Winter - Center City District

CENTER CITY DIGEST
THE NEWSLETTER OF THE CENTER CITY DISTRICT AND CENTRAL PHILADELPHIA DEVELOPMENT CORPORATION
WINTER 2005
Competing in the 21st Century: Positioning the City, Preparing our Residents
Still, doubt dies hard. “Can we really fill
these new condos?” The question is
asked so often I’ve honed a canned
response: “Philadelphians are so unaccustomed to a healthy market, they don’t
recognize success when they see it.”
Today’s housing “boom” is really 50 years
in the making, starting with renewal
efforts in 1956. Now it’s being driven by
powerful regional demographics. The
Gen-Xers, who constitute a third of
downtown, are 19% of our metro population. Behind them are 1.2 million
children of baby boom parents. These
“echo-boomers” (born between 1979 and
1994) are 23% of the region’s population.
And looming over all are 1.5 million
graying boomers, 30% of the region’s
population. Becoming empty nesters,
many are eager to discard lawnmowers
and traffic jams to follow the action
downtown.
“But what about jobs?” skeptics retort.
Together, health care and education institutions in Philadelphia provide the largest
share of local employment and these jobs
grew by 34% between 1990 and 2004,
outpacing the suburbs since 2000. The
city’s largest private employer is the
University of Pennsylvania; Center City’s
largest is Thomas Jefferson University.
The office sector is contracting (more
below). But, it still provides over 150,000
downtown jobs, many held by empty
nesters who are simply moving their
home closer to work.1
Sixty percent of downtown residents earn
salaries downtown; another 24% work
elsewhere in the city. Philadelphia leads
the nation with its share of downtown
residents (37%) who walk to work.
Downtown versus Neighborhoods?
So, it’s not how big the boom is downtown that should give us pause, but how
relatively small Center City is and how it
contrasts with the balance of the city.
Despite all the ink and the fact that it’s
growing so fast, downtown still holds just
6% of Philadelphia’s population. While
62% of Center City adults have at least a
college degree, only 18% of the rest of
the city has this basic passport to the
post-industrial economy, six points below
the average for large American cities.
Center City’s cohort of 25 to 34 year olds
is twice the size of the rest of the city.
Philadelphia has scores of other stable
and improving neighborhoods. But 23%
of residents live at or below the poverty
level. So it’s not hard, in a town with
such contrasts to depict high-priced
condos and high-skilled jobs as perks for
the fortunate few and to indulge the local
penchant for a politics of resentment.
Eric Mencher/Philadelphia Inquirer
Center City’s been getting great local and
national press, touting our restaurants and
cafes, WiFi, the housing boom,
Convention Center expansion and the
liberation and landscaping of
Independence Mall. Some year-end celebrating is definitely in order: “Philly is
Cool!” shouts the cover of Philadelphia
magazine, prompting even its self-professed curmudgeon publisher to emerge
from his 30-year funk.
Almost half the wages earned by Philadelphians
come from Center City jobs.
Where the Jobs Are
But is this tale of two cities really true?
From a detailed analysis of the jobs
Philadelphia residents actually hold, a
strikingly different picture emerges.2
Forty-six percent of private-sector wages
earned by city residents (more than $3.5
billion per year) is earned downtown in
office buildings, hospitals, educational
and cultural institutions, hotels and retail
Far Northeast
Roxborough,
Manayunk
Germantown,
Chestnut
Hill
West
Philadelphia
Olney,
Oak Lane
North
Philadelphia
Near Northeast
Bridesburg,
Kensington,
Richmond
• Philadelphia residents earn $7.6
billion/year in private sector jobs
(private sector = 84% of all jobs)
Center City
• 46% is earned in Center City
South
Philadelphia
Southwest
Philadelphia
Largest share of wages comes from jobs
in Center City
Largest share of wages comes from jobs
elsewhere in City
• 36% is earned in Philadelphia
outside Center City
• 17% is earned in the suburbs
WHERE CITY RESIDENTS EARN THEIR SALARIES
For larger partnerships like law, consulting and financial-services firms, the
BPT premium can be as much as
$12.42/sf downtown. The lure of restaurants, cafes and culture is strong; so is the
pleasure of walking to work. But it’s not
powerful enough to trump this math: by
decamping to the suburbs, a 100,000-sf
firm with 400 employees can save
between $476,000 and $1.2 million per
year in city BPT.
