COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON COMMERCE AND3 ECONOMIC DEVELOPMENT4 5 6 Room 400, City Hall7 Philadelphia, Pennsylvania Wednesday, June 1, 20118 1:20 p.m. 9 10 PRESENT: COUNCILMAN W. WILSON GOODE, JR., CHAIR11 COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DiCICCO12 COUNCILMAN BILL GREEN COUNCILMAN CURTIS JONES, JR.13 14 BILL 110370 - An ordinance adopting an15 Amendment to Section V of the Articles of Incorporation of the Philadelphia Authority16 for Industrial Development by increasing the Authority's term of existence to a date fifty17 years from the date of approval of Articles of Amendment by the Secretary of the18 Commonwealth... 19 - - -20 21 22 23 24 25 2 1
Good2 afternoon. This hearing is called to3 order. This is a public hearing of the4 Commerce and Economic Development5 Committee on Bill No. 110370. My name is6 W. Wilson Goode, Jr., Chair of the7 Committee.8 I note that a quorum is9 present. To my left is Darrell Clarke,10 Councilman Bill Green, Councilman Frank11 DiCicco.12 The title of Bill No. 110370,13 adopting an Amendment to Section V of the14 Articles of Incorporation of the15 Philadelphia Authority for Industrial16 Development by increasing the Authority's17 term of existence to a date fifty years18 from the date of approval of Articles of19 Amendment by the Secretary of the20 Commonwealth, under certain terms and21 conditions.22 Our first and only witness is23 Duane Bumb.24 (Witnesses approached witness25 3 6/1/11 - COMMERCE - BILL 1103701 table.)2
Please state3 your name for the record and proceed with4 your testimony.5
Good afternoon,6 Chairman Goode, members of the Committee.7 My name is Duane Bumb, Senior Deputy8 Director of Commerce. I'm joined here by9 Sam Rhoads and Paul Deegan from the10 Philadelphia Authority for Industrial11 Development, and I'm here today to12 testify in support of Bill No. 110370.13 This bill amends Section V of14 the Articles of Incorporation of the15 Philadelphia Authority for Industrial16 Development, or PAID, by increasing the17 Authority's term of existence to a date18 fifty years from the date of approval of19 the Articles of Amendment by the20 Secretary of the Commonwealth.21 The City created PAID for a22 50-year term by ordinance in 1967 to23 finance and implement economic24 development projects in the City,25 4 6/1/11 - COMMERCE - BILL 1103701 pursuant to the State Economic2 Development Financing Law of 1967. The3 State Act provides that the term of PAID4 cannot exceed 50 years.5 The original expiration date of6 the Authority's term was 2017, so in7 1991, City Council approved the extension8 of the term to the year 2041. As of this9 year, the remaining term will become less10 than 30 years. This makes it impossible11 to issue bonds for 30 or more years or12 enter into agreements, including leases,13 with terms of 30 years.14 This seriously impacts the15 ability of the City to implement16 financings and other economic development17 projects through PAID. In the last ten18 years alone, PAID has approved over 4.619 billion of financing for projects in20 every area of the City. These projects21 include manufacturing, cultural,22 educational and healthcare facilities to23 serve and employ the citizens of24 Philadelphia.25 5 6/1/11 - COMMERCE - BILL 1103701 PAID has also, at the request2 of the City, entered into numerous3 important long-term leases and agreements4 to implement the job and5 investment-creating projects critical to6 the economic well-being of the City.7 Unless the existing term of the8 Authority is extended, the City will be9 increasingly hampered in its efforts to10 attract and create new jobs and11 investments for its citizens.12 This concludes my testimony. I13 ask that the Committee report this bill14 out with a favorable recommendation and15 with a recommendation that the rules of16 Council be suspended to permit first17 reading at the next regularly scheduled18 meeting of the whole Council.19 Thank you for the opportunity20 to testify, and we would be happy to21 answer any questions you might have.22
Thank you23 for your testimony, Mr. Bumb.24 Let me note for the record25 6 6/1/11 - COMMERCE - BILL 1103701 we've been joined by Councilman Curtis2 Jones as well.3 Are there questions from4 members of the Committee?5 (No response.)6
Seeing none,7 we will move from -- is there anyone else8 to testify?9 (No response.)10
Seeing none,11 we will move from our public hearing into12 a public meeting to consider Bill No.13 110370.14 The Chair recognizes Councilman15 Green for a motion on Bill No. 110370.16
Thank you,17 Mr. Chairman. I move that Bill No.18 110370 be reported out of this Committee19 with a favorable recommendation and with20 a suspension of the rules so that this21 may be read at our next meeting of22 Council.23 (Duly seconded.)24
All in25 7 6/1/11 - COMMERCE - BILL 1103701 favor?2 (Aye.)3
Bill No.7 110370 is reported out of the Committee8 with a favorable recommendation and9 suspension of the rules to allow first10 reading at our next Council session.11 This concludes our public12 meeting. Thank you very much.13 (Committee on Commerce and14 Economic Development concluded at 1:3015 p.m.)16 - - -17 18 19 20 21 22 23 24 25 8 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on June 1, 2011, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25