News Briefs Archive April 3, 2023

General News

City of Philadelphia working through law firm to discover unpaid business income taxes
Realtors and real estate brokers across southeastern Pennsylvania have begun receiving notices from the law firm Goehring, Rutter & Boehm (GRB Law) announcing they are working on behalf of the City of Philadelphia “to discover businesses that are not filing Business Income & Receipts Tax (BIRT) returns and may owe taxes.” Suburban Realtors Alliance staff have verified through Philadelphia’s Department of Revenue that GRB and other collection agencies are indeed contracted by the city, and are working to verify whether outstanding BIRT is owed by real estate professionals who have transacted property in Philadelphia. To learn more about the BIRT, visit the Business Taxes page of the city’s website

Suburban Philadelphia is one of nation’s most competitive rental markets, report says
A new report from RentCafe ranks the suburban Philadelphia area rental market as the 15th most competitive large rental market in the nation due to high demand and limited supply. RentCafe defines the suburban Philadelphia rental market as: Bucks, Chester, Delaware, Montgomery and Berks counties in Pennsylvania; Cecil County in Maryland; Kent and New Castle counties in Delaware; and Burlington, Camden, Gloucester, Salem, Cumberland, Atlantic and Cape May counties in New Jersey. RentCafe assigned suburban Philadelphia a “rental competitivity index” (RCI) of 85, based on metrics that include: apartment occupancy rate; average total days vacant; prospective renters per vacant unit; renewal lease rate; and share of new apartments completed during the same timeframe compared to the existing overall supply at the start of the fourth quarter of 2022. The national RCI score at the start of 2023 is 60, which is considered a moderately competitive market. Two other Pennsylvania markets made the top 20 nationally in RCI: Greater Harrisburg with a score of 111, and Pittsburgh with a score of 80. Overall, eight of the nation’s 20 most competitive large-markets for renting are in the Northeast. Small rental markets were also ranked, and the Allentown-Bethlehem area in Pennsylvania emerged as the third-most competitive small market at the start of 2023, with an RCI score of 124.
Source: CPBJ; 3/21/2023

City expert predicts the future of commercial real estate
Greg Lindsay, an expert on the future of cities, talked with 2022 Pennsylvania Association of Realtors (PAR) president Chris Beadling about nomad cities, mixed use properties, the everywhere office, technology and mobility in a PAR webinar. Beadling asked Lindsey about the biggest changes commercial real estate has seen since the start of the coronavirus pandemic. “Obviously, we’re seeing the normalization of hybrid work,” Lindsey said. “It’s really interesting watching the evolution of remote work. There’s a set of data showing, for example, that people are slowly returning to the office.” Lindsey thinks small cities will benefit the most from COVID-19 changes. He said that most people prize smaller, walkable cities that have an urban feel and character to them, but don’t have the downsides that come with city living. He noted that as millennials age they are looking for places to raise their children, leading them to places like Harrisburg and Pittsburgh, though he did point out that he thinks “Philly is the most underrated city in America” when it comes to cost of living versus amenities.
Source: PARJustListed; 3/29/2023

PennDOT posts transportation survey
PennDOT is conducting a survey and encouraging the public to share opinions, interests and concerns about transportation, particularly what is needed in local communities. Public input is an important part of PennDot’s 12-year transportation program update process, and it is also used to inform other state and regional transportation plans and programs, such as Pennsylvania’s long-range transportation plan.
Source: PennDOT

Bucks County

Lower Makefield looks at options to remedy structural deficit
Lower Makefield Township officials are looking at a variety of ways to address a structural budget deficit. Although the township is in a strong cash position with many millions of dollars from the sale of its sewer system, among other cash infusions, its expenses exceed revenues from regular recurring sources like property taxes. Supervisors Chairman Fredric Weiss said “everything is on the table at this point.” Possible remedies listed on a board of supervisors’ agenda earlier this month included a home rule charter, special purpose real estate taxes, a local earned income tax, and expense/service reductions. Weiss said a special meeting will likely be held soon. Watch the Lower Makefield Township website for upcoming agendas.
Source: Bucks County Herald; 3/21/2023

