May 8, 2003

 

Herbert Wetzel, Executive Director
Redevelopment Authority of Philadelphia
1234 Market Street, 16th Floor
Philadelphia, PA 19107

Re: Bainbridge Street West

Dear Mr. Wetzel:

Kathleen Murray met with Abdur-Rahim Islam from Universal Companies and representatives from SOSNA on Monday, May 5, 2003 to discuss issues and concerns about Universal Companies’ request for 55 condemnations for its Bainbridge Street West market-rate, single-family development. Representing SOSNA were Angela Richardson, Chairperson, Eve Lewis, NAC Director and Doerte Smith, Board Member.

A number of issues and concerns were addressed at the meeting, and Ms. Murray conveyed the following limitations, which I have asked the Redevelopment Authority of Philadelphia ("RDA") to place on the condemnation requests:

    1. Universal Companies will pay fair-market value for the 55 properties acquired by the RDA. Although the RDA is advancing $2 million for the Bainbridge Street West development from the bond proceeds of the Neighborhood Transformation Initiative ("NTI"), these bond proceeds will be repaid by Universal Companies to the RDA from sales proceeds and recycled into acquisition funding for the 2nd Council District.

    2. Properties acquired by the RDA for Universal Companies in conjunction with the Bainbridge Street West development proposal are for market-rate, single-family homes. Specifically, the properties to be acquired by the RDA for the Bainbridge Street west development are part of a larger, 85-unit, market-rate, single-family development. These 85 properties will be developed in the SOSNA/Universal service area. Moreover, it was explained that the 400 properties referred to as a part of the Universal/Fannie Mae initiative are in a larger area, bounded by 11th street on the east, 19th street on the west, South street on the north, and Federal street on the south.

    3. Properties will not be acquired if they have sold after January 1, 2002; that is, properties sold after that time will not be considered for condemnation at this time. It was further explained that all properties sold from January 1, 2002 through September 30, 2002 have a September 30, 2003 deadline to show progress by the owner toward the rehabilitation/renovation of the property. For properties sold after September 30,2002 owners will have a one-year time frame to show progress toward development, which can include zoning hearings, building permits, architectural plans, etc. It was made clear that progress does not mean that construction must be underway within the one-year time frame and that each case will have to be reviewed.

      As it pertains to the sales cut-off date, Mr. Islam advised that there is one property essential to the Bainbridge Street West development plan that was sold after January 1, 2002. The property is 805 South 17th Street; Universal will be developing 801-803 South 17th Street and 807 South 17th Street. Ms. Murray asked Mr. Islam to provide documentation for this request, and it was agreed to leave this property on the condemnation list pending receipt of his formal request.

    4. Properties for which there are active development plans and permits will not be acquired at this time. Again, it was made clear that owners must show active movement toward development, including zoning hearings, building permits, architectural plans, etc.

The enclosed acquisition list was reviewed at the meeting. In the category of "Condemnation Status", several changes were made that resulted in moving properties from the "Yes" category to the "Reconsider" category. The entire "Reconsider" category is highlighted in yellow and consists of fifteen properties; no further action should be taken on them at this time.

    1. 1517 Bainbridge Street
    2. 1518 Bainbridge Street
    3. 1524 Bainbridge Street
    4. 1531 Bainbridge Street
    5. 1533 Bainbridge Street
    6. 1535 Bainbridge Street
    7. 1610 Bainbridge Street
    8. 1612 Bainbridge Street
    9. 1614 Bainbridge Street
    10. 1628 Fitzwater Street
    11. 722 South 15th Street
    12. 763 South 15th Street
    13. 1631 Christian Street
    14. 1633 Christian Street
    15. 1635 Christian Street

Ms. Murray asked Mr. Islam about 1637 Christian Street, which remains in the "Yes" category. Stephen Maffei, the owner of 1631-1635 Christian Street, has indicated an interest in acquiring this parcel to add to his development site. Mr. Islam has agreed in concept with this request, and I have asked Ms. Murray to work with Mr. Maffei, Mr. Islam and the RDA to attain this outcome. However, in order for Mr. Maffei to acquire this parcel, it is understood that condemnation must proceed.

Ms. Murray apprised the group that the RDA would send offer letters for the properties in the "Yes" category. Mr. Islam stated that Universal’s objective is to ensure the rehabilitation of the long-term vacant properties; he indicated that if private owners come forward and wish to enter into redevelopment agreements with the Redevelopment Authority, Universal Companies is amenable as long as the property in question is not a critical piece of the single-family, market-rate development proposal.

It was explained to those present that in order to enter into a redeveloper’s agreement, the RDA must file a formal declaration of taking, a fair-market value price must be agreed upon and the fair-market value price must be deposited into an escrow account pending satisfaction of the redeveloper’s agreement. Once the terms of the redeveloper’s agreement are met, the RDA would then revest title to the owner of the property and the escrowed funds would revert to the RDA. If, in fact, these statements were not correct, would you please be so kind as to advise me as to the procedure so I can advise the community.

At the conclusion of the meeting Mr. Islam and SOSNA agreed to meet with Ms. Murray on a regular basis to ensure that communications between the two organizations remain open and that any questions, concerns or issues can be addressed immediately.

Both SOSNA and Universal Companies have a long-standing commitment to their community, and I am confident that they can work toward progress that will result in a wonderful atmosphere for their community.

I thank you for your participation in last week’s meeting, and I look forward to working with you in the future.

With best regards, I am

Sincerely,

 

Anna C. Verna

ACV:rms
Enclosure

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