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From YouTube: Committee on Finance 10-10-2017
Description
The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Tuesday, October 10, 2017, at 3:00 PM, in Room 400, City Hall, to hear testimony on the following item:
170792 An Ordinance amending Chapter 19-3200 of The Philadelphia Code, entitled "Keystone Opportunity Zone, Economic Development District, and Strategic Development Area," to provide for additional extensions of certain benefits, under certain terms and conditions.
Committee on Finance
Chair: Councilwoman Jannie Blackwell (3rd District)
Vice Chair: Councilman Bobby Henon (6th District)
A
A
Very,
very,
very
sad
to
my
right.
Vice
chair,
councilman
Bobby
Heenan
to
his
right,
Councilwoman,
Cindy
baths
and
to
her
right,
councilman
Allen.
Don't
we
note
that
when
marks
will
comes,
and
we
want
to
say
happy
birthday,
we
just
found
out
it's
his
birthday.
So
if
he
comes
in
we'll
give
him
a
song.
A
A
C
C
We
are
here
today
on
behalf
of
the
administration,
to
testify
in
support
of
bill
one
seven,
zero,
seven,
nine
two,
a
bill
authorizing
the
city
of
Philadelphia
to
apply
to
the
Commonwealth
of
Pennsylvania,
to
extend
the
chaos
Keith
to
an
opportunity
zone
or
Koz
designation
and
its
related
benefits
for
an
additional
10
years
for
11
properties.
The
bill
further
authorizes
the
city
to
apply
to
the
Commonwealth
of
Pennsylvania
to
designate
new
Keystone
opportunity
zones
consisting
of
seven
vacant
or
underutilized
properties
for
a
10-year
period.
C
Pursuant
to
an
anticipated
state
enabling
legislation,
the
keystone
opportunity
zone
program
was
created
in
1999
to
stimulate
private
investment
on
vacant
or
underutilized
properties.
This
coordinated
program
allows
for
both
state
and
local
business
taxes
to
be
waived
on
targeted
sites
approved
for
participation
by
both
levels
of
government.
The
Koz
program
has
been
modified
several
times
over.
C
The
city
is
seeking
the
ability
to
apply
for
extension,
of
Koz
benefits,
411
currently
designated
properties
located
in
university
city.
That
can
position
us
to
respond
quickly
to
a
major
business
attraction
opportunity
that
rivet
represents
over
1
billion
dollars
in
new
investment
and
thousands
of
new
jobs.
C
Nearly
all
the
property
included
in
this
legislation
are
owned
by
tax-exempt
entities
which
currently
are
not
required
to
pay
real
estate.
Taxes
on
vacant
property,
all
properties
seeking
new
or
extend
Koz
benefits
will
be
required
to
enter
into
a
pilot
agreement
regardless
of
tax
status,
and
all
pilots
will
be
in
place
for
the
life
of
the
Koz
designation.
C
In
summary,
the
city
is
seeking
the
flexibility
to
include
key
development
sites
that
have
que
hace
benefits
as
part
of
our
proposal
to
attract
a
major
business
headquarters
operation.
My
request
for
proposals
had
to
has
been
issued
by
this
rapidly
expanding
business,
and
we
expect
to
be
completing
many
other
competing
with
many
other
cities
across
the
country.
Each
vying
to
be
the
new
home
for
this
unique
opportunity.
We
believe
Philadelphia's
location
and
access
to
a
highly
skilled
workforce
can
position
us
to
be
successful
in
this
national
and
possibly
international
competition.
C
The
additional
incentives
provided
by
the
que
hace
program
as
authorized
by
this
proposed
sation
can
help
to
make
the
season
even
more
compelling.
This
concludes
my
prepared
testimony.
I
respectfully
request
the
committee
support
for
bill,
one
seven,
zero,
seven,
nine,
two
and
request
that
you
vote
this
bill
out
of
committee
with
favorable
right
recommendation,
I
further
request
that
the
latest
the
legislation
be
amended
to
make
technical
Corrections
and
that
the
rules
of
council
be
suspended
to
allow
for
the
bill
as
amended,
to
receive
a
first
reading
of
the
City
Council's
next
scheduled
heat
meeting.
C
D
D
B
E
You,
madam
chairwoman,
and
good
afternoon
sitting
your
deputy
director
I'm
in
favor
of
the
Koz,
is
number
one.
Just
for
the
record.
I
just
have
a
question
on
the
process.
Does
the
governor
have
to
approve
this
because
we
were
told
in
the
past
we
had
a
bunch
of
Koz
is
about
a
year
ago
we're
told
he
did
not
approve
so.