Wages Earned in
South Philadelphia
Philadelphia (not CC)
Suburbs
$243,470,000
$113,390,000
$48,100,000
Southwest Philadelphia
193,336,000
179,937,000
60,667,000
Center City
953,239,000
438,990,000
197,519,000
West Philadelphia
281,990,000
275,458,000
93,694,000
North Philadelphia
168,762,000
220,418,000
65,340,000
Bridesburg, Kensington, Richmond
206,526,000
226,064,000
81,687,000
Roxborough
152,556,000
107,486,000
72,742,000
Olney, Oak Lane
328,280,000
291,768,000
179,634,000
Near Northeast
419,723,000
388,974,000
210,349,000
127,404,000
Chestnut Hill, Germantown
329,141,000
249,799,000
Far Northeast
284,394,000
261,794,000
179,801,000
$3,845,811,000
$3,015,872,000
$1,496,738,000
Total
establishments. In nearly every neighborhood of the city, downtown jobs provide
the largest source of residents’ income.
(SEPTA’s buses, trains and trolleys make
this possible.3) The second largest sources
of wages (36%) are employers elsewhere
in the city, primarily in education and
health care. Only 17% of Philadelphians’
wages are earned by reverse commuting
to the suburbs.
While residential Center City may be relatively small, business Center City is huge,
forming the economic backbone for most
Philadelphia neighborhoods. Thirtyseven percent of the wages earned by
residents of North Philadelphia come
from Center City jobs; 39% of wages in
Far Northeast are earned downtown; for
West Philadelphia it’s 43%; and in South
Philadelphia, 60%. Add in University
City and 57% of all private-sector wages
in Philadelphia are paid by the dense
cluster of employers situated between
Front and 40th streets, Spring Garden to
South Street.
But if health care and education are
thriving, the office sector tells a different
Department of Revenue/CCD, 2003
Center City
tale.4 Between 1990 and 2004, Center
City lost 15% of its office jobs, while surrounding suburbs grew by 38%. As a
consequence, Center City dropped from a
41% share of the region’s office space to
just 28% — six points below the national
average. Had these jobs moved just across
City Avenue, they’d still be accessible. But
suburban office campuses have been
migrating for years beyond the reach of
the regional rail lines, taking with them
many solid entry- and middle-class jobs.5
This is what’s really at stake in the
current debate over the business privilege
tax (BPT). For a typical office firm, the
BPT alone adds $3.67 to occupancy costs
in Center City.
The Street Administration is correct in
defining the issue as affordable tax cuts. But
the ledger to be balanced is not tax cuts for
the rich versus services for the poor, as advocates would have us believe. Since the
federal doctor no longer makes house
calls, local government can’t simply be a
deliverer of service or a conduit for
transfer payments.6 If there are going to
be significant resources to redistribute,
local government must foster a competitive environment where business is
encouraged to grow, expanding opportunities for local employment.
Competitive Places,
Employable People
In The World is Flat, Thomas Friedman
notes that in the global economy of the
21st century, high-skilled work can be
performed in Center City, Bala Cynwyd
or Bangalore, India. Cities are now subject to intense competition, not only from
suburbs and other regions, but from three
billion people and new Web-enabled
firms in emerging economies in China,
India, Russia, Eastern Europe, Latin
America and Central Asia.
OCCUPANCY
COSTComparison
COMPARISON
Occupancy Cost
Cost
Inclusive Rent
Use & Occupancy Tax
Business Privilege Tax
Employer-Borne Costs
Center City
PA Suburbs
$24.60
$24.81
$1.30
$0.00
$3.67
$0.00
$29.57
$24.81
Suburban
Differential
(per SF)
$4.76
1 Philadelphia has almost totally made the transition to a post-industrial economy: 61% of all private-sector jobs are in health care, education or the office
sector. Another 9% are in leisure and hospitality. Only 6% of the city’s jobs are in manufacturing and just 2% in construction. (Bureau of Labor Statistics)
2 For the last four years, CPDC has worked in partnership with the City’s Department of Revenue and Finance cross-referencing Philadelphia business location
data with local W-2 tax filings to determine where employees in private-sector firms make their homes. Eighty-four percent of all jobs held by city residents
are in the private sector, where Philadelphia residents earned close to $8 billion per year in salaries.
