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From YouTube: Joint Committee on Housing, Neighborhood Development; Commerce and Economic Development 4-27-2018
Description
The Joint Committees on Housing, Neighborhood Development & the Homeless and Commerce & Economic Development of the Council of the City of Philadelphia held a Public Hearing on Friday, April 27, 2018 to hear testimony on the following item:
180360 Resolution authorizing the City Council Committee on Housing, Neighborhood Development and the Homeless and the Committee on Commerce and Economic Development to hold joint hearings regarding growing the City's tax base by analyzing current housing trends, population growth and the City's labor pool as well as the real estate market in order to explore policy solutions to continue to grow the City's tax base.
A
Good
morning,
this
hearing
is
now
called
to
order.
This
is
the
public
hearing
of
the
City
Council
Joint
Committee
on
housing,
Neighborhood,
Development
and
the
homeless
in
commerce
and
economic
development.
The
purpose
of
this
public
hearing
is
to
hear
testimony
on
resolution
number
one
803,
six,
zero
I
recognize
the
presence
of
the
chair
of
the
Economic
Commerce
and
Economic
Development
Committee
councilman
Jones
to
my
right
and
all
the
other
council
members
joining
us
shortly.
A.
A
Few
comments
I
wanted
to
make
before
we
got
started.
I
want
to
thank
everybody
for
being
here
today
and
participating,
and
many
of
you
know
that
you
know
we
have
goals
for
the
city
to
improve
our
tax
paying
base
and
it
possibly
could
be
through
taking
people
out
of
poverty
could
be
through
creating
new
jobs
and
bring
new
residents
to
the
city
problem.
Those
are
just
three
possible
options,
but
they're
all
probably
very
important.
B
Briefly,
I
was
honored
to
take
a
look
at
this
councilman
Dom
has
been
consistent
and
his
frugal
nature
of
approaching
budgeting
as
we
make
decisions
about
taxation
in
the
city
of
Philadelphia
I
think
it's
very
important
to
look
at
what
receivables
we
have
and
how
we
can
maximize
those
receivables
before
we
ever
a
burden.
The
taxpayer,
with
an
additional
text.
B
A
You
councilman
to
my
immediate
left,
is
councilman
David
up
Ghibelline
comments,
I'd
like
to
mention
no
okay
by
the
way
should
tell
everyone
that
councilman
Jones
and
Councilman
Oh.
On
a
separate
note,
our
co-sponsors
of
the
bill
we've
put
forward
for
tax
collection
for
non
owner
occupant.
So
thank
you
both.
So,
let's
get
started
like
the
clerk
to
call
on
the
first
panel.
A
C
D
Resolution
one
803
600
authorizing
the
City
Council
Committee
on
housing,
Neighborhood
Development
and
the
homeless,
and
the
Committee
on
Commerce
and
Economic
Development
to
hold
joint
hearings
regarding
growing
the
city's
tax
base
by
analyzing
current
housing
trends,
population
growth
and
the
city's
labor
pool,
as
well
as
the
real
estate
market.
In
order
to
explore
policy
solutions
to
continue
to
grow
the
city's
tax
base.
The
first
panel
is
Eleanor
Sharpe,
Harold,
Epps
and
Lauren.
F
I
am
pleased
to
provide
testimony
regarding
resolution
number
one
803
600
authorizing
joint
hearings
regarding
growing
the
city's
tax
base
by
analyzing
current
housing
trends,
population
growth
and
the
city's
labor
pool,
as
well
as
the
real
estate
market,
in
order
to
explore
policy
solutions
to
continue
to
grow
the
city's
tax
base.
As
you
may
know,
the
mission
of
the
Planning
Commission
is
to
guide
the
development
and
growth
of
the
city
of
Philadelphia.
Toward
that
end.
In
2011
we
completed
the
first
phase
of
the
city's
comprehensive
plan,
the
citywide
vision.
F
F
Developing
these
plans
is
a
collaborative
process.
We
work
with
residents,
stakeholders
and
city
council
to
create
and
implement
these
plans.
They
are
a
shared
vision
for
our
city.
They
outline
where
we
wish
to
see
housing
where
we
wish
to
see
businesses
where
we
wish
to
see
open
space
and
where
we
wish
to
see
investment.
Our
citywide
vision
and
district
plans
are
built
around
three
main
goals.
Thrive,
connects
and
renew.
Achieving
these
three
goals
will
produce
a
Philadelphia
with
strong
neighborhoods
and
a
growing
economy.
F
To
implement
that
vision,
we
have
identified
more
than
12,000
acres
to
be
remapped
in
our
city,
working
with
city
council.
We
are
well
on
our
way
towards
reaching
that
goal
with
more
than
45%
of
those
acres,
either
remapped
or
in
the
process
of
being
remapped.
Much
of
this
zone
is
what
we
call
zoning
to
advance
the
plan,
and
these
are
zoning
changes
designed
to
support
new
residents,
new
jobs
and
amenities
that
make
our
neighborhoods
desirable.
F
Many
factors
contribute
to
the
vibrancy
and
growth
in
the
city
and
the
citywide
vision
and
the
district
plans
and
the
zoning
changes
that
accompany
them
are
only
a
few.
However,
I
will
note
that
since
2011
Philadelphia
has
gained
residents
every
year
and
has
gained
jobs
every
year.
In
fact,
our
city
has
outpaced
the
nation
in
job
growth
in
the
past
two
years.
Thank
you
for
the
opportunity
to
appear
for
you
today
and
I'm
happy
to
answer
any
questions
that
you
may
have.
B
C
Members
of
the
committee
on
commerce
and
economic
development-
again,
my
name
is
Harold
T,
Epps
and
I.
Am
the
director
of
the
Department
of
Commerce
I?
Am
here
today
to
provide
testimony
regarding
resolution
number
one:
eight:
zero:
three:
six:
zero.
In
order
to
discuss
policy
solutions
to
continue
to
grow
the
city's
tax
base,
one
of
the
key
strategies
to
grow
our
tax
base
is
to
cultivate
a
stronger,
more
inclusive
economy,
indeed
that
exactly.
C
That
is
exactly
what
my
department
works
towards
everyday
by
fostering
equitable
economic
opportunities
throughout
the
city,
whether
it's
supporting
small
businesses
in
our
neighborhoods
attracting
and
retaining
major
corporations
and
institutions
or
facilitating
international
business
relationships.
Our
goal
is
to
bring
good
paying
jobs
to
Philadelphia
for
today,
tomorrow
and
for
years
to
come
by
nearly
every
measure
of
economic
performance,
Philadelphia's,
driving
and
job
growth
is
outpacing.
Many
of
our
peer
cities.
C
Unemployment
is
at
a
11
year
low
and
our
population
continues
to
grow
educational
attainment
improves.
However,
we
also
face
our
fair
share
of
child
challenges.
The
poverty
rate
is
stuck
at
about
25
percent
and
there
is
much
work
to
do
to
prepare
our
city
for
the
21st
century
economy.
That
is
why
the
city's
workforce
development
strategy,
which
I
co-chair
with
the
managing
director
might
divert
eNOS,
is
so
key
to
ensuring
that
the
economic
prosperity
that
we
see
in
Philadelphia
right
now
continues
into
the
future.
The
workforce
development,
our
city
needs
will
not
happen
by
accident.
C
It
will
take
prolonged
engagement,
collaborative
partnerships,
considerable
resources
and
a
careful
marshalling
of
those
resources
to
support
Career
Pathways
systems
across
many
departments
over
an
extended
period
of
time,
and
while
we
work
to
develop
the
high
skilled,
knowledge-based
workforce
that
employers
seek,
we
must
simultaneously
commit
to
fostering
a
business
friendly
environment
that
can
compete
with
any
city
in
the
world.
This
is
a
critical
component
to
grow
in
our
tax
base.
C
New
businesses
create
new
jobs
and
add
to
the
economic
activity
in
Philadelphia,
increasing
the
city's
revenue
from
a
wage
tax
sales,
tax
and
business
income
and
receipts
tax
as
more
jobs
become
available,
and
the
competition
for
labor
increases
so
do
wages.
We
can't
make
a
minimal
difference
in
our
fight
against
poverty
without
engaging
the
business
community,
as
our
partners
in
closing
I
want
to
underscore.
We
must
not
take
the
current
economic
environment
in
Philadelphia
for
granted.
Instead,
we
must
capitalize
on
it
times
like
these
present
us
with
our
best
opportunity
to
take
action.
C
We
must
continue
to
simplify
our
business
related
regulations
and
streamline
our
policies
and
procedures
in
order
to
stay
competitive
recently,
nationally
and
globally.
Workforce
development
and
business
attraction
go
hand
and
our
key
components
to
broadening
our
tax
base
to
support
the
needs
of
our
name
in
a
dynamic
city
well
into
the
future.
I'd
like
to
make
one
modification
to
my
testimony.
Just
add:
councilman
Dom,
you
and
I
have
had
many
conversations
about
the
three
challenges
that
you
talk.
Often
I'm
gonna
make
a
fourth
the
three
are.
C
We
want
to
increase
the
number
of
jobs
in
Philadelphia
by
100,000,
we'd
like
to
see
it
an
additional
100,000
new
residents
and
the
most
challenging
one
of
those
three
that
we've
talked
about
before
is
100,000
out
of
poverty,
but
the
fourth
one
I
want
to
add
is
in
addition
to
the
jobs.
We
need
to
make
sure
that
we're
firing
a
hundred
thousand
new
employment
opportunities
for
Philadelphia.
It's
caused.
C
A
hundred
thousand
new
jobs
do
not
guarantee
that
they
will
go
to
Philadelphia,
and
so
we
got
to
work
on
both
of
those
block
the
jobs
and
making
sure
the
very
employment
opportunities
for
Philadelphia.
So,
with
that
being
said,
I
will
close
my
testimony
testimony
and
look
forward
to
answering
any
questions.
Thank
you.
Thank.
A
G
G
In
my
current
role,
I
oversee
the
firm's
Philadelphia
Research
Group,
my
works
appeared
in
The
New,
York,
Times
globe,
Street,
the
Philadelphia
Inquirer
and
the
Philadelphia
Business
Journal
I'm,
originally
from
Pittsburgh
and
I
hold
a
master's
of
Science
in
public
policy
and
management
from
Carnegie
Mellon
University,
as
well
as
a
Bachelors
of
Science
in
Business
Administration
from
Bucknell
University.
When
I
talked
to
my
friends,
family
and
clients
about
my
adopted
hometown
of
Philadelphia,
I
like
to
tell
them
that
I
have
the
best
job
in
the
city.
I
get
to
spend
my
work
time.
G
Tracking
office
leases,
multifamily
rental
rates,
studying
buildings,
so
I
can
understand
what
makes
them
tick
and
most
days,
I
also
have
the
privilege
of
sharing
our
city's
economic
demographic
and
real
estate,
both
story
as
I
work,
with
new
investors
and
new
capital
sources
to
explore
real
estate
possibilities.
In
other
words,
I
help
people
with
money
to
invest,
get
comfortable
enough
with
Philadelphia's
real
estate
dynamics
to
buy
our
buildings,
build
new
ones
and,
by
extension,
shape
the
environment
that
we
experience
in
our
workplaces
homes
and
when
we
go
outside
to
play,
it's
no
secret.
G
That
Philadelphia
has
been
fundamentally
transformed
over
the
course
of
this
market
cycle.
We
have
constructed
7500
new
units
of
rental
housing
in
Center
City
since
2012
with
nearly
2700
due
this
year,
2.6
million
square
feet
of
new
or
rehabilitated
office
space
is
currently
underway,
virtually
all
of
which
will
deliver
this
year.
3,000
new
hotel
rooms
have
been
added
in
the
downtown
over
the
last
three
years,
and
we've
got
more
than
one-and-a-half
million
square
feet
of
retail.
On
its
way.
G
All
of
this
construction
has
been
facilitated
by
the
10
year
tax
abatement,
which
is
served
to
correct
for
a
market
failure
to
supply
adequate
housing,
office,
space
and
retail.
Where
demand
already
existed
for
it,
you
see
its
impact
in
the
sky
and
you
feel
it
on
the
street.
Our
real
estate
market
has
begun
to
attract
new
investment
dollars
from
New
York,
DC
Chile
and
the
Middle
East,
all
of
which
has
made
significant
investments
in
improving
the
existing
assets
of
the
city.
We
are
not
living
in
the
Philadelphia
of
post-industrial
decline
anymore.
G
Since
the
last
recession,
our
city's
economy,
as
measured
by
jobs,
grew
with
the
third
lowest
rate
among
these
markets,
just
six
percent
over
nine
years,
while
construction
has
been
impressive
regionally,
we
have
added
only
18,000
800
new
units
of
housing
between
2015
and
2019,
just
39
percent
of
the
average
added
in
the
ten
rgeous
metros,
and
if
you're
flipping
through
here,
this
would
be
slide.
Number
three
our
office
rents
are
the
lowest
in
the
Northeast.
G
I
would
caveat
that
by
suggesting
that
Newark
is
the
only
less
expensive
office
market
in
the
Northeast,
with
our
rents
being
25%
lower
than
average
in
central
business
district
and
growing,
just
1.7
percent
annually.
To
put
that
in
context
for
you,
that
is
not
even
keeping
pace
with
inflation,
our
construction
pipeline
is
non-existent
after
2018
and
no
new
office
or
retail
is
set
to
deliver
after
this
year,
with
just
500
units
of
new
housing
set
to
deliver
in
Center
City.
G
Following
this
year's
construction
boom
in
2018
in
the
fifth
largest
city
in
America,
we
live
work
and
invest
in
a
national
and
international
capital
markets.
Environment,
businesses
and
investors
have
tons
of
choice
when
it
comes
to
investment
strategy.
What
types
of
investments,
what
industries?
What
markets
Philadelphia
is
long
suffered,
because
we
have
not
had
enough
innovative
companies
made
the
short
list
of
locations
or
been
able
to
demonstrate
to
these
investors
that
a
stable,
predictable
liquid
investment
environment
exists
here,
conditions
that
are
prerequisites
for
most
investors.
G
Non-Local
investors
are
critical
in
bringing
new
dollars
to
the
city
in
order
to
grow
the
pie
for
our
existing
residents.
We
are
not
living
in
the
age
of
post-industrial
decline
anymore,
but
we
are
dealing
with
its
legacy
daily.
It
has
taken
a
long
time
to
demonstrate
the
value
of
investing
in
Philadelphia
real
estate
and
I
work
to
do
it
every
single
day
we
are
fighting
long-term
historical
headwinds
growth
that
feels
big
to
us,
but
is
small
compared
to
other
markets
and
now
a
possible
rewriting
of
the
rules
of
the
game.
G
Mid
inning
in
our
expansion,
in
the
form
of
disruptive
tax
changes
that
are
going
to
have
serious
consequences
to
the
bottom
line
of
existing
investors,
signal
to
the
broader
capital
markets.
That
Philadelphia
is
unpredictable
and
therefore
risky
to
invest
in
and
generally
make
investors
think
twice
about
choosing
Philadelphia
when
capital
can
go
anywhere
in
the
world.
It
goes
to
the
places
and
path
of
least
resistance
for
the
highest
possible
returns
and
a
predictable
tax
climate
is
critical
to
shaping
that
environment,
corresponding
to
the
changes
in
our
skyline.
G
There
are
a
lot
of
proposed
changes
to
the
business
and
real
estate
tax
structure
of
this
city.
This
budget
season,
as
a
public
policy,
specialist
and
real
estate
economist
I,
am
here
to
tell
you
that
is
my
professional
opinion
that
it
is
too
much
change
in
the
underlying
market
fundamentals
at
one
time
to
expect
these
changes
to
not
negatively
impact
market
dynamics,
rather
than
raise
much-needed
revenues
for
the
school
district
and
vital
public
services.
I
am
deeply
concerned
that
pushing
all
of
these
policy
levers
at
one
time
may
have
the
exact
opposite
effect.
G
Instead
of
raising
revenues,
we
risk
that
new
capital
sources
that
have
grown
the
tax
base
by
bringing
hundreds
of
millions
of
dollars
of
new
investment
to
the
city
will
decamp
for
friendly,
are
more
stable
climbs
along
with
businesses,
and
the
underlying
values
will
decline
as
well.
I
cannot
possibly
understand
how
difficult
of
a
job
you
have
in
front
of
you,
budgeting
tricity
as
large
as
Philadelphia
with
a
population
that
has
needs
as
diverse
as
the
ones
that
we
have.
G
However,
as
a
program
evaluation,
public
policy
and
commercial,
real
estate,
professional
I
can
say
that
drastically
altering
the
real
estate
tax
structure,
overnight
risks
cutting
off
the
flow
of
new
money
to
our
city
and
all
the
ancillary
economic
benefits
that
come
with
it,
risking
the
future
of
Philadelphia
itself.
I
come
from
the
public
sector,
having
spent
my
first
years
out
of
graduate
school
working
around
the
country
and
economic
development.
G
Consulting
then
for
the
Center
City
District
I
joined
jll
in
2014,
because
I
was
curious
about
the
private
side
of
what
real
estate
looks
like
it's
been
amazing,
occasionally
terrifying,
educational
and
quite
a
journey
to
understand
how
two
groups
so
aligned
in
their
overall
missions
of
creating
livable,
workable,
walkable,
beautiful
places
for
everyone
can
so
misunderstand
the
economic
and
social
social
motivations
of
each
side
of
the
table.
