COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND MEETING BEFORE THE COUNCIL COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, 12/5/01 10:30 a.m. - - - BILL 010557 - Re Frankford Special Services District Controls BILL 010647 - Re redevelopment of New Kensington-Fishtown Urban Renewal Area BILL 010648 - Re Model Cities Urban Renewal Area BILL 010649 - Re Cecil B. Moore Avenue Urban Renewal Area BILL 010690 - Requiring sponsors of a "planned event" held in any premises to obtain a permit for such event. (Full text of all bills attached hereto.) PRESENT: COUNCIL PRESIDENT VERNA, Chair COUNCILMAN JAMES F. KENNEY, Vice Chair COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 12/5/01 RULES COMMITTEE MEETING - INDEX WITNESS BILL 010557 Richard Lombardo, City Planning Commission BILL 010647 Herbert Wetzel, Redevelopment Authority..... Sandy Salzman, New Kensington CDC........... BILL 010648 Herbert Wetzel, Redevelopment Authority..... Catherine Califano, Phila. Empowerment Zone 32 Kevin Vaughan, President of the Board....... 37 Calcutta House Rose Gray, Puertorriquenos En Marcha........ 41 BILL 010649 Herbert Wetzel, Redevelopment Authority..... 44 Beech Interplex Inc. Vice President......... 47 BILL 010690 Otis Haigler, Jr., Regulatory Affairs, L&I 56 Bernice Hamel, South Street Corridor........ 74 Colleen Puckett, President.................. 78 Queen Village Neighbors Association 3 12/5/01 RULES COMMITTEE - BILL 010557
Good morning, ladies and gentlemen. Thank you for your patience. I'm waiting for the Rules Committee to obtain a quorum. Could we please have silence in the room. Thank you. We now have a quorum present: Councilmember Nutter, Council President Verna Councilman DiCicco, Councilmember Clarke, Councilmember Cohen, and myself, Chair of the committee today, Councilmember Kenny. The first bill is Bill No. 010557, which is an ordinance amending Title of the 14 Philadelphia Code relating to zoning and planning by amending Chapter 14-1600, entitled "Miscellaneous," by adding a new Section 14-1623, entitled "Frankford Special Services District Controls," under certain terms and conditions. (Witness comes forward.)
Let the record also reflect that Councilmember DiCicco is also present today. Press identify yourself for the record and proceed with your testimony.
Good morning, Councilman 4 12/5/01 RULES COMMITTEE - BILL 010557 Kenney and members of the Rules Committee. My name is Richard Lombardo, and I'm Deputy Executive Director of the Philadelphia City Planning Commission. I'm here today to testify on Bill No. 6 010557. This bill was introduced by Councilman Mariano on November 30, 2001. This bill amends the Zoning Code by adding a new Section to be known as 1416-23, entitled "Frankford Special Services District Controls" to the Zoning Code. This new section of the zoning code would establish certain zoning controls for commercially-zoned properties fronting on Frankford Avenue between Torresdale Avenue and Brill Street. Under this ordinance, the following uses would be prohibited in this section of Frankford Avenue: Automobile repair shops, service stations, installation of automobile parts, sales of automobile parts, car wash, automobile sales and sales lot, fortune teller establishment, hand laundry, outdoor sales and storage, drive-through restaurant, and regulated uses. The following uses would be prohibited only from the ground floor of buildings in this 5 12/5/01 RULES COMMITTEE - BILL 010557 area: Central heating plant, dwelling units, water boosters or sewer substations. The following zoning controls would also be established: All sides must be attached flat against the wall of the building. This amendment to the code was proposed by Councilman Mariano in conjunction with the enactment of the Frankford Special Services District, which was approved by Council on April 18, 2001. The Planning Commission at its meeting of November 15, 2001 recommended that Bill No. 010557 be approved. I would be happy to answer any questions anybody would have.
Thank you very much. Any questions for these witnesses?
Is there anyone else to testify on this bill? (No response.)
Thank you very much. The next bill is Bill No. 010647, which is an ordinance amending an ordinance approved June 13, 1997 as amended, which approved the redevelopment proposal, the urban renewal plan, and the relocation 6 12/5/01 RULES COMMITTEE - BILL 010647 plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the New Kensington Fishtown Urban Renewal Area. Please identify yourself for the record. for the record and proceed.
My name is Herbert Wetzel, Executive Director of the Philadelphia Redevelopment Authority. Mr. Chairman and members of the committee, I'm here to speak in support of Bill No. 010647, which is the third amendment to the redevelopment proposal and the third amended urban renewal plan for the New Kensington and Fishtown redevelopment area and the New Kensington-Fishtown Urban Renewal Area. This bill would authorize the acquisition of five properties for the following two projects: Wesley Wei Home Ownership Project. Three properties are to be acquired on behalf of the New Kensington Community Development Corporation. These properties will be combined with adjacent City-owned properties to create a site for the Wesley Wei Home Ownership Project. This project will consist of four units of housing marketed to moderate-income families. The acquisition cost is estimated to be 7 12/5/01 RULES COMMITTEE - BILL 010647 $14,093 and will be paid for by the Office of Housing and Community Development. The second acquisition is a acquisition on behalf of Ken Gassman. Two properties will be acquired on behalf of Mr. Gassman, who owns the adjacent structure and lives on the street across from these lots. They will be maintained as green space. The acquisition cost of these two properties is estimated to be $25,450 and will be paid for by the developer, Mr. Gassman. The Planning Commission, at their meeting of May 24, 2001, reviewed and approved this amendment, and the Redevelopment Authority believes the community will be enhanced by it. Mr. Chairman and members of the committee, I respectfully request favorable consideration of Bill No. 010647 and would ask the suspension of Council rules to permit the first reading on November 6, 2001.
