civus
Hearing video

ZBA Hearing - February 14, 2024

Philadelphia Zoning Board of Adjustment (ZBA)Feb 14, 20245h 47m

Do you agree with the refusal or referral?

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Is there accuracy? I do.

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Did you email all the exhibits that have required five days in the business hearing?

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Yes.

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Thank you. Please proceed and share your screen.

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Okay. All right.

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All right. That should be in my packet. Yep. All right. Good morning, Joseph Consul

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for Glenn and Kelly Russo, the owners of 201 Hermit Street. This property was bought in 2018.

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It is a CMX1 approved triplex. The triplex variance was approved two years prior to my

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clients purchasing the property. In 2016, it was approved. They purchased it in 2018.

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Immediately upon purchasing the property, my clients began using this property as an Airbnb visitor accommodations.

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run and airbnb so it's a cmx1 property it has three units and those units have been operating

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for about six years as an airbnb with no issues as i mentioned uh or as uh council as mr bergman

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mentioned, the RCO is the Maniunk Neighborhood Association. We met them twice. It was fairly

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clear from the beginning that they have no interest in approving any visitor accommodation

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permits in Maniunk. Not specific to my client's properties, but just the idea of approving these

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in general is anathema to that particular RCO, which unfortunately has prejudiced my clients

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in this particular scenario who have been running this successfully for a long time.

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So they submitted their letters. The letters are identical in their general

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uh disapproval of approving these variances in maniunk as is their as is their right to to do so

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but um we'll speak in a minute about why we believe generally uh this should be approved

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but specifically why my clients should be approved for this variance today here's photos of the

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property it's a nice corner property as you can see

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very well kept as my clients will attest to in a moment they have

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spent tens of thousands of dollars outfitting the property with furnishings

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and have made many updates over their six years of running a successful

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visitor accommodations in this property

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these are all in the packet just scanning through

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what i want to also call to the board's attention is the reviews that they've received on this

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but I want to also call to the

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property here's a 4.84 review they have 241 reviews they are considered super hosts and

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these properties are considered uh one of the most beloved in philadelphia

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there's 191 positive reviews guest favorite and there's 318 4.676 reviews um again

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our argument for approval is essentially that uh this long-standing use has no formal complaints

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and tons of positive reviews my clients have made significant investments in this property

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uh including but not limiting to the furnishings that you're seeing in these photos here

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uh being forced to um deep remove those would be extremely costly and um because that would

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all have to be sold for pennies pennies on the dollar we believe that generally in maniunk uh

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after looking at the um the layout of maniunk there are no properties that would by right

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approve an Airbnb. So we're not asking for approval of ones that have not had a successful

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history of operating. We believe that allowing this to continue operating provides something

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for Maniunk that doesn't otherwise exist, which is the ability to have visitors come and actually

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stay in Maniunk. There's no major hotels, as you all know. And we think that this kind of serves

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a niche uh to allow folks to come and visit and stay in this area uh versus having to stay and

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travel to maniunk to visit for whatever whatever reason they might be coming to maniunk or just

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to come and enjoy that part of the city um uh before i call my clients i'll just reiterate

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i mean i've been in front of the board before regarding visitor accommodation permits where

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The RCO is patently against it, and so we're hoping a similar sort of temporary variance might be in the appetite of the board today.

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With that, I will call my client. I believe it's going to be under the name Kelly Russo.

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ellie russo can you raise your virtual hand please

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here she is i will allow her to speak thank you could you please state your name and spell for

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the court stenographer good morning my name is kelly russo k-e-l-l-y r-u-s-s-o you swear

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a firm to tell the truth the whole truth is nothing but the truth i do please proceed council

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good morning miss rousseau did you hear my testimony just now and do you adopt it as your own

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yes um is there anything you would like to tell the board prior to them moving towards the vote

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yes i do okay please proceed

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good morning um thank you for allowing me to speak today

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i want to just mention uh

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the uh hardship that not getting this variance would have on our family

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the only reason that we purchased these properties were to use them as short-term

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governmentals, business assets. And our family heavily depends on this income,

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makes up about 60% of our income. And it's not only us that depends on this. We provide

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income for three other people who work with us at these properties that do heavily depend on that

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as well. We made significant investments in these properties that we would not have otherwise,

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as Joe mentioned. We've spent a total of almost $70,000 on furnishings that we would not have

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done if we had not intended to use these as short-term rentals. So that would be a huge

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loss for us because there's no way that we would ever be able to recoup that money we've borrowed

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from savings and retirement and not having this would be very difficult we are

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my my son is starting kindergarten in the fall and at this point we are worried about having to

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sell her home as a result of this decision and potentially move likely to.

