COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE COMMITTEE ON PUBLIC PROPERTY & PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tues., 11/9/99, 1:30 p.m. - - - BILL 970746 - Held at request of sponsor. BILL 990645 - Authorizing Commissioner of Public Property to execute and deliver to PAID a deed conveying fee simple title to City-own landed at 436-450 and 452 Moyer Street, BILL 990669 - Authorizing Commissioner of Public Property to execute and deliver to PAID a deed conveying fee simple title to 4228-4232 Kensington Ave. and 4234-4240 Frankford Ave. BILL 990671 - Held at request of sponsor. BILL 990718 - Authorizing Commissioner of Public Property to purchase for fee simple title a parcel of real estate located at 3033 South 63rd Street. BILL 990724 - Authorizing Commissioner of Public Property to enter into sublease agreement with PAID for use by the City premises located at 15 South Seventh Street for Free Library branch. Bill 990728 - Authorizing Commissioner of Public 16 Property to convey to the RDA certain premises located at 1822 through 1835 Callowhill Street, 17 (Full text of all ordinances contained herein.) 18 PRESENT: COUNCILWOMAN AUGUSTA A. CLARK, Chair COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 11/9/99 PUBLIC PROPERTY & PUBLIC WORKS I N D E X Bill 990669 Paul Deegan, PIDC, PAID. . . . . . . . . . . . 4 Thomas Chapman, City Planning Commission . . . 6 Kate Clarke, Executive Director. . . . . . . . 12 Frankford United Neighbors CDC Bill 990669 Paul Deegan, PIDC, PAID. . . . . . . . . . . . Thomas Chapman, City Planning Commission . . . 10 11 Bill 990671 12 Commissioner Andres Perez, Public Property . . 23 13 Bill 990718 14 Commissioner Andres Perez, Public Property . . 47 15 Ann Brown, Ward Leader, South Philadelphia . . 53 Clarena Tolson, Deputy Commissioner. . . . . . 54 16 Streets Department, Sanitation Riley Harrison, Fleet Manager. . . . . . . . . 56 17 18 Bill 990724 19 Commissioner Andres Perez, Public Property . . 62 Bill Fleming . . . . . . . . . . . . . . . . . 68 20 Administrative Services Director, Free Library 21 Bill 990728 22 Commissioner Andres Perez, Public Property . . 70 Tony Valdes, Children's Crisis Center. . . . . 73 Thomas Chapman, City Planning Commission . . . 83 3 11/9/99 PUB. PROP. - Bill 990669 P R O C E E D I N G S
Good afternoon. The Committee on Public Property and Public Works is now convened. I would ask the clerk to please read the first bill on the list. Will the clerk please note that Bill 9 No. 970746 and 990645 are being held at the request of the sponsor. 970746 and 990645 are being held at the request of the sponsors. And would the clerk read starting with 990669.
Bill No. 990669, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development (hereafter referred to as"PAID"), without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon situate at 4228 through 4232 Kensington Avenue and 4234 through 4240 Frankford Avenue, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement 4 11/9/99 PUB. PROP. - Bill 990669 between the City, the PAID, and the Philadelphia Industrial Development Corporation.
Thank you. Are there persons here who wish to testify? (Paul Deegan comes forward.)
Good afternoon. Would you kindly identify yourself for the record, spell your name for the benefit of stenographer, and proceed with testimony.
I'm Paul Deegan, D-E-E-G-A-N, and I represent PIDC and PAID. This bill authorizes the City to convey a property at 4228 to 32 Kensington Avenue and 4234 to 40 Frankford Avenue to the Philadelphia Authority for Industrial Development. After conveyance to PAID, this property will be sold for fair market value to Domenico Sellecchia, the owner of Harbison Auto Sales, which is an existing company that's now located at 3949 Kensington Avenue. Mr. Sellecchia intends to use this lot for auto sales. The net proceeds from the sale 5 11/9/99 PUB. PROP. - Bill 990669 will be deposited in the City's General Fund. This property was acquired by the City in 1963 for parking purposes. Apparently, it hasn't been fully developed and it's sat vacant and has been an eyesore and a dump site for many years. And by selling the property to a private developer, the City will relieve itself of the maintenance and the liability problem and return the property to the tax rolls. Mr. Sellecchia also expects to create six to ten new jobs by developing the property. I ask that the committee consider this bill favorably and that the rules of Council be suspended to permit first reading at the next regularly scheduled meeting of the Council.
Mr. Deegan, what will be Mr. Sellecchia's total number of jobs if this expansion is granted?
I don't have that information. I could find that out, but I think 6 11/9/99 PUB. PROP. - Bill 990669 he has an existing business down the street.
Okay. Yes, he did put that in there. Mr. Sellecchia states that he currently employs four people.
Are there any other questions for Mr. Deegan by any other member of this Council committee? (No further questions.)
Good afternoon, Madam Chair and members of the City. For the City 7 11/9/99 PUB. PROP. - Bill 990669 Planning Commission, my name is Thomas Chapman, and that's C-H-A-P-M-A-N. Before I begin my brief testimony on this bill, I would like to take a moment to thank the Chair for all the courtesy that you have shown me over the years in your term as chairperson of this committee. I know we're at the -- you know, it's late in the term and I'm not sure whether there will be another meeting of this committee or whether I'll be able to attend it, so I just wanted to make that statement and --
And I'd also like to commend you for the job that you've done as Chair of this committee and I would state to you that your successor will definitely have a hard act to follow.
He has all the time he wants to speak. More, more, more -- no. 22 (Laughter.)
The City Planning Commission, at its meeting of November 4, 1999, considered Bill No. 990669 and tabled consideration of this bill pending further information and discussion. There were some questions that we were just not able to answer at the time.
Would you put those questions on the record for us, please.
Madam Chair, it had to do with -- the questions were regarding -- we had been contacted by a local community group that expressed some concern over the proposed use of the property.
It was not sufficient that you would reject it; just that you chose not to take any action on it at all.
That's correct. The Commission didn't reject the bill. It was just 9 11/9/99 PUB. PROP. - Bill 990669 that there were questions raised that we were not able to answer at that time, and it was just the Planning Commission meeting --
Well, did you and Mr. Deegan talk about it? Mr. Deegan, are you going to come here and tell me that you are for it and he has no opinion?
Madam Chair, maybe I could enlighten everyone on this.
No, Madam Chair, we did talk just before the hearing, and that was the first that I was aware that there was any community opposition or that the Commission had tabled the bill. 10 11/9/99 PUB. PROP. - Bill 990669
Well, let me try to enlighten this committee. About four years ago, when I first became a councilman, this fellow Sellecchia approached me through another individual about acquiring this lot. It took three years to find out who owned it. It was never in Public Property's domain. It was at the Parking Authority's one time 'cause it was actually a City lot where cars parked that never fared out. So it was back and forth and it took three years to find out who owned it. But at the time, before I committed to this fellow that this would be a good use, I contacted the community groups up there. At that time, no one was interested. Now one of the community groups protested here from Frankford United Neighbors. The person that runs that group wasn't running the group at that time. So that's where a little bit of confusion is. Over the years, nobody was interested in this except for this Mr. Sellecchia. So now that it looks like it's 11 11/9/99 PUB. PROP. - Bill 990669 becoming something fruitful, someone else is interested.
For a business purposes, or is it that they just want the plot, the expansion of a used-car lot?
I think you would have to ask that question to the protester, Madam Chairman.
Okay, thank you. Can I ask you men to stand back a minute and let me hear from the community rep? Are there persons present in the room who wish to be heard on this subject? If so, please join us at the table. Would the stenographer please note the attendants of this meeting. We have Mr. Frank Rizzo, Mr. Rick Mariano, Miss Jannie Blackwell, myself as Chair, Miss Donna Miller, Mr. Nutter, and on the phone is Mr. Kenney. Thank you. (Miss Clarke comes forward.)
