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Originally Posted by br323206
You mean besides the hundred of millions (billions?) of dollars we don't have?
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Yea - we should use that money we don't have to plan a pie in the sky capping of the Schuylkill Rail Yards. That makes SOOO much more sense. (Actually I 100% agree with capping Vine street because the land would become that much more valuable and doesn't come anywhere near the cost of capping the yards. Not to mention actually connecting portions of the city that should of been connected all along.
Someone please fill me in - because I definitely don't know all the details, I've been skipping over a lot of the articles lately, but who exactly will be paying for this capping of the rail yards? Most of my math is back of the napkin, but why exactly is it being done? Are we tight on space for offices or MF developments? Last I checked there were 9-10 surface lots around 30th street station. Considering Philly is consistently listed as one of the THEE most affordable cities I find it doubtful that were really in need of single family homes. Isn't there currently a plan to pay a few million to have a "feasibility study" to figure out a budget/timelines/phase/etc. which is currently in the works? What is the use for this? Look - I'm as big a philly cheerleader and pro-development as the next guy, but you have to be realistic to understand that the economics of such a project would be MASSIVE and the property values and rents simply DO NOT JUSTIFY building over the rail yards. Office vacancy in the downtown area is around 10% (yea pretty decent) - but rents range from $24 - 41 PSF. How the hell does $41 PSF (not to mention all the concessions needed to backfill that level of office space, I'd expect your NER would be somewhere in the $20s - it's not like we have an extreme tenant pipeline to fill this space up) cover the cost of capping the rail yards? Didn't the last Ucity report state that like 80% of the jobs there are literally 2 companies? That's just god awful diversification and incredible risk to build ANYTHING on spec.
So what else goes there? Green space? Why the hell would we BUILD green space next to NATURAL green space .5 miles away in Fairmount Park?
Are we just trying to compete with New York for some reason? Look - NY is a different beast and should never be compared to this city. Office rents in Midtown are somewhere near $75 - $80 for class A product. They are building over Hudson due to complete LACK of space. Costs associated with Related's total investment are around $15B for the total complete neighborhood. I work on the JV for 10 Hudson - do you know how far behind in delivery that building is? Its been ungodly expensive to build.
"The public favored capping the rail yard, although
engineering issues means 10 fewer acres will be covered than preferred, and exposed areas will have parks and pedestrian bridges to link the two sections of the city, Philly.com said." Everyone does realize that this means they realized the costs associated with capping the entire space. It's 2015 - engineering can be accomplished for just about anything, just takes plenty of $. I suspect "engineering issues" will pop up again shrinking the coverage in the future.
So why are we capping ares? To build some green space? why, there is some like half a mile away. For houses? why, there are affordable houses all over the city. For MF / Office projects? Why, the rents really don't justify considering the vacant land close by. You could offer a way above market bid for one of those lots close by and still keep your costs below whats needed to cover the yards. If philly decides to push this thing through with a half baked scheme we are going to end up with a park that only covers about 1/3 of the total acreage - you'll see holes everywhere because reality of the costs will set in as the construction moves forward.
PLEASE don't take this rant the wrong way - people should just be realistic about this, and it frustrates the hell out of me when I see that millions are being spent on a feasibility study (whether it'd be public or private $s). I'd LOVE to see the yards capped I really would, but from an economic standpoint it really makes ZERO sense. It would take 30+ years for it to make sense (and I'm being very bullish), and a LOT of things would need to change. For it to be done right, it needs to be done by a solidly financed investor - I don't see this happening because returns associated with the outlay don't justify. So what's the next option? Having a quaisi public-private relationship to build over the yards? If that's the case you can damn near guarantee that only a small portion will be covered, it will most likely be 1 or 2 buildings, and on top will sit the worlds most expensive park (directly next to the worlds largest urban landscaped park).