►
From YouTube: Committee on Finance 6-20-2018
Description
The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Wednesday, June 20, 2018 to hear testimony on the following items:
180600 An Ordinance amending Chapter 19-3200 of The Philadelphia Code, entitled "Keystone Opportunity Zone, Economic Development District, and Strategic Development Area," by providing for further Keystone Opportunity Expansion Zones, under certain terms and conditions.
180603 An Ordinance amending Chapter 19-2900 of The Philadelphia Code, entitled "Senior Citizen Low Income Special Tax Provisions," by providing for regulations relating to eligibility, under certain terms and conditions.
Committee on Finance
Chair: Councilwoman Jannie Blackwell (3rd District)
Vice Chair: Councilman Bobby Henon (6th District)
A
B
Eight
zero
six
hundred
an
ordinance
amending
chapter;
nineteen,
thirty,
two
hundred
of
the
Philadelphia
Code
entitled
Keystone
opportunity's
own
economic
development,
district
and
trusteeship
development
area
by
providing
for
further
Keystone
opportunity,
expansion
zones
under
certain
terms
and
conditions.
Thank.
A
C
Good
morning,
councilman
black
hole
and
members
of
the
committee
on
finance,
my
name
is
Dwayne
bum
and
I'm.
The
senior
deputy
director
for
business
development
with
the
Department
of
Commerce
I'm
here
this
morning
to
offer
testimony
regarding
bill
number
one:
eight,
zero,
six,
zero
zero,
which
would
authorize
the
city
of
Philadelphia
to
apply
to
the
Commonwealth
of
Pennsylvania
for
new
K
Keystone
opportunity
zone
designations.
C
The
Keystone
opportunity
zone
program
was
created
in
1999
to
stimulate
development
on
vacant
or
underutilized
parcels
of
land.
Through
this
program,
both
local
and
state
taxes
are
waived
for
a
period
of
ten
years
that
Keystone
Opportunity
Zones
also
referred
to
as
a
Ozzie's.
Allow
the
city
to
spur
economic
development
and
attract
businesses
that
may
not
otherwise
choose
to
develop
or
locate.
C
The
deadline
for
the
application
to
the
Commonwealth
is
October
1st
2018,
given
that
City
Council
is
headed
into
summer
recess.
We
respectfully
ask
that
this
committee
passed
this
legislation
out
of
committee
with
a
suspension
of
rules
to
allow
for
first
reading
this
Thursday.
This
will
give
the
school
district
more
certainty
about
which
parcels
are
being
submitted
for
Koz
designation
to
be
included
in
a
school
board
resolution,
another
necessary
step
in
this
application
process.
We
intend
to
finalize
the
resolution
in
August
and
hope
to
receive
final
passage
in
September
from
City
Council
when
it
returns.
C
So
that
we
can
finalize
and
submit
our
application
to
the
Commonwealth.
Finally,
I
would
like
to
thank
the
members
of
City
Council
who
have
provided
input
into
this
list
of
parcels.
An
amendment
has
been
prepared
for
your
consideration,
incorporating
additional
properties
into
the
legislation
before
de
Keystone.
Opportunity
Zones
play
a
vital
role
in
the
continued
economic
development
of
Philadelphia
and
are
key
to
creating
new
jobs.
I
appreciate
your
time
this
morning
and
I'm
happy
to
answer
any
questions
you
may
have
at
this
time.
C
A
D
C
C
The
test
for
that,
for
us
would
be,
are
the
sites
occupied,
and
so,
if
we
go
by
a
commercial
property-
and
there
is
an
operating
business
in
that
property,
it
on
its
face
will
not
be
eligible
and
the
other
sort
of
tests
that
we
would
be
looking
at
as
a
long-standing
policy
would
be
whether
it's
a
residential
use
or
likely
to
be
a
residential
use
where
we
would
not
want
to
encourage
that.
We
are
looking
to
create
opportunities
for
job
generation,
and
some
residential
does
not
do
that.
C
D
In
your
testimony,
you
said
the
Koz,
which
I'm
in
favor
of
basically
gives
companies
the
opportunity
to
go
into
a
zone
where
they
are
excluded
from
paying
certain
taxes,
and
they
normally
wouldn't
come
into
this
city
if
they
had
to
pay
those
taxes,
I'm
assuming,
which
is
there
one
or
two
specific
taxes
that
motivates
them
to
come
in
that
gets
waved.
Can
you
identify
what
those
taxes
would
be
well.
C
C
Certain
of
those
taxes
will
have
much
more
impact
to
them
than
others,
and
different
types
of
businesses
will
have
different
serve
some
for
some
businesses.
The
business
income
receipts
tax
exemption
is
a
very
powerful
sort
of
motivator
again
for
the
real
estate
tax.
Since
we
are
putting
a
pilot
or
payment
in
lieu
of
taxes
in
place
anyway,
you're
effectively
paying
110
percent
of
what
you
would
have
paid
under
the
exemption
right.
