COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON RULES3 Room 400, City Hall6 Philadelphia, Pennsylvania Thursday, October 27, 20117 1:55 p.m. PRESENT: COUNCILMAN JAMES KENNEY, CHAIR10 COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK DiCICCO11 COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN12 COUNCILMAN WILLIAM K. GREENLEE COUNCILWOMAN DONNA REED MILLER13 COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO, JR.14 BILL 110307 - An ordinance establishing a neighborhood improvement district in an area16 that generally includes, with the exception of those properties having frontage on north17 Broad Street, the area bounded by the northeast corner of Broad and Vine streets,18 the southeast corner of Broad and Spring Garden streets, the southwest corner of 8th19 and Spring Garden streets, the northwest corner of 8th and Vine streets and the20 northeast corner of Broad and Vine streets... - - -23 2
Thank you.2 We will now begin the public hearing,3 which is a second public hearing, on Bill4 No. 110307, an ordinance establishing a5 neighborhood improvement district in the6 area that generally includes, with the7 exception of those properties having8 frontage on North Broad Street, the area9 bounded by the northeast corner of Broad10 and Vine Streets, the southeast corner of11 Broad and Spring Garden, the southwest12 corner of 8th and Spring Garden, the13 northwest corner of 8th and Vine and the14 northwest corner of Broad and Vine and15 certain blocks of intersecting streets16 within the area, to be known as the17 Callowhill Reading Viaduct Neighborhood18 Improvement District.19 I would like to ask, since we20 have a large number of witnesses today,21 that if you have testified at the last22 hearing, you are certainly welcome to23 testify again, but we would like you to24 at least kind of keep your remarks brief.25 10/27/11 - RULES - BILL 1103071 If you're going to say exactly what you2 said the last time, you could condense it3 for us as a matter of courtesy, as a4 matter of trying to get through this5 hearing.6 Secondly, I, as the Chairman,7 am asking that when you come to the8 microphone, you identify yourself and you9 indicate whether or not you live within10 boundaries of the neighborhood11 improvement district as proposed. And if12 you don't live within the boundaries, I13 would like you to at least justify for14 the record why it is that you have an15 opinion about it or -- and certainly16 anyone is allowed to testify. If you17 live -- I guess if you live in Camden,18 New Jersey, you can testify, but I want19 to know the rationale for why you're here20 testifying against something that doesn't21 affect you.22 So with that, what we'd like to23 do is call the first panel, which is Paul24 Levy, Sarah McEneaney and John Struble.25 10/27/11 - RULES - BILL 1103071 Please come forward.2 (Witnesses approached witness3 table.)4
The Chair5 recognizes Councilman DiCicco.6 COUNCILMAN DiCICCO: Thank you,7 Mr. Chairman, and good afternoon,8 everyone. I'm going to repeat myself9 from the last public hearing. Anyone who10 is here who lives in the Hing Wah Yuen11 housing development, those properties12 have been removed from the NID, and I13 would respectfully request those of you14 who speak Chinese to relay that to the15 folks in the audience who may live in16 Hing Wah Yuen who cannot understand17 English obviously.18 The last meeting we had we went19 for a couple of hours and many people20 stayed who were affected by that. I made21 a similar opening statement then. It was22 not related to them, and I think in all23 fairness, that is a message that should24 be related and spelled out correctly,25 10/27/11 - RULES - BILL 1103071 that Hing Wah Yuen residents are no2 longer included in the boundaries of the3 NID.4 And the other point I would5 like to make is what I made last time,6 there has been a lot of misinformation,7 in my opinion, that has been circulated8 and going around regarding this NID9 legislation from as far back as July.10 The majority of the misinformation has11 been put out by PCDC, Philadelphia12 Chinatown Development Corporation. Much13 of that information that has been put14 out, misinformation, suggests that this15 NID has been created either for the sole16 purpose or partial purpose of funding the17 Viaduct that runs through the Callowhill18 neighborhood. And I'm sure you're all19 familiar with the Viaduct. We've been20 talking about it. Nothing could be21 further from the truth. It happens that22 several years ago, almost or years23 ago, shortly after I was first elected, I24 met with a number of residents who live25 6 10/27/11 - RULES - BILL 1103071 in the Callowhill community; in2 particular, Amy Hooper, and we began then3 to discuss what improvements, if any,4 could we make to the Reading Viaduct.5 There was no money available at that6 time, any City money, to be able to do7 that.8 Since then, with this9 Administration, the Nutter10 Administration, we have been able to11 provide certain sources of public monies12 that we could use to rehabilitate the13 Viaduct to make it a public, a public14 pedestrian thoroughfare that, if and when15 it is developed, will be maintained by16 the City Department of Recreation. None17 of the NID funds will be used to18 rehabilitate, improve or in any way,19 shape or form go into the development of20 the Viaduct.21 Those are just a couple of22 examples of misinformation that has been23 disseminated throughout this community24 since July.25 7 10/27/11 - RULES - BILL 1103071 I understand that people have2 different opinions on this issue and3 there are people on both sides of it.4 That's democracy. But there's been a5 constant flow of information that has6 come out of the Callowhill community, as7 far as I can see based on correspondence,8 a long, long time ago, maybe as far back9 as a year, and public meetings have been10 held.11 So I just want to get the12 record straight. You're entitled to your13 opinion. You can be for it; you can be14 against it. That's fine. But be against15 it for reasons that do not have to do16 with the misinformation that has been17 disseminated for the last several months.18 Thank you, Mr. Chairman.19
21 Please identify yourself for22 the record. 5 MS. 6 My name is Sarah McEneaney and I live at7 1115 Hamilton Street, and I've lived and8 had my business in the neighborhood for9 32 years. 14 So on September 20th, I15 testified in support of the NID and16 discussed the outreach we had done up to17 that point. A year's worth of meetings,18 e-mails, phone calls, letters were19 detailed in the green folders I gave you20 that day. Not only did I testify that21 day, I listened very carefully. 8 The average charge for the 309 remaining row homes in the district in10 year one will be $63, or just 17 cents11 per day. Year five will be an average12 payment of $70, a two-cent-a-day13 increase. Assessments for most14 condominium units range from $111, or 3015 cents per day, to $193, or 53 cents per16 day. 24 Outreach in our community is25 10 10/27/11 - RULES - BILL 1103071 definitely a challenge. About one-third2 of the properties in the boundaries are3 vacant buildings, vacant lots or surface4 parking lots. Many of these property5 owners are absent and inattentive to life6 in the neighborhood. 8 Members of the steering9 committee who own large properties and10 operate businesses have reached out to11 similarly situated property owners in a12 peer-to-peer approach. 21 After the September 20th22 hearing, we again met with leaders from23 non-profits in the district who serve the24 Asian community. We asked them how best25 11 10/27/11 - RULES - BILL 1103071 to reach their constituents and for their2 help in doing so. 10 I put on the table copies of11 all those things I just mentioned. 19 Everyone we asked agrees that the20 neighborhood needs to be cleaner and21 safer, but many do not want to pay the22 proposed assessment. Many believe the23 City should pay for improvements. 3 One of the points made in4 PCDC's letter of opposition was NID Board5 members need not be Pennsylvania6 residents. It's true, the NID law does7 allow a person who doesn't live in8 Pennsylvania to serve on the Board, but9 only if they own property or operate a10 business in the district. There are11 people who work, own and operate12 businesses in our neighborhood who live13 in New Jersey; for example, Michael14 Pasquarello and Jeniphur Whitleigh,15 owners of Cafe Lift and Prohibition16 Taproom. These are two very successful17 residents that opened seven and three18 years ago. Jany and George Demopoulos19 also live in New Jersey. Their20 restaurant at 12th and Wood Streets has21 been a neighborhood fixture for over 3022 years. 16 We are ready and eager to do17 more and hope to do so with the18 participation of all who will enjoy the19 benefits. 24
Thank you25 14 10/27/11 - RULES - BILL 1103071 for your testimony.2 Please identify yourself for3 the record and proceed.4
