Welcome and thank you for your patience. Sorry you had to be kept waiting.
The stenographer has been given a copy of your testimony, so if you will summarize, we will appreciate it.
Thank you. My name is Kevin Vaughan. I'm the Executive Director of the Philadelphia Commission on Human Relations and the Philadelphia Fair Housing Commission. I welcome the opportunity to be here, and I want to thank President Verna and other Members of Council who have been so supportive of the Commission over the past eight years that I've been Executive Director, and I have always enjoyed the wonderful opportunity to serve you and your districts and the people of 1988 OPERATING BUDGET - BILL 05 - 2/23/00 this city and the great working relationship that we've all shared all over those years. I know that time is of the essence and to cut to the chase, the Commission on Human Relations and the Fair Housing Commission are requesting a combined budget of $2,153,581 in Fiscal Year 2001, an increase of $57,844 due primarily to negotiated wage increases. Of the total budget, $1,997,398 funds 45 positions. And so it's basically salaries for the staff. The Commission is engaged in a number of items that are listed in here. There are a couple of things that I'd just like to draw attention to very briefly. The first is our technology innovations. We have, through a joint partnership with IBM, put together a new intake system for the Commission that uses IBM and Lotus Notes -- IBM, Domino, and Lotus Notes technology, that is pretty much a state-of-the-art system. We are actually helping to load the system into other agencies around the country and have been asked to give a demonstration of this for all of the human rights agencies across the country this summer, so we're looking forward to doing that as a model for 1989 OPERATING BUDGET - BILL 05 - 2/23/00 things that can be done. And the other thing that I wanted to point out is our Focus Philadelphia Project, which has come to a close. We've done it for the last five years, and I think that we've done terrific work in the neighborhoods. We are going to continue to look for additional money from foundations to continue that work, and while we're doing it, the learnings that we've had from this are, of course, that in situations where hate crimes are committed, we know that hate crimes are committed generally by young people between the ages of 13 and 22, and those young people are usually under the influence of alcohol or drugs. We would like to spend some considerable time and money from some wonderful foundation who would like to fund us for doing this, to try to perfect programs to address those issues of youth and alcohol abuse, and to make sure that we are not only dealing with the hate crimes after they happen but trying to do some preventative work with the young people and try to get ahead of the curve on some of that. So we look forward to your help on that 1990 OPERATING BUDGET - BILL 05 - 2/23/00 as well as the other issues that are mentioned in our testimony. Thank you very much.
Thank you. The Chair recognizes Councilwoman Tasco.
I would just like to offer my support for this young man and the Commission on Human Relations. As you know, we have a quite diverse in the 9th Councilmatic District, and his staff has been very, very supportive and very helpful to us in working with the different cultures and different groups in the Olney, Feltonville area. So we appreciate their support and want to continue with them.
And I would certainly echo your comments because I know that he worked very, very closely with members in my community also at a very, very hostile time.
Thank you very much. 1991 OPERATING BUDGET - BILL 05 - 2/23/00
In the short while that I've been here, I've learned that the School District does not have in a systemic kind of way a conflict resolution curriculum that has building blocks from K through 12. And so I'm interested in hearing more about the effort you have underway in the Grays Ferry area that deals with that issue. Just a few additional details.
Okay. Our staff, which has been working in Grays Ferry for some number of years, has been working through the churches and through the recreation centers in Grays Ferry to try to bring together a number of different programs around youth issues, especially working with the Recreation Department, which has done a terrific job of beginning to integrate those neighborhoods. This summer, one of the programs that we're interested in implementing -- and we're 1992 OPERATING BUDGET - BILL 05 - 2/23/00 hoping to work with the Recreation Department to do that -- is a non- -- I'm trying to think of how you would say that -- is a non-combative gaming process. It comes from the Native Americans, actually, and they have a whole system of learning to do games and to play without actually getting people to compete against each other but learning how to cooperate, and we're developing that with the Native Americans help to implement that in Grays Ferry this summer.
The schools -- we don't have jurisdiction over the schools, the Commission doesn't have jurisdiction over the schools. We have to be invited in to work with the schools. And we get invited in occasionally when there's a particular issue or problem, but we can't -- we'd love to be invited in more often, but we don't -- we can't impose a particular curriculum or a program on a school unless we're invited in, and Grays Ferry, we have the great fortune and 1993 OPERATING BUDGET - BILL 05 - 2/23/00 opportunity, because of an opportunity created by some of the troubles that took place in Grays Ferry, to work with some of the principals and some of the church-related schools.
