Good afternoon, Madam 93 Bill No. 990764 Chairperson, Members of the Committee. My name is Paul Deegan, and I represent Philadelphia Industrial Development Corporation and Philadelphia Authority for Industrial Development. This bill 6 authorizes the City to convey a vacant two-story office building located at 5751 North Broad Street through the Philadelphia Authority for Industrial Development. After conveyance to PAID, the property will be sold for fair market value to Philadelphia Suburban Development Corporation. They're located at 700 Packer Avenue. PSDC intends to renovate this building for day care programs and uses of a general educational or academic nature to be operated in conjunction with community-based non-profit organizations. The and buyer is currently developing similar centers in the 6200 block and 4900 block North Broad Street. The property has been appraised at $275,000 by two independent real estate appraisers, and the net proceeds of the sale will be deposited in the City's general fund. I ask the Committee to consider the bill favorably and that the rules of Council be suspended to permit first reading at the next regularly scheduled meeting of Council. There is a representative from 94 Bill No. 990764 Philadelphia Suburban Development Corporation who is here, and I think he has met with the Community, Broad and Olney neighbors and also the District Councilwoman. I think he would like to just put a few remarks on the record. CHAIRWOMAN CLARK: Good afternoon, sir. Please join us at the table, tell us your name, spell your last name for the stenographer and proceed with your testimony.
Madam Chairwoman, my name is Mark Nicoletti, N-I-C-O-L-E-T-T-I. I'm the vice president of the Philadelphia Suburban Development Corporation. They're located at 700 Packer Avenue, Philadelphia. CHAIRWOMAN CLARK: And your testimony with respect to Bill No. 990764,?
Well, I have to say that I'm very excited by this building, Madam Chairwoman. I work for a company that father started about 40 years ago and our plans for this building are consistent with what we've been successful doing for years, and that is to take an older building, that people seem to not understand what to do with and invest money into converting it into space for 95 Bill No. 990764 organizations that work in that neighborhood where the building is located. We've had meetings with the Councilwoman and the community group in that neighborhood. They seem excited about our plans. And with the help of your committee and Mr. Deegan, his efforts, hopefully we're going to be able to move forward with this project. CHAIRWOMAN CLARK: Thank you. Mr. Rizzo.
Mr. Nicoletti, if you acquire this building and the intended use doesn't come together, what would be the alternative to that? Are there, Mr. Deegan, restrictions in the deal that if that doesn't come together what happens?
Well, the property is owned C2 commercial, so there would be a wide variety of uses. But I think we can work out some sort of deed restriction or agreement with the community organization to specify just the list of uses to be permitted in the property.
In other words, I'd like some guarantees that if this happens that the 96 Bill No. 990764 intended use happens, and not some other use.
That's true. I think we're putting on record what the use will be, and we can also incorporate that into the deed, either the deed from the City to PIDC or from PIDC's deed to the developer giving a list of uses that are permitted and not permitted.
Councilman Rizzo, let me respond by saying this: This is a building that is available. It's for sale. Our company is prepared to pay the market price for the building, just as maybe other buildings on the block might be available for sale. Inherent to our plans are marketing strategies that we've been successful right now. And even though I can't bring you a list of tenants, it's kind of hard to secure leases on a building that you don't have an option on. I can illustrate for you organizations that we're working with right now building facilities in education, in day care that are anxious to do other projects with us. And this is a viable location for things like that. We bear a lot of risk because this is a cash sale. We're not asking for any public money. We're going to purchase this property for almost $300,000, 97 Bill No. 990764 and it goes on the tax roles that day. And when you own a piece of real estate, that's just where the cost begin. We're going to have to go in immediately and start to do things to bring this building back to life. So I guess it weighs on our track record that we really wouldn't find it prudent not to have plan that isn't consistent with what the neighborhood wants and isn't viable or we'd lose money. I see your concern, what happens if our plan fails. That's the risk if we buy your building or the building next door, but it also goes to our track record. CHAIRWOMAN CLARK: I have some specific questions that might answer your concern, Mr. Rizzo. Mr. Nicoletti, will you describe the day care services that will be provided and identify the target beneficiaries?
