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Hallwatch users wrote City Council in droves about Ikea. I
learned last night that Councilman Jim Kenney has sent out the following reply. Kenney's letter (see below) praises the
work done by Kenney's friend and political ally, Councilman Frank DiCicco in negotiating the
deal to bring Ikea to Philadelphia. DiCicco and Kenney are members of
State Senator Vince Fumo's
political family.
In his letter Kenney points out that DiCicco got a much better deal
from the parties than was originally offered. On this point, there
can be no doubt: DiCicco managed to extract around 40 acres of land
from railroad giant CSX that had previously not been on the table. The Philadelphia Port hopes to use the land
to expand, bringing more jobs and business to the City than a shopping
center alone could have.
Kenney also argues that DiCicco had to accomodate the Port's
interest in getting more land for future expansion, otherwise the Port
would have confiscated the land from Ikea. The Port has the power of
emminent domain from I-95 to the Delaware River. Why the Port and
DiCicco had to use Ikea as a bargaining chip in their dealings with
the Railroad is not so clear, at least to me.
For example, why didn't the Port simply confiscate the parcels it
wanted directly from CSX rather than by threatening to ruin the Ikea
deal?
Were the hard ball tactics employed by the Port and DiCicco
necessary? I suspect DiCicco did what he had to do to get the deal
done, but not having been there there's no way to know for sure. In
my opinion, the bottom line is this: DiCicco delivered. Ikea and
other nationally known retailers will build in South Philadelphia.
The Port now has the land it needs to expand. The deal is a big win
for Philly and a major achievement for DiCicco.
Ed Goppelt, webmaster@hallwatch.org
December 18, 2002
Dear Hallwatch User:
I greatly appreciate your recent faxed letter to my office. Hallwatch.org's FaxBank provides a great service by helping citizens communicate with their elected officials, and I appreciate its use and welcome your input.
As you no doubt have heard by now, a compromise was brokered by First District Councilman Frank DiCicco that will finally bring to Philadelphia its first Ikea. As the Chair of the Rules Committee through which this legislation passed, I was heavily involved with these negotiations and was very impressed with how calmly Councilman DiCicco handled the intense pressure he was under from all sides.
I received several hundred faxes regarding the need for the construction of an Ikea, and some questioned whether my friend Councilman DiCicco was "playing politics" by not getting this development done sooner. Please understand that this was never the case, as all parties were always committed to bringing Ikea to Philadelphia, and rarely is such a large and complicated deal ever done quicker. In fact, except for the new stadium construction deliberations, I have never seen negotiations for a development project conducted in such an intensely public way.
In addition to the obviously very compelling argument to bring an Ikea to Philadelphia, there were other important stakeholders with persuasive arguments on all sides of this debate. Governor-elect Rendell has declared the expansion of the Philadelphia port as one of his highest priorities, and with its recent federal designation as a ?Strategic Port? and federal funds finally allocated for dredging, it has become critical for the port to expand beyond its current boundaries. Since the port has the ability to use eminent domain to condemn and seize any property it desires, Councilman DiCicco knew it was in everyone?s best interest to bring Ikea, its developer, and the owner of the land (CSX) to the table to work out a compromise with the port.
The resulting compromise that Councilman DiCicco brokered was a significant improvement upon what was initially offered, resulting in a wonderful new shopping center with an Ikea as its crown jewel, acres of land made available for Port expansion, and a significant investment in the surrounding community by the developers of the project.
I am sure you join me in commending all parties for finally getting this wonderful deal done, and I want to thank you for keeping the pressure on your public officials to ensure that they always do the right thing. I encourage you to continue to speak out and communicate with us, and if my office can ever be of any assistance, please feel free to call at (215) 686-3450. Happy Holidays!
Sincerely,
James F. Kenney
Councilman-At-Large
Councilman Frank DiCicco brought home the bacon today, brokering a deal that will allow Ikea to build in Philadelphia. Read DiCicco's press release. At times stumbling over his words, an exhausted DiCicco thanked a long list of people at today's Council session for their help in making the deal happen.
The deal is a big win for Philadelphia, and a real achievement for the Councilman. By bringing the Ikea deal in for a soft landing, DiCicco delivered for a host of people: the Port, the Unions, his political ally Senator Fumo, the Mayor, the Developer and above all his constituents in the 1st district.
The new Ikea store, which is expected to move hundreds of millions of dollars of furniture a year, will employ 500 people, and contribute millions of dollars to city tax coffers. In addition, with new land at its disposal, the Port is poised to expand its automobile shipping and military cargo business, which would create new, high paying jobs for Longshoremen.