It
became
more
apparent
to
me
than
ever
that
this
kind
of
dialogue
is
sorely
needed
to
align.
H
H
G
It's
the
combination
of
all
of
the
different
policies
and
levers
being
pulled
at
once.
It
is
most
concerning
to
me
the
ten
year
tax
abatement.
I
think
you'll
hear
some
testimony
in
a
few
moments
by
some
of
my
colleagues
in
the
industry
that
demonstrates,
but
for
the
abatement
there
are
thousands
of
new
units
of
housing,
as
well
as
millions
of
square
feet
of
office.
That
would
not
have
been
developed.
However,
one
of
the
things
that
is
most
problematic
is
all
of
the
change.
That's
happening
at
one
time.
G
The
increased
in
assessments
two
years
in
a
row
to
bring
values
in
line
with
actual
value.
The
proposed
increase
to
the
tax
rate.
The
proposed
increase
to
the
transfer
tax
proposed
amendments
to
the
ten
year.
Tax
abatement
proposed
construction
tax,
as
well
as
potentially
rewriting
the
tax
code
for
use
in
occupancy
taxes.
G
That's
seven
separate
taxes,
all
that
have
dramatic
impacts
not
just
on
real
estate,
but
also
the
business
community
and
I
can
share
with
you
anecdotally,
that
in
transactions
that
we
have
worked
on
with
investors
that
are
new
to
this
market,
we
have
seen
deals
die
on
the
vine
as
a
function
of
underwriting
assumptions.
Changing
in
the
middle
of
the
process
of
due
diligence
causing
those
properties
do
not
trade,
so
that
kind
of
uncertainty
and
the
full
magnitude
of
the
tax
changes
is
what's
the
most
problematic.
G
Begin
with
a
question
of
affordable
housing
from
an
economic
perspective,
the
only
way
to
ensure
that
housing
remains
affordable
is
to
continue
to
build
new
units.
I,
don't
believe
that
you
can
legislate
your
way
into
affordable
housing
and
I.
Don't
believe
that
you
can
tax
your
way
into
affordable
housing,
I!
G
Think
what
what
happens
is
you
create
a
virtuous
cycle
that
takes
pressure
off
of
the
existing
housing
stock
when
you
build
new
construction,
even
if
it
is
high-end
rental
units
or
high-end
condo
projects
or
high-end
single
family
units,
because
the
population
that
desires
to
be
here,
some
of
those
people
that
are
taking
up
space
in
that
existing
housing
stock
will
trade
up
into
new
properties
so
for
the
people
at
home
and
for
the
general
public?
The
new
construction
that
you
see
has
the
benefit
of
taking
pressure
off
of
the
rental
stock
in
particular.
G
H
Employers
who
would
provide
large-scale
employment
to
people
in
our
city,
who
don't
have
high
skills
or
a
high
degree
of
education,
low
skill
does
not
necessarily
mean
low
wages
at
these
locations.
What
kind
of
policy
do
you
think
would
be
good
for
this
city
in
trying
to
attract
larger
employers,
so
people
in
the
communities
can
support
those
small
businesses
and
and
have
money
and
other
things,
I.
Think.
G
To
mr.
Epps
testimony,
it
is
important
that
we
have
productive
job
training
programs
in
place
in
terms
of
where
we
spend
our
money
and
how
we
train
our
existing
residents.
Education
is
obviously
a
vital
component
of
that.
Furthermore,
I
would
say
simply
that,
even
if
we
are
creating
professional
jobs
within
the
city's
borders
or
jobs
that
require
a
bachelor's
degree
or
more,
each
of
those
jobs
has
the
economic
benefit
of
driving
demand
for
other
services
and
other
lower
skilled
opportunities
or
jobs
or
businesses
that
require
less
skills.
G
So
if
we
create
one
technology,
job
within
the
city
of
Philadelphia,
the
economic
multiplier
of
that
job
as
a
function
of
the
wages
that
that
individual
makes
and
what
they
spend
in
the
community
and
the
services
that
they
consume
is
approximately
five
additional
jobs
for
that
one
technology
job
created.
So
even
though
we
see
the
booming
growth
in
Center
City
of
professional
jobs,
those
jobs
have
the
impact
of
creating
jobs
in
dry-cleaning
businesses
in
restaurants,
in
janitorial
services
and
all
across
the
economic
spectrum
of
skills.
C
C
Started
with
the
federal
level
minimum
wage
of
seven
whatever
it
is,
and
therefore
we
talked
about
this
earlier-
this
state
not
progressing
with
other
states
in
the
region.
We
have
the
lowest
point.
We
have
the
lowest
minimum
wage
in
this
northeast
region,
those
low
skill,
jobs,
have
low
wages
and
we've
need
to
that's
a
policy
issue
that
needs
to
be
addressed
over
time.
That's
part
of
the
challenge
that
we
faced.
C
We
also
have
and
you've
heard
me
say
it
a
thousand
times
and
I
will
continue
to
say
it
is
that
from
a
two
you
forget
for
you
from
even
eight
an
associate
degree
level.
We
have
one
of
the
lowest
levels
in
the
country
and
until
we
change
the
conversation
and
the
culture
of
our
legacy
population,
we
will
be
unable
to
attract
the
jobs
to
fill
it
up.
They
will
go
where
the
talent
is
and
right
now
we
have
difficulty
explaining
to
people
that
we
can
guarantee
than
the
pipeline
of
talent.
C
C
All
of
us
is
the
spirit
of
continuous
improvement.
Many
other
countries
have
beyond
us
because
they
may
start
at
their
job,
but
they
don't
end
up
spending
their
entire,
their
careers
there.
So
again,
this
is
a
cultural
dynamic
that
we've
got
to
change
because
our
legacy
it's
based
on
manufacturing,
100
years
Philadelphia
led
the
nation
in
manufacturing.
You
could
come
out
of
high
school
or
either
not
go
down
to
the
factory
and
get
a
job
and
sustained.
C
I
You
good
morning,
everyone
we
got
a
meeting
just
last
night
on
the
old,
Apple
storage
building.
Many
of
you
know
it.
It's
huge
52nd
of
Baltimore
ghosts
like
about
a
block
and
they
change
zoning
some
years
ago
and
we
need
to
make
sure
in
council
I'll
introduce
something
that
for
this
administrative
review.
I
may
be
saying
the
wrong
tire
of
that
council
knows
because
with
the
City
Planning
just
on
that,
we
don't
necessarily
know
and
they
up
the
apartments
they
want
to
put
in
there
from
112
to
153.
I
But
yet
this
issue-
and
we
wrote
a
bill
a
couple
years
ago,
but
I
think
we'll
ask
the
head
of
rules
who
put
it
in
on
parking.
People
were
complaining.
They
want
something
like
a
hundred
and
fifty
three
units
but
like
sixty
three
parking
spaces,
there's
already
no
parking
in
the
city
and
we
had
one
for
one
years
ago,
but
when
we
changed
it
from
three
for
ten
units,
even
if
we
put
in
this
bill
and
we'll
ask
you
know:
councilman
green
leader,
put
it
on
a
list
and
make
it
six
or
ten.
I
It's
still
not
enough
and
I
think
that
sometimes
those
who
have
and
our
colleagues
who
do
these
projects
don't
realize
what
the
communities
have
to
go
through.
We
had
people
complaining
less
right
who
said,
even
as
they
adorn
construction
they're
parking
in
front
of
their
homes.
She
said:
I
live
on
this
block
I
can't
park
in
front
of
my
own
own
because
of
these
developers
who
are
parking
there
while
they
build-
and
it's
just
that
it's
really.
I
You
know
to
go
to
a
meeting
where
people
are
complaining
in
their
fussing
because
they're
not
they
feel
they're,
not
getting
respect
and,
of
course,
the
owner
sent
somebody
who
basically
said
I,
don't
know
I'll,
take
it
back,
I'll,
explain
and
and
then
to
have
another
community
member
say
what
about
jobs
you
got
to
do
some
jobs,
you
got
to
do
security
and
a
big
building
like
that.
You
got
to
do
some
job,
so
we
have
to
fight
well
ask
for
a
job.
I
What's
the
name
of
job
program,
so
that
he'll
come
to
try
to
hire
people,
but
those
who
want
to
do
business
in
our
city
to
developers
the
business
owners.
The
contractors
you
know
they
have
some
of
them
are
fine,
but
some
of
them
have
to
be
more
fair
and
understanding
what
happens
in
these
residential
neighborhoods
or
a
block.
That's
a
block
off
an
adjacent
to
residences,
so
that
people
don't
feel
they're
already
being
beset
upon,
and
they
already
don't
have
any
opportunity
for
inclusion.
I
So
I'm
asking
you
all,
because
you
deal
with
these
this
population
that
maybe
you
can
tell
them
when
they
come.
If
they
come
to,
you
say
make
sure
for
those
jobs
you
can
all
from
to
the
people
in
the
community.
When
it
comes
to
parking,
you
got
to
say
something
I'll
put
in
my
bill.
I'm
sorry,
I
didn't
do
more,
but
there
was
a
big
at
the
time
we
wrote
it.
I
There
wasn't
so
much
support
and
so
we'll
go
with
the
one
that
is
since
we're
getting
ready
recession,
but
even
6
for
10
units
isn't
enough.
So
we
hope
you
all
will
put
this
in
the
back
of
your
mind
and
help
us
as
we
try
to
support
development
moving
forward,
but
also
support
the
people
who
live
in
those
neighborhoods.
A
C
C
Oh,
by
the
way,
if
you
were
to
pick
up
a
copy
of
the
most
recent
Center
City
District
report,
it
would.
It
would
also
convey
that
many
philadelphians
are
adverse
commuting
to
jobs
outside
of
Philadelphia,
again
many
of
them
to
warehouse,
logistics
and
retail
jobs,
King
of
Prussia
being
one
of
the
primary
places.
Because
that's
where
the
skill
matches
the
job
skill
do.
A
C
C
Know
I
don't
know
offhand
how
many
thousands,
but
it's
thousands,
five
thousand,
two
three,
probably
three
to
five
thousand
and
oh
by
the
way.
It's
as
I
said
it's
just
everything
from
Travis
license
can't
pass
the
drug
test
and
other
fundamental
things
that
prevent
people
from
being
able
to
take
the
job
that
these
employer
requires.
Okay,.
C
A
C
C
C
A
C
A
Isn't
one
of
the
issues
that
we
have
is
two
years
ago?
I
look
at
the
numbers.
We
have
a
population,
that's
26
percent
in
poverty.
At
that
point
we
had
about
32%
of
our
real
estate
taxes
that
weren't
paid
because
there
were
nonprofits,
Ed's
and
meds
whatever,
and
it
left
basically
42
percent
of
the
population
that
paid
all
the
taxes.
Now
it's
in
meds
pay
wage
taxes
and
sales
taxes,
but
I'm
talking
about
the
burt
taxes
and
the
real
estate
taxes.
C
More
jobs,
more
jobs
and
more
and
more
Philadelphians
working,
so
so
we
are
partnering
with
our
on
some
programs,
not
not
all,
but
one
of
my
initiatives
of
the
next
six
to
nine
months
is
to
build
stronger
relationships
with
some
of
our
county,
peers
and
and
transportation
set
to
the
other
day,
because
we
got
to
get
Philadelphians
who
are
unemployed
some
of
them.
The
best
job
opportunity
is
not
in
Philadelphia
it's
in
Somalia
suburbs
and
we
got
to
help
them
get
there.
So
that's
one,
that's
one
initiative,
but
at
the
same
time
we
will
continue.
C
We've
been
the
number
of
jobs,
a
filler
don't
have
it
increased.
Thirty
five
to
forty
thousand
jobs
in
the
last
two
years,
some
have
gone
to
Philadelphia
some
have
not,
but
that
does
improve
the
tax
rates,
regardless
of
whether
it
was
the
job
has
been
filled
by
a
Philadelphian
or
not
and
and
I'm
encouraged
that
we
will
continue
to
see
job
growth.
The
question
then,
over
the
last
two
years,
as
stated
by
mr.
Gilchrist
and
myself,
how
the
good
news
is
our
job
growth
rate
is
now
at
the
national
average.
C
For
the
last
ten
years
we
lag
the
national
average.
Let
me
just
say
one
other
thing
about
legacy.
I
believe
if
you
go
look
at
these
cities
that
are
growing
us,
most
of
them
are
non
and
legacy
Rust
Belt
cities.
Most
of
them,
are
warm
weather,
right-to-work
state.
So
we
got
a
lot
of
legacy
issues
that
you
know.
Kind
of
we've
got
to
share
ourselves,
let
legislation
regulation.
Taxation
are
all
part
of
it,
but
we've
got
to
pick
up
the
pace
if.
G
I
could
make
one
quick
comment
on
that.
That
is
definitely
true
of
this
market
cycle.
When
you
look
at
the
long
term,
job
trajectory
in
1972,
President
Philadelphia
is
19%
below
the
total
number
of
jobs
that
we
had
in
1970
and
New
York
and
Boston
and
Washington
DC
are
all
20
to
25
percent.
Above
the
number
of
jobs
held
in
1970,
each
of
these
cities
has
lost
90
to
95%
of
its
manufacturing
base.
So
there
is
something
special
about
us.
I
would.
C
Agree
and
haven't
lived
in
Boston
and
know
a
lot
about
New,
York
and
DC.
Each
of
them
have
a
unique
element
that
we
do
not
have
and
again
they
have
out-educated
themselves.
We
like
them
in
education
to
a
four-year
degree
attainment
rate
by
houses
35
by
the
way,
good
news,
bad
news.
We
were
25
percent
10
years
ago
with
35
percent,
now
Boston,
New,
York
and
DC
are
all
over
50
I
was
in
Denver
not
too
long
ago.
There
65%
hit
it
to
a
75%.
C
They
were
mad
because
they
only
had
65%
and
again
because
we're
now
in
a
global,
knowledge-based,
competitive
economy,
he
achieved
what
city
state
region
has
the
best.
Talent
wins
the
game
and
right
now,
that's
not
Philadelphia
and
again
it's
based
upon
our
legacy.
We've
not
valued
it.
We
have
not.
The
city
in
this
state
has
not
valued
education.
The
way
other
cities,
States
nations
and
regions
have
we
just
have
not
valued
education.
Let.
A
Me
ask
your
radical
question:
this
is
my
week
for
radical
questions
by
the
way
so
I've
had
a
few
this
week,
so
I'm
gonna,
just
top
it
off
yeah,
that's
okay,
I'm
good
at
trouble.
It
seems
to
me
that
where
we
are
with
in
last
two
years,
the
job
growth
has
been
average,
let's
say
of
the
top
20
cities,
but
prior
to
that
was
close
to
the
bottom.
So
the
last
two
years,
where
you're
saying
we've
done
better
but
we're
still
in
the
middle
yep.
A
Well,
we
could.
What
can
we
do
radically
to
change
that
equation?
Well,
throw
out
an
example
prior
to
1999
we
never
saw
new
construction
in
the
city,
zero,
new
construction,
relatively
rare,
and
we
put
the
tax
abatement
in
place
and
the
city
flourished.
Do
we
need
something
like
that
for
business
development,
so.
C
A
To
take
the
theory
of
the
the
bayman,
the
abatement
theory
is
simply
this:
we're
not
lowering
anyone's
taxes,
but
if
you
decide
to
invest
in
the
city,
we're
not
going
to
tax
you
on
the
improvements.
So
let's
take
that
to
the
business
sector
for
a
minute.
What
if
we
said,
if
you
open
a
new
business
in
the
Philadelphia
or
you
open
a
branch-
and
you
don't
have
any
business
right
now
in
the
city,
we're
going
to
abate
for
the
five
years
exit
amount
of
taxes
or
certain
taxes.
A
C
C
C
C
B
And
you
know
many
members
kind
of
debated
it
and
I
remember
some
of
your
frustrations.
Instead
of
taking
your
baton
bar
and
running
away,
you
actually
join
the
discussion
and
in
your
new
capacity.
So
we
thank
you.
I
do
remember
those
debates
and
conversations
and
I'm
kind
of
a
highbreed
mix
of
a
number
of
things.
I'm,
a
Democrat
but
I
understand.
B
B
So
I've
been
around
long
enough
to
see
some
of
the
changes
and
impacts
of
what
a
tax
abatement
can
do
for
a
center
city
and
what
a
tax
abatement
does
to
certain
neighborhoods
and
gentrification.
So
sometimes
the
unintended
consequences
a
happen
in
that,
and
so
in
our
planning.
We
need
to
be
thoughtful
in
how
things
actually
impact
our
other
other
populations.
B
So
a
couple
of
things
that
about
what
have
I
mentioned
and
took
notes
on
the
fact
that
we
have
right
now,
a
situation
where
reverse
commute
is
an
important
strategy
for
many
workers
in
the
city
of
Philadelphia,
because
the
jobs
are
actually
outside
of
the
city
of
Philadelphia
and
we
have
to
adjust
modes
and
means
of
transportation
to
address
some
of
that.
As
that
did
I
understand
you
correctly.
That
is
correct.
I
B
And
it's
the
beds
part
that
I
I
have
some
struggle
with
that.