And after a crisis sometimes, to help put things back together. But generally, we are not invited in any --
Councilwoman, would you excuse me a moment, please.
I was distracted. Did you say that you're going to have a program this summer in Grays Ferry?
Yes. We're working with the Native American community in developing a whole series of noncompetitive games where the 1994 OPERATING BUDGET - BILL 05 - 2/23/00 whole point of the exercise is to teach children how to work together, and that you win when you have a circumstance in which everyone is cooperative and things are developing because there is a connection between people to work together. And we're working with the Native American community in Philadelphia to develop that. We want to take that to the recreation centers this summer and try to help implement such a program so that in addition to all the normal recreational activities that they have, there will be this other piece that will help to try to bring people together in that way.
Unless I missed it in the testimony, who's funding that kind of initiative; do you recall?
That's not -- that initiative isn't being -- I mean, it's a voluntary effort on the part of the Native Americans and our staff to work together to do that, and we're hoping that the Recreation Department will be able to work with us to implement it, but it doesn't -- 1995 OPERATING BUDGET - BILL 05 - 2/23/00 I mean, it just takes volunteers.
So imagine what we could do with that funding, to take it citywide in the School District.
The Internet Teach Program, that combines the arts and young people. A bit more about that and the fact that there's a partnership that's happening within the School District, please .
The Internet Teach Program is a program that we're working with the School District but not in any -- and it's a very small program, it's not a large, district-wide program. So we can work from school to school as the School District permits.
Well, if the School District determines that they have a school that's -- that would need to have that program implemented with our help --
Okay, okay. 1996 OPERATING BUDGET - BILL 05 - 2/23/00
-- they would invite us in to do that, but it's up to them to make those decisions and to figure out where they would like us to help.
You're welcome. Are there any other questions for the Human Relations Commissioner? (No further questions.)
Let me say that you absolutely do an excellent job, and we appreciate your efforts.
Certainly. There are no other questions? Thank you very much. City Rep and Director of Commerce. (Witnesses come forward.)
Good afternoon. We're very glad to have you. Thank you for your patience. Would you identify yourself for the record and begin your testimony.
Yes. Councilwoman Blackwell, my name is Mjenzi Traylor, and I currently serve as the acting City Representative and Director of the Department of Commerce. Seated with me at the table at the table today is: Alfred Testa, the City's Director of Aviation; William Hankowsky, President of the Philadelphia Industrial Development Corporation; and Curtis Jones, President of Philadelphia Commercial Development Corporation. My colleagues and I are here today to present testimony on behalf of the Department's $183 million Fiscal Year 2001 Operating Budget. This budget is composed of the General Fund at $38 million, the Grants Fund at $10 million, the Hotel Tax Fund at $29 million, and the Aviation Fund at $100 million, and the Community Development Fund at $5.8 million. The Fiscal Year 2001 Operating Budget 1998 OPERATING BUDGET - BILL 05 - 2/23/00 represents a percent decrease from Fiscal Year 2000. The Department functions as the coordinating entity for the City's economic development programs and initiatives. We directly manage the Community Development Block Grants, Economic Development Programs, the State's Enterprise Zone Program, and the Keystone Opportunity Zone Program, Neighborhood Economic Development Programs, and the Mayor's Business Action Team. We also contract and work closely with PIDC and PCDC to deliver loan programs and other business services on behalf of the City. Our Office of the City Representative implements special events and tourism initiatives, official proclamations and citations, staffs the Art Commission, and operates the Percent For Art Program, Art in City Hall, and the City Sculpture Conservation Program. The $38 million General Fund part of the budget is allocated as follows: $28 million -- that's 74 percent -- for the Convention Center lease service fee; $5 million, or 13 percent, for the Economic Stimulus Program; $1.5 million, or 4 percent, for the Philadelphia Cultural Fund 1999 OPERATING BUDGET - BILL 05 - 2/23/00 Grants to arts and culture institutions; $0.5 million, or 1 percent, for Historic Philadelphia; and $3 million, or 8 percent, for basic Department operations. For Fiscal Year 2001, we have requested an allocation of $5.84 million of Community Development Block Grant Funds. The distribution of these funds is consistent with our current-year appropriation. The total Fiscal Year 2001 Aviation Fund request is $227.1 million. This includes a appropriations of $100.4 million for direct airport operations and $126.7 million in the Police, Fire, Fleet Management, Public Property, Law, and Finance departments, which will be fully funded by revenues from the operation of the City's two airport facilities -- the Philadelphia International Airport and the Northeast Philadelphia Airport. These non-tax revenue sources include terminal building space rentals, landing fees, net parking revenue, concession fees, and other revenue sources. As in previous years, no General Fund resources will be used to support operations at either Division of Aviation 2000 OPERATING BUDGET - BILL 05 - 2/23/00 facility. I would like to take this opportunity to thank the Members of Council for their support throughout the year, and my colleagues and I are available to answer any questions that you might have.
