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From YouTube: Committee on Appropriations 1-23-2019
Description
The Committee on Appropriations of the Council of the City of Philadelphia held a Public Hearing on Wednesday, January 23, 2019, at 10:00 AM, in Room 400, City Hall, to hear testimony on the following items:
180960 Resolution authorizing the Committee on Appropriations to conduct hearings to consider the impact of federal Qualified Opportunity Zones on the fair and equitable development of Philadelphia; and to thereby recommend impactful, responsive changes to the City's policies, procedures, and budget.
Committee on Appropriations
Chair: Councilwoman Maria D. Quiñones-Sánchez (7th District)
Vice Chair: Councilman Kenyatta Johnson (2nd District)
A
Regulations
and
program
gives
an
order.
I
particularly
want
to
thank
council
president
Clark
and
our
office,
our
tech
staff,
who
has
worked
from
the
very
beginning
and
putting
together
the
information.
The
briefing
that
was
held
yesterday
by
Alex
far
I
happen
to
sit
through
the
three-hour
CL
e
session.
They
had
a
couple
of
months
ago
and
there
are
probably
more
questions
and
there
are
answers
and
that's
why
these
public
discussions
become
hugely
important.
A
As
all
of
you
know,
our
goal
here
in
Council
and
council
has
been
very
focused
on
equitable
development,
mixed
income,
housing
and
really
bridging
the
gap
between
the
tale
of
two
cities
that
plagues
the
city
of
Philadelphia.
As
someone
who
lives
only
on
the
American
Street
empowerment
zone,
the
last
major
federal
designation
issued
by
the
Clinton
administration
I,
can
attest
to
the
unrealized
goals
and
objectives
that
that
program
promised
and
under-delivered
in
the
city
of
Philadelphia
and
so
on.
This
one.
A
This
I
look
at
the
opportunity
zone
as
American
Street,
the
empowerment
zone
on
steroids
and
therefore
I
think
it's
hugely
important
that
the
city
facilitate
incentivize
and
promote
equitable
development,
and
that
doesn't
happen
unless
we
are
intentional
in
our
goals
in
our
intent.
So
this
is
the
beginning
of
a
conversation.
A
Unfortunately,
the
federal
government
shutdown
has
caused
delays
on
regulations
and,
as
I
said,
it
is
okay
that
we
end
today
with
more
questions
and
answer,
but
that
we
tasked
ourselves
all
of
us
who
look
at
Community,
Development
and
equitable
development
as
an
important
value
for
the
city
that
we
tasked
ourselves
to
be
vigilant
and
purposeful
in
the
work
that
we
do
over
the
next
few
months.
With
that,
if
any
colleges
have
anything
to
say,
we
will
begin
Miss,
Anne
Fadiman,
oh.
B
Number
one:
eight:
zero:
nine
six
zero.
A
resolution
authorizing
the
Committee
on
Appropriations
to
conduct
hearings
to
consider
the
impact
of
federal,
qualified
Opportunity
Zones
on
the
fair
and
equitable
development
of
Philadelphia,
and
to
thereby
recommend
impactful,
responsive
changes
to
city's
policies,
procedures
and
budget.
C
Good
morning,
good
morning,
chair
can
jana
sanchez
the
members
of
the
committee
on
Appropriations.
My
name
is
anthon
I
am
the
Director
of
Planning
and
Development
for
the
city
of
Philadelphia
I'm
pleased
to
provide
testimony
on
resolution
number
one,
eight,
zero,
nine
six
zero
and
on
the
impact
of
federal,
qualified,
Opportunity
Zones
on
the
fair
and
equitable
development
of
Philadelphia.
As
you
know,
the
opportunity
zone
program
is
still
evolving
and
we
are
still
awaiting
key
details.
C
However,
we
know
enough
about
the
program
to
be
able
to
identify
key
goals
for
the
city,
its
neighborhoods
in
its
residents.
We
want
to
protect
existing
homeowners,
renters
and
businesses
from
displacement,
promote
Philadelphia's
opportunities,
own
neighborhoods
for
investment,
that
is
in
alignment
with
community
needs
identified
in
the
Philadelphia
2035
comprehensive
plan,
its
district
plans
and
in
adopted
neighborhood
plans.
We
want
to
attract
new
permanent
jobs
with
living
wages,
to
lift
our
residents
out
of
poverty,
and
we
want
to
provide
support
services
to
help
projects
and
businesses
and
Opportunity
Zones
become
investment
ready.
C
While
the
federal
regulations
do
not
mandate
benefits
for
local
communities,
we
do
expect
some
developers
will
want
or
need
city
assistance
to
advance
projects
located
in
opportunity
zones.
In
those
instances,
we
will
work
with
those
developers
and
the
district
council
person
to
ensure
that
there
is
a
social
impact
component
to
their
work.
C
If
you
want
our
land,
our
funding
or
other
types
of
assistance,
we
have
to
offer
we're
going
to
ask
for
something
from
you
that
will
benefit
the
community
and
its
residents.
This
stance
is
consistent
with
the
programs.
The
administration
and
council
have
already
advanced
together.
For
example,
in
addition
to
improving
facilities,
rebuild
is
a
tool
to
build
pathways
to
family,
sustaining
careers.
Small
businesses,
including
those
based
in
our
neighborhoods,
will
share
in
the
work
residents
will
be
included
in
the
process
of
determining
what
types
of
improvements
will
be
made.
C
Other
initiatives
are
similarly
benefiting
our
neighborhoods
and
their
residents.
Community
schools
are
offering
expanded
medical
care,
after-school
programming,
job
training
and
other
services.
More
than
2,000
more
children
are
in
quality,
pre-k
programs
and
we're
working
our
way
towards
5,000
we're
leveraging
cat
land
to
develop,
affordable
and
workforce.
Housing
developers
are
talking
to
us
about
how
they
can
use
the
affordable
housing
density
bonus
by
including
social
impact
requirements
in
our
RFPs.
We
are
ensuring
that
development
benefits
the
community
as
well
as
the
developer.
C
We've
also
implemented
programs
that
help
longtime
residents
remain
in
appreciating
neighborhoods
the
Federal
Reserve
Bank
of
Philadelphia
found
in
our
property
tax
relief
programs,
loop,
homestead
exemption
and
others
were
helping
long
time.
Homeowners
remain
in
their
homes.
The
basic
system,
repair
and
other
programs
are
helping,
low-income
homeowners,
many
of
whom
are
seniors,
make
the
repairs
needed
to
keep
their
homes
habitable,
we'll
be
kicking
off
a
loan
program
soon.
Actually,
we
already
have
to
help
homeowners
and
middle
and
neighborhoods
make
those
same
improvements
working
with
Council.
C
This
progress
in
our
neighborhood
is
because
we
have
made
meeting
community
needs
a
priority
when
a
developer
looks
to
us
for
help
to
take
advantage
of
we're
gonna
ask
what's
in
it
for
the
community
and
when
they
identify
a
plan,
we're
going
to
hold
them
to
it.
Opportunity
Zones
have
the
potential
to
attract
investment
to
neighborhoods
that
have
long
suffered
from
disinvestment
that
investment
has
the
potential
to
bring
jobs,
goods
and
services
to
communities
that
are
currently
lacking
in
those
services.
C
A
Thank
you
real
quickly
and
I
want
to
have
an
opportunity
for
our
tech
staff
to
share
some
of
the
data
steps
in
mapping
that
our
tech
staff
has
available
for
district
council
people
and
councilman
at-large.
To
specifically
look
at
some
data
sets,
but
before
we
get
there,
can
you
just
for
the
record
summarize
for
us,
the
decision-making?
There
went
from
the
federal
state
and
local
to
get
us
the
maps
that
we
are
before
we
go
to
the
maps.
That
kind
of
give
us
a
profile
of
what
we're
dealing
with
sure.
C
Sure
so
the
the
authority
to
designated
Nate
tracks
lies
with
the
state
government
in
the
governor's
office,
so
we
had
a
conversation
with
them.
I
want
to
say
probably
late
January
early
February
of
2018
and
the
state
sort
of
talked
to
us
a
little
bit
about
what
they
were
looking
for
in
the
in
the
tracks
that
the
city
would
send
up.
So
we
looked
at
some
key
factors.
C
C
The
state
had
impotant
posed
a
deadline
of
getting
information
to
them
by
the
12th
of
March
and
then
shortly
after
we
got
that
up
to
this
state.
They.
Let
us
know
that,
oh
by
the
way
they
had
asked
the
feds
for
an
extension,
but
we
had
so.
We
worked
with
the
state
to
get
the
90
down
to
82,
so
that
was
really
the
the
process
that
one
through
again
this
the
state
was
very
interested
in
areas
where
they
had
DCD
investment.
C
A
C
C
C
Quickly,
I
mean
just
very
quickly
so
there's
about
40,000
vacant
either
some
properties
either
lots
or
structures
in
the
city
only
about
8,000
of
those
are
actually
publicly
owned.
So
I
don't
know
the
specifics
about
the
ones
you're
asking
for,
but
I
think
it's
safe
to
assume
that
probably
twenty
to
twenty
to
twenty-five
percent
of
those
are
publicly
owned.
Given
that
these
are
distressed
tracts,
it
may
be
a
little
bit
more
than
that,
but
I
think
it's
it's
it's
probably
not.
C
Investment,
we
have
been
we've
been
participating
in
a
lot
of
roundtables
things.
In
fact,
you
know
mayor
Garcetti
from
LA
had
something
called
this
accelerator
for
America,
that
was
in
town,
and
we
participated
with
that
which
was
a
lot
of
different
mayor's
in
different
cities.
We've
also
been
coordinating
a
lot
with
Erie
in
the
state.
Who's
been
all
over
this
and
we've
been
looking
at
what
other
cities
are
doing.
I'll
be
honest:
it's
across
the
board.
Some
cities
are
having
a
big
push
saying
you
know,
the
doors
are
open.
C
Others
have
a
little
bit
of
a
more
nuanced
approach,
and
also
because
again,
it
was
the
states
that
had
the
ability
to
do
these
designations,
some
states
have
really
really
really
come
out
strong
as
marketing
their
state.
I.
Think
the
key,
though,
that
we've
heard,
is
based
on
the
Reg
so
far
right
in
order
to
take
full
advantage
of
the
tax
benefits,
the
investment
would
need
to
be
made
by
the
end
of
calendar
year
2019.
So
it's
really
about
do.
C
You
have
projects
that
are
really
ready
to
go
and
what
we've
heard,
particularly
from
some
smaller
mid-sized
cities,
is
they
don't
really
have
a
lot
of
project
or
shovel-ready
product
projects,
but
yeah
there's
a
bit
again,
it's
across
the
board,
where
we've
definitely
been
looking
to
see
what
other
folks
are
doing.
I.
D
A
So
let
me
so
the
council
president's
office
put
together.
Some
data
sets
her.
Will
you
explain?
We
wanted
to
make
sure
that
district
council
people
and
council
people
at
large
can
look
at
the
profile
of
the
zones
that
have
been
designated
in
their
district,
so
herb
you
want
to
go
through
the
datasets
that
and
again
they
they
are
available
to
district
council
people
and
to
the
community
folks
who
are
here
to
provide
any
additional
data
drops
as
part
of
the
profile
of
the
opportunity
zones.
Thank
you.
E
And
so
what
we're
going
to
do
is
just
walk
through
one
census,
tract
108,
which
is
in
Mantua
and
give
you
a
sense
of
going
down
and
drilling
into
the
data,
so
citywide,
race
and
ethnicity
is
it's
about
a
the
population
in
all
the
approved
census.
Tracts
is
about
eighty
percent
minority
and
twenty
percent
white.
