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Minutes

Committee Hearing, June 15, 2005

Philadelphia City Council Committee HearingsJun 15, 2005

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 15, 2005, 11:35 a.m. Bill 050575 - An Ordinance authorizing the Commissioner of Public Property, on behalf of The City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 4508 Chestnut Street, under certain terms and conditions. BILL 050576 - An Ordinance authorizing the Commissioner of Public Property, on behalf of The City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 6901 Woodland Avenue, under certain terms and conditions. PRESENT: COUNCILMAN DARRELL L. CLARKE COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO COUNCILWOMAN JANNIE L. BLACKWELL V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 2 6/15/05 - Bills 050575 & 76 - Public Property

Councilman Clarke

Good morning. COMMISSIONER SCHLOTTERBECK: Good morning.

Councilman Clarke

We are convening the Committee on Public Property and Public Works public hearing. Will the clerk please read the title of the first bill.

The Clerk

Bill No. 050575, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 4508 Chestnut Street, under certain terms and conditions.

Councilman Clarke

Let the record reflect we have a quorum. We have Councilwoman Tasco, Councilwoman Miller, Councilman Ramos and Councilwoman Blackwell. Please proceed. COMMISSIONER SCHLOTTERBECK: Yes. Good morning. Before we begin, I'd like to introduce as an amendment to the original 3 6/15/05 - Bills 050575 & 76 - Public Property bill the proposed lease. You have that document in front of you, I believe.

Councilman Clarke

Yes. COMMISSIONER SCHLOTTERBECK: Proposed lease/terms and conditions. Good morning, Chairman Clarke and other members of the Committee on Public Property and Public Works. My name is Joan Schlotterbeck. I am the Commissioner of the Department of Public Property. I am here today representing the Department to testify in support of Bill No. 050575 --

Councilman Clarke

Excuse me, Commissioner. We have the letter, but I don't think we have the lease. We have the letter referencing the lease. COMMISSIONER SCHLOTTERBECK: It's a letter of intent for the lease, the terms and conditions, yes.

Councilman Clarke

Letter of intent, okay. COMMISSIONER SCHLOTTERBECK: My apologies. I called it a proposed lease because that's the subject in the line. 4 6/15/05 - Bills 050575 & 76 - Public Property

Councilman Clarke

Fine. COMMISSIONER SCHLOTTERBECK: An ordinance authorizing me as Public Property Commissioner, on behalf of the City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 4508 Chestnut Street, under certain terms and conditions. This bill will permit the City to lease space located at 4508 Chestnut for use by the City's Office of Emergency Shelter Services. The Department supports this measure, and, accordingly, I respectfully request that City Council approve Bill No. 17 050575. Thank you. I'm here for any questions you may have, and joining me is Deputy Managing Director Robert Hess.

Councilman Clarke

Thank you. Mr. Hess, do you have any testimony? DEPUTY DIRECTOR HESS: Mr. Chairman, thank you for the opportunity to appear before you on this bill today. I would 5 6/15/05 - Bills 050575 & 76 - Public Property just say that this is the culmination of a year-long effort to find a replacement facility for the Luther Settlement House that you may recall had the steeple collapse tragically last August, and so we're very pleased to support and present this to you today.

Councilman Clarke

Thank you. Any questions of these witnesses by members of the committee? (No response.)

Councilman Clarke

Anyone else to testify on this bill? DEPUTY DIRECTOR HESS: I think there are a couple folks that want to testify.

Councilman Clarke

Yes. Please come forward. MR. McGILL: Hi. My name is Bill McGill, resident of 4428 Chestnut. I'm Block Captain of the 4400 block of Chestnut, which is the block adjoining it. I've also been active in the Sansom Street Coalition, which represents the 4400 and 4500 blocks of Sansom Street. The 4500 block of Sansom 6 6/15/05 - Bills 050575 & 76 - Public Property Street is immediately behind this structure. The 4500 block of Sansom Street is currently under renovation by the Partnership CDC for market-rate properties, which they expect to sell in the $400,000 range.

Councilman Clarke

Is that the group headed by Blane Stoddard? MR. McGILL: Yes. There are two groups active. Blane's is one of the groups and I don't recall the other group's name offhand. But at any rate, the $400,000 price tag that they expect to receive for those properties is going to be directly impacted by backing up on a homeless shelter. The neighborhood already is inundated with homeless shelters. We have -- I don't recall the number, but there are quite a few in the form of Travelers Aid Society and a variety of others in the neighborhood that have been subject of comments, questions and concerns from the Spruce Hill organization through the Sansom Street Coalition and others. So we are not in favor of this 7 6/15/05 - Bills 050575 & 76 - Public Property facility being used as a homeless shelter.