Okay. Right now I use as a model, Madam Chair, the programs that we're working on right now. These are day care centers that provide extended hours which has become very popular because the targeted population, which are mothers that are involved with welfare-to-work programs that are able to get and secure positions 98 Bill No. 990764 that are after hours, late night jobs, and so forth, are frustrated trying to get day care providers that are open after o'clock. And we have two or three 5 organizations that we've than working with now that 6 are expanding that provided those type of services. With respect to other types of academic programs we're going to try to target for this building, there are job training programs that we're working on, one I'm very excited about in Councilwoman Miller's district which is a computer training company that wants to do more work. We're going to be starting something in her district for training programs for adults. These are funded through the Private Industry Council. These are established organizations looking for a home. Broad and Olney is a great spot because of all the public transportation that's up there. CHAIRWOMAN CLARK: How many days a week will these services be provided and approximately how many people will be cared for on a daily basis?
The building will be open, I would assume, during normal business hours. CHAIRWOMAN CLARK: What are normal day care business hours? 99 Bill No. 990764
Monday through Friday. The day care centers I've been involved with are open typically on Monday though Friday, but some of them do provide services on the weekend. If there's any other office space in the building, and I'm guessing now, I would assume that that space is going to be open Monday through Friday. But this will not be a high traffic building that would compromise the quality of life for the people that live in that neighborhood at night. This will not be a high-traffic building after hours. CHAIRWOMAN CLARK: How are the community residents who are in support of the proposed use, how do they feel? Do they have any concerns?
I think the greatest reservation they have they share what Councilman Rizzo, and that is, any reservations about will this project succeed. I mean, so many economic development projects rely on so many variables. We are a for-profit company that does not rely on public funding and we've reduced a lot of those variables under that type of scenario. I think we assured them enough that once we make a commitment to buy this building write that first check to 100 Bill No. 990764 purchase it, that there's all but very limited probability it won't succeed.
I think the other side of the coin, I'm concerned if it's too successful, that you have a demand for office space and then all of a sudden day care doesn't fit into the realm of things. What assurance do we have that this facility will eventually have a day care facility in it, that someone doesn't want space? How do we go forward knowing that there will be day care for a very long time in this building and that a person who wants to expand doesn't have the ability to bump the day care operation out of this?
That's a tough question. Right now there's a tremendous demand for day care. And times change. I don't know 10 years from now what the needs -- I would assume that this is something that's a staple in a community. It's like the dry cleaner and it's like the gas station. Day care, I'm going to assume, is going to be something in demand for a long time.
Could you explain to me your financial situation? What compensation do you get for placing day care into this facility? 101 Bill No. 990764 Tell me about that.
Councilman Rizzo, it's capitalism at its purest and simplest way to describe it. We buy a building, we investment money in renovating it, and we lease it, and we collect rent and we pay mortgage off with the rent.
But there's no 13 guarantee that if someone wants to pay more per square foot than the day care operation that they're history?
Well, that goes to the course of your professionalism in the business that you do. Our company for years has catered to small social service organizations. We rely on that. That's our bread and butter. And if tomorrow -- perfect example, we have a day care center in Germantown on Chelten Avenue that's operated by Resource Human Development, it's a head start day care center. They needed an extension for another year and we had two other day care companies that 102 Bill No. 990764 would have taken that space for more rent, but that would have jeopardized our relationship with that tenant and that would have sounded like a siren to our community of tenants that we're not responsible landlords.
I understand that. I appreciate hearing that from you, that you have a good reputation. But what can PIDC do to assure to me and, hopefully, the rest of the committee that -- how can you lock that in somehow?
Normally, when we can restrict the use of a property, it's through different financing that we provide to companies. In this case, we aren't providing any financing. I think because normally when a buyer is willing the pay the market value for a property, you have to reduce the market value if you start imposing restrictions. I don't know think we can require that a specific use be anywhere. I think the market has to determine that. I would only say that this is a three-story very presentable looking building at Broad and Olney, but there's been almost zero demand for it from the private market. There's been no office interest, not even a Rite Aid interest 103 Bill No. 990764 that I'm aware of or a drug store interest, which is unusual in any neighborhood of the City. It was a property that was occupied by the City and SEPTA for years. SEPTA had some transportation facilities in there. They did a clean-up of those facilities when they and moved out, but I think the advantages of putting this billing back to productive use for the developer who has a track record and can take people around the City and show things that he's built and that are working well and is willing to pay market value, I think given the history of the building and the long-term vacancy since the City stopped using it, I think it's something we should take the chance on. We can't guarantee anything, though.
Thank you, Madam Chair. CHAIRWOMAN CLARK: Are there other questions by other Members of the Committee?
