COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, March 14, 2001 2:15 p.m. - - - Bill 000714 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID... Bill 000718 - An ordinance amending an ordinance 11 approved November 18, 1999 (Ordinance 990728)... Bill 010123 - An Ordinance approving a License/Easement Agreement between the City of Philadelphia and BBC Real Estate Corp... Bill 010124 - An Ordinance approving an Assignment and Assumption of Certain Rights Under Meter... Bill 010127 - Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development... PRESENT: COUNCILMAN JAMES F. KENNEY, Chairman COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X BILL 000714 Paul Deegan, PIDC BILL 000718 Ken Sipos BILL 010127 Paul Deegan BILL 010123 and 010124 Randy Gyory 8 9 3 3/14/01 - Public Property Public Works - BILL 000714
Council Committee on Public Property and Public Works has a quorum with attendance of members Chairman Kenney, Councilmembers Blackwell, Reynolds-Brown, Krajewski, Nutter, Rizzo and Miller. Ladies and gentlemen, the Council Committee on Public Property and Public Works is now in session to hear Bill Nos. 000714, 718 and 010127. 000714 is an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon situate at 500, 502, 504, 506, 508 and 510 West Montgomery Avenue under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID and the Philadelphia Industrial Development Corporation. Also, Bill No. 000718, which is an ordinance amending an ordinance approved November 18, 1999, Ordinance No. 99028, which authorized the Commissioner of Public Property to convey to the 4 3/14/01 - Public Property Public Works - BILL 000714 Redevelopment Authority -- I'm sorry. Are these both Gas Company bills? One is an easement for gas works? My mistake. Let's do 000714 first.
Paul Deegan, D-E-E-G-A-N. I represent PIDC, and I'm here to testify in support of this bill. This bill authorizes the City to convey an 11,000 square foot surplus City-owned parking lot at 500 to 510 West Montgomery Avenue in the American Street Industrial Area to the Philadelphia Authority for Industrial Development. After conveyance to PAID, the property will be sold to Daniel J. Lasdon, 700 East Erie Avenue in Philadelphia. Mr. Lasdon has acquired an adjacent vacant industrial building, and he intends to rehabilitate that building for residential use. The City-owned parking lot is adjacent to his building and is needed to provide accessory off-street parking for the residents of the industrial building that he is going to convert to residential use. The property will be sold -- I'm not 5 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 000714 used to these new microphones. The property will be sold for a consideration of $11,850, and that is a price based on two independent real estate appraisals of the property. The net proceeds from the sale will be deposited in the City's general fund. This is one of a number of vacant City-owned parking lots around the City which over the years we sold off to adjacent users. I think it is a good use and it's not needed for its original purposes. It is more of a liability to the City. So I ask that the committee consider the bill favorably and report it out with a favorable recommendation. (Unintelligible question.)
Are there any questions for this witness on 714? Councilman Rizzo?
I noticed many of 6 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 000714 these City-owned parking lots have electric service to them for lighting, et cetera. What do you do to make sure -- is it typical? Is it a typical real estate transaction where everything comes out of the City's name if there is a building with a phone in it, or how do you deal with making sure that all of these utilities and the lighting for those lots are no longer the responsibility of the City?
We usually have the Department of Public Property at our settlement, and they manage the City's electrical account and telephone account, so that if there are any services to that property, the Department of Public Property can notify the electric company that the ownership has changed and the account -- if there is a meter there, it should be that from that date forward it should be billed to the new owner.
So it's a typical real estate transaction where you sit down and everything changes name?
Right. We have a settlement with a title company with Public Property. Ken Sipos, who is here, I think usually attends the settlements. And they seem to go pretty 7 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 000718 smoothly, the transition over. And the taxes are allocated to the date of settlement and things like that.
Thank you very much. Any questions for this witness? None. We will move to Bill No. 00718, an ordinance amending an ordinance approved November 18, 1999, Ordinance No. 990728, which authorized the Commissioner of Public Property to convey to the Redevelopment Authority of the City of Philadelphia certain premises located at 1823 and 1825 Callowhill Street and authorizes the Commissioner of Public Property to enter into or to execute such other instruments as may be necessary or desirable to effectuate the provisions of this ordinance by extending the time frame for completion of certain terms and conditions in this ordinance, under certain terms and conditions. Please identify yourself for the record and proceed.
