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Minutes

Committee Hearing, December 4, 2000

Philadelphia City Council Committee HearingsDec 4, 2000

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

Ms. Breen

There are lots and lots and lots and lots of other places where this money could go, where it would be better spent. I have a couple of examples. In this city, there are thousands and thousands of people that are suffering with AIDS, for example, or HIV-related illnesses. They need care, they need meals delivered to them, they need companions, they need education, they need medication. And to me, that is the place where taxpayers' money should go. The police officers who serve this city bravely every single day, many of them are not given bulletproof vests to wear on a daily basis, and they come out every day -- is that true?

Council President Verna

Not that we're aware of.

Ms. Breen

It is? Okay, forgive me, forgive me.

Council President Verna

Please proceed. 109 /00 - WHOLE - BILL 2

Ms. Breen

Okay. We could clean up the streets, remove debris from the streets. We could create more parks for our children to play in, we could create better after-school programs or more after-school programs. We could knock down the abandoned buildings. We could help people that have mental illness and counseling for people who can't afford it. We could spend the money on museums. There's an endless number of areas where this money could go, and I think you realize this. But let me just talk about really what I know best, and that is the situation in the Philadelphia public schools. I'm going to tell you a couple of anecdotes that will maybe give you more of a taste of how -- of what the dire need is in the schools. Example number one. Two years ago, I had a student who, I noticed he would come in into class every day, he would sit in the back, he was very quiet, a very nice young man, a Muslim young man. He was very quiet and very well-spoken, a very pleasant young man. But he would sit and he would never do the work. He'd take out his paper, 110 /00 - WHOLE - BILL 2 he would take out a pen, never do the work. So, finally -- I mean, this was my first year as a teacher at William Penn -- I went and started to talk to him and I realized that he was having trouble as a 9th-grader reading. And I tried to give him some tutoring after school, unpaid. It didn't seem to help. But I didn't even realize the magnitude of his handicap until, one day, we were doing a lab. And in the lab -- it was a very simple lab -- they had to weigh different objects on a scale and write down the weights just to learn how to use the scale. And he had copied the list items from the board onto his paper and had copied them correctly. And I went back there and he didn't seem to know what to do. 9 grams. 9 grams. He could not find the words "wooden blocks" on his own paper that he had written, out of a list of about ten things. And if this were an isolated incident, it would be different. But in my three years at 111 /00 - WHOLE - BILL 2 William Penn, I'm sure that I have come across at least 60 to 80 students that have reading problems that severe. Now, with all of these students, particularly in the first year, I was very -- kind of militant about trying to get them help. I wrote letters to their counselor, I called their homes, I did everything that I could to try to help them. And the counselors would do their job; they would bring the student in to speak to them, they would have them tested. And time and time again, these students would be tested, and it would show that they had a 4th-grade reading level, a 3rd-grade reading level, but then nothing else would be done. At William Penn, a school of 2200 kids, where I would say at least percent, 30 percent 19 have severe reading difficulties, last year, we 20 had two reading specialists, this year, we have one, to service that entire population. And it's just -- it's, you know, it's unbelievable to me that any responsible citizen, not to mention legislator, that knows this fact, and perhaps you are not aware of these facts, 112 /00 - WHOLE - BILL 2 could even consider to take one single dollar and give it to the Eagles or to the Phillies, as wonderful as they are, because these kids need help and they are not getting the help that they need. Another example at Fitler Elementary School, where my friend's children go, the teacher in the 4th grade classroom actually sent home letters to the parents requesting that the parents send in crayons, pencils, construction paper, rulers, and different things that they needed for the classroom, because they were not available. Another example. In the whole school William Penn, there are, I think, 5 counselors for 2200 kids, and you got to understand the magnitude of the baggage that these kids come to school with every day. I have had at least 15 to 20 of my 9th-graders that I knew of that are mothers, 14 and 15-year-olds.

Ms. Breen

I have children that come from -- I mean, it's not the exception, it's the rule that they come from single-parent homes. Parents that are alcoholics, parents that are drug addicts, parents that are in jail. They come to school every day with huge amounts of baggage. 113 /00 - WHOLE - BILL 2 With 5 counselors to service a population of 2200 children, even if the counselors were seeing kids every minute of the day and gave them each five minutes a day, you know, they probably go the whole year without seeing everybody. The need in the public schools is critical. The need in the public schools is critical, and I just can't even explain enough. One last example. This summer, I taught summer school, and these were for, you know, kids that had failed their classes during the year. The program was extremely disorganized, they didn't know who the teachers were going to be before they started, they didn't have textbooks for us to use for the programs. We got to the orientation as teachers, and they told us that they had absolutely no supplies for us -- no 20 paper, no posterboard, no pencils, nothing. They sat there in front of us and kind of laughed, like it was funny somehow. They had no paper for us for the entire summer school program. And all I can say is that this is the rule and not the exception. And there is 114 /00 - WHOLE - BILL 2 absolutely no excuse, there is no justification to even give one dollar to the stadiums and give one dollar to a corporation that can afford to pay its own way. )

