$29.6 billion of Philly real estate is exempt from property taxes. Should nonprofits be asked to pay up?

Lincoln Financial Field – Philadelphia Magazine photo

The Philadelphia Museum of Art. Lincoln Financial Field. The former Aramark Tower.

Together, those Philadelphia landmarks are worth $794 million, according to city assessment records. But they are among the nearly 23,000 properties in Philadelphia exempt from paying property taxes because they are owned by nonprofit or government institutions.

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In sum, the $29.6 billion value of all exempt properties account for 17% of the city’s total real estate value, according to an Inquirer analysis. Their combined tax breaks equal about $414 million annually.

It’s not unusual for cities like Philadelphia, with a high concentration of universities and hospitals, to have a large amount of untaxed property. Adam Langley, who studies tax exemptions at the Lincoln Institute of Land Policy, a Massachusetts-based think tank, said he often cites the city when referring to places with lots of tax-exempt properties.

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Still, Langley said, Philadelphia is “kind of an outlier” because it does not seek payment in lieu of taxes (PILOT) agreements with its largest nonprofit institutions, a step that has enabled other cities to recoup millions in extra revenue.

When he ran for mayor four years ago, Jim Kenney said the city should pursue PILOTs or comparable service agreements. Now, as Kenney asks voters in November for a second term, other types of tax exemptions have come under scrutiny from City Council, activists, and residents, and property reassessments have led to tax hikes for thousands of homeowners in the last two years.

And some of the same activists who have urged the city to eliminate or reform its 10-year tax abatement for new construction or rehabilitation have called for PILOTs for institutions such as the University of Pennsylvania, which owns at least $3.2 billion in property and has a $14.7 billion endowment.

But no negotiations for PILOT agreements are underway, said Jim Engler, Kenney’s chief of staff.

What kinds of properties are tax-exempt?

State law dictates that churches, cemeteries, hospitals, institutions of learning, charities, and government-owned properties are exempt from taxes, as long as their revenue goes toward the support of the institution or charity. Many argue that they help the city in other ways, as large employers, tourist attractions, or health-care providers.

Government properties — owned by the city, state, and federal governments, housing authorities, SEPTA, and other agencies — account for nearly 40% of the value of all tax-exempt properties, the records show. The remaining exemptions are for nonprofits.

Educational institutions in Philadelphia own about a quarter of the value of tax-exempt properties, the Inquirer analysis found.

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Restoring the Chesapeake Bay one oyster shell at a time

Kara Holsopple reports for the Allegheny Front

Jessica Lewis says shucking an oyster is like picking a lock.

“You can’t really muscle through it,” she said, running a small knife around the edge of a closed oyster shell. “You press down, and then you just wiggle, and pop it open.”

Jessica Lewis, executive chef, prepares oysters at Spirit & Tales.
Photo: Kara Holsopple/The Allegheny Front

Lewis is the executive chef of Spirits & Tales at the Oaklander Hotel in Pittsburgh. She says the restaurant goes through 300 to 400 oysters a week, from the East and West coasts. But regardless of where they’re sourced, the top and bottom shells will end up as a part of a restoration project in the Chesapeake Bay. 

Lewis and her staff toss the spent shells into a 35-gallon barrel with a screw-on lid, located in the trash area on the ground floor of the building. About once a month a truck picks up the old shells from this and six other participating restaurants in Pittsburgh and drives them more than 250 miles to a staging area just across the Chesapeake Bay Bridge in Maryland.

From there, the oyster shells from Pittsburgh, and ones collected from Maryland, Virginia and the D.C. area are taken to a site at the University of Maryland Center for Environmental Science’s Horn Point Laboratory in Cambridge, for processing.

“So here you’re looking at about 7,000 tons of clean shell,” said Karis King, with Oyster Recovery Partnership, a nonprofit which works to increase oyster numbers in the Chesapeake Bay. She’s standing at the base of a mountain of gray shells.

They’re dumped with a front loader into a machine that’s like a modified potato hopper, which helps sort the shells. While on the sorter, the shells are washed with water from the nearby Choptank River, a major tributary of the bay. Smaller fragments of broken shell fall away, as a conveyor belt deposits the half shells into wire cages or piles where they’re cured for a year.

