civus
Hearing video

ZBA Hearing - February 1, 2023

Philadelphia Zoning Board of Adjustment (ZBA)Feb 1, 20235h 16m

really good so it needs to be a lot of work done in the structure so based on your estimate how

Similar wording

much and and because of the significant foundational issues um the building structure has to be torn

Similar wording

down is that right yes uh it was because it's really dangerous so it's always safer to knock

Similar wording

it down okay so what's the estimated cost to demolish the property as well as building a

Similar wording

single family house there it's approximately like two hundred ninety thousand dollars and

Similar wording

this is not including my fee it's just the built okay what so we make it easier what what would be

Similar wording

like all in uh if you had to you know give a price today 320 000 okay so 320 000 um i don't think i

Similar wording

have any further questions uh from mr cecily i do know that my client is trying to get on

Similar wording

so i think she would she try one more time jason brandon i have allowed her to speak sir okay

Similar wording

Hi, could you state your name and spell for the court reporter, please?

Similar wording

I think she's muted.

Similar wording

Diana, you have to unmute yourself.

Similar wording

Hi, can you hear me now?

Similar wording

Hi, could you state your name and spell, please, for the court reporter?

Similar wording

diana abdurakmanova d-i-a-n-a last name a-b-d-u-r-a-k-h-m-o-n-o-v-a

Similar wording

do you swear for him to tell the truth the whole truth nothing but the truth

Similar wording

yes proceed counsel all right thank you um diana um we just heard from mr cecily

Similar wording

that it would cost $320,000 to demolish the current building structure and to erect a new

Similar wording

one. Is that correct that he conveyed that to you? Yes. Okay. And how much did you purchase

Similar wording

the property for? We purchased the property with all the closing costs included, rounds up to $213,000.

Similar wording

dollars. Okay. So between those two costs, the $213,000 as well as the $320,000, we're at $533,000.

Similar wording

Now, Diana, you're also a licensed realtor, right? Correct. Okay. So in your professional opinion,

Similar wording

Correct.

Similar wording

Okay.

Similar wording

So in your professional opinion, how much would you be able to sell a single-family home at that location if constructed the way you intend to?

Similar wording

how much

Similar wording

You

Similar wording

So based on all the comps in the area, ground-up new construction, the sale value is approximately mid-400s to 500s.

Similar wording

Okay, so which exceeds the amount of money that you would have spent on construction as well as the acquisition.

Similar wording

Now, in addition to that, you also have had carrying costs over the time period in which you've been dealing with this issue, right?

Similar wording

Yes, so because of the structural damage to the property, we had to do the foundation.

Similar wording

We had to reinforce the foundation because when we purchased the property, it was purchased at a mortgage sale.

Similar wording

We were not allowed to enter the premises prior to the purchase.

Similar wording

Once we acquired it, we had an engineer that surveyed the property who told us that we need to reinforce the foundation in order to stabilize the structure.

Similar wording

Aside from that, the roof had a huge leak, which ended up leaking over to the property on the right side, which we also had to patch up just to prevent further damage to the property.

Similar wording

In that case, it created a lot of damage to the framing of the house.

Similar wording

And in the photos, you can see the floors are significantly tilted because the house sagged on one side because of the foundation, plus everything else is highly damaged due to the water leak.

Similar wording

So I guess my question was more so financially, how much money have you spent in carrying costs and maintenance for this property since purchasing it?

Similar wording

Since the purchase, $25,000.

Similar wording

All right. So from $533,000, we're up to another $25,000, which is $558,000. Now, if you sold it

Similar wording

for $500,000 in property, you would be running a deficit, but then you also have to pay a realtor,

Similar wording

right? Correct. We would have to pay commission. So even if you were the realtor, you still would

Similar wording

have more likely not a realtor on the other side, which you have to pay commission. Yes.

Similar wording

So even 3%, you're at $15,000 more. And you also would have to pay closing costs, which includes half of your transfer taxes.

Similar wording

Yes. Even if I forfeit my commission, we still fall underwater.

