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New Budget Causes Ripple

in South Philadelphia

The new financial budget for the City of Philadelphia will require public services in South Philadelphia to close while giving great financial incentives for a business to remain.

As of July 1, Ladder 11 will close in South Philadelphia. The city plans to replace the Ladder with a medic unit due to the increased number of medical emergency calls and decreased number of fire emergency calls the company has received over the past few years. Engine 3, also located in South Philadelphia, will be re-located to the Rittenhouse area of the city. A medic unit will be placed in Engine 3's fire house as well.

The residents of South Philadelphia, as well as Councilman Frank DiCicco , are worried about the safety of the community now that two fire companies will be closed down. Five of the closing fire companies are within the vicinity of Councilman DiCicco's district. DiCicco's spokesperson Brian Abernathy says that the councilman was very unhappy with the outcome of the situation. "Mr. DiCicco worries that safety is not being considered by the Street administration's budget cuts."

        

      Comcast's building project at 17th Street and JFK     Boulevard remains an influence for budget concerns

One resident of the area, Florence Robinson, says, "Ladder 11 is two blocks from my home. In the 48 years that I've lived here, the firemen at that station responded first to any emergency I have ever had." According to one local fireman, Ladder 11 is the first to respond to any emergency within the boundaries of Washington Avenue to Mifflin Street and Fourth to 22nd streets. In 2002, Ladder 11 made 869 "runs," and only 81 of those were fires. Once the ladder is closed, it will be up to the closest station to respond. Residents fear that the closest station may be too far away. "The next closest fire station to my home is 15 blocks away. That's scary," Robinson says.

However, even though the neighborhood will loose two fire companies, the city has negotiated and won the battle to keep the Philadelphia Regional Produce Terminal in South Philadelphia.

The Produce Terminal was offered a $90 million facility and tax incentives by New Jersey if it would move across the river to Camden. But the $1-billion-a-year business and its 1,100 employees decided to accept a $150 million facility on Columbus Boulevard at Oregon Avenue in South Philadelphia. And, as for tax incentives, the City Council approved a package of tax breaks that will definitely benefit the company.

A Keystone Opportunity Improvement Zone, such as the zone designated for the produce terminal, will give breaks on certain state and local taxes, including real estate taxes. This may not necessarily benefit South Philadelphia because real estate taxes are the main funding for the school district.

However, Councilman Wilson Goode, Jr., has developed legislation called, "Keep Philadelphia Competitive Tax Credit," as an alternative to the opportunity zone legislation. This decreases the cuts that companies receive towards certain taxes, such as the real estate tax. The legislation was designed in response to various professional groups opposing the new Comcast building at 17th Street and John F. Kennedy Boulevard becoming an opportunity zone. In January, the Center City District, wrote, "Owners of existing downtown buildings could lose $14.4 million annually in rent." in response to an opportunity zone being placed in the area. It is unknown if Goode's legislation will be applied to the produce terminal.

A local resident of South Philadelphia, Renee Rosati, says, "I have to thank local government for doing what they can to create new jobs for the neighborhood and for keeping the old ones here. Even though we will be loosing two fire companies, the neighborhood will have the benefit of keeping major employers in the area."

 
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