Bensalem approves hotel at Parx Casino complex
Bensalem Township Council recently approved plans for the Parx Casino Hotel to be built at the casino complex on Street Road. The 13-story hotel will include a restaurant on the top floor, a coffee shop, a spa, a fitness center, and a convention center/banquet hall that will have a maximum capacity of 800 people. The hotel is a multimillion-dollar project that will bring new jobs to the area, according to Mike Meginniss, legal counsel for the project.
Source: Lower Bucks Times; 3/27/2023

Watch: Webinar covers U&O issues in Bucks
The Bucks County Association of Realtors (BCAR) hosted a webinar on Use & Occupancy Tips for Bucks County Realtors on March 29. The webinar was hosted by Suburban Realtors Alliance (SRA) president/CEO Jamie Ridge and SRA board chair Maryellen O’Brien. The 40-minute virtual meeting reviewed SRA services, trends in municipal U&O permit processes, and best practices during resale inspections. Watch a recording of the webinar on Youtube. Access to SRA services is a member benefit for all BCAR members, and includes use of the municipal database, weekly news briefs and advocacy services.

April 14 court date set for competing Central Bucks School Board voting maps
The two competing petitions to redistrict the electoral regions of the Central Bucks School District will get their day in court, as President Judge Wallace H. Bateman Jr. of the Court of Common Pleas of Bucks County issued an order to schedule a hearing for Friday, April 14. The hearing was originally scheduled for Feb. 9 but canceled due to a full bench recusal of the Bucks County Court. The full recusal eliminated the possibility for either map to be selected for use in the 2023 election. The school district is currently divided into nine regions that are to be equally populated based upon census data. Every four years voters cast a ballot for a candidate running to represent their region for a four-year term, however not all nine seats on the board are up for election at the same time. The school board’s voting map proposal reapportioned electors through a redraw of the nine regions. If it had been adopted, the redraw would have kept thousands of voters from casting a vote for director until 2025. The proposed map from CBSD Fair Votes creates three regions and provides three school board directors to represent each region, and would provide voters an opportunity to vote every other year for a candidate to represent their region on the school board. The hearing will be before Montgomery County Court of Common Pleas Senior Judge Cheryl Lynne Austin at 9:30 a.m. on April 14 in Courtroom 410 of the Bucks County Justice Center, located at 100 N. Main St. in Doylestown.
Source: Bucks County Beacon; 3/14/2023

Central Bucks legal fees estimated to reach $1 million
Central Bucks School District recently revealed details of the price tag for the Duane Morris law firm, the district’s legal counsel hired to defend against allegations of discrimination toward LGBTQ students. The district’s chief of operations, Tara Houser, revealed the district is estimated to amass at least $1 million in legal fees — much more than the $250,000 reported last week. Central Bucks hired the firm to represent the district in connection with the ACLU of Pennsylvania’s federal complaint alleging the district created a “hostile environment” for LGBTQ students. The U.S. Department of Education is investigating the district. The firm is also conducting an internal probe into the allegations within the ACLU complaint and two other complaints that were filed with the U.S. Department of Education’s Office of Civil Rights, according to its letter of agreement to the district dated Nov. 1. Read more here.
Source: WHYY; 3/23/2023

Middletown zoning hearing board approves apartment complex expansion
The Middletown Township Zoning Hearing Board recently approved an expansion of the Orchard Square Apartments at 1801 Old Lincoln Highway, near Neshaminy High School. Under the approval, the project must include year-round buffers between the complex and neighboring Fairhill and Granite roads. The project will consist of five two-story buildings with a 4,851-square-foot clubhouse and swimming pool for the use of tenants attached to one of the structures. The proposed complex addition includes a total of 36 one-bedroom units, 28 units with two bedrooms and eight units with three bedrooms, leaving the full complex at 76 units with one bedroom, 72 with two bedrooms and eight with three bedrooms. Final approval by the township supervisors is necessary before construction can begin.
Source: Bucks County Herald; 3/23/2023 & The Reporter; 3/28/2023