Thank you very much. Mr. Traylor, you mentioned Art in City Hall, did you not?
We would like to know if it is possible, since we have student art on the seventh floor and modern art on the second and fourth floor, if we can't flip it 50 percent of the time -- that requires no money, just the way we organize it -- so that each interest gets equal exposure.
I will take this back to the department that deals with this and come back to you with a response on the ability to do this just as soon as we can.
Thank you very much. 2001 OPERATING BUDGET - BILL 05 - 2/23/00 Councilman Goode?
Let me first say to Mr. Jones that I appreciate my seven years at PCDC. I think it gave me not only a background in community economic development, but also a passion for it. I look forward in my years in this body in helping to increase the financial and technical capacity to enable your efforts. To Mr. Traylor and Mr. Hankowsky, I have a series of question. Mr. Traylor, on February 8th I sent memo to you and Mr. Hankowsky asking four questions, the first being, what was the level of economic investment from 1994 to 1999 versus 1984 to 1989, the same six-year the preceding decade? The second being, what were the levels of job growth from 1994 to 1999 versus 1984 to 1999? The third being, what is the projected level of job growth over the next six years, from 2000 to 2006? 2002 OPERATING BUDGET - BILL 05 - 2/23/00 And the fourth being, what was the cost per job by category for the Economic Stimulus Program during the period from 1994 to 1999? I only received a partial response to the last question. In fact, I received a cost-per-job estimate for only $40 million worth of projects. I did not receive those figures for $103 million worth of projects. Can you tell this Council why we don't have cost-per-job figures for over 70 percent of the Economic Stimulus dollars spent?
Yes. I have the part of that report that we prepared for you. And if -- and you are correct, it's dealing with $40 million, Councilman Goode. Let me call in -- call up the person who helped prepare that report, while maybe Mr. Hankowsky has some part of the other response to other parts of your question. Do you, Bill?
Please 2003 OPERATING BUDGET - BILL 05 - 2/23/00 identify yourself for the record.
Yes, thank you. I'm sorry, Madam Chair. I'm Bill Hankowsky, President of the Philadelphia Industrial Development Corporation. I think on a couple of these -- I think, candidly by Friday, you'll have the answers to the ones you didn't get an answer to. I think we're just a day or two away from finishing and wrapping that up. I had one problem that one person away for a week and I just didn't mechanically have the capacity to get an answer.
Okay. On the fourth question, do we have a full accounting for job creation related to the Economic Stimulus Program?
Yeah, I think -- I believe we do. I mean, I believe we -- and when I say that, I just want to be precise about it. For those transactions where we lent or granted money into a kind of a business enterprise or a project of that nature, we do have job data. There are some uses of those funds. An example might be Stimulus Funds to support the Small-Business 2004 OPERATING BUDGET - BILL 05 - 2/23/00 Center at 13th and Walnut, where there's not a job in a precise sense. You know, it wasn't a transaction that created X-number of jobs. It was to support an ongoing effort where there was not a job. Now, we could -- what might be helpful is, we could helpful simply differentiate those type of support dollars, you know, where it wasn't tied to job creation effort, per se.
The information I received of the dollars spent on hospitality and tourism, the report accounted for about $8 million and did not account for $31 million, in terms of job creation.
There might be some confusion on -- the $8 million, I believe, was the portion of the Economic Stimulus Funding, those funds, per se, spent on hospitality. I think perhaps what you're referencing is the use of either 108 or UDAGs or other funding sources.
Well, this is 2005 OPERATING BUDGET - BILL 05 - 2/23/00 specifically Economic Stimulus Funding provided by the Commerce Department a couple days ago that references a total amount of about $40 million spent on hospitality and tourism. It says there are no job figures available for $31 million of that. The reason I ask this question is, there has been a contention made that there's been too much emphasis on hospitality and tourism at the expense of neighborhood economic development, so how can you account for the fact that 75 percent of the money spent on hospitality and tourism has no job figures, has no public benefit?
