- Council Committee Passed the Freeze
- Carol Campbell Passes Away
- My first trip to the public library
- Fight digital exclusion
- What if half of Philadelphia didn't have roads?
- You know, let's not even worry about the City Commissioners office messing up voter registration processing
- Bold ideas to fix the budget
- Mayor Nutter's Town Hall Meeting Schedule
- City Releases Library Information to City Council
- Size of Philadelphia government?
High Tech Company Coming Into the City
"We looked everywhere. We looked all up and down 202, we looked in Conshohocken, we looked around Center City. The energy, the restaurants, the shows -- it's very hard to create that energy out here in the suburbs. It's uniquely a Center City thing." -Joseph McGrath, on why he moved his company, Unisys, to Center City.
Now, add in great public transportation and a trained and ready work force, and this might be able to repeated over and over. This, rather than say, predatory lenders, is who we should be recruiting into Philly. (And yes, the Street Administration did recruit and subsidize the move of predatory lenders -ABFS- into Philadelphia. Shockingly, they went belly up. Maybe this is their mea culpa.)
It is cool stuff. And, shockingly, it doesn't mention taxes. Why? Because when you ask CEO's why they choose where they choose, they sound a lot like Joseph McGrath (with added emphasis on that transportation and job readiness stuff). (Although, as you read between the lines, they have likely been "incentivized" into the City in some way.)
The failure of a cut in business taxes to do much aside, I do think that Nutter is singularly positioned to make the real reforms that need to be made in City Hall to attract businesses- like reworking zoning and L&I and the endless red tape. And, I think that business leaders probably feel comfortable with his leadership and his ability and momentum to get the job done.
(Public transit and schools, too, but that is an issue where we could really use the State and our well positioned Congressmen for.)
More businesses like these guys, less businesses like ABFS.











I’ll bet you dollars to
I’ll bet you dollars to donuts that there was some back room deal here. I didn’t get to read the article, cause the page is down, but I’m guessing that they were given heavy incentives through either tax brakes and/or government contracts.
It’s weird, because I have advocated bringing high tech companies to Philly in the past. Out of all the “high tech” companies that comes here, why did it have to be one that I would never want to work for? Unisys is a weird place where they have mass hirings and firings on a whim, and sometimes at the same time.
I guess this is a win for Philadelphia, sort of, but I can’t help but be a skeptic and also be disappointed that it’s a company that I would not care to work for.
Understand that friends come and go, but with a precious few you should hold on. Work hard to bridge the gaps in geography and lifestyle, because the older you get, the more you need the people who knew you when you were young. ~ Mary Schmich
I like donuts
Robert Lynch, a respected economist who studies business taxes and relocation issues published this in the Inky a while back:
There may have been a tax incentive offer, though why it would need to be a back-room deal is beyond me since tax incentives have been offered often and openly in the past, but Lynch's research says it wouldn't matter. And here is living proof.
straw man, sort of
I think we need to distinguish between (1) the small businesses case and (2) Fortune 500 case (types like Unisys).
In the Fortune 500 case, I'd agree with Lynch that the business case for lowering taxes to attract companies like Unisys (Fortune 500) is weak. However, in the small business case, the business case for lowering taxes to make Philadelphia more hospitable for small businesses is strong. It is telling that Lynch only addresses whether taxes affect a business's decision to locate in a specific jurisdiction. He does not address the small business case, i.e., whether taxes stifle small business growth.
According to the US SBA, more than 75 percent of new jobs are created by small businesses, and, according to the U.S. Census Bureau, 90 percent of new businesses are categorized as small businesses. If we are going to make a dent in the jobs/poverty problem, getting companies like Unisys to move to Philly will help but the problem will not be solved until we make Philly more accommodating to small business.
According to the US SBA,
I don't think you will get too much an argument there. The rub is that I strongly do not believe a small business tax cut, which could let small businesses hire a minimum wage worker for a few weeks, is the solution. I think instead we should be training a workforce, providing good and responsive services, letting taxes be paid monthly, etc.
How many BPT payers are there in the City? What percentage of the BPT cut will go to the biggest 100 of those?
I have no idea what the
I have no idea what the answers are to your questions.
And I agree that there are several different policies (like as you said training a workforce, providing good and responsive services, letting taxes be paid monthly, etc) that the City could implement to make it more friendly to small business.
I am in full agreement that cutting/eliminating the BPT is one of lets say 10 different policies designed to encourage small business. If Philly got 9 of 10 done and the BPT was the one left out, so be it.
That said, I'd just like to point out that the alternatives you suggest would, like the BPT, cost the City money. If the City was to adopt the "Dan U-A Platform for Small Business" it would necessarily have to cut services elsewhere to pay for the programs (training a workforce, providing good and responsive services, letting taxes be paid monthly) you propose.