If
you
do
not
adjust
those
wages
to
some
degree,
you're,
creating
institutional
poverty,
I've
been
to
other
parts
of
the
country
where
we
have
a
thriving
Seattle
where
Amazon
was,
but
you
did
not
have
a
workforce
that
could
afford
to
live
within
the
confines
of
the
city
and
to
travel
an
hour
to
get
to,
and
they
are
doing
better
than
us
councilman
with
$15
our
jobs.
B
We
so
so
as
I
team
with
my
conservative
colleagues
to
do
this
I
want
you
to
know
that
those
unintended
consequences
we
have
to
take
a
look
at.
There
is
a
wage
gap
that
we
meet.
We
shouldn't
artificially
inflate
because
that
tilts
things,
but
how
do
we
create
real
paying
jobs
if
we
have
a
problem
right
under
our
feet?
There's
3,000
miles
of
infrastructure,
that
is,
over
a
hundred
years
old.
B
There
are
literally
wooden
pipes
that
take
our
waste
out
that
have
to
be
replaced
at
some
point
or
all
of
the
new
construction
will
collapse
under
its
weight.
So
we
have
to
figure
out
how
we
take
a
kid
from
Randolph
skill
center
who
learns
how
to
do
welding
and
the
pipes
and
stuff
like
that.
It
makes
20
plus
dollars
an
hour
to
do
so
and
get
him
to
not
want
to
run
to
Delaware
but
to
live
in
Philadelphia.
B
So
as
we,
my
deep
thinkers
over
there
and
I
appreciate
the
intellectual
property
that
you
possess,
you
have
to
balance
that
part.
We
also
some
of
this.
As
Councilwoman
talked
about.
There
are
unintended
consequences
with
being
discovered,
she's
getting
ready
to
the
Brandywine
project,
which
is,
in
my
opinion,
going
to
change
up
or
add
a
zip
code
in
the
city
of
Philadelphia,
we're
building
horizontally
densely
and
that's
going
to
happen
and
I.
Think
it's
a
great
vision
of
the
future
until
you
figure
out
where
you
got
to
park,
yep.
G
B
You
have
to
figure
out
where
you
get
your
work
force
from
that
can
easily
get
to
to
the
place
of
employment.
So
when
everybody
was
signing
onto
the
amazon
thing,
but
you
made
me,
I
was
the
last
elected
official
Steve
you'll
appreciate
this.
They
bullied
me
in
the
sauna,
a
support
letter
saying
please
come
here
which
projected
50,000
new
employees,
most
of
them,
making
over
$100,000
a
year.
That's
good
news
for
some
and
it's
real
is
relocation
to
others,
because
that
pressure
you
talked
about
by
way
of
the
housing
stock.
B
Everything
is
going
to
go
up
and
I
mean.
Would
you
you
know,
I
would
think,
and
so
we
have
to
plan
this
thing
out
all
of
us
so
that
the
maximum
benefits
for
most
people
happen,
and
so,
when
I
go
into
a
district,
and
we
start
talking
about
tax
increases
in
this
and
that
and
then
we
start
talking
about.
B
Ten-Year
moratoriums
on
taxes
because
of
the
program's
we
produce
people
don't
understand.
Well,
this
is
really
good
for
the
city,
but
you
know
it's
it's
painful
to
me.
So
in
our
messaging
long
story
short,
we
have
to
show
the
prosperity
for
every
segment
for
every
segment
that
all
blue.
What
is
it
that
is
some
clever
thing
rise,
something
like
that.
B
So
we
have
to
figure
that
out
in
our
narrative,
I,
listen
intensely
to
you.
I
felt,
like
I
was
back
in
economics
class.
It
was.
It
was
refreshing.
It's
smart,
but
I
have
to
be
able
to
translate
that
back
to
other
group
of
taxpayers
that
don't
understand
their
prosperity,
growth,
their
shared
prosperity.
So
we
have
to
work
on
that
America
Thank.
G
You
councilman
just
quickly
I
think
today
is
a
really
interesting
step
in
that
direction,
and
I
would
love
to
see
more
dialogue
between
these
sectors
to
make
sure
that
we
can
come
to
the
community
with
a
cohesive
message
and
demonstrate.
You
know
how,
and
why
and
plan
for
our
projects
to
support
them,
to
support
the
community
and
to
grow
the
economy
and
jobs
and
residential
opportunities
for
everyone.
So
I
hope
to
engage
in
that
kind
of
dialogue
with
you
and.
C
You
know
to
our
duo,
United
States
of
America
and
we
have
under
invested
disinvested
in
those
three
categories,
part
of
getting
what
we
got
and
so
we've
got
to.
You
know
understand
that
bridges
and
highways
are
falling
apart
and
we
got
100-year
old
infrastructure
and,
yes,
we
can
employ
hours
and
tens
of
thousands
of
our
citizens
at
various
skills
levels.
If
we
were
to
make
those
priorities-
and
we
have
not
chosen
to
do
that
in.
B
B
You
say
this
and
that's
why
I'll
call
you
my
deep
thinker
that
sometimes
commercial
partners
have
to
shrink
with
different
kinds
of
opportunities
emerging
from
them
like
we're
doing
a,
for
example,
we're
doing
a
hearing
coming
up
one
a
thing
called
porch
pirates
we'd
like
to
lose
catchy
words,
but
what
it
means
is
people
are
stealing
packages
because
more
deliveries
are
coming,
they're,
finding
creative
ways
to
steal
things
coming
in.
Well,
that's
a
cottage
opportunity
for
someone
who
says:
no,
don't
put
it
on
your
porch
drop
it
here.
You
can
pick
it
up
at
night.
C
C
1970
there
abouts
the
city
had
over
2
million
people
so
that
1.6
million
now
so
I
would
argue
that
one
of
the
best
things
that
could
happen
to
Philadelphia's
Amazon
chose
us,
because
we
have
better
the
downside
to
our
50-year
decline.
Is
we've
got
room
for
and
the
Boston
New,
York,
DC
and
others
do
not
they're
at
capacity
we're?
Not
so
we
could
put
200,000
people
in
this
city
and
we
won't
get
200,000
by
the
way
they'll
spend
it
into
our
region.
C
If
we
were
so
fortunate,
but
we've
got
the
capacity
in
the
infrastructure
better
position
than
most
others.
And
yes,
some
parts
do
it's
the
inflation,
but
because
we
are
20%
under
utilize.
The
hotend
we've
done
the
analysis.
The
housing
values
are
Philadelphia
would
rise
less
than
they
would
anyplace
else
that
they
would
go
so.
B
H
Yes,
I
just
wanted
to.
You
know
kind
of
share
perspective
from
this
side
of
the
table.
I
recall
with
Councilman
blackwell,
doing
a
best
practices
in
public
education
from
countries
that
are
really
at
the
top
of
the
top
of
the
list,
and
not
only
in
academics
but
in
career
technical
training,
vocational,
including
testimony
from
experts
from
switzerland
and
austria
and
germany
on
their
vep
program,
public
schools
around
our
country
and
also
experts
as
much
so
as
dr.
H
H
We
have
not
had
that
system
here
in
Philadelphia
and
I'm,
really
just
saying
that
we
have
a
lot
of
experts
in
Philadelphia.
We
did
a
hearing
on
global
opportunities
and
we
had
major
corporations-
employers,
technology
manufacturing.
We
did
all
that
and
you
know
we
have
recommendations
and
we
haven't
put
that
into
practice
and
I'm
saying
on
this
side
here
in
Council,
in
our
administration
city
as
a
whole
and.
H
People
can
work
around,
but
the
constant
ping-pong
ball
effective,
improving,
not
improving
and
I,
say
it,
because
now
that
I've
been
here
in
my
second
term,
I
know
what
councilman
Janie
Blackwell
knows
that
she's
seen
it
before
it's
been
done
before,
and
it's
being
done
again
now
that
I'm
in
my
second
term,
I,
see
a
new
group
of
council
people
doing
what
we
did
last
term
and
I.
Suppose
I
did
what
was
done
before
the
tear
before
right.
I.
H
Think
part
of
that
is
that
we
have
to
kind
of
relook
at
how
our
system
of
government
functions
and
how
the
private
sector
and
our
universities
and
all
our
experts
they
come
to
us
on
a
term
basis
to
share
their
knowledge.
And
then,
in
the
next
term
we
have
a
new
set
of
players,
but
I
would
imagine,
as
I
have
seen
some
other
countries
that
have
institutionalized
that
expertise
beyond
the
mayor
and
beyond
the
council,
that
they
have
a
continuing
role
of
sharing
their
expertise
in
setting
how
the
city
functions.
H
I
I
kind
of
think
of
Philadelphia
and
I
wonder
you
know.
They'll
have
to
do
some
more
research
if
we
don't
have
a
characteristic
of
being
a
city
that
likes
to
kind
of
put
our
hands
in
the
cookie
jar
and
mess
around
with
it.
We'd
like
to
hear
things,
but
we
don't
institutionalize
it
and
give
the
power
in
some
part
to
the
experts,
so
they
can
be
part
of
this
process
and
and
I
would
like
to
say
that
you
know
as
much
as
we
need
your
help.
C
This
is
not
an
overnight
scenario,
but
we
do
have
a
set
of
employers
in
a
set
of
educators
in
a
symbol
to
get
the
conversation
at
a
higher
level
of
what
we
need
to
do
differently
to
get
a
different
outcome
and
how
we
transform
with
and
I,
will
tell
you
with
a
lot
of
difficulty,
a
higher
level
of
engagement
and
involvement
of
the
employers
to
have
their
needs
understood
by
the
educational
community.
That's
both
K
through
12
and
CCP
to
see
if
we
cannot
begin
to
close
that
gap.
C
But
this
is
hard
work
and
one
of
the
things
is
I
would
say
one
of
our
characteristics
is
we,
and
this
is
not,
since
the
the
race
is
going
on,
what
to
call
the
Penn
Relays
going
on
I'll
use
this
metaphor:
we
can
run
a
sprint,
but
the
real
test
is
can
be
run
a
marathon,
and
this
is
long-term
work
to
transform
it.
The
educational
workforce
pipeline
that
the
marketplace
mandates.
If
we
don't
get
if
they
don't
get
it
guess
what
they'll
go
elsewhere.
A
G
C
A
J
Morning,
chairman
dom
chairman
Jones
and
members
of
the
committee,
my
name
is
Yvette
Nunez
on
vice-president
of
civic
affairs
for
the
Chamber
of
Commerce
for
Greater
Philadelphia
I.
Thank
you,
of
course,
for
the
opportunity
to
testify
on
resolution.
One
eight
zero,
three:
six
zero.
We
are
happy
to
provide
comment
on
strategies.
The
city
can
use
to
grow
the
tax
base
and
expand
opportunities
for
all
philadelphians.
J
In
order
for
Philadelphia
to
continue
thriving,
we
must
focus
on
ensuring
that
there
is
economic
growth
at
the
neighborhood
level.
Through
a
roadmap
for
growth,
Action
Team,
the
chamber
seeks
to
work
with
City
Council
to
build
opportunities
for
business
creation
and
growth,
revitalized,
neighborhood
economies
develop
a
trained
and
educated
workforce
and
leverage
our
infrastructure.
We
have
built
a
coalition
of
businesses,
nonprofits,
civic
and
neighborhood
organizations
that
care
about
Philadelphia's
economy,
as
well
as
residents
quality
of
life.
J
This
year,
the
Chamber's
roadmap
for
growth
initiative
is
working
with
chamber
members
and
the
Kenny
administration,
as
well
as
city
council,
on
critical
issues
facing
our
most
vulnerable
populations.
We
are
building
a
pipeline
of
employers
willing
to
hire
from
the
homeless
population,
convening
partners
to
identify
employment
solutions
for
the
panhandling
population
and
taking
our
members
entrepreneurship
expertise
into
neighborhoods
across
the
city.
The
chamber
engages
in
and
supports
a
number
of
programs
and
initiatives
designed
to
improve
educational
outcomes
for
all
kids
in
Philadelphia.
J
We
work
closely
with
the
school
district
of
Philadelphia
on
many
fronts,
from
advocating
for
reoccurring
revenue
in
Harrisburg
to
being
involved
in
a
statewide
coalition
to
modernize
education
funding.
In
the
Commonwealth,
through
our
membership,
the
chamber
has
led
engagement
strategies
across
the
pre-k
to
12
continuum
through
the
following
initiatives
read
to
me,
which
is
a
year-long
program
that
supports
early
childhood
literacy.
J
Our
support
of
read
by
fourth,
the
citywide
effort
to
double
the
number
of
children
reading
at
grade
level,
our
own
future
ready
Career
Pathways,
which
is
a
program
that
engages
middle
schoolers
and
future
career
opportunities.
Our
partnership
with
the
Philadelphia
youth
network
and
youth
workforce
development
are
the
hub
at
Pennsylvania,
CareerLink
West,
where,
along
with
the
City
Philadelphia
youth,
Network
Drexel
and
the
School
District
of
Philadelphia,
the
chamber
partners
to
connect
youth
and
young
adults
in
West
Philadelphia
promise
zone
with
employment
and
education
opportunities.
J
Additionally,
the
chamber
is
working
to
leverage
the
region's
assets
to
further
enhance
Greater
Philadelphia
as
a
premier,
talent
hub.
We
are
doing
this
through
our
education
and
talent,
action
team
and
other
initiatives
that
focus
on
creating
clear
pathways
for
the
alignment
between
individuals
and
employers,
talent
and
Greater
Philadelphia
is
abundant,
diverse
and
imaginative.
Yet
we
often
hear
that
employers
struggle
to
find
and
retain
their
younger
workforce.
Our
chamber
is
working
to
change
that
narrative.
J
Earlier
this
year,
the
chamber
released
ten
ways
to
retain
young
talent,
which
highlights
ten
employment
attributes
that
mid-career
professionals
consider
when
leaving
or
remaining
with
an
employer
and
often
when
they
leave
that
employer
they
are
leaving
the
Philadelphia
region.
Those
top
ten
attributes
are
access
to
leaders,
career
pathways,
corporate
social
responsibility,
creative
benefits,
flexibility,
leadership,
development,
lifelong
learning,
location,
mentorship
and
peer-to-peer
relationships.
We
thank
you
for
the
opportunity
to
appear
before
you
today
and
offer
testimony
on
this
topic.
J
K
D
Good
morning
my
name
is
Nick
front
Eno
I
serve
as
managing
director
of
projects
and
operations
for
the
economy,
League
of
Greater
Philadelphia.
Thank
you
for
inviting
me
to
testify
this
morning,
I'd
like
to
take
this
opportunity
to
shine
a
light
on
the
role
that
a
talented
workforce
plays
in
driving
business
growth
and
expanding
Philadelphia's
tax
base.
Access
to
talent
is
a
chief
concern
for
businesses
across
industries,
and
a
shortage
of
key
skills
in
the
workforce
can
be
a
limiting
factor
on
a
firm's
growth.
D
Now,
globally,
as
jobs
evolve
and
in-demand
skills
change,
employers
across
industries
face
challenges.
Finding
the
right
talent.
In
fact,
the
2018
PwC
CEO
survey,
found
that
a
third
of
US
CEOs
are
extremely
concerned.
The
today's
workforce
doesn't
have
the
right
set
of
skills.
So
what
does
this
mean
for
cities
and,
more
specifically,
municipal
tax
bases?
Well,
cities
with
a
broad
and
deep
talent
pool,
have
a
decided
edge
in
attracting
and
retaining
businesses
and
we're
seeing
this
play
out
now.
D
The
recent
growth
in
population
in
and
around
Center
City
is
testament
to
this,
and
as
Campus
Philly
points
out,
the
number
of
young
adults
with
college
degrees
in
Philadelphia
has
doubled
over
the
past
ten,
and
the
number
of
jobs
in
the
city
has
grown
too,
as
mentioned
earlier,
with
712
thousand
jobs
in
Philadelphia.
Today,
it's
the
highest
level
in
several
decades,
so
it's
on
par
with
the
size
of
the
city's
job
base
in
the
early
1990s.
D
The
city
would
do
well
to
make
strategic
investments
to
ensure
that
Philadelphia
remains
attractive,
so
the
kind
of
top
talent
that
firms
are
looking
for.
This
means
investing
in
enhancements
to
the
public,
realm
and
transportation
access
in
public
safety,
cultural
amenities
and
more.
These
are
important
investments,
but
not
what
I'd
like
to
focus
most
of
my
remarks
on
today,
because
that
the
economy
League.
We
believe
that
for
Philadelphia
to
thrive
and
for
its
tax
base
to
expand
in
a
transformative
way.
We
cannot
be
content
with
just
imported
talent.
D
Our
existing
labor
force
includes
more
than
700,000
people
working
or
looking
for
work
today,
but
Philadelphia
residents,
as
mentioned
earlier,
hold
only
about
53%
of
jobs
in
the
city
and
only
60%
of
employed
philadelphians
work
within
city
borders.
The
hard
but
familiar
reality
is
that
too
many
Philadelphians
lack
the
skills
to
meet
the
needs
of
employers
and
growing
industries
and
thrive
in
the
workforce.
