Committee Hearing, October 18, 2001

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 401, City Hall Philadelphia, Pennsylvania Thursday, October 18, 2001 1:35 p.m. - - - BILL 000224 - An Ordinance authorizing the Commissioner of Public Property to execute and deliver to PAID... BILL 000261 - An Oridinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to purchase fee simple title... BILL 000316 - An Radiance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to purchase fee simple title... BILL 010347 - An Ordinance approving the sale of a certain lot or piece of City-owned ground... BILL 010494 - An Ordinance amending Section 9-601... BILL 010553 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to execute a quit claim deed... - - - PRESENT: COUNCILMAN JAMES F. KENNEY, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK RIZZO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 000224 PAGE (WITHDRAWN) BILL 000261 (WITHDRAWN) BILL 000316 ANDRES PEREZ, JR., Commissioner Dept. of Public Property ....................... THOMAS CHAPMAN, City Planning Committee .... 14 7 BILL 010347 ANDRES PEREZ, JR., Commissioner Department 8 of Public Property .................... 10 THOMAS CHAPMAN, City Planning Committee .... 10 9 EILEEN DREB ................................ 11 BILL 010494 10 OTIS HAGLER, JR., Licences and Inspections.. 16 BILL 010553 11 ANDRES PEREZ, JR., Commissioner Department of Public Property ................... 4 12 KATHERINE WARD, ESQUIRE .................... 6 13 3 10/18/01 - PUBLIC PROPERTY - BILL 010553

Good afternoon, ladies and gentlemen. This is the Committee on Public Property and Public Works. We apologize for the delay and appreciate your patience in waiting. The first bill on the calendar is 010553, which is an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to execute a quit claim deed or such other document or documents to convey some or all of the City's interest in a certain property commonly known as 3600-3700 South 26th Street, near Penrose Avenue, to American Premiere Underwriters, Inc., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, or to grant such consent as may be necessary to enable the sale of such property by APU to Danbro, L.P., a limited partnership organized and existing under the laws of the Commonwealth of Pennsylvania, or to Danbro's assignee, in exchange for consideration deemed appropriate by the Commissioner of Public Property, and under and subject to such terms and conditions as the Commissioner of Public Property deems necessary and appropriate. Please identify yourself for the record 4 10/18/01 - PUBLIC PROPERTY - BILL 010553 and proceed.

Good afternoon, Chairman Kenney and members of the Committee of Public Property and Public Works. My name is Andres Perez, Jr. I'm the Commissioner of Department of Public Property. I'm here today to testify in support of this Bill 010553 authorizing me on behalf of the City to execute a quit claim deed or such other document or documents to convey some or all of the City's interest in certain property commonly known as 3600-3700 South Street near Pennrose Avenue to 13 the American Premiere Underwriters, Incorporated, a 14 corporation organized and existing under the laws of 15 the Commonwealth of Pennsylvania or to grant such 16 consent as maybe necessary to enable the sale of 17 such property by APU to Danbro, L.P., a limited 18 partnership organized and existing under the laws of 19 the Commonwealth of Pennsylvania or to Danbro's 20 assignee in exchange for consideration deemed 21 appropriate by the Commissioner of Public Property 22 and under and subject to such terms and conditions 23 as the Commissioner of Public Property deems 24 necessary and appropriate. 25 The City is giving a quit claim deed for 5 10/18/01 - PUBLIC PROPERTY - BILL 010553 its in interest under the South Philadelphia Railroad Agreement in consideration of its interest in 3.544 acres. Consideration is $10,603.89 and indemnification of all potential environmental liability arising from the property from both the buyer and the seller. The transfer of this parcel will allow the development of this site for a local company. I also ask that the rules be suspended so the ordinance may be passed upon the second reading at Council. Thank you.

Commissioner, we obtained the appropriate appraisals and other documentation necessary to authorize the transaction.

Yes. This was done in a rather extensive effort by the Law Department to try and determine what the rights may be. And the valuation was based on a similar transaction on a cost per square foot basis.

