Statement from Mayor Kenney Regarding 4601 Market Street View this email in your browser CITY OF PHILADELPHIA

MAYOR'S OFFICE OF COMMUNICATIONS

For Immediate Release: December 13, 2018

Contact: Mike Dunn, 215-686-6210, mike.dunn@phila.gov

Statement from Mayor Kenney Regarding 4601 Market Street

PHILADELPHIA - Mayor Kenney today released the following statement regarding 4601 Market Street:



I am extremely disappointed that Councilwoman Blackwell has decided to hold the legislation that would allow the proposal to redevelop 4601 Market Street to move forward. It is unfortunate for her own constituents, because it would have brought health care for adults, children and families to West Philadelphia. It would have brought a workforce development program and summer youth programming. It would have brought an early childhood education center and a family fitness center. It would have brought a community garden and community meeting space.



And most importantly, it would have brought hundreds of jobs to a community that very much needs new employment opportunities.



Now, all of that evaporates, and leaves the community only with what it has had for many years – a vacant building.



It is important to remember that the prior administration purchased 4601 Market, and planned to relocate Philadelphia Police headquarters there. But that plan never really made much sense, in part because it never incorporated additional jobs or other benefits for the community. So when I came into office, the question was: do we continue with the mistake, or do we change course? After a review of our options, relocating our public safety operations to 400 N. Broad St. was the obvious choice – it will enable us to consolidate multiple public safety functions in one location. It works better from an operational perspective. It frees up other city properties to be sold and redeveloped.



The secondary benefit was that it opened up 4601 Market for a redevelopment opportunity that can benefit the community. To take advantage of that opportunity, PIDC on behalf of the City issued a Request for Qualifications in summer 2017. More than 60 potential respondents registered to attend a site tour, and six responded to the RFQ. PIDC then issued a Request for Proposals to three short-listed developers. All three submitted proposals. Only one proposal offered to purchase the property outright -- and without public subsidy. Only one proposal realistically brought jobs and benefits to the community. And that’s the proposal that was recommended.



Here’s more detail on what was planned: construction of the first phase of the development would have brought approximately 300 jobs. Subsequent phases would have created another approximately 650 construction jobs. Through an Employment Opportunity Program agreement, 60 percent of those jobs were dedicated to go to local residents. Nearly half were to go to minorities. More than one-quarter of subcontracting opportunities would have gone to minority-, women- or disadvantaged-owned firms.



The development itself would have meant an estimated 2,500 permanent jobs to the community -- many of those jobs were to go to local residents as well. Many of those employees would patronize local businesses – bringing added economic benefits to the community.



Let me address the myths surrounding this project.



The first myth is that the City was selling a $100 million property for $10 million. In fact, the City was selling a $10 million property for $10 million. The City ordered two appraisals, and both put the value of 4601 Market at $10 million. Remember that of the three proposals for the property, two offered substantially less and required additional public subsidy. That alone suggests that this is not a $100 million property, and this information has been shared with the Office of Property Assessment for the purposes of ensuring that they have the most accurate information about this property.



Another myth is that the City would have lost $42 million on the deal. Yes, the City has spent $52 million on the property, and yes, it was to receive $10 million back in the sale. However, the City would have received an estimated $158 million in additional revenue over the next 20 years. It would have received property taxes and business receipts taxes from the developer that it would not have received under the old deal. It would have received new sales tax revenue from the businesses that locate in the development. Consolidating public safety operations will free up city properties for sale. Even considering debt service, the City would have ended up an estimated $40 million ahead with this deal.



As for the Councilwoman’s claims that she was left out of the process – nothing could be further from the truth. She and her staff were fully informed and involved in the discussions every step of the way. To say otherwise is to contradict the facts. In fact, a staff member from her office sat on the committee that was part of the selection process, and the Councilwoman forced us to cancel one community meeting that had been scheduled in the summer at the Enterprise Center.



The Councilwoman’s decision to hold the legislation deprives her community of many benefits, including jobs; it deprives taxpayers of a net gain of $40 million; and it leaves a hulking eyesore of a building, vacant and unused, in the heart of her district. Yes, I am very disappointed – and every Philadelphian should be as well. ###