COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 401, City Hall Philadelphia, Pennsylvania Thursday, December 13, 2001 9:00 a.m. - - - BILL NO. 010543 - an ordinance amending Chapter 9 16-400 of the Philadelphia Code... BILL NO. 010633 - an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to accept a quitclaim deed from the Commonwealth of Pennsylvania... BILL NO. 010696 - an ordinance authorizing the Commissioner of Public Property and the Director of Commerce, on behalf of the City of Philadelphia, to accept from the School District of Philadelphia all or any portion of certain real estate in the vicinity of Red Lion Road and Roosevelt Boulevard BILL NO. 010712 - an ordinance authorizing the Philadelphia Authority for Industrial Development to purchase certain tract of land situate at 2114-60 North American Street - - - PRESENT: COUNCILMAN JAMES KENNEY, Chair COUNCILMAN DARRELL CLARKE; COUNCILMAN MICHAEL NUTTER, COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS-BROWN, COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL NO. 010543 RICHARD ROGERS, NAM ........................ RICK SAUER, PACDC ......................... BILL NO. 010633 CRAIG SCHELTER, PAID ....................... 9 BILL NO. 010696 PAUL DEEGAN, PIDC and PAID ................. 15 BILL NO. 010712 PAUL DEEGAN, PIDC and PAID ................. 18 7 3 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543
Good morning, ladies and gentleman. This is the Committee on Public Property and Public Works. We appreciate your patience and thank you for waiting. We have a quorum present today with Councilmembers Rizzo, Blondell Reynolds-Brown, Councilmember Clarke; myself, Councilman Kenney as Chair; Councilmember Nutter, and Councilmember Donna Reed Miller. We have four bills to deal with today. And the first is Bill 010543 which is an ordinance 12 amending Chapter 16-400 of the Philadelphia Code, entitled "Vacant and Surplus Properties," by amending Section 16-404 entitled "The Vacant Property Review Committee," by adding a subsection on Philadelphia Association of Community Development Corporations. Is there anyone here to testify on the bill? Good morning, could you please identify yourself for the record?
My name is Richard Rogers. I represent NAM, Neighbors Against McPenntrification.
Please proceed with 4 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543 your testimony.
I am here because NAM commissioned me to speak on their behalf, and particularly after hearing yesterday's dialog in these Chambers pertaining to the NTI, Neighborhood Transformation Initiative. And I was most concerned because it seemed that the CDCs were being lauded for their dealing with a very irrational situation. And I don't believe -- I've always believed and NAM perceives most of the CDCs as engines of theft. I would like to read to you a letter I sent to the head of the Federal Reserve System, Mr. Alan Greenspan. I was commissioned to do this by my organization. " This will not take long. This letter was written on the 14th of November of this year. It is to Mr. Alan Greenspan. "Sir, Mayor John Street announced the appointment of Anthony Santamero as the first Chairman of the Council of Economic Advisors on June 20, 2001. Neighbors against McPenntrification, our local community organization, contacted DeDe Meyers, 5 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543 Vice President of Community Affairs at the Philadelphia branch of the Federal Reserve Bank and arranged to meet with her at our office before the end of the month to express our dismay of Mr. Santamero's appointment. "The elicit diversion of federal and Commonwealth funds from their lawful and designated recipients of low and moderate income by the Mayor's Office is a scandal. The failure of our local City Council and Department of Commerce to compel quasi-government agencies and non-profit community development corporations to account for the misallocation of government funding is a scandal. "The millions of dollars that are used to ruthlessly to displace lower income residents is a scandal. Mr. Santamero's position as President of the Federal Reserve Bank has been exploited by the city government in order to give an aura of legality to the unethical fiduciary transactions exacted by Mayor Street as well as the City Council, and that is a scandal. "As a direct outcome of Neighborhoods against McPenntrification, meeting with the Federal Reserve Bank, we were informed later by Vice 6 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543 President Taylor that the Federal Reserve Bank has issued a written communication to the City. " Now, that's the conclusion of the letter. I think that throughout the country, CDCs have problems. No one is without fault. But Philadelphia has distinguished itself by the graft and by the enormity of the graft the CDCs have exercised. I point to you Cecil B. 1 million to a Mr. Miranda, $400,000 to a Mr. Womsley which has been totally unaccounted, the CDC in West Philadelphia in which 72 mortgages were processed. Now, this agency is licensed by the City as a mortgage consulting agency, and yet they have failed to keep track of the mortgages. There is no 19 excuse for this. And with this great demolition derby which is accelerated by the City, it is very strange that I think Mr. Darrell Clarke -- and this is no attack on the gentleman. But he seems to be most adamant in support of this demolition derby, and yet when correcting the faults of the CDCs in his area, he has very little to say. 7 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543 I spoke to Councilman Goode pertaining to the missing 72 mortgages. The problem, of course, they were not accounted for. And I called his office after reading his stimulating community reinvestment report. I called his office and asked him to account for the 72 mortgages. And what I asked specifically, even if he did know it, did this meet with his approval that a CDC could process 72 mortgages and have no track of that. I asked him did he find that satisfactory. He would not give me an answer. So, therefore, we refer this matter ot City Council. You may have a copy of this letter. And that's all I have to say, unless you have any questions.
Are there any questions for the witness? Thank you very much for your testimony.
My name is Rick Sauer. I'm the Executive Director of the Philadelphia Association for Community Developments Corporations. I believe you have copies of my testimony that was submitted earlier. I want to thank you, Chairman 8 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010543 Kenney, for posting this bill for hearing. In quick response to the previous testimony just heard, certainly, Cecil B. Moore CDC is not a member of our organization, so I won't vouch for their actions. With regard to the mortgage issue, I don't fully understand it. Certainly, we have members that undertake housing counseling as an important aspect of their work to help first-time home-buyers buy a home. It sounds like the issue may be more with the banks or something like that that actually originated the loans. So I'm not sure where that was leading to. Anyway, I'm here this morning to urge your support for Bill No. 010543 which, as mentioned, would create a seat for PACDC on the City's Vacant Property Review Committee. As we all know, property acquisition and disposition are critical issues for our members, directly impacting on their ability to create housing opportunities and undertake other community development initiatives. And typically, with a VPRC, our members will get a scattered site property either to rehab for homeownership for sale to 9 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 first-time home-buyer in the neighborhood or they may acquire vacate lots to expand an access to open space for neighborhood residents. We simply want to have a seat at the VPRC table to help ensure that there's increased CDC representation in this process. And so we urge you to released the bill 8 from committee today. Thank you.
Thank you for your testimony. Any questions? Thank you very much. Anyone else to testify on this bill? Seeing none, we will now move the Bill 15 No. 010633, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to accept a quitclaim deed from the Commonwealth of Pennsylvania conveying to the City all of the Commonwealth's interest in a certain parcel of land that is part of the site of the former Philadelphia Civic Center and that is commonly known as the Pennsylvania Hall Parcel. Good morning. Please identify yourself for the record.
Good morning, Mr. 10 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 Chairman. My name is Craig Schelter, I'm the Executive Vice President of the Philadelphia Industrial Development Corporation. I'm here on behalf of James Curato, the Commerce Director. He was scheduled to be here yesterday, but when the hearing was reschedule for this morning, he had a conflict so he's asked me to come in and read his testimony.
"I appreciate the opportunity to provide testimony on Bill 010633. This bill authorizes the City the accept a quitclaim deed from the Commonwealth of Pennsylvania for the portion of the old Civic Center site known as Pennsylvania Hall. "City Council authorized the conveyance of the Pennsylvania Hall parcel to the Commonwealth in the early '70s to facilitate the construction of Pennsylvania Hall. The Commonwealth constructed the hall for City's use, and the City operated the building for nearly 30 years in connection with trade shows, seminars, and exhibits at the Civic Center. In deed conveying the parcel to the Commonwealth, the Commonwealth was required to 11 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 re-convey the parcel to the City after the bonds used to finance the construction were retired. Those bonds have recently been retired and the Commonwealth has prepared a quitclaim deed to re-convey its interest in the Pennsylvania Hall parcel back to the City. In June of this year, City Council approved the sale of this property to the University of Pennsylvania and/or Children's Hospital for the consideration of $6 million and the demolition of Pennsylvania Hall. This bill would allow the City to accept the quitclaim deed from the State and thereby allow us to provide clear title to the ultimate purchaser of the property. City Council has previously authorized the City's conveyance of portions of the old Civic Center site through PIDC to the University and the Children's Hospital. The University and Children's Hospital begun development projects in those parcels for development clinical, medical research, and parking facilities that will ensure that their stature as premiere medical institutions in the country create thousands of jobs, alleviate parking congestion in the area for their medical centers. 12 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 Overall, the development of the 19-acre Civic Center site is expected to generate $475 million in new construction and generate 2750 new jobs. "Therefore, I urge Council to pass Bill 6 010633 so the City can continue to plan and execute the development of the old Civic Center site. I also ask the rules be suspended to permit First Reading at the next regularly scheduled meeting of Council. "Thank you for consideration. I will happy to answer any questions."
Thank you. On the original sale to University of Pennsylvania and Children's Hospital, was the Pennsylvania Hall included in the sale, the $6 million sale place?
