PHILADELPHIA | The Development Thread VIII

[summersm343]

City getting richer as some suburbs get poorer

The findings of a recent Census survey display a pattern in the movement of money regionally, particularly in terms of income.

In a nutshell, Philadelphia is getting richer, and the suburbs are getting poorer.

Philadelphia has seen a 4.3 percent rise in household income between 2011 and 2012, and a nearly 4 percent rise in median family income. These are regarded as considerable increases, but the boost can be attributed to the fact that many of those living below the Federal poverty line have left Philadelphia, according to this story in the real estate blog Philadelinquency.

Here's more:

South Jersey and Delaware County incomes have dropped and deep poverty has sharply increased, leading to theories that deep-poverty households are decamping for the suburban counties.

The Census statistics are clearly showing that displacement of poor is certainly happening in Philadelphia. This also means that our tax base is recovering if not increasing in size and scope as the suburban counties shoulder a larger burden. This is good news for the City as it’s easier to cut larger slices of a growing tax base pie amongst a shrinking base of poverty; the reverse is true for our suburban counterparts.

Meanwhile, Philadelphia families with high incomes increased rather drastically in just one year. According to the Census survey, families that make $100,000 to $150,000 per year increased by 3.8 percent. Families making $150,000 to $200,000 increased by 13.1 percent.

http://www.bizjournals.com/philadelphia/...philadelphia-getting-richer-suburbs.html

[duffey]

i think the observation tower will be awesome. any development out of camden is good news to me. i know this is a small thing and not reflective of any trend of positive change for camden as a whole, but any positive change at camden's waterfront will bring energy and activity to our own riverfront. sure it looks like a weird electric neon jelly fish, but its at the aquarium.

[Mappy]

Originally Posted by ScreamShatter

The main location under consideration for a future stadium is at 15th and Norris.
...
From Temple’s standpoint, this is a smart move. They quiet the NIMBY opposition for the stadium by offering up a giant park to be shared with Yorktown.

I really hope someone gets them to consider a stadium at E. Norris and N. Beach on the riverfront. It could be part of a large entertainment district along Delaware Ave, anchor a possible light rail line, have great overlooks, and little NIMBY interference. There would also be all sorts of room for expansion or inclusion of a track.

[MikeNigh]

Originally Posted by duffey

i think the observation tower will be awesome. any development out of camden is good news to me. i know this is a small thing and not reflective of any trend of positive change for camden as a whole, but any positive change at camden's waterfront will bring energy and activity to our own riverfront. sure it looks like a weird electric neon jelly fish, but its at the aquarium.

That'd be cool to go to the aquarium and then to the observation deck. Something like a huge ferris wheel could be cool too. Camden would make a good amusement park kind of thing.

[tsarstruck]

Originally Posted by Mappy

I really hope someone gets them to consider a stadium at E. Norris and N. Beach on the riverfront. It could be part of a large entertainment district along Delaware Ave, anchor a possible light rail line, have great overlooks, and little NIMBY interference. There would also be all sorts of room for expansion or inclusion of a track.

I have a hard time imagining that Temple's going to consider building a stadium so far from their campus regardless if it would anchor a light rail that's at the very least iffy in the medium term and that wouldn't connect easily to their campus regardless.

[Jelly Roll]

Originally Posted by summersm343

City getting richer as some suburbs get poorer



http://www.bizjournals.com/philadelphia/...philadelphia-getting-richer-suburbs.html

Some of it may be people moving from Philly to Camden County but I think it has more to do with the terrible job market in Camden County. Taxes have skyrocketed in the previous three years and the county is still losing jobs.

[ScreamShatter]

Originally Posted by Mappy

I really hope someone gets them to consider a stadium at E. Norris and N. Beach on the riverfront. It could be part of a large entertainment district along Delaware Ave, anchor a possible light rail line, have great overlooks, and little NIMBY interference. There would also be all sorts of room for expansion or inclusion of a track.

It's not an option. Temple wants an on-campus stadium to bring alumni back to the university. The campus already has the ability to support parking for 30,000 and tailgating. Those are the needs.

[christof]

Originally Posted by ScreamShatter

It's not an option. Temple wants an on-campus stadium to bring alumni back to the university. The campus already has the ability to support parking for 30,000 and tailgating. Those are the needs.

Temple faces declining revenue from the Commonwealth. It has an extremely small endowment. It has serious fiscal issues involving its health system. If the school decides to throw $100-200 million to a stadium, for a team that simply cannot compete on the I-A level, its Board needs to be fired.

Talk about stupdity...

