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Minutes

Committee Hearing, May 31, 2000

Philadelphia City Council Committee HearingsMay 31, 2000

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, May 31, 2000 11:35 a.m. - - - BILL NO. 000179 - Amending Section 12-2809 of The Philadelphia Code, which prescribes civil penalties and costs for violations of the Philadelphia Traffic Code - - - PRESENT: COUNCILWOMAN ANNA C. VERNA, Chair COUNCILMAN DAVID COHEN, Vice-Chair COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DiCICCO COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center Plaza, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X BILL 000179 PAGE Joseph S. Martz, Managing Director, City of Philadelphia-------------------------------- BILL 000260 William P. Hankowsky, President, PIDC--------- - - - PUBLIC MEETING------------------------------- 40 - - - 3 BILL NO. 000179

President Verna

May I ask all Council Members to please come to the chamber. Thank you. Good morning. This is the Public Hearing of the Committee of the Whole. I regret the delay. And I would ask Mr. McPherson to please read the title of Bill No. 179. MR. McPHERSON: Bill No. 179, an Ordinance amending Section 12-2809 of The Philadelphia Code, which prescribes the civil penalties and cause for violations of the Philadelphia Traffic Code by increasing the civil penalty for violations of Section 12-1120.

President Verna

Good morning. Please identify yourself for the record and proceed with your testimony.

Mr. Joseph S. Martz

Good morning, Madam President and members of Council. I am Joseph Martz, Managing Director of the City of Philadelphia. I am joined today by Chief Inspector Richard Bullock, of the Police Department's Automotive Services Bureau, and Sergeant Chris Bea, who is the Supervisor of the Abandoned Vehicle Unit 4 BILL NO. 000179 of the Philadelphia Police Department. I am here today to testify in support of Council Bill 179, which raises the fine for abandoning a vehicle, parking an unregistered vehicle, or parking without a driver's license from $100 to $300. I would like to thank Councilman Mariano, Councilman Clarke, Councilwoman Miller, and Councilman Ortiz for sponsoring this legislation. As you may recall, at the initial briefing that we held for City Council in March regarding the city's abandoned vehicle program, the Administration proposed raising the fine for abandoning a vehicle to $300, the maximum fine that can be imposed by City Council. As you may all know, at that briefing, the Administration outlined its 40-day plan to eliminate the existing backlog of abandoned vehicles from city streets. I am happy to report that this program has been an overwhelming success. Since the program began on April 3, the city has towed over 33,000 abandoned vehicles, almost as many as were towed in all of 1999. In addition, many more vehicles that 5 BILL NO. 000179 were initially believed to be abandoned were identified as stolen and returned to their rightful owners, and more removed from streets onto private lots, were reregistered and reinspected. I want to thank all of you for your support throughout this process. We truly could not have done it without the help of City Council. While the success of this program has been impressive, there is no question that we still have a lot of work to do to help ensure that the number of abandoned vehicles never reaches the level it had prior to this program. I believe that the passage of this bill is an important first step in achieving this goal. By imposing the highest possible fine, you will be sending a powerful message to individuals that when they abandon vehicles on our streets, they will be held accountable for their actions. Enacting this legislation will also reaffirm the city's commitment to improving the quality of life for all city residents and making the city a more livable place to work and raise families. 6 BILL NO. 000179 This concludes my testimony. Thank you for providing me with the opportunity to testify here today, and we are all happy to answer questions.

President Verna

Thank you, Mr. Martz. Will this program be ongoing? And if it is not, can you tell us what we will do in the future.

Mr. Martz

Madam President, this program will be ongoing.

President Verna

To the extent that it has been for the last several months?

Mr. Martz

Well, the only aspect that would be different is that, for the past 40 days, we have been providing a supplemental fee to the towing agencies to help us remove the actual backlog of what we had estimated to be about 40,000 vehicles, and what ultimately was 33,000 vehicles. That has stopped. But our efforts in a consolidated unit of the Philadelphia Police Department will continue indefinitely.

President Verna

Wonderful. Thank 7 BILL NO. 000179 you. Are there any questions from members of the committee? Thank you very much.

Mr. Martz

Thank you.

President Verna

Do we have anyone else to testify on this bill? (No response.)

President Verna

At this time I would ask Mr. McPherson to please read the title of Bill No. 260. MR. McPHERSON: An Ordinance creating the Silver City Tax Increment Financing District and improving the project plan of the Philadelphia Authority for Industrial Development for the redevelopment of the Silver City Tax Increment Financing District.

President Verna

Good morning. I am sorry you were kept waiting so long. Good morning. Identify yourself for the record, please.

Mr. William P. Hankowsky

I am Bill 24 Hankowsky, President of the Philadelphia Industrial Development Corporation. 8 BILL NO. 000179 If you would like, I will proceed with my testimony.

President Verna

Please.

Mr. Hankowsky

Good morning, President Verna and Members of City Council. I am here to testify on behalf of the Philadelphia Authority for Industrial Development and in support of Bill No. 260, creating the Silver City Tax Increment Financing District, which is located at the northeast corner of Broad and Washington in South Philadelphia. Creation of the Silver City TIF will enable the developer, an affiliate of Treyball Development, Inc., to development a 500,000-square-foot studio and office complex that will include television studios and offices for Fox Television, music studios for Will Smith, a 155,000-square-foot high-technology office building, 30,000 square feet of retail and public areas, and approximately 650 public parking spaces. The city and school district are being asked to approve a $9 million TIF loan for this approximately $70 million project. This TIF would be repaid from the new 9 BILL NO. 000179 real estate, city sales, and business privilege taxes, and we are not proposing to use use and occupancy taxes for this project. I should note, just for the record, that we are also proposing a four and a half million dollar economic stimulus loan as an additional city support for this project. Completion of this project represents $70 million of investment and a 6.2 acre vacant piece of land which is currently valued at around four and a half million dollars. This investment translates into new annual revenues of $695,000 for the Philadelphia School District and $715,000 for the city. Over the term of the district, new revenues will total 14.8 million for the school district and 17 million for the city. Additional public benefits include anchoring the southern edge of the Avenue of the Arts, construction of an E-commerce adaptable office space, and the creation and retention of 700 construction jobs and 460 full-time equivalent permanent jobs. Since introduction of this bill on 10 BILL NO. 000179 April 27, PIDC has met with City Council, Council staff, and representatives of the school district to review the project plan. On Monday, May 8, 2000, the school district agreed by resolution to participate in the district, should it be created by this Council. Several changes have also been made to the project plan since introduction to accommodate the addition of surface parking and the reduction of certain projected financing costs. The total square footage has increased from 410,000 square feet, to 500,000 square feet, with the addition of the surface parking. The finance and cost savings of approximately 370,000 have reduced the project budget from 70.2 million, to 69.8 million and reduced the, quote, funding gap from 6.4 million, to 6.1 million. The plan requires the developer to finance this gap with either additional private funding or noncity public funds. Finally, language in the project plan has been clarified to require a minimum private 11 BILL NO. 000179 investment of 50.3 million and indicate that no 3 Council approval changes subsequent to the settlement of financing will be required. The project plan has been amended and restated to reflect these changes and is on file 7 with the Chief Clerk of City Council for public view. Again, as I often do in closing, just remind members of Council that today's hearing is required by the Pennsylvania Tax Increment Financing Act to create a TIF district, and the Act requires that Council within three weeks from final consideration, which would imply action, hopefully, should this body deem it appropriate, at Council's meeting of June 22, 2000. Again, I would ask your approval of Bill 260, and I am happy to answer any questions that you may have at this time.

President Verna

Thank you. Mr. Hankowsky, based upon PIDC's analysis, this $70 million project can support $50 million in private equity and/or debt, which leaves a funding debt of approximately $20 million; is that correct? 12 BILL NO. 000179

Mr. Hankowsky

That's correct.

President Verna

PIDC has proposed that this remaining gap be reduced to $6.5 million by a TIF note of $9 million supported by real estate taxes, sales tax, and the business privilege tax, and a $4.5 million loan from PIDC; is that correct?