I'd like to make a comment. CHAIRWOMAN CLARK: One comment by Councilwoman Miller.
Good afternoon. Thank you, Madam Chair. I just want to say that I 104 Bill No. 990764 think the proposed use is a good use at Broad and Olney. There are lots of people that travel through that particular part of Broad Street going both north and south, and a day care facility there will be greatly appreciated. Lots of people come, park their cars near the Broad and Olney subway station, near the Fern Rock Station. When I think about the fact that I was a young mother traveling with a child, a location like Broad and Olney for day care would be very excellent and very useful. Thank you. CHAIRWOMAN CLARK: Thank you. Are there persons in the room who wish to be heard to speak in favor of or against?
Madam Chair. CHAIRWOMAN CLARK: Councilwoman Blackwell.
Thank you. Once the Councilperson and the Committee agree on the project, certainly Mr. Nicoletti has done some work in my district and his work is excellent. Thank you. CHAIRWOMAN CLARK: Mr. Chapman.
Madam Chair, Members of the Committee. The Planning Commission at its 105 Bill No. 990768 meeting of November 18, 1999, considered Bill No. 3 990764 and recommended that it be approved. CHAIRWOMAN CLARK: Thank you. Are there persons who wish to be heard to speak in favor of or against this bill? There are no hands. Thank you very much. The Clerk will read the next to the last bill.
Bill No. 990768, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an agreement of lease with the African American Museum in Philadelphia for use by the African American Museum in Philadelphia of the premises located at 701-709 Arch Street, Philadelphia, Pennsylvania. CHAIRWOMAN CLARK: Commissioner.
Again, good afternoon, Chairwoman Clark and Members of the Committee. My name is Andres Perez, Commissioner of the Department of Public Property. I'm here speak on behalf of Bill No. 990768. This ordinance authorizes the Commissioner of Public Property on behalf of the City to enter into an agreement of lease with the 106 Bill No. 990768 African-American Museum for use by the African-American Museum in Philadelphia of the premises located 701-709 Arch Street. The bill will permit the City to execute a 29-year term lease for certain property located at 701 Arch Street. The African-American Museum will continue to be responsible for the maintenance of as well improvements to this space. The Department of Public Property supports the measure and accordingly ask that the City Council approve this bill and also ask that the rules be suspended so the ordinance may be passed upon second reading of Council. Thank you, and I'm available for questions. CHAIRWOMAN CLARK: Would you tell me how the African American Museum plans to use the additional land?
This is not actually additional land. We're formalizing what's been a less than formal relationship for many years. The building and land are owned by the City and have been for sometime. There's been a change of leadership at the Board of Directors level of the museum group and their preference is delineate role relationships with Public Property, again, with an 107 Bill No. 990769 interest in looking at outside fund-raising possibilities to improve, not only the building and building operations, but also their museum activity. And of course I'm very favorably in support of that in lieu of the existing undefined relationship. CHAIRWOMAN CLARK: Thank you. Are there questions from Members of the Committee with respect to the clarification of the document? Thank you very much. Is there anybody who wish to be heard to speak in favor of or against this bill? Thank you, Commissioner. We'll report it out with a favorable recommendation. The Clerk will read the next to the last one, honest.
Bill No. 990769, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, hereafter referred to as PAID, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon, situate at 1307-09 South Broad Street, under and subject to the terms and conditions of the 108 Bill No. 990769 Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation.
Good afternoon, Madam Chair. CHAIRWOMAN CLARK: Good afternoon, Mr. Deegan.
My name is Paul Deegan. I represent the Philadelphia Industrial Development Corporation and Philadelphia Authority for Industrial Development. This bill authorizes the City to convey an 8,800 square foot City-owned parking lot at 1307-09 South Broad Street to the Philadelphia Authority for Industrial Development. After conveyance to PAID, the property will be sold for fair market value to Ms. Mary DeStefano, the owner of Victor's Cafe, a restaurant located at 1305 Dickinson Street. Ms. DeStefano intends to use the lot for parking for restaurant patrons. The property was acquired in 1964 for parking purposes. The lot is one of many small parking lots developed by the City in the sixties and seventies. Generally, these lots have not been maintained and have become maintenance and security 109 Bill No. 990769 liabilities for the City. This lot has also been declared surplus by the City's Department of Public Property. Sales price of the property will be in the neighborhood of $70,000. I haven't gotten the final appraisals in yet, but it looks like it's going to be about $70,0000 based on two independent real estate appraisals. And the net proceeds from the sale will be deposited in the City's General Fund. I ask that the Committee consider the bill favorably and that the rules of Council be suspended to permit first reading at the next meeting of Council. Thank you, Madam Chair. CHAIRWOMAN CLARK: Thank you. Mr. Chapman.