So
so
that's
a
little
bit
netted
out
and
then
for
large
commercial
properties.
You
and
no
tax
is
another
serve.
D
C
D
C
Again,
because
the
real
estate
served
pilot
nets
out
the
real
estate
tax
savings,
the
the
compelling
sort
of
tax
would
probably
be
the
sales
tax
so
that
so
that
all
materials
and
equipment
that
are
purchased
for
that
site
for
the
construction
are
from
that
8%.
So
there's
an
8
percent
savings
built
into
that
for
a
developer.
D
That's
a
one-time.
The
net
incarceration
is
an
annual
that's
right
for
10
years.
One
last
question:
the
real
estate
values
of
the
current
chaos
zis
after
the
Koz
burns
off.
Have
we
seen
any
change
in
the
value
of
the
rents
that
being
offered
for
lease?
Have
they
gone
up
down
stay
the
same
as
have
any
change
in
the
value
of
the
real
estate
without
the
Koz.
C
C
Ends
and
because
you
know
in
a
commercial
or
an
office
or
setting
most
are
triple
net
leases,
where
the
the
savings
in
real
estate
tax
right
now
will
pass
through
to
the
tenant.
At
the
end
of
of
the
abatement
period,
I
would
say
the
real
test
is
actually
next
year
we
have
several
commercial
properties,
both
in
University
City
and
at
the
Navy
Yard
that
will
expire
at
the
end
of
this
year
and
the
earlier
rounds
of
Koz
were
largely
focused
on
industrial
properties
where
they
were
owned
by
the
business.
D
C
C
D
E
C
One
once
we
submit
an
application
to
the
state,
Koz
is
a
state
program,
so
we
will
apply
for
to
participate
in
that
program.
We
need
City
Council
authorization
to
make
that
application
once
we're
in
the
program
where
we
have
sort
of
committed
to
serve
waiving
certain
taxes
for
a
defined
period
of
time.
In
this
case,
ten
years
there
is
no
sort
of
the
states
were
saying
to
youth.
C
We
have
a
commitment
now
and
and
and
and
as
does
that,
business
I
will
say
that
each
business
every
year
must
apply
to
be
certified
for
continued
participation
in
the
program.
So
if
a
business
and
the
a
that's
a
Affleck,
that's
a
certification
to
the
state
every
year
and
the
city
reviews
and
approves
as
well.
If
a
business
becomes
delinquent
in
any
sort
of
obligation
to
the
city
or
state,
they
could
be
excluded
from
the
program
that
year
until
they
serve
become
current.
C
If
they
business
does
not
meet
its
initial
commitment
for
job
creation,
if
that
was
one
of
the
sort
of
tests
for
them
getting
certification,
they
can't
be
denied
again
by
the
state.
So
so
the
business
applying
each
year
has
to
apply
each
year.
It's
a
pretty
profound
tree
review
generally,
but
it
doesn't.
If
a
business
has
service
dramatically
changed
source
scale,
they
can
be
denied
okay,.
E
My
concern
is
for
any
business
that
does
not
live
up
to
its
promises,
of
course,
but
I'm
also
concerned
about
nonprofits
that
act
as
a
nonprofit
and
then
hire
a
for-profit
management
coming
company
to
run
it
as
a
business,
because
I
I
think
those
are
two
different
things:
they're
a
non-profit
and
they
are
focused
on,
let's
say,
successful
innovation,
and
then
they
hire
a
non-profit
and
now
they're
focused
on
high
rents.
I
think
those
are
two
different
purposes,
but
you
know
thank
you
for
the
answer.
Sure.
A
B
A
F
You
good
morning,
Councilwoman
Blackwell
and
members
of
the
Committee
on
Finance.
My
name
is
Marissa
Waxman
I
am
the
First
Deputy
revenue
commissioner
I'm
here
today
to
support
bill.
One
eight:
zero,
six,
zero.
Three,
this
bill
authorizes
the
Department
of
Revenue
to
revise
the
real
estate
tax
regulations
to
expand
eligibility
for
the
low
income
senior
citizen,
real
estate
tax
freeze
program
to
include
residents
of
cooperative
buildings
for
participants
in
this
built
program.
The
real
estate
tax
bill
on
their
home
will
not
increase,
even
if
their
assessed
value
or
the
rate
increases
in
the
future.
F
Applicants
must
meet
both
age
and
income
requirements
to
be
found
eligible
for
a
real
estate
tax
freeze,
an
eligible
senior
is
someone
who
meets
any
of
the
following
requirements:
a
person
aged
65
or
older,
a
person
who
lives
in
the
same
household
with
a
spouse
who
is
age,
65
or
older,
or
a
person
aged
50
or
older.
Who
is
a
widow
or
widower
of
someone
who
reached
age
65
before
passing
away.
Additionally,
applicants
must
must
meet
income
requirements
of
20
$3,500
or
less
for
a
single
person
or
30
1500
or
less
for
a
married
couple.
