I'm just trying to determine what the gross revenues were at the Independence Mall parking lot.
If I understand the question correctly, we're taking the revenues, less operating our expenses. We pay rent to the City. The money that is left over is what you're referring to?
Well, I thought we had gotten through that part. We then come back to, What's the big number?
What's the total revenues at the Independence Mall garage?
The revenue at the Independence Mall garage is 1.485 million for that particular year.
I gave you the wrong number, Concilman, for the park Authority piece of that.
No, the rent to the City is 530,219. So when we take our revenues less our expenses, less the rent to the City, we are left with $388,000.
Okay, gotcha. So the gross revenue at the Independence Mall garage, just so we're straight, was $1.4 million in your last fiscal year?
I'm rather curious 49 12/2/98 FINANCE COMMITTEE - Bill 980782 after hearing these figures. How many parking spaces do we have at this garage and what do we charge for parking?
We have 650 spaces at the Independence Mall garage. I think the maximum rate is. . . I believe the maximum rate -- the all-day rate is $12.
Do you know how many cars you parked in that fiscal year to generate that kind of revenue?
I don't, Councilman. I don't have the figures with me. And part of why I can't give you an adequate answer is because it really depends on how many times a day you turn over the spaces.
At the moment, it's completely full. Because of construction, we've had to close one level. I had made a commitment to the City to keep two-thirds of the garage open during this entire construction, so once we eliminated a third, we have no more space.
Would you say that this garage generates more money than any other 50 12/2/98 FINANCE COMMITTEE - Bill 980782 that we have? I'm surprised at this.
You indicated in your testimony, Miss Cutler, that there would be 615 spaces at the Rittenhouse garage, and I believe 8 levels of parking?
Can you tell me if you have met with the Center City Residents Association? And if so, what is their stand on this?
We have met with Center City Residents Association, both formally and in small groups, for the last two and a half years. At this point, I think they have -- at least based on my last meeting with them, which was several weeks ago -- no objection. We have agreed to go back to them for design review once we get further along in the process. But I think at this point, we've addressed the majority of their issues in a way that they are comfortable with.
As a general rule, 51 12/2/98 FINANCE COMMITTEE - Bill 980782 when we have such a hearing, they usually put their feelings in writings, whether they're opposed or in agreement to it, so if we could get a letter from them, I would appreciate it.
What capital improvements are planned for garages, and where are these garages located?
There are a number of general capital improvements planned for all of the Parking Authority garages. They include the Second and Sansom garage, the Tenth and Ludlow garage, the Independence Mall garage, and the Market Street East garage. Most of these garages are, you know, they were built in the '70's. They need upgrading to ensure their life span continues. So it's everything, for instance, from new elevators to waterproofing systems to new revenue control systems, upgrading the electrical and mechanical and plumbing systems. We just want to ensure that the life span of the garage will continue with adequate maintenance.
What is status of 52 12/2/98 FINANCE COMMITTEE - Bill 980782 the zoning variances for the Rittenhouse Square project? Has the Art Commission approved, has the Historic Commission approved? Can you tell us just what the status is?
I can, Councilwoman. None of those -- we still need to go through processes with the Historic Commission, the Zoning Commission, and the Arts Commission. And if we get approval to continue on with these processes, we will be seeking those approvals right after the first of the year.
What will the financial impact be if the parking garage at the Rittenhouse Square does not move forward?
We have provided financing numbers to the Finance Committee members as well as other members of Council to ensure that the mini system of garages will be self-sufficient either with the Rittenhouse Square project or without it.
Thank you. Any questions? The Chair recognizes Councilwoman Blackwell.
Thank you. 53 12/2/98 FINANCE COMMITTEE - Bill 980782 What is the time frame again for this? For example, Rittenhouse Square, when when is it planned to begin and --
On the Rittenhouse project, we expect to go all through all of the approval processes we need. Beginning after the 1st of the year, we hope to be in construction, assuming all of those approvals are given to us summer of '99, and we expect to complete the garage by the end of the year 2,000.
Can you tell us what the MBE/WBE requirements are? AND if they are in place at this point in time for the new garage construction at the Rittenhouse development?
Yes. The Parking Authority has met with the City and agreed on the same goals as the City currently does with respect to both contractual awards and employment numbers. So we will be using those in all of the 54 12/2/98 FINANCE COMMITTEE - Bill 980782 contracts that we put out. None of those contracts for Rittenhouse have been let.
I would think so. The Chair recognizes Councilman Nutter.