The way the report reads, Councilman Goode, is -- and I'm very sorry that I don't have the complete rationale for it -- was that the figures were not available at this time. We wanted to make certain that the dollars were accounted for even though we're weren't able to attach job figures to it.
The problem I had with that is, the figure $103 million is kind of conspicuous to us because we've been asked by this 2006 OPERATING BUDGET - BILL 05 - 2/23/00 administration to, at a first deadline of tomorrow, pass a legislative package related stadiums, with a $103 million figure, $23 million to buy out a practice facility, $80 million for renovations to Vets Stadium, yet we can't account for $103 million that was spent over the last six years in terms of job creation.
And we were asked to do our due diligence between the time when I came here as a freshman member and as a first day tomorrow to account for spending $103 million, yet you can't account for $103 million spent over the last six years.
Well, I want to make certain that we're not saying that the dollars cannot be accounted for. They cannot be accounted for in terms of job creation.
Well, in terms of job creation, which is, I think, the most important public benefit to the City and the taxpayers, we should be able to account for job creation related to spending $103 million. If you don't have those job figures available, I can move 2007 OPERATING BUDGET - BILL 05 - 2/23/00 on. Mr. Hankowsky, are you familiar with the Greater Philadelphia Capital Access Report?
Among the disparities revealed in that report with respect to private --
I'm sorry, I just didn't hear the very beginning of your second question.
Among the disparities revealed in that report with respect to --
Mr. Hankowsky -- excuse me a moment, Councilman Goode -- would you make those figures available to the Chair as well? We want to make sure that those questions are answered.
And that everyone has the answers to those questions. He's asked two questions --
-- so far that 2008 OPERATING BUDGET - BILL 05 - 2/23/00 need additional information. Thank you. Thank you, Councilman.
And among the disparities revealed in that report were with respect to private-sector lending.
I can't cite -- I mean, I'm not so familiar with it that I'll be able to respond here.
Okay. In your loan portfolio report, it appears as though over two-thirds of loans that PIDC settled in 1998 flowed into neighborhoods where the population was less than percent black. Can you explain 15 that? 16
Well, PIDC -- you're 17 talking about our overall loan activity in 1998? 18
PIDC, I'll use the term, "operates" or "administers" 20 different loan programs that are available either by the federal government, the state government, or 2009 OPERATING BUDGET - BILL 05 - 2/23/00 locally. A number of these programs have very specific criteria that are given to us to administer them by -- pursuant to the funders of the program.
So the programs have very specific criteria. So an example might be the Pennsylvania Industrial Development Authority, or PIDA Program. The PIDA Program is specific to what type of project it will fund. So, for example, it won't fund a retail project, but it will fund basically manufacturing and warehouse distribution kinds of projects. It only will fund real estate; it won't fund machinery and equipment. And there are programs like that. So we basically are working to take the 2010 OPERATING BUDGET - BILL 05 - 2/23/00 programs, given the rules, regulations, and requirements that are there, and make them available as best as we can to the firms that approach us. So when you look at it, most of our programs end up -- we do the transactions throughout the City, and somewhat indicative by our name, they tend to be clustered towards industrial manufacturing and other kind of firms who are located where they are located. And so they tend to be clustered in areas where the City has zoned it G2 industrial.
So it's very possible that two-thirds of your loans settled in 1998 flowed to neighborhoods where there were less than percent black. And I guess it's also 18 possible that a majority of your lending was done 19 in middle- and upper-income neighborhoods rather 20 than in low- and moderate-income neighborhoods. Is that possible?
Well, I don't want to say what's possible or not. I mean, I'd be happy to take a look at that, which we can do. I mean, we keep track by census tract and we keep track by 2011 OPERATING BUDGET - BILL 05 - 2/23/00 zip code, etc. But, again, we to some extent react to firms bringing us transactions that meet the programs we have. And so for example, when you're in the industrial-manufacturing area, you're in various quarters. There's a concentration of those firms in Eastwick, there's a concentration of those firms along the river wards, there's a concentration of those firms in the far Northeast, so they tend to -- the transactions will cluster where the G2 industrial land is, and then obviously, the census data that goes along with that.
We'll provide you with a copy of that data. Let me ask you a more general question now. Do you believe that it's the role of public investment to equalize economic opportunity?
I believe the goal of public investment -- I believe public investment has a multitude of goals, of which that is one.
If there is lending disparity in the private sector, should there be the same type of lending disparity in the public 2012 OPERATING BUDGET - BILL 05 - 2/23/00 sector by neighborhood race and by neighborhood income? Or is there a role in terms of public investment to equalize economic opportunity?
