward toward that 76 BILL 970275 future. CHAIRMAN KENNEY: Thank you very much for your testimony. Are there any questions for Mr. Hunter? Mr. Hunter, this is not in any way to suggest that this is sufficient from the panel that's been testifying today, but out of curiosity, the individuals that are listed as the current Board of Directors living in Queen Village, do you know whether or not they are in fact members of the association, in addition?
Chairman Kenney, I have been President of Queen Village Neighbors for two and a half years. And, in that period of time, I have never had a visit from a member of that Board that expressed, you know, a residential link. CHAIRMAN KENNEY: I think there is a different question. There are listed five members of the current -- I will read them to you, if they are not up there. Mr. William Funk, Eric Blumenfeld, Fran Holtzin, Bob Pierson, and Ray Kauffman all list themselves as residents of Queen Village. 77 BILL 970275 For my curiosity sake are they, to your knowledge, members of the Queen Village Neighbors Association, any or all of them?
The one that certainly sticks out quickly for me is Bob Pierson, certainly is a respected member of our community, and whose opinions would be greatly, you know, acceptable to us. But the others, you know, I really have never connected them with members. CHAIRMAN KENNEY: Just my curiosity. And, Mr. Buckman, the five members listed as Society Hill residents, Mr. Lander, Mr. Lipken, Jose Pumarada, Ann Verber, and Steve Kujolic, any or all of them, to your knowledge, are members of the Society Hill Civic Association formally?
I don't know if they are members. We have 660 members. I have never seen any of these four people, other than Mr. Lander, who is a vice-president of our association, attend any meeting of any kind that I have known. Now, they may have been there, and I don't know them. 78 BILL 970275 CHAIRMAN KENNEY: Again, this is just a knowledge question. I am not asking you.
I don't know. I know Mr. Lander is a member. And Mr. Lipken, Miss Verber, and Mr. Kujolic are in the room. They could answer it. But I don't know about all the membership in the association. They haven't been active. CHAIRMAN KENNEY: I didn't mean to put anybody on the spot. I was just curious. I know Mr. Lander has been very active, as you said. And I know Mr. Pierson for Queen Village had been very active, as you had mentioned. Just for my own curiosity sake.
If I could just say this, the fact that we have people on the Board of the district that may, in my opinion, be more interested in their own business than in the community, is not to me an evil or bad thing, it is just the way the world is. And what we want are some people who don't have that interest in the South Street business community, who can only focus on the needs 79 BILL 970275 of the residential community, that I have been striving to get on this Board. CHAIRMAN KENNEY: Councilman DiCicco had a question. COUNCILMAN DiCICCO: I guess, going in the direction that you are going, Mr. Buckman, I mean, if someone were to be appointed to the Board of Directors of South Street Headhouse from Society Hill Civic, as an example, who does not own a business today, but a year or two or three up the road they get involved in a business on South Street, are you suggesting that that person should be removed from the Board because they now have two hats, as opposed to one? I mean, there is no guarantee that someone at some point in the future won't become a businessperson.
Mr. DiCicco, it is always difficult to forecast the future. It is like I once asked somebody, a client, "Do you think you made the right decision?" And she said, "What would I do if I was 17 again?" We just don't know. I think that that person might not be the person that the Civic association would continue 80 BILL 970275 as its representative on the Board. Now, we have, within our own organization, dedicated representatives of the large communities, such as Society Hill Towers and Independence Place, and they select their own representative. And we have nothing to do with the procedures by which they select their representatives. If somebody comes over and says, "Here are my credentials. I represent Independence Place," that person is a member of our Board. And we leave it to that organization to decide whether there is some reason that that person should no 15 longer be its representative. COUNCILMAN DiCICCO: Thank you. CHAIRMAN KENNEY: Mr. Robinson, please.
You mentioned Eric Blumenfeld. I happen to know Eric quite well. Eric was a classmate of my son's at the Friend Select School. Eric's dad was one of the creators of Abbott's Square. And Eric, until they ran into financial difficulties, was one of the principals in 81 BILL 970275 the operation there. He lived there. I think he still lives there. He doesn't live in Queen Village. Moreover, he fits a description of somebody whose interests are not anything other than the business interests of Abbott's Square. CHAIRMAN KENNEY: Thank you very much. Miss Palmer.
