COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 696, City Hall Philadelphia, Pennsylvania Wednesday, September 11, 2002 1:21 p.m. - - - BILL 020378 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire by condemnation or by purchase in lieu of condemnation fee simple title to a parcel of real estate with any improvements situated thereon located at 8400 Executive Avenue and any other real property interests in such parcel, under certain terms and conditions. - - - PRESENT: COUNCILMAN JAMES F. KENNEY, Chair COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 020378 PAGE KENNETH SIPOS, Public Property .............. TOM CHAPMAN, Planning Commission ............ CRAIG LORD, ESQ., Mrs. Ressler's ............ 3 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378
Good afternoon, ladies and gentlemen. Sorry for the delay. The Committee of Public Property and Public Works is now in session to hear testimony on Bill 020378, which is an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire by condemnation or by purchase in lieu of condemnation fee simple title to a parcel of real estate with any improvements situated thereon located at 8400 Executive Avenue and any other real property interests in such parcel, under certain terms and conditions. Mr. Sipos from Public Property, please identify for the record and proceed.
Chairman Kenney and members of the Committee on Public Property and Public Works. My name is Ken Sipos, and I work in the Department of Public Property. I'm testifying on behalf of Commissioner Andres Perez, Jr. I'm here today to testify in support of Bill 020378, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to acquire by condemnation or by purchase in lieu of condemnation fee simple title to a parcel of real 4 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 estate with any improvements situated thereon located at 8400 Executive Avenue and any other real property interests in such parcel, under certain terms and conditions. The Department supports this measure for airport expansion. Accordingly, I respectfully ask that the Committee approve the bill. I also ask the rules be suspended so the ordinance may be passed upon the Second Reading of Council. Thank you. I'll be happy to answer any questions you may have, and I defer further testimony to Charles Isdell, Airport Director.
Thank you very much. Any questions for Mr. Sipos? Seeing none, Mr. Chapman, please.
Good afternoon, Mr. Chairman and members of the Committee. For the City Planning Commission, my name is Tom Chapman. This bill is actually scheduled to be considered by the Planning Commission at its meeting of September 17th, and at that time it is the intent of the staff to recommend that the Commission approve this bill. We believe that this bill is a good deal for the City. It's consistent with the zoning of the 5 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 property and also consistent with previous uses of the property and uses in the vicinity of this property. And accordingly for those reasons, we would recommend that the Commission approve this bill. Thank you.
Thank you very much. Any questions for Mr. Chapman? Seeing none, Mr. Isdell, please.
Good afternoon, Mr. Chairman and members of the Committee on Public Property and Public Works. My name is Charles Isdell, Director of Aviation for the City of Philadelphia. I'm pleased to appear before you today to testify in support of Bill No. 020378. This bill will authorize the City of Philadelphia through its Department of Commerce, Division of Aviation, and the Department of Public Property to acquire approximately 8 acres of real property and 108,000 square feet of building located at 8400 Execute Avenue within the limits of Philadelphia Pennsylvania. This property is owned by Sara Lee Corporation, and the facility thereon was used as a meat processing plant by Ball Park Franks Company. The City and Sara Lee Corporation 6 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 entered into a sales agreement for this property on June 28th. The sales agreement is expressly subject to passage of Bill 020378. The property will be acquired by negotiated purchase for $2.4 million. The purchase price will be paid with moneys from the Aviation Fund with no General Fund impact. The property is located on Executive Avenue directly across from the newly constructed fixed based operation which is Atlantic Aviation and our new Runway 8-26. The airport requires this property for future expansion. The site will play a strategic role with respect to the airport's master plan which is currently in progress. This proposed land acquisition is consistent with departmental policy and federal aviation regulations and is included in the airport's six-year capital program. I understand that the staff of the City Planning Commission, as already mentioned, will recommend this transaction to the Commission which will consider the matter at a public hearing scheduled for September 17. The City, through its Department of Commerce, Division of Aviation, intends to utilize the property in the near term by leasing the land 7 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 and building thereon to Mrs. Ressler's Food Products Company for seven years. Mrs. Ressler's is a family-owned business which has been in existence since 1954. Mrs. Ressler's original plant located at 1617 North Second Street burned down last year. Had it not been for the availability of this property, which, by the way, is the only property within the City limits that has USDA certification at this time, had it not been for the availability of this property, Mrs. Ressler's intended to relocate its business outside the City limits. Mrs. Ressler's will employ approximately 75 to 100 individuals, keeping those jobs inside the City and contributing approximately $40,000 in annual real estate taxes. Representatives from the Airport, Commerce Department, Ms. Ressler's, and Eastwick PAC, Eastwick Project Area Committee, met to discuss the move of Mrs. Ressler's into this area. Eastwick PAC supports both the airport's acquisition 8400 Execute Avenue and also supports leasing the property to Mrs. Ressler's. I have with me today letters of support from Maggie Powell, the Executive Director of the Eastwick pac. For the reasons and benefits described 8 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 above, the airport requires this property for its future airport expansion. In the meantime and incidental to the primary intended airport use of the property, the airport intends to lease the property to enhance our revenues and support economic development of the City. I greatly appreciate the opportunity to speak to you today in support of this bill and will be happy to answer any questions that you may have.
