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Committee Hearing, April 5, 2011

Minutes from Philadelphia City Council Committee Hearings, Apr 5, 2011

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Mr. Greenberger

I will try to6 do that.7

Councilman Green

-- or -- and8 I don't mean people's -- or change it.9

Mr. Greenberger

The reason it10 exists, at least part of the reason it11 exists, is that we are limited by Charter12 to ten exempt positions in Commerce.13 There are more than ten exempt employees,14 and that's why there are Commerce staff15 who are in this program. At least I16 think this is how it started. There are17 also Commerce staff that are under the18 MDO.19

Councilman Green

So why don't20 we make them -- okay. So we can't21 create -- if we can't obey the Charter,22 should we do workarounds or should we23 amend the Charter or should we do --24

Mr. Greenberger

Well,25 126 4/5/11 - WHOLE - BILL 1101371 apparently for 18 years, there's been a2 workaround. My preference would be to3 simplify all this. This is kind of a4 headache, to be honest. Does it make a5 difference? I mean, you quoted a reason6 why it might make a difference in terms7 of actual operations. That's not been8 our experience. People who are working9 on this PIDC budget totally believe10 they're working in the Commerce11 Department. We've never had a problem12 with that. And then it just becomes a13 question of all the things we have --14 and, by the way, I had conversations with15 the previous Budget Director and I'm16 having conversations -- oh, there she17 is -- with the current Budget Director18 about trying to bring this back sort of19 into the normal fold. It would eliminate20 a headache for us. Not a massive one.21 And there's a question of how much time22 do we have to put into making this23 straight versus all the other things we24 have to do. I mean, it's a real simple25 127 4/5/11 - WHOLE - BILL 1101371 question. We're working on it.2 Would you like to say3 something?4

Ms. Rhynhart

Yeah. I was5 just going to add that we are working on6 it. It's something that it would be much7 more straightforward if it were paid out8 of the General Fund, and so we're just,9 as Alan said, we're just looking at the10 complications around pension and vested,11 how many years -- if they moved over to12 the General Fund, could they enter the13 City's pension plan with the same number14 of years of service or how would all of15 that work or would they have to start16 from the beginning.17 So there's some issues18 definitely, but it's also something that19 I think we agree with you, that it would20 be more straightforward if it were out of21 the General Fund. So we're working on22 it.23

Councilman Green

Does PIDC24 have a pension plan?25 128 4/5/11 - WHOLE - BILL 1101371

Ms. Rhynhart

Yes, they do.2

Councilman Green

A defined3 benefit pension plan?4

Ms. Rhynhart

I don't know the5 specifics of their plan. We could get it6 to you, but I don't know.7

Councilman Green

Okay.8

Ms. Rhynhart

I was just told9 it's a defined contribution plan.10

Councilman Green

So there's11 no problem with respect to pension plans12 then, because they can move it to our 42313 plan or to another 401(k) plan or --14

Ms. Rhynhart

I've heard that15 voiced as a concern, but, again, we do16 want to work on it and see what the17 possibility is. We agree with you that18 it would be more straightforward.19

Councilman Green

Okay. So20 maybe next year we'll have it as Class21 100 funding?22

Ms. Rhynhart

Yes, or be able23 to explain why it would not be possible.24

Mr. Greenberger

One or the25 129 4/5/11 - WHOLE - BILL 1101371 other.2

Councilman Green

Okay. In3 the 15.4 million in, I guess it's, CDBG4 contract spending, which is Class 2505 professional service contracts, the OHCD6 Consolidated Plan contains some7 information about this funding, but not8 much specific information. These are the9 questions I asked about contracts, and if10 you could just provide us, to the extent11 they're known, the provider name, the12 contract amount, how many years the13 provider has had the contract, scope of14 work, including any quantifiable metrics15 that are requirements, documentation of16 performance, including measurement of17 metrics, and how Commerce monitors the18 contract to ensure that citizens receive19 value from it.20

Mr. Greenberger

Okay.21

Councilman Green

Those are22 all my questions. Thank you.23

Council President Verna

Thank24 you.25 130 4/5/11 - WHOLE - BILL 1101371 The Chair recognizes2 Councilwoman Miller.3

Councilwoman Miller

Thank4 you. Thank you, Madam President.5 Good morning --6

Mr. Greenberger

Good morning.7

Councilwoman Miller

-- to the8 Commerce Department, City Planning.9 I have a few questions,10 operational type questions. I want to11 start with the question -- I didn't ask12 this of the City Rep, particularly since13 she said it's a partnership between the14 Center City District and the Commerce15 Department.16 I would like to know in17 reference to the Philadelphia Retail18 Marketing Alliance, which attracts new19 retailers and retains existing ones, I20 was wondering when did this Alliance21 start? What are the results? I believe22 that, as Bill said, the fifth largest23 city should have more than one department24 store in Center City, and I was sitting25 131 4/5/11 - WHOLE - BILL 1101371 here trying to think of other parts of2 the City that has department stores and3 the only place I could think of was the4 mall up at Cottman, what I describe as a5 department store.6 So when did this partnership7 start and what stores -- what new8 retailers have come and where are these9 retailers -- who are the retailers, where10 are they located and how many jobs have11 they actually created, and just what's12 the result of the partnership.13

Mr. Bumb

Duane Bumb, Deputy14 Commerce Director.15 I think for many of the16 specific questions that you've asked,17 we're going to have to get back to you18 with the detail, but just the larger19 question, the initiative was announced by20 Mayor Nutter about a year ago. It was a21 partnership piloted with Center City22 District, so focused where they were23 providing the resources, creating a24 website to help to sort of get facts out25 132 4/5/11 - WHOLE - BILL 1101371 about our market, about the retail2 opportunities in the City, again, focused3 primarily initially on the District, the4 Center City District. There are some5 specifics or outcomes that we've gotten.6 Again, I think what we'll do is get back7 to you with the specifics.8

Councilwoman Miller

Is there9 a particular reason why we don't have any10 more than just one like major department11 store in Center City? They don't want to12 come here? I mean, what is it?13

Mr. Greenberger

Well, it's14 pretty clear that there's reluctance to15 come here, but why exactly that is is16 probably ten different reasons and17 probably the subject of another18 discussion with a little more research19 behind it.20

Mr. Bumb

Right. And maybe21 just to add to that, what we think about22 traditionally as department stores has23 changed dramatically over the last24 several years where discount stores,25 133 4/5/11 - WHOLE - BILL 1101371 big-box discount stores in fact have sort2 of stepped into the marketplace and3 consolidated. Macy's is one of a very4 few traditional department stores.5 Boscov's would be another traditional6 department store, but the rest of the7 market is basically Target and Wal-Mart8 and other sort of big box, and we work9 with all of those to find opportunities10 here, because the market is changing for11 them.12

Mr. Greenberger

I will13 mention, though, Councilwoman, that14 people like K-Mart, Target, even15 Burlington Coat think of themselves as16 department stores more or less in17 addition to the ones that we all18 traditionally think of, like Macy's, and19 obviously those do exist in various20 corners of the City at whatever level one21 perceives them.22 I will also mention one other23 thing that was told to me by Joe Coradino24 from PREIT. The downtown Macy's is a25 134 4/5/11 - WHOLE - BILL 1101371 pretty good performer in the world of2 Cherry Hill, King of Prussia, downtown.3 They're pretty good.4

