COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON RULES - - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, January 26, 2005 10:35 a.m. - - - - BILL 040330 - An Ordinance approving the second amendment of the redevelopment proposal for the Kingsessing Urban Renewal Area... PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JUAN RAMOS COUNCILMAN JACK KELLY - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 040330 HERBERT WETZEL, Redevelopment Authority MS. MCDONALD........................... 14 KATHLEEN MURRAY........................ 15 3 01/26/04 - RULES - BILL 040330
Good morning, everyone. I apologize for the delay. This is a public hearing of the Committee of the Whole regarding Bill No. 040330. The record will reflect that we do have a quorum. To my left is Councilwoman Brown, Councilman Clarke, and I am temporarily appointing Councilmembers Goode and Ramos. I would ask Mr. McPherson to please read the title of the bill.
An ordinance 13 approving the second amendment of the redevelopment proposal for the Kingsessing Urban Renewal Area, being the area generally bounded by Chester Avenue on the north, South 52nd Street on the east, the AMTRAK right-of-way line on the south and South 61st Street and 62nd Street on the west, including the second amendment to the urban renewal plan and the first amendment to the relocation plan, which provide, inter alia, for the additional land acquisition of approximately 24 properties for residential and related uses; the provision of certain relocation 4 01/26/04 - RULES - BILL 040330 services, as required by law and declaring that condemnation is not imminent with respect to the Project.
Thank you. I would ask Herb Wetzel to please take the witness table. Good morning. Kindly identify yourself for the record and proceed with your testimony.
Good morning. My name is Herbert Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. Madam Chairperson and Members of the Committee, I'm here to speak in support of Bill No. 040330, the amendment to the Southwest Schuylkill Redevelopment Proposal and the Second Amendment of the Kingsessing Urban Renewal Plan for the Southwest Schuykill Redevelopment Area and the Kingsessing Urban Renewal Area. This bill would authorize the Redevelopment Authority to acquire 19 properties. Six properties are occupied and will require relocation assistance. The 5 01/26/04 - RULES - BILL 040330 remaining 13 properties are vacant lots. These properties have been requested for acquisition by the Southwest Renewal Initiative, which is a multi-phased project proposed by three developers, Presbyterian Homes and Service, the Board of City Trust and Philadelphia Housing Development Corporation. The properties will be demolished and the land will serve as rear yards for the rehabilitated homes in the 2100 block of South 58th Street. Existing homeowners will be offered an opportunity to purchase homes within the project. The purpose of the these acquisitions is to facilitate the proposal which includes properties to be acquired under the Neighborhood Transformation Initiative, a strategy to rebuild Philadelphia's neighborhoods as thriving communities with clean and secure streets, recreation and cultural outlets and quality housing. Among the central goals of NTI are to eradicate blight caused by dangerous buildings, debris-filled lots, abandoned cars, litter and 6 01/26/04 - RULES - BILL 040330 graffiti and to promote redevelopment of large-scale land assembly. Madam Chairperson and Members of the Committee, I respectfully request the favorable consideration of Bill No. 040330 and would ask the suspension of Council Rules to allow first reading on the January 27, 2005.
Thank you very much. This is the Committee on Rules, and I just want to make one brief statement, and that is that I personally am saying on behalf of the entire community that we're talking about that we express thanks to Presbyterian Homes, the Board of City Trust and, of course, PHDC. In fact, we passed that community I guess only last week and we noticed the rehab that was going on. It's absolutely beautiful, and I am led to believe that there are two people who are already interested in purchasing two of the properties. Mr. Wetzel, I know that six of the properties are occupied. And certainly, we cannot at this point in time talk about 7 01/26/04 - RULES - BILL 040330 relocation because we haven't passed this bill. However, I am led to believe that you and Ms. Murray from my staff have met with the six property owners and you do have a plan in mind for relocation.
That is correct, Councilwoman. And I think what's exciting about this initiative is -- and this is the only relocations that are going to be part of this overall initiative. The first phase we acquired almost 30 properties, all vacant structures that are being rehabilitated now. There are four homeowners and two tenant-occupied properties. The homeowners will be given the opportunity to purchase the rehabbed houses that are actually being rehabbed right now. The tenants can, if it's economically feasible, take their tenant replacement housing payment and use that as a down payment if they're able to get a mortgage for the balance of the cost of the new houses. I think one of the exciting things about this is not only the fact that we've met with people substantially before the ordinance 8 01/26/04 - RULES - BILL 040330 was introduced here at Council. We spent several hours with them walking through relocation benefits, how the process works, what letters they receive, when they will receive those letters, et cetera. And I think that's a very beneficial process that we've tried to repeat several times since then and I think it's working very well. I think one of the greatest fears people have is that the only thing they're going to get is the fair market value for their house; and if their house isn't worth much, they think they're going to be in the street. And at the end of the session, I think everybody understood that they're entitled to a replacement housing dwelling, whether they're an owner or a tenant, and we have an obligation to work with them and provide the resources to make that happen. I think that makes a big difference.
Oh, definitely. I think when people are informed of what the rights are, it makes the process much easier. I would like the record to reflect 9 01/26/04 - RULES - BILL 040330 Councilman Kelly has joined us. Mr. Wetzel, I know that NTI funds are being used for acquisition. Are any other City funds being used for acquisition?
I'll tell you, I think this is a win/win situation. And I understand if a homeowner who buys the property is a single parent, has children, they're afforded the opportunity to send their children to Girard College. I just think it's a wonderful, wonderful opportunity. Are there questions from Members of the Committee?
Councilwoman, I'd just like to make comment. What I think is really interesting about this is that this is a plan that's based upon taking Presbyterian Homes as a strategic investment in an entire City block down there with multiple projects on there. So you have Presby Homes and then the Board of City Trust and PHDC thinking through a plan that says, okay, we have this substantial 10 01/26/04 - RULES - BILL 040330 investment here; let's strengthen the community around that investment; let's take these vacant properties and get them fixed up. And both that project and that entire block are going to benefit but so is the entire community from this. So it's a well-thought-out, well-conceived plan.
Thank you, Madam Chair. Mr. Wetzel, a quick question. Actually based on some recent articles with respect to certain areas and changing areas and real estate increased values and relocation. The Redevelopment Authority estimate over the last couple of years have done about how many relocations or offered how many letters of expressions of interest?
We've done well over a hundred relocations in the last 14 months.
And out of that hundred relocations, I'm assuming that all of 11 01/26/04 - RULES - BILL 040330 those individuals were given notices of their rights, in addition to which they were given notices in the offer letter of organizations that were in place to counsel them or advise them as to their rights as it relates to any challenges to takings?
Yes. But actually, we bolstered that. The federal requirement is just to tell people they have rights in a two-sentence part of a paragraph. We met with Community Legal Services, PLA, the Senior Law Project, and other advocates. We now put a separate notice in with our regular notice that essentially says, "You have legal rights; and if you don't have the resources, here are lawyers that can represent you in this process." And so as a result of that, some people have gone to the -- elderly people have gone to the Senior Law Project to get help. And one of the things that's really important is a number of people we've condemned are heirs of the property, but they never changed the deed, for example. And so they're not 12 01/26/04 - RULES - BILL 040330 entitled to the just compensation until they get the deed in their name. So for us, it's been a real plus. We started doing that after we arranged for a working relationship with these entities, I think probably last April we added that extra notice in with all our notice letters.
And out of that approximately 100 relocations, how many instances have people actually gone to -- I guess it's to the Board of View to challenge?
How many out of that hundred have actually gone to the Board of View?
I will have to get back to you on that. I don't have the answer right now, but we'll get an answer for you. It's not many.
And just for Council's knowledge here, I'll do a hypothetical. If somebody's house is appraised at $20,000 and the replacement house that we find for them is 13 01/26/04 - RULES - BILL 040330 a $50,000 house, we have to make up the difference between the 20,000 that we're paying for their house and the $50,000 that the replacement house cost. If their house was appraised at $30,000 and the replacement house was 50, then our payment would be $20,000. So it's going to cost us, in that case, $50,000 no matter how you slice it to relocate that individual, plus other benefits that they have over and above that.
You're welcome. Are there any other questions or comments from Members of the Committee? (No response.)
Mr. Wetzel, I didn't hear you say you wanted a suspension of the Rules. Do you?
Yes, I think I did. I hope I did. 14 01/26/04 - RULES - BILL 040330
I'm sorry. I didn't hear you. I was probably distracted when Councilman Kelly walked in. May I ask tat you remain, Mr. Wetzel, in the event there are questions from anyone in the community? Angela Wallace. Is Angela here? (No response.)
Would you approach the witness table, please? Good morning. Would you please identify yourself for the record.
And are you never in favor of this bill before us today?
Thank you for coming in. Do we have anyone else to testify on this bill? No one else to testify? Kathy, sitting behind you, are they area residents? Anybody interested in testifying? (No response.)
I would ask Kathleen Murray to please approach the witness table since she's been working on this project.
I will be very brief. Kathleen Murray, Special Assistant to Council President Verna. Mr. Wetzel has said, frankly, most of what needs to be said. We have been working with property owners and renter 16 01/26/04 - RULES - BILL 040330 residents. We met with them last year. The relocation process and the real offering of benefits can't go forward until Council authorizes the acquisition of these properties, and that's what we're here today to do.
And there have been many meetings with the area residents?
There are monthly meetings at Presby Homes and Services. Specifically with reference to the relocation on this block, there have been three meetings with area residents.
And Mr. Wetzel, I don't know if you have been in the community, but I think the rehab work that's being done is absolutely beautiful.
Yes, I've heard. Our inspectors have been out there looking at the project. And not only is the work beautiful, but how it's transforming those blocks that it's being done on is incredible.
I would just like to 17 01/26/04 - RULES - BILL 040330 say that Council President mentioned two people. Those are actually agreements of sales. There's been interest expressed by well over a hundred people in the first 27 houses, but there are actually agreements of sale on 2 of the 27 properties.
Well, we can be very proud of this project. I think it's wonderful. Do we have anyone else to testify on this bill? (No response.)
Seeing none, this will conclude our public hearing. - - - - 18 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON RULES - - - - Tuesday, January 26, 2005 - - - - Public meeting conducted by the Committee of the Whole, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL 040330. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILMAN DARRELL CLARKE COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JUAN RAMOS COUNCILMAN JACK KELLY 19 01/26/04 - RULES -PUBLIC MEETING
We will now go into our public meeting. The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. Madam Chair, I make a motion that Bill 8 No. 040330 be reported out of Committee with favorable recommendation and request for Rules suspension as to allow reading at the next Session of Council. (Duly seconded.)
It has been moved and properly seconded that Bill No. 15 040330 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 indicate by saying aye. (Aye.)
Those opposed? (No response.) 20 01/26/04 - RULES -PUBLIC MEETING
The ayes have it. The motion carries. This concludes our hearing. I thank you all very much for coming. (Council adjourned at 10:51 a.m.) - - - - 21 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 Tuesday, January 26, 2005, 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