Similar wording

Yeah. So there's no way that you can sell this house without losing a lot of money. Is that correct?

Similar wording

Correct.

Similar wording

okay what about renting the property um how much would you be able to get from renting the

Similar wording

property if you built it as a single family as a single family three bedroom three bathroom

Similar wording

it's 2500 maximum a month plus including carrying costs which is maintenance and taxes that and

Similar wording

insurance that we will be inquiring as well so you can get a rent of 2500 if you built it the way

Similar wording

you would need to, how much would your carrying cost be to do that per month?

Similar wording

Per month? I'll tell you right now, one second. Monthly carrying costs will be around $800.

Similar wording

How much?

Similar wording

$800 monthly.

Similar wording

No, I meant like the cost of acquisition, the cost of construction. How much would you be paying

Similar wording

in mortgage payments and everything per month if you're buying if you're renting it for $2,500

Similar wording

what are your carrying costs I don't have that number available

Similar wording

okay but is it more than the $2,500 it's more it comes out more okay um I think when we spoke

Similar wording

you indicated there was a number of like $3,200 when you did the numbers plus there would be the

Similar wording

insurance and taxes, which would be an additional $500, right? Yes. So it would be like $3,700

Similar wording

as your monthly maintenance for that property. And you can only rent it for $2,500. So you'd

Similar wording

be running a deficit every single month if you had this as a single family. Yes. And you base

Similar wording

these numbers on your review of the multiple listing service? Correct. For both rental and

Similar wording

and purchases right rental and purchases and with other projects that i have done in the philadelphia

Similar wording

area well thank you so much i appreciate your time all right thank you questions from the board no mr

Similar wording

chairman no mr chairman what should your comments from the virtual

Similar wording

no mr chairman questions or comments from the virtual audience

Similar wording

do not see any further hands mr chair planning

Similar wording

planning commission

Similar wording

sorry ron bednar city planning properties indicated for residential use on the city

Similar wording

plan or adopted district plan recommends no change the existing zoning at this location.

Similar wording

The applicant's hardship is not supported with evidence of unique physical circumstances that

Similar wording

would prevent it from being used in conformity with the code. The proposal does not represent

Similar wording

the least minimum relief therefore we recommend the request for variance not be granted.

Similar wording

MI 2022-005-118-2713-East Huntington Street, I vote no.

Similar wording

Thomas Holloman, my vote is no.

Similar wording

Ishmael Shaheed, my vote is no. Thank you. Thank you, counsel.

Similar wording

Number seven, MI-2022-002-549-3460 J Street.

Similar wording

Sean Ward is the attorney.

Similar wording

Letter of support from IMPACT.

Similar wording

Letter of non-opposition from Council Member of Lozada.

Similar wording

Back in as a panelist.

Similar wording

uh my apologies mr chair my uh phone started ringing off my hip uh as the as i was being uh

Similar wording

up you know uh upgraded to a panelist uh sean ward on behalf of the applicant my name is spelled s-h-a-w-n

Similar wording

last name w-a-r-d address 331 east street road trivos pa 19053 do you swear affirm and tell

Similar wording

truth the whole truth nothing but the truth i certainly do could you identify your client

Similar wording

and their relationship to the property uh i'm sorry chair this is the uh i got cut off is this

Similar wording

tioga or j street this is j street okay all right i represent 3450 j street llc which is the owner

Similar wording

of the property known as 3460 j street subject to this calendar number mi 2022 002549 and present

Similar wording

with me today, I have George Groves, that's G-E-O-R-G-E, last name Groves, G-R-O-V-E-S,

Similar wording

a representative of 3450 J Street, LLC. All right, our vice chair has just a few questions.

Similar wording

By all means.

Similar wording

yes good afternoon counsel do you agree to waive the reading of the refusal and stipulate to its

Similar wording

accuracy i certainly do have you emailed all the required exhibits into our office five days in

Similar wording

advance to this hearing yes i did thank you please proceed and share your screen thank you very much

Similar wording

Mr. Chair, can we confirm my screen is shared?

