Philadelphia struggles to settle land dispute over Mormon temple site

The City of Philadelphia has offered to settle a dispute over land for a proposed Mormon temple near Logan Square.

For a price.

Developer Stephen Klein told City Council Wednesday that the Redevelopment Authority (RDA) wanted 25 percent of any proceeds from his sale of nearly two acres on Vine Street to the Church of Jesus Christ of Latter-day Saints.

His answer: "Totally unacceptable."

Klein had bought the property from the RDA in 1987 for $3.7 million. In the process, he agreed to develop the tract, between 17th and 18th Streets, within five years. But Klein's numerous attempts to build something came to naught. In 2008, the RDA declared him in default and last December took him to court to get its land back.

Klein was asked to testify Wednesday by a Council committee worried about the future of the Mormon project. He said the RDA either didn't want it to materialize "or they only want it to happen after exacting an unwarranted and unprecedented monetary payment."

Terry Gillen, the RDA's executive director, was also called by the committee. She declined to discuss details of the dispute, but assured members that Mayor Nutter is "committed to figuring out a way to make this happen." The two sides, she said, are in "active negotiations."

The $70 million project would create 300 construction jobs. Councilman Darrell L. Clarke said the temple would be yet another showpiece in what he called the "Museum Mile" of the Benjamin Franklin Parkway.

"We really need to move on this as quickly as possible," said Clarke, whose district includes the project.

Gillen said Klein was not being singled out. The RDA's move to take back his land was, she said, part of a broader policy by the Nutter administration to put pressure on developers with long-overdue projects.

She added that the agency had been "hugely successful" in prodding developers to move on projects - or risk losing their investments.

Gillen said that 59 default notices have been sent out since 2008, resulting in 23 developers beginning or even completing construction. Five more have gotten extensions from the RDA, and 24 have returned property to the agency. Seven deals are still under review.

Over the years, Klein tried to launch six projects, each mixing residential and commercial space. Mormon officials approached him about his property in 2009 - after he had been notified of the RDA default.