I think that there is a role. As I said, that should be one of the goals,, and I think, obviously, we're also trying to achieve other goals at the same time, so we're trying to create job creation and tax ratables and keep businesses here and have businesses grow here. And so you're trying to deal with multiple goals at one time. So, for example, you know, PIDC developed a few years back the Neighborhood Development Fund as an attempt to have a specific category of dollars that would be targeted in neighborhoods where, in fact, there was a gap, a funding gap that prevented projects from occurring. So we're trying to be responsive to that but we don't have the capacity to reprogram, so to speak, all the dollars that are out there. I mean, we can't reprogram PIDA, we can't --
And the real-estate redevelopment loans are included within the loan portfolio, or else, I guess, the numbers would be 2013 OPERATING BUDGET - BILL 05 - 2/23/00 even worse. Can you tell me what the overall economic development strategy is of PIDC is then? If it is not to use public capital to expand economic opportunity in every section of the City, if it is not the goal to equalize opportunity, then what exactly is the economic strategy of PIDC?
Well, I didn't say that. I didn't say what you just said I said. I, in fact, agreed with you that that is one of the goals that we attempt to achieve. So, one, I just take exception to that categorization. PIDC's goals, in terms of economic development, I'll start with a fairly simple premise, which is that we are an agency that is attempting to retain and create jobs and create tax revenue or tax ratables in the City of Philadelphia by fostering the overall growth of the City's economy, and we attempt to do that, given policy direction by the City Administration, given resources that are available and what you can do with those resources, and to attempt to leverage those public dollars, and in addition to using them, to get private dollars and other kinds 2014 OPERATING BUDGET - BILL 05 - 2/23/00 of dollars into transactions. We try to do that within the confines of the dollars and the programs that are available.
Let me ask you a question about a very specific deal. The final matter. On January 6th, I sent a letter to you, to which I still have not received a reply, with regard to the new agreement with the Eagles, and now it's no longer a conceptual agreement but a new agreement, so you should have a better answer for these questions. The first is, what's the percentage of jobs guaranteed for Philadelphia residents?
I just need to understand what I'm responding to. You're asking me with regard to the Eagles --
You're talking about the jobs that will be inside the facility? I just want to know what I'm responding to.
With regard to the new agreement with the Eagles, which says that we will buy back the practice facility at $22 million. 2015 OPERATING BUDGET - BILL 05 - 2/23/00
And do $80 million in renovations and an expenditure of $103 million if this legislative body does not do a stadium deal by November 3rd, what would be, as according to the new agreement right now, the percentage of jobs guaranteed for Philadelphia residents?
There is no -- as I think you know, the proposal envisions the development of a new practice facility for the Eagles, so the people that will work there or be there is the football team itself, the actual players.
But you're not being responsive, though. Is there a guarantee for a percentage of jobs or not?
There is not a guarantee because basically what you're doing is, you're --
You're moving the existing corporate offices and players and coaching staff into this facility, so these jobs are filled today.
Okay. The second question is, so there are also no welfare-to-work opportunities, and is there an affirmative action plan?
There is an affirmative action plan as it relates to the construction of the Philadelphia facility. There is not a welfare-to-to work plan.
Are your affirmative action policies consistent with the policies of the City?
I believe they're consistent with the City and the legal -- the laws that stand today in the United States, yeah.
Your affirmative 2017 OPERATING BUDGET - BILL 05 - 2/23/00 action policies are as aggressive as the City's executive order?
Our policies -- again, we have funding from a variety of sources. In some cases, we cannot impose requirements on top of the requirements from the sources that give us the funds. In those cases where we have a capacity -- so, for example TIFs or places we have the capacity to interpose requirements, we do attempt to do that and establish goals.
Mr. Traylor, do you support City's affirmative action policy?
Do you believe that PIDC affirmative action policy should match the City's?
And as a board member, are you willing to lobby the board on this matter.
Thank you very 2018 OPERATING BUDGET - BILL 05 - 2/23/00 much. The Councilman asked a lot of questions with regard to minority participation in many ways, and we would hope that Mr. Hankowsky would respond in writing to each and every question.
And when he mentioned the percent as the maximum as what we 11 have now, we would hope that in your response that 12 PIDC would list some plans it has to certainly 13 improve that where the goals are absolutely 14 abysmal, dismal goals. 15 Councilman Clark? 16
Can we have 19 Councilman Clarke's mike on, please. 20
It's okay. It's been a long day for us all. Good afternoon, gentlemen.