In that area, two questions. One, Councilwoman, did you ask what would happen if the zoning approval or Historical Commission, if it did not --
If it did not move forward? I'm sorry, I missed the end.
Yes, let me repeat it for you. We have provided financing numbers to members of the committee that show that the mini system itself will be self-supporting either with Walnut Street or without Walnut Street. As part of the bonds indenture, we have done two things. The first is that we have allowed for an extraordinary call on the $26 million portion related to Walnut Street so that those bonds can be redeemed. Or we have set up a system where we may come back to Council to substitute other garage development projects in lieu of that, Walnut Street. 55 12/2/98 FINANCE COMMITTEE - Bill 980782
When you make reference to the Walnut Street project, you're primarily talking about the restaurant and the movie theater?
But you're saying if, for some reason, approvals from other agencies are not forthcoming for either the restaurant or the movie theater, you would proceed?
Yes. The movie theater and the restaurant actually need less zoning variances than the garage in this case.
Oh, okay, that's interesting. All right. Let me go back. This may be more -- or you may know this as well. How much outstanding debt does the Parking Authority have presently?
Approximately $95 million 56 12/2/98 FINANCE COMMITTEE - Bill 980782 in outstanding debt at its airport garages, and these two outstanding bond issues that we are refinancing.
No, those are on top of the 95 million at the airport, which is in a separate indenture.
Currently. What's the debt ceiling for the Parking Authority?
-- and indenture in 57 12/2/98 FINANCE COMMITTEE - Bill 980782 the bonds that you can pay it.
To answer earlier question, Councilman, it is my understanding that none of the current garages that continue to operate have City-issued bonds. You had asked that question earlier.
Okay. Now how many garages does the Parking Authority operate?
Well, at the moment, we operate only one. We have leases for private operators at additionally four garages.
Private operators, at some point in time, build a garage, but you manage them?
And then we oversee 58 12/2/98 FINANCE COMMITTEE - Bill 980782 additionally one other City garage, which is the garage at Love Plaza, underneath Love Plaza, which is on a long-term lease and will be returning back to us in 2,000.
Let me ask you a different question. For the 95 and the million 8 dollars that we talked about of outstanding debt, 9 what garages are captured by your outstanding 10 debt? 11
You have $95 million in outstanding that you said was primarily airport garage.
And then another $12 million, which is a part of this transaction, that you're trying to refund.
Which covers 59 12/2/98 FINANCE COMMITTEE - Bill 980782 whatever garages they cover. For your debt, is your testimony that your debt is only covering airport garages and the others that are part of the million, and which garages are those? 6
No. The airport garages 7 are under a separate indenture and don't come into 8 this. 9
And the revenues from the 12 airport pay those. The rest goes into the Aviation Fund.
For these, we currently have 12 million outstanding in debt. If this passes, we will have 65 million in debt.
And the four garages that are in this indenture will pay that debt.
Right, okay. So you're saying that once you do this transaction, either in your testimony or Mr. Queenan's testimony, you make reference to the need to go to a mini system, because in the past, each garage 60 12/2/98 FINANCE COMMITTEE - Bill 980782 was responsible for supporting a debt that went with that particular garage. And if there were deficiencies, the City had to make up for it.
Now you're going to a kind of a wrap-around debt structure which says that this garage is successful, this garage is not but we're not going to go to the City to go make the coverage; we're going to basically take the money from the more successful garages to cover all of the various potential debts.
Once you do this, will there be any garages that have their own debt structures, that if they are deficient, the City would have to step in and make up the deficiency?
Okay. Councilwoman Verna asked you about MBE/WBE/DBE inclusion. Your response was on construction, I believe. 61 12/2/98 FINANCE COMMITTEE - Bill 980782
We had never included the employment numbers in before this set of contracts which will be issued. The City has requested that we include those goals in these contracts, and we have agreed to do so.
Okay. And what, if any, discussion was there still -- in the frame work of MBE/WBE DBE, what discussion, of any, was there with regard to the non-garage aspects of the Walnut Street project, as you referred to it, specifically either the movie theater the or the restaurant?
Well, the restaurant is included in the portion of the project that the Parking Authority will construct, and so that is part of that. The movie theaters are going to be constructed by the tenant, and not by the Parking Authority.
Well, are you just going to do a frame work of a space and -- 62 12/2/98 FINANCE COMMITTEE - Bill 980782
We will give them a shell. (Unintelligible, parties talking over each other.)