E
But
if
you
go
down
into
tract
108
and
you
can
click
on
it
and
essentially
see
that
it
is
ninety
one
point-
four
percent
minority,
but
there's
a
distribution
there
and
also
a
graph,
and
so
that
particular
census
tract,
is
over
90
percent
minority.
Let's
go
to
household
income
for
that
census
tract
and
the
median
household
income
is
twenty
thousand
and
the
poverty
rate
is
46%
in
that
census
tract.
If
we
go
to
look
at
employment.
E
E
This
breaks
it
down
by
no
high
school
diploma,
all
the
way
through
graduate
degrees,
for
example,
in
this
census,
tract
there's,
six
hundred
and
fourteen
people
without
a
high
school
diploma,
and
what's
really
interesting,
there's
one
hundred
and
thirty-four
with
a
graduate
or
professional
degrees
which
I
think
reflects
the
changing
nature
of
Mantua.
Is
that
fair
to
say
you
wouldn't
have
seen
that
number
probably
10
years
ago
in
mântua
housing
tenure?
E
Is
it
divides,
renters
and
and
homeowners,
and
if
we
take
a
look
at
the
housing
tenure
there
what's
really
interesting-
and
this
is
true
and
a
lot
of
these
census
tracks,
even
though
they're
they're,
low-income
census
tracks,
the
amount
of
homeownership
is
pretty
high,
the
city
city,
why
is
41
1,
51
percent
home
ownership,
even
with
that
level
of
median
household
income
in
Nashua?
It's
44
percent
home
ownership
still
take
a
look
at
housing
value.
E
The
meeting
housing
value
is
72
thousand
dollars.
Actually
decreased
from
2011
I
believe
that
is
by
about
four
and
a
half
percent
and
let's
go
to
housing
cost
burden,
which
I
think
is
really
an
important
indicator
and
we'll
walk
you
through
this
a
minute.
A
cost
burden
house
spends
more
than
30%
but
less
than
50%
of
their
income
for
their
shelter.
Whether
that's
mortgage
taxes,
you
know,
utilities
a
severely
burden
household
spends
more
than
50%
of
their
income
on
their
housing.
So
if
we
look
at
renters
in
that,
can
you
go
back
up
the
renters?
E
29
percent
spend
more
than
30
but
less
than
50,
but
almost
20
percent
are
spending
more
than
50
percent
of
their
household
income
and
the
last
one
takes
a
look
at
vacancy
rate,
the
the
ones
preceding
this
have
to
do
with
the
people
and
and
the
data
around
their
income,
their
employment,
their
education,
etc.
This
is
sort
of
like
development
opportunities
and
in
this
particular
census,
tract
there's
759
vacant
parcels
of
which
8
our
buildings
and
councilman
Tom's
question
is
the
vast
majority
of
the
vacant.
E
Lots
and
vacant
structures
are
privately
owned
about
the
an
is
correct
about
8,000
or
publicly
owned,
but
the
vast
majority
are
privately
owned,
so
you
can
take
take
a
look
at
any
one
census
tract
and
get
this
detailed
demographic
and
socio-economic
data
about
that
individual
census
tract.
What's
clear,
though,
on
a
citywide
basis,
these
are
have
high
unemployment
rates,
and
the
vast
majority
of
the
population
is
minority,
so
we'd
be
glad
to
answer
any
questions.
A
President's
Office
and
tech
staff
have
put
together
all
of
this
information.
I.
Think
it's
important
as
this
discussion
involves
the
council,
particularly
District
Council
people
get
a
sense
of
their
profile
right
and
the
opportunities
I'm
gonna
go
back.
There's
no
question,
you
know:
ok,
I'm
gonna,
go
back
to
and
I
have
a
couple
of
questions
to
you
later
so,
and
one
of
the
things
that's
hugely
important
is,
as
I
mentioned
earlier,
the
shutdown
of
the
government
has
prohibited
the
full
regulations.
A
Can
you
quickly
speak
to
what
you've
seen
in
terms
of
these
opportunities
funds
that
have
been
established?
We
already
have
a
few
in
this
city
right
and
what
you
perceive
to
be
things
that
are
important
and
can
and
are
working
and
then
what
you
feel
are
some
of
the
unknown
still
as
we
move
forward
cuz
you're
like
a
couple
good
example.
C
Yes,
so
so
a
few
few
few
things
embedded
in
that,
so
one
is
yes,
the
final
regulations
have
not
come
out.
We
were
all
hoping
that
we'd
see
those
in
January
but
again,
given
the
the
government
shutdown,
it's
unknown,
when
we
will
see
those
final
regulations,
so
draft
or
interim
regulations
came
out,
I
want
to
say
around
October
ish
that
that
literally
asked
more
questions
than
answered.
If
you
read
those
regs,
the
regs
are
there's
a
lot
of
questions
actually
embedded
in
the
regulations
where
the
Treasury
is
saying.
Well,
what
do
you
think
about
this?
C
Do
you
think
we
should
do
it
this
way,
or
should
we
do
it
that
way,
which
I
have
to
say,
I
haven't
seen
that
in
a
lot
of
other
kind
of
interim
regs,
where
there's
a
lot
of
questions.
As
that
being
said
where
we
are
right
now,
it's
lunch
I
think
cleaner,
easier
to
understand
how
investments
work
in
a
real
estate
development
project
in
one
of
these
zones,
as
opposed
to
an
investment
in
a
business.
C
So
I
think
what
we'll
probably
see
until
final
regs
come
out
is
most
funds
being
interested
in
some
kind
of
real
estate
development
project,
as
opposed
to
a
business
investment
unless
they
can
really
figure
out
picking
sort
of
that
middle
ground
that
that's
gonna
work
for
them,
I
would
say
from
the
interest,
then
you
know
we've
heard
from
funds.
It's
it's
a
little
bit
across
the
board.
C
Some
are
very
large
funds
and
they
are
coming
in
to
Philadelphia,
because
Philadelphia's
been
able
to
to
tell
much
better
story
on
the
national
scene
as
far
as
room
to
grow
in
the
market
price
appreciation.
That
kind
of
thing
those
folks
are
generally
coming
in
looking
for
larger
scale
developments,
the
funds
that
are
forming
within
the
city,
some
of
them
literally,
are
just
a
couple
people
getting
together,
because
a
fund
can
be
self-certified
and
investing
in
a
smaller
scale
project.
C
You
know
local
business
development
and
job
creation,
in
particular
the
one
in
Wayne
Junction,
has
really
allowed
that
minority
developer,
who,
because
their
capital
stacks
have
been
so
complicated
in
the
past,
has
never
really
been
able
to
maintain
an
equity
ownership
in
any
of
their
projects.
This
vehicle
is
now
allowing
them
to
maintain
some
equity
ownership.
So
as
a
small
minority
developer,
they
can
start
to
build
that,
and
maybe
you
know
be
able
to
build
capacity
and
move
on.
So
we're
really
seeing
some
different
things
across
the
board.
F
You,
madam
chair
and
good
morning
to
you
and
first
let
me
start
by
thanking
my
colleague,
Councilwoman
Sanchez
up
for
this
hearing
council
president's
office
for
the
data
wanted
to
say.
Councilwoman
I
appreciate
it
when
you
open
giving
your
example
of
promises
me,
but
promises
that
and
your
experience
weren't
kept
in
the
empowerment
zone.
However,
you
know
talk
about
problems
that
you
would
love
to
have.
F
I
would
have
loved
to
have
had
the
opportunity
for
any
portion
of
the
Knife
council
matic
district
during
those
years
to
have
been
deemed
part
of
any
of
those
tax,
incentivizing
sort
of
zones
that
would
encourage
development,
but
for
so
many
years
bush-clinton
all
of
those
federal
programs,
neighborhoods
middle
neighborhoods,
portions
of
councilman
Jones's
area-
were
left
out
of
the
equation.
So
I
am
I
am
pleased
that
we
have
have
family
found
an
opportunity
for
census,
tracts
in
middle
neighborhoods
to
be
included
in
this
process.
F
With
that
in
mind,
I
want
to
ask
if
we
other
cities,
I've
heard
about
Erie,
Pennsylvania
and
Las
Vegas,
creating
what
they
are
calling
pitch
books,
and
you
all
may
have
have
heard
about
this
and
essentially
then
sort
of
pitching
their
opportunity
zones
to
developers
in
a
way
to
like
get
ahead
of
them
by
sort
of
shaping
the
conversations
about
what
kind
of
development
they
would
like
to
see.
Is
that
a
tool
or
strategy
that
we
are
engaging
in?
Yes?
So.
C
You'll
hear
that
a
lot
of
folks
are
doing
something
they
call
it.
Investment
prospectus
we
actually
sort
of
had
that
work
underway
before
Opportunity,
Zones
or
even
a
thing,
so
I
think
we
sent
notice
to
to
all
the
council
offices.
I
want
to
say
towards
the
end
of
like
sometime
in
December
that
we
added
a
tab
to
our
Philadelphia
delivers
dot-com
website.
That's
an
opportunity
zone
tab.
We
have
that
what
we
call
the
phase
one
rollout.
C
So
if
you
open
that,
what
you'll
see
is
some
general
information
about
what
opportunities
owns
are
but
you'll
see
the
map
of
Philadelphia
with
the
census
tracts
and
then,
if
you
click
on
the
census
tract,
it
will
have
some
of
the
similar
information
that
counsel
text
a
product.
But
it's
a
little
bit
different.
I'll
talk
about
population,
it
talks
about
the
amount
of
available
land.
It
talks
about
the
public
investment,
that's
happened
there,
the
private
investment
and
it
also
talks
about
change
in
the
market.
C
F
For
so
for
us,
for
me,
I
just
thought
it
was
very
important
to
just
note
that
these
are
some
of
the
tools
or
strategies
that
that
that
other
cities
are
using
and
for
us
to
put
on
the
record
exactly.
You
know
what
I,
what
our
actions
have
been
and
what
we
are
thinking
about
doing
in
the
future.
With
that
in
mind,
I
want
you
on
page
three
of
your
testimony.
F
You
mentioned
something
very
important
to
me
and
I'll:
ask
her
more
when
she
comes
up
because
Beth
really
talks
about
it
in
in
her
testimony,
and
that
is
ensuring
that
the
needs
of
the
community
and
that
their
voices
and
access
the
opportunities
to
participate
in
this
economic
investment
is
actually
included
in
and
and
I
love.
Your
question
in
your
testimony,
you
say:
what's
in
it,
for
the
community
and
Beth
goes
to
the
heart
of
it
when
she
starts
talking
about
community
benefits
agreements.
F
But
we
want
to
make
sure
that,
because
it's
not
mandated
that
you
think
about
its
use
as
a
part
of
this
process
and
ensuring
transparency
relative
to
whatever
kind
of
development
is
being
proposed
and
now
I'm
referring
to
our
project
information
form.
Now
that
is
being
used
as
a
tool
to
help
our
cos
and
other
community-based
organizations
to
be
informed
about
the
amount
of
jobs.
If
we're
talking
about
affordable
housing,
if
we're
talking
about
what
people
are
being
paid,
are
they
getting
retirement
security?
What
investment
opportunities
are
available?
C
So
I
think
one
of
the
key
things
to
point
out
about
this
quote
unquote
program
is
it's
not
like
low-income
housing,
tax
credits
or
new
market
tax
credits
or
store
credits,
or
something
like
that?
It's
not
subsidy
money,
investment
right,
it's
simply
a
tax
deduction
or
a
tax
break.
If
you
will
so
be
that
as
it
may,
as
we
know,
a
lot
of
development
in
Philadelphia
often
needs
some
type
of
assistance
right
and
so,
for
example,
if
you
know
that
may
need
some
zoning
relief
or
it
may
need
some
other
kind
of
subsidy.