Good afternoon,5 Mr. Chairman. My name is John Struble.6 I live and work at 310 North 11th Street.7 I am here to support Bill No. 110307. I8 have lived in the neighborhood for 149 years and have seen it go through10 considerable change, and I would like to11 see our neighborhood become the next12 improvement district in Philadelphia.13 First, I would like to thank14 Councilman Frank DiCicco for his work on15 our behalf in helping us move this16 initiative forward in City Council. In17 my previous testimony, I spoke about the18 benefits of the 15 improvement districts19 in Philadelphia. Today I would like to20 briefly describe our neighborhood and how21 it differs from others in Philadelphia.22 Our neighborhood is only a23 ten-minute walk from City Hall. It is24 approximately 45 acres that have just25 15 10/27/11 - RULES - BILL 1103071 recently been designated as blighted,2 some of which is still zoned G-23 Industrial. We have some of this older4 industrial activity that makes up 135 percent or almost seven acres of the land6 in our neighborhood. We have the support7 of many of the small and large businesses8 for the NID. We also have nine acres of9 parking and three and a half acres of10 vacant land. So there is considerable11 room for us to build more housing of all12 types, creating a more diverse13 neighborhood population.14 We also have many large15 industrial buildings that, as the16 industry moved out, have been converted17 into mixed-use and residential that make18 up about 10 percent of our neighborhood.19 This diversity will be reflected in the20 makeup of our management association and21 its Board. The commitment of the22 management association and its Board is23 critical to the success of the NID. It24 is through them that commercial,25 16 10/27/11 - RULES - BILL 1103071 industrial and residential get their2 ideas put into action. If you want3 something to promote your business, if4 you want something to promote your5 housing project, if you want to promote6 your commercial endeavor, you get help7 from the NID.8 There are many things this NID9 can do that the City cannot, and all10 these things are under the control of11 neighbors that are engaged in the12 neighborhood.13 One of our neighbors, as Sarah14 mentioned, who came from Greece, I think15 she captures the essence of the benefits16 of the NID. You don't get something for17 nothing. You can wait and watch as18 others go by, but you need to be engaged19 and involved in the neighborhood.20 Otherwise, as Jany says, you get nothing.21 Thank you.22
Thank you23 for your testimony.24 Please identify yourself for25 17 10/27/11 - RULES - BILL 1103071 the record.2
My name is Paul3 Levy. I'm President of the Center City4 District. I do not live within the5 boundaries of the district, but for the6 last 15 years, our organization has7 leased property at 12th and Callowhill8 and I've been advising the organization9 in terms of the mechanisms of NIDs.10 I'll be very brief. I want to11 simply focus on the composition of the12 neighborhood to provide you and my13 testimony provides basic facts about the14 composition of the neighborhood. The15 proposed NID will include 655 different16 taxable parcels. A hundred and17 fifty-seven of these, or 24 percent, are18 business properties. While small in19 number, they will carry about 61 percent20 of the charges. As Sarah indicated, the21 average industrial property will pay22 about a thousand dollars a year, or $3 a23 day. The average commercial property24 will pay about $847 a year, or $2.32 a25 18 10/27/11 - RULES - BILL 1103071 day. There are 340 owner-occupied units2 within the area that are condominium3 units, and they will pay an average of4 $192 a year, or 53 cents a day. And for5 the 29 row houses in the NID, they will6 pay an average charge of $62 a year, or7 17 cents a day.8 It is a very diverse group of9 property owners and, frankly, each of10 those charges, while significant to the11 owner, aren't enough to improve the12 neighborhood, but taken together, the13 mechanism of the NID will enable them to14 improve the quality of the public15 environment.16 Finally, a look at the 201017 census for the proposed NID area tells a18 very interesting story. Within the19 boundaries of the proposed NID, there20 were in the 2010 census 1,628 individuals21 living there. According to the census,22 46 percent were white, 31 percent were23 African American, 17 percent were Asian24 and 6 percent were other, with 7 percent25 19 10/27/11 - RULES - BILL 1103071 identifying themselves as Latino.2 So I start where I began. The3 proposed Callowhill NID is as diverse as4 the City of Philadelphia. No one group5 in this area is in a majority, and6 therefore, as elsewhere in the City, when7 diverse groups of individuals live in the8 same place and share common problems,9 it's in their interest to come together10 and solve those problems together.11 Thank you very much.12
Thank you13 very much for your testimony.14 Any questions for these15 witnesses?16 (No response.)17
Seeing18 none, we thank you for your attendance.19 Next panel, Jason Hughes,20 Matthew Werthman, Michelle Liao, Janet21 Kroll.22 (Witnesses approached witness23 table.)24
Whoever25 20 10/27/11 - RULES - BILL 1103071 would like to start, please identify2 yourself for the record and proceed.3
Mr. Chairman and4 members of the Council, thanks for your5 time today. My name is Jason Hughes. I6 live in the Beaux Arts Lofts building,7 which is 1238 Callowhill. 10 In my five years of owning11 property and residing in the12 neighborhood, I have grown to see the13 potential that the area has to become a14 much cleaner, safer and greener place15 through some very commonsense and16 reasonably attainable means. While the17 neighborhood has a unique flavor and18 culture all its own, there certainly19 exists a number of negative aspects of20 the area that those seeking to create the21 neighborhood would certainly like to22 remedy. The primary goals of cleaning,23 greening and safety are ones that are24 universally beneficial to anyone that25 21 10/27/11 - RULES - BILL 1103071 lives, works, attends school, owns2 property, seeks shelter, operates a3 non-profit or even so much as walks4 through the neighborhood. 11 The idea of forming a NID is12 attractive to me because it overcomes13 what I believe to be a disease that has14 slowly spread across our country, the15 idea that we can't help ourselves, but16 rather we need someone else to do it for17 us. 20 During the months I've been an21 active member of the NID Steering22 Committee, I've spoken with many in23 favor, both passively and actively, and24 also some opposed, also both passively25 23 10/27/11 - RULES - BILL 1103071 and actively. 4 Primarily these deal with the fact that5 the NID will impose an additional6 financial burden on all who own property7 in the district. While many of us view8 the small assessment on our yearly tax9 bill to be negligible, there are those10 for which this may prove more of a burden11 than can reasonably be borne. There are12 those on the Steering Committee that have13 given this much thought and much14 discussion, and we are committed to15 electing a Board that will explore the16 options available to ensure those in17 serious financial distress may seek some18 type of relief. 22 In stark comparison to the real23 issue of financial concern, there are24 those that protest the formation of the25 24 10/27/11 - RULES - BILL 1103071 NID primarily out of FUD, fear,2 uncertainty and doubt. 13 While it's unfortunate, a small number of14 those in the NID boundaries, assisted by15 those protesting the plan that exist16 outside the boundaries, can cast a shadow17 of doubt on the potential effectiveness18 of this plan. I would ask that you join19 with those organizing this NID and20 finding the clarity of vision to shepherd21 the CRVNID proposal to reach the full22 approval vote of this Council. 7
Thank you8 for your testimony.9 Please identify yourself for10 the record, whoever is going to go next.11
Whoever13 you'd like. Please identify yourself for14 the record.15
My name is Janet16 Kroll and I live in the neighborhood17 affected, and I appreciate the18 opportunity to share my perspective.19 I have never done this before.20 I was motivated to do so by a letter sent21 out by PCDC. So I say my thanks to PCDC.22 I believe this is the law of unintended23 consequences at work. And this is a24 letter I wrote to Councilman Frank25 26 10/27/11 - RULES - BILL 1103071 DiCicco.2 Dear Councilman DiCicco, I have3 lived in the Callowhill neighborhood for4 almost a decade, and I am writing to5 express my very strong support for the6 creation of the Callowhill Reading7 Viaduct Neighborhood Improvement8 District. I have been so impressed by9 the inclusive and thoughtful process10 utilized in soliciting community members'11 feedback on the plan for the NID.12 Multiple public meetings have been held13 and information has been widely14 circulated among neighbors and business15 and property owners. There has been16 significant opportunity for debate for17 differences of opinion and perspective18 and for consensus building within and19 across all aspects of our community.20 As the parent of a21 five-year-old, I am excited at the22 prospect of our neighborhood becoming23 cleaner so that I can take my daughter24 for walks or bicycle rides without having25 27 10/27/11 - RULES - BILL 1103071 to dodge garbage and illegally dumped2 refuse. I am delighted that our3 neighborhood is beginning to be seen as a4 place for families. The NID will5 strengthen this trend by helping to6 create a cleaner, greener and ultimately7 safer neighborhood that everyone in our8 community can enjoy.9 I was surprised and saddened to10 receive a letter from the Philadelphia11 Chinatown Development Corporation12 opposing the NID. The letter contains13 half truths and innuendo designed to14 distort the purpose of the NID. The NID15 has been developed through a process in16 which debate has been welcomed and17 differences have been worked through in18 numerous public meetings. Frankly, I19 don't understand why PCDC could object to20 a grassroots-developed and21 grassroots-controlled entity by and for22 all of us in the community that will23 strengthen and beautify our neighborhood.24 On behalf of myself and my25 28 10/27/11 - RULES - BILL 1103071 daughter, Lucy, I commend your efforts to2 help strengthen our growing, inclusive3 and diverse neighborhood, and I urge you4 to continue your vigorous support of the5 CRVNID.6 Thank you.7
Thank you8 very much.9 Please identify yourself for10 the record.11