Ms. Breen

And in closing, I'd just like to say that I know that at this stage that it's going to be very difficult to stop this process that has been set in motion. Lots of promises have been made, money has been spent, and the momentum to follow this through is very strong. But I'm going to address this to all of the City Councilmembers here, and I'm going to address this to you personally. I know that the decisions that you make are very difficult and that you have to weigh, you know, many different sides of an argument, many different people's opinions and many different needs. But when you -- when it comes down to it and you make the decision as to how much money the citizens of the City of Philadelphia are going to have to pay for this stadium, I want you to think about the reasons why you went into public 115 /00 - WHOLE - BILL 2 service. And, you know, I know here it is, in a situation with lots of political pressure, lots of things pulling and tugging at your, you know, at your decisions. But I want you to think, and I want you to think about years later, once you've left public service, will you be proud of your own decisions that you've made on these days? Will you be proud of a decision to hand over $304 million to the Eagles and the Phillies? Or will you will you be ashamed of that decision? Or what will your children and your grandchildren and your great-grandchildren say to you if they know that you were the cause of the number of school buildings in the City being doubled, the number of the teachers in the City being tripled, and the end to illiteracy of high school graduates?

Council President Verna

Councilman Cohen, Councilman Cohen? I notice your light is on. Did you want to make a comment or ask a question?

Councilman Cohen

No, I -- thank you, Madam President. As horrible as the picture is as 116 /00 - WHOLE - BILL 2 depicted by this teacher, I have to tell her, it is more than three times worse. It is not $304 million of public money; it's at least a billion dollars of public money over the 30 years. It's 304 by the City's estimate; it may prove to be much more than (unintelligible) dollars for separate items. And then every year for the next 30 years, there is an expenditure of approximately $25 million a year on debt service, all from tax funds. It's somewhere in the neighborhood of a little under or a little over a billion, not a million, a billion dollars, provided the estimates of the City are correct. But, you know, the City only gives you the easy figures.

Councilman Cohen

The fact is that the amounts of money the City has assigned to different parts of the project have no bearing to reality. History tells us that when a city like Philadelphia says, We're putting aside $95 million for site acquisition, for land acquisition, the figure always turns out to be at least double that. And that's true of every item that's 117 /00 - WHOLE - BILL 2 projected, so that the loss of the tax funds for this project is going to be far beyond anything you can conceive of. So I just want you to know that while you depicted very beautifully the real problems we have and what ought to be the basis of our decisions, it's even much worse than your worst nightmare. Thank you.

Ms. Breen

Thank you. Please do the right thing.

Council President Verna

Thank you so much for coming in to testify. Our next witness is Saul Haas (ph). (Witnesses comes forward.)

Council President Verna

Good evening. Please identify yourself for the record.

Mr. Haas

My name is Saul Haas. I'm a retired teacher and also a retired businessman. And my wife.

Mrs. Haas

Evelyn Haas.

Mr. Haas

I've been through the evening's discussions, and I can't believe that we can do anything more tonight than to urge that the 118 /00 - WHOLE - BILL 2 stadium issue be floored for the time being. And I'd like to explain why. The young lady that spoke just a few minutes ago painted a bleak picture, but let me add to that bleak picture an even more stark, real situation. Several years ago, we had a very serious fire at the Stoddard Fleischer Junior High School, where I taught. What was the reason for it? There were safety units on the doors that were not there, they were not there. People would come in, and you never saw anything like what took place. Kids ran in, threw garbage all over the place, opened the doors of the classrooms, closed the doors, ran wild. That's only a part of it. The other part of it is, they had a major fire in which the City of Philadelphia lost $1 million because they didn't put the safety bars on the doors. We're in a similar situation today, where we're asking a great deal of funds for a number of very different very vital areas of concern: the schools, the libraries, there's a question about prisons, there's a question about transportation. You name it, you have it. You have it here on your own record. 119 /00 - WHOLE - BILL 2 Now, my suggestion is that you call in the trade union members that are protesting to have a stadium put in place, take the members of City Council and the members of the Board of Education -- I'm not talking about teachers now; I'm talking about Board of Education -- and make a survey into not necessarily a school like where I live or a school like maybe where some of the Councilpeople live, but into the inner-city schools. Take 'em into the bathrooms; it's a stinking outrage when you walk in there. You go look for a place for the kids to play, like at Stoddard Fleischer. They have no playground. You go into an area such as where I live, beautiful, beautiful playgrounds, all kinds of facilities. Kids in the inner-city see this and they're sensitized to it. And a specific example of what I'm referring to is in a class that I was teaching, we were urged to discuss with the children, the 9th grade, what would you like to do to do when you get out of school? One kid, very intelligent kid, stands up and he says, "I want to be a pimp." 120 /00 - WHOLE - BILL 2 (Laughter.)

