Refinery site developer pledges $10 million in benefits agreement for South and Southwest Philadelphia

HRP Group, which is redeveloping the former Philadelphia Energy Solutions refinery site, said this week that it had reached an agreement with community groups to commit to at least $10 million toward local improvements, including green spaces, workforce development, tree planting, among others over the next decade.

The Community Benefits Commitment announced Monday creates the Bellwether District Community Investment Fund, which will be managed by a nonprofit with $100,000 to disburse annually to start.

HRP Group said 16 community organizations have signed the commitment. That includes Bartram’s Garden, Eastwick Friends and Neighbors Coalition, Grays Ferry Community Council, and South Philadelphia Business Association. The groups are part of the company’s community advisory panel, and the agreement is a result of a year and a half of meetings.

“Since commencing our redevelopment work in 2020, we have been focused on fostering a transparent dialogue with the South and Southwest Philadelphia community, including engaging organizations that represent the diverse neighborhoods surrounding the Bellwether district through our community advisory panel,” Roberto E. Perez, CEO of HRP Group, said in a statement.

However, Philly Thrive, an advocacy group for environmental, racial, and economic justice, called the process a “sham” conducted “behind closed doors.”

The Philadelphia Energy Solutions (PES) refinery in South and Southwest Philly exploded and caught fire in 2019 and was soon shuttered. In 2020, HRP (formerly Hilco) purchased the 1,300-acre site for $225.5 million.

The company broke ground in March for the first of 54 planned buildings, which include two large warehouses to be complete by the beginning of 2025 as part of what HRP Group has branded the Bellwether District. HRP Group is part of a complex cleanup of the property that includes Sunoco, which is responsible for all pollution before 2012 when the refinery was purchased by Philadelphia Energy Solutions.

» READ MORE: EPA reaches $4.2 million settlement, largest of its kind, over 2019 Philly refinery explosion

The HRP Group commitment states that the fund will initially receive $100,000 annually and can be tapped for a range of requests, such as improvements to parks, libraries, and community centers. It can fund environmental and health programs, hunger relief, and antigun violence and housing initiatives.

The amount of contributions will increase to $150,000 if the Bellwether District receives a certificate of occupancy from the city for 3 million square feet of buildings and up to $200,000 if it receives a certificate for 6 million square feet of developed space.

The fund will be overseen by a seven-member group, including one representative from HRP Group and the rest from representatives from community organizations, two of them appointed by City Council members. Requests for funding for projects will run through the nonprofit.

As part of the agreement, HRP Group pledges to regularly provide information to the public, commit to improvements off-site, adopt sustainable building practices, promote electric vehicle use, enhance pedestrian and cyclist access, develop mass transit connections with SEPTA, plant 10,000 trees, and open public space along the Schuylkill waterfront. It says it will offer 50% of construction contracts to businesses owned by underrepresented groups, and 5% to 8% to businesses owned by women. It also says it will invest in training for green jobs, STEM field occupations, and vocational skills.

Other members of the Bellwether advisory panel include ACANA, Eastwick United Methodist Church, Empowered CDC, Friends of Penrose, Packer Park Civic Association, Point Breeze CDC, Resident Action Committee II, Southwest CDC, Universal Audenried Charter High School, United South Southwest Coalition, West Passyunk Neighborhood Association, and Wilson Park Resident Council.

Russell Shoemaker, a current member of the South Philadelphia Business Association, as well as its past president, said he liked the agreement’s focus on local communities within South and Southwest.

“It’s going to help the community in the long term,” Shoemaker said. “And I’m looking at the jobs for the community.”

HRP Group said it separately is projected to spend $280 million on demolition, decommissioning and environmental remediation of the property. It said other costs associated with purchasing the property and developing it exceed $720 million.

Last week, Philadelphia lawmakers approved new tax breaks for Hilco for the Bellwether District, overruling objections from environmental justice activists such as Philly Thrive and siding with organized labor leaders.

City Council unanimously passed the legislation to extend a Keystone Opportunity Zone (KOZ) program that already covers the site. It had been set to expire in 2033, but the developer of the site sought a 10-year extension on top of that to ensure long-term public benefits.

Philly Thrive issued a statement Tuesday after the Community Benefits Commitment was released, saying the group had sought a more “robust” community benefits agreement.

Philly Thrive said HRP Group’s commitment “includes nothing about major resident concerns as it relates to a robust clean up, public input on the warehousing plan, flood protections, and anti-displacement protections. A legally binding CBA that addresses these concerns is necessary to keep Hilco accountable to the community.”

It further called the process for negotiating the commitment “a sham.” It said that discussions between the advisory panel and the company were not transparent, and that the final draft of the commitment “was signed silently, behind closed doors.”