I've always been impressed by DiCicco's ability to pull a rabbit out of the hat when his back was against the wall. Certainly, Ikea comes none too soon for DiCicco: Ever since his support of Bill 629 enraged community groups around the city, the Councilman has been on the defensive. He lost in his bid to succeed Buddy Cianfrani as leader of the 2nd ward when the local committeemen rebelled. The Electricians have had him in their gun sights for some time now.
But the Councilman seems to do his best work under pressure. DiCicco had been speaking with the Ikea parties for over a year with little to show for it when Ikea's deadline forced the issue. Three weeks of frenzied negotiations ensued, during which time I suspect the Councilman put his talent for crisis driven negotiation to good use.
Although I personally found the brinksmanship employed by DiCicco hairraising, he ultimately delivered bigtime for the City and for his constituents. And that's what counts.
Ikea may end up in Cherry Hill yet, unless City Council, and in particular, South Philly Councilman Frank DiCicco, deliver the zoning changes Ikea has asked for. Urge City Council to give Ikea the zoning it needs.
On November 21, Councilman DiCicco introduced legislation changing the zoning of the South Philly property Ikea wants to build on. The popular furniture retailer had hoped to build a store not far from Home Depot in South Philly.But DiCicco only changed the zoning for half the property. A stand alone store is not what Ikea asked for: they planned for their store to be the anchor of a larger shopping center with stores such as Best Buy and Lowes. In essence the Councilman gave Ikea half a loaf, with the possibility of a full loaf if...
If what?
If the railroad that is selling the land to Ikea, CSX Corporation, gives certain land to the Philadelphia Port. Apparently the Port was rebuffed when it asked CSX to sell it the land. If the Port gets the land it wants, DiCicco says he'll rezone the entire parcel for Ikea.
What does this fight between the Port and CSX have to do with Ikea? Nothing, but the Councilman wants leverage over CSX, and Ikea makes a handy lever.
If the Ikea site is rezoned, CSX's property would increase in value from $6 Million to $25 Million. DiCicco argues that the Port needs room to expand and that if CSX is going to profit from selling prime port land it should give the Port something in return. He wants CSX to give the Port the Whiskey Yard, a 29 acre parcel next to the Trash Transfer station as well as Piers 122 and 124 in exchange for guarantees from the Port that it will not exercise its power of eminent domain to confiscate the Ikea site.
Urge City Council and our local representatives to bring the tax revenue and jobs to South Philly by giving Ikea the zoning it asked for. Ikea's store should not be held hostage just because CSX and the Port aren't getting along. Urge Council to change Ikea's zoning from industrial to commercial for the whole parcel.
Urge DiCicco not to play politics with our chance for the jobs, tax revenue and good, inexpensive furniture that an Ikea store would bring to Philly. Pat Smith, VP of Real Estate of Ikea has stated that the smaller DiCicco parcel 'stinks.' Having industrially zoned land around a commercial area doesn't make sense. The Councilman should amend his zoning bill to include the whole parcel Ikea asked for.
I thoroughly enjoyed the Philadelphia Inquirer Sunday Magazine article, "Swede Dreams." Joyce Gemperlein captured the Ikea persuasion. Too bad that it feels like an Ikea invasion to Sen. Vince Fumo and Councilman Frank DiCicco.
They utterly fail to grasp that a company with worldwide sales increases of 20% a year for the last five years is the port development that the mile high weed grown area west of Delaware Boulevard is looking for. Ikea is not angling for the adjacent land to the east of Delaware Boulevard, a shallow waterfront cocoa shipping pier. That port will continue to happily chug away as long as it can sustain itself.
Ikea needs the fallow area to the west of Delaware Boulevard, where no shipping company wants to go. Everything the port industry currently needs it is using. If Ikea's presence makes the Packer Avenue Marine Terminal CSX land too expensive for the Port Authority, then the Port Authority probably shouldn't own it. It would still have jurisdiction over the zoning and use without buying that parcel at fire sale prices. It can still protect and expand automotive shipping without owning the land.
The military uses of the closed Navy yard now provide more than excess capacity for wartime needs. Plus, the military will not dredge the Delaware to create deep sea vessel access.
Why all the smoke from Fumo and cheek from DiCicco? Why all the secrecy from the Port Authority? Who benefits from this rusty vision?
What a great vote making machine it is to merely insinuate that the ports can be what they once were. But if the North Delaware River ports can penetrate business activity to the core of South Philly, then why haven't they? In years?
Look at the Kvaerner boondoggle. Let's ask ourselves if those great union jobs of lifetime employment at high wages with a high school education are ever coming back in full force to the North Delaware waterfront.
