Final Draft Petition For Conservancy Reading Rail

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Filed and Attested by the

SCIOLI TURCO, INC., & 915 SPRING : Office of Judicial Records


GARDEN ASSOCIATES, LP, : COURT 21 JAN 2021
OF COMMON 12:04 pm
PLEAS
E. MEENAN
: PHILADELPHIA COUNTY
Petitioners, :
vs. : CIVIL TRIAL DIVISION
:
PHILADELPHIA & READING RAILROAD :
CO., and READING INTERNATIONAL, INC., : January Term, 2020
:
901 SPRING GARDEN STREET :
PHILADELPHIA, PA 19123 :
OPA/BRT: 875101750 : No. ____
:
Respondent. :
:

ORDER TO SHOW CAUSE

AND NOW, this ____ day of _____________, 2021, upon consideration of the
Petition for the Appointment of a Conservator for the property located at 901 Spring
Garden Street, Philadelphia, PA 19123 pursuant to the Abandoned and Blighted Property
Conservatorship Act, 68 P.S. § 1101 et seq. (P.L. 1672, No. 135), it is hereby ORDERED
and DECREED that:
1. The Petitioners shall promptly:
(a) Post a copy of the Notice of Filing a Petition for the Appointment of a
Conservator at the property.

(b) Serve a copy of the Notice, Petition and all exhibits, and this Order on
the Respondent, as required by Pa. R.C.P. 400.1 and file a return of
service as soon as possible upon service. The Petitioners must
demonstrate to the Court that all necessary parties have been identified
and served prior to the hearing.

(c) Mail a copy of the Notice, Petition and all exhibits, and this Order by
registered or certified mail on the City of Philadelphia 1515 Arch Street,
15th Floor, Philadelphia, PA 19102; the Philadelphia Department of
License and Inspection at 1401 Arch Street, 11th Floor, Philadelphia, PA
19102; and the Philadelphia Gas Works, 800 West Montgomery
Avenue, Philadelphia, PA 19122. The Petitioner shall file returns of
service as soon as possible upon service. Service may also be
accomplished as provided by Pa. R.C.P. 400.1.

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(d) Mail a copy of the Notice, Petition and all exhibits, and this Order to all
lienholders and other secured creditors as identified in the Petition, by
regular or certified mail, to their last known address, and shall file a
return of service as soon as possible upon service. Service may also be
accomplished as provided by Pa. R.C.P. 400.1. The lienholders and
other secured creditors as identified in the Petition are:

No lienholders have been identified.

(e) Mail a copy of the Notice, Petition and all exhibits, and this Order to all
interested parties as identified in the Petition, by regular or certified mail,
to their last known address, and shall file a return of service as soon as
possible upon service. Service may also be accomplished as provided
by Pa. R.C.P. 400.1.

City of Philadelphia
Law Department
1515 Arch Street, 15th Floor
Philadelphia, PA 19102

Consolidated Rail Corporation


1717 Arch Street
Philadelphia, PA 19103

Southeastern Pennsylvania Transportation Authority


1234 Market Street
Philadelphia, PA 19107

2. As required by 68 P.S. §1104(c), the Petitioner shall file a lis pendens with the
City of Philadelphia Department of Records and a copy with the Office of
Judicial Records.

3. Respondent shall file an Answer to the Petition within 20 days of service.

4. The City of Philadelphia, lienholders, other secured creditors, and any other
party of interest” as defined in 68.P.S. §1103 may file a Petition to Intervene.

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5. A hearing will be held on , 2021 at : .M.
in Courtroom ___, City Hall, to determine whether the conditions for
conservatorship have been met, whether a conservator should be appointed,
who should be appointed as conservator and/or when other appropriate relief
should be granted.

BY THE COURT:

, J.

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KLEHR HARRISON HARVEY BRANZBURG LLP
Gaetano P. Piccirilli, Esq.
Attorney I.D. No. 93522
Monica Clarke Platt, Esq.
Attorney I.D. No. 311445
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Telephone: 215-569-3699
gpiccirilli@klehr.com
mplatt@klehr.com
Attorneys for Petitioners

SCIOLI TURCO, INC. :


8 Penn Center :
1628 JFK Boulevard, Suite 800 :
Philadelphia, PA 19103, :
:
And : COURT OF COMMON PLEAS
: PHILADELPHIA COUNTY
915 SPRING GARDEN ASSOCIATES, LP, :
990 Spring Garden Street, Ste. 100 :
Philadelphia, PA 19123 : CIVIL TRIAL DIVISION
:
Petitioners, :
vs. : January Term 2021
:
PHILADELPHIA & READING RAILROAD : No. ____
CO., and READING INTERNATIONAL, INC., :
901 SPRING GARDEN STREET :
PHILADELPHIA, PA 19123 :
OPA/BRT: 875101750 :
:
Respondent. :
:

NOTICE OF FILING OF A
PETITION FOR THE APPOINTMENT OF A CONSERVATOR

A petition has been filed under the Abandoned and Blighted Property Conservatorship
Act, 68 P.S. §§ 1101-1111 (2008), for appointment of a Conservator to take possession
of and rehabilitate or demolish the property located at:

901 SPRING GARDEN STREET - OPA/BRT: 875101750

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A hearing on the Petition for Conservatorship will be scheduled by the Court, and in
addition to this Notice, the Petitioner will provide to you a copy of that Order, together with
the Petition and any attached exhibits. A copy of this Notice (without the Order, Petition,
or Exhibits) will also be posted at the property.