Please identify yourself for the record, spell your last name for 12 11/9/99 PUB. PROP. - Bill 990669 benefit of the stenographer, and proceed with your testimony.
My name is Kate Clarke, C-L-A-R-K-E. I am the Executive Director of Frankford United Neighbors Community Development Corporation.
We were contacted in approximately June of this year in reference to this lot by the RDA. It was my first interaction regarding this lot. And they had asked us if we would like to take the lot over. At that point in time, we did not know where the lot stood, that it was in Public Property. They contacted us to look at the lot, to possibly do some development on it. We showed an interest in the lot. Since that time, I've talked with the Councilman in reference to it. He informed me that there were things that were proceeding and did not know exactly where they were going to go. 13 11/9/99 PUB. PROP. - Bill 990669 Since that time, it's -- we found out that it was Mr. Sellecchia who was the person who was willing to take this lot over. Our concern is the fact that there are approximately four to five other used-car lots in the area. Our purpose in wanting the lot would be to bring it back for public parking, to develop it back for public parking. In the years that this lot has been lying empty, it has been overrun with weeds, it has not been taken care of, and it has become a dumping ground, just as Mr. Deegan has stated. And so we just wanted it for development for public parking. Now that we're made aware of Mr. Sellecchia's plans and that he is willing to employ -- hopefully, he will employ persons from the Frankford community -- we would like to meet with him in reference to that.
But Miss Clarke, will you withdraw your objection today?
All right, thank you. Are there other persons present in the 14 11/9/99 PUB. PROP. - Bill 990645 room who wish to be heard in favor of or against this bill? (No response.)
Are there persons here who wish to speak to Miss Clark or Mr. Deegan or Mr. Chapman with respect to this bill? (No response.)
Thank you. Okay, all right. Will the clerk please read Bill No. 990645, which has now been released by the sponsor, and he now wishes to have it considered.
Bill No. 990645, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development (hereafter referred to as "PAID"), without consideration, a deed conveying fee simple title to a certain tract of City-own landed, with the buildings and improvements thereon situate, at 436 through 450 and 452 Moyer Street, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, the PAID, and the 15 11/9/99 PUB. PROP. - Bill 990645 Philadelphia Industrial Development Corporation.
Good afternoon, Madam Chair and members of the committee. My name is Paul Deegan, D-E-E-G-A-N, and I represent PIDC and PAID. I'm here to testify in support of Bill No. 7 990645. This bill authorizes the City to convey A property at 436 TO 50 and 452 Moyer Street to PAID. After conveyance to PAID, the property will be sold for fair market value to Dolan Family Realtors, located at 437 East Girard Avenue. Mr. Dolan intends to develop these lots for new rental-storage facilities. The net proceeds from the sale will be deposited in the City's General Fund. These properties were also acquired by the City in the 1970s for parking purposes but they have since become a neighborhood nuisance. The lots are not being maintained and are used for short dumping. By selling the lots to a private developer, the City will get rid of a maintenance and liability problem and return the properties to the tax rolls. I ask that the committee consider the 16 11/9/99 PUB. PROP. - Bill 990645 bill favorably and that the rules of Council be suspended to permit first reading at the next regularly scheduled meeting of Council. Thank you for the opportunity to testify. And I'll be happy to answer any questions.
Thank you. Are there any questions on the part of the members of the committee? (No questions.)
We're having the appraisals done right now. Normally, the appraisals take 30 to 45 days. So between the introduction of the ordinance and the hearings that were scheduled, we haven't got the final figures in. They are industrial properties but they are in the middle of a residential neighborhood. I think you would call this neighborhood 17 11/9/99 PUB. PROP. - Bill 990645 "Fishtown," and there is a market for this type of storage facility since many of those people on those areas don't have garages. And they seem to do quite well. There have been several others built in the area. But considering that it's not on a major street and it's not a commercially- developable lot, you know, I think it will come in at a reasonable value.
And anything's an improvement over a debris-strewn lot.
That's correct. There are a number of these around the City. I think during '60s '70s, there was a big push to create public parking lots throughout the City. And some of 'em have been well-maintained and well-used, and some of 'em, such as on Moyer Street and Kensington Avenue, have really fallen by the wayside. But there are some that are very good, and I think Seventh and Passyunk has a very good, well used parking lot on a commercial strip, so. . .
They do best when they're closer to a little commercial strip, though, don't they? 18 11/9/99 PUB. PROP. - Bill 990645
I think they do, or when they have residents who use the lot and maintain it. I think there's a very nice lot up at Juniata Street, in Councilwoman Krajewski's district, to the rear of a row of homes, which is always well- maintained and cleaned by neighbors and used for various activities as well as parking. So we've looked at one time or another most of these lots around the City to see which ones would be marketable.
Thank you, Madam Chair. I've noticed that -- you just said something that I wasn't aware of. You're telling me that the community groups, the neighbors are responsible for the maintenance and cleanliness of these facilities?
No. They voluntarily will take care of them in a strong neighborhood with a real interest in the lot. But otherwise, the City of Philadelphia has leased all of the lots to the Philadelphia Parking Authority, and the Parking 19 11/9/99 PUB. PROP. - Bill 990645 Authority does make an effort to get out and clean these lots.
The Chair just mentioned that that's a trade for parking for free, but I would like to know, is there a budget that the Parking Authority has? Because I pass one of these lots that's became a lot where there's two abandoned cars on it, that the lighting doesn't work properly. Is there a mechanism to make sure that they are cleaned if there aren't volunteers to do that? You just mentioned that the Parking Authority does that, but I don't think that's a priority of theirs.
No. They don't do it very well and they don't do it regularly.
But before I would go for additional parking, I would want to make sure -- at least me speaking -- that we are maintaining them and keeping the light lighted and so forth.
Well, Councilman, I think the reason that many of these lots are being sold off is because they aren't being used and they 20 11/9/99 PUB. PROP. - Bill 990645 aren't being maintained.
And that's -- we're not creating more parking; we're just trying to under- utilized parking that's in the City's inventory.
Yep. What is happening is that commerce didn't follow these lots, and so they're sticking out there and are not associated with any commercial strip. And they either are used for short dumping, or the neighbors appropriate them to themselves.
And because you don't want to walk past eight-foot high weeds to get your car or you don't want a weed lot in your neighborhood, you will keep them clean.
And I can vouch that the Parking Authority does make an effort to clean these lots because, several years ago, I had sold 21 11/9/99 PUB. PROP. - Bill 990645 one and forgotten to tell them, and they were still cleaning it, even though it was privately owned. So it's up to me to make sure that they know that they're sold because they do look at them and they do make an effort to keep them clean.
They look at some of 'em, Mr. Deegan, and some of 'em, you could sell 'em off and sink 'em to China, and they wouldn't miss 'em.
Okay, all right. Are there any other questions for Mr. Deegan? (No further questions.)
You can speak as 22 11/9/99 PUB. PROP. - Bill 990645 long as you want to too.
But I'm sure there will be another hearing and I'll have a chance to also tell you what a good experience it has been over the last years to have you as the Chairperson 7 here. 8
Madam Chair and members 11 of the Committee, the Planning Commission, at its 12 meeting of October 21, 1999, reviewed Bill No. 13 990645 and recommended that it be approved.
Are there any questions for in Chapman? (No questions.)
Are there persons in the room who wish to be heard to speak in favor 23 11/9/99 PUB. PROP. - Bill 990671 or against Bill No. 99045? (No response.)
