COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Saturday, November 1, 2008 10:15 a.m. - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, CHAIR COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM GREENLEE COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILWOMAN BLONDELL REYNOLDS BROWN BILL 080741 - An ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Eleventh Street, Filbert Street, Tenth Street and Market Street. BILL 080742 - An ordinance amending Chapter 18 14-400 of The Philadelphia Code, entitled "Commercial Entertainment District"... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good morning, everyone, and welcome. I understand that we have quite a number of witnesses, approximately 60 to be exact. In order to afford everyone an opportunity to testify, I'm going to ask that each witness be allowed three minutes to testify. And in my opinion, if you can't say it in three minutes, it's not worth saying. Because of the Fire Code, we cannot allow people standing on this floor. They will be invited to the gallery, and any overflow will go into the Caucus Room, where we have a TV that's being set up. So at this time, this is the public hearing of the Rules Committee, and I would ask Mr. McPherson to please read the title of the bills. MR. McPHERSON: Bill No. 23 080741, an ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of 3 11/1/08 - RULES - BILLS 080741 & 080742 land located within an area bounded by 11th Street, Filbert Street, 10th Street and Market Street. Bill No. 080742, an ordinance 6 amending Chapter 14-400 of The Philadelphia Code, entitled "Commercial Entertainment District," by adding provisions relating to proposed projects in the Center City area and relating to public art, by providing for revised effective dates, and by making technical changes, all under certain terms and conditions.
Thank you. At this time, the Chair recognizes Councilman DiCicco for opening remarks. COUNCILMAN DiCICCO: Thank you, Madam Chair, and good morning to everyone. And welcome back to Philadelphia's great casino debate again. I want to thank all of you and all of my colleagues for being here 4 11/1/08 - RULES - BILLS 080741 & 080742 today. For two years we've been working through this issue. Your support has been invaluable and is truly appreciated. This body has been more engaged on this topic perhaps than any other during my tenure and I dare say probably during the tenure of many of those who preceded me and have had a longer time in Council than I. We all know that the Gaming Act, which permits two casinos in Philadelphia, was passed by the General Assembly and signed by Governor Rendell in July of 2004. None of us -- and I'll repeat -- none of us in this room voted for it, but it is our responsibility to deal with it. We know that with gaming revenues comes gaming costs, public safety concerns, addictions, traffic problems, just to name a few. We also know that we've challenged the Gaming Act at taxpayers' expense 14 times, and we lost 14 times. So whether we like it or 5 11/1/08 - RULES - BILLS 080741 & 080742 not, we will have two casinos in the City of Philadelphia. I know that doesn't make a lot of people in this room happy, and some may even disagree with that statement. I still and always have respected your opinion. However, City Council is familiar with both sides of the gaming argument. A robust record has already been created on the matter in these Chambers. Therefore, with all due respect, we've requested witnesses to limit their testimony to the legislation before us specifically, and thank you for honoring that. A Saturday hearing is something new to City Council. I think it shows the importance of this topic, as well as our commitment to an open and transparent process. Open and transparent, this is somewhat ironic. We're going to hear a lot about how this legislation is the opposite. We're going to be told that we're rushing this project, how we are 6 11/1/08 - RULES - BILLS 080741 & 080742 not giving appropriate consideration to this proposal, that we've already cut a back-room deal. However, as you will hear in the Administration's testimony, nothing could be further from the truth. My office and members of the Administration designed a process to maximize public input and release information in as a timely manner as possible. Foxwoods and PREIT have agreed to work cooperatively with us and understand our demand for process. Most importantly, all of us recognize that this proposal may fail. After all, that's what a process does, it allows decision-makers the opportunity to figure out whether or not a project works and it allows the public to provide input. Without a process, all you have is noise. This legislation allows that process to continue. The Mayor and I have committed to the public, and I assure you now, this process will be open and transparent. But what does open and 7 11/1/08 - RULES - BILLS 080741 & 080742 transparent mean? An open process is one that permits new ideas and opinions, that is willing to accept and welcomes criticism. It allows everyone the ability to participate. That was the intent of the Planning Commission's hearing last week. That is the intent of today's hearing. And that is the purpose behind future hearings, to provide everyone the opportunity to participate in the discussion and the decision. Transparency, on the other hand, is about allowing the public to see what we're doing. That's why I announced when I would be introducing this legislation. That's why we've issued detailed explanations and timelines on how this process will work. And that's why I've attended several community meetings on this topic and will probably attend several more, because explaining my thinking, ensuring everyone knows where I am and what I am doing is the essence of transparency.
8 11/1/08 - RULES - BILLS 080741 & 080742 But just because the process is open and transparent, it does not mean that we're always going to agree. In fact, we've already had several disagreements: the introduction of the legislation, the calling for a hearing -- for holding public hearing, the insistence that the process must begin at all. But just because we disagree doesn't mean we're not going to be open and transparent. It simply means we will disagree. And no matter what happens in this process, whether a casino gets built at the Gallery or in South Philadelphia, and believe me when I say there is no 18 other choice, there's going to be a lot of people who are upset. When we make that final decision, I expect those people -- in fact, I expect every Philadelphian -- to hold us responsible for that decision. I promise you the process will be right and I promise that everyone will 9 11/1/08 - RULES - BILLS 080741 & 080742 be heard, but in the end, City Council was elected to make decisions. I will not avoid that responsibility. But I challenge everyone in this room to ensure that you or your organization is as open and as transparent as you expect us to be. Don't allow passion to defeat process. Listen to those that disagree. Encourage and promote discussion. Permit us to share information when appropriate, and ensure that the information you share with your constituencies is accurate. People should be given the right to make up their own mind. The only way that can happen is by having an open and honest conversation. Open and transparent, I have made that promise and I have always lived up to it. I hope all of you can do the same. Thank you, Madam President, for the opportunity to make that opening statement. 10 11/1/08 - RULES - BILLS 080741 & 080742
You're welcome. I would ask Mr. McPherson to please call the first witness. MR. McPHERSON: The first panel, Andrew Altman, Deputy Mayor for Economic Development, and Alan Greenberger, City Planning Commission. (Witnesses approached witness table.)
Good morning. Welcome. Please identify yourself for the record and proceed with your testimony.
Good morning, Councilmember Verna and members of the Rules Committee. I'm Andrew Altman. I'm the Deputy Mayor for Planning and Economic Development and the Director of Commerce. I am here this morning to testify in support of Bill Nos. 080741 and 080742 introduced by Councilmember DiCicco on October 16, 2008. Joining me today are also Alan 11 11/1/08 - RULES - BILLS 080741 & 080742 Greenberger, the City Planning Commission, who officially starts on Monday, I'd like to point out.
We appreciate your being here. And also Terry Gillen, Senior Advisor to the Mayor for Economic Development. Bill No. 080742 amends the Commercial Entertainment District, CED, section of the Philadelphia Zoning Code, and Bill No. 080741 amends the Philadelphia Zoning Maps by placing the CED classification on the Gallery II site on the 1000 block of Market Street. I will begin by discussing why I believe that the Gallery II location should be reviewed as a gaming site, and then Alan Greenberger, incoming Executive Director of the Planning Commission, will testify about the specifics of the legislation. I think this is important, 12 11/1/08 - RULES - BILLS 080741 & 080742 because we must remember that our actions today are not focused only on a single property or a casino development by Foxwoods, but instead reflect broader planning principles that affect the City. We must discuss the introduction of gaming into the fabric of Philadelphia by taking into account our more comprehensive land use plan for the area. (Audience member yelling.)
No. 13 We are not going to tolerate that. We will respect you. We are asking that you respect us. Thank you.
Downtown casinos have a long tradition in Europe, Australia, Canada, including London, Sydney, Montreal and Berlin. The United States has recently started to follow this trend with Massachusetts in the process of approving gaming that will permit a casino in Boston. By moving away from the model of large facilities that are accessible only by car, downtown 13 11/1/08 - RULES - BILLS 080741 & 080742 locations have the potential to meet modern urban design principles, as they are more accessible to pedestrians and can capitalize on existing public transit. It is important when we look at this site and the process we're about to undertake to consider current conditions along the Market East corridor. With vacancy rates at 36 percent and only 38 percent of its potential development actually built, Market East is currently under-occupied and under-developed. In 2007, Center City accounted for approximately percent of all the 18 jobs in the City of Philadelphia. That's 19 over 145,000 jobs. These are 20 high-paying, good jobs that account for 21 over $14 billion in annual salaries and 22 over 50 percent of all the annual 23 salaries paid in the City of 24 Philadelphia. Yet, Market East only 25 accounts for 25,000 of those jobs, which 14 11/1/08 - RULES - BILLS 080741 & 080742 is less than 18 percent of all jobs in Center City. The current conditions at Market East, with high vacancy, vast parking lots, low employment and few eyes on the street, create an unsafe environment, both for pedestrians and for residents. Meanwhile, Philadelphia has undergone a great rebirth over the last years, particularly with the growth of 13 its downtown areas, like the office core 14 along West Market Street, residential 15 neighborhoods like Old City, Society 16 Hill, Washington West and Chinatown, just 17 to name a few. 18 Market East has been the 19 subject of redevelopment plans dating all 20 the way back to the Market East plan of 1958. Since that first study in 1958 through the recent Center City District study, the vision of Market East as an entertainment district with theatres, shops and restaurants has remained the 15 11/1/08 - RULES - BILLS 080741 & 080742 same. But despite strong downtown growth, strong surrounding neighborhoods, the focus of many Administrations and the success of a few large-scale projects like the Gallery, Convention Center and hotels, this vision of a vibrant Market East remains unrealized. In contrast to its under-utilization, Market East offers many opportunities that can help to spur the achievement of this vision. Its extensive transit infrastructure makes it one of the most accessible areas in the City and in the entire region. This network is impressive. Three rail stations include access to all five subway-to-surface trolley lines, the Market Frankford line, Broad Street line, ten Regional Rail lines and PATCO. There are also 14 SEPTA bus routes through the area, as well as New Jersey Transit buses and the regional bus terminal. In addition to public transit, 16 11/1/08 - RULES - BILLS 080741 & 080742 there is easy access to Interstate 676, 95 and 76. Why is it worth considering and exploring the potential of a casino at Market East? And, again, I want to be clear about this. This is not to say that we have yet agreed that this is the location or have made a decision, but why is it worth considering? First, its downtown location, transit infrastructure history and anchor businesses would allow a potential casino to leverage its extensive infrastructure, the nearby Convention Center expansion and central location. Its potential to encourage further development and growth of the entire corridor, from City Hall to Independence Mall, presents a strong opportunity for the continued revitalization of a key Philadelphia downtown location, and for addressing issues of crime, vacancy and under-utilization currently holding it 17 11/1/08 - RULES - BILLS 080741 & 080742 back.