“Even with all the shell that we do recycle, and also purchase from shucking houses, we still don’t have enough to do large scale restoration, at the rate that we could,” King said.

A mountain of cleaned shells. Photo: Kara Holsopple/The Allegheny Front
Shells will be cured for a year before being used for spat. Photo: Kara Holsopple/The Allegheny Front

Nature is “out of whack”

A look back in history explains the scale of the problem, says Stephanie Alexander, manager at the Horn Point Lab oyster hatchery.

“When John Smith sailed up in the 1600s, he was running aground on oysters,” Alexander said. 

That’s before these waters were overharvested, and before there was agricultural runoff and soil erosion from development.

“We’ve pretty much wiped the oyster out to less than one percent of historic levels,” she said. “So we started this restoration effort where we’re using a hatchery to produce spat on shell to put back into the bay, so we can kind of help jump-start Mother Nature.”

The concept is pretty simple: Scientists here at the lab produce baby oysters from adults harvested from the bay, nurture the microscopic larvae with a custom algae diet, then get them to attach to the recycled, treated oyster shells. That’s the “spat on shell.”

Stephanie Alexander manages the Horn Point Lab oyster hatchery. Photo: Kara Holsopple/The Allegheny Front
Oysters from the bay waiting to spawn. Photo: Kara Holsopple/The Allegheny Front
Special algal diet for the oyster larvae. Photo: Kara Holsopple/The Allegheny Front
Tanks where the oyster larvae grow into spat. Photo: Kara Holsopple/The Allegheny Front

It’s a lot harder than it sounds. Even in the lab, with its high-tech tanks, instruments and network of pipes, nature is in charge.

Alexander says it was a slow summer for the project. Increased rainfall caused a drop in salinity in the bay, stressing the adult oysters, and making them less likely to spawn, or produce eggs and sperm.

The water in the bay is also warming, which could make it harder for the spat on shell they release to grow a second shell, and over the years, form the clusters that create oyster reefs.

“When one thing gets out of whack, everything else is going to kind of follow,” Alexander said. “So we’re trying to get the oysters back into balance, so then, hopefully, everything else will follow.”

Vacuum cleaners of the bay

Over the last two decades, the lab and Oyster Recovery Partnership have planted 8 billion oysters on the bottom of the Chesapeake Bay and its tributaries, with the help of other partners like the Maryland Department of Natural Resources and the U.S. Army Corps of Engineers. Throughout the summer spat on shell are released from a boat on sites where they’re most likely to survive. Alexander says that’s critical.

“Oysters are the vacuum cleaners, or the kidneys, of the bay,” she said. “They just suck the water in. They decide if it’s food or not food. But no matter what it is, they remove it from the water column, and that’s how they clean it.”

Because of this superpower, oyster aquaculture is a best management practice identified by the regional partnership that oversees cleaning up the Chesapeake Bay.

Some of the spat raised at the Horn Point Lab will make its way to oyster farmers, and those are the “oysters on the half shell” that are served in restaurants. But the majority of the spat will help rebuild oyster reefs, creating habitat for fish, and restoring the ecosystem.

“We did something good.”

Half of the land area of Pennsylvania drains into the Chesapeake Bay, and that includes a lot of pollution from agricultural runoff, like nitrogen. It’s a factor in the formation of dead zones in the bay. Recently, the commonwealth has come under fire from Maryland’s governor for not investing enough money to help clean up the Chesapeake.

Back in Pittsburgh, Jessica Lewis is educating diners and trying to convince other Pittsburgh restaurants to join the oyster shell recycling effort that feeds the conservation work. She hopes they’ll see the value in giving back.

“With climate change, and all those scary things, it’s like a bright light shining through–that we did something good,” she said.

Her pitch: Every shell counts. 

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This story is part of our series, Wild Pennsylvania, which is funded by the Richard King Mellon Foundation. To check out other stories in the series, click here. 

This story is produced in partnership with StateImpact Pennsylvania, a collaboration among The Allegheny Front, WESA, WITF and WHYY to cover the commonwealth’s energy economy.