Mr. Haas

Why do you want to be a pimp? Now, this is in the inner-city that we're talking about. 'Cause that's where you can make money, okay? Now, this is what we're fostering in the schools, because kids don't have the opportunity. When you show them that you are interested in the kids, they will give you more than what you give them. And I experienced it. I, a white teacher in largely a black school. The kids would come up to me -- one child, the first day of my return to teaching, turns to me and says, "Oh, Whitie, you're not going to learn anything, not from him." Six weeks later, she called out in class and she said, "Mr. Haas," she says, "You think like we do, you think black." Now, we got along fine. The big problem is, will City Council think like the people who are who they represent? Thank you.

Council President Verna

Thank you very much. (Applause.) 121 /00 - WHOLE - BILL 2

Council President Verna

Identify yourself for the record please.

Mrs. Haas

Okay. Evelyn Haas. I'm not going to waste everybody's time by reiterating all the things that I think money should be spent on instead of stadiums. I just want to say very briefly two things. First of all, I have read several studies that have shown that in a city where there's a stadium, the income goes down, not up. The other is a experience I had with my grandson when he was a baby. I took him to a playground, put him in a child swing that's supposed to have a bar in front of it to secure the child. Of the five swings, three of them were broken so that a child could fall out. I called three departments at City Hall, reported it, and nothing was done. So that's one small example of where money could be spent. Thank you.

Council President Verna

Thank you for coming in. Thank you so much. (Applause.)

Council President Verna

Our next 122 /00 - WHOLE - BILL 2 witness?

Mr. Mcpherson

Michael McGettigan. (Witness comes forward.)

Council President Verna

Good evening. Thank you for your patience.

Mr. Mcgettigan

Yes, thank you for having me here.

Councilwoman Verna

Thank you for waiting.

Mr. Mcgettigan

Okay, yes, for the record, my name is Michael McGettigan. I was born and raised in Philadelphia, as was my dad and grand-dad, and I hope to live here all my life. And my stake in this is, I have a four-and-a-half-year-old boy, so education is something I'm thinking about. I'm also an Old City business owner, and I know from taxes. This year, I increased my sales $100,000. My accountant said to me, Good job, you make 100,000 more in sales in 2001, and you will be able to pay all of your taxes and keep the lights on. That's my goal. If I don't meet it, I will pay my taxes and fold, but that's what's going to happen, so I know from taxes. 123 /00 - WHOLE - BILL 2 One thing I notice looking around this room, it's a very beautiful room here. My understanding is it was a union job, and I see there's a lot of union guys here that have a stake in things. (Applause.)

Mr. Mcgettigan

There's also going up around Spruce Street, there's a building for the local band going up, the Orchestra Hall, and that's a beautiful job. And I'm sure the City Council does a better job in here, goes about their business better in this beautiful room, the orchestra is going to do better in a beautiful room, and I think our sport teams will do better in a beautiful stadium. (Applause.)

Mr. Mcgettigan

Which brings me to -- by the way, you guys, most of the guys up there, you rent or own your place you live? Gotta own it, lot of owners? A lot of homeowners? Okay, we'll get back to that. But that brings me back around to, I gotta say that I think my son, Andy, will do a better job in a good-looking school, and if we cut 124 /00 - WHOLE - BILL 2 a tough deal on the stadiums and get some millions left over, maybe some of you guys will bring your skills in and help our schools look a little better too, 'cause they need some union work, okay? (Applause.)

Mr. Mcgettigan

Now my suggestion. Forbes Magazine said that the Eagles were worth $318 million in 1999. They also said the Phillies were worth $143 million in 1999. Those figures aren't even that big compared to $31 million a year that we're going to be kicking in for 30 years. In other words, maybe we should be buying those teams, which is my suggestion. (Applause.)

Mr. Mcgettigan

The City's going to give 31 million a year, according to the Daily News, for the next 30 years. In return, we get about 6 million a year for the Children's Fund and $159 million a year over the next 30 years, if everything goes like clockwork. We also get the civic pride and the national recognition that hosting major league teams provide, but we need and deserve one more thing: a share of the 125 /00 - WHOLE - BILL 2 ownership. In America, when you give money to a business to help 'em, you generally get a piece of that business. (Applause.)

Mr. Mcgettigan

Philadelphia is the place where the phrase "no taxation without representation" came to life. Our taxes are being given to a pair of businesses. Shouldn't our millions buy us some degree of ownership? The Eagles were purchased for $185 million, the Phillies for 30 million. We are spending 30-plus million a year and getting nothing, except the promise to pay more if the profits don't work out for those teams. Now, I know you'll pass this on for me, City Council, but I'm speaking to the team-owners now. We don't even want 51 percent, we don't even expect 49 percent, but to ask us to give millions and get no share of ownership is a handout. When I was growing up, I was told, You don't take money and give nothing in return. Don't ask us for a handout, offer us a buy-in. That would mean a share of ownership and City representation on the boards of both teams, at minimum. 126 /00 - WHOLE - BILL 2 Now, I don't think that's that outlandish. I know it will be complicated, but last time I looked, Philadelphia's packed with lawyers who would love to work the deal out for you. You know, there's even some lawyers on Council, okay? (Applause.)