YOU ARE RECEIVING THIS NOTICE BECAUSE PUBLIC RECORDS


REVEAL THAT YOU MAY BE ONE OF THE FOLLOWING:

Record Owner. If you are the record owner and want to be heard in this matter, you
must file an answer as required by the Court order referenced above. If you do not, the
court may proceed without you. A conservator may be appointed to take possession of
the property and incur expenses that will be a lien against the property. You will still be
responsible for your obligations as record owner, including expenses incurred by the
conservator. You may lose your rights through sale of the property.

Lienholder/Secured Creditors. If you are a lienholder or other secured creditor and


want to be heard in this matter, you must file a petition to intervene as required by the
Court order referenced above and may seek to be appointed as the conservator. If you
do not, the court may proceed without you. A conservator may be appointed to take
possession of the property and incur expenses that will be a lien against the property.
That lien may have priority over your lien or other rights. You may lose your rights through
sale of the property.

The City of Philadelphia. As the political subdivision in which the property is located,
the City of Philadelphia may file a petition to intervene as required by the Court order
referenced above and may seek to be appointed as the conservator.

Consolidated Rail Corp. and Southeastern Pennsylvania Transportation Authority.


As companies or public entities responsible for the provision and maintenance of certain
rail facilities, including those not within the public realm, it is believed that you ought to be
placed on notice of this proceeding.

You should take this paper to your lawyer at once. If you do not have a lawyer or
cannot afford one, go to or telephone the office below to find out where you can
get legal help.

Philadelphia Bar Association


Lawyer Referral and Information Service
One Reading Center
Philadelphia, Pennsylvania 19107
(215) 238-6333 TTY (215) 451-6197

Lleve esta demanda a un abogado immediatamente. Si no tiene abogado o si no


tiene el dinero suficiente de pagar tal servicio, vaya en persona o llame por telefono
a la oficina cuya direccion se encuentra escrita abajo para averiguar donde se
puede conseguir asistencia legal.

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Control No.: 21011983
Asociacion de Licenciados de Filadelfia
Servicio de Referencia e Informacion Legal
One Reading Center
Filadelfia, Pennsylvania 19107
(215) 238-6333 TTY (215) 451-6197

__/s/ Gaetano P. Piccirilli__________


Gaetano P. Piccirilli, Esq.
Attorney for Petitioners

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Case ID: 210101327
Control No.: 21011983
KLEHR HARRISON HARVEY BRANZBURG LLP
Gaetano P. Piccirilli, Esq.
Attorney I.D. No. 93522
Monica Clarke Platt, Esq.
Attorney I.D. No. 311445
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Telephone: 215-569-3699
gpiccirilli@klehr.com
mplatt@klehr.com
Attorneys for Petitioners

:
SCIOLI TURCO, INC. :
8 Penn Center :
1628 JFK Boulevard, Suite 800 :
Philadelphia, PA 19103, :
:
And : COURT OF COMMON PLEAS
: PHILADELPHIA COUNTY
915 SPRING GARDEN ASSOCIATES, LP, :
990 Spring Garden Street, Ste. 100 :
Philadelphia, PA 19123 : CIVIL TRIAL DIVISION
:
Petitioners, :
vs. : January Term 2021
:
PHILADELPHIA & READING RAILROAD : No. ____
CO., and READING INTERNATIONAL, INC., :
901 SPRING GARDEN STREET :
PHILADELPHIA, PA 19123 :
OPA/BRT: 875101750 :
:
Respondent. :
:

NOTICE TO DEFEND

You have been sued in court. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after the complaint and
notice are served, by entering a written appearance personally or by attorney and filing in
writing with the court your defenses or objections to the claims set forth against you. You
are warned that if you fail to do so the case may proceed without you and a judgment
may be entered against you by the court without further notice of any money claimed in
the complaint or for any other claim or relief requested by the plaintiff. You may lose
money or property or other rights important to you.

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YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT
HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE
SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.

PHILADELPHIA BAR ASSOCIATION


Lawyer Referral and Information Service
1101 Market Street, 11th Floor
Philadelphia, Pennsylvania 19107
(215) 238-1701

AVISO

Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas


expuestas en las páginas siguientes, usted tiene veinte (20) dias de plazo al partir de la
fecha de la demanda y la notificación. Hace falta asentar una comparencia escrita o en
persona o con un abogado y entregar a la corte en forma escrita sus defensas o sus
objeciones a las demandas en contra de su persona. Sea avisado que si usted no se
defiende, la corte tomará medidas y puede continuar la demanda en contra suya sin
previo aviso o notificación. Además, la corte puede decidir a favor del demandante y
requiere que usted cumpla con todas las provisiones de esta demanda. Usted puede
perder dinero o sus propiedades u otros derechos importantes para usted.

LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI NO TIENE


ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO,
VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE
ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR
ASISTENCIA LEGAL.