We need self-sustaining companies in South Philly, not more vote-getting pork like the over-$400 million paid by taxpayers to Kvaerner for three ships, a quick exit, and another empty building.
It is dishonest of DiCicco to introduce "poison pill" zoning legislation that Ikea must reject because it zones a parcel much too small for Ikea's marketing strategy.
It is reprehensible that Fumo would oppose Ikea to spite Mayor Street because the developer that Ikea agreed to is a Street contributor and not a Fumo contributor. When is it OK to work together for the common good? Ever?
For a while it looked like Ikea would be yet another victim of Philly politics, but Councilman Frank DiCicco announced yesterday that he had a counterproposal for the Swedish retailer. Read DiCicco's press release.
Ikea had asked that the zoning be changed on its 44 acre site, something only the Councilman, whose district includes the Ikea site, could do. Today DiCicco offered Ikea half a loaf and according to news reports Ikea has not dismissed the Councilman's offer out of hand. DiCicco's legislation would change the zoning for 22 acres, enough for an Ikea store, but not enough for the shopping center planned by Kenneth Goldenberg.
For a while it looked like Ikea would founder on the rocky shoals of Philly politics, but Councilman Frank DiCicco announced this afternoon that he and the Swedish retailer had hammered out a deal. Ikea had needed the zoning changed, something only the Councilman, whose district includes the Ikea site, could do. DiCicco will introduce the legislation needed by Ikea tomorrow, November 21. Read DiCicco's press release. Although DiCicco was not an early supporter of the project, the bottom line is he did ultimately support a store that will employ hundreds, attract thousands, and earn millions for City tax coffers.
Please take five minutes to thank elected officals for doing what it took to make Ikea happen.
Thanks!
Lisa Parsley ljlong@earthlink.net
Ed Goppelt webmaster@hallwatch.org
To us it seems a no brainer. Ikea wants to locate a store here in Philadelphia. 1,000 jobs will be created, including 500 high paying construction jobs. People will be able to to buy good quality, low cost furniture here in the City, rather than schlepping out to the 'burbs.
So you would think our elected officials would jump at the chance to bring a major retailer to Philadelphia?
Wrong.
In order for a major project like Ikea to succeed, all concerned elected officials must support the deal. In Ikea's case, there are three elected officials whose districts include the area where Ikea wants to locate. Two are actively opposing the deal while the third is sitting on the fence.
| Official | Office | Position on Ikea |
|---|---|---|
| Frank DiCicco | Councilman for South Philly | Unknown |
| Vince Fumo | State Senator for South Philly | Opposes |
| Bill Keller | State Representative | Opposes |
Of these officials, Councilman Frank DiCicco is the most important. Ikea needs to have the zoning changed if they're going to build here. Because of Philadelphia's tradition of "Councilmanic courtesy" only DiCicco can do that. If he doesn't support the Ikea deal, it won't happen. It's that simple.
Ikea has given the City an ultimatum: pass the necessary zoning changes by December 19 or we're going to Jersey. This means DiCicco must introduce the necessary legislation by December 4. Any later than this and Ikea moves to New Jersey.
From the point of view of a business there are many reasons not to locate in Philly: high taxes, lots of red tape and unions among them. Ikea wants to build a huge store that will serve the entire tri-state region. So why on earth would they want to locate here? Philly, it turns out, holds one trump card: easy access to multiple Interstate highways. In otherwords we're a transportation hub!
To accomodate the hordes of shoppers it expects, Ikea wants to locate its store next to two major interstate highways. If you look at a map there are only two places where this is possible in Philadelphia: at the intersection of I-95 and I-676 and a little further south of I-95 and I-76. Ikea says the first location, by the old Incinerator, is too small for its needs. Which leaves only one location in South Philly that meets Ikea's needs: the old CSX rail yard near the Walt Whitman Bridge and I-95 and I-76.
DiCicco hasn't said yet where he stands on Ikea. To date all he will say publicly is that he is "working on it." Sen. Fumo and Rep. Keller say the the abandoned CSX freight yard *might* be used down the road for the Port. They apparently think it's better for the freight yard to remain empty rather than have an Ikea, Best Buy and Lowes occupy the space.
While our officials give Ikea the cold shoulder, Cherry Hill officials are rolling out the red carpet. Philadelphia will never move forward if our elected officials drive away businesses like Ikea.
Please take five minutes to tell your elected officals not blow this opportunity for jobs, shopping and prestige for our City.
Thanks!
Lisa Parsley ljlong@earthlink.net
Ed Goppelt webmaster@hallwatch.org