We support the exploration of Market East as a possible gaming location that is part of a larger plan to realize the potential of the entire corridor. We support an in-depth examination of the ways in which the addition of gaming, as allowed in a CED classification, will revitalize the area while respecting the needs of surrounding neighborhoods. Recognizing that State law provides for two casinos in Philadelphia, we support a serious effort to gather and analyze the information necessary to assure that this development is accomplished in a manner most consistent with our comprehensive planning goals. Only in this way can we hope to achieve a result that fosters the health, safety and general welfare of our citizens. In exploring Market East as a possible location, we are implementing a process to answer important questions that are currently unanswered and must be 18 11/1/08 - RULES - BILLS 080741 & 080742 addressed. This deal is not done, and the conclusion is not foregone. We still need to answer questions about programming, about financing, about costs, about impacts, and we will do so together through this process with all of the key stakeholders. As the CED zoning legislation mandates, we will require more information, which will be shared and discussed promptly in the appropriate forum, whether it be the Planning Commission, City Council or in discussions with advocacy and other neighborhood groups. This legislation will start a planning process that anticipates the plan of development and the information to be provided by Foxwoods. It is in no 20 way an attempt to force something through that will allow gaming at the Gallery II location. In fact, by creating an inclusive process that facilitates the sharing of information, it is just the opposite. 19 11/1/08 - RULES - BILLS 080741 & 080742 The CED legislation does not take effect and, therefore, permit gaming until a plan of development is approved by the City Planning Commission and City Council. As adopted by City Council and currently in place, the CED legislation requires the creation of a plan of development for the project that will be examined in great detail and from all angles. Foxwoods will be required to include project specifics about the facility itself, like what the building will look like, where the various uses will be inside the building, where the entrances and exits will be located, how the building will be serviced. But just as important, and more important, it will also include an assessment of how the project will impact the neighborhood on issues like vehicular and pedestrian traffic and parking. In addition to what is required by the legislation, we are not only 20 11/1/08 - RULES - BILLS 080741 & 080742 examining the economic impact, including the direct revenue the casino will generate, but also the impact it will have on small local businesses and how we can address those concerns and make sure that Foxwoods is a good corporate partner with our local businesses. Finally, and just as important as any other issue, we must consider the social impacts and costs associated with the potential development. We have listened to the surrounding communities, and it is very clear that we need to have a better understanding of key social issues, like crime, public safety, addiction and other associated afflictions. These are issues that we need to address regardless of whether the casinos are on the waterfront or at the Gallery. We take this planning process very seriously and have already been working extensively with Councilmember DiCicco, Everett Gillison, our Deputy 21 11/1/08 - RULES - BILLS 080741 & 080742 Mayor for Public Safety, Dr. Evans, our Director of Behavioral Health, Alan Greenberger and the entire Planning Commission staff, Rina Cutler, the Deputy Mayor for Transportation, Shelley Smith, the City Solicitor, as part of a team to begin to understand the potential impacts of a casino at this location.
Coordinated by Councilmember DiCicco's office, we have already begun the community outreach process and meeting with surrounding community groups, and we will continue to do so throughout the process. The plan of development must be approved by the Planning Commission, the City Council for the proposed CED amendment to take effect. And Alan Greenberger will explain that more, but that's a very important point. That means that we have at least two more formal public hearings on the Foxwoods proposal for this site, and since the plan of development requires the 22 11/1/08 - RULES - BILLS 080741 & 080742 provision of so many studies and amount of information, we intend to hold additional public hearings to explain the information and provide the public with the opportunity to comment on the work as it is received. With all of the unknowns still surrounding the site, programming, design, floor plans, phasing, use and impacts, this legislation merely sets the stage. It invites Foxwoods to sit down and provide the details in a plan of development to enable the City and the public to fully understand and assess what this development would mean. However, simply to have this option and the potential benefit of receiving a plan to consider, it is important and necessary that we provide this framework now, even though no plan has been created yet, because it is unrealistic to expect that the developer will put forth the time and money to create a plan for review, with all of its 23 11/1/08 - RULES - BILLS 080741 & 080742 many details, without some showing by the City that we intend to consider that plan in good faith. Passage of these bills simply creates that opportunity. It identifies the process to review the plan at the Gallery site. I will now ask Alan Greenberger, incoming Executive Director of the City Planning Commission, to go into details of the legislation, the zoning and plan of development, and I'll be happy to answer any questions after his testimony.
Good morning, Council President Verna and members of the Rules Committee.
I'm Alan Greenberger, incoming Executive Director of the Philadelphia City Planning Commission. Thank you for the opportunity to testify on Bills 080741 and 080742 introduced by Councilmember 24 11/1/08 - RULES - BILLS 080741 & 080742 DiCicco on October 16, 2008. Bill No. 080742 amends the Commercial Entertainment District, which is referred to as CED, section of the Philadelphia Zoning Code, and Bill No. 7 080741 amends the Philadelphia Zoning Maps by placing the CED classification on the Gallery II site on the 1000 block of Market Street. At its meeting of October 21, 2008, the City Planning Commission considered Bills 080741 and 080742 and recommended that they approved. The total effect of these bills is to establish the permissibility of gaming at this location and to create the possibility of further related development in the surrounding Market East area. These bills do not approve a plan, allow the issuance of zoning or building permits, authorize the start of construction or permit gaming to occur until a formal plan of development is prepared, presented in public and approved by the City Planning Commission, 25 11/1/08 - RULES - BILLS 080741 & 080742 the City Council and the Mayor. I would like to start by clearing up a misconception about what these two specific bills actually do and the difference between changing the zoning classification and mapping CED or any other zoning classification to a specific property. CED is a zoning classification, just like Residential, R, Commercial, C, Industrial, LR, or any of the others, and those classifications are defined for the entire City in the Zoning Code. Bill 080742 amends some of the specific requirements of the CED classification for the Market East area in order to take advantage of the area's unique conditions. It does not create a district or entitle properties for CED uses. It simply establishes the requirements of CED for a specific area bounded by 6th, Chestnut, Broad and Arch. This is similar to the different requirements of the C-5 Commercial zoning designation between Market East and West 11/1/08 - RULES - BILLS 080741 & 080742 Market. Bill No. 080741 maps the CED zoning designation specifically to the Gallery II site on the 1000 block of Market Street. Under this bill, the zoning designation only applies to the specific site that is identified in the legislation. This is the same process as if the site were proposed for industrial use or another classification that already existed in the Zoning Code. And uniquely under CED, the redesignation of this one square block from C-5 to CED will not take effect unless and until a plan of development is approved. If either the Planning Commission or City Council reject a proposed plan, this site is not reclassified and would remain C-5. As originally conceived, the City's CED zoning classification was written to regulate gaming facilities on large parcels of vacant land. These facilities were envisioned as new construction on, quote, edge sites; that 27 11/1/08 - RULES - BILLS 080741 & 080742 is, sites located outside the most densely developed portions of the City. Some particular requirements of the CED classification were not designed or intended for already developed sites in the heart of the Central Business District. As a result, the provisions of the current CED classifications are not responsive to or appropriate for developed sites in the heart of Center City, the most intensely developed and infrastructure-rich part of the City and region. Bill No. 080742 addresses this failing by amending the CED classification applicable only to this East Market area to incorporate provisions of the Zoning Code that are the most appropriate for Philadelphia's dense, urban core. Bill No. 080742 amends the provisions of the CED zoning classification when used in the area bounded by 6th Street, Broad Street, 28 11/1/08 - RULES - BILLS 080741 & 080742 Chestnut Street and Arch Street.
In this area, the CED designation would be amended to include provisions consistent with the area's existing zoning designation of C-5 Commercial. These provisions include technical zoning regulations such as basic allowable gross floor area; floor area ratios, known as FAR, bonuses; additional density incentives and certain use and height regulations that are consistent within the boundaries of this district. These amendments would also permit CED parking requirements in this area of Center City to be met by providing parking spaces within 1,000 feet, which is roughly a five-minute walk, of a designated CED site. This is consistent with standard planning principles in an urban commercial setting. In addition, freestanding signage would not be permitted as CED would permit on larger, open parcels such as the waterfront. The amendments also 29 11/1/08 - RULES - BILLS 080741 & 080742 exempt the public art requirements for interior alterations to retail or restaurant uses in existing structures, such as the Gallery, if those uses are not accessory to a licensed gaming facility. We believe that these amendments are necessary to ensure that if a gaming facility is to be relocated to the Market East corridor, it fits appropriately with the surroundings and takes advantage of the area's existing transportation infrastructure. Bear in mind that if these bills are adopted, the one-block site and the potential gaming use would apply to an existing building in a C-5 zone. For that reason, it makes sense to retain many of the current features and requirements of C-5 zoning and would result in no significant structural changes to the building. We do anticipate improvements to the facade and interior elements of the building, changes not directly impacted by the 30 11/1/08 - RULES - BILLS 080741 & 080742 ordinances before you today. It is important to note that the proposed amendment to this zoning classification does not change the development approval process. As stated earlier, this process will still require the submission of a plan of development by the proponent, which will need to be reviewed and approved by the Philadelphia City Planning Commission and City Council before gaming at this site could occur under the City's Zoning Code. Companion Bill No. 080741 amends the Philadelphia Zoning Maps by changing the zoning designation of the block bounded by Market, Filbert, 10th and 11th Street from the existing designation of C-5 Commercial to a zoning designation of CED, Commercial Entertainment District, if and when a plan of development for that location is approved. Both of these bills represent an effort by the City of Philadelphia to 31 11/1/08 - RULES - BILLS 080741 & 080742 take proactive steps in determining where and how licensed gaming facilities might be relocated. They're just the first steps in a public process to evaluate the proposal to relocate the Foxwoods casino from the South Delaware Riverfront to Center City. These bills also serve to demonstrate that the City is moving forward in good faith and conducting a comprehensive, open and transparent process for evaluating proposals for gaming sites. These public steps are intended to initiate an extended and detailed study by potential developers which will ultimately result in a proposed plan of development. The review of this process by the City Planning Commission and City Council are required steps in the evaluation of this development proposal. The plan of development must include information concerning the size, arrangement and access to buildings on the site, details for landscaping, 32 11/1/08 - RULES - BILLS 080741 & 080742 signage and the provision of building services, an analysis of traffic and pedestrian impacts, a parking management study, recommendations for improvements to mitigate traffic and parking impacts and any other information which the Commission may deem necessary in the course of its review.
The amount of information required in a plan of development is extensive, will take time and money for the proponents to develop. The City Planning Commission intends to convene additional public meetings about this proposal as details about the plan of development become available. This concludes my formal testimony, and I'll be happy, as will Deputy Mayor Altman, to answer any questions at this time.
Thank you, Madam President. Just a quick question. Neither 33 11/1/08 - RULES - BILLS 080741 & 080742 pieces of this legislation actually mention gaming, do they?
Neither of these bills actually mention gaming, do they?
I think that the, correct me if I'm wrong, the bill 11 080742 does mention gaming, because it is part of a Commercial Entertainment District use.
But that's part of the broader definition of Commercial Entertainment District?
It's a piece. It's a critical piece of a larger district, yes.
So one bill 21 essentially establishes a Commercial Entertainment District; the other bill 23 zones a specific site --
That's correct. 34 11/1/08 - RULES - BILLS 080741 & 080742
-- as a Commercial Entertainment District site for those purposes. So technically if there was some other Commercial Entertainment District purpose for the site, then it could be used under these bills?
In other words, your legislation says "the proponent," but the proponent has not been identified, although we know who the proponent is. There could be another proponent that develops a plan that would fall under Commercial Entertainment District and would also be viable for that specific site; is that correct?
If there was another proponent right now under these two bills, the only site that they could work under would be the 1000 block of Market Street, yes.
The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. And if you could just go a little bit further on that, because there's still a lot of confusion from a number of people. And, Andy, you were at the meeting at Society Hill the other night, where they interpret the boundaries in the one bill as allowing for a casino or casinos anywhere within those boundaries. You explained it well, Alan, but if you could just go a little bit further and explain why maybe that is not the case.
The first piece -- the first legislation, I think that's the 742 bill, establishes a classification that needed to be different than the one that currently exists, because the one that currently exists does not -- its rules do not 36 11/1/08 - RULES - BILLS 080741 & 080742 adequately address a downtown Center City location. However, the establishment of the classification does not establish the viability of gaming on any site within the geography presented or, for that matter, within the City of Philadelphia. All it does is establish a classification. It's the other bill that maps it to a specific site that establishes the viability of the use on the site. Therefore, nobody can come along and legally propose gaming on any other site under these bills than the 1000 block of Market Street. And if somebody wanted to do so, it would have to be a separate bill, it would have to come before the Commission again and ultimately before City Council again.