C
So
if
it
needs
housing
dollars,
you
know
those
those
dollars
come
with
certain
income
limits
and
restrictions.
So,
if
we're
having
a
conversation
with
a
developer,
that's
doing
residential,
we
may
talk
to
them
about
doing
conform.
Excuse
me
a
component
of
affordable
and
working
with
them
to
see
if
we
can
help
facilitate
that,
either
through
investment
or
through
the
mixed
income.
Housing
bonus
that
that
council
passed
in
the
last
session,
for
if
you
need
some
kind
of
the
below
market
financing,
that's
offered
by
PID
C.
F
Things,
let
me
know
we
just
interject
here
of
the
eighty
two
designations.
How
many
of
them
do
you
think,
or
do
we
even
know
or
have
we,
you
know
even
even
determine
if
the
answer
is
as
possible,
do
we
know
how
many
of
them
will
potentially
need
rezoning
or
some
kind
of
variance
or
not
just
sure
right
now,
because
the
projects
haven't
moved
for
right.
C
So
I
think
you
know
there's
a
couple
ways
to
answer
that
one.
We
don't
know
exactly
what
the
specific
projects
will
be
like,
but
two
you
know
one
of
the
second
phase
we're
working
on
and
the
website
that
we
want
to
come
and
have
a
little
more
interaction
with
Council
before
we
put
that
live
is
looking
at
how
things
are
currently
zoned.
What
was
recommendation
in
the
district
plan
or
the
Comprehensive
Plan
and
talked
to
you
about
what
you're
interested
in
in
moving
that
forward?
C
Or
you
know
what
are
some
of
your
concerns
around
that
I
think
that's
a
conversation
to
be
had,
but
those
are
things
that
we
are.
We
are
definitely
looking
at.
You
know
we
again
as
part
of
identifying
these
tracks.
It
was
important
for
things
like
access
to
transportation,
so
you
know,
if
had
kahan,
going
conversation
about
promoting
more
dense
development,
around
transportation
and
and
we've
had
conversations
about
what
do
we
want?
C
You
know
we
want
to
continue
to
promote
home
ownership
and
and
those
kinds
of
things,
and
so
those
are
I,
think
those
are
dialogues
that
need
to
to
happen
and
that
we
look
forward
to
having
with
you
guys,
probably
in
the
relatively
near
future,
we're
kind
of
fine-tuning
our
information.
Because
when
we
come
to
you,
we
want
to
make
sure
that
it's
accurate.
But
that's
something
we
need.
My.
F
Final
comment
and
to
you
is
when
I
talked
to
residents-
and
these
were
two
questions
that
I
just
received
from
residents.
As
this
issue
has
been
in
the
news
lately,
I'm
thinking
about
long
crest
and
Lawndale,
we
have
the
old
bicycles,
building
the
old
bicycles
built
in
there,
and,
unlike
some
of
my
other
colleagues,
we
have
large
swaths
of
industrial
land
and
other
vacant
spaces
to
be
developed.
F
The
ninth
Council
Matic
district
is
landlocked,
so
these
spaces
in
our
area
are
very
much
rare,
but
we
have
the
old
fell
school
building
in
somerdale
and
in
Oxford
Circle,
and
so
their
question
to
me
is
shirelle.
What
kind
of
opportunities
for
residents
lay
people
and
Doyen
so
now
they're
thinking
about
this
co-opting?
F
How
can
community-based
organizations
will
it
be
possible
to
pull
revenue
to
participate
or
invest
in
anyway
and
I
said
to
them?
Nothing
beats
a
failure,
but
a
try.
It
is
something
we
need
to
put
on
the
minds
of
the
administration.
I
would
share
with
my
colleagues,
but
we
should
be
as
innovative
and
creative
as
we
possibly
can
to
ensure
access
to
equity
and
opportunity
for
residents
who
come
from
all
walks
of
life
who
are
in
these
80
to
a
regions.
F
C
I
mean
just
really
quickly
again:
I
just
want
to
say
a
couple
of
things
about
that.
One
is
the
only
dollars
that
can
be
invested
that
get
the
tax
benefits
I
have
to
be.
They
have
to
come
from
capital
gains
right.
You
can't
get
these
tax
benefits
unless
the
actual
dollars
you
invest.
It
come
from
capital
gains.
That
being
said,
the
example
of
the
project
and
we
injunction,
they
have
some
opportunities
on
funds
in
them.
That
came
from
capital
gains
gains,
but
they
also
did
some
crowdfunding.
C
That
was
from
the
community
to
give
an
opportunity
for
the
community
to
have
us.
Very
you
know
a
small
piece
of
equity
in
it,
we're
not
talking
big
big
equity
or
big
dollars,
but
it's
an
opportunity
and
I
think
those
are
the
kinds
of
things
that
we're
very
much
interested
in
trying
to
figure
out.
How
do
we
pursue
them
as
a
way
for
us
to
scale
those
kinds
of
efforts
up.
A
No
absolutely
and
that's
why
it's
important
that
we
begin
to
have
these
conversations,
because
you
know
we're
getting
calls
about
because
we
have
to
keep
in
mind.
This
is
a
tax
incentive
program
designed
after
billion
dollar
tax
cut,
but
the
federal
government
gave
folks
right
so
now
people
have
this
capital
gains
as
a
result
of
tax
policy
and
they
have
to
figure
out
where
they
park
it
right
and-
and
we
want
to
see
the
investments
happen,
how
they
park.
It
will
impart
be
shaped
by
the
opportunities
we
create
and
ensuring
that
kind
of
equitable
development.
A
C
It
was
kind
of
mental
neighborhoods,
but
I
think
you
know
we
got
clear
guidance
from
one
of
the
few
areas
where
we
got
some
clear
guidance
was
from
the
federal
government
in
the
state
saying
because
again,
this
isn't
subsidy
money
right.
So
it's
it's
just
a
it's
a
tax,
it's
a
tax
break
to
the
investor.
So,
really,
frankly,
the
projects
that
this
money,
the
investors,
are
likely
to
look
at
our
projects.
That
would
have
already
been
feasible
that
it
will
take
a
good
project
and
make
it
make
it
better.
C
C
So
I
think
honestly,
we'll
probably
see
a
lot
of
mixed
it
useful,
but
we'll
see
a
lot
of
residential.
We
may
see
some
office
some
hotel.
It
works
pretty
well
residential
because
it's
got
to
be
a
ten-year
hold,
so
it
works
pretty
well
with
residential
works,
pretty
well
with
a
hotel.
You
know
our
office
market
continues
to
be
soft,
so
we
maybe
see
some
creative
things
like
that.
C
But
it's
the
way
based
on
the
existing
interim
regs.
The
way
you
would
get
there
is
very,
very
convoluted
and
that's
a
risky
kind
of
investment
to
do
something
like
that.
So
I
don't
know
that
one!
Never
in
Philadelphia
that
we're
necessarily
going
to
exceed
that
type
of
investment,
I
think
we're
gonna,
see
more
of
the
residential
with
some
kind
of
other
component,
be
a
hotel
or
retail
or
commercial.
Something
like
that
and.
D
So,
just
to
him
clear,
the
population
of
the
United
States
is
325
million
right
now
and
we
received
one
percent
basically
of
the
opportunity
zones
that
the
US
government
granted
right.
You
said
there
was
87
60.
We
got
eighty
two
of
them
yet
our
populations,
a
half
a
percent,
so
we
did
pretty
well
in
this
allocation.
We
did
just.
D
Was
good
because
we
got
1%
of
the
allocation
based
on
population
of
a
half
a
percent?
Having
said
that,
is
there
an
opportunity
to
work
with
the
Commerce
Department
and
target
50
of
our
suburban
companies
and
figure
out
some
of
these
opportunities
owns?
Could
we
suggest
that
they,
the
owners
of
these
companies,
come
into
the
city?
Build
an
office
building
for
their
people,
with
the
tax
benefits
offset
some
of
their
objections
to
coming
into
the
city
and
attract
them
as
a
business
tool
to
come
into
the
city?
C
A
C
Essentially,
if
you
once
you
realize
the
capital
gain,
you
have
a
hundred
eighty
days
to
invest
in
an
opportunities
own
fund.
Then
that
fund
has
180
days
to
invest
in
a
project
that
project
has
30
months
to
then
you
then
have
30
months
to
double
the
basis
that
you've
invested
in
that
project.
That's
a
little
bit
slightly
nebulous
because
part
of
it
is.
You
could
have
a
plan
to
make
sure
so,
but
yeah
these
these
pretty
much
given
that
time
frame
how
long
it
takes
to
get
through
entitlements,
get
get
drawings
together.
C
All
of
that,
if
you're
pretty
much
looking
at
a
project,
that's
if
it's
not
already
ready
to
go
in
County
or
19,
it
will
have
been
fully
entitled
and
permitted
and
ready
and
ready
to
start
construction
in
2020
or
so
yeah.
It's
a
rough
based
on
the
legislation
right
now.
It
is
a
pretty
tight
window
if
you
want
to
take
full
advantage
of
all
of
the
tax
benefits,
if
you're
just
interested
in
the
sort
of
the
big
kicker,
which
is,
if
you
invest
and
I'm
just
gonna,
make
it
a
little
simple.
C
A
We're
gonna
we're
gonna,
take
some
testimony,
one
of
the
things
we
talked
about
with
the
administration.
Again,
we
appreciate
the
administration's
willingness
to
have
these
conversations
with
us.
As
this
is
an
evolving
processes,
will
the
administration
be
putting
forth
recommendations
for
regulations
when
the
government
opens
up
again
officially
on
the
record
I
think
one
of
the
conversations
I
had
with
the
with
the
administration
is:
if
we
leave
it
open
and
we
don't
articulate
what
what
is
important
for
the
city,
then
whether
it
gets
it
makes
it
to
the
regulation
or
not.
A
It
does
send
a
signal
about
the
types
of
projects
and
investments
we'd
like
to
see
and
the
82
arm
census
tracts
and
what
we're
looking
for
right,
because
if
people
want
shovel
ready
or
almost
trouble
ready
projects,
then
we
have
an
opportunity
to
shape
that
right.
So
people
can
get
maximized
investment.
Will
we
be
putting
something
officially
on
the
record
yeah.
C
A
Around
but
we
do
have
some
other
testimonies.
This
is
the
beginning
of
a
conversation,
a
public
discussion,
so
we
expect
that
stuff
will
evolve.
I'm
going
to
call
the
second
panel
Beth
McConnell
Brittany,
Forman,
Andy,
Richland,
Jeff,
Hornstein
and
Andrew
fresh
call
for
the
testimonies
that
are
available
in
writing.
They've
been
circulated
to
the
committee
Beth
McConnell
Britney
Foreman
and
beer
epsilen,
Jeff,
Hornstein
and
Andrew
fish
cough
after
that.
A
G
For
instance,
given
the
significant
tax
benefits
that
the
projects
will
get,
we
could
modify
the
ten
year
tax
abatement
by
requiring
that
developments
offer
some
percentage
of
affordable
homes
or
commercial
space.
In
order
to
qualify
for
that
abatement,
some
have
suggested
that
the
the
States
Constitution
uniformity
clause
would
prohibit
having
different
abatements
in
one
geographic
part
of
the
city
from
another.
But
the
city
of
Pittsburgh
has
seven
different
abatement
programs
with
a
variety
of
eligibility
requirements
and
abatement
values.
G
So
there's
certainly
some
precedent
in
the
state
for
nuance
in
abatement
policy
that
we
could
either
apply
here
or
seek
permission
from
Harrisburg
to
apply
here.
