civus
Hearing video

ZBA Hearing - July 29, 2020

Philadelphia Zoning Board of Adjustment (ZBA)Jul 29, 20204h 53m

You're swearing for him to tell the truth, the whole truth, and nothing but the truth?

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I do.

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Thank you.

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Please proceed.

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Thank you, Mr. Chairman.

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I take exception to a number of things that Mr. Phillips presented today.

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we went to great lengths, as he did actually point out two years ago, to get this project

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approved as a multifamily development. We went to great lengths, and it was many, many years

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in the making. He came to us at the end of December of 2019 asking to meet about this

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multi-use accommodation knowing that our organization had rejected earlier in 2019

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a similar use of a similar building at 13th and Reece Street because we don't believe this is

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consistent with the nature of our neighborhood. We voted in January 7 to nothing in opposition.

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The community voted 7 to 4 in opposition. We asked why no one from Sonder came. Mr. Phillips

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was gracious enough to bring Sonder to our March meeting, which was our last public meeting prior

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to the COVID-19 shutdown. At that meeting, we asked Sonder to explain a number of times about

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this virtual operation. And that is of great concern to us. The first issue is one, we don't

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believe this type of operation is appropriate for our neighborhood as we did in for 13th and

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Morton, 13th and Reed, excuse me. However, we have a significant issue with the virtual operation

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of Sonder. We don't believe that will in any way help or maintain the safety of our nearby

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residents, and it's a very, very residential area, despite the fact that it is at the intersection

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of the Chief State Corner. In addition, Mr. Phillips and the Sonder representative have not

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identified or mentioned articles that have been written in the media since March about Sonder.

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I specifically relate, referring to an article dated July the 3rd of this year in short-term

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rentals.com, R-E-N-T-A-L-S, where they talk about Sonders. And I'm quoting, one of the most

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recognizable names, Sonder, announced it was laying off 22% and furloughing an additional

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to 11% of its workforce in March.

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I'll just object for the record.

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I don't want to, you know.

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Well, but if you refer to me,

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what's the nature of the objection?

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I'm sorry, I didn't hear that.

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It's just a hearsay from an unsubstantiated source

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on shorttermrentals.com, but with that,

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it wasn't shorttermrentals.com, it was short,

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well, but that's another story.

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There's also an article that was published

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in July of this year in therealdeal.com,

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citing an actual case that has been filed, 54 page complaint filed in New York against Sonder

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about its operations and its method of operations. And I'm quoting, while Sonder is venture capital

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backed and has raised several hundred million dollars to date, its business model betrays a

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total lack of accountability to or concern for the communities in which it operates.

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Saunders guests caused a disproportionate number of issues, including but not limited to drug use, drug dealing, theft, harassment, armed robbery and assault, all of which have occurred in the building in the past year.

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We are very concerned about the operation of this organization, in addition to the fact that we don't believe this type of a use is appropriate for our neighborhood.

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after we went to great lengths to accommodate this client to grant him the multifamily dwelling, which was proposed.

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I agree on that. I know I took some criticism in my own neighborhood for approving the apartments, but all right.

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I appreciate your testimony. Have you concluded? I'm sorry. Have you concluded?

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I have, but I believe that Jay Stewart is maybe on the line.

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I'll ask if there are any other witnesses.

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thank you thank you anyone else wish to testify on this matter please raise your hand and mr

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chair just i know that there is somebody else but i just would like an opportunity to respond to uh

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miss devani's comments as well for sure

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okay we do have jay stewart he can approve himself

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hello mr stewart please identify yourself with the record spell your name

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and give us your name is jay jay last name stewart s-t-u-a-r-t i reside at 1406 south

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9th street i'm a neighbor a block away from this property and i'm also a member of the rco

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I'm a neighbor a block away from this property, and I'm also a member of the RCO zoning board.

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Yeah.

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Thank you, Mr. Stewart.

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Do you swear and affirm that the testimony you gave is true to the best of your ability?

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I do.

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Thank you.

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Please proceed.

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Mr. Stewart, you can testify.

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Okay, I guess my first is, so there is an article in July about Sonder breaking a master lease in San Francisco. So if the business is doing so well, why are they breaking leases for properties that they have?

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Objection again to relevance as to what breaking a master lease in San Francisco during a global pandemic has anything to do with it?

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I think these folks are trying to establish the credibility of Saunders.

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So, uh, yes, I would agree.

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I'll overrule the addiction.

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Um, so the, there's, um, sorry.

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So the, the, the, Mr. Levin stated that there would be security

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staying in the property on the weekends.

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Is this correct?

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Yes.

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This is Andrew Levin from Saunders.

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Yeah, at our properties on weekends, high traffic events, we do have security in the lobbies.

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They don't stay at Sondra as in have a room there, but they are dispatched at the entrances of the properties.

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So they'll be there all night long in the entrance of the property?

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At properties as needed, yes.

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Why would the security be needed at this particular property?

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um we don't we have security at the majority of our properties uh on weekends just because of the

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number of people uh in that area of the neighborhoods um i'm not clear on that what

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what's that mean a security person uh dispatched at an entrance of a building uh where there's

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tons of restaurants and bars nearby is not uncommon is this armed security no um and what

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do are they protecting the patrons or are they protecting the neighborhood from the patrons

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as in you know there's the lawsuit that's in new york where the a party at saunder in 2019

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at Osondra property was raided by armed men.

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Objection again to the lawsuit.

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Yeah, Mr. Stewart, I appreciate your concern,

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not dismissing it, but those kinds of activities

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and policing issues could happen anywhere for that matter.

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This is true.

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All right?

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All right.

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Again, I'm not dismissing your concern.

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It's just that that could happen anywhere.

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Okay.

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I guess I just want to conclude that a hotel in the middle of a residential neighborhood does not benefit any of the residents of the neighborhood, nor the city.

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So, thank you.

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Thank you. I appreciate your time.

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Anyone else wish to testify? If so, please raise your hand.

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No, no.

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All right. Go back to Mr. Phillips. You concluded, correct?

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I just have some brief rebuttal to the comments from Mr. Vani and Mr. Stewart.

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First, there was the mention of the project at 13th and Reed that was refused.

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And I have the benefit of knowing what happened at that matter because my former partner, Hercules Rigos, was representing the developer there.

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and the exact comment there was you're in the middle of a residential neighborhood it's not

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as if you're on passion gap or ninth street whereas there you know the use is a bit different

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than when you're looking at a commercial corridor and that was key uh to the variance in the first

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place and we again went with the cmx 2.5 was the analysis uh the analogy we were using because

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of the walkability and the commercial aspect of both 9th Street and Pasciunc as a gateway to

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the Italian market. So I think it's a little disingenuous to say that we're putting this

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right in the middle of a residential neighborhood. We're not. We're putting it on a commercial

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corridor. Second, security. And, you know, when you're renting out 21 residential units,

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uh those individuals who are going to live in those units are pretty much free to live their

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life how they want to they're only bound by the city ordinances for noise um they can throw parties

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uh they can do any of the various nefarious acts that uh mr stewart uh alleged to be done

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whereas with sonder mr levin spoke to the secure vetting process

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Mr. Levin spoke to the secure vetting process that goes in to actually having to reserve a Sonder and the accountability that is associated with that.

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I think any statements about Sonders, the need to furlough individuals during the global health pandemic is irrelevant and immaterial.

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And lastly, I do want to point out, we, there was no intention when we came to before the

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board and before the community two years ago, but the multifamily use, it was not as if

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there was an idea that we'll get this and then come with a sonder.

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These are still being designed and developed.

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And there is no change to these as residential units.

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But when this opportunity came about from every objective standard, the use is less

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impactful.

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it will have less demands on density,

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less demands on parking, less demands on loading.

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And so as a result of that,

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we move forward with seeking this variance

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from the board and from the community.

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And in terms of who Sonder is as a company,

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they have a presence in Philadelphia,

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they have employees in Philadelphia,

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They manage these apartments and units very professionally, and this will be a benefit to the community.

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Is it different? Yes. And sometimes things that are different or unknown create fear in the long-term residents.

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But that fear must be substantiated and based in something, and here it is not.

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The feedback we got at the community from individuals was this is dystopian or this is going to be a cheap motel.

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That's not borne out by the facts. That's just fear mongering.

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The facts are that this will be professionally managed by a very well-financed, funded company that is not just some mom-and-pop operation, and that will add a benefit to the local economy.

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And again, I will, as an enclosing state, less impactful on parking, less impactful on density,

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less impactful on loading.

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I understand that the chairman and individuals caught flack for approving the 21 residential

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units.

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And if, you know, this, if Sonder's opportunity did not arise, that is where we would be taking

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this.

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But this opportunity arose and it just made sense from all of those standpoints.

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I, you know.

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I implore you to look at the administrative review standard, even, that this reduces the intensity of the proposed use, and by every objective measure, it does that.

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I would ask that the board grant and approve this variance, and with that, close.

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Thank you. I have two comments. Actually, one comment, one question. I'm not concerned that I took flack on that vote. It goes with the territory.

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And I'm glad that they worked it out,

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that the board's suggestion at the time was to go back

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and see if they can reduce the number of units,

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which was from 30-something to 27,

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if memory serves me right down to 21.

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I appreciate that.

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Mr. Levin, I think you testified that you have a Saunders in Queen Village?

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Correct.

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And if so, what's the location?

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5th and Bainbridge.

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and was that the one where the uh pick the uh john paul used to be they sold paper and stuff

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uh i believe it's the ground floor is emmy squared pizza uh it's a 30 key hotel property

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okay and how many units are in there it's 30 keys it's a hotel style so there's no kitchens

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in that property it is what it's a it's a 30 key hotel it's not uh not not multi-family style

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units it's traditional hotel no it's not comparable to what's being proposed here

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i mean it's the same same idea with uh with travelers and guests staying there but

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the units are smaller with no kitchens that's the difference do you do you have any other

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properties in philadelphia that are similarly run uh would be similarly run to this operation

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Yes, 313 Race Street.

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It's a 50-unit property, full building.

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The Hyde building.

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I'm sorry, 50 units?

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50 units, yep.

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That is in, is that Old City?

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That's Old City.

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We have 222 Vine Street, which is a 15-unit full building.

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Let me stop you.

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Just the Old City and Vine Street.

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How long have they been in operation?

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They vary.

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I mean, our first property that went live was in Old City about two, maybe 18 months ago.

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The other ones are maybe six months.

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We've been growing for the last two years.

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we've been growing

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for the last two years

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What I'm getting at, and I don't know if Ms. Tavani is still on,

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what I'm getting

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has there been any conversation with any of the folks in the Old City Civic Association

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about their experience having a Saunders in that community for the last 18 months or so?

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I've not been part of any of those conversations, no.

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I know. I'm asking Ms. Tavani if she's still on.

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you're still there

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hello i'm here thank you very much sorry about that um did you did you hear my i did we have

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not had conversations with them and i would uh suggest that old city has a very very different

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field than our very residential neighborhood. I also would like to comment that Nathan Morton

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is very much residential adjacent. If you go anywhere within four blocks, it's pretty residential.

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So I dispute Mr. Phillips' comment. I understand that because I live, as you know, three blocks

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away. I just was curious about if, and I'm not faulting anyone, by the way, I just would like,

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I understand that the makeup of Old City is somewhat different than it is at Knife and

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