Committee Hearing, March 2, 2004

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON RULES - - - - Room 696, City Hall Philadelphia, Pennsylvania Tuesday,March 2, 2004 10:35 a.m. - - - - BILL 040007 - an Ordinance to amend the Philadelphia Zoning Maps... BILL 040008 - an Ordinance establishing a neighborhood improvement district... BILL 040024 - an Ordinance amendig Section 14-1200 of the Philadelphia Code... BILL 040029 - an Ordinance to amend the Philadelphia Zoning Maps... BILL 040030 - an Ordinance to amend the Philadelphia Zoning Maps... BILL 040066 - an Ordinance to amend the Philadelphia Zoning Maps... PRESENT: COUNCIL PRESIDENT VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCILMAN JACK KELLY COUNCILMAN JAMES KENNEY COUNCILMAN RICHARD MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN BRIAN O'NEILL COUNCILWOMAN BLONDELL REYNOLDS BROWN - - - - V A R A L L O Incorporated Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 040066 THOMAS CHAPMAN, City Planning......... BILL 040029 THOMAS CHAPMAN, City Planning......... THOMAS DALFO, PIDC, PAID.............. BILL 040030 THOMAS CHAPMAN, City Planning......... 8 THOMAS DALFO, PIDC, PAID.............. 16 BILL 040007 THOMAS CHAPMAN, City Planning......... 19 WILLIAM G. SCHWARTZ, ESQ.............. 40 ANTHONY NACARADO, Tacony Civic Assoc.. 43 BILL 040008 DUANE BUMB, Commerce.................. 48 SUZANNE BIEMILLER, CHBA........... 50, 70 MARILYN MONACO, ESQ., CHBA............ 62 SANJIV JAIN, Chestnut Hill Real Estate 82 JANINE DWYER.......................... 95 JEAN BAUM............................ 104 STAN BAUM............................ 118 ROBERT BLAIN......................... 122 JOHN LEVITTIES....................... 128 ANNE MCNALLY......................... 135 TOM IVORY............................ 140 BILL SHEPHERD........................ 143 3 03/02/04 - RULES - BILL 040066

Good morning, everyone. This is the public hearing of the Committee on Rules. For the record, Bill Number 040024 will be continued until March at 10:00 a.m. at the request of the 7 sponsor. 8 The bill we're hearing now is 9 040066, an ordinance to amend the Philadelphia 10 Zoning Maps by changing the zoning designation 11 of certain areas of land located within an 12 area bounded by Snyder Avenue, Swanson Street, 13 Oregon Avenue and Fifth Street. 14 Good morning. Please approach the 15 witness table. Identify yourself for the 16 record and proceed with your testimony. 17

Good morning, Madam 18 President and Members of the Rules Committee. 19 My name is Thomas Chapman. I'm here for the 20 City Planning Commission. I'm here today to 21 testify on Bill No. 040066. This bill was 22 introduced by Councilman DiCicco on January 23 29th of this year. This bill is a zoning re mapping ordinance for an area in South Philadelphia 4 03/02/04 - RULES - BILL 040066 bounded by Snyder Avenue, Swanson Street, Oregon Avenue and Fifth Street. The bill 4 changes the zoning of properties currently designated R-10 Residential to a classification of R-10A Residential. The difference in the two zoning classifications is that while R-10 allows single family, duplex and even multiple family occupancy of a building, R-10A allows only single family dwellings. This change means that from this point forward, to convert a single family home in this area to more than one unit, you would need the approval of the Zoning Board of Adjustment. The bill further recognizes the commercial development along Oregon Avenue at Fifth Street by designating those properties as C-2 Commercial. The Planning Commission is scheduled to consider this amendment to the Zoning Maps at its meeting of March 16, 2004, and at that time, the staff will recommend that the Commission approve this bill. I would be happy to answer any questions of the Committee. 5 03/02/04 - RULES - BILL 040066

Thank you. Mr. Chapman, are these changes being requested, do you know, to aid any particular project or development? If not, do you know why these changes are being sought?

To the best of my knowledge, Councilwoman, they're not being requested to aid a particular development. This is a community-wide rezoning, and it was requested, as I said, by Councilmember DiCicco and it's -- you may or may not know. Most of this area is single family, but the zoning would allow duplex or even triplexes as a matter of right. So this rezoning is an effort to recognize what's really is in place for the most part.

Thank you. Are there any questions of Mr. Chapman by members of the Committee? (No response.)

Do you have anyone else to testify on this bill? (No response.) 6 03/02/04 - RULES - BILL 040029

Seeing none, we will now proceed to the next bill, Bill No. 040029. And should 040030 be heard at the same time, Mr. Chapman?

They concern two different sites.

We'll consider 040029.

Bill No. 040029, an ordinance to amend the Philadelphia Zoning Maps by changing the zoning designation of certain areas of area McNulty and Townsend Roads, under certain terms and conditions.

Mr. Chapman.

Good morning once again, Madam President and Members of the Rules Committee. My name is Thomas Chapman. I'm here today to testify on Bill No. 040029. Councilmember O'Neill introduced this bill on January 22nd of this year. This bill changes the zoning of parcels that are being exchanged between the 7 03/02/04 - RULES - BILL 040029 City and PAID. The property the City is conveying is approximately 1.21 acres and will be rezoned from Recreational to L-2 Limited Industrial. The parcel being acquired by the City is approximately 3.19 acres and will be rezoned from L-2 Limited Industrial to Recreation. The parcel being acquired by the City will be added to the Fairmount Park Commission's trail system, while the property being conveyed will allow an existing business to expand. This rezoning proposal was considered by the Planning Commission at its meeting of December 9, 2003, and at that time the Commission recommended the rezoning be approved. That concludes my testimony. I'd be happy to answer any questions from the Committee.

In essence, this swap results in an increase in additional recreational space of what, 88,000 square feet?

Yes, approximately. 8 03/02/04 - RULES - BILL 040029 Just about two acres.

Any questions from Members of the Committee of Mr. Chapman? (No response.)

Do we have anyone else to testify on this bill? Please approach the witness table. Good morning. Kindly identify yourself for the record and proceed with your testimony.

Good morning, Madam President. My name is Thomas Dalfo, D-A-L-F-O. I'm a vice president with the Philadelphia Industrial Development Corporation. I'm here to represent PIDC and the Philadelphia Authority for Industrial Development. I'm here to support Bill 040029. The bill will change the zoning designation of two parcels that are being exchanged by the City of Philadelphia and PAID in the Byberry East Industrial Park. The City-owned parcels which total 1.2 acres will be rezoned from Recreational to L-2 Industrial. The PAID parcels totaling 3.19 9 03/02/04 - RULES - BILL 040029 acres will be rezoned from L-2 Limited Industrial to Recreational. The net result will be an increase in park land of nearly two acres. This rezoning will enhance the Fairmont Park Commission's existing trail system adjacent to the Byberry East Industrial Park while simultaneously creating a developable parcel that will enable an existing company located in the industrial park to expand its operation. The land being rezoned from Industrial to Recreational is not well suited for industrial development. However, as recreational use, it will link existing elements of the Fairmount Park Commission's trail system with the Benjamin Rush State Park. The land being rezoned from Recreational to Industrial will add to the developable inventory in the industrial park that will support additional industrial investment in the City. I would ask that the Committee 10 03/02/04 - RULES - BILL 040029 consider this bill favorably and that the Rules of Council be suspended to permit first reading next regularly meeting of Council. Thank you. And if you have any questions, I'm more than willing to answer them.

Thank you. Are there any questions from Members of the Committee? The Chair recognizes Councilman O'Neill.

Just a comment, Madam Chair. I'd like to thank Mr. Jim Donaghy who had been with Fairmount Park and is now a Deputy Managing Director, and Paul Deegan from PIDC for really facilitating this swap, both with the local business owners and the Friends of Poquessing and the Friends of Pennypack Park. It's going to be a win/win for everybody. Thank you.

Thank you. The Chair recognizes Councilman Clarke. 11 03/02/04 - RULES - BILL 040029

Thank you, Madam Chair. Good morning, gentlemen. With respect to the potential industrial development, commercial development, will there been creation of additional jobs?

The company hasn't given us their kind of estimation as to whether or not they're going to expand their workforce. They are going to expand their facility and some additional storage area in the property, but I don't have an estimate of their employment and whether or not --

At a minimum, we'll be able to collect some additional real estate taxes?

At a minimum.

Thank you.

Are there any other questions from Members of the Committee? (No response.)

Do we have 12 03/02/04 - RULES - BILL 040030 anyone else to testify on Bill 040029? (No response.)

Seeing none, I would ask Mr. McPherson to please read the title of Bill 040030.

An ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Roosevelt Boulevard, Southampton Road, Carter Street and the Poquessing Creek.

Mr. Chapman.

Good morning once again, Madam Chair and Members of the Committee. My name is Thomas Chapman. I'm here today to testify on behalf of the Planning Commission. Councilmember O'Neill introduced this bill on January 22nd of this year. Bill No. 040030 would rezone a site of about 138 acres from the existing R-5 Residential to partly L-2 Limited Industrial, partly R-1A Residential and partly Class 13 03/02/04 - RULES - BILL 040030 Recreational. A companion bill to this ordinance, Bill No. 030785, authorized PAID to acquire this same property from the Commonwealth of Pennsylvania for $900,000. This site is part of the former Byberry State Hospital property. Both the acquisition and the rezoning of this property had been considered by the Commission it its meeting of December 9, 2003. The Commission recommended approval of the acquisition of the site. And while not recommending the rezoning be disapproved, had stated that it would have preferable for the rezoning of this site to have been accompanied by a specific plan of development, but I realize we're not at that point in the process right now. This concludes my testimony. I'd be happy to answer any questions from the Committee.

The Chair recognizes Councilman O'Neill.

Not a question, but an explanation. 14 03/02/04 - RULES - BILL 040030 My reasoning in introducing this bill rather than waiting for a specific plan is that I believe any specific plan will have to go to the Zoning Board. And what I wanted to lay out before it got to the Zoning Board that it isn't an R-5 high density twin home site, but a site that has a dedicated acres 9 of recreational space and a sort of even split 10 more or less between single homes and office 11 or light industrial. And I think we'll wind 12 up somewhere in that area, but I'm not sure 13 we'll wind up with City streets and I'm not 14 sure that we won't have to go to the Zoning 15 Board. So I just wanted to lay a better 16 foundation so the Planning Commission will 17 have a clear record on it as to what we'll be 18 dealing with in the, hopefully, very near 19 future. Thank you. 20

I guess I had always 21 assumed that this site would have City streets 22 on it. 23

I'm not sure. 24 There's some talk about age restricted 25 housing, and I'm not sure if that will be 15 03/02/04 - RULES - BILL 040030 private or publicly streeted.

Any other questions of Mr. Chapman from Members of the Committee? The Chair recognizes Councilwoman Brown.

Thank you, Madam President. Good morning, gentlemen. Having heard the explanation from my colleague Councilman O'Neill, is it customary to make these type of approvals without knowing the full scope of the anticipated use of the land?

Is it customary? I don't think that I can say it's customary or not customary. Many times when we come to Council with a rezoning proposal, there is a specific plan of development. But quite frequently, there isn't.

Okay. Thank you.

I might add that there's been nothing very customary about 16 03/02/04 - RULES - BILL 040030 the entire Byberry matter since the hospital closed almost years ago. 4

Thank you. 5

Thank you. 6 Any other questions from Members of 7 the Committee of Mr. Chapman?. 8

Good morning, Madam 9 President and Members of the Committee. Once 10 again, my name is Thomas Dalfo and I represent 11 the Philadelphia Industrial Development 12 Corporation and the Philadelphia Authority for 13 Industrial Development. I am here to testify 14 in support of Bill No. 040030. 15 This bill will change the zoning 16 designation of approximately 130 acres of the 17 former Byberry State Hospital property that is 18 bordered by Roosevelt Boulevard, Southampton 19 Road Carter Road and the Poquessing Creek from 20 R-5 Residential to partly Recreation, partly R-1A Residential and partly L-2 Limited Industrial. I'm happy to report that PAID acquired the former Byberry State Hospital property from the Commonwealth of Pennsylvania 17 03/02/04 - RULES - BILL 040030 on January 17, 2004. Byberry is an important development site in Northeast Philadelphia due to its large scale and highly visible location on one of the main entrances to the City of Philadelphia. This bill will support the master plan PIDC developed for Byberry working in conjunction with the Somerton Civic Association and local elected officials which calls for the property to be developed with a mixture of uses. The plan developed for Byberry will preserve acres of land as open space and 15 buffer plan development from existing 16 residences that border the property to the 17 west. This bill will rezone that portion of 18 the site Recreational. The interior of the 19 site which will be rezoned R-1A Residential 20 will include approximately 55 acres of 21 market-rate residential development and 22 age-restricted housing that is planned to 23 included approximately 300 new housing units. 24 The remaining 50 acres of the property that 25 front object Roosevelt Boulevard will be 18 03/02/04 - RULES - BILL 040030 rezoned L-2 Limited Industrial to allow for the development of up to 600,000 square feet of office or flexible industrial space. The plan developed for Byberry will simultaneously provide significant new housing opportunities and jobs for Philadelphia residents by returning this long-vacant property to productive use. Once again, I would 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 Council. Thank you. And I'd be happy to answer any questions.

Thank you. Are there any questions from Members of the Committee?

Yes, Madam Chair.

The Chair recognizes Councilman O'Neill.

This zoning bill was intended to run together with the 19 03/02/04 - RULES - BILL 040007 acquisition bill. They were both introduced in the last session. However, the Public Property Committee was able to report the bill 5 out for final passage on acquisition, but the Rules Committee canceled its hearing on our last possible session. So it's coming about two months late. Otherwise, we would have been talking about it in the same week. Thank you.

Do we have anyone else to testify on Bill No. 040030? (No response.)

Seeing no 15 one, we will now consider Bill No. 040007.

An ordinance to amend the Philadelphia Zoning Maps by changing the zoning designation of certain areas of land located within an area bounded Tacony Street, Barnett Street, Levick Street, the Delaware River, Cottman Avenue and New State Road.

