COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, October 17, 2006 1:00 p.m. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JUAN RAMOS COUNCILWOMAN MARIAN B. TASCO COUNCILMAN DARRELL L. CLARKE BILLS 051089, 060261, 060620, 060627, 060687, 060688, 060690, 060692, 060693, 060696 and 060701 - - - 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. As we have a long calendar, we will begin our Finance hearing. The Committee on Finance will begin today, October 17th, our 1 o'clock hearing to hear testimony on the following bills: 051089, 060261, 620, 627, 688, 690, 691, 92, 93, 696 and 701. What we would like to say is, if you hear our friend Maya, we're trying to get a photographer so Councilpeople and some of our special guests may take a picture with Maya. Now, I did say to the zookeeper and Ken Woodson that the only thing I would like better is an elephant, but they told me that Maya came to City Hall on the elephant, who is parked downstairs. So I will let you know that I was certainly corrected. But, again, we thank you. We do have a quorum. All the other members of the Committee are expected here. To 3 10/17/06 - FINANCE - BILL 051089, ETC. my left is Councilwoman Blondell Reynolds Brown, Vice-Chair. To her left, Councilwoman Marian Tasco. To my right is Councilman W. Wilson Goode, and I obviously am Jannie Blackwell. That gives us a quorum for our Finance hearing. Since we have so many bills and we had some 50 people sign up for the last bill, I'm happy to hold my questions, but Committee members may do what they choose, and we are certainly happy to have those offering testimony to make it brief or not really give detailed testimony and we can move on. The Chair will ask the Clerk to read the six bills authorizing applications for Redevelopment Capital Assistance Grants as is in your packet. Clerk.
Bill 051089, an ordinance authorizing the Philadelphia Authority for Industrial Development to file an application with the Office of 4 10/17/06 - FINANCE - BILL 051089, ETC. the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an amount not to exceed $6 million to assist in the development of the Point Breeze Performing Arts Center; and authorizing the City to enter into an agreement with PAID in furtherance of grants requirements; all under certain terms and conditions; and Bill 060261, an ordinance 13 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 amount not to exceed $250,000 to assist in the relocation of the Family Practice and Counseling Network; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; and Bill 060688, an ordinance 25 authorizing the Philadelphia Authority 5 10/17/06 - FINANCE - BILL 051089, ETC. 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 $2 million to assist in the development of Simeone Automotive Foundation Education Center; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; and Bill No. 060691, an ordinance 14 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 $1 million to assist in the development of Woodlands Arboretum and Botanical Gardens Revitalization Project; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; and 6 10/17/06 - FINANCE - BILL 051089, ETC. Bill 060693, an ordinance 3 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 $5,150,000 to assist in the development of Germantown YWCA and Morris Arboretum; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; and Bill 060701, an ordinance 15 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 $7 million to assist in the development of North Philadelphia Health System, the Old Metropolitan Opera House and Progress Plaza; and authorizing the City to enter into an agreement with PAID 7 10/17/06 - FINANCE - BILL 051089, ETC. in furtherance of grant requirements.
Thank you very much. With regard to Bill No. 060687, all of you received copies from and we also gave you additional copies today of a letter from the bill sponsor, Jim Kenney, who asked that this RCAP be held, that this legislation be held. It calls for $500,000 to go to Philadelphia University Center for Community Fitness. We talked with Mr. Deegan, who I'm sure can mention that today, and we also talked with the head of the University to see if that was what he wanted this Committee to do, and he was happy to hold it in addition, too. So we'll ask Paul Deegan to also repeat that, and he said that he was happy to hold it, that a few months wouldn't matter in terms of they would still be able to finish doing the work they're doing, and if there was further problem, he'd certainly let us know. 8 10/17/06 - FINANCE - BILL 051089, ETC. Having said that, we now call on Ms. Krista Williams of PIDC and our friend, Paul Deegan. And thank you both for being here.
Good afternoon. My name is Krista Williams. I represent PIDC. I'm here today to testify on behalf of PIDC and the Philadelphia Authority for Industrial Development, PAID, in support of Bill Nos. 051089, 060261, 060688, 060691, 060693 and 060701. Bill No. 051089 is for the Performing Arts Center, and the Performing Arts Center will be developed in a location central to the Point Breeze Commercial core. It's the Point Breeze Performing Arts Center. The new location 9 10/17/06 - FINANCE - BILL 051089, ETC. will create a critical mass of activity to boost the revival of economic growth in the Point Breeze area. The Performing Arts Center, a mixed-use development project, has become a cornerstone in the effort to revitalize the Point Breeze neighborhood. " The project entails acquiring a new site and increasing practice and performing space for the Performing Arts Center. The approximate project cost is $12 million. Bill No. 060261 authorizes PAID to apply for a RACP Grant from the Commonwealth of Pennsylvania in an amount not to exceed $250,000 to assist in the relocation of the Family Practice and Counseling Network facility. The project seeks to improve the healthcare center by relocating from a 3,000 square foot facility at 58th Street and Kingsessing Avenue to a 12,000 square foot facility at 61st and Woodland Streets. The 10 10/17/06 - FINANCE - BILL 051089, ETC. project will consist of a complete renovation of the 12,000 square foot facility. The total project cost is approximately $500,000. Bill No. 060688 authorizes PAID to apply for a RACP Grant from the Commonwealth of Pennsylvania in an amount not to exceed $2 million to assist in the development of the Simeone Automotive Foundation Education Center. The Simeone Automotive Foundation will complete a three-phase project, including construction fit-out and exhibit design and installment for an interactive educational museum. The total project cost is approximately $10 million. Bill No. 060691 authorizes PAID to apply for a RACP Grant from the Commonwealth of Pennsylvania in an amount not to exceed $1 million to assist in the development of the Woodlands Arboretum and Botanical Gardens Revitalization Project. 11 10/17/06 - FINANCE - BILL 051089, ETC. The Woodlands Arboretum is a National Historic Landmark of 54 acres that includes the federal style William Hamilton Mansion, its accompanying carriage house and stable and an 1840's continually active rural cemetery. It will undertake capital improvement work on the entire property. 6 million, and there's a $1 million RACP. Bill No. 060693 authorizes PAID to apply for a RACP Grant from the Commonwealth of Pennsylvania in an amount not to exceed $5,150,000 to assist in the development of the Germantown YWCA and the Morris Arboretum projects. Germantown YWCA will rehabilitate facilities located at 1244 East Chelten Avenue for the purpose of housing, recreational and educational activities for the community. The total project cost is expected to exceed $1 million. The RACP Grant award is $500,000. 12 10/17/06 - FINANCE - BILL 051089, ETC. The Morris Arboretum will construct a 20,000 square foot center for horticulture, education and facility support on approximately 67 acres. The horticultural center facility will provide needed workspace, meeting space, locker space and common space for members of the horticultural department and will include a luncheon room, kitchen and gathering area. The facility will also provide maintenance space and storage for all equipment that support the 167-acre public garden. The public area of this new facility will include a large meeting space that will allow the Arboretum to hold conferences and lectures for 200 people or more. 5 million. The RACP Grant award is $4,650,000. Bill No. 060701 authorizes PAID to apply for a RACP Grant from the Commonwealth of Pennsylvania in an amount 13 10/17/06 - FINANCE - BILL 051089, ETC.
not to exceed $7 million to assist in the development of the North Philadelphia Health System project, the Old Metropolitan Opera House project and the Progress Plaza project. North Philadelphia Health System will renovate an existing building in multiple phases. The first phase will include expansion of the existing building to house health system operations. The second phase will include construction of a new emergency room. 5 million. The RACP Grant award is $1 million. The historic Old Metropolitan Opera House located at 858 North Broad Street will undergo renovations and expansion to the Holy Ghost Headquarters Church, the North Philadelphia Community Development Corporation and commercial retail space. The project is expected to be completed in November 2008. The total project cost is approximately $10 14 10/17/06 - FINANCE - BILL 051089, ETC. million. The RACP Grant award is $1 million. Redevelopment Assistance Capital Program Grants are funded by the State's capital budget and sponsored by the local State legislator. The recipients of these grants are typically non-profit organizations such as colleges, museums, hospitals and social service providers. The State provides the funding through each county's industrial development authority. In this case, it's PAID. The recipient of the grant must at least match the grant amount with funding from non-State sources. After the legislature approves the capital budget, the Governor, through the Office of the Budget, authorizes PAID to submit applications on behalf of recipients. I request the Finance Committee's favorable consideration of these bills and that the rules of Council 15 10/17/06 - FINANCE - BILL 051089, ETC. be suspended to permit first reading at the next regularly scheduled session of City Council. Thank you for the opportunity to testify today. I will be happy to answer any questions.
Thank you very much. Mr. Deegan, would you respond and repeat the information I received with regard to Bill No. 060687, because I don't know if we've ever done this before.
I think you're correct, that there's no deadline for this. They haven't submitted an application, so that the ordinance can hold over for several weeks or until the end of the session. I think as long as we pass it by the end of the session, we'll be able to submit the application to Harrisburg and the project can go forward. It's kind of the last piece of 16 10/17/06 - FINANCE - BILL 051089, ETC. the project. They're already under construction. They've had previous RACP Grants, and so this is not a critical piece of the project. That's my understanding.
Thank you very much. The Chair notes that to my right is Councilman Frank DiCicco, also a member of this Finance Committee. Thank you. Are there any questions from members of the Committee? (No response.)
We'll now ask the Clerk to read the title of Bill No. 060627 adding Local 22 FIREPAC to the list of designated payees. Mr. McBride, President of IAFF, please come forward. Thank you. 17 10/17/06 - FINANCE - BILL 051089, ETC. Clerk, please read the title of the bill.
Bill 060672, an ordinance amending Title of The 6 Philadelphia Code, entitled "Public 7 Employees Retirement Code," by amending 8 Section 22-1303, entitled "Exemption from 9 Attachment," by adding Local 22 Fire 10 Political Action Committee to the list of 11 designated payees to whom a member may 12 direct deductions from benefits payments, 13 all under certain terms and conditions. 14
Thank 15 you very much. 16 Welcome. Good afternoon. We 17 welcome you to Council, and you may make 18 your statement. 19 MR. McBRIDE: Good afternoon. 20
Good 21 afternoon. 22 MR. McBRIDE: My name is Brian McBride. I am a Fire Lieutenant and proud 31-year member of the Philadelphia Fire Department. I am also honored to 18 10/17/06 - FINANCE - BILL 051089, ETC. serve as President of IAFF Local 22, the union that represents the over 4,000 active and retired firefighters and paramedics who risk their lives every day in order to serve the citizens of Philadelphia. I appear today before this honorable Council to request that Council amend Section 22-1303 of The Philadelphia Code to permit retired firefighters and paramedics to authorize voluntary payroll deductions from their pension checks for contributions to FIREPAC, which is a political action committee that is intended to promote public awareness and support of issues related to the health and safety of the City's firefighters, paramedics and other citizens. FIREPAC is funded primarily through voluntary contributions made by active and retired Philadelphia firefighters and paramedics, which activities are protected under the First Amendment of the United States 19 10/17/06 - FINANCE - BILL 051089, ETC. Constitution. This freedom of expression was confirmed in federal court as a result of litigation initiated by Local in 2002. 6 City Code Section 22-1303 7 currently permits retired City employees 8 to make voluntary contributions via 9 payroll deduction from their pension 10 checks to a wide variety of 11 organizations, including labor 12 organizations, relief associations, 13 credit unions, pension funds and 14 insurance companies. Section 19-203 of 15 the City Code already permits similar 16 deductions by active City employees for 17 contributions to political action 18 committees. Thus, the proposed amendment 19 would simply provide retired firefighters 20 and paramedics with the same payroll 21 deduction privilege that is already 22 provided to active firefighters and paramedics, as well as other City employees. It is the union's position that 20 10/17/06 - FINANCE - BILL 051089, ETC. amending the Code to add FIREPAC is only a matter of basic fairness to the firefighters and paramedics. We also believe that amending the Code will improve the level of public discourse on issues related to emergency services in our City by facilitating the involvement of the men and women who actually provide these services to the City's citizens. We believe that such involvement will result in a more informed and hopefully better-served public, and we ask that this honorable Council help to improve this public discourse on these issues by passing the proposed amendment. This completes my testimony. On behalf of over 4,000 retired and active members of IAFF Local 22, I wish to thank each and every Councilmember for your time and attention to this matter of considerable importance to us, as well as for your longstanding support of the men and women of the Philadelphia Fire Department who risk their personal safety 21 10/17/06 - FINANCE - BILL 051089, ETC. each and every day in order to protect the lives and properties of Philadelphia citizens. Thank you.
Thank you very much. We note that you have one of the greatest of old time, Les Yost, with you, and we love Les and we thank him for always being active. Any questions? (No response.)
We're proud to have you here and to support you. Next we'll consider Bill No. 23 06 -- before I announce that, let me note that to my right is Councilman Juan Ramos, the final member of this Committee 22 10/17/06 - FINANCE - BILL 051089, ETC. who is also here. So only one person is not here. We thank you all for your attendance. Next we'll consider Bill No. 6 060696 for AFSCME District Council 47. We understand that they could not be here. We will ask the Clerk to read their statement, a one-page statement. Thank you very much.
Please read the title of the bill as well. Thank you.
Bill 060696, an ordinance amending Title of The 18 Philadelphia Code, entitled "Public 19 Employees Retirement Code," by amending 20 Section 22-1303, entitled "Exemption From 21 Attachment," to add AFSCME District 22 Council 47 to the list of designated payees to whom a member may direct deductions from benefits payments, all under certain terms and conditions. 23 10/17/06 - FINANCE - BILL 051089, ETC. AFSCME District Council 47, testimony for City Council hearing October 17, 2006, amending Title of 5 The Philadelphia Code, entitled "Public 6 Employees Retirement Code." 7 AFSCME District Council 47 is 8 in support of this addition because many 9 of our retired members have been wanting 10 to have a deduction taken from their 11 retirement benefits which would be 12 directed to the political action arm of 13 our union job. 14 When these men and women were 15 active members of the union, they 16 believed in the desirability of 17 involvement in the political system. 18 They saw that their actions and 19 contributions made a difference in the 20 type of people who were elected to 21 office. 22 As retired senior citizens, they want to continue their political involvement and understand that by contributing a portion of their pension, 24 10/17/06 - FINANCE - BILL 051089, ETC. they will maintain their voices in the political process. Our support of this amendment is both an example and the result of a concerted grassroots demand from our retirees to continue to have their views heard and recognized by those in power.
Thank you very much. The Chair also notes that the sponsor of the legislation is a part of this Committee, and that is Councilman Ramos. Any statements or questions? (No response.)
Thank you very much. We will now consider Bill Nos. 060620 and 060690 authorizing the new issuance of $325 million in Water Revenue Bonds to fund the Capital Project Program during the next two years. That's 620. 690 authorizes refinancing of bonds. Will the Clerk please read the 25 10/17/06 - FINANCE - BILL 051089, ETC. title of the bills.
Bill 060620, an ordinance constituting the Eleventh Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; authorizing the Bond Committee, or a majority of them, to issue and sell either at public or private sale in one or more series or subseries, Water and Wastewater Revenue Bonds of the City of Philadelphia; authorizing approval of the form or forms of Bonds; providing that the Bonds shall bear interest at a prescribed fixed rate or rates or at variable rates which may be payable in different modes, and authorizing agreements to provide credit enhancement or payment or liquidity sources or swap payments, or any combination of the foregoing, for the Bonds and certain other actions; authorizing the Director of Finance of the City to take certain actions with regard to the sale of such 10/17/06 - FINANCE - BILL 051089, ETC. Water and Wastewater Revenue Bonds, the investment of proceeds thereof and the City's continuing disclosure obligation; setting forth the use of proceeds and providing for the application of interest and income earned on such proceeds; determining the sufficiency of the Project Revenues; covenanting the payment of interest and principal, including the payment of any Qualified Swap payments; and supplementing the Restated General Water and Wastewater Bond Ordinance of 1989; and Bill 060690, an ordinance 16 constituting the Tenth Supplemental Ordinance to the Restated General Water and Wastewater Bond Ordinance of 1989, as supplemented; authorizing the Bond Committee, or a majority of them, to issue and sell, from time to time, either at public or private sale in one or more series or subseries, Water and Wastewater Revenue Refunding Bonds of the City of Philadelphia; authorizing approval of the 27 10/17/06 - FINANCE - BILL 051089, ETC. form or forms of Bonds; providing that the Bonds shall bear interest at a prescribed fixed rate or rates or at variable rates which may be payable in different modes, and authorizing agreements to provide credit enhancement or payment or liquidity sources or swap payments, or any combination of the foregoing, for the Bonds and certain outstanding bonds and certain other actions; authorizing the Director of Finance of the City to take certain actions with regard to the sale of such Water and Wastewater Revenue Refunding Bonds, the investment of proceeds thereof and the City's continuing disclosure obligation; designating the obligations to be refunded from the proceeds of such Water and Wastewater Revenue Refunding Bonds and setting forth the use of proceeds and providing for the application of interest and income earned on such proceeds; determining the sufficiency of the Project Revenues; 28 10/17/06 - FINANCE - BILL 051089, ETC. covenanting the payment of interest and principal, including the payment of any Qualified Swap payments; and supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989.
Thank you. We note that the Bill 690 authorizes the refinancing of these bonds in an amount not to exceed $350 million. Thank you. And to all who are here for the $150 million bond issue for cultural institutions and commercial corridors, this is it and then we're on. Okay? We've been moving it quickly. You notice we're up to ten bills already. So we're moving quickly so we don't hold anyone up. So these are our last two bills. So that will let our guests know they can be quick and summarize, and my colleagues, we can ask questions or we can kind of keep it to a minimum so we can move along 29 10/17/06 - FINANCE - BILL 051089, ETC. quickly. Thank you. Good afternoon. Please identify yourself for the record.
Good afternoon, Councilwoman Blackwell and members of the Finance Committee. I'm Vince Jannetti, Acting Director of Finance for the City. With me is Water Commissioner Bernie Brunwasser and Deputy Water Commissioner Joe Clare. We are here to testify on behalf of Bill Nos. 060620 and 060690. Bill No. 060620 authorizes the City to sell Water and Wastewater Revenue Bonds up to $325 million. This bill 16 provides authorization for the Water Department's Capital Program. It is estimated that this financing will fund the Water Department's Capital Program for approximately two and one half years. The proposed new money ordinance is required to provide the Water Department with continued funding authorization for its Capital Budget, as approved by City Council, and to 30 10/17/06 - FINANCE - BILL 051089, ETC. replenish the Water Department's Construction Fund, which will be drawn down over the coming months. The current '07 to '10 Capital Program emphasizes the renewal and replacement of the Water's vast infrastructure, including repair and replacement of water mains and sewers, storm flood relief projects and the maintenance of our six water and wastewater treatment plants and associated facilities, to ensure that our drinking water continues to be safe, that our rivers and streams continue to become cleaner with each passing year. Bill No. 060690 will authorize the City to refinance outstanding Water and Wastewater Revenue Bonds, including, but not limited to, the Series 1997A, 2001A and the 2005A bonds in an amount not to exceed $350 million. The City will not execute this transaction unless we can achieve net present value savings of at least three percent of the principal amount of the bonds to be 31 10/17/06 - FINANCE - BILL 051089, ETC. refunded. Today this level of savings could not be achieved under current market conditions, but we're hopeful that as we move forward, this will happen. All revenues pledged to secure the payment of the new money refunding bonds will be derived from rents, rates and charges imposed by the Philadelphia Water Department. None of the bonds that will be issued under these ordinances will have any recourse to the revenues of the General Fund. Finally, as required by Section 16 8 of the First Class City Revenue Bond Act, as the Acting Director of Finance for the City of Philadelphia, I will be transmitting my financial report regarding the financial viability of the City of Philadelphia Water Department and its ability to repay this additional debt prior to the passage of these ordinances. At this time, I would also like to propose amendments for each of the 32 10/17/06 - FINANCE - BILL 051089, ETC. ordinances, which each amendment is identical. The amendments intend to grant the ability to utilize derivative financial instruments only as approved by the Bond Committee and as part of the general plan of finance for each bond issue. For Bill No. 060620, the current plan of finance includes the City entering into a forward rate lock agreement in order to capture today's historically low interest rates. It is intended that the City will enter into such an agreement prior to the issuance of these bonds. For Bill 060690 refunding bonds, the current plan of finance is to refund the bonds as soon as possible, depending on market conditions. At this time, we would prefer to issue traditional fixed-rate bonds, and in order to do so, however, the ordinance 24 provides the flexibility for the City to utilize a derivative financial instrument 33 10/17/06 - FINANCE - BILL 051089, ETC. in order to conduct the refunding. I would also like the suspension of the rules for Bill No. 5 060620 and Bill No. 060690 to allow for a first reading at the next session of City Council. This concludes my testimony. I would happy to answer any questions Council may have.
Thank you very much. I'm going to hold my questions in the interest of time. Are there any questions, concerns from members of the Committee? (No response.)
Thank you, gentlemen, very much. We will now finally consider Bill No. 060692 authorizing the City to enter into a Service Agreement with the Philadelphia Authority for Industrial Development and authorizing PAID to issue up to 150 million in bonds to support cultural institutions and commercial 34 10/17/06 - FINANCE - BILL 051089, ETC. corridors. We ask Ms. Stephanie Naidoff, Director of Commerce, and Mr. Vince Jannetti, who thought he was finished, Acting Director of Commerce, and we recognize various cultural institutions. Thank you very much. And we want you to know that Maya is having a great influence on our time and Maya will be one of the early people we will call forward. Earlier "people" isn't quite the right word. She will cause people to come earlier. Thank you very much. Please identify yourself for the record and begin your testimony. To all who are here, let me note that we have just completed the ten bills. We did the RCAP bills. We did the Water Department bills. We did the District Council 47 and Local 22 firefighter bill. So if any of you are here for that, feel free to stay, but we've already considered those. The only 35 10/17/06 - FINANCE - BILL 051089, ETC. thing left for those is the vote. We are now on the bill that brings most of us here, and that is the bill for cultural institutions and commercial corridors. Clerk, would you please read the title of the bill.
060692, an ordinance authorizing and approving the execution and delivery of a Service Agreement between the City of Philadelphia and the Philadelphia Authority for Industrial Development relating to a comprehensive program to improve and enhance the City of Philadelphia's cultural and commercial corridors for the benefit of the residents of the City of Philadelphia; the issuance by the Philadelphia Authority for Industrial Development of bonds, notes or other evidences of indebtedness in one or more series, to finance or refinance, for debt service savings, the costs of the cultural and commercial corridors program; and the 36 10/17/06 - FINANCE - BILL 051089, ETC. obligation of the City of Philadelphia to pay in full when due the Service Fee and other amounts payable under the Service Agreement; authorizing certain City officers to take certain actions required to issue bonds, notes or other evidences of indebtedness; covenanting that the City of Philadelphia will make necessary appropriations in each of the City's fiscal years to provide for the Service Fee and other amounts due under the Service Agreement; and covenanting that the City of Philadelphia will make timely payments of the Service Fee and other amounts due under the Service Agreement; all under certain terms and conditions.
Thank you very much. Again, welcome. Please identify yourself for the record and begin your testimony.
Good afternoon, Committee Chairwoman Blackwell and members of City Council's Committee on 37 10/17/06 - FINANCE - BILL 051089, ETC. Finance. My name is Stephanie Naidoff and I'm the Director of Commerce and City Representative for the City of Philadelphia. I'm here today to present testimony in support of the Philadelphia Authority for Industrial Development, or PAID, Revenue Bonds for the City of Philadelphia's Cultural and Commercial Corridors Program. Also with me in support of this bond issue are Vincent Jannetti, Acting Director of Finance, and Eva Gladstein, Director of Neighborhood Transformation. This $150 million bond issue will help to fund many capital improvement projects for City cultural institutions and public amenities mostly within cultural corridors. Bond proceeds will also fund the City's ReStore Philadelphia Corridors Program, a program designed to revitalize commercial corridors throughout our City's neighborhoods, many experiencing a 38 10/17/06 - FINANCE - BILL 051089, ETC. renaissance in part as a result of investments in connection with the Neighborhood Transformation Initiative. We believe that with this new City funding, cultural and commercial corridors will have the ability to leverage state, federal and private investment. In so doing, the City has a tremendous opportunity to enhance the impact these cultural and commercial resources can play in the City's expanding economy. The City proposes to enter into a Service Agreement with PAID under which the City will agree to pay in full when due the service fee and other amounts payable under the agreement. The Service Agreement provides that the proceeds of the bond shall be spent only in accordance with the ordinance and the approved budgets. The City will submit annual reports to City Council summarizing program expenditures and will seek Council approval for any budget 39 10/17/06 - FINANCE - BILL 051089, ETC. modifications. We are very pleased to be here today to testify in support of the City's Cultural and Commercial Bond issue because we believe that this investment in the City's future is fully consistent with the Mayor's vision of a vibrant urban center that can benefit all neighborhoods. Our efforts to make funds available to the arts and culture communities and to our neighborhood commercial corridors will enhance the City's image for our visitors while enhancing the quality of life for our residents. Consistent with the City's Economic Development Blueprint, the Cultural Corridors Program is part of a comprehensive strategy to build on the strength of our diverse arts and culture organizations to support the growth of our creative economy. The necessary first step in achieving this objective is to address the capital needs of our 40 10/17/06 - FINANCE - BILL 051089, ETC. cultural community. Investment in capital projects will increase both the visibility and accessibility of the City's major cultural corridors, preserve and strengthen the City's arts and culture organizations, and leverage private and public funds to support these efforts. We are proposing to allocate $60 million to cultural organizations for capital improvements within five identified cultural corridors. These corridors were selected because they contain significant concentrations of cultural organizations and activities that together generate a critical mass of economic opportunity. The corridors identified are Avenue of the Arts, Benjamin Franklin Parkway, Centennial District, Historic District and El Centro de Oro and other emerging corridors. Funding will be targeted to City-owned buildings and infrastructure and to other selected institutions within the areas 41 10/17/06 - FINANCE - BILL 051089, ETC. identified with a concentration of cultural organizations.
Although projects within these corridors have not been fully identified, our preliminary analysis has identified projects that can benefit the City with the potential to leverage other funds, especially for those projects that are ready for development. The Administration, for example, proposed funding for security measures, sewer improvements and other infrastructure improvements that are not likely to receive private donor support. Levels of funding to each organization will be based on individual project status and the ability to leverage local, state, federal and private money. For those projects not owned by the City, funding will be provided to eligible non-profit 501(c)(3) organizations where projects have a clear public benefit. In addition to the $60 million for cultural corridors, $5 million will 42 10/17/06 - FINANCE - BILL 051089, ETC. be allocated to capital funding for smaller cultural organizations throughout the City. These organizations are defined as creating, preserving or exhibiting visual, literary and performing arts, architecture, science and history. Funding for these smaller cultural organizations will be available City-wide, including, but not limited to, those organizations within the identified cultural corridors. The purpose of this funding is to support capital projects that are necessary, yet traditionally more difficult to fund. Project funding for each of these smaller organizations will not exceed $250,000. A process for accessing these funds has been established whereby the Commerce Department will request expressions of interest from Philadelphia-based cultural organizations and will be responsible for creating a five-person committee comprised of 43 10/17/06 - FINANCE - BILL 051089, ETC. interagency representatives in addition to the Chairman of City Council's Finance Committee and the Chairman of Council's Special Committee on Parks, Recreation and Cultural Affairs. The Committee will identify grantees based on set criteria. We will be reviewing each organization's leadership and ability to meet goals, financial capacity and ability to leverage other funds, their planning and project readiness as well. These projects will be smaller capital improvements for the betterment of the organizations and the public good. Eligible projects will include, but are not limited to, HVAC improvements, disabled access improvements, sprung flooring, lighting grids, electrical wiring upgrades, as well as roof renovations and facade restorations. The second major program initiative to be funded with the bond proceeds is the City's ReStore Philadelphia Corridors Program. ReStore 44 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia Corridors implements the Economic Development Blueprint objective of sustaining advances in neighborhood economic development by revitalizing neighborhood commercial corridors throughout the City and re-establishing their historic roles as central places to shop, to work and to meet neighbors. The ReStore Philadelphia Corridors Program will increase attention to and investment in neighborhood commercial corridors. ReStore Philadelphia Corridors builds upon the successes and experience of the Philadelphia Empowerment Zone and the Neighborhood Transformation Initiative, taking advantage of the lessons that we've learned in implementing both neighborhood revitalization strategies. It marries the EZ's focus on the neighborhood-based economic development with NTI's guiding principles of using planning as an investment tool, investing public funds to stimulate private market activity and 45 10/17/06 - FINANCE - BILL 051089, ETC. maximizing private capital while minimizing public dollars. ReStore will direct significant funds to streetscape enhancements and capital improvements to neighborhood commercial corridors.
