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Minutes

Committee Hearing, September 20, 2001

Philadelphia City Council Committee HearingsSep 20, 2001

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

  • Curtis Jones Jr.

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, 9/20/01 9:06 a.m. - - - BILL 000716 - An ordinance amending Chapter 21-1100 of the Philadelphia Code, entitled "Community Development," by amending Section 21-1108, entitled "Economic Development." RES. 000691 - Held at request of sponsor. PRESENT: COUNCILMAN MICHAEL A. NUTTER, Chairman COUNCILMAN FRANK DICICCO, Vice Chairman COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILWOMAN DONNA REED MILLER - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X Rick Sauer, Executive Director, PACDC........ John McDonald, President and CEO............. 11 Impact Services Corporation (a Kensington CDC) Steve Culbertson, Executive Director......... 14 Frankford Group Ministry CDC Sloan Folks, Director of Economic............ 15 Development, Frankford Group Ministry CDC Gabrielle Jones, Director of Economic........ 16 Development, Partnership CDC Steven Kazanjian, Executive Director......... 19 Greater Germantown Housing Development Corp. Francis Vargas............................... 21 Asociacion de Puertorriquenos en Marcha, Inc. Peter Gonzales, Project H.O.M.E. ............ 22 Deborah McColloch, Director of Housing....... 25 3 9/20/01 COMMERCE/ECON. DEV. BILL 000716

Councilman Nutter

Good morning, ladies and gentlemen. This is a convening of the Committee on Commerce and Economic Development to receive testimony on Bill No. 000716. My name is Michael Nutter and I'm chair of the committee. At the table is committee member Councilman Goode. We'll ask the clerk of the committee to read the title of the bill and then we will begin taking testimony.

The Clerk

Bill No. 000716, an ordinance 12 amending Chapter 21-1100 of the Philadelphia Code, entitled "Community Development," by amending Section 21-1108, entitled "Economic Development."

Councilman Nutter

Thank you. Councilman Goode, do you have opening remarks?

Councilman Goode

Yes. Thank you, Mr. Chairman. I'm requesting that the committee holds Resolution 00691 at the request of the principal witness, which is undergoing some organizational changes since its introduction. I'm also offering an amendment to Bill 25 000716, after consultation with the Philadelphia 4 9/20/01 COMMERCE/ECON. DEV. BILL 000716 Association of Community Development Corporations, PACDC. PACDC feels that the extreme administrative costs associated with the Community Development Block Grant Program, which the Chair has pointed out on numerous occasions, there's a percent mandate 7 for economic development for affordable housing 8 production. I believe as we seek to lower 9 administrative costs, there will be more money 10 available for all community development activity. 11 But for now, we will seek to come close to that goal 12 while ensuring that there is a mandate for 13 investment in economic development undertaken by 14 CDCs. 15 The amendment reads as follows: "At least 16 5 percent of all program year funds should be 17 allocated to economic development programs 18 administered by community development corporations." 19 The amendment fulfills the original goal, 20 removing the cap on economic development funds and 21 brings us closer to the other goal on the original 22 bill of 25 percent, considering the investment in 23 non-CDC economic activity at Commerce, PIDC, PCDC, 24 and small-business lending. Furthermore, it targets 25 resources toward community-based organizations 5 9/20/01 COMMERCE/ECON. DEV. BILL 000716 through a legislative mandate. Let me thank all of those who came to testify on behalf of the bill's proposed amendments. Thank you, Mr. Chairman.

Councilman Nutter

Thank you, Councilman. We've also been joined at the table by committee member Councilwoman Blondell Reynolds Brown. Councilman, I'm assuming that at the end of the hearing, we'll make a motion on the particular amendment that you have. But the testimony that we'll hear will be relevant to the amendment as read into the record?

Councilman Goode

Absolutely. I've read the amendment into the record. I also have copies of the amendment for members of the committee.

Councilman Nutter

Very good. The first testimony we'll hear is from Mr. Rick Sauer. (Witness comes forward.)

Councilman Nutter

Please proceed.