Mr. Chapman.

Good morning once 20 03/02/04 - RULES - BILL 040007 again, Madam Chair and Members of the Rules Committee. My name is Thomas Chapman. I'm here today to testify on Bill 040007. Councilmember Krajewski introduced this bill 6 on January 22nd of this year. This bill rezones the area bounded by Levick Street, I-95, Cottman Avenue and the Delaware River. This area a small part of the area that was subject of the North Delaware plan and is located entirely within the Tacony community. This rezoning is consistent with the recommendations of the Tacony Neighborhood Strategic Plan and has the support of Tacony Civic Association, the Tacony Business Association, the Tacony Community Development Corporation and Historical Society of Tacony. This rezoning has a number of purposes. Currently, a significant portion of this area is zoned Least Restricted and G-2, General Industrial. The existing zoning designations in this area allow for heavy industrial use, including the outdoor storage of material as well as the outdoor processing 21 03/02/04 - RULES - BILL 040007 of material. This change in designation would require that all work and storage of material be done in an enclosed structure. This outdoor work is not permitted in other industrial classifications. A number of the current uses in this area are nonconforming uses already, and this change in zoning will make a number of those uses conforming. While there are some existing businesses in this area, a significant part of the area consist of land and buildings that have been vacant and unoccupied for quite some time. It is hoped that this rezoning send a message that both the Council Representative and the community are receptive to new development in the area. Notwithstanding these changes in zoning, further actions of Council would be necessary should a residential development be proposed for any of the sites that are being changed to R-5 through this bill. An ordinance would be necessary to place streets on the City Plan and additional rezonings may be necessary to accommodate proposed 22 03/02/04 - RULES - BILL 040007 development. This rezoning is consistent with previous actions of the Planning Commission taken in connection with Bill No. 020278, and accordingly, we would recommend that Bill No. 7 040007 be approved. That concludes my testimony. I'd be happy to answer any questions of the Committee.

Mr. Chapman, with these changes, I believe you testified that they are being made simply to make future development possible?

That is clearly one of the efforts of this rezoning, to send a message out there that this area is right for redevelopment.

Thank you. Are there any other questions from Members of the Committee? The Chair recognizes Councilman Mariano.

Mr. Chapman, would that be all development, commercial, or 23 03/02/04 - RULES - BILL 040007 just residential or any combination of the both? When you say friendly for redevelopment, it looks like it ready to be so me new home development probably.

Councilman, the North Delaware Plan is clearly a mixed-use plan, allowing for and making provisions for all kinds of development, residential, commercial and industrial. There are a couple of sites within the area that's subject to this bill 13 that some people think are appropriate for residential development. But at the same time, probably more than 50 percent of the zoning in this area is going to stay industrial.

Is it near the cryogenics place right here? Do you know anything about that? It's not far off of Tacony, near the bridge.

It's south of the bridge.

By the storage boxes? 24 03/02/04 - RULES - BILL 040007

Yes, that's outside of this area.

That's not in this?

No. 7

To me, it seems like it is by looking at this map.

I don't believe so. I could be wrong, but I didn't think that it went as far as -- I know the facility that you're talking about, but I thought that that was outside of this area.

I think Walt Disney's brother is in there, I heard. Some former mayors of this City may be in there. Thank you.

Are any other questions? The Chair recognizes Councilman Clarke.

Thank you, Madam President. I wanted to ask a general question with respect to the planning process and 25 03/02/04 - RULES - BILL 040007 earlier testimony that was referenced to, an industrial plan that was put together by PIDC. My question is, these plans that were referenced that PIDC -- and I don't know who commissioned them to do that. Can you talk to me about that. Is it done in conjunction with the Planning Commission or does PIDC take responsibility for industrial/commercial areas and develop a plan? How is this initiated if there were other sections of the City that we would be interested in getting a strategic plan put in place?

Generally speaking, the Planning Commission and PIDC do work together on plans, especially for industrial development. And I know that there's been many discussions with Philadelphia Industrial Development Corporation on redevelopment of the Byberry site.

Walk me through the process. Say I have an area to east of Broad, former industrial site back in the old days when Stetson Hats and all of those types 03/02/04 - RULES - BILL 040007 of industries were located there and we would like to redevelop that area into some light industrial/commercial. How would I start that process? Would I go to the Planning Commission and initiate it? Would I go to PIDC? Would I go to the Mayor? How does that work?

If I may, Councilman. Once again, Tom Dalfo with PIDC. With respect to this particular proposed ordinance, not the Byberry one, the Delaware River one, we haven't done any -- PIDC hasn't done any kind of planning activity on that site. On the earlier one with respect to Byberry, we began a planning process once it became apparent that PIDC or PAID was going to be the entity that was going to acquire the property. Once it was cleared that the Commonwealth was going to convey the property to PAID, quite frankly, we needed to figure out what would work for that site, given its large scale, given its location on Roosevelt Boulevard, it's nearby access to Pennsylvania 27 03/02/04 - RULES - BILL 040007 turnpike, and its close proximity existing housing in Northeast Philadelphia. As to the what started the process, whether we initiated it or we did it at the behest of community groups or local elected officials, quite frankly, I don't have the answer to that and we could try to track that down. But what we did do is engaged a land planning firm and worked with a Committee that represented community groups in and around the Byberry State Hospital property as well as local elected officials, among which Councilman O'Neill's office.

So it's primarily done when and if there is the potential for acquisition?

That's what started it.

Not private property that just happens to sit in an area?

No. We have looked at private properties that we don't control that there could be a possibility that we could acquire and we would kind of begin the process, try to think about what types of uses 28 03/02/04 - RULES - BILL 040007 may make sense from an industrial point of view or commercial or what-have-you. And then typically, we would reach out to community groups and local elected officials to make sure that that concept is palatable. And where it's not, we adjust it. And that's what we had done with the Byberry State Hospital property. We did a fair amount of modifications. I think there was a range of potential uses that were considered purely from a land planning point of view by our planners that we had retained and they looked at options raging from very office intensive to very residential intensive in terms of the whole site. And the preferred option that was laid out is the one that is reflected in the zoning ordinance that was presented for Byberry. So there was a fair amount of give and take to figure out what would work for this site, what would be acceptable to people who would be greatly impacted by it. And we'll see what the marketplace say about that when we get proposals.

And the 29 03/02/04 - RULES - BILL 040007 resources to put together a strategic plan traditionally come from where?

If it's going to be an industrial facility or has a potential to be an industrial facility, we're going to acquire it using Industrial dollars. We've typically used the Commercial and Industrial Revolving Fund or Land Bank dollars. And I think that's how we funded this. We also had some City Capital dollars, I think, allocated for planning purposes at Byberry. So I think it was a combination. I think primarily it was City Capital dollars because we were going to acquire the site and it needed to have a clear understanding of the investment that was going to occur and needed to have a plan to get a feel for investment that would need to occur on that site. Our hope is that the private market place will make most of that investment.

Who is the lead person in PIDC for that?

For the Byberry property? 30 03/02/04 - RULES - BILL 040007

No, just generally if I were interested or any other Councilmember was interested in looking into developing a strategic plan for a potential industrial or commercial site. Would you just deal with Mr. Longstreth.

Yes, Mr. Longstreth would be the appropriate person to talk to about it. And then he would assign people internally to kind of follow-up and move it forward after a discussion occurs. So if there are particular properties that may make sense to be acquired industrially and reviewed in a larger context, I think it would be something we would look at.

Thank you, Madam Chair.

The Chair recognizes Councilman O'Neill.

In terms of why PIDC on the Byberry site, it really boiled down to a trusted third party. They had developed two large industrial parks in the immediate area and had kept their words on 31 03/02/04 - RULES - BILL 040007 different things with the community, and they were held in high regard for being honest and not causing problems later. I would just also recommend for strategic planning the Planning Commission's team of planners. They have a strategic planning model that I've seen work really well in the Parkwood community and it involved a whole lot of business-type issues. And maybe PIDC would participate in terms of watching and hearing what the community desired. But they have a pretty good program. I think there were six neighborhoods that were done with a grant. And I can just highly recommend the one that was done in Parkwood and that the people feel like they really were listened to and that the plan reflected what they want and what the best thing is for their community.

Thank you. Are there any other questions or comments of these witnesses? You did explain the process for PIDC. When does PIDC communicate with the City Planning Commission? Do we work in 32 03/02/04 - RULES - BILL 040007 tantum, or does the right hand not know what the left hand is doing?

Hopefully, the latter is not the case. It happens sometimes, but we do have a fair amount of kind of exchange of plans. When we were in the process for Byberry, I know the drafts of the plan as they were being developed were presented to the City Planning Commission to review and get a feel for. I think Councilman O'Neill's comments earlier about they have the capacity to do kind of area planning or strategic planning for a neighborhood or a specific area. It's different from what we've done. We've done very specific planning as a concept for properties. So we looked at Byberry as a specific site. It was large enough to warrant that since its 130 acres and it's a prominent location. We haven't done that for properties that have been smaller that we acquire on a routine basis. It typically is when it's a larger site that doesn't, I think, have a very clear and evident reuse for the property. 33 03/02/04 - RULES - BILL 040007 Another example would be the navy yard where we're looking at plans for that property because of its size and sale. And Byberry, while smaller, was certainly as important.

And we're looking at comprehensive plans for the larger projects, are we not?

Yes, yes.

The Chair recognizes Councilman Kelly.

Mr. Dalfo, you mentioned in the Byberry site that there were 300 residential units. Could you tell me specifically what units they are? Are they twin homes? Are they single homes?

R-1A residential designation, I think applies solely to single family homes. So under this designation, the types of houses that would be developed would be single family homes. And the density, given the amount of acreage that has been designated as residential, is about 300 homes just looking at what the minimum lot size 34 03/02/04 - RULES - BILL 040007 would be and some assumptions for streets and some open space and storm water retention and things like that get to you a number about 300 homes, which is in line with the zoning designation for the property. So that's how the number was arrived at. We'll be getting proposals from developers in a couple of weeks and we'll get a sense of what they say about that and whether or not what their plan is, how they see that they can work within that zoning designation and present a residential plan for the property.

Now, there's been many proposals for that tract of land up there. Could you give me a status report on what the final outcome is going to be on that?

We don't know yet. We're waiting to receive proposals from a list of developers. And once we get that in, we'll have a clearer picture of what the reuse of the property is going to be. But what the zoning bill does is layout a framework -- 35 03/02/04 - RULES - BILL 040007

It will be a mixed-use type of --

That's what we put in our request for proposals. We indicated that we wanted to see --

Do you have any time table as to when this is going to be completed?

When it's completed -- we're supposed to get proposals in in a couple of weeks. And then the timetable, usually they tend to be pretty complex in terms of kind of analyzing the offer and the proposal, kind of seeing how feasible it is, how compatible it is with the zoning and with the communities kind of plans and preferred plan for the property.

You wouldn't want to make a guess as to when that would be complete.

I'm always wrong, so it probably not being real worthwhile. It tends to take a little bit longer than I think we originally schedule. And given the size of 36 03/02/04 - RULES - BILL 040007 the site and its prominence, that's probably not a bad thing.

Thank you.

Thank you. Are there any other questions from Members of the Committee? The Chair recognizes Councilwoman Brown.

Thank you, Madam President. In response to President Verna's question regarding what juncture do you have some dialog with the Planning Commission, your response was, hopefully it's not the case where one side is not speaking, talking with, alerting the other. And what that suggests to me is that it's not what I call an SOP, Standard Operating Procedure, between the two departments that both are alerted at the same time about a pending strategic plan. So what is the case? Does it happen because someone from PIDC recognizes the importance of the involvement of the Planning Commission or the District Councilperson insists that there needs to be a 37 03/02/04 - RULES - BILL 040007 dialog between two agencies? What happens? Because clearly, it's not a standard operating procedure.

Typically we don't do a lot of this type of planning. So the only properties I can think of recently, as I said, were the navy yard and the Byberry Hospital property. So once we have a kind of a concept flushed out, we typically don't do it in house. We don't have that kind of planning capability. We had retained a planning firm to assist us in working and putting kind of a series of concepts together.

You say you do retain?

We do. We don't have planners in-house that have that land planning experience. Our land planning ability tends to be on very small industrial sites. We can locate a building, we can see what would work in terms of parking and layout and things like that. But for larger sites, it's a more complex undertaking. So what we would do is get a plan together, a draft plan, and then 38 03/02/04 - RULES - BILL 040007 share that with the Planning Commission at that point so that they have something to react to. And they would look at it for its consistency with larger plans for that area. As I said before, we typically look at a single property. It's not to say that we don't look at kind of impacts beyond that, but typically we tend to focus on the property and how to lay the property out. Where we would work with the Planning Commission is to make sure that the concept that's being developed in a draft form is compatible with other concepts in that area. So Byberry kind of activities related to that part of Northeast Philadelphia so that we wouldn't be doing something at odds with residential activity nearby or other commercial or industrial activity or transportation improvements that are proposed. So when I said hopefully we don't have a situation where one hand doesn't know what the hand is doing, that's what I meant. But we do have a pretty good dialog with the Planning Commission. And we don't do this a 39 03/02/04 - RULES - BILL 040007 lot, so in terms of having a standard operating procedure, it's really not a standard activity for us. So when we do it, we get to a certain point in terms of a concept and then we, quite frankly, will sit down with the Planning Commission, with local elected officials and then community groups as appropriate and as directed. So the last thing we want to do is surprise anybody with a plan on a property of that scale. It tends not go over real well and we try to avoid that.

And so with that said then, ultimately it rests with PIDC to do the reach to the Planning Commission and all other appropriate stakeholders?

Yes. And we tried to do that as however the process seems appropriate for each property. So what we do for one property may be a little different from another property. But we do try to keep all the interested parties apprised of the process.

Thank you for 40 03/02/04 - RULES - BILL 040007 your testimony.

Sure. Thank you.

Are there any other questions from Members of the Committee? (No response.)

Thank you. Do we have anyone else to testify on this bill? Good morning. Please identify yourself for the record and proceed with your testimony.