I want to ask a question relating to some experiences that I've 2019 OPERATING BUDGET - BILL 05 - 2/23/00 had as a staff person and recently as a Councilperson and some of the frustrations I've had in dealing with community organizations and economic development. In the past, and I know some of you gentlemen have some housing knowledge to various degrees. In the past, in the community, when we had a local nonprofit that would like to do some sort of a housing development and they didn't have the technical expertise, we would assign the Philadelphia Housing Development Corporation to form a joint venture of some sort, called an "LDC," a local development corporation, and it gave the community an opportunity to participate in the housing initiative but it also brought to the table a technical expertise with PHDC to make sure that the project got done most of the time within budget, and at the end of the day, we had a reasonable and affordable housing development. And I guess the question I'm asking is, in certain instances, we've had community organizations that wanted to get involved in economic development but just did not have the technical expertise. There was one very famous 2020 OPERATING BUDGET - BILL 05 - 2/23/00 hole that was talked about over the last year or two throughout the campaign process. Fortunately, it is no longer a hole; it is now a lot, so we've gotten beyond that. And it was always felt that if that community organization had an opportunity to form some sort of a joint venture with the quasi- government agency that had economic development expertise, we wouldn't have had that situation that we've had up this on the avenue. Could you tell me, what would happen currently within the existing system if "ABC" community organization wanted to be a developer but didn't have the expertise and they came to the City, they came to the Commerce Department or PIDC or PCDC and wanted to do a small strip small? What happens in that instance now?
All right. Both Mr. Jones and I will respond to your question, Councilman. But let me start off by saying that some of the technical assistance that would be available to the community development corporations would come from the private nonprofit 2021 OPERATING BUDGET - BILL 05 - 2/23/00 sector. In other words, the neighborhood collaborative group often provides certain levels, especially, you know, in terms of start-up activity on the part of these CDCs. There is some limited amount of technical assistance that we're able and do provide from our staff. Now, unfortunately in the case that you mention, this was a case where had that technical assistance been sought, I think we could have had a much better-- you know, a good response to their need either from the NED staff of the Commerce Department, or we could have assisted in guiding them to assistance outside by way of consultant services. I think Mr. Jones also had some comments.
Curtis Jones, President of the Philadelphia Commercial Development Corporation. I apologize for having to speak to you with my back.
One of the things that the Commerce Department cluster -- and I include my 2022 OPERATING BUDGET - BILL 05 - 2/23/00 colleagues from PIDC and the Commerce Department in that cluster. One of the things we're talking about doing is developing what is called a developer's round table. In that process, we would bring together community groups, CDCs that may have less than adequate capacity to develop a strip mall in concert with City quasi-agencies that may have experience doing that. Some positive examples of where that has worked positively is Ogontz Avenue Revitalization Corporation up on 71st and Ogontz where they developed a strip mall and done it successfully, which empowered the CDC in the area to not only gain the technical capacity to do it but also revenue streams in the future to enable them to do new projects as time went on. We'd like to take a page from that book and involve both private developers, City agencies, also public utilities in that process because the public utilities play an important role in that development. We have unfortunately seen in the past streets renovated, torn up on four different occasions by the gas company, the electric 2023 OPERATING BUDGET - BILL 05 - 2/23/00 company, the Water Department. And as opposed to doing that, we need to get them at a table and kind of synchronize that along with other departments such as L&I and Zoning, to kind of look at a neighborhood and say that we've determined that this is a feasible place to develop a strip mall and we're going to make a concerted effort over a specific period of time to make that development come into fruition. So what we're looking at in this administration is developing those kinds of clusters or development round tables to implement projects and include the CDCs in the process so that they can: A, gain technical capacity; B, possibly even strike a deal with the private sector to provide services such as maintenance, such as security, that would provide them ongoing streams of income and serve as fee capital for future development.
Councilman, let me just add one other thing quickly, too. I wanted to make sure that it didn't sound like I was saying that we would just refer groups to private consultants. The Commerce Department also makes 2024 OPERATING BUDGET - BILL 05 - 2/23/00 pre-development dollars available to help pay for those services. And I just wanted to bring that out.