F
This
program
currently
has
over
13,000
low-income
seniors
enrolled
that
save
on
average
561
dollars
with
the
senior
freeze,
plus
they
all
received
the
homestead
exemption,
bringing
the
total
average
discount
to
just
shy
of
one
thousand
dollars
per
year.
Presently,
applicants
for
the
senior
tax
freeze
need
to
be
the
owner
of
the
home.
This
works
for
the
vast
majority
of
homeowners
in
Philadelphia,
in
single
family
homes,
row
houses
and
condos,
but
cooperative
buildings
work
a
little
bit
differently.
F
Our
complexes
are
owned
by
a
legal
entity
run
by
a
board
and
with
the
residents
owning
shares
of
the
legal
entity
rather
than
the
individual
unit.
The
coop
has
a
single
Opa
account
number
and
gets
a
single
tax
bill
for
the
entire
complex.
It
is
up
to
the
governing
board
to
figure
out
how
to
allocate
the
bill.
Among
the
members
there
are
11
coop
buildings
in
Philadelphia,
with
a
total
of
around
2,600
owner-occupied
units.
The
change
to
revenues.
F
Regulations
will
allow
residents
of
coops
who
meet
the
agent
income
criteria
to
apply
for
the
senior
tax
freeze.
We
expect
some,
but
not
all
of
the
residents
to
be
eligible.
Coops
are
already
eligible
and
airy
able
to
participate
in
the
homestead
exemption,
and
this
will
increase
the
available
tax
relief.
F
Revenue
has
already
reached
out
to
the
11
co-op
properties
so
that
we
can
collaboratively
design
the
application
and
discount
calculation
process,
since
it
will
be
unique,
we
will
be
implementing
this
change
in
conducting
outreach
at
these
properties
this
summer
in
advance
of
the
fall
deadline
for
the
senior
freeze
applications.
The
administration
fully
supports
this
change
to
Grant
eligible
co-op
building
residents
access
to
the
senior
freeze
program.
Thank
you
for
the
opportunity
to
testify
and
we're
happy
to
answer
any
questions.
Thank.
A
You
any
questions
or
comments,
or
this
wouldn't
it.
Thank
you
very
much
as
anyone
else
who
would
like
to
testify
seeing
none.
We
will
end
this
part
of
our
hearing
and
enter
into
our
stated
meeting.
The
chair
now
recognizes
councilman
Greenlee
for
a
motion
on
the
amendment
to
bill
number
one:
eight,
zero.
Six
hundred
thank.
G
A
Thank
you.
It
has
been
moved
and
properly
seconded
that
the
amendment
to
build
number
one,
eight
zero
600,
be
approved.
All
those
in
favor
of
the
motion
will
signify
by
saying
aye
those
opposed,
nay.
The
motion
carries
and
bill
number
one.
A
zero
600
has
been
amended.
The
chair
again
recognizes
councilmember
greenie
for
a
motion
for
bill
number,
one:
eight
zero
600
as
amended.
Thank.
G
A
Has
been
moved
and
properly
seconded
that
bill
number
one:
eight
zero,
six,
zero
zero,
as
amended,
be
reported
from
this
committee
with
the
favorable
recommendation
and
further
move
that
the
rules
of
council
be
suspended
so
as
to
permit
first
reading
of
this
bill
at
the
next
session
of
council.
All
those
in
favor
of
the
motion
was
signified
by
saying
aye
aye.
G
A
Opposed,
nay,
the
ice
habit
and
the
motion
carries
and
bill
number
one.
Eight
zero.
Six,
zero
zero,
as
amended,
will
be
reported
out
of
this
committee,
with
the
favorable
recommendation
and
with
a
request
of
the
rules
of
council,
be
suspended
so
as
to
permit
first
reading.
At
our
next
session
of
council,
the
chair
again
recognizes
councilman
Greenlee
for
emotional
one:
eight,
zero,
six,
zero.
Three
thank.
G
A
Has
removed
them
properly
seconded
that
bill
number
one:
eight:
zero,
six
zero.
Three!
We
reported
from
this
committee
with
the
favorable
recommendation
and
further
move
that
the
rules
of
council
be
suspended,
so
it's
a
permit
first
reading
of
this
bill
at
our
next
session
of
council,
all
those
in
favor
of
the
motion
will
signify
by
saying
aye
aye.
G
A
Opposed,
nay,
the
ice
habit,
the
motion
carries
in
bill
number
one:
eight,
zero,
six,
zero
three
will
be
reported
from
this
committee
with
the
favorable
recommendation
and
also
requests
for
a
suspension
of
the
rules
so
as
to
permit
first
reading
at
our
next
session
of
council.
That
completes
our
work
for
this
committee
this
morning.
Let
me
thank
all
my
colleagues
for
being
here
all
members
of
this
committee
and
all
of
you
who
have
come
or
who
have
testified.
This
hearing
is
adjourned.