Michelle Liao, 11th12 Street, 310 North 11th Street.13 Good afternoon, Councilman.14 I'm a business keeper, a small business15 owner and a property owner in the NID.16 Of course, I would prefer not17 to have to pay the additional 7 percent18 tax in this uncertain economic times, and19 I would like to hold on every dollar I20 have, but who is going to pay for the21 amenities that I want in my neighborhood?22 If not me, then who? I'm willing to pay23 for a better quality of life; that is, to24 live in a safe and clean environment.25 29 10/27/11 - RULES - BILL 1103071 I'm willing to pay to be surrounded by2 lively energy and greenery. I'm willing3 to pay to have beautiful things to look4 at, be it big trees, grass and flower in5 the park and the old stone wall of6 Viaduct.7 I don't believe those things8 are a whole lot to ask, but who is9 supposed to pay for them? Who?10 I believe we can work together,11 pool our money and give ourselves the12 thing that we want and need. This is the13 sure path to hand ourselves the thing we14 want in our community.15 I vote yes to improvement. I16 vote yes, again, to better our17 environment in the future. There's no18 reason to wait and hoping for the day19 when the money boat will come and do it20 for us.21 So I ask you to vote yes for22 the NID. Thank you.23
Thank you24 for your testimony.25 30 10/27/11 - RULES - BILL 1103071 Please identify yourself for2 the record and proceed.3
Good afternoon.4 My name is Matt Werthman. I live at 12205 Buttonwood Street in the proposed NID6 area.7 I'm just going to read into the8 record a letter I wrote to Councilman9 DiCicco in support of the NID.10 Dear Councilman DiCicco, I'm11 writing you this letter in support of the12 creation of the Callowhill Reading13 Viaduct Neighborhood Improvement14 District, the boundaries of which are15 anticipated to run between Vine Street16 and Spring Garden Street and from 8th17 Street to Broad.18 As a resident of this19 neighborhood who has been living here20 since early 2005, I'm excited at the21 prospect of creating a safer, cleaner and22 greener environment for everyone to23 enjoy. To that end, personally I've been24 involved with our neighborhood25 31 10/27/11 - RULES - BILL 1103071 association and I regularly participated2 in neighborhood cleanups and tree3 plantings. However, the creation of an4 NID appears to provide a unique5 opportunity to take these causes to the6 next level and serve to significantly7 improve our neighborhood's quality of8 life and strengthen property values.9 Because of this, I volunteered my time10 and effort to serve as a member of the11 CRVNID Steering Committee and continue to12 do so. Further, as an attorney, with the13 assistance of my firm, Klehr Harrison14 Harvey Branzburg LLP, I am providing pro15 bono legal assistance to help with the16 formation of the proposed NID.17 As a member of the CRVNID18 Steering Committee, we believe that the19 formation of an NID by bringing neighbors20 and businesses together will continue the21 transformation of our neighborhood into a22 happier and healthier place to live, but23 also serve to make it more attractive to24 future economic investment and25 32 10/27/11 - RULES - BILL 1103071 development.2 I strongly encourage you to3 support this exciting initiative.4 Thank you.5
Thank you6 very much for your testimony.7 Are there any questions for any8 of these witnesses?9 (No response.)10
Seeing11 none, we thank you for your attendance12 today.13 I would also like the record to14 reflect that Councilwoman Reynolds Brown15 and Councilwoman Miller are both here in16 attendance at the hearing.17 Councilman DiCicco.18 COUNCILMAN DiCICCO: For the19 panel; in particular, the two young men20 and the lady, Ms. Kroll, I did get your21 letter, and thank you. Where did you22 live before you moved into the Callowhill23 district? Councilman Kenney and I were24 just commenting about that.25 33 10/27/11 - RULES - BILL 1103071
I rented in Old2 City for a few years and then bought in3 our neighborhood now.4 COUNCILMAN DiCICCO: Are you a5 native Philadelphian?6
Fairless Hills,7 about a half hour north on 95.8 COUNCILMAN DiCICCO: Okay.9
I actually worked10 in Philadelphia since '97, and when I11 first moved here in '05, I rented for a12 year at 11th and Arch Street, Vitt Karen13 (ph) building.14 COUNCILMAN DiCICCO: And15 Ms. Kroll.16
I've lived in17 Philadelphia since 1995. I rented at18 Fairmount and then I purchased almost a19 decade ago in Callowhill.20
I'm from Bella22 Vista, on Bainbridge Street, 6th and23 Bainbridge, for 20 years before I moved24 here.25 34 10/27/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: I didn't2 ask because I knew, but I forgot that3 maybe the rest of the panel didn't know4 that.5 My point is, and I guess the6 point that Councilman Kenney and I were7 talking, you could have chose to live8 anywhere else in the City. You chose9 Callowhill. I suspect that when you10 moved in, it was at the time of the real11 estate bubble, things were looking as12 though this neighborhood could probably13 really take off and you're going to see a14 lot more residential development and15 other types of uses, but obviously the16 bubble burst. So you're there, but17 you're happy to be there apparently,18 you're happy to be there and you're very19 active in the community.20 But the point we're making is,21 you could have lived just about anywhere22 else if you chose obviously, but you23 chose that neighborhood and you're24 committed to it, and for that, I just25 35 10/27/11 - RULES - BILL 1103071 wanted to say thank you.2
Just one5 second. I certainly agree with6 Councilman DiCicco. The only thing,7 Ms. Kroll, I don't know how you could8 leave Fairmount. I don't know why9 anybody would want to leave Fairmount.10 That's the only -- I think you know where11 I live.12
Thank you,13 Councilman.14 Thank you for your testimony.15 Panel 3, Jeffrey Koopman, Jason16 Hughes, Bruce Shelley, Robert Cheetham.17 (Witnesses approached witness18 table.)19
Please20 identify yourself for the record and21 proceed.22
My name is23 Jeffrey Koopman. I did testify in the24 last public meeting, and I thank you for25 36 10/27/11 - RULES - BILL 1103071 the opportunity, and I'll summarize what2 I said earlier.3
I don't7 need your exact address, but just if you8 live in the NID.9
My name is10 Jeffrey Koopman. My wife and I live,11 work and own property at 429 North 13th12 Street, well within the boundaries of the13 proposed NID. We've lived there for 1114 years. When we moved into the area, we15 knew what it was. It was dark, dirty,16 ominous that had been mostly overlooked17 and forgotten by the City, neglected by18 its residents and transients. Over the19 years, many of the residents have taken20 an active role in making an effort to21 improve the conditions that surround us,22 a neighborhood association, a23 neighborhood town watch program soon24 followed. Formation of the NID seemed to25 37 10/27/11 - RULES - BILL 1103071 be the next logical step for many of us.2 It was simple really. We were3 informed by the City and state agencies4 that they did not and will not have any5 funds available to pay for regular6 cleaning and trash removal, particularly7 from vacant and public property. The8 funds were not available for additional9 lighting, and the funds wouldn't be10 available for additional police patrols.11 So we as neighbors would have to assume12 some of these responsibilities ourselves.13 We planted trees. We14 encouraged building owners and our15 Councilman to improve outside surface16 lighting. We have arranged and17 participated in neighborhood cleanups,18 but these combined efforts have not been19 enough.20 As citizens, we have a unique21 opportunity to take advantage of the many22 positive changes happening in and around23 our neighborhood. Whether it's the24 significant residential and commercial25 38 10/27/11 - RULES - BILL 1103071 developments on North Broad Street, the2 proposed Spring Garden Parkway and the3 possible reclamation of the Reading4 Viaduct, it is all happening around us,5 and if we ever had an opportunity to6 effect positive change in our7 environment, it's right now.8 Each of these projects have9 required financing and a commitment by10 all those involved. The formation of a11 NID in our neighborhood is no different.12 You already have the commitment of your13 neighbors who want to volunteer their14 time and expertise to effect this change.15 And, more importantly, for roughly the16 cost of one month's Triple Play option on17 Comcast, the average resident in the area18 can finance their respective assessment19 portion for one full year.20 It is with continued optimism21 that I look forward to our neighborhood's22 future, and I ask those of you that have23 a vested interest in improving your own24 surroundings to make a small capital25 39 10/27/11 - RULES - BILL 1103071 investment into your own future by2 supporting this proposal.3 Thank you.4
Thank you5 very much.6 Please identify yourself for7 the record.8
My name is9 Robert Cheetham. I do not live in the10 neighborhood, but own a business in the11 neighborhood located at 340 North 12th12 Street.13