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Farmers find another reason to get frustrated with Trump

By Katie Lobosco, CNN

CNN — The trade war with China has been particularly painful for American farmers, but a separate issue is currently straining their support for the administration: biofuel.

The leaders of 23 corn grower organizations sent a letter to President Donald Trump on Friday, arguing that his administration’s biofuel waivers have reduced demand for their crops.

“Frustration in the countryside is growing,” the letter reads.

In August, the Environmental Protection Agency granted 31 waivers to small refineries, temporarily exempting them from biofuel laws. The waivers free refineries from having to blend biofuels like ethanol into their gasoline.

Corn growers immediately voiced their concerns and Trump later tweeted that a “giant” ethanol package was in the works.

“The Farmers are going to be so happy when they see what we are doing for Ethanol,” Trump tweeted.

But, a month later, they appear tired of waiting for the details to be finalized. In the letter, growers said that that a rising number of ethanol plants are closing or reducing production, costing more than 2,700 jobs. If refineries are using fewer soybeans and corn, it drags down the price farmers can get for their crops.

“Clearly, this has eroded support for the administration right now,” said Ron Heck, an Iowa soybean farmer who serves as secretary of the National Biodiesel Board and sits on Trump’s Agricultural Advisory Committee.

Farmers have generally stood behind Trump and his mission to get a new deal with China, even as Beijing has put tariffs on a variety of American-grown agricultural products. China was the biggest market for soybeans, but exports have plummeted. A record amount of soybeans are sitting in storage.

Trump appropriated $28 billion to farmers hurt by Beijing’s retaliatory tariffs, but the aid package isn’t meant to make up for their entire losses.

But to many farmers, including Heck, the short-term pain is worth what he believes a new trade deal with China will provide in the future by addressing unfair trading practices. But the issue with ethanol is different. He blames the EPA for causing the problem.

“The trouble is with the EPA. So we’re giving Trump a reasonable amount of time to fix this, and if he doesn’t, there will be some farmers who will say he didn’t deliver on his promise,” Heck said.

The Clean Air Act requires transportation fuel to contain a minimum amount of renewable fuel. But under the Renewable Fuel Standard program, small refineries can apply for a temporary exemption if it demonstrates that meeting the requirement would cause an economic hardship. The Trump administration has approved 85 waivers in total.

A spokesman for the EPA said the agency “will continue to consult with our federal partners on the best path forward to ensure stability in the Renewable Fuel Standard.”

“The President will always seek to engage with stakeholders to achieve wins for the agriculture and energy sectors,” he added.

Earlier in the week, farm groups applauded the Trump administration for signing a new trade deal with Japan. It will open up markets for US beef, pork, wheat and other agricultural produce.

“This is a huge victory for America’s farmers, ranchers, and growers, and that’s very important to me,” Trump said at a press conference Wednesday.

But while American pork producers say they’re happy about the deal, it only gives them about the same level of access to the Japanese market as they would have gotten under the Obama-era Trans-Pacific Partnership in the first place. Trump pulled out of the 11-country deal as one of his first acts as President, opting for a bilateral agreement instead.

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The gas tycoon and the vice president’s son

Hunter Biden, then-Vice President Joe Biden and his sister Valerie Biden Owens attend a ceremony to name a national road after Joe Biden’s late son, Joseph R. “Beau” Biden III, in Kosovo on Aug. 17, 2016. (Visar Kryeziu/AP)
Hunter Biden, then-Vice President Joe Biden and his sister Valerie Biden Owens attend a ceremony to name a national road after Joe Biden’s late son, Joseph R. “Beau” Biden III, in Kosovo on Aug. 17, 2016. (Visar Kryeziu/AP)

Paul Sonne, Michael Kranish and Matt Viser – Wash. Post 
September 28, 2019 at 8:08 p.m. EDT

When then-Vice President Joe Biden’s son joined the board of an obscure Ukrainian gas company half a decade ago, it was a stunning coup for its owner, a former Ukrainian minister working to remake the company’s image as he faced a money-laundering investigation. 

For Hunter Biden, the job came with risks: Ukraine was in the throes of political upheaval, and there was building scrutiny of former government officials profiting in the lucrative gas industry. His father was the face of the Obama administration’s effort to get Ukraine to crack down on corruption.

The region was so unsettled that one of Hunter Biden’s investment firm partners at the time — former secretary of state John F. Kerry’s stepson — believed that joining the board of Burisma Holdings was a bad idea and ended his business relationship with Biden and another partner, his spokesman told The Washington Post.

Now, more than five years later, with Joe Biden running for president, Hunter Biden’s decision to get involved with the Ukrainian firm is the backdrop of an extraordinary whistleblower complaint against President Trump that is reshaping the 2020 political landscape.

Staring down impeachment, Trump sees himself as a victim of historic proportions

Revelations that Trump, along with his personal attorney, Rudolph W. Giuliani, pressed the Ukrainians to pursue investigations into Burisma and examine the role of the Bidens have triggered an impeachment inquiry in the House, with allegations that Trump withheld U.S. support for Ukraine to ensure Kiev investigated his potential rival in the presidential election.

No evidence of criminal wrongdoing by the Bidens has surfaced. Giuliani’s primary allegation — that Joe Biden pushed for the firing of Ukraine’s top prosecutor to quash a probe into the former minister and Burisma owner Mykola Zlochevsky — is not substantiated and has been widely disputed by former U.S. officials and Ukrainian anti-corruption activists.

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Still, Hunter Biden’s decision to associate himself with the company has raised an uncomfortable question the Biden campaign is struggling to explain: Why didn’t the vice president take steps to head off a perceived conflict of interest between his efforts to crack down on corruption in Ukraine and his son’s work for a gas tycoon investigated for abusing his position as a government official?

“Why didn’t Joe Biden tell Hunter, ‘Come off it. What the hell do you think you’re doing?’ ” said Oliver Bullough, a British journalist on the advisory board of the Anti-Corruption Action Center, or AntAC, a nonprofit in Ukraine.

For some Ukrainians, Hunter Biden’s association with Burisma undermined his father’s calls to end corruption in Ukraine. It also raised concerns that prosecutors would avoid pursuing alleged wrongdoing by Zlochevsky out of fear that the former minister had high-level connections in the United States — the critical backer of the Ukrainian government at the time.

Ukrainian businessman and founder of the Burisma Holdings company, Mykola Zlochevsky, during a media conference in February 2012. (Pavlo Gonchar/SOPA Images/Sipa USA via AP)
Ukrainian businessman and founder of the Burisma Holdings company, Mykola Zlochevsky, during a media conference in February 2012. (Pavlo Gonchar/SOPA Images/Sipa USA via AP)

Inside the vice president’s office, there was discussion about whether Hunter’s position on the board would be perceived as a conflict of interest, according to several former aides who spoke on the condition of anonymity to discuss private conversations.

One former adviser was concerned enough to mention it to the vice president, according to an adviser, but the conversation was brief, and other aides said they didn’t want — or see a need — to raise the issue.

Former U.S. officials who worked with Biden maintain that his son’s activities in no way influenced his actions regarding Ukraine as vice president. 

“Is there an appearance issue?” a former adviser said. “Of course there’s an appearance issue. But did it actually create wrongdoing? No.” 

At the time, the White House said that Hunter Biden was a private citizen and that the vice president didn’t endorse any company in Ukraine. While vice president, Joe Biden did not comment publicly on his son’s role at Burisma. 

What specific duties Hunter Biden carried out for Burisma are not fully known. A lawyer for Hunter Biden, George R. Mesires, declined to say how much his client earned, or whether the vice president’s son knew the company’s owner was in the crosshairs of authorities when he joined. 

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Message From a Proud Island: ‘We Need Your Help’

Dorian devastated this place, but hope keeps washing ashore.

By Kelley Shinn in the New York Times
Ms. Shinn is a writer.

This stretch of Highway 12 in Ocracoke, N.C., was destroyed by Hurricane Dorian.
This stretch of Highway 12 in Ocracoke, N.C., was destroyed by Hurricane Dorian.
CreditCreditJulia Wall/The News & Observer

OCRACOKE, N.C. — I write this from a barrier island 26 miles off the mainland coast, accessible only by boat or plane. It has been about three weeks since Hurricane Dorian blew through, tore up and submerged the place that my 1,000 or so neighbors and I call home. While it might seem from a distance that the storm has passed, we are all as shellshocked as we were on Day 1.