Councilwoman Miller

Well,5 that's good to know. I mean, they don't6 have much competition.7

Mr. Greenberger

Lack of8 competition I guess helps.9

Councilwoman Miller

Look, I10 love K-Mart, I love all those kind of11 stores. I could go in there and spend12 hours in there, but there's other places13 you want to go for certain items, and I14 just wonder why -- in fact, one of my15 doctors that relocated here, I think I16 told you last year, from upper New17 Jersey, used to shopping in New York,18 could not believe when he came to19 Philadelphia Center City that we had just20 Macy's for him and his family. And maybe21 they prefer to go out to the suburban22 malls. I have no idea, but I was just23 wondering why. I mean, certainly when I24 was a child, we had plenty of the type of25 135 4/5/11 - WHOLE - BILL 1101371 department stores such as Macy's and all2 those other stores that have -- many of3 them, I know, have gone out of business,4 but we have new stores and I just wonder5 why they're not in Philly.6 Okay. Well, whatever7 information you can give us, that would8 be appreciated.9 I do have other questions. I10 wanted to just address the issue of the11 plazas that you want to do, the five12 plazas. I sent you an e-mail while you13 were testifying. There's a plaza at14 Greene and Chelten in Germantown that I15 believe was a product of the project of16 the Commerce Department. There's a small17 retaining wall there and that wall is18 actually starting to crumble. So it's19 nice if you put up plazas, but who is20 going to be responsible for maintaining21 them, the upkeep of them?22 Last year there was an event in23 Vernon Park. We're talking about the --24 you know exactly where I'm talking about.25 136 4/5/11 - WHOLE - BILL 1101371 And one of the residents walked up to2 Mayor Nutter and said, There's a wall,3 whatever, falling down, and the Mayor4 asked me if I would actually find out5 what she's talking about, and that's6 exactly the corner that I just said.7

Mr. Greenberger

Greene and8 Chelten?9

Councilwoman Miller

Greene10 and Chelten. It's on the northeast11 corner. It's right there at the HXH bus12 stop. It's a small wall there. It's not13 like a huge million-dollar project, but14 it's a plaza. I remember when they did15 it. I can't remember whether I was a16 Councilmember or not. This may have been17 before I came to City Council. But it18 needs upkeep. Someone needs to maintain.19 So if you're going to do these20 plazas, they're fine, they look great,21 people use them, but if nobody is22 maintaining it, it becomes an eyesore,23 and that's what's happening at Green and24 Chelten.25 137 4/5/11 - WHOLE - BILL 1101371

Mr. Greenberger

Well, two2 things. One is, I'll just personally3 look into that one, because I want to --4 I have a pretty good image in my head of5 what it is, but I'll go and look at it6 again and make some inquiries.7 The other thing I would say is8 that what the Deputy Mayor for9 Transportation is talking about are not10 actually sidewalk-based plazas. They're11 actually little bits of the street that12 are not serving roadway purposes. They13 sometimes happen, for instance, at14 triangles where angle streets meet,15 orthogonal streets, and you wind up with16 some leftover road. Those are the kinds17 of places. There's a lot of examples18 particularly in New York where the city19 has sort of taken back the roadway for20 pedestrian use. That's really what21 happens. And the issue of maintenance is22 an issue, but I will make some inquiries23 on it as well.24

Councilwoman Miller

Well, I25 138 4/5/11 - WHOLE - BILL 1101371 can remember as a child what the City did2 or what the Commerce did is actually3 carve out an area for the buses to pull4 in rather than take up the street when5 they're loading passengers.6

Mr. Greenberger

Just sort of7 scanning my head for the image of it,8 it's not clear to me who is responsible9 for that space, but I'm going to find10 out.11

Councilwoman Miller

Because12 we've talked to the CDC and we've talked13 to a couple other people and we're just14 trying to figure out who is responsible.15

Mr. Greenberger

We'll find16 out.17

Councilwoman Miller

Because18 the wall is actually falling, and the19 Mayor asked me to take care of it for20 him.21 I have a couple more questions22 for OEO.23

Ms. Dowd-Burton

Good morning,24 Councilwoman.25 139 4/5/11 - WHOLE - BILL 1101371

Councilwoman Miller

Hi. Good2 morning. How are you?3

Ms. Dowd-Burton

Good. Thank4 you. For the record, I'd like to state5 that my name is Angela Dowd-Burton,6 Executive Director of the Office of7 Economic Opportunity. I didn't get a8 chance to introduce earlier.9

Councilwoman Miller

Can you10 please discuss what your top three11 priorities are for this year?12

Ms. Dowd-Burton

Absolutely.13 Well, there are actually four, but the14 top three are, first --15

Councilwoman Miller

You can16 tell us four.17

Ms. Dowd-Burton

Okay. To18 build our registry. The goal is to have19 as many companies in as large a variety20 of products and services in our registry21 as possible. That availability of22 companies, if you will, helps to drive23 the goals that we place in our RFPs and24 on our bid documents so that we can25 140 4/5/11 - WHOLE - BILL 1101371 increase the level of participation on2 City contracts. So that's the first3 goal, build a registry, which has grown4 over 28 percent in terms of the number of5 companies since January of 2010. We now6 have 1,708 companies in the registry, and7 growing.8 The second major goal for us is9 to build relationships, build10 relationships within the City government,11 understanding the needs of the operating12 departments, and the OEO officers that13 were commissioned by the Mayor last year14 within the operating departments are very15 much adding value in terms of the way the16 OEO staff understands the demands of the17 operating departments and the products18 and services that they need to acquire.19 So that helps educate us when we're20 putting in the goals for a particular bid21 or RFP.22 The third major area is23 outreach, expanding our outreach so that24 we can focus on the marketplace, building25 141 4/5/11 - WHOLE - BILL 1101371 relationships with minority and2 female-owned businesses who are3 interested in learning how to do business4 with the City. So we have three major5 programs that we launched over the last6 nine months. One is Doing Business with7 the City, Let's Get Started. It's a8 monthly program. The Procurement9 Commissioner and his staff participates,10 along with the Finance Department, L&I,11 PIDC. The state's Department of General12 Services also participates. And the13 underlying goal is to help provide14 information to minority and female-owned15 businesses and sort of demonstrate to16 them where the opportunities are and how17 they can pursue them.18 The second program that we have19 is Building Businesses, Putting People to20 Work. It's a program that we've worked21 with minority contractors on. The22 National Association of Minority23 Contractors, as well as the Minority24 Contractors Roundtable are major partners25 142 4/5/11 - WHOLE - BILL 1101371 in providing programs to the contracting2 community. And when I say "community,"3 that's not only minority and female-owned4 contractors, general contractors are also5 invited, because the goal is to help6 build relationships across the spectrum7 of companies there. We've had five major8 departments, from Aviation, Streets,9 Water, Public Property and Procurement,10 participate in those programs, as well as11 the RDA, PIDC, PGW and, of course,12 representatives from the state as well.13 And the third program that14 we've launched engages non-profits. We15 call it the Non-Profit Supplier Diversity16 Forum. The goal there is to bring in the17 top 100 non-profits we do business with.18 They represent over 80 percent of the19 dollars we spend across 415 non-profits,20 based on 2010's data, which was $1.921 billion that we spend with these22 agencies.23

Councilwoman Miller

That's24 the -- you mentioned the survey in your25 143 4/5/11 - WHOLE - BILL 1101371 testimony.2