I'm an attorney, William G. Schwartz and I represent Mr. Venesialli (ph) who is a lessee of a major portion of this property which is located immediately beside the Tacony-Palmyra Bridge to the river. The technical address is 6425 State Road, but it's immediately north of the bridge structure and it's a large piece of ground. May it please this Committee, my client and I had no notice of this hearing until late last week despite my calls to Mr. 41 03/02/04 - RULES - BILL 040007 Chapman which went unanswered earlier and despite the fact that the sponsor of this bill 4 knew of client's zoning application before the Zoning Board of Adjustment for a restaurant and a catering facility on this site and despite the fact they were in attendance at the community meeting the night before the zoning hearing on February 23rd and at the zoning hearing on February 24th and no one had the decency to tell us about this pending ordinance at all. We have not had a chance to discuss this with a planning expert so as to give meaningful testimony here today. And because of that, I would ask that this hearing be rescheduled at a later date so that we may have that opportunity. What happened when this bill was introduced without our knowledge in January of this year, there is a possibility that it may have been retaliatory, and I'd like to think it wasn't, but it does constitute a pending ordinance. And as a pending ordinance, my client has no ability, zero, to apply for and 42 03/02/04 - RULES - BILL 040007 obtain any permit from zoning because once the pending ordinance is in and advertised for a hearing, zoning will not entertain a new application during the pendency of that ordinance. And that is a tantamount to a declaration of taking in an eminent domain proceeding. We have tried to resolve our differences, and hopefully we will. But to the extent that we aren't, then we would have to oppose the pending ordinance. As was stated by PIDC today, they haven't even done study on this bill for this site and, therefore, I say it is premature to go ahead with any action on this until we've had competent testimony. And we would like to have competent testimony of proper use of this site being of record, as I am sure so would the Chair and the rest of the Members of this Committee. Thank you.

Thank you. Have you been in communication with Councilwoman Krajewski?

I have not 43 03/02/04 - RULES - BILL 040007 personally, no. 3

Have you attempted to? She did sponsor the bill. I think you ought to be communicating with her and with Mr. Chapman.

Well, I tried with him, but he didn't return my calls, ma'am. Sorry.

Well, he is in the room. Maybe you could certainly arrangement an appointment before you leave.

Thank you.

Are there any questions of this witness from Members of the Committee? (No response.)

Thank you. Do we have anyone else to testify on this bill? Yes, sir. Please approach the table. Good morning. Please identify yourself for the record.

My Anthony Nacarado 44 03/02/04 - RULES - BILL 040007 (ph). I am the President of Tacony Civic Association, and if it please the Committee, I'd like to just make a quick statement. I have a document here which is the Tacony Neighborhood Strategic Plan. It was prepared in October of 2002 by Urban Partners in conjunction with Gannet Fleming for the Tacony Community Development Corporation and the Historical Society of Tacony. And I just want to read a very brief part regarding the potential development along the Delaware River. "The development of the waterfront is an ambitious project that is likely to be many years away. However, development of this area could be of tremendous benefit to Tacony. While it would be desirable for such development to be part of the larger plan for the improvement of the Delaware River Waterfront as proposed by the City Planning Commission, the section of the waterfront in Tacony could be developed independently. It is a large enough area to be attractive to private developers and is buffeted by St. 45 03/02/04 - RULES - BILL 040007 Vincent's home to the north and the and the Tacony-Palmyra to the south. The neighborhood should therefore encourage more detailed planning of this area by the City Planning Commission in creation of a development strategy that could proceed with or without a larger riverfront development plan. And it should include a more detailed plan of the area from I-95 to the Delaware River that is contained in the North Delaware River Plan, rezoning of the area from industrial so as to preclude new industrial use that would prevent future development of this area for park, open space, residential, and commercial use, a plan for acquisition and assembly of the entire area to facilitate new development." Ladies and gentlemen, I'm a life-long resident of Tacony. I'm also an engineer and I have a business in Center City, and this is absolutely, I believe, tantamount for the success and the continued thriving and improvement of our neighborhood. And I sit here today representing all of our neighborhood organizations. We have been in 46 03/02/04 - RULES - BILL 040007 participation with people like bob Borski who has put together a task force that's looking at green ways and the whole improvement of the North Delaware. We're working with PEC, the Pennsylvania Environmental Council, who has moved forward with the City of Philadelphia to obtain right-of-way which was the former Kensington and Tacony rail line to begin to change that process to bike path and river road much as has been talked about in the plan. So, again, I don't want to take up too much of your time, but we feel that this is a very important step forward for our neighborhood and we look very much forward to working with the City and Members of Council and all of its departments so that we can make this thing happen. Thank you very much for your time.

Thank you. Any questions or comments from Members of the Committee? The Chair recognizes Councilman O'Neill. 47 03/02/04 - RULES - BILL 040008

I just want to mention, I was with Councilwoman Krajewski yesterday. And while she's not on the Rules Committee, she said she supported the Civic Association and this bill and wanted it to move today and understood there may be some opposition.

Thank you. Any other questions or comments? (No response.)

Thank you very much. Do we have anyone else to testify on this bill? (No response.)

Seeing none, I would ask Mr. McPherson to please read the title of Bill No. 040008.

An ordinance 21 establishing a neighborhood improvement district in the area that generally includes both sides of Germantown Avenue from 7640 to 8705, both sides of Bethlehem Pike from 10 to 104 and certain blocks of streets that 48 03/02/04 - RULES - BILL 040008 intersect that portion of Germantown Avenue, to be known as the Chestnut Hill Business Improvement District. Our first witness is Duane Bumb from the Commerce Department.

Good morning. Please identify yourself for the record and proceed with your testimony.

Good morning, Madame President. My name is Duane Bumb, I'm the Deputy Commerce Director. I'm here today support to provide testimony in support of Bill 040008. This bill would allow for the creation of the Chestnut Hill Business Improvement District, a neighborhood improvement district which would include the Chestnut Hill commercial corridor extending along the Germantown Avenue from Cresheim Valley to Rex Avenue and certain blocks of streets that intersect that portion of Germantown Avenue. Neighborhood improvement districts are one of the best examples of collaboration 49 03/02/04 - RULES - BILL 040008 between the City and our neighborhood commercial corridors. Like their counterparts in the recently approved East Passyunk Avenue Port Richmond Industrial Development Enterprise and Roxborough, the Chestnut Hill businesses and entrepreneurs and property owners recognize the need to improve the environment within which they and their customers live and work. Their efforts to keep the Chestnut Hill commercial areas consistently clean, safe, and attractive will directly impact the stability of the entire community. Further, as the neighborhood prospers, the economic fatality of the commercial center will also be strengthened. Much of the credit in forming the Chestnut Hill Business Improvement District goes to the diligent work of the Chestnut Hill business association in close coordination with Councilwoman Miller's office. As a result of the successful collaboration will be dynamic neighborhood improvement district that promotes the long-term growth and viability of the commercial areas in Chestnut Hill. This 50 03/02/04 - RULES - BILL 040008 worthwhile effort deserves the support of the City. I, therefore, urge your support of Bill No. 040008. Thank you for your consideration. I will be happy to answer any questions you may have.

Thank you. Turn to Exhibit A of the final plan states that only commercial properties in the district will be assessed. However, Paragraph 10 states that the cost of services within the district will be equitably apportioned among all benefiting properties within the district. Can you clarify that for the record, please.

I'd actually ask for someone from the business association to come to clarify that.

Whoever can clarify it for the record, I'd appreciate it. Is someone here? Good morning. Please identify yourself for the record.

Good morning, Madam 51 03/02/04 - RULES - BILL 040008 President. My name is Suzanne Biemiller and I'm Executive Director of the Chestnut Hill Business Association. The first paragraph, Paragraph 2 is correct in Exhibit A that the Steering Committee of the business improvement district felt that only commercial properties would be assessed under this business improvement district, as is allowed under the law. So we would, I guess, have to change that Paragraph 10 to further clarify that.

So we would have to amend that?

Right.

Also, Paragraph 14 of the final plan states that property owners have 45 days after the presentation of the plan to file objections to the creation of the district with the Clerk of Council. When was this plan considered to be presented? Was that January when the bill was introduced?

My understanding is that there will be a second hearing at which 52 03/02/04 - RULES - BILL 040008 time the final plan is considered, and that triggers the 45-day period.

Pursuant to the Community and Economic Improvement Act, is the district permitted to distinguish between residential and commercial properties for tax assessment purposes?

It's my understanding that it is.

That's my understanding as well, but we will get a clarification from the Law Department for you on that.

I think that would be fine. I think if we're doing it, we ought to do it the right way. Any questions from Members of the Committee? The Chair recognizes Councilwoman Brown.

Good afternoon. You mentioned in your testimony other business districts that have come to life here in the City. Does the Chestnut Hill business district, are there any uniquely different 53 03/02/04 - RULES - BILL 040008 features about it versus other models that are currently in place in the City?

There are several different types of business improvement districts, special service districts, neighborhood improvement districts. The Chestnut Business Improvement District follows the act under which neighborhood improvement districts are formed, is a state piece of enabling legislation that was passed, I'm going to say, three years ago. And since that Act was passed, we have seen three neighborhood improvement districts formed within the City. We've seen no other types since then. My expectation would be that this will be the Act that we continue to see additional neighborhood improvement districts or business improvement districts formed under. So it's consistent with what we saw this past fall for Roxborough Neighborhood Improvement District and last spring for Passyunk Avenue.

Very well. Thank you. 54 03/02/04 - RULES - BILL 040008

Any other questions from Members of the Committee? The Chair recognizes Councilman Cohen.

To what degree would this district be different from the Center City District?

Center City District, my understanding, was passed under a different Act which created a governmental authority. So Center City District is actually created as a governmental authority. In this particular case, this is a non-profit -- a neighborhood improvement district is a non-profit and so it has slightly different powers because it is not a governmental authority.

What effect does that difference play? Does it make the Chestnut Hill group stronger or weaker or is that not a calculation at all.

The main difference that I'm aware of between the two, between it 55 03/02/04 - RULES - BILL 040008 being an authority versus a non-profit --

I'm sorry, I'm having great difficulty hearing you.

I'm sorry. The main difference that I'm aware between an authority like the Center City District and Manayunk District, I believe, as opposed to the non-profit organization which we're proposing today is that Center City District has the authority itself to collect the taxes or to collect the assessment fees. Chestnut Hill would have to contract with somebody to collect those fees on its behalf.

I think I would --

Do you know what kind of group you would be required to use to collect taxes?

Actually, let me clarify. My understanding, and we've dealt with this very recently with Passyunk Avenue and with Roxborough, neighborhood improvement districts can assess and bill the special assessment under the district just like Center City District does. What they can't do because 56 03/02/04 - RULES - BILL 040008 they're not a government authority is lien the property if the assessment is not paid. The City would act as their agent to put the lien on the property. So that's the one difference. Center City District can actually lien property as a governmental authority.

Was there a reason for choosing one system rather than the other? I'd like to know the basis because I might have doubts as an individual in choosing the City to be my collection agency. The City has difficulty collecting itself and hires different agencies.

And it's our intention to do the assessment and collection ourselves within Chestnut Hill, to not rely upon the City. Basically, the new law enables non-profit organizations to be created whereas the old law, I believe, the only allowance was for authorities to be created. So it's a more flexible ability.

Do businesses have any different level of agreement or disagreement? 57 03/02/04 - RULES - BILL 040008 Are all businesses bound, say, if a majority of the businesses agree to this?

Yes.

That's very much like the downtown district.

Yes.

All right. I don't quite understand the reason for the differences if that's the only difference between the two is the one you state. But it's agree able to your folks?

Yes. To be a non-profit organization, yes.

Thank you. Thank you, Madam Chair.

You're welcome. The Chair recognizes Councilman Kelly.

I just have a quick question. You're relying on the enforcement of collecting these dues and the only enforcement you have, the only tool you have is a lien, is that correct, on the 58 03/02/04 - RULES - BILL 040008 property?

That's correct.

And you're relying on the City to place the lien.

We hope that we don't ever have to do that, Councilman. I think that, you know, it would be our hope that the property owners see the benefits of the business improvement district and that it doesn't get to that point.

And there's no 13 problem if there's new people coming in or some of the property owners, for instance, sell their property to someone else and someone else comes in and maybe has reluctance to pay these assessments?

Well, we would deal with that on an individual basis. But again, I'm hopeful that that won't occur.

Thank you.

The Chair again recognizes Councilman Cohen.

Were you given any statistics with respect to the experience 59 03/02/04 - RULES - BILL 040008 of the Center City District? Have they had to use their lien power?

Yes, they certainly have. And other neighborhood improvement districts have also wanted to pursue liens. It's not so much a question of whether they can get collected, because I think that we're all optimistic that property owners pay them. The concern generally is to encourage property owners to pay in a timely fashion because for very small organizations bike a neighborhood district, the cash flow a very important consideration. So it's a very small budget, relatively speaking, and if a business delays the payment by a year, that has a very negative impact on the ability of the neighborhood improvement district to provide the services to the community. So it's an enforcement tool. It's necessary that it be in place primarily to encourage property owners to pay promptly.

Let me switch for a moment to another question. 60 03/02/04 - RULES - BILL 040008 How do you see this bringing a change in Chestnut Hill activities? What are the improvements you expect to occur as a result of the passage of this bill?

If I might request, we have a number of speakers here who are prepared to testify in support of the bill and for a number of them their testimony will include the specific benefits that will be incurred to Chestnut Hill. So if might ask your indulgence to defer until their testimony and they would answer your questions.

Very good.

Thank you.

Any other questions from Members of the Committee? The Chair recognizes Councilwoman Miller.

