What could the city sell off in 2012?
Mayor Michael Nutter has created a task force to examine selling city assets, among other things. Though a report from the task force isn't due until mid-2013, the city expects to hold public meetings on the idea before then.
What could the city sell off in 2012?
As part of WHYY's series "Just You Wait," which explores the words and phrases that you might hear a lot about this year, I was on the radio yesterday talking about public asset sales.
Public asset sales are when governments sell off their properties or utilities, like airports, parks or parking meters.
There are a few reasons why asset sales are poised to become the next big thing.
Mayor Michael Nutter has created a task force to examine selling city assets, among other things. Though a report from the task force isn't due until mid-2013, the city expects to hold public meetings on the idea before then.
Mayoral spokesman Mark McDonald said the task force, which is chaired by former mayoral candidate Tom Knox, is holding its first meeting today.
Also, Council president Darrell Clarke supports the idea of public asset sales and wants the city to look at different ways to raise money. At the inauguration last week, he said, "I believe we can use the assets we have in new ways to help create jobs and raise revenues."
Last year, Clarke floated the idea of selling or leasing the city's parking meters to raise money.
Council commissioned a report last year to examine ways to raise money and reduce costs. The report, which was done by Econsult Corporation, said, "If the city sold more assets to private companies or entities, including major parks, roads, bridges and buildings, it could potentially generate $100 million or more in upfront funds."
The report also said that this fiscal year's budget expects to yield about $2.5 million in capital asset sales, but "more aggressive and systematic disposition of capital assets could yield the city $5 million or more in net revenues."
Additionally, Councilman Bill Green plans to introduce a bill this year that would require that proceeds from public asset sales over a minimum amount — say, $1 million — be used to pay down the pension. He expects to hold hearings on the issue this year.
So will there be a "For Sale" sign at the airport this year? Not yet. But the public is likely to weigh in on asset sales at hearings in 2012 — which could become very contentious. And there might be more small-scale public asset sales (think buildings) in the near future, too.
You can listen to the full radio piece here.
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Whatever the city decides to sell, it should consider using professionals that excel in those areas -- such as auctioneers, Realtors, and factoring agents.— featherman- They shouldn't sell anything. PA just needs to get rid of the northern, useless half. If Pennsylvania was cut in two, we'd be a lot better off, and we'd get rid of a lot of money wasted on funding for people who live in places which simply don't matter. That money could be better used here in Philadelphia rather than wasted in say, Hughesville. — tynol10
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- They've already sold their souls (and not for Rock n Roll, either).— kjuggs77
- This comment has been deleted.— Citizenc92
- That's right! We will! Cause the other option leaves us totally screwed. — tynol10
- This doesn't seem like it makes sense in the long run, sure you get the upfront cash, but you then lease the stuff back from a company. So you keep paying these monthly rates for years, there has to be a break even point down the road, and then after that you're losing money.— myawesomebike
- Sell off all Section 8 housing and bulldoze it.— dontlikeneocons
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