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The Pittsburgh and Philadelphia Stories

The Pittsburgh and Philadelphia Stories. Kim Graziani OFFICE OF THE MAYOR of the CITY OF PITTSBURGH. John Carpenter REDEVELOPMENT AUTHORITY of the CITY OF PHILADELPHIA. Philadelphia Vacant Land Story. DEFINITION OF THE PROBLEM. It’s Everywhere

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The Pittsburgh and Philadelphia Stories

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  1. The Pittsburgh and Philadelphia Stories Kim Graziani OFFICE OF THE MAYOR of the CITY OF PITTSBURGH John Carpenter REDEVELOPMENT AUTHORITY of the CITY OF PHILADELPHIA City of Pittsburgh – Department of City Planning

  2. Philadelphia Vacant Land Story DEFINITION OF THE PROBLEM • It’s Everywhere • 40-60,000 Vacant Properties (estimates vary) • It’s Expensive • Jumbled Ownership • Hard to Assemble Parcels • Private vs. Public Ownership

  3. City-Wide Vacancies Philadelphia Vacancy Density

  4. IT’S EXPENSIVE Philadelphia: Definition of the Problem • Lost revenue from failed real estate tax collection • Maintenance of vacant properties by City • Diminished value resulting from vacant properties $69.4 Million (to date) $11.3 Million (L&I FY2008) Blighted properties reduce the value of nearby properties by up to 20%

  5. Jumbled Ownership

  6. Philadelphia: Definition of the Problem • Private Ownership vs. Public Ownership • Public Ownership • Fragmented • Private Ownership • Tax-Delinquent 1 out of 5: Publicly Owned 4 out of 5: Privately owned Public Private

  7. Private Ownership = 4 out of 5 Philadelphia: Definition of the Problem 1 year = $1.4 Million 2 -10 years = $6.2 Million 11 + years = $61.8 Million Most of the older delinquencies are considered uncollectable. • Over half are tax delinquent, a total of $69.4 million Private Total Private Ownership = 4 out of 5 Vacant Properties

  8. Fragmented Public Ownership Philadelphia: Definition of the Problem 50% Public 27% 15% 8% Total Public Ownership = 1 out of 5 Vacant Properties

  9. Philadelphia: Goal Unified system of: • Tax foreclosure • Property maintenance • Effective marketing for reuse

  10. Recent Progress • Websites with property lists • Broker Sale Pilot • Coordinated RFPs • Simplified Documents • More Predictability

  11. How We’re Fixing the Problem City-Wide Vacant Land Work Group Convened by the Mayor

  12. Lessons Learned Land Re-use Opportunity Tax Collection Policy • Key Linkage Between: • Differing Interests • Everyone is a Stakeholder: • Homeowners • Landlords • Non-profits • Government

  13. Pittsburgh: Definition of the Problem 1986-1990

  14. Pittsburgh: Definition of the Problem 1991-1995

  15. Pittsburgh: Definition of the Problem 1996-2000

  16. Pittsburgh: Definition of the Problem 2001-2005

  17. Pittsburgh: Definition of the Problem 2006-2010 City of Pittsburgh – Department of City Planning

  18. Pittsburgh: Definition of Problem

  19. Pittsburgh: Definition of the Problem • Scale and effect of decline in certain neighborhoods • Cost to acquire, maintain and responsibly reuse • Local community capacity City of Pittsburgh – Department of City Planning

  20. Current Resources to Address the Problem • Pittsburgh Land Reserve • Mayor’s Green Up Pittsburgh Program • Comprehensive and Local Plans • Increased demolitions

  21. Goal Create a more comprehensive system to recycle tax delinquent and abandoned parcels by: • improving the current system that works if there is an end user/market; • creating a system to deal with properties with no market; and • develop a sustainable funding mechanism

  22. Larimer 45% of neighborhood is tax delinquent (1,977 out of 4,348 taxable parcels)

  23. Larimer Green Zone Total Costs • Total Cost: $1MillionTotal Acreage Under Public Control: 7.85 (13.5 acre zone)

  24. Larimer After Before 45% of neighborhood is tax delinquent (1,977 out of 4,348 taxable parcels)

  25. Process to Achieve Our Goal • Mayor Ravenstahl is leading the charge via the Land Recycling Task Force • Members of the Task Force include: • City Representatives • County Representatives • State Representatives • School Representatives • Local Authorities • Community Development Professionals • Real Estate Attorneys • Advocates • Task Force meets quarterly • Pilot projects

  26. Lessons Learned • Focus on tax policy • Costs of blight • Benefits of stabilizing communities • Involve community • Support creative reuse strategies

  27. Comments/Questions? Cindy Daley: cindy@housingalliancepa.org Dan Kildee: dkildee@communityprogress.net John Carpenter: john.carpenter@rda.phila.gov Kim Graziani: kim.graziani@city.pittsburgh.pa.us GO STEELERS! Thank you.

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