Thank you very much for your testimony. Any questions for Mr. Wetzel? (No questions.)
Seeing none, is there 8 12/5/01 RULES COMMITTEE - BILL 010647 anyone else in the room to testify on this bill? (Witness comes forward.)
Please identify yourself for the record and please, if you will, pull microphone closer to you.
My name is Sandy Salzman (ph.) and I'm the Executive Director of the New Kensington Community Development Corporation, and I just want to say that we're really excited about this project. These will be the first new homes built in the New Kensington area in probably the last 50 years. And this project is really exciting because it's going to be new, innovative housing that hopefully will be something that other areas of the City will be able to utilize also.
Great. Thank you for coming in and testifying. Thank you. Anyone else? (No response.)
The next bill is Bill 22 No. 010648, which is an ordinance amending an ordinance approved December 15, 1969 as amended, which approved the redevelopment proposal, the urban renewal plan, and the relocation plan of the 9 12/5/01 RULES COMMITTEE - BILL 010648 Redevelopment Authority of the City of Philadelphia for the redevelopment of the Model Cities Urban Renewal Area by approving the 28th amendment of the redevelopment proposal, the 20th amendment to the urban renewal plan, and the 19th amendment to the relocation plan, which provide, inter alia, for the expansion of the northern boundary from York Street to Cumberland Street between Fourth Street and Front Street, the expansion of the eastern boundary to Front Street between Cumberland Street and Dauphin Street from North Third Street, the expansion of the eastern boundary to American Street between Susquehanna Avenue and Diamond Street from Fourth Street; the additional land acquisitions of approximately 57 properties for industrial and related land uses; the additional land acquisition of approximately 273 properties for residential and related uses; a change of the land use and related controls for the area generally bounded by George Street, Laurel Street, Second Street, and Orianna Street from commercial, institutional, and related to residential and related uses; provision of certain relocation services as required by law; declaring that condemnation is not imminent with 10 12/5/01 RULES COMMITTEE - BILL 010648 respect to the project, all as contained in the 28th amendment of the redevelopment proposal and the 20th amendment to the urban renewal plan. Please identify yourself for the record.
My name is Herbert Wetzel, Executive Director of the Philadelphia Redevelopment Authority.
Mr. Chairman and members of the Rules Committee, I'm here to speak in support of Bill No. 010648, which is the 28th amendment to the redevelopment proposal and the 20th amendment to the urban renewal plan for the North Philadelphia Redevelopment Area and the Model Cities Urban Renewal Area. This bill authorizes the expansion of the eastern boundary of the Model Cities Urban Renewal Area from North Third Street to Front Street, between Cumberland and Dauphin Street and to North American Street between Susquehanna and Diamond Street. It also authorizes the changes in the use from commercial and institutional to residential and related uses in the portion of the area bounded by 11 12/5/01 RULES COMMITTEE - BILL 010648 George Street, Laurel Street, Second Street, and Orianna Street. The following nine projects and 330 supporting acquisitions are also authorized by this amendment, the first being, 64 properties are to be acquired on behalf of the Norris Square Civic Association. These properties are in the 2300 and 2400 blocks of North Howard Street. Combining these 64 properties to reduce neighborhood density, Norris Square proposes to build 33 units of home ownership housing marketed to low- and moderate-income, first-time home buyers. The acquisition cost is estimated to be $386,688 and will be paid for by the Office of Housing and Community Development with Year CDBG 17 funds. The development phase of this project will 18 be funded with a subsidy from OHCD and from the 19 sales proceeds of the homes which are sold. 20 The second acquisition is, the 21 Redevelopment Authority will be acquiring one 22 property on the 3100 block of West Berks Street. 23 The Authority previously had acquired the other nine 24 vacants; this is the tenth vacant. The 25 Redevelopment Authority will issue a request for 12 12/5/01 RULES COMMITTEE - BILL 010648 proposals to select a developer who will rehabilitate all of the vacant houses on the 3100 block of West Berks Street. In this one block, that one property is estimated to cost $6200 and will be paid for by Year funds from the Office of Housing 7 and Community Development. 8 This amendment would authorize that 9 acquisition. Nine others, as previously mentioned, 10 have already been acquired by the Redevelopment 11 Authority. 12 The third acquisition is three properties 13 that are being acquired as part of the American 14 Street Initiative for the expansion of City Sort, 15 LP, which is a mail-sorting business, and to 16 complete an assemblage for a future project. The 17 acquisition will allow City Sort to expand its 18 mailing facility at Fifth and Oxford Streets. City 19 Sort also plans to expand its parking lot. Their 20 development plan includes construction of four 21 tractor bays, additional staging areas, 22 truck-parking, and loading areas. The acquisition cost for this property is estimated to be $205,130 and will be paid for by the Philadelphia Industrial Development Corporation. 13 12/5/01 RULES COMMITTEE - BILL 010648 Total development costs are estimated to be $385,000 and will be paid for by City Sort. The fourth acquisition is, properties 5 will be acquired to create Calcutta House III. Nine 6 of those properties are currently in the City's 7 inventory and five are privately owned. Two 8 additional properties will be acquired directly from 9 PHDC by Calcutta House. 10 Calcutta House III will be a 9-unit, 11 9,625-square-foot residence for persons with 12 HIV AIDS. Parking will be provided at the site as 13 well. 14 The acquisition costs are estimated to be $5,125 and will be paid for by the developer. Development costs for this project are estimated to be $1,058,275. Funding is being provided through a variety of sources, including private donations, Federal Home Loan Bank funds, HOPWA funds -- and that's funds for housing opportunities for people with AIDS. The fifth acquisition includes six properties that will be acquired on behalf of the Philadelphia Housing Authority.