[theSisko]

http://www.philly.com/philly/blogs/inq-p...d-to-Phillys-WElement-hotel-project.html


For the W Hotel, I guess now there is NO doubt this building is going up.

[Plokoon11]

^ Great news!

[ScreamShatter]

Originally Posted by christof

Temple faces declining revenue from the Commonwealth. It has an extremely small endowment. It has serious fiscal issues involving its health system. If the school decides to throw $100-200 million to a stadium, for a team that simply cannot compete on the I-A level, its Board needs to be fired.

Talk about stupdity...

I don't completely disagree with you, but you have to understand that Temple is in the process of transitioning from commuter school to residential. The only way for alumni giving to increase over the long run is to improve student experience which includes student life, recreation, academics, and housing.

On a related note, Temple sports fundraising has doubled over the past year...now pulling in around $60m in donations per year which is helping to expand scholarships and improve facilities.

Temple's Visualize plan will be spending, at least, $1b over the next 10 years. Expect a stadium that includes dorm space inside and retail. Additionally, I expect we'll see another large highrise dorm on the northend of campus too.

[summersm343]

Originally Posted by theSisko

http://www.philly.com/philly/blogs/inq-p...d-to-Phillys-WElement-hotel-project.html


For the W Hotel, I guess now there is NO doubt this building is going up.

Great news on the W!!!!

[summersm343]

Well guys more good news! I just had a happy hour with Pearl Properties and the company they hired (Greystar) to do property management for the Granary before they sold the building, is also in talks with the developers for 2100 Hamilton (an 11 story building) at the hole at 21st and hamilton right behind the Rodin Museum and developers for 1213 Walnut, a 26 floor building in the Fergie's pub lot. So it looks like these two developments might get going soon if they are talking to property management companies.

[summersm343]

anddddd City Council approves $33 mill TIF subsidy for the W Hotel

So $33 mill from the city and $25 mill from the state. Looks like the W Hotel construction is a definite!!

The TIF would offset $33 million of that cost, and the developers have secured an additional $25 million state grant, a $15 million loan from the federal department Housing and Urban Development and a related HUD grant of $2 million. In total, $75 million in public subsidies will cover 27 percent of the project cost.

http://planphilly.com/articles/2013/11/07/council-committee-approves-33-million-subsidy-for-w-hotel

[summersm343]

Also, looks like UPenn's new 8 floor College House at Hill Field will break ground tomorrow



http://hiddencityphila.org/2013/11/groun...r-penns-new-college-house-at-hill-field/

[Philly Fan]

Aaaannnnddd, here's the 6-story office building that Penn will soon start building at 39th and Walnut:



From a new article on The Daily Pennsylvanian web site:

http://www.thedp.com/article/2013/11/39th-walnut-office-building

[summersm343]

Ermahgerd! So much development news!

[summersm343]

Originally Posted by christof

Temple faces declining revenue from the Commonwealth. It has an extremely small endowment. It has serious fiscal issues involving its health system. If the school decides to throw $100-200 million to a stadium, for a team that simply cannot compete on the I-A level, its Board needs to be fired.

Talk about stupdity...

...Temple is fine. TRUST me.

[summersm343]

OH... and apparently not only a new Whole Foods will be going in Rodin Square, but a Walmart will as well

[Cro Burnham]

Originally Posted by summersm343

OH... and apparently not only a new Whole Foods will be going in Rodin Square, but a Walmart will as well

I really like Natalie Kostelnie and Joe DiStefano, but you eat their lunch on development news five times over everyday. Why bother reading the Business Journal or Inquirer business section (at least as regards real estate development) when there summersm is generating this endless flow of information?

I am SHOCKED (but pleased) that W is getting $20 million in RACP money. That is a colossal amount, for Philadelphia, no less, courtesy of Corbett. He must desperately be seeking Philly votes but I don't see how a deal like this gets them for him.

That Lenfest was able to wrangle the massive infusion of TIF, HUD108 and the RACP blows my mind. I assumed it was a pipe dream that he'd be able to assemble the subsidies necessary to make a project like this work.

He said that there was a larger-than-normal equity investment into this. I'm dying to know how much. It must have been big for the City to take the risk they are with the HUD108 in a second or third lien position.

Assuming the developer is putting in a big chunk, I'm glad: it's important that the developer has alot of skin in the game.

While a 50-plus story hotel on a key site is a giant positive, I don't buy the argument that this hotel will bring lots of new convention business, though it will cannibalize the business of other hotels.

Does the City actually have a realistic strategy for dealing with the Convention Center labor fiasco? If not, I can't blame the other hoteliers for being so negative about this development.