Mr. Sauer

Good morning, Councilman Nutter, Councilman Goode, and Reynolds Brown. I'd like to thank you for the opportunity 6 9/20/01 COMMERCE/ECON. DEV. BILL 000716 to testify on Bill 716. My name is Rick Sauer, and I'm the Executive Director of the Philadelphia Association of Community Development Corporations, a citywide association of 78 community development corporations and other organizations working to revitalize the City's neighborhoods and rebuild communities. I'm here today on behalf of our members, to voice our strong society support for the amended version of Bill 716, which directs the City to allocate at least 5 percent of its annual community development block grant funds to economic development programs administered by CDCs. A growing number of CDCs are undertaking economic development activities as part of their comprehensive approach to revitalizing neighborhoods. They recognize the important role that economic development plays in neighborhood stabilization and meeting resident needs. Of our 18 CDC members actively involved in this area, several have had economic development and job creation as a central focus of their efforts for years, while other groups have more recently begun working to revitalize the neighborhood commercial corridors. Their economic development activities 7 9/20/01 COMMERCE/ECON. DEV. BILL 000716 range from supermarket and commercial space development to business development and support services operating mainstream programs, special-service districts, and undertaking other efforts to strengthen neighborhood commercial corridors. We have several our members here today to testify who will provide more specifics on the work they're actually doing in economic development. Many groups are linking their housing development, workforce development, and other community development activities to economic development in order to increase the overall impact of their work. Housing development can help establish the residential base that's needed to support local businesses while business creation recruitment can provide the local jobs for participants in the workforce development programs as well as other opportunities for other neighborhood residents. And, as you know, sponsors in neighborhoods economic development activities, whether they're CDC or other, have the daunting task of assembling a jigsaw puzzle of financing from a wide variety of sources, ranging from the City, the 8 9/20/01 COMMERCE/ECON. DEV. BILL 000716 State, federal agencies, private lending institutions, foundations, and investors. A key to the success of these projects, though, and their programs, has been their ability to utilize public-sector funds to leverage resources from the private sector. Over the past decade, our member CDCs have created over one million square feet of commercial and retail space in the neighborhoods, organized businesses, created hundreds of jobs, and increased local access to local goods and services. And the survey we conducted earlier this year found that they had additional commercial 15 development projects currently in the pipeline. 16 While they had the vast majority of the financing 17 they needed for those projects in place, there 18 remained a need of about $13 million in gap funding to bring the projects to fruition. A critical source of funding for the economic development activities of these programs are programs operated by the City's Commerce Department, PIDC, and PCDC. And certainty the City has been very supportive of the efforts of CDCs to undertake economic development activities; and in 9 9/20/01 COMMERCE/ECON. DEV. BILL 000716 fact, some of these programs operated by the City, such as the Neighborhood Development Fund and the Neighborhood Development Grants Program, received a significant infusion of resources for the current fiscal year. However, funding for the economic development programs typically accessed by CDCs has fluctuated greatly over the past years.

Mr. Sauer

Funding for pre-development acquisition, gap financing for commercial development projects, streetscape, and facade improvements in support of CDCs' work with local business to strengthen commercial corridors is crucial. Bill 716 recognizes the important role that CDCs are playing in neighborhood economic development in Philadelphia and it would help ensure a steady annual flow of funding to support this work. We strongly urge you to release the bill 19 from committee today as amended, and I want to thank you for the opportunity to testify. We certainly look forward to working with City Council and the City to advance revitalization of our commercial corridors and create economic activity for our neighborhoods.

Councilman Nutter

Thank you very much 10 9/20/01 COMMERCE/ECON. DEV. BILL 000716 for your testimony. We will also include your written testimony as a part of the record as if the testimony had been red into the records. Are there any questions for Mr. Sauer? (No quesions.)

Mr. Sauer

Okay, thank you.

Councilman Nutter

We have -- the next panel is a group of individuals: Steve Culbertson, Rahim Islam, Fara Jimenez, Stephen Kazanjian, and John McDonald. If we could have that group come up as a panel. (Witnesses come forward.)

