Land (bank) and Water (department): A Philly update

On Monday, Philadelphia Mayor Michael Nutter held a signing ceremony for the Philly land bank bill. It represents an historic opportunity to address the City’s broken system for putting vacant properties back to productive use. 

The hard work of creating a Philadelphia Land Bank begins now. To get the land bank up and running quickly, the Philly Land Bank Alliance has called on the Nutter Administration as well as City Council to focus on three key steps:

• First, the Nutter Administration and City Council must appoint a permanent Board of Directors so they can immediately begin the work of overseeing the development of the new agency’s Strategic Plan, policies, and regulations. 

• Next, the Council and the Mayor need to work together to ensure adequate funding for the Land Bank’s operations as part of the FY15 budget. 

• Third, Council and the Administration must transfer all of the thousands of publicly-owned properties to the Land Bank. A key reform of the land bank ordinance is the consolidation of publicly-owned properties from the three agencies that currently hold them into one single entity.  

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In December, we told you about a bill that will change the way water rates are set in Philly. After 2015, a board of political appointees will be tasked with setting rates. We agree with ex-Mayor John Street on this one. It's not a good idea. 

We were especially concerned because last-minute amendments removed key minimum financial standards that had been negotiated by the Philadelphia Water Department, City Council, and stakeholder groups -- standards that would help guarantee that the department has rates set high enough to cover operating expenses and debt service.

In addition to harming the Water Department's ability to carry out its mission, we were concerned the lack of basic financial standards could damage the department's credit rating and cause concern among bond holders. Why is that important? When it costs more to borrow money, those costs are absorbed by water customers -- ultimately leading to higher rates across the board. 

Welp, that didn't take long. 

In an otherwise positive ratings outlook, credit rating agency Fitch cited recent Council amendments and "politicization of rate relief," saying that the changes made to the ordinance raise concerns and could lead to "negative rating action" -- meaning higher water rates.  

While there was no credit downgrade, make no mistake, credit agencies will be watching closely. 

This is a story we'll be following. 

Andrew Sharp is PennFuture's director of outreach and is based in Philadelphia.

Last minute City Council amendments could prevent PWD from making critical investments

"If you let politicians set water rates, we'll all be drinking mud."

Those words were uttered by someone who knows a thing or two about Philly politicians, former Mayor and Council President John Street. 

On Thursday, City Council is set to vote on a bill that will allow a board of political appointees to set water rates. 

Currently, water rates are set through a public hearing process in which the Mayor and City Council select a hearing officer and a public advocate, with the final decision to approve rates made by the Water Commissioner. 

While not perfect (or completely devoid of politics), the process has allowed the Philadelphia Water Department (PWD) to maintain water infrastructure and set rates that ensure we have clean drinking water. [PennFuture intervened in both the 2009 and 2012 rate proceedings.]

The current rate process has afforded the City the ability to make badly needed investments in stormwater infrastructure through its Green City Clean Waters initiative, the City's Environmental Protection Agency (EPA)-mandated plan to protect and enhance our water supply by managing stormwater. 

But thanks to a ballot question last November -- and last-minute amendments in City Council last week -- things could change, and soon. And not in a good way. 

Let's back up: Last November, voters approved a ballot question to create an "independent" rate-making board. (Not surprising given that Philly tends to approve the cleverly-crafted ballot questions). PennFuture opposed the ballot question at the time, as it will instantly burden the process with more political actors who may not understand the need to balance low rates with the need to create a good water system.

On Thursday, City Council will vote on a bill that will officially create this rate-making board and regulate how the rates are imposed. 

But missing from that bill are key provisions that would provide the water department basic fiscal certainty -- fiscal certainty that is needed to protect our water supply, maintain aging infrastructure, and adapt to unforeseen economic circumstances. 

Amendments introduced last Thursday removed essential minimum financial standards that had been negotiated with the Water Department, City Council, and stakeholder groups -- standards that  would help guarantee that the department has rates set high enough to cover operating expenses and debt service. 

In June, a bill passed out of committee that did just that. We testified in support of the original unamended bill at the committee hearing because it gave the department the best chance to continue its crucial stormwater work and adequately invest in key infrastructure projects. 

In addition to harming the Water Department's ability to carry out its mission, the lack of basic financial standards could damage the department's credit rating and cause concern among bond holders -- ultimately leading to higher rates for all ratepayers. 

We urge you to contact your Councilmember and tell them that the Water Department needs basic financial certainty to do its job and provide clean, safe drinking water. 


Andrew Sharp is PennFuture's Director of Outreach and works out of our Philadelphia office. 

Will Philly get a real land bank? Or a land-bank-in-name-only?

Last week, Philadelphia took a significant step in its quest to fix its broken vacant property disposition system and create a single predictable, transparent and streamlined process for vacant property disposition.

The good news: Bill No. 130156 was reported out of Philadelphia City Council's Committee on Public Property and Public Works. I represented PennFuture at the hearing last Monday and encouraged the Committee to create a land bank that prioritizes sustainable reuses such as side yards, community gardens, urban agriculture and other green space.

The bad news (well, let's not call it bad news so much as room for improvement): The bill was amended at the last minute to require three elected and appointed public bodies to approve the transfer of every one of the almost 10,000 parcels of the city’s publicly owned vacant property.

PennFuture's Director of Outreach, Andrew Sharp,
testifies at last Monday's land bank hearing.

The amendments to Bill No. 130156 made in Committee would require a resident who seeks to buy the vacant blighted lot next door to be approved by Land Bank staff, the Vacant Property Review Committee, City Council and the Land Bank Board – a process that will involve the approval of more than 41 individuals and be lengthy, redundant and offer significant uncertainty. Requiring three separate public bodies to approve each property transfer will discourage, rather than encourage, rehabilitation of blighted properties.

This is a critical moment for Philadelphia to create an effective new Land Bank and a streamlined process to transfer vacant land to new, sustainable reuse. Philly is growing again for the first time in six decades. We need new policies to capitalize on this growth. This is the opportunity for City Council and the Nutter Administration to create a smart, effective Land Bank.

We call on City Council to pass a Land Bank bill that establishes a disposition system that requires decision making by two entities at most – with all initial vetting, legal and administrative processes, and public outreach conducted by the land bank staff. Anything less is unjust to the Philadelphians who are saddled with vacant, blighted properties and the people who are doing the hard work of revitalizing our neighborhoods and putting properties back to sustainable reuse.

Take vacant land to the bank in Philly

PennFuture was one of several groups to spearhead the creation of the Philly Land Bank Alliance -- a diverse group of stakeholders all working together to advocate for a land bank in Philadelphia. In March 2013, Councilwoman Maria Quinones-Sanchez introduced legislation to create a Philadelphia land bank. 

Members of the alliance represent a broad spectrum of stakeholders, from neighborhood advocates, community development corporations, market rate developers, advocates for small businesses, green space and food access. 

Uniting these disparate interests is a belief that a predictable, efficient, transparent, accountable, and equitable land bank is an essential part of the significant reforms necessary to place our vacant properties into productive reuse. These values have resonated with Philadelphians and now hundreds of individuals, nonprofits, and small businesses from across our City have signed on in support of a land bank.

Now, after months of hard work, a national conference, and significant media attention, City Council has scheduled a hearing on the Philadelphia land bank bill. We’ve seen that together we can make an impact – that we can create meaningful change to improve our neighborhoods, find sustainable reuses for vacant properties and begin to eradicate blight in every corner of the city. 

But we can’t do it without you

We need you to save the date: Monday, October 28, 2013 at 10 a.m. in City Hall, Room 400. We need you to turn out with your friends and colleagues to show City Council that reforming our broken vacant property system is important to you and critical to the long-term sustainability of our city.

In the meantime, we’re looking for your vacant property nightmares.

Tell us your stories about the challenges you faced in trying to acquire publicly or privately held vacant land. Tell us about a vacant property that hasn’t been kept up, that has attracted crime and trash, or has brought down the block. Tell us about a vacant property that has harmed you and your community.

Click here to tell your story, so that we can share your experience with City Council members and let them know that this is urgent. We need a #LandBankNOW.