Committee Hearing, October 17, 2006

We can strike it up here.

Right.

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.

Thank you.

Thank you very much. Any more questions?

I have some more.

Councilwoman Tasco.

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.

At the present time.

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.

Yes.

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.

So we can only borrow $52 million?

Well, after we 116 10/17/06 - FINANCE - BILL 051089, ETC. do 202 million.

Okay. Then after that, how does it go up?

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.

Yes.

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?

Correct.

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.

-- 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?

That's our best estimate right now, yes.

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?

Yes.

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.)

We're fine. Franklin Institute.

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.)

Thank you. University of the Arts.

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.

Thank you very much, Mr. Hofer.

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.

Thank you. (Applause.)

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.

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.

Thank you.

Curtis Jones, President and CEO of the Philadelphia Development Corporation, PCDC.

Thank you, Mr. Jones.

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.)

Mr. Jones, welcome.

Thank you. I am pleased for my --

I need money for my SEPTA businesses.

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

It's been my 10 distinct pleasure. 11

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.

Reverend Ramsue.

Good afternoon.

Welcome.

I'm a little bit hoarse.

Oh, you are.

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.

Thank you, Dr. Ramsue.

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 --

Thank you very much.

-- 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.

Wonderful. Absolutely.

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. Any questions? (No response.)

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.

You tell your next-door neighbor it's not true.

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.)

Thank you.

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.)

Thank you.

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.

Thank you very much. Ms. Aulston.

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.

Thank you.

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.)

Thank you. Ms. Pepper.

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.

Thank you.

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.

Yes.

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.

Good afternoon.

Good afternoon.

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.

Thank you.

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. Councilwoman Brown.

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.

Sure.

We have some newsletters about our construction project we would love to make available.

Okay. Thank you.

Thank you. The Sergeant-At-Arms will get them. Thank you very much.

Thank you.

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.

Thank you.

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.

Good afternoon --

Good afternoon.

-- Chairwoman Blackwell and distinguished members of the Finance Committee. Thank you very much for allowing us to --

Thank you for your patience.

-- 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.

Thank you very much. Thank you.

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.

We understand.

It's a long day. Good evening, honorable Councilmen and women.

Good evening.

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.)

Thank you.

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.

Thank you for your patience.

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.)

Thank you.

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.

Thank you.

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.

Thank you.

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.