Mr. Chairman, my name is Ken Sipos from the Department of Public Property. Chairman Kenney and members of the 8 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 000718 committee, I'm here representing the Commissioner of Public Property. I'm here to testify in support of Bill 000718 amending Bill 990728. The Children's Crises Treatment Center has been the sole tenant of this building since November 30, 1978. The property consists of a three-story masonry building with 12,166 square feet of space. The Department of Public Property acquired the property in 1947. The Children's Crisis Treatment organization requires additional time to complete a redevelopment agreement. The Department of Public Property supports this measure. Accordingly, I respectfully ask that the committee approve Bill No. 000718. I also ask that the rules be suspended so that the ordinance may be passed upon second reading at Council.
Thank you very much. Any questions for this witness? (No response.)
Seeing none, anyone else testifying on this bill? None. 9 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 Bill No. 010127, an ordinance 3 authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, PAID, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon situate at 1021 Chestnut Street under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development agreement between the City, the PAID and the Philadelphia Industrial Development Corporation. Please identify yourself for the record.
Good afternoon, Mr. Chairman. My name is Paul Deegan, D-E-E-G-A-N, and I represent Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development. This bill authorizes the City to buy a vacant City-owned library building at 1021 Chestnut Street to the Philadelphia Authority for Industrial Development. After conveyance to PAID, the property will be sold to Mr. Stephen Starr, care of Mott Real Estate, 1606 Chestnut Street, Philadelphia, PA. 10 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 This property is the former Mercantile Library on the north side of Chestnut Street between 10th and 11th. The property was closed in the late 1980's and it's now vacant and basically deteriorating. It has a gross building area of 8700 square feet and it is about a 6000 square foot lot with 35 feet of frontage on Chestnut Street, which is a very commercial block. Mr. Starr is an experienced restaurant developer, and he intends to convert this property into a new restaurant. We feel the renovation of this property will generate new taxes and jobs for the City and contribute to the commercial revival of this block of Chestnut Street, and it will also relieve the City of liability for a vacant and deteriorating structure. The property will be sold for a consideration of $725,000. That's a price based on two recent independent appraisals of fair market value of the property. And the net proceeds from the sale will be deposited in the City's general fund. I ask that the committee consider the 11 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 bill favorably and report it out of committee with a favorable recommendation. And I would be happy to answer any questions you have.
Could you please describe the transaction and how we got where we are? How did we come up with this particular developer? Was this more than just this person did have opportunity to purchase this? Could you just take a minute and describe how you got where you are?
The property has been sitting vacant for a number of years. In fact, in 1995 the City's Department of Public Property held a public auction to try to get bid for the property and sell it, so they advertised in the papers, and they received no bids for the property. Mr. Stephen Starr contacted the District Councilman's office because he knew that District Councilman DiCicco is very active in encouraging economic development in his area and also in, I think, opening a new library east of Broad Street, which he was successful in doing to replace this 12 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 one. The Councilman's office referred Mr. Starr to PIDC, and since, if we have Council authority, we can accept properties from the City and sell them for fair market value, we began negotiating with Mr. Starr. So that's a fairly typical transaction. A lot of times people will call the City's Department of Public Property first.
So no one bought it at auction. And could you describe what occurred between '95 and this deal being put together in an attempt to sell the property other than at auction?
There really hasn't been any activity I would say for five years basically with no requests or expressions of interest from anybody. And I wasn't aware of any -- I don't think Public Property received any. I don't think the Councilman did, and we didn't. We certainly didn't.
What I'm curious about is proactively did we list it or attempt to 13 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 bring it back to the auction again, or did we list it with a real estate to try to sell it? What I'm trying to do is learn here, if it weren't for this gentleman coming to us, it appears it would have sat there with no proactive approach to disposing of it.