Councilman Clarke

I'm assuming there's been some sort of public discussion in the community? MR. McGILL: As much public discussion as there has been here. The only notice that anyone in the community has received was the fact that one of the neighbors happened to have read this bill in Wednesday's Inquirer last week and mentioned it to people. To date, nobody knows anything about it. The Partnership does not know anything about it. The real estate agents in the neighborhood do not know anything about it. The Spruce Hill Community Association does not know anything about it. Calls to Councilwoman Blackwell's office have not been returned. The people who supposedly know about it have all been on vacation or out. There has been no public discussion by anyone about this operation. It was vehemently opposed when the idea was first proposed over a year ago, and right at the moment, West Catholic, which is directly 8 6/15/05 - Bills 050575 & 76 - Public Property across the street from this facility, is undergoing a change of presidents. The current president has left literally as of today. The new president will take over on July 1st. So to us in the community, this looks very much like the City is trying to pull a fast one again.

Councilman Clarke

Okay. Let the record reflect that Councilman Rizzo has joined the committee meeting. Councilwoman Blackwell.

Councilwoman Blackwell

Thank you, Mr. Chairman. I do not know about this gentleman or anybody calling me. I'm in the 4400 block of Chestnut Street every morning at quarter to 6:00. Every morning I'm there. Certainly it is not our practice and given our commitment to the community, we would never be in partnership with anyone trying to, quote/unquote, pull a fast one on our neighbors or the residents in that community. 9 6/15/05 - Bills 050575 & 76 - Public Property All those who want to know know. I've heard the inside discussion about people in the community who want to know. We've had discussions in general about it. I don't know that -- my understanding -- in fact, I know that all of this has been in negotiation for quite some time and it didn't come together until just now. But we would never be in any collusion to certainly hide any project from the community. Blane Stoddard keeps up with everything in the area, and certainly the whole area of the Lutheran Church that all of you saw on TV that was crumbling when the steeple fell down, they've been looking at this since it happened, and I've not heard any -- maybe you called today or yesterday or something since we're in hearings all day, but I regret if somebody called, I didn't get the message, because I've heard of no complaints about it. Everybody knew it was a Lutheran Church and the Lutherans who were coming there, nobody complained. And most of the 10 6/15/05 - Bills 050575 & 76 - Public Property other programs that you reference are behind the walls at 48th and Market at the Kirkbride Center. So that is where many programs exist, and that's always been used kind of that way from the old days, many, many years ago, before all of us were born, when it was used by movie stars for mental health reasons. So the many programs that exist at the Kirkbride Center have been there. We haven't heard any community complaint about it. I regret that the gentleman feels that way, but Blane Stoddard and everybody in that area keeps up with everything in that area, and certainly we have nothing but respect for them, happy to work with them. We believe in working, trying to get more done on areas adjacent to the Partnership, the Partnership CDC, and their housing agenda, and feel that we've done all that we should do to try to support the project, and all those who wanted to know knew. I regret the gentleman's feelings. We would never undermine or disrespect them, but certainly hope that the committee will 11 6/15/05 - Bills 050575 & 76 - Public Property consider reporting this out today so that we may move forward. Thank you.

Councilman Clarke

Thank you. Any questions from members of the committee for this witness? (No response.)

Councilman Clarke

Sir, as it relates to the schedule of this particular bill in this Council, this bill at its earliest can have its first reading in the Council session tomorrow, if it passes committee. It cannot have a final vote until we come back in September. So between now and September, it's my hope that members of your organization meet with any interested parties, particularly members from the City and the Councilwoman's office, so we have approximately two and a half months to give you some opportunity to get more involved in this process. MR. McGILL: Okay. Question, my understanding from the reading of the notice is the City already either owns or leases this property since it's to execute a 12 6/15/05 - Bills 050575 & 76 - Public Property sublease?

Councilman Clarke

Mr. Hess, do you want to respond to that? DEPUTY DIRECTOR HESS: No, that's not correct. There is no lease in effect on this property at this time, Mr. Chairman. MR. McGILL: Then why would it be being subleased? DEPUTY DIRECTOR HESS: I think that's a technical question the Commissioner can probably answer, but all of the leases the City holds are technically subleased to a -- I'll stop there. COMMISSIONER SCHLOTTERBECK: It's a legal process. We're going to be leasing it from PMA and they're going to sublease it back to us, but at this point in time, we have no legal ownership of that building. MR. McGILL: Okay. PMA, at least as of the last time I checked the Bureau of Revision of Taxes records, also does not own or lease that property apparently. 13 6/15/05 - Bills 050575 & 76 - Public Property COMMISSIONER SCHLOTTERBECK: That's correct. MR. McGILL: So where does PMA come into this? I'm trying to line up who the ducks are that are in this thing, because as of o'clock this morning, neither Blane 8 Stoddard, Guy Orens, nor the University City 9 District had any clue what this was all about. 10 COMMISSIONER SCHLOTTERBECK: Rather than me -- I'm going to have my attorney sit here and articulate it for you better than I have.