I just want to thank the members of the community who have come down and also just draw attention to Members of this Committee. The Chestnut Business Improvement District Plan that has 61 03/02/04 - RULES - BILL 040008 lots of information about the whole process that's taking place. This is not something that just happened. This is something that actually came out of a retreat two years ago and there's been a Steering Committee working very, very hard on putting this plan together. Back in 1995, prior to me coming to City Council, I was President of a CDC that put together the Germantown Special Services District, and that was also one that was put together similar to the Center City District with the municipal authority. The neighborhood improvement districts are somewhat different. However, the whole goal is to improve the district. But the small neighborhood districts will never compete with Center City. I think Center City collects 8-plus million. Am I correct, Frank? And these districts might collect 300,000. So there's a vast difference between the smaller neighborhood services and the Center City. So I just wanted to make that statement. Thank you. 62 03/02/04 - RULES - BILL 040008

Any other questions or statements from Members of the Committee for the witnesses at the table? (No response.)

Seeing none, Mr. McPherson.

Marilyn Monaco is the next witness.

Good morning.

Good morning.

Kindly identify yourself for the record.

Madam President, Distinguished Members of the City Council, my name is Marilyn Monaco. I'm a lawyer, a partner in the law firm of Kelly Monaco & Naples, which is a small minority and female-owned firm in Chestnut Hill. We began our business in Chestnut Hill in 1993 and we have remained there continuously since that time. Joined the Business Association in 1995. I was elected to the Board of the 63 03/02/04 - RULES - BILL 040008 Chestnut Hill Business Association in 1999. In 2000, I was elected Vice President, and in 2001 I became President of the Association. The Association, which is the driving force behind the BID, was founded in 1956. And when I began President, there were approximately 125 retail and restaurant members and 85 professional cultural and community members. Eighty percent of the retail businesses were members. And since that time, those figures have gone up. The Business Association is governed by a Board of Trustees and currently has a staff of four. The offices are located in the Visitor's Center at 8426 Germantown Avenue. The work of the Business Association had traditionally been providing services to its members which included group marketing efforts, seminars on various issues of concern to business owners, and organizing public events, including two wildly popular street festivals which go on twice a year and on good-weather days attract up to 30,000 people. Let me give you a snapshot of the 64 03/02/04 - RULES - BILL 040008 business district. And some of the other witnesses will probably talk about more details of the district. Basically, the commercial district in Chestnut Hill is a 10-block area which adjoins Germantown Avenue. Some of the our members maintain businesses on adjoining blocks, Bethlehem Pike and some of the side streets. The business district is a eclectic mix of mostly small businesses, some of which are owner occupied. Some are even operated by third generation families. There are a fair amount of restaurants and a hardware store, banks, one grocery store, and a smattering of churches and community-owned buildings. Jenks Public School, which is an elementary school, sits squarely in the middle of the district. There are some chain stores. Borders is at the top of the hill. CVS and Staples are at the bottom. There is also the requisite Starbuck's, the N Express and Talbots. Germantown Avenue along which these businesses sit is a two-way street with parking in most parts along both sides of the street metered and non-metered. Other parking 65 03/02/04 - RULES - BILL 040008 is available and that will be discussed in more detail later. There are apartments in the second floors and third floors in some cases along the hill and homes on the Avenue. The Avenue is adjoined by a prosperous, thriving residential community. Chestnut Hill is a historic district, a garden district. It is generally thought to be well-preserved, albeit sketchily maintained. Faced with a growing number of problems that related to the viability of the business district, the Business Association restated its mission in 2001, to essentially take a more proactive role in ensuring the viability of our district. We pledged to equitably balance the needs of our members and perspective members with the history and tradition of Chestnut Hill. At the same time as the business association redefining its mission, the business owners invited a group of commercial property owners to a meeting in which we advised them of some of the serious problems facing the businesses in Chestnut Hill. Many 66 03/02/04 - RULES - BILL 040008 of our small businesses were experiencing a decline in customers because of the competition from malls and internet shopping. We invited professional business planners and business brokers to address the commercial property owners and to talk about what had to be done to offset the rather bleak forecasts for small community business districts like ours.

Their recommendation was come up with a strategic plan that everyone agreed upon and find money to implement it. We identified some obvious problems, that our customer base had changed, more young two-parent families who were both working were moving into the area. And in order to attract them as shoppers we, would have to attract more businesses to locate here and expand our hours of operation. We had to enlarge the available retail space and upgrade lighting and improve the cleanliness and overall appearance of the Avenue. Everyone agreed that we had all the raw material to work with, a beautiful, compact, accessible business district, a 67 03/02/04 - RULES - BILL 040008 well-organized and committed community and significant entrepreneurial spirit. As President, my rather ambitious goal was to come up with a strategic plan. We applied for an economic development grant from the State of Pennsylvania to conduct a retreat and invited the stakeholders in the community to come and talk about the trends that were affecting our business district. We hired a professional facilitator to focus the discussion. We knew that we had to reach out to the community and our institutions and talk to them about the state of the business district and pick their brains. In February 2002, Councilwoman Miller has already referred to this 62 Persons representing commercial property owners, business owners, community association representatives, near neighbors and institutions attended a half day retreat. The participants identified major trends and issues impacting the future of the business district. Among the issues identified were obsolete retail space and infrastructure, 68 03/02/04 - RULES - BILL 040008 changing demographics and decreased foot traffic. It was recommended that a smaller group continue this discuss and come up with specific available goals. A task force was formed and continued to meet for several years under the able direction of Chris Lane, a local business owner. That group conducted surveys of neighbors, store owners, and shoppers about their concerns and wish lists and talked about recommendations for the improvement of the physical appearance of the Avenue, the unification of the Avenue because the hill is separated by Jenks is often a different kind of service is given to the top and bottom of the hill, and I think you'll hear about that later on too, and a plan to fill the vacancies. Because we knew that we could not rely on a shrinking number of volunteers and public dollars, we determined to hire a full-time Executive Director of the Business Association and to explore the creation of a special services district. You've already met Suzanne Biemiller. She was hired in January of last 69 03/02/04 - RULES - BILL 040008 year. She will talk to you about the BID process that developed. But let me just end by saying that this has been a thoughtful, inclusive process by dedicated people who all have an investment in this community and who I think always try to look at the big picture and provide leadership and ideas about how to preserve the vitality of this district and community and it has been a pleasure working with them. Thank you, Madam President.

Thank you. Can you tell us what the vacancy rate is in the commercial district?

This is an estimate on my part and it has changed over the course of that time since I have been president, but I would say it's about percent of some of the 19 buildings along the Avenue. 20

It's a lot.

It is a lot, yes

Any questions or comments from Members of the Committee or any of the Councilmembers want to 70 03/02/04 - RULES - BILL 040008 ask any questions? (No response.)

Thank you so much for coming in. Your testimony was very interesting.

Thank you.

The next witness is Suzanne Biemiller.

Good morning again, Madam President.

Good morning. Please identify yourself again for the record.

By name is Suzanne Biemiller and I'm the Executive Director of the Chestnut Hill Business Association. It's an honor to be here this morning to testify on behalf of the proposed Chestnut Hill Business District. Before I begin my testimony, however, I would like to extend a thanks to Councilwoman Donna Reed Miller and her staff for all of their hard work on our behalf getting us to this point in time. 71 03/02/04 - RULES - BILL 040008 As Marilyn has described, a lot of work went on in the year prior to my joining the CHBA, the Chestnut Hill Business Association. My job in part over these past months has been to work with local property 7 owners and businesses and help them focus 8 their visions, hone their ideas, and create a 9 working framework for the Business Improvement 10 District. With the help of Larry Houston, an 11 internationally recognized expert on bids, the 12 Board of the CHBA established a Steering Committee last March that would direct the process and act as a sounding board for and generator of ideas. That Steering Committee was made up of a mosaic of property owners, large and small, from up and down the Avenue and along Bethlehem Pike. Merchants, restaurant owners, real estate brokers, community residents and institutional stakeholders all had a seat at the table. The Steering Committee held its first meeting last April. In May, we mailed a letter to all the affected property owners that explained what a business improvement 72 03/02/04 - RULES - BILL 040008 district was and why the CHBA Board had voted to explore creating one. That letter invited everyone to a public meeting at the library on May 28th. At that meeting, those present were given an overview of bids by Larry Houston and he then led the group through a discussion of what Chestnut Hill's greatest strengths and what its biggest problems and needs were. The group was asked to complete a survey which would then help the Steering Committee further define expressed priorities for the BID. Over the next three months, a number of activities took place. Small groups of property owners met to come up with a specific list of activities that they thought the BID should work on. These were presented at a second property owners meeting in early July. Again, every affected property owner received notice of this meeting and was able to add his own ideas to the list created by the smaller groups. Throughout that summer, the Steering Committee met frequently to hammer out a 73 03/02/04 - RULES - BILL 040008 specific list of activities and to assign dollars figures to them. These discussions were sometimes heated. Compromises were made. Some priorities were set aside as others were added. At every step, input was sought and received from other property owners who were not on the Steering Committee but whose opinions were certainly valued and important. A number of those conversations were with property owners located below Willow Grove Avenue, an area that has felt neglected in the past. In the end, the Steering Committee developed a set of activities that it believes will be a catalyst for economic growth and renewed vitality in the Chestnut Hill Business District. It also drew up boundaries for the BID, developed a set of bylaws that will help govern the new organization and establish the assessment rate. This information was presented at a public meeting held on September 24th. I should note that every public meeting held during the process was reported 74 03/02/04 - RULES - BILL 040008 on in the Chestnut Hill Local, our local community newspaper. In addition, the Business Association's monthly membership newsletter contained a number of stories about the BID over the past year. Certainly, it was important to the deliberations that everyone in the community be kept as informed as possible.

This open communication led to a unanimous endorsement of the BID by the Chestnut Hill Community Association and the Chestnut Hill Parking Foundation, not to mention support from non-profit organizations such as the Woodmere Art Museum, the Chestnut Hill Historical Society, the Seventh Day Adventist Church and the Christ Ascension Lutheran Church. In late October, the CHBA sent a copy of the BID business plan, which you all have in your hands, to every affected property owner by return receipt requested mail. That mail also asked interested property owners to submit their names if they wanted to serve on the Board. Thirteen people responded and six 75 03/02/04 - RULES - BILL 040008 were selected by the Steering Committee to form the nucleus of a new organization's board, and two of these board members, I should note, own property in the lower part of the hill below Willow Grove Avenue. I hope it is obvious to the members of the Rules Committee that a great deal of effort went into the planning of this BID. We solicited a lot of opinion and certainly received a great number unsolicited thoughts. From private conversations to public meetings, we heard many wonderful ideas about what Chestnut Hill needs. Why is this BID so important? As Marilyn mentioned, Chestnut Hill is changing. It's getting younger. New families are moving in. It's getting more diverse. And more often than not, women are working outside of the home. The core of community volunteers that used to help plant the flowers, pick up the litter, are just not out in as strong a force as they used to be. But we cannot afford to ignore our physical environment in Chestnut Hill. What messages does it send to 76 03/02/04 - RULES - BILL 040008 a customer when our business district has litter on it, the sidewalks are dirty or cracked, the street lights dim or in some cases leaning over? What sort of signage should direct people to our parking lots? How can we make the street safer? How can we fill our vacant stores with strong businesses that will bring more customers to Chestnut Hill? Because the fact is, our competition is not letting up. Internet shopping, discount stores and super malls have changed the face of retail. And at the same time, some of Philadelphia's other neighborhood business districts are getting stronger, including Mount Airy which I'll note was the subject of an article in today's Daily News recognizing its efforts to restore the economic vitality of this neighborhood. And Roxborough too is coming on strong, as are the nearby towns of Ambler and Doylestown. They all take shoppers away from Chestnut Hill. We can't afford to doing the things the way we've always done them. Our competition isn't standing still and neither should we. But 77 03/02/04 - RULES - BILL 040008 these efforts require sustainable financial resources. Voluntary contributions will not get the job done. They're too hard to raise year after year and extremely unreliable. The BID will provide us with a sustainable, steady stream of income that's equitable and ensures that there are no free riders and that small property owners will pay less than large owners. Finally, a personal note. I live in Chestnut Hill. My husband and I moved there four years ago and did so to no small degree because of the Germantown Avenue retail corridor. Chestnut Hill offered us a place where our daughters could walk to the library, could ride their bikes to get ice cream and where we could find Christmas presents for nearly everyone on our list. So it pains me with stores like The Gap leave as it did in December. And it bothers me when I see litter on our sidewalks. And when people say they don't like to come Chestnut Hill at night because they think it's unsafe, I worry. I have a personal stake in making sure that the 78 03/02/04 - RULES - BILL 040008 business district remains vibrant and relevant for years to come, and I believe that the BID is the tool to do that. Thank you.

Thank you. Any questions? The Chair recognizes Councilman Clarke.

Thank you, Madam President. Good morning. You referenced the public safety issue. I can recall, I guess, late last year during the middle of the year there was a rash of robberies.

In May.

Will this particular program hopefully with enhance security be in place? I know in Center City District we were able as a result of the substantive increase in resources based on the tax imposed in Center City hire essentially a police force that's dedicated solely to Center City. How will you be able to impact on security and safety issues up in the Chestnut 79 03/02/04 - RULES - BILL 040008 Hill area?

Someone will testify in greater detail in a little bit. But basically in three ways the Steering identified. One is actually hiring someone to be an on-street ambassador similar to the Center City District, so someone who's walking around not only cleaning up litter as he or she might see it but also acting as eyes and ears on the Avenue. Secondly, hopefully working with the City and the State to attract some dollars for improved lighting. The lighting that exists in Chestnut Hill now is over years old and 17 it's starting to age and isn't as bright as it 18 could be. 19

You should talk 20 Paul Levy about that. He's real good at 21 getting money for lighting. 22

Exactly, he's the 23 pro. 24 Thirdly, increasing the foot traffic 25 and really doing some concentrated efforts 80 03/02/04 - RULES - BILL 040008 both to get new stores that will attract customers to Chestnut Hill, but also to pay for some advertising campaigns that will bring people to Chestnut Hill at night and, hopefully, they too -- as you have more people on the Avenue, that's the best way I can think of to deter crime. But also to create stronger working partnerships with the police district, the District. The captain there 11 has been a wonderful friend to the community, 12 and we would like to continue relations with 13 him as well as pay for some private security 14 workshops for our members throughout the year.

So I assume that the revenue generated by the creation of this district will not allow you to hire an additional police officer or pay for some overtime to the Philadelphia Police Department?

