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For over a year now, a quiet but heated dispute has been taking place literally on the periphery of campus: On one side, Penn and its partners are trying to clear the way for a hotel development at 40th and Pine streets; on the other, a committed group of neighborhood activists are saying "not in our backyard."

The project, which is currently expected to cost $40 million, will include renovations to an existing historical structure on the property and the construction of an 11-story extended-stay hotel with 115 units plus commercial space for a restaurant. The units will be marketed to friends and family members visiting patients at nearby medical facilities.

But residents in the area are up in arms over the plans. The proposed hotel's tall-and-narrow design is, well, ugly, and will seem out of place in a residential neighborhood. And the lack of a planned parking lot for the hotel residents worries many nearby homeowners, who fear their current parking arrangements will be taken over by the guests.

In meetings of the Spruce Hill Community Association, the Philadelphia City Planning Commission, the Philadelphia Historical Commission and the Zone Board of Adjustment (and their various committees), the would-be hotel's neighbors have fiercely opposed the development process every step of the way.

But, for all its flaws, the project offers numerous benefits.

Beyond adding about 250 temporary jobs and 40 permanent staff to the area - jobs desperately needed in today's economy - the hotel will further develop the expansive vision of a flourishing 40th Street "corridor" first conceptualized by former University President Judith Rodin.

She believed that a lively 40th Street could serve as a "seam," stitching together Penn's campus with the West Philadelphia community. Anthony Sorrentino, spokesman for the executive vice president's office, wrote in an e-mail that the development has "rebranded the area as a place where the Penn community and the residential community can come together."

Last year, when a high-end Jose Garces restaurant was announced at the Hub, next to a pet fish store and a block away from Crown Fried Chicken, many of us were bewildered. But in that and the opening of the Radian, we've witnessed a rapid improvement in the quality of living on the west end of campus.

Along with the expansion of the Hub (with creatively named Hub II and Hub 3939), the hotel is an integral part of 40th Street's next phase of development past the Spruce-Walnut blocks.

The hotel could help to attract further business development in the area. If it proves to be a hub of activity, we will see even more new restaurants and stores open up over the next several years. Rodin's revitalization efforts can finally be fully realized.

For students, the hotel could lead to an increase in safety in the area. The University's real-estate-related efforts have played a pivotal, though often unrecognized, role in dramatically reducing crime within Penn's patrol zone. With the business development in the area has come increasing foot traffic that makes crimes more difficult to commit.

Sorrentino added that "ten years ago 40th Street was a violent, dark and vacant corridor, but today it is a lively mix of shopping, dining, open space and apartments not only becoming a hotspot for Penn students but for nearby residents as well."

Finally, let's keep in mind that Penn not only has the right to use its own property as it sees fit but also all the incentives to make sure the project proves to be a success.

While it might be tempting to sympathize with the neighborhood residents, this isn't exactly a David-and-Goliath story. Penn finds itself at odds with a fairly affluent West Philadelphia enclave. And they've hired David Fineman, an accomplished Philadelphia lawyer with ties to Governor Ed Rendell, to advance their case.

In their efforts to paint the University as hostile and unwelcome, there's been quite a bit of name-calling and various accusations of conspiracy.

It's clear they've lost sight of the highly symbiotic relationship Penn's campus shares with its neighbors. That this dispute hasn't already been resolved amicably in some way is incredibly unfortunate. Let's hope reason will prevail over rashness.

David Lei is a Wharton junior from Brooklyn, N.Y. He is the former Executive Editor of The Daily Pennsylvanian. The Lei-bertarian appears on Mondays. His email address is lei@dailypennsylvanian.com.

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