Mr. Chairman and15 members of Council, thank you for this16 opportunity to provide feedback regarding17 the NID. I did testify at the last18 session and will try to summarize as well19 as add a little bit to what I said at the20 time.21 In terms of background, I'm not22 a native of Philadelphia. I grew up in23 the Midwest. I lived overseas for24 several years, came to Philadelphia in25 40 10/27/11 - RULES - BILL 1103071 1994 to go to graduate school. After2 finishing school, I stayed on. I worked3 at the Philadelphia Police Department in4 the City of Philadelphia for four years.5 I started my business around6 2000, worked out of my apartment that I7 was renting at the time. But as the8 business grew, I needed to start to hire9 people, and I opened my office in the10 Callowhill neighborhood in 2002.11 Over the last nine years, we've12 grown from one person to a little over 3013 people. We're in the high tech business.14 Unlike a lot of the rest of the economy,15 we're in a very competitive labor market.16 We want to continue to keep and grow our17 business here in Philadelphia and in the18 Callowhill neighborhood, but we have some19 serious, serious quality of life concerns20 that are real and significant.21 I think this NID is an22 important grassroots effort that will23 make substantial progress towards solving24 some of these. And I say this not just25 41 10/27/11 - RULES - BILL 1103071 as someone who goes to work there and2 spends a lot of time in this3 neighborhood, but as someone who has to4 attract people in a competitive labor5 market to come work for my company.6 As an employer, we always try7 to recruit locally, but we end up8 competing for software engineers all9 across the United States and around the10 world. A few weeks ago -- I think the11 last time I was here I told you about12 someone I was interviewing that day who13 lives in New Mexico. Well, in that round14 of folks we were interviewing, I had15 folks from Arizona, New Mexico,16 Minnesota, Boston and applicants from17 many other parts of the world.18 When we find the right person,19 sometimes they live here, but often they20 live not just outside Philadelphia but21 some other part of the country, and we22 need to attract them, convince them to23 come work here, and that is a tough case24 to make. They walk in for an interview25 42 10/27/11 - RULES - BILL 1103071 and they walk past trash and graffiti and2 other types of quality of life concerns3 that are real and significant.4 So I'm here to make a case --5 even though this will raise my costs, I'm6 here to make a case about economic7 development, about employment, about tax8 revenue for the City, as well as about9 the livability and quality of life of the10 neighborhood in which our business is11 located.12 Quite frankly, this is selfish.13 I want to have a vital and dynamic14 neighborhood that will make it easier for15 me to convince people to come work for16 me, come live in Philadelphia, pay taxes17 here, raise their children here and make18 a life here. I see the proposed NID as a19 vital way to make that possible.20 Thanks very much for your21 attention.22
Thank you23 very much. Have you determined your24 potential NID cost annually as a business25 43 10/27/11 - RULES - BILL 1103071 person?2
We are not a3 property owner, so we rent in a building.4 We have discussed it with our owner. Our5 owner has agreed -- he also testified6 last time, and he's actually agreed not7 to pass on the cost.8 That said, I would voluntarily9 pay this even though I'm not a property10 owner.11
If I owned14 property, it would probably be on the15 order of a few hundred dollars a year.16
Thank you.17 Please identify yourself for18 the record.19
My name is Bruce20 Shelley and I am a business owner in the21 area and I have probably about 30,00022 square feet of property.23
You could24 give yourself an advertisement if you'd25 44 10/27/11 - RULES - BILL 1103071 like. You can say what the name of your2 business is.3
I can. Thank4 you, and I will. Only because of the5 fact that Shelley Electric has been in6 the area at this point since 1940, and in7 1940 and over the last, I guess, many8 years and three generations, I've seen a9 lot of things happen in the neighborhood.10 I certainly have seen the blight that has11 developed during the '60s and the '70s,12 and I have been so pleased to see the13 benefits that have come up with some of14 the basic renovations that have occurred.15 But what I will say is that in16 order to get onto the next level, in17 order to continue the development and to18 see this neighborhood flourish, we need19 to have a NID and also get cooperation20 from the Center City District, and then21 we will see good things happen in this22 neighborhood.23 So, Councilmembers, I'm here to24 support this wonderful development here.25 45 10/27/11 - RULES - BILL 1103071
Thank you.2 And have you determined your business's3 cost?4
And I would9 appreciate that because I have been doing10 the cleanup in the area myself over the11 last many years.12
You're16 potentially saving money by pooling your17 NID assessment.18
Thank you.21 Thank you.22 Any questions for these23 witnesses?24 (No response.)25 46 10/27/11 - RULES - BILL 1103071
Seeing2 none, thank you very much.3 Next set of witnesses are4 Tamara Sepe, William Curran and Matthew5 Pestronk.6 (Witnesses approached witness7 table.)8
Before the11 Parking Authority gets here.12 Whoever would like to start,13 please identify yourself for the record.14
Mr. Chairman and15 members of Council, my name is Tamara16 Sepe. I live within the boundaries of17 the proposed NID. 21 The last time that I spoke I22 testified about the number of children in23 the neighborhood and the impact on their24 education and quality of life. I am an25 47 10/27/11 - RULES - BILL 1103071 early childhood educator. 9 As an advocate for child10 well-being, I want to point out some11 facts about our neighborhood. There are12 three schools included in the NID13 boundaries and one school that is14 partially included within the NID15 boundaries. These serve between 1,50016 and 2,500 children depending on whether17 or not you count that fourth school. 6 percent of the20 total number of children attending school21 in all of Philadelphia, and this is all22 within a neighborhood that is just23 one-tenth of a square mile or one24 ten-thousandth of the total land area of25 48 10/27/11 - RULES - BILL 1103071 the City. 5 In addition to schools, we have6 social service agencies, such as7 Bethanna, a foster care and adoption8 agency, and Chances, a residential9 treatment facility for mothers and10 children. 14 Since the last hearing, as part15 of our continued outreach efforts, I have16 begun to contact these schools and social17 service agencies to learn more about18 their concerns and visions for the19 neighborhood. I have learned that many20 of these schools have community service21 and civics components to their22 curriculums. 3 She proudly described the work4 her students do in the community, from5 work with the homeless to making special6 efforts to appreciate our city's police7 officers. 14 When I asked her how this15 affects her students, she emphasized the16 contrast between the values of17 citizenship she teaches inside her school18 and the state of the neighborhood19 immediately outside it. 23 I also asked her what attracted24 her to this neighborhood. Her answers25 50 10/27/11 - RULES - BILL 1103071 echo those of many I have talked to -2 convenience of Center City and public3 transportation, some good neighbors and4 diversity of the residents. But, sadly,5 because of neglect, blight and poor6 security, these strengths remain hidden7 to many, only partially realized. 16 We cannot continue to allow17 children and families to live and attend18 school in this unhygienic, dangerous19 environment. 24 When I travel to other25 51 10/27/11 - RULES - BILL 1103071 neighborhoods throughout the City to work2 with children, I see many examples of3 what a healthy relationship between a4 school and a community looks like. In5 those neighborhoods, children go on6 walks, they greet and interact with7 residents and attend field trips to8 nearby businesses. 21 Because of some of the pressure22 from the opposition, the people23 testifying on our behalf today do not24 represent the full diversity and breadth25 52 10/27/11 - RULES - BILL 1103071 of our support. In our private2 conversations and correspondences with an3 ethnically and economically diverse range4 of neighbors, business owners and leaders5 of non-profits, we have had more than one6 person tell us they support us, but that7 they cannot speak publicly on behalf of8 the NID because of fear of economic,9 political or social repercussions. 15 I, along with many of the16 people you see testifying in favor of the17 NID today, already spend many, many hours18 of volunteer time improving this19 neighborhood. Participating and20 organizing cleanups, partnering with the21 police and working on historical22 preservation projects are just a few of23 the ways the NID supporters you see here24 today are already improving this25 53 10/27/11 - RULES - BILL 1103071 neighborhood. 7
Thank you8 for your testimony.9 Mr. Curran, did you beat the10 Parking Authority?11
Oh, good.13 I'm glad.14 Whoever would like to go next,15 please identify yourself for the record.16
My name is Bill17 Curran. I have had an architectural and18 metalwork design and fabrication business19 in the neighborhood for 11 years. I also20 live, own property and have a family21 here.22 At the September 20 Rules23 Committee hearing, I spoke about the24 historical importance of this25 54 10/27/11 - RULES - BILL 1103071 neighborhood. A section of the proposed2 NID is in fact on the National Register3 of Historical Places. I spoke about what4 a loss it is for a city, where history is5 a major natural resource, to allow this6 icon of our industrial past to fall to7 ruin. While I still consider this an8 important point, I want to speak about9 something more personal today.10 Two winters ago on a cold11 Friday night a man was sitting on the12 steps of the building on my corner at13 10th and Hamilton surrounded by police14 with blood pouring from his forehead. He15 had been hit in the skull for a week's16 wage he was carrying in cash in his17 pocket. This was part of a crime spree18 in the same one- or two-block area where19 Asian and Latino immigrants, perceived as20 unlikely to go to the police, were being21 systematically targeted for their Friday22 night cash wages. These men were23 vulnerable as they walked down 10th24 Street through a natural dead zone with a25 55 10/27/11 - RULES - BILL 1103071 large factory on one side and an2 abandoned lot on the other. After 5:003 p.m., this particular area is unlit and4 empty. Many weeks later, the police were5 able to make some arrests, but not until6 there were quite a few more victims.7 As the prospect of the NID is8 before us, I can't help but reflect back9 to that evening and wonder if this would10 have happened had there been adequate11 lighting and if the sidewalks had been12 better maintained, giving the impression13 of a cared for and guarded neighborhood.14 I will never know for sure, but what I15 can say with certainty is that based on16 the results of a study done on17 improvement districts in Los Angeles is18 that when an improvement district is19 formed and money is spent on security,20 crime goes down. More specifically, for21 every $10,000 spent on security, 3.422 fewer crimes occurred in that area.23 I've heard the argument about24 how we already pay for these security25 56 10/27/11 - RULES - BILL 1103071 services when we pay our taxes, but this2 isn't entirely true. Property owners are3 responsible for maintaining their own4 sidewalks and keeping them free of litter5 and debris, a function that would be6 aided by an NID. Most importantly, as7 good citizens of both our neighborhood8 and our city, we are responsible for9 partnering with the City to make sure10 resources are used effectively.11 I see the partnership as a12 critical function of the NID. I have13 volunteered for cleanups, served on the14 Board of the neighborhood association and15 watched the efforts of my neighbors for16 the last 11 years, and I have seen17 improvements. But I know to the degree18 of change we need to accomplish, and it19 can't be achieved on volunteer efforts20 alone. We need an NID.21 As a father, business owner and22 employer in the neighborhood, property23 owner and engaged citizen, I ask City24 Council to support the NID as a way to25 57 10/27/11 - RULES - BILL 1103071 make the neighborhood a safer place to2 live, work and do business.3
Thank you4 for your testimony. Have you calculated5 both -- you are both a resident and a6 business owner?7
Do you have9 two separate facilities, two properties?10
What is12 your calculation on your total annual13 contribution? Have you done it? If you14 know offhand.15
I believe on the16 one property over on Wood Street, it's a17 little over 200, and then as far as the18 one on Hamilton, it is that one I'm not19 exactly sure.20
People are25 58 10/27/11 - RULES - BILL 1103071 asking for this, but I want to make sure2 the record is clear what you're willing3 to contribute to it voluntarily. So4 thank you.5 Please identify yourself for6 the record and proceed.7
My name is Matt8 Pestronk. I'm not a resident of the9 neighborhood. I'm a resident of10 Washington Square. 14 As the developers of the15 Goldtex Building, we're excited that the16 neighborhood surrounding our property is17 slowly nearing its potential to offer all18 the people in the neighborhood a higher19 quality of life. 4 Many opponents of the NID could5 accuse us of being self-interested in our6 support for its formation, but nothing7 could be further from the truth. We have8 no additional property holdings in the9 neighborhood and have no immediate plans10 to make further investments. The reality11 is that our property is on the edge of12 the neighborhood and is physically13 oriented towards Center City and14 Chinatown equally as it is to the15 Callowhill neighborhood. You don't have16 to -- someone coming to rent an apartment17 in our new building won't have to walk18 through -- will not have to walk through19 any part of the Callowhill neighborhood20 to reach our property. So our interest21 is truly in aligning with the22 neighborhood. 3 The opportunity to provide a4 cleaner and safer environment through the5 formation of the NID is simply the right6 thing to do for everyone. No one wants7 to pay any more taxes, but the8 opportunity to create Philadelphia's next9 great neighborhood is simply the10 definition of low-hanging fruit. 18 From a financial perspective,19 the City doesn't have the money to pay20 for the services which are desperately21 needed for the neighborhood. It's a sad22 fact. Everyone says the City should pay,23 the City should pay. 7 It's pretty simple. A piece of land in8 Center City that can support 12 times its9 lot area in development and has similar10 zoning to much of the vacant land in the11 Callowhill area is generally worth about12 $35 a foot. In Callowhill, the same land13 is worth $10 a foot or even substantially14 less. Rental rates for commercial and15 apartment buildings, mainly rental16 apartment buildings, are basically the17 same in Callowhill as they are in the18 lesser upscale parts of Center City but19 still established neighborhoods. But the20 appearance of the neighborhood is just21 keeping values down. 24 We just obtained a construction25 62 10/27/11 - RULES - BILL 1103071 loan for our project after approaching2 numerous lenders, and the reaction among3 bank lenders of the neighborhood was4 generally not positive. And it's5 amazing, there's no serious, serious6 violent crime issues in the neighborhood,7 but it looks like a wasteland. 12 So we really feel like the13 threat of gentrification in the14 neighborhood, which is a major concern of15 some of the opponents of the NID, is16 completely unfounded. 2
Thank you3 very much for your testimony.4 Are there any questions for5 these witnesses?6 (No response.)7
Seeing8 none, we thank you for your attendance.9 Next panel is John Chin,10 Cecilia Yep, Philip Browndeis and James11 Morton.12 (Witnesses approached witness13 table.)14
Good15 afternoon. Please identify yourself for16 the record and proceed.17
Good afternoon. My18 name is Cecilia Moy Yep. I am a founder19 and direct emeritus of the Philadelphia20 Chinatown Development Corporation, known21 as PCDC. PCDC is a non-profit 501(c)(3)22 organization that has been in existence23 for 45 years. The organization was24 founded in 1966 when the state threatened25 64 10/27/11 - RULES - BILL 1103071 to demolish the Holy Redeemer Church and2 School to make way for the Vine Street3 Expressway. 7 The scaled-down Expressway as8 designed today separated the church and9 school from the core of Chinatown. The10 Expressway and all the other major urban11 renewal projects in Center City caused12 the community to lose 25 percent of its13 housing stock. Relocation for displaced14 persons was difficult. The community was15 told to grow to the north, which we did,16 with consultants, developed the17 comprehensive plan for the growth and18 development of the community, known as19 the Chinatown North Plan. 21 The community knew that in22 order for the church and school to23 survive, we would have to fortify and24 support it. 5 This development was a very6 difficult project, as it was built over7 the Center City Commuter Rail Tunnel. In8 1999, the Fannie Mae Foundation awarded9 PCDC the National Maxwell Award for10 Excellence in Community Development. 14 PCDC moved our office from the15 center of Chinatown to Chinatown North to16 support the pioneers who were willing to17 settle in the barren area. 20 I'm giving this background to21 you so you can understand why our22 community is upset with the NID23 legislation. Chinatown North is an area24 from 8th to 12th Street and from Vine to25 66 10/27/11 - RULES - BILL 1103071 Spring Garden Streets. We consider2 Callowhill a neighborhood on the other3 side of the Reading Viaduct. The4 Chinatown community had no knowledge, nor5 were we properly informed in the planning6 of the NID plan, nor were we considered7 in the process. The Callowhill East8 group now consider us in their plan, only9 because they need our money. Only now10 did they decide to include us. 14 Callowhill East set up a Board15 of persons who don't reside in the16 neighborhood. None of our residents are17 on their Board, and yet this is the Board18 that is going to make decisions as to how19 to spend our tax money. 24 Their dream is a park on top of25 67 10/27/11 - RULES - BILL 1103071 a viaduct. Our dream is a multi-service2 community center to provide recreational3 activities for our children, health4 services for our neighborhood, a center5 that will provide services for our senior6 citizens and much-needed housing for our7 residents. That's what we are working on8 and have been for the past ten years, and9 that is our community's focus. If we10 want to go to a park, we can go to11 Franklin Square. 13 You can easily see why we are14 against this legislation. It is so15 unfair and so unjust. 17 This is not to say we are not18 for safe and greener, cleaner19 neighborhoods, as we have already been20 working in our area to address these21 issues. 22 We recently worked on the plaza at 10th23 and Vine Streets for open space, a24 neighborhood project. 4 I don't know if you can say the same for5 Callowhill East. If they want this6 legislation to clean railroad tracks on a7 viaduct which they don't even own, let8 them pay for it. They did not include9 our community in their plan. 12 The Chinatown community has our13 own plans and have set our goals. 16 We also resent the fact that17 after our community has been working in18 the neighborhood for the past 25 years as19 Chinatown North, now they are trying to20 make us part of their Callowhill21 neighborhood's association. Thanks, but22 no thanks. Our community does not want23 to be a part of their proposal, because24 they have not been transparent and they25 69 10/27/11 - RULES - BILL 1103071 don't deserve our trust. They excluded2 us in the planning until it came time to3 pass the legislation which imposes a tax4 on us.