Let me just add to that that it's important to look at it also the other way, which is what are the protections built in that people are concerned about. And at the end of the day as you follow that through, nothing 37 11/1/08 - RULES - BILLS 080741 & 080742 takes effect, the bill doesn't take effect until the plan of development has gone through a public hearing process and is ultimately approved by the Council. Until that happens, for this specific site, in this case 1000 block, the legislation doesn't take effect. So it allows a process, but it does not rezone that site until the plan of development is adopted. COUNCILMAN DiCICCO: Thank you. And during the discussions that were between Brian Abernathy of my office and your offices, there was the concern do we keep it C-5 or do we do the CED. Would you just briefly explain what took part in that discussion, why this becomes a better bill in the sense of protection for the community as it relates to future gaming facilities.
That's right, Councilmember, and we've had a lot of discussion and a lot of concerns raised at the different community forums saying 38 11/1/08 - RULES - BILLS 080741 & 080742 that this is going too quickly, why are you doing this legislation, it's a foregone conclusion and why have you constructed the zoning proposal in this way. In fact, the easiest way to do this if we were truly trying to do the quickest and fastest and not an open and transparent process would be simply to take the C-5 legislation and allow gaming within C-5 and adopt -- have the bill 12 before you and adopt that legislation and say we're done, and then let Foxwoods or any other casino proceed within the Center City District. This does not do that, and the Councilmember's office, our office, Planning Commission and many people carefully tailored this to take the CED provisions, and they say, why take the CED. Because the important thing that the CED does is allows for the plan of development process, which the C-5 zoning would not allow. So we've kept the Center City zoning, but taken the CED so that we could build a process 39 11/1/08 - RULES - BILLS 080741 & 080742 and build safeguards and actually set out the framework by which Foxwoods, PREIT, the owner of the Gallery, the City and everyone can have a very clear understanding of what this process is. And that's how the CED legislation was constructed and why we thought it was so important to do that for this opportunity, this site. COUNCILMAN DiCICCO: Thank you. I have no further questions. Thank you.
Thank you. Can you tell us who are the existing tenants at the site? Do we know?
I can answer that. I can't recite them all to you 40 11/1/08 - RULES - BILLS 080741 & 080742 exactly, but Burlington Coat Factory is in that site I think at the corner of 11th Street. Old Navy is at the corner of 10th and Market, and there were a few smaller miscellaneous retails on the upper levels. On the Concourse level within that is heavily occupied by various restaurants, breakfast places, food courts and so on.
Will there be any difficulties in removing or relocating existing tenants?
Well, that's really a question we'll have to ask the PREIT. I think one of the issues they're working on right now is and working with Foxwoods is, one, to understand exactly what their physical requirements are going to be, and then they have to look -- PREIT has to look at how they will deal with the existing tenants, and I think that's part of the overall plan that they are working on, will be working on. 41 11/1/08 - RULES - BILLS 080741 & 080742
Very well. Assuming everything goes well with the development of this site, what would be the earliest opening as a gaming venue? Do we have any indication?
Well, it would probably be best to ask the next group -- I think you have Foxwoods coming up -- in terms of how long that would take them to actually open. A lot depends right now -- if legislation is adopted, they'll produce a plan of development. That can take a few months to do. And I don't know if at that point they maybe have a 12-month construction schedule, something along those lines, but I'll leave that to Foxwoods to answer.
Very well. Thank you. Any other questions? The Chair recognizes Councilman Kelly.
Mr. Altman, 42 11/1/08 - RULES - BILLS 080741 & 080742 I just want to know, were there any other locations in Center City considered for gaming?
I mean, at one point there was, as you know, and I wasn't here for that, but there was a task force, gaming task force, that had looked at a number of sites around the City, including Center City locations. This was something that was brought forward from Foxwoods to us as an alternative, I think as a result of, first of all, understanding better a vision for a waterfront, seeing what the downtown opportunity was, looking at previous studies, and that's how this came forward, but I think there was some evaluation in previous studies of downtown locations.
So it would be correct to say that there were other 43 11/1/08 - RULES - BILLS 080741 & 080742 locations in Center City considered at one time or looked at?
I wasn't here to speak to that. (Witness approached witness table.)
Hi. I'm Terry Gillen, Senior Advisor to the Mayor, Councilman. As part of this, as you know, the way the process worked actually was that when the Gaming Control Board invited companies to bid on sites, there was a -- it was really a process that was driven by the gaming companies themselves. It was not driven by the City of Philadelphia. So although the City had looked at potential sites, the real process was driven by the companies. And ultimately there were five companies that identified five sites, none of which were Center City sites, and they are the ones that went to the Gaming Board bid, and the Gaming Board was the one that 44 11/1/08 - RULES - BILLS 080741 & 080742 selected two of them. So that when this Administration came in, that was the situation that we were faced with, as you know. And after lots of back and forth, I think that was what made Foxwoods decide that even though they had been selected to locate on the waterfront, as Andy said, they agreed to look at another site, which is the Gallery site. But it's really up to them. They're in control of this right now. It's not something that the State Legislature wants the City to control. We don't have control over this, and in many ways, it's really being driven by the company itself.
Thank you, Madam President. Mr. Altman, in your answer to the Council President on the timing 45 11/1/08 - RULES - BILLS 080741 & 080742 issue, I just want to be clear. I understand that I guess I'm getting more specific to the time it would take for government to do what they have to do, forgetting how long it might take for the facility to actually be built. I know you both were very clear in the process, that this is the beginning of the process. Again, to repeat the Council President's question, in assuming that things go along positively as far as moving this thing, how long would that take before it gets to where they can actually put a shovel in the ground or whatever?
Let me take a crack at that. Having practiced architecture 34 years, I know a little bit about it. It is going to take them several months to do a plan of development. That may be on the short side of several months, it may be on the longer side. It's mostly a function of 46 11/1/08 - RULES - BILLS 080741 & 080742 what their development team can do and how fast they can produce the work. And then it has to go through the approval processes, both at City Planning Commission, at this Council and then ultimately to the Mayor. From there, they also have to produce a set of design and construction documents that tell a builder what to do. We can't speak to how early on in this process they're willing to invest in that. So that will probably add some time to their development process, which they can choose to shorten by taking the risk of starting to do those kind of documents. Once done, they're renovating existing space, so the time of construction is not going to be -- what could be anywhere from 18 to 24 months for a normal project, it's going to be something less than that. And really the ultimate compression of that schedule is more in their hands. 47 11/1/08 - RULES - BILLS 080741 & 080742
And if I'm right, there's at least two other times, formal times, where the public can be involved, both with the Planning Commission and with us, right?
And then obviously whatever other community meetings there are. So there will be a lot of other times?
There will be many other times. And at least just speaking for the Commission itself, our interest on major projects in general these days, and certainly on this one, is that as a plan of development evolves, we would like them to present it at a public meeting of the Commission for information only so that we can see the emerging scheme and have public comment and criticism at that time, and then see it again when they have it pretty much done. Obviously those are public 48 11/1/08 - RULES - BILLS 080741 & 080742 meetings. We also have an interest in organizing a public information session, separate from the Commission itself, to discuss a wide range of issues that might be associated with that, and that will probably be -- we're going to have to organize that relative to their schedule of development, but if they move quickly, that could be somewhere before the end of this year, and we'll obviously make announcements accordingly.
Thank you. Thank you very much. Thank you, Madam President.
Thank you. Are there any other questions from members of the Committee? (No response.)
Thank you very much, sir. MR. McPHERSON: Our next panel --
49 11/1/08 - RULES - BILLS 080741 & 080742 Excuse me, Mr. McPherson. I would like the record to reflect that we indeed have a quorum. To my extreme left is Councilman Kelly, Councilman Greenlee. To my extreme right is Councilwoman Miller, Councilman Goode, Councilman DiCicco and Councilman Kenney. Mr. McPherson, would you please call the next witnesses. MR. McPHERSON: The next panel consists of Jim Dougherty, President and COO of Foxwoods Philadelphia; Nick Moles, Vice-President and General Counsel of Foxwoods Philadelphia. (Witnesses approached witness table.)
Good morning. Welcome. Please identify yourself for the record and proceed with your testimony.
My name is Jim Dougherty. I'm the President and COO of Foxwoods Casino Philadelphia. With me this morning is Mr. Nicholas Moles. Nick 50 11/1/08 - RULES - BILLS 080741 & 080742 is our Vice-President and General Counsel.
Good morning, President Verna, Councilman DiCicco and other distinguished members of the Council. Thank you for this opportunity to speak to you today regarding the proposed zoning for the Gallery site and for being here on a Saturday. As you know, about two months ago, at the request of Mayor Nutter, Councilman DiCicco, Governor Rendell and Representative O'Brien, Foxwoods announced that we would evaluate the Gallery as a potential alternative site for our world-class project. At this location, our project can serve as a catalyst for the revitalization at East Market Street, encouraging the growth of additional retail and restaurants. In walking distance are nearly 20 major hotels. 51 11/1/08 - RULES - BILLS 080741 & 080742 This site will attract a significant out-of-town customer base and is a major transportation hub for the SEPTA Regional Rail and buses, the PATCO high-speed line and New Jersey Transit buses. Foxwoods and City and State officials have continued to have productive discussions regarding the potential for a Foxwoods casino to be developed at the western end of the Gallery between 10th and 11th Streets. This is a decision none of us takes lightly, and we recognize that the City's efforts in introducing this legislation allows these discussions to continue to determine whether this project works for the City and for Foxwoods. In fact, passage of this legislation will give us as the developers the confidence to invest millions more to continue to evaluate this location. While collaborative, good-faith discussions continue with the City, this legislation marks the beginning of a 52 11/1/08 - RULES - BILLS 080741 & 080742 process. Considerable work remains before Market East becomes a definitive site, including continued discussions with the surrounding communities. We look forward to continuing to work with you, the Nutter Administration, as well as Governor Rendell and Commonwealth officials. We recognize that everyone would like more information. After zoning is complete, we will enter into the plan of development process where our architects and other consultants will move from the evaluation phase to the design phase. If we do determine that a project that meets our high standards and serves as a catalyst for the revitalization of Market East can be achieved at the site, we expect to fully participate in the processes of the City and the Pennsylvania Gaming Control Board. We look forward to continuing to work collaboratively with the City and State officials, and we thank you for 53 11/1/08 - RULES - BILLS 080741 & 080742 your time today.
Thank you very much. Mr. Moles, are you going to testify?
Thank you. Are there any questions from members of the Committee? (No response.)
Thank you, gentlemen. Thank you very much. Our next panel? MR. McPHERSON: Consists of John Dionis, Alison Wolff and Tony Forte. (Audience member yelling.)
Good morning. Kindly identify yourself for the record.