As a practical matter, the "Dan U-A Platform for Small Business" would have the same effect on existing city services as the "Brett Mandel Platform for Small Business."
First, I think Brett and I
First, I think Brett and I agree on a lot, like the primacy of the Phillies, and that Central is a far superior high school than Northeast.
In fact, if you read between the lines, when he was asked point blank is cutting the BPT the most important thing we can do, he basically says no. (I believe the exact line is, "It is the most important thing we can do tomorrow.") That's just not how I operate though- what can we do tomorrow- when I don't think we get that much benefit for a lot of increased risk.
Anyway, I am a-ok with spending money, if we have it. Investing in our future and all that. However, I think a bunch of stuff, like responsive services, cutting red tape, collecting taxes monthly, etc., will hopefully not cost that much to the City and some of the costs -like a 311- will pay off in a more efficient allocation of resources. For example, this obviously wont magically solve our problems, but what is the cost of letting people automatically pay business taxes (or property taxes for that matter) on a monthly basis? In fact, we collect them monthly we would probably have a higher rate of collection.
Anyway, someone has to know- what is the breakdown for the share of a biz tax cut to the biggest Philly businesses? What does the median small businessperson stand to gain?
check that
I don't think most people know, because I got an email saying the Finance Dept under Street would not give out those numbers. Can we all agree that in the hopefully more open Nutter administration, this is a relevant statistic to look at before a new law is passed?
"what is the cost of letting
"what is the cost of letting people automatically pay business taxes (or property taxes for that matter) on a monthly basis?"
Unfortunately, it is my sense that such costs would be much much higher than you'd think. For instance, the Revenue Department would likely have to send out an RFP for an entirely new software system that would allow the tracking of monthly payments and what not.
I'd also guess there'd be a ton of costs relating to overcoming what some may euphemistically call "bureaucratic inertia."
like reworking zoning and
Care to elaborate on your definitions of "reworking" and "endless red tape?"
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a 10 second elaboration
A zoning code that is up to date, where variances are rare (both less needed and less granted), not the ad-hoc, everyone needs a variance method of today, where a cookie maven is effectively the Philadelphia Zoning code.
Endless Red Tape: That to set up a small business, to pay your taxes, etc., you have to waste days in the bowels of City Hall.
I'd like to make two
I'd like to make two (girls-gone) wild statements:
1.) Our zoning code is less out-of-date than people like to say that it is.
2.) Cookie maven aside, ZBA certificates, although maybe overused at times, are not such bad things, intrinsically.
While I'm no expert on the history of our zoning code, what I'm most struck by in reading it is its attempt to balance the interests of both the active community (in most cases, the business community) and the passive community (in most cases, civic groups representing the community at large). Personally, I tend to find scales that favor the passive community. That aside, however, anyone in favor of "reworking" the zoning code must be in favor of tipping the balance to one side over the other (and living with the consequences).
For example, to build a parking garage or automobile repair shop on a property zoned, say, C-7, I need a certificate. Other than the fact that it takes 8 years and hundreds of dollars to get through the process, it's not such a bad thing. Reworking the zoning code I suppose would mean that you now allow either of these things on a C-7 property without a certificate. Awesome...you just helped the business community and pissed off lots of civic groups.
Can we make marginal improvements to the code, and eliminate the need for, say, 25% of zoning hearings? Maybe. But that doesn't sound much like reworking, so which side are we going to put the hammer to: residents or businesses?
Also, this:
Is a vast generalization.
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First of all, it was
First of all, it was supposed to be a generalization. That is why I gave you one sentence.
Second,
you should have stopped there.
Glad thats settled, Fran-O.
it was supposed to be a
Of course, because generalizations make you look like you actually know what you're talking about.
Be nice, Dan-O.
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Or, because conversations
Or, because conversations with you tend to somehow always end back with how entrepreneurship is the answer to curing cancer, and getting the Phils to the world series.
Anywho, I was sort of kidding, because I know you can take it. In fact, I do know at least enough about the Philadelphia zoning process to be dangerous. I have also watched the process in action.
I know that it is a system so stupidly set up, that every single variance request must go to L&I, and then is as a matter of course always denied. If the denial is 100 percent, that seems pretty pointless. How would you like the job of denier? If we had a zoning code that made clear what changes to properties were OK, then we would cut a lot of things out, right there. And, if we either got rid of the LandI role in the process, or actually empowered them to grant variances, then that would save people a lot of time and money.
Second, the city planning commission is 100 percent ignored at the hearings. They sit meekly below the cookie monster and his buds (noted planning experts such as Eleanor Dezzi), and are ignored as a matter of course.
Third, the process is cumbersome enough that at one time there was a whole 'sherpa' industry just to get people through it.
Fourth, it is true that community groups and especially the District Councilperson have a ton of say in the granting of waivers, variances, whatever. However, I would rather have a lot of community representation at the front end, so that people don't have to go on their knees to the Counci's office every time they want to extend their porch 4 inches. Does that mean that a community group will lose a little power on the back end? No question- and that is a legitimate point to raise. However, like I said, I think it is a lot healthier to have a city wide law, a clear framework, and then if there are real problems, to deal with that.
Fifth, as a City, we should decide how we feel about mixed uses. A lot of zoning requests are for that specific purpose, right? So, as a City, we should decide what constitute nuisances, what don't, etc. Doing that would knock out quite a few hearings. A cement mixing company moving in is probably a nuisance. What about a hair salon?
Sixth, basically, the system is a tax on the average person who is requesting something that a normal city, with a normal zoning code, would not put them through, would not make them hire a lawyer, etc, to take care of.
Seventh, if you are connected, and you have a lot of cash, the system works great for you. See, for example, the billboard industry. Or, if you are in the sheet metal workers union, and the zoning board forces every person applying for a variance to install central air conditioning because they feel like helping out their union, it really works great for you.
Eighth, right now the City is going to start reemphasizing planning, right? What is the point of doing so, when one power hungry guy can just ignore any change to the law he wants, and just grant variance after variance?
Stop me before I write more and repeat myself again.
yes, yes, yes
I don't have time to write a lot, but Dan is touching on some important stuff in this post. Zoning, L&I, etc are all institutions that are in serious need of change. It's way too hard for small businesses to come into compliance with various codes and way too much of economic development is held hostage by council prerogative.
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Check out my website!
Dan-I have to say, that was
Dan-I have to say, that was very well said and it looks like you and I agree here.
I would only add that the current influence of community groups is not always a good thing, and can sometimes be downright awful. Unfortunately, many of the community groups in this city are dominated by loud, angry, and insular people who resist change of any form in their neighborhoods. Of course, there are exceptions. Also, most of the people in the community who would probably be less insular and more practical are too busy to particpate and are not adequately represented by those who run their local groups.
So, while it is hard to say it out loud, a little less influence from the so-called "community groups" is not necessarily a bad thing.
Is a zoning code that was written in 1962 out of date or current
I'd like to make a few rebuttals as an urban planner. Is a zoning code that was written in 1962 out of date or current? Is a zoning code that has provisions for tanneries and sawmills, but not for computer stores out of date or current? Is a zoning code with 55 different zoning designations, amendment on top of overlay, on top of amendment, on top of overlay out of date or current?
Is a zoning process where many knowledgeable people do not know the rules; where the rules can be changed by amendment or by the byzantine and Kafkaesque behaviors of a Zoning Board that makes the hearing board in Animal House look like the a model of decorum and process a good thing?
Is it really fair or good when a developer or a civic group wastes
hundredstens of thousands of dollars on a project that is not allowed due to an outdated, outmoded, bastardized zoning code or one that can be changed by an amendment at any point in the process? (If it really is not an appropriate use for an area that is a different story.) Is it is a good use of time, resources and a good environment for developers and citizens when nearly any type of development needs to go before before the aforementioned Zoning Board.Changing the zoning code does not mean that developers or citizens win or lose, it means having an updated realistic zoning code to reflect a new comprehensive plan, with a zoning code that encourages good land use, design and development practices, under a reasonable and newer zoning code.
I have worked with CDCs and business groups and the City to try to make sense of the permitting and approval process to open a new retail business in Philadelphia, and I can safely say that unless you are a large operation that is given some hand holding by the City and have a team of attorneys behind you it is nearly impossible to open up a restaurant in Philadelphia and follow all of the correct codes and permitting processes needed.
I'm not putting myself in
I'm not putting myself in the position of being the guy out there vigorously defending a system marked probably most pointedly by sheer confusion, but I am trying to get away from the generalized rhetoric of "it's L&I, of course it's a mess and in need of overhaul," to specific discussions about the essence of said flaws and confusion.
The Process Itself
You say:
Not true. Put simply, read. the. code. And then read it again.
I'll be the first to say that L&I has been a miserable failure if you are of the belief that a department such as this should be at the forefront of proactivity with respect to things like customer service. Manuals, for example, geared towards specific permit processes and such are long overdue. Even the ones they currently have leave much to be desired.
But, it is also true that one can learn much simply by carefully reading the Zoning Code three or four times. Generally speaking, 99% of what you need to know about "the process" itself (assuming, of course, you know your property's zoning) is there. When I think back to my first two attempts at applying for permits w/o knowing the code versus my two attempts now knowing the code quite well - worlds apart.
My point? I would bet that three-quarters of the people that call L&I "a mess" have never read the Code more than once, if at all. Should they need to? We could argue about that, but a mixture of L&I proactivity and a permit applicant's careful reading of the Code would help.
Appropriate Use
This is where, ideologically, you and I probably part ways. While I believe in the power of planning in guiding development in a broad sense, I'm not so sure that planning can be as specific as to dictate what happens property-by-property or use-by-use. And while, yes, a good discussion about how the city can better link zoning and planning would be incredibly healthy for all of our futures, if you want planning to be as specific as property by property, you should be ready to answer the question of whose power you will be taking away: local residents or businesses?
Just to throw out an extreme example, let's say that I want to open up a dog kennel and I find what we can all reasonably argue is an "out of the way" industrial property (say, over 3000 feet from the closest residence and surrounded by...I don't know...permitted concrete plants). A planner would probably say, ok, this is an area of the city we've designated to be used for industrial purposes. But, zoningwise, let's say this is a G-2 property, which means that to put certain users here, per the Zoning Code, we need to go before the Zoning Board. For all intents and purposes, this use should be granted a permit. But let's say that XXX Neighborhood Association is up in arms. They don't like that there will be increased traffic, and they "fear" it will smell (and let's say the reality is that it will not).
Now, to clean up the overcrowding of the ZBA's schedule, we've "reworked" the Zoning Code to say that this property is no longer G-2, but instead LR. A hearing is no longer required for this use, and L&I can grant you a permit the same day you come in and apply for it. You've eliminated the need for the hearing, but effectively taken power away from local residents (whether that's a good thing or a bad thing is a separate debate). Let's say instead that your "reworking" process updated the code to say that this is a nuisance regardless of where it is, and therefore this use is no longer allowed on this or any similar property. You've not taken power away from local residents, but you've effectively taken power away from prospective users. Oh and by the way you've also significantly increased the property values of every one of the (limited) properties on which this use is actually allowed, probably above what the market will support for this (or similar uses).
Assuming that planning is important, assuming that there are certainly ways that you can update the Zoning Code (such as what you mention), and assuming that there are ways to improve the process, to me it comes down to one fundamental theme: if you are going to truly "rework" or "overhaul" our zoning and licensing processes, who's power are you taking away?
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The Process is More Than Zoning; and How Zoning Works
The last time I checked, the process of opening up a restaurant goes well beyond the zoning code, and includes a whole range of other departments in addition to L&I, and a bunch of other codes and regulations. This is not to say that the codes and regulations are bad or that it should be a walk in the park to get all of the approvals needed, but the "process" now is broken and clearly does not work well or in any way resembling a reasonable manner. There are actually large cities such as Vancouver that have computerized the entire development approval process. Also, the zoning code is incredibly difficult to follow, even experienced zoning attorneys have told me as such. What you need to know about zoning may be in the zoning code, though it is not there in anything resembling an obvious or an organized or methodical manner.
As far as zoning, every property is zoned, that is a key part of zoning. Without having a zoning classification for every property you do not have zoning. Sometimes entire blocks might have the same classification, other times, such as say for corner properties, or larger properties you might want to have adjacent properties that are zoned differently and allow for different uses. Believe me changes in the zoning code will go both ways. I could just as easily write a scenario where a change in the new zoning code would take away density or a new design requirement would require a more expensive project with less return for a developer. Overall the key benefits of a new zoning code will be a more up to date linking of land use to a new comprehensive plan; a code that allows for and encourages land and building uses and lifestyles that are reflective of the way we live in the 21st century and not during the Kennedy administration; one that does not pit developers against civic groups; and one that will let developers and citizens have reasonable expectations of what will be built and where it will be built. The main people with the power that benefit from the current system are elected officials. The developers and the citizens lose under the current system. Even top zoning attorneys who get lots of billable hours from the current system realize that it is so dysfunctional (and uncertain) that they are supporting the calls for a new zoning code. Look zoning has an impact on property values, so do a lot of other factors from location to market demand to the local school system. The goal of zoning is not to maintain or increase property value, it to provide a basis for orderly development and for the common good and to benefit the health, safety and welfare of people, including orderly development. When a zoning code amendment or variance happens now because the head of the Zoning Board likes a project and could not care less about what the zoning code states or City Councilman Doe supports a project at 1234 Maple Ave. because he and the developer are friends it impacts not only the property there but other properties with the same zoning throughout the City as well as properties adjacent to 1234 Maple Ave. When the Center City part of the zoning code was rewritten around 1990, a result was that some properties went up in value, some declined, some aspects benefited developers, some aspects hurt developers, some aspects benefited citizens, some hurt citizens. None of the changes were outrageous, none were done in a way to benefit a specific property as things are done now with the spot amendments and the granting of unwarranted variances where nothing resembling a hardship exists. In closing do the current zoning code and related processes work, are they fair and reasonable in terms of process and a likelihood that the rules will not be subject to whims, deviation, and crass politics, and are they up to date?
ABFS?
I just re-read Dan's original post... never mind.
How can I delete one of my own posts?
-Z