Similar wording

It is.

Similar wording

Okay, excellent.

Similar wording

I have submitted my typical exhibit and summary of relief.

Similar wording

Again, I represent 3450 J Street LLC for the subject property at 3460 J Street LLC, which as a side note, there was a subdivision.

Similar wording

The original property was known at 3450 and we subdivided it and now it's known as 3460 at the aforementioned calendar number.

Similar wording

However, we filed an application for the creation of four tenant spaces for business and professional offices and a personal services, which is a salon, together with the accessory storage at the basement on the same lot with all other previously approved uses.

Similar wording

The application resulted in two refusals, business and professional office and personal

Similar wording

services are not permitted in the district, so we seek the use variance today, and that

Similar wording

use variance today. And that is all referenced in Exhibit A1, which is the Notice of Refusal.

Similar wording

is all referenced in Exhibit A1, which is the

Similar wording

Hang on a second. All right. A2 is the ZBA Application of Appeal. A3 is the Project

Similar wording

Information Form. A4 is Proof of Ownership. And A5 is the Proof of Tax Clearance, all of which

Similar wording

required with the application and appeal process. A6 is a site plan. A7 is a key plan and use

Similar wording

schedule. A8 are the photographs, including postings, subject property, and street views.

Similar wording

Most importantly, I would submit A9 as the letter of support from Impact CDC, which is the assigned

Similar wording

RCO. A10, if submitted, would be a letter from Councilman Squilla. I believe that's his district.

Similar wording

I did not receive personally a copy of that letter, but I am counsel.

Similar wording

Counsel person Lozada. Oh, I'm sorry.

Similar wording

And we have a letter of non-opposition. Oh, excellent. Thank you, Mr. Chair.

Similar wording

And very briefly, I'm sorry. I'm sorry. I'm going to talk. Yeah, we do have a letter.

Similar wording

I'm sorry. She's on both your cases. We do have a letter of non-opposition.

Similar wording

Excellent. Thank you so much for noting that on the record.

Similar wording

As far as the relevant zoning history, the redevelopment of this corner has gone back to 2017, where we were granted a permit for the erection of an attack structure 60 feet high with 18 dwelling units.

Similar wording

In 2019, it was the relocation of the lot lines, as I mentioned earlier, separating 3450 from 3460 J Street.

Similar wording

In 2019, a permit was issued for 24 dwelling units and a vacant commercial space at the first floor.

Similar wording

In 2021, we came back with a daycare center at the first floor and basement.

Similar wording

In 2021, another unity of use for 3450 and 3460, together with 1046 Tioga Street, was permitted.

Similar wording

And then in September of 21, we received approval for the sixth floor addition together with, again, the vacant commercial space at the first floor and basement because tenants had not been identified.

Similar wording

So A-12 is the zoning map and A-13 is the aerial photo.

Similar wording

So, again, just moving through the exhibits, again, the property is zoned RM1 and I2.

Similar wording

The refusal was dated in March of last year for the property at 24 J Street.

Similar wording

And, again, it resulted in two variance refusals.

Similar wording

Business and professional office are prohibited, again, because it's RM2 and I2.

Similar wording

And the other use proposed personal service, a physical fitness gym, is prohibited in the district.

Similar wording

We submitted with our packet the application of appeal, the project information form, and of course, my transmittal letter.

Similar wording

Here is a copy of the deed recorded October 31st, 2019, for the property at 34 J Street.

Similar wording

Moving on, tax clearance.

Similar wording

Again, taxes are paid through 2022.

Similar wording

As Alan represented in his past presentations, these taxes are not due until March 31st.

Similar wording

However, the majority of the taxes have been paid, as you can see, a credit for $5,280, and there's a balance of $354 due and owing.

Similar wording

With regard to the site plan, this property is bounded by East Tioga at the top of the plan and J Street at the side of the plan.

Similar wording

When we look at the floor plans, we're speaking of four units that have previously been designated on the ground floor, but now we are seeking the variances for these four units.