Mr. Silverman

Thank you, Mr. Chairman. Ryan Silverman, Assistant City Solicitor. The owner of the building is 4508 Chestnut Street Associates, and then PMA, if Council so authorizes, will be leasing the property from 4508 after Council gives their approval. Then the City will sublease it from PMA. So right now, there is no 24 relationship between 4508 Chestnut Associates and the City or PMA in any respect. That's 14 6/15/05 - Bills 050575 & 76 - Public Property why we're here today. MR. McGILL: Okay. I guess it's kind of confusing why the City doesn't just lease it directly.

Mr. Silverman

Well, that's a technical legal matter with regard to what's called the "four-year out," a provision that allows the City to get out of any deals longer than four years.

Councilman Clarke

Sir, we do many confusing things in the City of Philadelphia, so you shouldn't be surprised. Councilwoman Tasco.

Councilwoman Tasco

Yeah. I just wanted you to explain that again. We own the building?

Mr. Silverman

No, we do not own the building.

Councilwoman Tasco

The City does not --

Mr. Silverman

The City doesn't have any interest in the building.

Councilwoman Tasco

Who owns the building? 15 6/15/05 - Bills 050575 & 76 - Public Property

Mr. Silverman

A partnership called 4508 Chestnut Street Associates. And they will be leasing it to the Philadelphia Municipal Authority, who will then sublease it to the City, provided Council gives us authority. MR. McGILL: Did 4508 just acquire the property? Because that's not who owned it six months ago. DEPUTY DIRECTOR HESS: Mr. Chairman, I think the Managing Partner of that entity is here and I think is prepared to testify, if that's helpful.

Councilwoman Tasco

So what are we approving today? We're approving the right of the City to sublease to PMA?

Mr. Silverman

Sublease from PMA.

Councilwoman Tasco

Sublease from PMA.

Mr. Silverman

Correct.

Councilwoman Tasco

And then the City would enter into a lease with the --

Mr. Silverman

The structure 16 6/15/05 - Bills 050575 & 76 - Public Property would be, the owner of the building would lease the property to PMA and PMA would then sublease it to the City for use as a shelter.

Councilwoman Tasco

Okay.

Councilman Clarke

I think the question is, if I'm hearing everyone, the question is, does PMA already have a relationship with 4508?

Mr. Silverman

No, they do not.

Councilman Clarke

So we are authorizing both the PMA arrangement and the sublease to --

Mr. Silverman

At the same time, correct. Almost like a PAID transaction, same realm.

Councilman Clarke

Councilwoman Miller.

Councilwoman Miller

Yes. Who is PMA? I mean, it's an entity evidently.

Mr. Silverman

Yes.

Councilwoman Miller

Do you use PMA in order to sublease --

Mr. Silverman

To lease 17 6/15/05 - Bills 050575 & 76 - Public Property properties, City space and that kind of thing. That's what they're normally used for. They're municipal authority, state authority that we use just like the Philadelphia Authority for Industrial Development, but PAID is used for more economic development and PMA is used for leasing of space.

Councilwoman Miller

Okay. Thank you.

Mr. Silverman

You're welcome.

Councilman Clarke

Does any City agency have a direct lease or do all leases go through PMA?

Mr. Silverman

Does any City agency -- I'd have to check into that for you and get back to you. I'm not positive, but I think we do enter into direct leases, sometimes with long-term arrangements that are longer than four years.

Councilman Clarke

With a department?

Mr. Silverman

Right, with a department.

Councilman Clarke

Directly 18 6/15/05 - Bills 050575 & 76 - Public Property with a department?

Mr. Silverman

Yes.

Councilman Clarke

Is it advantageous to be in this arrangement with PMA? Does the master lease -- what's the advantage of doing it as opposed to having a direct lease with a department?

Mr. Silverman

Through the City Charter, it provides that any contract entered in for longer than four years must have an out for the City at any time to be able to get out of the contract. When a landlord comes to us and they want a long-term commitment, they cannot get the financing to do the proper fit-out and improvements unless they have a longer commitment than the four years. The provision would allow the City to, at any time after that four years, to get out of the deal with no consequences, which landlords do not like. However, if we do a deal with an authority, that provision may be waived as put forth in the Charter.

Councilman Clarke

The 19 6/15/05 - Bills 050575 & 76 - Public Property provision is waived between the authority and the department?

Mr. Silverman

And the department, yes.

Councilman Clarke

So the question is, PMA must continue that lease arrangement that's longer than four years?

Mr. Silverman

Well, the City's sublease with PMA will not have that four-year provision because we're doing a deal with an authority.

Councilman Clarke

I understand that, but the question is, if you need to enter into an agreement beyond the four-year period, therefore allowing the property owner to get financing for the facility, you must enter into a lease term longer than four years.

Mr. Silverman

Yes.

Councilman Clarke

Is PMA required to maintain that lease beyond the four-year period?

Mr. Silverman

Yes; for the term that they sign up for with the landlord. 20 6/15/05 - Bills 050575 & 76 - Public Property So it would be a ten-year term between PMA and --

Councilman Clarke

So if the City department decides to terminate its lease arrangement at the end of the four-year period, it's then PMA's responsibility to find a new tenant?

Mr. Silverman

No, because by doing it through PMA, the four-year provision is waived. We are doing a deal with an authority. We're --

Councilman Clarke

I'm not talking about the City. I'm talking about the authority's arrangement with the property owner.

Mr. Silverman

But you're saying the four-year out. There is no 19 four-year provision in the deal between PMA and the City, is what I'm telling you. So the City --

Councilman Clarke

I understand that, but I'm talking about the arrangement between PMA and the property owner is longer than four years? 21 6/15/05 - Bills 050575 & 76 - Public Property

Mr. Silverman

Correct.

Councilman Clarke

So once the City department says, We're out after four years or whatever --

Mr. Silverman

But they can't, because we're going to be signing a sublease at the same time for ten years with PMA that will not have that provision in it.

Councilman Clarke

I thought you said we wanted to have an out.

Mr. Silverman

We are having an out.

Councilman Clarke

But we don't want to have an out, which is why we're entering into the arrangement --

Mr. Silverman

No. We do want to have an out. That's why we're entering into the deal with PMA.

Councilman Clarke

I'm saying if the City department chooses to take the out after four years, what's PMA's relationship with the property owner?

Mr. Silverman

They're still on the -- we can't take it out after four 22 6/15/05 - Bills 050575 & 76 - Public Property years. If City Council approves the deal for ten years and the Commissioner signs a document with PMA for ten years, we're subject to that deal for ten years.

Councilman Clarke

Okay. You're confusing me. Sir, as I said to you earlier, there are many confusing things in the City of Philadelphia. PMA -- I hate to keep going on with this, because I thought this was actually going to be like a five-minute public hearing.

Mr. Silverman

By doing the ten-year agreement between the landlord and PMA and then a ten-year agreement between PMA and the City --

Councilman Clarke

Is the City required to do a ten-year agreement?

Mr. Silverman

By this ordinance, they are, yes.

Councilman Clarke

So --

Mr. Silverman

So they will not be able to get out of the deal prior to the ten years. 23 6/15/05 - Bills 050575 & 76 - Public Property

Councilman Clarke

So you can't utilize the four-year out?

Mr. Silverman

Right. Correct. Sorry. Sorry for being confusing there, Councilman. MR. McGILL: You earlier said, though, that the City Charter required a four-year out.

Mr. Silverman

With the City directly dealing with a landlord, but PMA is an authority that's getting involved in the transaction.

Councilman Clarke

So that's why we do the sublease?

Mr. Silverman

Correct.

Councilman Clarke

Okay. It's more clear to me now. Councilwoman Tasco.

Councilwoman Tasco

And so if the City decides to get out before the ten years are up, who is responsible for the lease?

Mr. Silverman

The City cannot. The City would be signing a ten-year 24 6/15/05 - Bills 050575 & 76 - Public Property document with PMA.

Councilman Rizzo

Can I ask a question?

Councilman Clarke

Certainly. Councilman Rizzo.

Councilman Rizzo

Just listening here, is this a way to circumvent the City Charter? I mean, why would we do this to circumvent the City Charter? I mean, I know lawyers get very creative. Why can't we just do it the way that --

Mr. Silverman

It's based on financing, and in order to be able to do the kind of -- for the kind of needs that we want to use a building for, the landlord has to know that it's going to be a longer deal than four years.