Ms. Dowd-Burton

Yes.3

Councilwoman Miller

And4 Greenberger's testimony, there's a survey5 that's mentioned. And in the testimony,6 did you say that you sent that to our7 offices?8

Ms. Dowd-Burton

I said the9 survey --10

Councilwoman Miller

Or is it11 on the website?12

Ms. Dowd-Burton

The results13 of the survey for the top 100 non-profits14 is on our website. The results of that15 survey basically indicated 13 percent of16 the top 100 non-profits actually have17 supplier diversity programs. They've18 spent -- those that do have them spent19 $78 million with minority and women-owned20 businesses. From a workforce demographic21 standpoint, 60 percent of the workforce22 are females and over half those employees23 are Philadelphia based. We have another24 over half are also minority.25 144 4/5/11 - WHOLE - BILL 1101371 So our goal was to understand2 the demographic and the structure of the3 non-profits, bring them in, identify the4 barriers that they perceive for not5 having supplier diversity programs and6 then work with them to eliminate those7 barriers so that they can use the8 companies within the OEO registry that's9 located on our website or they can use10 other minority-owned firms, but the goal11 is to have them engage the minority and12 female business community in their13 operations.14 COUNCILWOMAN MILLER:15 Thirty-eight percent is good, but we16 still need to like push it up. And I17 think most non-profits that I'm familiar18 with, most have female staff. The19 majority of staff people happen to be20 female. I come from the non-profit21 world. But it sounds really good.22 I just have a couple other23 questions. I served on the Mayor's24 Diversity Commission for 11 months and we25 145 4/5/11 - WHOLE - BILL 1101371 had 44 recommendations, and I'm currently2 on the new Board that continued, as you3 know. And I know some of those4 recommendations need to be implemented5 legislatively, but what are we doing with6 the others?7

Ms. Dowd-Burton

In total8 there were 75 recommendations. Half of9 them dealt with the minority business10 community and the other half dealt with11 the workforce. We have work to do with12 the new MACCID Commission to prioritize13 all of those recommendations, with the14 understanding that we can't do it all at15 once.16

Councilwoman Miller

Right.17 We understand that.18

Ms. Dowd-Burton

So we're19 looking at the most impactful20 recommendations coming out of the21 Commission.22

Councilwoman Miller

One other23 question. So right now your department24 is actually keeping track of the25 146 4/5/11 - WHOLE - BILL 1101371 participation or is your department2 keeping track of the participation with3 City departments regarding workforce4 diversity, contracting, et cetera? I5 believe somewhere it was mentioned that6 you're going to have some kind of new7 tracking system?8

Ms. Dowd-Burton

Yes. Yes.9

Councilwoman Miller

So when10 will we be able to get a spreadsheet that11 shows what's happening in all of the12 various departments?13

Ms. Dowd-Burton

Well, right14 now you have access to the participation15 reports that we actually put online on a16 quarterly basis. In fact, the second17 quarter will be released this week, and18 we'll go after activity for the third19 quarter. And that deals specifically20 with for-profit contracts and the21 participation of minority, women and22 disabled-owned businesses in those23 transactions.24 With regard to the workforce,25 147 4/5/11 - WHOLE - BILL 1101371 we are working with the Bureau of Labor2 Standards as well as the Department of3 Technology to put a tracking system in4 that will not only track our5 participation, it will also track the6 workforce and the diversity of the7 workforce on contracts for the City of8 Philadelphia.9 The timing on that, we have10 selected a company. We're in the process11 of negotiating with them now. We're12 hoping to finalize the contract this13 year, this fiscal year, and then launch14 into the development of the software in15 the beginning of the first quarter.16

Councilwoman Miller

Okay.17 I'd be interested in whatever is going on18 with that.19 One other question, Council20 President.21 I know you're not doing22 minority certification. You're no longer23 doing that. So do you have a pamphlet or24 "where to" guide, particularly for25 148 4/5/11 - WHOLE - BILL 1101371 start-up businesses? Is the Commerce2 Department providing technical assistance3 to new firms that need certification, and4 where do they go?5

Ms. Dowd-Burton

Thank you for6 asking that question, because I neglected7 one of my colleagues in that Doing8 Business with the City, the Office of9 Business Services is a key partner10 working with us to get information out11 and into the community. And so we work12 closely with them to identify those13 companies that don't know how to get14 started. Their resources are those that15 support those companies that are trying16 to figure out where their strengths are17 and how they pursue business.18

Councilwoman Miller

Okay. So19 if I have someone, a constituent, that20 comes in and says they have an idea, they21 want to start a new business, who do I22 call?23

Ms. Dowd-Burton

Curtis24 Gregory.25 149 4/5/11 - WHOLE - BILL 1101371

Councilwoman Miller

Is he2 here? I've never met him.3

Ms. Dowd-Burton

He's over4 here. 215-683-2100.5

Councilwoman Miller

683-2100.6

Ms. Dowd-Burton

Yes.7

Councilwoman Miller

And even8 though you don't do certification, you9 will help them understand where to go and10 how to be --11

Ms. Dowd-Burton

Absolutely.12

Councilwoman Miller

And put13 their packages together, et cetera,14 correct?15

Ms. Dowd-Burton

Well, we're16 not going to put their packages together.17

Councilwoman Miller

No; help.18 We're saying TA.19

Ms. Dowd-Burton

Yes,20 absolutely. We will provide -- the21 Office of Economic Opportunity has on our22 website actually the certifying agencies23 that are approved across this region24 where they can go to get their25 150 4/5/11 - WHOLE - BILL 1101371 certification. Office of Business2 Services will provide the technical3 support for packaging.4

Councilwoman Miller

I had one5 call from a business, and probably more,6 but this particular person has been7 certified by the City forever, and then8 when you no longer started to certify,9 it's almost like she had to start from10 scratch. Isn't there some way that we11 could -- is there some way that you guys12 work together with the other agencies to13 say, Well, she's been certified with us14 for 30 years.15 My goodness, how could she go16 back and figure out and find all the17 documents from the first three years of18 business that I think she had to produce19 for certification for the state or for20 whomever? It just seems like people21 should be grandfathered in.22

Ms. Dowd-Burton

Well,23 Councilwoman Miller, we will --24

Councilwoman Miller

And have25 151 4/5/11 - WHOLE - BILL 1101371 you had those kind of discussions?2

Ms. Dowd-Burton

No, we3 haven't. But we'll be happy to speak4 with her, because the ultimate goal is5 for us to build businesses and put people6 to work. It's not to create barriers for7 them. At the same time, we want to make8 sure those companies that we report in9 our registry are certified. And the10 benefit of being certified in our11 registry is because we market not only12 across the City government but also in13 the private sector and the non-profit14 sector as well. So we'll see what we can15 do to help.16

Councilwoman Miller

I think17 she resolved the issue by going to the18 state, but she almost lost some of her19 contracts because she was no longer20 certified, but she had been certified.21 So I just think that there needs to be22 some grandfathering in of those kind of23 businesses that's been around for a long24 time and now all the sudden it's like25 152 4/5/11 - WHOLE - BILL 1101371 starting all over again.2

