South Philly Market District

May 30, 2019

Introductions – Who are we?� Steering committee exploring the formation of the BID

� Goal: Outreach, appropriate bylaws, map, budget - run elections

� Cross section of civic leaders, business and property owners, other stakeholders.

� Independent of any single existing legal entity.

� All-volunteer; each contributing time, resources, expertise to conserve capital that could be going towards the actual objective –delivery of supplemental services to the neighborhood.

� Vern Anastasio– Curb Stand License Holder; lifelong resident� Eugene Desyatnik, Dennis Hallda - BVNA Civic Delegates� Sarah Anton, Ricardo Silva– PSCA Civic Delegate� Kelly Edwards – Neighbor; professional BID experience� Theresa Rose – Local Artist, PSCA board member� Joseph Marino – publisher, Passyunk Post� Gregory Damis – Affected Property Owner; 2016 committee� Louis Zahner – Affected Property Owner� Chris Fetfatzes – Affected Property Owner� Charles Scogna – Affected Business Owner� Lisa Budnick – Affected Property/Business Owner

How is this effort different from 2016?

� Revised priorities in the budget, featuring new blight remediation.

Innovative new plan for façade improvement, activation of dead space

� New entity will be independently elected, funded, operated.

No sharing of funds or staff with existing legal entities.

All voting board members now elected, not appointed (except Squilla)

� Increase board seats to 15 per new PA Law, to better represent

the geographic diversity of the entire district

� Curb stand vendors get input on how existing fees spent locally

BID will be eligible to recapture annual fees already paid; no extra fees

� New faces; all volunteer pro-bono formation effort.

Statutory Background:What exactly is a BID?

� Allows property owners and businesses to organize and come together in order to fund supplementary services beyond what the city provides.

� Promotes economic and general welfare of the commercial district

� Has a defined geographic service area

� Governed by elected non-profit board, accountable to community

� Funded by an assessment on commercial properties and via grants

� Provides services not provided by the city

� Made possible by “NIMDA” PA Statute, first enacted in 1998 http://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1998/0/0174..HTM

Existing Examples� South Street Headhouse District

� East Passyunk Ave BID

� Mayfair BID

� Chestnut Hill District

� Germantown Special Services District

� Roxborough District

� Manayunk Special Services District

� Mt Airy BID

� City Ave District

� Port Richmond (PRIDE)

� Aramingo Shopping District

� University City District

� Old City District

� Center City District

� Northern Liberties OCT 2018

� Callowhill… Fishtown… on the horizon

Unique Challenges & Opportunities

� Market remains a source of pride to be cherished. Oldest continuously operated outdoor market in the United States, with its iconic awnings, specialty foods, curb stands, fire cans.

� Business association is a strong advocate for its members, providing support using the limited resources at its disposal.

Opportunities

� Customer foot traffic is down from prior years.

� Particularly during certain days/hours.

� Litter along commercial streets accumulates at a pace beyond what volunteer/crowd-funded efforts have been able to control

� Opportunity to address deteriorating storefront facades, blight.

� Opportunity to renovate and fill some empty curb stands

� Opportunity to fill vacant residential units above the stores

� Improved coordination among all the commercial stakeholders.

Objectives

� Deliver supplementary services not provided by the city.

� Create a more vibrant, competitive commercial corridor.

� Provide a cleaner, brighter, more cohesive experience for visitors

� Attract and retain tenants and customers

� Activate spaces.

� Qualify for, pursue, administer city, DCED state, federal grants.

� Provide a stronger collective voice when interacting with city

� Bring new stakeholders and local participants to the table.

� Represent local business communities in an inclusive way.

� Build on the rich immigrant history and diversity of the market

� Support property & business owners with improvements (voluntary)

� Produce new events, traditions, cultural experiences.

� Everyone within the service area will benefit equally – from

Fitzwater to Federal. Residents and visitors will also benefit.

Recent Developments – why now?

� New grant opportunities – BIDs & CDC’s uniquely qualify

- 501(c)(3) qualifies such entities to be recipients

- have the cash flow to spend and then be reimbursed

- have the staff to manage and oversee projects to finish line

� New functions the city is looking to entities like BIDs to provide via P3

� City scaled down on services through taxes paid/services rendered

signals greater reliance on private-public partnerships.

� E.g. areas that want trash cans, have to buy & empty them https://whyy.org/articles/with-no-cash-for-trash-city-mulls-partnerships-with-private-groups/

� Renewed excitement in seeing expansion of these services; e.g. neighbor

crowd-funded sidewalk/curb sweeping launched in Spring of 2018 (on a

limited scale & frequency).

� New BIDs are forming this year

� Finally – artifacts from 2016 effort are becoming dated

Services at a glance (within coverage area):

Attract, guide, enchant, retain. Rediscover the market!

What are the Top 5 services the BID will fund?

� 1.Façade improvement assistance now the #1 budget line item.Provide matching funds to qualify and/or extend city or state grants. Encourage revitalization of storefronts, preservation of curb stands,activation of spaces, a more consistent & inviting corridor. $130k

� 2. Litter and waste removal: pan & broom sidewalk & curb sweeping.May also include servicing trash cans, electronic & hazardous waste

recycling (TVs), seasonal leaf removal, power washing $80k

� 3. Promotional services: Market the area, produce special events.