ASOCIACIÓN DE LICENCIADOS DE FILADELFIA


Servicio De Referencia E Información Legal
1101 Market Street, 11th Floor
Filadelfia, Pennsylvania 19107
(215) 238-1701

__/s/ Gaetano P. Piccirilli__________


Gaetano P. Piccirilli, Esq.
Attorney for Petitioners

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MAJOR NON-JURY
EQUITY ACTION
ASSIGN PURSUANT TO GENERAL
ORDER 2009-1

KLEHR HARRISON HARVEY BRANZBURG LLP


Gaetano P. Piccirilli, Esq.
Attorney I.D. No. 93522
Monica Clarke Platt, Esq.
Attorney I.D. No. 311445
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Telephone: 215-569-3699
gpiccirilli@klehr.com
mplatt@klehr.com
Attorneys for Petitioners

SCIOLI TURCO, INC. :


8 Penn Center :
1628 JFK Boulevard, Suite 800 :
Philadelphia, PA 19103, :
:
And : COURT OF COMMON PLEAS
: PHILADELPHIA COUNTY
915 SPRING GARDEN ASSOCIATES, LP, :
990 Spring Garden Street, Ste. 100 :
Philadelphia, PA 19123 : CIVIL TRIAL DIVISION
:
Petitioners, :
vs. : January Term 2021
:
PHILADELPHIA & READING RAILROAD : No. ____
CO., and READING INTERNATIONAL, INC., :
901 SPRING GARDEN STREET :
PHILADELPHIA, PA 19123 :
OPA/BRT: 875101750 :
:
Respondent. :
:

PETITION FOR THE APPOINTMENT OF A CONSERVATOR

Petitioners Scioli Turco, Inc. (“Scioli Turco”) and 915 Spring Garden Associates,

L.P. (“915 Spring Garden,” and together with Scioli Turco, “Petitioner” or “Petitioners”)

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respectfully petitions this Honorable Court for equitable relief by appointing a conservator

to take possession of, rehabilitate, or demolish certain premises, and in support thereof

avers as follows:

JURISDICTION AND VENUE

1. This Court has jurisdiction pursuant to the Abandoned and Blighted

Property Conservatorship Act, P.L. 1672, No. 135, 68 P.S. § 1101 et seq. (2008) (“Act

135”).

2. Venue is proper pursuant to §1104(a) of Act 135 because the Property

(defined below) is in Philadelphia County, Pennsylvania.

PROPERTY

3. The property subject to this Petition is located at 901 Spring Garden Street,

Philadelphia, Pennsylvania 19123 (the “Property”).

4. Upon information and belief, the Property is owned by Reading

International, Inc., the successor in interest to Philadelphia & Reading Railroad Co.

(collectively, “Reading”).

5. The Property is designated with the Office of Property Assessment

(“OPA”)/Board of Revision of Taxes as No. 875101750.

6. The Property is improved with a masonry improvement/structure that was,

at one time, a rail station owned and operated by the Philadelphia & Reading Railroad

Company and/or the Reading Railroad. Upon information and belief, the rail station was

the former Spring Garden Station. For purposes of this petition, the now-defunct Spring

Garden Station will be referred to as the “Defunct Spring Garden Station.”

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7. As detailed infra, Reading is the successor in interest to the Reading

Railroad.

8. Upon information and belief, Reading is a business corporation organized

and/or existing under the laws of the State of California with a principal place of business

located at 5995 Sepulveda Blvd., Suite 300, Culver City, CA 90230.

9. The Property sits at the intersection of 9th and Spring Garden Street and is

wedged between Ninth Street to the east and a former Philadelphia & Reading Railroad

rail line known as the “Reading Viaduct” or “Viaduct” to the west.

10. It is believed, and therefore averred, that the Viaduct ran through the

Defunct Spring Garden Station and terminated at the Reading Rail Terminal. A pictorial

depiction of the Property and Defunct Spring Garden Station is set forth at Figure 1 infra.

Figure 1- Site from Spring Garden Looking North

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11. Reading has admitted that it is the fee owner of the Property and all

improvements thereon, including the Defunct Spring Garden Station.

12. Indeed, on or about July 7, 2020, in the action titled Rojs v. City of

Philadelphia, et al., Philadelphia Court of Common Pleas No. 200500250, Reading

International, Inc., “admitted” that “at all material times hereto, [it] did own, maintain,

control the property located at 901 Spring Garden Street,” i.e. the Property.

13. Further, as Reading is a publicly traded company, it must file certain forms,

reports, and documents with the Securities and Exchange Commission (the “SEC”). As

detailed in Paragraphs 35-42 infra, Reading acknowledges its ownership, possession,

and control over the Viaduct and many properties along/adjoining the Viaduct. Based

upon Reading’s public admissions regarding the Property, it is believed that the Property

is included within Reading’s claims to the Viaduct and assorted properties.

14. Despite reasonable efforts including, but not limited to, a title search and

other research with Philadelphia’s Department of Records, Petitioner has been unable to

locate the exact deed vesting ownership of the Property in Reading. However, as detailed

in Paragraphs 10-13 supra and Paragraphs 35-42 infra, Reading has acknowledged and

admitted its ownership of the Property.

PETITIONER

15. Scioli Turco is a party in interest as defined by §1103 of the Act.

16. Scioli Turco is a non-profit corporation located in Philadelphia.

17. Scioli Turco’s purpose is community development through the remediation

of blight and blighted properties in Philadelphia.