These properties will be combined with others currently in PHA's 14 12/5/01 RULES COMMITTEE - BILL 010648 inventory for the development of 117 units of scattered-site handicap-accessible home ownership and rental units to be added to PHA's inventory. 4 million will be funded through the Comprehensive Grant Program Funds. Acquisition costs are estimated to be $46,780 and are being paid for by PHA. This development addresses a recent lawsuit in which it was mandated that PHA add to their stock's scattered-site, handicap-accessible units. The sixth acquisition is, 57 properties are being acquired at the request of PIDC for the development and razing by commercial interests yet to be confirmed. These properties are being assembled with several PHA properties to form a two-block site that will require the closing of Bodine Street between Susquehanna and Diamond. This project is being coordinated with the Empowerment Zone, the Commerce Department, and PIDC. 17 million, and the selected commercial interests will pay all costs associated 15 12/5/01 RULES COMMITTEE - BILL 010648 with the development. The seventh acquisition is properties 4 to be acquired to complete the site acquisition for 5 Phase II of the Cecil B. Moore Home Ownership Zone. 6 Recently, construction has begun on Phase II-B, 7 which consists of new construction and of 28 8 rehabilitation -- 9
Mr. Wetzel, sorry to 10 interrupt you for a second. 11
8. Okay, 'cause you're talking about the Cecil B. Moore Urban Renewal Area. I know it's two separate bills; I'm just trying to figure out if you're giving testimony on both, or is this project -- this Model Cities, Cecil B. Home Ownership is in this -- is in 648?
Right. There are urban renewal areas that don't necessarily match up to project names. The Model Cities Urban Renewal Area is --
No, I'm talking about 16 12/5/01 RULES COMMITTEE - BILL 010648 the boundaries.
The boundaries I'm looking at in 648 do not seem to match -- it seems that those boundaries would be in 649 'cause we're talking about the expansion -- 648 is the expansion of boundaries in York, Cumberland, Fourth Street, Front Street, Dauphin, Third Street, American, Diamond, Susquehanna. And I'm looking at a map that -- the map that I'm looking at now in your testimony is 18th, 19th and Montgomery, Oxford, 20th. It doesn't seem to match the bill.
Let's double-check on that 'cause the Model Cities Urban Renewal Area is --
I mean, I don't have a problem with the -- I just want to make sure the record's not --
The problem with the record is that we're hearing testimony on 648 but I'm getting property addresses that are in 649. And I don't want you to think I wasn't paying attention.
No, I understand. (Mr. Wetzel confers off record 17 12/5/01 RULES COMMITTEE - BILL 010648 with colleagues.)
Yeah, this is in the existing Model Cities Urban Renewal Area. The expanded area is part of the bill, but the Cecil B. Moore Home Ownership, this acquisition is in the Model Cities -- the pre-existing Model Cities Urban Renewal Area.
Okay. And in 648, we're expanding the existing Model Cities Urban Renewal Area to these new boundaries.
So what you're talking about now with this particular home ownership zone is in the existing Model Cities.
Phase II-A will begin 18 12/5/01 RULES COMMITTEE - BILL 010648 construction in the fall of 2002 and consist of 43 new and rehabilitated units. Phase II-C is still in the predevelopments stage. The acquisition cost of approximately $260,000 in development costs will be paid by the Office of Housing and Community Development. The eighth acquisition is, 148 properties will be acquired to create the third and final phase of the Cecil B. Moore Home Ownership Zone. And 29 of these properties are currently in the City's inventory, 3 are in PHA's inventory, and 116 are in private ownership. Additionally, properties are 14 presently in PHA's inventory and 12 are in the 15 Redevelopment Authority's inventory. In all, 176 16 properties will be combined in a single parcel for this development. The development consists of approximately 75 new-construction and rehabilitated home-ownership units in the area bounded by Oxford, Montgomery Avenue, Gratz Street, and North 20th Street. Acquisition costs are estimated at $1.9 million and development costs will be provided by OHCD. The ninth acquisition under this is, 23 properties will be acquired for APM Home Ownership 19 12/5/01 RULES COMMITTEE - BILL 010648 Initiative Phase II. The developer and sponsor is Pradera Corporation, a wholly-owned subsidiary of Association de Puertorriquenos En Marche, or APM. This second phase of the acquisition will allow for the development of newly-constructed home 7 ownership units. 8 The acquisition costs are estimated to be 9 1.15 million and will be paid for by OHCD. The 10 development cost of this second phase is anticipated 11 to be funded with a subsidy from OHCD and from the 12 home sale proceeds. 13 The first phase of the APM Home Ownership 14 Initiative is the development of 50 units of home 15 ownership housing marketed to low- and 16 moderate-income, first-time home buyers. Construction is scheduled to begin -- or it was scheduled to begin in November of this year. We have some delays that will hold that up. The Phase I properties are located on the 700 block of Berks, the 700 blocks of West Norris, the 17 and 1900 blocks of North Franklin, and the 1900 block of North Eighth Street. The Planning Commission, at their meeting on October 18, 2001, reviewed and approved this 20 12/5/01 RULES COMMITTEE - BILL 010648 amendment, and the Redevelopment Authority believes that these developments will result in enhanced communities. Mr. Chairperson and members of the committee, I respectfully request favorable consideration of Bill No. 010648 and would ask for the suspension of Council rules to allow for a first reading on December 6, 2001.
Thank you very much. Mr. Wetzel, I'm certainly very much supportive of all of these projects. I think all of them in their own right are very meritorious. But I'm a little bit confused as to the issue of the ability to acquire so many properties at such a large amount of money. I've been operating recently under the notion -- perhaps the mistaken notion -- that we don't have acquisition money and that this entire NTI discussion -- that is, the basis of part of the discussion is that we need to do this bond issue in order to get money to acquire properties.
It seems that you don't have NTI yet, but you seem to be very capable 21 12/5/01 RULES COMMITTEE - BILL 010648 of acquiring properties and moving projects forward. First of all, are these projects that have been in the pipeline for some time? are they new? how old are they? where's the money coming from for the acquisition?
And how does it get determined that these projects move forward and others don't?
Well, let me respond in a couple of these. First, you'll notice that a number of these are being paid for by private developers or PIDC, okay, so we could subtract those. For example, the Cecil B. Moore Home Ownership Zone, that funding's been in place for well over five years, and the money for acquisition comes out of that pot of money that the City was able to get. And, for example, in this case, Calcutta House is paying for the development costs themselves. PHA is paying for the acquisition in number 5, PIDC is paying for number 6. So most of these are funded -- the two that OHCD is paying for in here are projects that 22 12/5/01 RULES COMMITTEE - BILL 010648 have been in the pipeline for a long time in which funds were previously reserved for those particular projects.
Would it be possible to get a list of the projects that are -- with the exception of these, obviously, 'cause we're probably going to move these.
A list of the properties that are in the pipeline, what age they are.
And how much money is currently available. Could you have somebody -- is there somebody on your staff who could take some notations as to what -- 'cause I want some specific information.
We work with OHCD because we don't have all of the pipeline itself.
I just want to know what's been planned, what's in the pipeline, what 23 12/5/01 RULES COMMITTEE - BILL 010648 the sources of funding are, how old they are, what we have in the pipeline that's not funded, and what we expect the needs are.
And I'd also like a list of all of the developers who are involved in these nine particular developments. And then going forward, I would like to know who the developers are. Obviously some of them -- Calcutta House and others are obvious developers. The sorting operation is obviously --
Yeah, okay. But I would like to know on those that are not clear from the testimony who the developers are and what the companies are that are -- who the companies are that are involved. And I would like to make a request for that on a regular basis moving forward.
So where the developer is not listed, such as the PIDC taking American Street, you 24 12/5/01 RULES COMMITTEE - BILL 010648 would like to know that.
It's pretty obvious who it is and we obviously don't need that information from you 'cause we can get it from reading it.
All of the properties involved in this bill are Model City properties?
How many private dwellings will there be? If all of them were built on time, acquired, constructed, and sold, how many dwellings will there be?
The result of this? I can add that up for you, if you don't mind, and get it 25 12/5/01 RULES COMMITTEE - BILL 010648 to you afterwards. And some of this, Councilman, is an expansion of business. For example, City Sort is going to expand the business and --
So you want to know how many residential dwellings will result as --
All right. And while you're getting that, I would like to know -- I noticed a group of them -- I didn't get the number -- were involved in HIV assisted --
I would like to know by grouping how many are involved in HIV-assisted housing or in any other similar-type group housing. And if there's any development for senior citizens, 12/5/01 RULES COMMITTEE - BILL 010648 I'd like to know how many are senior citizens; if they're especially for low-income, how many there are.
And the third question I would have, which I assume you cannot provide today, but would like to have, is, I would like to know what the cost is going to be for the acquisition, construction, and ultimate sale of these properties all across involved, and what the purchase price will be to the resident who acquires them.
And then I would like the best estimate from RDA as to what those costs would be if this development took place in each of the following four counties -- and maybe it's the same, maybe it's different -- Montgomery, Chester, Bucks, and Delaware.
Are you sure you want to ask that question, Councilman? (Laughter.)