I'm not sure. I don't know if there was a subsequent auction or if Public Property talked to any developers. We had not. We were not actively marketing the property. Generally we concentrate on industrial land more in the real estate business outside of Center City and we were active on the Avenue of the Arts, but we get involved in City surplus properties generally when somebody has contacted either the District Councilmen or the Department of Public Property and they need us as the agent to settle the transaction, to get the appraisals and negotiate the sale. But we ourselves did not -- we don't market all the City's vacant inventory.
Thank you very much. Any other questions of this witness? (No response.)
Anyone else wanting 14 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - 010123/24 to testify? We now move to Bill 010123, which is an ordinance approving a license/easement agreement between the City of Philadelphia and the BBC Real Estate Corporation concerning premises known as 6740 Essington Avenue. Please approach the witness table. Actually, let me read into the record also Bill No. 010124, which is an ordinance 11 approving an assignment and assumption of certain rights under meter and regulatory easement as amended between the City of Philadelphia and Texas Eastern Transmission Corporation concerning premises known as 6850 Essington Avenue. I assume you will be testifying on both bills?
Good afternoon, Chairman Kenney and members of Council. My name is Randy Gyory. I'm currently the manager of --
I'm sorry. Could you move the microphone right up to your mouth 15 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010123/010124 there?
My name is Randy Gyory. I am currently the manager of PGW's program management office and in the past served as PGW's senior staff engineer in the distribution department, and I'm here today in support of Bill Nos. 010123 and 010124 --
Excuse me. Would you be requesting a suspension of the rules on these bills?
Yes. -- both bills, which will approve two right-of-way agreements, one for a segment of pipeline that leads from Gate Station 060 to PGW's Passyunk plant, and one that pertains to PGW's Gate Station 060. Upon approval, both of these agreements will become perpetual easements. Bill No. 010123 pertains to an agreement between the City of Philadelphia for PGW and BBC Real Estate Corporation. It is a right-of-way that allows PGW 16 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010123/010124 to maintain at 6740 Essington Avenue a segment of pipeline between Gate Station 060 and the Passyunk plant. Its current expiration date is March of 5 this year. 6 Bill No. 010124 pertains to an agreement 7 between the City of Philadelphia for PGW and the 8 Texas Eastern Transmission Corporation, otherwise 9 known as Tetco. It is an assignment of rights from 10 Tetco to the City that allows PGW to construct Gate 11 Station 060 at 6850 Essington Avenue primarily for 12 the Grays Ferry Co-generation Project. Its current 13 expiration date is January 25, 2002. 14 Both of these agreements will become 15 perpetual easement agreements if approved by the 16 Commission and City Council. There is no additional 17 cost associated with these agreements becoming 18 easements as consideration of $100 and $10 19 respectively was paid when these agreements were 20 originally executed. 21 Both of these agreements are critical to 22 the continued operation of Gate Station 060, which 23 is a facility necessary to serve the Grays Ferry 24 Co-generation Project. 25 Incidentally, Gate Station 060, as well 17 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010123/010124 as the pipeline that is subject to the BBC agreement was recently utilized during the Christmas Eve fire to enable PGW to continue to service large sections of the City. The 060 interconnect allowed us to redirect gas into our system that was originally to be brought in through Gate Station 030. It was necessary to shut down 030 due to the fire. For these reasons the City and PGW seek to have these rights made perpetual as easements. PGW has received PFMC board approval, and the Philadelphia Gas Commission has also recommended the approval of these agreements to Council. Given the time frames, we would ask for a waiver of the rules with respect to these bills. I will be happy to answer any questions you might have. I also have with me today PGW legal department and the City Law Department representatives, who can assist in answering any questions. Thank you.
Thank you for your testimony. On Bill No. 010124 you testified that the current arrangement expires in 2002. However, on 010123 the expiration is March 25th of this 18 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010123/010124 month. Is there any reason why one is so close to being expired and the other one is about a year or so away?
I think maybe our legal representative can answer that question.
My name is Raquel Guzman. I'm an attorney with the legal department of PGW. One of the easement agreements, one of the agreements was in fact due to expire this year, but we got a one-year extension from Tetco, so they both expired roughly around the same time.