Mr. Mcgettigan

Another thing I learned growing up -- anybody that wears glasses might recognize this gesture when you take your glasses off, growing up. What's that mean? That means you're ready to fight, that means you're ready to fight for the City's bucks. Right now, City Council has its glasses sitting square on its face, hands in its pockets, and looking at its shoes. Go back and tell these people you're going to fight for some of these millions. (Applause.)

Mr. Mcgettigan

Last paragraph, I'm finishing up. Take your glasses off and fight a little. Right now, it's like, Oh, we can't do anything, they're going to charge us 80 million, you know. Fight for the bucks, we're paying 'em. We ask you guys to fight, we know you like to 127 /00 - WHOLE - BILL 2 fight; I saw that on Saturday. (Laughter.)

Mr. Mcgettigan

City Council, here's the question: Please approve the stadium build, with the proviso worked out with the help of the many, many lawyers at your command, with the proviso that our taxpayers' money purchases a share of ownership. Let's make Philadelphia the home of these two great teams for all times. Let's not rent; let's own. (Applause.)

Council President Verna

Thank you very much. Our next witness?

Mr. Mcpherson

Jean Allen. Jean Allen. (Witness comes forward.)

Ms. Allen

I am Jean Allen. Teach in the Department of Film and Media Arts at Temple University, but I'm not speaking to you in the capacity of an academic professor tonight; I'm speaking to you in the capacity of a person whose friends work in the public schools and social service organizations throughout the City. 128 /00 - WHOLE - BILL 2 Some of these friends seriously ponder whether they can return to work the next day to conditions for children who are so grossly neglected in the City that nervous breakdowns are not unthinkable. I think the gentleman who just spoke makes his point extremely well. My point is simply this: Before commercial sports, the children are first.

Council President Verna

Thank you. (Applause.)

Mr. Mcpherson

The next witness is Adam Diamond? (No response.)

Council President Verna

Is Adam Diamond here? (No response.)

Mr. Mcpherson

John Hogan. (Witness comes forward.)

Mr. Mcpherson

Would you please identify yourself for the record.

Mr. Hogan

My name is John Hogan. I'm the Co-Chair of the Greater Philadelphia Chapter 24 of the Democratic Socialists of America. Thank you, Madam Chair, and thanks to 129 /00 - WHOLE - BILL 2 the Councilmembers who've hung in here this evening, and a special thanks to President Verna's staff who've organized these hearings and put in such hard work and patience. You folks rule. Normally, we're in favor of public investment and even public subsidy, where genuine and lasting public good will be produced, but we don't believe that is the case here, at least not as far as we know, since Council is, in effect, being asked to sign a blank check on the stadium deals. We don't though know yet what the cost will be, nor what the returns will be. We have rosy projections from the teams and the City, with some highly improbable assumptions built into them. Socialists have a reputation as naive Utopian idealists, so we find it strange to hear businessmen and Councilmembers talking about the boa effect, a sudden interest in professional soccer and 30 more years of economic expansion, as if such things were at all likely. We have our hopes, but it seems there's no optimist as wild-eyed as a businessman trying to get money from the City of Philadelphia, except 130 /00 - WHOLE - BILL 2 maybe a mayor trying to give it to him. (Applause.)

Mr. Hogan

And it's not as if we even pretend to have lots of money to throw around. This is a city that has spent the better part of the year playing serious hardball with its employees' health benefits, including a lawsuit intended to overturn an arbitration award to the firefighters. Let me repeat that. A lawsuit intended to overturn a binding arbitration award to the firefighters. This is an administration that thinks $60 million to fix up the Central Library, along with another 60 million in private money, is too big an investment, but this same administration can't move fast enough to spend a billion dollars-plus to enrich privately-held businesses that already have a market value of over 100 million dollars. Similar deals in recent years have done nothing to stem the loss of population and jobs that Philadelphia continues to suffer, just as the Camden Yards project did nothing to stop, or even slow down, Baltimore's decline. 131 /00 - WHOLE - BILL 2 In fact, I challenge you to find one City resident who moved to the suburbs because Veterans Stadium is a lousy facility. Veterans Stadium is a lousy facility, but that really isn't the problem, and this deal does nothing to address the real problems -- above all, the City tax burden and the condition of the public school system. The same amount of money put into improving the City's schools would go much farther toward making Philadelphia attractive to both residents and employers, and it would create construction jobs for those who find that more important than anything else. The same amount of money put toward attracting high-tech or light-manufacturing enterprises would go farther toward building a sustainable highway to local economy than the continued emphasis on entertainment and tourism. Speaking of which, I urge you to recall the City's last deal of the century. Not that long ago, I attended a press conference on the second floor of this building, where then-Mayor Ed Rendell, along with Goofy, announced the launching 132 /00 - WHOLE - BILL 2 of the DisneyQuest project, which was going to bring good jobs and booming tourism business to East Market Street. We spent $65 million on that project and got a great big hole in the ground that's not making anyone a dime. It was only after the City invested our money that we learned that people who invest their own money, including Disney itself, couldn't find a pole long enough to touch that deal with. That should have been a signal, but apparently, we didn't get it in time. Philadelphia taxpayers can't afford any more physical or fiscal holes in the grounds, and there are good reasons to think that this deal will dig a big one. It would be irresponsible for City Council to sign this blank check. I ask you to treat our money as if it were your own, to check out investments like this as if you were the investor. That's what we hired you for. Thank you. (Applause.)

