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New development projects are changing the face of Philadelphia

Center City, Philadelphia | Comcast Innovation + Technology Center

If you have been a loyal PUL.com reader over the last few years, then you already know that I love to talk about new development.

Why, you may ask?

Well, for starters, I am in the real estate business and I love what I do; I also have a passion for all things new construction and/or rehab related in the City of Brotherly Love. Residential, commercial, industrial, you name it. If it’s happening, I’m interested.

Next reason, I’m a positive/optimistic kind of guy. “Doom and Gloom” has never been my bag, so it’s only natural for me to provide insight and observation when good things are happening in the Greater Philadelphia area.

Last reason, Philadelphia is my home-sweet-home and a true national underdog. We were once at the top, then on the bottom, and now somewhere in between. The last 20+ years have been very exciting for our fair city, so naturally when good news is being announced, I enjoy discussing it.

And there you have it, my friends. 

Okay, back to the post.

Flying Kite has been around for a few years now, and it’s a great resource if you ever want to read up on what’s new and exciting in/around Philadelphia. FK focuses on both the city and suburbs, while “highlighting the people, ideas, neighborhoods, companies and institutions that are helping return Philadelphia to world-class city status.”

It’s also one of my go-to spots for finding the latest news about Philadelphia, and then stamping what I read with my own personal and professional perspectives. That’s what blogging is all about, and why I enjoy doing it.

As aptly named in this post’s title, there have been lots of new projects proposed and approved recently in the City of Philadelphia. Some may seem too small to make any sort of change, and some may seem so big that it’s hard to imagine they will ever be built.

Either way, FK recently put out a list of “14 development projects” that have serious potential for positive change in Philadelphia. As to not bore you with my thoughts on each and every one, here are a few that I found to be the most important (the entire list can be found here):

– Rodin Square, Fairmount + Art Museum Area: If you have not strolled along West Fairmount Ave in 19130 for a few years … go. It’s crazy down there! Crazy-good, that is. Not only has the neighborhood found firm footing with new homeowners, new families, and new Philadelphians, but there are new businesses and new mixed-use buildings to boot. What first started as a residential revival on the western side of 19130, has since turned into a commercial boom with even more residential development spilling over to the eastern side (namely, in Francisville). Rodin Square will be a great connector project between all-of-the-good-already-happening in Fairmount, and the ever-burning-energy coming out of Center City (and a newly designed Benjamin Franklin Parkway). To top it all off, the project will feature a brand new Whole Foods, large/floor-to-ceiling glass cafe, 300 new residential units, “sky park (aka “luxury baller status”),” and additional parking.

– Frankford Chocolate Factory, Graduate Hospital: Not sure what I’m referring to? If you’re heading north on 22nd St, from South Philly, it’s on your right as soon as you hit Washington Ave; or, if you are driving east/west on Washington Ave, it’s on the northeast corner of 22nd St. Although it’s kind of hard to miss, it looks like a dead spot. For something that takes up an entire city block in one of Philadelphia’s hottest neighborhoods, you would think this would have turned into something new by now. The reason not is because it has been tied up in legal battles for years over the ex-owner’s estate (the late Vietnamese businessman, Truong Dinh Tran). Now, it’s on the market for an eligible buyer (who can turn it into something great). The last few years have already seen spillover from Graduate Hospital into Northern Point Breeze and Newbold, but a project this big (if done right) can only make that connection even better.

– Comcast Innovation + Technology Center, Logan Square: If you have not read about this one yet, I put a pretty detailed post together back in January 2014 (everything you need is there). But as far as game-changers go for Philadelphia these days, this is the one. With a height of 1,100 feet, 59 stories, Four Seasons Hotel (taking up 13 of the top floors), $1.2B price tag, and the tallest US building outside of NYC and Chicago, how can you not be pumped to see how this one turns out. Market West has primarily been a “business-first, pleasure-second” kind of Center City area for the past 30+ years, but a project like this could spur even more residential/retail growth in an already-dense urban neighborhood. Oh, and there should be almost 3,000 new/permanent jobs related to just the building alone. That does not account for all of the additional jobs just to build it, as well as those that will surround the building in the near future. Super-exciting-project!

– Reading Viaduct Rail Park, Callowhill + Loft District: From what seemed like a pipe dream just a few years ago, after NYC introduced its highly-touted “High Line,” has since turned into a reality with planning, funding, and a whole lot of positive energy behind it. What is now a neighborhood that seems lost for a new identity, may soon turn into a neighborhood that successfully bridges the gap between Northern Liberties and Center City. It’s hard not to see the potential in this one, with dirt expected to start moving in 2015.

So if you have been away from Philadelphia’s local development scene for some time now, my hope is that this post has helped spread the good word. Amazing things are happening in the City of Brotherly Love, and the energy is contagious.

“Workshop of the World, Part II?” Philadelphia looks to become an energy hub.

 
If you are from the Philadelphia area, you have probably heard the moniker “Workshop of the World” before. Whether it was from your grandparents, your parents, or from a local textbook or historian.

WOTW was how Philadelphia was referenced “back in the day” (as we say around here), and it was largely driven by our region’s abundance of coal; a cheap source of energy back then. Coal powered Philadelphia’s factories, homes, you name it.

Post-Civil War, from about 1880-1920, Philadelphia represented the world’s greatest collection of skill and diversity in manufacturing. So much so, that our industrial workforce was about 250,000 people strong … and that was almost 150 years ago! But what really made Philadelphia unique in comparison to similar cities of its time (e.g. Boston, Pittsburgh, Baltimore, etc), was that we didn’t just rely on a few large companies to drive our local manufacturing economy. Philadelphia became an incubator for smaller/medium-sized workshops, where those who maybe once worked for large companies broke off and started making specialized products of their own; let’s call it “entrepreneurial manufacturing.”