Their plan is not a benefit to5 our community, and they know it. That's6 why they didn't involve us. 8 If that's not the case, then9 great, exclude us. 12 City Councilmembers, do not13 pass this legislation. 16
Thank you.17 Before I recognize Councilman DiCicco, I18 for the life of me from this hearing and19 the last hearing, I can't understand why20 your goals and the goals of the NID are21 mutually exclusive. I just don't22 understand it. And I think last time we23 went through a very precise process of24 cutting out all of the concerns or the25 70 10/27/11 - RULES - BILL 1103071 residences and businesses in the area2 that is Chinatown proper and Hing Wah, I3 believe, was taken out. I don't know if4 you live in the NID district or not, but5 I really don't understand why one set of6 goals and another set of goals are7 mutually exclusive. I'll never get it.8
Well, one thing, you9 took out 90 votes. Okay? And they know10 they need those votes to pass this11 legislation. But you didn't go far12 enough. You should go up to the Viaduct,13 because we're on this side of the14 Viaduct. They're on the other side of15 the railroad tracks. We go from 12th16 Street to 8th Street. They go from 12th17 to Broad. We have a much larger18 population and area than they do.19
So if you take out22 the 90 votes and they're not going to pay23 taxes, that imposes taxes on all the rest24 of the community. And it's a progressive25 71 10/27/11 - RULES - BILL 1103071 tax, a tax that goes up every year. We2 already are threatened with a 10 percent3 tax by the City, an additional 7 percent4 this year, and it's going to go up5 constantly.6
A lot of those people9 had bought properties and they're under10 tax abatement. We're not. We've been11 there for a long time.12
Do you know13 of the people who are left in, not the 9014 that were taken out but the people who15 were left in, do you have any information16 on how many of them are senior citizens17 or on income that would qualify for the18 Pennsylvania state tax rebate program?19 Do you know that?20
How many22 within the NID area, people you're23 concerned about, how many of them qualify24 for the tax rebate?25 72 10/27/11 - RULES - BILL 1103071
Well, we have two5 handicapped units in that development,6 and I would say that --7
Which8 development?9 COUNCILMAN DiCICCO: Which10 development?11
But they're22 out.23 COUNCILMAN DiCICCO: They're24 out.25 73 10/27/11 - RULES - BILL 1103071
I know, but you're2 saying they're out, but their 90 votes3 are out, too.4
But they're5 not being taxed. I don't understand what6 the problem is. I thought we solved that7 last time.8
But then when you9 take out that many people, then the tax10 burden goes up. You have a certain11 budget and you have to meet that budget,12 so that imposes -- not a 7, maybe a 1413 percent increase in taxes. They're all14 looking at two, three hundred.15
We also support --21 COUNCILMAN DiCICCO: Cecilia,22 with all due respect, you and I have23 worked together.24
I know we have.25 74 10/27/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: But for2 maybe the casino issue, we were pretty3 much in sync on all other matters.4
Exactly.5 COUNCILMAN DiCICCO: But you6 keep referring to "we." Hing Wah Yuen is7 out. You can say they took 90 votes out,8 but they're out because the argument that9 was made at the last hearing was that the10 folks who live in Hing Wah Yuen are poor,11 live in a below-poverty level and they12 can't afford it and that they have their13 own homeowners association, of which my14 understanding from Ms. Young, I believe15 it was, that they're paying somewhere16 around $130 to $140 per month.17
She misunderstood the18 question.19 COUNCILMAN DiCICCO: So if -- I20 don't know what it is. That's what I was21 told. So let's assume it's 140 a year.22 The reality of this whole thing is, they23 wanted out. The rest of the NID, the24 folks that I've been dealing with, said25 75 10/27/11 - RULES - BILL 1103071 if they want out, fine. You're making2 the assumption that the NID could3 arbitrarily change the tax structure at4 will. It doesn't work that way.5 And I just want to go over a6 couple of things. You talked about 10th7 and Vine at the plaza. How did that8 happen?9
It was --10 COUNCILMAN DiCICCO: You said11 "we" made it happen. You were saying12 "we" made it happen. How did that13 happen?14
We had the15 cooperation of Hahnemann University16 Hospital and with PennDOT.17 COUNCILMAN DiCICCO: Government18 money, City of Philadelphia --19
Yeah, some of it.20 COUNCILMAN DiCICCO: -- my21 office helped fund that, correct?22 Correct?23
Yeah.24 COUNCILMAN DiCICCO: Thank you.25 76 10/27/11 - RULES - BILL 1103071 Franklin Square, whose money2 went into developing Franklin Square?3
City and state.4 COUNCILMAN DiCICCO: Thank you.5 You mentioned a couple of6 others. Hing Wah Yuen, was it not7 subsidized with government money?8
HUD.9 COUNCILMAN DiCICCO: Government10 money.11 So when you say "we," with all12 due respect, it isn't that Chinatown had13 an organization that funded all these14 projects, and that's not -- I'm not15 criticizing that, but don't make it sound16 as though Callowhill is looking for17 something that they're not entitled to.18 They're taxing themselves, when19 government paid for all of those20 amenities that you just spoke about that21 Chinatown has been the beneficiary of for22 at least 16 years that I've been in23 office.24
Well, true, but the25 77 10/27/11 - RULES - BILL 1103071 fact --2 COUNCILMAN DiCICCO: And when3 you say "we," I assume -- and correct me4 if I'm wrong -- you're talking about5 Asian Americans?6
I'm talking about we7 did the work together to make it happen.8 COUNCILMAN DiCICCO: When you9 say "we" --10
Nothing happens.11 They can make it happen for their12 community. Why don't they do it.13 COUNCILMAN DiCICCO: Well, we14 are. The Viaduct --15
We don't tax our16 people.17 COUNCILMAN DiCICCO: The18 Viaduct will be government monies, not19 NID money.20
They want to tax the24 people.25 78 10/27/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: That's not2 for the Viaduct.3
That's where it's4 going to go.5 COUNCILMAN DiCICCO: All right.6
It's true. I mean,7 the people here, 35 to 40 percent of our8 community are in the poverty level.9 COUNCILMAN DiCICCO: But we10 went through this with John Chin at the11 last meeting. I need to interrupt you.12 When you take that 35, 40 percent of the13 people in Chinatown, the percentage of14 people, that 45 percent that are below15 poverty, and you segregate them or take16 those people that may be in the NID, that17 number probably goes down to 4 or 518 percent. And if they do qualify -- if19 they are under the poverty level,20 Councilman Kenney was alluding to this,21 they're entitled to 100 percent real22 estate tax rebate. So even if they23 increased $100 a year, $500 a year, those24 folks are not going to actually pay a25 79 10/27/11 - RULES - BILL 1103071 cent, because the State of Pennsylvania2 is going to give them back all of their3 real estate tax money anyway.4
But --5 COUNCILMAN DiCICCO: And6 they're going to get the benefit of the7 NID.8
Who is?9 COUNCILMAN DiCICCO: The people10 who live in the community.11
We won't see it on12 our side of the railroad tracks.13 COUNCILMAN DiCICCO: You want14 it on your side?15
We'll do it ourself.19 We don't want to be in the NID.20 COUNCILMAN DiCICCO: Well,21 maybe I should wait for Mr. Chin, because22 I have a question about that. Would you23 consider a NID for Chinatown?24
You're asking me?25 80 10/27/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: Well,2 anybody.3
Well, if we have4 input in it and we are part --5 COUNCILMAN DiCICCO: Would you6 consider a NID or a BID in the Chinatown7 community, creating your own NID and/or8 own BID?9
Yeah.10 COUNCILMAN DiCICCO: I've been11 asking -- for 16 years I've been trying12 to encourage Chinatown, as you know, to13 create its own BID. Now you're ready to14 do one?15
Yes.16 COUNCILMAN DiCICCO: So let's17 talk before I leave and we'll create a18 BID for Chinatown.19
At least we will have22 control of our tax money.23 COUNCILMAN DiCICCO: You can do24 whatever you want. We will create a BID25 81 10/27/11 - RULES - BILL 1103071 for the Chinatown community.2
That's why we don't3 want to be part of the Callowhill --4 COUNCILMAN DiCICCO: You're not5 part of it.6
But you're9 not.10 Please, whoever is next.11 Mr. Chin, if it's you.12