3 SEPTA also enables suburban residents to earn over $7 billion annually downtown.
4 Hospitals and educational institutions are usually large, land-owning non-profits, exempt from real estate and business privilege taxes. By contrast,
commercial office firms are primarily cost-sensitive, mobile tenants with highly mobile workers.
5 A 2001 CPDC survey found that 61% of downtown office jobs paid solid working- and middle-class salaries between $20,000 and $59,000 per year.
6 In 1975, cities like Philadelphia were getting approximately 46% of operating revenues from higher levels of government. Today, it is under 20%.
2
www.centercityphila.org
The places that thrive, he suggests, will
have minimum barriers to entry; places
that make it easy to start businesses, raise
capital and become entrepreneurial;
places with simple, equitable and transparent regulations; and those with an
educated, energetic and versatile workforce that thrives in a competitive, rather
than sheltered, environment.
The role of local leaders, Friedman suggests, is to make places more competitive
and people more employable. So quality
municipal services are essential for clean
and safe streets, for parks and recreation.
The work of the Philadelphia School
Reform Commission is critical, too. As
principals are empowered to assemble the
best teachers and as the School District
raises standards for student performance,
young people will acquire the tools
required for the global marketplace.
If Philadelphia is to be a city that looks
forward and outward, rather than
backward and inward, government must
pursue a course of tax competitiveness for
job growth; well-managed services and
amenities should enhance the quality
of life; and education and infrastructure
investments should prepare and connect
residents to the jobs of the 21st century.
Paul R.Levy
President
[email protected]
An adequately funded public transit system is
essential to regional competitiveness.
CPDC Observes its 50th Anniversary
Founded in 1956 as Old Philadelphia
Development Corporation, the privatesector sponsor of the renovation of
historic homes in Society Hill, Central
Philadelphia Development Corporation
has been generating big ideas for Center
City ever since. CPDC helped found the
Penn’s Landing Corporation, played a
lead role in the redevelopment of Market
Street East, the planning of the improved
Vine Street Expressway, planning and
advocacy for the Avenue of the Arts cultural district and the creation of the
Center City District, the business
improvement district that works closely
with CPDC.
The first session on February 7 will
reflect on the history of Society Hill and
look forward to the next decade of
housing development.
To mark the occasion, CPDC is bringing
prominent thinkers on urban issues to
Philadelphia for a yearlong series of
public forums on topics of critical importance to the next 50 years.
All forums start at 4 p.m. at the Union
League and are open to the public.
Watch www.CenterCityPhila.org for
more information.
On April 11, the topic will be the emergence of Center City’s West Market
office district and a look forward to
development trends that will shape the
sector that accounts for 44 percent of all
downtown jobs.
Future sessions will focus on highways
and transportation in June, the retail
sector in September, the growth of arts
and culture in October and waterfront
development in November.
Thanks Again to our
Yearlong Sponsor:
Hudson United Bank
For the second year now, Hudson
United Bank has been a presence at
Center City District events. The HUB
logo has also appeared in CCD publications, including the quarterly downtown
events guide and Digest, and on 25,000
CCD shopping bags.
As our yearlong events partner, HUB has
helped make possible many of CCD’s
most successful 2005 events. HUB helped
sponsor the CCD’s participation in the
Rittenhouse Row Spring Festival and
events throughout the year at Reading
Terminal Market.
HUB was also highly visible at the CCD’s
season-long Summer in the City programming. HUB representatives handed
out information and goodies at summer
concerts and fielded two volleyball teams
in our Center City Spikes tournament.
This season, look for HUB’s brochure
in 5,000 Philadelphia Holiday Festival
shopping bags.
www.centercityphila.org
3
Landscape Improvements on Benjamin Franklin Parkway
Two new construction projects managed
by the Center City District continue the
transformation of the Benjamin Franklin
Parkway into an animated,
pedestrian–friendly cultural campus.
Nearby, at Logan Square, plans are
proceeding to improve the open space
fronting the Franklin Institute known
as Aviator Park. The center of this park
space will be reconfigured as a large
oval, encircled by walkways lined with
benches, to function better as a space for
families and nearby schools. The space
is also being designed to accommodate
periodic special events, such as art shows
and graduations.
The Fairmount Park Commission
recently granted approval of the
schematic design, done by Lager
Raabe Skafte Landscape Architects.
Construction is expected to begin
in 2006.
CCD is also working with Cloud
Gehshan Associates and dommertphillips
on a concurrent initiative to develop
a system of interpretive signs for
the Parkway.
All three projects are part of a larger
vision, shared by CCD, the City,
Fairmount Park Commission and
Parkway stakeholders, to establish the
Parkway as a significant regional destination by enhancing the design of its public
spaces, improving the balance between
pedestrians and cars and activating
the open areas with cultural attractions,
exhibits and events.
Plans for an improved Aviator Park opposite the Franklin Institute are moving forward.
4
www.centercityphila.org
RACE STREET
Lager Raabe Skafte Landscape Architects
MOORE COLLEGE OF ART AND DESIGN
B E N J AM I N F R A N K L I N PA R K WAY
This month, CCD is completing the first
phase of modest enhancements to the
small triangular park in front of the
3 Parkway building. CCD managed the
design, done by Cope Linder Architects,
and the construction, undertaken by
Seravalli, Inc. contractors. Improvements
include new sidewalk paving, benches,
trash receptacles and other furnishings,
improved landscaping, and new pedestrian-scale lights along Cherry Street.
Partnering with CCD on the project were
the City, Fairmount Park Commission
and AGL Investments, the adjacent
building’s Denver-based owner.
Phase two work, now in the planning
stage, could animate the area with a
Parkway information center and cafe.
FRANKLIN INSTITUTE
Who You Gonna Call?
Damaged signs or streetlights, overflowing trash, broken fire hydrants and parking meters, graffiti — all of these discourage
people who work, visit or live in Philadelphia. But figuring out whose job it is to fix things is no small task.
A typical street with buildings on both sides has dozens of components that impact the public environment. But, unlike a shopping
center, there isn’t a single managing entity responsible for making sure that everything is clean, well maintained and in working
order. In fact, of the 83 items in the public environment monitored by the Center City District, there are no fewer than 23
responsible agencies.
But now there’s one place you can go to figure out who’s in charge. The CCD’s Web site provides up-to-date phone
numbers and links, making it quick and easy to report a problem to the appropriate agency. Go to www.CenterCityPhila.org/
programs/report.aspx.
The CCD’s on-street community service representatives also regularly report problems to the appropriate agency.
Streets
Department*
Viacom
PennDot*
Property Owner
Fairmount Park
Commission**
PECO
PGW
Licenses &
Inspections
CCD**
Philadelphia
Water Department
Philadelphia
Parking Authority
Police
Department
SEPTA
PRACTICAL MATTERS
A reminder with winter’s approach: the CCD cleans up litter and graffiti — but property owners are responsible for snow removal.
US Postal Service
* Streets Department or PennDot is responsible
for roadways depending on the location.
** CCD or Fairmount Park Commission is responsible
for trees depending on the location.
www.centercityphila.org
5
CCD Honors Law Enforcers and Civilians at its 10th Crime Prevention Awards
The Center City District honored over
40 civilians and law enforcement
personnel at its 10th Crime Prevention
Awards in October.
The Police Department also released
statistics, showing major crimes within
the Center City District down by 21%
between 2000 and 2004 and by an even
greater amount, 26%, in the surrounding
residential areas. Theft from auto, always
the most annoying Center City crime,
was cut by 35% in the 6th and 9th
police districts.