All right, I hear what you're saying, and thank you for that information, but I don't think you quite understood what I was asking. Let me ask it in a more simpler way. PHDC, a quasi-government agency, developer forms a relationship with the community organization. They joint-venture, that development entity goes to a location, builds the house from pre-development to the hiring of architects and consultant services to the ribbon- cutting for the grand opening. And what I'm hearing from you is the City providing technical support on the front end. Where we run into problems -- and I know that you provide that service to a lot of organizations. Where we run into problems is when these organizations don't have the ability sometimes not even to receive that technical assistance. Because, I mean, we have -- a lot of these organizations are just are not about that. 2025 OPERATING BUDGET - BILL 05 - 2/23/00 They are basically service and human service- oriented type of entities, but they wanted to be involved in development. What I'm asking is, is there a possibility of a quasi-government economic development entity, such as PHDC, where they can come in and form this relationship, this development relationship with "ABC" community group, go in from pre-development to the ribbon-cutting ceremony and actually be a developer and have that nonprofit as a development partner, and not just providing certain -- hiring consultants and, you know, getting paid to provide certain technical information?
Well, I think, of course, the obvious answer to that is that it does not exist currently, but I think that is definitely a concept worth exploring and trying to identify where it could most appropriately, you know, take place. Whether or not it would be done with RDA, for instance, is one possibility, or whether or not we would have to create something brand new in order to have that kind of relationship.
Councilman, if I could 2026 OPERATING BUDGET - BILL 05 - 2/23/00 just augment those comments. I think your question's very good one because you're exactly right, that part of what is a barrier for many CDCs to participate in economic-type transactions is, in fact, a technical capacity to do that. And an example of us trying to, I'll use the term, be "more proactive" in that regard perhaps is to take a look, for example, at the retail project on 52nd Street in the Westpark Center Empowerment Zone, over, a course of time, you know, we actually developed a plan, we sort of laid out a scenario that could be done, worked with the Empowerment Zone to, you know, acquire the property. And so we did that instead of saying, Why don't you do that. We'll do that 'cause maybe we can do it, you know, and deal with environmental studies that you do when you buy property and those kinds of necessary steps and demolish it and then help to work with the community about how they, in this scenario, hopefully will become a partner with a private-sector developer in a transaction that will give them a revenue stream and sustainability. 2027 OPERATING BUDGET - BILL 05 - 2/23/00 And I think there are lessons to be learned from working in that model. One is, I do think it can work. Two is, I think it's very labor-intensive on both sides -- the CDC side and the public side. And so I think part of it and part of how I think the Commerce Department has tried to respond is, in fact, by providing these pre-development grants because, in effect, you have to add capacity. And I think clearly one of the goals, which is, I think, implicit in your question is the attempt to not just do it once but to sort of grow the capacity in the CDC.
So that perhaps the next time, they are more able to undertake transactions on their own.
And as Mr. Traylor said, I think it's something worth taking a look at, as to whether, you know, we can replicate that.
And I think there will 2028 OPERATING BUDGET - BILL 05 - 2/23/00 a point where if somebody said, Could we do 50 of those a year? it probably would be tax in current capacity.
Yeah, I understand. And I say that because I know in certain instances, one in particular in my district, in the Cecil B. Moore Development Corporation, and we have now, as a result of that relationship between them and PHDC, there are individuals within that organization who have grown in the capacity to get development done is, frankly speaking, quite, quite good, and I'm very happy about their ability to grow on the job as a result of that relationship between PHDC. So I'd like to see that on the commercial side because a lot of people want to work in these job-creation, you know, endeavors within our community. So, you know, anything that you could provide would be very helpful to me. And you if you need a call to the Mayor, I'd say that's a great idea and I think I'll help you with that.
All right, thank 2029 OPERATING BUDGET - BILL 05 - 2/23/00 you. Thank you, Madam Chair.
You're welcome. Certainly let me add, though, that we request that in all your dealings with the community groups and CDCs that you deal with that District Councilperson. I've said this every year, and nothing can be worse that to have the Councilpeople put in a position to be working at cross purposes with a community organization who then feel as if they have a relationship with the City that we don't, and we're here and we have to do your budget and then when we're not included and then you create a political fight for us with our neighborhood. So in all things, it's very, very important to us that you always work with that District Councilperson. Then we all start out together, everything's clean, it's cool with the community group, the City, the Councilperson, and everybody on the same page at the same time. And we have what we call "a win-win" for all concern. Thank you. 2030 OPERATING BUDGET - BILL 05 - 2/23/00 Councilman, are you finished?
All right. Thank you, Councilman. Councilwoman Tasco?
On -4 of the budget book, there a $36 million-plus decrease in economic development funding. Would you tell me what that is, please. It's under economic development, a decrease.
Oh, yeah. That's a decrease in the Stimulus Funding for this budget.
