Penn reaction to a proposal that proponents think will continue improvement of the neighborhood is largely positive.
University City District -- an organization funded in large part by Penn that seeks to better the area -- wants to gain the status of Neighborhood Improvement District, which, if the City Council approves and a majority of residents don't object, will give UCD the power to essentially tax some residents and groups.
The change would let the organization clean up the area around Penn to make it more attractive to both potential residents and students, former University President Sheldon Hackney said.
Dennis Culhane, a Penn Social Welfare Policy professor, said he has noticed UCD's efforts to clean up streets and improve security.
"I favor the assessment," Culhane said. "Property values have soared, rents are higher, and businesses are healthier than ever."
He added that gaining status as a Neighborhood Improvement District would be a way to let local landlords contribute more to the growth of the area.
"Landlords and businesses have benefited from improvements undertaken by UCD's institutional sponsors, such as Penn, Drexel [and the] Science Center," Culhane said. "Its time to give back and broaden the benefits."
Eric Orts, a Penn Legal Studies professor, said the proposal's passage would necessitate changes in the organization's makeup, adding that representation in UCD may be imperfect.
"If the landlords and businesses are paying, then I think they should also have some representation in determining how the funds are spent for the overall benefit of the community," Orts said.
UCD Executive Director Lewis Wendell said UCD wants to expand the organization's services but faces a funding issue, as UCD does not hold any assets and most of its money comes from the institutions and colleges that contribute to the organization.
Wendell emphasized that despite the University's support, the Neighborhood Improvement District is not Penn's proposal and his organization is independent.
The Neighborhood Improvement District would let officials exact a 12 percent assessment of real estate taxes for businesses and owners of four or more units of property.
Omar Blaik, the senior vice president of Penn's Facilities and Real Estate Services and chairman of UCD, has few doubts that the proposed changes will be beneficial for both the University and the community.
"It will only enhance the neighborhood and enhance Penn," he said. "We've learned that we cannot be a leading institution in research and education while the neighborhood around us has problems."