Thank you. Any questions for the Commissioner? Thank you very much. Anyone else to testify on this bill? Please identify yourself for the record. 6 10/18/01 - PUBLIC PROPERTY - BILL 010553

Thank you. Good afternoon. My name is Katherine Ward. I'm an attorney for Dambro Limited Partners, a potential buyer of the property. And we have not been in discussions with the City on this issue, although we are aware of the discussions. We just wanted to put on the record that we do oppose having to give an indemnification to the City as we are in the process of, hopefully, starting to clean up the contamination on the property. And obviously, we would be responsible and indemnify the City for anything going forward. However, we do object to having to give an indemnification to the City for past condition of the property.

Could you please, for the record, explain a little bit about the potential use of the site after it is exchanged, after it is acquired by Danbro?

Certainly. Danbro Limited Partnership is an affiliated company with D'Angelo Brothers, Inc., which is an excavation company regarding a lot -- they do a lot of the site work on the major projects in and around the City. They are looking to this site to consolidate all of their 7 10/18/01 - PUBLIC PROPERTY - BILL 010553 operations and facilities in one place in the City to maintain their operations in the city limits. They're actually very excited about the location of this site. As the committee may or may not know, the site has been drastically under-utilized and basically is a dumping ground for people and is a real eyesore. Danbro is looking forward to putting a nice building, several buildings and nice facilities on the property and making it a productive use again.

What's the company's business? What would be its use?

D'Angelo Brothers, Inc., is an excavator, re-grader, they do site work.

Fine. Commissioner, as I understand it, the existing conditions at the site are -- and this is a City-owned property, correct?

It is not a City-owned property. It may have been at one time. And at one time certain interests were carried forward through other transactions. That's the best way I can explain it without a lawyer present. And what you're authorizing me to do is to issue a quit claim 8 10/18/01 - PUBLIC PROPERTY - BILL 010553 deed on any of those interests for the fee that we referenced and the indemnification.

Could you explain the issue of the indemnification opposition?

Certainly. Our issue is that we have no responsibility for the past condition of the property. We have never owned or operated this property. We are looking forward to owning and operating this property. As a condition of the sale, we are agreeing to move forward and perform the rather substantial clean-up that is necessary on this property. However, we don't feel it's appropriate or fair or reasonable without consideration to indemnify any past entity in connection with the contamination we did not cause.

You want this piece of legislation to proceed forward?

We absolutely do want the City's interest to be resolved, yes.

So you're here actually in favor of the ordinance with reservations that you've expressed?

Absolutely.

And Commissioner, 9 10/18/01 - PUBLIC PROPERTY - BILL 010347 you're simply here to express the view of the Administration and the Law Department, I guess and --

Law Department and Commerce. I really was not involved with the face-to-face dealings surrounding this.

Is Danbro, L.P., looking at other sites in the City or outside the City?

This is the site that they -- this is their preferred site for their operations.

Okay. Are there any questions? Thank you very much for your testimony.

Thank you.

Is there anyone who would like to testify on this bill additionally? Seeing none, we will now move to Bill 20 No. 010347, which is an ordinance approving the sale of a certain lot or piece of City-owned ground, with the buildings and improvements thereon erected, if any, situate 826-28 New Market Street in the City of Philadelphia, and authorizing the Commissioner of Public Property to execute and deliver a deed to the 10 10/18/01 - PUBLIC PROPERTY - BILL 010347 purchaser, under certain terms and conditions. Please identify yourself for the record and proceed.

Again, good afternoon, Mr. Chairman. Commissioner Perez for the Department of Public Property here in support of Bill NO. 010347. In summary, although I submitted a rather simple prior testimony, this is a surplus property which we put up for sale at auction. There's a prior ordinance authorizing that auction. And what this ordinance seeks is the approval for the private transaction with the individual buyer.

Good afternoon, Mr. Chairman and members of the committee. For the City Planning Commission, my name is Thomas Chapman. This bill concerns the sale of a property located at 826 to 28 New Market Street. This property is currently a vacant lot. It's zoned G2 General Industrial. Eileen and Walter Dreb purchased this property at public auction on January 31, 2001, at a price of $24,000. The successful bidders intend to fence off this property and use it as a play lot for their adjacent home. The Planning Commission at its meeting on May 24, 2001, recommended that Bill No. 11 10/18/01 - PUBLIC PROPERTY - BILL 010347 010347 be approved.

Thank you very much. Any questions of these witnesses?