Councilman Rizzo

Well, you could charge us more.

Mr. Silverman

That's a business --

Councilman Rizzo

I just don't understand. I don't like being a part of -- this is manipulation. This is like a shell 25 6/15/05 - Bills 050575 & 76 - Public Property game here, at least that's how I'm interpreting it. We have a City Charter. Some sharp lawyer came up with a way to circumvent the City Charter to create PMA and do all these things that you describe to create a loophole. Bottom line?

Mr. Silverman

PMA was actually created by City Council based on the Municipal Authority's Act of 1945.

Councilman Rizzo

But to do what?

Mr. Silverman

To lease property for the City.

Councilman Rizzo

I don't think it was created -- I don't think PMA was created to do this.

Mr. Silverman

That's one of its --

Councilman Rizzo

One of them, but I think somebody figured out a way to do what you're doing here. I don't think PMA was created to do what we're trying to do here today.

Mr. Silverman

City Council 6/15/05 - Bills 050575 & 76 - Public Property gave it that power, to do that.

Councilman Rizzo

Gave it that power, but not necessarily originally was PMA created to do what you described today.

Mr. Silverman

That may be correct, not originally, but at some point, City Council changed the bylaws of the group to be able to do that.

Councilman Rizzo

So why couldn't we live with a conventional deal that goes away in four years again? Because there's significant improvements required that would be prohibitive to do a four-year deal?

Mr. Silverman

Well -- DEPUTY DIRECTOR HESS: Well, that's much more expensive, Councilman. What happens -- and this property is not unusual in our experience. We were fortunate enough to be able to locate a facility that is appropriate for use as an emergency shelter. That very often requires some retrofitting of the building. That has expense associated with it, and then you have to look at whether you're going to pay for that over one or two 27 6/15/05 - Bills 050575 & 76 - Public Property or three or four years or you can spread that expense out over a longer period of time. When we run the numbers, we see it's much more economically feasible for the City to enter into a ten-year arrangement than a two- or three- or four-year arrangement.

Councilman Rizzo

I understand. I just want to make sure that I'm understanding that what you're doing here is to circumvent what originally was established by Charter. And I understand. It's not this project. It's just the mechanics of it that's very interesting to me, that we can always figure a way to get around something, and that's very interesting. DEPUTY DIRECTOR HESS: We try in this case, Councilman, to find a way to save the City a significant amount of money each operating year and have a safe, quality facility that will be a good neighbor.

Councilman Rizzo

This is not about this project. This is about the way we're doing the deal that's interesting to me. COMMISSIONER SCHLOTTERBECK: 28 6/15/05 - Bills 050575 & 76 - Public Property Councilman, Joan Schlotterbeck, Public Property Commissioner. I think that we're all best served by getting you a more formal response from the Law Department specifically related to why we are leasing the way we are.

Councilman Rizzo

I'd like that. COMMISSIONER SCHLOTTERBECK: We can do that.

Councilman Clarke

That will be helpful. Councilwoman Tasco.

Councilwoman Tasco

It's not the deal, it's just the process of doing this. Why are you doing ten years as opposed to seven years or six years? DEPUTY DIRECTOR HESS: When we looked at this facility, Councilwoman, and we looked at the retrofitting that is necessary and we looked at our needs over time, we felt that the best economic deal and operational deal for the City was a ten-year arrangement, and so that's what we were able to negotiate 29 6/15/05 - Bills 050575 & 76 - Public Property with the Partnership.

Councilwoman Tasco

I haven't read the improvement. You are the landlord now, you will become the landlord? DEPUTY DIRECTOR HESS: No, Councilwoman.

Councilwoman Tasco

4508 will become the landlord? DEPUTY DIRECTOR HESS: Yes.

Councilwoman Tasco

Will they do all the upgrading and retrofitting and all that? DEPUTY DIRECTOR HESS: Yes, Councilwoman. Under the terms that are before you, the Partnership would do all of the improvements to the building. They would also for the next ten years be responsible for all of the maintenance that is required in the building to keep all the operating systems in good operating order. They are also responsible for essentially anything else in the building that would need to be done during that period of time to keep it up to code and operational. 30 6/15/05 - Bills 050575 & 76 - Public Property And so it's that kind of arrangement over a longer term that makes a lot of economic sense for us.

Councilwoman Tasco

How many facilities like this do you have in the City for emergency shelter? DEPUTY DIRECTOR HESS: For emergency shelter at the moment, Councilwoman, I believe the number is 29. Yes.