Yes. I think sometimes one has to face unpleasant truths. 27 12/5/01 RULES COMMITTEE - BILL 010648
And I think the day of truth is coming close at hand. And any explanation the RDA has based on its expertise. From your long service, which has been a distinguished career in RDA over many years, what do you believe is the reason for it? And the rough divisions would be, what's caused the differentials in labor costs and are they justified in the opinion of RDA?
Are there differences in material costs? Do the building codes require material to be used in Philadelphia which are more expensive than those required in the suburban counties? And what is the justification for that requirement?
Is what I request 28 12/5/01 RULES COMMITTEE - BILL 010648 doable?
We have to then research labor rates in the surrounding counties to come back with that answer, so --
Well, if I said I would like to be holding public hearings on that area before the end of February, would it be doable --
-- to give whatever the committee's assigned, the investigation or study of this?
Would it be doable in time for us to get that material?
Sure, sure. And I think there's already been some published information to that effect by the Philadelphia Inquirer.
I believe so too. With the assistance of the RDA, I think it could be done in a much more organized fashion and in a much more objective fashion. 29 12/5/01 RULES COMMITTEE - BILL 010648
Let me just understand what -- besides this last request, you'd like a breakout of these acquisitions, which ones are going to lead to home ownership, what are the costs going to be of those home ownership units to build, what are they going to sell for, which one of these are targeting a special-needs population like HIV AIDS or elderly, and what's the financing for those projects, and then the others are essentially economic development projects.
And did your list include what we generally call "subsidies"?
What it's going to cost as against what will be paid for.
Could I just ask -- maybe it's something you can provide --
-- prior to us leaving today. 30 12/5/01 RULES COMMITTEE - BILL 010648 On the residential properties, on the residential development projects, not the commercial stuff, do you have an average cost per property?
We could probably deliver that from the major developments. The problem we always have is, we should probably give you an average cost of new-construction units that are somewhat similar to each other and then rehabilitation units. A lot of times in projects that include both, you get a real distortion. The rehabs are just out of this world sometimes, especially when the Historic Commission imposes its requirements on a property. So if you wouldn't mind, we could take like two -- the West Poplar project and the Cecil B. Moore twin houses, new construction and give you an average cost and then look at some of the major rehab. Those three-story rehabs are a fortune to do. Is that okay?
Absolutely, if you want to segregate the rehab from new construction. I just need to know on average what we're paying for a new house and what we're paying for a 31 12/5/01 RULES COMMITTEE - BILL 010648 reconstructed house.
Also, could I just add -- I didn't mention it on my initial request for the information. I would like that information prior to the next time you guys come in for an acquisition hearing.
For an approval. I would like to have it prior to you coming in as opposed to the day you come in.
Yes, that's correct. Thank you. Any other questions for Mr. Wetzel? (No further questions.)
Thank you very much. Is there anyone else here to testify on this bill? (Witness comes forward.)
Good morning. Please identify yourself for the record.
Good morning, Mr. Chairman 32 12/5/01 RULES COMMITTEE - BILL 010648 and members of Council. My name is Catherine Califano for the Philadelphia Empowerment Zone, and I'm here today to speak in support of Bill No. 5 010468 on behalf of the Empowerment Zone and the Commerce Department.
I work for the Empowerment Zone. This amendment supports two projects of significant interest to the American Street Business community, the Commerce Department, and the Philadelphia Empowerment Zone. Specifically, we're interested in the City Sort project and the 200 North American Street project. Each of these projects will lead to new jobs for Philadelphia residents and help us restore land that is currently tax-delinquent, dilapidated buildings and turn it into productive use. The City Sort project and the 2100 North American Street project are located within the 33 12/5/01 RULES COMMITTEE - BILL 010648 American Street industrial corridor. They are part of the Designated Enterprise Zone, Philadelphia Empowerment Zone, and our Keystone Opportunity Zone parcels. City Sort -- the City Sort project entails the acquisition of vacant land next to the company's current facility. The property was abandoned by the owner. In the spring of 2000, the City was required to demolish approximately 10 multi-story buildings on that site. These structures were vacant for more than six years, dilapidated beyond repair, and a danger to the surrounding community. City Sort will build an addition for their production space, four loading docks, and off-street parking for their employees. They currently employ 50 -- excuse me, they currently employ 75 people, most of who are from the surrounding neighborhood, and will increase to an additional 50 jobs over the next three years. The second project, 2100 North American Street, is part of a larger effort to assemble land along the American Street Corridor. The American Street Corridor as a whole has been the subject of a great deal of time and attention by both the City 34 12/5/01 RULES COMMITTEE - BILL 010648 Planning Commission and the Commerce Department in their effort to assemble and identify developable parcels for industry. Past studies by the public sector and independent consultants have repeatedly concluded that in order to develop the American Street Industrial Corridor, we must assemble parcels of three acres or greater. Foremost among these parcels that have been identified is the 200 block of American Street. 5-acre parcel. This will enable us to attract a business who could build a building of 50,000 square feet. And this project has been studied with intensive due diligence. It is supported both by the American Street Business Association and the Commerce Department. In 1997, the Planning Commission conducted a study of land use along the American Street Corridor, and it found that there were more than 16 acres of vacant land in the area, yet no parcel was greater than one acre in size. This has stifled our ability to attract businesses to the area. Due to resources allocated from the 35 12/5/01 RULES COMMITTEE - BILL 010648 Commonwealth of Pennsylvania, we've been able to -- there have been funds identified to clear and assemble lots along the industrial corridor. These resources have assisted the City assemble land on the 1600, 1700, and 1800 blocks, as well as other parcels that the City owns on the 2000 block and partly on the 2100 block. Since the time that the American Street parcel was identified and prioritized, many City agencies and departments have devoted resources to making this project work. Both the area businesses and the community development corporations were consulted about this project, and all hope that it will result in the attraction of new jobs. This is the first site-assembly project of its type on North American Street, and the success of this project is critical to the overall redevelopment of the area. The Philadelphia Empowerment Zone continues to receive requests from private businesses and developers who are seeking to locate along American Street.