I would particularly like to second what Mr. Hunter said in his testimony about, we are all one body, and there are different parts of the body. And until that body unites and realizes that it is one, we are losing the potential strength that we really do have. I would also like to address what has been called the Robinson rule. For, I guess it's been, including the years that I attended the meetings before the district was actually formed, I guess it has been six or seven years. And up until that rule, I attended every meeting of the district for the four and a half years, anyway, I'm sure it's been, since the 82 BILL 970275 district was actually empowered. And the reason I stopped was this rule that said, you cannot participate during the course of the meeting unless you are a Board member. Previous to that, I felt that I was treated with respect, that my ideas, even though they were not always the same as the Board members', were listened to, and I had input. And I could represent the fact that a vote, or something that was brought up in front of the Board, may not be in the best interests of all of us, and there may be some community problems with this for X, Y, and Z reasons. Once the rule was enforced that says, you cannot participate in this meeting until the last ten minutes, at which time the vote is already taken, why bother to hear myself? I already know what I think. And if my input and ideas, it is too late to change the vote of the Board, why bother coming? I read the meetings at the end of the month. I think that rule has discouraged a 83 BILL 970275 great deal of community participation, whether or not we are members of the Board. I have not actually spoken to Mr. Kujolic about this, although I have spoken to Mr. Ostrander about it. And I think that there have to be other ways to control community participation, perhaps by staying on the immediate subject, perhaps giving a 30-second time, or whatever. But I think that would also help to bond the communities that are represented, the business and the residents. Thank you. CHAIRMAN KENNEY: Thank you very much. And thank you very much for your testimony. Is there anyone else in the room who wishes to testify on this bill? Mr. Kauffman. Okay.
Well -- CHAIRMAN KENNEY: We are finished with your testimony. Thank you very much. And, Mr. Kauffman, you have to reidentify yourself.
Ray Kauffman. I would just like to add something to this, because it has been spoken of here. 84 BILL 970275 The meetings that are held by the district, the regular Board meetings, which everybody is invited to, we ran into a slight problem this year in the beginning of these meetings. And the problem was that there are people that have opinions about a lot of things that go on in the district, because there are a lot of things that go on in the district. And, unfortunately, if every time a point is brought up, we have somebody stand up for minutes and go on about what they feel very 14 impassioned about, even though that's very nice, the 15 meeting would go on forever. So in order to stop that, we allow the Board to complete their business, and then ask for any comments from anybody that had any on any particular issue. And that's the reason for what Mr. Robinson calls the Robinson act. But primarily that's exactly what it was all about. It wasn't to stifle anyone for any particular reason, other than to be able to finish the business or complete the business that that meeting was called for. 85 BILL 970275 CHAIRMAN KENNEY: Thank you very much.
Thank you. CHAIRMAN KENNEY: Is there anyone else? You have to come up to the microphone. COUNCILMAN DiCICCO: While Mrs. Robinson is coming up, I just would like to thank everybody for testifying today. And Alan, Mr. Hunter, I share your confusion. I am going to have to make a decision very shortly. But I do suggest to the South Street Headhouse District that Mr. Hunter's second suggestion, in particular, that a new committee be formed whose mission would be to merge with the community interests, et cetera, seriously be considered. And that maybe we can eliminate some of the problems that were just expressed by Mr. Kauffman about the Robinson law or Robinson act, and have somebody from the community who represents maybe the various Civic groups be the spokesperson for the various community groups, and really have 86 BILL 970275 some input as to what is going on. And I hear from everybody. I mean, I am in a unique position. Applications come forward all the time for bars, restaurants, other types of businesses. And sometimes the community group and the business district obviously don't see eye to eye on the application. So we try to find out if there is some common ground there. And I think that kind of activity is something that should be encouraged, I am encouraging. And also I understand there are two vacancies on the Board coming up. I made a recommendation as late as yesterday afternoon, or as recent as yesterday afternoon, to Mr. Ostrander about one of the individuals who had expressed an interest of being placed on the Board. I don't want to be the person to micro-manage the South Street Headhouse District, nor any of the other civic associations, whether they be in the South Street corridor or elsewhere in my district. But I will make recommendations from 87 BILL 970275 time to time based on what I think might be in the best interests of all parties. Thank you. CHAIRMAN KENNEY: Mrs. Robinson, if you would like to identify yourself and offer your testimony.