Ms. Dowd-Burton

We'll take3 that under consideration.4

Councilwoman Miller

Thank5 you.6 Thank you, Madam President.7

Council President Verna

Thank8 you.9 The Chair recognizes Councilman10 Jones.11

Councilman Jones

Thank you,12 Madam President.13 And thank you, Mr. Greenberger,14 for your endurance. This is grueling.15 But let me first start by saying that16 sometimes you have to measure things in17 context to what else is going on in the18 world. The City has undergone and been a19 victim of a recession and retraction of20 our economy, if you would. It is global21 in perspective. It is something we22 haven't seen in our lifetimes, I don't23 think.24 In light of that, I don't think25 153 4/5/11 - WHOLE - BILL 1101371 Philadelphia has suffered as badly as2 some cities, and probably because of3 that, its recovery won't be as stark as4 other cities. So navigating through a5 storm like that, yet you kind of have to6 put things in context. In that context,7 I give credit where credit is due.8 I went to the opening of a Kroc9 Center, which is a large recreation10 facility, non-profit in nature, but11 served as an economic building block for12 that area. I watched then the visiting13 nurses build or locate in an abandoned14 building, keeping jobs in the City of15 Philadelphia. I watched Park West16 prosper even with the recession going on,17 and I watched a number of -- now Bakers18 Square. We were at the groundbreaking19 for that.20 I say that to say, I'd like to21 kind of be balanced in the review of a22 department, giving credit where credit is23 due. I note that there was an article24 citing that it's the largest number of25 154 4/5/11 - WHOLE - BILL 1101371 minority businesses in the last several2 decades. So if we give you the criticism3 when things are going wrong, we should4 also give you at least an assist, an 'ata5 boy, 'ata girl, 'ata person credit when6 things are going a little better.7 Having said all of the nice8 stuff I'm going to say --9

Mr. Greenberger

This was the10 set-up, you mean.11

Councilman Jones

No, it's not12 a set-up. It is genuine. But I want to13 just go into some more challenging14 issues.15

Mr. Greenberger

That's fine.16

Councilman Jones

It looks as17 though Hunting Park is coming back and18 beginning to show signs of life. I19 understand PIDC did an industrial land20 use study. Can you give us the salient21 points of that study and what were the22 teachable points within that study?23

Mr. Greenberger

I probably24 would make two points from it that I25 155 4/5/11 - WHOLE - BILL 1101371 think are critical. One is that the2 nature of industrial use related to land3 has changed, and Tasty is a great4 example. You can't have a factory that5 was arranged that way anymore, even6 though that's like the basis of all of7 our 19th century and early 20th century8 industrial buildings. It was too crazy,9 too inefficient, just didn't work. So10 notwithstanding Tasty's issues, they're11 in a much more efficient operation that12 also happens to consume more land than13 you would typically have in a multi-story14 building.15 So one of the points of the16 study was to say that the kind of17 industrial uses that are out there that18 are likely to happen here need more land,19 and we control a surprisingly small20 amount of it in an inventory to make21 available to those kind of uses. That's22 an issue that we have to confront. It's23 not that there isn't land. There's tons24 of land out there, particularly along the25 156 4/5/11 - WHOLE - BILL 1101371 riverfronts. We don't control a lot of2 it, and some of it has the usual3 hazardous material, pollution, clean-up,4 kind of brownfield issues are going to5 have to be reckoned with.6 So there's this odd thing of a7 lot of land out there, but not enough of8 it actually in direct service and support9 of the kind of industrial demand that10 tends to show up now. That's one thing.11 The second big point to the12 study is that historically there are many13 areas in the City -- and to name several14 of them, Kensington, parts of Germantown,15 parts of North Philadelphia -- that were16 the kind of core of this 19th century17 industrial base. They're clearly not18 that anymore, and we need to come up with19 new zoning ideas and zoning redo's to20 make those -- to put those areas -- to21 help put them back on the map. We're22 carrying too much kind of scattershot23 industrial zoning that doesn't apply24 anymore. And so the study's suggestion25 157 4/5/11 - WHOLE - BILL 1101371 was to look at those, identify those2 transitional areas that ought to be3 transitioned back to more normal4 residential and commercial activity.5

Councilman Jones

And6 downsizing of the inventory to7 accommodate new use?8

Mr. Greenberger

Particularly9 the inefficient inventory, right.10

Councilman Jones

On the11 converse, how do you make the industrial12 land more marketable, more palatable to13 developers? What are your top three14 strategies to do that?15

Mr. Greenberger

One is to own16 it. That's a big one.17

Councilman Jones

That's one.18

Mr. Greenberger

The second19 thing is to --20

Councilman Jones

How do you21 plan to do that?22

Mr. Greenberger

Well, without23 sort of naming names that would mess up24 potential transactions, we're talking to25 158 4/5/11 - WHOLE - BILL 1101371 a number of businesses that own2 significant amounts of property that we3 think are in the right general location4 and the right type to see whether there5 are acquisition possibilities out there.6 So owning it is the first7 thing. Remediating it is often a big8 deal.9

Councilman Jones

Keeping it10 clean.11

Mr. Greenberger

Depending on12 use. Some uses you can easily put into13 formerly polluted areas, others you14 can't. So I would say that's the second15 one.16 And the third one is making17 sure that there is infrastructure,18 particularly roads, that provide19 reasonable access to these sites so that20 they're credible as industrial21 development.22

Councilman Jones

I wanted23 your top three, because notably lacking24 in your top three is energy use, which is25 159 4/5/11 - WHOLE - BILL 1101371 probably going to increase costs of2 manufacturing, costs of producing goods,3 and it seems to me that we might want to4 invest in a number of ideas to create5 energy-free zones or to try to find6 grants, opportunities to reduce the7 amount of energy consumed by a8 manufacturer, thus reducing the amount of9 cost of doing business in that location.10 Whether we talk about11 innovations such as the two rivers that12 we have by way of using. There was one13 idea about turbines.14

Mr. Greenberger

Tidally15 driven turbines, yeah.16

Councilman Jones

Correct.17 And another using solar power to reduce18 some of that, and whether there were19 federal and state tax credits or grants20 to accompany the acquisition of a said21 property to then enhance that value of22 that property by reducing energy23 expenditures.24 So I want to see vision by way25 160 4/5/11 - WHOLE - BILL 1101371 of our planning to better market those2 areas.3

Mr. Greenberger

All good4 points.5

Councilman Jones

I need to6 ask you then when a business comes and7 knocks on the door of the City of8 Philadelphia, what is the critical9 decision process by which you refer10 someone to Hunting Park, American Street11 or the Navy Yard?12

Mr. Greenberger

Well, I'll13 give you -- I'll answer that question14 with a forward that says, many times15 those kind of businesses that show up16 show up with a very particular idea in17 mind, that I want to be in this location18 or that location. Sometimes because --19 I'll give you a couple of examples.20 There have been businesses --21 we talked about one this morning -- that22 wants to move here from another part of23 the state. They specifically want to24 lease space in the Navy Yard because25 161 4/5/11 - WHOLE - BILL 1101371 they're a clean tech company and they see2 the emergence of this kind of clean tech3 nucleus that's happening at the Navy Yard4 because of this big Department of Energy5 grant. So there's -- it's like a little6 solar system of companies that are7 starting to come together and they all8 want to be in the same place. They come9 to us and say, Navy Yard.10 There are other companies, Teva11 is a good example, that have been --12 they're up in Bucks County, Lower Bucks,13 I guess. They're comfortable in that14 area. They found a potential property in15 the City of Philadelphia that's not far16 from where they do business otherwise and17 they came to us and said, We think that18 we're interested in that site, along with19 one in Bucks County. They kept this20 competitive for us.21 And so a lot of companies come22 with some idea in their head about where23 they want to be. To the extent that24 they --25 162 4/5/11 - WHOLE - BILL 1101371

