From the press briefing for the Center City District's State of Center City report. State of Center City 2011 is downtown Philadelphia’s “annual report” that looks at all aspects of the downtown economy and makes recommendations to enhance the attractiveness and competitiveness of Center City. Download or order a copy at http://centercityphila.org/socc/

1. State of Center City, 2011

2. The story of the last 20 years is a tale of successful diversification

3. It is the story of a 9-5 business district

4. Whose public environment was in disarray in 1990

5. 1991: created a private-sector-led BID to turn this

6. Text Text Into this

7. Today: 69% of survey respondents Say Center City “much cleaner” than rest of the city

8. 1 And with a uniformed presence of CSRs

10. 81% feel safe “most of the time” or “always” When in Center City

11. Clean & safe was the foundation on which we built a 24-hour downtown

12. 1992: investments in arts & entertainment

13. Today: 3 rd nationally non-profit arts & culture organizations per 100,000 downtown residents

14. New attractions continue to open National Museum of American Jewish History

15. President’s House

16. The Barnes Foundation: opening in early 2012

17. Several other major projects in the pipeline

18. PAFA’s new pedestrian plaza linking The expanded Convention Center to the Parkway

19. Original public investment Pennsylvania Convention Center 1993: We entered the hospitality industry

20. Prompted a 95% increase in hotel rooms

21. Generating significant private investment That adapted & reused vacant, historic buildings

22. Nearly all within 15 minute walk

23. Of a Center that has just doubled in size Successfully marketed by PCVB

24. 2001: New Independence Visitors Center

25. 2002: New home for Liberty Bell

26. #1 & #2 most visited destinations in the city

27. 94% increase in occupied hotel room-nights

28. 42% of expenditures of hotel guests Spent outside hotel on shopping & dining GPTMC

29. 328% growth in fine dining restaurants 278 65 in 1992

30. Even in last five years, through recession 31% increase in all types of food establishments

31. Total number of vacancies in all retail categories Steadily declined

32. Flourishing of sidewalk cafes

33. 1995 = zero

34. 2010: 213 outdoor cafes

35. Outdoor cafes: vote of confidence in quality of public spaces

36. Downtown that is clean & safe

37. Visitor- friendly: 683 pedestrian maps & signs

38. Integrated with 233 signs for motorist that the CCD also maintains

39. 741 trees; 96 planters

40. . 1 Doubled nighttime illumination 2,046 pedestrian-scale lights

41. Covering 2/3 of all streets in CCD

42. Supporting & fostering the evening economy

43. Speciality lighting to animate public spaces 3 JFK underpasses

44. Create more destinations within downtown

45. Even in recession 60% say atmosphere “ somewhat” to “much better” than last year

47. 1998–2010: 171 buildings of all sizes Converted to residential use

48. Since 1997 added 12,632 new units of housing

49. 27% increase in downtown population since 1990 93,074 residents; helped propel citywide growth Third largest residential downtown in the United States

50. Diversification of CBD land-use 22,000 residents now living inside CCD boundaries 22,000 71,000 surrounding

51. Steady outward growth of boundaries of downtown

52. 43% residents: Girard to Tasker work downtown

53. Education levels have increased dramatically

54. In the “knowledge economy” exactly the employees that firms want

55. Household income increased 106% since 1990 5.3% per year

56. More purchasing power for both housing & retail; $491 million within 30 minute walk of City Hall

57. Higher levels of education yield broader dividends A 10% increase in the share of a region’s residents with a college degree increases per-capita gross metropolitan product by 22%. More entrepreneurs, More business formation & more opportunities

58. Increase education level of Philadelphia residents 14.6% 9.7% 5.2% 2.3%

59. Downtown accounts for 39% of jobs; 43% wages

60. Because we have an integrated transit system 309,256 riders/day take transit into downtown

61. 20% of city residents living outside downtown; earn $3.5 billion annually working in Center City 12.7% = $1.5 b 10.1% = $1.2 b

62. 89% increase Latino population since 1990 Population 1990 2000 2009 Mexican 3,276 6,220 14,450 % tot. pop. 0.2% 0.4% 0.9% % change 89.9% 132.3% Puerto Rican 67,857 91,527 114,874 % tot. pop. 4.3% 5.9% 7.5% % change 34.9% 25.5% Cuban 2,553 2,730 2,827 % tot. pop. 0.2% 0.2% 0.2% % change 6.9% 3.6% Other 15,507 28,451 36,771 % tot. pop. 1.0% 1.8% 2.4% % change 83.5% 29.2% Total 89,193 128,928 168,922 % tot. pop. 5.6% 8.3% 11.0% % change 44.5% 31.0%

63. Three clusters of employment; Account for ½ of jobs in Mexican population Mexicans Agriculture 4.91 Mining 8.99 Construction 22.62 Trucking services 0.07 Non-Durable goods manufacturing Groceries 1.02 Retail Grocery stores 1.18 Eating places 20.49 Insurance 1.52 Business and repair services Services to dwellings 3.18 Carwashes 3.08 Automobile repair 2.17 Professional services 10.98

64. How has Philadelphia fared in the recession?

65. Housing production dropped dramatically for condos & single family houses

66. Demand for rental remains strong

67. Average daily hotel room rates have declined

68. Expansion complete; 2,000 room shortage Room rates are rebounding

69. Office occupancy rates have declined

70. But in general, most CBD office districts have outperformed their suburbs. Philadelphia: #2 behind Houston is holding occupancy levels

