Somerton residents can think of a whole bunch of things that could be done with $335,000, no doubt. And when one brings up the corner of Roosevelt Boulevard and Southampton Road, those community needs likely come into much clearer focus.

The decaying, 153-acre site of the former Philadelphia State Hospital -- commonly known as Byberry -- has more than 30 buildings on it. The brick structures are dilapidated and rapidly decaying, neighbors say. Many of the buildings have no roofs, the residents claim, and are contaminated with hazardous airborne asbestos, according to a 1997 study by the Environmental Protection Agency.

But over the last 14 months, the Philadelphia Industrial Development Corporation has spent $335,000 on Byberry in another way -- security.

Meanwhile, the quasi-city agency has pushed a proposal for a business office complex there despite adamant opposition from neighbors and a lack of support from City Councilman Brian O'Neill, who holds the fate of the project in the top-left drawer of his office desk.

O'NEILL: WHAT'S NEXT MOVE?

O'Neill (R-10th dist.) last week told the Northeast Times that he refuses to introduce necessary legislation for the project without the backing of the community, specifically the Somerton Civic Association.

He said the same thing in December 1999 after the SCA voted unanimously to oppose a proposal for 130 acres of business office space and 22 acres of recreational space.

"I have a bill on Byberry. This is the second time I've gotten it," O'Neill said, alluding to a similar bill given to him by then-Mayor Ed Rendell in 1999. O'Neill never formally introduced that one to Council, either.

"I've let both PIDC and the mayor's office know I'm not introducing (the latest bill) until there's community consensus, and there's not right now."

In accordance with an agreement of sale that would transfer ownership of the site from the state's Department of General Services to PIDC, the latter agency would have until early October to get the legislation passed, notwithstanding an extension granted by the state.

Yet, according to Mary Jane Hazell, president of Somerton Civic, PIDC has not approached the community to work out a compromise since March 2000.

Noreen Schanfelter, a PIDC spokeswoman, refused to comment last week on the apparent stalemate. She did say, however, that the agency's board of directors has approved security expenditures through June 30.

City Commerce Director Jim Cuorato, whose department oversees city and federal funding for PIDC, said that PIDC is trying to determine its next move.

"Things have been in limbo for a long time," Cuorato said. "My discussions with PIDC have centered around finding a way to bring this to a conclusion.

COMMERCE CONCERNS

"We're committed to coming up with a plan that's agreeable to the neighborhood ... (one that) provides jobs, quality development and is complementary and consistent with the surrounding area."

According to Cuorato, PIDC has not spent city or federal tax dollars on security so far. Instead the money has come from a fund generated by the agency's real estate and business activities.

But PIDC has requested permission from the city commerce department to use city money, also known as "land bank" money, in the future.

"They've asked if (security) can be funded from the land bank," Cuorato said. "I'm going to work with them to resolve this funding issue. The big question is, are we going to continue to accumulate this cost?"

To O'Neill, the security funding issue is secondary to seeing progress on development of the site.

"I don't think it's too much to ask of the city to keep the property secure. I'm more concerned about it staying secure," he said, arguing that taxpayers will foot the bill whether the city or state assumes responsibility for security.

O'Neill and others close to the issue say that the agreement of sale, signed on Dec. 6, 1999, should be terminated so that a new development effort, potentially involving PIDC, can begin.

"I think the state can sever this agreement and should see the handwriting on the wall," O'Neill said.

Samantha Elliott, a DGS spokeswoman, said that the administration won't "speculate" on PIDC's ability to obtain city approval. The state is "just following the procedure" as set forth in the agreement of sale, Elliott added.

If the state was to nullify the deal, she said, it would have done so by rejecting PIDC's conceptual or finalized development plans. Both plans were approved by DGS.

O'Neill believes that PIDC would be better able to meet community wishes without state oversight of the project.

"PIDC knows how to negotiate with community groups in this area," O'Neill said, citing the Byberry West industrial park as an example.

LAND FOR A BUCK

In addition to setting a structured development schedule, the agreement mandates that PIDC sell a total of 62 acres to two private companies for $1 each.

