philadelphia - poised to become a breakout city

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P H I L A D E L P I A Poised to become a breakout city. A big-picture look at Philadelphia’s complex whirlwind of forward progress, and where these changes are leading us. May 2013 © Ed Ryder

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A big-picture look at Philadelphia’s complex whirlwind of forward progress, and where these changes are leading us

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Page 1: Philadelphia - Poised To Become A Breakout City

1 ShowcasePhiladelphia.com

P H I L A D E L P I APoised to becomea breakout city.

A big-picture look at Philadelphia’s complex whirlwind of forward progress, and where these changes are leading us.

May 2013

© Ed Ryder

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2001 W. Market Street

Brand new, very large media screen in front of a large fountain area. Restaurants and outdoor seating complement the space.

To the left: Sidewalk view at the front entrance to Commerce Square, the twin 41 story office towers completed in 1987 and 1992.

Front page: View from “The Porch at 30th Street Station.”

The Court at Commerce Square

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It has taken a long, long time… but finally, Philadelphia is clearly rising again.

Way before our time, Philadelphia was the place where radical, brilliant visionaries created American democracy. Philadelphia was the first Capitol. It was the country’s largest city. It mushroomed into an industrial powerhouse. Then, things changed. People moved to the suburbs. Factories closed. Decay in the city prevailed — for decades. It was bad.

People were so down on Philadelphia that it became an instilled sentiment in generations of the regional population.

But small changes in recent times, here and there — like the launching of the Center City District in 1991 — have led to bigger changes. And now those bigger changes have set-off a slow motion ripple effect that will lead to even greater change that probably will surprise many. http://www.youtube.com/watch?v=QoEYNANks-I&list=UU8F4XR4UnoNQgcqUVZsB-4A&index=2

http://www.centercityphila.org/

Philadelphia is on the path once again toward becoming of one of America’s most robust and vibrant cities… except this time the rivers won’t be poisoned with industrial waste and the skies filled with unhealthy, gritty air from countless smokestacks. Instead, Philadelphia is going to eventually become, in a way, like Paris — where it will become highly desirable among many to live in the center city region, and clearly fewer will have interest in residing in the outer rings of the metropolitan area.

Let’s take a step back and look at all that is happening…

One of the things I find fascinating about Philadelphia is the robust real estate development cycle that is now underway. A little story for you…

Back in February 2010, Philadelphia had a really big snowstorm. As the storm raged with heavy snowfall and harsh, stinging winds that pelted my face, I walked the streets of Center City photographing the event. It was odd to see the entire city shut down. No traffic. No people anywhere. No noise. Just the sound of brutal wind and the crunch of snow under my feet. Everybody had retreated.

But as the storm began to ease up, people came outside. In front of my eyes I saw the city slowly coming back to life… as if the city was waking up.

That storm reminds me of the great recession that began in 2007. Prior to the economy taking a nosedive, Philadelphia was on a tear. There were so many condo tower projects being announced, like the 66 floor, 950 foot Bridgeman’s View Tower, and the highly anticipated 41 story Mandeville Place. The 1500 foot tall American Commerce Center also looked like it was really going to happen. But the recession killed off nearly all of that development activity. And just like with that snowstorm, it

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2040 Market Street

Above: To the right of the red traffic light is 2040 Market’s 8 story addition, plus their two 13 story wings. The newly completed building has been listed for sale and the developer is expecting to land a buyer at a premium price.

Left: Nearby Drexel University is keeping construction workers busy.

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got quiet, except the stagnation persisted for much longer.

The condo towers that did get built, appeared to struggle. The 43 story Murano resorted to auctioning off a substantial portion of their unsold condo inventory in 2010. So did Waterfront Square, and a small condo development known as Cu257. The Phoenix building, which had converted from apartments to condos, did the same thing. And 10 Rittenhouse struggled mightily. At this site, construction began late – not until 2007 when the real estate downturn had already begun its abrupt start, and they didn’t close on their first unit until 2009. Then one of the development partners died of a heart attack and a bank took over control.

I think what developers learned is that it’s a risky proposition to sell expensive condos. Buyers have also had difficulty getting mortgages on condos, partly because they are seen as more risky compared to other types of home dwellings and as a result, the lending criteria has become strict.

According to what I’ve read, if 15% of the unit owners are 60 days late in paying their condos fees, then nobody is going to be able to get a conventional mortgage against a condo in that building (it used to be 30 days). If the homeowners association is involved in any substantial litigation, that can crush the hopes of buyers getting conventional financing. If the homeowners association’s cash reserves are low, that’s a problem. If more than 50% of the units are investor-owned, that’s another problem. And it seems if less than 70% of a condo development’s units have not already sold, that hurts the ability of buyers to get conventional financing as well.

In additional to all of that, it appears real estate developers are finding that it’s easier to get apartment towers financed compared to condo towers. Reasons why probably include the Waterfront Square fiasco. They had 119 of their unsold condominiums go to sheriff sale last year. With that, in combination with the struggles other condo projects had, lenders apparently see too much risk with condo development in comparison to rental housing developments.

So… guess what? Rental apartments are hot.

We are getting a lot of apartment towers and apartment developments now. Interestingly, the supply of condominiums available for sale is beginning to dry up. This scarcity of supply is going to raise real estate values. At some point, developers will probably seek to build condo towers again.

But what is causing this demand for housing? Well, Philadelphia is becoming cool. People want to live here. We’ve got tons of university students adding to the vibrancy of the city. People who work here are deciding they don’t want a long commute from the suburbs anymore. And empty-nesters are opting to get a place in the city in order to be close to everything, like the restaurants, parks and cultural places. Meanwhile, in a small way, new businesses creating jobs are attracting new residents who want to live here.

On April 10th, 2013, the Philadelphia Business Journal reported that 2040 Market Street is already up for sale, before the project was even completed. This was the 5 story headquarters for Mid-Atlantic AAA. The developer added 8 floors, along with two wings each 13 stories tall. It adds up to 282 brand new apartments, 16,000 square feet of retail space, and 175 underground parking spaces. The apartments are 88% leased at an average price of $1899 each.

The listing broker says “The Center City market is on fire. We know we are going to get top dollar.”

The article says: “Investors are eager to get into Philadelphia. The market is experiencing rent growth, low

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Top: The Granary, as viewed from The Barnes Foundation Museum.Left: 2116 Chestnut. Topped off and nearly completed.Above: 1900 Arch Street is underway..

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vacancies and continued influx of affluent, educated residents.”

An executive associated with the developer, PMC Property Group, is quoted in the article as saying: “The apartment market is incredibly strong and we believe there is a tremendous upside in 2040. It’s a testament of how strong Philadelphia is… We have other projects under construction in Philadelphia and have tremendous confidence in the market.”

*Info Nugget* According to Center City District data, the average 1 bedroom apartment in Center City rents for $1645.

Take a look at some of the real estate projects currently underway or in the pipeline:

The Sansom – 104 apartments1605 Sansom StreetNear Rittenhouse Square http://www.pearl-apartments.com/sansom.html

The Granary - 227 apartments20th & CallowhillNear the Ben Franklin Parkway & Logan Circlehttp://www.pearl-apartments.com/granary.html

Southstar Lofts - 85 apartmentsBroad & South StreetsSubway station is right there.www.southstarlofts.com

2116 Chestnut – 321 apartments34 story buildingwww.2116chestnut.com

1900 Arch Street - 162 apartments on 14 floorsBy PMC Property Group

The Arch 1701 Arch Street – 110 apartmentsThe former Robert Morris Building. Nearly 100 years old. Just converted from offices to apartments. Across the street from the Comcast Tower. www.scullycompany.com/the-arch-30.html

1919 Market Street - 292 apartments and 55,000 square feet of retail announced in summer 2012, but nothing appears to be happening. Envisioned to be a 25 story building.

2021 Chestnut Street - 110 apartments12 storieswww.2021chestnut.com

Above: A rendering of 1919 Market Street. Below: Southstar Lofts in progress.

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University City

Above: A playing field at the University of Pennsylvania’s new $46.5 million “Penn Park.”

Left: The medical district, occupying ground where the Civic Center once stood. This constantly growing area attracts new, high-earning city residents.

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Tower Place - 204 apartments1400 Spring Garden $70 million office building conversion. Officially opened January 9th, 2013. A second tower envisioned to be 20 stories is in the developer’s long range plan. www.towerplaceliving.com

1616 Walnut – 220 apartmentsThis 25 story office tower, built in 1929, is being converted into apartments. To be completed by “Spring 2014.”www.1616walnutretail.com and www.1616walnut.com

Chinatown Eastern Tower – 144 apartmentsWill include a community center, offices. 282 feet tall.10th and Vine Streets.http://www.chinatown-pcdc.org/community-center/overview.html

South Broad Street Armory – 50 apartments1221 South Broad Street127 year old building to be demolished and this will go up in its place.http://www.passyunkpost.com/2013/02/broad-street-armory-not-long-for-this-world.html

Marina View Towers - 296 units230 N. Christopher Columbus Blvd. Next to Ben Franklin Bridge – by Ensemble Real Estate. Approved by planning commission. 11 stories, 130 feet tall. http://planphilly.com/articles/2012/09/18/planning-commission-approves-changes-marina-view-plan-deve-lopment

Pier 34 Redevelopment – 209 apartments735 Christopher Columbus BlvdAnother waterfront project by Ensemble Real Estatehttp://planphilly.com/articles/2012/09/18/public-path-river-and-other-changes-convince-pcpc-approve-plan-residential-tower-piers-34-and-35Previously was envisioned to be much taller: http://ensemblere.com/project_detail.aspx?id=17

WholeFoods – 300 to 350 apartmentsLocated on site of the current Best Western Center City Hotel along the Ben Franklin Parkway.Building will provide 55,000 square feet of space for the new supermarket. Toll Brothers will handle the residential component of the project.