Madam Chair, Members of the Committee, once again, for the City Planning Commission my name is Thomas Chapman. The Planning Commission at its meeting of November 18, 1999, considered Bill No. 990769 and recommended that it be approved. Thank you. CHAIRWOMAN CLARK: Thank you. CHAIRWOMAN CLARK: Are there questions? 110 Bill No. 990769 Comments? Thank you.
Can I say one thing, Madam Chair, not to take up your time, but I think that's the last bit of testimony I'll be giving before the Public Property Committee chaired by Councilwoman Augusta Clark. I'd like to thank you and your staff and the other Members of the Committee. It's been a pleasure coming over here. You've always been very fair and you've asked good questions and protected the interest of the City. And I hope that you're not going t disappear. I hope I will continue to see you in some prominent position in public life and helping the City of Philadelphia grow as you have for the last years. 16 CHAIRWOMAN CLARK: Thank you so much. 17
I personally appreciate it. 18 It's always been great coming over here. 19 CHAIRWOMAN CLARK: I can't tell how it 20 warms my heart to hear you say those nice words. I thank you. Even when we keep you this late.
This isn't too bad. I think w've had some nighttime sessions, too, haven't we? CHAIRWOMAN CLARK: We've had some 111 Bill No. 990769 nighttime sessions, we surely have. Thank you again. Your words are very kind.
Madam Chair, I'd also like to echo Mr. Deegan's comments. I think I complimented you at the last hearing that we had, not knowing whether I'd be able to attend this hearing. And again, I would like to thank you for the way that you've conducted these hearings and tell to you personally I've always appreciated the way that I've been treated by you and this Committee over the years. Thank you very much. CHAIRWOMAN CLARK: Thank you. I greatly appreciate those kind words. We have tried to make this job efficient and fun. Sometimes we haven't been so successful, but we were always trying. And you guys come here prepared and ready, and I appreciate having had the opportunity to work with you and for you and I wish you Godspeed. CHAIRWOMAN CLARK: This my absolute last one. Scout's honor.
Bill No. 990770, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the 112 Bill No. 990770 Philadelphia Authority for Industrial Development for use by the City and affiliated agencies of office space located at 1401 Arch Street, Philadelphia, Pennsylvania, under certain terms and conditions. CHAIRWOMAN CLARK: Commissioner.
Good afternoon. Again, commissioner Andres Perez, Department of Public Property here to speak in support of Bill No. 11 990770. This ordinance authorizes the Commissioner of Public Property to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City and affiliated agencies of office space located at 1401 Arch Street, under certain terms and conditions. The bill will permit the City to enter into a sublease with a 10-year term for certain property located 1401 Arch Street, 7th floor to coincide with the current District Attorney's lease at 1425 Arch Street. As a result, the District Attorney's Office will not have to relocate or renegotiate in order to remain on the premises if the building is sold. The department of Public Property supports the measure and respectfully ask that the Committee approve this 113 Bill No. 990770 bill and also ask that the rules be suspended so that the ordinance may be passed upon the second reading at Council. Thank you and I'm available for questions. CHAIRWOMAN CLARK: Thank you very much. Are there questions of this witness? Thank you, Commissioner.
Thank you. CHAIRWOMAN CLARK: The chair calls on Councilwoman Blackwell.
Madam Chair, I move that we recess the public hearing and enter into the public meeting and we will recess until tomorrow, December 8 at 3:00 p.m. and meanwhile that we enter into our public hearing. (Duly seconded.) CHAIRWOMAN CLARK: All in favor that this Committee be recessed until Wednesday December 8 at 3:00 p.m. say aye. Opposes, nay. It is so ordered that this committee hearing is recessed until 3:00 tomorrow which is Wednesday, December 8, 1999. - - - 114 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Tuesday, December 7, 1999 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL NOS. 980889, 980894, 990671, 990722, 990753, 990755, 990759, 990764, 990767, 990768, 990769, 990770, 990838, 990842, 990843, 990850, 990350, 990566 - - - PRESENT: COUNCILWOMAN AUGUSTA CLARK, Chairwoman COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN JAMES KENNEY COUNCILWOMAN DONNA REED-MILLER COUNCILMAN MICHAEL NUTTER COUNCILMAN BRIAN O'NEILL COUNCILMAN ANGEL ORTIZ COUNCILMAN FRANK RIZZO, JR. - - - 115 Public Meeting CHAIRWOMAN CLARK: Now the public meeting open. I'm going to take a prerogative of the Chair and ask Councilwoman Blackwell if she will call up the bill on the Reliance building.