Is it just me, or is this back-story beginning to sound a bit like where Philadelphia is going today; but replace “manufacturing” with “education/medicine/technology.”

Now, back to my title: Workshop of the World, Part II.

Phil Rinaldi, the CEO of Philadelphia Energy Solutions (the old Sunoco operation in Southwest Philadelphia), is the man responsible for turning the local refinery around and looking toward Philadelphia’s energy future. Natural gas from the Marcellus Shale reserve is currently been “fracked” in PA and being shipped all over the world. But as it stands today, Philadelphia could be seeing more local job action from the current boom.

If the natural gas boom comes to Philadelphia, it could potentially reinvent our local economy.

If it sounds too good to be true, there is always the possibility that it may be. Not only would a gas boom create thousands of jobs, for both blue and white collar workers, but it also has the potential to impact our area environmentally (and not in a positive way). That is where the lines are drawn.

Fracking is sometimes viewed as an environmentally hazardous industry; but when the word “jobs” comes rolling around, politicians and business leaders start to dream big.

As it stands today, most of the Marcellus Shale gas is being sent to Louisiana, where it is refined and shipped. But if the shale reserve is in PA (not LA), why aren’t we sending the natural gas to Philadelphia for refinement? It’s closer, it’s a big city, and it keeps everything local.

That’s the question local experts are starting to ask. Can we set up the proper infrastructure (namely, new/larger pipelines) to handle the amount of gas refinement, shipping, and exporting needed; and can we also create the amount of new jobs necessary in order to become a refining destination?

The answer is, yes. We have the workforce, we have the rail lines, we have the ports, and we have the leaders to put all of that together.

But … here are some concerns to think about:

Under what “conditions” would/should Philadelphia take on this challenge?

Would this endeavor take away from our green/sustainable efforts over the past decade?

Since natural gas is a finite resource, does a push to create a natural-gas-based economy hurt the next few generations of Philadelphians?

Are we trying to plan for the short-term, or the long-term?

These are the concerns that many people have, and with good reason. Creating the pipelines necessary to run natural gas from the Marcellus Shale directly to Philadelphia is very similar to gambling.

If we win, we’ll win big. If we lose, we’ll lose big. Those results will also play a large role in Philadelphia’s local real estate market.

Unfortunately, there are almost too many details to discuss in this blog post, but the possibilities for Philadelphia to embrace this opportunity are basically endless. At the end of the day, it will take a lot of planning, discussion, and forward-thinking to do it right.

Here is a link to “Energy Boomtown PhillyStyle,” from WHYY. You will get a lot of great information if you listen to the hour-long segment.

How does Philadelphia truly become a global city?

 
For starters, let’s define what the term “global city” actually means.

Here are a few different definitions I found:

A city in a position to realize the economic coordination of complex activities at a global scale. It is through economic coordination that a city will gain a strategic position in the global economy, and the concentration of this function makes it different from other cities. – Research Gate

What constitutes a global city, is an emphasis on the flow of information and capital. – Saskia Sassen

A city generally considered to be an important node in the global economic system. Globalization can be understood as largely created, facilitated, and enacted in strategic geographic locales according to global finance and trade. – Wikipedia

Although it may seem a bit complex after reading those textbook definitions, the concept is relatively simple.

Does Philadelphia play a role in the global economy? Some say “yes,” others “no.”

The article that inspired this post was from the Philadelphia Business Journal, and it discussed how Philadelphia needs to get better at retaining its talent. The article states:

“Home to some of the world’s best universities, medical institutions, arts and cultural organizations, research centers, booming legal, business, finance sectors, and a steadily growing tourism industry, Philadelphia is the perfect place for talented young graduates. They can give back to the city that nurtured them while they pursued their educational dreams and interests. Opportunity abounds!”

Okay, so what’s the problem then?

If we already have enough opportunity, and are already attracting young talent through the aforementioned channels, why are we not a global city today?

Well, there are 2 general issues Philadelphia has been up against.

– Education Crisis: If you have not heard about Philadelphia’s public school system woes as of late, you must not watch TV, listen to the radio, or read the news. Our public school system is struggling, and the main issue all 3 media sources focus on is funding. I could show you stats, budgetary items of concern, and share articles from local experts, but that’s not going to help. Until Philadelphia’s local political system and PA’s state political system get on the same page with a well thought out plan, the problem will most-likely persist. If the problem persists, how can Philadelphia retain global talent?

– Workforce Gaps: Philadelphia can sometimes be looked at as a tale of two cities, the “haves” and the “have-nots.” I know that this is also common in other big cities, but Philadelphia is at the forefront. It’s not that people in Philadelphia cannot find work, it’s that they have to go outside of Philadelphia’s borders to find it. Although many people live in Philadelphia, many of them also have to commute to the suburban metro area for their jobs; and vice-versa. Why is that? I could get into wage taxes, business taxes, pensions, city council, and politically-fueled union issues, but that’s not going to help. Until Philadelphia’s local political system and the private business community can come together on big issues, the problem will most-likely persist. If the problem persists, how can Philadelphia retain global talent?

Please do not take my points/opinions as the “be all, end all,” but rather look at them in your own way and think about ways to improve upon them. These are issues that I see, nothing more.

I do not have the answers, but as someone who grew up in Philadelphia’s suburbs for 18 years, and has lived in Philadelphia for 17 years, I can tell you that the strategies, communication, and mindset of both locales are different. Which may be why Philadelphia’s suburbs have grown most of the local jobs, and Philadelphia has lagged behind for decades.

I truly believe Philadelphia has all of the tools necessary to become a successful global city. We just need to utilize those tools in a more cohesive way, and give all of the global talent that comes through our great city more reasons to stay.