COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON PUBLIC PROPERTY AND3 PUBLIC WORKS4 5 6 Room 400, City Hall7 Philadelphia, Pennsylvania Thursday, June 9, 20118 9:30 a.m. 9 10 PRESENT: COUNCILMAN DARRELL CLARKE, CHAIR11 COUNCILMAN WILLIAM K. GREENLEE COUNCILMAN JAMES KENNEY12 COUNCILMAN FRANK RIZZO, JR. 13 BILL 110369 - An ordinance authorizing the14 Philadelphia Authority for Industrial Development (PAID) to purchase approximately15 twenty-eight acres of land situate on the west side of the Schuylkill River between 56th and16 58th Streets... 17 - - -18 19 20 21 22 23 24 25 2 1
Good2 morning. This is the Committee of Public3 Property and Public Works. Good morning,4 everyone.5 Mr. Carter, please read the6 title of the first bill.7
Bill No. 110369, an8 ordinance authorizing the Philadelphia9 Authority for Industrial Development10 (PAID) to purchase approximately11 twenty-eight acres of land situate on the12 west side of the Schuylkill River between13 56th and 58th Streets, under and subject14 to certain terms and conditions of the15 Philadelphia Industrial and Commercial16 Development Agreement among the City,17 PAID, and the Philadelphia Industrial18 Development Corporation.19
Let the20 record reflect we have established a21 quorum: Councilman Rizzo, Councilman22 Greenlee and Councilman Kenney.23 Please proceed.24 (Witnesses approached witness25 3 6/9/11 - PUBLIC PROPERTY - BILL 1103691 table.)2
Good morning,3 Mr. Chairman and members of the4 Committee. My name is Thomas Dalfo and I5 represent the Philadelphia Industrial6 Development Corporation and the7 Philadelphia Authority for Industrial8 Development. I am here to testify in9 support of Bill No. 110369.10 This bill authorizes PAID to11 purchase an approximately 28-acre12 property located on the west side of the13 Schuylkill River between 56th and 58th14 Streets in Southwest Philadelphia for a15 consideration not to exceed $3.5 million.16 After acquisition by PAID, we will market17 the property to private companies for18 industrial development.19 This site is an attractive20 location for modern industrial21 development in that it is large,22 approximately 28 acres, and zoned for23 industrial use. The site is minutes from24 the Airport, I-95 and I-76, and is25 4 6/9/11 - PUBLIC PROPERTY - BILL 1103691 serviced by rail, which provides2 excellent infrastructure for future users3 of the site. Sites which possess these4 characteristics are extremely difficult5 to find in the City. We've been looking6 for quite a long time.7 This lack of marketable8 industrial properties greatly limits9 Philadelphia's ability to attract and10 retain industrial companies and the11 employment opportunities they represent12 for residents.13 The purchase price is the14 amount negotiated with the property owner15 and is supported by an appraisal of the16 site. The current owner of the parcel,17 Westrum SRA, has agreed to sell the site18 to PAID.19 The cost of this acquisition20 will be paid from the Industrial and21 Commercial Revolving Fund land bank.22 I would ask that the Committee23 consider this bill favorably and that the24 rules of Council be suspended to permit25 5 6/9/11 - PUBLIC PROPERTY - BILL 1103691 first reading at the next regularly2 scheduled meeting of Council.3 Thank you for the opportunity4 to testify. I'll be happy to answer any5 questions you may have.6
Thank you.7 I'm all for and extremely8 supportive of acquiring parcels to9 position ourselves to create additional10 opportunities or maintain opportunities.11 Is there any particular new entity12 interested in moving into the site or13 developing on the site or is this a14 speculative transaction?15
At this point, it's16 really looking to replenish the17 industrial inventory that we have. The18 site needs some infrastructure19 improvements and it needs some cleanup.20 We're pursuing some grant dollars from21 the state to do that. So it's not really22 a site in the market that would be, I23 think, attractive at this point. We'll24 clean it up and have it better25 6 6/9/11 - PUBLIC PROPERTY - BILL 1103691 positioned, and then we'll market it for2 private users, and at that point, we3 would expect something like a4 distribution center, something that would5 need some scale on a site like this.6
Is this a7 policy of the, I guess, the8 Administration or simply PIDC? One of9 the reasons I ask this question, in10 another department within the government11 we were working on an NTI acquisition12 strategy and the policy position was that13 the City was not going to essentially14 land bank or acquire parcels unless there15 was either a strong likelihood of a16 funded development or a development that17 is in fact funded. Other than that,18 there was no interest in acquiring sites.19 I understand that was primarily for20 housing, but I'm just -- is it a21 different policy for industrial sites?22
I think it's a23 different policy. I can't speak for the24 Administration per se, but the industrial25 7 6/9/11 - PUBLIC PROPERTY - BILL 1103691 inventory of land is one where it's been2 diminished because we've had a pretty3 good amount of success over the past 104 or 15 years selling property. So our5 inventory of land that would be6 attractive and in a position to market to7 companies that are looking to locate in8 the region or expand within the City is9 pretty limited. And so we find it's10 important to have that type of inventory11 available, so when an opportunity arises,12 by having the control, the ownership13 control, we can pursue a project more14 aggressively and more credibly. When we15 talk to industrial companies who are16 looking at a site, we say, Well, here's a17 site we don't have an ownership interest18 in, but we'll get that, they tend to lose19 interest pretty quickly.20
I actually21 am supportive of that particular policy.22
Any24 questions by members of the Committee?25 8 6/9/11 - PUBLIC PROPERTY - BILL 1103691 Councilman Kenney.2
Our number is10 subject to certain environmental11 conditions and how they're paid for.12
Anyone else25 9 6/9/11 - PUBLIC PROPERTY - BILL 1103691 to testify on this bill?2 (No response.)3
There being4 none, this concludes the public hearing5 on Bill No. 110369. We will now go into6 the public meeting.7 Councilman Kenney.8
Thank you,9 Mr. Chairman. I move that Bill No.10 110369 be reported out of this Committee11 favorably and a request made for rules12 suspension to allow for first reading13 today at our Council session.14 (Duly seconded.)15
It's been16 moved and seconded.17 Those in favor?18 (Aye.)19
The ayes23 have it. Bill No. 110369 is reported out24 of Committee with a favorable25 10 6/9/11 - PUBLIC PROPERTY - BILL 1103691 recommendation with rules suspension as2 to allow reading at the next session of3 Council.4 Thank you very much. This5 concludes the public meeting.6 (Committee on Public Property7 and Public Works concluded at 9:35 a.m.)8 - - -9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on June 9, 2011, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25