Chester County

West Chester apartments and retail planned at former Burger King property
Plans were submitted to West Chester Borough to build 125 apartments, 9,200 square feet of retail space, and 170 parking spots on a 1.3-acre lot at 410 S. High St. Property owners Gary D. Saluti and Suzanne Dunphy, along with equity owner High Street 410, plan to construct up to three stories of living units for a 145,460-square-foot multi-use building. The former Burger King building measures about 4,900 square feet. A below-ground garage will hold 114 vehicles, and 31 cars will be housed on the ground level, with 25 bonus spots leased to residents requiring more than one parking space. No renderings of the building’s design have been submitted yet. The borough planning commission viewed the preliminary plans and will decide whether or not to recommend the project to council members to vote for or against preliminary approval at the June 20 council meeting. Council might then vote on whether to give final approval at the September meeting. Borough ordinances would not allow students to live in the planned apartments. The living units would be offered at market rates.
Source: Daily Local; 3/22/2023

‘Jumpstart’ Coatesville launches to support aspiring developers
Jumpstart Coatesville is a community development program that will train, mentor and help provide funding to aspiring real estate developers in the City of Coatesville. The program focuses on removing blight through scatter site rehabilitation, and creating a mix of affordable, workforce and market-rate housing while avoiding gentrification through steady growth and keeping wealth local. Jumpstart aims to create opportunities for local residents to invest in the revitalization of their own neighborhoods. The investments will create safer neighborhoods and raise property values through blight reduction. Jumpstart will also help first-time investors become more attractive to lenders, which will help increase diversity and change the face of real estate development. In 2017 the median sold price of a residential property in Coatesville was $76,000. In 2021 the median sale price jumped to over $110,000 — nearly a 50% increase. Property values were predicted to increase by another 11% in 2022. Jumpstart Coatesville will encourage city residents to take advantage of a pivotal point in Coatesville’s revitalization through real estate investment and development training.
Source: Daily Local; 3/22/2023

Oxford Borough receives grants for stormwater, transportation improvements
Oxford Borough recently received several grants, including a $105,104 Chesco Chesapeake Communities Action Plan (C3AP) grant to support the borough’s stormwater best management plan projects. The C3AP outlines methods to reduce nutrients and sediment to improve the water quality of local streams and to reduce pollution entering the Chesapeake Bay. Through a partnership with the Community of Love Lutheran Church, the borough will implement a bio-retention wetland project on church property. The borough is also receiving a $150,000 Multimodal Transportation Fund grant through the Pennsylvania Department of Community and Economic Development to support road and streetscape improvements along Mount Vernon Street. The project will also include the replacement of underground water lines and construction of a rain garden and traffic-calming bump-outs. The bump-outs will improve stormwater conveyance and help the borough meet its MS4 pollutant reduction requirements. 
Source: Chester County Press; 3/28/2023

Kennett Collaborative announces new ‘collaborator’ program
Kennett Collaborative’s new “collaborator” program launched on March 5 to coincide with the nonprofit’s 37th anniversary. Anyone can become a 2023 collaborator with a donation of $150 or more, and enjoy benefits like discounts at participating Kennett businesses, early access to ticket sales for Brewfest, Winterfest and Summerfest, and monthly collaborator emails with “first to know” updates from around town.
Source: Chester County Press; 3/28/2023

Willistown’s historic Kirkwood Farm sold to M. Night Shyamalan
A 218-acre estate in bucolic Willistown has been sold to film writer-director M. Night Shyamalan, who lives in the township. Local conservationists are hopeful about reports that the new owner intends to preserve the farm as open space. “We are really excited about the prospect of this land not going to a developer,” said Kate Etherington, president of the Willistown Conservation Trust. Etherington said the next step in preserving the land would be a conservation easement. Kirkwood Farm, located on Providence Road, south of White Horse Village, has pastures, old-growth trees, hills and a stream. The residences, some of which are fieldstone, were built in the 18th and 19th centuries. The property was sold to Shyamalan by descendants of oil magnate William Rockefeller Jr. for $24 million on March 16, according to records.
Source: Daily Local; 3/24/2023 & Malvern Patch; 3/29/2023

Has your Chester County buyer received notice of a reassessment?
Has your buyer received notice of a county reassessment after purchasing a property? If so, the Suburban Realtors Alliance would like to hear from you at sra@suburbanrealtorsalliance.com, as we try to understand the criteria and methods Chester County uses to determine which properties require a new assessment. The Alliance has engaged in discussions with county officials on the topic previously. In 2021, we reported that the Chester County assessment office observed a significant increase in purchases by LLCs that make improvements to properties and sell them, all without filing requisite permit applications with local municipalities. The assessment office now reviews all property transfers for LLCs, and in some cases the assessments for properties are being adjusted accordingly. Recently, however, we have heard reports of reassessments of homes in which no LLCs were involved. One common thread with the latest reassessments is that the county is using MLS photos to determine whether improvements have been made to the property. If a newly finished basement, addition, or remodeled kitchen or bathroom is seen in the photos, the county conducts a reassessment of the property.

Delaware County

Haverford School District votes to buy 9-acre property for $4.3 million
Haverford School Board members unanimously agreed to purchase a 9-acre residential property at 201 Highland Lane near Coopertown Elementary School. Officials negotiated with the property owner for a purchase price of $4.3 million. The property is separated from Coopertown Elementary by Haverford Township’s Highland Park Farm. The property was originally listed for $5 million when it went on the market in June, and the land acquisition had been previously discussed in closed executive sessions. The property is zoned residential by the township. Officials did not specify what they might envision on the property beyond giving the district flexibility for future needs. The property has a house, and a pool with a guest house that is listed on the Delaware County historic register. The district has 90 days to do due diligence on the property. Township Commissioner Laura Cavender, who represents the neighborhood that surrounds most of the property, said building a school at that location could be a lengthy process. She noted that residents will have a chance to give their input on the future of the property.
Source: Daily Times; 3/25/2023

Fenimore Woods upgrades under review in Radnor
Radnor Township commissioners are reviewing renovation options for the 11.5-acre Fenimore Woods Park, located at Paul and Eagle roads. The commissioners tabled action on hiring a contractor for professional services until further review. A total of $1.67 million is available in bond money for the project. The park has a 2.2-acre pond, a creek, a pavilion and a playground, and is named after Francis Fenimore, one of the largest landowners of Wayne's early days. Tammy Cohen, director of recreation and community programming, said the project has been discussed for years. The options included renovating the horse stables, providing new bathrooms, replacing the pavilion, paving parking areas, adding new playground equipment, installing a new guard rail on Paul Road, and adding ADA parking spaces.
Source: Radnor Patch; 3/28/2023

Swarthmore eliminates parklet fee for businesses
Swarthmore Borough Council had a discussion relating to parklets — which allow businesses to add dining and outdoor seating options — in the Town Center during certain months of the year. Council agreed businesses could have the week starting Jan. 1 annually to dismantle their parklets for the season. Parklets may be utilized from March 6 through Jan. 6, 2024. The parklets may not exceed 30 feet in length. A proposed annual fee of $960 — which was previously $250 — was scuttled in favor of a reduction in the fee to $0 via resolution.
Source: The Swarthmorean; 3/10/2023

Delco launches ‘Parks and Trails Explorer
Delaware County residents and visitors can explore county-owned parks and trails through the Delco Parks & Trails Explorer. The interactive viewer allows users to find amenities like gazebos, picnic areas and restrooms within each park. It is a newer feature offered through Delaware County’s Data and Mapping Innovation Hub.

Montgomery County

Towamencin proposed Home Rule Charter heads to ballot in May primary
Towamencin’s Government Study Commission (GSC) unanimously voted to approve a Home Rule Charter draft and approve the home rule charter ballot question that will appear on the May 16 ballot. Insisting their efforts are primarily to stop the multimillion dollar sale of the Towamencin Township Sanitary Sewer system, the GSC used three months out of the state-recommended 18 months to investigate the township code and develop a home rule charter draft. If the home rule charter is approved, it will go into effect on July 1. The GSC has met bimonthly since January to discuss the home rule charter but did not have any workshop meetings with residents to develop the major change to the township’s form of government. A town hall session is set for April to continue the discussion of the charter. Read more at North Penn Now.
Source: North Penn Now; 3/7/2023

Lower Merion School District delays school start time change until 2024
Lower Merion School District officials have studied and analyzed later start times for high school students for at least 10 years. Although many community members in attendance at a recent school board meeting wanted the change to take effect this fall, the school board voted 7-2 to approve a motion to implement a modified version of the proposed schedule in September 2024. The original proposal would have had the middle school day begin at 8 a.m. and let out at 2:50 p.m. The high schools would then go from 8:40 a.m. to 3:30 p.m., and elementary schools would go from 9:20 a.m. to 4:05 p.m. Parents said that would create child-care problems and interfere with after-school activities, while teachers warned of waning attention spans among younger children and said educators unhappy with the changes might leave. Due to the pushback, particularly against the elementary school proposals, the board put forward some modifications, such as ending elementary school at 3:50 p.m. and providing before-school childcare support for elementary students and their families, among other items, to ensure no school ends after 4 p.m. Acting Superintendent Megan Shafer said the administration would update the board and community on their work to incorporate these modifications into a final plan for the September 2024 change. The board expects to vote on its final plan later this year.
Source: Main Line Media News; 3/17/2023 & Inquirer; 3/21/2023

Towamencin posts sewer sale update
The firm that was set to purchase Towamencin’s sewer system, NextEra, informed the township in early March that it intended to assign its contractual rights and obligations for the purchase to Pennsylvania American Water. NextEra cited a business decision to focus on renewable energy projects. Towamencin supervisors approved the assignment and adopted the Sewer Sale Ordinance Amendment at their March 22 meeting. Towamencin has posted a sewer sale update with information about Pennsylvania American Water as well as supporting data and an analysis of township real estate taxes with the sale and without the sale.
Source: Towamencin Township; 3/23/2023

Rally for affordable housing planned for April 1 in Norristown
Housing advocates, elected officials and Montgomery County residents will assemble in Norristown on Saturday, April 1, to rally around the need for more affordable housing in the county. Hosted by the Montco 30% Project, the event will take place from 1 to 2 p.m. on the steps of the Montgomery County Courthouse. The Montco 30% Project was established in February, following a Pennsylvania Department of Community and Economic Development-run public meeting concerning federal funding available to Bridgeport and Norristown for disaster relief related to the remnants of Hurricane Ida. Cofounders Mike Hays and Deborah Brown stressed the need to find ways to support those trying to find affordable housing options. Organizers set a rain date for April 29 in the event of inclement weather.
Source: Main Line Media News; 3/28/2023

Jenkintown discusses short-term rentals
The March 21 meeting agenda for the Jenkintown Borough Planning Commission includes discussion of possibly regulating short-term rentals like Airbnbs. The next planning commission meeting is Tuesday, April 18. The meeting agenda will be posted on the borough website prior to the meeting.
Source: Jenkintown Borough; 3/21/2023