Good morning, Councilmembers, staff, public officials and community members. My name is Alison Wolff and I'm an Associate Director of 54 11/1/08 - RULES - BILLS 080741 & 080742 the Pennsylvania Real Estate Investment Trust. We are more widely known as PREIT. I am joined by John Dionis, an Associate Director of Development at PREIT, and Anthony Forte, our real estate attorney from the law firm Saul Ewing. We would like to thank City Council for allowing us the opportunity to say a few words about the development project related to the proposed zoning ordinances being reviewed today by this Committee. Founded in 1960, PREIT is a publicly traded corporation and one of the first equity real estate investment trusts in the United States. Our primary investment focus is on retail shopping centers. Currently, our company's portfolio consists of 56 retail properties in 13 states, including 38 shopping malls, 14 power and strip centers, and four properties under development. Headquartered in Philadelphia, PREIT primarily invests 55 11/1/08 - RULES - BILLS 080741 & 080742 within the Midatlantic region, and our local interests include such familiar shopping destinations as the Shops at the Bellevue, Cherry Hill Mall, Willow Grove Mall, Plymouth Meeting Mall and Springfield Mall. Between 2003 and 2006, PREIT acquired interests in the lower six floors of the former Strawbridge and Clothier Building, the original Gallery I shopping mall and the Gallery II shopping mall, stretching from 8th to 11th Streets on Market Street East. We now operate 765,000 square feet of above-ground and below-ground retail space at this Market East location. PREIT's vision for the Gallery is to create the premiere shopping destination in Center City Philadelphia. While the Gallery already boasts strong retail sales, we believe the Gallery's full potential has not yet been realized, and we believe it would benefit from a new mixed-use development, improved 56 11/1/08 - RULES - BILLS 080741 & 080742 connections to the surrounding neighborhoods, and improved retail offerings serving tourists, commuters, conventioneers, local residents and the existing Gallery customers. A key characteristic of the Gallery is its superior location at the nucleus of one of the busiest transportation hubs in Philadelphia. The Market East Rail Station is located underneath the Gallery, serving SEPTA's Regional Rail and subway lines. The Gallery is also directly connected to SEPTA bus lines, New Jersey Transit bus lines and the PATCO rail line, with connections to New Jersey. The Gallery is perhaps the most centrally located and conveniently accessed shopping center in the entire Greater Philadelphia region. And, of course, the Gallery is also directly connected to the Pennsylvania Convention Center and within a short walk from the Center City's downtown business district, tourism and convention hotels 57 11/1/08 - RULES - BILLS 080741 & 080742 and attractions, and the downtown neighborhood districts. During PREIT's development of a strategic plan to upgrade the Gallery and better fulfill its great potential to be the premiere shopping center in Center City, we were contacted by the representatives of the Foxwoods gaming partnership to explore prospects for utilizing a portion of the Gallery to house a Pennsylvania licensed gaming facility. Although development plans are only in the pre-conceptual stages, a proposed Foxwoods gaming facility would occupy space within the Gallery II building, between 10th and 11th Streets, as a long-term tenant. PREIT is exploring the feasibility of renovating a portion of the space within this existing building for the proposed Foxwoods gaming facility and accessory uses.
I have included a cross-sectional view of the Market East stretch from 8th Street to 12th Street in 58 11/1/08 - RULES - BILLS 080741 & 080742 your package, and we thought that this view would be helpful to provide a visual context both for the scale and the placement of the proposed project. In closing, PREIT has determined that the Foxwoods proposal may offer a beneficial opportunity for the Gallery, the Market East district and the City of Philadelphia. We believe that it is a true catalyst to accelerate plans for upgrading the overall retail, entertainment and commercial district in this area by providing a vibrant destination that connects both ends of the Market Street East corridor. To pursue this opportunity, Foxwoods, PREIT and the City will need to work together in the months ahead on exploring the feasibility of the proposed project and undertaking a planning process, resulting in a plan of development for the site. To begin that process, we first need the assurance that the property will be rezoned to 59 11/1/08 - RULES - BILLS 080741 & 080742 accommodate the proposed project, and we, therefore, request that Council vote in favor of the two zoning ordinances being considered today. We look forward to participating in a dialogue and planning process with Foxwoods, the Planning Commission, the City Council, the Administration and members of the community in the coming weeks. Again, we thank you for allowing us to provide this testimony today and welcome any questions you may have.
Thank you very much for your testimony. Are either two of you gentlemen going to testify?
Thank you, Councilman. Could you just tell me, just so I understand, exactly how much of the 60 11/1/08 - RULES - BILLS 080741 & 080742 Gallery is being taken in measurements if the casino is put in there? And getting back to the Council President's question, you can also address who would be -- I don't know if you've looked into who would be displaced first and how that would be handled. If you could get into that a little bit, please.
Well, at this point, we're still in negotiations with Foxwoods, so we can't comment on the exact square footage, but we can confirm that it will be located within the Gallery II building, which is between 10th and 11th Street. We also can commit to maintaining the free flow on the Concourse level. We intend to keep that open as it is today. In regards to specific tenants, again, we're not sure exactly where they're going to be located within that building, but we will honor the existing terms of all of the leases that currently exist. 61 11/1/08 - RULES - BILLS 080741 & 080742
Have there been any discussion with any of those businesses yet at all?
Thank you very much for your testimony. Next panel, please. Paul Levy, William Walsh, John Connors and Michael Young. (Witnesses approached witness table.)
Good morning. Welcome. I would again like to remind you of the three-minute deadline. Thank you.
Thank you. Good morning. My name is Paul Levy. I'm President of the Center City District, and good morning, Councilwoman Verna, members of the Rules Committee. I've passed out a longer testimony. I'll be 62 11/1/08 - RULES - BILLS 080741 & 080742 much briefer in my comments here, as will the other owners and developers who have joined me. The Gallery site is positioned at the very center of the Center City District, and that location will have significant operational considerations for us, both in terms of levels of service and time of service, but as head of the Center City District, I strongly support the designation of this area for a Community Entertainment District -- a Commercial Entertainment District. I would like to make three points. One, I think we all need to keep certain things in perspective as we hear criticisms of this site today. One, it is obviously important that the City address the legitimate concerns of adjacent communities about traffic, security and social behavior, but let's remember that the Foxwoods casino will probably be no larger than 300,000 square feet in what is a one million square foot 63 11/1/08 - RULES - BILLS 080741 & 080742 shopping center. It is next door to a 720,000 square foot ARA Tower that draws 3,000 workers in each day without any particular problem. It is next door to a 440,000 square foot Convention Center that accommodates conventions up to 30,000 people at a time and gate shows that go up to 100,000. Down the block is the Independence Visitors Center, which drew 2.3 million people last year, without any detrimental impact. In fact, a very positive impact on the City. On South Broad Street, we have a 400,000 square foot Kimmel Center that draws people into town. Around the corner, a 1.2 million square foot Comcast Center and more than 40 million square feet of office space. My point is very simple. We have a transit system that brings 300,000 people into town each day. We have a highway system that brings 50,000 to 60,000 cars a day, and we can accommodate all of these. 64 11/1/08 - RULES - BILLS 080741 & 080742 Philadelphia is not a small town or a village about to be overwhelmed by cataclysmic change. We are the fifth largest American city, and we can handle this development like we handle many other developments. It's clear that the concerns that are raised need to be addressed, and it's important to remember that the Commonwealth has set aside four percent of gross gaming revenues specifically to address social problems, security problems and other problems around the area. Point number two, the design of the casino should promote outward activities, and we've heard that from both the City and from Foxwoods. We need street-level retail and restaurants. We need sidewalk cafes that animate Market Street. It needs to stimulate business in adjacent areas, including the hundreds of excellent restaurants that are within Chinatown. 65 11/1/08 - RULES - BILLS 080741 & 080742 Point number three, the City should use this casino to stimulate additional development on Market East. (Bell rang.)
Wow. Okay. We put huge investments into the Convention Center and hotels, huge investments into the Independence Hall area. The area between these two visitor destinations -- (Audience members yelling.)
The area between these two visitor destinations leaves a great deal to be desired. The Convention Center area, the historic area can be linked together with quality retail and destination entertainments if we use the casino. Thank you.
Good morning, Councilmembers. My name is John Connors. 66 11/1/08 - RULES - BILLS 080741 & 080742 I am President of Brickstone Realty Corporation, and for the past years, 4 our principal business has been the 5 redevelopment of East Market Street. We 6 are currently the owners of Mellon 7 Independence Center, formerly the Litt 8 Brothers Department Store building, but 9 we are also the developers of the John 10 Wanamaker building, the Marriott 11 Courtyard Hotel, formerly City Hall 12 Annex, and 1234 Market Street. So for 13 the past 20 years, we've spent virtually 14 all of our energy on East Market Street, 15 and it's been an extraordinary ride. 16 Market Street East has changed 17 dramatically, but the full promise of 18 East Market Street has not yet been 19 realized. And we have plateaued for many 20 reasons, but if you look at East Market 21 Street, most of the commercial 22 development, private sector development, was done with the benefit of historic tax credits, if you look at the PSFS building, Litt's, Wanamaker's, Reading 67 11/1/08 - RULES - BILLS 080741 & 080742 Headhouse, and those tax credits have been exhausted. Where we are now is that we've sort of hit a plateau for the last five or six years where nothing significant has happened on East Market Street by way of new development. And I echo Paul's sentiments that the casino as a catalyst for the remake of the Gallery is an extraordinary opportunity. The casino, for its own sake, is not an issue for me, but as a catalyst for the remake of the Gallery, I think it could take East Market Street to that next level, and we've been anxious and poised for it, and I think its time has come.
Thank you very much. Mr. Walsh, are you testifying?
Thank you. Good morning, Councilmembers. My name is Bill 22 Walsh. I am the General Manager of the Philadelphia downtown Marriott. In addition to this job, I also have certain oversight responsibilities for the other 68 11/1/08 - RULES - BILLS 080741 & 080742 Marriott hotels in Center City. Over the past years, Marriott International and 4 our various ownership groups have 5 invested over $300 million in the 6 development and operation of our hotel, 7 the Marriott Courtyard, the Residence Inn 8 by Marriott and the Ritz Carlton Hotel. 9 Collectively, we have over 2,500 rooms in 10 the marketplace, which comprises about 25 11 percent of the hotel inventory in Center 12 City. Additionally, the same percentage represents a number of staff members we employ relative to the total workforce in Philadelphia hotels. Each year we contribute slightly more than $5 million to the City through various taxes and fees. This figure does not include the wage taxes paid by our associates or the sales and occupancy taxes paid by our customers. I'd further like to say that I am a supporter of bringing gaming to the City for a variety of reasons. My 69 11/1/08 - RULES - BILLS 080741 & 080742 testimony today is not just to offer support for this proposed site, but it is rather to ask that a detailed comprehensive redevelopment plan is instituted by all stakeholders to ensure that if the site is finalized, it can be successful for everyone. The thought of operating a casino in the heart of our City without such a plan to me is a little bit like putting a cart before the horse. If such a plan is developed and implemented correctly, we can create another component to our city that adds excitement and vitality and provides us with a competitive advantage over other markets in the United States. I'm sure that most people recognize that there is no such thing as a perfect site, and any proposed site will have many obstacles to overcome before becoming a final product. The proposed location at Gallery Mall is no 25 exception. 70 11/1/08 - RULES - BILLS 080741 & 080742 As a major business operator/employer along the Market Street corridor, I feel that there are several broader social issues to consider in the development of this proposed site. In my job I have the opportunity to speak with many customers and many potential customers. I ask them for their business and I ask them to return to Philadelphia. The overwhelming issue I face is their concern expressed by meeting planners is that the area around the hotel and the Convention Center is unsafe. This mindset of our customers prohibits the ability to book more business and grow revenues. In turn, this creates a situation that decreases City tax potentials and provides less jobs for our citizens. If the Gallery Mall is the ultimate location for the casino, we cannot be blind to the fact that this is where the greatest concentration of homeless people exist in our city. While 71 11/1/08 - RULES - BILLS 080741 & 080742 it is imperative that these individuals are treated with respect and dignity, the fact remains that we will not change this unsafe perception until we can have local laws and ordinances put into place to properly deal with this issue while maintaining and protecting their rights. Additionally, the outdated entire look of Market Street East between City Hall and the historic district does not promote an image of welcomeness. (Bell rung.)
A redevelopment plan will modernize and improve the overall aesthetics to this area that is long overdue. It must be developed in conjunction with the casino so that this neighborhood can be more attractive to our citizens and visitors. My final thought relative to this proposal site is that the host fees generated from casino operators and that the revenue generated from the casinos must be used to help finance the 72 11/1/08 - RULES - BILLS 080741 & 080742 development needed to transform this area of the City and not be used in the City's general funds. As I stated earlier, I am a proponent of gaming in our city, and I believe this industry could be the catalyst for a vision that has Market East as a hub of activity that allows people to be entertained in a safe neighborhood environment. Thank you.
My name is Michael Young. I am a General Partner of Girard Square Partners that encompasses 12th to 11th Street, Market to Chestnut. As a new investor on the block, we would like to contribute to the major redevelopment of the area, but without the confidence that there is an overall improvement strategy on the street, it's going to be difficult, probably very 73 11/1/08 - RULES - BILLS 080741 & 080742 difficult. As owner/developers who have major investments on the street and in other areas of the City, we would love to seek passage of this bill as a tool to effectively use to achieve the broader objectives for the area. Our other investments are the Wachovia Bank building in Philadelphia, 230 South Broad, 42 South 15th Street, 125 South 9th Street, along with a large portfolio of multi-family dwellings throughout the northwest section of the City. Thank you.
