A community group continues to push for a competitive-bidding process if land occupied by a local boy Scouts of America council is to be sold, even though the city solicitor says the property can only be sold to the Scouts.
Philadelphians Against Subsidized Discrimination opposes the sale of 231-251 N. 22nd St. to the BSA Cradle of Liberty Council for $500,000.
Members of PASD say $500,000 for the Beaux Arts building and one-half acre of land is far below market value — and amounts to subsidized discrimination they maintain, because the Scouts intend to continue discriminating against gays and atheists once they purchase the property.
Instead, PASD members want competitive bids to ensure the highest return for the city — bidding open to the Scouts.
City officials want the building sold to the Scouts to end a lawsuit, and to ensure the Scouts stop seeking about $960,000 in legal fees from the city.
Scouts spokesperson Kera Walter declined to comment on whether the Scouts would oppose an open-bidding process.
Last month, City Solicitor Shelley Smith said the property is unavailable for sale because of an “agreement in principle” entitling the Scouts as the sole purchaser.
R. Duane Perry, a PASD member, questioned whether a legally binding agreement actually exists, noting that no one has produced such a document.
The Philadelphia Home Rule Charter requires that city-owned property sold by the city’s Department of Public Property be open to competitive bidding.
But Smith stated in published reports that the sale would be handled by the Philadelphia Industrial Development Corporation, a quasi-city agency that doesn’t require competitive bidding.
Perry questioned why PIDC would facilitate the process, since he’s not aware of any industrial development that the land sale would produce for the city.
“Apparently, the city is trying to suggest that this is an economic-development deal, but I would ask the question, Where are the jobs?” Perry posed.
Paul J. Deegan, a spokesperson for PIDC, said the agency focuses on job creation and economic development.
Without commenting specifically on the Scouts’ deal, Deegan said PIDC often sells property on behalf of the city.
“When the city has surplus properties, they can utilize PIDC to facilitate the sale,” he said. “After approval by City Council, the title of the property would go from the city to the Philadelphia Authority for Industrial Development to the designated buyer.”
The Scouts won’t permit openly gay participants, nor will they pay fair-market rent, so the city tried to evict them in 2008.
In June 2010, a federal jury rejected the Scouts’ claims of viewpoint-discrimination and equal-protection violations, but ruled the city imposed an “unconstitutional condition” when trying to evict the Scouts.
After the mixed verdict, the judge said the city could proceed with an eviction, as long as it was in a constitutional manner.
PASD members are urging City Council — which must approve any sale of the building — to require competitive bids.
“That’s what we’re encouraging City Council to require,” Perry continued. “But we’re also encouraging Mayor Nutter to take an appeal [of the verdict]. Legal experts agree that this is a very winnable case.”
Nutter couldn’t be reached for comment.
Last month, City Councilman Darrell L. Clarke introduced legislation enabling sale of the property, with two additional conditions: that the Scouts remain in the building for at least 10 years, and that they make the building available to community groups.
In its current format, Clarke’s bill doesn’t contain a provision for competitive bidding. At press time, Clarke’s legislative aide, Will Carter, had no comment on whether Clarke would amend the bill to allow for an open-bidding process.
Last month, Mel Heifetz, a gay real-estate investor, placed a $1.5-million bid on the property with the city Department of Public Property. He also submitted a $10,000 deposit for the property.
Undaunted by the city solicitor’s position that other bids cannot be accepted, his legal team sent a two-page letter to Smith on Dec. 29, asking questions about the “agreement in principle” with the Scouts.
PGN submitted a Right-to-Know request for a copy of any sale agreement between the city and the Scouts.
The request was denied Jan. 4 by Divisional Deputy City Solicitor Christopher R. DiFusco on the basis that “no records exist which are responsive to the request.”
Clarke’s bill has been referred to City Council’s public-property committee, but a public hearing had not been scheduled at press time.
Tim Cwiek can be reached at [email protected].