Additionally,
under
our
zoning
powers,
the
new
mixed
income,
housing
policy
that
council
approved
in
2018
and
I
think
council
for
the
support
and
Councilman
Stan,
particularly
for
the
leadership
on
that,
could
be
strengthened
in
opportunity
zones
by
making
it
a
mandatory
program
and
by
requiring
that
all
affordable
units
be
constructed
on-site
rather
than
having
a
pay
in
lieu
to
get
out
of
the
requirement.
G
Now,
as
we've
heard,
the
maximum
value
to
investors
is
for
projects
that
are
ready
to
go
in
2019,
but
they
will
still
receive
value
if
the
projects
go
in
2020,
2021,
2022,
just
perhaps
fewer
years,
but
still
a
great
tax
incentive.
I
think
we
also
can
do
a
better
job
here
locally,
at
providing
training
and
technical
assistance
to
local
community
groups
to
negotiate
community
benefits
agreements
with
developers.
G
G
We
don't
have
any
programs
for
small
businesses,
so
a
targeted
program
that
could
help
a
business
through
a
combination
of
some
rent
property
tax
relief,
but
also
combined
with
technical
assistance
to
help
them
boost
their
revenue
that
could
increase
business
stability
and
the
opportunity
zones
and
build
wealth
for
small
entrepreneurs,
you're
all
familiar
with
the
basic
systems
repair
program,
which
is
a
great
program
for
homeowners.
We
don't
have
anything
like
that
for
small
businesses
that
need
investment
inside
their
stores
for
the
health
and
safety
and
well-being
of
the
employees
and
the
and
the
customers.
G
So
these
are
policies
and
programs
that
would
make
sense,
even
if
there
were
no
opportunities
owns
as
a
way
to
create
a
more
equitable
city
by
ensuring
that
those
who
are
typically
hurt
and
left
out
of
growth
see
some
benefit
from
a
changing
City.
We
look
forward
to
working
with
Council
and
the
administration
to
achieve
that
goal,
and
thank
you
again
for
the
opportunity
to
testify.
Thank.
A
H
Good
morning,
Eunice,
Sanchez
and
members
of
the
committee
on
Appropriations,
thank
you
so
much
for
inviting
us
all
to
join
this
important
discussion.
My
name
is
Brittany
Forman
I'm
a
director
at
he
consults
solutions
and
I
hope
to
coordinate
the
internal
opportunity
zone.
Team
and
I'm
excited
to
be
here
today
to
share
some
of
our
insights
onto
the
program.
A
H
Currently,
eConsult
has
several
clients
that
are
either
have
opportunities.
Zones
are
in
opportunity
zones
or
trying
to
develop
within
opportunity
zones.
We're
working
with
developers
who
need
market
analyses
to
verify
that
their
projects
could
work
in
that
specific
market.
We're
helping
developers
calculate
the
benefit
of
the
tax,
deferral,
reduction
or
elimination
in
various
scenarios
where,
in
addition,
we're
working
with
national
property
owner
who
has
sites
and
opportunity
zones
across
the
country
and
I
think
most
relevant
to
today.
H
We
are
working
with
several
municipalities
and
community
development
organizations
in
the
region,
including
Wilmington
Delaware
city
of
Chester,
borough
of
Potts
town
in
Pennsylvania,
as
well
as
with
North
Broad
Renaissance
right
here
in
Philadelphia,
so
I
believe
it's
helpful
to
start
with
a
bit
of
context
of
and
to
help
clarify
what
this
program
is
and
what
it
is.
Not.
The
concept
of
using
the
capital
gains
to
invest
in
distressed
areas.
H
It
was
introduced
in
2015
by
the
economic
innovation
group,
a
bipartisan
public
policy
organization,
and
while
it
did
pass
in
the
tax
cut
and
Jobs
Act
in
2017,
it
was
based
on
prior
legislation
championed
by
Senators
Cory
Booker
and
Tim
Scott.
As
well
as
representatives,
Tiberio
and
kind,
and
so
at
its
core,
it
is
a
bipartisan
effort
to
provide
tax
incentives,
to
invest
and
previously
forgotten
communities
and
on
the
flip
side
of
what
it's
not
it's
important.
To
remember
that
this
is
not
a
typical
government
program.
It's
not
a
program
where
money
comes
through.
H
A
specific
amount
of
money
comes
through
the
federal
government
pass-through
state
to
the
local
government.
That
has
you
know
a
specific
purpose
and
to
going
to
a
specific
location,
when
has
requirements
and
reporting
requirements
around
it?
That's
not
what
this
is,
which
means
that
government
personnel
and
elected
officials
have
a
very
little
say
on
where
these
investments
end
up
beyond
the
local
zoning
ordinances
and
restrictions.
H
In
fact,
there
are
a
number
of
role.
There's
a
excuse
me.
The
number
one
role
of
government
should
be
to
attract
investment
in
ways
that
maximizes
local
goals.
In
other
words,
governments
got
to
figure
out
ways
to
get
investments
that
do
generate
the
spillover
benefits
for
the
residents
and
businesses
who
are
already
there,
but
it's
essential
to
do
so
in
a
way
that
doesn't
increase
red
tape,
and
this
can
be
done
by
focusing
on
three
strategies.
H
Secondly,
municipalities
should
develop
a
coordinated
strategy
amongst
all
the
community
development
stakeholders
to
identify
what
the
local
goals
you
were
gonna
prioritize
or
which
local
goals
you
will
prioritize
and
finally,
municipalities
should
align
their
resources
to
demonstrate
that
the
government
supports
that
Virginia's
own
investments
in
the
first
place,
and
this
can
be
through
infrastructure
improvements,
near
development
sites,
grants
financing
tools
or
even
streamlining
the
development
review
and
permitting
process
so
from
our
client
work
in
knowledge
of
real
estate
markets.
We're
seeing
a
number
of
trends
that
I
wanted
to
share
with
you
today.
H
First,
there's
a
significant
knowledge
gap
between
the
investment
world
and
the
Community
Development
world.
The
investment
world
is
moving
fast.
They
understand
this
incentive,
they
have
set
up
their
funds
and
they're
ready
to
move.
The
Community
Development
world
is
moving
much
slower,
we've
been
out
and
around
talking
with
organizations,
elected
officials
and
honestly
they're
still
trying
to
come
to
grips
with
what
this
program
means
and
what
it
means
for
their
communities,
and
part
of
that
is
because
there
are
all
the
regulations
are
not
out.
Yet.
H
As
we've
heard
earlier,
the
early
movers
are
projects
that
would
have
been
developed
in
the
absence
of
these
tax
incentives
and
projects
that
are
in
hot
real
estate
markets,
and
that's
not
to
say
it
may
be
that
in
the
future.
But
that's
who
is
moving
right
now
and
it's
likely
that
most
of
the
opportunity
funds
will
never
be
publicized
and
it
will
therefore
be
hard
to
track
at
a
local
level
so
of
the
funds
that
are
publicly
advertising
right
now.
H
H
However,
there
are
some
funds
that
we're
seeing
that
are
have
social
impact
goals
and
they're
being
backed
by
foundations.
The
Kresge
and
and
Rockefeller
Foundation's
just
committed
25
million
to
support
social
impact
organizations
that
are
ready
to
set
up
funds.
And
finally,
there
are
some
banks,
including
PNC,
that
are
setting
up
funds
to
help
fulfill
their
CRA
requirements
and
so
from
a
purely
economic
perspective.
H
Additional
investment
in
distressed
communities
is
a
good
thing.
It's
a
positive
thing,
however,
like
all
complex
public
policy
issues,
the
Devils
in
the
details,
it's
all
about
the
implementation
process,
and
so
a
number
of
key
questions
remain.
You
know
how
these
projects
be
reported,
how
the
outcomes
be
tracked,
and
a
lot
of
that
is
not
known
right
now
and
hopefully,
we'll
be
clear
with
the
next
round
of
regulations.
H
I
Good
morning,
chairwoman,
quinones
sanchez
members
of
the
committee
and
other
members
of
City
Council.
Thank
you
for
the
opportunity
to
testify
regarding
resolution,
one
eight
zero,
nine
six,
zero
I'm
Andrew
first
off
executive
director
of
the
Philadelphia
local
initiative
support
corporation,
also
known
as
Liske
I,
would
like
to
present
testimony
regarding
the
impact
of
federal,
qualified
Opportunity
Zones
on
the
fair
and
equitable
development
of
Philadelphia.
I
We
believe
the
opportunity
zones
initiative
has
potential
to
attract
new
investment
capital
into
lower-income
urban
and
rural
communities.
However,
this
potential
for
new
investment
comes
with
significant
risks.
These
are
lack
of
federal
oversight,
may
lead
to
program
abuses,
opportunities,
own
incentives,
focus
on
back
end
financial
returns,
rather
than
on
best
investments
that
may
be
designed
to
result
in
community
impacts
opportunities.
Own
investments
might
aid
in
the
gentrification
and
displacement
of
residents
and
businesses
and
opportunities
own
communities
opportunities.
Own
incentives
might
lead
to
demolition
of
occupied
and
viable
properties,
as
well
as
historic
ones.
I
In
order
to
build
new
and
larger
properties
opportunities,
own
incentives
might
lead
to
over
investment
and
highly
land
might
produce
highly
localized
real
estate
bubbles
in
certain
asset
classes,
as
a
CDFI
that
anticipates
creating
qualified
opportunities.
Own
funds
list
has
specific
values
and
guidelines
for
its
own
investments.
That
should
ensure
that
we
do
not
add
to
these
risks.
We
want
to
participate
in
the
financing
of
smart
in
of
impactful
housing
and
economic
development
projects
that
provide
an
advantage
for
underserved
communities
to
access
economic
opportunity.
I
Smart
development
brings
the
right
mix
of
development
to
support
the
long-term,
stable
economic
growth
of
a
community,
avoiding
over
build
or
development
bubbles.
Inclusive
development
ensures
that
all
income
levels
within
these
communities
will
benefit
from
the
economic
progress
of
the
community.
Finally,
we
define
impact
development
as
projects
that
offer
specific
advantages
to
underserved
communities
and
populations.
I
These
are
lists
aspirations,
I
can't
state
at
this
time
whether
we
have
raised
any
funds
from
investors,
nor
when
we
may
have
funds
available
for
Philadelphia,
as
with
other
prospective
opportunity
fund
managers,
we
are
awaiting
additional
regulatory
guidance.
I
will
state
that
we
hope
to
form
a
family
of
regionally
focused
funds.
We
think
these
funds
would
be
attractive
to
investors
because
they
would
provide
localized
impact.
We
believe
it
is
likely
that
some
local
investors
will
share
our
mission
based
focus
on
smart,
inclusive
and
impactful
investments.
I
As
for
what
City
Council
and
the
administration
can
do
to
alleviate
these
risks,
I
will
echo
recommendations.
You've
heard
previously.
First,
you
can
try
to
mitigate
the
risks
through
the
powers
of
zoning
and
land
use
regulation.
These
are
not
foolproof,
but
you
have
the
ability
to
ensure
that
local
zoning
does
not
further
incentivize
displacement
or
over
investment.
More
restrictive
zoning
and
Opportunity
Zones
will
allow
the
city
and
community
groups
to
negotiate
with
developers
to
minimize
displacement
and
discourage
development
that
does
not
benefit
neighborhoods.
I
A
careful
and
transparent
property
disposition
policy
can
ensure
that
this,
the
city
does
not
make
its
own
property
available
to
developments
that
displace
residents
or
lead
to
a
local
real
estate
bubble.
Secondly,
the
city
can
try
to
proactively
encourage
positive
impacts
that
align
with
city
policy
priorities.
