DRPA funneled more than $13 million to groups, some with ties to board, The Inquirer has learned

The Delaware River Port Authority this year funneled more than $13 million through a Philadelphia economic-development corporation, ostensibly for "small, emerging, and new businesses."

In fact, most of the money went to well-established tourism groups or struggling nonprofits, some with close ties to DRPA board members. In one case, $500,000 went to a multibillion-dollar commercial real estate developer.

The Philadelphia Orchestra, public broadcaster WHYY, the Pro Cycling Tour, the Variety Club, the Independence Visitor Center, and other organizations have collected $13.3 million since February.

The funding was detailed in documents obtained by The Inquirer under the New Jersey Open Public Records Act.

The economic-development money from the DRPA was awarded through the Philadelphia Industrial Development Corp., a development lender created 52 years ago by the city and the Greater Philadelphia Chamber of Commerce. It's governed by a board appointed by the mayor and the president of the chamber.

Although the money was given to the PIDC, the decisions on how to spend it remained with the DRPA.

"What we do is simply follow their instructions," said PIDC president Peter S. Longstreth. "They send us documentation, we take it to our board . . . and it's approved there."

The DRPA - which gave the PIDC $7.6 million in 1994 and $6.5 million in 2001 - sent it $12.9 million last December. The money came from the authority's controversial economic-development funds.

DRPA intended the money to "support small, emerging, and new businesses and expansion or relocation projects that will improve the region's economic climate," it said in a resolution allocating the funds.

The recipient of the most DRPA money through the PIDC this year was Historic Philadelphia Inc., which operates such attractions as the Betsy Ross House, Franklin Square, and the Lights of Liberty. The group, whose board of directors includes DRPA board member and Philadelphia Councilman Frank DiCicco, got $2.75 million for staff salaries, fringe benefits, and show production costs.

Independence Visitor Center, the region's official tourist headquarters, got $1 million for operating expenses and building improvements. The chairman of the center's board is John Estey, the Philadelphia lawyer who also chairs the DRPA.

The Greater Philadelphia Tourism Marketing Corp., got $1.55 million for advertising, communications, website, and other marketing expenses. Its board includes Estey and fellow DRPA board member Robert W. Bogle, publisher of the Philadelphia Tribune.

The Variety Club of Philadelphia, an 83-year-old charity that runs the Sunshine Camp for special-needs children, got $500,000 for staff salaries to help bail it out of a deep financial hole. The club's president is John "Johnny Doc" Dougherty, a Philadelphia labor leader and a DRPA board member who has been an outspoken critic of DRPA spending practices.

Dougherty said he advocated for the Variety Club grant with Estey, who worked out the details with the charity's vice president.

"The PIDC grant enabled Variety's much-heralded summer camp to remain open this year, providing fun and camaraderie for hundreds of special-needs kids and a much-needed respite for their devoted parents," said a statement issued by Dougherty spokesman Frank Keel, who said Dougherty was "very proud of his long association with Variety."

Most of the DRPA's money comes from tolls on the Ben Franklin, Walt Whitman, Commodore Barry, and Betsy Ross Bridges. Last year, the agency collected $242.6 million in bridge tolls, 86 percent of its total revenue of $281.7 million.

Many commuters have long objected to the use of tolls for development projects, such as sports stadiums, museums, and concert halls.

In the last 12 years, the DRPA has spent about $500 million on regional economic development, contributing to a debt of $1.4 billion, which consumes about 40 percent of the agency's revenue.

DRPA officials repeatedly have said in the last two years that they were out of the economic-development business.

On Aug. 18, the board voted to end the practice of spending toll revenue on projects not directly related to operating the bridges and the PATCO commuter rail line.

That followed the DRPA's pledge in July 2008, during public hearings for bridge toll increases, to end its spending on such projects. Yet the next year, the board approved $76.3 million in economic-development spending, more than in any year since 2001.

Much of that was approved last December, when the DRPA board authorized $52.1 million in economic-development spending, including the $12.9 million for the PIDC.

While more than $50 million in economic-development money allocated by the DRPA board over the last three years remains unspent, all of the PIDC-awarded money is gone.

Among the other recipients:

WHYY Inc., the deficit-plagued broadcaster that operates public radio and television stations in Philadelphia, got $2 million in three installments for programming fees and other costs. William Marrazzo, the chief executive of WHYY who has been a lightning rod for criticism because of his $500,000 annual salary, is a member of the PIDC board of directors.

The Pennsylvania Heritage Society, a nonprofit that supports the state's official history agency, got $2 million to help pay for costs related to marking the 150th anniversary of the Civil War. That's in addition to a $1 million DRPA grant in 2009.

The Philadelphia Orchestra got $1 million to help pay musicians and staff.

The National Constitution Center got $500,000 for marketing, exhibitions, and keeping the museum open late.

Liberty Property Trust, whose developments include the Comcast Center and the Tasty Baking Co. at the Navy Yard, got $500,000 for development associated with the Tastykake factory. It was awarded as a no-interest loan for the first year and will be converted to a grant if the project is completed.

The American Revolution Center got $500,000 last month, in addition to $1 million in DRPA money received in 2007, to prepare a museum site at Third and Chestnut Streets.

Penn Warehousing & Distribution Inc., a longtime paper-products importer at the Port of Philadelphia, got a $250,000 grant for new machinery and equipment. The deal was tied to a new 2 million-square-foot warehouse built on the company's property by the Philadelphia Regional Port Authority, whose board is chaired by Estey.

The Center City District of Philadelphia, which cleans and landscapes Center City, got $250,000 for restoring the Sister Cities Plaza at Logan Square on the Benjamin Franklin Parkway.

The Pro Cycling Tour of Pennsylvania, which put on the Philadelphia International Cycling Championship, got $200,000 to help meet operating costs.

Community College of Philadelphia got $180,000 for employee costs.

The Veterans National Education Program, a Newtown Square organization that commemorates military experience, got $100,000 to pay for programming.

The issue of the DRPA's use of tolls for continued economic-development spending is likely to be on the agenda at its board meeting Wednesday.

Pennsylvania Auditor General Jack Wagner, a DRPA board member, has called for a freeze on economic-development spending.

He wrote to Estey, asking for an accounting of unspent economic-development funds "so this issue can be addressed" Wednesday.

To increase public attendance at the session, the board is meeting at 6:30 p.m. at the Camden County Boathouse, 7050 N. Park Dr., Pennsauken.