Councilwoman Blackwell

Thank you very much. Thank you.

Mr. Mcpherson

The next witness is 133 /00 - WHOLE - BILL 2 Tina Nelsen from CEPA. (Witness comes forward.)

Ms. Nelsen

My name's Tina Nelsen. I'm the Executive Director of CEPA, the Consumer Education and Protective Association. We urge the Council to reject the Administration's attempt to force the taxpayers to pay an unknown amount for an unnecessary luxury that will force the City to exceed its debt-ratio limit. In addition, passing this lease will violate the City's Home Rule Charter. City Council is being asked to approve a lease agreement that, in effect, has no terms. The lease states, "Key terms of this agreement are subject to change due to finalization of the transactions and funding structures, as well as the requirements of the State and local law and the requirements of the State-exempt financing." No Councilperson would ever sign such a lease for a home or recommend that one of their constituents sign such a lease. Why would anyone of you vote to burden the entire City with this lease for what amounts to be the largest public works project in the history of Philadelphia? 134 /00 - WHOLE - BILL 2 And even the little we do know argues against voting for this Pandora's Box. We do know that the stadiums are a luxury, not a necessity. And the City of Philadelphia is burdened with problems that are far greater than an uncomfortable, imperfect stadium. If the Council wants to create a special tax for special needs, it should be taxed -- a tax dedicated to fixing up the broken-down housing, lowering the class size in our over- crowded schools, fixing the decaying library, and providing the services the citizens of Philadelphia need. Only when the poverty rate in the City of Philadelphia is well below the national average, housing and utility bills are affordable, and our class size is well below average should Council even consider investing in these stadiums. Why should the City pay for a luxury before they pay for the basic necessities of life? Even if, for some misguided reason, you want to support the bills, you should realize that if passed in their current state, they will 135 /00 - WHOLE - BILL 2 violate Section 12 of the Pennsylvania State Constitution and Section 2-201 of the Home Rule Charter. Section 12 of the Pennsylvania Constitution limits the amount of the debt that the City may undertake to 13.5 percent of assessed valuation of the City's real estate, unless the public referendum allows the City to increase its debt. Approving this lease will clearly and unequivocally increase the City's debt beyond the constitutional limit. Section 2-309 of the Home Rule Charter mandates that meaningful public hearings on bills be held. Holding hearings on bills while withholding the terms to the lease makes these hearings invalid. Once the Mayor -- once before did Mayor Street try such a tactic. As the Chairman of Council Finance Committee, he held hearings on a real estate transfer tax, without writing in the rate of taxation. After the hearing ended, Council wrote in the taxing rate. Max Weiner, the Founder of CEPA, challenged the process that then-Council President Street used, calling it a 136 /00 - WHOLE - BILL 2 violation of the Home Rule Charter and the Supreme Court of Pennsylvania agreed. The court wrote in the City of Philadelphia versus Weiner, quote/unquote, a tax measure which purposes to tax at, quote/unquote, blank rate is meaningless. The rate of the tax is an essential component of the bill to amend the tax rate. Hence, no genuine tax rate revision bill was considered at a public hearing, contrary to Charter Section 2-201. Holding a hearing on a lease without terms and incomplete financing is no 14 different than what the courts have already ruled illegal. We urge you to reject the blackmail and bullying tactics, stand up for the citizens of Philadelphia for the rule of laws and respect for the legislative process. Thank you kindly. (Applause.)

Councilwoman Blackwell

Thank you.

Mr. Mcpherson

The next witness is Frank Adams. Frank Adams?

Councilwoman Blackwell

Frank Adams? 137 /00 - WHOLE - BILL 2 (No response.)

Mr. Mcpherson

Edward Ferguson? (No response.)

Mr. Mcpherson

William McGettigan? (No response.)

Mr. Mcpherson

We're on a roll. Dan Cackowski? (No response.)

Mr. Mcpherson

Saul Berger? (Witness comes forward.)

Councilwoman Blackwell

Good evening.

Mr. Berger

Good evening.

Councilwoman Blackwell

Please identify yourself for the record, then proceed with your testimony. Welcome.

Mr. Berger

Yes. Thank you very much. My name is Saul Berger, I'm a lifelong resident of the City of Philadelphia, in the East Oak Lane section. Thank you very much for letting me comment this evening on the stadium. Public funds should not be used for the new stadiums. Historically, finances generated from our present Veterans Stadium have not reduced wage, sales, or real estate taxes. Providing 138 /00 - WHOLE - BILL 2 funds to a new stadium that in the past has not provided the financial relief and tax reductions to the citizens and small-business taxpayers of the City is simply an unsound investment. The benefits of a new stadium project, in light of a shrinking tax base, throws even more questions about the stadium's value to taxpayers who still reside in Philadelphia. If a stadium is to be built, the team owners, who would benefit most, should provide to City Council as to the financial return the City would obtain, without City subsidies. Unless the citizens can carefully review the financial benefits of a new stadium, a new stadium should not be built until Philadelphia taxpayers can see a clear and distinct benefit to their tax burden. Thank you very much, City Council.