This
could
include
inclusionary
zoning
or
revised
transit,
oriented
development,
overlays
that
offer
significant
density
bonuses,
but
which
also
require
anti
displacement
and
inclusionary
practices.
The
city
could
form
land,
develop
development,
partnerships
and
opportunities
owns,
as
it
has
done
previously
in
the
Navy
Yard
swear.
I
This
may
include
joint
ventures
where
public
agencies
control
some
parcels
and
private
entities,
own
adjacent
parcels
and
where
the
combined
parcels
could
support
high-impact
development.
I
will
add
that
some
community
partners
have
approached
list
about
financing
private
property
acquisitions.
That
would
be
for
the
immediate
purpose
of
removing
properties
and
Opportunity
Zones
from
the
speculative
market.
The
eventual
goal
would
be
to
preserve
or
to
redevelop
such
properties
to
meet
identified.
Community
needs
such
as
affordable
housing
list
standard
financing
does
not
allow
for
such
community
land
banking.
I
However,
we
recognize
the
tremendous
need
for
this
and
we
are
exploring
raising
patient
and
low-cost
funds
that
would
allow
us
to
assist
with
such
community
preservation
efforts
if
such
efforts
could
align
with
City
Land
Development,
this
could
increase
the
positive
impact
of
opportunity's
own
investments.
As
a
third
strategy
has
already
stated,
the
city
can
work
with
p
IDC
and
other
partners
to
market
local
Opportunity
Zones
to
investors,
whose
strategies
align
with
city
priorities.
I
If
the
city
wants
to
encourage
more
investments
in
workforce
housing,
it
will
need
to
market
available
opportunities
to
investors
who
understand
residential
housing
markets.
If
the
city
wants
to
attract
investment
to
overlooked
neighborhoods,
it
may
need
to
develop
a
market
prospectus
that
highlights
the
financial
returns
and
social
impacts
that
investments
could
yield
in
those
neighborhoods.
I
Finally,
I
would
like
to
address
one
last
risk
that
is
probably
obvious
to
some
members
of
city
council.
There
is
a
risk
that
local
and
state
governments
may
overreact
to
opportunity
zone
designations
and
over
allocate
scarce
public
resources
to
opportunity
zones
to
the
detriment
of
other
areas
of
the
ministry,
Nissa,
palate
or
state.
If
I
may
speak
briefly
to
this
last
risk,
I
would
simply
remind
us
all
that
Philadelphia
is
a
large
city
and
most
of
its
neighborhoods
and
commercial
areas
are
not
in
designated
opportunity
zones.
Some
neighborhoods
are
only
partially
included
in
zones.
I
B
I'm
6
1
I,
don't
often
feel
short,
but
this
chair
and
table
combination
is
accomplishing
that
for
me,
Thank
You,
chairwoman,
Sanchez
and
members
of
the
committee.
My
name
is
Andy
Rocklin
I'm,
a
managing
director
at
reinvestment
fund,
a
large
community
development
financial
institution
based
here
in
Philadelphia
and
working
nationally.
Thank
you
for
the
opportunity
to
testify
here
today.
As
you've
heard.
Opportunity
zones
are
a
relatively
simple
tool:
free
of
the
kinds
of
restrictions
that
characterize
many
federal
development
funding
sources,
and
this
is
a
strength
in
many
respects.
B
The
flip
side
of
this
simplicity,
though,
is
that
opportunity
zones
are
only
lightly
targeted.
They
do
not
need
to
evidence
any
particular
positive
impact
or
the
avoidance
of
any
particular
negative
impact.
You've
already
heard
a
great
deal
about
the
diverse
nature
of
the
opportunity
zone
census
tracts,
so
I
won't
belabor.
B
The
first
is
our
market
value
analysis,
which
I
know
is
a
tool
familiar
to
many
on
city
council,
the
MVA
measures,
the
relative
strength
of
the
real
estate
markets
across
the
city.
The
other
is
our
displacement
risk
ratio,
a
metric
designed
to
indicate
the
risk
that
existing
residents
will
be
displaced
due
to
rising
property
values
in
a
given
census
tract
a
critical
measure
of
the
broad
phenomenon
we
call
gentrification
by
layering
these
together.
B
The
reason
that
Opportunity
Zones
may
struggle
in
some
places
on
their
own
to
incent
development
is
that
an
opportunity
zone
offers
only
relatively
modest
subsidy.
You
heard-
and
fiddling
mentioned
this
earlier
and
I'll-
try
to
quantify
it
a
little
bit.
Compare
it,
for
example,
to
the
level
of
subsidy
offered
by
new
market
tax
credits
on
a
given
50
million
dollar
project.
An
allocation
of
new
market
tax
credits
could
produce
something
on
the
order
of
10
million
dollars
in
new
effectively
free
equity
capital
to
the
project.
B
An
opportunity
zone
designation
for
that
same
project
by
contrast,
might
only
produce
something
on
the
order
of
2
million
of
new
equity
based
on
the
same
cash
flows
in
the
project.
If
we
take
these
aspects
of
Opportunity
Zones
together
their
lack
of
requirements
that
tailor
them
to
projects
with
positive
social
impacts,
the
wide
spectrum
of
conditions
on
the
ground,
ineligible
census
tracts
and
the
relatively
modest
subsidy
that
an
opportunity
zone
offers,
we
can
begin
to
get
a
sense
of
their
limitations.
B
Simply
put
Opportunity
Zones
are
unlikely
to
radically
change
the
nature
of
development
in
any
given
place,
but
rather
to
nudge
development
further
and
faster
in
the
direction
it
was
already
headed.
In
this
context,
opportunity's
own
benefits
are
unlikely
to
naturally
flow
to
the
highest-end
Pot
impact
projects
per
se,
rather
they're
likely
to
vote
flow
to
projects
that
offer
the
best
risk
adjusted
returns
like
the
private
capital
markets.
They
are
intended
to
reflect
and
weighted
heavily
toward
projects
and
strong
census
tracts
and
backed
by
bigger
developers
that
are
known
commodities.
B
While
relatively
few
concrete
projects
utilizing
opportunities
on
financing
have
yet
been
made
public.
We
can
already
begin
to
see
this
trend
in
action
in
Baltimore,
for
example,
where
we
also
work.
The
first
announced
opportunity's
own
project
was
not
a
health
center
or
affordable
housing,
but
rather
a
large
commercial
development,
backed
by
an
institutional
developer
and
anchored
by
an
office
complex
chain,
restaurants
and
an
LA
Fitness
gym.
This
isn't
a
bad
project
by
any
means,
but
nor
is
it
likely
to
positively
contribute
to
equity
in
the
community.
B
In
the
way
we
imagine
oszi
projects
might
and
should,
as
we
think,
about
how
to
respond
to
these
kinds
of
concerns
at
the
local
level.
We
I
believe
that
carrots
are
more
likely
to
be
impactful
than
sticks
both
because
there
is
limited
ability
to
regulate
opportunities
activity
at
the
local
level
as
you've
heard,
and
also
because
attempts
to
regulate
the
program
could
impede
one
of
its
chief
values,
which
is
that
opportunity
zones
are
constructed
broadly
enough
to
meaningfully
scale.
B
This
could
mean,
for
example,
offering
additional
incentives
in
the
form
of
low-interest
or
subordinate
loans
to
developments
and
Opportunity
Zones
that
demonstrate
measure
immeasurable
positive
benefits,
say
including
health
center
geared
to,
inter
include
low
in
here,
to
serve
low-income
people.
Similarly,
local
incentives
could
support
projects
that
are
active
that
actively
mitigate
potential
downsides
of
opportunity
zone
development
in
tracts,
where
that's
a
primary
concern,
including,
for
example,
as
you
heard
Beth
mentioned,
lower
cost
housing
and
development
market
experiencing
a
lot
of
price
pressure.
B
I
should
note
that
PID
C
working
with
and
and
with
the
Commerce
Department,
has
commendably
already
found
ways
to
construct
exactly
these
sorts
of
incentives
using
some
of
their
own
resources.
But,
to
be
frank,
the
scale
at
which
they're
able
to
operate
without
broader
public
support
is
limited.
As
such
incentives
are
developed,
it
will
be
important
to
help
us
use.
Data
to
guide
deployment,
for
example,
is
the
map
I
referenced
earlier
makes
clear.
B
The
worry
that
an
opportunity
zone
might
contribute
to
rapid
gentrification
is
a
much
greater
concern
in
some
census,
tracts
than
others
in
a
neighborhood
where
affordability
is
at
risk.
Incentives
should
prod
developers
to
preserve
it,
but
in
neighborhoods
without
market
pressure,
where
disinvestment
is,
if
anything,
a
greater
risk,
the
incentive
should
be
to
stabilize
properties
and
eliminate
blight.
I
would,
as
an
aside
note,
that
one
excellent
vehicle
for
doing
the
latter
is
workforce
housing,
an
investment
type
you've
heard
others
mentioned,
and
that
I
believe
may
be
particularly
well-suited
for
opportunity's
own
support
for
various
reasons.
B
Finally,
if
the
city
is
going
to
incentivize
certain
opportunities
on
projects,
it
would
also
be
useful
to
couple
that
incentive
with
some
data
collection
protocols.
Another
weakness
of
the
opportunity
zone
legislation
is:
it
doesn't
require
opportunities
on
projects
to
report
much
about
their
nature
or
operations,
so
it
will
be
difficult,
absent
local
action
to
reasonably
assess
their
impact.
A
local
intervention
presents
an
opportunity
to
remedy
remedy
this
shortcoming
as
well.
Thank
you
very
much
again
for
the
opportunity
to
testify.
A
Thank
you
to
all
of
you
real
quickly
and
pass
over
to
councilman.
Dom
I
have
a
few
questions
for
different
parts
of
you.
What,
if
anything,
have
any
of
you
seen
particularly
console,
and
the
reinvestment
fund
has
been
a
good
practice
that
other
people
are
utilizing
that
locally?
We
should
act
quickly
on.
H
H
It
has
a
story
board
a
technical
board
so
literally
has
every
single
opportunity
zone
up
there
and
throughout
the
entire
state,
and
not
just
the
demographics
of
it,
but
also
kind
of
the
incentives
that
are
overlaid
in
those
areas
and
just
the
story
of
what
could
the
vision
of
what
could
be
in
those
different
areas.
So
I
think
that
is
really
important.
H
You
know
master
plans
and
neighborhood
plans,
so
that
is
one
step
in
the
in
the
right
direction,
but
aggressively
marketing
and
really
trying
to
overlay
I
mean
what's
really
important
to
remember
is
that
this
is
very
fluid
capital.
It
can
go
anywhere
right.
So
it's
really
important
to
say
we
have
our
act
together.
We
know
what
we
want
here.
We
have
our
goals
here,
and
you
know
look
here
at
in
Philadelphia.
B
Yeah
I
would
essentially
echo
you
know
if
it's
hard
in
a
certain
sense
to
say
what
a
good
practice
is,
because
there
are
effectively
no
projects
with
shovels
in
the
ground.
Yet
so
we're
sort
of
speculating,
but
I
think
we
can
infer
from
the
way
that
cities
have
successfully
corralled
other
subsidies
to
sort
of
punch
above
our
weight,
as
councilman
Tom
suggested.
We've
already
done
in
terms
of
how
well
organized
we
were
in
sort
of
corralling
census.
B
That's
something
that
that
PIV
see
has
done,
for
example,
very
effectively
in
the
new
market
tax
credit
space
and
has
already
started
to
do
along
with
the
Commerce
Department
in
Ann's
office
in
the
in
the
opportunity's
own
space
and
I.
Do
think
that
that
is
exactly
the
right.
First.
Investment
based
on
what
we've
seen
from
other
programs
and
their
effect.