The program will be carried out through three main strategies: Focus planning and data analysis on strengthening corridors, align and leverage community economic development resources, and develop a system to attract and retain businesses on corridors. The Cultural and Commercial Corridor Bond will fund seven ReStore Philadelphia Corridors Program activities. Bond funding for the first three program categories discussed below will be directed in consultation with District City Councilpersons towards selected corridors throughout the City based upon analysis of existing conditions, neighborhood trends and the level of planning and resources 46 10/17/06 - FINANCE - BILL 051089, ETC. available. Number one, we propose that the largest amount of funding, $34 million, be dedicated to streetscape enhancements and capital improvements. These will 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, and design and engineering studies. Two, a $6 million acquisition pool will enable the City to acquire key blighted properties on corridors for commercial, mixed-use or open space development. Targeted demolition on commercial corridors will remove blighted properties and help create parcels for commercial, mixed-use or open space development. We propose that $2 million be allocated for this purpose. Bond funding for the remaining 47 10/17/06 - FINANCE - BILL 051089, ETC. four categories will also be focused on neighborhood commercial corridors, but will be allocated based upon demand and in accordance with program criteria. Some program categories, such as the acquisition pool for non-profit entities, may be managed by non-City entities in order to provide the most effective administration. Eight and one half million dollars is proposed for Targeted Redevelopment Grants that will fund pre-development and development activities for commercial, institutional and cultural facilities that will draw people to the neighborhood commercial corridor. Second, a $2 million acquisition pool for non-profit entities will enable CDCs and other non-profit entities to acquire properties on commercial corridors for commercial or mixed-use development. Three, four and a half million 48 10/17/06 - FINANCE - BILL 051089, ETC. dollars will be made available for business support to fund facade renovations to storefronts, fit-out expenses for commercial tenants, energy conservation improvements to commercial properties on corridors, and equipment for corridor security programs. Four, support for technology improvements 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 commercial corridors. This category will receive $2 million. In addition, the ordinance 18 authorizes the City to finance a $6 million Small Business Loan Guarantee Pool through non-bond sources. This guarantee pool will be designed to improve access to mainstream financing for small businesses on corridors with impaired credit by providing a guarantee. In addition to the funding 49 10/17/06 - FINANCE - BILL 051089, ETC. provided specifically for cultural and commercial corridor revitalization, $15 million will go towards other projects that are consistent with and supportive of the efforts on cultural and commercial corridors and with the overall objectives of the bond issue. The remaining $5 million is being reserved within the Bond issue for administrative fees for the issuance of the bonds. At this would, we'd like to propose some amendments to the ordinance. Most importantly, we are providing a copy of the Economic Opportunity Plan drafted as a supplement to the successful NTI Economic Opportunity Plan. 9 percent to women business enterprise firms. 9 million in demolition 50 10/17/06 - FINANCE - BILL 051089, ETC.
contracts to emerging minority demolition contractors. Significant workforce participation goals were achieved as well. The percentage of minority employees hired under the NTI-funded demolition contracts is 68 percent, and the percentage of female employees is two percent of the workforce. Philadelphia residents constitute 79 percent of those employed and account for 82 percent of the hours worked. This supplement will use a variety of strategies designed to maximize the participation of minority, female and disabled vendors and to maximize the workforce participation of Philadelphia residents, minorities, females and disabled persons. We will provide an annual report to City Council on the Economic Opportunity Plan. We would also like to propose expanding the designation of the El Centro de Oro Cultural Corridor to include other emerging corridors. We are requesting this particular change to 51 10/17/06 - FINANCE - BILL 051089, ETC. allow for the inclusion of other emerging corridors, such as Chinatown, Kensington, Germantown or other neighborhoods where cultural institutions act as anchors that serve as major community cultural centers and as catalysts for change. A more inclusive title better reflects this trend throughout Philadelphia and allows the City to fund additional projects under the Cultural Corridors Program theme. The last three proposed changes address modifications to the program budget. The first is a correction of a typographical error in which one of the budget's subcategories was included twice. The second is a technical change to correct dollar amounts in two subcategories. The third is to propose that amounts in each subcategory may be reallocated by increasing or decreasing such subcategory by ten percent only once each fiscal year. We have proposed this to ensure that there is some limited 52 10/17/06 - FINANCE - BILL 051089, ETC. flexibility within these categories for unforeseen issues that may surface once we begin to allocate funds. Thank you for this opportunity to testify on this very important matter. Vince Jannetti, Eva Gladstein and I are here. We're happy to answer any questions that you may have at this time, and we kindly request a suspension of the rules for Bill No. 060692 to allow for a first reading at the next meeting of City Council. Thank you.
Thank you. We would like to change our schedule, because we're going to lose our photographer that we just called. Since we are surprised with Maya, we're going to ask the Zoo to come forward, and would you please remain so that we can take questions, and then we'll continue on with our list of speakers, if you don't mind. Again, we thank you all for 53 10/17/06 - FINANCE - BILL 051089, ETC. being here. My colleague mentioned the elephants. I did mention that, but they told me the elephant transported them here and is parked downstairs. Thank you very much. Welcome. Please begin your testimony and then we'll see what our photographer can do to include us in these lovely pictures. I guess Maya spoke first. Welcome. Please identify yourself to the record and begin your testimony.
Good afternoon, Councilwoman Blackwell and honorable members of the Committee on Finance.
Good afternoon. We're trying to get in this picture with Maya, as you see. Thank you.
My name is Vikram Dewan and I am the new President and CEO of the Philadelphia Zoo. Joining me today is Kenneth Woodson, Senior Vice-President of Government and Community Affairs for the Philadelphia 54 10/17/06 - FINANCE - BILL 051089, ETC. Zoo, and on behalf of the Zoo Board, staff and I must say on behalf of Maya, our owl, and our nearly 1.2 million children and families who visit us each year, we thank you for allowing us to testify today in support of Bill 060692, a bond to enhance Philadelphia's cultural and commercial corridors. As you know living in our great City, the Zoo is an integral part of the City of Philadelphia and the region. We fulfill a multitude of important missions as a member of a robust cultural community that drives the convention and tourism industry. We are an invaluable educational resource for over 200,000 school children and educators each year. We are a leading environmental advocate whose world-class staff works tirelessly here and around the globe to save endangered species, and, of course, we are a significant taxpayer and employer of choice for many City and area residents. 55 10/17/06 - FINANCE - BILL 051089, ETC. With nearly 1,300 animals, from five-ounce toads to 500-pound tigers and 5,000-pound rhinos, the Philadelphia Zoo brings the world and its wonders to our Philadelphia region, its residents and visitors every day. Sadly, not every family will visit Africa, Australia or South America to experience native wildlife, but every family can visit our Zoo. We're looking forward for new ways to make the Zoo even more accessible, and I am delighted to report that just three weeks ago, we welcomed our one-millionth Zoo visitor for 2006. We are equally proud that during this past year we have provided more than 80,000 free field trips and educational programs for students, most of whom attend the Philadelphia School District schools. Importantly, our Zoo is very much engaged in our neighborhoods, and we are one of the pioneering forces behind the proposed Centennial District. We are active members of the East Parkside 56 10/17/06 - FINANCE - BILL 051089, ETC. Historic District Corridor Coalition and the Girard Avenue Coalition working to create a better West Philadelphia neighborhood. We recently completed a neighborhood beautification project jointly sponsored by the Mantua community and the Mural Arts Program. We installed a wonderful mural on the 34th Street bridge, and I invite all of you to come for the dedication and children's events that we will host tomorrow.
Thank you. I will tell you, I heard absolutely none of your testimony. But we do support you.
Councilwoman, our animals at the Zoo have that effect on a lot of people.
But it is wonderful. We did work on getting our pictures with Maya and that's all that concerns us. We do love our zoo.
Thank you so much, 57 10/17/06 - FINANCE - BILL 051089, ETC. Councilwoman.
The only complaints anybody has is everybody is worried about losing the elephants. We do thank you. Thank you very much. Are there any questions?
Councilwoman, if I may just conclude, I have just a few more words to say.
As I had indicated before, we're an integral part of the neighborhoods, and our goal is to improve access to the Zoo by residents of every neighborhood, from our next-door neighbors to those across town and across all cultures. That is why we have hosted Parkside Day at the Zoo for the past four years and the Echoes of Africa event, which has broadened our appeal to the African and Caribbean immigrant communities. While we're most often thought 58 10/17/06 - FINANCE - BILL 051089, ETC. of in terms of our wildlife, we are quite proud of our role as a vibrant part of the region's economic success. For example, over these past three years, the Zoo has supported 951 full-time equivalent jobs and paid nearly 38 million in wages. 5 million in City wage taxes, and our parking operations generate another 430,000 in City taxes. 5 million. While our value to the community is generally acknowledged and applauded, there's no question that we are a capital-intensive entity with significant financial needs at a time when we are brimming with worthy new projects. It is also a time when even the most generous donors are stretched to 59 10/17/06 - FINANCE - BILL 051089, ETC. their limits. Our $20 million Bank of America Big Cat Falls exhibit which opened in May is a major success and the epitome of the kind of visitor experience our guests have come to expect. The near term calls for building two more exciting new exhibits, a $17 million aviary and a $19 million children's zoo and educational center. Like Bank of America Big Cat Falls and PECO Primate Preserve, these projects will feature up-close-and-personal opportunities to interact with wildlife, to literally feel the rush of the wind as feathery wings take that flight -- I think we got an experience of that today -- and as well as to smooth a gentle hand over the soft wool of a barnyard friend. It will also provide some of the best opportunities to take conservation action in their own backyards and experience firsthand results. 60 10/17/06 - FINANCE - BILL 051089, ETC. As noted on the chart that we have submitted ahead of time, the City has provided capital support for the Zoo infrastructure. However, that support has not kept pace with our need to maintain critical systems. It also falls well short of the level of support for capital improvement needed and provided at comparable zoos in other cities. million capital budget from local government. million capital budget. million. We share this only as context, as an expression of hope and willingness on our part to be the 61 10/17/06 - FINANCE - BILL 051089, ETC. best possible partner for our City and its residents. Without question, this proposed bond comes at an opportune time. We would use this new source of capital estimated at approximately $2 million to upgrade critical infrastructure such as those required by our storm water management systems, pathway paving, roofs, fire and security systems, the kind of investment that is hard to raise from private donors. With your understanding and support, we will also continue to submit capital funding requests as part of the annual capital budget process. The return on this overall capital investment can only increase with the growth of the proposed Centennial District in West Fairmount Park, Philadelphia's new family-focused destination comprised of the Zoo, the new Please Touch Museum, the Mann Center, Japanese House and Gardens and the 62 10/17/06 - FINANCE - BILL 051089, ETC. Horticultural Center, and, finally, we're proud to tell you that next year Philadelphia and your Zoo will proudly host nearly 2,500 zoo and aquarium professionals at a national conference to be held here in Philadelphia. It will be a wonderful opportunity for us to showcase our Zoo and other world-class attraction and generate an economic impact for the region of this five-day conference of approximately $12 million.
On behalf of our Philadelphia Zoo Board and staff and our owl, Maya, who is here today, thank you all for the support and guidance that you have provided us over the years and thank you for considering Bill 060692, the bond to enhance Philadelphia's cultural and commercial corridors. Mr. Woodson and I are available for questions, Councilwoman.
Thank you very much. Certainly I am so proud of the fact that you're technically in 63 10/17/06 - FINANCE - BILL 051089, ETC. the Third District. That's the best district in the City. And certainly we do thank you for all that you do in partnerships with the community, including the Mural Arts Program, all that you do for the children in Mantua, the schools in the area. We thank you for the Parkside Day at the Zoo and for including Echoes of Africa in a big way, a City-wide way for this next year, and we're just very, very proud of the leadership team that the two of you are really shepherding and spearheading, and we look forward to doing what we can to support you. I open the floor. Any questions? (No response.)
I'd just like to say welcome aboard. We certainly congratulate you on your appointment and 64 10/17/06 - FINANCE - BILL 051089, ETC. wish you well as you move to take the Zoo into the 21st century.
Thank you. You're doing an excellent job. Thank you both. Thank you very much. Are there questions for Ms. Naidoff and Mr. Jannetti?
Yes. Please come back forward. The Chair acknowledges the presence of Councilman Clarke. Thank you for being here.
We also thank my colleagues for allowing us to change our agenda a little bit and bring on the Zoo. Thank you. I'll defer to Councilwoman Blondell Reynolds Brown and then 65 10/17/06 - FINANCE - BILL 051089, ETC. Councilwoman Tasco.
Good afternoon. First let me say thank you. I join the many members on Council and our arts and culture community who were both excited but anxious about the now roll-out of this major initiative. My first question is, to your best knowledge, is this unprecedented? Is this the first time in the last 30 years that this City has made a serious commitment to providing what I would call an injection into the arts and culture community that deal specifically with capital programs?
I know of no 18 other time when such a thing was done, and I'm very proud to be here representing the Administration in proposing this, because we think it's a very important initiative for a very important segment of our economy.
Knowing that it is a first then, do you believe 66 10/17/06 - FINANCE - BILL 051089, ETC. you've adequately covered your bases in making sure that the specifics of this resonate both this way as well as to the reach of the arts and culture community?
We've tried very hard to do it in all directions, as you suggest. I would say that in looking at the needs of the arts and culture community, which we've done now for quite some time, it's quite clear that the needs are extensive and the amount of funding that's available to them to cover the costs of these capital projects is, of course, limited. So the amount of money that the City is proposing to invest in this will not cover all of the needs. It's a very painful thing. They're all worthwhile projects. We'd love to be able to do them all, but that's the reason that we tried very hard to devise a theme, a concept, that would help leverage the money and create the greatest possible impact for the City, for the economy and for the quality of 67 10/17/06 - FINANCE - BILL 051089, ETC. life of our residents.
It is a fine balance we have to find and recognizing the fact that this measure cannot be all things to all of the arts and culture community and that we're going to have to be very, very thoughtful in ways in which I think you've begun to do already. The timing of this is interesting, in that it falls at the time that the Greater Philadelphia Cultural Alliance has released what I believe to be a comprehensive prescription for how we can move and look forward in further strengthening the arts and culture community base. Has there been any thought given to any threads that may already exist between what you rolled out here and some of the recommendations given in the report that's just been received by this community?
We found the report very helpful and obviously have 68 10/17/06 - FINANCE - BILL 051089, ETC. been having conversations with many of the organizations, with the Greater Philadelphia Cultural Alliance and with many other organizations that represent the arts and culture organizations, as well as the organizations themselves. I think we're all on the same page, and what we all are proposing is that we need to seriously consider the needs of the arts and culture community because of its importance as an economic engine and the impact that it has on the quality of life but also on the economy, the economic vitality of our City.
And my final editorial comment is to underscore the economic vitality that it brings. I have to say when I pursued coming to this legislative body ten years ago, arts and culture was viewed by some as a very "soft" issue, and now we fast forward ten years later and all of us recognize that it is a major, major, major anchor and engine for our City. So it's a ripe, 69 10/17/06 - FINANCE - BILL 051089, ETC. R-I-P-E, time for what you've presented. Thank you very much for your testimony.
Thank you very much. While Councilwoman Tasco asks her question, we're going to ask the Clerk to get ready to read a letter from PICA and then we'll ask you to respond to that. Councilwoman Tasco.
Well, I would like for him to do that before my questions.
All right. Clerk, would you please read the letter dated October 16th that we received from PICA.
Pennsylvania Intergovernmental Cooperation Authority, October 16, 2006, Anna C. Verna, 70 10/17/06 - FINANCE - BILL 051089, ETC. President City Council, Jannie Blackwell, Chair City Council Finance Committee, Philadelphia City Council, City Hall, Philadelphia, PA 19107. Dear Council President Verna and Councilwoman Blackwell, I am writing to express PICA's opposition to the Administration's proposed $150 million borrowing through a bond issue, which is the subject of Tuesday's Finance Committee hearing. The Administration proposes to use the borrowing for arts and culture, commercial corridors and administrative costs, the bulk of which is to be spent within the next year. PICA believes in the importance of investing in arts and culture and commercial corridors. The proposed borrowing, however, would exacerbate the City's long-term obligations challenge and make it more difficult for the City to invest in its infrastructure. For the past year, PICA has consistently emphasized that the City 71 10/17/06 - FINANCE - BILL 051089, ETC. must address a series of long-term fiscal challenges that threaten to undermine its financial health. Two of the key challenges are slowing the rapid growth in long-term obligations and reversing the trend of substantially underinvesting in the City's core infrastructure. In order to explain why PICA believes that it would not be fiscally prudent to commit to this borrowing, it is important to explain why the City's growing long-term obligations and underinvestment in infrastructure are such big issues. The City's increase in long-term obligations has been substantial. The FY07 budget for the Sinking Fund is just under 192 million. In FY01, the Sinking Fund's expenditures were just under $131 million, $61 million lower. That means that the City will have to put $61 million more into paying debt service in FY07 than it did just six years ago. 72 10/17/06 - FINANCE - BILL 051089, ETC. The problem is expected to intensify further as the projected Sinking Fund expenditures for FY11 are nearly 220 million, which means that by FY11 the City will be paying almost $90 million more in debt service than it did in FY01. To put that $90 million increase in context, it is more than the combined amount the City will be spending in FY11 on the Free Library, the Recreation Department and the Fairmount Park Commission. Unfortunately, the ballooning debt service costs come at the same time as the City is providing less than half the amount that the City Planning Commission says is necessary to appropriately maintain City facilities, including police stations, fire stations, health centers and City streets. The City Planning Commission recommended that the City invest $185 million annually in its facilities. The most the FY07 through FY12 Capital Program invests in 73 10/17/06 - FINANCE - BILL 051089, ETC. infrastructure in any single year is just under $71 million. The dramatic underinvestment, $110 million in the year with the heaviest investment, makes it inevitable that City facilities will continue to deteriorate and will need more, not less, investment in the future. The proposed $150 million borrowing would not meaningfully address that dramatic underinvestment, but it would exacerbate the City's debt problem. The FY07 budget assumes that the City will begin paying debt service on the new borrowing during this fiscal year. 2 million and remain at that level until FY31. 2 22 million less each year to pay for things 23 like police officers, street repair, 24 investment in infrastructure or other 25 essential services. 74 10/17/06 - FINANCE - BILL 051089, ETC. In its papers on the City's long-term obligations and infrastructure, PICA urged that the City take a number of steps, including establishing a debt policy and utilizing pay-as-you-go financing.
Until the City has established that debt policy and determined how it will fund its core infrastructure, it would not be appropriate to proceed with this proposed borrowing. Any increased investments in arts and culture should be made through the operating budget and should be determined as part of the FY08 budget process. Sincerely, Rob Dubow, Executive Director.
Thank you very much, and to Councilwoman Tasco's concern as well. COUNCILMAN DiCICCO: Point of order, Madam Chair, before you recognize --
Yes, 75 10/17/06 - FINANCE - BILL 051089, ETC. Councilman DiCicco. COUNCILMAN DiCICCO: Is anyone from PICA here today to testify or do we just have written testimony? (No response.) COUNCILMAN DiCICCO: No one is here. Thank you.
While it is clear that the City's infrastructure needs help, the cultural institutions, the commercial corridors, things that spur the economy in the City, also need help. We believe that to do this through the operating budget would not have that much of an impact and it would not be very immediate. So that by doing it in 76 10/17/06 - FINANCE - BILL 051089, ETC. this fashion, we would have a larger impact, a much faster pace. As to the City's debt, the rating agencies have rules of thumbs on our ratio of the City's debt service to revenues somewhere between five and 8 percent. The calculation for our debt, 9 including this 150 and other issues that 10 are not yet done; for example, the 11 juvenile justice bonds, would put us at 12 around in FY07, the current year, about 13 9.2 percent, which is kind of in the mid 14 range of where the rating agencies would 15 see this. So we believe that this is a prudent thing to do at this time.
Let me ask you a question. What about the City's ability to borrow money for infrastructure of our facilities? Where are we on that?
The City's ability to borrow money today, we have on 77 10/17/06 - FINANCE - BILL 051089, ETC. the General Fund, general obligation, on general obligation bonds, we have the capacity of about $172 million.
I'd have to have someone from the Capital Program Office to speak to that, Councilwoman. I can do that. I think that Mr. Tustin is here.
In your testimony, Ms. Naidoff, you talk about fixing sprung flooring. COUNCILMAN DiCICCO: What is sprung flooring?
I don't know what that means, but it seems that I have a sprung floor.
I have a sprung floor at a firehouse at Germantown 78 10/17/06 - FINANCE - BILL 051089, ETC. and Carpenter Lane which has yet to be repaired. I certainly think it's appropriate for the City to support the arts and culture community because they provide much-needed services to the City. Our Charter mandate is for the health and welfare and safety of the citizens of the City of Philadelphia, and as you know, we have not been able to maintain the infrastructure of some of our fire stations, police stations, rec and ball fields. I mean, they can go unattended because we don't have the money to repair them. And so my question is, how can we afford to spend the debt service to pay for this when it seems to me that an overall plan to be inclusive of the arts and culture community on an ongoing basis would be better? You have $150 million, of which this is a one-time infusion, and once that money is gone, it's gone. And the question also becomes, how do you satisfy -- all these groups in this room 79 10/17/06 - FINANCE - BILL 051089, ETC. are not going to be satisfied. They're not going to be helped, just a few. So when their turn comes, how do we help them without an overall plan to provide continuous support to these organizations? Because you've pretty much appropriated $60 million to Avenue of the Arts, Benjamin Franklin Parkway, Centennial District, the Historic District. They're all very large projects, and don't take into account the $2.5 million you're going to give to the cultural fund, smaller organizations, and they can get up to $250,000. How many groups can you fund with that?
Well, we're hoping for $5 million. The 2.5 is the first year. But let me address the larger question that you're asking. I don't think anybody would dispute your characterization of all of the important services that any city must provide to its citizens. I think the difference is that we look at the 80 10/17/06 - FINANCE - BILL 051089, ETC. investment in arts and culture as that, as simply an investment. It is a way of stoking the economic engine that produces a lot of good things for our community, including not only, I should say, the quality of life enhancement but, most particularly, the economic vitality of our City and the ability to increase the revenues as more and more people move to our City, as businesses move to our City, as more tourists come here, and we believe that's the kind of investment we need to generate those kinds of revenues that will allow us to do many more things in the future as our City continues to prosper, as we continue to have a more and more vibrant community that is attractive to, as I said, businesses, residents and visitors.
And that may be true and it sounds very good, but it doesn't help the firemen at Carpenter Lane and Germantown Avenue who needs a floor. 81 10/17/06 - FINANCE - BILL 051089, ETC.
Thank you, Madam Chair. Mr. Jannetti, this is not a general obligation bond, is it?
So it in no 13 way affects our debt limit in terms of other capital projects, does it?
No, it doesn't, but we do have to pay the debt service. While the debt doesn't go against our General Fund bond obligation, it does --
Point 82 10/17/06 - FINANCE - BILL 051089, ETC. of information, Councilman Goode.
Mr. Jannetti, once again, this does not affect our debt limit?
Therefore, we are not pulling from the same pot of money for this bond issue as we are for fire stations?
All right. So if we wanted to float a bond for the City for the general capital bonds, would we have the dollars to pay the debt 83 10/17/06 - FINANCE - BILL 051089, ETC. service?
Yes. We have projections out through the Five-Year Plan. There's a projection for a new borrowing in Fiscal '08 of about $170 million. There's a projection of a new borrowing in '10 of about $100 million to fund the Capital Program.
Okay. Have we cost out the bond deals that have not gone -- we haven't approved two budgets, Capital Fund budgets. They haven't gone to the public yet.
Okay. For the past few fiscal years, City Council and the Administration have been at an impasse with regards to allowing District Councilmembers to spend capital dollars in their district. When will this issue be resolved and why should we support 84 10/17/06 - FINANCE - BILL 051089, ETC. this bond when the City facilities in our district are on the verge of an infrastructure crisis and we just talked about the PICA letter? What are we going to be doing to help our City infrastructure?
Again, I think the way we look at this, it's an investment in our future. It's an investment in the kinds of organizations that we believe will make the City a better place to live, will make us more attractive to businesses, more attractive to tourists and in the long run will make our economy much sounder, much more prosperous in the years ahead.
Has the Administration assigned target reduction numbers to any City agencies? After we passed the budget, did you go back to the various agencies and give them a targeted budget?
We do have targeted budgets for all across the City, 85 10/17/06 - FINANCE - BILL 051089, ETC. Councilwoman.
What are some of the areas that you asked the departments to decrease?
I would have to have the Budget Director speak to that. I can get that for you.
Would you agree that DHS was cut by a million dollars?
Fairmount Park by 128,000? The Sheriff's Office by 203,000? The Library by 394,000? L&I, a very important office, for 182,000? Once we passed the budget this past June and gave the departments their dollars, then you all went back and asked them to cut more, right?
Well, the target budget is a budgeting tool we use to hold down expenditures until at least later in the year. 86 10/17/06 - FINANCE - BILL 051089, ETC.
In light of the recent layoffs at the City's housing agencies and department budget cuts, why are we increasing the City's annual debt service for decades when we are reducing vital staff that is needed for NTI projects like property acquisition, urban renewal areas needed for L&I inspections?
The layoffs in the City's housing agencies were as a result of reductions, and there will be many more to come in future years from federal resources that are allocated specifically to those activities. The kinds of investments that we're talking about today are capital investments, again, designed to spur our economy and improve quality of life and infrastructure, frankly, in many of these same neighborhoods.
I am not in support of what you say about the various -- about this product and about 87 10/17/06 - FINANCE - BILL 051089, ETC. what you want to do, but it seems to be that the timing -- we've been talking about this for a long time, and the timing now for me is very interesting. Particularly in light of the PICA letter, how do we move forward to do this, given what we don't have in terms of the City infrastructure we need to support?
I think one of the things to point out -- and I didn't do this earlier -- is that much of this investment that I've been talking about is going to be for public infrastructure. I think it's quite clear, and I assume we all feel the same way about this, we wish we had an endless supply of money to do everything, but in truth, that's what we have to do. We have to make hard choices, and in our view, in the view of the Administration, this kind of investment, much of which will go for public infrastructure, is something that will have great payoffs down the line, which will allow us to do even more in 88 10/17/06 - FINANCE - BILL 051089, ETC. other areas.
None of you can probably answer this question, but I just raise it as a rhetorical question. You keep talking about the commercial corridors, and certainly I support the revitalization and stabilization of commercial corridors, but what is missing for me in all of this is how do we help those people in the neighborhoods, too. We didn't do it through NTI to some measure. I have a neighborhood where the residents are calling out for just some help to help them repair their driveways. They don't want the City to pay for the driveways, but how do we help them develop a mechanism? We've come up with a mechanism to help them repair their driveways, and which we can't get the people in the commercial corridors to support, by the way, because they don't believe they have to spend the money to help repave the driveways, but we can't 89 10/17/06 - FINANCE - BILL 051089, ETC. get a response from the Administration, because we only need about $250,000, and these are for taxpayers in the City of Philadelphia. So my frustration is not with your program. My frustration is about trying to get something for people. When I go to a meeting tonight up at the Leeds School, the top question on the list will be, When are you going to come up with the program to help fix our driveways? And it's the only program we asked the City to fund, and no response.