Councilman Nutter

While the panel is assembling, I have a couple housekeeping notes and announcements: One, I should have started the hearing by saying I appreciate everyone adjusting their schedule. I recognize that this hearing was originally scheduled for yesterday. Councilman Goode was good enough to be flexible with respect to holidays taking place yesterday, and I know that there was probably some impact on many of you who are here, your time, as well as some other individuals who may not have been able to attend. 11 9/20/01 COMMERCE/ECON. DEV. BILL 000716 Secondly, we've been joined by other Councilmembers: Councilman DiCicco, vice chair of the committee; Councilwoman Donna Reed Miller. At this point, the committee has a quorum of members and we will continue with the testimony. I have one last thing to do before we start and then we'll hear your testimony. If you have written testimony, you can hand it in, and it will be included in the record as if it had been read naturally. If you want to make other comments, that will be fine. Hold on for one second. - - -

Councilman Nutter

Good morning, panel. We'll assume that you've determined amongst yourselves who will start, so let's begin the testimony of this panel. Don't everyone start at once.

Mr. Mcdonald

Good morning, everyone. I am John McDonald. I am serving as president of the CDC Association and I am also president and CEO of Impact Services Corporation, a CDC located up in the Kensington section of the City. Impact has been involved in economic 12 9/20/01 COMMERCE/ECON. DEV. BILL 000716 development for a number of years since our inception, and frankly, it's given us the opportunity to create a significant number of jobs over the years: We've placed over 20,000 people in work. What we have attempted to do with our economic development efforts early on was to create positions when they weren't available, when the job mark was really tight. And we ran various businesses such as the demolition. We're in demolition, we're in construction, we build a number of houses. In addition to that, we run a golf course and we are in the rough cast business, producing a number of jobs for ex-offenders and ex-addicts that were in rehabilitation. These efforts did a lot for our particular community and gave us the opportunity to move forward with a number of sustaining businesses that have been in existence for more than 15 years. Impact runs Impact Archives; you may have seen our trucks running around town. We also run an educational kit business in conjunction with the Franklin Institute. Every youngster within the City of Philadelphia, grades to 6, has used our kits to 9/20/01 COMMERCE/ECON. DEV. BILL 000716 learn science. In addition to that, we have a copy center that's located right across the street that works with the litigation field, litigation copy, and other businesses. And all of these activities have created significant revenues for the organization. Our idea was, our neighborhood doesn't seem to have a lot of money. And over the years, there hasn't really been a lot of interest in trying to do much in this area. And our effort in economic development was to work where the money was; obviously, that's the reason for the archives and the copy and the educational kits. We earn the dollars from people in areas outside of our particular location. The money comes back to us and bounces multiple times throughout the community as a result of the salaries we pay to our employees. Impact has a budget of between 8 and 10 million. We have 130 employees full-time and we're in a variety of other endeavors aside from just economic development, but that is the heart of our operation. 14 9/20/01 COMMERCE/ECON. DEV. BILL 000716 So, again, we obviously are in total support of this bill to create a steady flow of funding for CDCs; I think you'll see a lot of miraculous things happen that would spur other development with the area and bring outside dollars into the community to assist in the commercial strips. Also, you would see companion housing developed around the commercial strips. We are working at K&A, trying to revise the business in that particular area. So, again, I'll pass the torch to some of our other members here. Thanks for letting us testify.

Mr. Culbertson

My name is Steve Culbertson. I'm the executive director of the community development corporation of Frankford Group Ministry. We're absolutely in support of this bill. The work that CDC does in Frankford is comprehensive in nature. We work in economic development, in residential development, and in workforce development. The economic development we do is critical to the revival of the Frankford section of 15 9/20/01 COMMERCE/ECON. DEV. BILL 000716 Philadelphia. Frankford Avenue, as you may know, is sort of an artery through our community and through much of the eastern part of Philadelphia. We cover about blocks of Frankford Avenue in our 6 geographic territory, and we've been actually very 7 successful in attracting new businesses to Frankford 8 Avenue and increasing the occupancy on Frankford 9 Avenue. 10 I'm going to defer to my partner, Sloan 11 Folks (ph.), who's the director of economic 12 development for the CDC, to give more detail to the 13 program, but we are absolutely in support of the bill.