Mr. Chairman, I also ask that the rules be suspended so the ordinance maybe passed on the second reading.

Thank you very much. Please identify yourself for the record.

My name is Eileen Dreb, and my husband and I wanted to the purchase the lot to build an addition onto our house and make a play area for our children.

Great. Very sorry to have you wait so long.

That's no problem.

And we also appreciate the fact that you're willing to make a continued investment in the City as opposed to moving your children to another community outside of Philadelphia to have a larger yard and lot for them to play in. We appreciate the fact that you've committed to the City and are willing to continue to invest in it and we'll do our best to get this through as soon as possible. 12 10/18/01 - PUBLIC PROPERTY - BILL 000224

Thank you.

Thank you for coming. Any questions? Thank you very much. Next bill on the agenda is Bill No. 8 000224, an ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Authority for Industrial Development, PAID, without consideration, a deed conveying fee simple title to a certain tract of City-owned land with the buildings and improvements thereon, situate at 1300, 1302, and 1304 Frankford Avenue, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation. Please identify yourself for the record.

Mr. Chairman, again Andres Perez, Commissioner of the Department of Public Property. I had understood this was withdrawn.

Let the record note that this bill has been withdrawn. The next bill for consideration is Bill 13 10/18/01 - PUBLIC PROPERTY - BILL 000316 No. 000261, which is an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia to purchase fee simple title to certain properties bounded by Buttonwood Street, Hamilton Street, Nectarine Street and Spring Garden Avenue with any improvements situated thereon located in the Fifth Ward, under certain terms and conditions. I assume Spring Garden Avenue is Spring Garden Street.

Yes.

Please identify yourself for the record.

Again, Mr. Chairman, I'm Commissioner Perez, Department of Public Property. And we are actually asking for withdrawal of this bill in favor of handling this transaction through Bill No. 000316. There were some errors when they had been submitted and Bill No. --

So 000316 is replacing 000261?

Yes, with the correct boundaries.

And that's been 14 10/18/01 - PUBLIC PROPERTY - BILL 000316 discussed with the District Councilperson?

Yes.

Okay. The next bill for consideration is on 000316, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia to purchase fee simple title to certain properties bounded by Buttonwood Street, North Ninth Street, North Tenth Street, Nectarine Street and Spring Garden Street with any improvements situated thereon located in the Fifth Ward, under certain terms and conditions. Please identify yourself for the record.

Good afternoon. I'm Commissioner Perez, Department of Public Property, Mr. Chairman. This ordinance allows us to exercise our option to acquire these properties. It was an option that we had overlooked in our prior transaction when we acquired the building that was associated with it. This closes the loop on that and provides parking space that we are currently paying a rental fee on.

Mr. Chapman.

Once again, for the City 15 10/18/01 - PUBLIC PROPERTY - BILL 010494 Planning Commission, my name is Tom Chapman. This bill concerns purchase of a number of properties that are currently being leased by the City. The properties are zoned G2 Industrial and they will continue to be used for same purpose, and that's parking. The Planning Commission at its meeting of June 1, 2000, recommended that this bill be approved.

Thank you very much for your testimony. Any questions?

I ask for a suspension of the rules.

Thank you very much. No more questions for this witness. We will now move to Bill No. 010494, an ordinance amending Section 9-601, entitled "Garages, Parking Lots, Sales Lots and Sales Showrooms," of the Philadelphia Code to provide for the posting of signs listing the accepted methods of payment of parking fees at public parking garage and public parking lot entrances, under certain terms and conditions. Please identify yourself for the record. 16 10/18/01 - PUBLIC PROPERTY - BILL 010494

Good day, Councilman Kenney and members of the committee. I am Otis Hagler, Jr., Legislative Regulatory Affairs Manager for the Department of Licences and Inspections. Today I am here to provide testimony on Bill 010494 which, if enacted, will require the posting of signs lifting the method of payment at public parking garages and lots. The department has no options to the enactment of Bill 010494 and is prepared to enforce its provisions should it become law. Thank you. I'll be happy to answer any questions at this time.