No, no. We do support, and the community association certainly does, the two bicycle officers that are in the district now. Funds were raised to pay for their uniforms and I believe the 81 03/02/04 - RULES - BILL 040008 bicycles too, but not a private security force, no. 4

Thank you. Thank you, Madam President.

Thank you. The Chair recognizes Councilman Kelly.

As I read this bill, the properties that are going to be assessed for your services are all commercial; is that true?

That is correct.

Now, the proposed properties that are listed on and 9 of this bill, could you tell me if they're all occupied at this point?

All of them?

Yes.

There are some vacancies. I don't have the list in front of me. There are some vacancies on the lower -- on the street front that are noticeable. In terms of the apartments above, I couldn't say if they were occupied or unoccupied. 82 03/02/04 - RULES - BILL 040008

Now, the unoccupied properties, will they be assessed to the owners?

Yes.

In other words, regardless of whether they're occupied or not, they're going to be assessed?

That is correct.

Thank you.

Thank you. Any other questions or comments of Ms. Biemiller? (No response.)

Thank you so much for coming into testify.

The next witness is Sanjiv Jain.

My name is Sanjiv Jain, and I'm President of Chestnut Hill Real Estate. And I've been asked to testify about is one of the subcommittees that I co-chaired, and that was on strengthening the local economy. I have a strong passion for that because we've investigated quite a bit of 83 03/02/04 - RULES - BILL 040008 money in Chestnut Hill and really want to see and need to see that area thrive, otherwise our investment really doesn't work. My personal opinion is that if you can strengthen the local economy, to some degree everything gets fixed. If you've got more shops that are viable, if you have more shoppers, if you have more foot traffic, you have more revenue coming in, you have more tax dollars being spent there, you have people that are happy. No one gives up money out of their pocket when their shopping unless they're happy to do it. And the more you have that occurring, that means the happier people are. The property owners are happier because there's foot traffic, there's demand. If there's demand, there's more people that want to come in and be tenants. You don't have to go out and chase tenants if you've got traffic increasing. So all of those things lead to that. So we have identified a substantial amount of the budget for strengthening the local economy. And some of the things to 84 03/02/04 - RULES - BILL 040008 focus on are our welcome package for perspective businesses, a block and retail analysis, the business district development including demographic information, customer surveys, et cetera, to be included in the traffic; trying to really put programs together so we can have more unified store hours. Many of the shops are mom and pop shops, and I think if we've got basic business information, something as simple as, you know what, instead of opening up at 8:00 in the morning and closing 4:30, you may want to open up at 11 and be open until 7:00. But you can't do that anymore on a volunteer basis. I'm busy trying to grow my business. I'm happy to help my tenants because I have an vested interest and I dedicate as much time as I can outside of that. But if you have a business improvement district and a focus of theirs is to strengthen local economy, then you can provide that in a more professional organized manner. Sunday shopping trolley. And if 85 03/02/04 - RULES - BILL 040008 it's not a trolley, it's something else. Whether it's puppet shows, whatever, creating some type of entertainment, some way to pull people to Chestnut Hill. I've got a young daughter who's 7, 7 months old. And I can tell you, as she grows 8 up we're going to be looking for activities to do and spend time with her because we're busy working during the work, as I think many parents are. And the more that Chestnut Hill can provide an avenue for those people to come, we're happy to do it. There's that, and then upgrade the Chestnut Hill Business Association web site to include available properties along with doing business in Chestnut Hill information. The main focus is to strengthen local economy. My personal opinion is that we could increase that budget more and focus more on strengthening local economy, but as with everything else and as Suzanne and Marilyn have talked about, there's many, many discussions by many people with different opinions, and this is where we've ended up and 86 03/02/04 - RULES - BILL 040008 we're holding hands around it.

Let me ask a question, if I may. I know that you're looking for more activity particularly for the children on a Sunday. Are the shops open on Sunday?

Many are.

Are they?

Yes. I, last Sunday, took a couple photographs which I'm going to share with some shops that were closed. One was a fabulous photograph of six people standing outside -- I'm going to mess up the name -- it's Lemon something. The French Lemon who actually on that Sunday was closed, there were five people standing looking inside the window. In my opinion, they would have been willing to go in and shop. And the Avenue is bustling. This last Sunday, if you remember was the first nice weather day that we've had in a long time. And it was interesting, the shops that were open were doing fabulous; and the ones that weren't, weren't. But that's a real focus for trying 87 03/02/04 - RULES - BILL 040008 to get more open.

I know it truly distresses me. I know that in my district there is a commercial strip and should you drive down that street at 5:30 in the evening, just about every single solitary shop is closed.

As Councilmembers, when do you shop? You don't shop during the day; you shop in the evenings as well.

When are people supposed to really shop?

I completely agree with you. I've been real passionate --

But all of the people have to agree. And I know that that particular district has formed an organization. But everybody has to cooperate. I think they're talking now about trying to do something about the safety factor. People are afraid to go out if not all of the shops are open, if there's not a great deal of activity. So I think they're working that and I believe you are too, which I think is wonderful. 88 03/02/04 - RULES - BILL 040008

Thank you. A couple of the ideas that we've had -- because you bring up a great point, you have to have agreement around that. I pushed to see if there was some way we could legally require them to. I've been continuously told that we can't. But one of the ideas that was put out there was that we would provide gift certificates, just cash, 10 bucks or something and pass that out to people or direct mailer, however it is that it's communicated, and say that on this day from this hour to this hour you can use this at these shops. And the shops that would like to participate in that, you've got to be open to get it. And if you're open, great. It's hard cash that brings people in. And if you're not open, you don't. So it's that, it's influencing, it's people standing up and having testimony. Bruce Robertson who owns Robertson's says that after opening -- I know he's at least a second generation store there in Chestnut Hill and maybe longer than that. I'm a relatively new resident. And he says it's 89 03/02/04 - RULES - BILL 040008 the second busiest day. I think more shops that do that will find that. It's just being open when people want to spend money.

The Chair agrees. The Chair recognizes Councilwoman Miller.

I just wanted to add that a natural draw on Sundays, because I come up, are Borders and Staples on Sundays. And you know, Borders is pretty crowded and so is Staples. So people are coming up. If more of the stores were open, that would be the catalyst to stop and do some shopping other places. So I just wanted to add that those two places are definitely open on Sundays and definitely draws a good crowd. A number of shoppers are there.

Thank you. The Chair recognizes Councilwoman Brown.

Thank you for your testimony. You and I had a chance to have a sidebar about this, and I thank you for 90 03/02/04 - RULES - BILL 040008 that. T sounds like you've become a believer, in some ways a cheerleader. You've transformed from where you were to now. And you mentioned as one of the principal reasons for that is the value in strengthening the local economy. Can you tell us at what point that happened? Was there some defining moment, individual, or circumstance that said that this is the right way to go?

We were sharing a conversation earlier, and I said that at the first meeting I went to, it was actually the first time I met Suzanne Biemiller as well. And my quote was, "Are you prepared for violent opposition to this? I said, "There is no way that as property owners we want another tax." "Oh, it's not a tax." "Yes, it is. I don't need anymore taxes." I said, "I've got vacancies. I'm trying to fill them. I don't need anymore." So that's kind of where I was. I said, "I have not taken to picketing, I have 91 03/02/04 - RULES - BILL 040008 not taken to any of that before in my life." I said, "But if you want to do this, get ready. I will be out there knocking on every door and trying to get every person that I can." So that's how I started. Now, since then, I joined the Steering Committee. I'm a firm believer if you have a real problem with something, don't just sit and complain on the sidelines, get involved and sit at the table.

Bravo.

So I went to as many meetings -- every meeting that I'd find out about and go there. And I did join the Steering Committee as well. And then chaired the subcommittee on strengthening the local economy, and then since then have been elected to the Board for the business improvement district should it come about. I've shared with people that I wish there was an alternative way. But as I've understood it, it's really been on donations and volunteers that a lot of the stuff in Chestnut Hill's been successful. And many of 92 03/02/04 - RULES - BILL 040008 them, unfortunately, are passing on. And new folks don't automatically jump into that. You don't have stay-at-home second spouses that can volunteer most of their day to going and picking up trash and we don't have extra cash to donate it. And I would guess I'm not alone in that. But our community has thrived on that. So you still have a lot of business, and this is the hardest part that I had before kind of jumping on board and I still struggle with it, is that there are a lot of business that being assessed that I think do a fabulous job. Some of them keep their lots clean, they volunteer their time, they allow staff to volunteer time, they donate money, if there's assessment from Business Association, they give it, sometimes their checks are the first ones that come in, as I understand it. And to look some of those folks in the eye and say -- It's unfortunate that we can't say, "Oh, you've been great so you don't get assessed." And these other folks that have chosen not participate proactive -- I mean, they pay all their taxes for the most part and all that, 93 03/02/04 - RULES - BILL 040008 but those that have kind of sat on the sidelines and allowed all these other folks to do it, "We're just going to charge them." We can't do that. If we can, please enlighten me. That would be great. I think we could vote on who's participated and who hasn't. But since we can't, that means everyone does because everyone's going to benefit. What I've encouraged people that disagree as I did originally is, please get involved, come to the meetings. No one has ever been turned away. For the most part, it's communicated very well when and where these meetings are. And if not, you certainly know who some of us are and we make ourselves available. And still don't stop there. As people have disagreed, I said, tell us, your Board members what do you want us to do with this money? At the end of the day, the Board is represented by that group and we decide where the money goes with these guidelines and everything that we've outlined. So if you still disagree with something, it's never too late. Even after this. Come and tell us 94 03/02/04 - RULES - BILL 040008 where do you want us to spend the money, what do you want us to do. It's our money.

Is there a flat assessment fee or is it based on the size of the business?

It's a flat percentage based off the assessed value, not having any different way to do that. And we've gone back and forth with a bunch of different ideas that, you know, should the businesses as Councilman Kelly was asking that are vacant -- as property owners, I've got a property that's vacant. I'd love it if I don't have to pay. But you know what, I'm going to benefit. In fact, in some ways I might benefit more than somebody who's got a place, so I'm going to pay. We've gone back and forth with things, and because of the way that we're talking about spending the money, the flat assessment across the board seemed the fairest.

Thank you for your testimony. 95 03/02/04 - RULES - BILL 040008

Thank you. Any other questions or comments from Members from the Committee? (No response.)

Thank you very much

The next witness is Jane Dwyer.

I'd like to take a leave of absence and vote yes on all bills and amendments.

My name is Janine Dwyer representing my mother who's owned a building on Germantown Avenue, 8432 Germantown Avenue since 1932, and I am her to register the fact that she indeed wants you to vote no on this. She feels this is an offshoot of the business association due to the inability to enforce people to pay dues people. Technically, it's a separate organization but it is in favor in essence the same thing. She was the Secretary of the Chestnut Hill Business Association when it purchased its business in the 8400 block of Germantown, and 96 03/02/04 - RULES - BILL 040008 she was a volunteer at the time that the first employee was made a salaried person of the Business Association. She has seen the efforts of the original Business Association enlarge and the dues increase and the funds remain short, as is often the occurrence in organizations such as this which are non-profit and rely on volunteer monies. As a third generation, I pay $650 dues annually to the Business Association. Our building was subdivided, I'll say approximately 10 to 12 years ago, and the other tenant is also a dues-paying member of the Business Association. So from this one building, $1300 are already being accrued on behalf of the Business Association. I recognize that these dues do not meet all needs. But maybe the Board needs to recognize that too sometimes and not make expenditures. I don't mean to be negative because all of these people are my friends. I work with them. I am taking the opportunity, however, to express my mother's opinion. 97 03/02/04 - RULES - BILL 040008 In essence, she objects to paying the salaries of those people carrying out this plan. She believes in individual business, individual ownership rights, and she feels that those rights are in essence being violated in particular, as you said, hours of operation. You cannot tell somebody that their door must be open. I happen to be open and weeknights much later than many stores. I do recognize that many of my clients who are teachers come after 3:30 and working women come later than that who are not in a position to come in the afternoon. And I make myself available to those people. I am, however, closed on Saturday and Sunday. I have different in that my business is not the breadwinner of the family and I am in the rear of the property so I am not a storefront. The storefront is, however, open on Sundays. I would also like to say that aside from being a third generation, I am a dues-paying member of the Business Association. I am a former president of the 98 03/02/04 - RULES - BILL 040008 Chestnut Hill Community Association between 1999 and 2001. I served two terms within that time. I also live on the unit block of Germantown Avenue, the first block of the West Gravers Lane which has in the past objected to seven-day-a-week operations. And I do foresee the possibility as a near neighbor of that sort of thing increasing which does bring a lot of turmoil to the community. For the record, I would be curious to know at this point how many addresses are on the sheet, because I didn't feel it my responsibility to count. And I would like the record to be very certain what constitutes 51 percent of the vote. And lastly, , No. 12 and .03 refer to the sunset clause at the five year end and it is voted on, according to this, by the nine-member Board. My mother submits that in the event that this passes, she feels that this should be voted on by the entire list of addressees as stated in the original document and not by nine members, knowing how boards such as this do begin to 99 03/02/04 - RULES - BILL 040008 take on a life of their own and that we have a tendency to say "Next year we'll be better. Next year we'll be better." Thank you.

I'm sorry, do you own a property and your mother owns --

My mother owns the property. I am a rent paying --

Okay. I didn't know whether your mother owned a property and you also owned a property.

No. 14

Thank you. The Chair recognizes Councilman Kelly.

I just have a question. On both of those properties you mentioned you are paying dues.

No, I am paying -- there is one property involved, 8432. I am located in the rear. There is a storefront business, and we both pay dues to the Business Association.

You both pay? 100 03/02/04 - RULES - BILL 040008

Yes. Separately. I pay $650. I do not know if all dues are the same. I don't know. I've never asked.

So it's $1300; is that correct?

From that one building, yes. And in my mother's case, it would be an additional $700 a month which she would indeed pass on to her tenants in some fashion. Although she did say that she feels responsibility to at least incur a portion of that as an owner of the property.

How much more would she have to pay?

