October 17, 2024
Michaela Althouse/PhillyVoice
Protesters dressed as clowns spoke during the comment period of Thursday's council meeting on a proposed tax break for the developer of the former oil refinery site.
City council unanimously passed legislation Thursday extending a Keystone Opportunity Zone agreement for the former site of the Philadelphia Energy Solutions refinery.
After the explosion in 2019, Hilco Redevelopment Partners, now known as HRP Group, proposed an e-commerce, logistics and life sciences hub at the 1,300-acre property known as the Bellwether District. Designating the site as a KOZ exempts developers from a number of state and local taxes in "underdeveloped and underutilized areas." This bill grants a 10-year extension to the program, which is currently set to expire in 2033.
On June 21, 2019, a fire in the refinery's hydrofluoric acid unit caused an explosion and blaze that lasted for two days. The 150-year-old plant was closed. Earlier this month, the Environmental Protection Agency and PES reached a $4.2 million settlement — the largest for Clean Air Act violations in a single incident.
Redevelopment of the land in Southwest Philly will take up to 15 years and cost HRP Group $4 billion. The project broke ground in 2023 and construction on two new warehouses started earlier this year.
Protesters, who came to the meeting dressed as clowns, expressed concerns about the environmental impact of the project and a lack of a community benefit agreement with neighbors. Groups have been negotiating with the developer for an agreement since last year, but nothing has come to fruition.
Shawmar Pitts, a lifelong resident of Grays Ferry and co-director of advocacy group Philly Thrive, supports redevelopment but is concerned about the lack of community engagement in the project.
"We can't put the people second and in our society, the people normally come second," Pitts said during the meeting's public comment period. "In this situation, it is an example of the people coming second."
Others said the project will bring economic prosperity to the neighborhood. Lynette Sutton, the managing partner of Girl Concrete, will be the prime concrete provider for the project, which she said is the firm's largest contract.
"This opportunity has allowed us to build our capacity, grow our workforce and scale our needs," Sutton said. "HRP's, commitment to inclusive practices in construction is evident through their support of firms like ours, Girl Concrete. We are deeply committed to building a diverse and inclusive workforce pipeline, and HRP is a valuable partner in that endeavor."
Wayne Miller, the president of the Philadelphia Building Trades, also spoke in favor of the project and the legislation, saying it could create 20,000 jobs for union workers.
Council President Kenyatta Johnson (D-2nd), who introduced the bill, stood by the legislation. He noted HRP's work with the School District of Philadelphia and the Community College of Philadelphia, and he pointed to the developer's decision to shut down the oil tank farm as a sign of good faith.
"I hope [this legislation] shows the city of Philadelphia is open for business," Johnson said. "I hope other businesses and corporations say, 'Hey, you know what? Here's a city that's willing to incentivize the work that we are doing, and we want to come do business here.'"
Following the support of city council, the tax exemption still needs to be approved by the school district and the state Department of Community and Economic Development.