The Commerce Department and the Empowerment Zone are currently working with a Philadelphia-based company that is very interested 36 12/5/01 RULES COMMITTEE - BILL 010648 in the proposed location once it is assembled. This business will build a 50,000 square foot facility, retain 30 existing jobs, and create 30 new living-wage jobs for Philadelphia residents. Lastly, due to the location of this parcel along the American Street Corridor, it is best suited for supporting new industrial development. The land on or adjacent is currently zoned and used for industrial purposes. In an effort to continue to revitalize the American Street Corridor, we ask for your support of this bill. Thank you for your time.
Thank you very much for your testimony. Is there anyone else to testify on this bill? Any questions? Councilmember Clarke has a question for Mr. Wetzel.
Hi. Please identify 37 12/5/01 RULES COMMITTEE - BILL 010648 yourself for the record.
Good morning, Mr. Chairman, Councilmembers. My name is Kevin Vaughan and I am here testifying today as the President of the Board of Calcutta House. I'm off the City clock and not working for the library right now. I'd like to give you an overview of the current status of this project, Calcutta House. Calcutta House III will build new construction of nine units of housing at 1221 to 1233 North 19th Street, with adjacent parking and open space at 1827 to 1843 West Cabot Street in North Philadelphia for people living with HIV and AIDS. These blighted and vacant lots are located within the North Philadelphia Empowerment Zone and are currently an eyesore to the community. We are currently well into the design phase of the project and are prepared to receive the properties from the RDA in March 2002 and begin construction immediately. Calcutta House is Philadelphia's premier provider of housing for fragile persons living with AIDS. The target population for Calcutta House III is people in their last clinical stages of AIDS. 38 12/5/01 RULES COMMITTEE - BILL 010648 This development will provide a setting that will allow people to die peacefully in a dignified and serene hospice setting. The addition of Calcutta House III will allow people on waiting lists as well as residents of Calcutta Houses I and II to live in the most appropriate setting for the level of care they need. The research shows that mortality rates are declining and people are living longer and more productive lives. This is the need that Calcutta House I and II serve. The research also shows that people continue to die from this fatal disease and that there is a need for Calcutta House III as well. Calcutta House III is located in the North Philadelphia Empowerment Zone and it will contribute to the ongoing revitalization efforts of the community by transforming a now-vacant, blighted lot into new, supportive housing for nine individuals. As has been with Calcutta House I and III, it will be an asset to the community. Not only will Calcutta House III be participating in the revitalization efforts of the community, but it will be providing a much-needed supportive housing environment for people in the neighborhood who are 39 12/5/01 RULES COMMITTEE - BILL 010648 living with HIV and AIDS. The neighborhood has been very supportive. Mrs. Margaret Brock (ph.), the representative of the Francisville CDC, sits on the board of directors of Calcutta House, and Mrs. Brock is a member of the program committee of the board of directors and is involved in reviewing the plans and specifications for the development of Calcutta House III to assure it meets the program needs of the clients and the community. In anticipation of the project, the Calcutta House board has been discussing plans Calcutta House III for over one year now in the community. And in addition to Mrs. Brock, Mrs. Thelma Crutchfield, who's also a leader of the Cabot Street Community Neighbors, also sits on the board of directors. And I want to take this opportunity to thank Councilman Clarke for his continued support for Calcutta House, but specifically for helping us in the site selection of this particular site. We had been looking for almost a year for appropriate property, and it was Councilman Clarke and his office who actually helped us find this location. 40 12/5/01 RULES COMMITTEE - BILL 010648 And finally Steve (indiscernible), who is here in the audience with us, is our executive director. He has been newly-elected to the North Health Systems Community Advisory Council. This is a group of businesses and nonprofits and community groups unified for the betterment of the local community. I'm also joined today by Suzanne Stone, who's with (indiscernible) Project Management for the project as well, if you have any questions.
Thank you, Mr. Chairman. I just want to say, Mr. Vaughan, it's been a pleasure working with your organization, and you will be taking what is currently a very blighted condition and turning it into a wonderful facility, so I would like to thank you for continuing to do your great work up in North Philadelphia.
Thank you very much. Anyone else to testify on this bill? 41 12/5/01 RULES COMMITTEE - BILL 010648
I want to join with Councilman Clarke but, at the same time, express regrets for your having left City employment, where I think you were doing an outstanding job for many years. And it's good to see you in the public forum, addressing problems as important as these. Thank you.