For its share of the land, PIDC would compensate the state with $5 million in "fair consideration," such as increased tax revenues resulting from development.

State Rep. George Kenney (R-170th dist.) contends that the onus for ending the deadlock rests with PIDC. If it doesn't meet the deadlines, the agreement can be voided. PIDC would sacrifice a $5,000 "bid guarantee" fee as well as its own development expenditures, including security costs.

"PIDC can rip it up at any time. They can rip it up tomorrow," Kenney said.

The state legislator believes that PIDC might fear losing the opportunity to develop the ground if it sacrifices the existing agreement. Again, PIDC officials refused comment last week.

But those perceived fears may be unfounded, Kenney told the Times.

"If we take it back to the state, at any time we have the option to transfer it back to PIDC," Kenney said. "But we've got to see (the plans). The community still has zoning concerns."

In Kenney's opinion, DGS is content to let PIDC incur security costs under the agreement of sale. Elliott confirmed that DGS has incurred minimal costs (mowing the lawn a couple of times) since PIDC took over security.

"The state's interest is to get rid of surplus property and to do it in a way that's agreeable to the community," Kenney said.

So far, the second part hasn't happened. Since its December 1999 vote, the Somerton Civic Association has reaffirmed its opposition to the existing agreement of sale several times.

Undaunted, PIDC submitted its finalized plan, which includes 130 acres of business office space and 6,200 parking spots, to state officials last September. The state later approved the project.

CALLS FOR DEMOLITION

The Somerton residents have called for the state to demolish the buildings on the site before marketing the land to any developers.

The consensus opinion is that demolition would cost more than the state could collect by selling the open ground because of the asbestos problem and other environmental issues.

Area residents have also called for a traffic study of the area, the completion of the Woodhaven Road expressway through Somerton to Philmont Avenue and the addition of a city fire station for the community.

The Somerton Civic members have even supported a contingency development plan in which most of the ground would be divided among an over-50 housing community, green space and business offices. That plan does not account for 22 acres earmarked under the current agreement for community recreation facilities and possibly an ice skating rink.

The man whose company stands to acquire development rights for the 22 acres under the current agreement is still interested in the project, despite the community opposition to the overall agreement.

That man is former Republican mayoral candidate Sam Katz, who now heads Greater Philadelphia First, a group of area business leaders.

"I think PIDC is trying to sort out its position with a new president in place, Peter Longstreth," Katz said. "We remain enthusiastic about the market."

With a Flyers Skate Zone project under construction on Northeast Philadelphia Airport property at Decatur and Comly roads, Katz's proposal has "perhaps less emphasis on ice skating," he said.

Instead, it could include, "perhaps one sheet of ice, indoor soccer and other kinds of indoor uses ... maybe community center elements, as well."

REP: SAY YES TO RECREATION

Kenney also sees the 22 acres -- which lie between state-leased Self Help drug and alcohol rehab center and Somerton Youth Organization properties on the south side of Southampton Road -- as ideal for recreation.

He has been working on a contingency plan for that space in the event that the current agreement of sale breaks down.

"That has always been promoted as community recreational use," Kenney said. "I think you could almost give that to the community like (the state) did with Somerton Youth and Self Help."

Earlier this year, state-contracted crews completed an asbestos removal and demolition project on four buildings on the south side at a cost of more than $500,000. The hospital's old power plant and laundry building remain on the tract.

Kenney is hoping to obtain state funding to demolish the power plant. The laundry building could be part of a future use.

"We're trying to convert the laundry building into some community use," Kenney said. "I have some engineers I know looking at the floor plans to see if we can do indoor soccer or if we can do a gymnasium."

The legislator said he has had discussions with community-based groups in the area, such as Somerton Youth, Self Help and an athletic organization run by city firefighters, about forming a board that would oversee the redeveloped facility.

"Somehow, you'd have to form some understanding of who's going to do what there," Kenney said.

Funding will be the key issue.

"You need money. It's all about money," Kenney said. "I don't mind trying to get something from the state, but it's a lot of ground there."