Okay. So let me go back to -- how do you plan to deal with MBE/WBE/DBE issues as it relates to the restaurant either from an ownership standpoint or a contract standpoint? 'Cause you're not going to operate the restaurant, right?
We will not operate but we will certainly own it and we will construct it. And so it will be included in all the same construction documents as the rest of the project. It will all be constructed at the same time.
I understand that part. Are you anticiparing in its operation that there would be only one operator?
Okay. And so I guess I'm still trying to understand. What, if 63 12/2/98 FINANCE COMMITTEE - Bill 980782 anything, will you be able to do about MBE/WBE/DBE issues as it relates to this essentially separate, although constructed by you, owned by you, entity that will be run by someone else?
Relative to the construction of it, I don't see it as an issue. Relative to the employment levels of the companies constructing it, I don't see issues. I'm not sure that I can have anything other than a recommendation in terms of employment once it is completed, leased, and operational.
How will you seek -- how will you seek an operator of the restaurant?
We have identified an operator and are currently under lease negotiates.
It was in fact not, Councilman. We had received a number of calls 64 12/2/98 FINANCE COMMITTEE - Bill 980782 from restaurateurs who were somewhat familiar with this process. It was a determination based on a letter of intent to lease the space to Neil Stein for a restaurant on the Walnut Street side. It was not -- it was not a public bid.
Such that if you ever engaged in some project like this, they might have an interest in doing something --
Okay. Do you have a requirement when you do non-garage operations to issue RFPs or scour out to the public to see if anyone has interest in engaging in those kinds of opportunities?
Generally speaking, yes. However, we acquired these sites, the bulk of these sites by obtaining an assignment of an existing agreement of sale that had been concluded 65 12/2/98 FINANCE COMMITTEE - Bill 980782 between the then-existing owner and a private entity which had already begun discussions with regard to a restaurant, and they reserved the right --
The counter party who had the agreements of sale already on the properties, the private entity who had the -- there were agreements of sale between the owners and the private entity.
All right, take me back a little bit. This is the site where the theater burned down on Walnut Street?
So somebody owns the site, they decide to sell it to whomever they want to sell it to.
-- with a private group, Moreland Investments. 66 12/2/98 FINANCE COMMITTEE - Bill 980782
So that Moreland could buy the properties at established prices that Moreland had negotiated with the owners of the parcels.
Moreland was probably not going to be able to conclude those sales. The Parking Authority found out about it and said, We will take an assignment, and there was negotiation with Moreland about the terms and conditions under which the Parking Authority could acquire Moreland's right to acquire the properties from the existing owners.
Did the Parking Authority have to pay Moreland anything for the assignment?
Yes. And most importantly in response to your question, Moreland reserved certain rights, including rights with respect to the retail space and the right to negotiate the use of the retail space. So generally speaking, the Parking 67 12/2/98 FINANCE COMMITTEE - Bill 980782 Authority would engage in some kind of public-negotiateded or competitive process with regard to non-parking spaces in its garage facilities. But in this case, the Parking Authority did not have that right because we were unable to acquire that right from Moreland, who retained the right.
In the assignment, you were essentially stuck with a deal that had already started --
Right. And presumably, had we been able to acquire those rights as well, we would have had to pay them more, so we elected to let them continue with those rights and pay a reduced price for the assignments of the agreements of sale.
Did Moreland ever pay anything or expend any funds as a result of their agreement of sale with the original owner?
And in your negotiations with Moreland, and you testified earlier that you had to pay something to Moreland --
-- for the assignment. Do you have any information that indicates whether you paid an amount equal to what Moreland's expenses were in their negotiations with the original owner, or did you end up paying some additional premium?
For the purchase of the properties, I paid what had been negotiated by Moreland to the six individual property owners.
But as part of the agreement to purchase, we did agree to pay -- much of what had already been paid by Moreland were deposits on the land, legal fees. They had done a Phase I environmental, so we reimbursed those costs.
At the net cost? Or did Moreland make anything out of the assignment transaction? 69 12/2/98 FINANCE COMMITTEE - Bill 980782
No. What they, quote, made was there reserved rights in the non-parking portions of the parcels. Otherwise, what we compensate -- what they documented to us, out of-pocket disbursements.
And that's what the Parking Authority paid. In lieu of paying some profit to Moreland, if you will, they reserved these rights with respect to the non-parking space.
Okay. So my last question on this: And exactly what are those rights?