My name is Deborah Robinson. I live at 6 Blackwell Place. And I am a member of at least two of the key civic associations who are here, as well as the Blackwell Place Condominium Association. And I wish to speak to what Mr. Kauffman just said. And that is, if I come to the meeting to represent a point of view, it makes no difference if I represent it, or if I am there, if I am not allowed to make my point of view known until after the meeting is over and everything has been voted upon. If you want to limit my time, or anyone else's, in what I have to say, that's fine. But do not effectively knock me out from having any opportunity to put forth my opinion and possibly sway some opinions on the Board. CHAIRMAN KENNEY: Thank you very 88 BILL 970275 much. Ms. Verber.
I am Ann Verber, and I am just asking to address one issue that was raised by Mr. Hunter but is, I think, also a response to Councilman DiCicco's concern. We on the Board of the district have asked and solicited more than once, and continue to solicit, representatives from the residential and civic associations to participate in our Board meetings, if not on our committees. We want everything, if we can. I have had personal discussions just at the end of 1996 with Mr. Hunter about the fact that Queen Village, because I am on as an individual, and not as a Queen Village resident, as I was then, that Queen Village did not have formal representation. And I asked, I said, "Please come. Come to the monthly meetings. See if there's somebody in the group that would like to do that, if you can't get to all of them." And there was an appointment of a Queen Village resident, John Lowell, whom I am sure 89 BILL 970275 most of you know, to be the official Queen Village Neighbors Association delegate to the South Street Headhouse District. So he would come to the Board meetings and interact with us and take whatever he wanted back to the civic associations, bring their concerns to us for consideration. You know we keep attendance records. We have for years. The ones I have here are just for 1997 to date. Mr. Lowell only came to three meetings, January, February, and April. We have not had a representative from Queen Village in his place since then. And they keep saying, "We want to sit on your Board, but we don't want to just come to your meetings." And one of the reasons that we made the decision we did early on, which is the same decision the Center City District made, was to have individuals who want to work on the Board. Queen Village has given lip service to, you know, good relations with the district, went so far as to appoint someone, and then has never, 90 BILL 970275 ever followed through. And I don't believe the district should be held responsible for this. There is a certain initiative that should come from the communities. Thank you very much. CHAIRMAN KENNEY: Thank you. Mr. Hunter, I think you have a right to comment. But what I would like to do is, I don't want to turn it into a debate. I think the purpose of the hearing is to accept testimony for the record. But we're not going to make a decision here who is right and who is wrong on this particular issue. And anyone else, if there is anyone else to testify -- is there anyone else? Can I see a hand? This will be the final witness.