Goldtex – 163 apartments12th and Vine Street area.Conversion of textile factory to loft apartments by the Post Brothers.www.goldtexapartments.com

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Atlantic Building

Above: The Atlantic Building is seen on the left, just beyond the glass-roofed Kimmel Center. (Photo taken during the Philadel-phia International Festival of the Arts 2013 Street Fair.) Left: Signage indicating what is coming to the Atlantic Building.

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Atlantic Building – 200 apartments260 South Broad StreetMixed use residential tower with 7 floors of retail envisioned in this 21 story building. Originally completed in 1922. Another project by the Post Brothers.

229 Arch Street – 65 apartmentsNext to the Betsy Ross house in Old City(This place looks cool.)www.229arch.com

205 Race Street – 128 apartments16 stories, 197 feet tall. Beside the Ben Franklin Bridge in Old City.www.205race.com

John C. Anderson Senior Residences – 56 apartmentsSouth 13th StreetA first of its kind apartment community aimed at low income LGBT seniors.

410 At Society Hill – 69 condominiums!410 South Front StreetLocated at the old New Market plaza. To be built by Toll Brothers www.410societyhill.com http://planphilly.com/articles/2012/06/15/toll-brothers-hopes-begin-construction-69-unit-gated-condo-build-ing-former-new-market-site-2013

2400 South Street - 68 townhouses and 59 condosGraduate Hospital area. Built by Toll Brothers.www.2400south.com

2040 Market Street - 282 apartmentsIn the business district. Former 5 story AAA Mid Atlantic headquarters. Developer added 8 additional stories and two wings. As of March 20th 2013 “almost fully leased” according to their Facebook page.http://www.2040market.com

Walnut Place – 66 apartments312 Walnut StreetOriginally constructed in 1926. Six stories.Developed by PMC Property Group in cooperation with Nolan Properties.

38th & Chestnut Streets – 280 apartments25 stories. University City area.Developer: Radnor Property Grouphttp://www.thedp.com/article/2013/03/high-rise-development-to-replace-two-38th-and-chestnut-brownstones

36th & Market Streets – 364 apartments27 stories. University City area.Developer: Wexford Equities & Southern Land Companyhttp://www.westphillylocal.com/2013/01/07/a-high-end-high-rise-apartment-building-coming-to-36th-and-market/

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Above: The 33 story “Grove at Cira Centre South” is underway.

Left: The Grove is to the right. The future “Walnut Street Tower” is to the left. (Construction expected to begin in 2014.)

Cira Center South

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The Grove at Cira Centre South – 850 beds33 stories.2690 Chestnut Streethttp://philadelphiaheights.wordpress.com/2013/03/27/nations-tallest-student-apartment-building-the-grove-at-cira-centre-south-will-be-part-of-university-citys-dramatic-new-gateway-and-skyline/ http://www.cpexecutive.com/cities/philadelphia/160-million-tower-adds-to-student-housing-options-in-uni-versity-city/

43rd & Baltimore – 92 apartments4224 Baltimore Avenuehttp://nakedphilly.com/university-city/residential-project-coming-to-vacant-lot-near-clark-park/

43rd & Sansom – 31 apartmentshttp://philadelphiaheights.wordpress.com/2013/03/20/new-31-unit-apartment-building-at-43rd-and-sansom-streets-adds-to-walnut-hill-neighborhood-renewal/

Lancaster Square – up to 1200 beds24 stories34th & Lancaster Avenuehttp://ucreview.com/planning-commission-approves-drexel-dorm-at-th-lancaster-ave-p3962-1.htm

Chestnut Square – 865 beds19 stories.32nd & Chestnuthttp://livechestnutsquare.com/

40th & Pine Streets – 122 apartmentsGraduate student housing. http://hiddencityphila.org/2013/02/40th-and-pine-mansion-granted-demo-approval/

1601 Vine Street – 230 apartments26 stories.Not much info out there about this one.http://ilovebricks.blogspot.com/2012/12/1601-vine-street.html

Renaissance Plaza – 1458 apartmentsFour towers. Up to 426 feet tall.400 North Columbus Blvd.(Not moving forward yet.)http://planphilly.com/articles/2012/08/21/1458-unit-four-tower-residential-and-retail-complex-proposed-former-world-trade-center-site

Morgan Hall, Temple University - 1200 beds27 storieshttp://phillyshark.blogspot.com/2012/08/temple-university-morgan-hall.htmlhttp://www.temple.edu/2020/projects/morgan-hall/index.asp

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Rittenhouse Square Park

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14 story Apartment Residence – 832 beds100 Block, Cecil B. Moore AvenueTemple Universityhttp://articles.philly.com/2012-11-21/news/35229003_1_temple-university-ken-goldenberg-diamond-green-apartments

Diamond Green – 92 apartments1000 Diamond Streethttp://diamondgreenapts.com/home/

Glenwood Lofts – 46 apartmentsWarehouse to apartments conversion.3101 Glenwood Avenuehttp://philadelphiaheights.wordpress.com/2013/02/28/major-renovation-of-conspicuous-north-philadelphia-warehouse-into-apartments/

Paseo Verde Transit Village Residencies – 120 apartments1900 North 9th StreetTemple University area.http://nakedphilly.com/temple/next-to-rail-tracks-construction-underway-at-paseo-verde/http://philadelphiaheights.wordpress.com/2012/12/13/transit-oriented-development-in-eastern-north-philadel-phia-is-nearing-completion/

933 North Penn Street – 200 apartmentsDelaware River Waterfronthttp://phillyshark.blogspot.com/2012/06/new-tower-development-at-933-n-penn-st.html

Edgewater – Phase 2 – 240 apartments22 stories23rd & Race Streetshttp://www.bizjournals.com/philadelphia/blog/natalie-kostelni/2013/04/living-on-the-edge.html

Croydon Building – 127 apartments49th & Locust StreetsFormerly an old building full of squatters.http://www.phillymag.com/realestate/new-projects/progress-on-oren-brothers-paradise-city-apartment-complex/#more-67901http://philly.curbed.com/archives/2013/04/19/squatters-infamous-paradise-city-renovations-underway.php#morehttp://hiddencityphila.org/2012/12/goodbye-paradise-city/

43rd & Sansom – 31 apartmentshttp://www.phillymag.com/realestate/new-projects/apartments-and-retail-complex-to-come-to-43rd-and-sansom/

1516 Spruce Street – 9 apartmentshttp://blog.philadelphiarealestate.com/once-offices-soon-apartments-on-spruce-street/

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Above: The Le Meridien Hotel stands where the mural is. Beside it, the new 14 story Family Court Building is under construction, at a cost of $160 million.

Left: Love Park is due for a complete renovation, since repairs to the large underground parking garage beneath it must soon take place.

Love Park Area

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1213 Walnut Street 26 stories, 294 feet tall... besides rental apartments, this building might include a hotel.www.u3ventures.com/development/1213-walnut/

This is a list of most, but not all housing projects. There are many, many smaller projects underway in the neighborhoods. People are buying shells, vacant lots, etc., creating brand new houses, flipping them, and moving on to the next project. This article details how vacant lots are disappearing in the Graduate Hospital area, also known as “G-ho:” http://nakedphilly.com/graduate-hospital/three-projects-progressing-around-19th-and-kimball/

Other Development

Recent new hotels include:

Le Meridien – Near Love Park – 202 roomshttp://www.starwoodhotels.com/lemeridien/property/overview/index.html?language=en_US&propertyID=3238

Hotel Palomar – Near Rittenhouse Square – 230 roomswww.hotelpalomar-philadelphia.com

Hotel Monaco – Near Independence Hall – 268 roomswww.monaco-philadelphia.com

Homewood Suites – University City – 136 roomshttp://homewoodsuites3.hilton.com/en/hotels/pennsylvania/homewood-suites-by-hilton-university-city-phila-delphia-pa-PHLUPHW/index.html

Hotels Under Construction:

Homes2 Suites – Convention Center – 248 roomshttp://philly.curbed.com/archives/2013/01/23/home2-suites-coming-along-near-convention-center.php

Courtyard By Marriott – Navy Yard – 172 roomshttp://www.southphillyreview.com/news/cover-story/Courtyard-by-Marriott-books-Navy-Yard-175685321.html

DoubleTree on South Broad Street has been approved to add 3 stories on top of their parking garage. The project is underway.

Hotel Brand Changes:

Comfort Inn Penn’s Landing is now a Holiday Inn Express100 North Columbus Blvdwww.hiexpress.com/pennslanding

Crowne Plaza is now the Sonesta Hotel 1800 Market Streetwww.sonesta.com/philadelphia

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One of my favorite new areas is the dog run at the Schuylkill River Park.