D
The
city
would
do
well
to
double
down
on
programs
that
upskill
residents,
particularly
particularly
in
our
many
disinvested
neighborhoods,
so
they
can
better
compete
for
jobs
and
growing
occupations,
better
aligning
workforce
development
resources
with
industry
needs
is
a
is
critical
to
making
this
happen,
and
the
city's
new
workforce
development
strategy
and
office
of
workforce
development
is
a
strong
step
in
the
right
direction,
but
where
our
industry
needs
today.
I
want
to
speak
just
briefly
to
the
need
within
technology
related
occupations,
which
we
at
the
economy
League
see
as
a
major
opportunity.
D
It's
no
secret
that
globally
tech
skills
are
becoming
increasingly
critical
across
industries.
In
fact,
in
the
u.s.
US
employment
growth
in
tech
Accu,
patient's
has
been
5
times
higher
than
the
national
average,
since
the
early
2000s
and
here
in
the
Philadelphia
metro
area,
growth
and
Technology
related
occupations
accounted
for
25%
of
all
net
new
job
growth,
during
that
that's
more
than
25,000
new
jobs
in
tech
occupations
in
our
region.
D
Since
2002
and
projections
indicate
continued
growth
over
the
next
10
years,
our
region
could
see
upwards
of
forty
four
thousand
job
openings
in
IT,
and
these
are
good-paying
jobs.
With
a
mean
annual
wage
of
eighty
nine
thousand
dollars,
the
average
tech
job
in
Greater
Philadelphia
pays
thirty,
seven
thousand
dollars
more
than
the
average
salary
in
the
region
and
I'd
like
to
also
emphasize
that,
contrary
to
popular
belief,
more
than
a
third
of
tech
workers
hold
less
than
a
bachelor's
degree.
The
tech
workforce
includes
a
broad
range
of
what
we
call
middle
skill
jobs.
D
These
include
computer
user
and
Network
Support,
Specialist
web
developers,
health
information
technicians
and
others.
These
jobs
are
often
filled
by
workers
with
an
associate
degree
in
industry,
certification,
experience
in
some
training
programs
or
some
combination
of
credentials
and
experience,
and
not
only
the
middle
skilled
tech.
Jobs
provide
entry
points
into
a
growing
field
that
pays
family-sustaining
wages.
They
are
on
ramps
to
long
term
career
pathways.
D
The
bottom
line
is
tech.
Job
growth
represents
a
major
opportunity
for
our
city,
but
how
to
capitalize
a
few
places
where
the
city
can
take
the
lead,
as
outlined
in
the
economy,
league's
driving
tech
talent,
growth
in
in
phl
action
framework
that
we
released
last
year,
number
one
supporting
efforts
to
launch
a
tech
industry
partnership
that
will
allow
firms
to
collaborate
more
closely
around
shared
needs
and
solutions,
and
there's
some
early
work
happening
in
the
administration.
D
Right
now
around
this
supporting
the
expansion
of
employer
led
internship
and
apprenticeship
programs
to
help
more
City
residents,
acquire
critical
tech
skills
and
compete
for
jobs,
and
three
prioritizing
and
funding
inclusion
of
tech
learning
in
K
to
12
curricula
to
build
a
sustainable
pipeline
of
tech
talent
over
the
long
term.
Well,
just
the
tip
of
the
iceberg.
Advancing
these
efforts
will
help
put
Philadelphia
on
the
path
to
deepening
and
broadening
its
tech,
talent,
pool
making
the
city
more
attractive
to
businesses
and
providing
a
platform
to
raise
people
out
of
poverty
at
the
economy
league.
D
K
Good
good
morning,
I'm
Steve
Mullen
president
of
eConsult
solutions.
It
proudly
Philadelphia
firm,
even
though
I
wish
I
had
spelled
it
correctly
here.
I
want
to
thank
you
for
inviting
me
to
share
some
thoughts
concerning
the
growth
of
the
city's
tax
bases
and
I'll
use
as
plural.
It
is
something
that
that
I
have
been
personally
and
professionally
interested
in
for
a
quarter
of
a
century
or
more
and
I
think
as
I
look
around
the
room,
I'm
in
one
way
shape
or
form.
I've
worked
with
almost
everyone
here.
K
It
is
something
that
is
personally
passionately
important
to
me
here.
You
have
heard
and
will
hear
many
details
and
information
from
excellent
experts
during
this.
These
hearings
and
and
more
to
come,
I
know
rather
than
repeat
many
of
their
great
points.
I
would
like
to
share
my
big-picture
sort
of
a
macro
view
of
the
past
current
and
future
growth
of
the
city's
economic
basis
and
primarily
be
a
growth
in
population.
K
The
cause
is
in
effect
and
my
views
as
to
what
generically,
at
least
that
city
government
should
and
should
not
do
to
positively
impact
future
growth
and
therefore
not
only
see
the
city's
general
revenues
grow,
but
also
and
I
believe
much
more
importantly,
to
increase
the
economic
opportunities
and
standard
of
living
for
Philadelphia's
citizens
and
I
have
to
note
here.
I
do
not
believe
that
those
two
are
always
mutually
consistent
objectives.
K
First,
we
live
in
a
city
that
until
recent
that,
until
that
men
excuse
me
that
until
recently
had
not
seen
population
or
economic
growth
for
more
than
half
a
century.
The
basic
reason
for
this
was
people
resident
here
and
anywhere
had
clear
economic
reasons
not
to
live,
work
and
invest
outside
of
the
city
of
Philadelphia.
Our
reaction
in
general
was
to
tax
and
regulate
people
and
businesses
even
more
leading
to
the
city
becoming
increasingly
less
attractive
for
economic
activity.
K
We
were
less
competitive
and
we
were
losing
to
other
jurisdictions
when
I
was
in
city
government
in
the
1990s,
one
of
the
in
vogue
concepts
was
managing
decline.
If
there's
ever
something
that
that
sort
of
doesn't
have
a
rainbow
or
happy
ending
there
decline
was
the
envelope
story,
scholars
studied
it
and
we
had
delivered
detailed
analyses
of
how
to
do
this,
but
that
world
can
only
function
with
two
economic
characteristics:
one.
We
need
to
have
financial
resources
imported
in
from
someone
else.
In
other
words,
we
would
be
dependent
and
second,
perhaps
more
important.
K
K
Fortunately,
the
underlying
trends
of
decline
have
changed
structurally
and
not
cyclically.
I
am
NOT
a
big
believer,
Laurent
Gilchrist
was
talking
earlier
and
she
mentioned
something
about
market
cycles.
Here,
I
am
a
big
believer
that
the
future
in
Philadelphia
is
a
structural
deals
within
what
the
government
can
do.
Deals
with
structural
change,
not
not
such
a
cyclical
change
here,
and
that
the
business
cycle
essentially
is
nowhere
in
our
control
at
all,
but
encouraging
the
continued
structural
change
is
within
the
city.
K
Governments
in
the
cities
can
control
in
the
past
story,
we're
all
familiar
with
the
cycles
that
combined
with
structural
economic
decline,
we
would
go
into
a
downturn,
a
national
downturn.
First,
we
would
go
deeper,
we
would
come
out
later
and
we
would
rise
lower
here
and
that's
the
that
was
the
signal
that
was
the
symptoms
going
down
at
the
at
the
end
of
the
Great
Recession.
We
had
a
sort
of
a
slight
turn
in
that
in
that
we
didn't.
We
didn't
drop
as
deep
as
many
other
cities
and
we
didn't.
K
Our
population
is
actually
growing,
so
it's
not
a
smaller,
weaker,
economically
vibrant
version
of
ourselves
each
time
out,
but
these
trends,
this
structural
trend,
is
largely,
if
not
completely
due
to
national
economic
and
demographic
factors
and
I,
say
simply
put
I
believe
that
we
do
not
know
how
to
grow
meaning.
We
do
not
know
how
to
deal
very
well
with
the
consequences
of
more
people
and
businesses
and
investors
wanting
to
be
in
Philadelphia.
K
No
one
under
the
age
of
75
can
remember
a
time
when
Philadelphia's
population
grew
and
when
its
economy
grew
in
proportion
to
the
nation's
economy.
Growth
became
a
foreign
concept
to
many,
with
stagnation
and
decline
being
seared
into
our
vision,
our
hopes,
our
forecasts
and
our
behavior
worse.
We
have
managed
in
many
quarters
now
to
see
population
and
economic
growth
is
a
bad
thing.
K
Clearly,
the
biggest
changes
we
are
witnessing
now
is
that
more
people
want
to
locate
in
Philadelphia
than
want
to
move
out
leading
to
a
population
increase
that
is
frankly
shared
across
most
urban
centers
in
the
United
States.
A
city's
population
change
is
comprised
of
three
components:
the
natural
increased
birth
deaths
here,
net
domestic
migration-
that
is,
domestic
migration
in
domestic
migration
out
and
net
foreign
migration,
which
is
emigration
emigration,
nobody
emigrates
here,
so
we
basically
consider
it
emigration.
K
In
the
past
decade,
the
city's
foreign
net
migration
immigration
has
been
significantly
higher
than
it's
been
for
a
hundred
years.
By
the
way
it
used
to
be
very,
very
big,
obviously
a
century
or
more
ago
and
intra
and
importantly,
the
in
effect,
the
city's
overall
population
increase
has
come
primarily
from
this
source.
Additional
additional
foreign
immigration,
also
net
out-migration
domestic
out
migration
has
decreased.
K
It
is
still
negative,
but
it
has
decreased
mainly
due
to
younger
generations,
choosing
urban
lifestyle
over
suburban
lifestyle
and
staying
longer
and
to
a
smaller
degree,
empty-nesters
choosing
urban
lifestyles,
but
don't
be
fooled.
Most
of
those
groups
still
live
in
suburban
areas
and
will
continue
to
do
so.
The
point,
however,
is
statistically
a
relatively
small
portion
of
a
very
large
population.
Changing
their
behavior
can
reap
huge
population
changes
for
the
city.
I
expect
this
behavioural
change
to
continue
far
into
the
future.
This,
along
with
increased
foreign
emigration
to
Philadelphia,
will
lead
to
continuum.
K
In
some
cases,
the
inside
the
city
limits
they're
here,
the
net,
the
percentage
net,
out-migration
domestic
out
migration
for
all
of
these
cities,
including
New
York
City,
was
all
the
same
proportion.
We
had
the
same
proportion.
Well,
we
did
not
have
was
huge
foreign
emigration
during
the
last
20
during
the
last
20
years,
and
that
is
changing,
I
think
for
Philadelphia
for
the
better
as
an
economist,
I,
look
at
markets
and
incentives.
K
If
we
want
our
citizens
to
have
better
economic
opportunities
to
achieve
higher
standards
of
higher
standards
of
living,
we
should
encourage
not
discourage
business
activity,
which
generates
the
labor
demand
required
to
eat,
increase
employment
and
that
we
should
do
things
that
lower,
not
increase
the
cost
of
consumption.
I
have
to
note
here
too,
one
of
the
albatrosses
that
I
that
I
have
around
my
neck
is
when
we
talk
about
taxes
here
have
to
go
on
the
record
and
say
the
what
I
consider
to
be
the
killer.
K
Tax
in
this
city
is
no
longer
the
wage
tax
and
no
or
any
of
their
taxes,
except
for
the
net
income
portion
of
the
business
and
business
and
receipts
tax
old
BPT,
the
net
income,
that
is
our
corporate
income
tax,
and
that
is
what
I
consider
to
be
the
major
killer
tax
for
Philadelphia.
If
we
want
people
to
have
better
housing
opportunities,
we
should
encourage
not
discourage
greater
housing,
supply
and
greater
rehabilitation
of
a
very
large
stock
that
we
have
existing.
K
A
legitimate
and
important
topic
today
is
the
notion
of
fair
or
equitable
growth
and
I
believe
it
is
the
single
biggest
issue
we
face
in
the
city
today
and
I
think,
rightfully
so,
and
I
don't
think
it's
unique
to
Philadelphia
mm-hmm
each
of
each
of
you
and
your
questions
have
commented
on
it
and
all
of
the
all
of
the
respondents
and
I
suspect.
Continuing
this
in
these
hearings
will
all
comment
on
that.
K
Not
dealing
with
it
appropriately
could
lead
us
back
to
the
decline
we
experienced
for
so
long
with
all
of
the
harm
to
our
many
citizens
that
we've
that
we
have
witnessed
over
those
decades.
Until
we
are
all
clones,
however,
we
will
not
all
agree
on
what
constitutes
equitable
growth
and
we
will
not
all
share
the
same
value
judgments
underlying
these
trade-offs.
But
that's
exactly
why
we
have
governments
to
make
collective
decisions
in
worlds
where
we
have
different
views
and
values.
K
So,
regardless
of
any
individual
view
of
fairness,
I
believe
we
can
accomplish
more
equitable
growth
and
development
in
one
of
two
ways:
first,
by
figuring
out
ways
to
better
understand,
what's
going
on
and
help
more
widely
distribute
the
vast
economic
benefits
of
population
and
economic
growth
or
two,
we
can
try
to
make
it
more
equitable
by
considering
the
growth
itself
is,
and
we
can't
handle
it
and
discourage
that.
But
to
me
that
is
not
really
equitable,
because
the
poor
will
always
be
harmed
by
slow
and
no
economic
growth.
I
would
vote
for
the
first
approach.
K
Indeed,
I
think
that
all
of
the
ingredients
necessarily
to
necessary
to
achieve
a
truly
remarkable
economic
transfer
formation,
never
really
accomplished
anywhere
on
the
planet.
Earth
to
date
are
sitting
right
next
to
the
pot
on
the
stove
I
believe
strongly
that
our
intentions
are
good
and
our
leaders
are
talented
and
committed.
K
Thus,
we
have
we
have
capacity
to
make
the
amay
an
amazing
pot
of
soup,
and
by
doing
so
we
will
make
Philadelphia
the
world's
premier
showcase
of
fair,
equitable
and
inclusionary
economic
growth
in
a
truly
diverse
City
and
economy,
and
then
we
will
get
on
the
cover
of
The
Rolling
Stone.
Thank
you.
Thank.
A
H
H
Some
people
may
know
less
of
it.
Some
people
may
know
more
of
it,
but
at
the
end
of
the
day,
how
does
it
translate
from
good
suggestions
into
action?
Items
I'd
like
to
just
recall
that
sometime
in
2013
or
14
I
met
with
about
60
major
employers
in
our
region
over
the
idea
of
implementing
into
our
school
district,
a
ve
T
program
and
as
Councilman
taubenberger
knows,
because
he's
been
to
Germany.
H
It
was
written
into
the
bill.
The
Charter
change
as
part
of
what
the
City
School
District
would
do.
It
didn't
go
anywhere
and
I
think
the
issue
of
what
we're
doing
about
our
public
education
is
a
ongoing
situation.
We
certainly
are
it's
wonderful.
We
have
it
back
and
it's
certainly
very
challenging.
H
I
understand
mayors
doing
everything
he
can,
but
ideas
have
to
become
a
practical
path
and
someone
described
Philadelphia
as
a
city
of
a
bunch
of
cats
all
going
in
a
different
direction
and
not
pulling
together
and
I
guess
the
real
point
of
my
story
is,
and
so
it
didn't
work
out,
but
what
about
the
60
employers
who
wanted
to
have
the
program
if
it
didn't
work
on
our
side?
You
know
because
we're
a
democracy
we
argue
with
each
other,
sometimes
work
with
each
other
disagree
agree,
but
the
60
employers
and
the
other
employers
wide.
H
Why
don't
they
form
their
own
group?
Why
don't
they
push
this
in
education?
Why
don't
they
go
ahead
and
start
you
know
creating
opportunities
to
see
a
ve
T
program.
For
example,
we
have
a
music
task
force,
it's
a
music
task
force
of
music
experts,
Grammy
Award
winners,
I,
dare
say
no
unqualified
person
on
there,
because
a
politician
put
them
there
and
by
the
way
no
politician
sits
in
their
meetings.
H
Know,
there's
things
we
have
to
do
and
I
think
most
of
it
falls
into
the
the
ability
to
do
it
falls
into
the
you
know,
really
the
power
in
this
cities
with
the
mayor
and
and
the
school
district
and
others,
and
we
have
our
responsibility,
but
but
I
do
without
trying
to
shirk
from
our
responsibility
on
council
I.
Do
wonder
about
the
fact
why
is
it
so
difficult
in
Philadelphia
to
get
everybody
on
one
sheet
of
music.
H
D
I
could
just
make
two
comments
in
response
to
your
comments.
Number
one
I
would
submit
that
as
nationally
the
labor
market
gets
tighter
and
it's
harder
for
it's
harder
for
employers
to
hire
and
retain
talent
that
it
becomes
easier
to
bring
employers
to
the
table
around
additional
solutions.
For
you
know,
workforce
training
and
investing
in
their
own
their
own
workforce.
So
I
would
say
that,
as
now
as
the
labor
market
is
as
tight
as
it
has
been
in
a
while
that
there
is
probably
better
opportunity
to
engage
employers,
and
there
has
been
some
time.
D
H
Thank
you
very
much.
I'll
just
add
anecdotally
that
I've
been
around
the
world
on
my
computer
I've
been
to
all
kinds
of
cities.
I've
looked
at
in
great
detail
to
kind
of
best
practices,
there's
nothing
like
going
out
there
and
meeting
the
people
and
hear
what's
not
written
on
the
computer,
but
I
just
think
that
in
today's
world,
with
the
internet,
I
mean
I've,
seen
amazing
things
done
in
Latin
America
around
public
transportation.
