that WAIC was "very impressed with the plans" and that WAIC felt that the houses would be "an asset to our community." (N.T. 2-26, 2-27).
On January 28, 1971, the president of WAIC, Alice Moore, wrote to RDA in connection with the Whitman Park Townhouse Project: "We . . . do not feel that all of our questions have been thoroughly answered." (N.T. 2-32). On March 22, 1971, two PHA representatives attended a WAIC meeting to answer community questions about the project. At the same meeting, Fred Druding was elected as the new president of WAIC and a decision was made to demonstrate the next morning in opposition to the Whitman Park Townhouse Project. (N.T. 2-33).
Although a groundbreaking ceremony was conducted on December 16, 1970, actual construction did not commence until March of 1971. At 7:30 a.m. on March 23, 1971, approximately thirty women entered the Whitman site and gathered around a bulldozer and backhoe, blocking the operations of the contractor and refusing to leave the area when requested to do so. (N.T. 2-33, 2-34). On that same day, demonstrators at the Whitman site blocked a truck attempting to make a delivery to the Whitman Park Townhouse Project. (N.T. 2-34). Again, on March 25, 1971, demonstrators refused to permit a bulldozer to be operated on the Whitman site. (N.T. 2-34). As a result of these activities, Multicon filed a complaint in the Court of Common Pleas of Philadelphia County seeking injunctive relief to permit it to continue with the construction of the Whitman project. (N.T. 2-34, 3-10, 3-11). Pursuant to the complaint filed by Multicon, a preliminary injunction was issued on April 2, 1971, enjoining further interference with the construction of the project. (N.T. 2-35, 3-9, 19-7). On April 6, 1971, a meeting was held in the chambers of the Honorable Ned Hirsch, the Judge assigned to the Multicon case, to determine whether the preliminary injunction issued to Multicon should continue in effect. (N.T. 3-16, 3-17). The preliminary injunction was continued in effect with the consent of all parties until April 30, 1971. (N.T. 2-35). However, all attempts by Multicon to return to work at the site proved futile. (N.T. 2-35, 2-36, 2-39, 2-77, 2-78, 3-32, 3-33, 3-38, 3-39, 19-8, 19-9). On several occasions Multicon asked the Philadelphia police for aid in enforcing their injunction against interference with construction but were told that it was up to the Sheriff's office to enforce injunctions and that the Philadelphia police were not going to interfere by making arrests unless specifically requested by the Sheriff to do so. (N.T. 19-13, 19-16, 19-17). On April 26, 1971, Multicon obtained a writ of assistance from Judge Hirsch. (N.T. 3-36). On April 30, 1971, Multicon agreed, after a conference in Judge Hirsch's chambers, to the issuance of an order prohibiting Multicon from returning to work pending the outcome of negotiations between the parties. (N.T. 3-39, 3-40). At the conference on April 30, 1971, City Managing Director Corleto stated that Multicon would not receive police assistance. (N.T. 3-40).
Shortly thereafter, there were a series of meetings between WAIC, PHA and Multicon. (N.T. 2-78, 3-41, 3-42, 10-39). Various changes in the Whitman Park Townhouse Project were proposed to WAIC in order to settle the controversy, including opening a building in the project as a community recreation area, reserving 50% of the units for persons who were displaced by the clearance for the Whitman project, raising the income levels of those persons who would be eligible for the project and setting up a screening committee, which would include Whitman residents, to assure that those living in the project would be an asset to the community. (N.T. 3-45, 10-43, 10-44, 10-45, 10-46, 10-47). On May 17, 1971, after full discussion and consideration of the settlement proposals, WAIC voted down the final settlement offer of PHA. (N.T. 2-89, 3-45, 3-46). On May 18, 1971, Mayor Rizzo was nominated as the Democratic candidate for Mayor. (N.T. 3-53). On May 20, 1971, a meeting was held in Judge Hirsch's chambers to consider a request by Multicon that the court's order of April 30, 1971 be lifted and that Multicon be permitted to return to work on the Whitman Park Townhouse Project. (N.T. 3-55, 3-56, 19-21, 19-24, 19-25). At the May 20th meeting, Managing Director Corleto stated that the City would not provide police assistance for Multicon should it return to work. (N.T. 3-57, 19-26 to 19-28). Mr. Gordon Cavanaugh, Chairman of PHA, stated to those present at the meeting that he had been instructed by Mayor Tate to order Multicon not to resume work. (N.T. 2-91, 3-59, 19-26, 19-34, 19-36). Judge Hirsch then signed an order permitting Multicon to return to work. However, faced with a threatened lack of police assistance, Multicon decided that it would not then return to work. (N.T. 19-38). On June 3, 1971, Multicon approached HUD in Washington, D.C. and sought assistance from HUD in building the Whitman Park Townhouse Project. (N.T. 3-69, 10-73). Multicon requested HUD to exert whatever pressure it could upon the City to get the City to cooperate in building Whitman. (N.T. 3-69, 10-73). However, a HUD official in Washington, D.C. stated that HUD did not want to take any action until after the November, 1971 election in Philadelphia. (N.T. 10-74 to 10-76).