Councilman Jones

I'm going to2 narrow that to the ones that don't have3 an idea.4

Mr. Greenberger

To the extent5 that they don't, which happens far less6 frequently, but to the extent that they7 don't, we start to look at several8 factors. One is how much land do you9 need. So how does it stack up against10 our own inventory of land. Two is where11 are your natural points of access that12 have something to do with how you move13 whatever it is you do, if it's a product,14 how are you getting it to market. The15 third is labor force, what's the nature16 of the labor force you need, where are17 those people more likely to be located18 and/or how do we get people from other19 parts of the City to those locations.20

Councilman Jones

I'm going to21 do this, and then I'm going to let it go.22 I'm going to do this and then I'm going23 to let it go. I am concerned about24 the -- if I were -- if we were talking25 163 4/5/11 - WHOLE - BILL 1101371 about a used car salesman, a lot of it is2 subjective and opinion driven, and if I3 have a relationship with one of those4 industrial facilities and it then becomes5 in my self-interest to promote that one6 as opposed to others and it becomes a7 self-fulfilling prophecy because you8 point at that one first, and then when9 you figure out the price point isn't10 right for that person, then you refer11 them to the wreck over here. And I'm12 saying --13

Mr. Greenberger

I know what14 you're saying.15

Councilman Jones

I'm saying16 to you that I will be paying particular17 attention to that, because I love every18 part of the City. I am a supporter of19 the Navy Yard. It's wonderful, but I20 represent the 4th Councilmanic District21 and the land of the brave, home of the22 free. And I want -- when someone comes23 in with a fresh set of eyes looking at24 Philadelphia, I want American Street25 164 4/5/11 - WHOLE - BILL 1101371 considered, I want Parkside considered, I2 want Hunting Park considered and not just3 the first place pointed to is the Navy4 Yard. I think at this tipping point, the5 velocity of that development will take6 over for itself. It is hot. But in7 order for the other areas to get hot, we8 have to kind of give them a little bit of9 attention as well. Not to say that you10 don't, but I will be monitoring that you11 do.12 I want to switch a little bit13 to commercial corridors. What's in the14 budget for commercial corridors this15 year?16

Mr. Dow

Well, Councilman, as17 you may know, that the majority of our18 funding for commercial corridors comes19 through the Community Development Block20 Grant process. We have a number of21 programs that we're looking to renew or22 continue going forward. Depending on the23 outcome of the Community Development24 Block Grant process will dictate how much25 165 4/5/11 - WHOLE - BILL 1101371 is actually in that bucket for commercial2 corridors.3

Councilman Jones

How much do4 you got in the budget now?5

Mr. Dow

I'm sorry?6

Councilman Jones

How much is7 in the budget now?8

Mr. Dow

I would say9 approximately about $2 million right now,10 all total, if you wrap it all in there.11

Councilman Jones

So when you12 say "wrap it all in there," codify what13 you mean.14

Mr. Dow

So you got a million15 dollars for -- what we did this past16 year, we did a million dollars for17 neighborhood and economic development18 grants. So while all of those may not19 have been on corridors, that was a big20 portion of the dollars.21 Storefront improvement grant22 programs, we have ongoing processes where23 we put dollars into the storefront24 improvement grants. That's the Facade25 166 4/5/11 - WHOLE - BILL 1101371 Grant program. We also have Commercial2 Corridor Manager grants, and so we add3 those dollars in there. You have the4 mixed-use facility that you proposed for5 the use of resources going into the6 mixed-use facility. So that was a7 million dollars in and of itself right8 there in this past year. We're looking9 towards -- once we realize what the10 Community Development Block Grant11 process, we are at this time recommending12 that we hold steady those grants in that13 Community Development Block Grant14 process.15

Councilman Jones

Point of16 information for you. I have nine votes17 to say that's not enough money. So go18 back to the drawing board and consider19 some more. We have over 40 commercial20 corridors that you have an official21 relationship with and another hundred in22 the City of Philadelphia. We think23 that's woefully inadequate to do anything24 on any of them. I'm thankful for all25 167 4/5/11 - WHOLE - BILL 1101371 that I get, but I have Market Street to2 think about, from 46th to 63rd Street.3 We appreciate what SEPTA did to bring in4 a beautiful El and infrastructure, but an5 unintended consequence of what happened6 was 50 small businesses disappeared,7 family-owned businesses gone, devastation8 in its wake. So transitioning from that9 it is not enough money, so go back to the10 drawing board.11

Mr. Dow

I appreciate that.12 We would agree that it is not enough13 money.14

Councilman Jones

We're going15 to make sure we take care of you. I know16 you can't -- you're wearing an away team17 jersey, but we're going to insist upon18 that. You can consider this the revenge19 of PCDC. You can consider it that. And20 that's --21

Mr. Dow

I'm not sure how to22 react to that one.23

Councilman Jones

It's made in24 gest.25 168 4/5/11 - WHOLE - BILL 1101371

Mr. Dow

If it works for us,2 it works for us.3

Councilman Jones

We want more4 money dedicated to that.5

Councilman Jones

Second thing7 is that that plan -- is there a plan for8 what I call New Market Street West? It9 is a transit-oriented development. We10 put all of that infrastructure in there11 from 46th to 63rd Street. Political12 note, that just about a half dozen13 elected officials border right there. So14 there are two Congressmen in that area,15 two State Senators in that area, about16 three Councilpeople -- no; two17 Councilpeople in that area, about four18 State Reps that all border right there,19 that if we just all put in a little bit20 of money and work with you guys, we would21 be able to all take credit for that. But22 there is no plan. There is no working23 group. And with that much that there are24 close to a million people that ride25 169 4/5/11 - WHOLE - BILL 1101371 transit within that boundary, it is --2 but the sad part of it is that most of3 that economic buying power for those4 respective neighborhoods goes to 69th5 Street out of Philadelphia or to Center6 City.7

Councilman Jones

What can we9 do? Where is the plan? When will we10 start working on that plan?11

Mr. Dow

Sure. There's a --12 we have done some work along the Market13 Street corridor. I think that a lot of14 our resources of late have been focused15 at the 52nd Street hub. We know that we16 are doing planning at 60th and Market17 Street, and we've looked to extend some18 work towards 63rd and Market Street so19 that we cover basically 63rd being kind20 of the drawing line of the City's21 boundaries and working in all the way22 through.23 And we agree. We work with all24 the various governmental officials and25 170 4/5/11 - WHOLE - BILL 1101371 elected officials along that corridor,2 and we have a working team for the Market3 Street revitalization. We work with4 PennDOT to drive some of the resources5 that are in there along there. We've had6 some conversations for a long year with7 PennDOT about what we could and can and8 cannot do. We've finally gotten some9 clarity about what that looks like, and10 now we're looking to go ahead and11 implement those along the corridor.12