Mr. Folks

Good morning, members of the panel. My name is Sloan Folks, the director of economic development for the CDC-FGM. I just want to discuss a few of our activities and economic development with the CDC. We've been in operation specifically in economic development since 1994. Our activities include a nationally recognized mainstream program. We manage a special-services district that began operation in 1996. Some of our commercial corridor activities include commercial property acquisition, 16 9/20/01 COMMERCE/ECON. DEV. BILL 000716 rehab, and resale. We have assistance to industrial companies in the lower northeast section of the City, we provide entrepreneurial training and small-business development as well as linkage to job opportunities in the private sector. If there are any questions about our activities, I'd be more than happy to answer them. Thank you.

Councilman Nutter

Thank you. Next.

Ms. Jones

My name is Gabrielle Jones. I'm the director of economic development for the Partnership CDC. I'm here to offer testimony in support of Council Bill 716. Over the past nine years, we've become more and more engaged in economic activities in West Philadelphia. In 1997, the Philadelphia Commerce Department invested $28,000 in economic stimulus grants in the Coors Company, our for-profit subsidiary. We were required to utilize dollars to create 10 new jobs, and we were able to expand that goal and create 75 new jobs. As a result, we have been able to generate well over $280,000 in tax revenues, ten times the City's one-time initial 17 9/20/01 COMMERCE/ECON. DEV. BILL 000716 investment. We started the Mercy Special Services District in 199 within our targeted area in West Philadelphia in large part through funding from the Philadelphia Commerce Department. The special service district provides cleaning services along our major commercial corridors. Through the special service district, we've been able to impact the physical environment of our commercial corridors and create a friendlier environment to live, work, and do business. We are active in the business associations on the 40th, 52nd, and 60th Street commercial corridors. We work with these corridors to bring the business owners together so that they have a strong, cohesive voice in effecting continuity and strength in their respective commercial districts. We are currently engaged in the blight removal project on the 60th Street commercial corridor. This project will create lower density to an older, deteriorated corridor and provide land banking opportunities which can be used to attract development. Recently, we have turned our focus to 18 9/20/01 COMMERCE/ECON. DEV. BILL 000716 commercial retail projects as a means to both stimulate the economy in our area as well as to produce income-generating projects for the CDC. We completed renovations on a storefront office, which became our new headquarters in 2000. We have now begun construction on the adjacent storefront office, which once completed, will be leased out to a commercial enterprise. Throughout each of our economic development ventures, we've had a large degree of success, leveraging private and institutional capital for projects. New partnerships with entities like Mercy Hospital of Philadelphia, the University of Pennsylvania, and the University City district, we've been effective in stimulating growth, growing interest in economic development in our area. We feel that a commitment from the City of Philadelphia to continue investment in economic development projects within our neighborhoods will aid in our efforts to leverage private dollars for our development. Thank you.