Thank you very much. For the record, this is an ordinance of my suggestion. We receive in my office a number of complaints from people both in town, in the City and outside the City who upon visiting Philadelphia and parking in one of our public parking lots return to their car to find out that they can only pay cash and not accept credit cards. And we wanted to make it easier for people to pick and choose lots that accept various methods of payment, especially with people who are traveling for conventions and other types of business. People normally use credit cards as a regular act of doing business throughout their 17 10/18/01 - PUBLIC PROPERTY - BILL 010494 day. And we've gotten a number of complaints that upon all day long parking that they're presented with a or $30 parking bill, cash only. We don't 5 want to require the parking lot to do anything -- 6 require them to do anything by accepting credit 7 cards, we just want to make sure that the parking 8 public was aware that this is a cash-only lot or 9 various methods of payment, so we thank you for your 10 testimony. 11

Thank you. 12

Councilmember 13 Clarke. 14

Thank you, Mr. 15 Chairman. Just one quick question with respect to 16 the sizes of the garages. Is it subject to all, 17 everybody City-wide? 18

It's multi-level 19 garages, flat-level garages City-wide. 20

Thank you. 21

Any other questions? 22 Seeing none, this will conclude the 23 testimony on the bills listed day. I want to make 24 sure for the record that we had a quorum present 25 prior to the start of this hearing with 18 10/18/01 - PUBLIC PROPERTY - BILL 010494 Councilmember Rizzo, Council President Verna, Councilmember Blackwell, Councilmember Clarke, Councilmember Reynolds-Brown and Councilmember Kenney as chairman. That will conclude the business of the public hearing. - - - 19 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Thursday, October 18, 2001 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 000224, 000261, 000316, 010347, 010494, 010553 - - - PRESENT: COUNCILMAN JAMES F. KENNEY, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK RIZZO - - - 20 10/18/01 - PUBLIC PROPERTY - PUBLIC MEETING

We will now enter into a public meeting. The Chair recognizes Councilmember Clarke for a motion on Bill 000316.

Thank you, Mr. Chairman. I make a motion that Bill No. 000316 be reported out of committee with favorable recommendation and request for suspension of the rules so as to be read at the next Session of Council. (Duly seconded.)

It's been moved and seconded. All in favor? (Aye.)

There are none opposed. Bill No. 000316 will be reported out of the committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Blackwell for a motion on Bill No. 010347.

Mr. Chairman, I 21 10/18/01 - PUBLIC PROPERTY - PUBLIC MEETING move that Bill No. 010347 be reported out of committee with a favorable recommendation and also that the rules be suspended so as to permit first reading at our next Session of Council. (Duly seconded.)

Moved and seconded. All in favor? (Aye.)

There are none opposed. Bill No. 010347 reported out of this committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Blondell Reynolds-Brown for a motion on Bill No. 18 010494.

Mr. Chairman, I move that we move 010494 out of committee with a recommendation and so have a first reading at the first meeting of Council with a suspension of the rules.

Thank you very much. Do I hear a second? 22 10/18/01 - PUBLIC PROPERTY - PUBLIC MEETING (Duly seconded.)

Move and seconded. All in favor? (Aye.)

There are none opposed. Bill No. 010494 will be reported out of this committee with a favorable recommendation. A request will be made for rule suspension to allow first reading at our next Council Session. The Chair recognizes Councilmember Rizzo for a motion on Bill No. 010553 with a suspension of the rules.

I'm sorry, Mr. Chair. I apologize I was not -- could you take care of that one for me?

Sure. No problem. Councilmember Blackwell, please would you make a motion n Bill 010553?

Yes, Mr. Chairman. I move that Bill No. 010553 be reported out of committee with a favorable recommendation and also a recommendation that the rules be suspended so as to permit first reading the at our next Session 23 10/18/01 - PUBLIC PROPERTY - PUBLIC MEETING of Council. (Duly seconded.)

Moved and seconded. All in favor? (Aye.)

There are none opposed. Bill No. 010553 reported out of this committee favorably. A request will be made for rules suspension to allow first reading at our next Council Session. That concludes business of today's hearing and meeting. Thank you for your attendance. I'm sorry. For the record Bill No. 16 000224 will be withdrawn at the request of the sponsor. Bill No. 000261 will be also withdrawn at the request of the sponsor. That concludes our business. Thank you. (Council adjourned at 1:54 p.m.) - - - 24 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of October 18, 2001, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ___________________________ Lisa C. Bradley, RPR and Notary Public