Philly lawmakers approve tax break extension for South Philly refinery site owner | City Council roundup
Also this week: Council authorized more hearings on Kensington, and lawmakers urged the repeal of the death penalty.
Philadelphia lawmakers on Thursday approved new tax breaks for the owner of the 1,300-acre former refinery site in South Philadelphia, overruling objections from environmental justice activists and siding with organized labor leaders.
City Council unanimously passed the legislation to extend a Keystone Opportunity Zone (KOZ) program that already covers the site. It had been set to expire in 2033, but the developer of the site sought a 10-year extension on top of that to ensure long-term public benefits.
Also this week: Council authorized more hearings on Kensington, and lawmakers urged the repeal of the death penalty.
What was this week’s highlight?
Extended tax breaks for Hilco: Council passed legislation that extends tax exemptions for the site of the former South Philadelphia refinery that was closed following a 2019 explosion. HRP Group, formerly known as Hilco Redevelopment Partners, plans to redevelop the sprawling site — now known as the Bellwether District — and construct dozens of buildings over several decades.
» READ MORE: South Philly refinery site owner wants more Keystone Opportunity Zone tax breaks
The Keystone Opportunity Zone designation effectively exempts the site from most state and local taxes. During a hearing earlier this month, HRP Group said extending the program past 2033 would enable it to demolish a 211-acre site near the river that contains 40 derelict fuel-storage facilities and several miles of pipeline. Much of the refinery site has already been dismantled.
HRP Group said in a statement that the approval was “a critical step in catalyzing economic opportunity and investment in South and Southwest Philly.” They said the extension would provide “a meaningful benefit term to companies evaluating investing and creating jobs in Philadelphia.”
The legislation will now need to be voted on by the Philadelphia Board of Education, which would affected by a loss of property tax revenue. If it approves the program, the state Department of Community and Economic Development must grant final approval.
Environmental advocates spoke against the legislation Thursday, including a group of activists dressed as clowns, who said they were there to oppose the “environmental justice horror show.” Speakers said they want a variety of concessions from Hilco in exchange for the tax breaks, including a legally binding community benefits agreement and a pledge to remediate the soil on the site.
Shawmar Pitts, a lifelong resident of Grays Ferry and the codirector of environmental justice group Philly Thrive, advocated for a CBA that would require developers to contribute to community programs, including gun-violence prevention.
“We want this redevelopment to be the best that it can be. But at the same time, with all the things that are wrong in our society and our community, we want to correct those things while we have the opportunity to do so,” said Pitts, who was not dressed as a clown.
Organized labor leaders testified in support of the legislation. Wayne Miller, president of the Philadelphia Building and Construction Trades Council, said the redevelopment is a “generational opportunity” and creates about 20,000 construction jobs.
“The developers of the Bellwether District have demonstrated a strong commitment to expanding and diversifying the workforce pipeline in Philadelphia,” Miller said, “a commitment we share.”
What else happened this week?
Authorizing more Kensington hearings: Lawmakers approved legislation to hold hearings on diversion programs that are available to people who use drugs in the city’s Kensington neighborhood, the site of one of the largest open-air drug markets in America.
A hearing will be scheduled by Council’s Special Committee on Kensington, which is examining the city’s response to the drug crisis there.
Urging the repeal of the death penalty: Also Thursday, Council members approved a ceremonial resolution that urges the state legislature to pass a bill abolishing the death penalty in Pennsylvania. City Councilmember Nicolas O’Rourke, of the progressive Working Families Party, wrote the legislation. Councilmember Brian O’Neill, the only Republican member of Council, voted against it.
Ending the death penalty in Pennsylvania is unlikely given the current makeup of the state legislature, where Republicans control the Senate.
Quote of the week
I got more belts to get.
That was Jaron “Boots” Ennis, a 27-year-old boxer from Philadelphia who is the reigning International Boxing Federation world welterweight champion. Council honored Ennis and his accomplishments with a resolution Thursday — and Ennis said he’s not done in the ring.
Inquirer staff writer Jake Blumgart contributed to this article.