I would like to respond to Miss Verber's remarks. It is true that John Lowell was appointed by me, or asked by me, to begin to attend these meetings. " And certainly it was a different level of him attending the meetings and sitting around a room and being a participant in these activities. It wasn't long before we realized that looking in the window of a group that is calling the shots that may possibly affect the future of Queen Village is certainly not very good for us. I would have loved to have a John Lowell or someone like that be part of that. But being part of something versus going and watching a movie of what's happening is a far difference. I have just handed to Miss Verber my own application for membership upon the Board. I understand there is a longstanding, quote, requirement that people serve in some committee or in some capacity to, quote, prove themselves. I would offer that my service to Queen Village, in making Queen Village a vibrant and safe community for South Street to exist in, is enough of an apprenticeship for anyone to deserve to 92 BILL 970275 sit at that table. When I talk about President of the Queen Village Neighbors being part of that committee, I am talking about 4 percent of the Board. Surely 4 percent of the Board, you know, cannot be such a threat to this group that I could not sit on that committee. I think a perspective would certainly be gained by that committee to be hearing my viewpoints and the viewpoints of the community. As I mentioned in my letter, if I purely understood what years means, if I could 14 understand all the business reasons for it, I should 15 be here as an escort for this. Because no one wants 16 South Street to thrive more than I. 17 But I do not accept as true, and I 18 would hope that this committee does not accept as 19 true, that we don't care and we don't have a 20 representative to go. It became quite clear to us that, on a honeymoon, the cousin of the bride is far different than the husband. CHAIRMAN KENNEY: In most families. Just one second. The Chair 93 BILL 970275 recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Mr. Chairman. Because of the time constraints on this legislation -- I believe we have to have it done before the end of this year. Am I correct? Somebody just can indicate that David Cohen is nodding his head yes. And the fact that this Council will recess some time in the middle of December, I'm not sure the exact date, some time around December 11 or so, I'm going to make a motion on this bill. But before I do that, I just want to say one thing. I share some of the confusion, as I said, that Mr. Hunter and others have. While I don't necessarily think that maybe years is the 19 proper amount of time, I don't have a crystal ball, 20 I don't know what the magic number here is. Knowing government the way I knew it before I got here, and now finding out really how government works, that I have been here for almost two years, I certainly feel that five years is just not enough time. 94 BILL 970275 The public toilet issue, as an example, which I have been working on for almost two years come this January, has not, in most people's minds, really moved forward. Although I think we are going to get this thing done eventually, eventually could be another three years. So seeing how slow government works, again, five years I am not comfortable with. I am not totally comfortable with 20. But given that there is really no 13 hard testimony or any reason for me to believe that somewhere at 10 or would be a more appropriate 15 number of years, I am going to make a motion that we move forward on this legislation. And understand that between now and the time that the body votes on that, we still have time for some discussion. I would like to keep the dialogue going.
I would like to meet with the heads of the South Street Headhouse District and maybe the heads of the three civic associations that are here today, to see if we can't come to some other agreements that may make this work for all of us between now 95 BILL 970275 and the time that the vote is taken in Council. But I don't want to just hold this up today. Because by the time we get back here, I don't want to jeopardize the district. I don't want to throw out the baby with the bath water, as they say. I think we need to continue to move forward. And we do have several weeks to discuss some of the issues that were testified to here today. CHAIRMAN KENNEY: Thank you very much. Councilwoman Verna.
Mr. Chairman, the only thing that distresses me about this is that people who go to the meetings, I am told, cannot be heard, perhaps because of a time element. I would suggest that perhaps as we go through our budget hearings, and we have many, many witnesses to testify, we use a timer. And I think if it is made known from the beginning of the meeting that people have, say, five minutes to voice their opinion, and the timer go on, then at least people will feel that they have 96 BILL 970275 been able to express themselves, and certainly want to be a part of the entire community. I just don't think it is fair for people to go to a community meeting and certainly not be heard. CHAIRMAN KENNEY: Any other comments or questions? That will conclude the business of the Council Committee on Rules. (Public Hearing adjourned.) 97 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING of the COMMITTEE ON RULES - - - Tuesday, October 28, 1997 - - - Public Meeting conducted by the Committee on Rules, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL 970275 - - - PRESENT: COUNCILMAN JAMES F. KENNEY, Vice-Chair COUNCILWOMAN ANNA CIBOTTI VERNA COUNCILMAN FRANK DiCICCO COUNCILMAN RICHARD T. MARIANO - - - 98 PUBLIC MEETING CHAIRMAN KENNEY: We will now convene a Public Meeting, and the Chair recognizes Councilman DiCicco for a motion on Bill No. 970275. COUNCILMAN DiCICCO: I make a motion that Bill No. 970275 be reported out of Committee with a favorable recommendation. (Duly seconded.) CHAIRMAN KENNEY: Moved and seconded. All in favor. There are none opposed. Bill No. 970275 will be reported out of this Committee with a favorable recommendation. Bill No. 960696 is being held at the request of the sponsor. Thank you very much for your attendance and participation. (Public Meeting adjourned at 12:25 p.m.) - - - 99 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, October 28, 1997, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE ON RULES _____________________________________ DEBRA A. WHITEHEAD, RPR