I will respond only because I know that this conversation has been going on for a long time. And as you acknowledge, it is difficult because these are the responsibilities of those residents and yet you're looking for some way that the City can assist really with project management of that. I think it's a little bit -- I understand you're connecting them, but 90 10/17/06 - FINANCE - BILL 051089, ETC. it's a little bit apples and oranges, but --
Well, I understand that. All I'm saying to these people in this room so they won't think I'm against them getting some funds for their organization, I have 154,000 people in my district and a number of them are homeowners who have asked the City just to help us help ourselves, and we get no 12 response to a letter. We get no response to those people in the Ninth Councilmanic District who have constantly asked whenever I go to a meeting, How do we help ourselves repair these driveways? So I'm sorry to you people in the audience. You have to hear my frustration, because if I asked how many of you lived in the Ninth and how many of you have asked me about driveways, you might raise your hand, because that is a problem, too. So when we look at how do we treat our citizens overall, that is a 91 10/17/06 - FINANCE - BILL 051089, ETC. question for me, and how do we fix the firehouse at Germantown Avenue, and PICA says that we can't afford it, how do we proceed forward when we can't take care of the infrastructure items in the City of Philadelphia?
Well, again, I would point out that much of this money is being dedicated to public infrastructure, and I would also go back to my original point, which is that we believe that it is an investment that will pay off in the future and allow us to do a whole lot more as the years go by, as the additional revenues come online.
Thank you very much. And the Chair would like to note that every week in Council -- and we've been dealing on the issue of housing, of reorganization, and we have ongoing discussions and I've had weekly 92 10/17/06 - FINANCE - BILL 051089, ETC. meetings on that subject. So I'm really, really concerned about the people who work in the housing agencies, where they are. We've gotten a promise of a specific review. We're really concerned about people who are up to 53 to 55 years of age and more than 30 years of service and what happens to them, who is allowed to come back, where the jobs are and so forth. So I want Council to know we're still dealing with that and we will still be responding to that issue again, as we always do, Thursday after Council when we have an opportunity to speak. Councilman DiCicco. COUNCILMAN DiCICCO: Thank you. Thank you, Madam Chair, and good afternoon. You have answered most of my questions in your response to Councilwoman Tasco's questions. Because I do think it's an economic tool. I 93 10/17/06 - FINANCE - BILL 051089, ETC. mean, I'd look at it that way. And certainly I believe that the rec centers and other of our public facilities need more attention and more money. There's a way of getting there. Again, I look at this pretty much as an economic tool. In that regard, are there any projections, any analyses, of what we think the return on the investment might be? I'm looking in the back of the room 12 and I know when the Philadelphia Art Museum, as an example, comes forward and asks for additional funding, they use a formula for every dollar that's invested at the Art Museum, correct me if I'm wrong, the City gets a $4 return on that investment. So in the context of what we're talking about here, are there any projections of what we anticipate? There's not an exact science to this, I understand, but given our history and what we've done in other areas, can someone speak to that? 94 10/17/06 - FINANCE - BILL 051089, ETC.
The best answer I can give is to rely on others who are much smarter about this than I am, and the Pennsylvania Economy League a number of years ago in a study called the RACE study, which stands for Regional Arts and Culture Enterprise, found that every dollar invested in the arts supports $2 in regional spending. Now, that would probably be consistent with what you pointed out about the Art Museum, because if you spread it across a lot of organizations with a lot of different revenue and expense pictures, it probably does even out to something like $2. COUNCILMAN DiCICCO: But does that take into account increase in jobs? Because if these facilities are making improvements and attendance, as an example, to a museum or an arts theatre or a dance theatre were to have more activities, it certainly would probably necessitate an increase in employment. I don't think it takes into consideration 95 10/17/06 - FINANCE - BILL 051089, ETC. those dollars. It's probably just the money that's being spent.
I think it's just spending. COUNCILMAN DiCICCO: That's an unknown that is obviously a positive.
I'm sorry? COUNCILMAN DiCICCO: On the job side, that certainly can be a realization here, that we would see additional jobs.
But I think that the other important point to mention when you talk about jobs -- and Councilwoman Reynolds Brown mentioned this earlier -- the Portfolio report found that there are 14,000 people employed in the arts in this community at this point. So that's a lot of jobs even now, and if you add the additional jobs -- COUNCILMAN DiCICCO: That we would retain, and then possibly additional. That's where I was going with this.
If I may add, 96 10/17/06 - FINANCE - BILL 051089, ETC. there are also direct leverage and outcomes that we anticipate from the commercial corridors component. Obviously in a number of cases we're looking to leverage our money either one-to-one or in some cases at a greater ratio in terms of redevelopment grants, in terms of the Small Business Loan Guarantee Pool, in terms of acquisition resources, as well we can project with the accumulation of all of the activities new businesses moving onto corridors and their job-creating activities as well. It's an art, not a science, but we have some numbers. COUNCILMAN DiCICCO: I've always said when I speak at community groups about investments and development that is being proposed in their neighborhoods, if you lose the commercial corridor, you're going to lose the residential community and vice versa. So they kind of go hand in hand. I don't have any further 97 10/17/06 - FINANCE - BILL 051089, ETC. questions. Thank you, Madam Chair. Thank you.
I actually have a whole lot of questions of PICA, but unfortunately, they're not here, so I'll ask the questions of you that I have for your body. Can you -- and I don't know what member of the panel can speak to this -- talk to me about the structure and the percentage of participation for any applicants or any City initiatives as it relates to commercial corridors or any of the facilities that will seek this funding?
Before you came into the room, Councilman, we did pass 98 10/17/06 - FINANCE - BILL 051089, ETC. out -- I'm not sure if there's an extra copy -- an Economic Opportunity Plan.
You just like to put it on the record. Fine with me. We're looking for an overall participation rate of 35 percent participation among minority vendors and five percent of women. On the workforce --
When you say "vendors," you mean contracts and suppliers?
Actually, let me take that back. I was starting with employment. So I'm talking about hours worked. So on the hours worked in terms of actual employment within those contracts, we're looking at a goal of 35 percent minority persons having work hours and five percent for women as one overarching goal for the program. 99 10/17/06 - FINANCE - BILL 051089, ETC.
Right, work hours on the employment side. And on the vending/contracting supply side, we're looking for 35 percent participation for minority businesses, percent 9 participation for female and two percent 10 for disabled business enterprises. 11
Normally our ability to get higher numbers on employment exists throughout most of the government-sponsored or funded projects. I'm going to ask -- and I don't know if I can do this procedurally, but I'm going to ask that we increase from 40 percent to 50 percent on the job hours.
That's why 100 10/17/06 - FINANCE - BILL 051089, ETC. I want it on the record.
I think that you have to do that procedurally, but if I could speak to the notion for a minute. What we did was look at our performance under the Neighborhood Transformation Initiative, which was focused on really demolition contracts, and our performance there was very good, but it still did not hit that 40 percent. So we thought that given the nature of the work in streetscapes, which is going to require --
Wait a minute. Excuse me, Ms. Gladstein. You're telling me that we didn't hit 40 percent on employment?
We hit 72 percent hours worked for minority and female two percent on the hours. 101 10/17/06 - FINANCE - BILL 051089, ETC.
But when we looked at the skills associated with that work, they were primarily -- virtually all of it came from demolition, and most of the trades there were laborers, and we think that given the trades that would be involved in this program, which is streetscapes, that it may be harder to hit those numbers. Obviously Council can do as it chooses, but I just want to explain our rationale here.
Well, realistically if you don't push the envelope, people are only going to meet or come close to the number that you set. We did a project at Broad and Cecil B. Moore, which you're very familiar with, and we said 50 percent. Now, it came in at 42, but I have to believe had we said 40 percent, it would have came in at 32. So respectfully, I'm asking you 102 10/17/06 - FINANCE - BILL 051089, ETC. to consider 50 percent. And there's a reason, because I understand that the reality is under the NTI we essentially use Local 332 and Local 57, Councilman, which are laborers, who traditionally are and unfortunately are probably the only trade that has a majority of minority individuals. At some point, that cycle has to stop. At some point, we have to come up with a strategy that increases minority participation in all of the trades, and if we take this approach that we couldn't do it before, then we shouldn't expect to do it now, we'll never get there. So I take the position as a Councilperson and as a layperson that if you want to use the citizens' money -- I was getting ready to say our money, but if you want to use the citizens' money, then you should make best efforts to comply to reach numbers that are comparable to the makeup of the City. And right now I think the City is around 103 10/17/06 - FINANCE - BILL 051089, ETC. 50 percent -- and I hate to use the word in this context, but minority and 50 percent non-minority. So I think it's reasonable to request an aggressive strategy as it relates to that. So I'm going to respectfully ask again that you reconsider pushing that envelope to probably 50 percent to more reflect the population and the demographics of the City.
And we'll certainly take that into consideration. I think we are with you looking very hard at ways to maximize participation, particularly on the employment front. We think it may be harder in this case than it was with the demolition contracts, but we've been looking at size of bid contracts, working with training and apprenticeship programs and other kinds of -- and simply having the requirements at the time that the contracts are bid so people are well aware of what the expectations are, as well as having a 104 10/17/06 - FINANCE - BILL 051089, ETC. rigorous enforcement mechanism and monitoring mechanism. So we have spent a lot of time trying to look at this and would be happy to work with you to do that.
All right. I don't so much want you to work with me. I just want --
I just want you to do 50 percent, and then we'll figure out a way to get there. But if you don't put 50 percent, you're not going to get there.
The Chair agrees with my colleague, Councilman Clarke, and we would hope that before this is voted on, that we might increase those numbers.
Thank you, Madam Chair. 105 10/17/06 - FINANCE - BILL 051089, ETC. COUNCILMAN DiCICCO: Point of order.
Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair, on that very point. You say it may be more difficult in this project, and I think your rationale is because traditionally minorities are not heavily engaged in the trades, carpenters, electricians, cement masons, et cetera, so it was easier in the NTI because primarily, as Councilman Clarke pointed out, demolition, which is traditionally minority heavy in the unions. But by making that statement, I know you don't mean it the way it came out, that we're actually letting them off the hook, saying, Well, it's going to be more difficult because. And that's the reason we are where we are today, because we have never set those standards. And since this is public money, I think we probably have a better opportunity now. 106 10/17/06 - FINANCE - BILL 051089, ETC. When we talk about streetscape improvements, we're talking about infrastructure, sewer systems, electricity for lighting. Those are the unions that traditionally have pretty much closed the door on minority participation. And this may not be the forum to debate it, but since it's out there, I think at least for the record, we may now need to set the standard for those folks to say not only do we want minority participation, because what they traditionally do when they try to reach those levels, they'll take people from the suburbs and South Jersey who happen to be minorities and bring them into the City and then let the suburb work be all white. But we're looking for Philadelphians to get some, Philadelphia citizens to be part of this process, to be able to get a job, get employment and benefit as a result of what the City's taxpayers are putting into this project going forward. 107 10/17/06 - FINANCE - BILL 051089, ETC.
Agreed. I should note that we are also looking at Philadelphia residency requirements of 60 percent. COUNCILMAN DiCICCO: Thank you. Thank you, Madam Chair.
Just a follow-up on that. And it's my understanding that we will aggressively look to participate in some of the apprentice programs, some of the former ones we used? What are we using?
We had worked with a group called DAP, but we've also reached out and talked to the Housing Authority, which has a program, to a group called TOP/WIN. We'll look at youth build programs. I think one of the issues is, if we're pushing as Councilman DiCicco stated, we also have to be trying to fill 108 10/17/06 - FINANCE - BILL 051089, ETC. those positions from the other side as well and encouraging the labor unions to take on apprenticeships. So I think we have to push from that area.
Certainly we agree, and I'm sure I speak for the Committee when I say that we agree with the Councilman's assessment and also what has been said by Councilman DiCicco about public dollars. COUNCILMAN DiCICCO: I'm a minority sitting at this table.
You're a majority minority, though. And certainly we've even begun with the University of Pennsylvania, Drexel and other universities in the Third District. We've begun a Lucien E. Blackwell Apprentice Program that we've 109 10/17/06 - FINANCE - BILL 051089, ETC. been working on. So if there's a will, there's a way. If we decide we want to make it 50 percent in the City, we don't feel there should be a debate about it, and we would hope you would consider that. We're trying to work with you, we're trying to work for our citizens, but we need you to meet us there by agreeing to do 50 percent.
Councilwoman Tasco on the same subject and then Councilman Wilson Goode.
Right. Just lesson learned through the NTI process, we had to stage a demonstration at the site in Logan to get the contractor to, when you talk about hiring local residents, to hire local residents. Who will oversee this Economic Opportunity Plan? This program, will it come from your office?
We're looking at creating an oversight committee that 110 10/17/06 - FINANCE - BILL 051089, ETC. will include the agencies that you see here, City Council. We anticipate that or intend to continue to work with GPUAC, which has been monitoring on the NTI side, to do this. And I guess just to add to your point, that was an important lesson learned, in that somebody was stating some of the workers were Philadelphia residents and they were not. We were able to identify the problem and correct it, not that it was painless, but we're also going to be working with the Office of Labor Standards to work with them in terms of their reporting systems and monitoring systems.
And in increasing whatever number you request, how do you determine to get the compliance across the board?
Are you asking about the overall average compliance or the compliance per contractor or project?
We're going to be looking at it. We're going to include requirements in the bid document itself that will state for the expectations, review that at the bid meetings, and then be requiring paperwork submissions. And, again, we have had folks who have gone out in the field to check the information and to report back when it's inaccurate, and I think the language in here is to use persuasion and negotiation to work with the contractors to achieve what their commitments were, and we will do that.
Thank you, Madam Chair. 112 10/17/06 - FINANCE - BILL 051089, ETC. First, a couple more questions on this issue. You do realize we're not asking you to exceed the 40 percent goal but asking you to increase the 40 percent goal to 50 percent?
That can be achieved by just striking the numbers and adding new numbers before we pass it out of Committee today; is that correct?
Yes. That is how it could be achieved. I literally don't have a copy left in my possession, however, but they're all up there.
My question for the record is how the Small Business Guarantee Loan Pool will be funded.
We are still looking at that. We are anticipating -- let me back up. We do not anticipate funding it 113 10/17/06 - FINANCE - BILL 051089, ETC. out of bond proceeds, because if it's being used as a guarantee, we may not have a draw on it, so we don't want to borrow and incur interest payments on it. So we're looking at it possibly being funded through a letter of credit or some other mechanism, which the City would back, and we would only need to actually fund it at the point there needed to be a draw on it.
Mr. Jannetti, on your statement about our ability to borrow, our capacity is $170 million total, right?
At present time, Councilwoman. 114 10/17/06 - FINANCE - BILL 051089, ETC.
And that moves constantly as we pay down existing debt. As the ten-year average of assessed value of taxable realty increases, that --
So have you taken into account the capital projects for '08?
Yes, Councilwoman. We have a projection of where we think the assessed value will be. We know where the pay-down on the current outstanding debt will bring us. The Capital Program Office puts together their Five-Year Capital Program with their needs, and that all gets put together in an analysis of --
What is our ability to borrow beginning with our '08 budget? When we come in in January for our '08 budget, where will we be in terms of the amount of capital dollars we'll be able to appropriate? 115 10/17/06 - FINANCE - BILL 051089, ETC.
If I can clarify, that's a question -- the question you're asking me first is our debt-incurring capacity. What you're now asking me is, I think, what would be the loan authorization.
That's a different question. Excuse me. I'm sorry. When we do the '08 budget, we will be doing the '06, '07 and '08 capital budgets in some form. We think that they're going to be about $200 million, give or take. And with the $170 million we have as of July 1, '06, pay down of debt, increase in assessments, we project that in July 1 of '07 after doing $200 million or $200-plus million of loan authorization, that we'll have about $52 million worth of authorization -- or debt-incurring capacity available.
Well, after we 116 10/17/06 - FINANCE - BILL 051089, ETC. do 202 million.
We project a loan authorization in '08 -- this is over and above the 202 million -- of 69 million. We project in '09 67 million. In '10, 67 million. In '11, 67 million.
Now, doesn't the Planning Commission tell us we should have $185 million to meet the infrastructure needs of the City?
I'm not sure what they've actually said, Councilwoman. I'm going to have Mr. Tustin clarify this for me.
Good afternoon. Please identify yourself for the record.
Good afternoon, Council. My name is Rick Tustin. I'm the Director of the City's Capital Program Office. 117 10/17/06 - FINANCE - BILL 051089, ETC.
Why don't you just lay it out for me, please. You know what I want. You know what I'm trying to get to.
Yes. Could you just repeat your question again so I make sure I get it absolutely right?
Each year when we put the capital budget together, we're told that we have maybe $200 million that we can appropriate for capital projects, right?
Tell me for 2006 -- we haven't done 2006 -- 2007, 2008 and the out years what will be our ability to borrow. How much can we borrow each year?
I'm going to have to phrase the answer in your original question, which was how much work actually needs to be done at the facilities. If we were to go through each facility and do a complete 118 10/17/06 - FINANCE - BILL 051089, ETC. assessment, which we've done at some of those facilities, and look at not only the items that need to be repaired or replaced due to those reaching their end of their useful life but also improvements over and above that to carry them into future years, the number does increase from the 60's up to the number that City Planning has suggested, but the reality is, in order to maintain those facilities in the way they are; in other words, replace items that have reached their useful life, have essentially worn out and to make them usable, functioning facilities for the City's departments and agencies, we do believe that that number of 65 million or so would be adequate to complete that task. Over the last several years, as you've already said, we did not have the ability to get a loan authorization in '06 or '07. If we do get that this year, along with the '08 funding we'll be asking for, as the Finance Director has 119 10/17/06 - FINANCE - BILL 051089, ETC. said, we'll be looking at the ability of well over $180 million of spending capacity, which we will use to bring all of these facilities, as best we can, up to the optimum level of use.
But that's just for those back years. What about the future?
Well, our hopes are -- and I think we can bear this out by the assessment we've already done for recreation facilities -- once we get those facilities up to that level using that $180 to $200 million, through the existing maintenance that the individual departments have, like Recreation and Public Property and Health and some of the other ones, that we won't see that kind of financial need for capital projects going forward, because essentially we will have caught up with everything that really needs to be done, and so each year going out, our capital expenditures could be less, knowing that 120 10/17/06 - FINANCE - BILL 051089, ETC. maintenance, ongoing preventive maintenance, will help defer a lot of those new capital costs.
So you're saying that the borrowing once we settle '06 and '07 --
-- and '08, you'll have enough money to go and repair everything in the City that needs to be repaired and bring it up to standard? Is that what you're saying?
What the Chair would like to do is ask that all of you would remain. We have so many people waiting to testify, and we could finish answering questions toward the end of the hearing, if that is acceptable to everybody. Is that acceptable to the members of the Committee, so that we may have some of these folks who have been 121 10/17/06 - FINANCE - BILL 051089, ETC. waiting so long testify. Thank you very much. Is that all right, Councilwoman?
Thank you very much. We would like to call on the Art Museum, Franklin Institute, African-American Museum and University of the Arts. If you would come forward and begin your testimony. And then for all the other questions we have for our Committee, we still will ask our Commerce Director and others, our Finance Director and the head of our NTI and capital projects, to testify and answer all questions to the Committee's satisfaction before we leave. We're just trying to get some of you on board so that you may have a chance to testify. Thank you so much. We welcome you. We invite you to introduce yourself 122 10/17/06 - FINANCE - BILL 051089, ETC. to our record, certainly not to us, and to make your testimony. Thank you.
Greetings, Councilwoman Blackwell and other distinguished members of the City Council Finance Committee. My name is Anne d'Harnoncourt, the Director and Chief Executive Officer of the Philadelphia Museum of Art, and I'm joined by my colleague, Gail Harrity, Chief Operating Officer at the Museum. We don't have a live owl with us today. I commend you to a wonderful bronze owl by Picasso that sits in one of the galleries in the Museum. The Zoo does an extraordinary job with its live exhibits that tell us so much about our world, and the Museum tries to bring art alive to all of Philadelphia's citizens and far beyond. We're really delighted to appear and testify with so many of our esteemed colleagues, and I will move fast so they have a chance to speak as well to 123 10/17/06 - FINANCE - BILL 051089, ETC. follow the Zoo. I know the African-American Museum, the Please Touch Museum and many other important institutions -- the Franklin Institute has just sat down next door in person, and we will move rapidly. We did want to express our profound gratitude to Mayor Street and his Administration for his proposal of the bond issue that would support cultural and commercial corridors, including 60 million of really sorely needed capital infrastructure investment in our arts and culture organizations, so many of them located on or near the Parkway, the Historic District, the Avenue of the Arts, El Centro de Oro, the Centennial District, and you've heard about many more. The Museum's building in particular, everyone knows it well. It crowns the Parkway. It's one of the most immediately recognizable icons, architectural icons, even maybe symbols 124 10/17/06 - FINANCE - BILL 051089, ETC. of the region, and as you know, it was constructed over a nine-year period and is owned by the City. Our wonderful building, however, is now 78 years old and in truly urgent need of thorough upgrade and renovation in order to safeguard our world-class collections and to offer the spectacular exhibitions and education programs that we hope have such a deep and positive impact on quality of life, on education and the economic vitality of the region, as you've heard earlier. A substantial capital investment from the City would provide really urgently needed support and give crucial momentum, because this is really for us, it's a very important juncture to several important capital projects that must begin immediately and that really are central to our ten-year plan, which is on course to try to maintain and expand the Museum services to the public and all of those impacts, educational, 125 10/17/06 - FINANCE - BILL 051089, ETC. cultural and economic, that I spoke about earlier. And I'd like to introduce Gail Harrity to describe the projects to you briefly.
I'm Gail Harrity, the Chief Operating Officer of the Philadelphia Museum of Art, and I would just add that this is most important for the Museum's master plan. An investment of the City at this point would address a number of critical projects. One, an overdue renovation and repair of the roof, limestone facades and columns, glazed terra-cotta ornament and exterior bronze grill work protecting over 270 windows that were originally fabricated by the Tiffany Studios. Two, it would help for the construction of two state-of-the-art loading docks that will provide for secure but separate traffic of art and of all other materials in and out of the Museum, adding to our ability to mount the major exhibitions that draw so many 126 10/17/06 - FINANCE - BILL 051089, ETC. visitors to our City. Three, it would provide for the construction of a new central utilities plant that will vastly improve energy efficiency throughout the Museum's building and lower utility costs. The Mayor's proposal of support is particularly welcomed because it is extremely difficult to raise private funds for basic infrastructure improvements to City-owned buildings. Moreover, the City's commitment of substantial investment in our shared cultural treasures will leverage further private support and inspire the private individuals, charitable foundations and corporations of the region to make general commitments of an even greater scale in order to further support exhibitions, programs, collections care and education resources. As you know, education is the daily business of every cultural organization throughout the City. So an 127 10/17/06 - FINANCE - BILL 051089, ETC. investment in arts and culture is an investment in the education of our children and the enlightenment of all Philadelphians. In his Fiscal Year 2007 budget address to City Council, the Mayor stated that taken together, our great museums, theatres, libraries, park, zoo and community arts organizations constitute a great economic engine that supports tourism and higher education industries of the region. Our vibrant cultural environment also attracts businesses, nurturing the creative energies of the employees of today's cutting-edge industries. As we have heard earlier and as Councilman DiCicco had mentioned, $1 investment in the Museum yields a $4 return. For example, in 2005, the Museum's Salvador Dali exhibition generated over a three-month period $55 million in economic activity in Philadelphia and throughout the region, attracting 370,000 visitors from every 128 10/17/06 - FINANCE - BILL 051089, ETC. state in the United States and from many foreign countries. It created 20,700 bookings of hotel room nights and inspired 52,000 additional visits to other cultural institutions, historic sites and performing arts programs. 5 million. 4 million, which was split approximately 50/50 between the City and the region. But this year, this exhibition, the Dali exhibition, and Fiscal 2005 is just one example of how arts and cultural organizations contribute to the vitality of the region on an ongoing basis. I know that you will hear later from the Greater Philadelphia Cultural Alliance that has recently published a study, Portfolio, which was produced in 129 10/17/06 - FINANCE - BILL 051089, ETC. collaboration with the Pennsylvania Economy League, which demonstrate that a staggering million visits per year 5 were made to the region's arts and 6 cultural institutions by City residents 7 and visitors from near and far. This 8 impressive record of serving so many 9 individuals with extraordinary cultural 10 experiences makes Philadelphia a 11 world-class city. 12 We must invest now to preserve and enhance basic infrastructure if we wish to maintain and grow the arts as the City embraces the current and new residences and businesses that will together create our shared bright future.
And just as really a conclusion, I think we should say we are at the Museum extraordinarily aware and also really thrilled to be in partnership with so many other cultural institutions. One, the infrastructure investment in one of us, in several of us, in many of us will help all the 130 10/17/06 - FINANCE - BILL 051089, ETC. others, because in fact the cultural community of Philadelphia is a great tapestry of partnerships. We collaborate on an ongoing basis at the Museum both in our programs and in our constant outreach to new and increasingly diverse audiences of all ages, and I just would cite as one example the amazing collaborations that took place around the Benjamin Franklin Tercentary. I'm sitting next to one of Mr. Franklin's offshoots right here who was spearheading that project. And another, the great array of programs that are related to our current special exhibition of the arts in Latin America, Tesoros, and just to say that, for example, in this last year, the Museum was one of only four museums nationwide to receive the President of the United States's Coming Up Taller Award for a distinguished history of service and partnership with Latino and Hispanic communities of the region. I won't go into the detail of 131 10/17/06 - FINANCE - BILL 051089, ETC. the programs, but we have just received, which we're thrilled, a National Leadership Grant from the Institute of Museum and Library Services, which is part of the United States Department of Health and Human Services, to work together with the Philadelphia School District and many Philadelphia institutions to develop a program of cultural education for children of fourth grade level all across the City. It doesn't only take a village; it takes a whole city, and I think that's what we're all here to say today. So I just conclude by urging the Committee to support the bond issue and I recommend it with greatest -- or hope you will recommend it to the full City Council, and I do think that a substantial investment in the cultural and commercial corridors of Philadelphia -- and you'll see it in great cities all across the United States -- it's an emerging and confirmed 132 10/17/06 - FINANCE - BILL 051089, ETC. pattern of a way that cities grow into the 21st century. It seems an enormously important juncture to do this. And my colleagues and I remain at your disposal for any questions now, later or whenever.
Thank you very much. Thank you for all that you do. Thank you. Any questions? (No response.)
Chairwoman Blackwell and distinguished members of the Committee on Finance, I am Dennis Wint, President and CEO of the Franklin Institute, and I'm pleased to represent the staff, the trustees and the more than one million annual visitors to the Franklin Institute to testify before Bill 24 060692, which will provide a new and important investment in the community's 133 10/17/06 - FINANCE - BILL 051089, ETC. cultural organizations. The proposed allocation to institutions in the five cultural corridors would truly be an investment that would pay returns in increased economic activity and educational and cultural impact on the people of Philadelphia. For example, the Franklin Institute closed the special exhibit Body Worlds in April 23rd of this year, after welcoming nearly 603,000 visitors. The independent study conducted by Urban Partners estimated the direct economic impact of Body Worlds was more than $40 million. In 2007, the Institute will host Tutankhamun and the Golden Age of the Pharaohs. We anticipate drawing a million visitors from up and down the east coast seaboard, making Philadelphia the destination city in 2007. King Tut generated more than $168 million in economic activity in Los Angeles and more than 150 million in Fort 134 10/17/06 - FINANCE - BILL 051089, ETC. Lauderdale. Similar returns are expected in Chicago, the current venue, and here in Philadelphia. To bring the world-class exhibitions to Philadelphia and create the kinds of programs and experiences that drive attendance and regional spending, cultural institutions must have the exhibitions and the programs, as well as the modern facilities, the technology and the infrastructure that is expected by the public. Our sports arena show the dramatic impact of improved facilities, and also a good team, can have on public participation. We hope that our museums, our zoos and our performing arts organizations will also have this similar opportunity. Funding through the proposed bond issue would help bring our facilities up to date and allow us to continue producing the important economic return for the City. However, please do not consider economic impact as the only reason to 135 10/17/06 - FINANCE - BILL 051089, ETC. favorably report this legislation. The institutes that would benefit from this funding also have a tremendous educational resource for the City's residents, particularly the young people. The Franklin Institute last year welcomed a million visitors, welcomed more than 300,000 school children, including over 50,000 from the City of Philadelphia, who were admitted free of charge. We had no 12 charge for these programs for those children and they had the opportunity to experience a dynamic exhibition and programs, and the science and the textbook comes alive and those students learn about careers in science. The Institute is just one of many museums, performing arts companies and cultural institutions that together generate hundreds of millions of dollars in economic activity for the City and touch millions of lives through our programs and activities, and yet while our collective impact is great, our 136 10/17/06 - FINANCE - BILL 051089, ETC. collective operating margin is razor thin. The recent study completed by the Greater Philadelphia Cultural Alliance, which you've heard referred to before, indicates that the operating margin is less than two percent and nearly half of the institutions have some deficit. It's a struggle to balance the annual operating budget and it only makes it more difficult to fund capital projects and improvements. This bond would be critically important to providing a source of funding that helps ease those burdens and increase the already significant educational impact of our region's cultural institutions. I thank you for the opportunity to testify and hope that you will favorably report this bill to Council for passage.