Partner on existing celebrations, create new traditions $35k

� 4. Parking management and wayfinding. $10k

(valet pilot, shuttles, parking validation, loading zones, corrals)

� 5. Communication: Postage, mailing, electronic. 5k

� Each projected to increase over the next 5 years, as collection rates improve, and start-up expenses are no longer incurred.

� The duly elected board will recalibrate these categories to respond to evolving needs of the market and benefit of the Service Area.

What are the Top 5 services the BID will fund?

façade, streetscape

50%

litter and waste

31%

promotional services

13%

parking management

4%

communications

2%

BID Services

façade, streetscape

litter and waste

promotional services

parking management

communications

Services & Programs – continued

Additional off-budget opportunities via grants and partnerships:

� Preservation and maintenance of the 9th Street curb stands.

� Lighting, cameras, graffiti removal, public safety awareness.

� Technical support with SIP, SafeCam, other matching city programs.

Special Program examples to be evaluated by board:

� Pop ups can activate spaces, attract new categories of shoppers to discover the corridor, support emerging entrepreneurs, new concepts with less long-term commitment.

� Promote special times to visit the area – as done by other districts -“Fourth Thursday”, “Small business Saturday”, “Dollar Stroll”. (A coordinated effort with broad participation to be successful).

� Pedestrian Saturday morning hours

� Place-making that can punctuate commercial activity.

� Parking and Transportation to ease access by all modes of transit, (partner w/PPA, SEPTA, OTIS, civics to address unique district needs)

� Public art to transform interested vacant storefronts, security grills.

Partnership with local artists and cultural institutions.

�

Public art to transform inactive storefronts

..through partnerships with

local cultural institutions

and artists.

Grant examples

� dced.pa.gov/programs/local-share-account-lsa-philadelphia - $500,000

Alignment: can fund all new curb stands, lighting, parklets, corrals.

� dced.pa.gov/programs/multimodal-transportation-fund up to $3,000,000

Can fund streetscape, lighting, sidewalks, ramps, pedestrian safety, wayfinding.

� www.phmc.pa.gov/Preservation/Grants-Funding/Pages/Construction-Projects.aspx

Can fund small construction projects in historically significant areas eligible for

national registry, or eligible for registry. We have the oldest outdoor market.

Alignment with blight elimination strategy.

Note: Keystone Historic Preservation grant requires 50/50 cash MATCH for funds.

� dced.pa.gov/programs/keystone-communities-program-kcp

This can fund facade improvements, security cameras, some interior renovations.

� Can pursue Main Street & Elm Street designation, which open additional options.

� City programs -- SIP (storefront improvement program), SafeCam (security cameras).

While these are programs already in existence, a BID can help with the paperwork.

Areas without BIDs, receive virtually no applications for these resources.

9th is Eligible. BID can expand eligible area to include 8th, 10th, Christian, Washington.

All of these require a certain organizational capacity to apply for and administer.

Grant examples

Parking Management

Goals

-Promote turnover during business hours

-Better serve your customers, tenants, and employees

How:

� On-street management

� Off-street partnerships

Manage valuable curbside

� BID funded loading zones

� Metered/2hr limit spots

� Valet / shuttle spots

� Zone Permit for residents

� Bike Corral for workers & customers (10 bikes = 1 spot)

How will properties be assessed?Working budget assumes a 0.2% assessment or $365/yr (which is greater)

Assessment is based on OPA (Office of Property Assessment) Market Value

(tax abatements are not a factor – the full property value is used as the basis).

Included:

� Commercial use properties, commercial or industrial zoned vacant lots

� Residential unit(s) rented out for-profit (irrespective of unit count)

Not Assessed:

� Owner-occupied residential units would be EXEMPT (can join voluntarily)

� Non-profit cultural, religious, education institutions EXEMPT (voluntary)

� Curb stand license holders and operators continue to pay existing fee

Example

� 0.2% assessment of Market Value

� Subject property is valued at $500,000� Annual assessment would be $1,000

� Given proposed map, allows approx. $450k annual budget

Affected property owners will receive exact figure personally

What does the budget look like?

What will theService Arealook like?

How many properties is that?

STREET NAME PROPERTIES Board Seats

Carpenter St 22

Catherine St 1

Christian St 82 1

E Passyunk Ave 39 1

Ellsworth St 19

Federal St 2

Fitzwater St 1

Montrose St 24

S. 10th St 39 1

S. 11th St 1

S. 8th St 72 1

S.9th – North of Washington 104 2

S.9th – South of Washington 54 2

Washington 37 1

Total 497

Who will lead the BID, once established?

Steering committee will produce and submit a plan, and hold elections, file

The new non-profit entity will have its own duly elected Board of Trustees

� Commercial property owners in Service Area paying the assessment.

� Commercial tenants (businesses) operating within service area.

� Curb Stand owners and operators along 9th Street.

� District Councilperson representative.

� 13-person board, plus 2 non-voting advisors (PA Max now allows 15)

• Geographic diversity will ensure S 8th, S 10th, Washington, Christian represented

• Non-voting delegates or advisors from the two civics have been added.

• Voting members will still primarily represent commercial interests

• 2-year odd/even staggered terms, 2-term (4yr) limit. Must sit out for 1yr.

• Except for Council appointee – only affected property or business get a vote

Board will hire & oversee an Executive Director to run daily operations.

Board Composition

� 1 Affected Property Owner or Business Owner along S. 8th Street.

� 1 Affected Property Owner or Business Owner along S. 10th Street.

� 1 Affected Property Owner or Business Owner along E. Passyunk Ave

� 1 Affected Property Owner or Business Owner along Washington Ave.

� 1 Affected Property Owner or Business Owner along Christian Street.

� 2 persons from S. 9th Street, South (of Washington).

� 2 persons from S. 9th Street, North (of Washington).

� 1 person being either a Curb Stand Licensee or Curb Stand Operator.

� 2 persons, At Large, representing any class of membership.

� 1 person representing the primary Philadelphia City Council District.

Officers / Executive Committee

� Board will hold an annual organizing meeting to then elect its officers.

� These shall include a Chair, Vice Chair, Secretary, and Treasurer.

Only affected property owners, business owners, curb stand operators vote.

Neighbors, folks outside the Service Area, may participate in Committees.

What is the role of the two civic associations (BVNA, PSCA)?FORMATION PHASE:

� Provide a delegate to steering committee

� Participate in discussions, help with outreach and other legwork.

� Facilitate, moderate, host, and advertise meetings

ONCE FORMED:

� Explore synergies (e.g. street sweeping vendors, other alignment.

� Provide 1 delegate each, to serve as non-voting advisor on Board

� Provide delegate(s) to sit on certain committees, in advisory capacity, at the pleasure and discretion of the Board of Truestees

� But ultimately, the BID will be a completely new independententity – formed for the primary benefit of business and commercial property owners, and run by the business and property owners.

� Business and property owners will be able to vote for Trustees

� Business and property owners will be able to pursue such positions

� Voting board members will represent commercial interests.

� This approach brings people with existing knowledge of city or supplemental services, in-flight grants, other skills to the table, to ensure that close collaboration continues so that efforts are not duplicative, while still keeping commercial interests front and center. Residents do not get a vote.

What’s Next?

Oct

Nov

2018

MAIL INVITES;

FLYER / CANVASS

Dec

2018

DEDICATED PUBLIC MEETINGS

12/3 CAPITOLO, 12/10 FLEISHER

June

2019

INTRODUCE LEGISLATION

NEWSPAPER NOTICE

Sept

2019

COUNCIL HEARING

45-DAY VOTE PERIOD

NOV

2019

BOARD ELECTIONS

INVOICES PREPARED

BID Formation Timeline:

PUBLIC PRESENTATIONS

BVNA & PSCA Civics

12/12 9th/Ellsworth, 12/27 903 S 9th

COMMERCE & LAW DEPT REVIEW

ADJUST PLAN

PER FEEDBACK

INCORPORATE

2020 – open office, receive fees, hire staff, launch services

Feasibility

Planning

Outreach

Formation

Steering Committee will

� Submit petition signed by 8+ property owners

� Continue to meet with business and property owners

� Finalize the map, budget, bylaws, initial branding.

� Work with Commerce Department.

� Finalize and publish committee, bylaws, properties.

� Conduct smaller meetings, be available for feedback

� Advertise meeting in local newspaper, mail notices.

� Work with city council on ordinance and testify

� Answer questions, offer support during 45 day voting period

� Serve as the nominating committee to facilitate elections

How you can help

� Email your ideas or to request more information: 9thStreetImprovement@gmail.com

� Register support on the site https://www.improve9thstreet.com/

� Follow on twitter @SouthPhillyBID or Facebook page

www.facebook.com/SouthPhillyMarketDistrict

� Spread the word about future community meetings.

� Provide input to help shape the plan to best serve everyone

� Volunteer to help with steering and other committees

� Consider leadership and partner opportunities once formed

How you can help..spread the word

#KeepGritLoseGrime

#RoomForImprovement

The South PhillyMarket District

Unique challenges and opportunities

(appendix slides)

�

�

�

2018 Litter Index Map..9th & Washington a continued challenge

�

�

What is the role of S 9th St United Merchants Business Association?

� The 9th St Merchants Association will continue to support its members, who have committed time and invested resources in the association, by marketing the member businesses, offering visitor information and hospitality services at the visitor center, operating the parking lot, and produce existing events such as the Italian Market Festival.

� The BID will be in a better position to add more physical services, amenities, and improvements (trash cans, capital reinvestment into storefront façade assistance programs, pedestrian amenities such as street furniture, pedestrian-scale lighting, and be eligible to receive state grants.

� The BID will be able to bring additional local stakeholders to the table, such as non member businesses along 9th, “off-9th” businesses, Washington Ave, residential multi unit property owners, more broadly represent all communities

� With more combined resources, the two entities will work closely together to accomplish many common goals for the betterment of the area. There is plenty to accomplish through a productive partnership.