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The Radisson Plaza Warwick Hotel will become the “Radisson Blu Warwick Hotel Philadelphia” after a $17 million renovation, currently in progress.http://www.cpexecutive.com/cities/philadelphia/renovated-radisson-plaza-warwick-hotel-philadelphia-to-operate-under-radisson-blu-signature/

Hotels that are in the pipeline, but have not broken ground yet: W and Element Hotel – Near City Hall – up to 50 stories tall.This would be a dual-brand hotel.1441 Chestnut Street(Where the Meridian Tower used to be – the one that burned.)http://articles.philly.com/2012-12-13/business/35776375_1_hotel-project-timothy-j-mahoney-iii-mariner-commercial-properties Hotel Indigo – Midtown Village- 150 rooms1218 Chestnut StreetProject status unknown. Also announced: Liberty 2 Hotel1601 Chestnut StreetThis WOULD BE a 140 to 150 room hotel occupying floors 48 through 56 at the Liberty 2 building. Previously this space was being sold as condo homes. With only 56 sold, the owner has decided to switch gears and go this route. So far no buyer has been announced. If a hotel does happen here, they will have a brief monopoly on super-sky-high views… until the 50 story W and Element gets built.

http://www.phillymag.com/realestate/for-sale/two-liberty-place-is-going-to-be-a-hotel/http://www.bizjournals.com/philadelphia/print-edition/2013/03/08/two-liberty-place-seeking-to-include-a.htmlhttp://www.jllproperty.com/hotels-en-gb/full-service-hotels-and-resorts-property-United-States/Liberty-Tow-er-Hotel-50-South-16th-Street-philadelphia-pa-19102/41200 Peter Tyson, a widely quoted Philadelphia hotel industry observer and consultant, said in a recent Region’s Business article: “The future of the lodging industry in Philadelphia is bright,” Mr. Tyson said. “With room demand at record levels, an expanded Convention Center, more attractions added every few years and the city still a relative price bargain vis-à-vis Boston, New York, and Washington, Philadelphia is an ever more attractive destination for all types of visitors.” http://philadelphia.regionsbusiness.com/news/room-boom-center-city-hotel-2012-heads-in-beds-rates-neared-pre-recession-figures/ Another quote from the article: “Every year there seems to be something new,” said Ed Grose, executive director of the Greater Philadelphia Hotel Association. “In 2012, it was the Barnes Foundation that moved to the Benjamin Franklin Parkway,

Announced May 7, 2013

Old Family Court Building on Vine Street likely to become a hotel. Five developers are competing for the chance to convert it.

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Above: Outside the Rodin Museum.

Left: Philadelphia’s largest birdbath, outside the Barnes Foundation Museum. (It’s big!)

Museum District

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and that’s getting a lot of attention from foreign travelers from Europe.”

The $150 million Barnes Foundation Museum has brought a lot of visitors to Philadelphia, and those visitors, in turn, have gone on to visit other Center City museums. http://www.myphillyalive.com/blog/the-barnes-foundation-opens-on-the-parkway/

Other recently added cultural attractions include:

The Constitution Center www.constitutioncenter.org

The National Museum of American Jewish History www.nmajh.orghttp://www.myphillyalive.com/blog/the-story-of-freedom-at-the-national-museum-of-american-jewish-histo-ry-in-philadelphia/ The Independence Visitors Center www.phlvisitorcenter.com The Liberty Bell Center http://www.visitphilly.com/history/philadelphia/the-liberty-bell-center/

Coming up:

The Museum of the American Revolution… in Independence Park. (To open in 2016.) They are looking to raise $150 million for this project, so it is going to be a substantial museum.http://www.nytimes.com/2012/06/12/arts/design/revolution-museum-unveils-design-by-robert-a-m-stern.html?_r=0

The Ben Franklin Museum… a $23 million modernization. (Should open in 2013.)http://articles.philly.com/2013-03-21/news/37875947_1_museum-project-seasonal-workers-park-rangers The Franklin Institute is adding 53,000 square feet at a cost of… well, it depends upon which source you are reading. It’s either $37.4 million or $23.3 million.http://www.cpexecutive.com/cities/philadelphia/philadelphias-franklin-institute-breaks-ground-on-new-addi-tion-anticipates-leed-silver/ The Philadelphia Museum of Art is adding 62,000 square feet of utility space – by going down under the museum. Cost: $81 million. It will add 80,000 square feet of gallery space.http://articles.philly.com/2013-03-04/news/37412929_1_timothy-rub-gail-harrity-museum-expansion The Philadelphia Zoo is adding a 683 car parking garage at a cost of $24 million, or $35,139 per parking spot. They are also pushing to get a new train station close to the zoo. And they have just completed a new $33.3 million children’s zoo, after nearly two years of construction.http://philadelphia.cbslocal.com/2013/04/05/philadelphia-zoos-new-transportation-center-and-parking-ga-rage-is-dedicated/ The Rodin Museum recently completed a $9 million renovation.http://news.yahoo.com/rodin-museum-philly-reopens-look-1929-185626363.html The Kimmel Center’s Perelman Theater is being fitted with state-of-the-art cinema equipment for film screenings. The Kimmel Center also has a new $5.7 million rooftop garden. Other changes at the Kimmel are in the pipeline.

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Above: New bicycle path along the Ben Franklin Parkway. Lots of new bike trails in Philly.

Right: The old Family Court building is in play. The city is looking for ideas on how to repurpose the structure. Right now, 5 developers are looking to convert it into a hotel.

Along The Parkway

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Camden’s Adventure Aquarium has “Mighty Mike” for 4 months. He’s an 800 pound, 50 year old, 14 foot long alligator. Kids will probably love that.http://www.nj.com/indulge/index.ssf/2013/04/mighty_mike_will_call_adventur.html

Tour boats are returning to the Schuylkill. http://hiddencityphila.org/2013/04/three-men-and-a-boat/http://articles.philly.com/2013-04-15/news/38558930_1_art-bell-delaware-river-hidden-river

And there is really a whole lot more when it comes to seeing and learning things in our area.

We have the new and improved Convention Center. It’s big!http://www.paconvention.com/the-center/expansion

Those new stadiums in South Philly are nice. http://en.wikipedia.org/wiki/Citizens_Bank_Parkhttp://www.wellsfargocenterphilly.com/http://www.lincolnfinancialfield.com/

Recently, Xfinity Live was added – which is a dining and entertainment complex.http://xfinitylive.com/ http://www.youtube.com/watch?v=tGLcXtro_WI

And we have a rigorous competition among 6 applicants for the last casino license in Philadelphia. These applicants can be broken down into 3 categories:

• The South Philly slots barns (3 applicants). • The Convention Center casinos (2 applicants). • The 5 star resort casino on the Delaware River Waterfront (1 applicant). ð The applicants: http://gamingcontrolboard.pa.gov/?p=219

Later this year we’ll find out who gets the license. It could be a really exciting thing. From what I know about the proposals so far, I think Steve Wynn’s waterfront casino will do the best job of importing tourists, though I do have some concerns about its tourism drawing potential if Wynn also builds a very similar casino in Massachusetts.

http://bostonglobe.com/metro/2013/04/12/twin-towers-philadelphia-everett-accident-wynn-says/DTT-v9ZQ9wkKmAreB2lhyhL/story.htmlhttp://bostonherald.com/news_opinion/local_coverage/2013/03/wynn_unveils_everett_resort_casino_plans http://www.bizjournals.com/boston/blog/mass_roundup/2012/11/steve-wynn-pursuing-everett-casino.html

The Convention Center casinos look interesting. They could help the convention center to book more business. The proposed casino across from The Gallery Shopping Mall – Market 8 — if selected, probably would spark an ambitious renovation of the mall and a rejuvenation of the retail scene along East Market Street. http://www.youtube.com/watch?v=ouPpy549Bfw

Pennsylvania Real Estate Investment Trust has just positioned themselves to gain from a Market 8 casino license win through buying the last piece of the Gallery Mall.http://www.businesswire.com/news/home/20130417005513/en/PREIT-Expands-Foothold-Philadelphia-Mar-ket

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Top: Reyburn Plaza, with its over-sized game pieces, will be redeveloped into a more useful, walkable space.

Bottom: City Hall’s front yard is getting a $55 million update. It’s going to be fantastic.

Right: Dilworth Plaza and the Family Court Building both under construction.

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It will be interesting to see what the new owners do with this property. The other Convention Center casino is the Provence on North Broad http://theprovencecasino.com/. If this applicant wins the nod from the Pennsylvania Gaming Control Board, it probably is going to wake up the North Broad Street corridor and lead to more rapid development there. And one of those projects would probably include the Divine Lorraine: http://www.phillymag.com/articles/eric-blumfenfeld-big-dreams-north-broad-street/

But I think the South Philly slots barns will mostly feed only off the local population, and do the least to import tourists or inspire other development.http://phillystylemag.com/living/articles/who-will-win-philadelphia-gaming-licensehttp://articles.philly.com/2013-02-14/news/37081581_1_wynn-philadelphia-slot-machine-casino

With all of this casino applicant activity, Sugar House is looking to up its game with an expansion. They are looking for $410 million in financing to assist with this, though only $155 million is intended for construction. I think Sugar House will fair worse if a South Philly slots barn is selected. I have a hunch that a South Philly casino will cannibalize market share from other nearby Pennsylvania casinos the most. My gut feeling is Sugar House is going to have a real battle on its hands for gamblers no matter which casino applicant wins the license.http://planphilly.com/articles/2013/04/12/sugarhouse-submits-new-expansion-plan-to-state-will-seek-410m-in-financing

A concern I have for the Convention Center casinos is parking pressure. It can be very expensive to park a car in Center City. If one of these applicants wins the license and goes on to become very successful, it’s going be more difficult to find a parking spot and even more expensive, since scarce supply and strong demand leads to price increases. Plus there is the impact on the city’s traffic grid. I sure do hate sitting in traffic…

Eventually, a new casino will be built. For people in the construction trades, it will add to their growing bonanza of work. Jobs will be created. Tax revenue for the city and state will be created. Will it drive tourism and create positive ripple effects? Will what is promised actually be delivered? Philadelphia Inquirer architecture critic Inga Saffron reminds us in her April 19th column that the casino applicants are not showing us plans. Instead, it is bait. She points to what Sugar House promised in 2006 and what we now have in 2013: http://www.philly.com/philly/home/20130419_Changing_Skyline__Reviewing_the__plans__for_Philly_s_second_casino.htmlhttp://nakedphilly.com/fishtown/sugarhouse-unveils-unimpressive-expansion-plan-pays-some-fines-while-theyre-at-it/

Restaurant Scene Take a look at this article titled: “Philadelphia is a destination city for the hottest new chefs”http://articles.philly.com/2013-03-25/news/37983885_1_chefs-jean-georges-torrisi-italian-specialties “The city’s already vibrant dining scene… is in the throes of its biggest influx of high-profile culinary talent ever.” This above article basically says it all about the topic. We all know it… Philadelphia has a huge number of

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Top: The Wistar Institute’s Robert & Penny Fox Tower.

Bottom Left: 3737 Market Street, just getting underway.

Right: A rendering for the 3800 Market Street Tower.

University City is keeping construction workers busy. Among some of the projects:

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great places to eat.http://blog.philadelphiarealestate.com/what-food-and-wine-didnt-have-to-tell-us-about-east-passyunk-ave-nue/http://philly.eater.com

Interesting article about possible newcomers in the restaurant scene: http://philadelphia.foobooz.com/2013/04/18/marc-vetri-on-eataly-philadelphia-something-awesome-will-happen-at-8th-and-market/

There are 419 FULL SERVICE restaurants and 296 outdoor cafes in Center City according to the Center City District’s “State of Center City 2013” report.http://www.centercityphila.org/socc/index.php

Let’s take a look at some of the other real estate and development projects that are out there:

South Street BridgeIt’s got some jazzy night-time lighting:http://nakedphilly.com/uncategorized/tonight-south-street-bridge-lights-up-officially/http://planphilly.com/eyesonthestreet/2012/07/11/south-street-bridge-lighting-gone-wildhttp://potholes.phila.gov/southstreetbridge

Wistar Institute Research Building - Robert and Penny Fox Tower36th & Spruce7 storieshttp://nakedphilly.com/university-city/update-demolition-at-wistar-institute/http://www.wistar.org/news-and-media/press-releases/wistar-institute-breaks-ground-100-million-expansion

University City Science Center 11 Story Tower272,700 square feet3737 Market Streethttp://blog.philadelphiarealestate.com/3737-market-st-parking-lot-to-sprout-labs-petri-dishes-and-11-story-tower/http://technical.ly/philly/2012/08/17/university-city-science-center-announces-construction-to-begin-on-med-ical-and-startup-facility-at-3737-market-street/http://www.bizjournals.com/philadelphia/news/2012/08/15/science-center-to-construct-building.html?page=all

University City Science Center 17 Story Tower3400 Market Streethttp://blog.philadelphiarealestate.com/new-science-center-tower-at-34th-market-one-step-closer-to-realiza-tion-if/

Temple University Science Education & Research Center250,000 square feet at a cost of $137 million.Expected completion: June 2014http://www.temple.edu/2020/projects/science-technology/index.asp

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Top right: LeBow College of Business Academic Center well underway.

Distant left and bottom: Drexel University’s Chestnut Square project.

Drexel University Construction Activity:

Drexel University is looking to add 10,500 more students by 2021.Aims for 6970 additional students by 2017.

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Montgomery Avenue Garage – Temple UniversitySpaces for 1100 carshttp://www.temple.edu/2020/projects/montgomery-garage/index.asphttp://temple-news.com/news/2013/01/30/parking-garage-on-east-end-of-main-campus-nears-completion/

Temple University LibraryBudgeted to cost $190 million. Not yet designed.http://philly.curbed.com/archives/2013/03/29/fancy-nordic-library-coming-to-temple.php

Temple University Boathouse http://articles.philly.com/2013-01-26/news/36550344_1_new-boathouse-temple-plan-boathouses-and-other-structureshttp://temple-news.com/news/2013/03/19/boathouse-history-complicates-process/

Canal Street Entertainment Complex3000 person concert venue. Close to Sugar House Casino. It’s potentially a big deal:http://www.citypaper.net/blogs/nakedcity/canal-street-fishtown.htmlhttp://planphilly.com/articles/2012/12/11/planning-commission-approves-plan-canal-street-entertainment-complex-conditions

And for now, the project is in limbo:http://articles.philly.com/2013-04-17/news/38619291_1_penn-treaty-village-canal-street-ajax-metal-co

FringeArtsRace Streets & Columbus Boulevard

This should be an interesting addition to the Penn’s Landing and Race Street Pier area. Includes a 240 seat theater, recording studio, a restaurant/bar and an outdoor plaza. FringeArts leadership believes their project will have a catalystic effect toward more riverfront development… sees “next great wave of development happening at the waterfront.”

FringeArts website: http://www.livearts-fringe.org/http://www.bizjournals.com/philadelphia/news/2013/02/25/philadelphia-live-arts-festival-and.html?page=allExcellent video interview: http://planphilly.com/articles/2013/02/12/transformation-from-pumping-station-to-philly-fringe-home-beginshttp://www.uwishunu.com/2013/03/exciting-news-philadelphia-live-arts-festival-and-philly-fringe-is-now-fringearts-set-to-open-new-permanent-facility/

Pier 9, also across the street from FringeArts, has improvements planned:http://planphilly.com/articles/2012/04/27/pier-9-study-says-it-will-cost-35-million-keep-structure-deteriorat-ing-11-million-achieve-full-potenPhoto of Pier 9: http://www.flickr.com/photos/iccdude/8418128149/

South Bowl New bowling alley coming to Oregon Avenue in South Philadelphiahttp://www.passyunkpost.com/2013/02/south-bowl-on-oregon-ave-is-actually-going-to-happen.htmlhttp://www.philly.com/philly/food/North-Bowl-plans-a-South-Philly-offshoot.html

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Mormon Temple construction activity.

Big hole in the ground. Project appears to be full-speed ahead.

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Cheesecake Factory15th & WalnutNoteworthy new building – see the rendering: http://www.phillymag.com/realestate/new-projects/cheesecake-factory-philadelphia/

Mormon Temple1700 block of Vine Streethttp://philadelphiamormontemple.comhttp://planphilly.com/articles/2012/11/08/art-commission-grants-final-approval-mormon-templeIt appears construction has begun. There is now a big hole in the ground here (for underground parking).

Family Court Building1501 Arch Street14 storieshttp://blog.philadelphiarealestate.com/family-court-building-finally-rising/The old Family Court building is at 1801 Vine. It was completed in the early 1930’s and looks identical to the library across the street, which was completed 20 years earlier. The city has put the old Family Court building in play and at some point the property will be redeveloped. Currently, five developers are competing for the chance to turn the building into a hotel. Don’t expect a Motel 6 here. It’s going to be fancy.

Nearby, another property is in play:“Also up for sale will be The Holy Family Center and the northern portion of the Archdiocesan Pastoral Center’s parking lot at 17th Street and Vine Street in Philadelphia. The 20,000 square foot former convent presently serves as office space for various Catholic Social Services agencies…”http://www.catholicnewsagency.com/news/philadelphia-archdiocese-to-sell-major-properties/

This property and the old Family Court building both are very close to scenic Logan Circle and Sister Cities Park.

Penn Medicine at Washington Square800 Walnut Street153,000 square feethttp://www.uphs.upenn.edu/news/News_Releases/2011/10/washington-square/http://buildingphilly.com/upenn-med-800-walnut-april-1st/

Jefferson University Health Professions Academic Building901 Walnut Street85,600 square feet, 11 storieshttp://www.jefferson.edu/web_options/tags/news_fullstory.cfm?articleID=342

Have you been by University City recently?

Drexel, the University of Pennsylvania and Temple up on North Broad Street have been on a building binge. It is easiest to see the progress when taking a regional train that goes by the Children’s Hospital area of University City… the medical district, where the Civic Center used to be. There are all these new towers, with more on the way.

Article from 2007 about the expansion: http://www.bizjournals.com/philadelphia/stories/2007/03/05/sto-ry1.html?page=all

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Above: Sidewalk and streetscape improvements along the Ben Franklin Parkway.

Left: Von Collin Field got a makeover.

Park Enhancements

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AND… they are expanding eastward across the river. CHOP is contemplating the construction of three 26 story towers with a total of 1.2 million square feet, along with parking garages able to hold 1600 cars on newly acquired land across the river.

http://articles.philly.com/2012-07-07/news/32566762_1_master-plan-research-center-facilities Further expansion across the river: http://planphilly.com/eyesonthestreet/2013/05/10/penn-aims-to-spur-inno-vation-in-lower-schuylkill-at-south-bank-campus Where are all these high-paid researchers and health care professionals going to live? This is the kind of thing that supports and raises real estate values and sparks the development of more residential towers. My guess is developers are eventually going to put residential towers along the Schuylkill River in every possible site in that area.

By the way, Drexel University is looking to expand enrollment by 10,500 students by the year 2021.http://goo.gl/NgZxR

According to the latest information there are 33,728 college students enrolled in Center City colleges and schools of higher learning. And University City, along with Temple University’s Main campus adds another 83,000 college students. (Source: “State of Center City 2013” report by the Center City District.) These students really add to the city’s growing vibrancy.