So.
A
Andy,
first
of
all,
since
you
were
here
doing
the
American,
Street
empowerment
zone
days
and
now
and
I
want
to
kind
of
reiterate
a
part
of
your
testimony-
that's
hugely
important,
not
that
these
opportunities
are
not
important,
but
the
caution
about
diverting
a
current
plan
and
current
investments.
So
giving
that
experience
your
old
hat
when
you
were
here
and
the
cautionary
tone
that
you've
put
in
in
your
testimony.
What
would
be
your
recommendation
and
what
do
you
see
as
a
national?
You
know
your
national
lens
through
liske,
well,.
I
I
think
the
one
piece
is,
you
know
what
the
city
has
you
know
in
abundance,
I
think
our
plans
and
priorities
and
opportunities
own
shouldn't
distract
from
your
plans
and
priorities.
I
think
it's
fairly
clear
that,
just
by
what
was
eligible,
etc.
Opportunity
Zones
are
basically
non
sequiturs
for
most
middle
neighborhoods,
most
mill
neighborhoods
weren't
necessarily
eligible
they
weren't
designated.
If
you
have
a
set
of
middle
neighborhood
strategies,
you
can't
that
opportunity
zones
distract
you
from
those
strategies
and
you
need
to
figure
out
how
you
do
both.
I
Similarly-
and
you
know,
seventh
district
is
an
example
of
this.
You
have
neighborhoods,
just
as
with
the
empowerment
zone
and
with
renewal
communities
where
neighborhoods
are
bisected,
half
are
in
and
half
are
out
5th
Street
is
the
dividing
line.
Fair
Hill,
Kensington
Avenue
is
dividing
line
in
Kensington,
and
so
one
of
the
key
questions
for
those
commercial
quarters
in
those
neighborhoods
is
how
do
you
try
to
make
sure
that
you
really
have
sensors
on
the
ground?
I
In
case
you
start
to
see
really
distorted
investments
or
Consequences
go
going
from
one
half
to
the
other,
and
that's
probably
done
at
the
micro
level.
I
think
the
the
other
piece
is
I.
Think.
On
the
one
hand,
everybody's
focused
on
the
clock
is
ticking
and
the
highest
impact
investments
are
now
I.
Think,
what's
quite
likely
to
happen
in
the
federal
policy
level
is
either.
This
has
legs
and
gets
extended,
in
which
case.
A
Finally,
Beth
for,
in
terms
again
looking
at
there
are
some
very
aggressive
cities
who
are
like
we're
open
for
business,
do
whatever
right
and
then
there
are
other
cities
as
as
was
mentioned,
that
are
articulating
exactly
the
types
of
investments
they
want
a
facility
and
incentive
eyes.
What
should
we
be
doing
over
the
next
few
months,
or
what
would
you
like
to
see
in
terms
of
public-private
partnerships
for
us
to
monitor
this
and
again
not
to
create
barriers,
but
to
be
more
intentional?
What
would
you
like
to
see
YES
on.
A
D
You,
madam
chairwoman,
I
guess
most
of
my
questions
I
think
are
gonna,
be
for
mister
Ackland.
First
of
all,
your
charts,
excellent
on
the
it's
very
helpful
to
me.
I,
have
several
questions.
One
question
is
a
property.
That's
in
an
opportunity
zone
versus
one
that
is
not
in
an
opportunity
zone.
Do
we
have
any
idea
what
the
Delta
is
on
the
value?
B
B
What
we're
seeing
is
that
investors
are
willing
to
take
their
sort
of
target
IRR
s
in
internal
rates
of
return
down
from
the
sort
of
mid
to
high-teens,
to
the
low
to
mid
double
digits
and
they're
willing
to
take
their
sort
of
annual
cost
of
capital
from
the
high
single
digits
down
into
the
mid
single
digits.
So
that
allows
something
like
a
20%
increase
in
how
much
equity
of
property
is
able
to
carry
based
on
the
same
cash
flows,
because
the
the
difference
in
return
is
made
up
for
by
the
tax
benefit.
So.
B
How
much
that
property's
going
to
appreciate
is
because
the
value
of
that
appreciation
tax
benefit
is
so
great
that
if
you're
in
a
neighborhood,
where
you
think
the
property's
going
to
appreciate
a
great
deal,
you
might
be
willing
to
invest
a
great
deal
more,
not
on
the
basis
of
anticipated
cash
returns.
But
on
the
basis
of
anticipated
exit
returns.
Right.
D
B
D
A
big
piece
is
along
the
river
from
looks
like
Northern
Liberties,
all
the
way
up
to
Holmesburg.
That's
right
that
whole
section
is
in
the
opportunity
zone.
That's
my
understanding.
Yeah,
that's
a
big
I
mean.
Is
that
would
that
be
like
master
plan,
because
that's
a
huge
section,
I'm
horrible,
real
estate.
B
D
Just
saying
seen
looking
at
the
chart
and
saying
what
are
the
opportunities
in
Philadelphia
that
looks
like
a
great
opportunity
along
the
waterfront
there.
The
other
question
I
had
46
did
market,
which
we've
had
discussions
on
the
building
is
that
in
the
opportunity
zone,
I'm,
sorry,
46th
and
market.
B
I
B
A
A
D
F
Let
me
just
say
first
thank
you
to
to
each
of
you
for
your
testimony
of
counsel
but
I'm
thinking
about
that
three
hours,
CLE
that
you
talked
about
with
ballots
far
that
produced
this
and
then
I'm.
Listening
to
your
testimony,
Brittany
and
I
want
you
to
think
about
a
semester
with
dr.
Peter
Angelotti
say
as
charelle.
You
are
not
allowed
to
talk
about
economics
normatively
only
positively.
So
that's
those
are
the
questions.
I
want
to
ask
you
Brittany
and
listen.
That
was
cruel.
F
Brittany
tell
me
this.
You
I
appreciate
you
giving
us
context
in
the
history
of
how
the
whole
Act
came
into
being,
but
you
you
very
specifically
and
I,
want
to
because
I'm
gonna
come
back
to
you
Andy
fresh
cough,
because
you
give
hope
about
the
regional
alliances
right
very
normative.
This
is
what
we
hope.
F
H
So
when
we
say
agnostic
investor,
an
agnostic
capital,
we're
talking
about
fund
that
is
set
up,
that
really
doesn't
have
a
specific
desire
to
be
in
any
maybe
specific
place
or
desire
to
be
in
a
community
and
say
I
want
to
I
want
this
project
to
happen,
so
it
can
benefit
the
community
in
this
way
and
so
really
they're.
You
know
they're
just
looking
to
you
know
they
have
the
requirements
of
the
fun.
H
Ninety
percent
of
it
has
to
go
into
a
qualified
opportunities
own
is
they
have
all
these
requirements,
but
there's
need
to
make
sure
that
their
project
appreciates
over
time
so
that
they
can
get
the
maximum
amount
of
benefits
for
the
investors.
The
original
people
who
put
in
their
capital
gains-
and
so
there
are
a
number
so
the
funds
that
are
being
developed
right
now
and
they're
two
different
again.
H
Some
of
this,
some
of
the
funds
are
not
publicly
letting
people
know
that
they're
developing
funds
and
developing
projects
right,
but
there
are
two
kind
of
websites
or
organizations
that
are
tracking
funds
right
now,
and
over
graddic
is
one
and
the
other
is
NC
HS,
a
National
Council
of
Housing
and
state
associations,
and
so
there's
a
whole
list
of
funds
that
are
out
there,
and
a
lot
of
them
are
just
saying
national.
You
know,
or
a
lot
of
them
are
saying
a
multi-family,
but
national
some
of
them
are
saying
we
want
to
be
specifically
northeast.
H
F
Addition
to
that
from
time
to
time,
I
know
all
of
the
district
council
members
have
experienced
this.
You
have
a
la
what
you're
very
specifically
noted
it's
very
important
for
government
to
be
seen
as
a
partner
to
work
with
and
not
a
hindrance
to
avoid
from
working
with
the
client
you're,
interacting
with
helping
them
with
a
market
analysis,
tax,
deferral,
reduction,
elimination
and
different
scenarios.
F
Tell
me:
can
you
very
specifically
give
some
examples
of
what
would
be
considered
just
to
sort
of
get
on
the
record,
so
council
women
see
a
chance
asked
about
what
are
the
best
practices
you
guys
have
seen
across
the
country,
but
I
want
you
to
very
specifically.
If
you
can
put
on
the
record,
you
know
members
of
the
City
Council
of
Philadelphia
whose
districts
contain
these
locations.
We
would
hope
that
you
would
avoid
X
Y
&
Z
locally.
Is
there
anything
you
can
put
on
the
record
for
us?
Let.
H
Me
say
on
the
maybe
let
me
say
on
the
on
the
on
the
positive
side,
so
things
that
Anne
was
talking
about
saying
you
know
if
you're
interested
in
being
here,
you
know
what's
in
it
for
what's
in
it
for
us,
but
the
first
part
of
that
is,
if
you're
in
you
know,
if
you're
interested
in
being
here,
we,
the
city
government,
can
bring
things
to
the
table,
and
that
is
a
way
to
be
a
partner
to
say:
hey,
we
can
bring.
You
know
infrastructure
development
around
here
we
can
bring.
H
We
can
let
you
know
the
projects
that
are
in
the
pipeline
that
already
have
community
support,
and
so
that's
a
really
positive
way.
I
think
the
approach
that
she's
taking
already
is
a
positive
way
to
be
a
partner
on
the
flip
side
of
being
a
obstacle.
I
would
think
that
if
it
was,
you
know
it
I
would
think
that
if
you
were
to
say,
if,
oh,
if
you
want
to
build
this
project
here,
you
have
to
go
through
five
different
community
meetings.
H
F
F
Philadelphia
is
open
for
business,
but
I
really
did
want
you
to
get
some
of
that
on
the
record
beforehand,
because
sometimes
Councilwoman,
madam
chair,
we
get
accused
of
not
asking
right
in
event,
so
at
least
I
can
say
we
accident,
you
know
positive
economic
analysis,
thinking,
eat,
consult
on
the
record
and
they
and
they
gave
us
what
they
could
Andy
I
want.
You
fresh
coffee,
Liske
tell
us
about
this
regional
concept
that
you
are
thinking
about
man
I
know,
you
said
you
don't
have
it
itched
in
stone,
but
you
talked
about.
F
I
So
I
think,
though,
here's
the
one
difficulty
for
us
sort
of
going
into
this.
So,
on
the
one
hand,
we
and
reinvestment
fund
both
have
had
a
lot
of
success
in
attracting
investors
and
along
the
lines
of
sort
of
Community,
Reinvestment,
Act
or
philanthropic
investments,
and
whether
they're
looking
for
a
rate
of
return
or
not,
but
we
with
the
loan
passing
tax
credits
and
new
market
tax
credits
and
our
loan
funds
have
had
alignment
with
those
corporate
and
institutional
investors.
I
Those
aren't
necessarily
the
same
investors
who
are
likely
going
to
be
the
large
players
in
the
opportunities
own
investments.
So
for
us
we
have
had
to
invest
in
our
own
infrastructure
to
build
new
relationships.
Now,
we've
been
doing
some
of
that
already.
We
have
some
partnerships
with
with
people
like
John,
Legend
and
others
in
New,
York
City,
which
predate
Opportunity
Zones,
but
they
may
better
fit
the
profile.
Somebody
who's
looking
for
a
return,
but
also
social
impact.
I
You
look
at
some
of
the
the
athletes
and
other
who
are
now
active,
not
necessarily
a
soul
investors,
but
in
partnerships
in
Philadelphia.