Yes. What happened over the summer was there was another land swap between the University and Children's Hospital so Children's Hospital relinquished the interest that they had in this particular parcel.
On the parcel where there's work going on now or the Pennsylvania Hall, or both?
On the Pennsylvania Hall 13 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 parcel. There was an 8 1/2 acres of the site that's been cleared so far. That was originally to be 4 1/2 to -- or 6 acres to the University of 5 Pennsylvania, 2 1/2 to Children's Hospital. What 6 Penn did is they sold 2 of their 6 acres to CHOP and then CHOP relinquished their interest in the Pennsylvania Hall site. So this allows the two institutions to essentially work side by side without being in one another's way.
And there was a no 12 settlement on the Pennsylvania Hall site?
No. We have signed an agreement of sale with the University for the Pennsylvania Hall site. And the only thing to complete that transaction is the City accepting this property back from the state. Once it's back to the City, the City would immediately transfer it to PAID and then we'd be in a position to transfer to the University of Pennsylvania.
Thank you, Mr. Chairman. Let me just make sure. I don't want details, but let me make sure. Is there any 14 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010633 financial impact to the City as it relates to this particular transaction? Or is it merely, not to oversimplify it, a moving around of paper?
The City will get $6,050,000 in cash and the University will take on the burden of demolishing and environmentally abating the old Pennsylvania Hall. And as part of a previous transaction, they took over the fire watch and security of the building. So there's no 15 obligation on the City at all here.
What do they intend to build on the Pennsylvania Hall site?
They intend to build research facilities that will probably be a minimum of 285,000 square feet of research facilities.
Any other questions? Thank you very much. Anyone else to testify on this bill? Seeing none, we'll move to Bill No. 15 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010696 010696, an ordinance authorizing the Commissioner of Public Property and the Director of Commerce, on behalf of the City of Philadelphia, to accept from the School District of Philadelphia all or any portion of certain real estate in the vicinity of Red Lion Road and Roosevelt Boulevard, to subsequently convey such property to the Philadelphia Authority for Industrial Development (PAID), and to convey to the School District of Philadelphia all or any portion of certain other City-owned real estate in the vicinity of Red Lion Road and Roosevelt Boulevard, all under certain terms and conditions. Please identify yourself for the record.
Good morning. My name is Paul Deegan, D-E-E-G-A-N. I represent PIDC and PAID. I'm here in support of this bill which authorizes the City to accept 12,000 square foot parcel of land from the School District and to convey to the School District and equivalent area of land in the vicinity of Red Lion Road and Roosevelt Boulevard. I think there's a map attached with your testimony. I think it's worth at least 200 words of 16 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010696 my testimony. As you can see on the map, the land swap areas are shaded in light blue. One is to the rear of the Swenson Skill Center which is going to be conveyed from the School District to the City. And the other is a triangular piece at the corner where the Skill Center abuts the Marshall's Distribution Center site. And that's going to be conveyed to the City from the School District. The property that the City receives will then be conveyed to PAID and it will become part of the Marshalls Distribution Center site. And that's a million square foot warehouse which is operating. It opened in August. This is a minor adjustment of property lines between the City and the School District. When the Commerce Department and PIDC created the development parcel for the million-square-foot warehouse, we found that the adjacent Swenson Skill Center had inadvertently encroached on the City's property. Rather than have the District remove these facilities, we negotiated this mutually agreeable adjustment to keep our commitments to the developer without disturbing the school's operations. The area involved -- to get an idea of 17 12/6/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010712 the magnitude of the area, the area is .3 percent of the total site. It also benefits the City because it gave us a better driveway layout by having that corner cut off there we were able to layout the truck access a little more rationally and benefits the School District. So I ask that the committee consider the bill favorably and that the rules of Council be suspended to permit First Reading at the next regularly scheduled meeting at Council. Thank you.
Thank you very much. Any questions for this witness? Seeing none, thank you very much. Anyone else to testify on this bill? Seeing none, we will move to Bill No. 17 010712, an ordinance authorizing the Philadelphia Authority for Industrial Development to purchase certain tract of land situate at 2114-60 North American Street, for a consideration not to exceed $350,000, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, PAID, and Philadelphia Industrial Development Corporation; and further authorizing PAID, 18 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010712 notwithstanding any contrary requirements of the Philadelphia Industrial and Commercial Development Agreement, to convey such land for a nominal consideration to the Redevelopment Authority of the City of Philadelphia, or its nominee; all under certain terms and conditions. Please identify yourself for the record.