Thank you very much. Are there any questions? 137 10/17/06 - FINANCE - BILL 051089, ETC. (No response.)
Thank you very much. African-American Museum, also University of the Arts. Welcome. Good afternoon. Feel free to identify yourself to the record and make your testimony.
Good afternoon, Chairwoman Blackwell and esteemed members of the Finance Committee of City Council. My name is Ramona Riscoe Benson and I am President of the African-American Museum in Philadelphia. I'm proud to be joined by members of our hard-working and dedicated staff, and I'd like them to stand at this time.
We see you. Thank you for being here. Thank you for all that you do. We're very impressed with all that we see. I think the African-American Museum has come alive. Thank you, and thank you for your leadership. 138 10/17/06 - FINANCE - BILL 051089, ETC.
Thank you for that. We represent one of several cultural arts institutions cited as a potential recipient of the City's proposed Cultural and Commercial Corridors Bond being considered today. I'm here to testify in full support of the passing of this bond through Committee and later through the full legislative body of Council. The unprecedented dollar amount of the public investment under your review makes today's discussion especially momentous, and the striking findings of the recently released Portfolio report, which we have heard of today, by the Greater Philadelphia Cultural Alliance makes it highly appropriate. Much is at stake. Today's hearing comes on the heels of this landmark study, which confirms the tremendous contribution the City's arts 139 10/17/06 - FINANCE - BILL 051089, ETC. and cultural organizations make to the economic vitality and quality of life of Philadelphia. The report is a priceless resource and fitting backdrop for today's discussion. It validates arts and culture as economic engines for Philadelphia, which are both worthy and in need of City support. While cultural arts institutions have proven invaluable to the City, helping to establish Philadelphia as an outstanding tourism destination, some, such as the African-American Museum, have been physically challenged to keep up. Thirty years ago, we were the first City-funded African-American museum in the nation and the only institution in Philadelphia devoted exclusively to collecting, exhibiting and interpreting the history, heritage, life and work of African-Americans. We focused on what is unique about the African-American experience, illustrating our culture and 140 10/17/06 - FINANCE - BILL 051089, ETC. contributions through the overall fabric of the American experience. Our collection includes more than 750,000 objects of art, artifacts, archival documents, photographs and related material culture. We have been a national model since our inception and recognized as an affiliate of the Smithsonian Institution, but now in the 21st century, the African-American Museum needs to upgrade its current facility to remain relevant and competitive. We need a physical plant that supports quality exhibitions and programming and provides a suitable environment for learning and enhancing the visitor experience. Unwavering in our mission, the Museum continues to struggle to present the innovative, quality level of exhibitions that are necessary to attract more visitors in an Internet-aged, technology-advanced, action-driven environment. Bond dollars for capital improvements will enable us to have the 141 10/17/06 - FINANCE - BILL 051089, ETC. foundation to provide a suitable physical plant that will enhance our galleries, provide required specifications that will attract more popular traveling exhibitions and space to create more innovative programming. For instance, on a July day during this past summer, with temperatures in the low 90's, a rainstorm generated high humidity, providing no 11 relief from the heat. Our air conditioning system ceased to function. Rain started coming in from a roof that needs to be replaced, and toilets on our upper levels were slow to flush. A visiting group of children from a community organization rightfully complained and a potential facility rental client left without a contract, concerned about our building's lack of proper facilities. Having the bond initiative passed through the Finance Committee and through Council will provide an opportunity to eliminate situations such 142 10/17/06 - FINANCE - BILL 051089, ETC. as this one and enable our institution to be considered for support.
We would be able to replace the aged heating and air conditioning system; replace the sewer line and renovate our public restrooms; replace the aging elevator, expanding its capacity for moving of freight; replace our roof; replace the current gallery wall system; upgrade the internal gallery lighting; and complete an external streetscape project and include external lighting and signage. Funds would also enable us to finally acquire the fabrication, installation and technology for a structurally sound and visually appealing gallery to support a permanent exhibition. This is something that is glaringly absent at our current facility. With overwhelming interest in the story of Philadelphia's African-American history expressed by many of our stakeholders, the likely subject of our permanent exhibit would be 143 10/17/06 - FINANCE - BILL 051089, ETC. centered around the historic African-American experience in Philadelphia. The time to introduce a permanent exhibit on this subject is long overdue. Our Museum is at an important crossroads that makes it highly suitable to be reinvented as the facility to present such a story of great importance to all Philadelphians, Pennsylvanians and visiting public. A bond allocation would also eliminate our great need for additional storage for valuable art, artifacts and archives. Since our facility has the luxury of additional external space, as part of its current footprint, the passing of this bond initiative will allow us to extend the current structure to accommodate a new storage and research area, along with additional space to extend its auditorium currently used for educational programming and events. As numerous television, print and radio news reports have confirmed, 144 10/17/06 - FINANCE - BILL 051089, ETC. the African-American Museum is undergoing a remarkable transformation. Among our noteworthy achievements are fiscal solvency, increased fund development and an improved public image. Our Board of Directors has been actively engaged in our revitalization, steering our overall direction, securing financial support, providing leadership and demonstrating commitment. Attendance is up, confidence has been restored, and public interest renewed. The Museum has made a concerted effort to develop more sustaining relationships in the community, first with communities of faith through our Partners in Heritage program; second, by developing new audiences through our Young Friends Society; and, third, by beginning to develop stronger ties with African communities in the region through our new efforts, such as Celebrate Africa programming. But there is still plenty of 145 10/17/06 - FINANCE - BILL 051089, ETC. work to do in the product area of our renaissance, and while we are up to the challenge and committed to that task, without the resources for necessary capital improvements, our hands will be tied. I thank each of you for your continued support of the African-American Museum and ask that our vision for what the Museum could be is carefully considered as you weigh your decision.
Thank you very much. Thank you for your leadership and vitality. Any questions? (No response.)
Good afternoon, Finance Committee Chair Blackwell and members of City Council. My name is Miguel Angel Corzo and I'm the President and CEO of the University of the Arts, 146 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia's 130-year-old institution devoted exclusively to educating students from around the world to create, exhibit and perform in the visual, literary and performing arts. Thank you for the opportunity to testify today in support of Bill 060692 of the Cultural and Commercial Corridors Bond. The Cultural Corridors Program is a growth strategy that will produce significant return on investment. Culture is commerce, and the Avenue of the Arts is a sterling example of how public investment in cultural corridors benefit all City residents. The City's support of the Avenue of the Arts has led to increased tourism, residential development and business activity, all of which produce tax revenue and boost the regional economy. In addition, the Avenue of the Arts has helped increase Philadelphia's international profile, leading to its recognition as the quintessential 147 10/17/06 - FINANCE - BILL 051089, ETC. American city. As the largest landholder on the southern half of the Avenue of the Arts, the University of the Arts embraces its role as an anchor of culture and education in Center City. Our location is foremost in our ability to attract and retain the talented and highly skilled young people who graduate and become part of Philadelphia's burgeoning creative economy, and, I may add, our construction of a new performing arts venue at Philadelphia's busiest intersection of arts and commerce and at a cost of $9 million will bring further strength to that effort and result in significant public benefit. We will build the Skyline Performing Arts Center on the top floors of our property at the corner of Broad and Walnut Streets. This new facility will fill a gap in the regional arts scene by providing two professional-quality performance spaces. 148 10/17/06 - FINANCE - BILL 051089, ETC. The result will be approximately 250 additional events each year that will bring up to 50,000 additional visitors to the Avenue of the Arts. With those numbers, the impact on the Philadelphia economy will be significant, as new visitors patronize the many shops, hotels and restaurants nearby. I just want to add a couple of comments. One refers to the University's successful community outreach program, which provides approximately 20,000 free tickets to school children and community groups who attend exhibitions and performances at University facilities. This program allows young people from underserved City neighborhoods to experience the arts firsthand. Many of them indeed have never seen a live performance before coming to our programs. This outreach is particularly important given reduction in arts funding in public schools. 149 10/17/06 - FINANCE - BILL 051089, ETC. Another benefit to City residents comes through our Community Performance program, which offers the use of University facilities to civic and community groups. Last year, nearly 10,000 community residents attended performances by non-profit groups, senior citizens and the school children hosted in the Philadelphia Arts Bank at the University of the Arts. As University performances are shifted from the Arts Bank to the forthcoming Skyline Performing Arts Center, we will create greater capacity and extend this community resource to even a greater number of City residents. Finally, the project will improve the Avenue of the Arts streetscape through renovations to the building entrance and lobby. Technological upgrades indeed will allow us to broadcast performances on a media wall at street level and to the community beyond via agreements with local 150 10/17/06 - FINANCE - BILL 051089, ETC. broadcasting partners.
This performing arts center is but one example of the increase in visibility and accessibility that can be created on the City's major cultural corridors as a result of the Cultural and Commercial Corridors Bond. I want to thank you for the opportunity to offer testimony, and respectfully request your favorable consideration of the proposed ordinance. And I am prepared to answer any questions you may have.
Thank you, Mr. Corzo. Any questions? (No response.)
Thank you very much. Impact Services, Philadanco, or Philadelphia Dance Company, and New Freedom Theatre, Inc. Thank you very much. Please identify yourself to the record and begin 151 10/17/06 - FINANCE - BILL 051089, ETC. your testimony.
Good afternoon, Councilwoman Blackwell and members of the Committee. My name is Randy Hofer. I'm the Marketing Director at Impact Services and also the Commercial Corridor Manager for the Kensington and Allegheny Business Association. On behalf of Impact CDC, we support the bond ordinance to restore Philadelphia's corridors. Since 2000, the K&A Business Association has grown from paid 14 members to 73 paid members in 2006. We have had great success in bringing new business to K&A, such as Walgreens, Sneaker Villa, Foot Locker and soon to be joining the corridor, Radio Shack. We have also produced six highly successful, safe and well-attended multi-cultural market festivals since 2000. We are currently in the revitalization phase of the landmark Flomar building, Kensington's six-story skyscraper, with a complete renovation 152 10/17/06 - FINANCE - BILL 051089, ETC. for office space and first floor retail. We are also working with a private developer to rehab the former Silver's Wallpaper at 3001 Kensington to 3011 Kensington Avenue, and that has been vacant and blighted for many years. We have initiated a streetscape plan, hired a design company and are in the first phase of development. Lighting enhancements are key components to our plan, and the creation of a Bond Acquisition Pool would be helpful in securing the necessary equipment that would provide additional safety and security for the commercial corridor. The Bond Fund would also provide and be beneficial in acquiring vacant properties, helping promote real estate development along our corridor. This pool would also assist in enabling the acquisition process in a timely manner as strategically located properties become readily available. Impact Services and the K&A 153 10/17/06 - FINANCE - BILL 051089, ETC. Business Association strongly encourages the issuance of bonds to support the new ReStore Philadelphia Corridors Initiative. Thank you for allowing us to present our testimony.
Madam Chairman and distinguished members of Council, I'm John Macklin, one of the Board members of Freedom Theatre. I have with me today one of the founders, Bob Leslie, and Ms. Patricia Scott Hobbs, who is our Director of Performing Arts Program and the Interim Managing Director.
Let me say before you begin, Mr. Macklin, that I'll never not take the opportunity to say thank you for all that you do. Many of you know when Lucien Blackwell introduced the set-aside, it was John Macklin who was his, quote/unquote, partner in crime, and we found out that 154 10/17/06 - FINANCE - BILL 051089, ETC. minorities were getting less than one-tenth of one percent of all contracts let in the City of Philadelphia. We were doing pretty good until this Richmond decision about 650 million. Our numbers are back low again, and we're fighting, but none of this would have happened without John Macklin, and I'll never not take the opportunity to thank you for that. And more recently, I want to thank you for helping us with the gentleman, a retired gentleman on the waterfront. Many of you know him, who's been suffering because his legs are gone and he can't get up and down the stairs, and John Macklin helped us with that. So across the board, he spent his life contributing, helping people in need, and God bless you and thank you.
Good afternoon. My colleagues and our constituents are here to support the passage of Bill 155 10/17/06 - FINANCE - BILL 051089, ETC. 060692 to support the capital needs of the Philadelphia cultural community. For more than 40 years, New Freedom Theatre has advocated for the support of the arts in community building and to serve as an alternative to the allures of the streets to our youth. We have trained thousands of young people who have gone on to lead productive lives in the arts and other professions as well. We have consistently and unwaveringly championed the cause of the community-based and operated arts institutions. At this time, we seek your approval of Bill 060692 to provide capital support through the cultural community of Philadelphia. Freedom Theatre knows the impact a stable cultural facility can do for a neighborhood. When we moved into North Broad Street more than three decades ago, we were pioneers. We stayed as anchor for the community, were one of the first 156 10/17/06 - FINANCE - BILL 051089, ETC. to embrace Avenue of the Arts North and provided a safe haven for young people. Our colleagues throughout the City are doing the same, and that's why we are here to support the capital allocation. These vitally needed funds will enhance cultural facilities throughout the City and provide the additional incentive to the private sector to support our efforts as well. The cultural economy is one of the most dynamic in the City, and we are certain that support for this bill will aid a renaissance in some communities and stability in those that have large cultural agencies. As we have demonstrated, a stable cultural organization can rejuvenate a neighborhood, as witnessed by the burgeoning development now enveloping our North Broad Street corridor. We envision that same synergy throughout the City and wholeheartedly endorse passage of Bill 060692. 157 10/17/06 - FINANCE - BILL 051089, ETC. Thank you.
Thank you. Thank you very much, John. Let me note that when John Allen was alive, I never saw him without Bob Leslie. It's always a pleasure. Thank you. Thank you for staying the course. Thank you very much. Philadanco. I think my colleague, Blondell Reynolds Brown, may know a little bit about this one from one dancer to her company. We have Joan Myers Brown herself, Founder and Executive Director. Welcome. Thank you.
Good afternoon, members of Council. I would be remiss if I didn't say I'm not here just for Philadanco. I'm here to support the entire arts community, and I think it's important that I speak on behalf of them as well as myself for the bond issue, 060692.
Thank 158 10/17/06 - FINANCE - BILL 051089, ETC. you.
I am the Founder and Artistic Director of Philadanco. Philadanco and my two schools of dance have both provided for over four decades cultural training and education to thousands of Philadelphia youth and attracted dancers from around the world. Because we hold a high degree of artistic integrity and standards of excellence, we are looked to for guidance and support from the dance community worldwide. As advocates for the arts and culture, especially dance, Philadanco has been at the forefront of many advancements in the cultural community and has spoken out as leaders to encourage more investment in the infrastructure and capital needs of the creative community. Because of our work, we have received many accolades and awards, but our greatest reward has been the many generations of young people whose lives 159 10/17/06 - FINANCE - BILL 051089, ETC. we have touched through our instruction and training program and through our performance opportunities. Other than the Philadelphia Orchestra, we are the only Philadelphia group with "Philadelphia" in our name that tours approximately 40 weeks of the year around the country and internationally. As a leader in the cultural community, I completely support the passage of this bill. It will provide capital investment in the cultural community of the City of Philadelphia. As I travel over the world representing Philadelphia with my company, I get to see what other cities, even countries, are doing to support the arts, and this initiative will place Philadelphia among other world-class cities in supporting their artistic community. Philadanco's capital needs include installation of a new elevator, 160 10/17/06 - FINANCE - BILL 051089, ETC. addition to the third floor for new studios, dressing rooms and a sprung floor, and more storage facilities and space for our archives. As our institutions grow and mature, our capacity to accommodate greater numbers of constituencies requires that we all grow and expand our infrastructures. This bill will allow the arts community to continue its important work of improving the quality of life in our communities while creating beautiful works of art. The contribution to the capital needs of the community will also signal to foundations and other corporations that the City is serious about supporting the arts and encourages like-minded contributions from the private sector. Contributions to the arts are leveraged as much as four times, as we've all heard today. Finally, a contribution towards the capital needs of the arts community 161 10/17/06 - FINANCE - BILL 051089, ETC. ensures that for many generations to come Philadelphia will continue to be considered a cultural mecca where the arts hold a prominent place in the life of the City. I continue to urge the passage of this bill, which will breathe new life into the infrastructure of Philadelphia's cultural community, and I thank you for the opportunity to address you and I hope you will support this bill.
Thank you. How kind of you to remember everyone else, too. Thank you. Councilwoman.
Ms. Myers Brown, affectionately known as JB, Madam Chairperson Blackwell opened the door, so I'll finish the sentence. I have a 30-year affiliation with the Philadelphia Dance Company from being a student to a member of the company, a member of the Board, a volunteer and now a parent there, and this is the first where we sit 162 10/17/06 - FINANCE - BILL 051089, ETC. across from each other on the same team for the community we love the most, and that is, the arts and culture community. So given, again, as Jannie Blackwell has indicated, you spoke for the entire world of our City of arts and culture, and that just goes well to what you're being celebrated for next week. You all should know that Joan Myers Brown is receiving the highest award of its kind, the Dance Magazine Award next week, and we congratulate you for again representing the City. (Applause.)
Thank you very much. Greater Philadelphia Urban Affairs Coalition, Philadelphia Commercial Development Corporation, WHYY, Mann Center. Thank you very much. Please identify yourself to the record and begin your testimony. 163 10/17/06 - FINANCE - BILL 051089, ETC.
Good afternoon. My name is Leslie Benoliel. I'm the Executive Director of the Philadelphia Development Partnership. I'm here today representing the Small Business Lending Task Force of the Greater Philadelphia Urban Affairs Coalition. Don Kelly was supposed to be here. He had a conflict. I was also scheduled to testify on the very same item.
Curtis Jones, President and CEO of the Philadelphia Development Corporation, PCDC.
Well, good afternoon, Chairwoman Blackwell and distinguished members of Council. Thank you very much for this opportunity to testify today regarding Bill No. 060692, which proposes the issuance of a bond to fund the ReStore Philly Corridors Program 164 10/17/06 - FINANCE - BILL 051089, ETC. and the Cultural Corridors Program. And let me just say, it is such an honor to be in this room with all these amazing people and amazing institutions. It really makes me proud to be a citizen of this wonderful city. As Chairperson of the Small Business Lending Task Force of the Greater Philadelphia Urban Affairs Coalition, I will address the component of the bill that proposes to allocate $6 million for the Small Business Loan Guarantee Pool. The Task Force, first and foremost, heartily endorses this component of the bill. Those of you familiar with the March 2004 report of the Small Business Lending Task Force may recall that one key recommendation to increase the amount of lending by mainstream financial institutions to small businesses in low- and moderate-income and predominantly minority parts of the City was to 165 10/17/06 - FINANCE - BILL 051089, ETC. establish a loan guarantee fund to target area small businesses comparable to the reserve fund created for the PHIL-Plus and Mini-PHIL Home Improvement Loan Programs for borrowers with less than perfect credit scores. The same concept was included in the recommendation of the Task Force made subsequently to City Council on November 2004 as part of a $47 million proposal for a comprehensive set of strategies to increase the availability of mainstream credit to small businesses. Of the 47 million proposed, the Task Force had recommended $25 million to be allocated to the reserve or guarantee fund. This proposal was unanimously agreed and endorsed by City Council. The challenge that the Task Force is trying to address is that many established and emerging small business owners don't qualify for conventional bank loans because of insufficient collateral, lack of management experience 166 10/17/06 - FINANCE - BILL 051089, ETC. and a history of credit problems and consequent low credit scores. Unable to walk into a bank and obtain a loan, such small business owners resort to high-priced credit cards, consumer finance loans or, worse, predatory lenders. Mostly they simply rely on whatever capital they can pull together from themselves, from family and from friends. Our challenge is to figure out how to persuade mainstream financial institutions or commercial banks to make loans to this group of borrowers. A similar challenge faced the community in the home improvement field several years ago when homeowners with credit problems had no other choice but to turn to high-cost subprime lenders, many of whom are considered predatory. The PHIL-Plus and Mini-PHIL Home Improvement Loan Programs was a creative response of a partnership of banks, community groups and the City of 167 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia put together. Through these programs, mainstream banks were then able to make loans to homeowners with credit scores significantly below banks' normal minimums. This made possible two loss-mitigation strategies: One, the required pre-application counseling for these homeowners and a loan loss reserve fund. Our experience is that the reserve fund need not give the banks full recourse for every loan made. We have found that the banks are willing to take on more risk and greater loss exposure within certain limits. Consequently, the program was designed to provide enough coverage to participating banks for 100 percent recourse for one in six loans that might default. If more than one in six failed, the additional losses were absorbed by the bank. The leverage ratio for the public sector's investment was, therefore, six to one. The Task Force thinks that a 168 10/17/06 - FINANCE - BILL 051089, ETC.
similarly structured program would enable mainstream banks to significantly increase their lending to small business owners with less than perfect credit. However, as with any type of investment, there is a risk/reward calculation to be made. With the PHIL-Plus, the banks were willing to consider lower credit scores from 620 to 580 -- those are the FICO scores -- in return for a reserve fund that covered to percent of their 13 lending exposure. Were the City to 14 insist that the banks lower their 15 standards even more and accept lower 16 credit scores, banks would require 17 greater coverage, something along the 18 lines of 40 percent. This would 19 effectively lower the leverage ratio from 20 six to one to less than three to one. Were the City to set up a loan guarantee fund of $6 million with a leveraging ratio of six to one, it would generate $36 million in bank loans. Were the credit standards lowered, the banks 169 10/17/06 - FINANCE - BILL 051089, ETC. would insist that the coverage increase to lower the leverage ratio less than three to one, and this would generate $18 million in commercial loans. The Task Force is an organized group of banks, many of whom have already created progressive small business loan policies that we refer to as the Tier One. Several banks have gone even further and agreed to lower their standards below Tier One levels in return for mandatory pre-application loan counseling and technical assistance. We refer to this as the Tier Two. The Tier Two Program is on track to be formally announced before the end of this year. A loan guarantee as envisioned in the $6 million feature of this bill is what we would call Tier Three. This would require to take minimum credit scores down to even further below that 600 level, but to do so, the program would have to be thoughtfully structured. The Task Force, with its participating 170 10/17/06 - FINANCE - BILL 051089, ETC. banks, would be pleased to discuss this initiative with the City in order to structure it in a way that makes the most sense for all parties concerned. We conclude by endorsing this bill and offering to assist the City in designing the loan guarantee program for small business lending. Thank you very much for your consideration.
Thank you very much. Any questions? (No response.)
Well, I conclude that in my testimony. I am pleased to offer this testimony in support of Bill 060692. 171 10/17/06 - FINANCE - BILL 051089, ETC. This proposed bill mirrors economic development activities in Philadelphia's PCDC, and we've been engaged in those activities for the last 32 years. It is of particular importance that I say that this will be the last time that I testify on behalf of the Philadelphia Commercial Development Corporation. I've submitted my resignation after years, and it's been 12 an honor and a privilege to at least that 13 many times come before this body and 14 fight for small businesses, and I want to 15 thank you all for that opportunity. At PCDC, we view in addition to cultural impacts that there will be commercial benefits to Philadelphians. We will enjoy construction and business development opportunities funded by this bond issue. We must also make sure that the minority community and women-owned business community benefit from these funds. Among the many business 172 10/17/06 - FINANCE - BILL 051089, ETC. development activities conducted on PCDC's behalf, Philadelphia businesses, we manage over 45 commercial corridors located in the City of Philadelphia. These business corridors include Point Breeze, 52nd Street, 60th Street, Baltimore Avenue, Chester Avenue, Lancaster Avenue, Frankford Avenue, Germantown Avenue and Chelten Avenue, Kensington and Allegheny, Broad Street, Cecil B. Moore and Girard Avenue, just to name a few. Collectively these corridors generate $774 million in retail sales and employ thousands of the City's citizens. Of the $150 million proposed in this bond issue, 37 million, which represents about percent of the fund, 19 will be earmarked for commercial 20 corridors. PCDC has considerable 21 experience in each of these areas and of 22 these line item expenditures. 23 I could go on and on about 24 PCDC, but I want to go down to the point 25 that Councilwoman Blackwell talked about, 173 10/17/06 - FINANCE - BILL 051089, ETC. that as we look at the benefits of this proposed bill, one of the areas that we want to heartily consider for some of the funds is the corridor impacted by the SEPTA El construction. In that corridor from 46th to 63rd Street on Market, we have lost not less than 30 businesses due to that construction. We put out over a half a million dollars in that area, but what the businesses say to me when I meet with them, what they've said to you, Councilwoman, is that they want to know what's going to come once the construction is done, and I'm glad to tell them today that we can be assured that Bill 060692 is on the way, and they view this as good news from City Hall. So we want to thank you for that.
Let me thank you as well and PCDC. You and your office have been the conduit for all of our funds, and any money we try to get separately, you've also tried to distribute. It's not easy when people 174 10/17/06 - FINANCE - BILL 051089, ETC. are suffering and businesses are closing to deal firsthand with these individuals who have 30, 40 and 50 years working and the SEPTA project closed them down. So I want to thank you for that and certainly thank you for your years of service to 8 the City of Philadelphia. 9
Thank 12 you. Thank you. 13 Any questions? 14 (No response.) 15
Thank you very much. Welcome. Please identify yourself for the record and begin.
I'm Peter Lane, President and CEO of the Mann Center for the Performing Arts. Good afternoon. I'm pleased to be here today to show my support for legislative Bill 060692 and the assistance it will provide to the City's 175 10/17/06 - FINANCE - BILL 051089, ETC. cultural institutions. Originally founded in 1935 under the name Robin Hood Dell Concerts, the Mann has been the home of summer music in Fairmount Park for over 70 years. Through its operation of this City-owned facility, the Mann is dedicated to the cultural enrichment of the community-enhanced public awareness and enjoyment of the performing arts. The Mann is summer home of the Philadelphia Orchestra and has also presented such landmark performances as the Israel Philharmonic, the debut of Cats, the premier of River Dance, along with diverse world-class artists, including Norah Jones, Tony Bennett, our distinguished and former Ray Charles, Bonnie Raitt, BB King, James Taylor, Denyce Graves, Bob Dylan, one of my favorites, Aretha Franklin, who I did invite today but she couldn't make it, among others. As part of the Mann's 30th 176 10/17/06 - FINANCE - BILL 051089, ETC. anniversary season, a comprehensive master plan was adopted and renovations and construction of new facilities debuted to critical acclaim just this past season. Completion of the first $15 million capital project of the first phase is part of a larger $50 million vision we have and is designed to enhance the Mann experience for all our visitors. New access roads, improved parking, new landscaping for the park, handicap access and other patron amenities, many of which will be fully on line in 2007. And, most importantly, the new Field Education and Outreach Center will be the first ever building dedicated to the performing arts in West Fairmount Park and will open for education programming, bringing thousands of children through the center just next year. Through this capital project, the organization has reaffirmed its commitment to the Philadelphia region and to education and outreach programs 177 10/17/06 - FINANCE - BILL 051089, ETC. designed to serve the greater community. Service to the community has been and continues to be a cornerstone of operations at the Mann. Through Access the Arts, which encompasses several Mann outreach initiatives, over 50,000 complimentary admissions to performances are made available through 350 local community service and charitable organizations. The Mann is the only major summer outdoor entertainment venue in the country with a public access outreach program of this magnitude. Central to the mission of the Mann is its long-time commitment to introducing the performing arts to people who otherwise would not have access to live performances. Through two youth-centered initiatives, the Mann served over 6,500 children in Philadelphia schools this year and over 30,000 young people during free summer programs on the Mann stage. Both of these programs offer a wide variety of 178 10/17/06 - FINANCE - BILL 051089, ETC. music, song and dance performances that celebrate the diverse countries and cultures from around the world. In addition, the Mann opens its gates for a variety of community events, including the Sunoco Welcome America Annual American Gospel at the Mann, graduations and other civic programs. Through the size of its audience, the quality of our programs, the design of education and outreach programs, our location and mission, the Mann is working hard to make the performing arts part of all of our lives. We are deeply involved in the surrounding community of our West Philadelphia neighborhood. The Mann focuses on hiring local youth and residents for more than 100 summer jobs, creating a significant economic impact in our neighborhood. It is important to note that a revitalized Mann Center is only one piece of the transformation currently underway in West Fairmount Park. The Please Touch 179 10/17/06 - FINANCE - BILL 051089, ETC.
