The proposal to convert the Provident Mutual Insurance Co. site at 46th and Market into a healthcare campus hit a major roadblock on Thursday when Councilwoman Jannie Blackwell halted a vote on legislation that would have allowed the city to sell the property.
The move followed a contentious public meeting in West Philly on Tuesday where several community members spoke against the proposal, which the city selected this summer after a bidding process. Criticisms included the low sale price of $10 million and a lack of transparency in the bid selection process.
Blackwell echoed those concerns and said there were other developers interested in the site who were shut out of the bidding process.
The proposal would create a partnership between Philadelphia-based commercial developers Iron Stone Real Estate Partners and the Public Health Management Corp. to build and run the site. Proposed tenants included the Children’s Hospital of Philadelphia, University of Pennsylvania and the YMCA.
Many residents said that Tuesday’s meeting was the first they had heard about the project. A vote on the proposal was scheduled in City Council for Thursday. The sale requires City Council to pass an ordinance, but rules allow individual members a final say in land use decisions in their districts.
Mayor Jim Kenney, who nixed plans to move the police headquarters to the Provident site, issued a lengthy statement on Thursday denouncing Blackwell’s decision to halt the deal.
“It is unfortunate for her own constituents, because it would have brought health care for adults, children and families to West Philadelphia,” he said in the statement. “Now, all of that evaporates, and leaves the community only with what it has had for many years – a vacant building.”
Kenney disputed Blackwell’s claims that she was left out of the bid selection process. He also argued that the city would have recovered its investment in the 13-acre site – some $52 million plus interest – through its sale and property, wage and sales taxes generated by the site.
Critics have said the property sale price is far too low, though appraisals have put its value at $10 million.
Councilman Allan Domb said during the City Council meeting on Thursday that he was glad that the sale was held “for further conversation.”
“While I’m not against the use of 4601 Market, I would have voted ‘no’ because of the waste of taxpayer money,” he said.
Thursday’s meeting was the last City Council session of the year.
December 17th, 2018 at 9:55 pm
Whatever one thinks of the deal (I think it was a bad one), it’s ridiculous that one person, any one person can block the sale. No one, not Blackwell, not Kenney, none one should have this power. Another example how poorly this city is run. This is not an oligarchy!
December 18th, 2018 at 1:20 pm
Next year will be the 100-year anniversary of councilmanic prerogative in Philadelphia! There should be ten separate parades, each on a different day.
https://www.pewtrusts.org/en/research-and-analysis/reports/2015/07/philadelphias-councilmanic-prerogative-how-it-works-and-why-it-matters
December 19th, 2018 at 1:35 pm
Jannie Blackwell has helped Amazon justify its rejection of Philadelphia as a site for its corporate headquarters. And added to the problem is the way City Council votes which is dramatically different from any city in this country. A single Councilman or Councilwoman can simply request that the vote not take place and his or her motion will be graciously acted upon. Only in Philadelphia does this happen.
Blackwell has claimed there was a lack of transparency when the truth was that the developer answered every question people asked him. Everything was crystal clear as to who was coming to 4601.
There was not a long line of people who wanted to buy 4601. The developer of 4601 was the one chosen to build and his 10M offer was the best they could receive. The developer will invest millions more to finish the building and have it ready for tenants to occupy. The city lost nothing as it wanted to get rid of an albatross by selling it to a developer.
Hopefully cooler heads will come back in January and this will be cleared up so that Council will be able to approve it. Even if Blackwell and Domb are the only ones voting no, the rest will vote yes.