Councilwoman Tasco

29? How many people on average? DEPUTY DIRECTOR HESS: Last night, Councilwoman, we had housed in the emergency shelter systems of this City 2,515 men, women and children. And tragically now, for the last two years, that number has been growing at a rate of about eight percent a year.

Councilwoman Tasco

What would you say was the major cause of the shelter population? What drives the population up? DEPUTY DIRECTOR HESS: Poverty is the primary driver. The lack of living wage or family sustaining jobs tends to be the 31 6/15/05 - Bills 050575 & 76 - Public Property biggest factor, and then, of course, there are a variety of other social service needs that many of our individuals and families have that they need support with.

Councilwoman Tasco

Okay. Thank you.

Councilman Clarke

Thank you, Councilwoman.

Councilwoman Blackwell

Mr. Chairman?

Councilman Clarke

Councilwoman Blackwell.

Councilwoman Blackwell

If I may, I understand that with our authorities, whether it be stadiums or other issues, with our authorities, we do do this routinely. I mean, we don't always talk about it for shelter use, but we do it. But it's kind of a routine way we deal with business, and it gives us a long-term tie-in for rehabilitation and maintenance of facilities.

Councilman Clarke

Yes. I agree, because I know that particularly in the case of PAID, we use them on a substantial 32 6/15/05 - Bills 050575 & 76 - Public Property number of transactions. It does protect us against certain Charter provisions as it relates to acquisition and the ability to dispose of property. So that is something that we use it for quite extensively. COMMISSIONER SCHLOTTERBECK: That's correct. That's why I think it's wise if we get a written opinion from the Law Department articulating exactly why we do it, for the record.

Councilman Clarke

Any other questions by members of the committee? (No response.) DEPUTY DIRECTOR HESS: Mr. Chairman, I think there are a couple of additional people that would like to testify.

Councilman Clarke

I was going to do that next. Anyone else who wants to testify on this bill?

Ms. Vieira

Thank you. My name is Beatriz Vieira. I'm the Executive Director of Lutheran Settlement House, and our mission at Lutheran Settlement House is to 33 6/15/05 - Bills 050575 & 76 - Public Property empower individuals, families and communities through education, employment and social services in order to achieve and maintain self-sufficiency. We were founded in 1902. In the year 2000, we opened Luther House at 43rd and Chestnut, which is Christ's Memorial Church that collapsed on August 3rd. We provide intensive services for families to move families into permanent housing. Since the collapse, 30 families were displaced, including eight newborns. We are now proposing to move two blocks west to 4508 Chestnut Street. Since the beginning, Lutheran Settlement House has strived to strengthen the fabric of the communities in Philadelphia in which we work, and we welcome the opportunity to do it again.

Mr. Soracca

Good afternoon. I'm John Soracca. I'm Pastor at Christ Dissension Lutheran Church and I just wanted to speak on behalf of my colleagues who are Lutheran Pastors in the City of Philadelphia 34 6/15/05 - Bills 050575 & 76 - Public Property and the Southeastern Pennsylvania Senate of the Evangelical Lutheran Church in America. I just want to attest to the work that the Settlement has done over the last 100 years. One of the amazing things is the way in which they've been able to maintain families staying together who are in need of shelter and also maintaining dignity and empowering people to get back on their feet. To address the issues that were mentioned earlier about poverty and job placement, the Settlement House also works with the families to get them back on their feet, and I think it's a wonderful work that they do in terms of not only providing the shelter but also the empowerment that they do to get people back on their feet.

Councilman Clarke

Thank you.

Ms. Vieira

Thank you.

Councilman Clarke

I just would like to thank you for the wonderful work that you do in the new part of my district over in Fishtown. Continue to do the great work there. 35 6/15/05 - Bills 050575 & 76 - Public Property

Ms. Vieira

Thank you very much.

Councilman Clarke

Any questions of these witnesses by members of the committee? (No response.)

Councilman Clarke

There being none, thank you very much. Anyone else to testify on this bill? DEPUTY DIRECTOR HESS: No, Mr. Chairman.

Councilman Clarke

There being none, will the clerk please read the title of the next bill.

The Clerk

Bill No. 050576, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 6901 Woodland Avenue, under certain terms and conditions.

Councilman Clarke

Before we proceed on the testimony on that bill, Mr. Hess, you'll make sure that you get in 36 6/15/05 - Bills 050575 & 76 - Public Property touch with that gentleman and other individuals, and I know Councilwoman Blackwell will continue to have interaction with the community -- DEPUTY DIRECTOR HESS: Yes, Mr. Chairman.

Councilman Clarke

-- before final passage so we can make sure people know what it is that's being proposed. DEPUTY DIRECTOR HESS: Absolutely, Mr. Chairman. We will work closely with the Councilwoman's office to reach out to all the community associations.

Councilman Clarke

Thank you. DEPUTY DIRECTOR HESS: Thank you.

Councilman Clarke

Please proceed. DEPUTY COMMISSIONER HERZINS: My name is John Herzins, Deputy Commissioner of Public Property. I'm here on behalf of Commissioner Schlotterbeck to read our testimony in support of Bill No. 050576, an ordinance authorizing the Commissioner of 37 6/15/05 - Bills 050575 & 76 - Public Property Public Property, on behalf of the City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 6901 Woodland Avenue, under certain terms and conditions. This bill will permit the City to lease space located at 6901 Woodland for use by the City of Philadelphia's Office of Emergency Shelter Services. The Department supports this measure, and, accordingly, we respectfully ask that City Council approve Bill No. 050576. Thank you.

Councilman Clarke

Thank you. DEPUTY DIRECTOR HESS: Mr. Chairman, this facility has been in use for a number of years as a shelter for single men. This lease will allow us to do some renovations and to provide a higher quality of space to the single men that are in need of emergency shelter in the West Philadelphia area. We strongly support it and we ask favorable consideration. I think there are a 38 6/15/05 - Bills 050575 & 76 - Public Property couple folks here to testify.

Councilman Clarke

Councilwoman Blackwell.

Councilwoman Blackwell

Mr. Chairman, I worked with the President over the years, President Verna, with regard to this shelter at this location, and I told her that I would stay around and speak for President Verna, in whose district it technically is. She does support the project and support the legislation today.

Councilman Clarke

Thank you.

Councilwoman Blackwell

Thank you.

Councilman Clarke

Any questions of these witnesses for this particular bill? (No response.)

Councilman Clarke

There being none, anyone else who wants to testify on this bill? Good afternoon. Would you please state your name for the record and proceed with your testimony. 39 6/15/05 - Bills 050575 & 76 - Public Property

Mr. Robinson

My name is Nate Robinson, Vice-President of Program for Self Incorporated. Chairman Clarke, City Council, thank you for the opportunity for allowing me to speak to you this afternoon. I just wanted to ask for your support, your continued support, for the ten-year lease for the property at 6901 Woodland Avenue. As you know, we do a lot of great things there in supporting the men to become self-sufficient and independent there. We do a lot of good neighbor stuff in terms of working with the community. So we have strong support from the community for the continuing of utilizing this particular property as a homeless shelter for men. I have Ms. Audrey Allen here, who is a long outstanding community leader within their community that would like to say a couple words.

Ms. Allen

My name is Audrey Allen. I've lived in my community for over 75 years, and I support Outley House 100 percent. 40 6/15/05 - Bills 050575 & 76 - Public Property The fellows there are very good to the neighbors in the neighborhood. They clean up for the elderly people. They clean the streets. They also go to the churches and do things, and I'm for them getting the 75 beds and also for the senior housing that's coming in. I think it's great, because we need it, and that will be just like a little community right there in that center, and I have fought many a years for them.

Councilman Clarke

Thank you.

Councilwoman Blackwell

Mr. Chairman, if I may.

Councilman Clarke

Councilwoman Blackwell.

Councilwoman Blackwell

We worked with Mr. -- in fact, we've worked with both of them over the years, and as was said, Outley, they not only live at that location or come out of that location, but they also work with us across the City on many community projects. They're very positive. They really teach them well. They're polite. They work hard. They help us to clean our communities. 41 6/15/05 - Bills 050575 & 76 - Public Property They do all kinds of things to support neighborhood revitalization, and it's a very, very positive group. They've grown so much over the years, and we are happy to support this project.

Councilman Clarke

Thank you. I, too, would like to thank you for the work you do in my councilmanic district and look to continue to have a long working relationship.

Mr. Robinson

With pleasure.

Councilman Clarke

Any questions of these witnesses? (No response.)

Councilman Clarke

There being none, thank you very much for your testimony.

Mr. Robinson

Thank you.

Councilman Clarke

Anyone else interested in testifying on this particular bill? (No response.)

Councilman Clarke

There being none, this concludes the public hearing on the Committee of Public Property and Public Works. (Public hearing of Public 42 6/15/05 - Bills 050575 & 76 - Public Property Property and Public Works concluded at 12:10 p.m.) - - - 43 6/15/05 - Bills 050575 & 76 - Public Property CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 15, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.) 44 6/15/05 - Bills 050575 & 76 - Public Property COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING - COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 15, 2005, 12:10 p.m. Bill 050575 - an Ordinance authorizing the Commissioner of Public Property, on behalf of The City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 4508 Chestnut Street, under certain terms and conditions. BILL 050576 - an Ordinance authorizing the Commissioner of Public Property, on behalf of The City of Philadelphia, to enter into an agreement to sublease from the Philadelphia Municipal Authority a building located at 6901 Woodland Avenue, under certain terms and conditions. PRESENT: COUNCILMAN DARRELL L. CLARKE COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO COUNCILWOMAN JANNIE L. BLACKWELL V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 45 6/15/05 - Bills 050575 & 76 - Public Property

Councilman Clarke

We will now move into the public meeting. Councilwoman Miller, can I please ask for a motion on Bill 050575.

Councilwoman Miller

Thank you, Mr. Chair. I move that Bill No. 050575 be reported out of this committee with a favorable recommendation and further request a rules suspension so as to permit first reading at our next session.

Councilman Ramos

Second.

Councilman Clarke

It being moved and seconded, all approved? COUNCIL MEMBERS: Aye.

Councilman Clarke

All against? 46 6/15/05 - Bills 050575 & 76 - Public Property (No response.)

Councilman Clarke

The ayes have it. Bill 050575 will be reported out of this committee with a favorable recommendation with a rules suspension as to allow reading at the next session of Council. Councilwoman Miller.

Councilwoman Miller

Thank you, Mr. Chair. I move that Bill No. 050576 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.

Councilman Ramos

Second.

Councilman Clarke

Thank you. All approved? COUNCIL MEMBERS: Aye.

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

I'm sorry. Did you want the lease -- COMMISSIONER SCHLOTTERBECK: Yes. I was going to ask -- 47 6/15/05 - Bills 050575 & 76 - Public Property

Councilman Clarke

-- incorporated as amendments? COMMISSIONER SCHLOTTERBECK: Yes, I do.

Councilman Clarke

We have to go back. It was on the first bill; is that correct? COMMISSIONER SCHLOTTERBECK: Correct. Both have amendments and both have the terms and conditions.

Councilman Clarke

We have to start all over again. COMMISSIONER SCHLOTTERBECK: As an amendment to the original bill. Correct.

Councilman Clarke

Councilwoman Miller, we're going to ask for a motion on the amendment that was the exhibit that will be attached to Bill 050575. COMMISSIONER SCHLOTTERBECK: Correct.

Councilwoman Miller

I move that the amendment to Bill 050575 be approved.

Councilman Ramos

Second.

Councilman Clarke

It being 48 6/15/05 - Bills 050575 & 76 - Public Property moved and seconded, I ask for a vote on the amendment to 050575. COUNCIL MEMBERS: Aye.

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Councilwoman Miller, can I ask for a motion on Bill 050575 as amended.

Councilwoman Miller

I move that Bill 050575 as amended be reported out of this committee with a favorable recommendation --

Councilman Ramos

Second.

Councilwoman Miller

-- and further move that the rules of Council be suspended so as to permit first reading at our next session.

Councilman Clarke

It being moved and seconded, all approved? COUNCIL MEMBERS: Aye.

Councilman Clark

Those opposed? 49 6/15/05 - Bills 050575 & 76 - Public Property (No response.)

Councilman Clarke

Bill 050575 will be reported out of committee with a favorable recommendation and a rules suspension as to allow reading at the next session of Council. Councilwoman Miller, can I please ask for a motion on the amendment to Bill 10 050576.

Councilwoman Miller

I move that the amendment for Bill 050576 be approved.

Councilman Ramos

Second.

Councilman Clarke

It being moved and seconded, all approved? COUNCIL MEMBERS: Aye.

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. The amendment to Bill 050576 has been approved. Councilwoman Miller, can I please ask for a motion on Bill 050576 as amended. 50 6/15/05 - Bills 050575 & 76 - Public Property

Councilwoman Miller

I move that Bill 050576 as amended be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session.

Councilman Ramos

Second.

Councilman Clarke

It being moved and seconded, all approved? COUNCIL MEMBERS: Aye.

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

Bill 050576 will be reported out of committee with a favorable recommendation. This concludes the public meeting. Thank you all very much. COMMISSIONER SCHLOTTERBECK: Thank you. DEPUTY DIRECTOR HESS: Thank you, Mr. Chairman. Thank you, committee. (Public meeting of Committee on Public Property and Public Works concluded at 51 6/15/05 - Bills 050575 & 76 - Public Property 12:15 p.m.) - - - 52 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 15, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)