Museum, who you'll hear from in a minute, will soon open its doors. The Philadelphia Zoo completing its multi-million dollar capital master plan, the new Microsoft High School all serve to complete a renewed neighborhood in the Parkside area of West Philadelphia. There is no question that together these institutions will have a multi-faceted positive economic impact on our West Philadelphia community, including planned economic growth for residents and businesses alike. This bond issue before you clearly comes at a most important time, as the transformation of West Fairmount Park begins to create the newest cultural corridor in West Philadelphia. As always, I thank you for your ongoing support of our efforts on behalf of the Mann Center for the Performing Arts and your support of this important piece of legislation.
Thank 180 10/17/06 - FINANCE - BILL 051089, ETC. you very much. Any questions? (No response.)
Thank you. Philadelphia Chinatown Development Corporation, Snyderville. I almost said Smallville. Too much TV. Snyderville Community Development Corporation, East Falls Community Development Corporation, Mantua Community Planners, Southwest Community Development Corporation and the Partnership CDC. If any of you are still here, please feel free to come forward. You may sit inside the gate and we'll know, and we can move our program along. Thank you very much. Please identify yourself for the record and make your testimony. Thank you.
Thank you. My name is Isaac Kwan. I'm here representing Philadelphia Chinatown Development Corporation. I'd like to thank Madam 181 10/17/06 - FINANCE - BILL 051089, ETC. Chair and the Finance Committee for letting me testify today. Philadelphia Chinatown Development Corporation, or PCDC, strongly supports the issuance of bonds for the purpose of funding the revitalization effort in Philadelphia's cultural and commercial corridors. PCDC believes that this is a wise investment of public funds that will have immediate impact in the short term and pay huge dividends in the long term. In advocating for Chinatown for the last 40 years, PCDC is aware that the uniqueness of Chinatown is its dual nature of a residential/commercial center, as well as a vibrant arts and culture district. PCDC has been promoting both aspects of Chinatown, and the $150 million in bond funding will help revitalize Chinatown and support important cultural activities. PCDC believes our arts and culture is an essential part of the very 182 10/17/06 - FINANCE - BILL 051089, ETC. fabric of any neighborhood. They enrich people's lives; in particular, the character development of youth, and provide the propulsion for sustained economic development. For these reasons and more, one of the priorities for PCDC has been developing venues for cultural programs in Chinatown.
Excuse me one moment. Let us thank Peter Longstreth for coming to lend support to this effort. Thank you for being here early and staying so long. Thank you very much.
For many years, PCDC has been working diligently to develop the Chinatown Community Center. This center will be home to an assortment of cultural activities and programs targeting youth and senior citizens and will also incorporate 50 units of new affordable housing in Chinatown. The very people that PCDC serves are the ones 183 10/17/06 - FINANCE - BILL 051089, ETC. who create the culture for the entire City to see. PCDC is also in support of using the 65 million of the bond proceeds for the ReStore Philadelphia Corridors Initiative. Making commercial corridors inviting places to shop and work is an important cause for Chinatown. Chinatown is a destination for tourists and locals. Chinatown offers Chinese/English bilingual churches, Buddhist temples, Asian restaurants, cooking and historical tours and, of course, the Chinatown Friendship Gate. PCDC has been active in implementing holistic plans to restore and make Chinatown a more attractive destination. PCDC is one of 17 organizations that collaborated with Greater Philadelphia Tourism and Marketing Corporation to develop neighborhood tours as a vehicle for neighborhood economic development. PCDC has been working on a Chinatown 184 10/17/06 - FINANCE - BILL 051089, ETC. Streetscape Improvement Project that involves the development of a plaza at 10th and Vine Street, the installation of a new mural called the Reflection Wall, a traffic calming project at 9th and Vine and tree plantings all around Chinatown. PCDC has leveraged funds from the state through the Hometown Streets Program, Department of Conservation and Natural Resources and a grant from Hahnemann University Hospital, but the funding support through the ReStore Philadelphia Corridors Initiative is critical to the successful completion of this project. Also included in the plan is the final restoration of the Chinatown Friendship Gate at 10th and Arch Streets. This gate is not only a symbol of Chinatown but one of the main icons of the cultural diversity of Philadelphia, which draws tens of thousands of people every year. Originally erected in 1984, the gate is in serious need of painting and masonry work. Access to funds made 185 10/17/06 - FINANCE - BILL 051089, ETC. available through the bond proceeds would help the City preserve this important gate for future generations. We would like to urge the City to implement a City-wide campaign to market neighborhood corridors as good places to conduct business. Philadelphia truly is a city of neighborhoods. The partnership with the Greater Philadelphia Tourism and Marketing Corporation has been successful in bringing visitors to Chinatown and it seems that Philadelphia needs to transfer its successes in tourism marketing to attracting the business community. The recipe for long-term growth of Philadelphia neighborhoods is when people work, shop and have access to cultural services in the neighborhoods in which they reside. Thank you for your time.
Thank you very much. Any questions? (No response.) 186 10/17/06 - FINANCE - BILL 051089, ETC.
To our Chairwoman Blackwell and all the members of the Committee, good evening. My name is Reverend Dr. Carolina B. Harris Ramsue, and today I am here to join hands with our PACDC members, the faith-based community clergy, CBOs and business in supporting Bill No. 060692 introduced by my District Councilperson now, Jannie Blackwell. Southwest Philadelphia below Baltimore Avenue remains the most depressed area of West Philadelphia. However, Councilwoman Blackwell has been 187 10/17/06 - FINANCE - BILL 051089, ETC. working closely with Snyderville and the community in coordinating these services. This proposed bond to ReStore Philadelphia Corridors Initiative and the Cultural Corridors Program would also serve as a breath of fresh air for the 58th Street corridor below Baltimore Avenue. As stated by PACDC, this is a wise investment to address the capital needs of our commercial corridors throughout the City of Philadelphia and to also support the work that CDCs are doing as well. However, it is very important that we include all organizations involved as we coordinate these efforts. I believe that the developments of our business in these corridors is vitally important if our community is going to survive economically. Without small business in our community, we lack economics and jobs, which is so vital for our young people. 188 10/17/06 - FINANCE - BILL 051089, ETC. Last year, Snyderville relocated to its new home in Southwest Philadelphia and participated in several community meetings since then. Out of these meetings, several community needs have been identified, such as remove blighted properties on the 58th Street corridor and create parcels of commercial and mixed use; funds for pre-development activities for commercial activities that will bring more businesses and jobs to this community; improve business that is already on the corridor by providing them with small business guarantee loan pools; improve street lighting, sidewalks, greening, trim the trees and the street pavement. Snyderville CDC brings many years of experience in community developments and, therefore, would like to be included in coordinating and managing the 58th Street corridor development. Bringing this program as part of the Southwest, it will not only 189 10/17/06 - FINANCE - BILL 051089, ETC. strengthen the City-wide effort but would also help to attract small businesses to our neighborhoods, which is a good place for business and the creation of jobs. I also want to include that I heard all the testimony this morning, and one of the things that really, really fascinates me is when people talk about the City infrastructure. To me, the City infrastructure also includes the corridors and also includes businesses and also includes the creation of jobs. And so I support this bill because I think that this bill is the best thing that ever happened to the corridors and to our neighborhoods, because without the businesses in our neighborhood, there is no economic growth. And so we thank you. Thank you, Councilwoman Blackwell and your committee for allowing me to come and to share our community corridor with you, and we look forward to working with you in re-establishing the 58th Street business corridor where once upon a time 190 10/17/06 - FINANCE - BILL 051089, ETC. it was one of the central places to shop in Southwest.
Hi. I'm Seth Dorrell from Southwest Community Development Corporation. I'm the Director of Economic Development there. Southwest CDC strongly backs the issuance of bonds to support the new ReStore Philadelphia Corridors Initiative. This is a wise investment to address the capital needs of neighborhood commercial corridors throughout the City and support the critical work that CDCs and other organizations are doing to facilitate corridor revitalization. Southwest CDC works largely with the Woodland Avenue Commercial Corridor in Southwest Philadelphia but also assists with the Chester Avenue and Elmwood Avenue Commercial Corridors. Our efforts to revitalize these corridors through the Southwest Economic 191 10/17/06 - FINANCE - BILL 051089, ETC. Development Strategy and, more specifically, the Woodland Avenue Revitalization Project, also known as WARP, would be greatly enhanced with additional bond funding. WARP was created to improve the appearance of the avenue, the quality of goods sold and to reduce the perception of crime, with the goal of increasing the number of consumers. The development strategy for the Woodland Avenue Revitalization Project details 33 tasks designed to accomplish that goal. They also include exciting renderings of what the avenue can be with a few key improvements. These efforts would aid in streetscape enhancements, acquisitions, demolition, commercial development and small business support. With an increased amount of funding from the City of Philadelphia, additional funding could be leveraged from other sources, including the Hometown Streets and 192 10/17/06 - FINANCE - BILL 051089, ETC. private developers. Southwest CDC also supports the proposed creation of a CDC Acquisition Pool to support CDC real estate development on commercial corridors and the need for the pool to be administered by an entity that can deliver funds quickly to enable CDCs to respond to opportunities as they arise to acquire strategically located properties. We also support the use of the streetscape enhancements and capital improvement funds to purchase, install and maintain pedestrian lighting to increase safety on commercial corridors. In order to ensure that the new program is effective as possible and that this resource is used to its fullest potential, we urge the City to ensure that the program is flexible. Funds should be administered in a flexible way and should help support organizational staffing and administrative costs associated with implementing capital 193 10/17/06 - FINANCE - BILL 051089, ETC. improvements. To ensure the greatest impact, adequate non-bond funding must also be made available to support costs associated with implementing complementary corridor revitalization strategies. Transparent as well, the City should also develop a clear, written guideline for programs and how organizations can apply for funding and will be chosen and make awards in a timely manner. Where appropriate, the City should use an open RFP process to award funds like the ones used earlier this year to award the NTI commercial corridor funds. And also accountable. Recipients of funding should be held accountable for their performance to ensure that scare resources are being used to their fullest potential. This program will be greatly strengthened if it is partnered with a coordinated City-wide effort to help 194 10/17/06 - FINANCE - BILL 051089, ETC. market neighborhood commercial corridors as good places for businesses to locate. Business attraction is one of the biggest challenges CDCs face in their neighborhood economic development work. This initiative should support a City-wide marketing strategy to help attract businesses to our neighborhood corridors. Thank you very much for your time and consideration.
Thank you very much. Any questions? (No response.)
Thank you all. Bill Marrazzo. The other CDCs who were here we called. Nancy Kolb, President, CEO, Please Touch; Greater Philadelphia Cultural Alliance; Asian Arts Initiative; and the West Philadelphia Cultural Alliance/the Paul Robeson House. Thank you. 195 10/17/06 - FINANCE - BILL 051089, ETC. Thank you very much for your patience. Welcome. Please introduce yourself to the record and provide your testimony. Thank you for all you're doing, Bill.
Thank you. Madam Chairman, good afternoon. Members of the Committee, good afternoon. It's always great to be back in this beautiful chamber. Madam Chairman, in the interest of time, I took the liberty of submitting detailed testimony for the record --
-- earlier this afternoon. I am here, I guess, though, in summary, to share with you two public pledges on behalf of WHYY. First is, I thought the presentation from the Zoo was a benchmark, and you all may know we, too, have a bird, Big Bird, and I'm really regretful that I didn't have the wisdom or the foresight to bring he or 196 10/17/06 - FINANCE - BILL 051089, ETC. she along. But in deference to the wisdom of our colleagues at the Zoo, WHYY would like to pledge the value of the first ten percent of anything it may get out of this bond issue for the Philadelphia Zoo. They did a great job.
That really, Councilwoman, moves me to the meat of my presentation. WHYY's interest in expressing its support on behalf of the cultural arts community for your vote on this bill 16 really rests in our belief that our responsibility, the cultural arts community, is to support them, to partner them, to use emerging broadcasts and digital technology as a device for magnifying creative expression in this community. It was interesting to listen to our colleagues from Philadanco earlier. When WHYY had the privilege of producing 197 10/17/06 - FINANCE - BILL 051089, ETC. X-mas files with Philadanco, it not only brought warmth and love and excitement to the holiday season here in the Delaware Valley, but some million people across 6 the United States had the privilege of 7 experiencing the uniqueness of that art 8 form. So an example of what we can do to 9 magnify that work. 10 Four days after the regrettable 11 events of 9/11, WHYY partnered with the 12 Mann Center for the Performing Arts and 13 the Philadelphia Orchestra and presented 14 the first non-commercial respite to our 15 production to the nation to convene 16 communities both here in Philadelphia and 17 through every other major market around 18 the United States in ways that we can 19 find comfort from each other during times 20 of tragedy, and that, of course, in a 21 very peculiar but important way brings 22 hometown pride to Philadelphia through 23 that kind of partnership. 24 With the Opera Company of 25 Philadelphia, we had the privilege of 198 10/17/06 - FINANCE - BILL 051089, ETC. bringing the great opera singer Denyce Graves into a partnership with the great Philadelphian, Patti LaBelle, to showcase not just art song, not just opera but hip hop and a cappella music. We matched that up in a partnership with the School District of Philadelphia to an eight-week music education curriculum online, which virtually every music student in this district has to this day been able to take advantage of. And, finally, we see our role as broadcasters, a public broadcaster, to help educate the nearly two million people every week that tune into our cultural arts services about the wisdom of each of these art forms. When we partner, for example, with the Mural Arts Program, we have the opportunity to help people understand how creative arts can find beauty in the most desolate and challenging aspects of our community. So while on one hand I'm not here to petition you to secure dollars 199 10/17/06 - FINANCE - BILL 051089, ETC. for WHYY, I am hopeful that in the course of your work and the Administration's consideration of an appeal from WHYY to this effort, that those dollars will be placed back in the hands of dozens and dozens of cultural arts partners who can take advantage of that opportunity to reach more audience.
Thank you. You were a great Commissioner here years ago and you're doing a fantastic job there. Thank you for your creative visionary leadership at WHYY.
Well, thank you. This has always been a place where I found great friends and great comfort. Thanks for having me again.
Thank you. All right, Madam Please Touch, 200 10/17/06 - FINANCE - BILL 051089, ETC. Nancy Kolb. As long as you live, when people look at you, they won't even see you. They always see the Please Touch Museum. So for good or for bad, every time we look at -- I don't care if I saw you in the middle of Europe.
Hopefully a group of people younger than me. I'm Nancy Kolb, for the record, those that don't know, President and CEO of Please Touch Museum, who since 1997 has been trying to find a new home, as Councilman DiCicco knows. We, by the way, bring you greetings from the children and families of Please Touch Museum. Every time we come here, we have to do something. And I'd also like to say for the record that the idea for the Zoo to bring a live animal came from Please Touch Museum.
I will tell you, my next-door neighbor says her son is too big. He just turned five October the 11th. 201 10/17/06 - FINANCE - BILL 051089, ETC.
It's his favorite place. He calls it his museum. He owns it. Just turned five. That's his favorite place.
And indeed they do. I really would like to thank you for, first of all, your incredible patience to sit here this long. I'm always amazed at the patience that it takes to be an elected public official. And, number two, for the opportunity to present to you a case for the Cultural and Commercial Corridor bill based on a single institution. Please Touch Museum, as many of you know, will be moving, and I believe our opening date -- and this is for the record -- will be on October 2, 2008. Thank you, the good Lord. We are occupying Memorial Hall, which is a City-owned building, which has had a variety of uses over its career. 202 10/17/06 - FINANCE - BILL 051089, ETC. 7 million people visited Philadelphia in a six-month period. We don't think our economic impact is going to be quite that big, but we think we will have a significant economic impact. Our relocation to Memorial Hall has been the stimulation for the creation of the Centennial District and for getting the Zoo, the Mann Music Center or the Mann Center for the Performing Arts, and the neighborhood sitting down around the same table and talking about ways to make West Philadelphia, that part north of the railroad tracks, better. I would like to point out the condition of Memorial Hall is probably a good supporting documentation for what Councilwoman Tasco was talking about, which is the underinvestment of the City of Philadelphia into its infrastructure. 203 10/17/06 - FINANCE - BILL 051089, ETC. This is an amazing building. It is a National Historic Landmark. It didn't quite make the endangered list, but it was close. And we have recently completed the demolition work to get out the swimming pool that was there, the basketball courts, the boxing ring, the locker rooms, the bathrooms that supported those functions. The Accident Investigation Division of the Philadelphia Police Department is no 13 longer there. And I would love to have you come and see it now before we start putting it back together again. It's quite an amazing, wonderful building. Since we announced that we were moving to Memorial Hall, we have met several times. We did a planning study on the Centennial District, and recently the heads of the neighborhood organizations and institutions in the neighborhoods have been meeting together to talk about signage programs, what does it mean for the Centennial District, what 204 10/17/06 - FINANCE - BILL 051089, ETC. kind of an operating structure do we need, and the Park itself is very encouraged, I think, by the amount of energy that is suddenly developing around this part of Fairmount Park. It's one of the things that I find particularly bizarre about our moving to Memorial Hall is, it opened its doors to the public for the first time in 1876 and we opened our doors for the first time in 1976. It's kind of like one of those twilight zone experiences when you finally realize that. We're celebrating our 30th birthday this year. We don't celebrate anniversaries, because children can't relate to them. We've had 30 years of providing high-quality programs for children and families in the region, and also about 20 percent of our attendance is tourism. We think by partnering with the Zoo, we really are going to create a family destination for the City that will get the people, the families who come to 205 10/17/06 - FINANCE - BILL 051089, ETC. see the Bell and the other attractions down in the historic zone, to stay longer, and we think we have an economic impact as well. We are deeply committed to working within the Parkside community, bringing our nationally recognized programs for children and families and making life better for the people who live there, including job training programs and hiring them. The importance of Philadelphia having an exceptional children's museum cannot be understated.
In a climate that you all are painfully aware of of increasing violence against children, Please Touch Museum is and has been for 30 years a respite for children and families of all economic levels to play and have fun together as a family. We have never claimed to have all the solutions to the problems facing families in Philadelphia, but through our Community Partners Program, we have for 206 10/17/06 - FINANCE - BILL 051089, ETC. more than years brought our knowledge of early childhood education and the value of play to neighborhoods and families throughout the City. An October 2006 -- couldn't be much more timely -- report from the American Academy of Pediatrics states, and I quote, "Play is essential to development, as it contributes to the cognitive, physical, social and emotional well-being of children and youth. " For more than 30 years, play has been our core business. We have left little goody bags -- you wouldn't expect us to come without something -- in your offices and in the offices of the rest of City Council. In it is a CD that is a virtual tour of the new Museum. I really hope that you'll use it as your screen saver on your computer. Failing that, I'd love for you to all make sure that you show it 207 10/17/06 - FINANCE - BILL 051089, ETC. to anybody that is willing to sit down and listen. It only takes five minutes. And it really does begin to give you a vision as to what this building is going to look like. An investment in Please Touch Museum is an investment in the future of our children. It's that simple. It's hard to imagine any investment more worthwhile to make. Thank you for your attention and your patience.
Thank you very much. Thanks for our gift bags as well. Any questions? (No response.)
Good afternoon, Chairman Blackwell and esteemed members of City Council. My name is Peggy Amsterdam and I'm the President of the Greater Philadelphia Cultural Alliance, a 208 10/17/06 - FINANCE - BILL 051089, ETC. membership organization representing over 330 arts and cultural institutions in the region. I am here to testify on and endorse the City's plan to offer $65 million of capital support for cultural institutions as part of the issuance of a $150 million bond, Bill No. 060692. And I'm the lucky person that gets to work with all of these organizations, and some of the stories that you're hearing today, just some of them, are some of the stories that I hear every day, and the 14 or so members that we have here are just 15 some of our 330 organizations that make 16 up the cultural community of the region. 17 It's really heartening that the 18 City government is recognizing that the 19 arts and culture are important to our 20 City and require an infusion of public funds. The type of capital investment that is proposed can make a big difference to our signature organizations and help them attract additional money. We're very proud that we have some of the 209 10/17/06 - FINANCE - BILL 051089, ETC. oldest and most well-known cultural organizations in the country, but they urgently need infrastructure support. Along with making a big difference to the organizations, this fund can make a big difference to their constituencies. Businesses, convention planners, tourists, students and residents rely on those institutions to add vibrancy to the City. Many have relocated to Philadelphia, sponsored programming, donated works to, volunteered for and spent time visiting those institutions as a means of sustaining and enjoying what makes our City unique. Nevertheless, an investment in the physical improvements of a few cultural organizations only accounts for part of Philadelphia's non-profit arts and culture picture. So while we welcome this proposal, the Cultural Alliance would like to point out that there are substantial amount of additional needs. 210 10/17/06 - FINANCE - BILL 051089, ETC. The proposed program is a mechanism to improve and enhance the cultural corridors only, not to sustain them. This distinction is an important one. Sixty-five million dollars is a considerable investment in arts and culture, but it cannot keep the doors open with a variety of quality programs and it cannot replace the general operating support needed to help organizations function. The Philadelphia Cultural Fund provides general operating support for over 230 cultural groups. These groups include a few that will qualify for funding from the proposed bond issuance as well as some that will not. The Cultural Fund dollars, however, afford all of those groups the opportunity to sustain their new and ongoing projects, making sure that the diverse offerings that make Philadelphia so rich will continue to exist. Seven years ago, the transition 211 10/17/06 - FINANCE - BILL 051089, ETC. team for the new Administration recognized the inadequate contribution made by the City through the Cultural Fund to the many non-profit organizations for general operating support. 1 million. This year, Portfolio, a recent study of 218 organizations in the region, points out the low percentage of contributions from local government in a region with high public participation and generous foundations. Thereby, illustrating that the cultural sector is receiving a high level of support from non-government sources, and yet 47 percent of the organizations that participated in the report are running at a deficit. The transition team report and the new study, Portfolio, both agree that the level of pubic funding is too low for a city of our size and stature. To that 212 10/17/06 - FINANCE - BILL 051089, ETC.
end, we will continue to advocate for a $5 million Cultural Fund and caution that money appropriated for the repayment of the debt service on the bond issue not prevent the Cultural Fund's growth. In issuing the bond, the Cultural Alliance encourages you to provide specific, quantifiable selection criteria and as much detailed information as possible so that organizations will be able to understand whether or not they qualify. We also encourage a transparent selection process that includes a broad section of citizens with a deep knowledge of non-profit arts and cultural management to advise and determine grant awards. Again, congratulations on offering the Cultural and Commercial Corridors Program as a means to recognize the significant role that arts and culture plays in our city. And I want to thank Councilwoman Blondell Reynolds Brown for 213 10/17/06 - FINANCE - BILL 051089, ETC. mentioning the Portfolio. I hope you've all read it. You all have a copy in your office. It's been quoted about six times already, and I'm sure you're going to hear more about it. Thank you for this opportunity and for your consideration.
Thank you very much. West Philadelphia Cultural Alliance. Also, Jane Pepper, President of the Horticultural Society, and the Philadelphia Theatre Company. After the Theatre Company, we'll have these Mural Arts Advocates. Thank you. Please identify yourself for the record and begin your testimony.
Hi. My name is Gayle Isa. I'm Executive Director of the Asian Arts Initiative here in Philadelphia. And I'd also like to take a moment just to acknowledge some of the youth from the Big Picture Program that we do in 214 10/17/06 - FINANCE - BILL 051089, ETC. partnership with the City of Philadelphia's Mural Arts Program, who sludged through the rain to, along with me, show support for this bond issue. Thank you. (Applause.)
On behalf of both the Asian Arts Initiative and also the Gilbert Arts Project, which some of you are familiar with, I'm pleased to have this opportunity to testify before City Council in support of this bond issue that will provide much-needed critical capital dollars to Philadelphia's arts and cultural community. I join everyone else who said thank you for your patience in hearing all of our testimony, and also I'm glad that even as we've heard from some of the larger institutions and also heard sort of Peggy's testimony on behalf of the larger cultural community, that there's 215 10/17/06 - FINANCE - BILL 051089, ETC. also an opportunity for this bond to support small and emerging organizations and projects like ours as well. As you may know, the Asian Arts Initiative is a community arts center that sees the arts as an important means of reflecting Asian-American community experience and building the Asian-American community's voice in Philadelphia. We offer after-school workshops for youth to engage in writing and theatre, video making, visual arts and mural making. We sponsor a lively performance season, including a popular open mike series hosted by Rodney Camarce, who is also here, as well as presentations of diverse artists doing spoken word, dance, performance art, film and theatre. We have a gallery program that highlights a combination of youth and professional artists' work. Currently, we're located near Chinatown in Center City Philadelphia and have worked with local residents in the 216 10/17/06 - FINANCE - BILL 051089, ETC. Chinatown community and business owners on projects, including the Chinatown Live stories video documentary in collaboration with Termite TV, an oral history project that resulted in our publication of Chinatown Lives, copies of which we distributed the last time we were here testifying on behalf of the Philadelphia Cultural Fund. But if you would like a copy, I do have an extra one here with me. Also, last year, we sponsored an exhibition, Chinatown Influx, that was seen by over 120,000 people, visitors and residents in Chinatown. The Asian Arts Initiative has taken a lead role in developing the Gilbert Arts Project, which is a new shared arts facility that will incorporate individual artists studios and organizational office and program space, including room for workshops and meetings, gallery and exhibition areas and a black box theatre. 217 10/17/06 - FINANCE - BILL 051089, ETC. In addition to being an innovative model of collaboration within the cultural community, the facility is intended to offer a replacement home for the Asian Arts Initiative and some of the other arts organizations and individual artists who are being displaced from the Gilbert building by the Convention Center expansion. The concept of the Gilbert Arts Project builds upon the successful programming and visibility that the Gilbert building occupants have already been able to achieve with the critical mass of arts organizations and artists who are in proximity to each other. The new shared facility will be anchored in Philadelphia's Chinatown, ensuring that our combined activities can continue to contribute to the social and civic engagement of our constituents and to the economic and community development of Chinatown as an emerging corridor. For us, the City bond issue 218 10/17/06 - FINANCE - BILL 051089, ETC. offers a timely opportunity for the City to provide support before our current home in the Gilbert building is demolished. Last Friday, some tenants in the Gilbert building received official notices saying that we were required to vacate the Gilbert building by January 11th of 2007. We're hoping that the Pennsylvania Convention Center authority will show more flexibility than that before asking us to move out, and we're also hoping that by later in spring 2007, that we will have been able to secure and renovate a site for the Gilbert Arts Project.
A key goal of the project will be to offer permanently affordable home for occupants so that we will not move from the path of the Convention Center expansion just to find ourselves displaced again in a few years by increasing market-rate rents. To this end, the Asian Arts Initiative has been negotiating a long-term lease with option 219 10/17/06 - FINANCE - BILL 051089, ETC. to purchase agreement for a site that we are pursuing in Chinatown. Our total costs for acquisition and renovation are estimated between $5 and million. 6 We have received major grants for this shared arts facility project from the William Penn Foundation and also State Representative Dwight Evans. We have also been able to secure a mark in the state capital budget which, if released in full, would contribute up to $2 million toward our project. We are hopeful that the City bond would be able to offer an additional $2 million to our project, which would enable us to leverage the state capital funds and ensure that the Gilbert Arts Project can become a permanent resource for the Chinatown community, the Asian-American arts communities and the broader arts community in the City of Philadelphia. So thank you again for your patience in hearing all of our testimonies and also for the support that 220 10/17/06 - FINANCE - BILL 051089, ETC. I hope that you will give in passing this City bond issue. Thank you.