Similar wording

C1A, C1B, and C1C, I believe, are the business professional offices and C2.

Similar wording

I believe, are the business professional offices, and C2 is the personal services, the spa, I mean, the physical fitness center.

Similar wording

So in our application, we also included a key plan and schedule.

Similar wording

So again, C1A, C1B, and C1C are for office use, business, and professional, together with C2, which is the personal services.

Similar wording

I'm sorry, it's a salon.

Similar wording

There you go.

Similar wording

The others have been, they're existing previously approved uses.

Similar wording

So we're not here about the other uses.

Similar wording

This was a posting.

Similar wording

Everybody still seeing my exhibits?

Similar wording

Yes.

Similar wording

Okay.

Similar wording

This was our original posting for the hearing, which was continued.

Similar wording

This is the subsequent posting for today's hearing.

Similar wording

As you can see, it's located on the front window of the site.

Similar wording

Here is a photo of the building in question from the Tioga Street view.

Similar wording

This would be a picture from the corner of J Street, which is going from bottom center, upper left, and bottom center, upper right, representing J Street and Tioga.

Similar wording

Tioga. This picture just represents a walkway in between 3460 and what is now known as 3450 J

Similar wording

Street. Across the street, Mr. Chair, is 1100 East Tioga, which is the subject of the next

Similar wording

hearing, I believe, which my client

Similar wording

has since acquired, and

Similar wording

I just gave this for reference as to what it appeared

Similar wording

back when we were granted a variance to

Similar wording

extend the beer distributor out to the street frontage.

Similar wording

Okay. We also have

Similar wording

a view of Tioga Street to the west.

Similar wording

This is the Scanlon Playground, well-known in the Irish community, I might say.

Similar wording

And again, Tioga Street facing east towards Kensington Avenue, and you can see the elevated

Similar wording

Frankfort Market line.

Similar wording

Again, the Tioga Beverage, which has since vacated, sold the premises to the same principal of our owner on this project.

Similar wording

Here is the letter of support from Impact Services.

Similar wording

As you can see, it's dated September 22nd.

Similar wording

Unanimous support due to our meeting on 9-21.

Similar wording

And then not to belabor, but attached from here on in are all of the zoning permits evidencing the zoning history.

Similar wording

This here is the zoning map.

Similar wording

As you can see, our property, which is shaded with the RM1, is adjacent to the I2.

Similar wording

2 over here on RM1, this corner is 1100 East Tioga, which is subject of the next application.

Similar wording

But variances have been granted along with permits for the use of those properties.

Similar wording

This is a Google Aerial. Prior to construction, as you can see, it was a vacant lot.

Similar wording

Scanlon Playground is located across the street.

Similar wording

Tioga Beverage, the 1100 East Tioga Street is located right across the street.

Similar wording

So basically, this square was subdivided from the entire parcel.

Similar wording

This is now known as the J Street loss, which is 3450 J Street, and we are 3460 J Street, however, owned by same applicants.

Similar wording

That is all I have to present to the board at this time.

Similar wording

If the board has any questions.

Similar wording

your owner with you do you want to yeah i would ask that george groves a representative of the

Similar wording

owner uh be allowed to speak sir could you state your name and spell it please for the court reporter

Similar wording

george groves g-e-o-r-g-e-g-r-o-v-e-s right do you swear a firm to tell the truth the

Similar wording

Right. Do you swear, affirm, tell the truth, the whole truth?

Similar wording

whole truth nothing but the truth yes sir

Similar wording

Nothing but the truth.

Similar wording

Yes, sir.

Similar wording

Proceed, counsel.

Similar wording

George, have you heard my representations to the board this afternoon?

Similar wording

Yes.

Similar wording

Are they true and correct to the best of your knowledge, information, and belief?

Similar wording

Yes.

Similar wording

And are they true and accurate?

Similar wording

Yes.

Similar wording

And you adopt them as your own testimony?

Similar wording

Yes, sir.

Similar wording