I first came to Ocracoke as a 17-year-old who’d just lost her legs to meningitis and sepsis. The topography was overwhelmingly beautiful — and one night on the beach with a full moon, I found a reason to live again after tragedy. Nearly seven years ago, I came again for a 10-day vacation with my children and never left. I didn’t stay because of the geographical beauty, I stayed because of the village.

Many natives are descendants of the quartermaster of Blackbeard the pirate and still speak with a Hoi Toide brogue, a reference to the way the natives pronounce “high tide.” It’s a magical village where barters of bourbon for fresh fish take place with ease between bicycle baskets. Neighbors help neighbors, and newcomers who stay live by the motto of the native Ocracokers: We don’t ask for help, we give help. But that has changed. America, we need your help.

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The Ocracoke Village Fire Department was used as a command center after Hurricane Dorian struck.
The Ocracoke Village Fire Department was used as a command center after Hurricane Dorian struck.CreditConnie Leinbach/Ocracoke Observer

About one-third of the island are native Ocracokers, one-fourth are Hispanic, two people are African-American and the rest, like me, are varying degrees of driftwood. We have Democrats, Republicans, Methodists, Baptists, Catholics, agnostics and Buddhists. When a storm hits and the ferries can’t run and a plane can’t land, we are on our own. It is that exact nature of isolation that makes this place so special. We don’t care who you voted for, or who you pray to, or what color your skin might be, when stuff hits the fan, we need each other, and if I have something you can use, then take it. When you live in vulnerability, you find out what matters most.

The island averages five feet above sea level, but Dorian inundated us with an unprecedented seven-foot storm surge that, according to the head of North Carolina Emergency Management, flooded over hundreds of our homes with anywhere from a few inches to four feet. Neighbors had to be rescued from their attics by boat, folks axed down their doors and swam through the surge to higher ground. At the Village Craftsmen, a native-owned gift store in operation for 40 years, lines are marked with the names of previous hurricanes. Hurricane Matthew from 2016 is there, one of the worst anyone can remember. The line for Dorian is 27 inches higher than Matthew. It is a miracle, that unlike our friends in the Bahamas, no one here died.

Our daycare center, briefly reopened, has been closed because of septic issues; our historic library has been closed. Our post office was reopened on Sept. 18, but our only bank remains closed. Currency is bartered goods. Most local businesses lost all of their merchandise. Our health center is now a series of mobile emergency units. Instead of surge, our island is now inundated with relief workers. Immediately after the storm, local watermen from neighboring islands came into our harbor, skiff after skiff, filled with water, food and supplies. Our schoolchildren, exhausted and anxious, and whose school may not be habitable for a year, helped those coastal kin unpack the boats and load the goods into the few trucks that were operable on the island, and then hauled them to our fire department, which has been the base of operations and distribution since disaster struck. We now call it FireMart.

We still have not been declared a federal disaster, hence we have no assistance from FEMA. Hundreds of my neighbors and friends have been displaced, matriarchs of our village are sitting on piles of debris waiting for good Samaritan crews to help clean out their homes, while the walls are bowing and the mold is growing daily. Last week, I began making phone calls from Raleigh to Washington to speak with my representatives and leaders about our current state of disaster.

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Northern lights possible tonight in New Jersey

The northern lights, or aurora borealis, are predicted to extend as far south as the Delmarva Peninsula, putting New Jersey within range to catch the glimmering lights.

By JOE MARTUCCI Atlantic City Press Meteorologist

The Space Weather Prediction Center has issued a geomagnetic storm watch for Saturday night, and that means a spectacle in the sky will be possible in New Jersey, as long as the clouds clear out. 

The northern lights, or aurora borealis, are predicted to extend as far south as the Delmarva Peninsula, putting New Jersey within range to catch the glimmering lights. On Saturday night, a G1, or minor, geomagnetic storm alert will go into effect. 

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