Yes. And good afternoon, Chairperson, Councilmembers. And on behalf of our 27 Board members of the West Philadelphia Cultural Alliance, we thank you, Councilwoman Jannie Blackwell, for your consistent process of informing your constituents about cultural, economic and educational opportunities to improve the quality of life in Philadelphia.
I would also like to take the opportunity to thank Mayor Street for introducing this bond ordinance and City Council for its consideration. It's definitely a vote of confidence with Philadelphians City-wide to experience City officials responding 221 10/17/06 - FINANCE - BILL 051089, ETC. to the importance of creating arts opportunities to improve the social and economic health of our communities. I would also like to say a disclaimer. Most of our volunteers and members left because of other time constraints, and they were ambitious in trying to get us moved up. So I apologize for their ambitiousness, but you see their love for us in wanting to hear our testimony. I would also like to acknowledge my Board President, Mr. Walter Morrell, and Chair of our facilities, Andrew Zitzner, and other members of the Paul Robeson House and West Philadelphia Cultural Alliance. Please stand up and be acknowledged.
We love you. Not to worry. Thank you for being here. Thank you for all you do, Fran, not only for the Paul Robeson House, for the West Philadelphia Cultural 222 10/17/06 - FINANCE - BILL 051089, ETC. Alliance, for Avenue of the Arts West and all of the cultural arts things we try to do and all that you do.
Thank you. Thank you, Councilwoman. The impact of the arts, as major art providers, we enthusiastically and wholeheartedly support the City's goals to seriously address the capital needs of Philadelphia's over 300 now non-profit organizations from the new report from GPCA by leveraging private and public funds to support these efforts. And from A to Z, from Asian arts initiatives to the Zoo, including, but not inclusive of, others in the mix, Art Sanctuary, African-American Museum and most of you have heard Taller Puertoricano, Point Breeze and Philadanco, and most of them in West Philadelphia, Councilwoman Blackwell. And we're just so proud of those Philadelphia treasures in West 223 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia, including the Mann Performing Arts Center and most recently Please Touch Museum, and even Calvary Center and Community located in Calvary Methodist Church has some of the oldest Tiffany windows in the country. So those are some little tidbits that we don't usually know about, including the Zoo that started in 1859. So we've been providing the arts in West Philadelphia for a long time. An investment in capital and infrastructure projects will have a significant impact on providing the best in culturally rich, socially empowered and educationally focused programs, all of which are facilitated by accredited professionals, educators and master artists. For decades, art providers have leveraged arts, educational and cultural resources to improve the socioeconomic quality of life that make Philadelphia truly a world-class city. Arts 224 10/17/06 - FINANCE - BILL 051089, ETC. 5 million in City wage tax, and create a two to one ratio of spending to investment. The proposed bond ordinance 8 will certainly significantly increase the current commitment of spending now only cents of every $100 on arts and 11 culture. 12 Fifty seven percent of young college graduates living in Philadelphia saw arts and cultural events as a huge strength compared to other cities, and residents rank arts and culture opportunities among Philadelphia's top three strengths. Sixty four percent of business leaders rate cultural attractions as a strength of the region. It is good to know that Philadelphia's City officials are seriously interested in building community and is in line with other cities, older cities, as addressed in 225 10/17/06 - FINANCE - BILL 051089, ETC. your tool used in this process, Shared Prosperity, Stronger Regions: An Agenda for Rebuilding America's Older Core Cities, to include meaningful community participation and leadership in change efforts, change efforts that reflect the wisdom, the voice and experience of local communities and are authentic and self-sustaining. The impact this bill will have on the Paul Robeson House, because Paul Robeson House is supported and managed by the West Philadelphia Cultural Alliance, a non-profit organization that's dedicated to the premise that arts participation can improve the economic education and overall quality of life for community residents and the City at large. Since 1984, the WPCA has effectively worked to create arts opportunities for over 160,000 families, increased the visibility of over 200 West Philadelphia artists and across-the-country artists and 80 226 10/17/06 - FINANCE - BILL 051089, ETC. cultural institutions, many who were here today. A major milestone in West Philadelphia Cultural Alliance's development came during the 1994 tenth anniversary when the organization acquired 4951 Walnut Street, the last residence of world-renowned performing artist, activist, scholar, athlete and humanitarian, Paul Robeson, who lived in the house with his sister from 1966 to his death in 1976. Since then, the life and legacy of Mr. Robeson has helped shape WPCA's programming, which strives to enhance the spirit of the individual and the community through the arts.
The Robeson House has since become a historic site of national prominence with over 300,000 tourists visiting the House from all over the world. Tours are scheduled daily, and we invite you all to experience firsthand and witness the diligence and dedication that the WPCA staff, volunteers and Board 227 10/17/06 - FINANCE - BILL 051089, ETC. bring to their efforts to save the Paul Robeson House and, with it, the legacy of a true American hero. The WPCA is lovingly restoring and caring for the Paul Robeson House so that it will remain a testament to the renaissance man and a symbol of his enormous contributions to our nation's story, someone who was virtually erased from the history books. This project is a key African-American historic site and a tourist destination of both national and international importance. Its restoration will be a source of pride for the West Philadelphia community and a critical tool in the growth of the region's culture and economy. The Paul Robeson House is a model for property restoration and development of community assets. It has been featured in several travel publications and city tourism guides and is listed on the National Register of Historic Places and designated as a 228 10/17/06 - FINANCE - BILL 051089, ETC. historic site by the Pennsylvania Museum Commission. The Greater Philadelphia Tourism Marketing Company most recently gave us a grant of 13,000 to produce 64,000 promotional rack cards to be distributed in hotels and other tourist sites in the tristate area. And the information that's been out there, we cannot even supply the demand now for people who would like to have tours. This unique site's significance was underscored when it was designated an official American treasure by the National Trust for Historic Preservation and awarded a $200,000 Federal Challenge Grant by Save America's Treasures. The House was further honored by selecting the Robeson House as one of only 12 among 1,500 Save America's Treasures sites to participate in the Restore America partnership with Home and Garden Television, and in recognition of its exceptional efforts, the site was awarded a $100,000 grant, the highest award ever 229 10/17/06 - FINANCE - BILL 051089, ETC. given by the partnership. Further, we have recently been awarded a $90,000 Keystone Preservation Grant, a $35,000 Delaware River Port Authority Grant and 20,000 from the Department of Community and Economic Development. In addition to ongoing development activities, major fundraising projects, a support of the capital campaign, are being planned with a grant from the Pew Charitable Trust's Independent Music Project for a Paul Robeson Memorial Concert that will kick off in June '07. A feasibility study and master plan developed by our architects, Kelly Maiello and UMNJ, recommends renovating in three phases, according to funds available, to allow WPCA to keep the building open during repairs and to facilitate fundraising efforts to support ongoing restoration. Phase will include full renovation of the first floor and the exterior. The study found 230 10/17/06 - FINANCE - BILL 051089, ETC. that although the Robeson House is structurally and cosmetically intact, there are four major areas of threat. They are deteriorated roofs and roof structure, deteriorating framing and trim, loose windows and poor archival environment. If left unchecked, the deterioration will result in damage to the structure of the house, damage to the exterior walls and porch roof, damage to the flooring and interior finishes, and damage to the collections that preserve the Paul Robeson legacy. 5 million. The goal of WPCA's Board of Directors and capital campaign supporters is to restore Paul Robeson House as a first-class house museum in the heart of West Philadelphia, offering cultural programming to the 231 10/17/06 - FINANCE - BILL 051089, ETC. community and providing informative tours to national and international visitors.
In this regard, we serve as a model for other conservators of historic houses who seek to develop attractive programming that will keep visitors coming and garner valuable support from area residents. On a larger scale, the development of the Paul Robeson House has added to the cultural assets of Philadelphia as a whole. Our proposed outcomes for successful completion of the project include, one, a more secure building and an enhanced and more welcoming exterior for Paul Robeson House. This is in keeping with our overall goals for creating a first-class house museum and, in the heart of West Philadelphia, establishing Paul Robeson House as a treasure for regional, national and international audiences. We thank Chairperson Jannie Blackwell and Councilmembers for your 232 10/17/06 - FINANCE - BILL 051089, ETC. consideration of support for the Cultural Corridor Bond that will assist in honoring the past with a marvelous gift to the future. We thank you.
Thank you very much, Ms. Aulston. Thank you. Any questions? (No response.)
Good afternoon, Chairperson Blackwell and members of City Council. I'm delighted to be here, and in deference to your patience, you have my written testimony. I'm just going to skip through some of the greening parts, which is maybe something a little different that other people haven't covered.
At the Society, we believe this type of investment is 233 10/17/06 - FINANCE - BILL 051089, ETC. critical to the future life and vitality of the City's neighborhoods, and your support of this project, with quality landscapes, is very consistent with the Horticultural Society's goal to make us the greenest city in the nation.
For the past several years and with your support through the City of Philadelphia's Neighborhood Transformation Initiative, we have worked to remove blight and bring quality open space to City neighborhoods, with significant emphasis on commercial and cultural corridors. You've seen some of the examples along Lancaster Avenue, the American Street Corridor, Baltimore Avenue and Ogontz Avenue, Girard Avenue, Ridge Avenue, and I think it's touched every Councilmanic District. Our work also extends into Center City, where we've been working in collaboration with the Center City District to plant and maintain 2,000 234 10/17/06 - FINANCE - BILL 051089, ETC. trees. Most recently, we've partnered with the Fairmount Park Commission and the Pew Charitable Trust to renew the landscape around Swann Fountain at Logan Circle, and the trees will return on November 6th, the beautiful Paulownias. And as you may have seen, there are additional major landscaping improvements already underway on the Benjamin Franklin Parkway. We also think that leveraging investment is a critical component of the Cultural and Commercial Corridors Program. As a not-for-profit partner, PHS has been fortunate to secure private funding from the Pew Charitable Trust, from the William Penn Foundation, corporations and our members to match City investments in quality open space. This allows us to expand the scope of work and maximize the overall impact. Research from across the country shows that green is good for business. Greening is also important to 235 10/17/06 - FINANCE - BILL 051089, ETC. the overall economic health of neighborhoods. And next week we will bring out a study called Public Investment Strategies: How They Matter for Neighborhoods in Philadelphia, and I believe there's a lot of information from this that will translate to the cultural corridor conversation. It shows that tree planting and other landscape enhancements increase local property values by 28 percent. This summer, the City of Philadelphia was featured in Edens Lost and Found, a PBS documentary, and you know the work that appeared there, NTI, Fairmount Park, the Philadelphia Water Department, the Mural Arts Program and PHS's Philadelphia Green Program. This week we had a wonderful symposium called the Growing Greener Cities in which we had 300 representatives from around the country and indeed from the UK who were there to talk about greening issues in cities, and Philadelphia clearly is at 236 10/17/06 - FINANCE - BILL 051089, ETC. the forefront of these developments and we plan to stay that way, especially with your help. In conclusion, at the Horticultural Society, we believe that investing in cultural and commercial corridors as proposed in this bond issue will not only improve the visual appeal of these areas and the quality of life of the residents living nearby, but it will also result in significant economic returns to the City. Thank you for the opportunity to present testimony, and as with everybody else, I really appreciate your patience in listening to us all. Thank you.
Thank you, and thank you for the excellent job that the Horticultural Society does. Thank you all. Thank you. I believe we also called on the Philadelphia Theatre Company and we called on Mural Arts Advocates. There 237 10/17/06 - FINANCE - BILL 051089, ETC. are several of you, so if you're here from Mural Arts, after the Theatre Company now is your time, the Mural Arts Advocates. So I will assume you'll speak after the Theatre Company. Thank you very much. Thank you for your patience. Please identify yourself for the record and begin your testimony. Thank you again for your patience.
Thank you, Councilwoman Blackwell, and good afternoon to you and the members of Council. I am Gerry Riesenbach, President of the Philadelphia Theatre Company, and to my right is Sara Garonzik, our long-time Producing Artistic Director.
And I am here to testify in favor of the proposed Cultural and Commercial Corridor Bond 238 10/17/06 - FINANCE - BILL 051089, ETC. issue. First, I would like to make a personal comment, that I wanted to thank the members of this Committee for participating all afternoon in this very long hearing and hanging out throughout all of it. It shows your interest in and respect to the Philadelphia cultural community, and I think we all appreciate it. We ought to let you know that.
I am delighted that Mayor Street recognizes the importance of investing in the important capital projects and thoroughfares that in turn help make Philadelphia one of the greatest cultural institutions in the country. The Philadelphia Theatre Company, now in its 31st season, is proud to be known as a risk taker, an innovator and an educator. Since our beginning, it has been our mission to put the spotlight on both the established and emerging American playwright and through our 239 10/17/06 - FINANCE - BILL 051089, ETC. productions have emphasized the rich traditions, unique perspective and cultural diversity of the American experience. Ever mindful of our responsibility to provide the necessary forum and nurturing environment for the fresh creative voices that will keep American theatre vital, we have introduced well over 100 award-winning premiers to audiences in Philadelphia and beyond and have made Philadelphia an important center for the development of new plays. This season alone, our two world premiers from last season, Adrift in Macao and Some Men, will be having their New York City off-Broadway debuts. Each year over 40,000 adults and students from the five counties come through our doors to see the exciting new American plays and musicals that we produce, but this is only a portion of what we do. The Philadelphia Theatre Company is much more than entertainment, and we are proud to offer 240 10/17/06 - FINANCE - BILL 051089, ETC. curriculum-based education enrichment programs to more than 5,000 middle and high school students each year in their classrooms as well as in our theatre, working with some of the finest teaching artists in the region. We believe that theatre can be used to assist in teaching language, communication, culture and history, and our programs, which are designed in conjunction with the Philadelphia school system, do just that. Through our Community Audience Program, developed with the Managing Director's Office, we provide hundreds of tickets to community organizations throughout the City who are our partners in this program. As many of you know, the Philadelphia Theatre Company is in the midst of constructing one of the most dynamic and original theatre buildings that our City has seen in a long while, at the corner of Broad and Lombard Streets on the Avenue of the Arts. Our 241 10/17/06 - FINANCE - BILL 051089, ETC. new facility, to be called the Suzanne Roberts Theatre, is part of a larger project being developed by Carl Dranoff, the Symphony House, condominiums, a parking garage and a retail space. This innovative partnership is unique not only to the City but we believe in the country as well and kicks off Phase 2 of the planned expansion of the Avenue of the Arts down the southern corridor of Broad Street. Our building, designed by the local firm of KieranTimberlake, will consist of a 365-seat main stage and a smaller flexible theatre. The unique design and high technology will look like no other performing art space, and our all-glass facade encompasses a stretch of 140 feet on Broad Street, even longer than the facade of the Kimmel Center. Our new theatre will instantly create a thrilling new presence day and night that will light up the Avenue and become an instant home not only to the 242 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia Theatre Company but to other community partners, such as the Koresh Dance Company, the Philadelphia Live Arts Festival and Fringe, Amarillos Theatre, Enchantment Theatre, Theatre Arts for Youth, Philadelphia Young Playwrights, the University of the Arts, Temple University and many more. It will be the most accessible new building in our region, a welcoming space to audiences or artists with physical disabilities. The impact on the City will be significant. As stated in GPCA's study, Portfolio, theatres employ the single largest number of artists in the cultural community, providing work for the greatest number of part-time artists.
They are the second largest employer of artists in terms of total payroll for artists and the number of full-time positions. Our new theatre will instantly create 46 new full-time positions in its first year alone. The current construction project now is 243 10/17/06 - FINANCE - BILL 051089, ETC. creating an additional 167 jobs. If you walk or drive past Broad and Lombard, you will see that our new theatre is completely framed out in steel, concrete is being poured, and the exterior walls of the entire building will be completed by the end of this year. Throughout the winter, the interior will be finished, and the Philadelphia Theatre Company will take occupancy in June of 2007 and begin producing in October, one year from this month. In our new home, twice as many people will come through our doors. Sixty five thousand audience members and 10,000 students will be serviced by our educational program and our newly created summer camp. Thus far, we are on time and on budget. This is a project that is poised for success and completion and whose existence will change the face of the Avenue of the Arts, as well as the City overall. 244 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia Theatre Company's Suzanne Roberts Theatre, located in one of the most important cultural corridors in our region, in our state and in our country, should be front and center as the beneficiary of this bond issue. Mayor Street has publicly proclaimed numerous times that he wholeheartedly supports this project. In closing, I would like to say that a number of years ago this Council, in its wisdom, adopted legislation to create and fund the investment in the Avenue of the Arts. It has been an enormous success and a boom to the City's economy. Philadelphia Theatre Company is a part of a $100 million investment of private funds on the Avenue of the Arts, which is a direct result of the City's investment of its own. We believe that this Council's passage of the Cultural and Commercial Bond issue will have the same impact on private investment in the various corridors of the cultural 245 10/17/06 - FINANCE - BILL 051089, ETC. activity which this ordinance supports. We truly hope that you will all make this essential investment in our City, in our project and in the other worthy projects that the bond issue will benefit. I thank you for the opportunity to speak to you today.
Thank you very much. To the Philadelphia Theatre Company, I need to commend you on the strategic partnership that you engaged in with Dranoff, because I'm of the firm belief that where you have strategic partnerships with arts and cultural institutions and others, that the future is just so insured, if you will. So hats off and kudos to the visionary leadership on all parts to make that real. We do really look forward to that opening June 246 10/17/06 - FINANCE - BILL 051089, ETC. '07. Congratulations.
Thank you for your kind words and everything you personally do for the arts and cultural community.
We have some newsletters about our construction project we would love to make available.
Thank you. The Sergeant-At-Arms will get them. Thank you very much.
Thank you. Thank you for your patience. Please identify yourself for the record and begin your testimony.
Chairperson Blackwell, my name is Dave Langfitt, other Councilpersons. I am the Chairman of the Mural Arts Advocates, which is the 247 10/17/06 - FINANCE - BILL 051089, ETC. 501(c)(3) organization that works with and support the Mural Arts Program. We thank you for allowing us to speak today and being so patient with everybody. My colleague, Jane Golden, who is the Executive Director of the Mural Arts Program, could not be here today because she is out of town. She has asked me to address City Council in her place. We enthusiastically support the proposed arts and culture bond, and certainly the purpose of the bond is precisely the purpose of the Mural Arts Program. We are all about neighborhood transformation, and we regularly work with and leverage private and government funds to make sure that that happens. We, in fact, have been referenced here today by other people who have testified. We partnership with just about everyone. We partnership with Please Touch, with WHYY, the Zoo, innumerable homeowners throughout the City, City blocks, 248 10/17/06 - FINANCE - BILL 051089, ETC. neighborhoods and communities, with the Department of Human Services, the Philadelphia School District, and we are well known. Every single person in City Council is welcome on a tour of any part of the City to show our work, as well as what I will soon address, which is the Mural Arts Center, which is being constructed at 17th and Mt. Vernon. Should this bond go through, we would certainly apply and will apply for funding to complete this Mural Arts Center. 1 million in private and government funds for an expansion of the current headquarters at 17th and Mt. Vernon, which is just north of Spring Garden Street. It will become the Mural Arts Center. And right now there is a funding gap of $500,000. Nonetheless, regardless of the gap, the Center will open in February of 2007. Obviously an arts and culture bond could close or eliminate all or part of that gap. 249 10/17/06 - FINANCE - BILL 051089, ETC. The result of the Mural Arts Center will be literally a doubling of the space of the program's headquarters. The size of the space will allow the program to be an effective anchor for the neighborhood and the children and teens the program serves. The expanded space will provide more studio space, which in turn means more effective and broader programming that will serve more children. As part of the Mural Arts Center, the program will have a state-of-the-art laboratory, which will involve state-of-the-art computer programs and computers and will provide far more rigorous programs than we can provide now. The program will also have enhanced exhibition space to showcase our young artists' work, as well as the work of the many, many professional painters who are engaged with our program. We embarked on the capital project two years ago to expand the 250 10/17/06 - FINANCE - BILL 051089, ETC. program, and, of course, the headquarters at 17th and Mt. Vernon was the home and studio of Philadelphia's greatest painter, Thomas Eakins. The City of Philadelphia generously provided the Thomas Eakins House for the program's headquarters many, many years ago and then also provided the adjacent house next door, and both of these are part of the Thomas Eakins estate. Both houses date from 1854. Essentially except for his time in Europe, Mr. Eakins spent his entire life painting and working in those two houses. The foundation gratefully transferred the ownership of the homes to the City of Philadelphia, and then in turn the City of Philadelphia has honored the foundation's provision to make sure those both houses should be used for an art school, a community center and a museum. Both homes are on the Philadelphia Register of Historic Places. We have occupied 1729 Mt. 251 10/17/06 - FINANCE - BILL 051089, ETC. Vernon Street since 2001, and those are our administrative headquarters.
That is the home base for everything we do that outreaches to every community in this City. In 2007 in February, we will be able to expand that center and double it. The additional building provides approximately 1,000 square feet per floor, so the new Mural Arts Center will add 4,000 square feet to MAP's existing space, doubling the space available for youth and community members, doubling the number of youth in the neighborhood who will have access to the excellent studio spaces and doubling the number of community members who can attend public events. The Mural Arts Center is already a landmark on Spring Garden Street, and by doubling it, it will become an anchor. Now, we understand that the bond has two parts, one for major corridors and one for arts and culture. We believe that the Mural Arts Program 252 10/17/06 - FINANCE - BILL 051089, ETC. has a significant impact on both. The cultural and artistic aspects of the program are obvious to most anybody who has lived in the City. However, the program is also a partner in redevelopment. We reach out to all communities and serve youth in communities throughout Philadelphia County. There is not a neighborhood we do not reach. Every day the program explores the nexus between wonderful public art and economic and community development that often follows. For many years, the program has reached out into communities and neighborhoods and has had a direct impact on the strength of the City's commercial corridors. One example is the commercial corridor of Girard Avenue starting at 30th Street and running to the Delaware River. We have been instrumental in the steady development of murals and sculpture in that corridor. Further, the program has grown 253 10/17/06 - FINANCE - BILL 051089, ETC. substantially in the past four years. It's essentially doubled in size, and the result is that we serve approximately 3,000 youth throughout Philadelphia County each year, employ approximately 350 artists per year and provide mural tours for 10,000 visitors each year. We work extensively with the Department of Human Services and the Philadelphia School District. In sum, this bond is something that we greatly and enthusiastically support, and we thank you for your time today.
Thank you very much. We knew Jane had to be out of town when she wasn't here, and it's one of the best stories of our City. We know that. Thank you.
Thank you very much. Sitting next to me is Renee Zuritsky, who is also a Board member, and she has some prepared remarks as well. 254 10/17/06 - FINANCE - BILL 051089, ETC.
My name is Renee Zuritsky and I am speaking for the Bill 6 060692. Madam Chairman, Councilwomen and Councilmen, I am an advocate of the Mural Arts Program literally, figuratively and emotionally. I am on the Board of Directors of the Mural Arts Program and I am also Chairperson of the Friends of the Mural Arts Program. I am not a professional person. I am a homemaker. My husband is a Philadelphia businessman. His name is Joe Zuritsky. We wholeheartedly support and endorse the Mural Arts Program. I would like to mention that this month, October, is Mural Arts Month in Philadelphia. I wish everyone a happy and enjoyable month of murals. I was born and raised in Philadelphia and I am here to testify that I believe the Mural Arts Program is 255 10/17/06 - FINANCE - BILL 051089, ETC. the best thing that ever happened to this City. Philadelphia is fast becoming known as the "City of Murals" nationally. What better distinction or image could a city have than to be known as the "City of Murals"? To be the city where public art flourishes and is valued, to be the city where thousands of disadvantaged children and youth are given the opportunity to learn about art and create beauty in their own communities is to be the city where humanity is preserved. We have an outstanding hero living amongst us. Her name is Jane Golden. I call her the "miracle worker," and I have often referred to her as the "woman with the golden heart." We must cherish her tireless dedication, her vision for an ever-improving Philadelphia, a city where its citizens reap the benefits of being surrounded by art and beauty. You can't really measure the benefits of art and beauty for a city and its populus. Suffice it to say, the 256 10/17/06 - FINANCE - BILL 051089, ETC. benefits are huge and all pervasive. This city can be a shining star in the country if we help Jane Golden turn her vision into reality. I urge you to embrace the Mural Arts Program and support it wholeheartedly. This is a gem of a program and a win-win for Philadelphia. Thank you for your attention.
Thank you both very much. Thank you to all the mural arts advocates, those who are here and those who had to leave. Eastern State Penitentiary Historic Site; PEC; New Kensington CDC; Mark Edwards, Program Director of LISC; Farah Jimenez, Mt. Airy USA. If any of you are here. SCRUB. And I have Rick Sauer, Philadelphia Association of CDCs; Hispanic Association of Contractors and Enterprises; and Maryann Cummings, Community Educational Resource Center. If any of you who are here, 257 10/17/06 - FINANCE - BILL 051089, ETC. anyone whose name I have called, come forward. That should be everyone who is here. If not, I'll go through my list again, or if there's anyone I didn't call, just come forward after this last group of names and you are welcome to testify. Thank you.
-- Chairwoman Blackwell and distinguished members of the Finance Committee. Thank you very much for allowing us to --
-- present this, and I wholeheartedly endorse the Mayor and the Commerce Department for thinking of this unique way of supporting cultural institutions and investing in them. My name is Sally Elk. I'm the Executive Director at Eastern State Penitentiary 258 10/17/06 - FINANCE - BILL 051089, ETC. Historic Site located on Fairmount Avenue just a few blocks from the Benjamin Franklin Parkway. Built in 1829 by the Commonwealth to embody the Pennsylvania system of prison reform, Eastern State was the most expensive building in the young United States and the most famous prison in the world. Over 300 prisons as far away as Russia, Australia, Japan and China are based on its design. Because of this impact on architecture worldwide, Eastern State was named a National Historic Landmark in 1965 and is among the nation's elite of historic sites. While this Quaker experiment failed, the prison remained open until 1971, and with no firm reuse plans, it languished for years, until 1994 when our non-profit organization formed and entered into a long-term lease with the City to preserve it and open it for public tours. Since that time, there have been wonderful accomplishments and some severe 259 10/17/06 - FINANCE - BILL 051089, ETC. disappointments. First the accomplishments. Eastern State has emerged as an extremely viable cultural attraction that contributes to the cultural industry. In tourist-rich cities like Dublin, London and San Francisco, prisons are the most popular tourist attractions. Eastern State is becoming the Alcatraz of the East. It's a truly unique site. We can offer serious dialogue on the complex, critical issues of crime and punishment, as well as pique visitors' interest with daring escape stories and notorious persons like Al Capone. We can also entertain masses of people with our wildly popular Bastille Day and our Halloween Haunted House, which is on right now. Visitors have responded. Last year we had 120,000 visitors. Ten thousand of them were school-aged children with school trips, and we offer 260 10/17/06 - FINANCE - BILL 051089, ETC. free tours to the School District of Philadelphia. We're having an percent 4 increase this year in visitation. By ten 5 years out, we expect 250,000 visitors. 6 Almost 65 percent of our 7 visitors come from outside Pennsylvania, 8 and 40 percent of them report staying in 9 a Philadelphia hotel at least one night. 10 The Big Bus reports that Eastern State is 11 the third most popular stop besides the 12 Art Museum and the Zoo. 13 Our annual six-week Halloween 14 fundraiser attracts 70,000 people to the 15 Spring Garden/Fairmount neighborhood and 16 offers them opportunities in the 17 businesses and restaurants to drop their 18 tourism dollars. In 2005, we became a Trustee of the Parkway Council Foundation and we're now recognized as a Parkway museum. But here are our disappointments. Eastern State has been deteriorating for 30 years. Half of our mission is to preserve this National 261 10/17/06 - FINANCE - BILL 051089, ETC. Historic Landmark. We do not intend to restore this massive structure. Rather, our capital plan is that of a stabilized ruin, with selective restoration, restoring only those places that we think our visitors need to see to understand its history and significance. But to preserve it, we must fix its leaking roofs. Although we've completed five major roofing projects, totalling $3 million, of which a million dollars has been supported by the City, six of the seven 1830 cellblocks suffer severe damage. Because they are not preserved, Eastern State qualifies as an endangered National Historic Landmark. After spending $650,000 to bring the site up to code, we still have no running water, and visitors must use port-o-potties. We need $9 million to complete these critical roofing projects, as well as the improvements to provide the basic 262 10/17/06 - FINANCE - BILL 051089, ETC. visitor amenities, such as restrooms, heat and air conditioning.