Mr. Kazanjian

Good morning, Mr. Chair 19 9/20/01 COMMERCE/ECON. DEV. BILL 000716 and members of the committee. My name is Steven Kazanjian, and I'm the executive director of Greater Germantown Housing Development Corporation, a CDC that works in the northwest section of the City of Philadelphia. Since our inception in 1977, GGHDC has built over 600 units of housing and developed over 125,000 square feet of commercial space. Although housing activity has been the main focus of our organization, in the late 1980s, we realized that we really need to start rebuilding the economic fabric of the Germantown community. A tour of Germantown will show you that the commercial corridor deterioration has not only led to loss of jobs, but it also has negatively impacted the housing stock that is the fabric of our neighborhood. We are pleased that City Council is considering Bill 716, and we support the bill 21 completely. Just during my tenure at GGHDC, the neighborhood has lost several major manufacturers, including Asher Candy, London Harness, and these employers have taken away hundreds of jobs from the 20 9/20/01 COMMERCE/ECON. DEV. BILL 000716 community. We began our economic development activity in 1992 with the development of Freedom Square, a 20,000 square foot shopping area that was seeded with capital from the Commerce Department. We also have developed over 125,000 square feet in our new Birches Building complex, which is a retail office complex. Since that time, we've also expanded into other activities to include a broader range of economic development work. These include an entrepreneurial training program, where we have assisted over 250 residents to do entrepreneurial training to provide the resources necessary to create new businesses. Out of those residents that have gone through the program, over of them have 18 started and/or expanded business opportunities in 19 the neighborhood. And we are also working with many 20 of these businesses to house them in retail storefronts and office developments. However, this labor-intensive activity has no dedicated funding source for GGHDC, and we need to find new ways of funding this type of activity. It's very expensive for our organization. 21 9/20/01 COMMERCE/ECON. DEV. BILL 000716 Since our inception, we have leveraged -- with $1.9 million in City resources, we have leveraged over $8.5 million in private debt for our development activities as well as $1.1 million in State, federal, and foundation funding for economic development activities in Germantown. But we need to do more. The fact of the matter is that the economic obsolescence of the real estate in Germantown requires significant City subsidies, and Bill 716 would help GGHDC and the other CDCs in the City to do more work to revitalize our neighborhoods. Thank you for your consideration of this bill.

Councilman Nutter

Thank you for your testimony. Are there any questions for members of this panel? (No questions.)

Councilman Nutter

Seeing none, thank you very much. We will next have Peter Gonzales and Francis Vargas. And if there are any other members of the public who wish to testify, if you would see 22 9/20/01 COMMERCE/ECON. DEV. BILL 000716 the clerk of the committee, Mr. Matt Quigley, and let me him know who you are so we can get you on the list. (Witnesses come forward.)

Councilman Nutter

Gentlemen, good morning, good morning. If you have written testimony, please hand it up -- Mr. Vargas, I know we have yours. Your written testimony will be included as a part of the record as if it had been read. You can certainly make any comments or present your testimony. Please proceed.

Mr. Vargas

Good morning. My name is Francis Vargas, and I'm here today representing Asociacion de Puertorriquenos en Marcha, Inc. (Mr. Vargas reads verbatim his written testimony, which is attached hereto.)

Councilman Nutter

Very good. Thank you.

Mr. Gonzales

Good morning, members of the Committee on Commerce and Economic Development.

Councilman Nutter

Good morning.

Mr. Gonzales

My name is Peter Gonzales, and I'm here to testify today on behalf of Project 23 9/20/01 COMMERCE/ECON. DEV. BILL 000716 H.O.M.E. Since 1995, Project H.O.M.E. has pursued neighborhood revitalization efforts in a 33 square block neighborhood in lower North Philadelphia, focusing on affordable housing development, vacant land reuse, and economic stimulation. With limited funding for economic development, we've been able to accomplish a few important tasks. During the Rendell Administration, we earned designation for a portion of Ridge Avenue as a graffiti-free zone, entitling us to City-funded graffiti removal services. In 1997, we completed a neighborhood labor force survey in partnership with the Reinvestment Fund. In 1998, we contracted with a private consultant to assess business conditions and develop a workforce development strategy. In April 2000, through a generous grant from the William Penn Foundation, Project H.O.M.E. began working with local businesses, community leaders, neighborhood residents and institutions to develop an economic development strategy for the Ridge Avenue commercial corridor from 21st Street to 30th Street. So far, we have helped reestablish the local business association, we organized two 24 9/20/01 COMMERCE/ECON. DEV. BILL 000716 cleanups on Ridge Avenue in collaboration with the Commerce Department and the Managing Director's Office, mobilizing nearly 100 volunteers to sweep the sidewalks and remove trash and debris from four City-owned vacant lots. This past spring, we received a planning grant from the Commerce Department to help us develop the Ridge Avenue Revitalization Plan. The plan, which will be completed next month, identifies strategies for making physical improvements to the commercial corridor, strengthening the existing businesses, and attracting new businesses. With a $25,000 grant from the William Penn Foundation, we will implement the first in a series of small-scale projects along Ridge Avenue over the next few months. The projects may likely include fixing sidewalks, installing new signage and trash cans, dealing with parking issues, addressing safety and security concerns, or reusing vacant buildings and lots. In order to help Ridge Avenue rebound from decades of neglect, we will need a consistent stream of City funding to support these efforts. With financial support from the City, Project H.O.M.E. 25 9/20/01 COMMERCE/ECON. DEV. BILL 000716 will be able to leverage more private dollars to implement improvement projects, strengthening the existing businesses and attracting new business to the avenue. Thank you.