Mr. Hankowsky

That is also correct.

President Verna

How do you propose that this remaining gap be closed?

Mr. Hankowsky

Well, in our discussions with the developer, it has been proposed that it be closed in one of two ways or a combination of the two ways. One is the possibility of obtaining additional public funds from sources other than the City of Philadelphia; for example, the Commonwealth of Pennsylvania. And discussions have been underway between the developer and the Commonwealth about the potential for the state to provide certain funding. So one would be other noncity public sources. And then, to the degree those are not available, or not available to close it in its 13 BILL NO. 000179 entirety, the developer would provide additional either private debt or equity to, quote, close the gap.

President Verna

The Chair recognizes Councilman Goode.

Councilman Goode

Thank you, Madam President. Good morning, Mr. Hankowsky.

Mr. Hankowsky

Good morning, Councilman.

Councilman Goode

Is this bill still amendable timewise?

President Verna

I am sorry; I didn't hear your question.

Councilman Goode

Is this bill still amendable timewise?

Mr. Hankowsky

Yes. In other words, if Council would wish to amend it at today's hearing, you know, reporting it out.

Councilman Goode

But subsequent to today's hearing, it is not amendable?

Mr. Hankowsky

Well, let me answer it technically and then practically. Council can always do it what it wants, but then we would lose the schedule of having 14 BILL NO. 000179 it done by the 22nd. I think that's where you were going with your question. That's right.

Councilman Goode

Yes. TIF districts are areas that are certified as blighted; is that correct?

Mr. Hankowsky

Right. That's right; by the Planning Commission.

Councilman Goode

That was my next question. For the record, certified by whom? And what are the boundaries of the area that was certified as blighted?

Mr. Hankowsky

For this district?

Councilman Goode

No; in the blight certification, what was the area that was certified as being blighted?

Mr. Hankowsky

Oh, I honestly can't say that immediately off the top of my head. I believe it is an area wider than this project area.

Councilman Goode

So is the entire area certified as blighted given a tax incentive, or your just your client?

Mr. Hankowsky

No. Let me just be clear. 15 BILL NO. 000179 The Planning Commission, pursuant to a state statute that has six criteria, can make an ascertation of an area being blighted. And the Planning Commission does that periodically. And there are area of the city that have been, quote, unquote, deemed blighted, certified. There is a certain certification.

Councilman Goode

So a larger area than the project area was certified?

Mr. Hankowsky

I mean, citywide, that happens. That's the case here.

Councilman Goode

But for the purpose of this TIF district, an area larger than the TIF district was certified as being blighted?

Mr. Hankowsky

It is called the South Central Redevelopmentment Area. Which was done previous to this project. In other words, it was an existing area that had been determined blighted. Then this project came along, and it is within that area. We didn't blight this for this project, is what I'm saying.

Councilman Goode

I understand that. But as proposed, this only project receiving 16 BILL NO. 000179 a tax incentive within that blighted area is your client; is that correct?

Mr. Hankowsky

I'm not sure that's -- honestly, I'm not sure I could answer that or that's accurate. In other words, it is conceivable -- for example, immediately adjacent it is the school district's Creative and Performing Arts School, which there was a recipient of city capital dollars, state redevelopment assistance dollars, private fundraising to renovate what we all used to call the Ridgeway Library. So there have been other public dollars committed in the area.

Councilman Goode

Maybe I shouldn't use the word "tax incentive." Let me say, the only project receiving tax increment financing within that blighted area is your client?

Mr. Hankowsky

No. We also did one just a week ago, when we did the one at 9th and Washington, the 9th Street Retail Project. It is in the same South Central Redevelopment Area.

Councilman Goode

How large is that area, the redevelopment area.

Mr. Hankowsky

I don't know off the 17 BILL NO. 000179 top of my head. The whole redevelopment area? I don't know off the top of my head. I would have to get that for you.

Councilman Goode

Has PIDC or PAID ever established a TIF district before taking on a client, decided there is a blighted area, such as the south --

Mr. Hankowsky

Right. There is one instance of where that was done, and that was the Philadelphia Naval Business Center.