With respect to retail space, which was defined as the -- I mean, we didn't know exactly what was going to happen, but the probable restaurants and the probable theater, they reserved the right to be the party that would be leasing or selling -- it turns out we're probably going to condo this and sell the theater. So they would be the party negotiating 70 12/2/98 FINANCE COMMITTEE - Bill 980782 that sale because they would have the right to acquire the parcel from the Parking Authority. They reserved the right to reserve those spaces, whether by lease with respect to the restaurant, or sale with with respect to the theater. And they also reserved certain rights with respect to the air space.
So they're left in the position of being able to cut their own deal with the eventual restaurant operator or theater operator, and that's business between those two parties off to the side, away from us.
Correct. Obviously, we have some control. You know, it has to be a nice restaurant, a nice theater, etc.
Thank you. Are there any other questions from members of the committee? (No questions.)
Do we have anyone else to testify on this bill? (No response.) 71 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793
You're welcome. The clerk will please read Bills No.'s 980791, 980792, and 980793, which are really companion bills, are they not?
Miss Cutler, I'm sorry, did you ask for a suspension of the rules on that?
Bill No. 980791, an ordinance constituting the Fourth Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; authorizing the Bonds Committee, or a majority of them, to issue and sell either at public or private sale in one or more series or subseries, Water and Wastewater Revenue Refunding Bonds of the City of Philadelphia; authorizing approval of the form or forms of bonds; providing 72 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793 that the bonds shall bear interest at a prescribed fixed rate, or rates, or at variable rates which may be payable in different modes, and authorizing agreements to provide credit enhancement or payment or liquidity sources or swap payments for the bonds and certain other actions; authorizing the Director of Finance of the City to take certain actions with regard to the sale of such Water and Wastewater Revenue Refunding Bonds, the investment of proceeds thereof and the City's continuing disclosure obligation; designating the obligations to be refunded from the proceeds of such Water and Wastewater Revenue Refunding Bonds, and setting forth the use of proceeds and providing for the application of interest and income earned on such proceeds; determining the sufficiency of the Project Revenues; covenanting the payment of interest and principal; and supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989. Bill No. 980792, an ordinance 23 constituting the Fifth Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; 73 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793 authorizing the Bonds Committee, or a majority of them, to issue and sell either at public or private sale in one or more series or subseries, Water and Wastewater Revenue Refunding Bonds of the City of Philadelphia; authorizing approval of the form or forms of bonds; providing that the bonds shall bear interest at a prescribed fixed rate, or rates, or at variable rates which may be payable in different modes, and authorizing agreements to provide credit enhancement or payment or liquidity sources or swap payments for the bonds and certain other actions; authorizing the Director of Finance of the City to take certain actions with regard to the sale of such Water and Wastewater Revenue Refunding Bonds, the investment of proceeds thereof and the City's continuing disclosure obligation; designating the obligations to be refunded from the proceeds of such Water and Wastewater Revenue Refunding Bonds, and setting forth the use of proceeds and providing for the application of interest and income earned on such proceeds; determining the sufficiency of the Project Revenues; covenanting the payment of interest and principal; and 74 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793 supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989. Bill No.
980793, an ordinance 5 constituting the Sixth Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; authorizing the Bonds Committee, or a majority of them, to issue and sell either at public or private sale in one or more series or subseries, Water and Wastewater Revenue Refunding Bonds of the City of Philadelphia; authorizing approval of the form or forms of bonds; providing that the bonds shall bear interest at a prescribed fixed rate, or rates, or at variable rates which may be payable in different modes, and authorizing agreements to provide credit enhancement or payment or liquidity sources or swap payments for the bonds and certain other actions; authorizing the Director of Finance of the City to take certain actions with regard to the sale of such Water and Wastewater Revenue Refunding Bonds, the investment of proceeds thereof and the City's continuing disclosure obligation; designating the obligations to be refunded from the proceeds of 75 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793 such Water and Wastewater Revenue Refunding Bonds, and setting forth the use of proceeds and providing for the application of interest and income earned on such proceeds; determining the sufficiency of the Project Revenues; covenanting the payment of interest and principal; and supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989.
You can start again. Identify yourself for the record, please.
Yes. Good morning, I'm Thomas Queenan, City Treasurer. Before I get started, I'd like to make a slight amendment to the three ordinances that have been offered. This is a very --
Yes, I do. If you look in Section 8 of each of the three ordinances, there are two blanks. Those blanks are for dates. I'm just filling in the date, which should be August the 1st. That is the extent of the amendments to the three ordinances you've just described. 76 12/2/98 FINANCE COMMITTEE - Bill 980791, 792, 793