Are
they
more
likely,
though,
the
target
investors
for
particularly
for
localized
or
regional
funds,
I?
Think,
though,
what
we
offer
and
the
investment
fund
potentially
offer
is
that
we
exist
in
multiple
cities.
I
So
we
also
offer
the
opportunity
to
be
an
investor
not
just
in
Philadelphia
but
in
Newark
or
Baltimore
new
investments
case
DC,
New
York,
so
that
may
appeal
to
some
investors
who
are
not
overly
localized
and
then
I
think
you
know
this
is
a
different
part
of
I
think
what
with
councilman
tom
was
asking
earlier,
and
we
also
have
a
lot
of
wealth.
That's
in
suburban
communities,
corporate
or
individual,
and
you
know,
for
the
most
part,
we
don't
have
a
lot
of
suburban
opportunities
own
tracks.
There
are
some
and
what
the
question
is.
I
Do
those
investors
pretend
that
we
have
a
regional
interest
in
Greater
Philadelphia
that
they
wouldn't
necessarily
have
in
metropolitan
New,
York
and
metropolitan
New
York
that
are
probably
bigger,
upsides
and
some
bigger
players
so
for
the
agnostic
investor
they
may
seek
out
those
returns,
but
if
they
have
any
regional
sort
of
ties,
then
it
may
be
that
they
would
look
to
something
in
Philadelphia
and
the
other
piece,
too,
is
that
you
don't
have
to
be
a
big
fund.
You
could
be
you
as
a
real
estate.
I
Developer
can
create
your
own
fund,
and
so
you
in
theory,
if
as
a
business,
if
you
want
to
relocate
in
Philadelphia,
might
be
able
to
invest
in
your
own
relocation.
Now,
whether
you
choose
to
do
that
or
not
into
Andy's
point,
the
their
marginal
benefits
returns,
but
they
might
be
the
final
tipping.
Madam.
F
Chair
my
last
comment
or
a
question
for
Andy
are:
let
me
echo
councilman
Dom's
comments
about
the
mapping.
Obviously
you
know
I
depend
on
the
reinvestment
fund
for
everything
right
and
we've
been
working
together
for
a
long
time.
In
your
testimony
you
talk
about
and
if
councilman
Johnson
were
here
I
know
he
would
want
this
one
on
the
record
or
just
you
know
further
delve
into
it.
F
You
talk
about
in
a
neighborhood
where
affordability
is
at
risk
and
cynosure
pride
developers
to
preserve
it
so
again,
I'm
thinking
about
Brittany's
comments,
but
then
I'm
thinking
about
your
statement
that
our
incentive
ship
ride
develops
to
preserve
it.
If
affordability
is
at
risk,
does
anything
come
to
mind
any
specific
tools
or
structure
that
says
wait
you
can
walk
and
chew
gum
at
the
same
time,
city
of
Philadelphia,
and
this
is
a
way
you
can
do
it
well.
B
But
you
wouldn't
necessarily
want
to
put
the
same
kinds
of
restrictions
or
boundaries
on
that
same
tool
in
in
other
districts,
where
the
primary
concern
is
disinvestment,
not
over
investment
right.
So
that
was
the
that
was
the
point
I
was
trying
to
make.
I
did
also
actually
want
to
amend
an
answer
if
I
might
that
I
gave
to
councilman
Dom
as
I
was
thinking
after
the
fact
about
the
math
in
my
head
about
the
effect
our
purchase
price
I.
B
B
F
Madam
chair,
thank
you.
Thank
you,
Andy
for
your
response,
and
you
said
what
I
hoped
you
would
and
sometimes
I,
don't
know
that
we
really
get
this,
but
in
essence
there
is
no
one-size-fits-all
package
that
we
should
be
developing
and
in
all
of
the
cities
location
it
would
have
to
be
tailored
for
for
each
different
district
and
not
only
just
each
district.
If
you're
one
side
of
the
ninth
Councilwoman
and
then
you
go
over
to
the
other
area,
you
wouldn't
offer
the
same
incentives
there.
So
I
appreciate
your
getting
that
on
the
record.
F
In
addition
to
that,
I
want
to
leave
with
you
all
read
the
article
about
Minneapolis
and
this
this.
This
one-size-fits-all
adjustment
for
zoning,
with
with
single-family
dwellings
I
also
wanted
you
to
get
that
on
a
record
too
cuz
Councilwoman
I
think
would
be
going
to
wall
if
somebody
talks
about
doing
that
here
in
the
city
of
Philadelphia.
So
thank
you
all
so
very
much
for
your
testimony.
Councilwoman
Sanchez,
thank
you
for
your
leadership
and
putting
together
this
hearing.
A
Thank
you,
I
think
what
we're
trying
to
develop
and
I
guess
the
discussion
is:
what
is
the
narrative
right
how
to
cook?
How
can
we
have
a
narrative
that
says
we
want
investments,
but
we
also
want
investments
that
our
shared
values
about
the
type
of
city
we're
trying
to
create
right
and
and
I,
don't
think.
That's
a
conflict
I
think
that
we
we
should
be
intentional
in
providing
incentives
and
facilitating
for
those
social
impact
developers
right
so
for
B.
A
My
my
intent
is
particularly
because
so
much
of
my
district
and
is
is
part
of
this
right
and
and
how
much
we
struggle
with
equitable
development
in
those
areas
is
you
know
we
want
to
attract
folks
who
are
okay
with
making
money
and
having
impact,
as
opposed
to
just
saying
just
come
in
here:
you're
gonna
drop
money
and
make
money
and
we're
not
gonna.
Give
you
a
hard
time.
I
don't
have
a
problem,
letting
folks
know
I'm
gonna
give
you
a
hard
time.
A
If
that's
your
only
goal,
I'm,
okay
with
you
making
money
and
having
an
impact
and
I,
don't
think
that
should
be
in
conflict.
So
I
think
that's
what
we're
trying
to
do
is
develop
that
narrative.
Then
people
are
prepared.
Councilmen.
Do
you
have
another
question
for
this
panel?
We
have
one
more
panels.
Okay,
thank.
D
I
D
D
You
talked
about
how
the
city
could
form
land
development
partnerships
in
Opportunity
Zones
as
its
son
of
the
Navy
Yard,
and
when
you
look
at
this
map
that
you
put
together,
it
seems
to
me
that
this
Kensington
Port,
Richmond
Frankfurt's
swath
of
land
along
the
river,
should
be
something
we
should
look
at
as
a
city
as
maybe
a
second
Navy
Yard,
or
something
like
what
other
cities
you
know
like
Camden
has
built
on
the
waterfront
there.
Well,
we
could
have
a
tremendous
job
generation
going
on
there.
D
That
would
support
those
areas
of
Juniata,
only
Taylor
that
need
jobs.
This
seems
to
me
is
where
we
should
focus
on
doing
a
second
Navy
Yard
big
project,
and
even
if
we
have
to
give
whatever
incentives
for
the
jobs,
we
should
give
them
those
we
need
those
jobs
in
the
city
and
that
what
is
your
thought
on?
That
I
mean
I.
I
I'm,
not
a
port
expert
but
I
think
that's
the
type
of
opportunity
I
think
there
and
around
some
of
your
large
our
large
transit
stations
and
and
transportation
hubs.
Those
are
where
I
think
you
could
do
some
very
interesting
land
development
I
think
that
the
city
of
Wilmington
has
put
their
port
fully
in
the
opportunities
or
at
least
those
parts
that
are
eligible
and
so
I
think
you
know,
and
we
just
to
be
clear.
A
You
we
are
going
to
count
on
the
expertise
of
this
panel
and
the
partnership
that
you've
always
given
the
city
and
our
ability
to
create
and
ensure
appropriate
implementation
of
all
these
policies,
so,
like
councilman
Parker's
that
we
really
really
value
our
partnership
together.
Thank
you.
We're
gonna
go
to
our
final
panel.
E
D
I
Is
there
are
also
some
questions
about
exactly
when
certain
things
start
and
stop?
So,
for
instance,
at
least
one
reading
is
that
if
you
were
to
put
an
investment
in
in
place
in
2020
that
you
would
still
have
your
full
10-year
benefit
if
you
hold
that
investment,
although
there
are
certain
aspects
that
sunset
after
2027,
so
there.
I
So
your
investment
to
gate
have
your
maximum
benefit
your
maximum
after
tax
benefits.
Your
investment
would
need
to
be
in
place
for
ten
years
to
maximize
your
investment.
But
if
you
are,
if
that
investment
is
sold,
you
will
have
some
after-tax
benefit,
but
will
not
you
will
not
maximum
will
not
max
right?
Okay,
so
the.
I
H
The
initial
capital
gain
that
you
put
into
the
fund.
That's
what
he's
talking
about.
You
know
if,
if
you
get
it
in
before
2026,
so
that
it
can
be
deferred
up
until
2026
by
2026,
you
have
to
pay
taxes
on
your
initial
capital.
You
need
the
initial
capital
gain,
and
so
in
that
timeline,
depending
on
when
you
put
it
in
there's
a
ten
percent
reduction
or
15
percent
reduction
on
your
taxes
on
that
initial
capital
gain.
H
But
you
could
put
your
money
in
at
10,
20
27
and
you
wouldn't
get
that
initial
initial
reduction
or
deferral
of
capital
gains.
You
can
put
your
money
in
twenty
twenty
seven
ten
years
down
the
road,
its
twenty,
thirty,
seven
and
you've
held
it
for
10
years.
You
can
sell
your
investment
in
in
that
fund
and
then
you
would
have
the
elimination
he
would.
You
would
not
have
to
pay
that
if
the
project
appreciates
you
would
not
have
to
pay
capital
gains
on
that
appreciation,
so
there's
the
two
pieces
of
it,
but
would
it.
H
J
A
K
A
K
K
It
well
good
afternoon,
madam
chairwoman,
can
you
know
Sanchez
and
members
of
City
Council?
My
name
is
Maria
Gonzalez
I
am
the
president
of
hace
and
also
the
president
of
the
board
directors
of
PA
CDC,
the
Philadelphia
Association
of
CDC's,
and
thank
you
so
much
for
inviting
my
testimony.
Sa
is
a
Community
Development
Corporation
we're
nonprofit
and
we
have
been
serving
the
Pharaon
sang-hyun
neighborhood
since
1982
our
work
is
guided
by
neighborhood
plans
that
prioritize
the
needs
of
community
residents
and
all
those
other
stakeholders
in
the
community.
K
We
focus
in
the
implementation
of
our
ten-year
neighborhood
plans
to
serve
core
activities
that
involve
bricks
and
mortar
development
of
commercial
spaces
and
also
also
multifamily
developments.
We
also
focus
in
civic
engagement
and
working
with
our
community
residents,
supportive
services
for
seniors
housing
and
energy
counseling,
and
also
targeted
corridor
management.
The
organization's
focus
area
is
bounded
by
Huntington
Street
on
the
south,
Glenwood
Avenue
to
the
north
and
from
sixth
Street
to
B
Street
on
the
east.
K
The
area
includes
five
census,
tracts
that
have
high
poverty
rates,
ranging
from
53
percent
to
68
percent,
which
are
among
the
highest
in
the
city.
As
with
many
other
areas
in
the
city,
this
community
needs
investment,
but
we
need
the
right
kind
of
investment
that
will
benefit
existing
residents
and
give
them
a
better
housing
and
economic
opportunities.
K
Based
on
our
asses
ten-year
neighborhood
plan,
the
Goodland
2025
name
of
a
plan.
We
have
many
needs
that
were
identified,
and
some
of
these
include
investment
in
our
commercial
quarters.