Councilman Nutter

Thank you. Any questions by members of the committee? (No questions.)

Councilman Nutter

Seeing none, gentlemen, thank you very much.

Mr. Vargas

Thank you.

Mr. Gonzales

Thank you.

Councilman Nutter

Debra McColloch. (Witness comes forward.)

Ms. Mccolloch

My testimony was already handed in.

Councilman Nutter

It was. Good morning, Miss McColloch. Please proceed.

Ms. Mccolloch

Good morning, Councilman Nutter and the other members of the committee. I am Deborah McColloch, Director of Housing, and I'm here to testify regarding Bill No. 000716. The Administration would like to commend Councilman Goode and this committee on your 9/20/01 COMMERCE/ECON. DEV. BILL 000716 continued efforts in supporting economic development in Philadelphia's neighborhoods and recognizes that part of neighborhood revitalization is supporting the small businesses that are the backbone of successful communities. While the Administration does not have a position on this legislation, we would like to offer commentary to assist the committee in evaluating the potential effect this legislation might have on future CDBG funds if this legislation is enacted and becomes law. As you know, the Community Development Block Grant Program, as we all know it, CDBG, provides funding for a variety of community and economic development needs of the City, including grants to homeowners, vacant structure rehabilitation, neighborhood planning, community greening, community economic development, and other various community development activities. The budget, known as the "Consolidated Plan," is presented to City Council in the spring of each year for review and approval, prior to submission to HUD. In the current fiscal year, known as "Year 27," the CDBG entitlement from HUD is 27 9/20/01 COMMERCE/ECON. DEV. BILL 000716 $71.676 million, which supports, among other things, housing production activities in the amount of $5.25 million, housing counseling for $5.147 million, grants to homeowners and other preservation activities for $9.374 million, and community economic development programs for $13.4 million. The current allocation for community economic development programs is percent of the 11 CDBG entitlement. If you included the operating 12 expenses for the Commerce Department, PIDC, and 13 PCDC, the percentage rises to 22 percent of the 14 community development block grant entitlement. 15 Again, let me emphasize the 16 Administration's support for Councilman Goode's 17 efforts in supporting community economic 18 development. However, it is important to understand the impact this bill would have on the overall CDBG program. If you assume that the percent 22 requirement includes operating expenses, the bill 23 would require an additional $1.771 million be 24 allocated for economic development programs. 25 Presently, there's not a great deal of flexibility 28 9/20/01 COMMERCE/ECON. DEV. BILL 000716 in the budget. Therefore, this is $1.771 million that has already been budgeted and approved for other community development activities. In order to meet the requirements of this legislation, other housing programs would have to be cut. At the current time, there is no available source of funds to increase the economic development budget. Now, subsequent to this testimony being prepared, I received the proposed amendment that changes the percentage from percent of the CDBG 12 allocation to 5 percent to be administered by CDCs. 13 This 5 percent is met in the current budget. We are 14 currently meeting that. Without any changes to the 15 existing budget, we would meet this legislation. 16 The funding that is flowing from Commerce to CDCs 17 actually exceeds 5 percent. 18 So I just wanted to put that out since my 19 testimony changes a little bit based on the change 20 with the amendment. 21

Councilman Nutter

I understand. 22

Ms. Mccolloch

Thank you for this 23 opportunity to speak to you this morning. If you 24 have any questions, I'd be happy to answer them. 25

Councilman Nutter

You're welcome. 29 9/20/01 COMMERCE/ECON. DEV. BILL 000716 The Chair recognizes Councilman Goode.