Councilman Jones

I'm seeking13 a specific commitment from Alan -- I'm14 sorry; Mr. Greenberger.15

Mr. Greenberger

Alan would be16 okay.17

Councilman Jones

Alan is18 okay?19

Mr. Greenberger

That's what20 most people call me.21

Councilman Jones

To pull22 together a planning group --23

Mr. Greenberger

I'll be happy24 to do that and --25 171 4/5/11 - WHOLE - BILL 1101371

Councilman Jones

-- that2 consists of stakeholders from the state,3 stakeholders from the federal government.4 And I know both are crying broke, but5 within certain purviews and -- here comes6 my backup. I see her moving toward the7 mike since I'm talking about Market8 Street.9 I want to pull together a10 working group that includes the11 stakeholders. PHA, for example, owns 9012 scatter sites in my district that they do13 not have -- that are vacant. They do not14 have a plan to transit. If PHDC, if PHA,15 if the Commerce Department, if SEPTA, if16 all of us come together, DCED, the U.S.17 Commerce Department, small business, we18 can fix Market Street. And Councilwoman19 Blackwell had to suffer ten long years of20 telling people, Help is on the way, and21 I'm here to join the fight now, to join22 the fight to make sure that help is23 really on the way. But it doesn't start24 until we start seriously planning what25 172 4/5/11 - WHOLE - BILL 1101371 comes next.2 We believe increased density is3 appropriate there, but I don't want to4 introduce a bill that takes it from three5 stories to five stories until I talk to6 you, until we think it through.7

Mr. Greenberger

Agreed.8

Councilman Jones

So I'm9 asking you to lead the way, because left10 unto Council, we'll lead.11

Mr. Greenberger

This is the12 kind of stuff that sort of drives our13 passion. It's about growth in the City.14 And as you correctly point out, it is15 going to take a lot of people with16 resources probably from a lot of places17 to sort of make a difference, but even18 before we get to that, because you're19 right, I mean, you could pass20 legislation, but if we haven't thought21 through what can we do, what's realistic,22 what's ambitious, what's realistic, where23 are the sources of money, what's a vision24 of how it looks like, it's all just sort25 173 4/5/11 - WHOLE - BILL 1101371 of hunted in the dark. I don't want to2 do hunted in the dark.3

Councilman Jones

And I4 appreciate that commitment on the record.5 Stenographer, you got that.6 No. I appreciate that.7

Mr. Greenberger

I'd be happy8 to do that.9

Councilman Jones

We look10 forward to working with you on that.11 My last question will be, I12 have been consistent in talking about13 Resolution 100748 and Bill No. 110143,14 which deals with contracting out and15 doing an analysis to look at issues that16 my colleague Wilson Goode and my17 colleague Blondell Reynolds Brown brought18 up about renewable contracts. They19 brought it up from the inclusion point.20 I would like to raise it from these two21 resolution and bill's perspective, that22 if we buy into a requirements contract23 that is a year or two years, financial24 conditions change, and if we don't from25 174 4/5/11 - WHOLE - BILL 1101371 time to time look at that change to see2 if it's in the benefit of the City, of3 the taxpayer ultimately, to take a look4 and say, Well, we did it this way when5 the market was at this point, it is now6 at this point, time to readjust.7 So I don't want to -- and I8 spoke with the Procurement Commissioner.9 I don't want to be a boil on the behind10 of progress creating an overlapping11 requirement where it is not necessary.12 So there may be exemptions that we might13 want to put our heads together to come up14 with, but I don't want us just spending15 money like we print it, because we don't,16 and in the process, one of the17 consequences may be inclusion, but I18 definitely want it to be driven based on19 efficiencies, based on contract price and20 competitiveness. So those respective21 resolutions and bills are designed to22 force us, force us to do the extra step23 to evaluate whether or not it is cheaper24 to do work in-house versus allow a25 175 4/5/11 - WHOLE - BILL 1101371 contract to exist that is not efficient,2 effective and cost effective.3 Thank you, Madam President.4

Councilman Goode

Madam5 President, point of information.6

Council President Verna

The7 Chair recognizes Councilman Goode for a8 point of information.9

Councilman Goode

Thank you,10 Madam President.11 I had a quick point of12 information on the previous question13 Councilman Jones asked or basically a14 number of issues he addressed, and I15 guess he called it the revenge of PCDC,16 and actually that was somewhat accurate,17 but I want to summarize some of his18 questions in asking a two-part question.19 One, has PIDC ever cried broke, and, two,20 does PIDC have a neighborhood commercial21 corridor strategy, and that includes22 small business lending?23

Mr. Greenberger

Could you24 just -- because, again, I have a lot of25 176 4/5/11 - WHOLE - BILL 1101371 trouble hearing in this room. What was2 that first question? I heard the second3 question.4

Councilman Goode

PIDC has5 never complained about lack of resources.6 PCDC was consumed by PIDC, with the7 thought that the neighborhood commercial8 corridor activities and the small9 business lending could all be handled at10 one place. And so I guess the question11 that's really being asked is beyond the12 CDBG resources, which may be limited and13 which may become even more limited. More14 importantly, as it relates to small15 business loan resources and other16 resources contained within PIDC, how17 exactly is PIDC involved in neighborhood18 commercial corridor development?19

Mr. Greenberger

Okay. Let20 me -- I hope this at least partially21 answers your question. Let me just22 recite for you some statistics from -- I23 guess it's this current year. So it's24 from June -- July 1st, 2010 through March25 177 4/5/11 - WHOLE - BILL 1101371 25th, 2011, just to give you a sort of2 general feel for it. And I'm happy to3 provide you this information.4 PIDC to this point has made 425 loans, of which -- and you can make sure6 I'm looking at the right place -- of7 which 20 of them are small business8 loans.9

Councilman Goode

Do you know10 if they're on neighborhood commercial11 corridors, and, if so, why wasn't that12 mentioned in response to the question how13 much money we have for neighborhood14 commercial corridors? And that's a15 historical problem with a tremendous16 amount of resources being housed at PIDC.17 There were very limited resources housed18 at PCDC. That's why it was thought that19 PCDC could just be rolled into PIDC, but20 the commitment was that a neighborhood21 commercial corridor, neighborhood22 economic development strategy would be23 developed at PIDC. And so it's not24 really a lack of resources per se.25 178 4/5/11 - WHOLE - BILL 1101371

Mr. Greenberger

In looking at2 the list of loans, I know that some of3 them are involved in commercial4 corridors; some not.5

Councilman Goode

At the end6 of the day, the best way to grow a7 commercial corridor is to start new8 businesses there, and particularly if you9 already have the retail demand contained10 there.11

Mr. Greenberger

Right, if the12 demand exists and obviously the13 businesses want to be there. And some of14 these are indeed on commercial corridors;15 others not. In fact, I can see a couple16 that are not.17 Also, I should point out that18 the sources are also varied, from CDBG to19 Urban Development Action grants, private20 financing, state enterprise zone.21 There's a mix also there as well.22

Councilman Goode

I23 understand, know the resources are there,24 but similarly as Councilman Jones talked25 179 4/5/11 - WHOLE - BILL 1101371 about attracting to Parkside and Hunting2 Park and American Street as opposed to3 just Navy Yard, similarly as people -- if4 you don't have people there doing5 neighborhood commercial corridor deals,6 if people don't feel that PIDC is a place7 to go to for small business loans,8 particularly in neighborhood commercial9 corridors, then it's not going to happen.10

Mr. Greenberger

Right. And I11 think we need to do a better job of12 making it known, because in fact it's13 almost halfway point of the loans made14 are in fact small loans, which is15 probably not known enough.16

Councilman Goode

And the17 final small point in this very long point18 of information is simply that we have a19 loan guarantee program that too many20 people have no knowledge of.21

