PHILADELPHIA | Highrise Development Thread IX

[1487]

Originally Posted by jsbrook

These articles all have it right...but isn't the constitutional amendment to tax commercial properties at different (higher) rate than residential (a measure with full backing by commercial real estate owners and the chamber of commerce) and a corresponding drop in the wage tax aimed at addressing all this? Let's hope it happens.

what I found interesting about the article is that Brandywine is investing heavily in Philly while the exec basically says businesses are leaving the city. If that be the case why is brandywine focusing on investing here? Why have they dumped some suburban assets to purchase and develop more in Philly? Also, the assertion that jobs are leaving Philadelphia is flat out false.

As for PA- much of the city's current tax and regulatory structure is related to or limited by the state- which is why it takes an amendment to the constitution just to allow Philly to tax commercial real estate differently from residential. PA is a stagnating state and there are reasons for that. In spite of having a mostly conservative legislature this is not really a pro-growth state.

[New2Fishtown]

Originally Posted by 1487

what I found interesting about the article is that Brandywine is investing heavily in Philly while the exec basically says businesses are leaving the city. If that be the case why is brandywine focusing on investing here? Why have they dumped some suburban assets to purchase and develop more in Philly? Also, the assertion that jobs are leaving Philadelphia is flat out false.

As for PA- much of the city's current tax and regulatory structure is related to or limited by the state- which is why it takes an amendment to the constitution just to allow Philly to tax commercial real estate differently from residential. PA is a stagnating state and there are reasons for that. In spite of having a mostly conservative legislature this is not really a pro-growth state.

Jerry Sweeney is the co-leader of the push by Paul Levy of the CCD to implement tax reform in the city. That is why he's being critical. This article and the CCD report that goes along with it is all part of them applying pressure to ensure that the state actually passes what's necessary for this to get done. It is far more powerful (and threatening) to have the largest commercial landlord quoting these statistics and warning about slow growth and long-term negative consequences than it is to have those same points come from a policy wonk, academic, or advocate. Brandywine's ongoing investment in downtown is more or less predicated on the taxation environment eventually becoming less onerous.

http://centercityphila.org/docs/CCR17_incompleterevival.pdf

[1487]

Originally Posted by New2Fishtown

Jerry Sweeney is the co-leader of the push by Paul Levy of the CCD to implement tax reform in the city. That is why he's being critical. This article and the CCD report that goes along with it is all part of them applying pressure to ensure that the state actually passes what's necessary for this to get done. It is far more powerful (and threatening) to have the largest commercial landlord quoting these statistics and warning about slow growth and long-term negative consequences than it is to have those same points come from a policy wonk, academic, or advocate. Brandywine's ongoing investment in downtown is more or less predicated on the taxation environment eventually becoming less onerous.

http://centercityphila.org/docs/CCR17_incompleterevival.pdf

Could be the case- just wondering why the question wasn't posed during the interview. Nor was his inaccurate claim that the city is bleeding jobs challenged. I don't see any reason for the legislature to NOT approve the change- I can't see any angle in which they gain from stopping it. It's a shame is such a limited amendment that really only allows taxation flexibility on this one issue.

[TempleGuy1000]

Originally Posted by 1487

Could be the case- just wondering why the question wasn't posed during the interview. Nor was his inaccurate claim that the city is bleeding jobs challenged. I don't see any reason for the legislature to NOT approve the change- I can't see any angle in which they gain from stopping it. It's a shame is such a limited amendment that really only allows taxation flexibility on this one issue.

The PA congress is going to elimante all property taxes and double the personal income tax with HB76/SB76. If your school district has debt, then you will still pay property taxes until the debt is paid off. So Philadelphia will be double fucked with property taxes plus super high personal income tax and an even higher sales tax!

[1487]

Originally Posted by TempleGuy1000

The PA congress is going to elimante all property taxes and double the personal income tax with HB76/SB76. If your school district has debt, then you will still pay property taxes until the debt is paid off. So Philadelphia will be double fucked with property taxes plus super high personal income tax and an even higher sales tax!

i did hear about that. One can only hope they would carve out some sort of exception for Philly so that people wouldn't face 10% local/state income tax and 9% sales tax.

[DudeGuy]

Originally Posted by 1487

One can only hope they would carve out some sort of exception for Philly so that people wouldn't face 10% local/state income tax and 9% sales tax.

It seems like that's almost the point of the law though - people from outside Philly don't want their tax dollars going to communities they don't even live in.

[PhillySteaks]

The city and state need to work harder on building a better relationship or all of us in SE PA are doomed. Hopefully they realize how symbiotic they are to one another. It's like cutting off ones nose to spite his face - this goes for both the city and the state.

It's in the states best interests to help Philadelphia be a thriving metropolis by providing investment and adequate funding so one day they can reap the rewards of the investment, just like it's in the city's best interest not be corrupt and learn how to actually manage a budget. I still for the life of me can't figure out why the voters allow DROP to continue. This state (and city) are the epitome of self-inflicted wounds.