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18. This Honorable Court has appointed Scioli Turco to be conservator of

several properties within a five-mile radius of the Property, including 125 North 10th

Street, 814-16 South 19th Street, 1748 South Mole Street, 753 South 8th Street, 744

Saint Albans Street, 1727 Snyder Avenue, 1314 Sigel Street, 1525 Manton Street, and

1214 South 17th Street.

19. In addition, Scioli Turco is the successful petitioner in the matter Scioli

Turco, Inc. v. 500 Loft, LLC, Philadelphia Court of Common Pleas No. 161200232, which

involves the former Willow Street Steam Generation Plant (the “Steam Plant

Conservatorship”) located a quarter mile from the Property. The owner of the property

involved with the Steam Plant Conservatorship is currently repairing/remediating blighting

conditions under “conditional relief” consistent with Act 135.

20. Petitioner 915 Spring Garden is a party in interest as defined by §1103 of

the Act as it is the fee owner of real property within 2,000 feet of the Property. More

specifically, 915 Spring Garden is a mixed-use commercial building located immediately

adjacent to the Viaduct.

RESPONDENT AND RELEVANT PROPERTY HISTORY

21. Upon Petitioner’s knowledge, information, and belief, obtained after

reasonable efforts, the Property is owned by Reading. Despite reasonable efforts,

Petitioner has not been able to locate the vesting deed. It is believed, and therefore

averred, that Property is included in a larger deed that includes portions of the Viaduct.

OPA’s records indicate that the transfer was dated in or around March 1976.

22. Reading is a corporate entity, and thus has not vacated the Property to

perform military service in time of war or armed conflict or to assist with relief efforts during

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a declared federal or state emergency as a member of the United States Armed Forces

or reserve.

23. The Property is not held in trust for the federal government and is not

regulated under the United States Housing Act of 1937, 50 Stat. 888, 42 U.S.C. §1437

et. seq.

24. The Reading Railroad was a railroad located in southeastern Pennsylvania

and transported anthracite coal from the coal regions of Pennsylvania into Philadelphia.

25. Reading Railroad also operated passenger rail lines in and around

Philadelphia.

26. It is believed and therefore averred that the Defunct Spring Garden Station

was constructed as part of Reading Railroad’s passenger operations.

27. Upon information and belief, the Defunct Spring Garden Station was built in

the early 20th Century. For a time, Reading Railroad’s passenger rail operations at the

Defunct Spring Garden Station competed with other passenger rail operations in and

around Philadelphia.

28. By 1971, because of increased competition from highways and truck-based

transport, Reading Railroad’s fortunes declined. In 1971, Reading Railroad filed for

bankruptcy protection.

29. In 1976, large portions of Reading Railroad’s rail interests were sold to

Consolidated Rail Corporation (“Conrail”), leaving the Reading Railroad with hundreds of

real estate parcels as legacy assets, including rights of way such as the Viaduct.

30. Based upon available public records, it is believed that ownership of the

Property was retained by the Reading Railroad.

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31. Today, Reading is the successor-in-interest to the Reading Railroad and

operates as Reading International, Inc.

32. In sharp contrast to its industrial past, Reading is a private company focused

on the development and operation of movie theaters and other entertainment venues.

33. Reading describes itself as a “diversified company focused on the

development, ownership and operation of entertainment property assets in three

countries.” This includes the United States.

34. Reading’s operations include a “real estate” segment that includes “real

estate development and the rental or licensing of retail, commercial and live theater

assets comprising some 22,101,800 square feet of land and approximately 879,000

square feet of net rentable area.”

35. Reading trades on the NASDAQ as RDI and RDIB.

36. As a publicly traded company, it must report certain information to the SEC.

37. Several of Reading’s recent SEC filings are found on Reading’s website

under “Investor Relations” and “SEC filings.” In 2019, Reading reported approximately

$276 million in gross revenue. See Reading 2019 Annual Report:

https://s24.q4cdn.com/917758434/files/doc_financials/quarterly/2019/q4/q4-2019-form-

10k.pdf.

38. In its SEC “Current Report Filing”/8-K filing dated December 11, 2020,

Reading boasts that its United States “Real Estate Portfolio” includes the “Reading

Viaduct and adjacent properties in Philadelphia.”

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Figure 2 - US Real Estate Portfolio per 8-K

See Reading December 2020 8-K: https://investor.readingrdi.com/financials/sec-

filings/sec-filings-details/default.aspx?FilingId=14556767.

39. Further detail regarding Reading’s Philadelphia holdings, including the

Property reflects that Reading owns the Viaduct and “24 Taxable Parcels . . . surrounding

or adjacent to the Viaduct. Id.

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Figure 3 - Additional Detail from 8-K

40. Reading maintains ownership and control of the Property.

41. Per Reading, it has no present development plan though is in “dialogue with

the City about a potential re-development of the Viaduct.” Per Reading, all properties

along the Viaduct are “unencumbered.” Id.

Figure 4 Philadelphia Holdings per 2019 10-K

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42. In Reading’s 2019 10-K/“Annual Report” filing with the SEC, Reading wrote

to investors “[w]e also own various properties relating to our historic railroad business,

including the Reading Viaduct in central Philadelphia.” See Reading 10-K, supra.

43. Reading’s public reporting to investors paints a colorful portrait of the

company’s holdings, including the Property.

44. Yet while Reading awaits investment and/or opportunity for the Property, it

ignores the fact that the Property sits abandoned, blighted, and derelict, and has for the

decades of Reading’s ownership.

45. Due to Reading Railroad’s ongoing neglect, the Property has become a

gathering place for human suffering and desolation.