Councilman Goode

That's the only time it was done. Have you ever considered as a strategy actually developing a TIF district first?

Mr. Hankowsky

No. 18 Let me be precise about why I say it the way I say it. And, actually, there is one other instance where we established the district before we had the project done. So one is the Naval Business Center, the other is the West Parkside Retail Area, where we established a TIF, and then went through an RFP to select a developer, where we proactively said, we 18 BILL NO. 000179 think there should be a neighborhood retail shopping center, actually went out and acquired property to create the site, created the incentive package, said to the development community, you know, who was interested. And, in fact, currently the community, by its financial trust institution and the developer, are negotiating their agreement. But generally we want to -- you generally would want to keep the establishment of the district fairly coterminus with the capacity to proceed with the development. Because the district can only be 15 years. So you are sort of burning down, you know, 16 the notion of the benefit, the incentive. And so 17 you want to be able to have it available to get sort 18 of the highest investment you could get. 19 But we have thought about it, yes. 20 So we have done it twice.

Councilman Goode

And that is consistent with how TIFs are done in other areas of the country; is that correct?

Mr. Hankowsky

TIFs are done in a variety of ways throughout the country. 19 BILL NO. 000179 The sort of stereotypical, traditional TIF, so to speak, was take a generally undeveloped or blighted area, establishing a district, often having the public bond for streets and infrastructure to create the physical plant, and then soliciting development subsequent.

Councilman Goode

And that would be the most equitable access to tax increment financing, would it not?

Mr. Hankowsky

No, I don't agree with that.

Councilman Goode

That would not be the most equitable way ti do it?

Mr. Hankowsky

No. 16

Councilman Goode

Why not?

Mr. Hankowsky

Well, I think there are a variety of issues. One is that, history of TIFs done that way is a spotty history. Because there are a number of instances where the public did that, bonded for it, put in the infrastructure, and the development did not happen, and subsequently those bonds defaulted or the public had to pick it up. And, therefore, you actually find 20 BILL NO. 000179 scenarios where Wall Street is somewhat cautious about bonded TIFs. So the model that has been used in Philadelphia, which has now become a model for other cities that have come to us, is actually using a TIF where we actually said to the developer, you go find the capital which the TIF revenues will support, and the lending risk is now in the hands of the developer, not in the hands of the public. So, one, we think it is a better risk apportionment model. Secondly, I think the question of equitable, if there were other scenarios where it would make sense to TIF an area to induce development, we can do that. I don't think this is an either/or proposition. So we can both do it in situations where we might see the advantage of inducing development to happen, and private development, by using the advantages of this program, but we can also use it in a situation where the private sector brings forth projects that the public deems are appropriate to support. So we can do it either way.

Councilman Goode

Have you had an 21 BILL NO. 000179 opportunity to discuss the TIF program with our new finance director?

Mr. Hankowsky

I'm sorry?

Councilman Goode

Have you had the opportunity to discuss the TIF program with our new finance director?

Mr. Hankowsky

I have not.

Councilman Goode

She happens to be an expert on how TIFs are done by district first. At any point did PIDC or PAID consult with Universal Community Homes regarding this project?

Mr. Hankowsky

Regarding this project?

Councilman Goode

Regarding this project.

Mr. Hankowsky

I think the answer is no. 20 We are in dialogue with them about some projects they are looking at, but I don't believe we have talked to them about this project.

Councilman Goode

That is, actually, the developer within that area probably most aggressively dealing with blight; is that correct? 22 BILL NO. 000179

Mr. Hankowsky

That's correct.

Councilman Goode

So why wouldn't PIDC or PAID consult with Universal Community Homes about other projects or the development that should be taking place?

Mr. Hankowsky

We have. Your question was whether we talked to them about this project. We have talked to them about other potential projects in that area.

Councilman Goode

Is there coordination?

Councilman Goode

Well, I mean, essentially, this is a $70 million project?

Mr. Hankowsky

That's what it is anticipated to be.

Councilman Goode

And you have not talked to Universal Community Homes about this project, as a major developer there trying to eliminate blight?