H
H
Employers
can't
create
a
ve
T
program
and
we
can't
either
we
have
to
go
to
Harrisburg,
get
legislation
exception
city
of
the
first
class
in
order
to
implement
such
a
system,
but
we
do
have
to
move
it
forward
and
we
do
need
the
support
of
the
business
community,
the
employers
and
others,
the
education
advocates
and
all
that
the
unions
to
make
that
happen.
Thank
you,
Thank
You
councilman
thank.
A
You
I
have
a
few
comments:
I
guess,
mr.
front
II
know
you
I'm
a
big
believer
in
tech.
First
of
all,
just
put
it
out
there.
I
love,
I,
know
your
technology,
because
I
think
it's
the
future,
because
I
read
recently
that
46%
of
our
jobs
in
the
country
in
the
next
20
years
are
going
to
be
replaced
by
technology.
I
mean
the
numbers
are
staggering.
So
here's
my.
B
A
My
frustration
right
now
we're
in
a
budget
process
we're
being
asked
to
fund
the
schools
which
are
in
favor
of
funding.
What
I
would
like
to
see,
though,
are
certain
metrics
required
in
the
funding,
so
we
know
that
technology
is
the
future.
We
know
we
have
a
relatively
little
train
lack
of
training
and
many
of
our
workforce
jobs
that
we
can't
fill.
We
heard
from
the
Commerce
director
that
we
need
to
educate,
better
and
so
I'm.
Looking
out
and
saying.
A
Why
are
we
not
number
one
requiring
from
pre-k
to
12th
grade
teaching
and
I've
said
this
before
teaching
financial
literacy,
teaching
technology
and
teaching
entrepreneurship
number
one
number
two.
Yesterday,
council
I
mentioned
the
Cristo
Rey
school.
We
know
Cristo
Rey
works,
we
know
it
works.
They
had
I,
think
86
students
in
their
senior
class,
all
86
graduated.
A
A
One
day,
a
week,
kind
of
a
councilman
I
was
talking
about
to
a
degree
one
day
a
week
in
a
job
from
9th
10th,
11th
and
12th
grade
and
I'm
a
believer
because
I
have
Cristo
Rey
in
both
of
my
places
of
work
and
I,
see
these
kids
who
come
there
and
they're
doing
unbelievable.
Yes,
they
have
a
graduate
is
going
to
swap
more
next
year.
Why
are
we
not
doing
that?
My
question
enough
for
this
panel
just
want
to
get
it
out
there.
A
Why
is
the
public
school
system
not
adopting
10
or
20
high
schools
and
matching
them
up
to
the
Cristo
Rey
model?
Even
if
the
pay
is
minimum
or
there's
no
pay
the
experience
of
working
in
a
job
and
then
being
exposed
to
four
different
job
experiences
is
huge,
especially
if
we
could
match
some
of
these
kids
with
tech
companies
where
they
can't
get
jobs,
because
one
out
of
three
jobs
in
tech
don't
require
a
college
degree.
A
They
can
go
right
into
coding
or
our
job
in
tech,
so
I'm
a
little
frustrated
that
we
don't
do
this,
because
we
know
what
works
and
I'd
like
to
see.
If
we
could
somehow
require
this,
if
we're
gonna
fund
the
school
system
to
two
metrics
that
we
leased
well,
we
invest
the
money.
We're
gonna
see
the
results.
If
you
have
any
comments,
I
just
wanted
to
put
it
out
there,
because
it's
something
that
I'm
very
passionate
about
I'll.
D
A
L
Thank
You
mr.
chairman
and
members
of
council,
my
name
is
David
Grasso
I
am
the
CEO
and
founder
of
Grasso
Holdings.
Were
we
develop
own
and
operate
office
buildings,
multifamily
projects,
mixed-use
projects,
apartment,
hotels
and
restaurants
in
Philadelphia?
We
also
develop
owned
and
operates
projects
of
similar
nature
and
other
markets
such
as
New,
York,
Washington,
Tampa,
Charleston,
Detroit
and
Chicago.
I
live
in
Philadelphia.
L
My
children,
I'm,
proud
to
say,
are
products
of
the
public
school
system
in
Philadelphia
we
employ
about
150
people
in
Philadelphia
I'm
here
to
urge
city
council
today
to
seek
out
and
consider
alternative
ways
to
fund
critical
city
programs
that
don't
drastically
modify
the
10
year.
Tax
abatement
or
decrease
the
pace
of
cuts
to
the
business
income,
receipts
tax
or
add
additional
cost
to
construction.
L
L
What
the
ten
year
tax
abatement
has
been
a
blessing
to
my
business
and
I.
Think
to
the
city.
I
know
to
the
city
and
I
fear
that
doing
away
with
that,
as
well
as
some
of
the
other
programs
that
have
helped
spur
the
growth
in
jobs
and
new
residents
in
Philadelphia
will
do
much
more
harm
than
it
will
do.
Good
to
the
city.
L
We
must
look
for
other
ways
to
generate
revenues,
then
measures
that
discourage
businesses
from
investing
in
the
city,
the
scheduled,
the
cuts
that
we've
been
making
to
the
business,
improve
that
the
the
gross
receipts
tax
have
shown
the
business
community
that
were
serious
about
wanting
new
businesses
to
come
to
our
city.
To
change
that
now,
we'll
send
the
completely
wrong
message
to
businesses
that
want
to
come
here.
L
The
tax
market,
for
example,
I'm
trying
to
finance
a
project
that
I've
been
working
on
for
many
years
in
East,
Falls
on
Kelly
Drive,
one
capital
source
that
I've
been
working
with
for
a
long
time
finally
decided
to
pass
on
the
project,
because
they're
they're
not
sure
what
the
taxes
are
going
to
be
on
this
project
in
the
future.
I
have
another
project
in
Philadelphia
and
office
building,
I
own
in
senator
city.
L
It's
it's
impossible
to
predict
what
this
property
is
gonna
be
worth
in
the
future.
Therefore,
it's
a
very
makes
it
much
more
difficult
to
attract
capital,
particularly
institutional
capital,
to
come
to
this
market
and
buy
it
and
invest
in
these
properties.
So
I'm,
seeing
you
know,
compare
this
to
a
market
like
Detroit,
where
I
have
multiple
investments
in
Detroit
Detroit
is
suffers
from
a
lot
of
ills,
but
you
know
one
thing
that
it
has
that
Phil
does
not
have
that.
Philadelphia
does
have.
Is
institutional
capital
making
investments
in
Philadelphia?
L
The
reason
they
one
of
the
reasons
they
don't
like
Detroit
is
uncertainty
about
what
the
properties
will
be
worth
in
the
future.
They
they
have
a
tax
abatement
program
in
Detroit.
Unfortunately,
it's
unpredictable,
whether
you
get
the
tax
abatement
or
not.
So
therefore,
you
can't
predict
you're
gonna
get
it
and
therefore
they
assume
you're
not
going
to
get
it
so
they're
reticent
to
make
the
investment
in
that
marketplace.
L
It
cost
as
much
as
you
probably
know
it
costs
as
much
to
build
a
project
here,
as
it
does
in
New
York.
Almost
it
cost
as
much
as
it
does
in
Chicago
cost
as
much
as
it
doesn't
bought
in
Boston
to
build
a
project
here
in
Philadelphia.
However,
we
get
a
fraction
of
the
revenues
from
rents
that
we
do
in
those
other
marketplaces.
You
know
the
ten
year
tax
abatement
was
implemented
in
put
in
part
to
counter
that
problem
in
Philadelphia
and
I.
Think
it's
done
a
decent
job
of
doing
that.
L
To
do
away
with
that
now
you're
going
to
see.
Even
what
will
happen
is
the
value
is
a
real
estate
will
go
down,
assessments
will
go
down.
Tax
revenues
will
go
down,
you'll,
see
less
trades
of
real
estate,
you'll
see
less,
therefore,
the
less
transfer
tax
revenue
and
you'll
see
less
people
moving
into
the
city,
less
less
new
construction,
which
will
mean
less
gross
receipts.
L
Tax
I
think
it's
a
short-sighted
fix
to
the
problem
that
doesn't
mean
that
they're,
that
it
doesn't
it
couldn't
use
some
updating
and
some
to
make
it
to
make
it
more
equitable.
There
are
clearly
you
know
huge
problems
in
the
city
with
with
the
school
system
and
with
you
know
the
deep
poverty
in
many
of
our
neighborhoods.
You
know
we
need
to
find
ways
to
to
increase
funding
for
the
school
system
that
don't
discourage
businesses
from
coming
in
to
Philadelphia.
L
That's
my
fear
there's,
but
it's
really
about
my
fear
that
we're
going
to
take
short
started
approaches
to
these
problems
that
will
do
more
harm
than
they
will
do.
Good
and
I
really
urge
council
to
be
very
thoughtful
about
these
new
measures
that
that
with
people
have
been
talking
about
implementing,
like
the
modifications
to
the
tenure
tax
abatement,
reducing
the
cuts
to
the
gross
receipts
tax,
increasing
the
the
construction
tax,
you
know
we're
already
much
more
explorative
way
more
expensive
than
we
should
be
construction
wise
in
Philadelphia.
L
Now
we're
going
to
add
another
cost
on
to
that.
It
seems
as
ludicrous
to
me
to
do
that.
We
have
so
many
advantages
in
this
city.
We
have
we're.
A
walkable
city
were
comparatively
cheaper
to
live
here
than
any
others,
many
others
we
need
to
take.
We
should
take
advantage.
We
need
to.
We
need
to
find
ways
to
bring
new
businesses
here
and
increase
the
tax
base,
but
I'm
concerned
that
we're
going
to
kill
the
goose
that
laid
the
golden
egg.
M
Good
morning
can
say
that,
still
before
noon,
my
name
is
Brian
Cohen
I'm
vice
president
and
market
officer
for
Liberty
Property
Trust,
where
I'm
responsible
for
Liberty's
Philadelphia
development
and
real
estate
portfolio
I
am
neither
an
economist
nor
public
policy
expert.
So
I'm
gonna
be
focusing
my
comments
on
commercial
real
estate
and
some
of
the
challenges
that
our
industry
faces
and
some
of
the
concerns
of
unintended
consequences.
Of
a
few
of
the
current
proposals
that
are
currently
out
there,
that
I
think
Lauren
listed
Liberty
was
founded
46
years
ago
by
Bill
rouse.
M
We
are
a
10
billion
dollar
real
estate
company,
publicly
traded
on
the
New
York
Stock
Exchange.
We
have
properties
in
25
different
geographic
markets,
but
our
roots
are
in
Philadelphia
and
we've
been
very
active
in
Philadelphia.
So
since
2004
we've
developed
19
office
and
industrial
buildings
total
about
4.6
million
square
feet
of
space.
So
that's
the
equivalent
of
about
four
and
a
half.
Comcast
centers
represents
an
investment
of
about
two
billion
dollars,
so
we're
very
active
in
the
city.
M
But
more
importantly,
I
think
for
for
the
city
is
that
these
developments
have
created
over
10,000
construction
jobs.
They're
currently
occupied
by
53
different
companies,
which
employ
approximately
20,000
people
in
the
city
of
Philadelphia
customers,
include
Comcast
GSK,
tasty
baking-pan
health,
Thomas,
Jefferson,
University
Hospital.
M
In
our
role
as
an
owner
and
a
developer,
we
are
constantly
marketing
the
city
to
companies,
to
move
into
the
city,
to
expand
into
the
city,
to
stay
in
the
city
and
really
we
represent
kind
of
the
frontline
sales
people
in
Veni
many
instances
for
business
attraction
in
the
city
of
Philadelphia
and
over
the
last
17
years
that
I've
been
with
Liberty.
The
narrative
has
improved
dramatically.
M
However,
while
the
narrative
is
improved,
the
Philadelphia
sales
pitch
is
not
without
its
challenges.
Cities
confronted
by
a
very
high
cost
of
construction,
which
ranges
between
30
and
40
percent,
higher
than
that
which
occurs
just
outside
the
city's
borders
in
the
suburbs
and
is
also
higher
than
many
other
cities
across
the
country.
In
addition,
the
tax
environment
again
has
improved,
but
in
many
ways
it's
still
less
favorable
than
what
occurs
just
outside
of
the
city
and,
as
others
have
said,
Philadelphia
trails,
other
cities
in
those
key
demographic
indicators
which
affect
real
estate.
M
M
Every
single
new
construction
office
building
in
the
city
of
Philadelphia
over
the
last
15
years
has
required
some
sort
of
public
subsidy
in
addition
to
the
10
year
tax
abatement.
So
you
can
see
that
Philadelphia
has
already
kind
of
its
challenges
as
far
as
getting
new
office
buildings
out
of
the
ground
in
the
city.
M
That
being
said,
we
recognize
the
city
faces
a
lot
of
challenge
and
that
to
change
the
trajectory
additional
funding
sources
are
required.
However,
we're
very
concerned
about
some
of
the
unintended
consequences.
The
cumulative
effect
of
some
of
these
recent
proposals
and
recent
changes-
I'm
not
going
to
list
them
I
think
Lauren
did
a
great
job
at
listing
them,
but
these
proposals,
I,
want
to
point-
are
also
against
the
backdrop
of
new
stormwater
regulations,
which
will
increase
the
cost
of
construction
and
more
stringent
energy
code
requirements
again
also
increasing
the
cost
of
construction.
M
Currently,
my
team
and
I
were
in
discussions
with
seven
different
companies
for
requirements
that
will
either
come
from
outside
of
the
city
or
expand
within
the
city
as
prudent
you,
cumulatively,
those
opportunities
represent
the
addition
of
over
a
thousand
jobs
to
the
city
of
Philadelphia
and
any
additional
costs
in
construction
result
in
a
direct
additional
cost
to
those
perspective
companies.
So
should
they
choose
to
move
into
the
city
at
Liberty?
M
It's
not
just
about
in
my
role,
not
just
about
competing
for
companies
to
occupy
our
buildings,
but
it's
also
about
competing
for
the
finite
capital
to
invest
in
new
projects,
and
we
need
to
think
about.
Are
we
going
to
invest
our
capital
in
Philadelphia?
Are
we
going
to
invest
our
capital
elsewhere
and
with
the
narrative
that
has
been
discussed
in
some
of
the
challenges
that
we've
had?
It's
becoming?
You
know
very
difficult
strategic
decision
to
continue
to
invest
at
the
level
that
we
have
over
that
last
ten
years.
M
Fear
at
the
moment
where
Philadelphia's
make
great
strides
and
developers
are
willing
to
invest
and
companies
are
exploring
the
opportunities
to
locate
and
expand,
were
interjecting
additional
costs
and
uncertainty
that
not
only
causes
pause
for
developers,
but
for
companies
considering
to
stay,
expand
or
move
to
the
city.
Again,
we
recognize
there
are
some
systemic
challenges
that
the
city
month
faces,
which
must
be
addressed
and
will
require
fund
additional
funding
sources
and
that
the
real
estate
community
is
going
to
need
to
be
part
of
that
solution.
M
So
I
think
that
what
we
would
ask
is
that,
before
proceeding
with
a
lot
of
the
current
proposals
and
discussions
that
there's
two
requests
or
suggestions,
one,
we
should
be
sure
to
stress
test
any
proposed
funding
solution
in
both
economic
expansion,
as
well
as
recessionary
times
to
confirm
the
stability
of
the
funding
source.
Many
of
the
proposals
may
have
a
significant
impact
in
an
economic
expansion,
but
will
fall
short
of
expectations
in
a
recession.
M
I
think,
in
my
opinion,
the
stability
of
those
funding
source
sources
should
be
just
as
important
as
the
potential
amount
of
funding.
Second,
we
collectively
ask
that
the
real
estate
community
have
the
opportunity
to
further
engage
a
dialogue
with
Council
about
some
of
these
current
proposals,
so
that
we
can
work
together
to
identify
a
comprehensive
solution
and
both
parties
can
gain
full
understanding
of
the
impacts
of
the
various
proposals
and
hopefully
identify
a
solution
that
would
not
have
severe
unintended
consequences
of
turning
away
businesses
and
ultimately
reducing
the
tax
base.
Thank
you.
Thank.
N
Thank
You
councilman
Dom,
my
name
is
Leo
Adam
Ando,
the
founder
and
Managing
Partner
of
Altera
Property
Group
or
a
philadelphia-based
real
estate
investment
development
company.
We
also
have
investments
in
five
or
six
other
states,
so
I
think
similar
to
Brian
and
David
have
a
perspective
on
the
local
market,
but
also
a
relative.
You
know
perspective
on
how
we
stack
up
against
other
major
cities
and
major
places
where
sources
of
capital
can
can
choose
to
invest.
N
Rather
than
read
my
testimony,
which,
which
is
I
guess
already
been
submitted
for
the
record
I'm
just
going
to
touch
on
three
points
and
be
brief:
I
think
that
there's
I
think
there's
a
misperception
on
the
part
of
a
lot
of
people
at
you
know:
citizens
of
the
city
of
Philadelphia
members
of
council,
perhaps
members
of
city
government
administration
that
the
real
estate,
development
and
investment
industry
and
business
is
an
extremely
high
margin.
Lucrative
line
of
work
certainly
is,
with
all
you
know,
commodity
type
assets.
N
You
know
the
values
of
real
estate
go
up
and
go
down
over
time,
but
they
typically
just
so.
You
know
people
understand
we
work
on
I
would
say
eight
to
twelve
percent
margins
on
our
net
basis.
Okay,
we
can.
We
can
talk
a
lot
about
how
that
number
is
derived
and
it
depends
on
the
type
of
real
estate
asset
and
how
long
you
hold
it.
But
at
the
end
of
the
day,
if
you
look
across
all
real
estate
asset
asset
types,
eight
to
twelve
percent
is
a
pretty
good
measure
of
what
the
profit
margin
is.
N
That's
pretty
average.
As
far
as
businesses
go,
it's
probably
more
profitable
on
a
net
basis
than
a
grocery
store,
but
certainly
far
less
profitable
than
being
in
the
software
business
or
being
in
the
insurance
business.
For
example,
okay
I
think
it's
important
that
that's
on
the
record,
because
eight
to
twelve
percent,
when
you,
when
you
consider
the
amount
of
debt
that
most
real
estate
projects
require
now
every
investment
is
different.
You
know
REITs
might
use
different
debt
levels
than
private
developers
like
David
myself,
but
on
average
I'd,
say
sixty.
N
Seventy
percent
of
all
the
capital
that
goes
into
real
estate
is
debt
capital,
not
equity
capital.
So,
if
you
think
about
it,
if
you're
borrowing,
you
know
two
or
three
times
to
one
on
the
equity
you
put
in
it,
doesn't
take
more
than
a
twenty
or
thirty
percent
decline
in
the
value
of
real
estate,
which,
by
the
way,
has
happened
historically,
every
seven
to
ten
years.
N
Okay,
for
your
entire
investment
to
vanish
overnight,
I
think,
in
the
context
of
how
much
can
you
squeeze
out
of
property
owners
and
out
of
real
estate
developers
to
attempt
to
plug
other
funding
sources?
It's
important
that
people
understand
how
relatively
thin
the
margins
are
in
the
business,
how
volatile
the
prices
are
and
how
quickly
you
know
the
the
never
mind
the
profitability
of
it,
but
just
the
capital
invested,
the
equity
capital
invested
can
vanish.
N
Okay,
we're
at
a
point
right
now
in
the
real
estate
cycle,
where
this
is
probably
a
little
bit
more
on
people's
minds.
It
is
on
my
mind
than
it
would
have
been
four
or
five
years
ago,
because
you
know
we
are
almost
ten
years
now
into
the
you
know
into
the
recovery
of
this
current
real
estate
cycle,
and
so
the
market
is
in
itself
outside
of
Philadelphia
at
a
very
critical
juncture.
N
Adding
additional
tax
burden
into
the
industry
on
a
local
level
is
probably
couldn't
be
any
more
poorly
timed
that
then,
then
right
now.
The
second
point
I
want
to
make
is
about
the
ten-year
abatement
and
I
want
to
make
sure
that,
for
the
record,
there's
an
understanding
about
how
the
abatement
is
working
today,
okay,
for
the
last
15
years,
up
until
three
years
ago,
there
was
an
opportunity.
N
The
city
had
that,
unfortunately
didn't
take
advantage
of
until
three
years
ago
to
begin
to
generate
additional
tax
revenues
during
the
ten-year
abatement
by
reassessing
the
underlying
ground
and
the
existing
buildings,
as
they
were
before
they
were
renovated
and
put
under
the
abatement.
Okay,
today,
most
of
the
high
value
property
in
town,
most
of
Greater
Center
City,
has
been,
has
been
reassessed
several
times
and
if
you
look
at
the
percentage
of
the
taxable
basis,
the
the
assessments
that
is
actually
being
build
during
the
10-year
bateman,
the
taxable
portion.
N
The
land
portion
of
that
assessment
is
between
25
and
35
percent
of
the
total
taxes,
that
is,
that
entire
portion
is
taxable
during
a
ten-year
abatement
so
for
residential
properties,
whether
they
be
ten
million-dollar,
condos
or
$600,000
homes,
okay
or
three
or
thousand-dollar
homes.
The
city
of
Philadelphia,
including
the
school
district,
are
getting
tax
revenue
during
the
ten
years
on
approximately
a
third
of
that
property
value.
N
Okay
and
the
third
thing
that
I
want
to
say,
is
all
of
this
uncertainty
around
the
total
cost
of
development
and
ownership
of
real
estate
in
Philadelphia
is
starting
to
have
a
tremendous
drag
on
the
ability
of
local
operators
to
attract
outside
capital.
The
ability
of
for
outside
developers
who
want
to
come
in
to
Philadelphia
and
create
construction
jobs,
create
you
know,
additional
tax
revenues
for
the
city
and
all
the
things
that
out
of
out
of
town
developers
can
also
do
okay,
whether
they
compete
with
us
or
not.
O
You
very
much
first
of
all,
thank
you
very
much
this
panel
for
being
here
and
bringing
forward
your
testimony.
There
are
a
couple
of
things
that
I
wanted
to
pull
out
a
little
bit
because
I,
you
know,
I
think
it's
important.
This
is
a
very
important
discussion
that
we're
having
right
now
and
the
impact
both
from
the
city
and
as
well.
As
you
know,
future
development
in
the
cities
really
important.
So
a
couple
of
questions
I
had
because
I
know.
Mr.
O
L
L
L
L
L
L
L
J
N
Construction,
the
cost
of
development
in
a
broader
context,
okay
We
certainly
have
a
an
issue
with
the
actual
per
square
foot,
cost
of
construction
and
Philadelphia
relative
to
other
cities,
we're
somewhere
between
fourth
and
fifth
most
expensive.
You
know,
in
terms
of
our
actual
hard
construction
costs,
I
think
it
would
be
overly
simplistic
to
say
that
the
problem
is
the
cost
of
labour
or
just
the
general
kind
of
Union
framework
that
most
of
these
large
projects
fall
under
in
Philadelphia
Thursday.
There's
a
myriad
of
things
that
that
are
very
specific
to
this
market.
N
Okay,
that
are
not
just
what
you
know.
A
union
carpenter
electrician
makes
on
hourly
basis.
Okay,
I'll
say
that
one
of
them,
one
of
the
most
significant
situations
in
Philadelphia,
is
the
building
code
in
Philadelphia.
Okay,
that
building
code
is
frankly
stuck
back
in
the
Paleozoic
era.
Okay
and
a
direct
result
of
those
arcane
building
codes
are
and
materials
and
methods
approach
that
drive
construction
costs
up
significantly.
Okay,
now
there's
a
broad
conversation
going
on
right
now,
the
building
code
is
being
updated.
N
Okay,
unfortunately,
the
the
newer
building
codes,
the
2018
IB
C
code-
has
a
lot
of
things
that
make
make
sense.
You
know
kind
of
globally,
nationally
but
and
locally
will
be
implemented.
Like
a
new
energy
code
guidelines,
those
things
are
only
going
to
serve
to
further
increase
the
cost
of
construction,
not
just
here
but
everywhere.
Okay,
on
the
flip
side
of
that
there
are
things
in
this
new
building
code
that,
unless
they
get,
you
know,
pardon
my
addiction
here,
bastardized
locally
when
they
get
implemented.
N
Okay,
there
are
a
lot
of
things
in
that
building
code,
which
will
actually
reduce
the
cost
of
construction
to
offset
the
energy
code
requirements
and
other
things
that
are
going
to
increase
cost.
So
it's
not
just
a
union
labor
issue.
Okay,
it
is,
it
is
a
building
code
issue.
There
are
specific
parts
of
the
building
code
in
Philadelphia
that
create
tremendous
additional
cost
burdens.
N
It
is
also
the
general
framework
around
how
construction
occurs
in
Philadelphia,
the
fees
associated
with
that
construction
and
I
want
to
put
on
record
that
it's
an
this
is
not
it's
not
fair.
To
say
this,
it's
a
it's
a
it's
a
hard
cost
of
construction
issue.
They
that's
tied
back
to
just
the
cost
of
labor.
Okay.
It
is
a
much
more
nuanced
problem
than
just
that.
O
I
mean
one
of
the
issues
that
we're
talking
about
is
that
we
have
a
tool
with
the
abatement.
That's
pretty
you
know
blunt
in
terms
of
its
you
know:
distribution
across
the
city
and
not
a
particularly
refined
instrument,
and
so
part
of
it
is
because
we're
hearing
so
much
about
the
costs
of
construction
and
I.
O
Just
think
it's
important
for
you,
as
you
come
before
us
as
you're
detailing
out
the
need
to
retain
things
that
offset
the
costs
of
construction
like
an
abatement,
we're
using
that
to
compensate
to
some
extent
for
some
of
the
costs
that
we're
also
very
clear
about
with
some
of
the
costs
are
so
that
we
can
have
clarity.
As
you
know,
you
keep
talking.
We
keep
talking
that
we
start
to
identify
those
elements
that
we
can
start
to
look
at.
O
So
there
needs
to
be
something
that
goes
beyond
you
know,
a
broader
public
understanding
of
the
specific
costs
that
are
associated
with
in
the
building
code.
So
we
can
start
to
tackle
some
of
those
things
that
make
sense,
recognizing
that
the
broader
public
is
compensating
for.
You
know
what
maybe
other
things
that
could
be
addressed
in
other
ways,
and
that
doesn't
mean
that,
of
course,
you
know,
there's
no
conversation
on
on
either
end
about
the
importance
of
taking
a
look
at
the
tools
that
we've
given
to
help
offset
some
of
these
costs.
O
But
you
know
to
me
it's
very
important
to
outline
what
the
costs
are
as
you
come
and
because
we
always
hear
this,
it's
expensive
to
build
in
Philly,
but
there's
very
little
detailed
understanding
about
those
and
thus
it's
expensive
to
build
in
Philly.
So
thus
we
need
these
offsets,
but
there's
very
little
conversation
about
us.
Looking
at
those
costs,
my
council
colleague
and
myself
are
pretty
serious
about
both
the
city
budget,
the
school
district
budget
we
pour
through
it.
We
talk
a
lot
about
costs.
O
M
And
if
I
can
add,
one
other
thing,
I
think
are
important
points
that
we
probably
should
be
able
to
convey
to
you
I
think
I
want
to
identify
a
one
little
nuance
here,
which
is:
we
talked
about
costs
of
construction
right,
which
is
one
aspect
of
the
total
cost
of
development,
so
oftentimes
when
we
talk
about
costs
of
construction,
we're
talking
about
the
hard
costs
of
the
project,
actual
construction
contract
amount,
I
think
what
we
see
and
we've
been.
You
know
in
situation
actually
relatively
recently,
where
we're
looking
at.
M
M
Do
not
I
do
not,
but
as
we
talk
about
jobs
coming
to
the
city
of
Philadelphia,
this
particular
company
would
see
Allentown
in
Philadelphia
as
both
competitive.
Okay.
So-
and
this
happens
to
be
a
warehouse
building
which
we
you
know
came
up
earlier
in
some
of
the
earlier
testimony-
is
that
you
know
would
likely
employ
about
300
to
400
individuals
and
a
you
know,
kind
of
more
of
a
low
skill
but
decent
wage
environment.
M
The
cost
to
build
that
building
within
the
city
are
about
30
when
I
say:
cost
total
development
costs
about
30
percent
higher
than
building
that
same
building
up
in
the
Allentown
area.
Those
relate
to
absolutely
the
cost
of
construction.
You
know
union
labor,
it
absolutely
deals
with
the
permitting
it
deals
with
the
time.
Okay
in
in
real
estate
development,
you
know
the
time
of
actual
development
as
well
gets
extended,
and
so
for
a
company.
That's
looking
at
Philadelphia
and
Allentown
or
a
company,
that's
looking
at
Philadelphia
or
Montgomery
County.
M
For
that
matter
they
may
they
see
and
I
think
we've.
You
know
seen
this:
they
see
a
value
proposition
to
being
in
the
city
of
Philadelphia.
The
question
is:
will
they
pay
30
40
percent
more
for
that
value
proposition
and,
to
the
extent
that
that
premium
continues
to
increase
relatively
compared
to
our
competitors
for
those
companies,
I
think
that
it
becomes
a
more
difficult
challenge
to
attract
those
companies
into
the
city.
Yeah.
O
On
the
other
hand,
I
think
it
is
important
for
you-
and
you
know
for
us
to
be
constantly
like
reminded
about
the
costs
that
G
feel
are
excessive
beyond,
because
we
are
compensating
a
lot
on
the
back
end
for
it
to
try
and
offset
some
of
those
costs.
So
it's
it's
helpful
for
you
to
remind
us
about
some
of
those
things.
O
Some
of
the
things
that
we
are
you
know
that
are
not
necessarily
we're
able
to
budge
on,
but
others
we
should
be
paying
attention
to
like,
even
if
the,
even
if
the
political
mood
or
environment
is
not
exactly
right.
At
this
moment,
we
still
need
to
be
driving.
The
conversation
towards
these
are
the
things
within
the
specific
building
code
that
we
need
to
take
a
look
at.
These
are
the
other
things
I
mean,
as
you
mentioned,
mr.
a
demondo
I.
Think,
like
you
know,
some
of
these
things
are
modernized
in
electrical
systems.
O
Making
systems
more
safe,
making
them
green
are
more
environmentally
friendly.
Yes,
at
this
point
in
time,
especially
with
materials
being
new
and
not
necessarily
like
adapted
to
a
broad
spectrum
of
business
and
buildings
like
I,
would
see
that
as
being
an
expensive
cost,
that
would
hopefully
over
time
begin
to
be
reduced,
but
but
other
parts
of
it
that
are
not
quite
that.
Don't
quite
sound
like
that.
O
It's
we
need
the
developer
community
to
help
us
identify
that,
in
order
for
us
to
be
able
to
help
move
on
some
of
these
things,
even
when
it's
difficult
I
wanted
to
take
just
a
moment
and
ask
you
a
little
bit
more
about
the
abatement,
it's
my
understanding.
I
have
not
heard
that
much
conversation
about
eliminating
it
and
part
of
it
is
that
I
think
people
recognize
and
acknowledge
the
kind
of
benefits
the
abatement
has
clearly
brought.
O
There's
no
question:
this
city
is
a
different
city
than
the
one
I
went
to
college
to
in
the
90s
right,
so
that
that
benefit
can
certainly
be
attributed
to
broadening
development.
Growing
tax
base.
All
of
these
things,
so
I
am
very
cognizant
that
what
benefits
a
Bateman
has
brought
I.
Think
it's
understanding,
though,
that
it
is
an
old
tool.
O
O
Don't
it's
if
they're
even
paid
more
than
what
the
land
value
is
worth
to
offset
the
ten
years
of
forfeited
growth
and
property
value,
for
example,
but
I'm
curious
about,
like
you,
know
the
abatement-
and
you
know
lots
of
concerns
about
forty
two
and
a
half
million
dollars,
for
example
last
year
for
the
abatement
program
and
whether
you
see
like
any
opening
for
reasonable
modifications
within
it.
That
could
respond
to
the
fact
that
we
do
have
a
school
district
that
is
in
serious
concede.
These
things
aren't
getting
come
free.
O
The
city
made
it
very
clear
and
we've
waited
decades
for
the
state
to
deliver
for
the
federal
government
to
deliver
yeah
more
people
should
be
paying
money
into
the
school
system.
Until
that
happens,
we
can't
leave
our
kids
behind
so
we're
trying
to
understand.
You
know
like
what
could
be
reasonably
what
could
be
reasonable
for
the
broad
swath
of
the
public
that
sees
the
abatement
as
being
both
distributed
somewhat.
You
know
unequally
across
the
city
as
we
raise
money
for
schools
and
I.
You
know
this
is
an
open-ended.
L
Definitely
a
blunt
instrument,
so
I
would
definitely
agree
with
you
there.
It's
definitely
could
use
some.
It
can
there's
no
question
that
it
can
be
modified
to
be
better
and
there's
no
question
also
that
the
schools
need
more
funding.
I,
don't
think
that
the
tax
abatement
program
is
the
cause
of
the
school's
lack
of
funding
or
able
or
nor
will
it
solve
the
problem
of
the
schools
funding
I'm
just
concerned
that
again
it
whatever
modifications
are
made
to
it
and
they're.
L
Clearly,
Canon
should
be
some
modifications
to
it:
they're
very,
very
thoughtfully,
implemented,
so
that
they
don't
cause
a
chilling
effect
on
real-estate
value
on
construction,
new
construction,
it
doesn't
decrease
property
values
which
will
have
the
opposite
effect
of
what
people
that
are
intending
to
do.
What
they
want
so
just
needs
to
be
very
thoughtfully,
implemented
and
also
there's.
L
There's
I
think
that
the
tax
payment
program
needs
to
be
looked
at
differently
for
different
types
of
real
estate,
different
areas
in
the
city
to
the
extent
in
impoverished
areas,
the
tax
abatement
should
be
20
years,
it's
been
more
than
10
years,
but
an
avian
for
houses
that
are
over
a
million
dollars.
Tax
payment
should
be
less
so
clearly
it
can
be
refined.
So
I
would
support
that.
Okay.
N
A
little
bit
of
time,
looking
at
the
underlying
laws
that
enable
the
abatement
and
I
think
you're
absolutely
right
that,
after
almost
20
years
that
it
is
much
more
of
a
blunt
tool
now
than
it
ever
was.