On July 14, 1971, Judge Dwyer of the Court of Common Pleas of Philadelphia County issued a permanent injunction against further interference with Multicon's construction at the Whitman site in the case of Multicon v. WAIC, No. 4515 (March Term, 1971, C.P. Phila.) (N.T. 3-80 to 3-81). On that same day, WAIC filed a lawsuit against Multicon, WAIC v. Multicon, No. 1187 (July Term, 1971, C.P. Phila.), seeking to halt further construction at the Whitman site. Trial of this lawsuit commenced on August 4, 1971 and continued through September 6, 1971. (N.T. 9-92 to 9-93).
In the early part of April, 1971, when Multicon encountered difficulties with continuing the construction at the Whitman site, Lieutenant Fencl of the Civil Disobedience squad of the Philadelphia Police Department, who had been present at the site during the demonstration, suggested that it might be helpful if Multicon placed a fence around the site, even though the original plans did not call for such a fence. (N.T. 19-39, 19-40). Multicon contacted the Philadelphia Department of Licenses and Inspections to determine what permits were required to construct a fence and was informed that no license or permit was required. (N.T. 19-40, 19-41). Multicon then contacted the Department of Streets and submitted two plans for a fence around the Whitman site. (N.T. 19-42). Multicon was told to submit a written request to the Department of Streets. Thereafter, Multicon was given oral and written permission
to build a fence which would close off Howard and Hancock Streets, two small streets which ran only through the Whitman site, but which would keep a through street, Shunk Street, open. (N.T. 9-93, 19-49, 19-52, 19-54, 48-54). Multicon proceeded to construct a plywood fence around the construction site which was torn down by persons unknown on the night of July 5, 1971. (N.T. 9-93, 19-55 to 19-56). The policeman patrolling the area saw no one tearing down the fence. (N.T. 19-56). Thereafter, Multicon engaged a contractor to build a chain link fence with metal posts in place of the plywood fence which had been destroyed. Construction of the chain link fence began on or about August 31, 1971. (N.T. 19-58). On September 1, 1971, Multicon received a violation notice from the Department of Streets in connection with the fence and was ordered to cease construction and to remove the fence. (N.T. 9-96, 19-59). Multicon was told that the fence could not be placed on the sidewalk. (N.T. 19-61). Later in the day of September 1, 1971, WAIC picketed the fence subcontractor at his home in Delaware County. (N.T. 9-96). On September 2, 1971, Mr. Marrara of the Street Department went to the Whitman site and told Multicon that they would have to remove the fence from the sidewalk. (N.T. 48-53). Mr. Marrara testified that when he went to the Whitman site he assumed that a permit had been issued to Multicon to build a fence, although he had not seen the permit. (N.T. 48-67, 48-82). He also told Multicon that they could not close off Hancock and Howard Streets with their fence. (N.T. 9-96, 9-97, 19-64). Hancock and Howard Streets were both small streets which were completely enclosed within the Whitman site and on which there was no traffic, either vehicular or pedestrial.
(N.T. 19-64, 48-75). Within one-half hour of Multicon's refusal to remove the cemented fence posts, a city work crew with jackhammers was on the scene and, at Mr. Marrara's direction, removed the fence posts. (N.T. 19-65 to 19-66). On September 3, 1971 Multicon received two additional notices from the Department of Streets. One ordered Multicon to remove its construction equipment, mobile homes, materials and debris from the bed of legally open streets, i.e., Howard and Hancock Streets. (N.T. 19-66). All of Multicon's construction equipment referred to in the notice had been on the Whitman site since April of 1971 and was located on the streets so that the equipment would not interfere with the construction of the houses on the other areas of the site. (N.T. 19-67, 19-68). The second notice required Multicon to construct concrete sidewalks adjacent to all streets around and through the Whitman site. (N.T. 19-69). Many of these sidewalks, particularly on Howard and Hancock Streets, were in bad repair when Multicon began construction in March of 1971 and were in the same condition when Multicon received its notice in September of 1971. (N.T. 22-45, 22-63, 48-61, 48-62). The damage to the sidewalks had occurred when PHA had cleared the Whitman site. (N.T. 22-52 to 22-53). Further, the City had agreed with Multicon prior to commencement of construction that the City would repair the sidewalks adjoining the Whitman Park Townhouse Project. (N.T. 22-52, 22-53). Nevertheless, Mr. Marrara took the position that Multicon, as owner of the land, was responsible for the sidewalks. (N.T. 22-53). Finally, Mr. Marrara did agree to allow Multicon, during construction on the site, to merely blacktop the sidewalks so that equipment could operate in the area. (N.T. 22-54). Mr. Marrara stated that he only enforced the requirement that all City streets be kept open and that sidewalks be fully repaired when someone had made a complaint in connection therewith, as had been done in this case. (N.T. 22-55, 22-56).