President Verna

The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you. Maybe I can answer that a little bit. 23 BILL NO. 000179 I have had several conversations with Kenney Gamble and Raheme Ism, who are principals at Universal Studios. And, yes, they are doing a great job in eliminating blight. In fact, this Council recognized the fine work of Kenney Gamble a few weeks ago. And I had suggested to Kenney Gamble, and I have also suggested to Harry Smith, who is one of the principals in Trade Law, that they continue to talk about some possible joint venture there. I can't make those decisions for developers. The numbers obviously have to work for both parties. But I asked them to engage in conversation. And maybe we can ask that question of Mr. Smith and his attorney when they come up to testify.

Councilman Goode

My understanding is you talked with Mr. Gamble and Universal Community Homes. I am sure you talked to, as a good district Council person, talked with your constituency. My question was whether PIDC or PAID, as the economic development agency, are coordinating 24 BILL NO. 000179 efforts within that redevelopment area. COUNCILMAN DiCICCO: They can answer that question.

Councilman Goode

My question, actually, was to PIDC and PAID.

Mr. Hankowsky

And I answered. Which is, we are working with Universal Homes on potential projects they have in this area.

Councilman Goode

And do you believe that there are projects within that redevelopment area sponsored by Universal Community Homes that could receive tax increment financing?

Mr. Hankowsky

There is a potential that that may occur, yes.

Councilman Goode

And should this bill be amended now or in the future to probably include some of those development projects, or is there more in that development area?

Mr. Hankowsky

I don't think you could amend it at this moment because you don't have the defined projects, you don't know the size of the TIF Note, you don't know that tax streams. And I'm not sure how you would develop a project plan.

Councilman Goode

Of course we have 25 BILL NO. 000179 defined projects there.

Mr. Hankowsky

I'm sorry?

Councilman Goode

Universal Community Homes has a series of defined projects there with financing --

Mr. Hankowsky

Councilman, if I could respond, which I would be happy to do. In order to amend it, you need to amend the project plan. In order to amend the project plan, you need to define which tax streams, which revenue sources. And we don't have those in place. You can easily come back at a point where the project is ready to go and do a TIF district for a project.

Councilman Goode

You don't have them in place because you never had the appropriate conversation with Universal Community Homes.

Mr. Hankowsky

I don't agree with that.

Councilman Goode

Okay. We disagree, then. Thank you very much.

Mr. Hankowsky

Sure. BILL NO. 000179

President Verna

Thank you. Councilman DiCicco, your light was on. Do you want to be recognized? COUNCILMAN DiCICCO: Yes. I will be offering an amendment to this TIF. And I am not sure if this is the appropriate time or not. I just would like to speak on it for a moment or two. As you know, Madam President, we have been dealing with the proposal to do the Silver City development at Broad and Washington Avenue for, I guess, the better part of a year, year and a half, because there are two phases to the proposed development. One is on the east side of Broad Street that I represent, and on the west side, as would be Phase Two, and that's the area that you represent. And this TIF and development project plan has been discussed at numerous meetings. In fact, I held the introduction of this bill a couple of months ago because I wasn't comfortable with some of the terms in the project plan as it relates to the financing and the city's participation in the U & O and the other taxes that would have been TIFed. 27 BILL NO. 000179 And originally when this project was presented to us, and if memory serves me correct, I think the developer was looking for 100 percent of the Use and Occupancy to be TIFed at that time. And we were not comfortable with that, given the light of the situation that we were anticipating with the school district and other things that we were working on. And through numerous negotiations and adjustments to the project, the developer had agreed that they would make up some of the gap in the financing, and they could live with a 50 percent TIF, U & O being TIFed up to 50 percent. Subsequent to that and other conversations, I had introduced a bill which brings us here today. For some reason, when the Administration sent up the TIF to be presented by PIDC, or were anticipating sending it up, they indicated to me they would not have any U & O TIFed. I had a conversation with the Mayor a couple of weeks ago in one of our Thursday lunch briefings, asked him as to the reason why it was not 28 BILL NO. 000179 coming up. He thought that Council may not be supportive of the TIF with U & O being TIFed. I was pretty comfortable, having some discussions with several members of Council, that there were the votes to support the Silver City TIF with 50 percent of the U & O. I attempted, since Friday, to have another conversation with the Administration, was unsuccessful in having that conversation, because it was my understanding that the TIF was going to come up exactly the way it was originally prepared, proposed a few weeks ago, and that being that there would be no U & O TIFed. I have concern that this project is in jeopardy if we don't make the adjustments to the proposed TIF that we have this morning, in particular in the area of U & O. The developer will probably be up to testify. They have made an agreement with me that any additional funding that needs to be acquired, if they don't find it through outside city sources, that the developer will in fact make up the difference of about 5.1, if I'm not mistaken, somewhere around $5 million or so in a -- you are 29 BILL NO. 000179 looking at me, Bill. Could you correct that number?