It
needs
to
be
refined,
I
think
when
I
wanted
three
things
to
be
considered,
one
is
that
the
state
enabling
legislation
that
the
framework
under
which
the
abatement
exists
is,
in
fact
a
pretty
blunt
instrument.
Okay,
you
really
can
only
do
two
things
you
can.
You
can
go
up
to
ten
years.
N
N
Okay,
so
he
in
the
in
under
the
state
law
framework
a
lot
of
things
that
I
think
we'd
like
to
do
in
councilman
Dom's
been
on
record
since
before
he
was,
you
know
in
office
that
should
be
20
years
in
certain
parts
of
the
city
where
the
ten
years
doesn't
even
doesn't
get
it
done.
Where
there
hasn't
been
a
lot
of
development,
unfortunately,
we
don't
have
that
option.
Okay
now,
without
going
through
a
very
painful
process
at
the
state
level.
N
So
in
the
context
of
what
we
can
do
and
in
the
context
of
things
that
I've
heard
kicked
about,
I
agree
with
you,
councilman
Jim
that
I
haven't
heard
any
rational
person
say
we
should
get
rid
of
the
abatement
entirely.
It's
been
a
conversation
more
about.
We
should
talk
about
how
the
abatement
might
need
to
change.
N
Given
the
current
school
funding
situation
and
the
current
you
know
real
estate
and
the
economic
environment
in
the
city,
I,
don't
think
anyone
disagrees
that
the
conversation
is
relevant
okay,
but
the
unfortunate
can't
do
certain
things
like
go
to
go
to
ten
years.
There
are
certainly
parts
of
the
city
that
need
the
abatement
more
than
others.
So
thinking
about
the
length
of
the
abatement
you
know
in
in
Center
City
or
in
an
extended
Center,
City
versus
other
parts
of
the
city
is
a
valid
conversation
to
be
had
and
a
valid
analysis
that
there
should
happen.
N
The
phasing
in
of
the
abatement
is
one
of
the
things
that
councilman
Dom
has
recently
raised
of
you
know
having
the
second
five
years
of
the
ten
years.
Have
the
abatement
kick
in?
You
know:
well
it's
five
full
years
and
then
the
next
five
years
it
graduates
down
to
zero.
The
first
thing
the
city
needed
to
do,
which
is
now
almost
done,
is
getting
tax
revenue
for
the
entire
abatement
period
out
of
the
land
values.
Okay,
that
is
tens
of
millions
of
dollars
of
forgone
tax
revenue
for
the
last
15
years.
N
That
is
now
pretty
much
done.
The
land
values,
particularly
in
the
90%
of
the
not
geographic
parts
of
the
city
but
90%
of
the
city's
real
estate
values
clustered
between
Center
City
craters.
So
my
State
University
City
clothesline
values
have
now
been
looked
at
three
three
times
in
a
row
and
whether
I
agree
or
disagree
with
some
of
the
valuations
there's
plant
acts
revenue.
N
That's
now
coming
out
during
the
abatement,
so
I
think
we
need
to
start
by
I'll
say
it
again
understand
that
it's
not
a
hundred
percent
of
bateman
anymore,
it's
somewhere
between
65
and
80
percent
day,
one
okay,
one
of
the
I,
think
more
troubling
proposals
from
from
the
real
estate.
You
know
community
standpoint,
particularly
those
of
us
who
build
residential
okay.
N
Is
this
notion
of
capping
the
abatement
on
a
property
basis
at
a
certain
number,
I've
heard,
five
hundred
thousand
nine
four
seven
or
thousand
I've
heard
a
million
okay,
practically
speaking,
it's
a
very
difficult
thing
to
do.
Okay,
for
a
few
reasons,
one
there's
no
way
to
differentiate
in
legally
speaking,
okay
between
150
or
250
square
foot.
You
know
the
residential
unit
and
a
five
thousand
to
ten
thousand
score
of
a
residential
unit.
Okay,
in
a
given
building
that
I
might
as
an
apartment
developer,
put
a
hundred
units.
N
Somebody
who
builds
you
know
very
high-end
condos
might
put
thirty
units
okay,
and
so
the
total
square
footage
built
is
the
same
right,
but
the
number
of
units
is
is
more
or
less
dense
and
then
you're.
Attaching
the
the
abatement
cap
to
a
unit,
the
unit
of
measure
being
a
one
residential
unit,
not
all
residential
units
from
a
valuation
standpoint
are
alike,
but
legally
speaking,
they
are
identical
right,
whether
it's
a
rental
apartment
or
a
condo.
N
It
is
a
single
residential
unit,
so
I
think
we
have
a
real
or
have
a
real
hard
time
trying
to
stay
within
the
law.
Okay,
and
and
do
something
that's
equitable
to
to
those
who
develop
residential
units,
whether
they
be
homes,
condos
and
apartments.
That
would
be
small,
large
I.
Think
that
that
that's
a
that's
a
black
hole
trying
to
trying
to
try
to
figure
out
attaching
a
number
and
saying
anything
over
that
number
is
no
or
abated.
N
O
Makes
a
big
difference
for
the
school
district
to
face
in
as
well,
because
the
income
is
then
brought
in
at
a
steadier
rate
again,
as
you
mentioned.
Similarly
in
any
other
industry,
the
school
district
lives
and
dies
by
predictability
off
its
revenue,
which
it
can't
do
because
it
lives
year
to
year
with
state
budgets
and
city
budgets
and
all
these
kinds
of
things.
Predictability
on
land,
our
property
values,
are
the
bread
and
butter
funding.
It's
the
only
money,
we
don't
have
to
beg,
scrape
and
plead
for,
and
it's
why.
N
Want
to
put
one
more
thing
out
there
that
there
is
this
I
think
this
you
know,
there's
this
notion
out
there
that
somebody
who
moves
into
the
city
of
Philadelphia
and
buys
a
I'll
throw
a
number
out
there.
A
three
or
four
million
dollar
condo
I,
don't
build
these
for
a
living
but
and
they're
very
few
built,
but
they
are
being
built.
Ok
doesn't
need
the
abatement
to
be
able
to
afford
you
know
to
buy
the
house
and
move
into
the
city.
We
don't
know
the
real
answer
to
whether
or
not
that's
true.
N
N
The
psychology
of
the
attractiveness
of
coming
into
the
city
and
getting
a
property
tax
break
I
know
that
the
politics
of
it
in
the
perception
of
it
don't
look
good,
but
there
are
so
many
other
material
economic
benefits
to
the
city.
The
school
district
and
everybody
else
in
continuing
to
facilitate
that
incentive
that
taking
taking
a
blunt
instrument
making
it
even
more
blunt
by
saying:
if
you
pay
more
than
five
hundred
thousand
dollars
for
your
house,
then
you
don't
get
in
abatement
about
five
hundred
thousand
dollars.
O
And
I
think
we
should
just
continue
this
conversation
I
appreciate
it
very
much.
I
mostly
appreciate
the
fact
that
we
both
understand,
especially
those
of
you
who
live
in
the
city
proper
and
have
young
children
both
understand
that
as
the
city's
attraction
grows.
You
know
we
start
to
tease
out
and
maybe
understand
how
taxes
and
taxation
incentives
are
our
diverse.
You
know
like
it's
a
tool,
it's
not
it's
not
an
end
or
you
know
a
starting
point.
O
M
I,
just
and
I
know
we're
running
short
on
time,
so
I
will
be
very
brief.
I
won't
repeat
what
was
said,
which
I
think
are
all
great
points.
I.
Think
to
that
question,
though,
there's
three
comments.
One
is
right.
Now
there
seems
to
be
a
little
bit
of
uncertainty,
there's
a
lot
of
different
ideas
and
proposals
that
are
kind
of
out
there
and
I
think
to
Leo's
point
earlier.
Uncertainty
is
really
bad
for
investment,
so
having
uncertainty
of
what
will
happen,
I
think
is
is
one
concern.
Second,
is
the
the
property
type
issue
right?
M
A
A
The
Billings
were
one
point:
two,
seven
five
billion
under
the
new
assessment,
the
value
is
1
point
6,
5
billion
and
the
building
I'm,
so
I'm,
sorry,
162
billion
bunch,
134
billion
hundred
sixty-two
billion
and
the
Billings
went
from
one
point
to
75
to
one
point:
six:
five:
oh
it's
over
a
30%
increase
now
there'll
be
some
Appeals
and
so
forth.
But
in
two
years
in
a
few
months
it's
a
30%
increase
and
the
Billings
on
real
estate.
Taxes.
I
just
want
everyone
to
be
aware
of.
A
E
Good
afternoon
my
name
is
Leslie
Smallwood
lewis-
and
I
am
one
of
the
principals
of
mosaic
development
partners,
we're
a
minority
certified
real
estate
development
company
located
in
strawberry
mansion.
Today,
along
with
our
partners,
we've
developed
over
54
million
in
projects
in
the
city.
We
focus
on
impactful
developments
and
disenfranchised
neighborhoods.
We
currently
have
operating
properties
in
the
fair
hills,
Strawberry
Mansion
and
Temple
University
sections
of
the
city
and
projects
and
varied
stages
of
development
in
Wayne,
Junction,
Strawberry
Mansion
in
other
North
Philadelphia
communities.
E
Although
we
have
one
student
housing
property
in
one,
low-income
housing,
tax,
credit
project
for
veterans,
our
primary
focus
is
providing
quality,
housing,
goods
and
services
to
the
middle
market
consumer.
We
develop
projects
where
we
are
confident
that
our
23
26
and
32
year
old
children
would
love
to
reside
and
could
afford
to
live.
They
like
many
Millennials,
are
laden
with
student
loan,
debt
and
moderate
incomes
and
can't
afford
to
pay
the
high
rent
offerings
of
Center
City.
E
We
see
opportunities
in
our
neighborhoods
to
meet
this
middle
market
demand
while
eliminating
blight
and
forging
strong
relationships
with
existing
residents
and
businesses.
We
have
coined
the
phrase
gentry
gation,
which
means
to
us
bringing
new
ideas
and
economy
into
challenged
communities
while
integrating
with
those
who
currently
reside
and
work
there.
We
employ
ret
local
residents,
we
source
products
from
local
businesses,
host
community
events
and
assist
entrepreneurs
with
opening
new
small
businesses.
E
A
prime
example
is
our
mixed-use
project
at
Eastern
lofts,
located
at
30th
and
Cecil
B,
more
Avenue,
Strawberry
Mansion
was
labeled
many
years
ago
as
a
crime-ridden,
an
unsafe
area
to
live
what
we
saw.
Otherwise,
we
saw
potential.
We
saw
a
superior
location,
Fairmount
Park,
the
zoo
and
downtown.
We
saw
a
community
deserving
of
our
respect
and
in
need
of
vision,
mosaics
vision,
provided
a
local
electrician
with
with
contract
work
and
a
new
office
in
our
building.
Only
two
blocks
from
his
home.
E
Our
vision
provided
the
opportunity
for
a
minority-owned,
Keystone
three-day
care
operator
to
open
her
second
location.
Our
vision
provides
is,
is
providing
one
of
our
residents
to
become
the
owner
operator
of
a
new
coffee
shop
in
our
building.
Our
residential
occupancy
rate
is
a
hundred
percent.
Our
retention
rate
is
seventy
percent,
and
our
waiting
list
is
long.
Why?
Because
of
the
affordability
of
our
rents,
the
uniqueness
of
the
design
and
the
creation
of
a
strong
commitment,
community
I
recently
had
a
conversation
with
one
of
our
first
residents
who
moved
in
in
August
of
2016.
E
He
and
his
girlfriend
wished
to
renew
their
lease
for
another
two
years.
They
initially
contemplated
moving
back
home
out
of
Philadelphia
after
completing
their
degrees
at
the
University
of
Pennsylvania,
but
they
found
our
community
a
community
with
other
young
entry-level
professionals
who
are
cost
driven
and
hyper
focused
on
building
their
careers.
We
retained
this
young
couple
and
their
contribution
to
the
city's
tax
base.
E
We
have
similar
project
slated
for
Wayne
Junction,
but
none
of
these
projects
would
be
possible
without
early
engagement
with
the
local
community,
developing
to
a
rental
rate
that
the
middle
market
can
truly
afford
creative
design
that
excites
and
encourages
people
to
move
to
these
historically
more
challenged
communities,
the
use
of
the
ten
year
tax
abatement
and
other
special
finance
structures,
such
as
federal
tax
credits
and
the
use
of
non-traditional
construction
methods
to
reduce
the
city's
high
construction
costs.
If
it's
truly
the
city's
goal
to
grow
its
tax
base.
E
Obviously,
we
must
increase
the
number
of
available
jobs
and
improve
our
city
schools,
but
we
must
also
have
a
working
equation
to
provide
quality
and
affordable
market
rate
housing
to
retain
our
talent.
Doing
so
has
become
more
and
more
challenging.
We
are
confident
that
there
are
opportunities
to
build
more
projects
like
Eastern
lofts,
but
without
the
ten
year
tax
abatement,
or
even
a
revision
to
without
the
federal
tax
credits
and
more
reasonable
construction
costs,
our
projects
really
will
not
be
possible.
E
The
elimination
of
reduction
of
any
of
the
above
would
skew
the
formula
and
be
a
real
deterrent
to
the
success
of
any
of
these
projects.
There's
always
a
financial
gap
caused
by
the
high
cost
of
construction
and
Lowell
lower
rental
rates.
In
these
neighborhoods
by
eliminating
or
reducing
the
ten
year
tax
abatement
or
imposing
a
construction
and
additional
construction
tax,
it
would
be
nearly
impossible
to
make
our
already
challenging
developments
a
possibility
and
what
a
shame
projects
like
Eastern
lofts
spur
additional
investment.
E
They
stretch
the
boundaries
of
possibilities
in
our
distressed
neighborhoods,
and
they
generate
significant
employment
for
local
residents.
In
closing,
if
the
city
does
decide
that
they
must
move
forward
with
some
or
all
of
its
proposed
tax
provisions,
then
I
urge
you
to
strongly
advocate
and
demand
for
lower
construction
costs.
By
doing
so,
it
might
help
reduce
the
negative
impact
that
tax
revisions
might
have
on
future
development.
Thank
you
thank.
P
P
The
purpose
of
my
testimony
is
to
provide
our
perspective
of
the
Philadelphia
invited,
Altmann
environment,
the
opportunities
we
see
the
challenges
we
face
and
how
compares
to
our
experience
in
the
DC
market.
A
few
years
ago,
we
began
looking
at
opportunities
to
expand
our
business
outside
the
DC
area.
After
studying
several
markets
in
the
mid-atlantic
and
southeast,
it
became
clear
to
us
that
Philadelphia
would
be
the
best
fit
for
the
expansion
of
our
urban
for
sale,
housing,
business
model.
P
Despite
the
similar
attributes
for
growth
between
DC
and
Philly.
The
the
major
challenge
to
development
we
anticipated,
which
has
been
discussed
at
length
here,
was
the
is
the
significant
increase
in
construction
costs
in
Philly
compared
to
DC.
However,
knowing
that
we
were
gonna
pay
a
little
bit
more
for
construction,
we
assumed
that
we
could
achieve
a
similar
profit
margin
in
Philly
that
we
are
achieving
in
DC,
because
this
construction
cost
would
be
all
increase,
would
be
offset
by
the
10-year
real
estate
tax
abatement.
P
We've
been
fortunate
over
the
past
two
years
to
develop
two
similar
single-family
housing
projects,
a
118
unit,
development
in
DC
and
a
91
unit
development
in
Philadelphia,
which
has
provided
us
the
necessary
data
to
vet.
Our
assumptions
of
the
effect
of
the
10-year
Bateman,
the
houses
in
DC
and
Philly
are
virtually
the
same
size.
Four
storeys
and
approximately
2,500
square
feet
have
a
similar
level
of
builder-grade
finishes
and
comparable
sales
prices.
The
cost
of
building
the
homes
in
Philadelphia
is
19%
higher
than
what
we
pay
in
DC.
P
The
increase
is
due
to
several
factors,
including
different
city
building
codes,
which
Leo
touched
on,
particularly
the
requirements
within
the
plumbing
code,
the
higher
cost
of
labor
and,
almost
importantly,
a
significant
increase
in
the
time
it
takes
to
complete
a
home,
whereas
it
typically
takes
us
five
to
six
months
to
complete
the
construction
of
a
home
in
DC.
It
is
taking
us
approximately
eight
months
to
complete
that
same
house
in
Philadelphia.
P
It
is
our
belief
that
the
increase
in
time
is
due
to
a
shortage
of
subcontractors
who
specialized
in
large-scale
housing
production
based
on
the
data
provided
from
these
similar
projects.
The
additional
buying
power
offered
to
our
purchasers
of
the
Philadelphia
homes
via
10-year
Bateman,
as
well
as
the
reduction
in
taxes
we
pay
during
the
extended
construction
timeline,
offsets
a
significant
amount
of
the
additional
construction
costs
incurred
in
Philadelphia.
But
not
all
the
offset
has
provided
us
with
an
acceptable
profit
margin,
although
it
is
significantly
lower
than
the
margins
we
are
achieving
in
DC.
