Friday, April 5, 2013
Friday, April 5, 2013
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The hot AVI blues

Frank Maimone fears he´s getting burned by disparities in AVI. (Alejandro A. Alvarez / Staff Photographer)
Frank Maimone fears he's getting burned by disparities in AVI. (Alejandro A. Alvarez / Staff Photographer)

FRANK MAIMONE sometimes gets as hot as his pizza ovens in Northern Liberties.

A pioneer, he opened Rustica Pizza in 2000, when there wasn't much to recommend the postindustrial, broken neighborhood where people had been drinking Schmidts rather than living around its hipster piazza.

A Haddonfield native, Frank had an urban soul and arrived in No Libs to pursue a dream with Rustica, on 2nd Street near Poplar. After he married, he bought a nearby house that is now home to himself, his wife Mary and their two young daughters. He pays for them to attend private school because most city schools, which his ever-rising real-estate taxes help fund, are crappy.

At 46, Frank gets hot because he can see a day coming that he does not want to see - when crazy city policy and taxes force him out of the city he loves.

Today, he's hot about AVI - the Actual Value Initiative.

"I'll go kicking and screaming, but I'm closer to leaving than I've ever been," he says as we talk in his small shop that serves creative pizza in addition to plain pies. Creative? Try his Reuben pizza.

Although Frank didn't finish college, he is a politician's worst nightmare - an engaged and informed voter who devours his local newspapers and the Wall Street Journal.

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From the Journal, he learned that only Bridgeport, Conn., crushes residents with a greater per capita tax burden than Philadelphia. In this regrettable category, Philly bests New York, L.A. and Chicago.

AVI, the city's attempt to reform real-estate taxes, is "grossly inaccurate," Frank says.

I ask him to prove it.

Frank reaches for his iPhone and dials up some valuations on the city website.

He shows me two plots on Randolph Street, side-by-side, identical size. His home is located on one plot. A vacant lot is the other. The value of his land is $28,447. The value of the land next door is $39,200. This is just the land, not what has been built on it.

Identical size, side-by-side, an inexplicable one-third difference in value. Frank asks, how's that possible? Wide discrepancies in land and property value have been documented all over the city.

Several times Frank says he is OK with "paying my fair share," providing the bill is accurate. But it's not.

How can his house, "one block from a methadone clinic," he asks, "be worth more than the same house three blocks away on a street with nice galleries?"

Frank questions how the Office of Property Assessment came up with the numbers.

"OPA won't divulge the formula," Frank says. "And Nutter's the 'mayor of transparency?' "

OPA chief assessor Richie McKeithen tells me there is no single formula, there are different considerations for residential, condominium, industrial and commercial properties. The highly regarded Dr. Kevin Gillen, now at the University of Pennsylvania, did the models that produced values for residential single-family land parcels, about four-fifths of the total. OPA estimated the values for the land parcels for everything else, says McKeithen.

Frank says he's paying 20 percent more in real-estate taxes than three years ago, that he's had to cut back financially and feels he's getting less for his taxes.

If rising costs and city craziness drive out people like him - small business owners - what will be left is Detroit.

Frank recently, reluctantly, laid off one of his 11 employees - about 9 percent of his work force.

He'd like Nutter to do the same with his deputy mayors and appointees before coming around to raise taxes and to take another slice of Frank's pie.

 


Email: stubyko@phillynews.com

Phone: 215-854-5977

On Twitter: @StuBykofsky

Columns: philly.com/Byko

 

Blog: philly.com/stuniversity

Stu Bykofsky Daily News Columnist
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Comments  (14)
  • 0 like this / 0 don't   •   Posted 7:06 AM, 04/05/2013
    The mayor cut his staff....City City Council cut staff....ha ha ha.....He and the other politicos hope they can get through this and stay in office with all the perks they enjoy or move on to something better. Meanwhile the city will continue to lose more and more of its middle class tax base. There are a few City Council members attuned to the reality that you can't go on taxing the remaining middle class endlessly without long term urban decline but most Council members are out of touch. Their job is basically part time but they get generous pay and benefits that give them a life style completely out of touch with almost all their fellow Philadelphians.
    experientia docet
  • 0 like this / 0 don't   •   Posted 7:58 AM, 04/05/2013
    The AVI "formula" is a hodgepodge of speculative and bizarre assumptions. We, as residents, can't contest secretive, convoluted math and incompetence, especially when the City won't share the technique to reach their insane figures. Even on my street the land and property improvement assessments are all over the place. It's like these "stealth" assessors, sitting at their desks, just pulled numbers out of a hat and applied them willy--nilly to many homes. We all understand "fairness". This AVI gambit, however, is a calculated scheme to raise scores of millions of extra dollars for the City. So far, If my understanding is correct, only 3 or 4% percent of people (that's 20,000 out of 579,000 properties) opted for a First Review. This is just what the City expected. Their projections, basing their "averages" on past tax increases,make the folks at OPA happy as flies on poop. The residents blessed them with meekness again. Hardly anyone is contesting the increases. Sure, certain areas have to expect it, but the subtle, small ($200-$500) tax increases. multiplied by thousands of homes, will stuff the OPA and City with lots of extra money to misuse and/or waste.
    oblekr
  • 0 like this / 0 don't   •   Posted 2:15 PM, 04/05/2013
    Very well said ... and I did request a review.
    Val Dal
  • 0 like this / 0 don't   •   Posted 12:11 PM, 04/05/2013
    This is what happens when you vote Democratic.
    emaximus
  • 0 like this / 0 don't   •   Posted 2:10 PM, 04/05/2013
    Go troll elsewhere.
    Val Dal
  • 0 like this / 0 don't   •   Posted 1:03 PM, 04/05/2013
    Gillen estimated that land value should be 20% of the overall assessment. In my roxborough park community of 90 similar homes (Levittown style cape cods) on similar sized lots (5,000 sq feet) the land values average 48% of total assessment with a range of 35-94%. The largest lot in the development is assessed at 94% while the house, which is one of the best kept in the development and the only one with a 2 car garage, represents all of 6% of the assessment.
    nebulus
  • 0 like this / 0 don't   •   Posted 2:09 PM, 04/05/2013
    Go troll elsewhere.
    Val Dal
  • 0 like this / 0 don't   •   Posted 2:12 PM, 04/05/2013
    Sorry. This was meant for the "democrat" comment.
    Val Dal
  • 0 like this / 0 don't   •   Posted 1:07 PM, 04/05/2013
    I support this man. The fact that he reads the Wall Street Journal means he's an informed voter. Best paper in the country.
    Crazybrave1
  • 0 like this / 0 don't   •   Posted 1:23 PM, 04/05/2013
    Makes perfect sense to me. Land with nothing on it is far more valuable (as land) than land that you have to tear down a building on if you want to develop it.
    Valley Twin
  • 0 like this / 0 don't   •   Posted 1:28 PM, 04/05/2013
    Mayor Nutt-Job will chase taxpayers out of Philadelphia. When Blondell becomes mayor, she will chase the rest.
    *Chuck*
  • 0 like this / 0 don't   •   Posted 2:06 PM, 04/05/2013
    Ha - 20% increase. My property taxes have increased every single year for 16 years. Northeast property owners have been carrying this city for far too long and yet I can't even get recycling trucks to actually empty same into their truck. They always leave some in the can and plenty in the street. I watch these actions take place and what really irks me is I clean up all around my house AND the street before recycables are picked up the next morning. (Okay, I got off track there.) Property taxes definitely need to be made more equitable but when formulas are not divulged, when market values are inflated because no one is buying homes because they don't have jobs and if they are lucky enough to afford a home (not at the market value my home is priced), it is just a matter of time before those same homes are foreclosed upon and/or abandoned. THE FORMULAS ARE NOT WORKING. But I am definitely all for property taxes, especially those who have paid so little while I keep putting out more and more each year. My property taxes are 40% higher. Is my property elaborate? It is not in any way. It is kept clean though. Maybe I should leave trash all over my property to bring the AVI down.
    Val Dal
  • 0 like this / 0 don't   •   Posted 3:59 PM, 04/05/2013

    this article touches on the inequity of the GMA's, though not named exactly as such. My home is 6-8 rowhomes distance from a GMA change. The GMA's stink in their application especially when you are subject to criminal activity from the adjoining GMA. The crimes are NOT coming from people on my side of the GMA or my neighbors.


    If you cant tell the difference in exterior condition with your eyes you have no business being an assessor. I dont blame the individuals if they were hired without a background in construction or real estate, but it stinks at the top for sure.

    I am against citizens having to do the OPA's corrective work through appeals and hearings when they are getting paid to learn their jobs for years at my expense and we are losing pay and time dealing with the errors and inequities.
    Steelmanpa
  • 0 like this / 0 don't   •   Posted 6:17 PM, 04/05/2013
    Obleker, you cant figure it as 4% since 30% of the properties are in arrears and wont call attention to themselves and the underassessed ( yes they are out there on my block) wont challenge their gift from the OPA incomceptence. Take away 30% of that and the number of taxpaying homes appealing is probably much higher
    Steelmanpa