Thank you, Councilman Cohen. But, Councilman, let me just say that I have returned to City employment, and I'm now the Associate Director of the Free Library System of the City. So if there's anything in that capacity that I can do to assist your office, I'd be more than happy to help out.
Thank you. Anyone else to testify on this bill? (Witness comes forward.)
Good morning. My name is Rose Gray. I'm Director for Association Puertorriquenos En Marcha. I'm here today in support of the bill 24 that allows us to expand our 50 units into 67 units. This project is a part of the 42 12/5/01 RULES COMMITTEE - BILL 010648 comprehensive plan that APM started years ago and is also a part of the State's Smart Growth Initiative to try to bring money back into urban areas. We not only have the support of the City on this, but we had $1.5 million from the State, encouraging development in inner cities and in particular, minority communities for home ownership opportunities. These houses will be sold to low- and moderate-income, starting at $55,000 to about an $80,000 sales price. This way, we create a mixed community. Currently, the average home sales price is between and $13,000. We want to keep the persons in our community, bring back the children into the community that can -- that are 80 percent or below median income. And it also is essential to the Temple University area as well as to the American Street Corridor. So we would appreciate your support as we go forward.
What's the average 43 12/5/01 RULES COMMITTEE - BILL 010648 price?
The average price for new construction is around $136,000 a unit.
The sale price is going between 55 and 80 as we grow the market. Sometimes you have to start a market where there is none.
No, I know. I think that most of what we do in the City here is much higher than what we're selling it for, but that's another story. Okay, thank you very much.
Is there anyone else to testify on this bill? (No response.)
Seeing none, the next bill is Bill No. 010649, which is an ordinance 20 amending an ordinance approved December 22, 1987, which approved the redevelopment proposal and the urban renewal plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the Cecil B. Avenue urban renewal area by approving the ninth amendment of the redevelopment proposal, 44 12/5/01 RULES COMMITTEE - BILL 010649 the ninth amendment to the urban renewal plan, and the sixth amendment to the relocation plan by providing for certain changes, namely, the acquisition properties for residential and related 6 reuse; by authorizing certain expressly-designated 7 condemnation proceedings; provision of certain 8 relocation services as required by law; declaring that condemnation is not imminent with respect to the project; all as contained in the ninth amendment of the redevelopment proposal and the ninth amendment to the urban renewal plan. Please identify yourself for the record.
Herbert Wetzel, Executive Director of the Philadelphia Redevelopment Authority. Mr. Chairman and members of the Rules Committee, I'm here to speak in support of Bill No. 19 010649, which is the ninth amendment to the redevelopment proposal and the ninth amendment to the urban renewal plan for the North Philadelphia Redevelopment Area in the Cecil B. Moore Urban Renewal Area. This area is generally bounded by Montgomery Avenue, Carlisle Street, 19th Street, and Jefferson Street. 45 12/5/01 RULES COMMITTEE - BILL 010649 This bill would authorize the Redevelopment Authority to acquire certain properties to facilitate a development to be known as "Oxford Village." Oxford Village will require acquisition of eight properties, one of which is occupied, in the and 1600 blocks of North 15th 8 Street on behalf of Beech Interplex Inc. 9 Acquisition costs are estimated to be 10 $525,025. These costs will be borne by the 11 developer, Beech Interplex. 12 The project will combine these eight will 13 eleven presently in the RDA's inventory and six more 14 that are already in Beech's ownership. The result 15 will be 120 market-rate rental units. The project will consist of both rehabilitation and new-construction units. Beech has applied for tax-exempt bonds through the Redevelopment Authority to finance this $10 million project. These amendments, which will result in the enhancement of the community were approved by the Planning Commission at their meeting of October 18, 2001. Mr. Chairperson and members of the committee, I respectfully request favorable 46 12/5/01 RULES COMMITTEE - BILL 010649 consideration of Bill 010649 and would ask for the suspension of Council rules to allow for first reading on December 6, 2001.
Mr. Wetzel, just an amendment to the series of questions I asked you. I would like to ask you to include, when you determine the amount of the subsidy involved, who pays what -- federal, state, city.
Thank you very much Is there anyone else to testify on this bill? Please come forward. (Witness comes forward.)
Good morning. Please identify yourself for the record. BEECH INTERPLEX REP: Good morning. My name is Cal (indiscernible), the Vice President of 47 12/5/01 RULES COMMITTEE - BILL 010649 Beech Interplex and I'm sitting in this morning for Floyd Alston, the President of the Beech Interplex. We're asking for your support of this bill. We're working continuously in the Cecil B. Moore community, restoring it. You know it's an urban renewal area. Over the past years, we have done close 9 to 300 units now of new housing that's been 10 subsidized for-sale housing and also some rental homes. This block here, which is unique, we've been working diligently with Councilman Clarke to try to bring some private investment into the community not only in commercial development but also to bring the housing up to where we can just do market-rate housing. So, again, I just ask for your support of the bill.
That will conclude the public hearing. Councilmember Clarke.
Thank you, 48 12/5/01 RULES COMMITTEE - BILL 010649 Mr. Chairman. Mr. Wetzel, I just have one question with respects to the acquisition process. Can you briefly walk me through that process, particularly in terms of the timeline so we can -- I think I know, but I just want to get a sense of how this actually takes to get to this point.