Mr. Greenberger

Right.22

Councilman Goode

Thank you,23 Madam President.24 COUNCIL PRESIDENT VERNA:25 180 4/5/11 - WHOLE - BILL 1101371 You're welcome.2 The Chair recognizes3 Councilwoman Sanchez.4

Councilwoman Sanchez

Thank5 you, Madam Chair.6 Good afternoon.7

Mr. Greenberger

Hello.8

Councilwoman Sanchez

Most of9 my questions were answered, but I do want10 to kind of echo what Councilman Goode was11 saying as it relates to a long-term12 strategy around commercial corridors. I13 want to thank the Commerce Department.14 In the last couple years we've made15 tremendous progress on streetscape and16 actually getting those things done. So I17 want to acknowledge the work and18 appreciate the facilitation by Commerce19 and putting that money on the ground and20 actually doing them, Kensington and21 Lehigh, somebody in Kensington and22 Allegheny, Centro de Oro, very important,23 and I know we're doing some stuff in24 Frankford.25 181 4/5/11 - WHOLE - BILL 1101371 The next phase of that becomes2 exactly to what Wilson is talking about3 in terms of the amount of money we're4 going to be able to put in the street to5 encourage to fill in those vacancies. I6 was wondering if there's any commercial7 corridor money that's left from the bond,8 and I notice that we may want to think9 about reallocating to places where we10 started doing some work that we want to11 finish, and I specifically -- this is12 where I need Commerce to play a13 leadership role. I specifically want to14 look at the cleanliness and long-term15 sustainability of the corridors. I16 notice that for the Streets Department,17 particularly with the streetscape18 money -- with the stimulus money, we did19 not have the bellies allocated to20 corridors that we redid, and I was hoping21 that we could get some assistance in22 looking at that, because there's a missed23 opportunity.24 Here we're spending -- Centro25 182 4/5/11 - WHOLE - BILL 1101371 de Oro we're spending $5 million, but we2 don't have other things tied into that.3

Mr. Greenberger

I think, if4 you don't mind, I'm going to divide what5 you just said into two questions. First6 question was, is there money in the7 Commercial Corridor Bond money. No.8 We've spent it all on commercial9 corridors and cultural facilities. It's10 spent. It's almost entirely done and11 executed, unfortunately. I wish we had12 more.13 The second question, though, is14 an interesting one, because in Commerce15 we have ongoing programs of technical16 assistance -- and, Kevin, if you want to17 chime in on this. We have ongoing18 programs of technical assistance to help19 commercial corridors figure out how to20 manage, and they run anywhere from21 creation of bids, which is arguably the22 most complicated, to corridor managers23 vested in local CDCs. And we need in24 each case to work with communities to25 183 4/5/11 - WHOLE - BILL 1101371 figure out which one is most likely to2 work, to do the kind of clean and safe3 programs that are typically necessary to4 keep these things healthy.5 The other thing I want to6 add -- and then, Kevin, I'm going to ask7 you to chime in -- is that through8 zoning, through remapping, which is going9 to happen over the next several years, we10 also need -- I know you've heard me say11 this before. I apologize for probably12 repeating myself. We need to take a very13 careful look at commercial corridors,14 with an eye towards making them probably,15 not always, probably a little smaller so16 that we have better-run, denser,17 easier-to-manage, no-vacancy corridors18 rather than the ones that we have19 historically had, which were based on a20 city with much more population and,21 therefore, have more vacancies that we22 can't just magically fill because the23 uses aren't there and the demand is not24 there.25 184 4/5/11 - WHOLE - BILL 1101371

Mr. Dow

And, Councilwoman, I2 would also add to that. The opposite end3 of that spectrum is also to look at --4 that will help us -- the density aspect5 of that will help us manage those dense6 corridors to have businesses there. So7 they have different needs. Then there8 are corridors that just have no9 businesses there. There are parts of10 Germantown Avenue that are just vacancy11 after vacancy after vacancy. And then we12 need to look at that and determine what's13 the best approach to trying to engage the14 community, the businesses there or the15 businesses to locate there. So it's a16 both "and" in that regard.17 And so I think what Alan and I18 would -- I agree wholeheartedly with Alan19 to say let's break them down into smaller20 pieces and then look at the unique21 characteristics of each to then determine22 which way is the best way to approach it23 and resolving the problems.24

Councilwoman Sanchez

No; I25 185 4/5/11 - WHOLE - BILL 1101371 agree with you. My concern is the same2 way that Streets is coming or in this3 case Rina Cutler's unit is coming saying4 we want to do these plazas, I think that5 the fact that the Commerce Department did6 all these commercial centers and we7 didn't ensure and they didn't give us8 their part of the investment. I'm very9 disappointed that in the commercial10 corridors where we spent a lot of money,11 made a lot of investment and leveraged a12 lot of money are not on their radar13 screen in terms of investments for the14 big bellies and the other stuff. So here15 I am with these new corridors and they're16 all downtown, but I don't have them in17 the neighborhood. So it seems like why18 are we investing $5 million on the Centro19 de Oro and I can't get the big bellies20 there.21

Mr. Dow

And I would agree22 with that.23

Councilwoman Sanchez

So I24 need that coordination to happen in terms25 186 4/5/11 - WHOLE - BILL 1101371 of particularly the quarters where we've2 already made an investment.3

Councilwoman Sanchez

We got5 Centro de Oro, you have 5th and Lehigh6 going to Berks. You have 5th Street7 north, what we're calling 5th Street8 north, and we're working. Because9 cleanliness becomes key and being able to10 open up a Centro de Oro and maintain the11 cleanliness becomes important. So I need12 that discussion to happen.13

Mr. Dow

And I guarantee it14 will. The bellies are one thing. I15 would say in reference to what's in the16 budget --17

Councilwoman Sanchez

And then18 the long-term planning, attempts at a19 strategy. I think we just need -- that20 type of discussion needs to happen at a21 higher level so that the Streets22 Department is thinking about that as they23 make their investments.24

Mr. Dow

I agree.25 187 4/5/11 - WHOLE - BILL 1101371

Councilwoman Sanchez

I think2 that's important.3 I want to acknowledge obviously4 Shinjoo's unit in terms of the diversity5 thing and language access. And I don't6 know if my colleagues know the work that7 the Commerce Department did in the Far8 Northeast as it relates to reaching out9 to the Russian-speaking businesses there.10 I want to acknowledge that hard work. I11 know it's something we've talked about12 year after year, and it was very13 successful.14 What other initiatives are we15 going to be doing? I'm particularly --16 and I know we tried this year, but is it17 in the plans for next year for the18 Portuguese-Brazilian community along19 Castor Avenue? Because I think the20 Russian -- that pilot demonstrated that21 there is an interest for those businesses22 to get engaged.23

Mr. Greenberger

The pilot is24 really going well, and it's the Russian25 188 4/5/11 - WHOLE - BILL 1101371 language. There's a French-speaking2 woman. These are on the back of two3 Vista volunteers that Shinjoo Cho has4 trained and sent out, who is working5 largely in Haitian communities where the6 French language works.7 We really like this program,8 and we're talking to Vista about9 expanding it, more languages to impact10 more parts of the City. It's a really11 good program.12