Unfortunately, these projects seem very dull to funders, particularly to foundations, corporations and individuals. And although our Halloween fundraiser contributes nearly $300,000 annually towards capital improvements, we cannot keep up with the building's continuous deterioration. We believe that Eastern State is one of the City's most amazing assets. Like many of the other corridors, sites and buildings testifying today, they are extremely worthy of public support. We wholeheartedly support the Cultural and Commercial Bond Initiative.
Do you have my testimony? Mark Edwards. I'm not Mark Edwards, as you might mistake me for Mark Edwards. But I apologize for Mark. He was waiting here and he had to go to 263 10/17/06 - FINANCE - BILL 051089, ETC. another meeting.
My name is Andy Toy and I'm here to testify on behalf of the proposed bond of $150 million to fund cultural and community corridors and specifically the $65 million for the ReStore Philadelphia Corridors Initiative. I am a Program Officer for the Philadelphia office of the Local Initiatives Support Corporation, or LISC. As you may know, LISC, now in its 26th year, is the largest community development support organization in the nation. Our mission is to help non-profit community development organizations, such as some of the people 264 10/17/06 - FINANCE - BILL 051089, ETC. here, transform distressed neighborhoods into healthy and sustainable communities of choice and opportunity, good places to work, do business and raise children. LISC works holistically, helping raise resources for affordable housing, community facilities, football fields, educational facilities and neighborhood commercial corridors. We know that good quality, safe nearby places to shop, eat, work and congregate are critical elements in healthy neighborhoods. In 2002, we began our Commercial Corridor Redevelopment Initiative in Philadelphia, which has invested over $2 million of support from resources, mainly from outside of the City. Since inception, the nine CDCs in the LISC initiative have helped to attract and retain 257 businesses on their corridors while creating or retaining over 900 jobs. But we believe with additional resources and better 265 10/17/06 - FINANCE - BILL 051089, ETC. coordination, we can do even more, because our market studies show our neighborhood markets have inherent strengths that have still not been capitalized upon completely. By creating better places, we are helping to keep resources within the community and even drawing in visitors and shoppers from beyond the usual neighborhood boundaries. We are seeing improvements here and in other cities where LISC works, such as Chicago, San Francisco, Indianapolis and New York. We are very pleased to see that our funding and advocacy efforts have helped to draw additional attention and resources to these very important community assets as the City and State have begun a Main Street program and now with this bond proposal. I will tell you that this commitment from the City is crucial to LISC's continued commitment to its own Commercial Corridor Initiative. Our national office and other funders 266 10/17/06 - FINANCE - BILL 051089, ETC. constantly ask how are we leveraging their and our resources to create the greatest impact. This bond will help us to make the case that we are well leveraged and that our support is making a difference, that we are partnering with the City in this work and that the arrow is pointing in the right direction. We consider the $65 million bond proposal a good investment that will pay many dividends if spent wisely. LISC's work with CDCs is a good example of how to leverage investments in places that have good leadership, capacity and inherent market strengths. LISC is also working closely right now with the City and other partners in a major City-wide study to assess what types of investments or interventions work best where, what healthy corridors should look like and ultimately how best to compete with big box and other retail outside of the City. If properly used, this study will help to 267 10/17/06 - FINANCE - BILL 051089, ETC. provide us with some guidelines that will make our investments more effective and better coordinated. Of particular concern to LISC, which funds CDC real estate development, is the proposal for a $4 million non-profit entity acquisition pool out of the bond. This early seed capital is critical in any development because, as we all know, site control is essential to any project being able to move forward. And as LISC has learned from years of experience, these funds need to move quickly to projects to prevent delays and cost overruns.
LISC has been the main entity for funding non-profit CDCs over the years, and we see this pool might give us the perfect tool for leveraging other LISC acquisition funds. LISC is also quite interested in helping the City to target its streetscape enhancements in a meaningful and cost-effective way. Our office has already led a number of discussions 268 10/17/06 - FINANCE - BILL 051089, ETC. related to the need for additional pedestrian lighting on commercial corridors. This is a major concern in neighborhoods across the City, because crime or the perception of crime could easily erase all of the gains we have made in the last few years over our corridors. Pedestrian lighting, while not a cure-all, is one important element in providing safety as well as an important design element to our neighborhood commercial corridors. And the question we need to ask ourselves is, if it's good enough for Center City, shouldn't it be good enough for our neighborhoods? In conclusion, LISC is extremely pleased and excited at the new level of commitment the City is showing towards neighborhood commercial corridors and cultural corridors, and we support this effort wholeheartedly. We look forward to working as a true partner with the City and PAID to ensure an effective 269 10/17/06 - FINANCE - BILL 051089, ETC. and thoughtful roll-out of this program. Thank you.
Thank you very much. Are there any questions? (No response.)
I also have written testimony here and have included a couple of our Frankford Avenue commercial corridor plans. I intended to say good afternoon, but at this point, good evening is appropriate. My name is Sarah Corlett and I am the Economic Development Director at New Kensington Community Development Corporation, and I'd like to thank you for the opportunity to come here today and testify in support of this bill.
New Kensington 270 10/17/06 - FINANCE - BILL 051089, ETC. Community Development Corporation services the Fishtown and Kensington neighborhoods through housing counseling, real estate projects, land use management and economic development. We are here today -- or I'm here representing NKCDC to demonstrate support for the issuance of bonds to fund ReStore Philadelphia Corridors Initiative. The economic development department is faced with the challenge of creating vibrant commercial corridors in these communities on a daily basis, and we understand the urgent needs for financial and legislative support to facilitate the revitalization of the City's neighborhoods. The bond funds would support numerous New Kensington CDC initiatives. In particular, the Frankford Avenue Arts Corridor Plan was published in 2004 after an arts cluster was identified in our service area, and this plan has been used to leverage both public and private dollars to implement the plan. In 271 10/17/06 - FINANCE - BILL 051089, ETC. particular, NKCDC has received nearly $2 million through the Hometown Streets Program, which will allow the organization to target eight blocks on Frankford Avenue for initial construction phases, and this includes streetscape improvements. Several programs have also emerged from the Frankford Avenue plan to begin the corridor revitalization. In 2005, New Kensington commissioned five local artists to create artistic bike racks that are placed strategically along Frankford Avenue. We also hold clean-ups twice a year to eliminate the trash and graffiti that accumulate on the corridor. The organization has partnered recently with businesses and artists to place various murals on building facades as a means to beautify the streetscape. New Kensington was able to allocate funds to subsidize outdoor flower planters for local businesses. And in particular, New Kensington has 272 10/17/06 - FINANCE - BILL 051089, ETC. established a Design Consultation Grant Program to provide businesses and building owners professional design assistance for both their facades and/or interior commercial spaces, with the goal to really give the building and business owners the opportunity to have their enterprise stand out visually for a nominal cost. And all of these programs have made a tremendous difference in not only how the corridor looks but also how people perceive Frankford Avenue. And small businesses now see the affordable land and building as an opportunity. Financial support will be needed to continue the momentum that New Kensington has worked so tirelessly to build in the last several years. One of the challenges that we face is combatting residential development along the corridor, and, therefore, the creation of this CDC Acquisition Pool would allow our organization to capture vacant land or important structures that can be used to 273 10/17/06 - FINANCE - BILL 051089, ETC. construct commercial space and quickly snag any opportunities as they arise. The bond money would also allow the organization to continue with streetscape improvements along other portions of Frankford Avenue, and in particular, pedestrian lighting is a tremendous concern for our residents and businesses as an effective means to discourage criminal activity. Many small businesses have expressed a need for financial assistance when conducting large-scale renovations to their property and to help cover their start-up costs. And so in conclusion, as an abridged version, this is a tremendous opportunity for Philadelphia to make funding available to those organizations that can effectively and efficiently develop a business environment that is friendly and vibrant. Thank you for your time and patience.
Thank 274 10/17/06 - FINANCE - BILL 051089, ETC. you very much. Thank you. Any questions? (No response.)
I also have copies of my testimony here as well, and I have some additional goodies just because I thought it might be interesting for you all, copies of our newsletter, which highlight some of our commercial corridor work, as well as our newly minted Retail Guide and, if you flip it over, Restaurant Guide for Germantown Avenue. So I hope you'll enjoy and patronize some of the great institutions we have up in our neighborhood as well.
My name is Farah Jimenez and I'm the Executive Director of Mt. Airy USA, which is a community development corporation in Northwest Philadelphia, and I want to thank you so 275 10/17/06 - FINANCE - BILL 051089, ETC. much, Councilwoman Blackwell, for convening this hearing, as well as for the rest of the members of this Committee for being here and sticking it out and making it feel like you really care about what we have to say, because I know it can't be easy. You've been here a long time today. So I appreciate that.
As fiscal stewards for this City, the City that we all love, I appreciate all that you've done and do to ensure that our tax dollars are spent wisely and well, and I know that there have been over this past year painful and difficult cuts and that we are certainly asking everyone to do much, much more with less. But I'm really excited about this initiative in particular because it turns the corner and it signals the wisest of investments in this City, in the city of neighborhoods. It presents the 276 10/17/06 - FINANCE - BILL 051089, ETC. opportunity to catalyze the kind of public and private investment that rebuilds our neighborhoods and makes us a finer city. And I'm convinced of this because we have evidence that this kind of investment works, and the best evidence, of course, is in my own neighborhood, because Mt. Airy is in renaissance. When Mt. Airy USA first started doing this work of commercial corridor revitalization in 1980, we used volunteer energy and limited financial resources, and we knew that to preserve our community we needed to attack the commercial blight that was contained along our main street, Germantown Avenue. We also knew that the abandonment and blight peppered throughout the neighborhood was a direct response to the depleted and unattended commercial corridor, and as the Avenue suffered, the residential community bled. It bled stable homeowners. It bled places to 277 10/17/06 - FINANCE - BILL 051089, ETC. build community and it bled jobs. But today our story is quite different, and in no small measure it is because of the City's investment in Mt. Airy USA's vision and in Mt. Airy USA's capacity to leverage the heck out of the City's investment. In 1999, we launched the Avenue Project, which is our comprehensive commercial corridor revitalization effort, and it's supported by volunteer committees on design, promotions, business recruitment and attraction and cleanliness and safety. , who at the time was at the Commerce Department and authorized our first grant, and I hope you're fond and proud of the initial investment you've made in us, because I hope you would agree that we've really leveraged it. In short, what we've been able 278 10/17/06 - FINANCE - BILL 051089, ETC. to do with the City's investment is, we've had 36 new businesses join Germantown Avenue in the last three and a half years. That's an average of one new business a month. 5 million in federal, state and local streetscape monies, including a new gateway project, which will really signal the change in the way you enter Mt. Airy. We were able to elicit the support of our area merchants through $60,000 in annual contributions for a full-time crew to clean and green Germantown Avenue, and now there is support for the development of a business improvement district. Following the lease of the Mt. Airy Restaurant Directory, the one that 279 10/17/06 - FINANCE - BILL 051089, ETC. actually preceded the one you have in your hands, we had an average of 4 percent increase in revenues for our area 5 restaurants and the birth of what is now 6 called the Mt. Airy Restaurant 7 Renaissance, as has been featured in the 8 City Paper, the Daily News and most 9 recently with the visit by Food 10 Television Network. 11 A 150 percent increase in the 12 average property values along our main 13 street and rental rates have also 14 increased at the same rate along 15 Germantown Avenue, which, of course, means the private developers now have an incentive to invest. And also Mt. Airy USA alone has constructed or rehabbed nearly 30,000 square feet of new office and retail space along Germantown Avenue since '99, including the nationally recognized Winston Commons Project, which will open on November 1st. We were one of 11 projects that was awarded a Home and 280 10/17/06 - FINANCE - BILL 051089, ETC. Garden Television grant in a National Trust for Historic Preservation Grant. So it will be featured on the television station in October or November.
If I had a team of actuaries, I might be able to tell you more reliably what the bottom line number is in terms of what we've been able to leverage in the City's annual investment of $75,000 to $125,000 a year in Mt. Airy USA, but I can tell you that the investment return is exponential and we estimate it at 30 to one. We don't get that return in every neighborhood, and I don't claim that, nor with every investment, but there's no doubt that an investment in commercial corridors is an investment in the health of this City and in its neighborhoods, and, of course, as has been evidenced in Mt. Airy, it's an investment in the City's tax base and its increasing tax base. I'm thrilled that we've been 281 10/17/06 - FINANCE - BILL 051089, ETC. able to achieve what we've been able to achieve in our corner of the City, and I am honored when Mt. Airy USA is asked to share its story of hard work and success locally, regionally and nationally. But this overnight success was no less than years in the making, and this 9 overnight success is not a complete story 10 yet. There's still more to be done. 11 And, finally, this overnight success can 12 just as easily turn a negative corner 13 without continued support, attention and 14 investment. 15 If we are to be successful or 16 continue to be successful in the 17 revitalization of neighborhood commercial 18 corridors, I would argue that the 19 following two or three components is 20 critical. One is supportive commercial real estate development, through activities like the Acquisition Pool and the kinds of investments that the Commerce Department continues to make in our real estate development projects. 282 10/17/06 - FINANCE - BILL 051089, ETC. The impact of Mt. Airy USA's real estate projects, whether it's Phebe Commons or our newest effort, Winston Commons, cannot be underestimated. Both projects have turned around neighborhood corners and have converted thoroughly underutilized properties into homes for neighborhood eateries, medical facilities, financial institutions, law firms, mortgage companies and more. Both projects were followed by private developer investment as they acquired and rehabbed 25,000 square feet of underutilized or vacant commercial space because of its proximity to our development projects. Second, it's important for the funds to be flexible and fast. Because of the nature of the funding sources used by the City for commercial corridor work, it's not uncommon for an award to be made in one year and the funding contract to be executed in the subsequent year. Or worse, an award to be made and then the 283 10/17/06 - FINANCE - BILL 051089, ETC. source of funds have related costs that diminish the initial award by as much as percent. It matters that these funds 5 be flexible and it matters that they be 6 fast so that we can leverage them fully 7 and be agile to respond to market needs. 8 And, third, that administrative 9 support is critical. This business of 10 commercial corridor revitalization is 11 labor intensive and quite costly. In a 12 mall, a portion of everyone's rent is 13 made available to support the common work 14 of advertising, promotions, customer 15 attraction and branding, but in a 16 neighborhood, there is no such 17 requirement, and we do this work because 18 we believe that it is what builds a 19 stronger and healthier community. But 20 our ability to continue serving our 21 community is tied to whether or not we 22 can support the staff and the 23 administrative costs that support our 24 main streets and our neighbors. 25 So to conclude, let me begin by 284 10/17/06 - FINANCE - BILL 051089, ETC. thanking you once again for your time and attention and interest, and I hope you enjoy our Restaurant/Retail Guides and the newsletter. I see this bond being of a particular opportunity for our commercial corridors and I see it as a way of continuing the transformation that we've seen in Philadelphia's neighborhoods.
So I thank you so much for convening this meeting and for supporting this bond.
Thank you very much for the fine job you do and for all the literature. Thank you. Thank you for your patience.
Good afternoon, evening, wherever we are now. Madam Chairwoman Blackwell and other members of the Committee, I want to thank you for the opportunity to testify today and your ongoing support for the role of CDCs in undertaking neighborhood economic development work. My name is Rick Sauer and I'm 285 10/17/06 - FINANCE - BILL 051089, ETC. the Executive Director of the Philadelphia Association of Community Development Corporations, and our member CDCs are working every day throughout the City to revitalize neighborhood economies, as a number of groups have testified earlier today. In fact, 30 of our CDC members are engaged in a range of neighborhood economic development activities, including commercial corridor revitalization. We strongly support the Cultural and Commercial Corridor Bond Initiative and we think it's an important new resource, a thoughtful program design that is really designed to address the diverse needs of our communities and to strengthen commercial corridors throughout the City. So on behalf of the CDC industry, I just want to acknowledge the design that was put together by the NTI and Commerce Department staff and how it really is responsive to the needs out there in the communities. 286 10/17/06 - FINANCE - BILL 051089, ETC. For the past year, PACDC has been conducting research to develop a community audit of the local neighborhood economic development system that identifies key issues and makes recommendations about how to ensure that the public resources the City has at its disposal support neighborhood economic development and could have the most impact on economic development strategies being implemented in our neighborhoods. And we're going to be sharing that entire report with you in the near future, but today I just wanted to highlight a few things, a few findings, that relate to implementation of the ReStore Philadelphia Corridor Initiative. Overall, we're supportive of the range of proposed investments in commercial corridors that this initiative provides. New resources for these activities are absolutely necessary for successful economic revitalization at the neighborhood level, and we applaud the 287 10/17/06 - FINANCE - BILL 051089, ETC. City's goal of making such a significant investment in this area. In particular, I want to highlight a few items. First, as others have mentioned, commercial and mixed-use real estate development. Facilitating the redevelopment of abandoned and vacant properties on commercial corridors into new commercial developments and mixed-use developments is really key to turning corridors around and attracting new investment and new businesses. We strongly support the creation of the two complementary acquisition pools that are outlined in the proposed program, both to enable the City to acquire blighted properties but also to enable non-profit entities to directly acquire properties on the private market to support their project development goals. It's critical, as has been mentioned, that the Acquisition Pool be administered in a way that funding decisions can be made quickly and funds 288 10/17/06 - FINANCE - BILL 051089, ETC. delivered quickly so that CDCs can respond to opportunities as they arise in the market and not lose those opportunities. I think it's also important to ensure that we capitalize that fund at an adequate level to support acquisition activity, and we certainly support the initial $4 million figure that was in the draft legislation. In addition, the proposed Targeted Redevelopment Grants are critical to ensuring the financial viability of commercial development projects, and we encourage you to support that in the final legislation. Pedestrian lighting is another key issue that a number of local groups keep bringing up as an important strategy to improve the perception of safety and the physical attractiveness of their corridors, both of which do attract shoppers as well as new businesses.
However, the experience has been that 289 10/17/06 - FINANCE - BILL 051089, ETC. existing policies, City policies, have been working against adding pedestrian lighting to commercial corridors. So we see this infusion of bond funds as an excellent opportunity to support the purchase, installation and maintenance of pedestrian lighting on corridors and to work through the outstanding policy issues to make sure that we can have agreement around what the best strategy is to pursue pedestrian lighting on corridors. And then, finally, small business assistance is critical, both the type of assistance to improve facades and physical investments like that, but also direct assistance to businesses to build their capacity to be more effective small business operators on our corridors and to ensure that they do have access to sufficient capital to expand their businesses, which would be enabled through the proposed Guarantee Fund. We believe that the ReStore 290 10/17/06 - FINANCE - BILL 051089, ETC. Philadelphia Corridor Initiative supports a healthy range of activities. However, as Farah just mentioned, it's critically important to ensure that local groups administering these funds have adequate resources to carry out their work, and, therefore, we also recommend that the program be structured in a way that will continue to build the capacity to guide revitalization efforts, such as to support facilities by CDCs to hire staff to manage their corridor activities and to carry out the broad range of work that's envisioned through these corridor bonds. These investments would also greatly strengthen if they're partnered with a coordinated City-wide effort to help market neighborhood commercial corridors as good places for businesses to locate. So we want to encourage the City to implement a strategic City-wide marketing attraction effort to help bring 291 10/17/06 - FINANCE - BILL 051089, ETC. businesses to commercial corridors. This is one of the strongest recommendations that our members have come up with, because individual groups working on the corridor themselves, while they do a lot to market their corridor, it's much more difficult for them to go out to the larger businesses and the larger chains that could be enticed to locate in a number of neighborhoods throughout the City, or to attract an existing business that's already well established on another corridor to expand its operations on their corridor as well. Last, but not least, we want to ensure the new program is as effective as possible and that the resources are used to their fullest potential. In order to do so, we just have five quick items we want to mention. One, as has been mentioned before, the importance of flexibility, both to allow the funds to address the range of needs that are different 292 10/17/06 - FINANCE - BILL 051089, ETC. throughout neighborhoods in different corridors but also to support organizational staff and administrative costs. Secondly, that the funds be used in a transparent way; that is, there needs to be clear written guidelines for programs and how organizations can apply for funding or will be selected. And we think the process that was used for the recent NTI commercial corridor funds where there was an RFP issued was a very good model to follow. Thirdly, the importance of aligning resources. There's a number of different resources out there. In order to maximize impact, we need to make sure that we're coordinating the use of these resources so that they can be most effectively utilized. And efficiency, as mentioned. Once awards are made and notification goes out, it's important that contracting can be done quickly so that opportunities 293 10/17/06 - FINANCE - BILL 051089, ETC. aren't lost or there aren't significant funding costs that are incurred as projects are put on hold. And, finally, accountability.
We want to make sure that whatever organizations that get the funds, whether they're CDCs or other groups, that they are performing at a high level and that they're accountable in how they're utilizing those funds. In closing, I would like to stress the importance of commercial corridor revitalization. Neighborhood corridors provide local access to jobs, goods and services. They strengthen the surrounding residential areas, as we've heard, and they provide the community with much of its cultural identity. Strong corridors are, therefore, a critical piece of economic development for the neighborhoods and for the City and region overall. Thank you for your time.
Thank 294 10/17/06 - FINANCE - BILL 051089, ETC. you very much. Any questions? (No response.)
Well, thank you for yours as well. We're really grateful to have this Committee have this hearing, and also the initiative is one that will have great long-term benefits for the neighborhoods, and we really appreciate that vision that you're showing.
My name is Mary Tracy and I'm the Executive Director of SCRUB, the Society Created to Reduce Urban Blight. SCRUB works with over 80 community groups throughout the City who are interested in creating more attractive neighborhood commercial corridors. And I'd just like to start 295 10/17/06 - FINANCE - BILL 051089, ETC. off by saying that there are many good reasons why we need to invest in the aesthetics of neighborhood commercial corridors. We've listened to them already very eloquently by previous speakers, but I think the bottom line is that when a neighborhood is attractive and feels safe, people will want to live, work and visit. The economic vitality of a city and its neighborhoods is closely linked to visual impressions. Studies are now revealing that an attractive environment decreases stress and encourages healthier lifestyles, since residents are more likely to spend more time outdoors when they feel the neighborhood is attractive and safe. City residents are not immune to ugliness, nor are our children. Our children should be able to enjoy the same pride and pleasure of walking through a neighborhood as those who reside in the suburbs. 296 10/17/06 - FINANCE - BILL 051089, ETC. For the past six years, SCRUB has been providing technical support on issues connected to the visual environment, and many of our community partners rely on SCRUB for guidance and support in dealing with the plague of illegal billboards. These signs, whether nailed to the side of a building, greeting visitors at the gateway areas or towering from poles and rooftops, are a deterrent to revitalization efforts taking place. City Council has been a partner to neighborhoods dealing with the onslaught of outdoor advertising and has taken bold action in the past to support and protect its neighborhoods, laws past in 1991, which set distance requirements from people's homes, our parks, our playgrounds, our schools, and just in 2004, City Council voted to set higher license fees so that L&I could do a better job enforcing and removing finally some of these illegal signs. And I just 297 10/17/06 - FINANCE - BILL 051089, ETC. wanted to have this opportunity while we are talking about improving our commercial corridors and supporting the bond that will give us the money to do that, I think we really have to look at the long-term negative financial impact of billboards. In August of 2006, our City Law Department reached an agreement with billboard companies that would actually legalize over 700 billboards in the City of Philadelphia. I think, Councilwoman Blackwell, we actually went through your neighborhood. I'm sorry. I should have sent this up. We found 38 of the signs that could very possibly be legalized are in your district, and these are the signs along -- and these are the same signs that they want to be legalized now that they admitted in 1991 were indeed illegal with no permits. And the Law Department through its agreement has really lowered the bar for the requirements of gaining a license, and these new requirements 298 10/17/06 - FINANCE - BILL 051089, ETC. really are not even remotely connected to what the law that this City Council passed in past years starting in the '70s. And when Council heard testimony from L&I and from the Revenue Department about the cost of enforcement, they were assured that the cost of $650 a sign face was reasonable and needed to properly enforce the law. Yet, the Law Department, when it negotiated its settlement, lowered those fees to $50 a sign face and said that the billboard industry would now regulate and monitor itself, an industry that even today is doing everything it can to skirt the laws. I think that there was initial press coverage saying that it was a positive agreement because there would be removal of 900 signs, but I think what we didn't know was that 200 of these signs had already been removed by the building owners themselves. 299 10/17/06 - FINANCE - BILL 051089, ETC.
So I think what -- I don't really want to go into all the details. I'd be happy to do that at another time, but I do want to make this Committee aware of the tremendous financial loss that this agreement is having not only from the license fees that won't be spent to help enforce its law but from the long-term negative impact these billboards will have on future development in our neighborhoods, not to mention the stigma of our neighborhoods full of unsightly billboards. You know we love to talk on that one. So I guess part of what I'm asking in addition to our strong support for this bond issue, which would enable all of these hard-working community development corporations, for which we've had the pleasure of working with many of them, I also think we need to look at the impact of this settlement agreement and if Council could somehow help us to render it invalid. 300 10/17/06 - FINANCE - BILL 051089, ETC. Thank you very much.
Thank you very much. Thank you for this document for my district as well.
Thank you. Any questions for Ms. Tracy? (No response.)
Thank you very much. Is there anyone else here who would like to testify? Yes, sir. Is there anyone else who would like to testify? (No response.)
Thank you, Madam Chairman. My name is Derick Dreher. I am the Director of the Rosenbach Museum and Library.
301 10/17/06 - FINANCE - BILL 051089, ETC. Welcome. Thank you for coming and for your testimony.
Thank you for accommodating me at the last minute, and I'd like to thank your distinguished colleagues for their patience. Like all of you, I have been sitting here since 1 o'clock this afternoon and I think I'm in a position to make some summary remarks and try to be brief. You've heard from a lot of people this afternoon who have promised you they'd be brief and have then commenced a dissertation of sorts. What I've heard is the City Council asking a lot of tough questions; in other words, doing its job, being smart, saying we refuse to throw money out the window. But I've also heard them being sensitive. I've seen them sitting here all afternoon listening to people. I've seen them paying compliments to individuals for their leadership to institutions that have reached out. In other words, they have recognized the 302 10/17/06 - FINANCE - BILL 051089, ETC. capacity the cultural institutions have. I've seen my colleagues in the cultural sector respond by saying, Yes, we have great needs. Our roofs are collapsing, we need better lighting, we run one-person organizations, we need your help, we need capital investment. But I've also heard them saying every single time, We have enormous capacity to reach out to our community, to our neighbors, to our schools. If you make an investment in us, it will be repaid, it will bring high dividends. And I think the take-home message there is, we've all said we want to link our capacities with one another. We want to be connective tissue. We want to create a whole that's larger than the sum of the parts. We believe the investment in these cultural corridors would do exactly that. So I'd like to thank you for your wisdom and for your patience, and I'd like to ask you to be courageous now, 303 10/17/06 - FINANCE - BILL 051089, ETC. go forth to your colleagues on the full City Council and recommend that this bill 4 be ratified into law. Thank you, Madam Chairwoman.
Thank you very much and thank you for your patience and your testimony. Thank you. If there is no one else to testify, I'd like to first deal with the Water Department. I think those amendments are easier to deal with. If there is no one else to testify, then we will leave our stated hearing and enter stated meeting. Let us have a discussion, Mr. Jannetti. Water Department first. That's simpler. After this, we will move back into our stated hearing, as others still have questions for the Commerce Director and others with regard to the 150 million bond deal. Mr. Jannetti, we wanted to ask you about the amendments to Bill Nos. 304 10/17/06 - FINANCE - BILL 051089, ETC. 060620 and 690. We have circulated them. They are the same amendment for both?
