Sale of bank building
tops civic meeting agenda

By Diane Prokop
Times Staff Writer

East Frankford Civic Association president Peggy Hoch had her hands full at last week’s meeting.
The Frankford Hospital conference room was packed with people who turned out to get details of the sale of the Third Federal Bank building, at 4625 Frankford Ave., to Northeast Treatment Centers and to discuss a zoning variance for a check-cashing business.
The latter issue had those in attendance on both sides of the issue getting loud. Yaser Masso, who operates Masso Detective Agency at 1604 Margaret St., wants to open a check-cashing establishment at the same location.
A variance is required because such a business falls under zoning for regulated uses, which limits the number of certain types of businesses in a neighborhood. Other regulated-use establishments include adult book stores, adult motion picture theaters, pawnshops, massage businesses, tattoo parlors and body piercing shops.
They cannot be within 1,000 feet of another existing regulated-use business or within 500 feet of residential properties. There are two Frankford check-cashing spots within that distance — at 4675 Frankford Ave. and 4723 Frankford Ave.
The Massos approached the civic group two years ago, which supported the plan. That approval was rescinded, however, when the civic group found out about the zoning restrictions. The Massos did not return to the civic group prior to a July 25 hearing to ask again for the association’s support. David Auspitz, chairman of the Zoning Board of Adjustment, sent them back to the East Frankford association.
Yaser Masso’s son, Sammer Masso, brought attorney Joseph Beller and about 20 allies to ask the civic group to support a variance to permit the check-cashing business.
Beller tried to tell civic members that the business would benefit the community, offering more security with lights and cameras, SEPTA tokens without an additional charge, and Western Union services.
Sammer Masso talked over his attorney, as well as civic members who voiced their concerns, claiming that the check-cashing facility, which would be open at night, is needed for working folks to cash checks and those who need to wire money to relatives overseas.
The community wasn’t buying what Masso and Beller were selling.
Neither was City Councilman Dan Savage (D-7th dist.), who signed a letter opposing the variance request, not only due to the proximity of similar businesses but also because it would be "inappropriate and contrary to the city’s economic development efforts in this area. Check cashing establishments are often detrimental to the revitalization of neighborhoods."
Dues-paying members voted 15-0 to oppose the business. Masso was upset that his supporters were not allowed to vote.
Hoch told Masso to settle down or leave. Masso settled down and after several minutes, he and his contingent cleared the room.
Next up was Jim McCarthy who was on hand to answer questions about the sale of the Third Federal Bank building to Northeast Treatment Centers (NET).
NET is a 37-year-old organization that provides behavioral health care and social services for adults, children and their families in southeastern Pennsylvania and Delaware.
Services include foster care, residential treatment programs, and other clinical and placement service, as well as substance abuse services, juvenile treatment services, dual diagnosis treatment programs, and outpatient mental health programs.
Since the building is zoned commercial, there was no onus on McCarthy or NET to approach the civic group for its blessing before the private sale went through. The bank will remain as a tenant.
McCarthy, one of four partners in Frankford Associates, purchased the building from the Frankford Community Development Corp. back in April for $275,000. The developers in turn sold it to NET for $635,000.
The net profit, however, is only about $220,000 due to extensive legal and title issue expenses. Those funds are being held in a 1031 exchange and will be used to purchase several properties on Frankford Avenue, according to McCarthy.
In a 1031 exchange, a property sale is structured so that the seller’s profit or gain is deferred to a future date. The profits are held in escrow until the sold property is replaced with another like property.
The group’s purchase of the old Art Holiday theater does not qualify for the exchange.
Frankford Associates’ past investments in the neighborhood, including cleaning up an old drug and prostitute house and transforming it into the mozaic restaurant, apartments and gallery space, and restoration of Frankford warehouses, along with the group’s plan to turn the Art Holiday into an arts center, did little to make community members more accepting of the notion of another drug rehab center in the community.
"I was in a state of shock when I found out," Hoch said.
McCarthy told those gathered that he had a lot of sleepless nights over the deal but went through with the sale to NET after visiting NET’s Fifth and Spring Garden streets location three times.
"They stress very much in giving back to the community," McCarthy said.
The deal was also contingent on several restrictions, including prohibiting the building’s use as a residential facility, prohibiting dispensing of pharmaceuticals such as methadone, not negatively impacting the residential community, and following rules and practices to control clients.
McCarthy also said that NET would build an enclosure on the Paul Street parking lot so that clients would not gather outside while waiting for appointments or transportation.
"We would not sign an agreement without addressing the issues," McCarthy said.
While some members weren’t opposed to having a reputable treatment facility located in Frankford, they did have a problem with its location on the avenue, its proximity to residences, and the comings and goings of NET’s clients.
The Rev. Steven Wetzel, pastor of St. Joachim parish, summed up the feeling of many at the meeting.
"A lot of people feel that rehabs and halfway houses always wind up in Frankford. Why is it always Frankford?" he asked.
Hoch intends to send out fliers letting Frankford residents know that a representative from NET will answer questions at the civic group’s Sept. 6 meeting, which begins at 7 p.m. in Frankford Hospital’s conference room. ••
Reporter Diane Prokop can be reached at 215-354-3036 or dprokop@phillynews.com