What's it like in the time that we normally deal with these kinds of -- I mean it seems as if the 6740 Essington Avenue is really right at the last minute here. What would happen if we went by the deadline?
If we went by the deadline, we would approach the property owners for an extension as we did with Tetco.
I'm trying to get my geography down here, but I know I just recently 19 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010123/010124 attended a community meeting in southwest in reference to the development of a light rail station, and I recollect that there was a concern, a substantial cost associated with potential relocation of a natural gas supply line somewhere out there, and I'm wondering if you are aware of any interaction or any involvement with SEPTA in this area because I know that there was a significant concern about the transmission line somewhere in this immediate area.
Again, I'm not aware of -- I would have to know the specific property and actually go back and find out exactly what the --
You might want to check on that because I know that there is a project being planned to put in a new light rail facility and that -- a new station, and one of the concerns is that they wanted to have the platforms that are level with the train entry, and one of the concerns during construction was the potential relocation of this natural gas line near this construction site, and it kind of -- there is something telling me that that line is -- it is reminding me that it could be associated with this, so I might be a few blocks off 20 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 00714 in either direction, but I know that there is a significant construction project that could impact this transmission line.
I'll refer that back to our distribution department. If there is such a project, they have been dealing with the owners as of this date. Based on my recollection of this line, it may not be this line.
Any other questions for these witnesses? (No response.)
Thank you. Anyone else testifying on these bills? Hearing none, that will conclude our public hearing. We now convene a public meeting. The Chair recognizes Councilwoman Blackwell for a motion on Bill No. 00714.
Thank you, Mr. Chairman. I move that Bill No. 000714 be reported out of committee with a favorable recommendation. 21 3/13/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 00718 (Duly seconded.)
There are none opposed. Bill No. 00714 is reported out of this committee favorably. The Chair recognizes Councilmember Blackwell for a motion on 000718 with a rule suspension request.
Thank you, Mr. Chairman. I move that Bill No. 000718 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first consideration at our next session. (Duly seconded.)
It has been moved and seconded. All in favor say aye. MEMBERS: Aye.
There are none opposed. Bill No. 000718 will report out of this committee favorably. An additional request will be 22 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 010127 made for a rule suspension to allow first reading at our next Council session. The Chair recognizes Councilmember Blackwell for a motion on Bill 010127.
Mr. Chairman, I move that Bill No. 010127 be reported out of committee with a favorable recommendation. (Duly seconded.)
There are none opposed. Bill No. 010127 will report out of this committee favorably and a request will be made for rule suspension to allow first reading at our next Council session. The chair recognizes Councilmember Blackwell for a motion on Bill No. 010123 with a rule suspension.
Mr. Chairman, I move that Bill No. 010123 be reported out of committee with a favorable recommendation and also a recommendation that the rules of Council be suspended so as to permit first consideration at our 23 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 123-24 next session. (Duly seconded.)
It has been moved and seconded. All those in favor? MEMBERS: Aye.
There are none opposed. Bill No. 010123 reported out of this committee favorably and a request will be made for rule suspension to allow first reading at our next session. The Chair recognizes Councilwoman Blackwell for a motion on Bill No. 010124.
I move that Bill NO. 010124 be reported out of committee with a favorable recommendation and also a recommendation that the rules of Council be suspended so as to permit first consideration at our next Council session. (Duly seconded.)
It is moved and seconded. All those in favor? MEMBERS: Aye. COUNCILMAN KENNEY. There are none opposed. Bill No. 010124 will report out of this 24 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS - BILL 123-24 committee favorably. A request will be made for rule suspension to allow first reading at our next Council session. That concludes the business of the Public Property and Public Works Committee. Thank you very much for your attendance. (Adjourned at 2:40 p.m.) 25 3/14/01 - PUBLIC PROPERTY PUBLIC WORKS CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Public Property and Public Works Committee of the Council of the City of Philadelphia of March 14, 2001, were reported fully and accurately by me, and that this is a correct transcript of same. ______________________________ Cynthia A. Whyte, RPR (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)