Philadelphia

Philly’s homestead exemption has ‘outsized’ impact on tax burden for residents
The effective tax rate for Philadelphia renters with the lowest income is roughly five times higher than it is for Philadelphia homeowners with the lowest income, according to new research from the Pew Charitable Trusts. The study found the tax burden for non-subsidized renters is 12.8%, while the tax burden for homeowners with the lowest income is 2.5% — if they are enrolled in the city’s Homestead Exemption program. The popular incentive reduces the taxable portion of a homeowner’s property assessment by $80,000, an amount that exceeds the value of some houses. “The city’s tax system is now somewhat progressive for owners and largely regressive for renters,” said Thomas Ginsberg, senior officer at Pew’s Philadelphia research and policy initiative. “That is, the tax burden goes up as your income goes down for the renters and the opposite way for the owners.”
Source: PlanPhilly; 3/22/2023

Chinatown Stitch survey gauges sentiment on capping Vine Street Expressway
The Vine Street Expressway has long divided Chinatown. The City of Philadelphia is conducting a survey to find out what residents think about building a cap on top of the Vine Street Expressway. A cap is a platform on top of a highway that creates new space for parks, businesses or housing. The Chinatown Stitch project would help reconnect Chinatown. Visit the city’s Chinatown Stitch project page for more information and updates.
Source: City of Philadelphia

Eastwick United launches grant program to fill another gap in Isaias recovery
More than two years after a flood devastated the low-lying Eastwick neighborhood in South Philadelphia, a community organization is distributing funding for lingering repairs. The new grant program is funded by the City of Philadelphia’s Office of Sustainability and administered by Eastwick United, a community development organization that has been organizing flood recovery efforts and long-term solutions to flooding in the neighborhood. Qualifying residents will receive up to $7,500 to repair damage caused by Tropical Storm Isaias, which brought power outages and a tornado in 2020, flooding homes and forcing some residents to flee by boat. The neighborhood is considered an environmental justice community, with homes built in a floodplain and atop sinking soil during a botched urban renewal project. Eastwick, a majority Black, working- to middle-class neighborhood, has faced repeated flooding along with a number of other environmental hazards. Despite the state documenting roughly four times more residential buildings in Philadelphia damaged by Isaias than by the remnants of Hurricane Ida the following year, FEMA failed to declare a federal disaster in Pennsylvania. The agency did declare a disaster after Ida in 2021, which caused more damage statewide, unlocking roughly $88 million in assistance to Philly households. Since then, a coalition of neighborhood organizations, disaster relief groups, and local government agencies launched an effort called the Eastwick Unmet Needs Roundtable to provide HVAC systems, organize volunteer labor to replace moldy drywall and make other repairs, and pay licensed contractors to repair plumbing or perform other specialized work in homes damaged by Isaias.
Source: PlanPhilly; 3/23/2023

Philly water customers are concerned about proposed rate hike
Some Philadelphia water customers already struggle to pay their bills, residents told the city’s Water Rate Board in a virtual hearing. But the Philadelphia Water Department wants to raise them further, with a proposed rate increase of over 21% for many residential customers by the fall of 2024. The rate increase would go into effect over two years, with an increase of close to 12% starting Sept. 1, 2023, and an additional increase of around 8% starting Sept. 1, 2024, for the typical residential customer. The average residential customer’s monthly water bill — now around $69 — would ultimately rise to $84 under the proposal. The rate increase would produce more than $80 million in revenue the first year and an additional $63 million the second year for the city-owned utility. The water department says the increase is necessary to pay for increasing costs of labor, supplies, maintenance, improvements and debt service, due in part to inflation. Without the rate increase, the utility says it would not be able to upgrade its water and wastewater treatment plants and replace aging water mains. Officials emphasize the utility does not make a profit. Philadelphia residents testified in the first of four public hearings that the proposed rate increases would burden already cash-strapped families.
Source: PlanPhilly; 3/23/2023

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