Thank you. Any questions from members of the Committee of this panel? (No response.)
Gentlemen, thank you. Our next witnesses, our next panel will be? 74 11/1/08 - RULES - BILLS 080741 & 080742 MR. McPHERSON: Helen Gym, Asian Americans United; Deborah Wei, FACT Charter School; Ellen Somekawa, Executive Director -- (Witnesses approached witness table.) (Applause.) (Standing ovation.)
Please. That's enough. That is enough. Please sit.
You will have no more outbursts like that or we will conclude this. I'm serious. We're trying our best to proceed with this in a mannerly way on both sides and I wish you would all appreciate that. Please identify yourself for the record and proceed with your testimony.
Helen Gym, Asian Americans United and a representative of 75 11/1/08 - RULES - BILLS 080741 & 080742 Chinatown and the broader community in Philadelphia that opposes this casino. I would first like to acknowledge the people in this room 6 today, and I would like the over 200 people in this room today to stand up so that City Council and the members of this City can see who is here and who took time out of their Saturday to come here to say no to this proposal. (Audience members standing.)
I want you to know that there are over 200 people in the Caucus Room across the hallway and that there are more than 600 people who marched in our streets this morning at your request, and these representatives are the voices that if we can do one small measure to say a peace for them, we will have tried to do our part for you. So thank you. More than 600 people did march in the streets this morning at the request of City Hall, with less than a 76 11/1/08 - RULES - BILLS 080741 & 080742 handful -- less than a couple weeks' notice, to talk about what we're doing here today, to say that we do believe in a new day for City Hall, to say that we believe in a city that values the voices of neighbors and its residents and citizens at least as much as it values the voices of political insiders, private, wealthy investors and a gambling industry that has been kicked out of every single neighborhood that it's tried to set its feet into. We believe in a city that considers public interest over the self-interest of the two panels that preceded ours. So I want to know that if this is an open process, what does it mean when 600 people stand in the streets to say stop it? What does it mean when 400 people are in a Chinatown meeting that say stop right now what you are doing? Are you going to move forward? Is that the open process that you're promising us? 77 11/1/08 - RULES - BILLS 080741 & 080742 I know City Council doesn't want to talk about gambling. You make it easy. You say, Let's talk about zoning. But we do need to talk about gambling here today, and there will be other panels that talk about it. There are two reasons why. One, City Council is proposing to place a casino next to one of the biggest transit hubs that exposes it to the maximum number of Philadelphians in our city. That is every single one of your constituents in your district that we're talking about. It is not Councilman DiCicco's councilmanic prerogative to say that zoning matters for him. This is everybody in our city that we're talking about. The second issue is that we are in hard economic times and it is easy to look at those host fees and say, oh, 70 million in host fees over five years, that will erase some problems. But you saw the front page story in the Inquirer. 78 11/1/08 - RULES - BILLS 080741 & 080742 You saw the cost of gambling. You didn't even see the kind of costs that the Mayor of Ledyard is going around -- Ledyard, Connecticut where Foxwoods normally was, she's going around Maine talking about how phone calls in her city have tripled to police. (Bell rung.)
Criminal incidents have doubled. From our Mayor, from the panel that preceded us, we say that they have a lack of vision around marketing. Look at our neighborhoods. We have turned -- Chinatown has turned its neighborhood around, Washington West has turned its neighborhood around, Society Hill. We have not lost the vision for our city. Mayor Nutter says, I don't have anything on the back of a napkin to tell you what this thing will look like, and for that, we ask you to stand with us, for the citizens of Philadelphia, and say stop this process now. We have a better 79 11/1/08 - RULES - BILLS 080741 & 080742 vision. We need a better plan. There is no license for this site. You need to hear what people have to say.
My name is Ellen Somekawa. I am from Asian Americans United. Michael Thomas, the head of Foxwoods, recently boasted that gambling addicts are his client base. Like any successful business, Foxwoods seeks to expand its client base. It is in Foxwoods' interest to grow the pool of gambling addicts, bringing in an estimated 27 to 55 percent of casino revenues. Problem or pathological gamblers are not an incidental casualty of casinos. They're a core component of their business plan. So casinos apply free alcohol to impair judgment, give out comps to encourage frequent visits, design slot machines to make gamblers oblivious to the extent of their losses, stay open 24/7 to keep gamblers at the machines. 80 11/1/08 - RULES - BILLS 080741 & 080742 Casinos know how to build their client base. But we're not here to talk about the many techniques that casinos use to foster addiction. Location, location, location: That's what we're here to talk about. It seems like just good, sound business practice for Foxwoods to try to plop itself down right in the center of a major metropolitan area, at the hub of all of the City's transit line and next door to a neighborhood full of people who are already their best customers. Why not just situate yourself in the center of this huge potential customer base where people don't even have to think twice before entering to blow their paychecks or watch their Social Security checks disappear? And why not try to normalize this behavior so that gambling becomes as much a part of Philadelphians' daily life as happy hour or browsing at the mall. And better 81 11/1/08 - RULES - BILLS 080741 & 080742 still, why not groom the next generation of gamblers by setting up shop in one of the main teenage hangout spots in the City? This is all sound business practice for an industry that profits from and preys on addiction. What I don't understand and what I can't accept is why the leaders of this City, our elected and appointed officials, see more interested in supplying Foxwoods with their customer base than in serving the public interest that it is their sworn duty to uphold. I was stunned when I turned on the radio and heard the Mayor's Senior Advisor say that one of the benefits of the Gallery site is that it won't create traffic problems that were projected at the waterfront. No, traffic wouldn't be a problem, because at Market East, the casino would be right within walking distance of many customers and accessible by all of the mass transit lines. Since when is it our public officials' job to 82 11/1/08 - RULES - BILLS 080741 & 080742 help serve up Philadelphians to a predatory industry that thrives on the impoverishment and the addiction of its customers? This is a shameful targeting of the thousands of residents of Chinatown, of SEPTA commuters, of downtown workers, of Gallery shoppers, of the poor and working people of Philadelphia of all races. (Bell rung.)
Foxwoods in Connecticut estimates that 30 percent of its revenues come from Asian gamblers, this in the state where less than four percent of the population is Asian. In times when many casinos are struggling with declining revenues, the Asian market is a growth area. It is clear that we are a target of casinos and of Foxwoods in particular. Members of City Council, I ask you, when you see us, when you see the Philadelphians who ride SEPTA every day, those of us who go to work or who 83 11/1/08 - RULES - BILLS 080741 & 080742 live in Center City or those of us who can't afford to shop in Rittenhouse Square but who instead find what we need at the Gallery, when you see the people of Chinatown, when you see us, do you see us as your constituents or do you see us as your targets? The legislation that you're considering to create a CED zone at Market East is asking you to permit a new noxious and corrosive use right in the heart of our city and bordering on one of our cherished neighborhoods. People from every part of the City use the transit hub. People from every part of the City work in Center City. People from every part of the City view the treasures of our historic district as their own. It may be in Foxwoods' interest to create this CED in the heart of our city, but it is not in the best interest of this City or its people. If you see us as your constituents and not as Foxwoods' 84 11/1/08 - RULES - BILLS 080741 & 080742 targets, please vote no on this CED legislation.
Thank you very much. Our next witness? (Applause.)
My name is Deborah Wei. I am the Principal of the Folk Arts and Cultural Treasures Charter School in Chinatown. In the past several decades, I've been involved time after time with struggles to protect the integrity of a community which has existed for nearly 150 years but which never seems to be recognized as a community by this City government. Decisions have been made time and time again to introduce into this small struggling community government-supported projects, which have increasingly contributed to the 85 11/1/08 - RULES - BILLS 080741 & 080742 deterioration of the quality of life in Chinatown. This zoning legislation represents the latest but most odious and pernicious of proposals to impact Chinatown. And my latest role as a Principal in a school with children and families with whom we work and to whom we are accountable has made me feel the weight of this project more than any of that before it. My students learn about American democracy. They walk to the symbols. Not just local; in fact, not just national, but international symbols to the world of the birth of the promise of the best of what democracy can be. They walk to the Liberty Bell, Independence Hall, the Constitution Center, Ben Franklin's home. They see what the rest of the world sees, a history and a promise. They gaze out of their classroom windows at this place, City 86 11/1/08 - RULES - BILLS 080741 & 080742 Hall, a place in which they are told sit representatives whose responsibility it is to serve the citizens of this City, all the citizens, including them, including these children in a school in Chinatown. And now they sit here in this room trying as best they can to understand how these symbols of democracy situated on opposite ends of a stretch of land in the heart of the City can be hijacked by not the best but the worst of what democracy can bring, a patent non-process, a lack of vision, a disregard of their lives, their hopes, their dreams. The best of what the City can lay down to knit together these symbols of democracy are a bunch of slot parlors. They try and understand, and we try to help them understand, but how can we explain the inexplicable? How can I tell them that our city has decided to slap something down here in this critical 87 11/1/08 - RULES - BILLS 080741 & 080742 stretch of land, not because it has been carefully studied, thought about, envisioned, not because all issues have been weighed, all environmental impacts measured, not because there is a vision grand enough to fill in the bookends of these symbols of democracy, but because, quote, We're going to have to have two casinos and we need to put them somewhere. (Bell rung.)
Because, quote, Someone has to take them. Because, quote, We got to put something here. My students are young, but they are wise beyond their years. They've heard the arguments about City revenue, about livening up the streets, about reinvigorating the City, but they have also seen things children should not have to see, families torn apart by gambling addiction, low-income people throwing their money away because of a pathological addiction fueled by an 88 11/1/08 - RULES - BILLS 080741 & 080742 industry that doesn't give a damn about who gets hurt, a community that has a government-funded highway passing through it but no green space to play, a community that has a Convention Center with hundreds of millions of government money invested in to bring tourists downtown, but no community center for the residents who live there. They've seen their fair share of adults who failed them time and time again. The irresponsible passage of this zoning legislation, almost unprecedented in being of such scope and so quickly introduced into Council, sends a clear but sorry message to these young students, the worst of a political process where the money boys can play games with the lives of hard-working residents, where politicians in Harrisburg push their personal agendas without regard to those who they elected -- who they are elected to represent, where acts of political 89 11/1/08 - RULES - BILLS 080741 & 080742 expediency take precedence over acts of political courage. These cannot go unchallenged. Not by those of us who love and care and believe in the promise of these young lives. How much investment will pay for the continued destruction of a community whose historical existence should be celebrated, not constantly assaulted? How much money can buy back the cynicism about the politics of this City that leave such bitter tastes in the mouths of ones so young? How much revenue will buy back the lost childhood of a child of a gambling addict? And to all the adults in this room, I ask, who will speak for the children? (Applause.)
Thank you. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair, and good morning, ladies. 90 11/1/08 - RULES - BILLS 080741 & 080742 Do either of you have any suggestions as to where the casino or a casino should be located in the City of Philadelphia, understanding that the Act does not permit us to be within ten miles of any racino, which is the Harrah's casino in Chester County and Philadelphia Park in Bucks County? (Audience members yelling.)
Excuse me. I think the question is being asked of the panel.
We think that it's not our job to suggest a site for the casino. COUNCILMAN DiCICCO: I'm sorry. Say that again.