72. Trends in health-care all positive: In-patient admissions downtown hospitals up 21% since 2001

73. Revenues at Center City hospitals are up +19%

74. NIH grant revenues are up  Thomas Jefferson University received over $75 million in grant money from the National Institutes of Health for the fiscal year 2009

75. Colleges & universities continue to grow 32,865 students downtown; 104,975 adjacent

76. Freshman applications risen 87.5% since 2002

77. 58% of seniors are “somewhat” to “very likely” to stay after graduation Campus Philly survey

78. 24% major in health services ; 21% major in visual & performing arts

79. Eds & meds employment is up 17% in last decade

80. This has been our primary buffer against recession

81. Density + accessibility are a second factor

82. 4 th most concentrated CBD for private sector jobs

83. 3 rd in total number private sector jobs downtown Accessible by transit as fuel costs rise

84. #1 nationally: walk to work 35% walk; 24% public transit = 59% commute without a car

85. 2 nd best in cumulative decline in house prices from peak Citywide

86. 270% increase in value since 1990

87. So while Philadelphia lost jobs in the recession

88. Outperformed the region; staying even with nation

89. Assessment trends 1991-2011: CCD assessments: diversification pays off

90. Balanced mix: office, health care, education, arts, entertainment, hospitality, restaurants, retail & residential Sectors reinforce each other & cross-fertilize

91. What are challenges & opportunties in front of us?

92. Office employment has steadily declined Even during periods of economic expansion

93. By contrast, it has grown modestly in the suburbs

94. Less occupied office space than 20 years ago

95. Rents have been static for decades & can not support new construction

96. Philadelphia’s concentration in eds & meds A buffer than conceals a potential weakness; Dependency on a sector that is vulnerable to changes in federal & state funding

97. Philadelphia’s share is double national average of 18% in education & health

98. Much higher than east coast peers over-concentration in one sector could put us at risk

99. Center City is more diversified, we need to keep it that way. Create spin-off industries, commercial application of research

100. We need to end this pattern of divergence

101. Worth recalling Mayor’s Force recommendations

104. 64% of local tax revenue comes from taxing highly mobile wages & profits PICA 55%

105. If you tax it (and it’s mobile), it will go

106. It was hard to move an assembly line Or a Baldwin Locomotive

107. Laptops and cell phones are far more portable

108. #1: We need a tax policy for a post-industrial city

109. Move quickly To capture the next cycle of growth in the city

110. #2: Invest in infrastructure; not just streetscape

111. We are very proud that $23.7 in CCD funds leveraged $22 million = $55.7 in public area improvements

112. (a) But we need bigger investments that enhance the competitive position of the region

113. 700 daily flights to 86 domestic cities 39 international destinations Extend reach of the International airport: Within 2 hours flying time of 50% of US population

114. By expanding runway capacity

115. Strengthen our position on AMTRAK NE Corridor

116. 68 minutes to NYC 95 minutes to Washington, D.C. Increasing speed & capacity of Acela trains 2 more cars/train = 40% increase 83 weekly trains to Washington D.C. 99 weekly trains to New York City

117. Preserve & capitalize on national commitment high speed rail 38 minutes to NYC; 67 minutes to Washington DC

118. HSR stopping both in Center City & PHL Airport Make downtown competitive with Jersey City & Hoboken

119. (b) Invest to reinforce major employment nodes

120. Downtown accounts for 39% of jobs; 43% wages

121. National Institute of Health (NIH) Research Funds: 2007 University City: 53% of NIH Research dollars

122. Vision: Front - 40 th : one continuous business district Regional center of transit-oriented development

124. Invest to connect city’s two largest employment & research nodes: 51% of jobs

125. Link Center City to University City

126. Fill the gap between the end of the office district..

127. … and Drexel’s plans to come east

128. Make it easier for Jerry to walk between his holdings

129. Enhance transit & highway access

130. Unlock the development potential

131. Western end of Center City

132. (i) Enhance subway-surface & subway lines

133. With new transit entrances + real time information

134. (ii) explore more expensive new service stops For SEPTA or PATCO at 21 st or 22 nd Street

135. (iii) Enhance the public environment

136. Landscaping & new bike lanes

137. (iv) Transform Dilworth Plaza

138. New gateway to regional transit

139. New green amenities

140. New events programming

141. With programs that change with the seasons

143. $15 million TIGER grant $15.5 million RACP $5 SEPTA $5 million city $5-8 m: 3 foundations $3-5 million private $20 million tax-exempt PNC loan Start of construction this fall

144. Stimulate spill-over investments

145. In adjacent office plazas

146. Tomorrow: reopening a renovated Chestnut Park

147. (v.) To provide more amenities for growing number of families with children

148. About to start construction: Sister Cities, Logan Square

149. $4.6 million children park in front of Cathedral

150. We have a dense, compact, walkable & transit-oriented downtown

151. It has been dramatically diversified in the last two decades

152. It’s the first recession in which we outperformed our suburbs

153. We finally reversed the decline in residents

154. Now is the time to begin to add jobs

155. (1) Tax reduction/reform to retain & expand job opportunities for residents, students & immigrants (2) Plan for & make major investments in infrastructure (3) Continue to improve the quality of public spaces

156. State of Center City will get even better

157. State of Center City will get even better

158. State of Center City will get even better