46. The conditions of blight and abandonment are discussed in detail infra. It is

worth noting that Reading has the resources to maintain the Property and has chosen not

to.

CONDITIONS FOR CONSERVATORSHIP

47. The Property has not been legally occupied for at least twelve months

before the date of the filing of this Petition. See Affidavit of B. Grossman, attached hereto

as Exhibit 1.

48. During the sixty-day period prior to the date of the filing of this Petition, the

Property has not been actively marketed, no “For Sale” sign has been placed on or in

front of the Property, nor has the Owner advertised the Property through distributed print

advertisements, print or electronic media, through engagement of a real estate

professional to place the Property in a Multiple Listing Service or to otherwise market the

Property. Id.

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49. The Property is not subject to an existing foreclosure action. In fact, per its

SEC filings, Reading’s Philadelphia properties are unencumbered.

50. Reading has not acquired the Property within the preceding six months prior

to the date of the filing of this Petition.

51. The Property is dangerous and dilapidated, covered with graffiti, debris,

garbage, and vegetation, and is open and unsecured. Id.

52. Photographs of the Property speak for themselves, as follows:

Figure 5 -9th Street Elevation, street-level trash, debris, and vegetation

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Figure 6 – Elevated/Station-level conditions, including graffiti, debris, trash, vegetation, and evidence of encampment.

Figure 7 - Elevated/Station-level conditions including encampment, trash, vegetation, and debris

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Figure 8 - Elevated/Station-level conditions including evidence of encampment

53. The Property is open and unsecured and, therefore, is (a) subject to illegal

entry and (b) an attractive hazard to children. Id.

54. The Defunct Spring Garden Station is a public nuisance and/or needs

substantial rehabilitation.

55. No rehabilitation has taken place during the previous 12 months. Id.

56. The Property has major building components that need to be replaced,

including roof structures, ceilings, wall, or floor structures, plumbing systems, heating

and/or air conditioning systems, and electrical systems. Id.

57. By way of example only, Defunct Spring Garden Station’s roof illustrates the

dire condition of the Property. Indeed, the roof, including substrate, is entirely rotted with

trees and vegetation protruding therefrom. This condition is illustrated in Figure 9:

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Figure 9 - Roof from 9th Street

58. The Defunct Spring Garden Station is unfit for human habitation. As a result

of the roof and other conditions, the Defunct Spring Garden Station is open to the

elements including rain, snow, and cold. Upon information and belief there are no utilities,

including heat, at the Defunct Spring Garden Station. Id.

59. Despite these horrendous conditions, the Property includes what appears

to be a homeless encampment on the upper, Viaduct-level of the Defunct Spring Garden

Station (the “Encampment”). Id.

60. The Property, including the Defunct Spring Garden Station, is subject to

unauthorized entry/access. Beyond the pictorial evidence shown supra, neighboring

residents and/or business occupants have witnessed individuals risk life and limb to climb

the rail-bridge from street level to gain access to the Viaduct and the Defunct Spring

Garden Station. Once on the Viaduct, the surface is uneven and has holes that a person

could fall through to the street level. Id.

61. Petitioner’s agents have witnessed individuals scale the Viaduct-bridge to

gain access to the Defunct Spring Garden Station and the Encampment. Id.

62. Reading has not taken any steps to clean, close, or maintain the Property.

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63. Evidence of drug and/or alcohol abuse is widespread and is readily

apparent from the Encampment as shown on the photographs supra. It is believed the

Property is being used as a “shooting den” for illicit narcotics. Id.

64. Being multi-level and offering seclusion from public view, the Property is an

attractive nuisance for illicit purposes, including vagrancy, drug use, and vandalism.

65. Vermin, trash, garbage, debris, and vegetation have created potential

health and safety hazards, and Reading has failed to do anything to address these issues.

Id.

66. To no avail, surrounding businesses and property owners have repeatedly

sought the help of the City of Philadelphia, Department of Licenses (L&I) and Inspections

and other local leaders.

67. The appearance and conditions of the Property negatively affect the

economic well-being of residents and businesses near the Property; decrease property

values; and cause loss of business. The Owner has failed to take reasonable and

necessary measures to remedy the appearance and conditions.

68. Per L&I, the Property is in substantial violation of the Property Maintenance

Code (“PMC”) and has been deemed and “unsafe structure,”1 as follows:

Case No. Date Added Date Updated Description of Violation Status

691141 06/18/19 09/03/20 Architect / Engineer Services Open

691141 06/18/19 09/03/20 Unsafe Structure Open

691141 06/18/19 09/03/20 Exterior Structure Unsafe Cond. 8 Open

691141 06/18/19 09/03/20 Exterior Structure Unsafe Cond. 7 Open

679119 04/08/19 - Vacant Structure License Open

1
L&I violations related to the Property are attached hereto as Exhibit 2.

15
PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
679119 04/08/19 - Exterior Area Sanitation Open

679119 04/08/19 - Door and Window Vacant Open

679119 04/08/19 - Exterior Area Sidewalks Open

679119 04/08/19 - Exterior Area Graffiti Open

679119 04/08/19 - Exterior Area Weeds Open

573398 02/17/17 -- Vacant Structure License Open

69. The Property is blighted and meets the statutory standards for

conservatorship for the reasons outlined above.

70. For the safety of the public, including those illegally or improperly accessing

and residing in the Encampment, the Property must be cleared, repaired, and closed.

71. The Property needs substantial rehabilitation and remediation.

72. No rehabilitation has taken place during the previous twelve months prior to

the date of the filing of this Petition.

73. The vacancy and conditions of the Property materially increase the risk of

fire to the Property and adjacent properties. In fact, neighbors have reported at least one

fire at the Property.

74. Reading has failed to take reasonable and necessary measures to secure

the Property.

75. Herein, Petitioners request a pre-hearing inspection of the interior of the

Property to document the aforementioned issues more fully and to develop a remedial

plan.

76. Upon Petitioner’s knowledge, information, and belief, obtained after

reasonable efforts, including an examination of public records Petitioners have not

16
PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
identified any lienholders or secured creditors with a potential interest in the Property.

However, Petitioners believe that the City of Philadelphia, Consolidated Rail Corp., and

Southeastern Pennsylvania Transportation Authority may be interested parties.

PROPOSED CONSERVATOR

77. As a result of its work with the Steam Plant Conservatorship, Scioli Turco

was made aware of the Property and its blighted nature by local business owners and

representatives.

78. While Reading has the resources to repair and maintain the Property, it

does not appear interested in doing so. Therefore, Scioli Turco recommends that it be

appointed Conservator.

79. Scioli Turco is a non-profit corporation located in Philadelphia. See

Certification to Serve as Conservator, attached hereto as Exhibit 3.

80. Scioli Turco has the financial resources to rehabilitate the Property to a level

that would allow for the abatement of blighting conditions. Given the extent of the issues,

however, Scioli Turco will be required to borrow against the Property and/or obtain public

and private funds to contribute to the needs of the Property. Further, given the

Encampment that has developed and grown as a result of Reading’s inaction and

inattention, Scioli Turco will be required to coordinate with other not-for-profit services

providers and agencies.

81. Petitioner and its members have extensive experience in rehabilitation of

blighted properties. See id.

82. Petitioner has been appointed conservator and has completed several

projects within five miles of the Property. See id.

17
PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
83. Petitioner’s Preliminary Plan (hereinafter, “the Plan”) is attached as Exhibit

4. The Plan (with initial cost estimates) outlines the potential scope of work required to

remediate the Property and bring it into compliance with all municipal codes and duly

adopted plans for the area in which the Property is located. As stated above, due to the

significant blight and environmental issues, as well as the size of the Property, there are

unique circumstances which call for a pre-hearing property inspection (including the

interior).

84. Petitioner anticipates obtaining federal, state, or other grant funding and

anticipates borrowing additional funds as needed from public or private entities or

individuals.

85. As part of its due diligence, Petitioner has preliminarily attracted the interest

of the Commonwealth of Pennsylvania’s Industrial Reuse Program as a potential source

of funding.

86. It is believed that as part of its efforts to remediate blighting conditions at

the Property, Petitioner will need to interface with social service organizations to help

relocate residents of the Encampment and provide them with assistance. Id.

87. Until a full inspection of the Property has occurred, Petitioner retains to right

to supplement or amend any plan.

NOTICE & LIS PENDENS

88. Upon filing this Petition and pursuant to §1104(d)(6), Petitioner shall attempt

to provide notice to Respondents by personal service and to all political subdivisions in

which the Property is located, including the City and County of Philadelphia, the

Philadelphia Department of Licenses and Inspections, and all lienholders and other

18
PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
secured creditors by registered mail to the last known address of each and by posting a

copy of the notice on the Property.

89. Upon filing this Petition, Petitioner requests the Prothonotary index a Notice

of Lis Pendens in the office of the Philadelphia Recorder of Deeds, a copy of which is

attached as Exhibit 5.

WHEREFORE, Petitioners respectfully request the following relief:

1. Issue an Order to Show Cause as to why Scioli Turco, Inc. should not be

appointed Conservator of the Property pursuant to the Act.

2. A pre-hearing inspection of the interior and exterior of the Property.

3. Upon such hearing, issuance of an Order appointing Scioli Turco, Inc.

Conservator of the Property.

4. Award Petitioners their attorneys’ fees, costs, and such other sums

consistent with the Act.

5. Such other and additional relief as may be just and appropriate.

Respectfully submitted,

Dated: January 21, 2021 _/s/ Gaetano P. Piccirilli


Gaetano P. Piccirilli, Esq.
Monica Clarke Platt, Esq.
KLEHR HARRISON HARVEY
BRANZBURG LLP
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Attorneys for Petitioners

19
PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
EXHIBIT 1

PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
EXHIBIT 2

PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

Case ID: 210101327


Control No.: 21011983
1 of 3 1/21/2021, 9:32 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov

/OPA/AbatementsExemptions/Pages/Homestead.aspx)

(http://www.phila.gov/prisons/Facilities/Pages/default.aspx)

(https://prodpci.etimspayments.com/pbw/include

/philadelphia_parking/input.jsp)

(https://secure.phila.gov/WRB/WaterBill/Account/GetAccount.aspx)

(https://ework.phila.gov/revenue/)

(http://www.philadelphiastreets.com/sanitation

/residential/collection-schedules)

(http://serve.phila.gov/)

(http://phlcouncil.com/)
Case ID: 210101327
Control No.: 21011983
2 of 3 1/21/2021, 9:32 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

Case ID: 210101327


Control No.: 21011983
1 of 3 1/21/2021, 9:33 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov

/OPA/AbatementsExemptions/Pages/Homestead.aspx)

(http://www.phila.gov/prisons/Facilities/Pages/default.aspx)

(https://prodpci.etimspayments.com/pbw/include

/philadelphia_parking/input.jsp)

(https://secure.phila.gov/WRB/WaterBill/Account/GetAccount.aspx)

(https://ework.phila.gov/revenue/)

(http://www.philadelphiastreets.com/sanitation

/residential/collection-schedules)

(http://serve.phila.gov/)

(http://phlcouncil.com/) Case ID: 210101327


Control No.: 21011983
2 of 3 1/21/2021, 9:33 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

Case ID: 210101327


Control No.: 21011983
1 of 3 1/21/2021, 9:33 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov

/OPA/AbatementsExemptions/Pages/Homestead.aspx)

(http://www.phila.gov/prisons/Facilities/Pages/default.aspx)

(https://prodpci.etimspayments.com/pbw/include

/philadelphia_parking/input.jsp)

(https://secure.phila.gov/WRB/WaterBill/Account/GetAccount.aspx)

(https://ework.phila.gov/revenue/)

(http://www.philadelphiastreets.com/sanitation

/residential/collection-schedules)

(http://serve.phila.gov/)

(http://phlcouncil.com/)
Case ID: 210101327
Control No.: 21011983
2 of 3 1/21/2021, 9:33 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

Case ID: 210101327


Control No.: 21011983
1 of 3 1/21/2021, 9:34 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=691141&key=5...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov

/OPA/AbatementsExemptions/Pages/Homestead.aspx)

(http://www.phila.gov/prisons/Facilities/Pages/default.aspx)

(https://prodpci.etimspayments.com/pbw/include

/philadelphia_parking/input.jsp)

(https://secure.phila.gov/WRB/WaterBill/Account/GetAccount.aspx)

(https://ework.phila.gov/revenue/)

(http://www.philadelphiastreets.com/sanitation

/residential/collection-schedules)

(http://serve.phila.gov/)

Case ID: 210101327


Control No.: 21011983
2 of 3 1/21/2021, 9:34 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:25 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:25 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:26 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:26 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:26 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:26 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:27 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:27 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:27 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:27 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 4 1/21/2021, 11:28 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=679119&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

Case ID: 210101327


Control No.: 21011983
2 of 4 1/21/2021, 11:28 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=573398&key=545309,15834775&addr...

Case ID: 210101327


Control No.: 21011983
1 of 3 1/21/2021, 11:28 AM
L&I Property History https://li.phila.gov/#details?entity=violationdetails&eid=573398&key=545309,15834775&addr...

(http://www.phila.gov/311)
(https://twitter.com/philly311)

(http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx)

(http://www.phila.gov/prisons/Facilities/Pages/default.aspx)

(https://prodpci.etimspayments.com/pbw/include/philadelphia_parking/input.jsp)

(https://secure.phila.gov/WRB/WaterBill/Account/GetAccount.aspx)

(https://ework.phila.gov/revenue/)

(http://www.philadelphiastreets.com/sanitation/residential/collection-schedules)

Case ID: 210101327


Control No.: 21011983
2 of 3 1/21/2021, 11:28 AM
EXHIBIT 3

PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983
EXHIBIT 4

PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
PRELIMINARY PLAN FOR REHABILITATION
901 SPRING GARDEN STREET
PHILADELPHIA, PA 19123
BRT/OPA NO. 875101750

General Strategy

It has been Scioli Turco, Inc.’s (“Scioli Turco”) ongoing plan to rehabilitate each blighted
property for which it serves as conservator by eliminating the visible blight, curing the active
violations and bringing the property up to the code required for vacant properties. In each
instance, with many notable exceptions, Scioli Turco does not plan to fully develop the property,
but rather facilitate such remediation efforts.

By opting for partial redevelopment, Scioli Turco is generally able to market the property as a
“clean envelope” to buyers and developers. This reduces the time of each project, and by
extension, provides buyers, developers, neighbors, and communities with greater opportunity to
restore their neighborhoods.

It is Scioli Turco’s belief and experience that this strategy provides the best mechanism to
transform abandoned and blighted buildings into productive reuse throughout the City of
Philadelphia. Further, it is Scioli Turco’s experience that this strategy provides the Owner with a
greater return than a full rehabilitation.

Background Experience: Beginning in 2011, Scioli Turco has served as conservator for more
than two dozen properties in Philadelphia and has successfully rehabilitated and rebuilt more
than three million dollars in market value real estate. Projects have included two- and three-story
single-family homes, condominiums, a vacant real estate lot, luxury townhomes, and commercial
property. Projects have included property demolition, interior gutting, new construction,
renovation and rehabilitative construction, and cleaning and sealing. All projects are insured and
done to a very high standard. Addresses include:

814 S. 19th Street 3215 Memphis Street


816 S. 19th Street 3318 Bleigh Avenue
1331 S. Alder Street 1314 Sigel Street
753 S. 8th Street 1432 S. 16th Street
744 St. Albans Street 1748 S. Mole Street
1727 Snyder Avenue 1214 S. 17th Street
3446 Ryan Avenue 5005 McKean Avenue
5250 Wayne Avenue 528 Ritner Street
528 Westview Street

PHIL1 9303250v.1
Case ID: 210101327
Control No.: 21011983
Specific Strategy for 901 Spring Garden Street

901 Spring Garden Street, Philadelphia, PA (the “Property”) is a former train station that has been
abandoned for many years and has all of the attendant problems. It is Scioli Turco’s plan in this
instance to rehabilitate the “Property by eliminating the blight, curing any active violations, and
bringing the Property up to the code required for vacant properties. See attached pro forma to
supplement this plan.

The following plan addresses only the exterior and visible portions of the Property. Until the Scioli
Turco is able to inspect and evaluate the interior of the Property, it is unable to accurately assess
what remediation efforts must take place. However, based upon experience and past expenses,
Scioli Turco anticipates that the work required for the entirety of the Property will be
approximately $415,000.1

Anticipated Exterior Work:


1. Windows and doors
a. Scope: Repair or replace as needed;
b. Cost: $1,000 per opening for 40 openings
c. Total cost: $40,000
2. Structural engineer
a. Cost: $20,000
3. Masonry
a. Scope: Remove and replace masonry as needed; repaint exterior
b. Cost: $125,000.00
4. Roof
a. Scope: Inspected and brought up to code. Typically requires the
removal of the existing roof and repair of sheathing and joists. The
reason for this is that code permits no more than two (2) roofs in the
aggregate to be applied. Bracing likely will also be needed.
b. Cost: $75,000
5. Cleanup and remediation
a. Scope: It is unknown at this stage whether any environmental
remediation may be necessary given the Property’s status as a former
train station. However, the Property is strewn with debris throughout
and in places has been overtaken with vegetation, and will require
significant cleanup.
b. Cost: $100,000
6. Sidewalks
a. Scope: Repair and replace as necessary. The Property has already been
the subject of a personal injury suit.
b. Cost: $20,000
7. Secure property
a. Cost: $15,000.

1
Scioli Turco has prepared these estimates based on costs and work performed in past projects and based on a visual
inspection of the exterior of the Property only. Should interior inspection reveal that additional work is necessary to
cure the blight, Scioli Turco will undertake such work and these estimated costs will likely increase.

PHIL1 9303250v.1
Case ID: 210101327
Control No.: 21011983
In addition to the above remediation costs, if appointed conservator, Scioli Turco, Inc. intends to
work with the City of Philadelphia and Center City District for assistance in relocating the
homeless individuals currently using the Property for shelter. Center City District has estimated
that its costs for this engagement will be $20,000.

PHIL1 9303250v.1
Case ID: 210101327
Control No.: 21011983
Proforma expense sheet for property at 901 Spring Garden Street

Expenses Percent Amount  $ Selling price TBD


Legal fees Klehr, Harrison $35,000.00 Attorney Square feet 6440
Real Estate Commissions 6% Realtor
Transfer Taxes 2% City
Real Estate Taxes City $866.48 OPA
Homeless outreach Center City District $20,000.00 Center City District
Conservator fee 20% Act 135
Utilities PWD/PGW/PECO $3,900 estimated
Secure property $15,000.00
Construction Costs* $380,000.00

Total expenses $454,766.48
Net revenue (loss) TBD based on sale price

* includes estimated costs for roof work, masonry, sidewalk repair, environmental cleanup, windows, doors, and structural engineering

Case ID: 210101327


Control No.: 21011983
EXHIBIT 5

PHIL1 9262387v.2
Case ID: 210101327
Control No.: 21011983
KLEHR HARRISON HARVEY
BRANZBURG LLP
Gaetano P. Piccirilli, Esq. (PA ID No. 93522)
gpiccirilli@klehr.com
Monica Clarke Platt (PA ID No. 311445)
mplatt@klehr.com
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Telephone: 215-569-3699

Attorneys for Petitioners, Scioli Turco, Inc. and


915 Spring Garden Associates, LP

SCIOLI TURCO, INC. & 915 SPRING GARDEN


ASSOCIATES, LP,

COURT OF COMMON PLEAS


Petitioners,
PHILADELPHIA COUNTY
v.
January Term, 2021
PHILADELPHIA & READING RAILROAD CO.,
No. _____
AND READING INTERNATIONAL, INC.,

Respondent.

PRAECIPE FOR LIS PENDENS

To the Prothonotary:

Kindly index the above-captioned action as a lis pendens against the following real

property: 901 Spring Garden Street, Philadelphia, Pennsylvania 19123, BRT/OPA No.

875101750, which is owned by respondents Philadelphia & Reading Railroad Co., and

Reading International, Inc., and a description of which real property is attached hereto as

Exhibit A. I certify that this action affects title to or other interests in the above-described

real property.

PHIL1 9303248v.1
Case ID: 210101327
Control No.: 21011983
Respectfully Submitted,

Dated: January 20, 2021 By: /s/ Gaetano P. Piccirilli


Gaetano P. Piccirilli, Esq.
Monica Clarke Platt, Esq.
KLEHR HARRISON HARVEY
BRANZBURG LLP
1835 Market Street, 14th Floor
Philadelphia, PA 19103
Attorneys for Petitioners, Scioli Turco, Inc. 915
Spring Garden Associates, LP

2
PHIL1 9303248v.1
Case ID: 210101327
Control No.: 21011983
Case ID: 210101327
Control No.: 21011983

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