I think that it's not our job to find a site for the casino. And I understand the bind that the City finds itself in. However, I think the principles that Mayor Nutter 91 11/1/08 - RULES - BILLS 080741 & 080742 signed when he was a candidate running for Mayor that a casino should not be located within 1,500 feet of a residential neighborhood, of homes, schools and churches is a good principle to follow. The principle that there needs to be an open, transparent and public process with public input is a good principle to follow. I think using those principles, we would welcome the City trying its best to move forward to find an appropriate location. COUNCILMAN DiCICCO: And I understand and I respect that, but I noticed the absence of you and your organization during the three and a half years of debate for the Foxwoods site at the Columbus and Reed and the SugarHouse site in Northern Liberties, and I was wondering if those sites would be more acceptable since you did not take a position to oppose them for the past three and a half years. And as far as you're concerned, 92 11/1/08 - RULES - BILLS 080741 & 080742 your question or comment about the 1,500 foot, we tried to get a referendum. The Supreme Court shot that down. So in theory or principle, we may agree with that, but there's no law that would allow for us to take that and use that as a measuring gauge unless we do find something that's not within 1,500 feet of a residential community. And to date, other than one site, which is not even in my district, I don't know of any others that would be permissible under the Act. But, again, I asked you that because I understand the Gallery and its close proximity to the Chinatown community. I'm very well aware of that. But the SugarHouse site was about 12 to 15 blocks away, and no disrespect, you all were silent when that discussion was going on for the better part of three and a half years.
93 11/1/08 - RULES - BILLS 080741 & 080742 Excuse me. You're going to have to identify yourself, please, for the stenographer.
No problem. Helen Gym, Asian Americans United. Thank you, Council President. What we would like to see City Council see its investment spent time in is if City political leaders can't come up with direct ideas about where these things could go, that if there could be a resite committee that takes a look, that brings in different people from around the City, foundations, different neighborhoods, residents, other things, that we take the resiting of these casinos seriously, that we can look at the restrictions that we have, that we -- sometimes it helps to bring it out of the political process where people tend to get like in a tunnel vision around what you can and can't do and ask for a broad group of people, who I think are very interested in it, to take a look and see 94 11/1/08 - RULES - BILLS 080741 & 080742 whether we can resite these casinos responsibly. COUNCILMAN DiCICCO: But we don't have that luxury, and I've been dealing with this issue since December of 2005 and I have yet to have any of my colleagues, no disrespect to the District Councilpeople in particular, not one has come to me and said, I have a place in my district that the neighbors would be willing to accept a casino. So we've all been dealt pretty much the same hand. Again I ask the question, why are you so adverse to the Gallery site, where you were very silent -- I didn't see you at any of the meetings, I hadn't seen any material come from your organization opposing the SugarHouse site, which is somewhere between 12 and 15 blocks away from the Gallery? Are you suggesting that people would not be --
Councilman DiCicco -- 95 11/1/08 - RULES - BILLS 080741 & 080742 (Audience member yelling.) COUNCILMAN DiCICCO: Jethro, you'll have your turn.
I'm Ellen Somekawa from AAU. Councilman DiCicco, I think you raise a valid criticism, and in fact, Asian Americans United's silence on the previous sitings of the casinos is not something that we were particularly proud of. It's something that we, in hindsight, wish that we had been very involved with. In the period from 2004 to 2007, AAU apologized to our various allies and constituents and told them that we needed to focus on the construction of our charter school. We laid down most of the programs at our organization. We went down to a staff size of one person during that period, and I'll tell you, there were many, many issues that we were not involved in that we wish we had been better allies to our friends at the waterfront site. 96 11/1/08 - RULES - BILLS 080741 & 080742 COUNCILMAN DiCICCO: And I appreciate your honesty. As it relates to the charter school, you know there were a number of people who were opposed to your charter school being built in Chinatown, the Chinatown community in particular, a number of people opposed that. I supported that. I've supported that concept, and I also supported it in terms of financial issues. And just one more point I want to make. I keep hearing over and over again that Chinatown somehow does not get the service that they need, that we don't do things in Chinatown. I think I've invested almost $6 million to date in Chinatown. Two, three months ago there was another million-dollar grant that has been awarded to PCDC, all going towards a development of a Chinatown community center. So I kind of want the record to understand that there are a number of things that have been done in Chinatown 97 11/1/08 - RULES - BILLS 080741 & 080742 over the years, at least during my tenure, and there are plans to do more things going forward. So to suggest that somehow Chinatown gets overlooked I think is doing a disservice, not only to me but to the rest of this body, who has to prove some of the things that I've come to them with.
I think my reference in my testimony was about scale and about cumulative effect. And while we appreciate the support that comes to the community, I mean, we are looking at projects that received hundreds of millions of dollars and we are now looking at a project that you can't mitigate yourself out of in terms of the damage that it will do to our community. COUNCILMAN DiCICCO: But that's what we're attempting to do by way of a process. Many people keep saying there is no process. We are here today. This is democracy. Legislation gets introduced. People have an opportunity 98 11/1/08 - RULES - BILLS 080741 & 080742 to be heard, agree or disagree. Ultimately elected officials, their responsibility is to make a decision. This is democracy. To suggest that it is not, we're not doing the appropriate thing by having public hearings, I think it contradicts your statement about this is not part of a democratic process. Now, I'm not going to debate the constitution of what you're allowed to do or not, but you don't get this in many places. We didn't have this in Harrisburg when they were debating the issue on the Gaming Act. None of us did, including us as elected officials. So we have to deal with this issue as best we can. We're going to go through a process. It's going to take several months before we get to the end of whether the project of development plan is approved or disapproved by the Planning Commission. Ultimately it will come over to this body, and the 17 of us will have to make a decision whether to 99 11/1/08 - RULES - BILLS 080741 & 080742 support that plan of development or not support it. That is democracy. Thank you.
Councilman DiCicco, can I respond? Because I want to say that we appreciate your support on the charter school and we're happy that we don't have a relationship where we are adversarial in every single issue, but you have to understand that on this issue, we have never felt more strongly about anything in the years of our 14 history. 15 The second thing is that when 16 you speak of democracy, I think public 17 hearings are democratic, but rushing to 18 introduce zoning legislation that targets 19 one City block, a block away from 20 Chinatown and in the center of the City, is a rushed process. It's doing zoning before planning. It's doing zoning before studies, and, frankly, that doesn't seem very democratic. It seems rushed. It seems like PREIT wants it 100 11/1/08 - RULES - BILLS 080741 & 080742 because they have high vacancy. It seems like Foxwoods wants it because they have then only to do a redecoration job of the Gallery instead of doing a greens field development. It seems like there's lots of interests that are interested in this going forward quickly, and what I am not understanding is what's the rush. Why do you need to rush into this? It's been said by Mr. Altman and others that really the CED zoning doesn't mean that much. It just opens up a process. It just opens up -- it just makes it possible for the exploration and studies to happen. But my question to you is, if that's the case, if it's just to enable exploration and study, why don't you make the entire City of Philadelphia into a CED zone? If it's really just nothing. (Applause.)
If it's really nothing. COUNCILMAN DiCICCO: Not a bad 101 11/1/08 - RULES - BILLS 080741 & 080742 thought.
Thank you. COUNCILMAN DiCICCO: So the people in Port Richmond, the people in Southwest Philly, you never know, next week we may have legislation that will make their neighborhoods CED as well. And I'm not saying that sarcastically. That's up to individual members of City Council or an individual member of City Council to make that decision. If that's what they want to do, so be it. But understand, for a long time while I was attending those waterfront meetings about the SugarHouse and the Foxwoods site, I kept telling people that I should be in the room having these discussions with the potential operators, because if I don't do it, someone else will do it for us, and lo and behold, the Supreme Court of Pennsylvania has issued CED legislation for those two sites. We had nothing to do with it up here. We are out of that conversation. And I'm 102 11/1/08 - RULES - BILLS 080741 & 080742 not going to put myself or the people I represent in that same position again. I made a mistake. Some people said, You didn't make a mistake, frankly, because you were listening to your constituents, but I've learned through that process that it is better to be engaged in a discussion than let somebody from Harrisburg make the decisions for us.
Well, it's funny, Councilman DiCicco, because you call it a big mistake and actually it's something that I wished I had congratulated you on, because I thought that your opposition to the casino sitings at the waterfront was one of your finer moments. If you think it's such a mistake, then ask yourself why is it two years after they've been granted licenses at the waterfront and we still don't have casinos in Philadelphia? That's not a mistake. That's a good thing. That's a positive thing. 103 11/1/08 - RULES - BILLS 080741 & 080742 COUNCILMAN DiCICCO: Well, I'm not going to -- (Applause.) COUNCILMAN DiCICCO: That is not entirely true. There are only a couple of things that are left to do down there. For instance, in my opinion, if Foxwoods were to abandon the notion of even looking at the Gallery, my guess has been in a very short time they'll be under construction at Columbus and Reed, because they've gotten everything that they need from the Supreme Court. A Master was appointed by the Supreme Court about two or three weeks ago to oversee the licensing and permit issuance on behalf of the City, and if we in any way, the City of Philadelphia, in any way, shape or form looks as though they are delaying this or using it as a tactic to delay the construction or the issuance of permits and licenses on Delaware Avenue, the Supreme Court, the Master will make the decision for us. Simple as that. 104 11/1/08 - RULES - BILLS 080741 & 080742 (Audience member yelling.)
I mean, just to be clear, when I made the comment about making the entire City into a CED, I was really not trying to imply that we would be happy to foist this casino on any neighborhood, that if we succeed in getting this Foxwoods to not move into the Gallery, we would then move over and stand in support with our friends at the waterfront sites and oppose the casinos at those sites. COUNCILMAN DiCICCO: Thank you.
Thank you very much. Are there any -- (Applause.) MR. McPHERSON: Our next witnesses consist of representatives from Casino-Free Philadelphia, and they are --
Mr. McPherson, I don't think we heard you, and I would like the record to reflect that Councilwoman Brown has 105 11/1/08 - RULES - BILLS 080741 & 080742 joined us. Who are the next panel? MR. McPHERSON: The next panel consists of representatives from Casino-Free Philadelphia, and they are Jethro Heiko, Lily Cavanaugh, Paul Boni, Debbie King, JJ Tiziou and Kathy Dilanardo. (Witnesses approached witness table.)
I don't want to cut anybody off, but I am asking that everyone abide by the three-minute rule. And I would also like to make a statement. If someone has prepared testimony, cannot stay for the entire hearing, we will certainly be happy to accept your testimony and give it to the stenographer, and it will be transcribed in full in the record. Thank you. So our first witness is?
My name is Jethro 106 11/1/08 - RULES - BILLS 080741 & 080742 Heiko. Before I begin, I'd like to just say that we're happy to answer any questions that you have upon completion of our testimony. Again, my name is Jethro Heiko and I'm one of the founders of Casino-Free Philadelphia.
It's less than nine minutes. I'll try to keep it to that. My name is Jethro Heiko and I am one of the founders of Casino-Free Philadelphia, a grassroots organization whose mission is to prevent casinos from coming to Philadelphia and to shut down any that open. For purposes of our testimony today, we will assume that slots gambling 107 11/1/08 - RULES - BILLS 080741 & 080742 is coming to Philly, though in reality, we don't think they will. That's right, we believe it's inevitable that slots casinos will not open in Philadelphia. (Applause.)
An increasing number of people recognize that this is a predatory and harmful industry not worth the claimed benefits. Who are these people? They are the people of Philadelphia, and it is we who have the power to shape the future of our city. The CED should not be located on Market Street. It should be located as far as way from neighborhoods as possible. Our testimony today will focus on the fact that the CED is being rushed without the City gathering any evidence on what a slots parlor is and how it should be zoned and controlled. The CED bills should be halted and the City should hold hearings on what a suitable CED should contain. We ask, what's the true nature 108 11/1/08 - RULES - BILLS 080741 & 080742 of slots and what should a CED look like? Well, this is not entertainment. This is predatory gambling. That is the nature of a slots parlor, predatory gambling. What's the difference between social gambling and predatory gambling? Social gambling is a Friday night poker game at your buddy's house. Social gambling is an office pool where you bet on which team is going to win the Super Bowl. That is social gambling, because every $5 you lose, your buddy wins. It can only happen so often and it can only happen so fast. There is no predatory aspect to it. We are not against social gambling. Predatory gambling is the practice of using gambling to prey on human weakness for profit, and, unfortunately, Pennsylvania has decided that it should be the preferred method of raising revenue. The gambling industry and our government, including you, are 109 11/1/08 - RULES - BILLS 080741 & 080742 now becoming active partners in turning hundreds of thousands of people in the Philadelphia region away from being small savers and into becoming habitual bettors, trapping way too many in a cycle of debt and poverty. Predatory gambling also fundamentally threatens the most important founding principles of our American democracy, sharply undermining the principles of equal citizenship, self-government and accountability. (Bell rung.)
What makes it predatory? The design and function of the machine, the amount of the bets and the speed of the play, and the marketing. We will mention each of these and then explain how the CED is inadequate to protect the people of Philadelphia. I will now turn to the next witness from Casino-Free Philadelphia, my colleague, Lily Cavanaugh. 110 11/1/08 - RULES - BILLS 080741 & 080742
First, we mention the design and function of the slot machine, which as a prominent MIT Professor stated is the high-tech equivalent of loaded dice. And using loaded dice is cheating. Do you know how the machines are designed and do you know whether the machines will be fair to Philadelphia gamblers? You probably take it on faith that the machines are fair because Harrisburg says so. However, you have never trusted Harrisburg on anything about slots. Why would you trust them that the machines are fair? Will the machines cheat the people of Philadelphia? Can anyone in our City government explain what virtual reel mapping is? The process of virtual reel mapping means that the distribution of symbols and blanks on the actual reels do not reflect the true probability of the symbols appearing on the pay line. For 111 11/1/08 - RULES - BILLS 080741 & 080742 example, let's say a particular reel has stops, which includes 11 symbols and 4 11 blanks. You would think the odds of 5 the reel stopping on any particular stop 6 is one in 22. Clearly, that's what the 7 gambler is led to believe. But with 8 virtual reel mapping, the odds are much 9 different than what the player perceives 10 from the reel. Is that fair? 11 As another example, do you have 12 any idea what the odds of getting a 13 cherry or any particular winning 14 combination? Do you have any idea what 15 the odds are? Do you even know how to 16 find out what the odds are? Tonight when 17 you get home, search the Internet and try 18 to figure out if you can find out what 19 the odds of winning on a slot machine 20 are. 21 Why aren't the odds posted at 22 the slots parlor? Even for the PA Lottery, which is also predatory gambling, you can go to their website and look up the odds. Why not with a slots 112 11/1/08 - RULES - BILLS 080741 & 080742 machine? Why shouldn't the gambler know the odds? Before voting on the CED bills, City Council should hold hearings on the machines and allow public testimony. If we want a transparent process, then let's have a transparent process about the product so that we can ensure our citizens are being fairly treated. If you think you are merely giving people the freedom to gamble, then why not give them the freedom to understand the odds? The CED should require that the odds are posted at the end of each aisle. The City Code requires that retail stores clearly mark the price of items for sale and that stores clearly exhibit a sign with a return policy. Disclosure is in the public interest, so let's investigate and disclose to the consumer. Let's see if Foxwoods really wants transparency. I now turn my testimony over to Casino-Free's attorney, Paul Boni.
Another predatory 113 11/1/08 - RULES - BILLS 080741 & 080742 aspect of the slots trade is getting the gambler to, quote/unquote, play to extinction. That's their term. What does it mean? It means getting the gambler to stay in front of the machine for as long as it takes to lose all their money. There are a number of ways the trade tries to do this: The design of the machine, the design of the Chair, the hypnotic music, the hum. One way to get the gambler to, quote/unquote, play to extinction is to have the casino be open hours a day, 15 because if it closed, then you would have 16 to stop playing at least for the night. 17 And they don't want to do anything that 18 might cause you to stop playing. Is it 19 too much to ask to have the slots parlor 20 close down at least at some point? Do we 21 need to allow and indeed encourage our 22 senior citizens to sit in front of a slot 23 machine at 3:00 or 4:00 a.m.? 24 The CED should be amended to require the slots parlor to close at a 114 11/1/08 - RULES - BILLS 080741 & 080742 reasonable hour. The Gaming Act seems to allow the City to do this. Let's hold hearings and build a record. And if Foxwoods wants to sue, then let's force them to expose the true nature of their trade. This is not entertainment. In Connecticut, Foxwoods makes loans to its gamblers, and when they lose the money and can't pay it back, Foxwoods puts a lien on your home. That's right, Foxwoods puts a lien on your home. Show me a movie theatre that does that. This trade is predatory, and our City government needs to study it and make sure we protect the people of Philadelphia. It's irresponsible to facilitate -- it is irresponsible to facilitate this trade, even if you think you are legally required, without also trying to understand it, expose any unfair and predatory practices and do your best to eliminate them. To vote the CED out of 115 11/1/08 - RULES - BILLS 080741 & 080742 Committee is worse than facilitation. It is expediting. None of the reasons for pushing the CED now as explained by the City folks have any basis in law or fact. They all have a basis in a political deal, a political deal that is not open and not transparent. Foxwoods want you to give them by-right zoning for a location that sits atop 100,000 commuters each day -- (Bell rung.)
-- for a location that would allow hundreds of thousands of residents to walk to, for a location that would allow tens of thousands of workers, including City workers, people who work for you, to visit on their coffee break and their lunch hour. Councilmanic privilege should not apply here, not if you have a regional rail running through your district, not if you have a SEPTA bus in your district that goes to Market East. Your constituents are being targeted by 116 11/1/08 - RULES - BILLS 080741 & 080742 Foxwoods at this location. And, yes, things are different now. You can't blame this location on the Governor, the State Legislature or even the courts. This one is your location. This slots parlor, if you allow it, will have your name on it. Please do not vote these bills out of Committee.
Are there any questions or comments? The Chair recognizes Councilman DiCicco.
And we're available for questions about the predatory nature of this industry.
I'm sorry. What was your comment? I didn't hear you.
We're available for questions. 117 11/1/08 - RULES - BILLS 080741 & 080742
The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you. Mr. Boni, in your testimony on , "Foxwoods wants you to give them by-right zoning for this location," would you explain that?
Sure. The Supreme Court did order zoning for the two waterfront locations, and they can only do so because this City Council had enacted the CED ordinance for the waterfront. COUNCILMAN DiCICCO: But --
I'm explaining it, sir, please. So this CED legislation gives Foxwoods everything it needs to know to design its facility to be compliant with the Zoning Code. I understand that we think we still need to go through a plan of development process, that we believe and you believe that if we don't clear that 118 11/1/08 - RULES - BILLS 080741 & 080742 hurdle, then this casino won't be built, but there were a lot of things that we thought needed to be happen at SugarHouse that we felt confident that the City could stop or delay, and the Supreme Court disagreed with us. And so I would suggest that to change the Zoning Map to enact this CED may play right into the casino's hands and give the Supreme Court everything it needs to give zoning. Now, we know the Supreme Court makes incorrect decisions. We don't want there to be a fifteenth incorrect decision. COUNCILMAN DiCICCO: I don't want them to make a fifteenth decision regardless if it's correct or incorrect. You said that we did CED legislation for the two waterfront sites? We did CED legislation long before those sites were selected. We set into place legislation that whoever the licensees would be would have to adhere to. It wasn't specific to those two sites. You 119 11/1/08 - RULES - BILLS 080741 & 080742 know that.
I agree with you. You didn't put it on the map -- COUNCILMAN DiCICCO: But you just said in response to my question that the City, we did two CED pieces of legislation, CED legislation, for the two waterfront sites. We didn't do that.
You did everything but put it on the map, which the Supreme Court did for you. COUNCILMAN DiCICCO: Thank you. And what's to suggest that the Supreme Court won't do it at the Gallery if we put up the obstacles similar to what we did on Delaware Avenue?
Well, if you give them everything but putting it on the map or even starting by putting it on the books, then they're going to take it and stick it to us. COUNCILMAN DiCICCO: Paul, you were in those fights. You understand what we did, and in the end, the Supreme 120 11/1/08 - RULES - BILLS 080741 & 080742 Court made the decision for us. I am not going to let that happen in this case, if they decide to build at the Gallery.
Councilman, I've heard a lot of reasons about why there are still many things to happen and I've heard lots of reasons about why we shouldn't fear that this is a critical step, but I haven't heard any reason that would affirmatively justify why we should do this today. The only thing that's implied is that we need to show good faith to Foxwoods to coax them to put together designs and plans and studies. COUNCILMAN DiCICCO: So theoretically as the sponsor of the bill, if I pulled this bill today, some people would be happy. Foxwoods says there's not a good-faith effort to even explore the potential or the possibility of us putting our casino at 11th and Market, we're going to go to Delaware and Reed. And you and I and all those people who are going to lay down in front of 121 11/1/08 - RULES - BILLS 080741 & 080742 bulldozers aren't going to be able to stop that from happening, and you know that.
Well, it's good that you'll be there with us, but -- COUNCILMAN DiCICCO: I didn't say I would be there. No. I didn't say I would be there. I said you and all the other people who have said over the years that you'll lay down in front of bulldozers won't make a difference, because maybe you'll get maybe a day in delay. After that --
We'll keep going back. COUNCILMAN DiCICCO: Yeah, you'll keep going back.
Well, we look forward to showing City Council and the City Administration -- COUNCILMAN DiCICCO: Well, maybe I ought to pull the bill and let happen whatever is going to happen on the waterfront and end of story, so Chinatown 122 11/1/08 - RULES - BILLS 080741 & 080742 will be happy and everybody else will be upset.
We look forward to showing City Council and the City Administration just how much power the people have. COUNCILMAN DiCICCO: The people have as much power as -- you know, you talk about councilmanic prerogative, with all due respect, to all the battles we fought. But not for councilmanic prerogative, we wouldn't be having this conversation today. Those casinos would have been under construction at least a year ago. Thank you.
Thank you. Any other questions or comments? The Chair recognizes Councilman Goode.
Thank you, Madam President. 123 11/1/08 - RULES - BILLS 080741 & 080742 Mr. Boni, you say in your testimony, "None of the reasons for pushing the CED now, as expressed by Mr. Altman and Mr. Greenberger, have any basis in law or fact." What reasons were you referring to?
Well, as expressed at the City Council -- at the City Planning Commission hearing and as has been expressed by Councilman DiCicco and others in the City Administration, is that somehow this special Master, somehow this threat of this Supreme Court could intervene and order Foxwoods at the Gallery if we don't get in here and have a part of the process, and I find that to be demagoguery. I find that to be lacking in any basis in the law or the 124 11/1/08 - RULES - BILLS 080741 & 080742 fact. Foxwoods does not have a gaming license for Market Street. The Supreme Court, no court can order zoning at Market Street without a gaming license. The gaming license is going to take months for them to get to transport. I feel that this is really even worse than setting up the -- well, than expediting this local process. What we're doing here is, we're giving the Gaming Control Board perfect justification to transport the license to this location. They're going to say, The City of Philadelphia loves this site. Of course that's good cause. Let's move it here. But I would say that there is, of course, another way, as has been testified by people before me, and, that is, you can have all the process you want, just don't pass this law. There's no community group in any district -- in any of your districts, 125 11/1/08 - RULES - BILLS 080741 & 080742 in any part of this city, even if it was just a condo tower, that would not hit the roof if you said, Let's change the Zoning Map today and then look at the project tomorrow. It doesn't happen. It just doesn't happen.
That is the problem, Councilman Goode. I appreciate the question, and I appreciate Mr. Altman's candor when he says that Foxwoods chose this site. And I would ask Mr. Altman, is he or is he not a city planner? Isn't the city planner's job to decide what goes where?
And is it true that only Foxwoods could choose the 126 11/1/08 - RULES - BILLS 080741 & 080742 site?
Because they've already been given authorization for another site. Is it true that only Foxwoods could choose an alternative site or a resiting because they were already given authorization at another site?