Councilman Goode

Thank you, Mr. Chairman. Actually, I did speak to the Mayor about this bill, which was introduced last November 16th, and asked for a position. He referred me to the Chief of Staff, who referred me to Jeremy Nowak, who said that basically, they had decided what to do about economic development activity yet, as community development efforts were being redefined in the neighborhood transformation. I appreciate the testimony on the bill as relates to percent of CDBG money going to 15 economic development. The concerns of the Office of 16 Housing were the same concerns that PACDC had. 17 Essentially, I took the amendment to this 18 bill to the committee of PACDC, which did respond to 19 this bill, and I think that your statement is true 20 that in this year, economic development funding to 21 CDCs is above 5 percent, but this is a year unlike 22 any other year, I think, because we put in a bill 23 for 25 percent of all CDC money, and traditionally, 24 CDC economic development activities have only been 25 funded at to percent. 30 9/20/01 COMMERCE/ECON. DEV. BILL 000716

Councilman Nutter

Thank you, Councilman. Ms. McColloch, I would only add to the record, as you went through the list of the dollars that go to certain programs, and I notice -- and I know you've made specific mention in your testimony that the current allocation for community economic development programs is percent of the CDBG 9 entitlement. 10 I would only add to the record that 11 presently, program delivery and administrative 12 costs, at $31 million, represents 43.7 percent of 13 the CDBG allocation. And I think that that's 14 important to add to the record on this particular 15 issue. You and I have had that discussion over a 16 period of years. 17

Ms. Mccolloch

Yes. 18

Councilman Nutter

And I think it's important in this context.

Ms. Mccolloch

Yes.

Councilman Nutter

Any other questions for Miss McColloch? (No questions.)

Councilman Nutter

Seeing none, thank you for your testimony. 31 9/20/01 COMMERCE/ECON. DEV. BILL 000716 Is there anyone else who wishes to testify on this bill? (No response.)

Councilman Nutter

Seeing none, that will conclude our public hearing. - - - 32 9/20/01 COMMERCE/ECON. DEV. PUBLIC MEETING

Councilman Nutter

We will now move into our public meeting. The Chair recognizes Councilman Goode for the purpose of making a motion regarding an amendment to Bill 000716, previously read into the record.

Councilman Goode

Thank you, Mr. Chairman. I move that the amendment to Bill 10 716, as read into the record and distributed to members of the committee, be adopted. (Duly seconded.)

Councilman Nutter

It has been moved and properly seconded with regard to the motion on the amendment to Bill 000716. All in favor will signify by saying aye. Any opposed, say nay. The ayes have it, the bill has been amended. The Chair recognizes Councilman Goode with regard to a motion on Bill 716, as amended.

Councilman Goode

Thank you, Mr. Chairman. I move that Bill 716, as amended, be reported out of committee with a favorable recommendation and that the rules of Council be 33 9/20/01 COMMERCE/ECON. DEV. PUBLIC MEETING suspended so as to allow for first reading at our Council session today. (Duly seconded.)

Councilman Nutter

It has been moved and properly seconded with regard to Bill No. 000716, as amended. All in favor will signify by saying aye. Any opposed, say nay. The ayes have it and the amended bill has been reported out of this committee with a favorable recommendation and a recommendation that the rules of Council be suspended so as to permit first reading at our next session. That concludes the business of the Committee on Commerce and Economic Development. The resolution, No. 000691, was held at the request of the sponsor, Councilman Goode. That will be heard at a another hearing at the call of the chair. Thank you very much. (Proceedings end at 9:47 a.m.) - - - 34 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee on Commerce and Economic Development of Thursday, September 20, 2001, are contained fully and accurately in the stenographic notes taken by me upon, and that this is a true and correct transcript of same. RE: Ordinance No.000716 _______________________________, Josephine Cardillo Registered Professional Reporter and Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)