Mr. Hankowsky

I think it is five after 50 percent. COUNCILMAN DiCICCO: After 50 percent of the U & O, there is still about a $5.1 million gap in the funding for this project. And they have guaranteed, if they're not able to, for whatever reason, find it through outside sources, outside of the City of Philadelphia sources, whether they can find it through the state, DRPA, which they are attempting to do, that they will fund that gap, that would be privately funded. Again, I will not certain if I should make the amendment now. I know a couple of other members might want to talk to me about it. I will be over to see you in a moment, Councilman Clark. But I will be proposing that amendment. And, again, from a technical point of view, is it appropriate for me to offer that amendment now or do I wait for the public meeting?

President Verna

We have other Council Members, I believe, who want to be recognized. So maybe we could do that at the 30 BILL NO. 000179 conclusion. COUNCILMAN DiCICCO: Okay. I will wait. Thank you.

President Verna

Thank you. The Chair recognizes Councilwoman Brown.

Councilwoman Brown

Good morning. Thank you, Madam Chair. Good morning, gentlemen. How are you both?

Mr. Hankowsky

Good, thank you.

Councilwoman Brown

I want to again register my broken record on the record with regards to the bridge and the linking that I think we have the potential to do. I guess this is my fourth or fifth opportunity to sit through a TIF. And based on my limited understanding, both formal and informal conversations I have had with the parties around this, this appears to be the first where there is a tangible, clear linkage between the economic development piece and programs for children and youth. And I am encouraged to hear that 31 BILL NO. 000179 there will be a linkage with the High School of Performing Arts, which suggests that it is possible, if it is put on the table and talked through. So I want to register that again with you as a preamble to our more lengthy discussions where you will help me understand in greater detail how we can bridge those two worlds.

Mr. Hankowsky

I understand. And I register your registering again. And, as you know, we introduced these all roughly a month ago because there is a requirement for that period of time. And then we had the hearings on the four TIFs before this TIF a week or so ago. But I think we have an opportunity. As I said, these are the last ones for the spring. And we will have an opportunity to have a dialogue before we consider any that we might to bring before this body in the fall, to have this dialogue.

Councilwoman Brown

Let me just ask a process question. Here a linkage exists. Was it a suggestion, the parties, the Silver City parties, brought to the table a possibility? Where did the spark happen? 32 BILL NO. 000179

Mr. Hankowsky

Well, I think the spark happened, actually, in very early discussions about this potential project. Given its location on the Avenue of the Arts and the various components that sit on the Avenue, you know, Brandywine, the Clef Club, and all the various activities, that there's been at least a consistent thought of urging those various activities to think about, I will use the term, an educational component. So that the Avenue of the Arts, though it is a great hospitality sales piece, is also a vehicle by which Philadelphia youth can enter that industry, so to speak, of entertainment and whatever. And to the degree these facilities, music recording studios and others exist, suddenly you have places where apprenticeships for students at CAPA can happen. You know, now they can be apprentices at the Wilma, if they were interested in stage production. And here they can be an apprentice or in a training regimen for another aspect of that wider entertainment envelope. 33 BILL NO. 000179 And this party, being Treball, is very interested in that. And so a simple suggestion was enough to say, yes, we would like to figure out how to do that.

Councilwoman Brown

And it makes good sense to do it, given where it sits. I also want to underscore, in closing, Councilman Michael Nutter's request of the report, and have a column or something that speaks to the fact that this is one of two. Because the only other one was the TIF in Councilman Darryl Clarke's district that shows linkage. Because that's an important piece of this decisionmaking for me. So I do not recall Councilman Michael Nutter offering up a proposed deadline, for lack of a better word, when we can get that report. So let my ask you, when can we anticipate the full report?

Mr. Hankowsky

Actually, I think, some of the material we actually provided to the Councilperson's office this morning. I don't think it has been distributed. But we didn't have that column, so we can add that. 34 BILL NO. 000179

Councilwoman Brown

Okay then.

Mr. Hankowsky

We tried to prepare some of that, at least, for this morning.

Councilwoman Brown

Thank you. Thank you, Madam Chair.

President Verna

You are welcome. The Chair recognizes Councilwoman Tasco.

Councilwoman Tasco

Thank you. The other day we were talking about the linkage issue. And you said that the state, enabling legislation is from the state, the TIF legislation is from the state.

Mr. Hankowsky

Yes. Yes.

Councilwoman Tasco

It is it does not allow for linkage to anything else. Will we have to go back to the state for an amendment to the legislation?

Mr. Hankowsky

If I gave an answer that led you to believe that, that's not what I meant to say. And part of the problem, probably one of the issues here is, quote, unquote, what do we mean by "linkage." 35 BILL NO. 000179 The state statute tells you what taxes you can TIF and then what are eligible expenses you can use those taxes for in a project. And I'm not a lawyer, and I didn't do legal research on this. So, for example, I'm not sure we could take a TIF dollar from a project and, you know, fund the school district or Community College summer program. On the other hand, you might be able to create a scenario -- and the Councilwoman, I think, was sort of speaking to this -- where in the project you're talking about, the one you are talking about, that you say, let's support having -- you know, you develop, or we are going to do X. Why don't you do X plus a daycare center. Why don't you do X plus, for example, the Networks Project up on Spring Garden that we talked about, you know, again, about a week or so ago. They are putting in a computer lab on the first floor for community use as part of their E-commerce. And these are things that developers have been thinking about. Or we say, that's a good idea, why don't you do it. 36 BILL NO. 000179 We could think about something what is a more, you know, what is the, I will use the term, community component of your project, which could be an eligible project expense and doable under the current law. We wouldn't have to ask the state's permission.

Councilwoman Tasco

It would be part of the developer's contribution.

Mr. Hankowsky

I think perhaps what I was responding to previously was the notion of taking that TIF dollar out of the project and sending it somewhere else. I'm not sure we can do that under the state statute.

Councilwoman Tasco

Okay.

President Verna

Thank you. The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

Thank you, Madam President. I am very happy to support this project and will remind my colleagues that at Penn we are building a center so that we will be number one in the nation. But it means we will be losing the 37 BILL NO. 000179 convention center and that part where we made movies like Sixth Sense and Beloved, the Oprah Winfrey movie. And we are really, really, really going to need this facility. So certainly we are very happy to support it, and invite them to come into West Philadelphia, where we can always use a certainly added investment. Thank you.

President Verna

We would rather they be in South Philadelphia. Thank you, Councilwoman. Any other questions of Mr. Hankowsky? The Chair recognizes Councilman Nutter.

Mr. Hankowsky

I saw that quick movement.

Councilman Nutter

I can be very quick, Mr. Hankowsky.

Mr. Hankowsky

You were afraid you were going to miss your opportunity.

Councilman Nutter

Any opportunity to ask you a question is like missing a day without sunshine. 38 BILL NO. 000179 I know there's been some discussion about the report requests that I made some time ago. Unfortunately, I was either out of the room or engaged in other conversations. Could I get the official response on that?

Mr. Hankowsky

I believe that some of the material, perhaps not every information item you requested, we have put together. And I think, hopefully, this morning we provided it to the Council President's office, which is a list of the.

President Verna

Excuse me. It is included with your testimony, Councilman.

Councilman Nutter

Okay. This is all the stuff that came over today?

Mr. Hankowsky

Yes. There may be still a couple of things outstanding on the job. You wanted what actually what happened on jobs, and that takes a little bit more work. That shows you which ones are done, not done, try to keep track of that.

Councilman Nutter

So there is a stapled report and then there is a one-pager?

Mr. Hankowsky

I think somebody 39 BILL NO. 000179 asked for the application. I think there were a variety of requests.

Councilman Nutter

All right. So there are really three documents?

Mr. Hankowsky

I think that was right.

Councilman Nutter

So on the stuff that's outstanding, what's the timetable on that?

Mr. Hankowsky

Hopefully a couple of weeks. I mean, not that long.

Councilman Nutter

Okay. All right. Thank you.

Mr. Hankowsky

Thank you.

Councilman Nutter

Thank you, Madam Chair.

President Verna

Are there any other questions from members of the committee? Thank you, Mr. Hankowsky.

Mr. Hankowsky

Thank you.

President Verna

Do we have anyone else to testify on this bill? Is Shelly Yanoff in the room? I know she is down to testify. (No response.) 40 BILL NO. 000179

President Verna

Okay. Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I offer the following amendment to Bill No. 000260. To amend the Silver City Project Plan to authorize 50 percent of the Incremental Use and Occupancy Taxes for the term of the TIF district, to be used by PAID to fund a larger TIF Note of approximately $11.5 million, from 9 million, to assist in closing the gap in development costs from approximately $6 million to 3.5 million. And I request PIDC to make this amendment to the project plan and file it with the Chief Clerk of the City Council at the conclusion of this Public Hearing.

President Verna

Thank you. We will now go into our public meeting. This concludes our Public Hearing. (Public Hearing adjourned.) - - - 41 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING of the COMMITTEE OF THE WHOLE - - - WEDNESDAY, MAY 31, 2000 - - - Public Meeting conducted by the Committee of the Whole, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS NO. 000179, 000260 - - - PRESENT: COUNCILWOMAN ANNA C. VERNA, Chair COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DiCICCO COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO - - - 42 PUBLIC MEETING

President Verna

The Chair recognizes Councilman Clarke regarding Bill No. 4 179.

Councilman Clarke

Thank you, Madam Chair. Madam Chair, I move that Bill No. 8 000179 be reported out of committee with a favorable recommendation, and with a suspension of Rules as to be read on tomorrow's calendar. (Duly seconded.)

President Verna

It has been moved and seconded that Bill No. 179 be reported out of committee with a favorable recommendation, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will signify by saying aye. Those opposed. The ayes have it, and the motion is carried. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam 43 PUBLIC MEETING President. I move for the adoption of the amendment that was previously read into the record as it relates to Bill No. 000260. (Duly seconded.)

President Verna

Amendment to the Project Plan? COUNCILMAN DiCICCO: Amendment to the Project Plan.

President Verna

It has been moved and seconded that the amendment be adopted. All in favor will signify by saying aye. Those opposed. The record will indicate that Councilman Goode is voting nay. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I move for the adoption of Bill No. 23 000260, as amended, and be reported out of committee with a favorable recommendation, and that the Rules of Council be suspended. 44 PUBLIC MEETING

President Verna

No, we can't. COUNCILMAN DiCICCO: Don't do that? Okay. (Duly seconded.)

President Verna

It has been moved and seconded that Bill No. 260 be reported out of committee with a favorable recommendation as amended. All in favor will signify by saying aye. Those opposed. The record would indicate that Councilman Goode is voting nay, all other Council Members are voting aye. Therefore, Bill No. 260 will be reported out of committee with a favorable recommendation as amended. This concludes the public meeting. The Chair recognizes Councilwoman Tasco.

Councilwoman Tasco

Thank you, Madam President. I would just like to say happy birthday to our colleague, Joan Krajewski. 45 PUBLIC MEETING (Public Meeting adjourned at 12:17 p.m.) - - - 46 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, May 31, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE OF THE WHOLE _____________________________________ DEBRA A. WHITEHEAD, RPR