$700. UNIDENTIFIED SPEAKER: A year or a month?

A year. UNIDENTIFIED SPEAKER: Okay. You say a month.

Well, you pay taxes a year, so it would be the yearly assessment.

So currently she's paying $650 a year? 101 03/02/04 - RULES - BILL 040008

Currently, her tenants are paying the dues to the Business Association.

So would it be an additional $50 more or is it $700?

Oh, I haven't done that math, and I stink at math.

You don't how much more it would cost if this bill were to pass?

I would be $700 dollar on -- the annual assessment for my mother would be $700 which she would tack on to her two tenants, I guess, in the form of $300 a piece per year through the rent. It is not a large amount when put that way. But it will go that way. And her rents are not at all the largest in the community because she lives there, she works there. So we're talking a different amount of money to people who are paying rents to investors, for instance.

Any questions? Why don't you just sit there a 102 03/02/04 - RULES - BILL 040008 minute please. Would Suzanne Biemiller please approach the table and perhaps you can answer some of Ms. Dwyer's questions, if you will.

I fell like the absentee student who didn't hear the question when the teacher asked it. I was, unfortunately, out. If you could repeat the question, I hopefully would be able to answer them.

Would you please repeat your question?

Well, I guess I would like to know at this time exactly how many addresses are voting members? I think that that needs to be on the record.

How many properties are located within the Business Improvement District?

Yes.

My list has 206 individual properties listed.

And so 51 percent of that will be? 103 03/02/04 - RULES - BILL 040008

A hundred and four.

I just wanted that on the record. I don't recall there being another question.

I think there was a point of fact, though, that I did want to clarify. The sunset provision of this, it's a five-year sunset provision. At that time, the entire 206 properties would again be asked to evaluate the Business Improvement District. It wouldn't be a Board decision at that point. It goes back to all of the property owners. MS DWYER: And they actually will vote on this?

In the same way that it's done this time around.

Well, I would say that it is not clearly written that way because it simply states at 203 -- well, there's 3.06 as well, a proposed budget, "majority vote of members at an annual meeting."

Those are two separate things.

Here it is. I have it. 104 03/02/04 - RULES - BILL 040008 "Dissolution. The Board of Directors shall vote to dissolve the corporation." That, to me, is separate from members. So I would recommend that that be changed to members.

This is part of the bylaws, not part of the law itself. That's what you're referring to.

I am referring to this specifically.

They're in the bylaws.

Right.

Thank you.

Thank you.

Our next witness.

Our next witness is Jean and Stan Baum.

My name is Jean Baum. My husband, Stanley. I own a property on Germantown Avenue, 8224 Germantown Avenue. We don't live there.

I'm sorry. 105 03/02/04 - RULES - BILL 040008 I don't mean to interrupt you. Could you simply pull the microphone closer to you?

Yes.

Thank you.

We don't live at 8224 Germantown Avenue, but we do live in Chestnut Hill. And in a way, coming here to object to our inclusion in this plan makes me feel like I'm against apple pie and motherhood. We own a very small house that has two one-bedroom apartments on Germantown Avenue. The issue that you raised immediately, Madam Chair, is the one that came to my mind as soon as I read it. We're called a commercial property when we have two small one-bedroom apartments that has a limit as to how much rent we can charge because by lease and also what the market will bear. And it's zoned residential. That was something that you raised, sir. It's zoned residential, it's not zoned commercial. In reviewing this final plan, I looked over some of the elements that were there, and none of them refer to anything that 106 03/02/04 - RULES - BILL 040008 would be of any benefit to me. It's a small house, as I said. We don't have problems renting it, but here in 4A there's $46,000 item for "Marketing services to fill stores with strong merchants, the creation of professional marketing materials that include demographic information, the development of working partnerships with local commercial Realtors, business promotion strategies." I don't run that kind of business. Then the next item says $68,500 for security, parking, and circulation. The security is provided by the City Police Department, and that certainly should be adequate. We know it's not very often, but I don't think that's going to significantly influence this property that I own. Parking services, circulation, it simply has no bearing on the small property that I own. Now, this is a residential property that's surrounded by commercial properties. I think it may be the only residential property on the block. Maybe there's another one that 107 03/02/04 - RULES - BILL 040008 has an upstairs residential. The appearance, I can't see anything that's going to improve the appearance of the block of we are, of the property that we have. We are taking care of it ourselves. We had a porch that rotted. As we speak here, there's a carpenter out there correcting that or improving it. And the administration, for us to have to contribute to $75,000 fee for administration for items that we don't need seems foolish. And I have another question in these Rules, in 11, and maybe somebody can answer this from the business association. Well, somebody said the only fair way to assess people in this district is to assess the property values. This is a business district. You have some people making a lot of money. They will be charged on their real estate taxes. We don't make a lot of money. We make very little money in our property. We will be assessed on the real estate tax on the property instead of the amount of money that's 108 03/02/04 - RULES - BILL 040008 brought in. Now, if you bear with me, there was -- yes, I had a question here. Item on 5 , it says, "The negative vote of at 6 least 51 percent of the property owners within 7 the district" -- and this I don't understand, 8 it then says, "-- or property owners within 9 the district whose property valuation as 10 assessed for taxable purposes amount to 51 11 percent of the total property valuation." 12 Now which one is it? Is it 1 person 13 one vote? This is like the Electoral College, 14 some people's vote seems to be more valuable than others. Which is it? Can I have some clarification about that?

As we read it, it does say, "If 51 percent of property owners object or if owners of 51 percent or more of the total property valuation in the district object, the district cannot go forward." And I don't think there is anywhere near 51 percent of objection one way or the other. It's either or. 109 03/02/04 - RULES - BILL 040008

I still don't understand it. I don't understand if I object what I have to do to go out and get people to support my point of view. Do I have to go out and get the people who own a certain amount of property or do I have to get 51 of the property owners?

It would be either or.

Then that's two standards. It doesn't make sense because it's two standards. So it's like a line in the sand, it keeps on moving depending upon who's winning.

I think the answer is either or to the original question. You made some comments after that --

Do you understand my question, though. It doesn't make sense. It should be one or the other. It can't be both.

That is State law and that's what we're going to abide by.

That is State law? 110 03/02/04 - RULES - BILL 040008

It's state law.

Yes.

Does the State law say you have to elect one or the other, or you can have both standards? Because they're two different standards.

If my memory serves me correctly at, the time of the creation of the -- I think it was NIMBE (ph) at that particular time. Personally, I had some concerns raised about it required 51 of the individuals to be opposed and, frankly speaking, it should have been 51 percent should be able to create the zone, but it was the State, the State law. The State law passed, and we find ourselves having to confirm with the State Law.

Is there a citation or something?

There's an actual bill that was done. I think it was actually initiated in the Senate. And if you'd like, if the Chair is okay with it, we 111 03/02/04 - RULES - BILL 040008 could probably get a copy of that bill so you can look at that.

Okay. Well, it just seems to me with the structure -- and I certainly am in favor of improving the business environment in Chestnut Hill. It's a wonderful community to live in and I've enjoyed living there these, what, 28 years. It's a wonderful community. And I was head of the Street Tree Committee to try to save the trees on our street, so we are involved. It's an involved community. But I think in this particular case, people like us will be financing the big businesses at the top of the hill because I stand to gain nothing by this. I rent two small apartments. There's not one item here that will improve my ability to rent my apartments or to even raise the rent except when the lease is at the end of its term.

Ma'am, with you a part of any Steering Committee discussions?

I went to one meeting, yes.

You raised those 112 03/02/04 - RULES - BILL 040008 concerns at that meeting.

Well, it was an informational meeting. I was getting the information.

I guess my question is, was there an opportunity for you to raise the concerns that you are now raising.

It was my impression that this was the opportunity to do that. Is that incorrect?

Well, ultimately. But my understand, based on the testimony that I'm hearing -- I was not involved prior to today. But my understanding that this was a long process that actually culminated in a plan that came as a result of that long process.

Well, in reading the Chestnut Hill Local, it was my impression that this is where I come here and raise my objections.

That is in fact true. Fortunately, in this particular case 113 03/02/04 - RULES - BILL 040008 there was a process that included the community and the business corridor to a large extent, which more often not is not done. In this particular case, I'm glad that there was a process before it came to Council. But I raise that question to find out if, in fact, you had an opportunity to voice your concern about some of the specifics of this particular legislation.

As I said, Councilman, it was my impression that this was the forum where I raise the issue.

It is, it is.

The Chair recognizes Councilman Cohen.

To the witness who raises an interesting question, but isn't the health of the business community what increases the value of your apartments and makes the community a better community? I raise that because areas where businesses have gone out of business or where the areas struggle are usually not described as good places to live in. So that while the 114 03/02/04 - RULES - BILL 040008 benefit is not direct to you, don't you benefit in general a way by the health of the community?

I certainly do that, sir. As a resident of that community, I do that. I want -- and I'm not against BID. I'm just against it for my small house in addition to the business privilege tax and all the other taxes that happen. It doesn't make sense to tax a small residential. It's even zoned residential, it's not zoned commercial.

But I was Chairman of the Rules Committee at the time we passed the first Center City District. And one of the questions that was raised at that time was, should there been a method of excluding businesses or private residences like your own? The difficulty is it then offers an inviting effort for everybody to try to get out of paying taxes. And it was felt that it created an almost impossible burden for the community organization to overcome. And I think, therefore, the decision was in that case that while there may be some 115 03/02/04 - RULES - BILL 040008 apparent injustices, really the only way was to have sort of a tax applicable, once there were 51 percent that agreed, then that tax had to be applicable -- a tax or assessment had to be applicable to everybody or else it won't work. So I think you've got to sort of accept if this passes that that's part of the price of enabling yourself to stay in this community. It may be seem unfair to you and maybe is, but apparently it's the only way like a tax system which cannot permit exemptions for what may be laudable purposes. But if I were you, I would maybe hire a lawyer to find out is it 51 percent supply, whether it's the value of the properties or the number of people who are part of the plan and decide whether or not your objections are so important to you that it's your worth your effort to try to prevent this from happening. You have a legitimate case, it's just that we find often when we have to pass something applicable to lots of people, there are inevitably cases where there 116 03/02/04 - RULES - BILL 040008 are some injustices. Yours sounds like one because the bill obviously relates to more larger businesses. Yours happens to be an exceptional case. I don't know whether that helps or hurts your argument. But it's what smaller interests have to deal with. When some passes covering everybody, it's awfully difficult for the mechanism to permit exemptions for individual cases. But if I were you, I would continue to argue it and maybe at some point the community organization will find a way assist you. Perhaps there could be differentiation the amount of tax paid instead of the regular figure or ultimately you will come to recognize you are getting benefits even though it doesn't seem you're getting them directly. That's an effort on my part to explain what I went through in deciding whether or not, when the first district came up with it, whether it was worth supporting. Because there are good features and there's some that raise questions like you raise. 117 03/02/04 - RULES - BILL 040008 Overall, I finally decided to support the notion. And I think this shows that Chestnut Hill has spent, as Chestnut Hill always have, lots of time discussing every conceivable end and coming together not with a perfect plan because there is no such thing, but with a plan that does offer an approach to dealing with some of the problems Chestnut Hill has which enable Chestnut Hill to become an even stronger group. Everybody else in the City looks to way in which Chestnut Hill has always had its own government in addition to the City of Philadelphia. The community association has often played the role of a quiet hidden government setting forth the proper ways that it believes people ought to act and often people accept it, sometimes they don't. In this case, despite the what appears to you to be the unfairness, it seems to me the overwhelming case is support this arrangement while you continue your argument with others and maybe at some point you'll convince them. Thank you. 118 03/02/04 - RULES - BILL 040008

Mrs. Baum, thank you for coming in, and your objection certainly is noted. Mr. Baum, are you interested in testifying?

No. I think my wife certainly expressed my views as well. I have some questions. One question relates to whether we raised this before. We did raise it, and the response was, Well, the Community Association will help us get our property zoned commercial. That's not a response. We don't have a commercial, we have a residential property. The other question is really one of more of interest. In reading the Chestnut Hill Local these last many years, we get an impression that there are a lot of real estate properties in Chestnut Hill, especially also on the Avenue, that are arrear in their taxes. Now, since the City is going to be responsible for collecting this as compared to some of these improvement districts, how are you going to handle that? What if someone doesn't pay 119 03/02/04 - RULES - BILL 040008 their taxes? Will you then settle only for the real estate tax, will you settle for the real estate tax plus this improvement tax? I mean, of the 200-some-odd properties, do you have any idea how many of these properties are in arrears.

Suzanne, I wish you would come to the witness table. Didn't you indicate that the City would not be collecting this?

Yes, I did. The non-profit organization itself would collect the assessment separately from the City real estate taxes.

But what if the individual property owner decides they're not going to pay it?

We have one mechanism in the bylaws that if an individual property owner has chosen not to pay his or her assessment that that individual would not be a member in good standing, would not be able to sit on the Board of Directors and make policy decisions of the BID; and then 120 03/02/04 - RULES - BILL 040008 secondly, that the lien process, we would take the lien process for the City as others have done. But again, as I said earlier, we're hoping that that won't ever be the case.

I just want to say, I'm not against apple pie, I'm not against motherhood. And the issue that you raised initially is the issue that continues to trouble me. And, yes, I will take your advice and we'll see if I decide to go further.

Thank you very much. We appreciate your attendance. Our next witness.

The next witness is Reverend Maxine Maddox Dornneman.

Good afternoon, Reverend. REV. DORNNEMAN: Thank you, Madam President and esteemed Council. I will be very brief. I am presently serving as the President of the Chestnut Hill Community Association, and I could spend much time telling you about the beauty of Chestnut Hill and what we're doing and why we are. But we 121 03/02/04 - RULES - BILL 040008 are essentially an integrated community in that we have homes, as you've can just heard, along the Avenue as well as businesses along some of the side streets. So it is our effort certainly with Tom Ivory and Suzanne and the staff of the Community Association that we clarify our goals and pull together and work together. We have done much in leveraging our resources with beautification along the Avenue, helping with getting bicycle policemen and working together and staying in dialog. So when the BID came up, I asked Tom Ivory on two different occasions to come to the Executive Committee to meet with community leaders and then to the full Board. And on two different occasions, he did that were many, many questions to keep the community leaders informed, the Community Association leaders informed. What I would like to share with you today is that the Community Association Board voted unanimously to support this process because it was felt that it was taking us in 122 03/02/04 - RULES - BILL 040008 the right direction, that it was going to help us get those things that we've been unable to address, parking lots and the general appearance of the community, of the Germantown business district, it would take us in the right direction, and as a community we support that and would like to see this effort go forward. So that's what I'd like to share with you today.