Council President Verna

Thank you. (Applause.)

Council President Verna

The next witness?

Mr. Mcpherson

Ronald Johnson? Ronald Johnson? (No response.) 139 /00 - WHOLE - BILL 2

Mr. Mcpherson

Joseph Shields? (Witness comes forward.)

Council President Verna

Good evening. Please identify yourself for the record and proceed.

Mr. Shields

Hi. I'm Joe Shields, the Organizing Director with SEIU Local 36. (Applause.)

Mr. Shields

I promise that I'll only take about a few hours of your time. That was a joke. On behalf of our 4500 members who work and live Philadelphia, SEIU Local 36 supports public financing of stadium construction. The efforts by organized labor, by elected and community leaders to see job development and growth in Philadelphia for all workers through public stadium financing should be applauded and approved. We recognize, however, that as janitors who are largely minority work at night and historically without real job protection, that we are often an invisible and besieged workforce. SEIU Local 36, led out of local and State level by 140 /00 - WHOLE - BILL 2 Mike Russo, has committed to an aggressive and political and organizing effort to change this. Janitors, like all workers, deserve dignity, justice, and respect. (Applause.)

Mr. Shields

In our efforts to achieve these goals, janitors' reality in the public sector has been met with mixed results. Several months ago, the Philadelphia City Council pass a historic measure, the Displaced Workers Protection Act, giving our community service workers stronger and real job protection. In essence, the measure gives janitors and other service workers a 90-day probationary period when contracts change hands. The measure circumvents high worker turnover and the displacement of and hard-working, dedicated Philadelphians. As was pointed out in those hearings by both business the community and members of this Council, the reality of high worker turnover in contracts changing hands is driven by economics. In areas where poverty wages are paid to janitors -- and by "poverty wages," I mean 5 to $6 an 141 /00 - WHOLE - BILL 2 hour. And to bring up the issue that one of our previous speakers relayed of wanting the contract at the stadium to clean the toilets and take care of the washrooms, a lot of his students would be better off working at McDonald's than the rates that they're paying now for those types of things for janitors. It should be pointed out that this is not something that we can accept for workers. And we are told this by the entire contracting community: The turnover rate for janitors making poverty wages is about 400 percent. In these situations, no one wins. From the contractor end, service often suffers and accounts and profits are lost. Most importantly, Philadelphia workers and their children go without basic living wages and a livelihood that they deserve. This is the current reality for janitorial work, which is contracted out at Philadelphia stadiums. The work is currently contracted out to, I believe, two area firms. One is Team Clean, a Philadelphia minority subcontractor; the other is Central Property Services. 142 /00 - WHOLE - BILL 2 Janitors at the stadiums currently make poverty wages of 5.50 per hour, serving, in effect, as migrant seasonal workers. Following each game, after some 60,000 fans eat, drink, scream, and cheer, janitors walk up and down the stairs, they buff and clean and wash under seats throughout the stadium. With little notice, with little respect, the janitors foster their pride our community harnesses in support of the Phillies and the Eagles. Our hope and faith is that with this opportunity, as we underwrite new construction of these new stadiums, these janitors will no longer go unnoticed. Let us move janitors to living wages, let us take notice and build on our commitment to stable, respected wages and standards. Let us make the phrase "working poor" obsolete in our public vocabulary. Our community, our Philadelphia deserves nothing less. Thank you. (Applause.)

Mr. Mcpherson

Richard Ash, Richard Ash? (Witness comes forward.) 143 /00 - WHOLE - BILL 2

Council President Verna

Good evening.

Mr. Ash

Good evening, Madam President, members of Council. I'm Richard Ash. I represent an organization called "Stop Giveaways to Sports Team Owners", a nonprofit organization. (Applause.)

Mr. Ash

We are a nonprofit organization dedicated to end public welfare to fat-cat billionaire sports team owners. We oppose this giveaway, not only in this city but nationally. This has to end. The concept of blackmailing cities to give away scarce community resources that we know should be better served in schools, libraries, parks, and other needed public facilities, to give in to these billionaire sports team owners has to be stopped. This city should properly stand up and tell these sports team owners, "If you don't like it here, leave." (Applause.)

Mr. Ash

Somebody better will come. We're a major marketplace -- I think the fourth or fifth best marketplace in this 144 /00 - WHOLE - BILL 2 country. There was no need, and is no need, for our leadership to capitulate to the greed of the people that own these teams. I agree with the eloquent statements of the previous speakers, particularly one that said that we live in a free enterprise society; if you want us to fund your enterprise, give us a piece of the action. (Applause.)