Right
now,
we've
estimated
that
about
24
million
in
retail
sales
is
leaving
the
neighborhood,
and
if
there
were
more
retail
opportunities
to
meet
the
needs
for
full-service
restaurants,
clothing
stores
and
other
types
of
businesses,
we
can
keep
that
spending
in
the
neighborhood
and
at
about
230
full-time
jobs
for
community
residents.
K
K
Theoretically,
the
opportunity
zone
program
could
be
used
as
a
mechanism
for
leveraging
resources
to
address
the
needs
for
additional
for
these
and
other
additional
investments
in
our
neighborhoods.
But
we
have
significant
concerns
about
whether
the
opportunity
zone
designation
will
help
fair
hel.
It
is
hard
to
see
why
opportunity's
own
investments
investors
will
want
to
invest
in
these
projects,
since
serving
our
existing
population
requires
subsidized
housing
options
and
other
retail
options
that
are
affordable.
K
If
investors
do
choose
this
neighborhood
for
market
rate
development
to
attract
higher
income
residents
into
the
neighborhood
that
we
need
to
be
mindful
that
those
projects
will
not
serve
it
will
not
serve
existing
residents
and
over
the
long
term
they
couldn't
also
help
displace
residents
from
our
communities.
So
we
need
to
focus
on
investments
that
benefit
long-term
residents
and
businesses,
so
they
can
stay
in
the
neighborhood
they've
chosen
to
live
and
work
for
a
very
long
time
to
truly
meet
the
needs.
K
There's
much
to
learn
about
opportunities
on
and
how
we
can
best
use
this
vehicle
in
our
neighborhoods.
We
hope
the
council
and
the
administration
can
work
with
us
and
other
cities
that
have
opportunities
owns
in
our
in
their
service
territories
to
ensure
that
we're
using
every
tool
for
equitable
development.
Thank
you
for
the
opportunity
to
testify
and
Thank
You
Councilwoman
quinones
for
convening
this
very
critical
conversation.
Thank.
A
J
My
name
is:
will
Gonzalez
I'm
the
executive
director
of
ceiba
and
say
bi
is
a
nonprofit
organization
in
Philadelphia
that
promotes
the
economic
development
and
end
financial
inclusion
of
the
Latino
community
through
collaborations
and
advocacy
aimed
at
ensuring
that
they
know
access
to
quality
housing?
We
are
very
concerned
about
Opportunity
Zones.
We
see
them
as
a
two-edged
sword,
a
very
sharp
on
the
edge
of
promoting
a
displacement
and
gentrification.
We
are
very
happy
that
you
organized
this
hearing
as
it's
important
that
we
try
to
leverage
whatever
resources.
J
Both
the
public
can
provide
and
the
private
industry
can
provided
by
private
I
mean
philanthropy.
Nonprofit
organizations
think
thanks
to
make
sure
that
we
don't
hurt
the
community
through
this
infusion
of
capital.
I
like
what
you
said
about
making
sure
that
the
things
are
transparent
and
that
I
know
somebody
talked
about
the
speed
of
things.
You
know.
J
Accountability
is
not
delay
and
I
appreciate
that
you
mentioned
that,
because
what
we
want
to
do
is
make
sure
that
there's
accountability
and
that
there's
leverage
to
support
these
communities
that
especially,
are
in
transition,
as
you
well
know,
and
then
or
a
square
area.
It's
been
some
transition
where
some
of
the
neighbors
that
helped
in
the
progress
of
that
community
are
now
being
displaced,
and
we
think
it's
important
that
the
council
also
look
at
the
letter
that
Cory
Booker
wrote.
J
You
know
he's
one
of
the
originators
of
this
idea
and
he
talked
about
measurements
of
success.
The
regulatory
authorities
identifying
what
the
outcomes
can
be
tracking
those
outcomes,
etc.
I
know
these
are
trying
times
because
of
the
leadership
at
the
executive
branch
of
the
federal
government,
but
we
hope
that
that
changes
before
2026
so
I
think
that
it's
important
that
we
be
engaged.
J
We
also
I
also
liked
the
idea
of
in
getting
the
city
engaged
in
the
advocacy
process
of
those
regulations
at
the
federal
level,
and
the
city
should
not
be
doing
this
on
its
own.
We
are
allies
in
that
fight
and
should
leverage
that
that
work
with
us
on
this
fight
to
make
sure
that
the
regulations
represent
equitable
development.
I
support
the
ideas
that
were
presented
by
PA
CDC
about
dealing
with
issues
of
tax
abatement,
I.
J
We
need
to
make
sure
that
in
those
particular
areas,
if
possible,
since
they're
already
getting
a
break
in
one
area,
maybe
we
can
totally
get
rid
of
the
tax
abatement
in
those
communities.
I
think
issues
related
like
miss
Gonzalez,
Oh
master
I,
mentioned
about
land
control
are
really
important.
If
there
are
8,000
publicly
owned
parcels,
then
let's
work
with
the
community-based
organizations
that
have
been
thoughtful
and
deliberate.
Each
of
I
can
speak
for
the
Latino
community.
J
Each
of
the
Latino
CDC's
has
an
excellent
plan
and,
and
they
have
ideas
as
how
to
leverage
for
the
public,
good
those
parcels
and
so
providing
community
control
of
those
parcels
to
those
organizations
that
will
make
best
use
of
it
must
be
maximized.
I
think
also,
the
capacity
to
engage
is
important.
The
organizations
are
facing
many
challenges
and
we
need
to
promote
their
capacity
to
engage.
That
includes
providing
the
capacity
of
the
rCOS
to
really
be
able
to
come
out
with
community
benefits
agreements
that
are
key
to
this.
J
As
these
these
project
may
be,
seeking
the
the
blessing
of
the
our
CEOs
etc.
Last
but
not
least,
many
of
these
communities
are
in
need
of
good
housing,
counseling
and
what's
happening
lately
is
that
a
lot
of
things
are
being
thrown
down
to
housing,
counselors
I,
believe
in
that
the
efekta
see
and
and
of
the
housing
counselors.
J
But
we
also
need
to
make
sure
that,
in
these
communities,
they're
supported,
there's
issues
related
to
eviction,
home,
repair,
foreclosure,
lots
and
and
chief
among
them,
tangled
title,
and
so
those
issues
need
to
be
address
on
a
case-by-case
basis
and
housing.
Counselors
are
best
position
to
do
that,
but
there's
only
so
much
two
hands
per
person
can
do
and
so
obviously
supporting
the
community-based
organizations
to
make
sure
that
they
have
the
capacity
to
deal
with
these
things
on
a
case-by-case
basis.
J
I
think
the
most
important
thing
is
that
there's
an
interest
about
social
responsibility,
investing
and
Philadelphia
is
one
of
the
leaders
in
that
in
the
philanthropic
community.
I
know
that
philanthropic
foundations-
you
know
they
they're
not
looking
for
the
tax
break,
but
they
could
play
a
leadership
role
in
doing
the
marketing
and
I
like
what
you
said.
The
proper
marketing,
because
it's
not
you,
know
we're
open
for
everybody
to
come
in.
J
We
don't
want
sharks
right,
nothing
against
sharks,
but
at
the
same
time
we
can
promote
the
City
of
Brotherly
Love
as
a
best
place
to
do
social
responsibility,
investing
with
the
support
of
a
city
that
favors
it
with
the
support
of
a
felon
traffic
community
ISM,
that's
invested
in
it
and
with
the
support
of
strong
community-based
organizations
that
are
plant
that
have
good
plans
and
have
thought
how
to
maximize
equitable
development.
We
appreciate
that
this
is
a
continuing
discussion.
J
A
L
We
support
Councilwoman,
Kinney,
honest
interest
in
holding
this
session,
which
we
see
as
an
important
step
towards
ensuring
that
people
Economic
Opportunity
soundfonts,
are
invested
in
equitable
ways
that
generate
more
opportunities
for
all.
A
p.m.
service
area
was
classified
last
year
as
an
economic
opportunity
zone.
L
Consequently,
we
have
been
monitoring
the
proposed
regulations
that
the
IRS
has
been
crafting
for
this
policy
and
starting
house
homes
are
being
established
around
the
country,
thus
far
to
see
if
they
can
represent
an
opportunity
for
us
to
help
families
achieve
their
greatest
potential
by
improving
the
quality
of
life
in
the
communities
that
we
serve
last
year
after
our
service
area
was
designated
an
opportunity.
Soon,
we
were
approached
by
a
financial
institution
that
expressed
interest
in
investing
part
of
the
process
of
one
of
their
Economic
Opportunity,
sound
phones.
L
In
one
of
our
projects,
we
explored
the
possibility
of
baking,
a
six
million
dollar
deal
with
them
to
preserve
45,
affordable
housing
units.
However,
after
much
analysis
due
to
the
complexity
of
the
tax
credits,
our
legal
obligations
and
organizational
mission
to
maintain
affordable
rents
for
our
residents,
we
could
not
reach
an
agreement
with
them,
not
with
not
withstanding.
This
setback.
Apm
is
opening
to
partnering
with
Economic
Opportunity,
sound
funds
and
investors
to
develop
these
and
other
projects.
We
are
particularly
interested
in
developing
more.
L
It
makes
use
developments
like
passing
where
the
workforce
development
initiatives
and
more
affordable
housing
units.
That
being
said,
we
want
to
work
with
investors
and
partners
that
share
our
desire
to
develop
projects
like
these
that
are
equitable
and
do
not
lead
to
the
displacement
of
our
community.
We
see
Economic
Opportunity
soundfonts
as
a
tool
that
can
be
used
to
help
achieve
these
goals,
and
we
want
to
see
that
they
are
used
toward
projects
that
improve
communities
and
do
not
displace
or
destroy
them.
Thank
you
for
the
opportunity
to
speak
here
today.
Thank.
A
L
More
their
return
on
their
they
returned
that
they
were
seeking
on
on
the
investment.
The
building
is
on
the
building
that
we're
seeking
to
pre-service
on
their
restrictive
common
covenant
that
we
that
we
have
to
keep
at
an
affordable
rent
and
essentially,
if
we
APM's
mission,
is
to
maintain
that
rent
as
affordable
once
the
once.
The
was
think
once
the
covenant
expires,
and
but
we
were
enabled,
unless
we
pretty
much
raise
it
to
market
brands,
we
we
would
have
not
have
been
able
to
meet
that.
So.
A
Rate
of
return-
yes,
during
the
period,
even
though
they
were
going
to
going
back
to
the
explanation
of
the
tax
benefit
being
on
the
initial
investment
and
not
a
capital
gains
on
the
initial
investment,
even
on
that
initial
investment
that
they
could
have
realized
the
tax
benefit
that
wasn't
enough.
They
wanted
to
realize
the
second
part
of
it.
Yes,.
L
A
That's
interesting,
well,
I.
Thank
all
of
you
again.
As
I
said,
we
we
have
an
interest
in
helping
to
shape
this.
If
both
and
I
should
have
said
this
to
Beth.
If
organizations
have
and
want
to
present
to
the
Fed
some
recommendations
on
around
regulatory,
some
regulatory
recommendations
please
submit
them
and
and
submit
them
to
us
for
the
record.
A
As
we
look
at
what
other
cities
are
doing
and
trying
to
make
sure
that
again,
we
we
are
having
a
social
impact
I
like
Andy,
fresh
cross
definition.
You
know
smart
development,
inclusive
development
and
impact
development,
and
so
I
think
that
captures
what
we
want
to
do.
So
we
we
will
continue
to
ask
the
administration
to
engage
we'll
figure
out
how
to
formalize
that
council,
president
Clark
and
the
the
team
at
tech
staff
have
been
trying
to
be
as
proactive
as
possible,
and
so
we
will
follow
up.
So
thank
you
for
your
patience
today.
Thank.