Melvin Epps
“The quality of life in Center City
Philadelphia continues to improve as our
streets are enlivened with activity, due in
no small part to the growing sense of
safety downtown,” said CCD President
Paul R. Levy. “This year’s honorees show
a common denominator of courage,
heroism and determination to maintain
public safety and public confidence.”
At the 10th annual Crime Prevention Awards, from left, CCD President Paul R. Levy, Philadelphia
Police Commissioner Sylvester Johnson, Philadelphia District Attorney Lynne Abraham and
Stacy Irving, CCD senior director of crime prevention services.
The 2005 Center City
Crime Prevention Awardees are:
Center City District Community Service
Representatives Maxine Barr and sidewalk
sweeper Sherron Dudley, Police Officers
Abraham Diaz, James Cody and William
Barnhardt for their alert actions, resulting in
the quick arrest of a bank robber.
Center City District Police Officers Confessor
Nieves and Quay Chim, who arrested a fugitive
murder suspect after seeing him on the
America’s Most Wanted television show.
Melvin Epps
WAWA personnel Yvette Byrd and Heather
Birl, Police Sgt. Kevin Bernard, Officer Michael
Livewell, Sgt. Joseph Motto, Detective
Vanessa Brown, and U.S. Secret Service
Special Agents Eric Reed and John Toney
for their work in halting an international ATM
fraud scheme.
The Philadelphia Police Department’s Scientific
and Technological Services and Domestic
Preparedness Division and the Safety and
Security Committee of the Building Owner’s
and Manager’s Association each were honored
with this handsome award, in recognition of
their extraordinary commitment to publicprivate collaboration.
6
www.centercityphila.org
Police Officer Glendale Baker, Lt. Richard
Brown, Detectives Robert Kerwin and Kenneth
Roach for the investigation and arrest of a
serial, knifepoint robber.
Assistant U.S. Attorney Thomas P. Hogan, Jr.,
FBI Supervisory Special Agent Rexford R.
Vernon, Jr., FBI Special Agents John Louden,
James Fitzgerald and Edward Gallant, Police
Detectives Sean Brennan, Colleen Moderski,
Joseph Rovnan, James Callahan, Terrence
Sweeney, Norman Burnosky and Timothy
Brooks, Denny Graeber (formerly of the
Philadelphia Police Department) and Special
Agent Derek Valgora, Bureau of Alcohol,
Tobacco, Firearms and Explosives for their
work leading to the arrest and conviction of a
serial bomber.
Lt. Mark Deegan and Joseph Maum, Detectives
Howard Peterman, Timothy Bass, Charles
Boyle, George Fetters, Donald Marano and Jeff
Piree and Sgt. Robert Kuhlmeier of the
Philadelphia Police Homicide Division for their
work in the arrest of Juan Covington, charged in
the murder of Patricia McDermott, along with
other crimes.
Inspector Robert Tucker and Captain
Walt Smith of the Police Department’s
Domestic Preparedness Division for their work
on behalf of security since September 11.
The Safety and Security Committee of the
Building Owner’s and Manager’s Association
for their office theft tipline and other
effective programs.
Deputy Police Commissioner Charles Brennan
of the Police Department’s Scientific and
Technological Services for his dedication to
utilizing innovative technologies to improve
Philadelphia policing.
Philadelphia District Attorney Lynne Abraham
for her many initiatives to fight crime, including
the Repeat Offenders’ Unit, the on-call court
program, the Nuisance Task Force and for her
support of the Philadelphia Community Court,
which addresses quality-of-life crimes.
Alert Philadelphia Keeps in Touch During Emergencies
Alert Philadelphia can reach close to 900
users in real time, via email, cell phone,
pager, Blackberry and PDA with information on crime trends, bank robberies,
homeland security advisories, major
traffic detours, bomb threats, demonstrations and appeals for information.
“The genesis of the effort stemmed from
a program developed between the Center
City District and the Philadelphia Police
Department following 9/11. On that day
many people were leaving their offices,
but the streets and highways were
clogged. The police had no effective
way of communicating directly to
the citizens,” said Deputy Police
Commissioner for Science & Technology
Charles Brennan.
