P.O.

Box 63675 Philadelphia, PA 19147

Phone 215.413.3713 Fax 215.627.7035
www.southstreet.com / info@southstreet.com

July 6, 2015

To:
South Street Headhouse District Stakeholders
From: Elena Brennan, Acting Board Chair

Michael Harris, Executive Director
RE:
SSHD Update
____________________________________________________________________________________
We write to inform SSHD stakeholders that former Chairman Dan Christensen submitted his resignation
from the SSHD Board at the June Board of Directors meeting. Due to ongoing investigation and legal
considerations, at this time we are unable to disclose as much additional detail as we would like. We
can state that the investigation and legal matters involve the misappropriation of SSHD funds.
Fortunately, the amounts involved are modest relative to SSHDs current assets and, while we pursue
their full recovery together with the expenses involved, we do not anticipate the situation will
significantly impair any programs, projects, or activities of SSHD.

The SSHD has retained special outside legal counsel (Blank Rome, LLP) to help oversee an investigation
and ensure full reimbursement of any funds, as well as any associated District expenses, that will be
incurred due to this matter. In addition, SSHD notified local law enforcement, as well as is conducting a
full forensic audit with an outside accounting firm in coordination with counsel as part of its due
diligence inquiry.

SSHD is acting, with guidance of outside legal counsel, diligently and comprehensively to protect the
interests of the organization and its stakeholders. Be assured that the District has and will take all
necessary actions to ensure that it is made whole as a result of any financial improprieties and to
prevent the possibility of any further malfeasance.

It is important to note that, even as the investigations and legal matters proceed, we will continue to
provide our important services to the SSHD community, including the daily cleaning of streets and
sidewalks, graffiti removal, public safety initiatives, business district promotion, and producing a full
calendar of popular events. In addition, we will maintain our schedule to deliver several planned District
improvements in 2015, including the installation of pedestrian lighting on 4th Street, designed
improvements for the Headhouse Plaza, and beautification repairs to the tree pits along South Street.

There is no good time to deliver this type of news, and we recognize that it is particularly unpleasant
around a holiday weekend. However, we believed it was more important to advise you as soon as we
could, based on verified factual information, especially as erroneous and misleading information is
beginning to appear from anonymous and uninformed sources.

There will be no further comment from SSHD on this matter at this time, though we look forward to
providing as soon as we are able a full public accounting and complete explanation upon the conclusion
of the inquiries.