Madam Chairwoman, I move that Bill 990850 be reported out of Committee with a favorable recommendation and a move for suspension of the rules so that it may be heard at our next session of Council. (Duly seconded.) CHAIRWOMAN CLARK: It's been properly moved and seconded that Bill No. 990850 be reported out of this Committee with a favorable recommendation and that the Rules of Council be suspended so as to permit first consideration at the next stated meeting of Council. All in favor say aye. Opposes, nay. So ordered. Thank you very much. Now, Members of my Committee, with your permission, could we do a consent or does anybody insist that each bill be heard separately?
I've got one bill 116 Public Meeting that needs to be amended. CHAIRWOMAN CLARK: Let's do the amendments first.
Thank you. CHAIRWOMAN CLARK: Pull up those bills that need to be amended. We'll amend them and then we'll do them all by consent, recognizing that the museum bill has been done. The Chair recognizes Councilman Michael Nutter.
Madam Chair, I move the adoption of the amendments as read into the record in the public hearing on Bill No. 990566. (Duly seconded.) CHAIRWOMAN CLARK: All in favor? Opposes? Then Bill No. 990566 has been amended.
Madam Chair, I move that Bill 990566, as amended, be reported out of this Committee with a favorable recommendation and a further recommendation that the Rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) 117 Public Meeting CHAIRWOMAN CLARK: All in favor? Then Bill No. 990566, as amended, will be reported out of this Committee with a favorable recommendation, with a further recommendation that the Rules of Council be suspended so as to permit first consideration at the next stated meeting of Council. All in favor? Opposed? So ordered. Another amendment, Mr. Nutter? Is there anything else that needs to be amended?
Madam Chair, I move that Bill 990767 be amended to incorporate in a new description of parcel, document dated December 3, 1999, as handed up to the committee during the public hearing. (Duly seconded.) CHAIRWOMAN CLARK: All in favor? Opposes? Then Bill No. 990767 has been amended by substituting a new and corrected document to correct scrivener's error in its previous form.
Madam Chair, I move 118 Public Meeting that Bill 990767, as amended, be reported out of this committee with a favorable recommendation and further recommendation that the Rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) CHAIRWOMAN CLARK: All in favor? Opposes, nay. There are no option votes, therefore, 990767, as amended, is reported out of this Committee with a favorable recommendation and the Rules are suspended so as to permit consideration at the next stated session of Council. All in favor? Opposed? So ordered.
Madam Chair, I move that Bill 990753 be amended to incorporate the amendments as read into the record by Public Property Commissioner Perez during the public hearing. (Duly seconded.) CHAIRWOMAN CLARK: All in favor say aye. Opposes, nay. 119 Public Meeting Then Bill No. 990753 has been amended.
Madam Chair, I move that Bill 990753, as amended, be reported out of this committee with a favorable recommendation and further recommendation that the Rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) CHAIRWOMAN CLARK: All in favor? Opposes? Then Bill No. 990753, as amended, is reported out of this Committee with a favorable recommendation with the recommendation that Rules of Council be suspended so as to permit first consideration at our next stated meeting of Council. All in favor? Opposes, nay. So ordered.
Madam Chair, I move that Bills 980894, 990671, 990722, 990755, 990759, 990764, 990768, 990769, 990770, and 990350 all be reported out this committee with a favorable recommendation and a further recommendation that the Rules of Council be suspended so as to permit first 120 Public Meeting reading at our next session. (Duly seconded.) CHAIRWOMAN CLARK: All in favor, say aye. Opposes, nay. It is so ordered. Those bills which have been read will be reported out of this Committee with a favorable recommendation and the rules have been suspended so as to permit first reading at our next stated meeting of Council. I thank you all for your patience. Remember that this Committee has been recessed until tomorrow, Wednesday, December 8 at 3:00 p.m. at this room. I thank you again for your patience. (Council adjourned at 3:55 p.m.) - - - 121 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of December 7, 1999, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ___________________________ Lisa C. Bradley, RPR and Notary Public