Okay. So we've spent $36 million in Economic Stimulus money. And what does the decrease represent?
Let me try to answer. The -- within the budget, in terms of the 2031 OPERATING BUDGET - BILL 05 - 2/23/00 document, I believe -- and someone will tap me on the shoulder if I get this wrong -- that it's he comparison of how much money was appropriated, the appropriations for Stimulus last year, which, I think, was in the category of roughly, I guess, the 40 or whatever, and then since this year it's 5, the difference is the decrease.
Oh, okay. Let me follow up on a question that was raised by Councilman Goode. When you present your contracts to us, Mr. Hankowsky, each time for Economic Stimulus Funds, you tell us at that time that there is going to be so many jobs created, right? When we're giving away Economic Stimulus money, during the course of the hearings, don't you tell us how many jobs will be created?
Where you factor in the number of jobs that would be created as you calculate the number of dollars that you then spend. 2032 OPERATING BUDGET - BILL 05 - 2/23/00
The City, I guess -- and perhaps somebody else can actually answer this better than I can -- has provided Stimulus Funds in either transfer ordinances or via the budget appropriation process, and then it is provided to PIDC via contract. And in the contract, it is divided into categories of use, which are determined by the City. So, for example, one category's housing, just to give you an example. And actually, that money is actually allocated into projects or whatever by the Office of Housing and Community Development. So we report job information based on how the money's allocated and then what transactions we put the money in, and some create jobs and some don't. I mean, some create housing or some provide technical assistance or whatever. But we do that, and I just want to be clear that every dollar isn't, quote/unquote, a job creation dollar. We used Stimulus dollars in 2033 OPERATING BUDGET - BILL 05 - 2/23/00 the past, at the City's request, for alley lighting at that one point in time, Partners for Progress and --
I couldn't hear. I heard you say that that you did money for, and then the voice disappeared.
Sorry, sorry. It's been used in the past for things like alley lighting or Partners for Progress, which weren't specific job-creation transactions. They were determinations by the City that those were worthwhile things to undertake, but a portion is allocated for transactions that are job-related, yes.
Okay. We were granted some Economic Stimulus dollars on the Wadsworth Avenue business corridor for facades and sign removal and new signage. What is the status of that program? Is it going to continue? I think -- what was his name? Dwayne Bumb was the head of that program. Will it continue?
Yes, that program will continue. And although I don't have the figure of dollars that's still left in that program, there 2034 OPERATING BUDGET - BILL 05 - 2/23/00 are some dollars left so that we would be able to do at least some other corridors.
Do you all plan to appropriate more dollars for that kind of program?
Not in the current -- I don't think in the current budget there is any additional dollars allocated.
Okay. The Mayor's Business Action Center, is that going to be an ongoing operating program, to your knowledge?
Oh, yes. We are definitely going to continue that service. The level of staffing still is not clear at this point. They continue to -- they have made successfully the transition and the Administration's continued to do some excellent work. And so it is the intention of the 2035 OPERATING BUDGET - BILL 05 - 2/23/00 Administration at this point for that program to continue.
Well, we've had a nice relationship with some of the representatives in my district who work with some of business associations in the 9th, but our problem district is Fifth Street. And I believe PIDC -- PCDC hired a Mr. Peck to give us some assistance on Fifth Street. And I want to say that I think that there needs to be better coordination with him and the representative who represents the Business Action Center because we have an ongoing problem there with zoning as related to wholesale versus retail. And we have introduced special legislation to prevent that strip, from the Boulevard to Cheltenham Avenue, from becoming a wholesale strip, which the community cannot support. The infrastructure won't support it, plus the community wants the strip to remain retail, but there has to be work with the representative from MBAT and with the representative, Mr. Peck. Is he still with you?
Yes. Mr. Peck was out on 2036 OPERATING BUDGET - BILL 05 - 2/23/00 medical leave, he had a medical procedure performed, but he is indeed back with us. I got your message very clearly last year when we funded a wholesale establishment along that corridor, and it was made clear to me that that had become an increasing problem by way of wholesale versus a retail establishment. And we pretty much had been very cautious about moving forward on any other types of business like that. But I agree that there needs to be greater coordination on the zoning and with MBAT as it relates to any further congestion within that area, and I understand your concerns, Councilwoman.
So I would like for Mr. Peck to talk to MBAT and you, and then we can talk so that we have a clear understanding of what's going to happen on Fifth Street. I have another question. I want to go to the Airport. Mr. Testa, you're in the process of developing a master plan, which, I understand, we will see soon?