Mr. Ash

I fail to understand why the astute political leadership in this city would be thinking about the type of giveaway that's going on here. I can remember about ten years ago, when Leonard Tose owned the Eagles, I remember that he said -- he threatened us. He said, I'm going to go to Phoenix, I'm going to Phoenix, Arizona. Unless you enter into a 20-year contract, build me sky boxes for the first ten years, I'll take the income. And starting on the eleventh year, the next ten years, you will start to derive the revenue. We would be deriving over 6 million a year under that contract. But now that the fruit is about to ripen and fall from the 145 /00 - WHOLE - BILL 2 tree, City Council is thinking about a new contract, giving up that right. We have no need to enter into any new contract with the Eagles. We have an existing ten-year obligation; they couldn't leave if they wanted to. Yet, for some reason, the leadership of this city has thrown in the towel. Now, I'm not going to belabor with you discussing what's discussed far more eloquently than I could say it. The needs of our schools that are falling into ruins, the needs of our libraries, the needs of our parks. Strangely enough, the Governor for says, There's no money for schools. City Council says there's no money for the school deficit. There's no money for a library, a public library. Yet there's no problem in finding $300 million or more, as Councilman Cohen has pointed, out saddling us with many more years of 30 million or more debt. There's no problem finding that money. I find that strange, I find that incomprehensible. I agree that taxation without representation is tyranny, and I ask Council to 146 /00 - WHOLE - BILL 2 put this question to the people that are going to pay the bill, put this to the election of the voters in this city, let them decide whether they want these rich fat-cat billionaires to stick their hands in their pocket. At the least, do that. (Applause.)

Mr. Ash

Now, I want to say I'm all for a fund for children, I'm all for it. But there's absolutely no reason to link a 2 million fund if that's what's needed to help our children with a 300-or-more-million-dollar giveaway. There's plenty of money for that fund, if we don't do the stadium deal. Also, I want the workers here to know that I've always supported the unions and the workers, but there's plenty of work to be done in this city building schools, building libraries, building needed facilities. To waste our resources on this boondoggle, leaving our city poor for many years to come, is going to destroy jobs in this city. As somebody had pointed out, we're taking a short-term fix and ending up with a long-term giveaway. 147 /00 - WHOLE - BILL 2 It's like people in the Northwest, where the people that own the timberlands there say, We'll create jobs, let us cut down your redwoods that took thousands of years to build, and your people will have jobs. Yeah, they'll have jobs for a few years, and then look at the wasteland that's been created. That's not how you create jobs or prosperity. (Applause.)

Mr. Ash

If we're going to -- I don't agree with subsidizing private enterprise, but if we're going to do it, let's go to Hewlett Packard, let's go to Microsoft, tell 'em, We'll subsidize you, build a high-tech facility in there where our slums are, give our people high-tech jobs, not jobs as peanut vendors. Ladies and gentlemen, I search your conscience. Don't make this city a wasteland. Businesses are already leaving in droves 'cause they don't want to pay the higher tax that you have in this city. This is going to destroy. You're going to have to look for higher taxes and you're going to lose more businesses. Please search your consciences, don't 148 /00 - WHOLE - BILL 2 give in, stop this deal. Thank you. (Applause.)

Council President Verna

Thank you very much. Everyone on our witness list has been called. Is there anyone else in the audience that would like to testify? Please approach the witness table. (Witness comes forward.) As.

Council President Verna

Good evening.

Mr. Wright

Good evening. My name is Forrest Wright.

Council President Verna

Please repeat your name for the stenographer.

Mr. Wright

My name is Forrest Wright. I'm a member of Consumers Education and Protection Association. I'm also a required individual and I'm also a Vietnam veteran. I've sat here in City Council and I've listened to these staggering figures of this money. We talk about high-tech positions; we cannot put people in these positions if they're not trained to, so this leads me -- this takes me 149 /00 - WHOLE - BILL 2 back to education. I don't know if anybody has traveled through the schools here in Philadelphia, but I have because I have sons, I have granddaughters, and I have nieces and I have nephews in these schools. I have been to the classrooms because I have sat in the classrooms, where they don't have enough books for the children. The children don't have books to take home as we did when I was coming up. Most of the books that they have are outdated and antiquated, and it's a shame. And here I find that we're talking about building a stadium. The stadium's going to be here. Are we going to have the people to run these high-tech jobs, to do what's necessary to do in the stadiums? The trades, I respect, trust me. But I got one thing to say. You all have got children, and if you followed your children and if you went to school and you've seen what's going on in our schools today, you would be ashamed. After all, you're not going to be around forever; your children is the future. And I myself, you know, I feel very compelled to come here tonight and sit 150 /00 - WHOLE - BILL 2 through here. And it's 1 o'clock in the morning, and if I have to sit here longer, I will, but I'm not going to take up too much of your time. I just want you to realize one thing. During the '60s, when I was coming up, we had individuals that did not question things that our leaders wanted us to do. We paid a heavy price for that, and I want you to understand we paid a heavy price for it, okay? But today, we have a chance to change this. I'm glad to see young students in here, sitting in City Council, questioning things that need to be questioned. Because years ago, they told us what to do, and we did not question it, and we paid for it. And if we don't question this now, we're going to pay for it in the long run. (Applause.)