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as a result of this decision and potentially move likely to another school district which

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would not be great for for anybody um basically it's this decision has just basically completely

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um

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upended our financial security i'm sorry it's okay kelly um i don't mean to cut you off but yeah

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that's okay that could be enough of a testimony for the board thank you all right so um mr council

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before i put this for some questions from the board yes sir we believe that the first

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floor unit has never been legalized and we would need a certificate of occupancy

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right the hillary hillary mike saying this right yes so uh mr consul the so according to the

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information on the refusal when this was approved for a triplex a certificate of occupancy was never

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obtained the use was never established so it reverted back to cmx1 which is typically

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commercial space on the bottom and um a dwelling unit on top um doesn't appear that

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the first floor dwelling unit was ever legalized but we so the three-unit rental license that

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expired last july that would just be need to be renewed is what you're saying

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well are there three units in the property so it looked like there were two

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no there's three units in the property there are three okay he maintained a three-unit rental

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license uh that only expired last july because at the time that didn't wasn't relevant to the

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visitor accommodation permit but the right you can see it's license 775520 they hadn't approved

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three unit from that from that date so if what you're saying is true i think just renewing that

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would nullify any concerns that it was illegal and he'll be able to review that by renew that

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by right because it's not been three years right right no it it's just the refusal noted that there

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was no certificate of occupancy so i'm surprised they they were able to get a rental license

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because normally they want to see that the use has been been established but that's if they're

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able to get a rental license they're able to get a rental license um but even with the the change of

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use um from residential to commercial which is their accommodations is technically commercial

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you still do need a certificate of occupancy so okay yeah so you just need to get that anyway

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okay so that they need to procure a certificate of occupancy as well as renewing that renewing

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that license or i don't i don't believe they would need to renew the rental license as you

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know assuming the board approves this because the use is being changed but ellen i told me because

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it because i wasn't clear how many units have been approved you know how many units had the

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use had been established at this site based on the information on the refusal um they said that

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a certificate of occupancy would be required to change it to visitor accommodations anyway

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probably because it's going from residential to commercial yeah so there's there's the three unit

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license i was just referring to all right thank you as you can see it was active for five years

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straight yep yep all right cool so yeah absolutely they'll get that all right so

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questions from the board? No, Mr. Chairman.

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No, Mr. Chairman. Questions or comments from the virtual audience?

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Yes, Chair. John Hunter has a hand up.

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I will allow him to speak. Good morning, Mr. Hunter.

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Please state your name and spell for the court stenographer. Yes.

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Good morning. John Hunter, J-O-H-N-H-U-N-T-E-R.

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Right. Do you swear or affirm to tell the truth, the whole truth, and nothing but the truth?

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I do.

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Please proceed, Mr. Hunter.

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Thank you. I'm the zoning chair for Maniocet Neighborhood Council.

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Mr. Council is correct in its factual details. We met twice. We've listened to the discussions and the arguments.

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The only thing I disagree with is it's not that Maniocet Neighborhood Council doesn't agree with Airbnbs.

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airbnbs it's the city that doesn't agree with airbnbs in residential districts and we are just

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in the position of listening to both sides of the argument and we think it's unfortunate that what

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is necessary to be pursued is a variance because that variance is really in perpetuity and the

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income stream from a residential unit which can be used as airbnb is greater than any other so

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it's unlikely to ever return to just purely residential unit many anchors you know is

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highly dense residential area. It's not like Center City. It's not a varied amount of different

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a highly dense residential area it's not like

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options of residential units. And we are concerned that such small opportunities for either rental

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properties or for the purchasing will be denied by the granting of a variance in this case and

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other similar cases. And that is really what our position is. And we would also say that

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not this case, because it is CMX1, but the other case that you will hear next is what was an RSA

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5 case. So both of these two properties prior to the purchase by this applicant were also granted

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a variance for a change of use from a purely residential single family. So we think that

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that position where you have three units in the house, which would provide an income stream,

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is still beneficial to an owner. I think any decision made here would not force a property

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to be sold immediately. The property at the moment, we understand, is being rented out in

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a different form to comply with the change in requirements of the city's ruling.

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So it's not a hardship that we can really understand.

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And we think that it's reasonable, given the city's position and Manningham's sort of

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residential stock, that the Airbnb variant should not be granted in this and the other

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case.

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All right.

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Thank you.

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very much for taking the time to call us is there anyone else in the virtual audience

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i see no hands chair okay um planning commission

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thank you chair bergman sarah bond with the philadelphia city planning commission

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the comprehensive plan recommends no change to the existing

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excuse me uh commercial zoning at this property the appellant has not shown that the property

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cannot be possibly used in strict conformity with the zoning code and that a variance is therefore

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necessary to enable the viable economic use of this property. The City Planning Commission

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recommends that the Zoning Board deny the variance. Thank you. MI 2023-005-098-201

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Herman Street. I vote yes, but for a temporary variance that would expire 214-27 and also

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proviso the first floor needs a certificate of occupancy thomas holliman my vote is yes with

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provisos james snell my vote is yes with provisos and mr consul we're going to go right into mi

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2023-005-100

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4444

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Silverwood Street.

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Same owner.

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We know you

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just start the case, Mr. Consul.

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Good morning, everyone. Joseph Consul, 444

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Silverwood Street.

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I have a

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extremely similar

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um presentation and i i don't know if i'm going to put my client through the the ringer again

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to testify we understand right okay uh four four four silverwood this is another uh three unit

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property this was purchased approximately four years ago prior to the city revising their uh

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visitor accommodation laws and making airbnbs require a variance so again this is a three

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unit property that was a three unit prior to my clients purchasing it they did not work on the

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variance that was granted for three units it had been a four unit in the 40s and then it was

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approved as a three unit in 2005 my clients purchased it well after that again same letter

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from the maniunk rco uh the only appreciable difference between these two properties and i

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think it's a positive one is that 444 uh this property in silverwood has two parking spaces

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in the back so it it actually um it's kind of a neater property in that sense is that provides

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the ability for folks that are visiting the property to have a parking space as you can

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see the property is similarly upkept. The furnishings are quite nice. The style is different,

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but they're both quite beautiful and show.

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But they're both quite beautiful and show my clients' tastes.

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So again, a three-unit property owned by the Russos that has been functioning as an Airbnb for well before the period.

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There you can see the two parking spaces.

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there's a truck and volvo or subaru two decent sized cars and this is just trash receptacle

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underneath that um they had installed for prior to trash pickup day to have the trash

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pin uh i'll go just briefly over to those are the hermit reviews let me just minimize those

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here are the reviews go

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For the Silverwood property, again, 4.93, 70 reviews, 4.9, and 4.93, total of almost 300 positive reviews on this property.

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And again, guest favorites in the city of Philadelphia, hosted by Glenn and Kelly.

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I will call Kelly again to adopt my testimony and to perhaps just adopt the reiteration.

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that's right that's right okay yes mr consul is going to say she can just incorporate her

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testimony from the prior case into this one yep okay miss russo you've already been sworn in so

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just identify yourself hi kelly just say your name and i yes kelly russo mr consul please proceed

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Ms. Russo, did you hear my testimony today regarding your property on Silverwood?

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I did.

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Do you adopt it as your own?

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Yes.

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Do you reiterate your previous testimony, and does that all stand true for this property as well?

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Yes.

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Okay. Nothing further.

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Questions or comments from the board?

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No, Mr. Chairman.

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No, Chair.

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Questions or comments from the virtual audience?

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I know that Mr. Hunter mentioned this when he testified the last time, but if he wants to come on, that's fine.

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mr hunter it does have a hand up okay he's been allowed to speak good morning again mr hunter

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you've already been sworn just state your name for the record sure it's john hunter h-u-n-t-e-r

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