Good afternoon,13 Chairman Kenney and Councilman Frank14 DiCicco and members of the Rules15 Committee.16 Before I begin my testimony, I17 do want to address some earlier comments18 that Councilman DiCicco made before the19 hearing started.20 Councilman DiCicco mentioned21 that PCDC put out misstatements in the22 literature that we put out in the23 neighborhood, specifically to the fact24 that the neighborhood improvement25 82 10/27/11 - RULES - BILL 1103071 district is connected with the2 development of the Reading Viaduct. I3 would just like to share five points with4 you, and our statement is based on these5 five points.6 This is not in my testimony,7 but, number one, the original legislation8 that was written, there was a statement9 in there that Deputy Mayor Alan10 Greenberger asked to be removed. That11 statement made reference to the fact that12 the NID would basically engender the13 development of the Reading Viaduct.14 That's number one.15 Number two, the name of the NID16 itself, Callowhill Reading Viaduct17 Neighborhood Improvement District, leaves18 one to believe that there is a connection19 between the NID and the Reading Viaduct.20 Thirdly, in a meeting with21 Sarah McEneaney, John Struble and a few22 other people, I specifically asked Sarah23 McEneaney if she would pledge that none24 of the monies raised with the NID would25 83 10/27/11 - RULES - BILL 1103071 go towards the Reading Viaduct, and she2 declined to do that.3 Number four, Paul Levy in his4 presentation at a community meeting of5 his PowerPoint presentation of this6 Reading Viaduct greening project and7 neighborhood improvement where he showed8 both greening and affordable housing, he9 specifically stated that the mistake that10 the neighborhood and the High Line made11 was that they did not establish a12 district to pay for the operation to the13 High Line, and they're having a difficult14 time doing that now. So what he proposed15 for this area here is that this area16 should start a NID to avoid that same17 mistake.18 And, lastly, in a conversation19 I had with a funder from the Fels20 Foundation, Helen Cunningham, she21 specifically said that her understanding22 is the NID is very much connected to the23 Reading Viaduct development.24 So based on these five points,25 84 10/27/11 - RULES - BILL 1103071 our understanding is that the NID had2 everything to do and connected with the3 Reading Viaduct.4
Could I ask5 you a question before you get started?6 What are the boundaries of PCDC?7
Our boundaries go up8 to Spring Garden, 8th Street to 11th9 Street. That's our planning area.10
And what11 percentage of the PCDC catchment area12 exists in the NID as we speak to the13 legislation today?14
Just give17 me a ball park percentage of the hundred18 percent of the catchment area of PCDC19 based on this legislation, how much of20 that is in the NID?21
See, the4 problem sometimes in the testimony5 against this is that the boundaries keep6 changing. One hearing the boundaries are7 described as one area and the next8 hearing it's described a little larger.9 It's kind of floating boundaries.10 But when you testified last11 time, it was okay with PCDC that we did12 the amendment that took out all of those13 residential properties in the NID14 boundary; is that correct?15
Is PCDC in22 agreement with the amendment that we23 passed or we added to the bill last24 hearing?25 86 10/27/11 - RULES - BILL 1103071
All right.4 Thank you.5 Please -- I don't know if you6 have identified yourself or not. Please7 identify yourself and proceed.8
I am John Chin, the9 Executive Director of the Philadelphia10 Chinatown Development Corporation. I11 testified on September 20th against this12 bill. 14 I'd like to take this15 opportunity to focus my comments on two16 specific points. 21 Second, I would like to point22 out that the problems that we experience23 in our neighborhood are the result of24 policy decisions and economic factors25 87 10/27/11 - RULES - BILL 1103071 over the decades. 16 Chinatown has always been a17 live-work neighborhood. Chinatown is a18 gateway for new immigrants, and small19 businesses are a means for immigrants to20 obtain the American dream. 23 The fact is that immigrants that come to24 this country with limited English25 88 10/27/11 - RULES - BILL 1103071 proficiency have limited employment2 options. PCDC has worked to ensure that3 Chinatown continues to expand for both4 businesses and residents. PCDC has5 developed the following projects over the6 last 20 years to transform Chinatown7 North into a desirable live-work8 neighborhood. 10 And right currently, in 2011,11 we are working two streetscape projects,12 along 10th Street and 9th Street. 16 PCDC cares about this17 neighborhood and has worked tirelessly to18 improve it for all to enjoy. Our focus19 has always been to help those who are20 most in need. We want to continue doing21 our work and carrying out our vision and22 mission for Chinatown. 4 Chinatown North is the5 community's only avenue of growth, and as6 you have heard, PCDC has worked to7 improve this neighborhood. Over 20 years8 ago, we were told by urban renewal9 project proponents that the community can10 go across Vine Street Expressway and11 expand that way. This neighborhood has12 many deficits that are the result of13 industrial abandonment and government14 policy. 17 In fact, the men that enter and exit18 these institutions also wreak havoc along19 Market Street. Take a look at the police20 crime reports, which I provided. I point21 this out because the government has22 contributed to the blight in this23 neighborhood. Imposing a 7 percent tax24 on the people in the neighborhood to25 91 10/27/11 - RULES - BILL 1103071 clean it up is not fair. 6 Chinatown North has its own planning7 area, and PCDC has successfully improved8 the neighborhood. We understand the9 needs of the community. 17
Thank you18 for your testimony. I will again say for19 the record that I am bewildered as to why20 your plans for Chinatown North and the21 establishment of a NID are mutually22 exclusive. I don't see it. I'm trying23 to see it, but it just doesn't make any24 sense.25 92 10/27/11 - RULES - BILL 1103071 So thank you.2 Sir, could you please identify3 yourself for the record.4
Yes. My name5 is Philip Browndeis and I live at 12206 Buttonwood Street.7
Members of the13 Council, Councilman DiCicco, you were14 misled by the supporters of the Reading15 Viaduct project and Paul Levy to believe16 that the neighborhood would support a tax17 increase. You do not have the consent of18 the people. The resistance to the tax19 increase grows stronger every day. 25 93 10/27/11 - RULES - BILL 1103071 The conflict in our2 neighborhood began when a tiny group of3 loft-dwelling elitists decided to treat4 longtime residents and Asian business5 owners as though they were guests in6 their own neighborhood. But the worst is7 yet to come. 12 The privileged few supporting13 the NID tell us that the average tax will14 be only $155 a year. 15 Alan Greenberger said in the16 October 6th City Paper, This is what's17 going to happen all over the City in the18 near future. 21 Gary Reuben of the Regis Group22 and Matt Pestronk of Post Brothers23 Apartments, both real estate developers,24 should be happy with the Deputy Mayor's25 95 10/27/11 - RULES - BILL 1103071 statement. As they explained in the last2 hearing, the NID will be good for their3 property investments. In other words, I4 will be taxed in order to subsidize the5 risk they took investing in my6 neighborhood. 14 They've lived in the Callowhill15 neighborhood for over 40 years and raised16 a family there. 7 Paul Levy's original purpose8 for the NID was to attract funding for9 the Reading Viaduct Park and provide for10 its annual maintenance. 15 Paul Levy and City Council may16 view us as a nuisance because we still17 believe in representative government and18 not corporate rule over our lives. 23
Thank you24 for your testimony. I just want to make25 97 10/27/11 - RULES - BILL 1103071 sure the record is clear that --2 (Applause.)3
I want to4 make sure the record is clear that this5 is a democratic process, because the6 people who were in the NID boundaries7 will be able to vote yes or no to8 establish the NID. So if what you're9 saying is true, you have nothing to worry10 about, it's going to go down in flames.11
Well, actually12 it's a negative election. It's not13 supporters who must prove. It's us who14 oppose it.15
If everyone16 in that NID boundary is as angry as you17 are, then it's going to go down in18 flames. So it will be a democratic19 process despite what you contend.20
Well, once the21 NID is created, it's no longer a22 democratic process.23
No. The24 NID would be created -- you can stop the25 98 10/27/11 - RULES - BILL 1103071 NID and people -- the large number of2 people you claim are against this NID in3 that boundary, this will go down in4 flames and you'll be happy.5
Well, so it6 shall be, so it shall be done.7 COUNCILMAN DiCICCO: It will be8 a sad day for the neighborhood.9
Please10 identify yourself for the record and11 proceed.12
My name is James13 Morton and I live at 1238 Callowhill.14 I don't have any Councilmembers15 to listen to me.16
I just got two19 left.20 COUNCILMAN DiCICCO: Some of21 them actually are listening in their22 offices. This is piped into all of our23 offices. Sometimes they're sitting doing24 other work.25 99 10/27/11 - RULES - BILL 1103071
Fine. Fine.2 Okay.3 COUNCILMAN DiCICCO: I normally4 don't take comments from the gallery, but5 it's starting to get a little irritating6 at this point. I apologize.7
Okay. I'd like to10 say that -- I said I lived at 13th and11 Callowhill. I'm retired. 14 I know John Struble. John15 Struble knows me. I know Sarah16 McEneaney. 19 Now, having said that, I would20 like to say that I have never been21 contacted, outreached or anything else22 concerning the development, planning,23 implementation of this NID. 7 Now, as far as my statement,8 I'm opposed to the NID in principle, not9 because it'll cost me a few extra10 dollars, but in principle. And in11 principle, what I see is that by using12 this state law to set up these13 quasi-public whatever across the City,14 you're going to set up a network where15 certain communities get better service16 than other communities. Now, in my17 opinion, this is just flat-out18 discrimination. 20 Now, I've been fighting against21 discrimination my entire adult life, and22 I see this as just a high-tech23 gentrification introduction of24 discrimination all over again. I think25 101 10/27/11 - RULES - BILL 1103071 if you have a city where certain areas2 get treated better than other areas,3 pretty soon the people in that city are4 going to take notice of that and it's5 going to poison the atmosphere in your6 city. 7 Now, as I said, I live in the8 Beaux Arts Lofts Condo. As a condo9 owner, I pay City property tax. 12 Now, in addition to that City13 property tax, as a condo owner I pay a14 condo fee. That fee goes to cleaning of15 the streets around my building and the16 removal of trash. So now I pay twice for17 the cleaning of the street and the18 maintenance. This NID would impose an19 additional 7 percent surcharge again for20 cleaning, maintenance, clean, green21 streets, public safety, et cetera. So22 now it looks to me as though I'm paying23 three times for the same service. 25 102 10/27/11 - RULES - BILL 1103071 And, again, in principle, I2 think that everyone in the City should3 pay their property tax. It should all go4 into a bucket, and the City services5 should be distributed evenly. Every6 community is entitled to clean, safe7 streets, whether they be a loft community8 where people have a lot of money or9 whether it be a part of the City where10 people have less money. Everybody who is11 a resident of Philadelphia is entitled to12 a clean, safe street. 15 Beyond that, the Councilman16 said that people will be able to vote for17 or against the NID and if we have more18 votes for than against, we would win. My19 reading of the law that I was sent stated20 that the opponents have to get 51 percent21 and if we fail to get 51 percent, the NID22 goes into effect without the vote of the23 Council. So what we have here is a24 one-sided vote. The opponents have to go25 103 10/27/11 - RULES - BILL 1103071 out and go into the community and get2 signed statements to vote. 4 That is totally unfair. 9 When I asked about it, I was told, Oh,10 nothing can be done. 11 Well, we shouldn't be going by the state12 law. It's totally unfair. We have to13 get 51 percent. The proponents don't14 have to do anything. 19
I don't20 understand the question. All I've said21 was that if the opposition is as much as22 this gentleman says it is in the23 community, then it's going -- it will be24 defeated. If the opposition is that25 104 10/27/11 - RULES - BILL 1103071 angry and is that motivated, then they2 will defeat it. That's a simple3 statement. That's all I said. They have4 a chance to express that opinion.5
What you said if6 you look at the transcript, you said yes7 or no. You said vote yes or no.8
No. I said9 we will vote yes or no. We'll vote yes10 or no, and then the community if they're11 angry about it and they want to defeat12 it, they will defeat it. So there is a13 democratic process.14
Again, I read the15 material that was sent to me from the16 Clerk, and it states there that if we17 oppose, we have to get 51 percent.18
And if we fail to20 get 51 percent, if we get 50 percent, 49,21 48 percent, then the bill will pass22 automatically.23
I know a24 candidate in the last election who lost25 105 10/27/11 - RULES - BILL 1103071 by 46 votes, and I'm sure she's not real2 happy about it either, but you have to3 win or lose an election.4
Yes, win or lose,5 but we have to come up with 51 percent.6 The other side doesn't have to come up7 with anything.8
That's just unfair11 and undemocratic. I don't see how the12 Council could even implement something13 like that.14
As you15 said, it's a state law.16 COUNCILMAN DiCICCO: State17 mandate.18
My next bullet19 point, there's certain people, like I20 said, living in the lofts. There's21 high-income people, developers, Mr. Levy22 and so forth. They see the neighborhood23 as a place maybe an empty canvas or blank24 canvas where they want to develop it.25 106 10/27/11 - RULES - BILL 1103071 That's fine. I think that in American2 culture, we have a principle and the3 principle is do it yourself. Take4 personal responsibility. If Mr. Levy5 wants to develop this area for a profit6 to make his business more profitable --7
I'm sorry.8 Mr. Levy, so the record is clear,9 Mr. Levy is not a developer. He doesn't10 make any money from any development. He11 runs the Center City District. He is not12 developing anything. He is running --13 he's administrator of a district that14 cleans and lights and does advertising15 and that kind of stuff. So I don't want16 your comment to be reflected in the17 minutes that somehow he's here for a18 profit-making motive. That's not the19 case.20
Okay. I hear you.21 Let me rephrase that.22 If individuals want to develop23 in this area and they want to take24 certain steps that would increase the25 107 10/27/11 - RULES - BILL 1103071 value of their properties, what I'm2 saying is, let them pay for it3 their-selves.4 (Applause.)5
That's the6 American tradition that I know of. If7 you want to be a capitalist and you want8 to increase the value of your property,9 you form up a corporation and you sell10 some shares and you raise some money and11 you take the risk. What this state law12 does is have one neighbor tax another13 neighbor. That's got to be14 unconstitutional. I'm not a lawyer, but15 I'm saying that's got to be16 unconstitutional. I do know that Justice17 Nigro, Nigro, whatever his name is --18
Yes, but don't we24 still give him the honorary title?25 108 10/27/11 - RULES - BILL 1103071 COUNCILMAN DiCICCO: Not me.2
Well, what I'm3 saying is, I suppose you realize that he4 does have a class action suit against the5 Center City -- he has a class action6 suit.7 The point is, this is just8 unfair. It's undemocratic. It's just9 not right. My neighbor is going to10 impose a tax surcharge on me for my11 neighbor's private project. Now, if I12 don't like it, can I vote my neighbor out13 of the neighborhood? How can I -- who14 can I hold accountable? Who can I vote15 against? Mr. DiCicco is retiring.16
I'm17 running. You can vote against me if you18 want. I wouldn't like you to, but if you19 feel that strongly about it, I guess20 whoever votes for it you can vote21 against. I mean --22
People24 voted against me or for me for various25 109 10/27/11 - RULES - BILL 1103071 reasons. I respect that.2
Maybe I'm3 confused, but my reading of the law or4 what I think was the law again stated --5 maybe somebody in the audience might have6 a copy of it. It stated that if we fail7 to get 51 percent --8