Bill No. 990671, an ordinance authorizing the Commissioner of Public Property, on behalf of the City, to enter into a lease amendment with the Philadelphia Design and Distribution Center, LP, for use by the affiliated agencies a certain space within the building known as Wissahickon Industrial Center, located 4700 Wissahickon Avenue, Philadelphia, Pennsylvania, under certain terms and conditions. (Commissioner Andres Perez comes forward.)
Commissioner Perez, good afternoon. COMMISSIONER PEREZ: Good afternoon Chairwoman Clark and members of the committee. My name is Andres Perez, A-N-D-R-E-S, P-E-R-E-Z. And I'm the Commissioner of the Department of Public Property.
Thank you. COMMISSIONER PEREZ: I'm here today 24 11/9/99 PUB. PROP. - Bill 990671 representing the Department of Public Property, testifying in support of this bill. This bill will permit the City to extend the lease term for certain property located at 4700 Wissahickon Avenue, which expires on December 31, 1999. This warehouse base is used to store the City's voting machines, and the lease premises consists of 184,000 square feet of storage area and a small office area. The lease extension contains a safeguard provision that releases the City from its obligations should the landlord be unable to meet the environmental requirements for the new electronic machines. It also gives us the right to reduce the amount of space if the new machines don't require the space that we presently lease. The Department of Public Property supports this measure and, accordingly, respectfully ask that the Council approve Bill No. 21 990617. And we also ask that the rules are suspended so that the ordinance may be passed upon a second reading of Council. Thank you.
Thank you, Mr. Perez. 25 11/9/99 PUB. PROP. - Bill 990671 COMMISSIONER PEREZ: Thank you.
Now, Mr. Perez, you had two questions in your testimony, and it seems to imply that you don't know what the environmental requirements for the new machines might be, and you don't know how much space they would take up. Does that mean that we haven't settled on how many machines we are buying and that we don't know their specs? COMMISSIONER PEREZ: I did not participate in the process, and we intentionally held back the exercise of this option that we're asking for now.
So this is a "just in case?" COMMISSIONER PEREZ: Yeah, until it was clear that the space would not represent a dramatic change. And before our former Budget Director Dean Kaplan left, he authorized me to go ahead with this because the new machines, apparently, will require approximately the same amount of space. But it remains to be seen whether any 11/9/99 PUB. PROP. - Bill 990671 improvements may need to be done to the space to control the environment around the machines.
Okay. COMMISSIONER PEREZ: And the owners agreed that if that's an unacceptable burden or if the cost of it is unacceptable to the City, that we can go somewhere else and find more appropriate space and will be released from this lease.
So you can terminate your lease. COMMISSIONER PEREZ: Yes.
On either of those two conditions. COMMISSIONER PEREZ: Yes.
Thank you, Madam Chair. On that same point, what is the release mechanism in the lease, Commissioner? How much notice do you have to provide? COMMISSIONER PEREZ: I'm sorry to say that I'm not familiar with that notice. Typically, we ask for 90 days for something of this size. And with the difficulty in finding 27 11/9/99 PUB. PROP. - Bill 990671 replacement space, I wouldn't be surprised if we asked for six months, but I'll have to confirm that in writing.
What is the lease term? COMMISSIONER PEREZ: It is a continuation for four additional years.
Four more years. COMMISSIONER PEREZ: Four more years. Of course, it's closed-ended, and that's why we're bringing it to Council rather than year to year. And the base rent is $3.20 a square foot flat for the four years; there's no rent increases in here. We gave them a small increase with the renewal, but it stays flat for those four years.
So you went from what to 3.20? COMMISSIONER PEREZ: We went from 2.80 to 3.20 -- $2.80 a square foot to $3.20 a square foot. Our rent obligation on an annualized basis for this space will be $589,209.60, plus operating expenses.
Plus the operating. 28 11/9/99 PUB. PROP. - Bill 990671
Well, when you say "plus operating expenses," is that the expenses of operating the warehouse? COMMISSIONER PEREZ: For our budget -- not for the Election Commissioner's budget, 'cause they have staff people in there.
Right. COMMISSIONER PEREZ: I'm just talking about the utility expenses.
Okay. COMMISSIONER PEREZ: Which I think may be another $2 a square foot.
So it's really $5.00 a square foot. COMMISSIONER PEREZ: No, it varies. I mean, it's seasonal and there's no way to predict energy the energy consumption in the building. This is a huge unweatherized old tank- manufacturing facility from pre-World War II days. And the machines sit out in a very large open area with just enough heat, you know, to keep them from being damaged. And electricity is used not to 29 11/9/99 PUB. PROP. - Bill 990671 air-condition, but to -- besides lighting the premises, the electricity is used to power air. Not air-conditioning but just to keep air flowing on the days when the humidity is unacceptably high.
What were the utility costs in the last fiscal year at this location, and what improvements have we required in order to better keep these machines? COMMISSIONER PEREZ: I don't have the information on hand but I'll be happy to provide that to you. The accounts are on our energy, you know, management system, and it won't take me long to get that information to you.
Could some of the malfunctioning be -- COMMISSIONER PEREZ: Pardon?
Could some of the malfunctioning that we experienced in the last election be the result of the conditions under which the machines were kept? COMMISSIONER PEREZ: I'd have to say that that's hypothetically possible. I'm not aware that that problem has been brought to our 30 11/9/99 PUB. PROP. - Bill 990671 attention. In Public Property, as you probably know, the day-to-day utilization of the space and the machines is entirely up to the City Commissioners, the Election Commissioners. We have been asked from time to time to make small improvements, but they've been to the office area.
Well, the problem is that the people who were complaining after election don't know to complain before election because you don't know which machine is going to break down. But this last election could have been very ugly because of where the machines malfunctioned so. . . But that's all going to be behind us because we're going to have new machines now, right? COMMISSIONER PEREZ: We'll have new machines and --
When are we getting them? COMMISSIONER PEREZ: I have no idea. I'm sorry to say I'm not a part of that team, so I don't have that information available. 31 11/9/99 PUB. PROP. - Bill 990671
I'm sorry, Councilwoman. Your question was what are going to get --
It's my understanding that the new machines are anticipated to be used and fully operational for the primary election of 2001.
And that Procurement is moving along on that kind of timetable to have them in place. But, Mr. Perez, based on your response to the Chair on one of your questions, I mean, this purchase is anticipated to cost $21 million of brand-new equipment, that with all due respect, if the owner of the facility is in chambers -- I mean, your description would lead one to believe that the space is somewhat substandard for the current machines, some of which I believe are upwards of 50 years old. Why would be put $21 million of newly 32 11/9/99 PUB. PROP. - Bill 990671 purchased electronic equipment in what you described as a pre-World War II cavernous warehouse that we barely keep the electric at the level of preventing freeze-ups on the machines? Why would we do that? COMMISSIONER PEREZ: I don't know the answer, Councilman. We did -- the Department nominally followed the progress of that procurement, you know, through the various City agencies that were involved. Our primary reason was, do we need to keep this space another four years to receive the new equipment, do we need to shrink it, do we need to go somewhere else? And the instructions that I was given, after some delay, as we came up very close to our notice requirement, was to preserve the space and that the size and type of machine would require approximately the same space.
Have you seen the new machines? COMMISSIONER PEREZ: No, I haven't.
Okay. I'm surprised that someone would say that those 33 11/9/99 PUB. PROP. - Bill 990671 machines require -- especially in their folded-up condition. These machines do actually collapse to a smaller size. So I don't really understand why someone thinks that the new machines are going to take up the same amount of space as the old machines, which I think literally weigh about 900 pounds, are about 6 and a half feet high, 3 to 3 and half feet wide. And the new machines are virtually transportable by one individual. So I don't understand why we need the same amount of space. They're certainly not going to be sitting side by side like the current machines do, in an open fashion, for six months between every election. That would make no sense -- in addition to the fact that doesn't this warehouse from time to time leak? COMMISSIONER PEREZ: Yes, there have been leaks. And, I mean, the owners have responded promptly to the leaks, but yes, there have been leaks. There's a logistical situation that was, I understand, a part of the decision to at least roll over for one more four-year period. And that is, new machines are going to be 34 11/9/99 PUB. PROP. - Bill 990671 received, and there will be an overlapping period of time when both have to be available as one gets phased in and the others get phased out.
Right. COMMISSIONER PEREZ: So we actually expect that, temporarily, you might actually need more than the long-term space that we're locking ourselves into until that overlapping period catches up with itself. And at that point, again, I was pretty sure that we would need approximately the same space. We put the clause in here on the space requirement just in the event that final selection and final utilization of the machine storage requirements, maintenance requirements, when all of that is known sufficiently, we'll either shrink the space or exercise our option to go somewhere else in a more appropriate space.
Well, let me say this to you. Having worked on this issue personally, and it was the Council's action and support that resulted in the ballot question that the voters approved overwhelming for these machines, and with the $21 million investment, and 35 11/9/99 PUB. PROP. - Bill 990671 we don't anticipate that we will receive them until sometime into the year 2000. What I would ask is that Public Property begin the process of looking for a much more up-to-date, secure, sealed location where we can store $21 million worth of brand-new equipment, as opposed to the location that we're in now -- unless massive and significant improvements are made to 4700 Wissahickon Avenue prior to the receipt of any of these machines next year. I mean, as it stands here today, I am not particularly thrilled about the prospect of putting that new equipment in this very old site. You have until the end of the year to provide renewal. COMMISSIONER PEREZ: Yes.
Is that my understanding from your testimony? COMMISSIONER PEREZ: Yes, that's correct.
How long do you think it will take -- forget that question. I would like to see something from 36 11/9/99 PUB. PROP. - Bill 990671 Public Property that indicates that we're looking at other space. And I am not satisfied with the response -- not just from you, but with the process that's being utilized to look after this important equipment. COMMISSIONER PEREZ: And if I may ask, Councilman, in what context do you mean that? That we should withhold our option until we attempt to identify alternative locations?
No. I clearly understand that the lease is going to expire at the end of the year. COMMISSIONER PEREZ: Right.
We have, I believe, 1671-some-odd machines -- I'm sorry 3,000-some-odd machines sitting up there presently. So we're not going to find an immediate location for the old worn-out tattered machines that we have right now, I understand that. So we do need to renew at that location for that equipment. What I'm asking Public Property to do is to come up with an analysis of potential space, new space, for new equipment in order to ensure that it will be safe, cared for, protected, not 37 11/9/99 PUB. PROP. - Bill 990671 have water leaking on it or widely fluctuating temperatures that very well could affect electronic equipment. That I would like as soon as possible. What I said is, for the moment, I am not thrilled with this. You're not under tremendous time strain, you have until the end of the year to renew your lease, and we have a couple months before we go out on legislative recess. So more than likely, I'll be recommending that we hold the bill today 'cause I would like to see a better response from the Department, or any other agency involved in this, to handle this particular matter.
This is not the good place for Public Property and the Commissioners to talk, and we should be renewing for a much smaller period, and that amount of space should be on a steep decline as we go to new space that is more appropriate for the more sensitive equipment.
Thank you, Madam Chair. 38 11/9/99 PUB. PROP. - Bill 990671 I would assume that the manufacturer of this equipment has a criteria, a storage criteria that you would hope that somebody would be looking at to basically what Councilman Nutter said. Also, what I'd like to hear from you is your plan on disposing of the old machines. Even though they're managed by the Election Commission, they're the property of your department, is that right? The old machines? COMMISSIONER PEREZ: Disposition -- ownership may be titularly in the name of the Public Property Commissioner, but actual disposition, as with all of our surplus equipment and furniture, would be through the Procurement Department. Again, the Department of Public Property has not been a part of this planning and acquisition process for these machines. We've relied on information, you know, that was provided to us regarding the amount of space required. The decision to stay in this space for a short period of time, I think, is --
But isn't your question, Mr. Rizzo, whether or not it has any 39 11/9/99 PUB. PROP. - Bill 990671 salvage value?
I think I asked this question before when we discussed the machines, and I would hope that there's a plan, whether these machines have a value in parts or to support election processes in other parts of the country that don't have electronic equipment. Is there a plan in place yet on how we're disposing of these? Because it seems to me to tie up a warehouse with old equipment would -- COMMISSIONER PEREZ: Yeah, I'm not aware that there is a plan and will certainly bring the issue to the other administrators and ask them to provide you with the appropriate information.
But at $600 a year, we don't want to pay one day more than we have to. COMMISSIONER PEREZ: That's correct.
Thank you. Just one suggestion, and I haven't delved into this too much so it's just kind of a 40 11/9/99 PUB. PROP. - Bill 990671 cursory suggestion. In the interim, perhaps Public Property or Procurement, or whatever department is going to be dealing with the storage and security of the new machines, you could talk to some of the shipping companies on the waterfronts in Philadelphia, especially the Packer Avenue Marine Terminal and some others. There may be some way in the short term to acquire the trailers and containers that might be able to be stored in an existing facility that may not be up to the quality we would like, but the material would then be inside a container which would add for an additional level of security, safety, and keeping it from being exposed to the weather and the other elements. I know that a lot of our shipping companies handle highly sensitive and expensive freight that comes in from outside the country, and I know that those types of trailers are available. And that would probably also reduce the need to -- would also enhance our ability to deliver the machines where they need to be delivered in the short term. 41 11/9/99 PUB. PROP. - Bill 990671 So it's just a suggestion. I know that there have been many other types of commodities that are, when shipped across the world and across the ocean, are stored in these containers that would give it -- that they arrive safe and secure. And it may be something that we can look into leasing in addition to the new warehouse space. COMMISSIONER PEREZ: We'll certainly look into that.
One last question. What would be the cost to the City and to the landlord to bring the present facilities into -- at least a condition that's safe for the machines? Do you have any idea what those numbers would be? COMMISSIONER PEREZ: No, I don't have any idea. I'm not familiar with the -- both the combination of environmental requirements from the machine designers as well as the maintenance requirements of components within the machines that may be environmentally sensitive. I think, obviously, we all understand that electronics can't survive very well in a 42 11/9/99 PUB. PROP. - Bill 990671 space that can't be humidified, you know, within relatively narrow parameters. And I presume that that may be a problem. On the other hand, that's a real-world condition. This is not a new invention, and presumably, the designers and manufacturers have worked their way around that problem to an extent. We may still have to do something to keep things within an acceptable range that may not be difficult to do it. On the other hand, it may be expensive to do it, even though it may not be difficult to do.
Assuming that it's expensive, what's the relationship between the City and the landlord on the costs? COMMISSIONER PEREZ: Pardon me?
On the costs. COMMISSIONER PEREZ: We have to negotiate that because this is fairly short-term -- for years for an expensive fit-out. Landlords typically won't finance that and add it to the rent; they'll want it in a lump sum. And we would- in a hypothetical process, and we have done this in some other spaces, we would agree amongst ourselves on what 43 11/9/99 PUB. PROP. - Bill 990671 the requirements are, provide the landlord an opportunity to propose the remedy with contractors and subcontractors and specialty consultants, whatever the landlord needs to satisfy us that he can produce the result that we're looking for within an acceptable cost range. On the other hand, if we were out looking for this from scratch, that would be a lease term that would be a fit-out type lease term that we would be looking for. And I would dare say, of course, we'd be paying considerably more than $3.20. But, again, that's very hypothetical.
Commissioner, could I suggest also that you look at every existing facility that could accommodate the new technology? I would hope that we would not spend money unnecessarily. Have you or will you consider looking at a space that is already owned by the City of Philadelphia that could accommodate the storage of the new electronic machines? COMMISSIONER PEREZ: The constructed spaces that are surplus and large enough to handle 44 11/9/99 PUB. PROP. - Bill 990671 something like this would be on the order of Holmesburg Prison and Eastern State.
You just said you didn't say didn't know how much space that you needed for the electronic machines. COMMISSIONER PEREZ: Yes, but if it's approximately the same, a quarter million square feet, we don't own a quarter million square feet anymore. It's being demolished for a new owner.
And if we just built it, we can't afford it for warehouse space. It just costs too much if it's new, to be warehouse.
You're telling me that there is no space -- first of all, we're dealing with an unknown here on the new technology. COMMISSIONER PEREZ: Frankly, I won't say that there is no space, because the City owns over 10,000 individual real-estate parcels. The overwhelming majority of them are housing acquisitions, and maybe 11 to 1200 of those 10,000 are actual City facilities or former facilities. We probably have a couple of large 45 11/9/99 PUB. PROP. - Bill 990671 parcels that are maybe large enough to develop something like this on, but historically, in our financial analysis, we -- we haven't been able to go in that direction without involving third parties; that is, getting the developers interested in building something.
I'm not talking about -- and I'm going to cut it off. I'm not talking about building a new building; I'm talking about a location. And I'm not even sure that having a central location to house all of the machines is necessary. Maybe in the future, it would be more efficient to have half the City in one location and half in another at an existing basement of one of our public schools that would be a secure location for these machines. Again, I'm just trying to --
Well, a City facility. I think that, on a list of things to do, some research should be done to find out -- identify some areas after you determine what your need is, to see if there's something that we could 46 11/9/99 PUB. PROP. - Bill 990718 utilize without spending additional taxpayer money. COMMISSIONER PEREZ: Your point is well taken, and we'll take that into consideration. Thank you.
Thank you. Are there any other questions of this witness? (No further questions.)
Thank you, Commissioner, very much. Are there persons in the room who wish to be heard to speak in favor of or against this bill? If so, please assume the table. (No response.)
Thank you, Commissioner. Will the clerk please read the next bill before us.
Bill No. 990718, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to purchase for fee simple title to a parcel of real estate with any improvements 47 11/9/99 PUB. PROP. - Bill 990718 situate thereon, located at 3033 South 63rd Street, under certain terms and conditions.
Thank you. Commissioner, please proceed. COMMISSIONER PEREZ: Again, good afternoon, Chairwoman Clark. I'm Andres Perez, Commissioner of the Department of Public Property, and I'm here to testify in support of Bill No. 10 990718. This bill would authorize the City to purchase title to a certain property located at 3033 South 63rd Street. This site is currently occupied by the TransFreight Trucking Operations, and it contains approximately acres of land and 16 is improved with paved parking, a warehouse, 17 high-bay garages, and offices. It is located in 18 the 40th Ward of Eastwick Avenue and west of Passyunk Avenue, between 61st and 63rd Street. It's the City's intention to relocate to this site various operations of the Streets Department and the Office of Fleet Management, from City properties at Seventh and Pattison and Delaware Avenue and Spring Garden Avenue. The relocations are necessary to 48 11/9/99 PUB. PROP. - Bill 990718 advance two very important economic development projects providing job opportunities for our residents and tax receipts for the City's treasury. Unless the Streets Department and Office of Fleet Management can be moved from their present sites, both economic development projects will be seriously jeopardized. For some time now, the City has been investigating site alternatives for the Streets Department and the Office of Fleet Management operations in an effort to assist the Cisco Food Services of Philadelphia to expand. The Cisco facility is located immediately adjacent to the City's Seventh and Pattison operations, and Cisco's committed to growth and expansion in the City but will not hesitate to locate its operations beyond the City's boundaries if its expansion needs cannot be accommodated where it is now located. Cisco plans to add 210,000 square feet of space to their existing 195,000-square-feet facility. This expansion will take place over the next two years and will add approximately -- and I offer a correction to my testimony here. It's 200 49 11/9/99 PUB. PROP. - Bill 990718 jobs, not 140 jobs.
Okay. COMMISSIONER PEREZ: It's estimated that construction costs alone will be $12.5 million, not including machinery and equipment. Significantly, City Council has already approved an ordinance authorizing the conveyance of the adjacent Streets Department property to PAID so that it can be sold to Cisco. That was Bill No. 970270, approved in 1997. The relocation from Delaware Avenue and Spring Garden Street involves acquisition by the Penn's Landing Corporation and demolition of the City incinerator located on that site. Penn's Landing Corporation has received a grant from the federal government for the environmental remediation of the site, including its demolition. This grant was made possible by the Brown Fields legislation, introduced by Congressman Borski, for environment cleanup of areas adjacent to waterways. Development of this site is not very likely unless it's environmentally clean. 50 11/9/99 PUB. PROP. - Bill 990718 With the announcement of the Simon project, it is more pressing than ever to make the waterfront as attractive as possible to the many visitors the City would expect to visit the proposed entertainment complex for that area. It is the City's good fortune to have the TransFreight site made available for purchase at this time. It is large enough to locate operations from both existing City locations and is immediately ready for occupancy, with minimal expenditures for additional improvements. It is also ideally situated near the Schuykill Expressway and Interstate 95. It is expected that the Streets Department would house 176 vehicles at this site. Operations to be moved to the site would be Highway District No. 2, Sanitation Areas 2 and 3, Citywide Cleaning, the Sweep Enforcement Group, and the centralized warehousing office for fleet supplies, office supplies, and trash bags. The Office of Fleet Management Operations expected to be moved to the site will relate to only the repair and maintenance of Streets Department vehicles that are housed at the 51 11/9/99 PUB. PROP. - Bill 990718 site, and no painting will be done at this location. The site is zoned G2, general industrial, and lease restricted. Moreover, the area surrounding the site is predominantly, if not almost exclusively, industrial. Given the current use of the site by TransFreight, City operations will not change the impact on the surrounding area. The easy access to the Schuykill Expressway and I-95 would route traffic to and from the facility, away from residential areas. The site itself is located back from surrounding sites. It is not easily visible and is virtually isolated from residential areas. The nearest residential area is separated from the site by railroad tracks. The Department of Public Property supports the bill and the acquisition of this property. I respectfully ask that City Council approve Bill No. 990718, and I also ask that rules be suspended so that the ordinance may be passed upon the second reading at Council. Thank you.
Commissioner, 52 11/9/99 PUB. PROP. - Bill 990718 what's the acquisition cost of the proposed site? COMMISSIONER PEREZ: $7.5 million.
Were there any other locations considered? And if not, why not? COMMISSIONER PEREZ: There were two attempts at -- two different initiatives at identifying an appropriate site for this collection of agencies going back almost two years ago. So the answer is, yes, there were many sites looked at by Public Property. There were also sites looked at when the project was moved over to the Capital Program Office because of the obviously complicated logistical planning that would be involved as well as an evaluation of building conditions. So over the course of nearly three years now, this is the best site that's become available, and I would say it's the best site -- not only because of its location but because of its ready-to-use condition and fair price.
I have always wondered why we use waterfront property for a dump. It just does not seem like the best use of the land. And I'm very glad to see the City put 53 11/9/99 PUB. PROP. - Bill 990718 in a function that could go almost anywhere on less valuable and less attractive land. Are there other questions by members of the committee? (No questions.)
Are there persons in the room to be heard to speak in favor of or against this bill? Please come to the table proceed with your testimony. (Ann Brown comes forward.)
Please identify yourself for the record, spell you name for benefit of the stenographer, and proceed with your testimony.
My name is Ann Brown, B-R-O-W-N, and I'm the ward leader in this area. I have two questions. Will the trucks being parked here be empty at all times? There's some concern in the community that maybe sometimes 54 11/9/99 PUB. PROP. - Bill 990718 trash will not be emptied and they will bring the trucks back here full of trash.
Good afternoon. Will you please introduce yourself for the record and spell your last name.
Yes. Good afternoon. My name is Clarena, C-L-A-R-E-N-A, Tolson, T-O-L-S-O-N. I'm the Deputy Streets Commissioner responsible for sanitation. I would like to address Miss Brown's question. Our normal operations require us to dump our trash trucks after collection.
Each day, at the end of the day. And, in fact, the dump site is away from this location in South Philadelphia. There are some circumstance, however, when we would not dump it and that would be such as when the ejection is not allowed because of mechanical problems. 55 11/9/99 PUB. PROP. - Bill 990718
The ejection, where trash ejection is not possible because of a mechanical problem.
On the truck. Then the truck would go back to the fleet shop to be repaired and then it will be dumped. Other that, however, our normal practice is to have trucks dump before they come back.
So that if it were not dumped, it would not be creating a hazard for the residents; it would be creating a hazard for the people who are repairing the truck.
The other concern was, will there at any time be any painting done on this site, spray painting?
I'll ask for Fleet Management to come up because we work together a 56 11/9/99 PUB. PROP. - Bill 990718 great deal. Would you come forward. (Riley HarrisonComes forward.)
Madam Chair, good afternoon. Distinguished members of the committee, my name is Riley, R-I-L-E-Y, P. Harrison, H-A-R-R-I-S-O-N, and I am a fleet manager for the City of Philadelphia. In response to your question relative to painting at the facility, there are currently no plans to have any painting being done at this facility.
Mr. Riley, we always worry about answers that start with, "There are no plans for. . . " Her question is, will there be painting there? And your answer is. . . ?
Thank you. They were my two concerns. 57 11/9/99 PUB. PROP. - Bill 990718 Thank you very much.
No, wait a minute, Mr. Harrison. Mr. Rizzo has some questions.
I'd like to go back over to Commissioner Tolson in reference to the scenario that you just described. A truck breaks down, the compactor breaks down, it's towed back to the facility. It's towed back at 3 o'clock in the afternoon, full of trash.
Fleet Management doesn't repair that truck till the next day, so that truck will sit overnight, full of trash, at that repair facility until the repairs are completed. If it's an engine or it's a hydraulic failure, that truck is going to sit until Fleet Management repairs it with trash in it; is that correct?
Not necessarily. It could be that Fleet Management will have to eject it or dump it at the site and then we would put it into another truck to take away. Because sometimes Fleet Management can't get into the truck that 58 11/9/99 PUB. PROP. - Bill 990718 they need to because of the trash existing. In any event, what happens is, they have to dump it out and put it into another truck and then take it away. And also, if it's not necessary to dump it out, Fleet Management could do their repairs with the trash inside; however, they work off- hours as well so that the truck would not have to be down for long periods of time.
However, Miss Brown's concern is not how long it takes to fix it but whether it sits in her neighborhood contaminating the air of the residents in her ward. Your answer was, at no point will a truck filled with trash sit in the street; it will be in a warehouse, waiting to be fixed, or doing whatever you do. She doesn't really care what you do.
You're telling me that that truck full of trash is going to be brought inside of a building and contained inside a building until Fleet Management repairs it? Mr. Riley, is --
It's brought back into the facility, and Fleet Management repairs it inside their base.
If the repair requires something that's up front, say, motor-wise, they don't have to eject the trash in order to do that repair. If there's a problem, say, in the back of the truck and they have to remove the trash, then they put it into another truck and they take it away.
Okay. The point, and I don't mean to cause a problem here today. This sounds good on paper, and I'm coming from a realistic approach to what I know happens versus what's supposed to happen, and I'm just trying to 60 11/9/99 PUB. PROP. - Bill 990718 make it clear that if that truck comes back to Fleet Management and is full of trash, in my opinion, it's not going to immediately be put inside of a building where the community is protected. And that that truck -- again, from knowledge and experience, that truck could sit in the parking lot outside. Mr. Riley Harrison can answer that question. How immediate that that truck is going to be put inside to me is questionable.
I think we have two questions here, Councilman. It depends on the nature of the breakdown and the repair that needs to be made. If it's something similar to changing a flat tire, it can be done in most cases while the operator waits. Or if it's a light bulb or something that needs to be repaired, normally it's done, you know, on a priority. If in fact it's a major repair involving an engine or transmission or a rear end -- which from time to time happens -- then we have to make a decision with the Operating Department. You know, will the vehicle be towed to a transfer station and unloaded, will it be 61 11/9/99 PUB. PROP. - Bill 990718 ejected at the site and reloaded into another compactor? Will it be transferred to another repair facility, of which we have 17? So depending on the workload at the time, and in most cases, supporting this type of operation that's hours a day, you know, we'd 8 set the priority and work with the Department to 9 try and, you know, expedite the repair or transfer 10 it to one of our other facilities. 11
And her concern is 15 a legitimate one: that her residence not be 16 exposed to an additional health hazard because of 17 the condition of our trucks. 18
Miss Brown, are 20 you satisfied that you've gotten a reasonable 21 answer to your reasonable question? 22
All right. Are 24 there any other concerns by members of the committee? 62 11/9/99 PUB. PROP. - Bill 990718 (No response.)
Bill No. 990724, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City and affiliated agencies, including the Free Library of Philadelphia, for offices and/or library purposes, premises located at South Seventh Street, Philadelphia, 17 Pennsylvania, under certain terms and conditions. 18
Thank you. Good afternoon, Commissioner. Proceed with your testimony. COMMISSIONER PEREZ: Good afternoon, Chairwoman Clark. Again, my name is Andres Perez, Commissioner of the Department of Public Property, and I'm here to testify on behalf of Bill No. 25 990724. 63 11/9/99 PUB. PROP. - Bill 990724 This bill will permit the City to sublease property located at South Seventh 4 Street to support the Free Library's requirements 5 for a branch library facility within the 6 surrounding neighborhood. 7 The Department of Public Property 8 supports the measure. And, accordingly, I 9 respectfully ask that City Council approve the 10 bill and that the rules be suspended so the 11 ordinance may be passed upon second reading at 12 Council. 13
Thank you. 14 This is to be an additional branch 15 library and not replacing an existing one? 16 COMMISSIONER PEREZ: It is an 17 additional branch library, which I believe they 18 are referring to as the Independence Branch.
Independence. I was going to ask if there had been a name proposed for it. It's going to be very hard for me to be against a new library, Mr. Perez. You know I'm an librarian. COMMISSIONER PEREZ: The building may 64 11/9/99 PUB. PROP. - Bill 990724 be more familiar to you as the Balch Institute.
Oh, yes. COMMISSIONER PEREZ: We are renting space within the Balch Institute.
So you're going to have that shared space. COMMISSIONER PEREZ: Yes.
With the -- they are an ethnic studies community. COMMISSIONER PEREZ: For ethic studies and research, right.
All right. Located in the Balch. Are there any questions by members of this committee? Mr. Rizzo, any questions? (No questions.)
Are there any other persons present in the room who wish to be heard to speak in favor of or against the proposed new library? Note that I'm giving you daggers. There being none. . . 65 11/9/99 PUB. PROP. - Bill 990724 As happy as I am about the library, I ought to ask some questions. What's the length of the lease? COMMISSIONER PEREZ: It's a 29-year lease.
And the rate? And how many space will be subleased? COMMISSIONER PEREZ: We will be leasing, in round numbers, 7,700 -- a little more than 7,700 square feet of rentable area, which is a little less than 10 percent of the building's gross. The rent gradually increases from the first year at $14.25 a square foot through the 29th year at $17.50 a square foot.
And not warehouse space. COMMISSIONER PEREZ: No. It represents the price of the neighborhood.
Does it include fit-out? 66 11/9/99 PUB. PROP. - Bill 990724 COMMISSIONER PEREZ: We are fitting it out to the library's --
And that's in addition to the -- COMMISSIONER PEREZ: Yes, the Capital Program Office will be renovating the space for the library.
Okay. Were any other sites considered for this branch? COMMISSIONER PEREZ: I don't believe so. I think when this site was brought to our attention, the location, the synergy with the Balch Institute, a nonprofit organization, the condition of the space, it doesn't require extensive fit-out for the normal building conditions, it's got to be turned into library-type space. And it met the library's requirement for the general territory served.
One last one. How do the community residents feel about the proposed use? Did you do any community -- COMMISSIONER PEREZ: I believe the Library personnel did, but Mr. Shelkrot was here 67 11/9/99 PUB. PROP. - Bill 990724 earlier. I don't know if he's still here.
I'm not speaking for Councilmember DiCicco but I am aware of his efforts in that particular neighborhood of Washington Square West. One of the things that neighborhood does not have -- it has a lot of good things, but one thing it doesn't have is a Free Library, and that was one of his efforts in attempting to find adequate in that community which, would enhance the quality of life and hopefully keep some of our residents living there. So I think there was extensive communication and conversation with the community. And this is something that they were really pushing him to get done.
Thank you. 68 11/9/99 PUB. PROP. - Bill 990724 (Bill Fleming comes forward.)
Good afternoon. My name is Bill Fleming. I'm the Administrative Services Director for the Free Library.
Good. How does the community feel about the proposed new branch?
The community itself is very excited about the new branch. And I guess in connection with Councilman DiCicco's efforts to get this project off the ground, they were the prime force behind getting this branch in this neighborhood, and they are very excited. We expect them to assist the Free Library in its programming efforts and also efforts to build the collection through private fund-raising.
So if I take what Mr. Kenney says on Mr. DiCicco's behalf and yours, the idea for the branch might have come from the community rather than the other way around.
Absolutely. Absolutely. We felt -- we have a number of branches around the City. Currently -- we have currently 49 69 11/9/99 PUB. PROP. - Bill 990724 branches. But there are sections of the City -- this one in particular -- which did not have a branch library to adequately represent its community and its culture and diversity. So this is a terrific location for the branch, we feel.
So this is an underserved community which will now have its needs met.
All right. Are there any other questions? (No further questions.)
Okay, thank you very much. Are there other persons in the room who wish to be heard to speak in favor of or against this bill? If so, please let me know. (No response.)
One more, Madam Chair. Bill No. 990728, an ordinance authorizing the Commissioner of Public Property to convey to the 70 11/9/99 PUB. PROP. - Bill 990728 Redevelopment Authority of the City of Philadelphia certain premises located at 1822 through 1835 Callowhill Street, and authorizing the Commissioner of Public Property to enter into or to execute such other instruments as may be necessary or desirable to effectuate the provisions of this ordinance, all under certain terms and conditions.
Commissioner please. COMMISSIONER PEREZ: Thank you and good afternoon, Chairwoman Clark. My name is Andres Perez, Commissioner of Public Property. I'm here to testify in support of Bill No. 990728. This bill will permit the City to transfer a certain property located at 1823 Callowhill Street to the Redevelopment Authority of the City of Philadelphia. The Children's Crisis Treatment Center has been the sole tenant of this building since November 30, 1998. The property consists of a three-story masonry building, with 12,166 square feet of space. The Department of Public Property acquired the land in 1947. 71 11/9/99 PUB. PROP. - Bill 990728 The Department of Public Property supports this measure and, accordingly, I request that City Council approve Bill 990728. I also ask that the rules be suspended so that the ordinance 6 may be passed upon the second reading of Council. Thank you.
Thank you. Are there any questions by members of the committee? What's the significance of being the sole tenant? COMMISSIONER PEREZ: My understanding is, they've been in here since 1978 providing a variety of human services. There is a representative available for further questioning regarding the center's actual operation. There's been a nominal lease with the Department of Public Property. I believe it's a dollar-a-year lease for a number of years. That lease lapsed some time ago. And in looking to get things back in order, they have expressed their interest in acquiring the building through either a long-term lease or direct ownership so that they can facilitate fund-raising for capital. 72 11/9/99 PUB. PROP. - Bill 990728
By "they," you mean the Children's Crisis Center. COMMISSIONER PEREZ: Yes, the Children's Crisis Center.
And it will go from $1-a-year rent to owning the building? COMMISSIONER PEREZ: Yeah.
Okay. I'm still having troubling with "sole tenant." COMMISSIONER PEREZ: It's a small building, and they've been --
Has somebody proposed a joint lease? What is the significance of sole tenant? They've been a sole tenant all along, right? COMMISSIONER PEREZ: Yes.
And under the one year that you propose and the one-year extension -- and that is what you're asking for, right? COMMISSIONER PEREZ: No, we're actually asking for authorization to transfer it to the Redevelopment Authority, who will enter into a redevelopment agreement with the Children's Crisis Center. 73 11/9/99 PUB. PROP. - Bill 990728
Mr. Perez, maybe you can put it on the record. We were in a public hearing on an entirely different matter, and the phraseology "redevelopment agreement" was utilized, which seemed to have some time deadlines by which certain actions, construction activities, or bringing building up to certain codes had to be done within a certain amount of time. COMMISSIONER PEREZ: Right.
Is that the same context in which you're using the term? COMMISSIONER PEREZ: It's the same approach. The agreement will contain conditions similar to those conditions that we've asked for in other similarly situated arrangements, where title will not transfer from the RDA until the organization has met those milestones, which most often include a fund-raising target and an acceptable renovation plan.
Do you know what the fund-raising target is for this group? 74 11/9/99 PUB. PROP. - Bill 990728 COMMISSIONER PEREZ: I don't. I'd be glad to ask Mr. Valdes to step forward if he's still here.
Mr. Valdes, will you join us, please. (Mr. Valdes comes forward.)
We apologize for using your whole day up. I hope you've enjoyed your afternoon.
Please introduce yourself to the record and spell your last name for the benefit of our stenographer, and help us in any way you can to understand this deal.
Sure. My name is Tony Valdes, V-A-L-D-E-S. And in terms of the question, we have some initially estimates as to what it would cost to bring the building in terms of meeting some of 75 11/9/99 PUB. PROP. - Bill 990728 the code requirements and some other improvements that we need to make immediately. And it looks like it's going to be about $1.2 million.
And you believe you have the capacity to raise $1.2 million?
Certainly. In addition to getting assistance from a capital campaign organization that could help us raise that amount of money, we have a history of having been able to be -- we've been quite successful with fund-raising. We've raised between 1.5 to $2 million over the last 4 years, just in --
In traditional fund-raising, we have in the last three and a half years. And that's total, without having a capital campaign. A capital campaign would be significantly more intense.
Our fund-raising is primarily through -- I mean, our operations are funded primarily through billing for services.
We provide mental-health services for young children who have been abused.
Valdes. Mr. Valdes, what's the length of the term of the redeveloper agreement?
We have not engaged i a conversation with them as of yet. I think, if I understand, it's pending this process.
All right. So you're asking us to pass the bill, then you're going to enter into negotiations, or final negotiations, with the RDA about the length of time of your redevelopment agreement. Without getting in the middle of your negotiations, but needing to ask this question, can you give us a range of time during which you 77 11/9/99 PUB. PROP. - Bill 990728 think it will take you to be able to get the building up to code?
The report that we have from the consultants that we've spoken to is, the fund-raising will take between a year and a half to just over two years. How much of the work can begin once the money is being raised throughout this time certainly depends on how quickly the money is raised. But it should be, in terms of money being raised, it should be completed in a little over two years.
Now, is it clear that you wouldn't start until you have raised the entire amount? Or would you start when you had raised a substantial amount and were satisfied that the other is coming?
It certainly depends -- and that's going to be based on certain stages in terms of what other priority projects there are within the overall plan. Once we reach certain dollar figures that we would be able to begin and complete certain priority projects, then we would jump in and begin those before we had raised all 78 11/9/99 PUB. PROP. - Bill 990728 of the money. However, our intention would be to make sure that each step of the way, we've raised enough for that particular project that's next on list.
Present population? It's children from throughout the City. We serve children between the ages of and 13, although focus is on children between and 9.
We serve each year approximately 900 children to 950 children.
No, it's primarily outpatient services, community-based, office-based. We have day services for children who need, you know, five-day-a-week services, and we do traditional independent --
'Cause some of us don't know those services, could you briefly tell us what you do. 79 11/9/99 PUB. PROP. - Bill 990728
Certainly. We provide mental health services therapy for children and their families in their homes and in the schools.
Excuse me. I need to vote. Mr. Rizzo needs to go and I need his vote. So we're negotiating how I can get his vote and let him go at the same time.
I'll vote yes on all of the bills in front of this committee today.
All right. Thank you. I appreciate you coming today, Frank, very much.
And are you also leaving a vote to suspend the rules so as to permit consideration?
Yes, so that we can 80 11/9/99 PUB. PROP. - Bill 990728 hear these, I guess, tomorrow.
Yes, thank you. So Mr. Rizzo is leaving his vote yes for the bill 5 and yes to suspend the rules. COMMISSIONER PEREZ: Thank you.
Thank you, sir. Okay. So you were giving me what a day is like of, what a typical day is like.
Oh, we have several different types of services, but I'll go through a couple of the different ones. We have one service which is partial hospitalization. The children come to us every day five days a week for six hours a day. This program focuses on children between 4 and 6 years of age. They are provided with a therapeutic environment. It's a very structured environment to really work with children around socialization issues, isolation issues. Of the children in this program at some point have been through a traumatic event or have been abused.
Yes. And so most of them 81 11/9/99 PUB. PROP. - Bill 990728 come to us with issues around isolation, not being able to interact with other children and with adults, issues of trust. So we work with them in terms of beginning to sort of come out of their shell. And eventually, we prepare them to be able to go on to kindergarten and succeed in school, which is one of the big issues with children, particularly with the children who are in that in 4 to 5-year-old range. Other services we provide are home- based services. We provide family and individual therapy in the home and support services for the families and the children. We provide traditional office space therapy, where families will come in and meet with a psychologist, a social worker, or a psychiatrist one day a week and go over issues that they're dealing with their child and helping child move forward and the plan that's been developed for the child. We also have a specialized program, a trauma program that works with children who have been through a recent traumatic event. So we'll end up responding and supporting families, for 82 11/9/99 PUB. PROP. - Bill 990728 example, in a recent shooting, a surviving victim of a fire where the rest of the family has been killed and we'll work with the child in terms of their therapy and beginning to move forward.
They simply call us. Usually, it's the referrals from schools, from hospitals. And families themselves can contact us directly. The Department of Human Services and different groups will contact us when they have a referral.
Okay. I thank you very much for that thumbnail description of your program. I think I've visited that program just once, but I appreciate being refreshed on what you do. Are there questions from members of the committee? (No questions.)
Are there other persons in the room who wish to be heard to speak now in favor? (No response.) 83 11/9/99 PUB. PROP. - Bill 990728
Good afternoon again, Madam Chair and members of the committee. Thomas Chapman for the City Planning Commission. The City Planning Commission, at its meeting of November 4, 1999, reviewed Bill No. 12 990728 and recommended that it be approved.
Thank you very much. Did you -- did we hear from you on all the rest of them?
Okay, thank you. All right. Thank you, Commissioner. COMMISSIONER PEREZ: Thank you.
The public hearing 84 11/9/99 PUB. PROP. - Public Meeting Public Property and Public Works is now adjourned. - - -
We will now go into a public meeting. The record will reflect that Bill No. 8 970746 is being held. Bill No. 990645. Mrs. Blackwell?
Yes, Madam Chair. I move that Bill No. 990645 be reported out of committee with a favorable recommendation and that the rules be suspended so that it can be heard at our next session of Council. (Duly seconded.)
All in favor say aye? Opposes, nay? I'm one person short for a quorum, and I don't want to have a defect. - - -
Thank you, Mr. Kenney. I appreciate you coming back. So far, we are about to consider Bill 25 No. 990645. Mrs. Blackwell has made a motion that 85 11/9/99 PUB. PROP. - Public Meeting it pass. (Duly seconded.)
All in favor, say aye? Opposes, nay? Bill No. 990645 has been passed out of this committee with a favorable recommendation and the suspension of the rules so as to permit consideration at the next hearing of Council. The next bill before us is 990669. Mr. Kenney?
Madam Chair, I move that Bill No. 990669 be referred out of this committee with a favorable recommendation and a request made for rules suspension to allow for first reading at our next Council session. (Duly seconded.)
All in favor, say aye? Opposes, nay? There being no nayes, Bill No. 990669 has been passed out of this committee with a favorable recommendation and with a further recommendation that the rules of Council be 86 11/9/99 PUB. PROP. - Public Meeting suspended so as to permit first reading at the next stated meeting of Council. Next before us is Bill No. 990671.
Madam Chair, I move that Bill No. 990671 be reported out of committee with a favorable recommendation and a suspension of the rules so as to be heard at our next session of Council.
Madam Chair, as the sponsor of the bill, I'm requesting that the bill 12 be held. There will be another public hearing of the Committee on Public Property and Public Works prior to the end of our session. And as you recall, in the public hearing, there were some outstanding issues with regard to this particular bill.
I'm more than happy to accommodate that request, certainly.
Okay. The next bill is 990 -- oh, so the disposition of Bill 24 990671 is that it is being held at the request of the sponsor until certain questions have been 87 11/9/99 PUB. PROP. - Public Meeting answered. Before us now is Bill No. 990718. Councilwoman Blackwell?
Madam Chair, I move that Bill No. 990718 be reported out of committee with a favorable recommendation and also for a suspension of the rules so that it may be heard at our next session of Council. (Duly seconded.)
All in favor, aye? Opposes, nay? There being none, 990718 is reported out this committee with a favorable recommendation and with a further recommendation that the rules of Council be suspended so as to permit first consideration at our next meeting of City Council. Mr. Nutter, please, for 990724.
Madam Chair, I move that Bill 990724 be reported out of this committee with a favorable recommendation and a further recommendation that the rules of Council be suspended so as to permit first reading at our next session. 88 11/9/99 PUB. PROP. - Public Meeting (Duly seconded.)
All in favor, say aye? Opposes, nay? Then Bill No. 990724 is reported out of this committee with a favorable recommendation and with a further recommendation that the rules of Council be suspended so as to permit first reading at our next stated meeting of Council. The last is Bill No. 990728.
Madam Chair, I move that Bill No. 990728 be reported out of this committee with a favorable recommendation and an additional request made for a rules suspension to allow for first reading at our next Council session. (Duly seconded.)
All in, favor say aye? Opposes, nay? Then this bill, 990728, is reported out of this committee with a favorable recommendation and with a further recommendation that the rules of Council be suspended so as to permit first 89 11/9/99 PUB. PROP. - Public Meeting reading at our next stated meeting. That then concludes our calendar for today. I thank the members of the committee very much for coming. (Adjourned at 3:00 p.m.) - - - 90 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, November 9, 1999, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS BILL NO.'S 990645, 990669, 990671, 990718, 990724, 990728' __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter