COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 6, 2007 1:30 p.m. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIR COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM GREENLEE COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILWOMAN MARIAN B. TASCO COUNCILMAN BRIAN O'NEILL BILLS 070431, 070435, 070436 and 070440 - - - 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 2
Thank you. Good afternoon. Thank you all for your patience. We will now consider bills before the Committee on Finance. This hearing being called into order, we have a quorum. To my left, Councilman W. Wilson Goode. To his left, Councilwoman Marian Tasco. To my right, Councilman William Greenlee. To his right, Councilman Frank DiCicco, and to his right, Councilman Juan Ramos. A quorum being present, we are happy to begin. We will ask the Clerk to read the title of the RCAP bills, Bill Nos. 070436 and 070440.
Bill 070436, an ordinance authorizing the Philadelphia Authority for Industrial Development to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistant Capital Program, in an aggregate amount not to exceed $500,000 to assist in the 3 6/6/07 - FINANCE - BILL 070431, ETC. development of the Metropolitan Area Neighborhood Nutrition Alliance, MANNA, office and kitchen facilities; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions; and Bill 070440, an ordinance 10 authorizing the Philadelphia Authority for Industrial Development to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $500,000, to assist in the development of Pleasant Playground; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions.
Thank you very much. Thank you, Mr. Deegan, for being here and we call on you to make 4 6/6/07 - FINANCE - BILL 070431, ETC. your testimony.
Paul Deegan, D-E-E-G-A-N. I represent PIDC and PAID. Thank you, Madam Chair and members of the Committee. These are two grants funded through the state's capital program, and these grants are sponsored by the local state legislators and typically go to non-profit organizations. The state provides the funding through each county's industrial development authority. In this case, PAID. The recipient of the grant must at least match the amount being provided by the state. So it's a 50/50 matching grant program. After the Legislature approves the budget, the Governor authorizes the project and PAID makes application to the state and also seeks approval of City Council. Bill No. 070436 authorizes us to apply for a $500,000 grant for MANNA, 5 6/6/07 - FINANCE - BILL 070431, ETC. the Metropolitan Area Neighborhood Nutrition Alliance. MANNA is a non-profit, non-sectarian organization providing essential services to men, women and children living with HIV/AIDS, cancer and other life-threatening illnesses in the Philadelphia region. MANNA will use this grant to renovate and expand its existing office and kitchen facilities at South 23rd 12 Street in Center City. This will increase the capacity of the facility from its current production of 2,000 meals per day to 5,000 meals per day. MANNA also plans to add ten new permanent jobs as a result of this grant. The total project cost is $1.7 million. Bill No. 070440 authorizes PAID to apply for a grant of $500,000 for the City-owned Pleasant Playground. This grant will help fund the construction of a new 6,000 square foot multi-purpose building at the existing Pleasant Playground in East Mount Airy at 6750 6 6/6/07 - FINANCE - BILL 070431, ETC. Boyer Street. The $500,000 grant is in addition to a previous authorization of a million dollars, and I think this Committee approved that grant probably three or four months ago, but the Governor provided more money for the project. The total project cost -- I'm sorry. This brings the total grant authorization to $1.5 million. This concludes my testimony. I request the Finance Committee's favorable consideration of these bills and ask that the rules of Council be suspended to permit first reading at the next regularly scheduled session of City Council. Thank you for the opportunity to testify, and I'll be happy to answer any questions you may have concerning these bills.
Thank you, Mr. Deegan. Are there questions for Mr. Deegan? 7 6/6/07 - FINANCE - BILL 070431, ETC. Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair. Good afternoon, Mr. Deegan.
Good afternoon. COUNCILMAN DiCICCO: The MANNA facility at South 23rd Street, they 9 own that building? 10
Yes, I believe 11 they do. I'm not sure if that was the 12 former Red Cross building next to the armory. I think it was. But generally the grants are provided to the owners of facilities. I don't think the state will provide the money for leasehold improvements, although in some cases I guess they do, but generally the non-profit, such as Please Touch Museum or Jefferson, City-owned playgrounds. The grant recipient will be the owner of the real estate. COUNCILMAN DiCICCO: The building is used primarily, correct me if I'm wrong, primarily for administrative 8 6/6/07 - FINANCE - BILL 070431, ETC. purposes?
Well, they have a kitchen facility also. COUNCILMAN DiCICCO: And they what?
They have a kitchen facility. COUNCILMAN DiCICCO: Oh, they actually do services out of there as well?
Right. So they're going to be expanding both the offices and the kitchen facility. COUNCILMAN DiCICCO: It's a fantastic organization. I support it. With the price of real estate in Center City, I was just wondering if the value of that being sold would add to their financial inventory if they relocated to another location. I'm looking at it from a business aspect.
Well, that could be, Councilman. When they sell the building, they'll have a lot more money 9 6/6/07 - FINANCE - BILL 070431, ETC. to provide meals for people living with life-threatening illnesses. But it's a good location. It's very centrally located. COUNCILMAN DiCICCO: Okay. Thank you. Thank you, Madam Chair.
Thank you very much. The Chair notes that Councilman O'Neill is here, as is Councilwoman Blondell Reynolds Brown. That means that all members of the Committee are present. Are there any further questions for Mr. Deegan? (No response.)
Thank you very much. You requested a bill 20 suspension; did you not?
Thank you very 10 6/6/07 - FINANCE - BILL 070431, ETC. much and thank you for scheduling these bills.
You're welcome. The next will be the Airport Revenue Bond bill, Bill No. 070435. And while the Clerk prepares to read the title, we will ask the Finance Director and Deputy Director of Aviation to come forward. Thank you very much. Clerk?
Bill 070435, an ordinance constituting the Eighth Supplemental Ordinance to the Amended and Restated General Airport Revenue Bond Ordinance; authorizing the Mayor, the City Controller and the City Solicitor, or a majority of them, to issue and sell one or more series of Airport Revenue Bonds of the City of Philadelphia; designating the obligations to be refunded from certain proceeds of such Airport Revenue Bonds; setting forth the use of proceeds; determining the 11 6/6/07 - FINANCE - BILL 070431, ETC. sufficiency of pledged Amounts Available for Debt Service; covenanting for the payment of interest and principal; authorizing the Bond Committee to take certain action with regard to the terms and conditions of the Airport Revenue Bonds and related agreements and the elections under the Amended and Restated General Airport Revenue Bond Ordinance; authorizing the Director of Finance to take certain actions with regard to the sale of such Airport Revenue Bonds, the investment of the proceeds thereof and the City's continuing disclosure obligation; and specifying applicability of sections of The First Class City Revenue Bond Act and the Amended and Restated General Airport Revenue Bond Ordinance.
Thank you very much. Thank you for being here. Please identify yourself to the record and begin your testimony. 12 6/6/07 - FINANCE - BILL 070431, ETC.
Good afternoon, Councilwoman Blackwell and members of the Committee on Finance. I'm Vince Jannetti, Acting Director of Finance for the City. With me is Edward Anastasi, Deputy Director of Aviation for Finance and Administration for the Airport. We are here to testify on behalf of Bill No. 10 070435. Bill No. 070435 authorizes the City to sell Airport Revenue Bonds up to an amount of $305 million. Proceeds from the sale of the bonds will be used to fund certain capital improvements to the airport system and to refinance outstanding Airport Revenue Bonds, including the Series 1997A and 1997B bonds. The City will not execute a refunding transaction unless we achieve a net present value savings of three percent of the principal amount of the bonds to be refunded. All revenues pledged to secure the payment of the bonds will be derived 13 6/6/07 - FINANCE - BILL 070431, ETC. from the revenues, rents, rates, tolls and other charges imposed upon all lessees, occupants and users of the airport system and all revenues derived from the airport system constituting pledged "Amounts Available for Debt Service" as defined in the General Ordinance. The bonds that will be issued under this bill will not be general obligations of the City. They will be payable solely from the project revenues pledged under the General Ordinance. As required by Section 8 of The First Class City Revenue Bond Act, as the Acting Director of Finance of the City, I have transmitted my financial report demonstrating that the Airport revenues are projected to be sufficient to meet the debt service coverage tests for the proposed bonds and other Airport Revenue Bonds outstanding, and also sufficient to pay all costs and expenses of the airport system under the General Ordinance. The required opinion of the City Solicitor 14 6/6/07 - FINANCE - BILL 070431, ETC. has also been transmitted to Council. I would like to request a suspension of the rules for Bill No. 5 070435 to allow for first reading at the next meeting of City Council. Mr. Anastasi has additional detailed testimony on this transaction, and we'd be happy to answer any questions.
And members of the Committee on Finance. My name is Ed Anastasi. I'm Deputy Director of Aviation for Finance and Administration. First of all, thank you for this opportunity to testify in support of Bill No. 040435, the Eighth Supplemental Bond Ordinance to our General Ordinance 15 6/6/07 - FINANCE - BILL 070431, ETC. of 1995. This bill will provide for the City of Philadelphia with the authority to issue up to $175 million in new money bonds and also to issue up to $130 million in refunding Airport Revenue Bonds, those being the 2007B and C Bonds. The Airport has set new activity records in each of the last three calendar years. A total of 31.8 million passengers utilized the Airport in 2006. This rapid growth can be attributed primarily to low-fare carrier Southwest Airlines' continued expansion at the Airport and U.S. Airways' continued development of its primary connecting hub at the Airport, including new non-stop international destinations. While competitive air service has stimulated travel and economic vitality within the region, the additional activity places great demands on Airport facilities. Consequently, airline approval of an extensive terminal and airfield infrastructure program 16 6/6/07 - FINANCE - BILL 070431, ETC. became an important City goal in the new airline use and lease agreement negotiations. As a result, the 2007A Bonds, together with other available funding sources, will finance over 130 million in airline-approved infrastructure projects. In addition, the 2007A Bonds will finance over 40 million in design and construction projects to increase capacity and efficiency at terminals from which U.S. Airways operates. Airline approval of these terminal projects was obtained in May of 2005. We also intend to fund a portion of our infrastructure program by the release of between $15 million to $20 million of Sinking Fund reserves, to be replaced with a surety bond, as is permissible under the General Ordinance. The 2007B and C refunding bonds will be issued subject to favorable market conditions to refund Series 1997A and B Airport Revenue Bonds, which are 17 6/6/07 - FINANCE - BILL 070431, ETC. callable on June 15th. The debt service savings from refunding the '97 bonds would be factored into the annual calculation of airline rates and charges, along with all other Aviation Fund revenues, expenses and debt service payments. Finally, I would like to take this opportunity to thank the members of City Council for their consideration of this bill. Over the years, through the passage of similar bills, Council has supported capital initiatives to improve the City's airports. In recent years, Council's support has led to the opening of a major international terminal in 2003, a first-class regional terminal in 2001 and the expansion of Terminals D and E, a capacity enhancement project that is presently under construction. We ask that Council give us the opportunity today to continue this progress. Thank you.
Thank 18 6/6/07 - FINANCE - BILL 070431, ETC. you very much. Are there questions? Councilman Greenlee.
Thank you, Madam Chair. Mr. Anastasi, on the expansion of Terminals D and E that you mention at the end of your testimony, what's the time frame on that? When would that be completed and how much more would that bring in as far as capacity, ability?
The expansion of Terminal D/E are funded by our 2005 Bonds and the project is presently under construction, and I believe that the completion date of all the various components of the D/E project is in the year 2009. And the project will provide for, I believe, three additional aircraft gates onto the end of Terminal E, which will provide for additional capacity for the airlines that operate in Terminal E.
Thank you, sir. 19 6/6/07 - FINANCE - BILL 070431, ETC.
Thank you very much. The next bill will be our commercial corridor Fiscal '08 budget bill, Bill No. 070431. As the Commerce Director comes forward, we will ask the Clerk to read the title of the bill.
Bill 070431, an ordinance approving the budget for Fiscal Year 2008 for the expenditure of proceeds of certain bonds issued by the Philadelphia Authority for Industrial Development for the purpose of financing or refinancing the costs of a comprehensive program to improve and enhance the City's cultural and commercial corridors.
Please identify yourself for our record and begin your testimony.
I'd be happy to do that. Good afternoon, Committee Chairwoman Blackwell and members of City Council's Committee on Finance. My name is Stephanie Naidoff and I am the Director of Commerce and City Representative for the City of Philadelphia. I'm accompanied today by Duane Bumb, who is the Deputy Director of Commerce. I am here today to present testimony in support of Bill No. 070431. This bill will approve the second-year budget for Fiscal Year 2008 for expenditures of proceeds of certain bonds issued by the Philadelphia Authority for Industrial Development, PAID, for the purpose of financing and refinancing the costs of a comprehensive program to improve and enhance the City's cultural and commercial corridors. 21 6/6/07 - FINANCE - BILL 070431, ETC. On November 6, 2006, City Council approved Bill No. 5 million, with a provision that we seek City Council approval of a second-year budget prior to Fiscal Year 2008. 5 million in the first year. 5 million was made to the Other Costs category for administrative fees and other cultural and commercial corridor projects. 5 million, which represents the remaining funds for this bond issue in its entirety. Each of the three original categories will again 22 6/6/07 - FINANCE - BILL 070431, ETC. 5 million for the Other Costs category for the cultural and commercial corridors projects. The purpose of this bond issue was to assist with the funding of capital improvement projects for the City's cultural institutions and public amenities and also to fund the City's ReStore Philadelphia Corridors program, a program designed to revitalize commercial corridors throughout our City's neighborhoods. Many of these neighborhoods are experiencing a renaissance in part as a result of investments in connection with the Neighborhood Transformation Initiative. Every funding awardee of this program will enter into a grant agreement, which includes the Economic Opportunity Plan approved by Council with Bill No. 060692, prior to the release of any funds. 23 6/6/07 - FINANCE - BILL 070431, ETC. Pursuant to the Bond Indenture, these dollars must be expended within three years of the December 14, 2006 bond issuance date. I would like to take this opportunity to give you a brief update of our progress with the Cultural and Commercial Corridors program. First, I will discuss the Philadelphia Cultural Corridors category. This category has two subcomponents, and for clarity purposes, we have named these two components as the Cultural Corridors Fund, which is the $60 million component approved in its entirety as part of the first-year budget, and the Citywide Cultural Grants Fund, which is the $5 million component. 5 million was approved in the first-year budget. These two distinct subcomponents have one common goal: to provide much-needed 24 6/6/07 - FINANCE - BILL 070431, ETC. capital funding assistance to both City-owned cultural institutions as well as to smaller organizations citywide that currently need financial help to complete capital improvements, many of which have challenging fundraising campaigns due to the nature of their projects. We believe that our investment in these types of capital projects will increase both the visibility and accessibility of the City's diverse cultural assets, will preserve and strengthen the City's arts and culture organizations and will leverage private and public funds to support these efforts. For the Cultural Corridors Fund, which has $60 million in authorized funding, we've identified five corridors: the Avenue of the Arts, the Benjamin Franklin Parkway, the Centennial District, the Historic District and El Centro de Oro and other emerging corridors. Funding would be targeted to City-owned buildings and infrastructure 25 6/6/07 - FINANCE - BILL 070431, ETC. and to other selected institutions in these identified corridors.
The Commerce Department has completed a preliminary evaluation of over projects as potential recipients 7 for funding from the Cultural Corridors 8 Fund and have forwarded those to the 9 Mayor for his consideration. Funding 10 awards should be substantially completed 11 this summer. 12 One likely funding recipient is 13 the Philadelphia Museum of Art. The 14 Museum of Art is a City-owned property 15 located in the Benjamin Franklin Parkway 16 corridor and is currently in the midst of 17 a $500 million capital campaign for 18 projects such as the renovation of the 19 Perelman Building, which is about to 20 open, the underground garage, the 21 Sculpture Garden, roof replacement, the 22 expansion of gallery space in the 23 southeast quadrant of the Museum below 24 ground, as well as the installation of a 25 new loading dock for exclusive use to 6/6/07 - FINANCE - BILL 070431, ETC. deliver art. Under current conditions, the PMA has only one area for all deliveries to the Museum, including everything from trash to the most priceless pieces of art, like the Gross Clinic. Cultural Corridor Funds could be targeted to fund the loading dock, a typically difficult project to fundraise for but a necessary one for PMA, because if they do not identify a dedicated area to receive art deliveries, the Museum will jeopardize their status as a world-class museum of art. Though bond funding would only serve as a very small percentage of the PMA's total campaign, it is a critical project for them and for the City. 5 million in authorized funding, we have created a competitive process by which a Grants Committee will ultimately choose the recipients of funding. Project funding for each organization is limited 27 6/6/07 - FINANCE - BILL 070431, ETC. to $250,000, and the Commerce Department launched a website on March 5th detailing a two-part process. We also notified over 250 cultural organizations by e-mail to encourage them to submit an expression of interest. We've held two public meetings where the process was explained and questions could be answered directly by staff, and to date, we have received over 100 expressions of interest, 60 of which have already been invited to submit an application for funding. The Grants Committee, made up of the Chairwomen of City Council's Committee on Finance and on Parks, Recreation and Cultural Affairs, the Commerce Director, the Finance Director and the Managing Director, have met to discuss this process and will begin reviewing applications this summer. Even though we've not expended any of our first-year allocation, we've determined from the number of expressions already received that over $17 million could be 28 6/6/07 - FINANCE - BILL 070431, ETC. requested for eligible projects under our guidelines. 5 million be approved at this time. The second category I would like to discuss is the ReStore Philadelphia Corridors program. ReStore is a comprehensive set of strategies intended to help revitalize neighborhood commercial corridors throughout the City and re-establish their historic roles as central places to shop, to work and to meet neighbors. The program is managed by the Neighborhood Transformation Initiative, NTI, and is funded through a portion of the City's Cultural and Commercial Corridor Bond proceeds, as well as federal, state and General Fund dollars. NTI carries out the ReStore program through five main strategies: Focus planning and data analysis on strengthening corridors; second, align and leverage community economic 29 6/6/07 - FINANCE - BILL 070431, ETC. development resources; third, make corridors more welcoming places to spend time and money; fourth, develop a system to attract and retain businesses on corridors; and, fifth, to support effective corridor management organizations. The Cultural and Commercial Corridor Bond assists with making corridors more welcoming places and with attracting and retaining businesses.
Bond proceeds fund seven ReStore Philadelphia Corridors program activities. Bond funding for the first three program activities discussed below will be directed towards corridors throughout the City based upon analysis of existing conditions, neighborhood trends, the level of planning, available resources and upon consultation with District Councilmembers. The largest amount of bond funding, 34 million, is dedicated to streetscape enhancement and capital 30 6/6/07 - FINANCE - BILL 070431, ETC. improvements. These include items such as lighting, street paving and striping, public signage, sidewalks, curbs, crosswalks and curb cuts, bump-outs, greening and trees, pedestrian furniture, public art, planning, as well as design and engineering studies. City Council approved $16 million in streetscape expenditures in the first-year budget and we're requesting approval of the remaining $18 million in this second-year budget. Working with the above criteria and in consultation with District Councilmembers, NTI has identified 31 corridors that have begun initial planning and have secured more than $17 million in state and federal streetscape funds, but which require an estimated $21 million in bond funds to assist with design or additional construction costs. NTI will issue a request for expressions of interest in July that will help to identify additional corridors for 31 6/6/07 - FINANCE - BILL 070431, ETC. streetscape design or construction assistance. The second is a $6 million acquisition pool which will enable the City to acquire key blighted properties on corridors for commercial, mixed-use or open space development. City Council allocated all $6 million in the first-year budget, and NTI has begun to identify priority properties in consultation with District Councilmember. NTI plans on issuing a request for expressions of interest later in June to identify additional properties that it should consider for acquisition. Third, $2 million in bond funds for targeted demolition on commercial corridors will allow the City to remove blighted properties and help create parcels for commercial, mixed-use or open space development. We are requesting the remaining $1 million in the second-year budget. Fourth, targeted redevelopment 32 6/6/07 - FINANCE - BILL 070431, ETC. 5 million will support construction and renovation of commercial, institutional, mixed-use and cultural facilities that will draw people to the neighborhood commercial corridors. 5 million in the second-year budget. Later this month, NTI will issue a notice of funding availability and application forms for prospective projects. Fifth, the City will place $2 million into an acquisition pool for non-profit entities that will enable non-profits to acquire properties on commercial corridors for commercial or mixed-use development. The City's funding will leverage state, foundation and corporate funds and will expand the size of the pool and allow loan repayments to revolve back into the pool. These funds were approved in the first-year budget. 5 million line item for business support will fund 33 6/6/07 - FINANCE - BILL 070431, ETC. facade renovations to storefronts, fit-out expenses for commercial tenants and energy conservation improvements to commercial properties on these corridors. Also, NTI will use a portion of these business support funds to make grants to community-based organizations and business associations for equipment for corridor cleaning and security programs. We are requesting the remaining $3 million in the second-year budget. NTI will make application forms available in July for business support activities. And, seventh, $2 million for technology improvements which will enable the City to upgrade information systems to collect and manage data on commercial corridor characteristics and to evaluate the benefit of City investments on those commercial corridors. We are requesting the remaining $1 million in the second-year budget.
The final category for discussion today is the $20 million 34 6/6/07 - FINANCE - BILL 070431, ETC. allocation for other cultural and commercial corridor projects. 5 million be approved for use with both cultural and commercial corridor projects. The projects identified will complement those activities funded in the Cultural Corridors Fund and ReStore Philadelphia Corridors categories. I thank you for this opportunity to testify on this important matter. I am here with representatives of the Philadelphia ReStore program as well. Eva Gladstein, the head of NTI, was not available today, I'm sorry to say, and we would all be happy to answer any questions that you may have at this time. We would kindly request a suspension of the rules for Bill No. 23 070431 to allow for the first reading at the next meeting of Council.
Thank 35 6/6/07 - FINANCE - BILL 070431, ETC. you very much. We'll entertain questions now. Councilman Goode.
Thank you, Madam Chair. Good afternoon, Ms. Naidoff. I have two basic questions. Let me start with the obvious question. City Council approved $112.5 million last year and you're asking for approval of 37.5 this year. How much of the 112.5 was spent?
I think it's fair to say that only a very small portion of the money has been allocated. We've spent most of the time since the bonds were issued at the end of the year in developing the programs and then in gathering all of the facts about the various projects that are eligible under all these categories and I think are now in a position to begin to move some of those projects out. It takes quite a while, though, as you might imagine, to gather all that information. 36 6/6/07 - FINANCE - BILL 070431, ETC.
My question is still the same. We approved $112 million last year. You're requesting $37 million today. How much of the $112 million has been spent?
I'll get you a specific answer, but we think it's about $7 or $8 million.
That would be on top of the $5 million in administrative and bond issuance costs.
So you still have over a hundred million dollars or so from last year's allocation?
And still feel you're in need of the $37 million approval this year?
Yes, because I think at this point we are really ready to move forward on all of the various 37 6/6/07 - FINANCE - BILL 070431, ETC. categories that I outlined. As I said, it really took us the bulk of the last six months to begin to get all of the projects outlined, get all the facts in, meet with all of the proposed grantees and get ourselves in a position to let the money start rolling.
So you anticipate spending what amounts to about $140 million over what period of time?
So you anticipate spending $130, $140 million over the next seven months?
I think we'd be prepared in the next six months to let the bulk of the money be awarded.
The second question is, I did not hear you mention the Small Business Loan Guarantee Fund. What's the status of the Small Business Loan Guarantee Fund?
I'll turn that 38 6/6/07 - FINANCE - BILL 070431, ETC. over to Andy Frishkoff, who is here on behalf of Eva Gladstein for NTI.
Good afternoon, Councilman. My name is Andrew Frishkoff. I'm the Neighborhood Economic Development Director for the Neighborhood Transformation Initiative. We have been having discussions with lenders, commercial banks and others, regarding the Small Business Loan Guarantee Fund. It is not funded, I think as you're aware, out of the bond proceeds, but was authorized at the same time as debt authorization for the City. We expect that we will do two things over the course of the remaining part of the calendar year. One, we will put out an RFP to select an administrator to manage that pool and we will continue to meet with lenders to determine the parameters for that guarantee. We've determined, for instance, that from the lending perspective, it would work particularly well if it was able to work 39 6/6/07 - FINANCE - BILL 070431, ETC. in alignment with SBA programs. So we're trying now to figure out exactly what the agreements would need to be so that could proceed.
So you anticipate putting out an RFP for the administration of the program before the end of the year?
Thank you, Madam Chair. Ms. Naidoff, just a couple questions on the ReStore Philadelphia Corridors program, which is obviously a very needed and good program for the City, and I understand in the questions I asked the other day from NTI that this is relatively -- you're still in the early 40 6/6/07 - FINANCE - BILL 070431, ETC. stages of this, basically.
The 31 corridors you said have been identified already by NTI. A lot of that was, you say, in consultation with District Councilmembers, right? Now, are they in various, how would I say it, stages? I'm just thinking like in an area I'm well familiar with, in my home area, you got Fairmount Avenue, which is in pretty good shape but probably needs more like streetscape, just what I would call smaller things. You have Girard Avenue, which is functioning, but needs a lot more work, I would say. And then I'm thinking of Ridge Avenue in the Francisville section, which almost is not functioning right now. They need a lot of work. Do these corridors kind of run the gamut?
They certainly 41 6/6/07 - FINANCE - BILL 070431, ETC. do, and I think Andy can give you more specific information, but they've been spending a lot of time identifying the corridors and identifying the needs on each, because, as you say, they do vary substantially.
And I think those are three great examples to illustrate the work that we're doing with ReStore. In the case of Ridge Avenue where it's really in the early stages of rebirth, we're looking not so much to make capital improvements at this point, but to see what sort of planning and business organizing support we can provide in conjunction with some of our partners such as PCDC to allow some of the properties to regrow businesses in their spaces. In the case of Fairmount Avenue, we're looking to pay for some design work and some planning, because we think they're a little bit farther along. And in the case of Girard 42 6/6/07 - FINANCE - BILL 070431, ETC. Avenue, there are already state and city capital dollars committed for streetscape improvements. The bond funds will enhances those planned improvements on Girard Avenue.
I mention Ridge Avenue particularly because there's some debate within the community and others whether that will ever be a real commercial corridor again. There's some people who think that's more suitable maybe for housing, that kind of thing. So that's why I particularly mention that. And the last question, it says you will issue a request for expression of interest in July. How will that be communicated? How will people know about that?
It will be posted on the City's website and NTI's website and we will also distribute, in addition to all members of City Council directly, to any groups that you direct 43 6/6/07 - FINANCE - BILL 070431, ETC. us to send it to you.
I'm thinking community groups, that kind of thing, that could spread the word.
Thank you very much. Councilwoman Reynolds Brown.
Thank you, Madam Chair. Good afternoon, everyone. Please tell me what are the boundaries for the Centennial District.
What are the boundaries? I don't have a map with me, but we can provide one to you. It's the area that includes the --
Right. Exactly. Fairmount Park. 44 6/6/07 - FINANCE - BILL 070431, ETC.
All the way to the Art Museum? So then how far west does it go?
I think the best thing would be to provide you with a map, which we can do.
Okay, then. I would ask that you do that. The Economic Opportunity Plan is applicable for this entire $60 million, correct?
It's applicable to all grantees under this program. If you remember, we did discuss this in quite a bit of detail at the hearing on the bond issue last November. A number of Councilmembers had significant suggestions to make. We incorporated those, and the EOP as amended was 45 6/6/07 - FINANCE - BILL 070431, ETC. attached to the bond issue and then bond ordinance and then will be -- is on the website and is in all of our materials. So everyone is on notice about that.
And all of the materials include the RFP that went to the 2.5 million potential grantees, correct?
I'm sorry. You mean the 250 organizations that got expressions of interest?
They all have been informed about it. It's on the website. It's gone out to them in materials. It was explained at the two public meetings. Yes. There's been lots of discussion about that.
For the 60 million, you identified the corridors where those potential recipients exist. Are you at liberty to discuss -- this is my concern, that the mix of those 46 6/6/07 - FINANCE - BILL 070431, ETC. organizations that ultimately are the recipients of the 60 million look like Philadelphia. So you're not at liberty -- let me not answer the question for you. Are you at liberty to say what those groups are?
No. The Mayor has not made his decisions yet, but I can tell you that of the projects that we have evaluated and provided information to him, they run the gamut in terms of the diversity of the Board and staff and the audiences served, the diversity of the functions, the cultural functions of the organization, fairly wide assessment of -- diversity of geographical location within those corridors. So I think there's a pretty broad swath of characteristics that are included in them.
Okay. With the Corridor program, the Philadelphia Corridors program, what might be or is the interface, cooperation 47 6/6/07 - FINANCE - BILL 070431, ETC. with or collaboration with PCDC?
I think those are mostly large grants to large organizations. It's the $5 million smaller fund that would be more likely to have some relationship to PCDC. For example, in the Small Grants program, if we identify a potential grantee that has a good project, one that we would like to fund but we see some capacity issue, it's possible that PCDC could assist with some business technical assistance.
You're welcome. Are there further questions? (No response.)
All right. Thank you very much. Are there further comments or questions from members of the Committee?
Madam Chair? 48 6/6/07 - FINANCE - BILL 070431, ETC. How soon can we expect the maps of the cultural corridors?
We will ask that that information be made privy to the Chair and distributed to all members of this Committee.
Thank you very much. Any other questions or comments? (No response.)
We will conclude this part of our hearing and enter into our stated meeting.
Thank you very much. 49 6/6/07 - FINANCE - BILL 070431, ETC.
The Chair recognizes Councilman Goode -- and for all bills a request has been made for bill suspension -- Councilman Goode with regard to Bill No. 070431.
Thank you, Madam Chair. I move that Bill No. 070431 be reported out of Committee with a favorable recommendation, that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
It has moved and seconded that Bill No. 070431 be reported out of Committee with a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will say aye. (Aye.)
Opposed? 50 6/6/07 - FINANCE - BILL 070431, ETC. (No response.)
The ayes have it and so the bill passes. The Chair recognizes Councilman Greenlee with regard to Bill No. 070435.
Thank you, Madam Chair. I move that Bill 9 070435 be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended to allow for first reading at our next session of Council. (Duly seconded.)
It has been moved and seconded that Bill No. 17 070435 be reported out of Committee with a favorable recommendation and also that the rules of Council be suspended so as to permit first reading at our next session. All in favor say aye. (Aye.)
Opposed? 51 6/6/07 - FINANCE - BILL 070431, ETC. (No response.)
The ayes have it and so the bill passes out. The Chair recognizes Councilwoman Reynolds Brown with regard to a motion on Bill No. 070436.
Thank you, Madam Chair. I move that Bill No. 070436 be reported out of the Committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading. (Duly seconded.)
It has been moved and seconded that Bill No. 17 070436 be reported out of Committee with a favorable recommendation and, furthermore, that the rules of Council be suspended in order to permit first reading at our next session. All in favor say aye. (Aye.)
Opposed? 52 6/6/07 - FINANCE - BILL 070431, ETC. (No response.)
The ayes have it and the bill passes out. The Chair recognizes Councilman DiCicco with regard to Bill No. 070440. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 070440 be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)
It has been moved and seconded that Bill No. 16 070440 be reported out of Committee with a favorable recommendation and, further, that the rules of Council be suspended in order to permit first reading at our next session of Council. All in favor will say aye. (Aye.)
Opposed? (No response.) 53 6/6/07 - FINANCE - BILL 070431, ETC.
The ayes have it and so the bill passes out. That concludes our business today. I want to thank my Committee and ask all Committee members on Streets and Services to keep your seat, and thank all who have come to participate and testify. Thank you all. (Committee on Finance adjourned at 2:10 p.m.) - - - 54 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 6, 2007, 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.)