Mr. Marrara stated that he was requiring Multicon to comply in this case because it was a center of controversy. (N.T. 22-64, 48-58 to 48-60). Further, Mr. Marrara admitted that the City generally did not enforce the fence regulations in connection with high rise construction, although there was no distinction between sidewalks around high rise and low rise projects made in the City Code. (N.T. 22-56). Finally, on September 3, 1971, after a conference with Multicon and the First Deputy City Solicitor, John McNally, the Department of Streets agreed that Multicon could erect its fence around the site precisely in the location from which the Department of Streets had previously removed it. (N.T. 22-69, 22-70). Multicon submitted a written request for a permit to construct this agreed upon fence on September 3, 1971. (Exhibit P96-10). Mr. Marrara gave written approval for the fence on September 9, 1971, stating that "At no time will any permanent barricade or fence be allowed on any . . . legally open street." Exhibit P96-11, (N.T. 48-57). The permit was also conditioned upon Multicon maintaining the footways in the area. (Exhibit P96-11).
On September 10, 1971, Multicon attempted to resume its construction of the fence but was ordered by the Department of Streets to stop until all the sidewalks were blacktopped. (N.T. 9-98). However, when the paving contractor arrived at the Whitman site, he was asked by the residents picketing along the street not to work and he honored their request. (N.T. 9-98, 22-74, 22-78). Finally, on September 14, 1971, the City ordered the construction of the fence to cease because the sidewalk was not being repaired. (N.T. 9-98). The chain link fence was never built by Multicon. (N.T. 22-77, 22-78).
Throughout Mayor Rizzo's campaign for Mayor in 1971, both during the primary campaign and the general election, he publicly took the position that within the framework of the law, he would support local communities in their opposition to public housing projects proposed for their neighborhoods. (N.T. 42-75, 42-77). Mayor Rizzo testified that, "I had a strong feeling when I ran for election, it was crystal clear, that I would preserve the neighborhoods of the City at any expense . . ." (N.T. 42-82). During his campaign, Mayor Rizzo visited Seafarer's Hall in the Whitman area, and publicly pledged his support to the community in opposition to the proposed Whitman Park Townhouse Project. (N.T. 44-77). On that same day, he placed a personal telephone call to Fred Druding, the president of WAIC, pledging his support to WAIC in their opposition to the Whitman project. (N.T. 42-76, 42-77). Mayor Rizzo further testified that he did not know what type of public housing was planned for the Whitman area, and that the particular type of public housing proposed for an area did not influence his decision to support the local community in its opposition to a housing project. (N.T. 42-79). The only consideration was whether the community supported the project or opposed it and he would support that community. (N.T. 42-79). Moreover, in considering whether to support or oppose a particular public housing project, Mayor Rizzo testified that he did not consider the racial effect of his community support. (N.T. 42-83). While stating that "there is a possibility that it might affect the minorities, that they might be shortchanged . . .", he said that such an adverse racial impact would not change his position in support of the local community. (N.T. 42-83, 42-84).
After Mayor Rizzo's election in November of 1971, he had several meetings with James Greenlee, who was at that time both general counsel for RDA and Chairman of PHA. In November of 1971, Mr. Greenlee, as general counsel for RDA, gave a legal opinion to RDA, which was subsequently forwarded to HUD on November 23, 1971, that all required procedures had been followed in the planning and development of the Whitman Park Townhouse Project, and that no further public hearings were necessary. (N.T. 9-99, 14-18).
After Mayor Rizzo was elected Mayor in November, 1971, but before he took office in January, 1972, Mr. Greenlee, as Chairman of PHA, met with Mayor Rizzo to discuss the housing program in the City of Philadelphia. (N.T. 14-23 to 14-25). Mr. Greenlee testified that the Mayor's support was necessary to develop any type of housing program in order to assure passage of the necessary ordinances before City Council. (N.T. 14-26). After discussion of the proposed public housing plans, Mayor Rizzo expressed disfavor as to the sites proposed. (N.T. 14-47). Mayor Rizzo stated that he considered public housing to be the same as Black housing in that most tenants of public housing are Black. (N.T. 14-47). Mayor Rizzo therefore felt that there should not be any public housing placed in White neighborhoods because people in White neighborhoods did not want Black people moving in with them. (N.T. 14-47). Furthermore, Mayor Rizzo stated that he did not intend to allow PHA to ruin nice neighborhoods. (N.T. 14-47, 14-48). After Mayor Rizzo took office in January of 1972, he told Mr. Greenlee that because of the promise he had made to the people of South Philadelphia in the Whitman project area, he did not want to build the Whitman Park Townhouse Project and asked Mr. Greenlee, as Chairman of PHA, to prevent the building of the project. (N.T. 14-49). The Mayor wanted Mr. Greenlee to obtain passage of a resolution by PHA declaring Multicon in default and the contract between PHA and Multicon void. (N.T. 14-54, 14-55, 14-59). Mr. Greenlee informed Mayor Rizzo that cancellation of the Whitman Park Townhouse Project would require paying Multicon for its losses and would jeopardize federal funding for the City, particularly in view of the fact that Whitman had been designated as a "match" for the Morton Addition project. (N.T. 14-50, 14-52, 14-53, 14-59). Mr. Greenlee suggested that Mayor Rizzo try to obtain a compromise in connection with the Whitman project but Mayor Rizzo stated that a compromise was not possible because the people in the area felt that Black people would be moving into the area if public housing were built. (N.T. 14-55, 14-56).
Mayor Rizzo then stated to Mr. Greenlee that the Whitman Park Townhouse Project would not be built. (N.T. 14-62). Mr. Greenlee, when faced with this statement from the Mayor, informed Mayor Rizzo of what is referred to as the Phillips Amendment.
(N.T. 12-9, 14-63). This statute provided that a municipality could cancel a public housing project if in the case of Philadelphia, City Council had a public hearing in connection with the proposed cancellation and passed a resolution revoking the original authorization for the project, and agreed to repay HUD all the money it had advanced for the project and settle any claim for damages by the builder. (N.T. 14-64, 14-65). Mayor Rizzo stated that although the cost to the City of Philadelphia of using the Phillips Amendment to terminate the project was no obstacle to its use in this case, the public hearing required by the Amendment would bring people to City Hall to protest the proposed cancellation and hence was an unacceptable procedure. (N.T. 14-65).
During the early part of 1972, there were numerous meetings between Multicon and the new Deputy Mayor Philip Carroll, who had been assigned by Mayor Rizzo to the problems surrounding the Whitman Park Townhouse Project. (N.T. 12-15, 24-3).
Mr. Carroll, during these meetings, told Multicon that the City did not want the Whitman project built. (N.T. 10-83). During this period, Mr. Carroll was pressed by WAIC to support their opposition to the Whitman Park Townhouse Project. (N.T. 24-15, 24-16, 24-53).
On May 25, 1972, Multicon again sought help from HUD to exert pressure on the City in connection with the building of the Whitman Park Townhouse Project. (N.T. 4-62).
Multicon requested that HUD take over the Whitman project. (N.T. 4-63). However, HUD stated that it was not its policy to take over projects and Multicon felt that HUD, although sympathetic, was not going to be of assistance in completing the project. (N.T. 4-63).
Therefore, Multicon told HUD that they would return to Philadelphia and commence construction of the project. (N.T. 4-63).
On April 28, 1972, RDA passed the following resolution, numbered 7973:
RESOLUTION AUTHORIZING ACTION RE: DEFAULT.
BE IT RESOLVED, By the Redevelopment Authority of the City of Philadelphia that General Counsel is authorized to take such action as may be necessary in connection with any default between Multicon Properties, Inc., provided, however, there is a representation from the Philadelphia Housing Authority of the default in its Contract for development of housing in the Whitman Redevelopment area, Whitman Urban Renewal area.
PHA never made a representation of default to RDA. (N.T. 12-16). However, on April 28, 1972, the same date as the above RDA resolution was passed, PHA Board Chairman James Greenlee wrote to Francis Meyer, former Director of RDA, informing RDA that Multicon would be in default of its contract with PHA on April 29, 1972, as follows:
This is to notify you that on April 29th Multicon Properties, Inc., will be in default in its agreement with the Philadelphia Housing Authority in regard to the parcel owned by Multicon and the Whitman Urban Renewal Area. The agreement was entered into on October 29, 1970, and Article IV, Section A, on Page 4, commits Multicon to complete its obligations within 18 months.
Multicon has not only failed to meet its obligation, but has given the Authority no indication of when, if ever, it intends to resume building. (N.T. 12-6, 12-7, 14-66).