C
There
are,
there
are
four
or
two
different
classes
of
property
here,
and
one
of
those
classes
of
property
will
require
additional
state
legislation
and
and
approval
by
the
governor's
office.
But
the
bulk
of
these
properties,
the
11
I've,
talked
about
that
currently
have
Koz
benefits
already
for
varying
terms.
What
we're
seeking
to
do
is
to
reset
the
clock
for
all
of
those
properties
when
there's
development
ready
to
happen
on
those
properties,
so
that
that
development
gets
a
full
10
years
of
benefit.
C
If,
with
with
City
Council
authorization,
we
would
submit
that
application
at
the
appropriate
time,
it
is
reviewed
and
approved
administrative
levy
by
the
you
know
community
and
you
can
have
a
development.
So
it's
not,
it
doesn't
require
any.
It
is
a
very
routine
sort
of
process.
We've
done
this
for
several
other
properties.
C
For
extension,
there's
not
a
that's,
not
an
issue
getting
properties
newly
designated
for
Keystone
opportunities,
own
status,
which
is
what
we
attempted
to
do
last
fall
unsuccessfully,
and
would
want
to
do
again
for
those
seven
properties
that
are
there
listed
here
for
new
designation.
That
will
require
legislation
that
is
signed
by
the
governor.
So
there's.
E
C
We
have
agreements
on
many
properties,
pilot
agreements
for
many
properties
that
are
participating
in
the
chaos
ii
program,
but
our
requirement,
the
requirement
that
was
placed
on
these
properties
for
to
require
pilots
was
relatively
late
in
the
process
only
a
couple
years
ago.
Did
we
start
requiring
these
so
the
properties
in
front
of
you
today,
which
have
been
designated
for
some
period
of
time.
C
They
would
not
currently
be
paying
pilot,
they
would
be
required
to
pay
pilots
should
we
search,
extend
and
reset
the
clock,
and
the
same
would
be
true
for
those
sites
that
are
not
in
the
program
currently
but
would
be
entered
into
the
program,
all
any
new
properties
in
the
program
or
any
properties
that
extend
the
program
across
the
board.
We
see
the
pilot
agreement
for
that
110
percent.
Okay,.
A
B
C
Again,
the
question
of
extending
those
sites
that
already
have
caves
a
benefit
that
is
an
administrative
function.
We
think
that
that
is
a
straightforward
process
without
a
problem
adding
new
properties
to
the
program
for
the
first
time
which
we
were
unsuccessful,
last
fall
and
doing
we
can't.
We
can't
do
that
until
we
see
new
state
legislation
and
that
new
state
legislation
would
have
to
be
signed
by
the
governor,
at
which
point
which
would
indicate
his
support.
So
we're
not
there
yet
we're.
These
are
conditional
approvals
on
your
authorizations
on
your
part
for
us
to
apply.
F
F
C
I
I
have,
it
was
just
handed
to
me.
We
we
had
to.
We
had
submitted
some
some
changes
in
an
amendment
for
18.
We
have
18
properties
and
there
is
a
19th
property
which
we
overlooked,
and
so
we
would
like
to
address,
add
3400
to
34-14
Market
Street,
which
is
all
right
in
the
middle
of
this
hole
cite
it.
It
currently
does
have
Koz
benefits,
and
so
we
would
want
to
extend
those
with
these
other
sites
for
the
same
development.
That's
that's.
C
A
A
E
C
So
a
business
that
it
that
is
located
and
approved
for
Koz
benefits
and
there's
a
difference
there
receives
during
the
life
of
the
Koz
program.
Again,
approximately
10
years
receives
abatement
at
the
local
level
from
real
estate
taxes,
use
an
occupancy
tax,
the
sales
and
use
tax
and
the
business
income
and
receipts
tax
at
the
state
level.
It
receives
abatement
from
the
state
portion
of
the
sales
and
use
tax,
the
six
percent,
as
well
as
abatement
from
corporate
income
tax
and
stock
tax.
So.
C
C
C
G
Table
understand
fairly
well
the
value
of
okay
Aziz
and
when
you,
the
professionals,
live
and
breathe
it
every
day,
they're
viewers
and
communities
that
continue
to
get
misplaced
and
displace
because
of
opportunities
like
this,
that
we
give
others.
So
if
you
could
just
share
for
the
record,
while
we
may
know
viewers,
may
not
the
impact
on
the
local
community
from
a
business
standpoint,
the
impact
on
the
local
community
in
terms
of
displacement
of
citizens
or
not
any
other
valued
information.
You
believe
viewers
should
know
when
it
comes
to
YK.
Aziz
makes
sense
so.