Councilwoman Sanchez

So the13 outreach for the Portuguese community14 will be next hopefully?15

Mr. Greenberger

Give us a16 list -- actually, the Portuguese-speaking17 community is one of the sort of18 noteworthy ones out there, but give us a19 list, if you wouldn't mind, of what at20 least within your own district -- and I21 encourage all Councilmembers to do this,22 tell us where you think those language23 issues are. That would be -- I think we24 know, but it would be helpful to hear it.25 189 4/5/11 - WHOLE - BILL 1101371

Mr. Dow

And we're confident2 that -- that's a Vista program that3 you're talking about, Shinjoo Cho's4 program. She works very closely with the5 Office of Business Services. So that's6 critical, and that's how we've been7 successful there. We are very8 comfortable and confident that we'll be9 able to expand that this year. And then10 the question to Alan's point is what are11 our greatest needs from the ethnic12 perspective and language perspective do13 we need to tackle, and then we will.14

Councilwoman Sanchez

Because15 I think that's one of those corridors16 that is very spread out, so it's going to17 be very hard to manage, but there are18 some densities as it relates to, like19 right below Cottman, that we may want to20 do some work.21

Mr. Greenberger

And the22 transitions as managed by zoning will not23 suddenly make somebody's business that's24 not in the sort of dense core illegal.25 190 4/5/11 - WHOLE - BILL 1101371 It will make them non-conforming, but2 they'll be legal, and the whole point is3 that over the years as those businesses4 transition out, then that's where you get5 the opportunity to kind of put the6 density back where you want to. So7 that's a multi-year task, and it8 obviously requires patience.9

Councilwoman Sanchez

No, but10 I think reaching out to these businesses,11 I was very -- when I first ran for12 office, folks were not engaged and really13 feeling like we were the bad guys, and I14 know that we've made some inroads, but15 it's very important, because they're an16 important part of the economy. They're17 setting up where nobody wants to set up18 and they're hiring where we need jobs,19 and to the extent that they feel like20 we're in this together, it's very21 important, and those first steps, just22 having the accessibility, I think is23 important.24 I wanted to go back, and this25 191 4/5/11 - WHOLE - BILL 1101371 is my last piece, around the2 manufacturing piece, particularly the3 PIDC report. How much money do we invest4 every time we create a job? Like do we5 have a formula that says this amount of6 money creates this job? Investment. I7 mean, we always hear about --8

Mr. Greenberger

No.9

Councilwoman Sanchez

-- the10 Naval Yard pieces, but I really want to11 get to a point where we can say we're12 going to invest so much money in this13 area that generates the most jobs and14 there's a formula base for it, and15 particularly as it relates to16 manufacturing, because I also want to get17 to a point where we're saying how much --18 if we looked at Commerce's budget, how19 much of that is going towards maintaining20 the manufacturing sector?21

Mr. Greenberger

I don't -- I22 mean, it's not a line item that says, so23 I don't know how to answer the question.24 There certainly is work being done25 192 4/5/11 - WHOLE - BILL 1101371 related to the manufacturing sector,2 because we engage with businesses3 regularly, both attracting and retaining.4 Teva is one we use a lot, but Penn Jersey5 Paper was a business retention program of6 a company that was actively looking to7 not be in the City and is actually8 staying there. But I just can't -- I9 have no way of quantifying it, at least10 off the top of my head.11

Councilwoman Sanchez

I think12 it's important. One of the things that13 I'm finding as I visit the smaller ones,14 maybe 25 jobs, 50 jobs, really feeling15 like some of the things that they're16 asking us for help is very minimal, but17 we have no way of tracking and quickly18 getting them the assistance. It may be19 something as simple as they're expanding20 and they're dealing with air quality21 issues, and I just -- I just feel like we22 need to -- there's some supports that23 need to be given to that sector so we24 don't lose them. And I visited a lot in25 193 4/5/11 - WHOLE - BILL 1101371 my district, and I have a lot of them2 that are looking to relocate. And I work3 with Commerce, but I just -- we really4 need to look at that sector in light of5 PIDC's report and the fact that those6 jobs are about 50,000. For districts7 like mine, that represents 13,000 jobs.8 I think we really need to use the report9 to say, Okay, what are we going to do to10 retain where we can and grow where we11 can, obviously looking at green and12 creative economy.13

Mr. Greenberger

For the -- I14 would ask you something, and, that is,15 for the smaller businesses, this is where16 the Office of Business Services is17 usually important, because if there are18 smaller businesses that you're aware of19 that are having these little problems,20 air management problem or regulatory21 problem, this is what Office of Business22 Services does, sort of like as a23 concierge service, and I would really24 encourage you to refer those businesses.25 194 4/5/11 - WHOLE - BILL 1101371 You probably do, but we don't know about2 them all.3

Councilwoman Sanchez

Right.4 Right. And that's where I'm trying to5 get to, that if it wasn't for the6 Manufacturing Alliance that's captured7 some of them, but we need to kind of have8 some sort of articulated now strategy9 around manufacturing for the City,10 particularly those in neighborhoods.11 Those jobs are incredibly important in12 neighborhoods.13

Mr. Greenberger

And they tend14 to exist obviously more in the15 neighborhoods than in the center.16

Councilwoman Sanchez

Right.17

Mr. Greenberger

For all the18 obvious reasons of land values and19 proximity to highways and so on.20

Councilwoman Sanchez

Okay.21 So I just wanted to begin to look at that22 and not let the PIDC report become23 another report that sits on the shelf --24

Mr. Greenberger

No. I25 195 4/5/11 - WHOLE - BILL 1101371 think --2

Councilwoman Sanchez

-- but3 has an impetus to have a discussion about4 it.5

Mr. Greenberger

Obviously6 resources are what they are, but the good7 news is that both we and PIDC take the8 report seriously. It's not -- it's by no9 means a perfect predictor of where10 everything ought to be and we're always11 surprised every now and then by somebody12 who wants to be in a place where we13 didn't think anybody wanted to be, but I14 think it is a pretty good guidepost that15 we do take seriously. It is being16 actively used, for example, by the Zoning17 Code Commission to totally restructure18 industrial zoning throughout the City,19 and then that will have its -- that will20 show up then in mapping, which we'll wind21 up talking to you and other District22 Councilmembers about extensively over the23 next several years.24

Councilwoman Sanchez

Okay.25 196 4/5/11 - WHOLE - BILL 1101371 I'd like to be able to say that next year2 we have some sort of draft of what that3 commitment to that sector is.4

Mr. Greenberger

Okay.5

Councilwoman Sanchez

Because6 I think it's important for districts like7 mine.8

Mr. Greenberger

Fair request.9

Councilwoman Sanchez

Thank10 you.11 Thank you, Madam Chair.12 COUNCIL PRESIDENT VERNA:13 You're welcome.14 I would just like to remind my15 colleagues that the members of the Board16 of Ethics have been patiently waiting to17 testify for quite some time. If we can18 just be a little briefer in our questions19 and answers --20

Mr. Greenberger

Yes, ma'am.21

Council President Verna

-- I22 think it would be very helpful.23 The Chair recognizes Councilman24 Rizzo.25 197 4/5/11 - WHOLE - BILL 1101371

Councilman Rizzo

Thank you,2 Madam Chair.3 When you brought up the Navy4 Yard, it made me think of a couple5 questions. How many businesses now6 occupy the site?7

Mr. Greenberger

I've heard8 John Grady tell me this three times and9 now I'm drawing a blank on it. Sorry. I10 just don't remember enough to be able to11 say.12

Councilman Rizzo

A ball park.13