Well, that's the mystery we're unravelling right now. Essentially what we're doing -- the stage of the process we're in right now is the process of Council authorizing us to proceed. Under the Pennsylvania Urban Renewal statutes, we cannot proceed in taking properties without an ordinace. And then we will be back to Council on any one of these particular parcels for resolution of Council to dispose of them to these individual developers. So, for example, when Calcutta House -- when those properties are eventually brought into our inventory and then disposed of, we'll be back for a resolution. We've got a number of steps. As you may not know, and I'll let Councilmembers know, we've engaged a consulting firm to come in and document 49 12/5/01 RULES COMMITTEE - BILL 010649 all of the steps in the urban renewal and the Act 94 process and putting a timeline on that. I have a preliminary report that I'd be willing to share with you that shows each of the steps and the length of the time that it takes to engage in each one of those. As you can see, for example, we've had to go before the Planning Commission before we could come to Council, for example, with this particular ordinance. So what we have now is a very detailed documentation of each of the steps, including -- which I think is good -- for the first time is if there's a step that has a statutory requirement to it, then that statute is listed right next to the step. You know, so if it's -- for whatever steps there are legal requirements under state statutes or federal statutes, we're documenting that. I would like to be able to share that with you and other members of Council in terms of both the steps and the length of time it takes, and I can't answer it off the top of my head, but I'd be glad to share it with you.
All right. Can you 50 12/5/01 RULES COMMITTEE - BILL 010649 just give me a guesstimate of how long it takes to --
I generally say it takes nine months from the inception of a urban renewal condemnation to completion. It's generally nine months. And that all depends on the timing of everything and us getting the Planning Commission approvals in a timely manner and things like that. Generally nine months. A lot of times the Act 94s take longer, sometimes 12 to 15 months. I mean, it certainly has to be improved. I mean, this is not acceptable to take this long.
The consultant is Staff Masters is the name of the organization. The gentleman's name is Michael Jones, and he has worked for the City before. He has worked on the computerization of the corrections system, and he's a very detailed individual, the kind of individual 51 12/5/01 RULES COMMITTEE - BILL 010649 that would really need to get down into the nuts and bolts of what makes this system work and not work.
And what was the cost -- what was the price of the contract?
In preparing that kind of -- I'll call it a flow chart, it may not be that.
But in preparing that, has there been any studies as to what delays are caused, say, by the State government, what delays are caused by the federal government and the City 52 12/5/01 RULES COMMITTEE - BILL 010649 government with respect to things that could be changed?
And could that be prepared in a general way with what the results of the studies so far have been so that we can get an understanding? We're told often that State laws are antiquated. We'd love to believe that that's the only thing, and then we ask the next question, why hasn't anybody done anything? Well, maybe they have. We'd like to know that. If it's City laws that need to be changed, we'd like to know why haven't they been and what's needed to do that.
Ever since my first day in City Council, dating back to 1968, I've heard the same refrain always: "It takes us years to move anything because of antiquated City and State laws." I've never heard the federal government as yet implicated in the delays on land acquisition, but I'm sure there must be cases of that too. 53 12/5/01 RULES COMMITTEE - BILL 010649 It would be have helpful to help guide us in deciding finally to come to grips with the task.
Yeah, I think there's -- if I were to define the three elements that really need to be dealt with in terms of improving the lands assembly system, one is automation. This is an entirely manual system. We're in 2001. Everything we do in terms of land assembly is essentially a manual system, and it has to be automated. The second piece is legislative reform, you know, where do the laws slow the process down and prohibit us from moving quickly to acquire the land? And the other is essentially reforming any kind of procedures that have cropped up over the years that aren't connected with law whatsoever. It's just something happened 15 years ago and somebody said, Well, Let's put this procedure in. Every time that happens, it usually ends up adding time to the whole process. So in re-engineering this, we're looking at the policy changes that could be done, legislative changes that can happen at the City and State level, and the automation of the system itself 54 12/5/01 RULES COMMITTEE - BILL 010649 to create both tracking and accountability within the system. I mean, those are the three main elements that we're addressing now in trying to improve this system. And I agree with you. I mean, we've got some proposed changes in the law that would help us expedite what's called the "Act 94 Spot Condemnation Law." For example, there is no definition of "vacant" in that law that's clear. So if a property is occupied by unauthorized individuals, you can't condemn it. Even though the owner has walked away, if there's an unauthorized person living there, you can't condemn that property, as an example, Councilman. So it sits there and deteriorates, and then those people will move out to somewhere else, but during that period under that law, you can't condemn that property. I mean, those are the kinds of antiquated parts of the law that need to be changed.
Well, I think everybody will be grateful to you at the RDA if you can come up with a list that we can get our teeth into. 55 12/5/01 RULES COMMITTEE - BILL 010649
I'd be grateful for the day that we can talk in here and talk about a system that really serves the City of Philadelphia rather than hinders the City. I think the system we have now hinders development and hinders our ability to improve ourselves, and it has to --
The consultant's report should be done around mid-January to late January in terms of the recommendations of both automation and policy issues that could be changed. And, of course, policy is something that doesn't require, you know, legislation; that's a matter of political will. But then there's also the legislative side of this that we would be glad to share with Council.