Thank you, Mr. Chairman. My name is Paul Deegan. I represent PIDC and PAID, the Philadelphia Authority for Industrial Development. I'm here today to testify in support of Bill No. 010712. This bill authorizes PAID to purchase an approximately 1.1 acre property at 2114-60 North American Street for a consideration of $300,000. After acquisition by PAID, this property will be combined with adjacent properties now being acquired by the City and by the Redevelopment Authority to create a 3.1 acre site for new industrial development. I think I've attached a plan to the testimony which shows the entire block. The property is current improved with a one-story medical office building and it was also 19 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010712 included by the City in the Keystone Opportunity Zone. The purchase price is based on two independent appraisals of the property obtained by PIDC. The funds for this acquisition are available in the City's current capital budget. The acquisition is part of an effort to create new development sites in the American Street Empowerment Zone. The Commerce Director is coordinating the assembly of all properties in the block bounded by American Street, Diamond Street, Third Street, and Susquehanna Avenue -- and that's the block shown on your plan -- from a variety of public and private users to create the new parcel. Many of the properties are vacant and blighted, with some already in City ownership through the sheriff sale process. I think last week the Rules Committee heard a bill amending the redevelopment --
Don't use the word "blight," please. I'm only kidding. I had 12 hours of blight --
Well, we'll just call them vacate and sub-par condition. Some are already in City ownership and some are being acquired by the 20 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010712 Redevelopment Authority through imminent domain. By combining all of these properties and removing a small street, Bodine Street between Diamond and Susquehanna, we will be able to create a site with adequate size and depth for a modern industrial facility. We're already in discussions with an existing company, Reline Centers of America, a brake manufacturer located 148 Poplar Street. That's just below Front and Girard. Reline is within the area being developed for Schmidt's Plaza retail development and would like to build a new facility within the same general area. If we can get them onto this site that we're creating today, that would result in the construction of a new 50,000 square foot facility, the retention of 30 existing jobs, and creation of 30 new jobs. I ask that the Committee consider the bill favorably and that the rules of Council be suspended to permit First Reading at the next regularly scheduled meeting of Council. Thank you for the opportunity to testify. I'll be happy to answer any questions you may have. 21 12/13/01 - PUBLIC PROPERTY AND PUBLIC WORKS - 010712
Thank you very much. Any questions for if witness? Seeing none, anyone else to testify on this bill? Seeing none, that will conclude the public hearing of the Public Property and Public Works Committee. - - - 22 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Thursday, December 13, 2001 - - - 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: BILLS 010543, 010633, 010696, 010712 - - - PRESENT: COUNCILMAN JAMES KENNEY, Chair COUNCILMAN DARRELL CLARKE; COUNCILMAN MICHAEL NUTTER, COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS-BROWN, COUNCILMAN FRANK RIZZO - - - 23 12/13/01 - PUBLIC PROPERTY - PUBLIC MEETING
We will now convene a public meeting. The Chair recognizes Councilmember Nutter for a motion on Bill No. 010543.
Thank you, Mr. Chairman. I move that Bill No. 010543 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.)
Bill has been moved and seconded. All in favor. (Aye.)
There are none opposed. Bill No. 010543 will be reported out of this Committee favorably. A request will be made for rules suspension to allow First Reading at our next Council Session. The Chair recognizes Councilmember Reynolds-Brown for a motion on Bill No. 010633.
Thank you, Mr. Chairman. I move that Bill No. 010633 be reported out of Committee with a favorable recommendation. I further move that there been a suspension of the rules to allow First Reading at the next scheduled session of Council. (Duly seconded.)
There are none opposed. Bill No. 010633 reported out of this Committee favorably. A request will be made for rules suspension to allow First Reading at our next Council Session. The Chair recognizes Councilmember Rizzo for a motion on Bill No. 010696 with a rules suspension.
Mr. Chairman, Bill No. 010696, I move that the bill be reported out of Committee with a favorable recommendation, and requesting a suspension of the rules. (Duly seconded.)
It has been moved and seconded. 24 12/13/01 - PUBLIC PROPERTY - PUBLIC MEETING All in favor? (Aye.)
There are none opposed. Bill No. 010696 reported out of this Committee favorably. A request will be made for rules suspension to allow First Reading at our next Council Session. The Chair recognizes Councilmember Nutter for a motion on Bill No. 010712.
Mr. Chairman, I move that Bill No. 010712 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.)
The bill has been moved and seconded. All in favor. (Aye.)
There are none opposed. Bill No. 010712 reported out of this Committee favorably. A request will be made for rules suspension to allow First Reading at our next Council Session. That concludes the business of this Committee. Thank you for very much for your attendance. (Council adjourned at 9:45 a.m.) - - - 25 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 13, 2001, 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