P
It's
our
understanding
that
Philadelphia
is
reevaluating
the
necessity
of
the
tax
abatement
among
other
policy
measures
affecting
the
real
estate
industry,
including
an
increase
in
transfer
taxes,
a
construction
impact
tax
and
halting
reductions
in
the
wage
tax.
Regarding
the
bait,
the
abatement,
it's
our
AB.
P
The
homebuyers,
the
city's
growth
of
new
home
construction
over
the
past
years
and
a
significant
number
of
jobs
created
by
this
construction
clearly
reflects
the
effective
the
effectiveness
of
the
abatement
without
the
ten-year
abatement.
The
compelling
case
for
the
continued
growth
of
for
sale,
housing
in
the
city
would
be
greatly
diminished.
Removing
the
tax
abatement
while
increasing
transfer
taxes,
implementing
a
construction
tax
and
freezing
the
wage
tax
reductions
would
bring
new
housing
production
to
a
halt.
Q
Chris,
thank
you
very
much
for
your
valuable
time.
It's
an
honor
to
be
here
here
today.
My
name
is
Chris.
Serra
I
live
in
the
Bella
Vista
neighborhood,
my
family
I'm
CEO
of
arc
web
technologies
located
in
Old
City.
Last
week
the
Philadelphia
Business
Journal
listed.
My
company
is
now
number
35
on
the
list
of
tech.
Employers
ranked
by
size.
I
was
able
to
bootstrap
my
company.
That
means
I
didn't
receive
any
money
from
investors,
my
family
or
anybody
else.
Q
I
spent
a
lot
of
time,
thinking
about
homegrown
businesses
and
how
kids
in
Philadelphia
can
walk
a
similar
path
as
me
to
become
more
independent
to
quickly
summarize,
the
points
we'll
be
making
with
regards
to
growing
the
tax
base.
I
recommend
focusing
on
creating
homegrown
jobs,
promoting
a
short
list
of
relevant
workforce
development
programs
and
addressing
some
challenges
with
employment
discrimination.
To
quote
many
politicians
over
the
years,
jobs,
jobs,
jobs.
We
spent
a
lot
of
time,
money
and
energy
on
business
attraction
and
trying
to
get
companies
like
Amazon
and
Apple.
To
move
here.
Q
If
we
just
focus
on
homegrown
growth,
since
2009,
we
would
have
created
the
same
amount
of
jobs
already
that
Amazon
hq2
promises
to
deliver.
There
are
two
major
taxation
issues
in
this
city
that
are
holding
back
homegrown
business,
pardon
me
and
subsequently
job
growth
and
subsequently
prosperity
for
a
lot
of
citizens.
There
were
also
recommended
these
were
also
recommendations,
number
20
and
21
by
the
tax
reform
commission
in
2003,
and
so
these
recommendations
have
been
on
the
table
for
over
15
years.
Q
The
first
major
tax
issue
for
homegrown
businesses
is
what
I
call
the
second
ear
slap,
which
is
an
extremely
counterproductive
policy
where
businesses
must
pay
their
taxes
almost
a
full
year
in
advance.
Where
else
face
significant
penalties.
I
call
this
the
second
year
slap
since
most
people
only
discover
it
when
they
go
to
pay
their
first
year
of
taxes.
Imagine
when
you
get
paid
when
you
pay
your
taxes
this
month,
that
you
wrote
a
check
to
the
city
for
the
rest
of
2018
in
advance.
Q
How
are
you
supposed
to
pay
your
taxes
on
salary
when
you
haven't
been
paid,
yet
it's
not
possible
unless
you're,
already
rich
or
you're
lucky
enough
to
borrow
the
money.
Somehow
this
impacts
everybody,
including
the
person
that
rents
a
kiosk
at
the
new
gallery
to
sell
their
handmade
bags.
This
is
a
Philadelphia,
specific
taxation
issue
and
we're
out
of
line
with
the
state
and
the
federal
government.
The
second
major
tax
issue
for
homegrown
businesses.
It's
hard
to
explain
but
I
assure
you
that
it's
very
significant
for
Philadelphia
businesses.
Q
If
you
lose
money
in
a
given
year
and
you're
finally
able
to
recover
that
loss
more
than
three
years
later,
then
you
essentially
get
taxed
twice.
This
impacts,
startup
entrepreneurs
that
are
lucky
enough
to
get
a
loan
or
convertible
debt,
but
are
unable
to
pay
it
back
within
three
years.
This
is
also
a
Philadelphia
specific
taxation
issue
and
we're
out
of
line
with
the
state
and
federal
government
which
allowed
carried
losses
for
20
years
in
many
cases.
Q
By
implementing
these
two
tax
code,
changes
I,
believe
new
businesses
will
flourish
and
we
can
also
push
a
narrative
that
Philly
is
the
best
city
to
start
and
grow
your
company.
Let
me
switch
to
the
subject
of
job
training
and
workforce
development.
My
business
is
right
in
the
middle
of
a
global
outsourcing
trend
that
has
been
sending
labor
overseas
for
decades.
I
won't
name
names,
but
last
year
one
of
the
top
employers
in
Philadelphia
chose
another
company
instead
of
mine
for
a
project
and
meanwhile,
most
of
that
company's
labor
is
performed
on
another
continent.
Q
This
is
happening
every
day
in
Philadelphia
for
many
jobs
that
we
could
be
delivering
here,
and
those
include
software
engineering,
ie
coding,
customer
support
and
others
I
hope
that
as
we're
considering
tax
incentives
for
companies
that
were
also
considering
whether
or
not
they'll
be
utilizing
a
homegrown
workforce.
I
also
hope
that
the
current
workforce
development
initiative
focuses
on
a
very
small
limited
number
of
jobs
like
10,
that
both
city
and
a
city
and
employers
can
create
successful
programs
around
for
training
and
hiring.
Q
If
I
had
anything
to
say
about
it,
then
coding
would
be
in
that
top
10
list.
My
last
point
is
around
criminal
record
checks,
drug
screening
and
all
growing
employment
discrimination.
I
personally
believe
that
background
checks
and
drug
screening
are
privacy.
Invasions
that
unnecessarily
limit
the
livelihood
of
many
would
be
flourishing.
Citizens
of
Philadelphia
displayed
these
personally
held
beliefs,
I've
been
almost
forced
by
some
Philadelphia
based
clients
and
insurance
companies
to
impose
these
constraints
on
my
own
employees.
Q
If
we
want
to
survive,
there
is
a
complex
web
of
commercial
contracts
that
make
the
current
system
what
it
is,
and
my
experience
has
been
that
it's
the
insurance
companies
that
are
imposing
this
behavior
on
businesses
at
the
highest
level.
For
example,
several
years
ago,
a
large
fortune,
100
company,
required
us
to
buy
a
specific
type
of
theft
insurance
in
order
us
for
when
to
win
the
business.
Q
Our
insurance
company
at
the
time
said
the
only
way
to
get
this
insurance
was
to
to
perform
mandatory
background
checks
and
drug
screening
of
all
employees,
I
refused
and
I
scrambled
to
find
an
insurance
company
that
would
insure
us
without
imposing
this
privacy
infringement
on
our
workforce.
The
issue
now
is
that
we're
paying
double
what
we
were
paying
with
the
previous
insurance
carrier,
I
think
most
CEOs
would
argue
that
they
have
a
fiduciary
duty
to
pay
the
lesser
amount
and
deal
with
whatever
social
consequences
for
employees
since
it's,
unfortunately,
the
new
normal.
Q
R
Councilman
down
I'm
gonna,
not
read
my
statement,
you're
familiar
with
my
company
and
my
work,
but
I
think
I'll
just
speak
from
the
heart
today.
I'm
actually
disappointed
councilman,
Curtis
Jones
couldn't
couldn't
stay
for
this
because
I
think
some
of
these
issues
particularly
speak
to
his
district
and
the
other
members
of
council,
but
I
appreciate
being
here,
I'm
will
giant
creative
as
a
creative
agency
that
is
completely
POC
owned
and
women-led.
We've
been
around
for
11
years.
R
Our
clients
range
from
Wharton
University,
Pennsylvania
Academy
of
Fine
Art,
Knight
Foundation
and
many
others,
but
you
can
read
that
in
the
statement
some
things
that
I
think
have
not
been
spoken
about
here
truthfully.
Is
it
one
of
the
biggest
problems
in
this
city
that
we've
never
addressed?
Is
race
and
inequality
dealing
with
generational
inequality,
suppressed
incomes,
I
heard
a
lot
of
talk
about
the
building
trades
and
you
know
we
talk
with
in
real
estate.
R
I
think
if
we
were
to
speak
to
some
of
our
older
institutions,
like
the
Chamber
of
Commerce,
the
arts
and
Business
Council,
the
economy
league,
who
have
many
friends
who
are
involved
in
if
you
look
at
their
boards
and
if
you
think
about
the
year
that
the
economy
League
was
founded
and
to
109
years
ago
we
have
some
deep,
deep
painful
transformative
changed
and
we
need
to
make.
In
this
city.
R
Large
majority
of
black
and
brown
people
had
never
fully
participated
in
the
20th
century
economy
through
policies
like
redlining,
which
I'm
sure
you're
familiar
with
those
policies,
but
we
even
have
contemporary
redlining
policies.
I
learned
at
Kenyatta,
Johnson's
council
hearing
a
couple
of
weeks
ago
that
black
applicants
are
seven
times
less
likely
to
have
access
to
a
home
loan
in
the
Philadelphia
region
and
the
worst
and
most
of
Greek,
egregious
lenders
or
the
same
banks
that
hold
some
of
our
city
deposits.
R
So
I
can
name
a
bunch
more
figures
like,
for
example,
that
black
boys
in
the
United
States,
born
into
households
that
identifies
the
top
1%,
have
the
same
likelihood
of
being
incarcerated.
As
we
people
who
are
in
white
households
that
make
$36,000
a
year
all
right,
so
when
we
talk
about
getting
a
hundred
people
onto
the
tax
rolls
in
the
city
where
we
have
many
communities
like
at
60th,
Street
and
councilman
Jones's
district,
the
average
house
might
be
around
$50,000
to
$70,000.
R
But
banks
won't
give
you
give
you
those
lungs
if
you're,
even
if
you
have
a
job,
even
if
you're
capitalizing
can
show
that
you
can
pay
off
that
loan
in
20
or
25
years,
the
system
as
it
exists
doesn't
allow
people
to
move
themselves
from
rental
and
to
homeownership,
and
we
know
that
in
the
United
States,
the
only
thing
that
really
makes
transformative
change
and
being
able
to
move
from
poverty
to
middle
class
is
homeownership.
You
know
the
average
black
family
has
a
nickel
to
$1.00
to
the
average
white
family
in
the
United
States.
R
Who've
lived
in
these
cities
for
generations
and
paid
into
the
tax
system
and
lived
by
the
law
and
are
now
about
to
be
eradicated
and
displaced
because
of
capital
markets
and
way
that
banks
and
real
estate
developers
and
the
Lange
of
this
ballet
of
displacing
black
and
brown
people
has
existed
for
generations.
This
is
not
unique
to
Philadelphia.
I
should
also
mention
that
I'm,
a
fellow
at
the
University
of
Chicago's
equitable
redevelopment
salon,
so
I've
looked
at
this
issue
with
people
from
14
cities
around
the
country,
I've
also
with
my
business
partner.
R
Meegan
here
who's
here
just
led
a
group
of
10
people
from
Detroit
DC
and
Chicago,
looking
at
best
practices
and
Philadelphia.
So
I
know
that
in
Kensington
with
impact
services,
we
have
one
of
the
worst
opium
epidemics
in
the
United
States
all
right
and
I
also
know
through
my
friends
at
c-max
in
South
Philadelphia.
We
have
an
immigrant
community
that
is
not
able
to
participate
in
the
21st
century
economy.
They
have
tremendous
issues.
R
I
know
for
my
friends
in
West
Philadelphia
at
60th
and
market
through
achievability,
that
the
average
household
at
60th
Street
is
led
by
a
woman
in
2003
on
average
they
made
20,000
$29,000
a
year
today,
on
average
they
make
$13,000
a
year.
How
does
a
single
mother
survive
in
a
city
on
$13,000
a
year,
so
I
mean
there's
a
bunch
more
that
I
collaborate
on
a
lot
of
people
have
given
a
lot
of
time
today.
R
Unfortunately,
the
other
members
account
councilor
were
busy
or
didn't
think
this
was
worth
staying
for,
but
I
will
say
this
is
a
very
important
issue
and
we
have
to
figure
out
a
way
without
taxing
the
poor
without
taxing
the
industry.
So
much.
The
Philadelphia
is
not
a
city
that
people
want
to
invest
in,
but
I'll
close
with
right
now.
R
The
trepidation
people
have
about
the
tax
abatement
is
because
they
see
$600,000
homes
being
built
at
Lehigh,
which
is
about
a
block
and
a
half
away
from
a
tent
city,
or
people
are
living
underneath
the
railway
all
right
and
with
children.
What
sawed
off
the
case
addicted
people
they
seen
$600,000
townhouses
being
built
that
are
gonna,
have
a
tax
abatement
I,
don't
know
how
those
people
can
rationally
think
that
they
have
a
place
and
the
New
Philadelphia
that
we're
all
I'm
fortunate
enough
to
be
a
part
of
thank.
A
A
This
tonight
on
channel
64,
so
though,
they'll
see
you
or
testimonies
and
they'll,
hear
everything
I
post
by
when
I
pulled
something
out
of
my
pocket
when
I
started
and
counsel
I
got
something
from
the
Pew
report.
This
is
a
little
ratty
okay,
because
it's
been
in
my
pocket
for
two
over
two
years,
but
it's
it's
very
interesting
to
me,
because
it's
a
concern
to
me
and
that's
why
I
said
earlier,
what
we
need
to
teach
in
schools
or
personal
financial
literacy,
entrepreneurship
and
technology
from
pre-k
to
12th.
A
This
is
the
ownership
of
businesses
in
the
12-year
region
2014
now
horse.
Seventy
eight
point:
eight
percent
white,
ten
percent
Asian
two
point
four
percent
black,
and
so
that's
why
we
need
to
teach
entrepreneurship
in
our
public
school
system
and
everywhere,
really
because
that's
very,
very
important.
Let
me
ask
a
question
of
Leslie
Smallwood
Louis
have
a
question
for
you.
The
one-percent
construction
tax
you
mentioned
in
your
testimony
give
us
an
idea
of
how
that
might
impact
your
business
if
it
was
enacted
as.
E
I
indicated
earlier,
the
the
the
projects
that
I
work
on
in
the
communities
and
in
the
neighborhoods
are
already
so
challenged,
because
the
rents
that
we
can
charge
to
the
businesses
and
to
the
residents
are
not
going
to
be
anywhere
near.
The
rents
that
can
be
can
be
demanded
in
the
core
of
the
city.
So
to
impose
additional
strain
on
to
the
capital
stack
by
this
additional
tax,
it
would
be
very,
very
difficult
to
be
able
to
fill
that
financial
gap.
E
The
the
programs
that
we
use
are
normally
new
market
tax
credits
and
historic
tax
credits
and
the
new
market
tax
credits
are
highly
competitive
and
you're
to
be
able
to
get
an
allocation
to
to
these
projects
so
to
have
to
compete
for
additional
dollars
based
upon
attacks
such
as
the
one
that
we're
discussing
would
be
imposed.
It
would
really
make
these
projects
nearly
impossible
to
be
able
to
complete.
A
Okay,
thank
you
very
much.
Thank
you.
I
have
a
question.
Devyn
tui!
You
mentioned
in
your
testimony
that
the
time
to
build
in
Washington
I
think
you
said
was
five
months
five
to
six
months
at
six
one.
He
said
the
time
to
build
in
Philadelphia.
The
same
house
is
eight
to
nine
months
and
you
I
think
you
said
it's
because
it's
the
lack
of
qualified
contractors,
yeah.
P
I
think
that
the
DC
over
the
past
ten
years
has
had
a
fairly
stable
amount
of
construction.
If
you
recall
coming
out
of
the
recession,
DC
was
one
of
the
only
places
in
the
country
with
jobs,
because
the
presence
of
the
federal
government,
so
the
construction
industry
has
always
somewhat
has
been
very
active
in
DC
in
Philadelphia.
The
this
development
that's
happening
right
now.
The
construction
is
relatively
new
and
what
we're
seeing
is
there's
not
the
number
of
qualified
contractors
to
handle
these
larger
housing
projects
for
the
most
part.
P
There's
not
that
many
I
mean
our
91
to
91.
Townhomes
were
building,
which
is
the
largest
foresail
townhome
project
in
the
city
would
be,
you
know,
wouldn't
even
be
in
the
top
50
in
DC
right
now
and
so
I
think,
there's
a
lack
of
qualified
labor
in
the
city
right
now
we're
building
mostly
Union.
It's
just
there's
not
enough
contractors
out
there
right
now.
Okay,.
A
Q
A
Thank
you
very
much
and
thank
you
all
today
for
your
testimony
Thanks
to
everyone
for
your
patience
pretty
much
on
time.
Just
maybe
five
minutes
off,
but
thank
you
all
for
being
here
and
we're
gonna
we're
gonna.
Do
this!
We're
gonna
contain
this
conversation
because
we
do
want
to
build
the
base.
So
thank
you
very
much.
Thank
you.