Thank you very much for your testimony. Does the seven-year lease indicate that the airport expansion will be at least seven years or more away?
The expansion, I think, in that particular part of the airport property will probably be that far away. The actual term of the lease is not finalized yet. Mrs. Ressler's has asked for seven years, but we believe that in or about that time frame, our time frame for air field development is probably five to ten years, roughly, so seven years is not in conflict with that.
Thank you. Councilmember Nutter. 9 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378
Thank you, Mr. Chairman. Mr. Isdell, I just really have a couple questions that are more in the category of just having some information on the record. And I certainly plan to support the proposal. Just a couple items. One, a slightly different version of the question as asked by the Chair. Your testimony indicates that this proposed land acquisition is consistent with your policy and is included in the airport's six-year capital program. What do you mean by that? You had money set aside in the six-year program already for acquisition of this property?
Yes, for acquisition of properties and parcels in the general vicinity of this particular parcel as well.
And who is going to work with Mrs. Ressler's with regard to what sounds like now a future relocation in about seven years? Obviously, we would like to still keep them in the City. What are we doing in the meantime to ensure that they have what is in essence a new place to go. 10 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378
The Department of Commerce and Commerce Director Jim Curoto and specifically Duane Bumb, his deputy, have been the point-persons for this economic development aspect of this transaction. And I believe it is their intention to follow-up during the term of the lease that we're talking about to make sure that we keep Mrs. Ressler's inside the City limits long-term.
And, again, just for the record, there have been -- in some of these land acquisitions there have been some questions raised with regard to the price. I'm not questioning the price. It is what it is. Was there an appraisal done of this particular property?
Are you at liberty to say what the appraisal amount was or are you at liberty to say whether this purchase price is the same as the appraisal, more than the appraisal, or less than the appraisal?
The purchase price is less than the appraisal. We have the appraisal with us and we would like, if necessary, to share it with you privately rather than as part of the public 11 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 record.
I understand that. I do not need to see the appraisal; I just needed the answer that you gave. I appreciate it. Thank you.
Thank you, Mr. Chairman. Mr. Isdell, maybe you can help me recollect. For the record, I'm fairly confident that the question I'm going to ask you there is no 13 connection, but I just want to be assured. I remember either at a hearing or during the budget process, we were going to do a deal down at Scott and that deal didn't come together and we lost a significant deposit on that transaction. There's no 18 connection between this deal and that deal?
Absolutely no connection. And the deposit involved in this agreement of sale is fully refundable in the event that we do not get Council approval for the purchase.
Great. I just wanted to make sure that this wasn't a resurrection of that other deal that fell apart. 12 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378
Thank you very much. Any other questions for Mr. Isdell? Councilmember Clarke.
Thank you, Mr. Chairman. I just want to ask a quick question with respect to Mrs. Ressler's business. The 75 to 100 individuals, are they currently employed? Will there be additional employees created as a result of the expansion or the additional use of this land?
I am not exactly sure. My understanding was that's approximately the number of the people that were working at the plant that burned down, and therefore, approximately this same number will work in the new location. But Mrs. Ressler's does have representatives here today who could answer that question specifically. Should we have them come to the mike?
Is there anyone here from Ressler's? Your Honor, please identify yourself for the record.
Good afternoon. My name is 13 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 Craig Lord. I'm an attorney here for Mrs. Ressler's and Mrs. Ressler herself is sitting here in the front row with me. The number of 75 to 80 people is what was employed at Mrs. Ressler's immediately before the fire on June 5th. This facility will enable them to reemploy those people and expand the employment. The estimates are somewhere in the 80 to 100 people range. So those are the facts with respect to your question, Councilman Clarke.
Have we calculated the wage tax associated with the site? I see we have a number for annual real estate taxes.
We have not, but I'm sure it's considerably in excess of the real estate tax number you were given with 80 employees.
I don't know if that would be the responsibility of the City or whomever. I'd just like to calculate the wage tax associated.
We can calculate that and 14 9/11/02 - PUBLIC PROPERTY AND PUBLIC WORKS - 020378 supply it to you, Councilman.
Thank you very much. Any other questions for this witness? Is there anyone else in the room here left to testify to this bill? Seeing none, we will first thank Mrs. Ressler for staying. Thank you for staying in the City. We appreciate your continued confidence in the City. Thank you. That will conclude our public hearing. (Public hearing concluded.) - - - 15 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Wednesday, September 11, 2002 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 696, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL 020378 - - - PRESENT: COUNCILMAN JAMES F. KENNEY, Chair COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - 16 9/11/02 - PUBLIC MEETING - BILL NO. 020378
We will now convene a public meeting. The Chair recognizes Councilman Nutter for a motion on Bill No. 020378.
Thank you, Mr. Chairman, I move that Bill 020378 be reported out of this Committee with a favorable recommendation, and a further request for a suspension of the rules so as to permit First Reading at our next session. (Duly seconded.)
There are none opposed. Bill No. 020378 reported out this Committee favorably. A request will be made for rules suspension to allow for First Reading at our next Council session. That concludes the business of the Public Property Committee. Thank you for your attendance. (Council adjourned at 1:33 p.m.) 17 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 September 11, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF PUBLIC PROPERTY AND PUBLIC WORKS ___________________________ Lisa C. Bradley, RPR and Notary Public