Thank you very much. Any questions or comments from Members of the Committee? (No response.)

Seeing none, I would ask Mr. McPherson to please call the next witness.

The next witness is Robert Blain.

My name is Robert Blain. I own a property 7904-06 Germantown Avenue which is in a business district. I also own a number single family houses in the neighborhood as rental properties. 123 03/02/04 - RULES - BILL 040008 First, let me just quote Tom Ivory when he saw me earlier day. He said, "The great thing about Chestnut Hill is that we all care no matter which side we're on. " My objections -- and I do object to the business improvement district. I do think that they are totally unsolvable. But basically my objections come down to a few very small things. Most of the benefits -- I've heard a lot of benefits about a lot of things they intend to do. Most of these seem to be able to be accomplished without paying anymore money. They do not cost money. They do not cost money to try to get street lights from the City. It does not cost money to try to have property owners or store owners stay open. There is no way that you can enforce that. So based on what they've accomplished and what has been accomplished, like they were talking about Robertson's staying open on Sunday, these things do not cost money or should not cost tax money. " There is only so far you can go in increasing rents to pay for assessments or anything else. And what they're talking about is not an insubstantial amount of money. It's percent of your assessment, 1/8 of your 10 assessment. 11 And the next thing is the 12 distribution of the benefits. Now, you've heard something about the top of the hill, the bottom of the hill, residential, non-residential. Chestnut Hill is basically more than one neighborhood commercially. Like somebody said, Jenks separates it, somebody said Willow Grove separates it. There are a number of different areas. But a large percentage of this budget is targeted towards the top of the hill. Now, if the top of the hill is not successful, it does hurt everybody. But there is -- and I don't want to go into details, but there is monies to improve the parking lots. There are no 125 03/02/04 - RULES - BILL 040008 parking lots in the lower part of the hill. They are very concentrated in a small area above Jenks School. They talk about street fairs. There are no street fairs ever below Willow Grove Avenue. That's where they put the barricades. They talk about other aspects in here, and the Representation, the Representation is a business association which I believe is primarily -- the membership is concentrated towards the top of the hill. And of the nine-person Board, there's one person for the parking lots, two people for the business association. Again, it is a skew which is vaguely reminiscent of all of the argument heard in this Council Chamber between Center City and the neighborhoods. The next thing is vacancies. Chestnut Hill is unique. One property owner, one business own a fairly large percentage of the properties. The vacancies in just a small run this morning and not a scientific study, I went from the lower part of the hill which is 126 03/02/04 - RULES - BILL 040008 Cresheim Ave. up to only Hartwell which is only a small distance. Of the six properties I saw vacant, they're all owned by the same owner. Whatever his business reasons, and that is his business, that is what the vacancies are. There are very few people who have vacancies other than one person's business. Of that percent, I don't know 10 how much of that is represented by this one 11 owner, but I am sure that it's over 80 percent 12 of that 20 percent. 13 Talking about communicating, most of 14 the communication -- now, I talk to a lot of 15 my near neighbors down below Willow Grove 16 Avenue. A few of them were here, a few are 17 here now, a few of them can't come here. 18 These are basically property owners that had 19 businesses who were very ill-informed about 20 this. There was a comment that in May they sent out notifications. Up until then, property owners were not individually notified.

It was up to them and if they were not members of the Business Association or if they did not read the Local, and the Local was 127 03/02/04 - RULES - BILL 040008 never about meetings, then they were totally uninformed. There was no reach-out to these type of owners. I know four of them who own between them probably about nine properties all in the lower part of the hill. Other than that, that's pretty much it. It's just that there is a distinct feeling amongst a lot of owners that they were not part of it. And again, I think that not all these are insurmountable problems. But as it is constituted now with the membership now and the way it was formed, it is extremely flawed. I thank you.

Thank you very much. Any questions or comments of this witness? (No response.)

Thank you. Our next witness.

The next witness is John Levitties.

Good 128 03/02/04 - RULES - BILL 040008 afternoon. Please identify yourself for the record.

Madam President, esteemed Members of Council, my name is John Levitties. I am presently the Vice President of the Business Association. I sat on the Steering Committee for the Business Improvement District. I've been elected to the Board of the proposed Business Improvement District. I have a business in Chestnut Hill on West Gravers Lane about a hundred feet off Germantown Avenue that would be included in that district, and I'm the owner of the building which it occupies. The heart of Chestnut Hill is Germantown Avenue. I don't think that there's any disputing that. Intimate public spaces abound on the Avenue from the War Memorial at the bottom of the hill through the Meditation Park at the top. Wide sidewalks invite people to stroll. Cars rumble by on cobblestone streets. Street trees shade passersby. The pedestrian scale and rhythm of the small store fronts are comforting and encourage shopping. 129 03/02/04 - RULES - BILL 040008 It's not an accident. As a community over the last 100 or 125 years, Chestnut Hill has worked very hard to maintain these assets and to develop others in accordance with them. The population, as it grew, provided a vibrant pool of volunteers for planting tree wells, for staffing community association committees, shopkeepers swept the sidewalks in front of their stores, they planted flowers and such. Unfortunately, we've come to a time in which the energies available to pursue these interests are increasingly limited. More people work long hours. There are divergent, many divergent worthy causes which attract volunteer hours and volunteer dollars, and Chestnut Hill can no longer rally rely on as we can see day-to-day the energies of volunteers for its maintenance. An example, Chestnut Hill has in the winter if you drive up the street lights in the trees that went on about five years ago. They cost $25,000. And at the time the funds came from the Business Association from some monies raised among the businesses and 3 or 130 03/02/04 - RULES - BILL 040008 $4,000 that were donated by the Community Association. Everybody adored the lights; visitors, businesses. I think that it contributed a lot to the atmosphere in the evenings, particularly during the holiday shopping season. Within two years, the lights needed restoration. They weather outside. Trucks and buses hit them as they drive past. $20,000 was needed. That $20,000 came in part from the Business Association but $12,000 from the residents of Chestnut Hill. It was absolutely startling. Another two years have passed. The lights now need restoration again. Is the Business Association able to go to the residents of Chestnut to raise another $12,000? And can we continue to do this every couple of years? It begins to pose a real problem. We tax those energies that people want contribute the energies and dollars. And I think that we have to be careful. For these reasons, we've come to the point where we need a properly staffed and well organized agency, both to direct the 131 03/02/04 - RULES - BILL 040008 civic minded energies and to compliment them with professional expertise and a properly funded, stable and sustainable budget. Many of these services are offered by the City and they're much appreciated, but of necessity the City cast a rather wide net with regard to services. So that the City picks up trash in Chestnut Hill on Germantown Avenue several times a week, but it simply does not have the staff to sweep the sidewalks on a weekly or even semi-weekly basis. We need new street lights in Chestnut Hill. You heard testimony. These are our street lights, and I can offer those to Members if they'd like to see them. They're in deplorable condition, and the City has recognized this problem and is willing to install new street lights. These are the street lights that it's willing to install because these are the lights that the City has.

These will be replacing Victorian Era, at least in appearance, lights that tribute a lot to the atmosphere Germantown Avenue. What we're asking for today is an 132 03/02/04 - RULES - BILL 040008 opportunity to contribute to the money and the energy provided by the City to improve Chestnut Hill. Many of us, most of us I dare say, stand ready and willing to do so. And those from whom you've heard who are opposed, oppose not an idea but in light of the fact that they are uncomfortable with the additional tax or concern that monies would not be distributed evenly. We've gone to great lengths to ensure that this plan does distribute the funds evenly.

Excuse me. The gentleman that last testified, his area will also be covered?

Yes. Chestnut Hill is roughly divided in half at Willow Grove Avenue between an upper and lower hill. There are a greater concentration of commercial enterprises at the top of the hill. And the concern is that, for that reason, it will receive the bulk of the attention from the Business Improvement District. Well, in fact, there is, for example, $50,000 in our initial budget which 133 03/02/04 - RULES - BILL 040008 is dedicated to physical appearance. That $50,000 is designed to pay for a public space cleaner and community representative about which Suzanne testified earlier who will clean the entire Avenue from top to bottom, all 7 blocks, plus the half blocks on either side 8 and the two blocks at Bethlehem Pike that are 9 involved. 10 Advocating with the Design Review Committee, paying for staff time to work with the Community Association's Design Review Committee with respect to businesses that want to come to Chestnut Hill. One of the things which we know is that we do talk a lot in Chestnut Hill and, hopefully, the result is productive, however, the process can be onerous and we'd like to work to improve that process and make it more welcoming to businesses. The street tree programs and the trees run up and down Germantown Avenue. The pocket parks, and they run up and down Germantown Avenue maintaining and planting those parks. Zoning for projecting signs 134 03/02/04 - RULES - BILL 040008 which is something that many businesses want, it requires activity advocacy. I have no idea where it will go. But, again, it benefits both businesses at the bottom and at the top of the hill equally. As goes Germantown Avenue, so goes Chestnut Hill. Anything which is of benefit to the business district ultimately benefits the entire district. I pay taxes for police. I don't have an officer standing outside my house, but I do know that my property value is reliant in some sense in the fact that Philadelphia is a relatively safe City. I look at the Business Improvement District in much of say. My business lies a half a block off the Avenue. As I said, in the building that I own there are no street trees on that block, there are no lights on that block. When the sidewalks are swept, they'll sweep mine, but many of these direct projects mean very little to me in particular. I do believe that when my clients come to Chestnut Hill, seeing a clean, safe, stable 135 03/02/04 - RULES - BILL 040008 Chestnut Hill with shoppers on the streets at hours that are convenient makes a great deal of difference both to me as a business owner and to me as a property owner should I wish to lease the building at sometime. Thank you.

Thank you very much. Any questions or comments from Members of the Committee? (No response.)

Thank you again. Our next witness.

Anne McNally.

And who is after Ms. McNally?

Ivory.

Is Mr. Ivory here?

Good afternoon. My name Anne McNally, and my family has owned a business in Chestnut Hill for over 80 years. And as fate would have it, my great 136 03/02/04 - RULES - BILL 040008 grandfather lived in Port Richmond but drove the Trolley and would complain to his wife 4 all the time that there was no place to get a 5 cup of coffee or a doughnut or some kind of 6 lunch. So in 1921, his wife Rose and her 7 three sons opened McNally's located in the 8 8600 block of Germantown Avenue. 9 As history would repeat itself, 10 McNally's has had to re-invent itself over the 11 years, as has Chestnut Hill. But McNally's 12 has done it to thrive and to continue the 13 business in Chestnut Hill. We went from a bar 14 that served mostly locals to a fashion in 15 place in the '60s when things were renovated 16 to a non-smoking bar in the '90s. 17 As any business, whether it's in 18 Chestnut Hill or anywhere, has to re-invent 19 itself. And that's what we're talking about 20 Chestnut Hill doing right now, is thriving in 21 the City of Philadelphia. 22 I was a member of the BID Steering 23 Committee, and I chaired the subcommittee on security, parking and on circulation. I'm also a board members of the Chestnut Hill 137 03/02/04 - RULES - BILL 040008 Parking Foundation which manages nine shopper parking lots in Chestnut Hill. The BID Steering Committee felt very strongly that the parking lots operated by the Parking Foundation are an important asset to the business district. While many are have convenient and inexpensive parking for their customers, Chestnut Hill has a system already in place. Often times these lots give customers their first impression of Chestnut Hill, but unfortunately, the Parking Foundation has not had the resources in recent years to maintain them at the levels they should be. Therefore, the Steering Committee agreed that the parking lot should be placed within the boundaries of the proposed Business Improvement District and would be cleaned regularly by the same people who will clean the sidewalks in the district. In addition, many of the lots need to be repaved, as you can see in these photos. And they need new huts for the lot attendants and improved lighting so the lots are not as, I guess, dark in the evening. 138 03/02/04 - RULES - BILL 040008 McNally's happens to have an awful lot of evening business, and it's important that our lots be well lit, clean, and so that people feel safe. The BID would help the with will cost associated with the projects. The BID should work with the Parking Foundation and outside parking experts to examine the current Parking Foundation system and to develop a set of recommendations that would put us on solid financial footing, determine current future parking requirements and determine how those needs might be met. The BID Steering Committee also believes that the Business District needed to develop a stronger partnership with the City Police. With a permanent BID Committee devoted to this and regular meetings scheduled with precinct officers, the BID would also pay for annual security workshops and for merchant and employees in the district to attend. Clearer and more helpful signs are needed to orient shoppers in Chestnut Hill. The current system does not help shoppers find parking, learn where various shops are, or 139 03/02/04 - RULES - BILL 040008 restaurants are located. As other community BIDs have done, the Chestnut Hill BID would develop a new signage program in the business district. Finally, Chestnut Hill, as any community will never have 100 percent consensus. But as I look around this room 9 today, I've noticed many of my neighbors, first, second, third and, as myself, fourth generations. It's time for us to reinvest in our community. My family supports the Business Improvement District, and my sister has just purchased a commercial building in the hopes of continuing to do business in Chestnut Hill and, most importantly, in Philadelphia. Thank you.

Thank you. I'm rather curious. Who owns the park lots?

Mostly by the commercial property owners. It's land that backs up onto them. Some are residential properties, though. One parking lot can be owned by anyone as well like a land owner. It 140 03/02/04 - RULES - BILL 040008 could be as little as one or as many as eight or nine different buildings that contribute to make one parking lot. And those people also pay the real estate taxes on the lots.

Thank you. Any other questions or comments? (No response.)

Thank you very much. Our next witness.

Is Mr. Tom Ivory.

Good afternoon. Thank you for your patience. Please identify yourself for the record.

My name is Tom Ivory, I'm the current President of the Chestnut Hill Business Association and also the Co-Chairman of the neighborhood improvement district for which we're before you today. Thank you, Madam President and distinguished Members of Council, and especially Councilwoman Miller and her staff for all your help and my colleagues pro and con. I have some prepared remarks that 141 03/02/04 - RULES - BILL 040008 I'd like to read. Over two years ago, a group of concerned Chestnut Hill business owners, residents, property owners, community leaders and institutions convened to discuss the future of the Chestnut Hill Business District. A task force was established which recommended the establishment of a neighborhood improvement district. Last March, the Chestnut Hill Business Association Board of Directors voted to establish a business improvement district in Chestnut Hill. The Business Association Board created a Steering Committee composed of a cross-section of community leaders and business and property owners, large and small, upper hill, lower hill, and charged the Steering Committee with the task of creating a business and a two-year operating budget for the Chestnut Hill Neighborhood Improvement District. This task was to reflect the vision produced at a series of public community meetings. A common theme prevailed at these meetings. That theme was a profound love and concern for Chestnut Hill. 142 03/02/04 - RULES - BILL 040008 Through discussion, agreement, disagreement and compromise rose a shared vision for Chestnut Hill. This vision included a fully occupied prosperous business district with a healthy mix of retail from one end of the hill to the other; a clean, safe shopping district with ample parking in well-lighted lots in good repair; a professional marketing program that drives customers and businesses to Chestnut Hill and identifies our position as a vibrant shopping district; helpful cohesive signage, continued beautification of the Avenue, and Sunday hours; a unified more powerful voice in government concerning our affairs; an environment where businesses, residents, and institutions forge a common bond, a business community united in its mission to succeed, not to divided and destined to fail. Today, we take a major step in making our shared vision a reality. Thank you for taking the time to hear us today. All we ask is that you please help us help ourselves by supporting the 143 03/02/04 - RULES - BILL 040008 Chestnut Hill Neighborhood Improvement District. Thank you.

Thank you. Are there questions or comments from any Members of the Committee? (No response.)

Thank you again, sir. Our next witness.

I have no other names.

Do we have anyone else to testify? Please approach the witness table. Good afternoon. Kindly identify yourself for the record.

My name is Bill 19 Shepherd (ph). And I put my name on a piece of paper early, but I guess it got lost. It was kind of like my invitation to listen to these people, some of them. I've owned property in Chestnut Hill for 20 years, and every year I'm proud to say I responded to my community when they've 144 03/02/04 - RULES - BILL 040008 needed help of some kind. My wife and I moved here in the early '80s, and without really knowing what we were doing, we established a residence in the lower hill. It wasn't until years later that we found that there was an upper hill. I like the upper hill; nice bars, good restaurants. I love Anne McNally, lover her father, mother. But we also found out that the lower hill sometimes is seen as an out-land and not really needing the kinds of things that the upper hill needs to stay alive. Periodically, I've seen efforts over the past years by various Committee to 16 include the lower hill, to try and make the 17 merchants like myself feel as though we are 18 part of the whole Chestnut Hill family. And 19 as any resident or merchant in the lower 20 hill -- and there are several in the audience -- will tell you, it hasn't really done it. Anytime that I've seen efforts to improve Chestnut Hill, those benefits have always accrued to the retail merchants in the 145 03/02/04 - RULES - BILL 040008 upper hill. In this respect, this present BID initiative is no different, in my opinion. I sort of have to comment on the final plan. I see the final plan is made up from a cost standpoint the list of proposed improvements and services, and they talk about marketing, business attraction strategies. These are pretty grandiose words that are sometimes difficult for an engineer to get his mind around. And after going through them all, I have to say that the costs attached to doing some of these things are, at best, whimsical, in my mind. There is no attempt made to describe what it is the services we want to buy. We've gone out for bids from competent people who can supply those needs. None of that occurs anywhere in here. And part of the difficulty, in my mind, is the fact that when you add up these guesstimates of what it's going to take to beautify Chestnut Hill, you come to a total that when you do the arithmetic backwards means a 12 percent increase in my City taxes. And I can go 146 03/02/04 - RULES - BILL 040008 through these same items in Exhibit A and probably get the same job done for half the money. And I don't have any fear about doing that because I see that stuff that gets put together like this is, at best, guesstimates to begin with. And secondarily, they're tossing things in here that really, in my opinion, shouldn't be tossed in. As far as street cleaner is concerned, there's a pretty straightforward thing. We can find lots of folks out there more than capable of doing those kinds of jobs, including parking lot. Extend holiday lights down Bethlehem Pike, also a no-brainer. Advocate rezoning where necessary. I really didn't realize that advocating had a cost attached to it. Work proactively with the DRC. Same category. Street tree program, maintain flowers. Again, the same guys that sweep the streets can plant the flowers, pull the weeds, water, do whatever. 147 03/02/04 - RULES - BILL 040008 Sidewalks snow removal. It's like sweeping the sidewalk. I think there's probably legislation in place that says the person that owns that property has five hours after a snowfall to get it cleaned. It looks like a little duplication there. Strengthen the local economy is also a catch-all sort of deal. And how you could go through some of these things and end up with a price tag of $46,000, that's kind of smoke and mirrors, in my mind. And I'll tell you my impression and my opinion after living there for years is 16 that if the vacant stores in Chestnut Hill had 17 merchants of them of almost any stripe, that 18 brings back to life the things that these 19 people are looking for in the BID process.

20 Fill the stores, that's all. Half of these problems are going to disappear when that happens. The stores haven't been filled for Lord knows what reasons. But I think that in approaching the problem of how to rejuvenate Chestnut Hill, you can't just sprinkle money 148 03/02/04 - RULES - BILL 040008 on the top of Chestnut Hill and expect a new Chestnut Hill to grow from that. It isn't going to happen. You've got to get the property owners who are wrapping their vacant stores in brown paper to open those stores up and get some life inside there. I've been a guy here for years, 9 in that time, I've been President of the 10 Business Association for a couple of terms. I 11 served on the Board of the Senior Center. And 12 during the trash collection of 1980 and 13 something, I took the back seats out of my van 14 and went up and down Germantown Avenue to pick 15 up bags of trash. I hired a couple of guys to 16 help me. The bags broke a lot of times. We 17 had to repack, which is kind of messy business 18 especially with a guy had no prior experience. 19 My heart is in Chestnut Hill, but I 20 have great deal of difficulty sometimes in separating upper from lower hill, number 1. And getting some sense and sensibility out of proposals when cost numbers seem to be pulled from there. Show me some backup for these 149 03/02/04 - RULES - BILL 040008 numbers, and I'm probably going back the Committee. Failing that, I could do this same job for one quarter of the funds; I swear I could. But the way the plan seems to be put together, the final result which determines my taxes could either be twice this amount, half this amount or any fraction you want to make it and you wouldn't have to change a word of the dialog. It's all guess work. I've never had the opportunity to speak before Council, and sometimes when I read the Inquirer, I don't always agree with the decisions are made, but I sure have to congratulate you guys on your endurance. Great job.

Mr. Shepherd, I just want to applaud you for your interest and certainly for your community involvement. And I know that you apparently had a great deal of expertise in helping this community. Do you go to the meetings that have been held? Do you offer your suggestions? Because I think that you have some very good 150 03/02/04 - RULES - BILL 040008 suggestions that could probably be used. Do you get involved? I just thought it was in my district. And I will tell you, and it really doesn't relate to this, but in one of my areas we have an community that is called "the forgot bottom." And that's what this puts me in mind up. And I remember having a meeting one evening and I invited police captain to the meeting, and he said, "Oh, my heavens, I never knew that this area even existed. We never get a call of complaint or a call request." But that put me in mind of the up the hill and down the hill. But I think that you're there, you're in business, you've been involved, and I think your ideas, as I said, are really very good ones. And you're genuine. I can tell. You're genuine. And I think it would very, very sad if you did not join with the community to give them your ideas on how you can best improve what is being offered today. I think you should do that, I really do. I think your heart is in 151 03/02/04 - RULES - BILL 040008 the right place. I think you've been there, you've done that and you could do better and you do could do get better for community. Any questions or comments? (No response.)

Do we have any other witnesses that would like to testify? (No response.)

Mr. Shepherd, thank you again. The Chair recognizes Councilwoman Miller.

Thank you, Madam President. I just want to thank everyone for coming in, pro or con. This is what makes a community work, dialog, people meeting, planning. And I think that the Business Improvement District will be for the good of the neighborhood. And business strips, if there's a community that has a business district, then that's the life blood, life line of a neighborhood. Chestnut Hill is a good neighborhood. And I've worked in other 152 03/02/04 - RULES - BILL 040008 business districts too where this part of the district say they don't get what the other part gets. And we're all unique in all that we offer. So I would, again, like to thank you for coming in. And we are going to amend the bill and we'll be talking to you about that a little later on. Thank you.

Since we have no further witnesses to testify, this will conclude the public hearing of the Committee on Rules. I'm sorry, Councilman Cohen wants to be recognized.

I wanted to join with Councilwoman Miller in congratulating the community of the Chestnut Hill. I think both the community and Councilwoman Miller deserve a lot of credit for putting this idea together. It seems very thoughtful. I also wanted to support President Verna's statement that it would be important for people who have different ideas to come to meetings, raise the questions. Discussion is always good, and the results will be better. 153 03/02/04 - RULES - BILL 040008 But no plan will ever be perfect because we're human beings and we never do perfect things. But by your continued participation, I think Chestnut Hill will continue to be a leader among communities in having its own form of direct government. I think one of the greatest things of Chestnut Hill has been the way in which it has maintained the interest of the people. And I hope this techniques devised by Councilwoman Miller and the community will prove as successful as all other techniques have had. I've enjoyed this hearing very much. And I wanted to speak because I'm the other Councilman from the 8th District. And I know what's going to be good for Chestnut Hill is going to be good for the whole City. Thank you.

Thank you, Councilman. Mr. Chapman, I understand you want to make a statement?

Thank you, Madam 154 03/02/04 - RULES - BILL 040008 President. I neglected to mention this as part of my testimony earlier on Bill 040007, but as you know, Councilwoman Krajewski was not able to be at the hearing today and she asked me to ask the Committee if it would consider a suspension of the Rules on that bill.

Thank you. And you will be in touch with the gentleman that testified earlier?

Yes, we will.

Thank you. This concludes our public hearing. - - - - 155 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON RULES - - - - Tuesday, March 2, 2004 - - - - Public meeting conducted by the Committee on Rules, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 040007, 040008, 040024, 040029, 040030, 040066. PRESENT: COUNCIL PRESIDENT VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCILMAN JACK KELLY COUNCILMAN JAMES KENNEY COUNCILMAN RICHARD MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN BRIAN O'NEILL COUNCILWOMAN BLONDELL REYNOLDS BROWN 156 03/02/04 - RULES - PUBLIC MEETING

We will now go into our public meeting. I indicated earlier that 040024 is being continued until March the 23rd at 6 o'clock at the request of the sponsor. 7 At this time the Chair recognizes 8 Councilman Clarke for a motion on Bill No. 9 040066. 10

Thank you, Madam President. I make a motion that Bill No. 12 040066 be reported out of Committee with a favorable recommendation

Do I hear a second. (Duly seconded.)

It has been moved and seconded that Bill No. 040066 be reported out of Committee with a favorable recommendation. All in favor will signify by saying aye. (Aye.)

Those opposed? 157 03/02/04 - RULES - PUBLIC MEETING (No response.)

The ayes have it, and the motion carries. The Chair recognizes Councilman O'Neill regarding Bill No. 040029.

Madam President, I move that Bill No. 040029 be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Bill No. 040029 be reported out of Committee with a favorable recommendation. All in favor will signify by saying aye. (Aye.)

Those opposed? (No response.)

The ayes have it, and the motion carries. Again, the Chair recognizes Councilman O'Neill regarding Bill No. 040030. 158 03/02/04 - RULES - PUBLIC MEETING

Madam President, I move that Bill 040030 be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Bill No. 040030 be reported out of Committee with a favorable recommendation. All in favor will say aye. (Aye.)

Those oppose? (No response.)

The ayes have it, and the motion carries. The Chair recognizes Councilman Clarke regarding Bill No. 040007.

Thank you, Madam President. I make a motion that Bill No. 22 040007 be reported out of Committee with a favorable recommendation, and a request for suspension of the Rules as to allow reading at the next Session. 159 03/02/04 - RULES - PUBLIC MEETING (Duly seconded.)

It has been moved and seconded that Bill No. 040007 be reported out of Committee with a favorable recommendation, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next Council Session. All in favor will say aye. (Aye.)

Those oppose? (No response.)

The ayes have it, and the motion carries. The Chair recognizes Miller regarding Bill No. 040008.

Thank you, Madam President. I'd like to submit an amendment for Bill No. 040008. Are you going to read it into the record?

I believe Members of the Committee have received a copy.

Yes, all 160 03/02/04 - RULES - PUBLIC MEETING members have received a copy.

Is there any need to read the amendment into the record since everybody has a copy? I don't think that's necessary. Thank you.

Thank you. So therefore, I move the adoption of the amendment. (Duly seconded.)

It has been moved and seconded that the amendment be adopted. All in favor will say aye. (Aye.)

Those oppose? (No response.)

The ayes have it. The motion carries.

I move that Bill 040008, as amended, be reported out of this Committee with a favorable recommendation and that the Rules of Council be suspended so 161 03/02/04 - RULES - PUBLIC MEETING as to permit first reading at our next Session. (Duly seconded.)

It has been moved and seconded that Bill No. 040008 be reported out of Committee with a favorable recommendation, as amended, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next Session of Council. All in favor will say aye. (Aye.)

Those oppose? (No response.)

The ayes have it. The motion carries. This concludes our public meeting. Thank you all very much. (Council adjourned at 1:25 p.m.) - - - - 162 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of March 2, 2004, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON RULES _________________________ Lisa C. Bradley, RPR