Navy Yard

A few years ago I explored the 1200 acre Navy Yard for the first time. It was sort of mind-blowing to me. There was a lot to discover in this hidden town within the city. It had beautiful park-like areas, interesting old buildings, and water views. Gun violence, street crime, the homeless and mentally ill, along with the city’s hustle and bustle, were all kept out by the guards at the entrance gates. Wow… it was strange to be in the city, yet simultaneously so far away from it.

The navy still has activities here, but not on the scale when this was a full-fledged military base. Now it is mostly overseen by the Philadelphia Industrial Development Corporation. One hundred thirty companies are now located at the Navy Yard employing 10,000 people. About a third of these companies have received a tax break for locating there.http://www.foxnews.com/us/2013/02/11/business-booms-at-old-naval-shipyard-in-philadelphia/

Take a look at these renderings: http://technical.ly/philly/2013/04/15/navy-yard-technology-innovation/The master plan for the Navy Yard envisions an eventual peak of around 30,000 private industry workers, including 1000 apartments. A problem for this location is the lack of a subway stop on the Broad Street line. The line ends at AT & T Station on the outskirts of the stadium district. It is a great inconvenience to public transit commuters. For now they are using shuttle buses provided by the Navy Yard. The subway extension is needed, but there is no money on the horizon for it. www.navyyard.orgwww.pidc-pa.org/navy-yard

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Top: 3 Parkway Plaza, completed in 2005. Eat at Cafe Cret. Play chess. Or just sit and watch the city action. More amenties like this are coming to Dilworth Plaza, the Ben Franklin Parkway, and probably Reyburn Plaza.

Bottom: The pocket park at 1707 Chestnut Street, recently updated at a cost of $500,000.

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Philadelphia International Airport

Philadelphia International Airport seemingly is always growing and improving. The airport currently handles a little more than 30 million passengers per year, and this number is expected to grow to 52.2 million by 2030. http://www.phl.org/news/Pages/runwaycapacityvid.aspx

Smaller airport initiatives:

http://articles.philly.com/2013-03-25/business/37983917_1_bathrooms-ceramic-tiles-city-owned-airporthttp://www.bizjournals.com/philadelphia/blog/natalie-kostelni/2013/04/clubbing-at-phl.html

New Airlines flying out of PHL:

Spirit Airlines – beginning in April 2013.JetBlue – beginning in May 2013. Qatar Airways - beginning in March 2014Virgin America – began operations in 2012.Alaska Airlines – began operations in 2012.

U.S. Airways is adding direct flights from Sao Paulo, Brazil to Philadelphia in October 2014. Economically, it’s important news when new direct international flights are added. http://philadelphia.cbslo-cal.com/2013/04/14/us-airways-american-merger-could-be-a-big-deal-for-philly-travelers/

Whether the airport will fully realize its expansion plans is currently unclear. The possible merger of US Air and American Airlines is causing uncertainty. And US Air, and other groups, are objecting to both the high cost and what the changes mean for neighboring stakeholders (including Tinicum Township residents). On the plus side, some are upbeat the merger will lead to new direct international flights to countries like China, Japan and perhaps India.

Currently, the airport offers non-stop flights to 88 domestic and 37 international destinations through more than 30 airlines operating out of the airport’s 7 terminals.

Park Enhancements & New Park Creation

When the Dilworth Plaza transformation is completed in June 2014, locals and tourists are going to love it. This major new $55 million transit gateway and green public space on the front yard of City Hall will become an instant magnetic hit that will wow people with its programmable dancing water fountain display, its cutting edge train arrival announcement system, its comfortable café, and its well-manicured park environment. It is just one of many impressive changes that are underway when it comes to parks and improved public spaces and corridors.

http://katzcreativegroup.com/projects/dilworth/ http://www.youtube.com/watch?v=q-Nk03Lsw9o

What it means…

Attracting new residents to a city is important, because it stimulates demand for housing, sparks new residential development, and creates construction jobs. Along the way, tax revenue is raised for the city and

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When Philadelphia creates a new park, the city does the job right.

Top: Franklin Square Park, recognized nationally as being one of America’s best playgrounds.

Bottom: Rendering of the Schuylkill Banks Boardwalk. Construction is now in progress.

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state in the form of real estate transfer tax, state income tax, city wage tax, sales taxes, and other ripple effect taxes. These new sources of tax revenue give the city more money to spend on projects which further help the city to grow and attract new residents.

New residents mean more opportunity for local businesses.

More opportunity means more jobs are supported and new jobs are created

One of the things that can help draw in new residents is a fantastic collection of parks… and this is what Philadelphia has in the making right now.

Franklin Square Park is a recent success story.

This is one of the 5 original squares created under William Penn’s plan for the city in the late 1600’s. These squares were meant to serve as “fire breaks” in order to avoid a fire similar in calamity to what happened in London in 1666, when 70,000 homes burned to the ground.

Not so long ago, Franklin Square was the forgotten square… the place where the homeless and mentally ill reigned — for decades — and where few normal people would go. Today, it has the distinction of being named by Yahoo.com as one of the top 5 playgrounds in the United States. That’s because a major refurbishment of the park was completed in July 2006. It is now a wonderful, safe place for families – with its old-fashioned carousel, miniature golf, new playgrounds, Stephen Starr burger/hotdog/milkshake joint, center-piece fountain, and well-maintained grounds.

* When Philadelphians re-invent a park, they do it right! *http://historicphiladelphia.org/franklin-square/what-to-see/

Schuylkill Banks Trail

Wow… People love this recently created recreational trail and it attracts a lot of users. People use the trail as a safe place to get their walking or jogging exercise. Bicyclists and inline skaters use it. Dog walkers certainly use it – since the trail connects with the fantastic all-new and improved Schuylkill River Dog Park, which features an anti-microbial K-9 grass surface. It is also simply a great place to relax by the river. You can even do a kayak tour here and ride a riverboat. AND… the trail is being extended further south along the Schuylkill River, which is sure to make the trail even more popular. The Schuylkill Banks Boardwalk will connect the trail to the South Street Bridge and is expected to be completed by the end of 2014.http://buildingphilly.com/schuylkill-banks-boardwalk/www.schuylkillbanks.orgwww.fsrp.org/npb.html

The dog park is terrific. Can you imagine 100 pugs or 30 Boston terriers all having a great time with each other in a safe outdoor place? Sometimes people organize these kinds of meet-ups at the park. Here is one of those groups: www.facebook.com/BostonTerrierPhilly Check out their cool logo.www.k9grass.com/safety-pressrelease.html

Race Street Pier Park

Race Street Pier was built in 1896. In recent times, it was simply an unused, derelict, 540 foot long pier full of overgrown vegetation while existing in a state of on-going decay.

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Top: The scenic Ben Franklin Parkway.

Bottom: Rendering of Paine’s Park, due to open May 22, 2013. Right: Artwork on the temporary construction fencing surrounding the Paine’s Park site.

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Two million dollars was spent to stabilize the pier. Then it was transformed into the fantastic park it is today– with expansive views of the mighty Delaware River, the majestic Ben Franklin Suspension Bridge, and the city skyline.

The “Race Street Connector” was also completed. It’s part of a fancy lighting project intended to lead Old City walkers through the I-95 underpasses to the waterfront.

FringeArts is right now in the process of transforming an old pump house into a 240 seat theater for performances. A rehearsal studio “to elevate artistic development for local and international artists” will also be housed inside. In addition, an outdoor plaza is part of the FringeArts plan, as well as a restaurant/bar. This building is directly across the street from Race Street Pier.

Close to the FringeArts festival hub is the newly remodeled and rebranded Holiday Inn Express.

By the way, in accordance with the “Master Plan for the Central Delaware Waterfront,” there will be open space every half mile along the Central Delaware River for 6 miles. Mayor Michael Nutter says the Race Street Pier Park is just the beginning for Philadelphia in building a world class waterfront.

http://www.phillylovenotes.com/love-note-72-race-street-pier-the-past-present-and-future-of-the-city-gary-steuer/http://www.uwishunu.com/2011/05/the-amazing-new-race-street-pier-park-officially-opens-today-at-2-p-m-with-a-ribbon-cutting-by-mayor-nutter/http://friendsofracestreetpier.com/

The Penn’s Landing Cap

Another part of building a world class waterfront is “capping” I-95 and Columbus Boulevard at Penn’s Landing between Walnut and Chestnut Street so that Old City will be reconnected with the waterfront. Take a look: www.planphilly.com/articles/2013/02/10/http://articles.philly.com/2013-04-06/news/38309727_1_waterfront-project-delaware-river-waterfront-corp-waterfront-advocateshttp://www.bizjournals.com/philadelphia/news/2013/04/04/redevelopment-of-penns-landing-takes.htmlhttp://hiddencityphila.org/2013/04/penns-landing-design-begins/http://www.phillymag.com/realestate/for-sale/hargreaves-tapped-for-delaware-waterfront-project/

The Delaware River Waterfront Corporation has already selected a design and engineering firm, at substantial cost, to conduct a feasibility study on the cap. Funding to actually roll-out with construction is highly uncertain.

Similarly uncertain is where the funds will come from to continue to transform the Ben Franklin Parkway, but this lack of funds is not stopping the Nutter administration.

Major Ben Franklin Parkway Enhancements In The Pipeline

At the February 4th public meeting which officially revealed the results of a $240,000 study, an effort aimed at making our Ben Franklin Parkway one of the foremost cultural parkways in the United States, at least 400 people were in attendance to hear about the study’s recommendations.

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Top: Spectacular Swann Fountain, and its surrounding park, were restored in 2006.

Middle: The recently opened Sister Cities Park, bordering Logan Circle.

Bottom: The spray-ground at Sister Cities Park. Kids love it.

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In the early 1900’s, twelve hundred buildings were demolished to create the Parkway. And it took 11 years to bring down all those buildings.

On the Parkway, we have the Philadelphia Museum of Art, the Rodin Museum, The Barnes Foundation Museum, The Franklin Institute, the Academy of Natural Sciences, and the city’s main library. We also have Swann Fountain and the newly reborn $5.2 million, 1.3 acre Sister Cities Park at 18th and the Parkway, which features a café and visitors center, a children’s discovery garden, a little boat pond, and a flat surface fountain that erupts water off and on from 10 different ground-level spouts. (A spray-ground.) Kids love it.

Plus, we also have Three Parkway Plaza which was completed in 2005 and features “Café Cret,” chess tables, and other places to sit and relax while enjoying your café food or pondering the plaza’s statues.

Planners want to transform other spaces on the parkway using the same high quality effort that went into Sister Cities Park and Three Parkway Plaza, and to make people – not cars – the beneficiaries.

The goal is to re-urbanize the Parkway. Right now, it is 17 acres of under-used public space, and an 8 lane highway that is clearly hostile to the casual pedestrian.

“Traffic calming” measures will be implemented. Gateways along the edges of the Parkway will welcome residents from adjoining neighborhoods. Amenities such as: places to eat, restrooms, and umbrella-ed sitting areas, like at “The Porch at 30th Street Station” (see front cover), will be added. The parking lot in front of the Art Museum will be shut down and re-purposed. The Von Collin Memorial Baseball Field & Playground areas will be beautified. Gardens will be added. And the Vine Street Expressway will be capped in front of the library, creating more park space.

http://www.newsworks.org/index.php/local//philadelphia/50405-so-what-does-more-park-less-way-mean-for-ben-franklinThe PennPraxis report: http://issuu.com/pennpraxis/docs/moreparklessway

Love Park Improvements

There is currently no internet buzz out there about the big renovations planned for Love Park. But eventually, the aging 810 car parking garage underneath it is going to need to replace – at a minimum – the water resistant membrane that is at the top of the garage, which means they will be digging up Love Park.

http://articles.philly.com/2012-03-08/news/31136219_1_810-car-parking-garage-philadelphia-park-ing-authority-renovationshttp://hiddencityphila.org/2012/08/city-to-sell-love-park-garage/gvdz13dwzp68dbd7/http://planphilly.com/articles/2011/09/07/love-park-parking-garage-re-do-project-delayed-fundinghttp://articles.philly.com/2012-08-29/news/33451710_1_potential-sale-city-assets-love-parkhttp://articles.philly.com/2012-08-11/news/33138278_1_love-park-trash-cans-mark-fochthttp://philadelphia.cbslocal.com/2012/08/28/city-of-philadelphia-eyes-sale-of-parking-garage-under-love-park/

Reyburn Plaza

This plaza is across from City Hall and next to the Municipal Services Building. It needs updating. Visit page 34 of this report to see possible changes to this plaza: http://phila2035.org/DP_Centralbook_3_12.pdf

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Race Street Pier

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Franklin’s Paine Park

Coming to fruition right now, after 10 years of effort, is the $4.5+ million Franklin’s Paine Skate Park, which is on the outskirts of the Parkway, along the Schuylkill Banks Trail. Its grand opening is set for May 22, 2013. Skateboarders are going to love it.http://planphilly.com/eyesonthestreet/2013/04/15/paine-s-park-will-open-may-22 Across the Schuylkill River is the new, very high quality, $46.5 million “Penn Park” in University City, along with the $2.5 million Spruce Street Plaza, and the new Shoemaker Green Park.http://articles.philly.com/2011-09-13/news/30149709_1_open-space-athletic-fields-parking-lothttp://nakedphilly.com/tag/penn-park/http://planphilly.com/articles/2011/07/11/penn-park-oasis-west-philadelphia

*Info Nugget: The word “Schuylkill” (skoo-kill) means “hidden river” in the Dutch language.

Early Dutch settlers named this river. A while ago there was actually talk of installing 20 fountains running down the middle of the Schuylkill River for the purpose of drowning out highway noise from the Schuylkill Expressway and to beam advertisements on them. Getting back to the Delaware River… Coming up is the Pier 53 ecological wetlands project, which is behind the Sheet Metal Workers’ Hall and the Coast Guard Station. It will be a nature type of park that will increase waterfront access for the public. The ultimate plan is to extend the wetlands park to Pier 70, behind Walmart. http://planphilly.com/articles/2012/11/19/art-turning-pier-53-park We also have the upcoming “Penn Street Trail” under construction along a portion of the Delaware Riverfront which will connect Spring Garden Street with Sugar House Casino’s portion of the trail. The trail will include separate paths for walkers and bicyclists and should be completed by summer 2013.http://planphilly.com/articles/2013/01/31/construction-of-penn-street-trail-starts-next-month Spring Garden Greenway This proposed $30 million initiative will have bike lanes that are separated from the roadway. http://philly.curbed.com/archives/2013/04/19/spring-garden-greenway-to-connect-two-rivers-separate-bikes-and-cars.php#more Reading Railroad Tunnel and Viaduct Park A walking/bicycle trail is envisioned for the abandoned Reading viaduct and tunnel: http://hiddencityphila.org/2013/04/plan-for-city-branch-rail-park-emerges/

Take a look at this massive abandoned train tunnel in the heart of the city: http://articles.philly.com/2012-11-17/news/35157783_1_high-line-bus-rapid-transit-brt Pretty cool, huh? It is also possible it will become a route for a rapid transit line. The battle is underway between the different groups over which direction the tunnel’s future will go.http://www.jjtiziou.net/community/philadelphias-secret-garden

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Growing In Popularity

Top: Bicycles locked to the fence at Rittenhouse Square Park. It is not allowed, but where else can you lock-up a bike?

Left: Full bicycle racks in University City.

A major bike sharing program is coming to Philadelphia in 2014. So you will soon see a lot more bicycles in the city.

Philadelphia considered America’s 4th most bikeable city by Walk Score.

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Bartram’s Trail is another project: http://blog.bicyclecoalition.org/2013/03/new-renderings-released-of-bartrams.html

Under development is also the Baxter Trail and the K & T trail.

Port Richmond Trail – a $3.3 million project: http://philadelphia.cbslocal.com/2012/10/22/construction-set-to-begin-on-new-port-richmond-recreation-trail/http://www.newsworks.org/index.php/local//philadelphia/45931-work-begins-on-port-richmond-trail-along-delaware-river

Pocket Parks & Neighborhood Parks

We’ve got “pocket parks” being either rejuvenated, reborn, or created from scratch. Look at the tiny oasis at 1707 Chestnut Street known as Chestnut Street Park – also known as John F. Collins Park. The Center City District recently pumped $500,000 into fixing it up: http://tclf.org/landscapes/john-f-collins-park

Catharine Park 22nd & Catharinehttp://philadelphianeighborhoods.com/behind-the-news/south-philadelphia-catharine-park-meets-matching-challenge/

Hawthorne Park – a $2 million investment12th & Catharine Streetshttp://planphilly.com/articles/2012/07/05/citys-newest-plot-public-green-space-hawthorne-park-openshttp://articles.philly.com/2012-08-18/news/33249381_1_hawthorne-empowerment-coalition-hope-vi-torti-gallas-partners

Carpenter Green17th & Carpenter Streetshttp://www.citypaper.net/blogs/nakedcity/In-public-private-parks-philly.html

Julian Abele Park22nd & Carpenter Streetshttp://blog.philadelphiarealestate.com/renovation-of-julian-abele-park-proceeds/

The list goes on and on. Here is a more comprehensive source: http://www.philaparks.org/ (Click “Park Directory.”)

Bicycling is big in Philadelphia!

And there is a lot of momentum with it. http://www.smartplanet.com/blog/bulletin/bicycle-commutes-on-rise-in-philadelphia/3790

The popularity of bicycling in Center City can be verified by looking at the bike racks on weekdays. In some places it can be difficult to find a good spot to park and lock-down your bike.

In the pipeline is a substantial bike-sharing program, coming in 2014: http://bikesharephiladelphia.org/http://us6.campaign-archive2.com/?u=9004ed2404ff5a538f56fe5b7&id=271d4850a1

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North Broad Street Corridor

Top: Convention Center on left. City Hall straight ahead.

Bottom: Major construction nearing completion at Temple University... with more on the way.

As the city grows, this stretch of Broad Street, between City Hall and the Temple Campus, will probably become much more developed.

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http://www.pecpa.org/PhiladelphiaBikeShareRFPhttp://connectthecircuit.org/

The bike share program will create 120 bike sharing stations. Locals and tourists will be able to borrow a bike with the swipe of a visa card or some kind of membership card. Officials are looking to pump $8 or $9 million into this program. So if you had an idea to start-up a bicycle rental company, it might not be a good idea, as a major competitor is coming in.

http://articles.philly.com/2012-12-09/news/35690927_1_bike-share-bike-lanes-andrew-stober

Bike lanes on some city streets have been added. More are on the way. Here is a map of them:http://phillymap.com/

Annual Philly Naked Bike Ride: (If you can handle it.) http://vimeo.com/48264628www.phillynakedbikeride.org

(I happened to witness some of this last year. They hoot and holler as they ride, drawing attention to themselves, then people on the street start laughing when they see the hundreds of nude people coasting by.)

A competition to inspire artistic bike racks will be happening soon.

Streetscapes & The Broad Street Corridor

“New Vision For South Broad Street” is a competition for ideas on how to improve the south section of “The Avenue of the Arts.” At the conclusion of the competition, instead of a winner being announced, the organizers decided to hold a Round 2 among the two finalists. News on the outcome of this second phase of the competition is late. So… we should be getting news soon (?).

http://blog.philadelphiarealestate.com/avenue-of-the-arts-competition-winners-announced/

“Avenue of the Arts North” is getting $14 million in streetscape improvements to extend from City Hall to the Temple University campus. This project is expected to get rolling in December 2013 with completion happening in late summer or fall 2014. (This project is also known as “The North Broad Street Initiative.”)

http://www.bizjournals.com/philadelphia/print-edition/2012/10/26/a-broad-plan-for-the-avenue-of-the-arts.html?page=allhttp://www.avenueofthearts.org/eblasts/2013April/2013-03-26_AveFlash.html

New street lighting has gone up throughout the Center City area… more than 2100 lights since 1996, doubling and in some cases tripling the amount of night-time illumination on city streets and sidewalks. This lighting program continues.http://www.centercityphila.org/pressroom/prelease092812.php

Active & Engaged Citizenry

Another thing that impresses me about Philadelphia is that a lot of people care. There is an active and engaged citizenry here. Check out this partial list of groups that care:

http://www.nextgreatcity.com/coalition

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Delaware River Waterfront

Above: The developers of Waterfront Square, shown in the background, were true pioneers to build in the isolated riverfront area north of the Ben Franklin Bridge. They were way early. But the waterfront area along this stretch of the Delaware River will see further development on a much larger and more widespread scale, eventually.

Left: The new home of FringeArts, a 110 year old pumping house that is undergoing a $7 million transforma-tion. It is expected to be a hub of new energy along the waterfront and a catalyst for further development.

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Some care for local causes. Some care for the overall good of the city. Many care very much about their own neighborhoods, and they do things like assemble neighbors into a cohesive group – for example by creating a Facebook group for their neighborhood or for their local park. They form their groups and then they rally to make the changes they seek. One example of this is Triangle Park.

Triangle Park was a small piece of vacant ground that was formerly a gas station. The neighbors transformed it into a community garden – something the neighborhood was proud of. The landowner recently demolished most of these improvements. And now the neighbors are mobilizing to get their park back. You can read about it here.

http://philly.curbed.com/archives/2013/04/16/triangle-park-demolished-save-for-a-few-trees.phphttps://www.facebook.com/TrianglePark Stories like this are not uncommon here. Many people in Philadelphia passionately care about their neighborhoods, and strive to make them better. Stretching for new and improved parks is a common pursuit among community groups.

Strong Public Transit Infrastructure

SEPTA runs quite an operation. In fact, the American Public Transportation Association recognized SEPTA as being the best large transportation system in North America. In 2012, SEPTA had its highest ridership in 23 years. I like their new Silverliners (their new regional rail cars). A total of 120 are now in service. They continue to expand their hybrid bus fleet. (Hybrids are so much quieter than their straight diesel-powered counterparts. I say make them all hybrids!) Here and there, station renovations have moved forward, thanks partly to stimulus funding. But there needs to be more funding for Philadelphia to realize its potential of becoming a great city. I hope SEPTA will soon get more funding to remedy weaknesses in their game.

Heading into the future, in our region, you’ll see denser housing near subway and train stops, wherever possible.

Under consideration with AMTRAK is high speed rail that could get a passenger to New York City in 37 minutes and have stops in Center City and the airport. It seems to be a pipedream among planners at the moment. But what if that became a reality? Would more New Yorkers of affluent means choose to live in Center City? Hmm… Maybe in 15 or 20 years from now that will happen. At the moment, nobody in power has got a fire under their ass to spark real progress with it. http://axisphilly.org/article/amtrak-in-the-keystone-state-high-speed-rail-by-2040/

Growing Start-up Community

Entrepreneurship groups have been around for a while in Philadelphia, but it feels like this activity is at an elevated state now. There are a lot more incubators, accelerators and work-sharing spaces.

A partial list:

Indy Hall http://indyhall.org/

Venturef0rth www.venturef0rth.com

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Navy Yard Boom Town In Progress!

The Navy Yard is a future city within a city that will one day be completely built-out.

Above: New office buiding for GlaxoSmithKline.

Left: An older building at the Navy Yard occupied by Urban Outfitters.

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Benjamin’s Desk www.benjaminsdesk.com

The Exchange http://www.flyingkitemedia.com/features/coworkingtheexchange040913.aspx

3rd Ward Philadelphia http://www.phillymag.com/realestate/new-projects/brooklyns-3rd-ward-has-cho-sen-philadelphia-for-its-second-location/

Tribe Commons http://articles.philly.com/2013-01-25/news/36550248_1_office-space-jewish-community-entrepreneurs

Hive76 www.hive76.org

Juice Box www.coworkingforparents.com

Culture Works http://www.flyingkitemedia.com/features/cultureworkscoworking0524.aspx

NextFab Studio www.nextfabstudio.com

Good Company Group www.goodcompanygroup.org

Seed Philly www.seedphilly.org

The Enterprise Center www.theenterprisecenter.comFeatures an incubator for culinary enterprises: http://theenterprisecenter.com/initiatives/cc/

The population in Center City has been getting younger. There is young energy. Combined with all of the area’s university students, the start-up community in Philadelphia is definitely rising. And the city is trying to push this phenomena forward.

The Missing Component - New office towers in the business district.

What’s the problem? The current low rents don’t justify the cost of new office tower construction without government subsidies. And the city’s tax situation is a hindrance. The state has a flat 9.99% corporate income tax rate that also applies to Pennsylvania limited liability companies. On top of this, Philadelphia has a .14% tax on gross receipts, whether or not a company makes any money. Then there is the wage tax. It WAS 4.465% for residents. Right now it is at 3.928% for residents and 3.4985% for non-residents.

http://www.phila.gov/Revenue/individuals/taxes/Pages/EarningsTax.aspx

Then there is the state personal income tax of 3.07%.

If you have a sole proprietorship or partnership, good news – the wage tax does not apply to you. Instead you pay a 6.45% net income tax to the city! Plus a .14% gross receipts tax, whether or not you make any money! Plus the cost of your annual “commercial activity license,” ($50; this will be phased out in 2014).

BUT, there is a program that might offer some relief. It is called “Jump Start Philly.” https://business.phila.gov/Pages/JumpStartPhilly.aspx?stage=Start&type=Construction&section=Taxes&BSPContentListItem=Jump%20Start%20Philly

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The tower has had a very positive effect commerce-wise.

Left: A substantial, very nice market is below.

Comcast Tower

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You MIGHT NOT have to pay the “business income and receipts tax” for your first 2 years of operations if you qualify. There is an effort by state legislators to knock down the corporate income tax to 6.99% while making it more difficult for corporations to shift income to other states with lower or no corporate income taxes. And it is possible to locate in Philadelphia and reap significant tax advantages through a Keystone Opportunity Zone type of program.

The 58 story, 975 foot tall Comcast Tower is very interesting to me. The giant 2000 square foot video wall in their lobby is a wonderful, free public amenity that wows locals and tourists. I like that. But what’s really impressive is the impact this company’s headquarters has on the city.

Take a look at the underground Market & Shops at Comcast Center. www.themarketandshopsatcomcastcenter.com

It’s a really nice, upscale place to buy and enjoy lunch from a number of high quality food vendors. You can get an excellent smoothie, purchase seafood, bakery delicacies and more. At lunch-time, this place is humming with commerce. It’s very popular. And they’ve got face control. If you look and act homeless or mentally ill, you will probably be shooed back into the Suburban Station Concourse. In summary, the Market & Shops at Comcast Center is a nice, clean, safe, underground food oasis that rocks.

Just by being there, the Comcast Tower floods the local area with hungry people. New businesses have been created because of it. Other types of businesses — like service suppliers and knowledge suppliers — have moved into the area just to be close to it. And visitors conducting business at the Comcast Tower stay in area hotels. In addition, people that work at the Comcast Tower also have chosen to live nearby. This supports residential real estate values.

A study showed that the mere construction of the tower generated 17,200 jobs and $2 billion worth of economic activity for Pennsylvania:

Article: http://www.bizjournals.com/philadelphia/stories/2008/06/02/daily44.html?page=all The report: http://www.econsult.com/articles/060308_Comcast_Report.pdf

In addition to the one-time, upfront economic impact from the construction, there is also the year-after-year benefits that emanate from the business’ operations. (In 2008, it was estimated Comcast would generate $23 million in tax revenue for the city and $49 million for the state.)

Imagine the impact if 10 or 50 or 100 large employers built new, fresh, modern headquarters somewhere in Philadelphia. That would change things… Yet, unfortunately, it is very expensive to build in Philadelphia. Labor unions play a role in that. And if you try to build without union labor, well – harassment like this might come your way: http://www.nrtw.org/en/blog/philadelphia-union-bosses-resort-threats-051020122http://www.philly.com/philly/video/BC1750522548001.html Those found guilty of this attack where given a slap on the wrist: http://articles.philly.com/2013-01-17/news/36396485_1_michael-pestronk-union-protesters-goldtexhttp://www.nytimes.com/2013/01/18/us/philadelphia-vandalism-seen-by-some-as-union-intimidation.html?_r=0

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EntertainmentTop: Sugar House Casino is looking to move forward with a $155 million expansion. They just received regulatory approval for it in mid-May.

Bottom: Xfinity Live, Philadelphia’s newest major entertainment attraction, opened in Spring 2012. It is a fairly easy stroll from the AT&T Station of the Broad Steet subway line. There is a possibility of a future expansion of the complex.

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Here is a recent protest at another construction site: http://blog.philadelphiarealestate.com/spring-surprise-protest-at-the-lombard-estates/

Another issue that may be cropping up when it comes to building towers in Philadelphia is a shortage of skilled labor and equipment, as there are so many projects underway, tying up these resources right now. Economics 101 teaches that increased demand for skilled labor and things like cranes leads to increased costs.

The Federal Reserve’s April 17, 2013 “Beige Book” report for Philadelphia says builders are finding “good labor increasingly scarce.”

http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201304.htm?philadelphia

I enjoyed this article about how in the past the thinking may have been “create the jobs first, then the people will come.” And now people are beginning to think: “Make the city live-able, attract the residents, then the jobs will come.” http://articles.philly.com/2013-03-25/news/37983896_1_young-adults-jobs-young-people

Where we are today. Where we are going tomorrow.

First, one of the big stories here is the continued growth of the major universities. These are engines of innovation. Great entrepreneurial potential is connected to all those students. Philadelphia really could become, once again, a hub of innovation and commerce with all of this young energy in the city. And there is a growing start-up community working to foster this potential.

Secondly, the growth in the medical district and elsewhere in the local healthcare industry is another significant driver of growth, employing many in well-paying jobs.

A spurt of growth has begun in new housing creation, and it’s not just with apartment towers and communities. A large sustained wave of housing development has spread throughout the core of the city and its outskirts. Many houses have been gutted and rebuilt. Many are also brand new. And the work continues, because there are buyers. People are moving in.

Center City has become a more attractive place. People want to live here. Paul Levy of the Center City District says “Americans want walkable, transit-oriented live-work places… Marketing and demographic trends are pointing our way.”

And all of the efforts going into new park creation, and making Philadelphia more “bicycle friendly” will further help to increase the Center City region’s population. This is all good news for many local businesses that are in a position to serve these new residents.

Tourism is a growth area. Philadelphia continues to expand its collection of cultural attractions, with the recent additions of The Barnes Foundation Museum, The National Museum of American Jewish History, and the soon to re-open Ben Franklin Museum. In addition, there is the Franklin Institute expansion project, the new changes at the Philadelphia Zoo, and now special film screenings at the Kimmel Center. Coming shortly, we have the all-new Museum of the American Revolution, and potentially a very exciting new casino that could become a powerful tourism magnet.

A wildcard is Philadelphia’s efforts to host the 2024 Olympic Games. If the city is chosen, there will be a lot

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TransportationWill regional rail be able to keep up with demand in this future breakout city? Right now, you cannot find a parking spot at many regional rail stations on weekdays.

For commuting suburbanites willing to spend the money on what will probably be high fuel costs, the growing city will make parking even more expensive.

Regional rail will need to adapt to rising use.

Above: Vine Street Express-way flowing freely at this moment.

Left: Regional rail at 30th Street Station.

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more investment flowing into the city. Perhaps SEPTA will get the funding it needs to make needed improvements, such as an extension of the Broad Street subway to the Navy Yard. The Navy Yard is destined to be built-out. It will be a hub of commerce in this city, and a nice, convenient place to live for people lucky enough to get one of the limited numbers of housing units that will eventually be built there.

Eventually also, the waterfront area along the Delaware River will one day become hot. There will be a rapid transit line along Delaware Avenue… I mean Columbus Boulevard. (Why did they ever change the name?) Getting to spots, including parks, along the Delaware without a car, will be easy.

Philadelphia’s growth will eventually spillover into Camden. And opportunity will spread to that side of the river as well.

You will see major development expanding both northward and southward on Broad Street…. For example, all that under-utilized ground you see at Broad & Washington Avenues is going to become something substantial.

Real estate near subway station entrances will rise more in value, and wherever possible, higher density housing will spring up in those areas. I think high density housing at locations very close to subway stations along North Broad Street will eventually be built, and then more development will fill in.

More college students will remain in Philadelphia.

An expanding start-up and innovation culture will spawn significant new companies.

People who moved away and have been homesick will move back.

The rise of the “New Philadelphians” will bring increasing affluence to the city.

Eventually, someday, the downtown office market will heat-up. Rents will rise. New office towers will be built. Maybe we’ll get a few really big companies that have an impact like Comcast does in the downtown area. And even more residents will flow in.

Philadelphia will become a breakout city. We are on a trajectory towards this.

Would you like to be a part of driving this city forward at a faster rate? We can make it all happen faster.

Forcing Change To Happen Faster

I am looking to assemble a large combined group of business people from throughout the metropolitan Philadelphia area — who have the same kind of rebel streak that I do — to use our combined power to force faster change. And it will only take a small amount of effort from each of us to make a difference.

Here is my idea:

It’s very simple.

Here are 2 logo designs I commissioned. (See next page.)

You can have the logo files free of charge.

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GET HIGH RESOLUTION FILES HERE.

http://goo.gl/bEmfi

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They are meant to boost the prominence and prestige of our city and to expand awareness.

Pick the design that best complements your company’s image.

Use the logo in your marketing pieces, on your packaging, on your websites, on your customer invoices and other communication pieces.

This could be especially useful for those of us with far-flung customers spread throughout the country and the world.

By using the logos, you are saying to your audience that you are a metropolitan Philadelphia area company, and you’re proud of it.

Suppose we all got 1000 regional companies to do this? The number of impressions would be big!

The logos have a website address on them, which is PhiladelphiaProud.com

A percentage of people that see these logos are going to be curious to see what PhiladelphiaProud.com is all about. And they are going to visit this website.

PhiladelphiaProud.com will detail why Philadelphia is a great place to visit, to live, to work in, and start a business in.

Heavy emphasis will be placed upon Philadelphia being an exciting urban experience vacation destination. Since we all live here, maybe we don’t see it that way. But I have seen the reaction from many out-of-town visitors. They are going home excited about their visit to Philadelphia. I want to spread awareness of our strong tourism product, get more people coming here, and then get more word-of-mouth spread through their social circles when they go home and share photos of themselves under the Love Statue, and beside Rocky, and all those other great photo-op sites. They are going to talk about the fun they had here and how surprised they were with what they discovered and enjoyed here. And this chatter will inspire more people to visit Philadelphia.

As we succeed in further driving tourism, the money these visitors spend will set in motion very beneficial ripples of commerce that help our hotels, restaurants, shops, and various kinds of service providers. Along the way, tax revenue is generated for the city and state in the form of wage taxes, sales taxes and other taxes. Increased tax revenue means more money can be spent to continue to improve our city. Which further makes Philadelphia a more attractive place to visit, live and work. And the circle of commerce continues to spin bigger, faster and louder.

Growth in the city helps many. It supports jobs and leads to market gaps that entrepreneurs can seize upon, creating more jobs. A growing city leads to increased demand for housing, which supports real estate values and leads to price appreciation, which inspires additional new housing creation and more jobs… which leads to more tax revenue.

Robust economic activity like this contains our tax burden and holds the possibility of lowering it. And when more people are working and are successful, there is more spendable income going around that can benefit our colleagues in business, and maybe ourselves as well.

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What do you think? If it isn’t right for you, please think of someone you know who might be able to help in pushing our cause forward.

To fully develop the PhiladelphiaProud.com website, I need your support.

I have a fantastic collection of blank Philadelphia greeting cards that feature the old-style Philadelphia Proud logo (and website) on the back. These are ideal to use as thank you cards in your cultivation marketing efforts with customers.

I established a very good print-broker relationship with a major printer and I am able to offer these beautiful cards at incredibly low pricing when you buy in bulk.

If I sold these cards through greeting card stores, they would sell for $2.50 to $3.00 each at retail, perhaps more… because they have the look of a premium card. But you will be able to get them for only a fraction of that cost.

Card images include Boathouse Row, City Hall, Washington Square Park, Independence Hall, The Philadelphia Museum of Art, and other interesting Philadelphia scenes.

These images are from oil paintings created by Stanislav Bogdan. I embarked on a project in 2002 to create a new category of Philadelphia art. It took me more than a year to find the right artist to work with. And then I sponsored him for 8 years while he made the collection.

Mr. Bogdan was born in a Stalin labor camp in Kazakhstan in 1949. He contracted polio at the age of 1½ while in the camp. His younger years were difficult. After graduating from a Moscow fine arts university by correspondence, he went on to work for the government creating Soviet propoganda art. He also illustrated Russian science fiction novels, and spent time working at a mental institution as an artist. Mr. Bogdan painted from my photos of Philadelphia. And the 8 sample cards I would like to send you are among his best works in my collection.

I’ll be glad to include the full story of how I came to discover him and more about his background with any order.

Creating the Philadelphia Proud “image enhancement and awareness campaign” for the city of Philadelphia has all been done in my spare time without funding or support from any other source.

To fully develop the most important phase of the campaign — the PhiladelphiaProud.com website, it would mean the world to me if I could have support from the local business community through bulk purchases of my Philadelphia greeting cards.

I am proud to offer them. Request your free sample pack here:

http://goo.gl/8SCx8

Ed Ryder