The system has served many uses since its
inception, including sending a composite
sketch and surveillance photos of a suspect seen fleeing from the scene of a
crime in Center City, informing the
public of security measures following the
London transit bombings and conveying
information on parking and traffic issues
from the city’s managing director during
the recent transit strike.
ALERT PHILADELPHIA
The Center City District and
Philadelphia Police Department have
announced the creation of Alert
Philadelphia, a new emergency communications system being tested in Center
City to alert businesses, private security
and law enforcement representatives
about emergency situations in the area.
“Alert Philadelphia is both a crime
fighting tool and an example of innovative
public-private partnerships,” said Stacy
Irving, CCD’s senior director of crime
prevention services.
As a pilot program, Alert Philadelphia
is currently available to businesses,
private security and law enforcement
agencies. For more information,
please contact Stacy Irving at
[email protected].
Center City
Restaurant Week
Meanwhile, Restaurant Week continues as a powerful economic engine
for Center City. The last event, in
September, served more than 71,000
diners, a 42 percent increase over the
same week in 2004. The 87 participating restaurants realized an additional
$1.5 million in revenues; total estimated sales were over $3.5 million,
not counting shopping or parking
expenditures that also occured.
Melvin Epps
Be sure to mark your calendars for the
next Center City Restaurant Week,
February 19–23, 2006. Join thousands
of other savvy diners who take advantage of one of the best dining deals
around. Choose from almost 100 of
Center City’s finest restaurants as they
offer sumptuous fixed-price dinners
for only $30. For more information,
go to www.CenterCityPhila.org/
RestaurantWeek.
Some of the many great chefs who make Center City Restaurant Week a much-anticipated event.
www.centercityphila.org
7
CENTER CITY DIGEST
INSIDE
1
Competing in the 21st Century
3
CPDC 50th Anniversary Forums
4
Benjamin Franklin Parkway
5
Who You Gonna Call?
6
Crime Prevention Awards
7
Alert Philadelphia
Restaurant Week
WINTER 2005
Pre-sorted
First Class Mail
U.S. Postage
P A I D
Philadelphia, PA
Permit No. 2545
Center City District and
Central Philadelphia
Development Corporation
660 Chestnut Street
Philadelphia, PA 19106
www.centercityphila.org
printed on recycled paper
“As our holiday gift to the city, CCD is
illuminating City Hall for the holidays to
demonstrate how familiar architectural
landmarks can be transformed through
the artistic application of light,” said
CCD President Paul R. Levy. “We hope
other major building owners and cultural
institutions are inspired to expand this
effort all over Center City next year.”
Also new this season is Holiday Lights,
Legends and Landmarks, featuring free
storytelling on Philadelphia legends and
lore by Once Upon a Nation at locations
along Market East, and tours of historic
City Hall on Wednesdays and Saturdays
through December 21.
There are also traditional holiday
favorites including the Reading Terminal
Holiday Railroad, the Blue Cross
RiverRink, New Year’s Eve fireworks at
Penn’s Landing and Philadelphia’s own
Mummers on New Year’s Day.
For a complete schedule and details about
all seasonal events, visit
www.PhiladelphiaHolidayFestival.com.
Casa Magica for Artlumiere
Center City is aglow with holiday spirit
like never before for the Philadelphia
Holiday Festival, through January 1,
2006. The Center City District commissioned spectacular new seasonal lighting
by Casa Magica for ArtLumiere of Paris.
Borrowing heavily from theater lighting
techniques, the lighting designers created
a scheme that uses broad swathes of brilliant color to illuminate the rich
architectural detail on City Hall’s east and
west pavilions. The holiday lights can be
viewed nightly from 5 p.m. to midnight
through New Year’s Day.
The Center City Digest is a publication of the Center City District (CCD), a private-sector sponsored municipal authority committed to providing supplemental services that
make Philadelphia’s downtown clean, safe and attractive; and of Central Philadelphia Development Corporation (CPDC) with 50 years of private-sector commitment to the
revitalization of downtown Philadelphia. Editor: Elise Vider Designer: Amy Newnom
Thanks to Husdon United Bank
for our year long partnership.
PHILADELPHIA HOLIDAY FESTIVAL
Center City Holiday Festivities