C
I'm
not
sure
I,
understand
all
that
the
question,
but
let
me
soar
at
least
give
it
a
try,
a
deed
sites
to
be
eligible
for
to
participate
in
the
Keystone
opportunity
zone
program.
By
definition,
they
must
be
vacant
sites,
so
there
is
no
buddy
being
displaced
here.
We
specifically
are
focused
on
commercial
and
industrial
activity,
so
our
focus
is
always
on
job
creation.
C
We
don't
we
don't.
We
try
to
avoid
providing
Koz
benefits
for
residential
development
because
it
changes
the
dynamic
so
so
for
sites
that
are
currently
paying
very
little
because
their
their
vacant
sites
and
they're
paying
some
real
estate
tax
on
vacant
property
unless
they're
held
by
institutions
that
don't
pay
tax.
Even
on
that
the
program,
obviously
we
would
source
a
it,
provides
job
opportunities
and-
and
we
are,
these
sites-
are
all
sitting
in
all
parts
of
the
city
so
that
they
provide
job
opportunities
for
a
Philadelphian.
D
You,
madam
chair,
and
for
the
record
I,
was
just
gonna,
actually
kind
of
clarify
that
you
know
the
wage
tax,
which
is
significant,
has
a
significant
impact
to
our
city
budget.
Narrate
over
billion
dollars
is,
is
welcomed
so
anything
that
we
could
do
just
as
I
think
you
are
here
today
being
proactive
in
seeing
a
possible
opportunity
to
generate
more
wage
tax
while
using
the
resource
or
the
tool
of
a
pilot
for
our
schools,
which
need
it
I
think
is,
is
welcome.
D
So
for
those
who
are
listening
and
and
that
are
out
there,
the
pilot-
you
know
part
of
the
real
estate
taxes
that
part
will
be
forgiven
and
pilot
goes.
The
other
part
for
the
school
district
and
exits
to
110%
goes
directly
to
schools,
so
we're
gonna
fund
our
schools
and
we're
going
to
gain
wage
tax
revenue,
which
is
really
you
know
the
driver
of
help
and
provide
our
core
services,
and
you
know
making
our
city
awesome.
So
thank
you
for
being
proactive.
Thank
you.
F
That
you
all
are
we're
the
reason
we've
kind
of
accelerated
this
whole
process.
As
you
know,
this
is
our
major
opportunity
and,
to
give
you
a
sense,
the
current
office
space
is
approximately
45
million
square
feet
and
Philadelphia
this
would
be
8
million,
so
basically
it
constitutes
about
20%
of
what
we
have
today.
So
we
believe
this
is
a
game-changer
and
while
right
now
that
wage
tax,
we
really
need
that
money.
G
H
H
Philadelphia
is
open
for
business
and
our
legislative
process
is
working
as
swiftly
as
possible
to
ensure
that
we
can
accommodate
the
needs
and
that's
not
often
recognized
when
you're
talking
about
government,
we
move
is
know
as
slow
as
snails,
but
in
this
process
you've
been
working
as
rapidly
as
possible
and
I
just
wanted
to
commend
you
for
the
record.
I
take.
F
A
Let
me
say
thank
you
as
well:
councilman
Parker,
any
other
questions
or
comments,
seeing
none
that
will
end
our
public
hearing
part
of
this
meeting
and
we
will
enter
into
our
public
meeting.
The
chair
recognizes
councilmember
Heenan
for
motion
on
the
amendment
to
bill
number
one:
seven:
zero,
seven,
nine
two
thank.
D
A
Has
been
moved
and
properly
seconded
that
the
amendments
a
bill
number
one,
seven,
zero,
seven
nine
two
has
been
approved.
All
those
in
favor
of
the
motion
will
signify
by
saying
aye
those
opposed,
nay.
The
motion
carries
in
bill
number
one:
seven,
zero.
Seven.
Nine
two
has
been
amended.
The
chair
again
recognizes
council
member
Heenan
for
a
motion
with
regard
to
bill
number
one:
seven:
zero,
seven,
nine
two,
as
amended.
D
G
A
Has
been
moved
and
properly
seconded
that
bill
number
one:
seven,
zero,
seven,
nine
two
as
amended,
be
reported
from
this
committee
with
the
favorable
recommendation
and
further
move
that
the
rules
of
council
be
suspended
so
to
permit
first
reading
of
this
bill
at
the
next
session
of
council.
All
those
in
favor
of
the
motion
will
signify
by
saying
aye
opposed,
nay
the
ice
habit.
The
motion
carries
in
bill
number,
one:
seven,
zero.
Seven,
nine
two
as
amended,
will
be
reported
from
this
committee
with
the
favorable
recommendation
and
the
request
staff.