They can choose -- well, I don't know who else was in on the decision, but certainly Foxwoods decided to --
But my question is, only Foxwoods could choose to resite because they've already been given the authority at a site that was already chosen?
Well, I don't believe that. No, I don't believe that. I believe that the City can have an open resiting process that looks at the entire city and tries to find out what's the best location for a casino or the least worst, as we like to say, and it can 127 11/1/08 - RULES - BILLS 080741 & 080742 grant CED zoning at that location. And it can stiff-arm Foxwoods at the waterfront, as we've been doing and, frankly, for which they probably have no 6 financing, and they could do everything to encourage them to move to the new site that the --
Do you stand by your original answer to the question about who chose the site?
Thank you. Any questions or comments from members of the Committee? (No response.)
Seeing none, thank you, gentlemen. Our next panel will be? MR. McPHERSON: There's still some representatives of this panel. Debbie King, JJ Tiziou and a Kathy 128 11/1/08 - RULES - BILLS 080741 & 080742 Dilanardo.
I think Debbie may have assumed that she's at the end of the list. She may come back later.
I'll try to be brief. I thank you for your time. My name is JJ Tiziou. I am here as a member of Casino-Free Philadelphia, but also a representative of many performing and visual artists in the City. I'm a photographer and was recently a finalist for a public art commission in this town of $125,000 or so, which we didn't get, but I learned something really interesting in the process. There was an engineer there who spoke about the need to hold community meetings to let the community be able to say that they've had a voice in the input. It was a subtle distinction, but the way that he phrased it was really striking to me. He said -- and I think the reason that people here are frustrated a little bit is, there's an impression that may or may not be 129 11/1/08 - RULES - BILLS 080741 & 080742 true, this impression that things are being held just so that people can say that they've had a voice and you can say that you've given us an opportunity to have a voice, but there seems to be something that we're not actually going to listen to it because there's already this idea because the Supreme Court is going to come and say we are going to have these two casinos in the City. So that's just a question for yourself. When you see all these people up here, are we here to actually listen to them or just to hear them make their clamor? And I hope that you'll actually listen to all of them. There's been a lot of talk about the immediate costs of the casinos, but one I think was a longer scale thing of the opportunity costs for the City and also the ability of the City after the casinos -- I'm sure they'll bring us some jobs, but something that hasn't been done in a cost-benefit analysis is where does 130 11/1/08 - RULES - BILLS 080741 & 080742 this go afterwards. And in terms of as an artist in this town, we see that this City has what New York had maybe 20, 30 years ago. It's got a thriving community with amazing entertainment to offer that could be cultivated, arts and culture in this city, far more to offer than the cheap thrills of a casino. And instead what's going on here, I think that having this process go the way it is and having these casinos come into the City will deter then when you want to bring other companies in. I have so many artist friends who are moving here from Brooklyn now, because Philly is the next best thing, it's the next great thing, people who a decade ago I tried to convince to move to Philly, they didn't care about Philly. Philly, that's cool. I'm running out of town. And now all the sudden Philly is on their radar, it's a great thing. But they want to move to Philadelphia, 131 11/1/08 - RULES - BILLS 080741 & 080742 not to Atlantic City, not to Vegas. That's all I have to say, and thank you very much for your time.
Thank you very much. Any questions or comments of this witness? (No response.)
There's one more witness that was going to speak with Casino-Free Philadelphia. Instead, we'd like to invite the charter school to come up and have their words from our witness. MR. McPHERSON: Our next witnesses are Liting Zou, Michelle Truong, Johnson Kan. (Witnesses approached witness table.) (Applause.)
132 11/1/08 - RULES - BILLS 080741 & 080742 Welcome. Please identify yourself for the record. Who is going to testify first? Identify yourself and proceed with your testimony. MISS ZOU: Hi. My name is Liting Zou and I'm years old. I'm 8 here to tell you about our opinion about 9 the casino. I want to tell you my 10 opinion because I know many, many people 11 affected by gambling. Their families 12 have been through a lot. There's 13 depression and other things, and the innocent children are the people who got hurt the most. Some families I know have even been hungry because of gambling. They don't have enough food for the children. I've seen this myself. Adults who gamble also influence their kids. Young people who makes fake IDs also can go into gambling. They see what adults are doing and they get hooked, too. Some casinos even have game rooms for kids that are like 133 11/1/08 - RULES - BILLS 080741 & 080742 gambling games just to try and to get more people addicted. The casino will be able to serve alcohol 24/7. Alcohol is good for a casino because it makes people not be able to make good decisions. It makes them gamble even more. But it also makes people do things that they wouldn't normally do. People who are drunk and who lose money can commit crimes. This can make Chinatown more dangerous. I don't live in Chinatown, but I go to Chinatown almost every day. My school is in Chinatown. To go back and forth to Chinatown, I need to take SEPTA, and I always go through the Gallery. Would any of you want your 13-year-old daughter to have to go through a casino to be able to get to and from school? Would any of you want your 13-year-old daughter to have to walk past people who have been drinking and losing money every day just to be able to go home? So I want to ask you, if this 134 11/1/08 - RULES - BILLS 080741 & 080742 isn't good for your daughter, why is it okay for me? ) MISS TRUONG: My name is Michelle Truong and I am years old. 7 I'm here to talk about why building a 8 casino is a bad idea. 9 I know that having a casino can 10 affect not only one person, but can 11 affect a family and other relatives, too. 12 I know this because this has happened to 13 my family, and I'm here to tell you my story. When my dad was five, his parents divorced and he followed his mom. His mom was a gambler and opened illegal places to gamble, so he would always follow her. My dad's biggest role model was his mom. That's why he started to learn to gamble. My mom married my dad and then she had to pay back all the money he owed other people from borrowing. m. at a garden, then she 135 11/1/08 - RULES - BILLS 080741 & 080742 went to work at another job in a restaurant until 1:00 in the morning. She paid back everything he owed. She even worked when she was pregnant about to have me. I remember when I was young, about five or six, me and my little brother would follow my dad to watch him gamble. I remember seeing people drunk, and it terrified me. My parents would always fight. My dad stopped working and kept gambling. Each time he said he would stop, but he never did. There were other bad things to happen, but it's private and I don't want to say it here. Now my parents are divorced. I live with my mom, and she's my role model. I can tell what's right from wrong, but my brothers are still young. To them, they still remember my dad and watching him gamble. Do you think it's a good idea if they look up to my father? He was a man who looked up to his mother. 136 11/1/08 - RULES - BILLS 080741 & 080742 What will my brothers do? Some people say that building a casino is okay because people just want to have fun. But you know it's not a good idea, because you get addicted, you lose money and your family is destroyed. You can say it's their own fault, that they can control themself, but children see it all the time if they are born into that situation, and no one, including the government, try to stop it, then whose fault is it? )
Good afternoon, ladies and gentlemen. My name is Ho Chuen Kan, but my friends call me Johnson. I'm 13 years old, and I'm here to talk about building a casino on top of the Gallery. If I could make this decision, I would say no for sure. I don't say that just because I'm trying to mess around. I say it because of my experience. I have seen many people addicted to gambling and they 137 11/1/08 - RULES - BILLS 080741 & 080742 can't pull themselves away from it. Their families lose all their money and owe a lot of money. It makes them unable to even afford food, and the kids have to go hungry for days. I also have an aunt in New York. She got addicted to gambling, so she took two to three hours every day just to go to Atlantic City to the casino. And usually she stayed there for many days gambling non-stop, without even sleeping, just gambling non-stop. Her husband separated with her and became mentally ill. She has two sons, which is my cousins, but when her sons see that their mom is like that, they stay out of the house and be in the streets, because they don't want to go home and see their mom. Now her husband has died, so she decided to stop gambling. But she has already lost at least 300,000. She used to have a really good job with a really good income, but now she just 138 11/1/08 - RULES - BILLS 080741 & 080742 depends on her sons. The people saying that we should build a casino on top of the Gallery always say it will help the City, that they will give taxes to the City and things like that. But can't you just look at Atlantic City? It started with one casino and now there's a bunch of casinos. And I don't find a single business there, except for the big companies. There aren't any small businesses left. My mom always tells me that the houses there still cost money, but there's no market to sell it. No one wants to live there. You know why? Because the casino tore down small business and people can't get job except in casinos. People move away so that their kids won't go gambling. This can happen to us, too. Now you say there's going to be only one casino here, but what about the future? And why is Philadelphia giving up on the 139 11/1/08 - RULES - BILLS 080741 & 080742 citizens? Isn't one Atlantic City enough? Is that what we want Philadelphia to look like? Thank you, and I hope you guys reconsider this idea, because it is bad for our families, for the kids and for the City. (Applause.)
My name is Bill 11 Davidson. I sit in front of you as a resident and teacher in the Chinatown community and also a former gambling addict. I teach at FACT Charter School, which is located five blocks from the proposed casino site. In just over two months, it will have been 13 years since I last placed a bet. I know the adrenaline rush that follows gambling wins and the crashing woes that come with its loss. I also know that if casinos are built above the Gallery, they won't receive a single cent from me. Gambling is 140 11/1/08 - RULES - BILLS 080741 & 080742 personality-altering. It consumes the mind, making it singly focused and irrational, and I have no desire to return to that hateful state. But I am not here today to make a moral argument against the gambling business. Everyone knows the casinos are a predatory industry, which make most of their revenue by starting and perpetuating gambling addiction, but going to them is ultimately a choice. Requesting that Foxwoods build their casinos elsewhere because gambling addiction rife from the Chinatown community is futile. If they were moral, ethical people, they wouldn't be part of such a pernicious industry to begin with. How any -- (Applause.)
How anyone can look these three children in the face, listen to their testimony and then still build at the proposed site, I'll never understand. 141 11/1/08 - RULES - BILLS 080741 & 080742 Morality aside, casinos above the Gallery still aren't in our city's best interest. I often see my students walking through Chinatown on their way to the Gallery. The community is safe and vibrant, and its decimation would be a tragic loss for Philadelphia. Broke, angry, drunken people and the cast of underworld characters that accompany gambling culture would destabilize the area, especially after dark, and make it less appealing to visitors. This would destroy Chinatown's restaurant industry and, in turn, the neighborhood. At the same time, the wonderful students I teach and thousands of other impressionable teenagers who consider the Gallery their favorite meeting place will constantly be crossing paths with alcoholics, gambling addicts, prostitutes and drug dealers. By passing zoning that allows casinos to be built above the Gallery, 142 11/1/08 - RULES - BILLS 080741 & 080742 the highest concentration of teenagers in the City, our city either didn't think about the negative influences of casinos on city kids or they don't care about our lower, middle-class minority youth. The first seems like an awfully big oversight for leaders who are supposed to represent its people's best interest. The second is unthinkable. I've been a teacher for eight years all over the world, and I feel privileged to have taught the three students that testified here today. They're as caring, brilliant and driven as any students I've ever worked with. If I were still a betting man, I would bet they're probably the three smartest people in the room. (Applause.)
They also represent a population of students whose families came to this city and country pursuing the American dream. The older generation is eager to make a great 143 11/1/08 - RULES - BILLS 080741 & 080742 working contribution to the City so that the younger generation can represent Philadelphia's academic institutions on a local, national and even world stage. Our City's government should be doing everything it possibly can to nurture and empower the Johnson Kan's, Liting Zou's and Michelle Truong's of this City, but we're here today because you have approved the opposite. (Bell rung.)
Systematically destroying their family's business center and community, which in turn strains their family unit, is nothing short of irresponsible government.
Thank you very much. Are there any questions or comments of this panel? (No response.) 144 11/1/08 - RULES - BILLS 080741 & 080742
Again, I'm going to ask you please be brief. We're trying to hear every witness.
I will be very brief. I don't want to speak on behalf of AAU or No Casinos Philadelphia. Personally he asked do you approve of it in a different site. And I don't approve it in a different site. However, I can't imagine one any worse than the Gallery, because of the high concentration of Philadelphia youth and the central location of it.