[summersm343]

This bill - without special exception for Philadelphia - would be devastating to the city. I would strongly consider moving if this bill passes. Already paying high wage/income tax as it is. Let's hope it's killed! Could be devastating to the renaissance and momentum the city is seeing, and everything it's trying to do.

[Larry King]

Do any Philly pols in Harrisburg have the juice to kill this? This is why we need a guy like Fumo in Harrisburg.

[summersm343]

The Philadelphia Region is 32% of the state population, and generates 37% of it's tax revenue. The region is more than pulling it's share and is subsidizing some other parts of the state.

I understand that a lot of the suburban counties (especially Montgomery) are more well off than Philadelphia, but the city is changing. It's not good to have a suburb vs. city mentality. We have to think as a whole region. The suburbs need to realize that they're there, and they're successful because of Philadelphia.

Philadelphia is finally turning a corner. We have to keep pushing to make things better. We need more people from the state on board. It's amazing that they can't see that the Philadelphia region is practically the only region in the state that is growing in jobs and population. The rest of the state is declining or stagnant.

It's almost as if these rural legislators are jealous of Philadelphia's moderate success, as they can't figure out how to bring about job and population growth to their areas/constituents. So in turn, they want to squash Philadelphia's success.

It's in the best interest of the state to continue to help Philadelphia improve. Squashing Bill HB76 - or at least providing exceptions for Philadelphia - and approving Bill HB 1871 to allow Philadelphia to alter business and commercial tax structures is the best route.

[Londonee]

Originally Posted by summersm343

The Philadelphia Region is 32% of the state population, and generates 37% of it's tax revenue. The region is more than pulling it's share and is subsidizing some other parts of the state.

And worth noting that as the rest of the state (especially in rural areas, but also suburban ones like outside Pittsburgh) continues to lose population and Philadelphia and the surrounding counties continue to grow - our influence over state political happenings is only going to increase. Losing population in PA is bad for us from a Federal $$ and election clout standpoint, but better on a state level.

The more Daryl Metcalfe anti-Philly lunatics we can replace with local pols, the better.

[1487]

Originally Posted by PhillySteaks

The city and state need to work harder on building a better relationship or all of us in SE PA are doomed. Hopefully they realize how symbiotic they are to one another. It's like cutting off ones nose to spite his face - this goes for both the city and the state.

It's in the states best interests to help Philadelphia be a thriving metropolis by providing investment and adequate funding so one day they can reap the rewards of the investment, just like it's in the city's best interest not be corrupt and learn how to actually manage a budget. I still for the life of me can't figure out why the voters allow DROP to continue. This state (and city) are the epitome of self-inflicted wounds.

City knows how to manage a budget- it's actually balanced and unlike the State budget it's grounded in reality. In Harrisburg, the refusal to raise any taxes has led to consecutive fantasy budgets that don't add up- hence the fact there is a $1.5B gap looming this year and PA's poor bond rating. The city has to submit 5 year plans to PICA that show the projections of income and outlays and PICA will critique things that don't add up. Hence you don't hear a lot about last minute budget gaps in Philly but we do at the state level constantly.

[1487]

Originally Posted by Larry King

Do any Philly pols in Harrisburg have the juice to kill this? This is why we need a guy like Fumo in Harrisburg.

It won't become law without Wolf unless they can override a veto- which they probably can't.

[jsbrook]

Originally Posted by 1487

i did hear about that. One can only hope they would carve out some sort of exception for Philly so that people wouldn't face 10% local/state income tax and 9% sales tax.

I will sue them if they pass this and do not do such a carveout. Not kidding. I am a lawyer. Not a real estate lawyer but close with many, and we will figure out a cause of action. Anyone here is welcome to serve as class reps...

[summersm343]

First a name change, now new digs: Think Company opens third office

The experience design firm formerly known as Think Brownstone started off the new year with a new name— and now new digs.

Think Company opened its third office this month on the second floor of the Philadelphia Building at Walnut and Juniper streets – near 13th Street, marking the fast-growing company's second space in the city and third office overall.

Called its "Philly East" office, the new office is specifically designed to be a creative gathering space focused on collaboration and an open-air feel, while its studio at 15th and Chestnut in the Packard Grande building is smaller and centers around day-to-day work and development.

The two Center City offices have different feels and purposes, the same way Think Company's second and third floor at its Conshohocken headquarters does, said Executive Vice President Russ Starke, but each space also speaks to the company's aim to create focused experiences, whether digitally or in real life.

About 30 of the company's roughly 76 employees are working out of the Philly East office, located just about three blocks from its "Philly Think Space" near City Hall. Starke said they didn't set out with a specific plan to either wait for additional space to grow their first Center City studio or open a separate location, but when they saw their newest office, they fell in love with it.

Starke said they plan to continue its average of a 20 percent increase in staff over the next year, and may add another 10 to 15 employees in development, project management, visual design and user experience design roles.

