COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE THE COUNCIL COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 17, 1998 9:40 a.m. - - - Resolution No. 980427 - A resolution approving the action of the Boards of the Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development to sell Parcel F-11, in the Eastwick Urban Renewal Area - State "A" Industrial, containing approximately two acres of ground to Piazza Management or its nominees. PRESENT: COUNCILWOMAN ANNA CIBOTTA VERNA, Chair COUNCILMAN DAVID COHEN COUNCILWOMAN HAPPY FERNANDEZ COUNCILWOMAN MARIAN B. TASCO COUNCILMAN FRANK DICICCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 I N D E X Paul Deegan. . . . . . . . . . . . . . . . . . 3 Philadelphia Industrial Development Corporation 3 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 P R O C E E D I N G S
Good morning. This is the public hearing on the Committee of Finance. I would ask the Clerk to please read the title of Resolution No. 980427.
Resolution No. 980427, a resolution approving the action of the Boards of the Philadelphia Industrial Development Corporation and the Philadelphia Authority for Industrial Development to sell Parcel F-11, in the Eastwick Urban Renewal Area - State "A" Industrial, containing approximately two acres to Piazza Management or its nominees.
Thank you. I would like the record to note that a quorum is present. To my left, we have Councilmembers Tasco, Cohen, Fernandez. And to my right is Councilman DiCicco. Good morning. Please identify yourself for the record.
Good morning. Paul Deegan, PIDC. This resolution authorizes PIDC to sell two acres of ground to Piazza Management, 6915 4 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 Essington Avenue. Piazza Management is to improve this lot for parking for the Honda dealership. The sale will result in the increase of jobs at 5 the dealership. 6 The Eastwick Project Committee, on 7 March 19, 1998, considered this proposal and 8 recommended its approval, under the condition that 9 it is not to be used for airport valet parking, 10 but that it be used for Honda employees and 11 storage of automobiles for the dealership. And 12 PIDC will include this condition in the deed of 13 conveyance to Piazza Management. 14
I also ask that the 16 committee consider the resolution favorably and 17 ask that it be approved at the next regularly 18 scheduled session of City Council. 19 Thank you. 20
Thank you, Mr. Deegan. Can you tell us what Philadelphia Honda is paying for the parcel of ground.
And has this been 5 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 brought before the Eastwick PAC?
Yes. PIDC and representatives of Piazza Management were at the meeting, and that's when the issue was raised about the valet parking that the PAC feels there could be too much traffic going in and out of the auto mall area by the airport. So they would rather see the land restricted to the use of the company's industrial park and then the auto mall.
And this parking lot will be used for employees and customers?
Yes. They'll also keep inventory there. They're right across the street from the parcel, and they can light it and secure it and keep an eye on it during the evening hours.
Thank you. Are there any questions from members of the committee? The Chair recognizes the Chair recognizes Councilwoman Fernandez.
There's some people concerned about the environmental issues surrounding runoff when you have big paved areas. Do you know if there are any provisions made dealing with the runoff? I'm not familiar with 6 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 the area to know what's drainage and how you deal with that.
All the plans for development in Eastwick have to be approved by the Water Department. Normally, if there is a runoff problem, detention basins are put in when so most of the properties here have detention basins. Or if the sewer capacity is adequate, the Water Department will allow the runoff to go into the sewer. We restrict the land coverage and also have the large protected wetlands that are near Meissner Chevrolet. We created a wetlands area basically to absorb most of the water flow, and that will never be built upon.
Thank you. Are there any other questions commence from members of the committee? The Chair recognizes Councilwoman Tasco.
Good morning, Councilwoman. 7 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427
Is that the appraised value of the land? Are we getting a good price for it?
Yes, Councilwoman. It's appraised every three years. We're required by agreement with the City to have an independent real estate appraisal every three years of the industrial parks. The location is good but because of the soil conditions, it's too costly to build here. There's really a penalty to building in Eastwick because of the soil conditions, but the rate is established by two independent real estate appraisers every three years.
They established this rate that we're getting for this land, this cost?
It's at 8 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427 fair-market value?
Yes, Councilwoman. It doesn't permit any commercial use. Obviously, commercial land in the area would be at a higher rate, but this is restricted to industrial use.
Did you get an appraisal during this transaction, or are you basing this cost on the last appraisal which may have been two, three years ago?
Based on its appraisal every two, three years, we set a value for the park as a whole. Then we would sell the land for that price. It's more or less the sticker price, I guess, for the industrial park for those three years.
We'll probably reappraise this park this summer. We haven't sold any land here in three years either, so I don't think we're undervaluing it. I think it's a good value.
So you think the conditions are the same as it was three years ago, when it was last appraised? 9 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427
Yeah. I don't think there would be much of an increase since I think it's three years since we've sold any of the industrial land in Eastwick.
Are there any other questions or comments from members of the committee? (No questions.)
Is there anyone else here to testify on this resolution? (No response.)
Seeing none, this concludes the Finance Committee's public hearing. - - -
We will now go into our public meeting. The Chair recognizes Councilwoman Fernandez for a motion on Resolution 980427.
Thank you, Madame Chair, I move that we vote Resolution No. 23 980427 out of this committee with a favorable recommendation. (Duly seconded.) 10 COUNCIL COMMITTEE ON FINANCE - RESOLUTION 980427
It's been properly moved and seconded that this resolution be reported out of committee with a favorable recommendation. All in favor, signify by saying aye. The motion is so carried. This concludes the public meeting of the Finance Committee meeting. Thank you very much.
Thank you. (Adjourned at 9:47 a.m.) - - - 11 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, June 17, 1998, were reported and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON FINANCE RESOLUTION NO. 980427 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter