Caleb Zimmerman needed a new place to crash, fast.
It was August 2019, and the 27-year-old was finishing a remodel with his brother, Micah, on a Strawberry Mansion house. He had purchased the property with plans to rent it out post-renovations and was living there in the meantime.
With the remodel nearing completion, Zimmerman wasn’t seeing any interesting properties to take on as his next project — and next place to live.
In desperation, he turned to Craigslist. And there, listed for $85,000, was the three-bedroom Kensington rowhouse he’s called home ever since.
“I bought it the next day” for $82,500, he said, confirming, no, that’s not hyperbole. “I knew the location was incredible and was just going to keep getting more incredible.”
Even before walking through the two-story house, Zimmerman had an idea of what he wanted this next project to look like. Though the house needed a full gut remodel, he saw that the structure could accommodate his vision of an open floor plan with a floating staircase and basement steps concealed by a trap door on a pulley system. It was, to be sure, a huge project, but Zimmerman knew he could get it done.
The kitchen, which was built by a family friend, Aden Stoltzfus.The entrance to the home and the living area.
“I feel like the Mennonites have it in their genes,” said Zimmerman, who’s of Mennonite heritage and who just wrapped a stint as an instructor of philosophy at the University of Pennsylvania. “I’m primarily a philosopher, but I wanted to kind of prove my chops, I guess, prove that I can also do things with my hands.”
Zimmerman and his brother moved in that summer and began work the first day of Christmas break. He took a leave of absence for a semester from Temple University, where he was working on his Ph.D. in philosophy, to see the project through.
Everything in the house needed to be replaced, so that meant everything needed to come out.
“The kitchen was an atrocity,” Zimmerman recalled. “There were mice running around.”
Custom wooden shelving is fastened to an exposed brick wall in the kitchen.
For demolition, which included removing the floors and pulling down the lathe and plaster throughout the house to reveal its underlying brick, guys in the neighborhood would often stop by to see if they could lend a hand for an hourly wage, Zimmerman said. One guy, in particular, “has so much sweat equity in the house that anytime he knocks and needs some help” Zimmerman opens his door to him to this day.
Throughout the project, the Zimmerman brothers lived in two of the three bedrooms upstairs with Micah as Zimmerman’s right-hand helper and renter. The first night he moved in, Zimmerman said, he slept on the floor. It was just the beginning of the long discomfort he’d endure living among the renovation, but it encouraged him to push to get the project done.
For rebuilding, Zimmerman drew on his Mennonite heritage and connections. He and Micah brought in wood from an Amish mill for kitchen beams and the custom staircase. A family friend, Aden Stoltzfus, made the kitchen — his daughter Hadassah Stolzfus recently spoke to The Inquirer about her own home renovation, also featuring a kitchen created by her dad.
The home’s centerpiece of engineering is a trap door that conceals the basement and opens with a pulley system and remote-controlled actuator. It was built by Gabe Stoltzfus, Hadassah’s cousin. Gabe also handled the bathroom renovation, where Zimmerman planned to remove the tub and install a standing shower with a glass enclosure to make the small room feel larger.
Zimmerman opens the trap door to his basement. He removed a wall with a door to the basement and created more open space by incorporating the trap door.Zimmerman installed a glass-walled shower to make the bathroom feel more spacious.
Zimmerman had some experience laying hardwood floors, so he installed the new wood floors that run throughout the house. A friend, Kevin Bucher, helped install some trim, including, in a feat of patience, a piece that he cut to mirror the topography of the brick wall in what is now Zimmerman’s office.
Zimmerman did bring in some outside help to install drywall, seal the fireplace, and rewire the house. The renovation cost about $80,000 in total.
By the fall of 2020, “it was livable,” Zimmerman said, though he had lived there all along. His brother Micah stayed for a while, too, but moved out in 2022.
An upright bass is on display in the guest room.Exposed brick and wood paneling on the wall in the guest room.
Now Zimmerman entertains often and said people always say his red refrigerator is their favorite aspect of the house. Knowing how much custom behind-the-scenes work went into every aspect of the property, he receives that comment about a store-bought appliance with some chagrin. It’s only because he knows how much was accomplished before that final, finishing flourish.
Reflecting on the renovation, “I doubt that I will do anything like this again,” he said, “but I wanted to know I could do it.”
Is your house a Haven? Nominate your home by email (and send some digital photographs) at properties@inquirer.com.
The biggest jump in Philadelphia’s property assessments this year occurred in Kensington, a measure that means many homeowners in the long-struggling neighborhood are likely to see higher taxes amid a concerted effort by the city to clean up the area.
That is according to an Inquirer analysis of recently released property assessments of single-family homes, which found that, citywide, there was a 3% median change in valuations from the 2025 tax year, the last time there was a mass reassessment.
That increase is far more modest than the widespread jump in valuations that homeowners saw two years ago, which captured multiple years of real estate growth and the volatile post-pandemic market.
What remains the same: who will be most affected.
The Inquirer’s analysis of this year’s property assessment data shows that low-income neighborhoods near gentrifying areas saw the sharpest jumps in valuations compared with the rest of the city.
The four areas that saw the largest percentage increases in median assessments — Kensington, Mantua, Grays Ferry, and Kingsessing — all border more gentrified neighborhoods like Fishtown, University City, and Point Breeze. The results of the analysis are a further sign that market pressures in higher-income areas are pushing into pockets of the city that have long been primarily home to Black and brown working-class residents.
Of the eight neighborhoods that saw the largest increases between the 2025 and 2027 tax years, five have median annual household incomes around $40,000 or less, according to an analysis of U.S. Census data. The federal poverty level is $33,000 for a family of four.
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In a statement, officials with Mayor Cherelle L. Parker’s administration noted that many homeowners in those five neighborhoods are benefiting from a popular city tax break. The city said that the median 2027 value in those five neighborhoods is $123,600, so for many homeowners in those areas, the median taxable assessed value is just $23,600.
That is because of the homestead exemption, a tax break for homeowners who live in their house as their primary residence that exempts the first $100,000 in home value from property taxes. Homeowners must sign up to be included in the free program.
At least 60% of homeowners in those neighborhoods have signed up for property tax relief programs, according to the city.
James Aros Jr., the chief assessor of the Philadelphia Office of Property Assessment, and Revenue Commissioner Kathleen McColgan said enrollment rates in property tax relief, including the homestead exemption and multiple tax freeze programs, are “encouraging.”
They said the city will “build on this progress through extensive targeted outreach, community partnerships, and efforts to make enrollment as simple and accessible as possible.”
The current property tax rate is 1.3998% of assessed value, which has not changed for nearly a decade. The revenue is split between the city and the Philadelphia School District.
Rising home values in Kensington
Citywide, the steepest increase in valuations was in Kensington, where the median property value jumped 15.3%, from $115,700 in the 2025 tax year to $133,400 now. That median increase would translate to a roughly $250 annual property tax hike.
That comes after Parker’s administration in 2024 launched a multipronged effort to address the long-entrenched open-air drug market in Kensington, which is the epicenter of the city’s opioid crisis and a site of sprawling homelessness.
In this 2021 file photo, a glass building at J and Tioga sits near a beer store in Kensington.
Some neighborhood leaders have watched with anxiety as luxury housing developers and out-of-town investors gobbled up properties in the neighborhood, fearing that poorer residents and middle-class homebuyers may be priced out.
City Councilmember Quetcy Lozada, a Democrat who represents the 7th Council District, which includes parts of Kensington, said she knew speculators from outside the area would want to make it “the next gentrified neighborhood” once the city changed its strategy to more aggressively clean up trash and improve public safety.
But Lozada said there are not enough programs specific to Kensington aimed at preventing displacement as a result of rising property values, especially as the city is investing millions of dollars a year to improve the neighborhood. She said her office is exploring additional tax relief measures.
“I’m going to do whatever I have to do to make sure that residents who have lived in that community can stay there, can raise their families there,” Lozada said. “We have witnessed what has happened on the southern end of the district, where there has been rapid gentrification.”
In this March file photo, City Councilmember Quetcy Lozada stands in Council chambers during Mayor Cherelle L. Parker’s budget address.
Lozada also said rising property values in Kensington are part of why she has been “so careful with projects presented to me” and has prioritized what she sees as equitable development in the neighborhood — at times to the chagrin of developers who think she has been too restrictive.
“I’m all about people making a return,” she said, “but you can’t continue to do it on the backs of poor people.”
The 3100 block of Arbor Street in Philadelphia on Tuesday, July 7, 2026.
Continuing change in pockets of West Philly
There were also significant property value increases in parts of West Philadelphia.
The median increase in Mantua, the neighborhood north of University City, was the second highest in the city, at 15%, according to The Inquirer’s analysis. The median increase was 12% in Kingsessing, the neighborhood south of University City that in 2025 saw the largest jump of any neighborhood in Philadelphia.
Newly developed buildings along Fairmount Avenue in the neighborhood of Mantua in Philadelphia, Pa., on Thursday, Jan. 23, 2025.
Councilmember Jamie Gauthier, a Democrat who represents West Philadelphia and has made preventing displacement a key initiative, said that there has long been racial bias in the city’s property assessments and that the city must “get serious” about protecting low-income homeowners by revamping its system.
“There has to be a higher level of urgency in making sure that the city doesn’t have a hand in pushing out all of these homeowners that make Philadelphia what it is,” Gauthier said. “It’s unconscionable for us to destabilize our neighborhoods and the longtime homeowners who live there because we didn’t take enough care to make sure that our process was fair and equitable.”
For too long, she said, city officials have said they intended to examine the property assessment practices and identify improvements. In 2024, Parker convened a task force to study the process.
Aros told Council in April that the task force’s report was “being finalized.” He said OPA would look to implement recommendations from the report, including conducting more regular reassessments and improving property-level data such as property condition.
The city is also planning to hire an outside consultant to examine its mass appraisal practices, according to city records. The analyst will be responsible for drafting a report by the end of this year.
Deputy creative director John Duchneskie contributed to this article.
When chef Evan Snyder and business partner Julian van der Tak began searching for a home for Emmett a few years ago, they envisioned a restaurant that could do it all: an ambitious chef’s counter, hearth cooking, and a broad exploration of Mediterranean flavors. The Girard Avenue space they found wasn’t large enough. So when Emmett opened in early 2025, they focused on becoming a neighborhood restaurant first.
This fall, the partners plan to open Jean (pronounced “gene”), a 15-seat fireside tasting-menu restaurant above Emmett at 161 W. Girard Ave., the former home of destinations such as Modo Mio and Cadence. Rather than expand across town, they chose to build the missing piece just upstairs.
The team from Emmett (from left): managing partner Julian van der Tak, general manager Marissa Chirico, chef-partner Evan Snyder, and chef de cuisine Antonio Pizzo.
“We could have opened another restaurant somewhere else,” van der Tak said. “But the best part is, I can walk 12 steps and be in both restaurants.”
For nearly two years before opening Emmett, Snyder and van der Tak staged pop-ups while searching for a property that could accommodate both a neighborhood restaurant and a chef’s counter. They never found one.
“The original idea was always a larger restaurant that combined what upstairs will be with what downstairs became,” van der Tak said. “It was always meant to have a chef’s-counter feel and blend these cultures, but we simply couldn’t do it here because of the space.”
Rather than seeking a new location, they decided to finish the concept in the former apartment above the restaurant.
“In many ways, upstairs is the concept we originally imagined for Emmett,” Snyder said. “Downstairs became what it is because it was our first restaurant, because of the demands of the neighborhood, and because initially people didn’t yet trust us.”
Jean will center on a seven-foot wood-burning hearth, where Snyder and chef de cuisine Antonio Pizzo plan a 12-course tasting menu inspired by French North Africa — particularly coastal Morocco — and the southern Mediterranean. Emmett’s menu draws more heavily from the eastern Mediterranean and the Levant.
For van der Tak, who grew up in southern France, the menu reflects childhood memories shaped by the country’s colonizing of Morocco, Algeria, Tunisia, and Lebanon.
“Especially in southern France, those influences are deeply ingrained in the food, the personalities, and the people,” he said. “It’s essentially become part of the southern French identity.”
A tagine that begins cooking as guests are seated, and roasts over the hearth throughout dinner, will be served family-style with Egyptian flatbread, dips, ferments, and pickles after a series of smaller courses.
Snyder believes customers are ready for something more ambitious. “We’ve earned that trust,” he said. “Now we’re asking guests to trust us a little more and let us present a more ambitious experience.”
Despite the tasting-menu format, the partners insist that Jean won’t feel formal. Inspired by Henri Matisse’s Moroccan paintings, the dining room is designed as a fireside parlor with custom ceramics by Lauren Rider and Megan Stover, glassware from Philadelphia’s Remark Glass, and artwork by local artist Jacob Des.
Wine director and general manager Marissa Chirico will oversee an Old World-focused wine program alongside a small selection of batched classic cocktails. Snyder expects the menu to start around $225, though pricing has not been set.
“I don’t want to be the guy who opens charging $300 just because everyone else does,” Snyder said. “We’re still a family-run, community-driven restaurant. I don’t want people to feel gouged. I want them to leave feeling they got value.”
Construction has continued without interrupting Emmett’s nightly service. Before Jean opens, Snyder plans to preview the concept through collaborative pop-ups in other cities.
“When people hear ‘tasting menu,’ they assume you’re chasing something,” van der Tak said. “That’s not what this is. The opportunity came along, financially it made sense, and what’s important to us is that the restaurant feels approachable and never stuffy.”
The name continues a family tradition. Emmett is named for Snyder’s son. Jean is the middle name of van der Tak’s son and also honors his maternal grandfather and paternal grandmother.
“It’s just a name with a lot of family history for me,” van der Tak said. “Continuing the theme from downstairs, it’s a very deeply personal project for us. We want to carry on our family legacy and do something that’s really important and close to home.”
Editor’s note: This story contains spoilers for season one of “Task.”
The cast and crew of the HBO crime drama Task will descend on Manayunk next week to begin filming Season 2, according to notices posted around the neighborhood and on a local Facebook group.
The company Random Productions wrote that filming is scheduled for July 7-9, when certain streets will be closed to accommodate trailers, equipment vehicles, cast, and crew members. Parking restrictions, however, will begin earlier on specific blocks, starting Sunday, July 5.
“We will try to keep these closures as minimal as possible and will not prevent residents from accessing driveways or parking lots,” the notices state.
Actors Tom Pelphrey (left) and Mark Ruffalo, from HBO’s “Task,” do interviews before the Philadelphia Eagles game against the Los Angeles Rams at Lincoln Financial Field on Sunday, Sept. 21, 2025, in Philadelphia.
What fans need to know
The Mark Ruffalo-led series from Mare of Easttown creator and Berwyn resident Brad Ingelsby will again center on the dogged and empathetic FBI agent Tom Brandis, this time as he spearheads a new task force where, as the logline reads, “the deeper the operation runs, the harder it is to tell who’s the target.”
Brandis’ rival this season will be Philadelphia DEA agent Eddie Barnes, played by Mahershala Ali, the Oscar winner who starred in Moonlight, Green Book, and the 2019 HBO crime show True Detective. (Season 1 saw Brandis face off against robber Robbie Prendergrast, played to critical acclaim by Ozark actor Tom Pelphrey, who grew up in Howell Township, N.J.)
Joining Ali as fellow DEA agents are Pillion and Harry Potter actor Henry Melling, who will play a hothead named Brennan Boylan; The Assassination of Gianni Versace star Edgar Ramirez, cast as second-in-command Miguel Contreras, described as a “devoted family man … torn between duty and guilt”; and Star City actor Adam Nagaitis, playing loyal agent Luke Clemmons.
On the FBI side, 1923 actor Aminah Nieves will play Nataly Zamora, who Deadline described as “a no-nonsense FBI agent and dedicated young mother who fights hard to protect the community that raised her.”
It’s not yet clear whether other cast members from Season 1 will return. That includes Silvia Dionicio and Phoebe Fox, who played Brandis’ daughters, and Andrew Russel, their incarcerated brother who killed their mother accidentally during a schizophrenic episode. The emotional and bittersweet finale concluded with Brandis testifying at his son’s trial and affirming that he would be welcome home whenever he’s released.
Tom Brandis (Mark Ruffalo) hugs his family after his son Ethan’s parole hearing in the “Task” finale.
Season 1 received millions of viewers — and, of course, a strong Philadelphia following — with the finale alone reaching an audience of 4 million in the U.S. within three days of airing. HBO has said that Task was one of its “top three fastest-growing, debut seasons.” Viewership overall outpaced Ingelsby’s Emmy-winning Mare of Easttown, which broke HBO viewership records in 2021 and may return for a second season. (It’s likely that Task, too, will receive Emmy Awards attention when nominations are announced July 8.)
Returning to Task behind the scenes are South Philadelphia native Jeremiah Zagar, who was a director and executive producer on Season 1; the son of late Philadelphia mosaicist Isaiah Zagar will serve as executive producer. Ruffalo will again executive produce the show, alongside Ingelsby and others, including Mare of Easttown executive producer Mark Roybal.
The first season of Taskfilmed in and around Philadelphia, including Delaware, Montgomery, and Chester Counties, and further out into rural Pennsylvania. Creator Inglesby has proudly said that the show is a Delco story, and his team aims for authentic portrayals of the region, down to the signature Delco accent.
Part of that effort means hiring local crews and background actors. In Season 1, the production hired 777 Pennsylvanians as cast and crew for 177 days, investing $230 million in the regional economy.
Actor Mark Ruffalo (right in black suit) shoots for the HBO series ‘Task’ at the Delaware County Government Center and Courthouse on June 17, 2024.
Last fall, Task received a record-breaking $49.8 million tax credit from Pennsylvania, the highest amount the state has ever granted a single production. HBO estimates that Season 2 will bring some 3,700 jobs to the state and the studio expects to invest an estimated $194.1 million in Pennsylvania’s economy as it pays for local crews and hotel accommodations, among other expenses.
Kensington-based casting agency Heery Loftus has led local casting efforts for the show, most recently announcing a call for “Latino men who can portray organized crime figures” and “men and women of all ethnicities who can portray law enforcement personnel.”
A premiere date for Season 2 has not yet been announced.
“Task” showrunner Brad Ingelsby and star Mark Ruffalo on set.
What Manayunk residents need to know
Per two notices from Random Productions, “No Parking” signs will be posted on these streets during these dates:
Sunday, July 5 at 6 p.m. to Wednesday, July 8 at 11 p.m.:
Cresson Street between Cotton Street and Gay Street
Monday, July 6 at 6 p.m. to Wednesday, July 8 at 11 p.m.:
Grape Street between Silverwood Street and Cresson Street
Levering Street between Cresson Street and Silverwood Street
Cotton Street between Cresson Street and Main Street
Main Street between Cotton Street and Levering Street
Grape Street between Main Street and Cresson Street
Levering Street between Main Street and Cresson Street
Wednesday, July 8 at 6 p.m. to Thursday, July 9 at 10 p.m.:
Dupont Street between High Street and Smick Street
Baker Street between Dupont Street and Green Lane
Baker Street between Dupont Street and Mallory Street
These streets will be closed during these dates and approximate times:
Tuesday, July 7 from 7 a.m. to 10 a.m. and Wednesday, July 8 from 7 a.m. to 3 p.m.:
Grape Street between Silverwood Street and Cresson Street
Cresson Street between Cotton Street and Gay Street
Thursday, July 9 from 6 a.m. to 1 p.m.:
Dupont Street between Smick Street and High Street
Please note: This breakdown of parking restrictions and street closures may not be comprehensive as the company released multiple neighborhood notices.
🍦 Stella’s Ice Cream out of Idaho (yes, Idaho) just opened on Front Street in Fishtown/Kensington, and Bea has the early scoop.
🍦 Winners, rocking a feel-good message, is new on South Street in Graduate Hospital. As Kiki Aranita says, Winners’ appeal is more than just the flavors, like Sweet Success S’mores.
🍦Our guide to our favorite ice cream is right here.
Critic Craig LaBan is back from his annual Jersey Shore exploration, and he’s shaking the sand out of his notebook. In Part One of his roundup, he heads to the mainland to find some gems. Read that here.
Looking ahead: Part Two, Craig’s reviews from Long Beach Island and thereabouts, will be online this weekend. On July 11, he’ll share his discoveries from points farther south in Part Three.
Ember & Ash on East Passyunk Avenue will be closed for an undetermined period after smoke and flames shot up through the ventilation last week just after closing time. No injuries were reported.
This weekend will see the debut of Broad Street Beer Garden at LOVE Park, the first phase of a planning reuse of the so-called flying saucer building at 16th and JFK. Here’s the long history of the city landmark.
We munched on fried silverfish that reminded us of French fries in Little Saigon, Argentine empanadas in West Philly, and a vegan po’ boy in Old City that tasted like the original.
Scoops
Intrigue! Albert Zheng, whose holdings include Javelin in Fairmount, is backing a yet-to be-named dual concept on the way to 808 Chestnut St., formerly a Dunkin’ Donuts. In front, the feature will be wagyu omakase, while the rear will be what he calls a Cambodian speakeasy. He says it’s six or seven months out.
Mylar Bar, a cocktail bar inspired by the spirit of South Philly’s Dino’s Party Center, is expected to open later this summer from hospitality veterans Liv Arterbridge and Gina Piccari. They bought the former building at Ninth and Morris Streets where Dino’s sold balloons, decorations, and party supplies for decades before it moved across the street. “We want the whole thing to feel like a party,” Arterbridge said. “Nostalgic, fun, a little silly, intentionally unserious — but not a theme bar,” Piccari said. Cocktails will include martinis, punches, and classic drinks, alongside draft beer and familiar favorites. A full kitchen, led by chef Colin White, formerly of Sally and Emmett, will serve shareable “party snacks” and larger plates. They plan to offer late-night desserts, so food will be available until 1 a.m. with the bar wrapping at 2. Arterbridge, whose resume includes Cry Baby, Poison Heart, and a.bar, met Piccari while working at Boot & Saddle, where Piccari was manager. Piccari is now behind the bar at Le Virtù.
Restaurant report
Sixteen restaurants, bakeries, cafes, and bars — including Lillian’s, shown above — are opening in July. Read on for the rundown.
Penny’s Bagels, on its way (for the last two years) to 212 Kings Highway East in Haddonfield, will hand out 250 red, white, and blue bagels on July 3 at the borough’s parade. The shop is eyeing an August opening, says owner Chris Fetfatzes.
Maru, a fast-casual Korean-inspired restaurant from David Backhus and the team behind the now-closed Oori, is expected to open in August in what is now Collective Coffee & Bakery, which Backhus also owns, at 2922 Conestoga Rd. in Glenmoore. Maru’s menu will feature Korean fried chicken sandwiches, wings, tenders, house-made mochi doughnuts, and specialty coffee, while continuing to serve Collective Coffee and honor existing coffee subscriptions.
Briefly noted
Ota-Ya in Newtown has announced that Friday will be its last day after 30 years with the retirement of owners Jeff Wong and Cindy Tam.
PETA is launching its “Nice Cream Trail,” highlighting 10 shops across the state serving vegan ice cream, and there are five local spots on the list: Dreams Ice Cream Factory in Glenside, Lu & Aug’s in Ardmore, the Main Freeze in Lansdale, Milk Jawn in South Philadelphia and Northern Liberties, and Scoop DeVille in Center City and Queen Village. The first Pennsylvania resident to complete the trail by visiting all 10 participating shops through August will win a vegan ice cream party with PETA’s “iScream” truck for themselves and up to 50 guests. Details are here.
Two local BBQ chefs, Matt Groark (Medford Lakes, N.J.) and Maxwell McGibbon (Newark, Del.), are competing on Food Networks’ Pitmasters, premiering July 13 at 9 p.m.
Diner en Blanc registration is still open. This year’s version of the pop-up picnic is Aug. 20.
Miller’s Ale House, in the shopping center next to the Home Depot in Springfield, Delaware County, closed this week after 13 years, while Fishtown is abuzz with speculation that Bottle Bar East, which opened at 1308 Frankford Ave. around the same time in late 2012, has closed. The phone is down, and owners could not be reached for comment
When is Adda ever going to open in Fishtown? — Rich C.
True, Adda has been a long time coming, since I initially wrote about it in June 2025 with an end-of-2025 target. Adda — from New York City’s Unapologetic Foods, whose establishments are acclaimed for their bold, no-holds-barred approach to Indian cooking — is now looking at a late-fall opening at 1700 Frankford Ave., the new building across from the Fishtown post office.
Corrigendum: Reader Stephanie points out that Kalaya is the third Philadelphia restaurant, not the second, to win the James Beard Award for outstanding restaurant, as I wrote two weeks ago. Zahav was the first in 2019, while Friday Saturday Sunday won in 2023.
📮 Have a question about food in Philly? Email your questions to me at mklein@inquirer.com for a chance to be featured in my newsletter.
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The Olney man at the center of a sprawling investigation into the disappearance of at least two women in recent years was taken into federal custody Tuesday and will be detained until trial.
Eugene Albert Horsch, 44, was arraigned Tuesday on a federal firearms charge — a case that relates to his alleged actions on June 19, when a U.S. Park Police officer near Independence Hall reported seeing a black BMW parked in a restricted zone and next to a fire hydrant.
The officer reported hearing a woman in the vehicle express fear of being injured and then seeing pairs of scissors in the front seat area. A search of the vehicle, in part based on Horsch’s actions, led to the discovery of a switchblade and a glass pipe in Horsch’s pants and two firearms under the car’s front seat.
Horsch — who was not allowed to possess guns because of felony convictions — had been charged for that same conduct last week by the Philadelphia District Attorney’s Office and he was being held in a city jail on $500,000 bail. City prosecutors also charged him with having cocaine, heroin, and marijuana in his car.
But the federal gun charge — and the decision by U.S. Magistrate Judge Pamela A. Carlos to detain him until trial — effectively ensures that Horsch will not be able to post bail or secure his release as his case proceeds. And that will give authorities time to continue investigating him in connection with questions potentially far more serious than illegally possessing guns.
In the days after Horsch was arrested with the firearms in Center City, investigators who searched his decrepit rowhouse in Olney found another gun and materials to grow marijuana.
But more concerning, they also discovered a variety of more unusual materials — including barrels of chemicals in the basement, urns holding the cremated remains of at least one of his relatives, documents tied to at least two women who have been missing for years, and a handwritten letter that described hurting people and mentioned the serial killer Ted Bundy.
Officials have said police have not discovered any human remains in the house. But investigators did find a significant amount of blood inside, sources told The Inquirer this week, although it was not clear whether it was human blood. And authorities have been testing a variety of materials they’ve recovered from the house, such as the chemicals in vats stored in his basement.
The probe is also seeking to learn more about potential connections between Horsch and at least two missing women with ties to his home.
One is Blair Tonzelli, who might have worked there as a home health aide and who was reported missing in Kensington in 2023. Some of Tonzelli’s friends told police after she disappeared that they worried that something bad had happened to her and that they had told police that Horsch was a “sociopath,” according to police documents obtained by The Inquirer.
In addition, when Horsch was arrested in Center City earlier this month, a woman who was with him falsely identified herself as Tonzelli and later told police that she did so because Horsch had given her a fake identification with Tonzelli’s name.
The other missing woman is Amy McHale, the ex-wife of Horsch’s father, who was last heard from at the Olney property in 2016. Horsch’s father, Raymond “R.C.” Horsch — now deceased — was an erotic photographer and drug manufacturer who had published several works of fiction, including one described as an “autobiographical memoir of a caring, empathetic serial killer.”
Eugene Horsch, during his brief appearance in federal court Tuesday, said little beyond responding to routine legal questions. He will likely be held at Philadelphia’s Federal Detention Center as his case proceeds toward trial.
His attorney, Jerome Brown, said afterward that he didn’t believe Horsch had harmed any of the women at the center of the investigation.
“As far as I know, I’d be shocked if [police] found any harm related to those missing persons at that location,” Brown said.
Daniel Martino didn’t set out to build an empire of pie shops. He just wanted somewhere to get coffee without leaving the neighborhood.
When he bought his home in Port Richmond in 2013, the closest coffee shop was an hour round trip, he said. “Selfishly, I thought, I can put a little coffee shop here.”
The takeout window at Little Susie’s flagship location at 2532 E. Lehigh Ave.
And what goes better with a cup of coffee than pie? He had a recipe he’d been baking for family get-togethers.
Seven years after Martino opened Little Susie’s Coffee & Pie in the building next door to his house, his modest idea has grown into four Philadelphia locations, with a fifth expected to open Friday at the former Pop’s Bun Shop in Bella Vista, a franchise headed to Milwaukee, and plans for additional shops in Fairmount and Northern Liberties. All his stores run from takeout windows, requiring little more than coffee stations and electric ovens.
Today, the company employs 28 people and turns out about 1,200 pies a day from a bakery occupying two cramped rooms in the corner rowhouse on Lehigh Avenue.
Owner Daniel Martino with trays of pies at Little Susie’s.
Martino, 46, who grew up in Northeast Philadelphia, has spent much of his working life around food. As a teenager, he worked at a swim club snack bar before taking a kitchen job at what is now Jefferson Torresdale Hospital.
After studying film at Temple University, he joined Public House Investments, which ran City Tap House, as a DJ before becoming the hospitality company’s creative director, designing menus, logos, ads, and marketing material.
When the property next door to his house became available, Martino said he used a home-equity line of credit to buy it before securing a Small Business Administration loan to renovate it.
The takeout window at Little Susie’s. Hand-lettered signs advertise the specials.
By the time Little Susie’s opened in December 2019, he said, “I had maxed out every credit card I had. I even had to go to the bank, hat in hand, and sign a signature loan for the last $10,000 just to get it open.”
His shop offered a simple menu, little more than coffees and lattes and four kinds of pies. There was a counter for seating. The first day brought in about $180, and “it was the greatest day of my life,” Martino said.
Then the pandemic arrived. When COVID-19 restrictions shut down indoor dining, Little Susie’s shifted to window service. Customers called in orders, paid over the phone, and picked up coffee and pies outside. Even after restrictions were lifted, the shop never reopened indoors.
It wasn’t what Martino had imagined. His idea was ”Cheers with coffee — the neighbors and the mailman talking about the weather,” he said.
Instead, customers embraced the walk-up model and the seating at a picnic table beneath a maple tree. The pies especially quickly caught on. The signature is the crust. Rather than trimming away the excess dough, workers twist it around each pie by hand, creating what Martino calls “a fluffiness that the fork doesn’t provide — that flaky tenderness you want in a pie crust. The twist is its own special treat in and of itself.”
Owner Daniel Martino (rear, right) with staff and pies at Little Susie’s, set up in a rowhouse.
The pies, which are baked and not fried, are made with a simple crust of flour, butter, sugar, and salt. It’s a 48-hour process. Dough is mixed at the company’s Kensington location, where a 20-quart mixer runs nearly all day. The dough rests for 24 hours before it is brought to Port Richmond, where it is sheeted, filled, twisted, frozen, and delivered to the other stores to be baked to order.
Little Susie’s first menu included only blueberry, pork roll, apple, and mushroom Swiss fillings. Today, it offers about a dozen varieties, with eight available year-round and others rotating seasonally. “You can practically throw anything in this pie crust,” Martino said. “I haven’t been disappointed yet.”
Pies at Little Susie’s.
Pork roll remains the top seller, followed by apple, and a sausage, egg, and cheese breakfast pie encrusted with everything bagel seasoning. Seasonal flavors have included ham and Brie, chocolate-covered strawberry, and Cajun crab and corn. None are gluten-free because of the shop’s limitations, he said.
Not every idea works. “We tried to make a cannoli pie, but the cream just melted right out,” he said.
Each shop sells 200 to 300 pies a day. The production kitchen now employs 11 bakers, who track production on a whiteboard nicknamed “the Pieble.” Each variety get its own knife mark on top; an inverted V, for example, denotes mushroom Swiss.
The “Pieble” at Little Susie’s, the flagship pie takeout place located at 2532 E. Lehigh Ave., in Philadelphia, June 24, 2026.
Lena Hurchick, who has worked at Little Susie’s for three years, said she enjoys “the competition of filling all the shops” and watching customers eat pies she helped make.
“Susie” was the name of the dog that belonged to the former owner of the building. “When we had the community meeting here, I said, ‘I’m thinking Little Susie’s,’ and people started crying,” he said.
Lena Hurchick crimps mushroom pies at Little Susie’s.
Expansion has brought complications. A planned Fairmount location was nearly ready to open before the city determined that the property required zoning approval for food sales. “The city does not make it easy,” he said, adding that it will take months to get onto the zoning board’s calendar.
Even so, he expects the company to keep growing. He has a handshake deal for a spot in Northern Liberties. Milwaukee is planned as the first franchise — operated by a friend — while Martino has begun thinking about a larger bakery in Philadelphia.
“We’re basically bursting at the seams,” he said. “We’re probably going to need a 10,000-square-foot facility.”
Owner Daniel Martino at Little Susie’s.
He wants that growth to remain slow enough that the pies are still made fresh every day. “I don’t want to get too far away from making them every day, because then it just becomes some frozen-food empire,” he said.
Little Susie’s Coffee & Pies’ locations are at 2532 E. Lehigh Ave. in Port Richmond, Second and Chestnut Streets in Old City, 1772 N. Front St. in Kensington, and 1754 S. Chadwick St. in Point Breeze. A fifth, at 800 S. Ninth St. in Bella Vista, is due to open Friday. Hours are 7 a.m. to 2 p.m. daily.
Philadelphia police found a “significant amount” of blood inside the decrepit Olney house linked to the investigation of at least two missing women, multiple law enforcement sources said.
The sources, who spoke on the condition of anonymity to discuss an ongoing investigation, said forensic testing has not yet determined whose blood it is or whether it’s even human — a process that could take several weeks to complete. But, the sources said, police are prepared to excavate the front and backyards of the West Chew Avenue home in the coming weeks in search of potential human remains.
Deputy Police Commissioner Frank Vanore declined to confirm or comment on the discovery Monday afternoon, citing the ongoing investigation. Vanore said Friday that police had not recovered any human remains from the home and were awaiting testing of the tubs of chemicals and other materials found in the basement.
Forensic investigators search the backyard of 417 W. Chew Ave. on June 27.
The finding marks the latest development in an unusual saga that began after the arrest of Eugene Albert Horsch, 44, the owner of the Olney home now being searched by law enforcement for a second week in connection with the disappearance of at least two women who have been missing for years.
Horsch was arrested June 19 after U.S. Park Police saw him parked in his black BMW near Sixth and Market Streets, acting suspiciously. When a ranger approached the car, police said, he heard a woman in the back seat say, “You’re going to hurt me” and saw drug paraphernalia.
Police searched the car and reported recovering two guns with obliterated serial numbers, as well as cocaine, fentanyl, and marijuana, a cattle prod, switchblade knives, handcuffs, and a fake U.S. Drug Enforcement badge featuring Horsch’s photo.
The woman with Horsch falsely identified herself to the officers as Blair Tonzelli, a 38-year-old woman who had been reported missing in Kensington in 2023, police said.
The woman, 39, later told investigators that she gave Tonzelli’s name because she had open warrants for her arrest in ongoing drug cases and that Horsch had made her fake identification cards in that name and said she could use it if she was ever stopped and questioned by police, sources said.
Eugene Albert Horsch, 44, was arrested June 19 for illegal gun possession and drug crimes.
The woman said she did not know Tonzelli or even that she was missing — but the way Horsch spoke about her and other women made her feel like something bad had happened to her, the sources said.
Philadelphia homicide detectives then began reviewing that missing woman’s case, and, alongside federal law enforcement, searched Horsch’s home at 417 W. Chew Ave. last week.
That search produced a trove of bizarre discoveries: a basement with drums filled with chemicals, bottles of unknown substances, Tonzelli’s bank card, the death certificate of another woman, and what appeared to be urns holding at least one of Horsch’s relatives’ cremated remains.
Investigators also found another handgun, materials used to grow marijuana, and a 55-gallon drum with connections to waterlines leading into a hole in the ground.
Federal investigators also discovered a multipage, unsigned, handwritten letter that appeared to describe hurting people and referenced the serial killer Ted Bundy, according to the affidavit of probable cause to search the home that was obtained by The Inquirer.
Eugene Horsch lived at 417 W. Chew Ave. with his father until he died last year.
Law enforcement sources said police were working to determine whether the writings were part of a novel or screenplay. Horsch’s late father, Raymond “R.C.” Horsch was a known drug manufacturer and erotic filmmaker who had published several works of fiction with violent, masochistic themes, including one described as an “autobiographical memoir of a caring, empathetic serial killer.”
The probe into the younger Horsch took another twist when investigators learned that Raymond Horsch’s ex-wife Amy McHale was last seen at the Olney property in 2016 and has not since be located. A lawyer for Eugene Horsch and his father said the two men had nothing to do with McHale’s disappearance and said she struggled with substance abuse and mental illness.
Horsch has been charged with illegal gun possession and drug crimes by Philadelphia authorities.
He is also facing a federal gun possession charge, court records show. The U.S. Attorney’s Office filed a complaint against Horsch on Friday, charging him with possession of a firearm by a felon and centering their allegations on the guns that park rangers found in his car during an encounter in Center City earlier this month.
Horsch has not yet been arraigned in that matter, and he remained in a city jail, held on $500,000 bail as of Monday afternoon. But the case could give federal prosecutors an opportunity to argue to a judge that he remain in federal custody until trial.
This is a developing story and will be updated.
Staff writers Jesse Bunch, Max Marin, Barbara Laker, and Chris Palmer contributed to this article.
Amy McHale and Raymond “R.C.” Horsch met on the streets when she was battling pneumonia and needed medical care.
She had long struggled with mental health issues and drug and alcohol addiction. She saw Horsch, an erotic photographer and filmmaker 30 years her senior, as her rock, said her mother, Gloria McHale.
“He was like her savior.”
They held their wedding reception beside a greenhouse in the sprawling, serene backyard of his Chalfont home in September 2004. The marriage lasted only a few years, but Amy McHale kept going back to Horsch after he moved to a house on West Chew Avenue in the Olney section of Philadelphia with his son, Eugene Albert Horsch.
She was staying there on June 14, 2016, when she left a voicemail message for her daughter, Amanda Stofer, saying all was OK. At the time, Amy McHale was a 44-year-old mom and grandmother of three.
She has been missing ever since.
“She would never leave her daughter and grandchildren,” Gloria McHale, 79, said by phone after news broke this week that authorities had been combing through that house for days. “She loved them, adored them.”
For more than a week, Philadelphia police and federal authorities have been searching the crumbling Horsch twin home to determine if there is any connection to the disappearance of Amy McHale and one other woman.
R.C. Horsch was a controversial figure who had been convicted of forgery and drug manufacturing when he died in May 2025 of chronic obstructive pulmonary disease at age 82. Police have not named him as a person of interest in a missing-person investigation.
His son, Eugene Albert Horsch, is being held on $500,000 bail at Curran-Fromhold Correctional Facility on charges of illegal gun possession and drug crimes. He had a criminal history that included at least 10 other arrests for drug possession, dealing, assault, and drunken driving when he was arrested earlier this month near Independence Hall after his actions drew the attention of U.S. Park Police.
“This is much ado about nothing,” said Eugene Horsch’s attorney, Jerome Brown, of his client’s connection to any missing-person investigation. “They’re barking up the wrong tree.”
When the news broke, McHale’s mother and daughter thought they might finally discover what happened.
“But I don’t feel much closure, and today is an emotional low,” McHale’s daughter, Amanda Stofer, said Saturday. “I was hoping for some answers about my mother from the home, but I’m doubtful that will happen.
“It just feels heavy and sad.”
The case came to light under bizarre circumstances. U.S. Park Police stopped Horsch, 44, near Sixth and Market streets on June 19. In his black BMW, officers recovered two firearms with obliterated serial numbers and a phony drug enforcement badge with Horsch’s photograph under the name “Eugene Frederick Steiner.” He also had large amounts of cocaine, fentanyl, and marijuana, according to an affidavit of probable cause for his arrest.
A woman with Horsch gave officers a false name, one that belonged to a 38-year-old woman who had been reported missing in Kensington in February 2023. Horsch’s passenger told investigators that he had made her fake ID cards with that name before and advised that if she was ever stopped by police, she could use them.
Law enforcement wearing FBI clothing at the scene of an ongoing investigation in the 400 block of West Chew Avenue, searching a home in Olney.
In Horsch’s dilapidated home, investigators found another handgun, hidden compartments, a 55-gallon drum with connections to water lines leading to a hole in the ground, and chemicals and bottles of liquid that forensics investigators are working to identify. There were also what appeared to be urns holding remains, one set of which was apparently his father’s. The basement resembled some sort of chemical lab.
Federal investigators also found a unsigned and handwritten letter that referenced hurting unspecified people and the serial killer Ted Bundy, according to an affidavit of probable cause obtained by The Inquirer.
Investigators are working to verify the authenticity of the letter, and whether it was meant to serve as a portion of a novel or screenplay.
Under a gloomy sky Saturday, about 15 FBI agents, some wearing hazmat suits, streamed in and out of the boarded-up twin home. “They’ve begun processing the scene,” Philadelphia Deputy Police Commissioner Frank Vanore said. Forensic experts were determining what evidence had to be sent away for scientific analysis, he said. “It’s going to take some time.”
Art and weed
R.C. Horsch, who was born in East Stroudsburg, Monroe County, in 1943, is described in an author’s biography as “an artist, filmmaker, composer, writer, porn performer, drug smuggler, sometime political activist, art forger, counterfeiter, pot grower, air show pilot, army deserter, fugitive, sociopath, ex-convict and all-out villain.”
Throughout his life, R.C. Horsch worked on avant-garde artwork and erotica, often focused on scantily clad women in sadomasochistic settings, including a book described as an “autobiographical memoir of a caring, empathetic serial killer.” He directed his first film, The Erotic Memoirs of a Male Chauvinist Pig, in 1973.
A 1968 news report identified Horsch, then in his mid-20s, as the operator of a theater on the 2000 block of Sansom Street known as “Underground Cinema 16” — later the Roxy — which screened avant-garde films, including his own, but was shut down for operating without a license.
Horsch was married at least three times. He married Anna Ferkuniak, a native of Nant-y-moel, Wales, who was Eugene Horsch’s mother. She died in 1989 at age 39 after a lengthy illness, according to her obituary.
R.C. Horsch also had an extensive criminal history.
He pleaded guilty to passing bad checks in North Carolina in 1973, and the following year the Secret Service charged him and another man in Doylestown with passing nearly $180,000 in fake 10-dollar bills and possessing phony driver’s licenses.
In 1977, federal authorities raided what was described as his home laboratory, seizing equipment they alleged was meant to make methamphetamine. But Horsch left for New Zealand, later returning to California, according to court records, and operating under the alias “Richard Harris.”
Eugene Horsch was born in 1981, while his father was still a fugitive.
Authorities captured R.C. Horsch in Florida in 1985. A psychologist hired by his defense attorney claimed Horsch had a 140 IQ, according to court records, but had “deep rooted emotional problems.”
He was sentenced to three years’ imprisonment, plus probation. He later settled in Chalfont but acquired the Chew Avenue house after his aunt died in 2004. In 2007, he used power of attorney to legally transfer ownership to his son for $1.
In 2009, R.C. Horsch was indicted in Chalfont for growing “455 marijuana plants.” Investigators also confiscated two shotguns. The feds seized his suburban home and he was sentenced to 54 months in prison.
Federal inmate records show he was released from prison in 2013, and later moved into the Chew Avenue property, where he would reside until his death. He authored several erotic novels in the 2010s, often focused on women battling substance abuse or mental health issues.
Krista Marie Killen is credited as appearing in multiple erotic films that he directed, including one released as recently as 2021, and at times listed the Chew Avenue house as her residence.
In 2025, a motorist sued R.C. Horsch, Killen, and an unidentified man, claiming the trio crashed their Chrysler 300 into her SUV near Adams Avenue and Montour Street in 2023. Court papers list Killen’s occupation as “caregiver” and the “adult in charge of residence.”
She died the next month, according to an obituary, three months after Horsch.
In searching the home recently, investigators found a death certificate for Killen. According to the affidavit of probable cause, the cause of death was drug intoxication.
‘People don’t vanish’
R.C. Horsch and Amy McHale had become a couple in the 1990s.
“I was a young kid when they started dating, and I want to say he had been around for at least 10 years by the time they got married,” Stofer recalled.
They divorced after a few years and McHale moved in with her mother on South Hutchinson Street in Philadelphia. She went to Peirce College, became a paralegal, and was trying to get her life back on track, said Gloria McHale, 79.
But she could not kick her drug and alcohol addiction, she said. She would periodically return to Horsch’s home on Chew Avenue.
“They stayed friendly with each other,” Stofer said. “I’m sure it had something to do with the drugs and alcohol. I think he enabled her with things that weren’t really permitted in my grandmother’s house.”
On June 13, 2016, she went to Horsch’s. She called her mom that night to tell her she was on her way home. “She was obviously very drunk and I told her to stay where she was, because to get home she would have to take the subway, and she was in no shape to take the subway.”
The next day, she called Stofer and left a message. “She told me she was at Ray’s house and she was OK.”
That’s the last they heard from her.
Amy McHale would sometimes be gone for a couple of days, but never for much longer, they said. Stofer had three children, and her mother doted on them. Stofer was planning her September wedding.
“My mom had her struggles with addiction,” said Stofer, 38. “But my mom would not want to disappear in my life. She would never do that. She always came back around. She never missed big things like my kid’s kindergarten graduation.”
Gloria McHale searched all over for her daughter. “I put signs up all over Kensington,” she said.
Detectives interviewed Horsch. He told police and the McHale family that she was drinking vodka and he went to bed. “He said when he woke up, she was gone,” McHale said.
And Horsch stopped reaching out to her family.
“When she would disappear before, Raymond would always keep calling me. ‘Did you hear from her?’ And after this I never heard from him.”
McHale is hoping someone will come forward now with new information.
“Somebody has to know something,” she said.
“People don’t vanish into thin air.”
Amy McHale.
Staff writers Brett Sholtis, Michelle Myers, and Isabel Maney contributed to this article.
Amid rising inflation and business costs, many Philadelphia corner stores, bars, laundromats, and smoke shops have turned to skill games, the slot machine look-alikes, to help keep their slim margins afloat.
The machines, which shop owners say also encourage their customers to linger in stores and make additional purchases, are particularly profitable because theyare not taxed or regulated like slot machines — and they have been operating without state oversight in a legal gray area for more than a decade. But a recent state Supreme Court ruling may force that tochange.
Last week, Pennsylvania’s highest court handed down a decision deeming skill games the same as slot machines. That means the skill game terminals proliferating around the state will soon be illegal if not operated and taxed at 52%, and housed in a highly regulated casino or truck stop with a license to carry slot machines. Those terms will take effect in less than four months unless the state legislature intervenes.
Owners and clerks at several corner stores throughout Philadelphia that offer the games say they do not contribute a lot of revenue to their establishments directly, but they foster more of a lounge atmosphere in the shops that leads patrons tostay longer and purchase more snacks, drinks, lottery tickets, and other goods. Many of the business owners said they are willing to stomach a tax on skill games, but additional regulations would make them rethink keeping the machines.
José Pérez, who runs a corner store on Opal Street in South Philadelphia, said his store runs on incremental profits. And, he said, when people play the skill game machines and start feeling lucky, they often are inclined to make other purchases there.
“This business is about getting a little bit of money from every product, and the machines are a tiny source of income that adds up to that,” he said in Spanish between transactions at the store’s register. “While people play, they buy other stuff in the store. And if they win, they buy lottery tickets. Because when someone has one vice, they probably have two.”
Tax proposals from Harrisburg
Lawmakers in Harrisburg have for years failed to reach an agreement on how to tax and regulate the so-called skill games
The issue has proved to be tricky in Pennsylvania’s split legislature, where Democrats narrowly control the House and Republicans control the Senate. The skill games industry leader, Georgia-based Pace-O-Matic, long maintained a friendly relationship with the Senate GOP, and the Republican lawmakers appeared willing to support policies that benefited them. But last year, the goodwill began to sour after the company backed political campaigns against incumbent Republican state lawmakers who did not support its requested low tax rate on the machines.
State Rep. Danilo Burgos (D., Philadelphia) and State Sen. Anthony H. Williams (D., Philadelphia) have introduced a bipartisan bill in their chambers to impose a $500-per-month fee on each skill game machine operated in Pennsylvania, with a 50,000-machine cap across the state. There are currently an estimated 70,000 skill game machines in Pennsylvania, according to the state attorney general’s office.
Skill games can be seen through the door of a mini mart on Kensington Avenue in the Kensington section of Philadelphia on Wednesday, July 30, 2025.
The proposed legislation would split revenues among transit and infrastructure, local governments, and state police for enforcing the cap and fee. The bills also prohibit small businesses whose “primary source of net revenue” is from skill games, in an effort to prevent mini casinos in stop-and-go corner stores around the city. Burgos estimates the regulations would bring in $300 million in new revenue to the state in their first year.
The bill includes additional protections for Philadelphia, where City Council voted in 2024 to ban the machines. The ban never went into effect, after a lawsuit was filed seeking to block it. In the legislation before the General Assembly, Philadelphia has specific carve-outs that would allow city officials to block stop-and-go businesses or “chronic nuisance” businesses from getting a license to carry the games.
Surrounded by hundreds of skill games supporters at a news conference Wednesday on the Capitol steps in Harrisburg, Williams said rank-and-file lawmakers would hold up passing the state budget, due June 30, if there is not a deal to protect small businesses from losing their skill games altogether.
“In this time when everybody talks about affordability, I can’t afford a 52% tax,” Williams said.
The fee-per-machine option offered in the Democratic-sponsored bills is backed by Pace-O-Matic, which has spent millions of dollars on political campaigns and lobbying in the state, in addition to millions more spent by other parts of Pennsylvania’s booming gambling industry.
Meanwhile, a separate proposal backed by the Senate GOP and penned last year would set the tax at 35% on gross terminal revenue, in addition to annual license fees. A small portion of those fees would go toward the state’s resources for problem gambling.
Gov. Josh Shapiro, a first-term Democrat, has proposed taxing the machines at the same rate as slot machines — a hefty 52% levy on each machine’s net revenue — in his last two budget proposals. As the machines have continued to proliferate around the state, Shapiro’s office estimated the newly regulated industry could bring in nearly $800 million in revenue in its first year.
Uncertain future with uncertain revenue
Philly store owners were divided on whether it would be worth keeping the machines if they needed to pay a lofty tax on either housing the devices or the profits they made on them.
Andrew Karki, who operates a laundromat near Pérez‘s store in South Philadelphia, said the machines occupy the customers while they wait for their laundry to finish and, as at Pérez‘s store, lead to purchases of candy and soda from the small bodega he runs inside the laundromat.
He estimated the machines make up 15% to 20% of his monthly revenue, and he said he would likely be willing to take on a tax on the games, even a rather large one, to keep them around.
“It’s hard, but we got to pay it. We got to pay it,” Karki said.
For others, like Diego Reyes, who runs a secondhand shop on Kensington Avenue with about a dozen skill machines inside, taxing the small businesses for the machines does not seem fair. The terminals are often owned by small amusement companies, and are largely operated by Pace-O-Matic. The business owners get a cut from the machine’s revenue for allowing the terminal in their building.
“They should tax the owner,” Reyes said in Spanish, wearing a Phillies cap and T-shirt with a size-medium sticker still stuck on the back, as three people played the machines.
Pérez agreed that any tax should be on skill games companies and not on the businesses that carry them.
It is frustrating to think another tax may be coming down the line,he said,when small-business owners already pay so many of them and see little return on the investment in the community.
“Look outside, that pothole has been there for six months. We have no safety,” Pérez said. “What do you want me to pay more taxes for if you are not doing anything to better the conditions with it?”
Staff writer Isabel Maney contributed to this article.