Mr. Wright

I guarantee you one thing: The stadium, okay, it's going to make money, but if we don't fill that stadium, we're going to be in debt. And who's it going to fall on? It's going to fall on each and every one of you. The labor unions, too, it's going to fall on you, you know what I mean? 151 /00 - WHOLE - BILL 2 So in order for the City to make a profit in the stadium, we've got to fill it, and you know we can't even fill the two stadiums we got down here now in South Philly, okay? I love the Phillies and I love the Eagles, I love sports, but I'm taking a stand on this, so far as what's going on in the City here, so far as our schools are concerned, our firemen, they were down here tonight, and I wasn't aware of their problem. You understand what I'm saying? But think about it. The guys that own these teams, they don't live here in the City, their children do not go to school in the City, so they're not really concerned about their children because they're going to be taken care of. In the City of Philadelphia here, we have a very serious problem in our schools. Not only in our schools -- in our neighborhoods. Our streets need to be fixed. I mean, we have people in the City that's having problem with their utility bills. And we can go on and on and on. But I really want to say one thing. I want City Council to think about this. The deal might have been already made, but if it is made, I 152 /00 - WHOLE - BILL 2 want you to take a look at what can be gained out of this to improve the school system and to help our children here and anything else that our great city needs. Thank you for your time.

Council President Verna

Thank you very much. (Applause.)

Council President Verna

Is there anyone else in the audience who would like to testify? Please approach the witness table. (Witness comes forward.)

Ms. Blazik

My name is Mary Blazik, and I am a member of CEPA also, and I'll only take about five minutes of your time, and I wish you would really pay attention. My question here is -- and I have a couple of questions rather than remarks. Why was this never puts on a ballot so that the people of this city could determine whether they wanted this or not? It's the people's money that's being used here, and nobody's going to tell me that no tax money is going to be used for the stadium, as I 153 /00 - WHOLE - BILL 2 heard the Mayor say yesterday. No tax money will be used for these stadiums. Why was this not put on a ballot? Why can't it still be put on a ballot and let the people decide, do they want this or not? (Applause.)

Ms. Blazik

Huh? When you're dealing with such large amounts of money, don't the taxpayers have a say in these matters? In any other category, there's no 12 money, there's no money, there's no money. For education, there's no money; for street repairs, there's for money; for this, there is no money; for that. PGW's sinking, but there's no money to help them. Well, we're going to try but they owe it back to us. But we got money for the stadiums from somewhere, and the people didn't say they wanted the stadiums; nobody asked the people. And these are my comments. That's all I have to say. And as to these trade unions, I also do say, as the other people have said, there are plenty of projects. They are tunnel-visioned into 154 /00 - WHOLE - BILL 2 a stadium -- that's the only thing that's going to keep you guys busy for a few years? There's plenty of work around if the City would only concentrate beyond the stadiums, okay? Plenty of work. (Applause.)

Ms. Blazik

You'll never be without work in Philadelphia if they concentrate on the right places. Thank you very much.

Council President Verna

Thank you. (Applause.)

Ms. Blazik

And thank you, gentlemen.

Council President Verna

Just a moment, please. Just a moment, please. I think Councilman Ortiz wants to be recognized.

Councilman Ortiz

I just want to clarify something to you. It's not that the taxes are being raised; it is the taxpayers' money that is being used to build the stadium, okay? (Ms. Blazik responds off-mic.)

Council President Verna

I'm sorry. The stenographer will not be able to hear you.

Ms. Blazik

Okay. There's still an 155 /00 - WHOLE - BILL 2 excess amount of something like 54 million that they need?

Councilman Ortiz

Yes.

Ms. Blazik

And they swear they're going to find this money but it's not going to cost of the taxpayers, is it?

Councilman Ortiz

It's already costing the taxpayers.

Ms. Blazik

I know. Initially it is, of course, of course. And anybody that says, Oh, the City's paying, the State is paying, they got their head in the sand, because the City and the State are you taxpayers, it's coming from you taxpayers, no place else.

Councilman Ortiz

Right.

Ms. Blazik

I don't know of any printing machines in the basements of these governments that's making the money, and they're going to tell us that it's not going to cost the taxpayer anything, okay? And if there is such a place, I'd love to know of it, I'd like to get some of it myself.

Councilman Ortiz

So would we. (Applause.) 156 /00 - WHOLE - BILL 2

Council President Verna

Thank you again.

Ms. Blazik

Okay, but my main point really is, why were not the citizens allowed to vote on this? They've been asked to vote on various projects before. A question: Do you want money appropriated, bonds floated for recreation facilities to be repaired, maybe some other facilities, some museums or something? And people vote yes or no. But all of a sudden in the stadiums, the people have nothing to say about it. The government took over, with our money. Thank you.

Council President Verna

Thank you very much. (Applause.)

Council President Verna

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

Council President Verna

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

Council President Verna

Seeing none this committee will stand in recess until 10 a.m. 157 /00 - WHOLE - BILL 2 tomorrow. (Adjourned at 8:40 p.m.) - - - 158 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Monday, December 4, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE OF THE WHOLE STADIUM BILLS __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter