Smart Growth &The Philadelphia

Sheriff

Presentation byJohn Kromer

During the past, housing-bubble decade…

…the rate of growth in Greater Philadelphia fell to its lowest level since the 1960s.

Why?

Because some suburban areas…

… are now completely built out.

In some places, there is nothing left to develop.

More investors and developers are pursuing opportunities in the city.

Southwest Center City in 1998: 553 vacant houses.

Southwest Center City in 2008:

Only 49 houses are still vacant.

This year, twenty-something children of the suburbs are living at:

20th & Diamond

This year, twenty-something children of the suburbs are living at:

16th & Tasker

This year, twenty-something children of the suburbs are living at:

5th & Berks

The row house used be called “obsolete.”

Now, in some neighborhood markets, it’s “smart.”

It’s energy efficient.

Land is available to develop the latest green-building products.

What kinds of investors are seeking opportunities here?

The Good: local developers and contractors

What kinds of investors are seeking opportunities here?

The Bad: predatory speculators

What kinds of investors are seeking opportunities here?

The Cluelessinexperienced devotees of get-rich-quick schemes

Some of the worst investors know how to game the system

…to avoid code enforcement and tax foreclosure.

And Philadelphia’s antiquated tax foreclosure system…

…is an open invitation to them.

Bidders aren’t screened for experience or qualifications.

- not even for past performance in Philadelphia.

The result?

More neglected properties in every section of the city.

A Better Way I - Flint, Michigan

Land bank takes over all foreclosure-eligible properties.

A Better Way I - Flint, Michigan

…and assigns them to responsible developers.

A Better Way II - Reading, PA

Reading purchases foreclosure-eligible properties directly, bypassing auction.

A Better Way III - Baltimore, MD

Through receivership, Baltimore acquires vacant properties in areas targeted for reinvestment.

We’re making some progress

The Managing Director is now in charge of blight strategy.

But not enough progress

We’re still paying an independently elected Sheriff

#1‘Yes’ vote on a referendum question:

Should the position of Sheriff be abolished?

How to Reform

#2Reallocate city funding for Sheriff Office to

other municipal departments.

How to Reform (Another Approach)

Best Time to Improve: Now