It was the company's initial move into the city in 2014 that helped spark its growth spurt, Starke said, as the location made them more desirable to the population of tech talent who aren't interested in commuting outside of the city.

Read more here:
http://www.bizjournals.com/philadelphia/...rownstone-philly-east-office-walnut.html

[PhillySteaks]

Originally Posted by 1487

City knows how to manage a budget- it's actually balanced and unlike the State budget it's grounded in reality. In Harrisburg, the refusal to raise any taxes has led to consecutive fantasy budgets that don't add up- hence the fact there is a $1.5B gap looming this year and PA's poor bond rating. The city has to submit 5 year plans to PICA that show the projections of income and outlays and PICA will critique things that don't add up. Hence you don't hear a lot about last minute budget gaps in Philly but we do at the state level constantly.

Priceless. I really needed that today. Thank you. I used to discount what you wrote by like 20-30%, I'm jacking that to 75% based on that last statement.

[1487]

Originally Posted by PhillySteaks

Priceless. I really needed that today. Thank you. I used to discount what you wrote by like 20-30%, I'm jacking that to 75% based on that last statement.

YOu can discount what you wish, what I'm stating is fact but people who don't know squat about the subject matter likely can't recognize that. Check out the headlines- the state is AGAIN looking at a looming mult-billion $ deficit which was predictable based on the shoddy budget projections they used to cobble together a fake balanced budget. Wolf told them this last year and yet they pressed ahead because they refuse to raise any taxes. The projections were optimistic and now of course they aren't panning out. Philly has had to submit a 5 year spending plan since the early 90s when they almost went bankrupt and the state had to help out with bonds. PICA was created to oversee Philly's spending until all of the debt PA incurred is repaid in full from Philly tax revenue.

you might also want to compare the city vs state bond rating and read why PA has been downgraded so much in recent years. See what the experts say about whose fiscal house is in better shape if you really want to know the truth.

[jjv007]

Originally Posted by 1487

YOu can discount what you wish, what I'm stating is fact but people who don't know squat about the subject matter likely can't recognize that. Check out the headlines- the state is AGAIN looking at a looming mult-billion $ deficit which was predictable based on the shoddy budget projections they used to cobble together a fake balanced budget. Wolf told them this last year and yet they pressed ahead because they refuse to raise any taxes. The projections were optimistic and now of course they aren't panning out. Philly has had to submit a 5 year spending plan since the early 90s when they almost went bankrupt and the state had to help out with bonds. PICA was created to oversee Philly's spending until all of the debt PA incurred is repaid in full from Philly tax revenue.

you might also want to compare the city vs state bond rating and read why PA has been downgraded so much in recent years. See what the experts say about whose fiscal house is in better shape if you really want to know the truth.

Sure Harrisburg has issues but Philly has some as well. You always defend the way the city runs matters in EVERY situation. There's room for improvement on both sides. I don't know why it's so hard for the two sides to realize they should really be on the SAME side.

[1487]

Originally Posted by jjv007

Sure Harrisburg has issues but Philly has some as well. You always defend the way the city runs matters in EVERY situation. There's room for improvement on both sides. I don't know why it's so hard for the two sides to realize they should really be on the SAME side.

I'm not defending, I'm explaining and there would be no need if people made statements that were remotely based in reality. As someone already noted Philly is handicapped by the state is MANY ways. There is no way around it. Both can do things better but Philly has ZERO impact over how Harrisburg runs its affairs but the same can't be said in reverse. Harrisburg can and does limit how Philadelphia operates. In terms of budgeting in recent years there is no comparison whether people want to accept that or not. PA has refused to adjust revenues to reflect reality and there have been looming deficits for several years in a row because of the composition of the legislature. This is why the bond rating is suffering. PA has relied on 🞵🞵🞵🞵🞵🞵🞵🞵 and gimmicks to balance the books for a while now and at some point they will be exposed. And then you have the PA turnpike mess where they have mandated billions in borrowing to be paid back by drivers who face significant toll increases for the foreseeable future.

[jjv007]

Originally Posted by 1487

I'm not defending, I'm explaining and there would be no need if people made statements that were remotely based in reality. As someone already noted Philly is handicapped by the state is MANY ways. There is no way around it. Both can do things better but Philly has ZERO impact over how Harrisburg runs its affairs but the same can't be said in reverse. Harrisburg can and does limit how Philadelphia operates. In terms of budgeting in recent years there is no comparison whether people want to accept that or not. PA has refused to adjust revenues to reflect reality and there have been looming deficits for several years in a row because of the composition of the legislature. This is why the bond rating is suffering. PA has relied on 🞵🞵🞵🞵🞵🞵🞵🞵 and gimmicks to balance the books for a while now and at some point they will be exposed. And then you have the PA turnpike mess where they have mandated billions in borrowing to be paid back by drivers who face significant toll increases for the foreseeable future.

Fair enough, good points all around. There's a lot of infighting going on in Harrisburg that stalls progress too. Hopefully the mess gets figured out.