The amendments would allow us to do a swap on the transactions at the outset, not -- after we do the bonds, it would not allow us to do a swap after that. This is to lock in rates now before -- rates are low now, and to lock them in. And that's the purpose of the amendments.
I think part of the purpose likewise was to make sure that Council was included in any swaps that --
That's correct, Councilwoman. If we were to do a transaction, a swap, on these bonds after the bonds were issued, we would have to come back to Council to get that approval. 305 10/17/06 - FINANCE - BILL 051089, ETC.
Thank you. Are there questions from members of this Committee? (No response.)
All right. Since we didn't have a formal motion, thank you, that will be it, Mr. Jannetti.
We're going to ask the Commerce Director and those joining her to come forward. We didn't have a formal motion on the record and so we will return to our City Council hearing part of this session. My colleague, Councilwoman Tasco, you have more questions?
Is there anyone else who has more questions for the Commerce Director? (No response.)
All 306 10/17/06 - FINANCE - BILL 051089, ETC. right. Thank you very much. We will entertain questions from the Councilwoman with regard to the bill, our final bill.
Let me just ask you a couple of questions for the record, please. In Exhibit-C you are budgeting 100 percent of the administrative fees in Year 1. Yet the program is to take three years. Why are you budgeting the $5 million in Fiscal '07? How will these funds be spent and who will oversee their expenditure?
With your permission, I actually have a full list of amendments, one of which -- the first of which is to deal with the budget issue, and I'll be happy to go through that if I could give you this. I think it might help you.
The first item on here is about the budget. Councilwoman Tasco, may I 307 10/17/06 - FINANCE - BILL 051089, ETC. address that issue specifically? The first item on the sheet that's being distributed to you talks about a change in the budget, asking that the whole budget be included, asks for an amendment so that the whole budget is included. We are withdrawing that request. So the first item on the sheet that you have is to be stricken. We are not asking for the amendment. We're going back to the original proposal, which is that the first year budget is the $112.5 million. There was some confusion, and I just want to address it. I'm sorry, because I gathered there was some concern about this, and I just want to address it by saying that we had received a question from Council staff indicating that there was some objection to a bifurcated budget, and that's why we were proposing that change. We're now withdrawing that change and going back to the original, because as I understand it, the members of this Committee prefer the original 308 10/17/06 - FINANCE - BILL 051089, ETC. version.
So how much of the administrative fees will be in that budget?
So that covers? No; the $5 million, that will be spent in one year or the three years?
If I may, Councilwoman. The $5 million is for the issuance cost on the bonds and for the issuance on the bonds.
So that's the administrative fee? 309 10/17/06 - FINANCE - BILL 051089, ETC.
If a Debt Reserve Fund is required on this transaction, what happens to the fund when the bonds are paid off? Is there a Debt Reserve Fund?
The ordinance 11 calls for a Debt Reserve Fund, but I don't believe that we really will do that. But if they were, if we did have a Debt Reserve Fund, it would be used to pay off the last payment of the bonds.
Okay. All right. One other question. I see you have in the ordinance the Committee to oversee the cultural appropriation. Had you ever thought about or given thought to the Cultural Fund administering and overseeing the program because they have the apparatus already in place?
We've actually 310 10/17/06 - FINANCE - BILL 051089, ETC. been using a number of wonderful resources. Another facet of our arts and culture community is that we do have wonderful resources. We have been really privileged to have a great deal of assistance, for example, from the William Penn Foundation, the Pew Foundation, the Non-Profit Finance Fund, and those folks will continue to advise us as we go through. The Cultural Fund, because it focuses on operating funds, not capital, just didn't seem as appropriate a resource, but the folks at those foundations and the Non-Profit Finance Fund deal with capital projects for cultural institutions on a regular basis and they have already been very helpful to us and have pledged to help us through the whole process.
They will continue to be resources to the 311 10/17/06 - FINANCE - BILL 051089, ETC. Committee.
Now, there are two portions to this bill that I'm talking about. First you have the $60 million that's going to the various categories, and the other is the $5 million that's going to the cultural organizations. Which group will your resources advise you on?
The groups that I've mentioned have already given us a great deal of advice, but I would point out that the --
On both. But the $60 million portion is, as I mentioned earlier, primarily for City-owned assets and facilities and infrastructure. So all of -- most of those projects are projects that we are already very familiar with and we have a lot of resources within the Administration that have provided information and knowledge about those. 312 10/17/06 - FINANCE - BILL 051089, ETC.
You have listed here the Avenue of the Arts, the Ben Franklin Parkway, the Centennial District, the Historic District, El Centro de Oro and other emerging corridors. In those categories, how many are City-owned facilities?
I can't give you an exact number, but I would say probably close to 85 or 90 percent of --
I can tell you just because we've looked at all of the capital projects that we could identify with the help of those two foundations and the Non-Profit Finance Fund. There are probably 70, 75 capital projects that we know of that are out there, and we've looked at that whole list. The $60 million pool is to cover primarily the 313 10/17/06 - FINANCE - BILL 051089, ETC. City-owned infrastructure and projects.
That's what I'm asking. What are those City-owned projects?
Well, we don't have a final list, but I would say that there are probably a dozen of those that we could consider.
A dozen City-owned facilities that you would provide the $60 million to?
I'm guessing the number of projects, but I think it's somewhere around there.
It is in 314 10/17/06 - FINANCE - BILL 051089, ETC. Fairmount Park.
The Independence Park, the President's House, for example, the Mall. Those are among the projects we could consider. And then there are some that are not City-owned, but that --
Will you present the list to us when you submit the budget to us?
Right. In here you're supposed to give us "no later than 90 days prior to each fiscal year of 315 10/17/06 - FINANCE - BILL 051089, ETC. the program, the Mayor and the Director of Finance shall submit to the Council for its approval by ordinance an annual budget setting forth proposed program expenditures for the upcoming year by budgetary category," and I'm sure we will ask for --
That provision is intended to guide us as we present a budget to you for next year for the remainder of the program.
So you float the bond, you get the $112 million. Who determines who gets the $60 million? What entity determines the distribution of the $60 million?
We have already gathered a lot of information about it, but the projects --
Who in the 316 10/17/06 - FINANCE - BILL 051089, ETC. Administration?
My office has done that in conjunction with the Managing Director's Office, the Finance Director and the Capital Projects Office. And what we are planning to do is to refine the information we have within the criteria that we have established for reviewing all of these projects, which include -- and I think that is in your material somewhere -- leadership capacity, financial capacity, planning, general eligibility, which is their 501(c)(3) status being in the City, and organizational existence, which means that they need to be a non-profit that has been in existence for at least three years.
So how will you go about deciding on the final distribution of the $60 million?
We will review all of the projects that we have identified within those corridors on that 317 10/17/06 - FINANCE - BILL 051089, ETC. basis, on the basis of those criteria, and then assess which ones are ready to proceed and which ones have the demonstrated capacity to complete the project, and we will do that through an interagency committee made up of the Managing Director, the Finance Director, the Mayor's Office and myself.
But you said that was for the $5 million. I'm talking about the $60 million.
No. The $60 million is that interagency committee of the four components I just mentioned, the Managing Director, the Finance Director, the Mayor's Office and Commerce Director. And it is the -- it's that other committee for the 5 million which includes Councilwoman Blackwell and Councilwoman Reynolds Brown, the Chairman of the Finance Committee and the Chairman of the Parks, Recreation and Cultural Affairs Committee.
But I'm 318 10/17/06 - FINANCE - BILL 051089, ETC. back to the $60 million in terms of what City-owned facilities? Will they be given a priority?
Are you saying that other non-City-owned facilities can qualify for this money?
So it's to your discretion of this interagency committee to select the projects, and they could end up not being City-owned structures, right?
So there's nothing in here to say that these have to be City-owned structures?
It's to the discretion of the Administration to determine who will get the money?
It is intended to be decided on the basis of the criteria I just mentioned and also with respect to 319 10/17/06 - FINANCE - BILL 051089, ETC. those projects as to whether they are ready to proceed and able to complete. Once we get all of that information measured in those terms, we will make a decision as to what projects to fund.
All right. I would like to know how many of the projects that you've looked at are City-owned and what they are, if you could submit that information to the Chair.
I'd like to know what list of projects you're 320 10/17/06 - FINANCE - BILL 051089, ETC. contemplating.
I can give you some examples, if you're interested. I have a list with me of examples of the projects that we have considered.
Let me hear it, but you can still submit it. You want to outline them?
On the Avenue of the Arts, we're looking at the Freedom Theatre, Philadelphia Theatre Company and the Avenue Arts North Streetscaping Project. On the Benjamin Franklin Parkway, we're looking at the Art Museum, the Parkway Streetscaping Project and a Water Works Enhancement Project. In the Centennial District, we're looking at the Please Touch Museum, the Zoo, the Mann, the Dell and the 5K Loop Project. The Historic District, the African-American Museum, Independence Mall and the 321 10/17/06 - FINANCE - BILL 051089, ETC. President's House, Civil War Museum and the National Museum of Jewish-American History. And in the El Centro de Oro and other emerging corridors, we're looking at Taller Puertoricano. That gives you an example.
Is Independence Mall owned by the federal government?
It is City-owned. It is managed by the Independence National Historical Park.
So could you give that list to the Chair of this Committee?
Thank you. I understand Dell East is supposed to get funding as well. I understand Dell East is included.
The Dell is on my list that I just gave, but I wanted to be clear that this is not a final list. This is the list of the projects that we 322 10/17/06 - FINANCE - BILL 051089, ETC. are looking at seriously at this point. It doesn't constitute the full 65 million.
Any questions from other members of the Committee? (No response.)
Thank you. Councilwoman Tasco, you have more questions?
I think so. We might be here all night. Let's go to this $112 million budget. In the acquisition pool under the Commercial Corridors, you had $4 million and you increased it $2 million, taking away 2 of the $4 million acquisition pool for non-profit entities. Would you explain that to me?
Sure. The original that we submitted was an error. We had looked at a total of $8 million for acquisition. In the original that we 323 10/17/06 - FINANCE - BILL 051089, ETC. submitted to you, there was 4, which would be, if you will, a City and PAID fund to acquire properties directly, and the other would be for community development corporations and non-profits. It was actually an error. We had always intended for it to be 6 and 2. The reason we have less for the non-profit CDCs is that we are strongly considering that we would make that a grant to another non-profit organization to manage so that it could be -- the funds could be moved more efficiently and also so they could be leveraged, and we've had preliminary conversations with foundations and others to talk about being able to leverage that money. So while there will be million from this pool for non-profit acquisition, we're anticipating in fact it will go up to or more million with match from other resources.
Let me go back to the Cultural Fund corridors. You 324 10/17/06 - FINANCE - BILL 051089, ETC. have $60 million on this sheet and it's been reported that 30 million of that was going to the Philadelphia Museum of Art. Have you talked about how you divide the other 30 million?
We have looked at possible figures based on the size of the capital project, the amount of fundraising they've been able to do, their capacity to raise additional money. We have looked at all of those things. That's why I think it's very important to allow this program to go forward on the basis of the criteria that I mentioned to you. And I believe in your packages -- I didn't keep one, so I don't have a copy, but I think there's a list of criteria in there that is actually more detailed than the ones that I mentioned to you. And we intend to have a very careful analysis done and have a process that is fair and treats everyone fairly and equally and comes up with an analysis of the projects that are out there. 325 10/17/06 - FINANCE - BILL 051089, ETC. Clearly, as I said before, we can't do it all. We know that there are a lot of projects that we will not be able to fund, but the ones that come up the highest in terms of those criteria are the ones that we will fund. The amount that we will give each one, that we will propose giving each one, will depend on those factors that I mentioned before, how much fundraising they've done, what the size of the project is, how much public benefit we think that it supplies, how it relates to the neighborhood and the City as a whole, how much it strengthens the City as a whole, how much economic impact we think it will have.
While Council Lady Blackwell -- Jannie -- this would be Councilwoman Tasco and that's Councilwoman Jannie Blackwell. That's for me.
We'll get nametags. 326 10/17/06 - FINANCE - BILL 051089, ETC.
And this may have very well been covered. Time frame for the assessment and decisions around the 60 million, has that been determined, talked about, looked at, considered? Where is that in the framework of this roll-out?
We have actually thought about the timetable. We hope to close the bonds in December, to start the process of considering the cultural corridor projects at the beginning of the year. At the same time, we'll be sending out letters -- we'll ask for letters of interest from the smaller organizations for the $5 million and start that process, and we hope to make all of the award letters by June.
June '07. So what I'm hearing is two tracks of activity, correct?
A track for the 60 million and a track for the 5? 327 10/17/06 - FINANCE - BILL 051089, ETC.
Councilman Clarke magnified this issue with regards to the vendors and employment piece of this, so I want to use his line of thinking for the 60 million, and that is to say, as neatly as I can, that we know that Dell East for a lot of reasons may not be able to raise the kind of substantial dollars that a Philadelphia Free Library can raise. So some formula, some criteria, some consideration that lends itself to a level playing field for Dell East stacked up against the Philadelphia Free Library should be factored in to the criteria that you've outlined.
It absolutely is. It's part of the financial capacity that I mentioned. We'll be looking at not only their financial capacity in terms of their 990 and their ability to fundraise but obviously their ability to carry out the project and get it done in a timely 328 10/17/06 - FINANCE - BILL 051089, ETC. fashion.
Wait a minute. But that's a City-owned structure. They don't do 990's. We fund them through the City budget.
Well, I'm giving the answer for all of the category, all of the projects in the $60 million category. We'll be looking at all of those.
Well, you just added the Dell today, because it's not in here. It's not in your sample list, and it's sort of like an after-thought because we raised it. And the problem is with the Dell, we'll come back and you'll say, Oh, well, that comes under the City capital projects and we don't have any money for the City capital projects, and that's a City-owned structure. So to the Dell, you say, Oh, well, that's City Recreation Department, that goes under the capital program, so 329 10/17/06 - FINANCE - BILL 051089, ETC. let them fund it. That's what's going to happen.
I'm not sure I'm following this. Do they do no 8 fundraising?
Your expert should be able to tell you about the City facilities in your program and what they do and what they don't do. They don't do fundraising. It is a City Recreation facility.
I guess I'm done. For the lawyer, I'd like for you for the record to come forward. I had a question about the amendments and what some of the markings meant. 330 10/17/06 - FINANCE - BILL 051089, ETC.
I actually was going to go through the whole two sheets, if you would like, or Mr. Dutchie can do that.
I'm sorry, Councilwoman. For the record, my name is Francois Dutchie. I'm head of the Financing Contracts Division of the City's Law Department. Did you have a specific question?
Yes. In the amendments, certain portions on B-4 of the ordinance there and on B-3 there are, around the streetscape enhancement and capital improvements, there are certain, I guess, markings and I'd like to know what that means.
It's really just a functioning of the black lining procedure. It's substantively meaningless. It's just putting in quotations --
That it's being 331 10/17/06 - FINANCE - BILL 051089, ETC. eliminated.
It's just putting it in brackets to indicate that it's being -- that symbol that's in there is being eliminated.
Thank you very much. With regard to all these changes, it's really, really unconscionable to get four different copies of changes in one afternoon. Having said that, we will --
Is the Zoo on your list? 332 10/17/06 - FINANCE - BILL 051089, ETC.
Having said that, we will call on you to go through the proposed amendments to the Cultural and Commercial Corridors ordinance, so if we ever get to stated meeting, we can vote. However, with regard to the amendments to the Economic Opportunity Plan, we assume that we are in agreement that this is Exhibit-D and that you've taken away the first supplement to the Neighborhood Transformation Initiative Economic Plan and listed it as City of Philadelphia Cultural and Commercial Corridor Program; is that correct?
Yes, we have it. And we also assume that on of this same amendment document that the numbers have been changed from 333 10/17/06 - FINANCE - BILL 051089, ETC. goals of 35 and percent to 43 and percent; is that correct?
Then 6 that takes us through that document. Now 7 we'll call on you to explain the other three-page document listed "Proposed Amendments to the Cultural and Commercial Corridors Ordinance."
As I said earlier, that No. 1 item is eliminated. We're withdrawing it. That's the budget change, and we're going back to that original budget. The second item on the Proposed Amendments sheet that you have is just making some grammatical changes in the language for Section 8(b).
Let's hold up and make sure we're all looking at the same document. As my colleague mentioned, it's just easier to look at the -- let me make sure I have the same bill copy. So we are on the most recent document, thick document. This is a document we all receive. So this is a document we're referring to. So we should turn to . We're on . Is that where we are?
Unfortunately, I gave you all the copies. The Clerk picked up all the copies, so I don't have a copy to refer to. Thank you. I appreciate it.
So we 335 10/17/06 - FINANCE - BILL 051089, ETC. are on , No. 8(b)?
Okay. I don't know if we still have a summary. It's changed a few times.
Yes. And that's this three-page document I was referring to, correct?
We're reading from a two-page summary and we're showing you what changes have been made to that summary.
It's a twodocument that's entitled Proposed Amendments to the Cultural and Commercial Corridors Ordinance.
So we're on two documents. 336 10/17/06 - FINANCE - BILL 051089, ETC.
We have the amendment, Exhibit-D. Now we're dealing with the thick bill copy and the three-page paper that says "Proposed Amendments to the Cultural and Commercial Corridors Ordinance"; am I correct? Since we have reviewed Exhibit-D, we should be able to put the Economic Opportunity Plan aside; is that correct?
So now we're working with these two documents, a full bill and a three-page document. Are we all on the same page? Great. All right. So now in the thick document, the complete bill, we turn to , No. 8.
Well, I've just gone to your three-page Proposed 337 10/17/06 - FINANCE - BILL 051089, ETC. Amendments. So the second item is Exhibit-A of the ordinance.
I have no idea what you're talking about. If this says from the thick document, No. B --
Madam Chair, she seems to be looking at this document, the three-page document.
Ms. Naidoff, I think the Chair would prefer you work from this document rather than from the summary list. You can use the summary to direct you to this document, but it's easier for us to go through this document to look at the amendments.
So we're on No. 8, . Or do you turn to where you have 8(c)?
The section at 338 10/17/06 - FINANCE - BILL 051089, ETC. the bottom of , is that what you're looking at, 8(b)?
No. That was just to make some grammatical changes because we felt the wording of that provision was subject to misinterpretation. So it's not making any substantive changes. It's just changing the words to make it clearer.
"Annually, the City shall submit," is that what we're changing?
"Annually, the City shall submit a report to the Council summarizing all expenditures made during the previous year." That's the new amendment, right?
Do you want to go 339 10/17/06 - FINANCE - BILL 051089, ETC. to 8(c) next on ?
The Service Agreement, Exhibit-A. We're substituting a new Service Agreement --
It comes after the ordinance itself. It's the one that says Service Agreement Between the Philadelphia Authority for Industrial Development and the City of Philadelphia. And the new Service Agreement that we are proposing is simply an additional -- we have additional description in there of the program categories exactly as was contained in my testimony. We just felt that the Service Agreement should be as specific as the testimony we gave you.
It's Exhibit-A after the bill. It's the entire Exhibit-A.
All 340 10/17/06 - FINANCE - BILL 051089, ETC. right. Where are we now?
Could you please for me tell me where you've made changes in the Service Agreement, what page. A new Service Agreement has been submitted. What changes were made?
The most substantive change, Councilwoman, is that we added an Exhibit-A to that, which is the criteria piece that I was describing before.
It says A-1 at the bottom. It's way back in the agreement. The agreement is probably 18 pages and then there's A-1 after it, A-2 19 and A-3. 20
I'd 21 suggest you not do this again during this 22 Administration.
They added 341 10/17/06 - FINANCE - BILL 051089, ETC. Exhibit-A to Exhibit-A. It contains program guidelines.
Should I go on to Exhibit-B? And there the first change is that we added "and other emerging corridors" with the El Centro de Oro provision. As I mentioned in the testimony, we think that's not only -- that gives us more flexibility to address other neighborhoods.
Ms. Naidoff, the Committee is still reviewing Exhibit-A. The Committee is still reviewing program guidelines on Exhibit-A. (Pause.)
And in Exhibit-B, the first change is to add after the phrase "Centro de Oro" the phrase "and other emerging corridors," which I mentioned in my testimony.
It's on B-1. 342 10/17/06 - FINANCE - BILL 051089, ETC.
That's on B-1. Thank you. The next change is at the bottom of that page, B-1, and that is, in the smaller grants program, we originally had proposed that the grants would be up to a maximum of $250,000, except where there are budgets that are above a million, we would go up to 500,000, and we're now changing that, eliminating that and sticking with the $250,000 limit for all grants under that program. So the funding will not exceed $250,000 to any grantee.
The top of B-2, it's just a language change. We changed the word "matching" to "ability to leverage other funds." It's a more correct description of what we're intending. We're really not looking for matching funds. We're looking for the ability to leverage funds. 343 10/17/06 - FINANCE - BILL 051089, ETC. The next change on B-2 is to be more specific about the composition of the Committee, and we mention there the Chair of the Committee on Finance, the Chair of the Committee on Parks, Recreation and Cultural Affairs, and I believe the earlier version just said interagency participation or interagency members, and we're saying specifically the Commerce Director, the Managing Director and the Finance Director would work with those two City Councilmembers.
The next is on B-3. It's down towards the bottom of the page. We're changing the words "non-tax-exempt bond sources" to "future indebtedness," and that's on the advice of bond counsel to provide some flexibility in case we need to make some of the bonds taxable. I'll skip the other items on B-3 because they are the same as we just 344 10/17/06 - FINANCE - BILL 051089, ETC. mentioned, which is the bracketed parts just indicate that they're coming out. And the same thing on B-4. The next change is on B-5, the program budget, and we're eliminating the "targeted demolition on commercial corridors."
Because it's duplicative of the item above. And then we add at the bottom of Page B-5, we have the two footnotes. The first one allows the reallocation within a range of ten percent, depending on how the expenditures actually work out. And the second is to conform to the language that we talked about before about future indebtedness. There's a footnote on B-6 at the bottom which addresses the issue that Councilwoman Tasco asked before about, the $5 million in administrative fees, and talks about the fact that it's for the costs of issuance and insurance. 345 10/17/06 - FINANCE - BILL 051089, ETC.
We already talked about Exhibit-D, the Economic Opportunity Plan. Are there questions from members of the Committee with regard to any of these amendments? (No response.)
Are there questions on this bill or on the other Water Revenue? If not, maybe I'll entertain a motion to conclude the hearing and into our stated meeting. (Duly seconded.)
Thank you. It's been moved and seconded that we will conclude our public hearing, enter into stated meeting. All right. We'll now go to our regular white sheet with our bills listed. The Chair recognizes Councilwoman Blondell Reynolds Brown with regard to a motion on Bill No. 051089. On all of these we're asking for a suspension of the rules. 346 10/17/06 - FINANCE - BILL 051089, ETC.
I move that Bill No. 051089 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading at our next Council session. (Duly seconded.)
The ayes have it and, therefore, Bill No. 17 051089 is reported out of Committee with a favorable recommendation and also a recommendation for a suspension of the rules so that this may be heard at our next session of Council. The Chair recognizes Councilman Goode with regard to a motion, with suspension of the rules, for Bill No. 25 060261. 347 10/17/06 - FINANCE - BILL 051089, ETC.
Thank you, Madam Chair. I move that Bill 060261 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.)
The ayes have it and, therefore, Bill No. 18 060261 is reported out of Committee with a favorable recommendation and also a recommendation that the rules of Council be suspended so that this may be heard at our next session of Council. The Chair recognizes Councilman DiCicco with regard to adopting the amendment for Bill No. 060260. 348 10/17/06 - FINANCE - BILL 051089, ETC. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment to Bill No. 060620 be approved. (Duly seconded.)
The ayes have it and, therefore, Councilman DiCicco, we will ask you for a motion on the amended bill. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 060620 as amended be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)
All in favor will say aye. (Aye.) 349 10/17/06 - FINANCE - BILL 051089, ETC.
The ayes have it and, therefore, Bill No. 7 060620 as amended is reported out of Committee with a favorable recommendation and also with a suspension of the rules. The Chair recognizes Councilman Ramos with regard to Bill No. 060627.
Thank you, Madam Chair. I move that Bill No. 060627 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next Council meeting. (Duly seconded.)
Opposed? (No response.) 350 10/17/06 - FINANCE - BILL 051089, ETC.
The ayes have it and, therefore, Bill No. 4 060627 is reported out of Committee with a favorable recommendation and also for a suspension of the rules. The next bill, 060687, is being held at the request of the sponsor. The Chair recognizes Councilwoman Blondell Reynolds Brown with regard to Bill No. 11 060688.
Madam Chair, I move that Bill No. 060688 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading at the next scheduled session. (Duly seconded.)
Opposed? (No response.) 351 10/17/06 - FINANCE - BILL 051089, ETC.
The ayes have it and, therefore, Bill No. 4 060688 is reported out of Committee with a favorable recommendation and also for a suspension of the rules so that this may be heard at our next session of Council. The Chair recognizes Councilman Goode with regard to approving the amendment to Bill No. 060690.
Thank you, Madam Chair. I move that the amendment to Bill No. 060690 be approved. (Duly seconded.)
The ayes have it and so the amendment is adopted. The Chair now recognizes Councilman Goode with regard to a motion 352 10/17/06 - FINANCE - BILL 051089, ETC. on the amended bill.
Thank you, Madam Chair. I move that Bill 060690 as amended 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.)
The ayes have it and, therefore, Bill No. 19 060690 as amended will be reported out of Committee with a favorable recommendation and also for a suspension of the rules. The Chair recognizes Councilman DiCicco with regard to Bill No. 060691. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 060961 353 10/17/06 - FINANCE - BILL 051089, ETC. be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)
The ayes have it and, therefore, Bill No. 15 060691 is reported out of Committee and also with a suspension of the rules so that it may be heard at our next session of Council. The Chair recognizes Councilman Ramos with regard to Bill No. 060692, and we will ask that the amendments that we've just discussed be approved.
I move that the amendments as previously described regarding Bill No. 060692 be adopted. 354 10/17/06 - FINANCE - BILL 051089, ETC. (Duly seconded.)
The Chair now recognizes Councilman Ramos for a motion on the amended bill for 060692.
I move that Bill No. 060692 as amended be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at our next Council meeting. (Duly seconded.)
Opposed? (No response.) 355 10/17/06 - FINANCE - BILL 051089, ETC.
Therefore, Bill No. 060692 as amended will be reported out of Committee with a favorable recommendation and also with a suspension of the rules. The Chair recognizes Councilwoman Reynolds Brown with regard to Bill No. 060693.
Madam Chair, I move that Bill No. 060693 be reported out of Committee with a favorable recommendation and further move that the rules of Council be suspended. (Duly seconded.)
Therefore, Bill No. 060693 will be reported out of Committee with a favorable recommendation and also for a 356 10/17/06 - FINANCE - BILL 051089, ETC. suspension of the rules. Councilman Goode, would you give us a motion with regard to 060696.
Thank you, Madam Chair. I move that Bill 060696 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.)
The ayes have it and, therefore, Bill No. 21 060696 will be reported out of Committee with a favorable recommendation and also with a suspension of the rules. Our final bill for today, Councilman DiCicco, would you give us a 357 10/17/06 - FINANCE - BILL 051089, ETC. motion with regard to Bill No. 060701. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 060701 be reported out of Committee with a favorable recommendation and that the rules of Council be suspended. (Duly seconded.)
The ayes have it and, therefore, Bill No. 17 060701 is reported out of Committee with a favorable recommendation and also with a suspension of the rules so that it may be heard at our next session of Council. This ends our hearing. Let me thank all of you who are here. Let me thank this wonderful Committee. It wasn't an easy day, but thank you all. (Committee on Finance adjourned 358 10/17/06 - FINANCE - BILL 051089, ETC. at 6:35 p.m.) - - - 359 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 October 17, 2006, 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.)