The transformation of Center City Philadelphia into a 24 hour downtown

Philadelphia: one of the original colonial cities

William Penn’s grid positioned at narrowest point between two rivers

Founded 1682: Plan - Center Square + 4 public squares

Enduring urban form: Original city = Center City

Broad & Market Streets

Five public squares

Rittenhouse

Washington

Franklin

Logan

Legacy: human-scale, walkable city

While this made us obsolete: 1950s-1970s

Re-infused with value in the post-petroleum age: Dense, diverse & walkable = sustainable

Inherit an industrial past

Largest 19th century industrial city in North AmericaWith major industries: Stetson Hat Factory

Baldwin Locomotives

Large factories often developers of rowhouses

Gave life to our waterfront

Many small shops across all older neighborhoods;1906: 16,000 manufacturing plants

Unlike Pittsburgh & Detroit not a one-industry townHighly diversified

Accelerated immediately after World War IIFactories were moving out the city

De-industrialization coincided with America’s attachment to cheap fuel & large cars

Federal policies that gave priority to the car

Resulted residential abandonment; population loss

Total Population: 1880-2008 Philadelphia & Its Suburbs

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1880

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

2008

Suburbs

Philadelphia

Declining share of regional residents

Suburbs

City

2.1 million

Red blighted areas = old manufacturing areas

Sad, vacant ruins visible from Amtrak

P ie r s w e r e le f t t o d e t e r io r a t e

Inherit successful downtown revitalization program that has built a post-industrial city

1956: 567 properties designated for preservation

Philadelphia has a long tradition of downtown living

1950s: Creation of modern new Office District

1953: the demolition of “Chinese wall”

Penn Center

1960s & 1970s: all buildings connected to transit

1980s: Linked Pennsylvania & Reading Railroad into integrated regional rail system

Employers: easy access to 360 degree labor market295,000 riders/day take transit into downtown

1980s office boom:

1990: 38 million s.f. of office space

Similar process of renewal in University City

Temple University: educational & medical campuses

The emerging employment center at the Navy Yard

All the city’s major employment centers are resultOf major strategic investments

55% of all private sector jobsIn 5 post-industrial nodes

Philadelphia is a major center of office employment

A major center for research & health care

Global center for education

Maintained careful balance of small & large scale

Integrating old & new

1990: A degraded public environment:Declining resources for cities

Substantial ground & upper floor vacancy

Neglected facades, solid security gates

9 to 5 downtown; empty streets at night

Losing office market share to suburbs

• Fiscal crisis

• Declining city services

• Job loss

• Office vacancy

• “pride of avoidance”

Origin of the CCD: 1990 Recession

1990• 2,100 property owners &

local government approve a special services district

1991: $6.5 million

Reauthorized 1994 (2015)Expanded 1995 (MSE)Reauthorized 2004 (2025)Reauthorized 2007 (2025)

2012: $19.5 million

Creating the Center City DistrictMunicipality Authorities Act of 1945

CCD boundaries: 220 blocks, 5,118 properties

1991: Focus on the basics – comprehensive cleaning

65% of survey respondents Say Center City “much cleaner” than rest of the city

Deployment

• 42 CSR’s• 4 Supervisors• 7 days per week

Community Service Representatives

Community Service Representatives

• A walking “hotel concierge”

• First Aid / CPR certified

Daily combined roll-call

Substantial long-term trend: 1993-2011

• 45% drop in major crime in CCD

• 77.3% drop in theft-from-auto

•“Halo” effect outside CCD boundaries

81% feel safe “most of the time” or “always”Perception of safety

1992: Public investment: arts & entertainmentDiversifying downtown land-use

Renovated historic theaters

Built new theaters

2002: Kimmel Center for the Performing Arts4,000 seats added

New home for Philadelphia Theater Company New home for Philadelphia Theater Company

Stimulated residential development Stimulated residential development

Center City today is rich with cultural amenities

2nd behind only New York CityNumber of Arts & Cultural organizations downtown

Both performing arts

& museums are seeing increased attendance

Continued to reinvest & expand

The Barnes Foundation

A new destination on the Parkway

Public investment: hospitalityPennsylvania Convention Center: 1993

Prompted private investment in new hotels: reused vacant buildings

Creating a new convention district

A 95% increase in hotel rooms

Nearly all within 15 minute walk

2001: New Independence Visitors Center

New home for Liberty Bell

#1 & #2 most visited destinations in the city

New Constitution CenterDiversifying the hospitality industry

New attractions have recently openedNational Museum of American Jewish History

President’s House

Steady growth in domestic travel

Overseas visitation rebounding from recession

We have added many new reasons for people to come to Center City

More customers = improving retail mix

42% of expenditures of hotel guestsSpent outside hotel on shopping & dining

GPTMC

Combined with growth of downtown population$491 million within 30 minute walk of City Hall

3 2 2 % g r o w t h in f in e d in in g r e s t a u r a n t s

27465 in 1992

Flourishing of sidewalk cafes

1995 = zero

2002

2003

2004

2005

2006

2007

2008

2009

2010:

273 cafes in 2011

People attract people

Growth of self-sustaining evening economy

Financing public area improvements

1994• 20-year reauthorization

1995• $21 million tax-exempt bond issue backed only by CCD revenues

• +$5 million City funding

1996: Streetscape Improvements• 893 trees; 72 planters

Visitor- friendly: 683 pedestrian maps & signs

Integrated with 233 signs for motorist that the CCD also maintains

Making Transit More Customer Friendly

Route maps and historic images

New graphics for 108 entrances to underground

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Doubled nighttime illumination2,032 Pedestrian-scale lights

Completed 2/3 of all streets in last decade

Supports the evening economy

Focused on small-scale incremental changes that add up

C:\Documents and Settings\plevy\Desktop\17th Street planters 2007.JPG

Benjamin Franklin Parkway Comprehensive lighting program

222 new pedestrian & 132 vehicular lights

Interpretative signs

Illuminated 14 major public sculptures

Facades of 8 major civic buildings

Culminated in November 2004Lighting of City Hall

From 7 adjacent buildings

2005 City Hall Holiday Lighting

D e c e m b e r 2 0 0 8 i l lu m in a t e d 9 b u i ld in g f a c a d e s

September 2008 opened our first commercial caféAs part of a park renovation project

Speciality lighting to animate public spaces 3 JFK underpasses

Renovated Chestnut Park

A quiet gathering place

But also a place to get a bite to eat

$68 million capital improvements

Residential revival

1996: 4.5 million sf. Vacant Class “C” office space

• Retained architect & developer to evaluate buildings

• Survey to determine best buildings; floor layout, window size & exposure

• Detailed economic analysis of 10 buildings: evaluation for code compliance, cost-estimate, pro-formas.

10 year residential tax abatementApproved 1997

• Extraordinary costs of converting from vacant office or industrial to residential use

• 10 year abatement on improvements

• Available city wide

1998–2011: 171 buildings of all sizesConverted to residential use

Since 1997 added 13,000 new units of housing

10.2% increase in population since 2000

26% in core of downtownSince 1990

8 Zip codes = 7.8 sq miles5.7% of city’s land area hold 12% = 181,003

Fastest growingMost densely settled

Center City attracting more younger people than rest of city41% of downtown: ages 25-44; city = 28%

Center City has more than twice the national average of residents ages 25-34.

Close proximity that makes us #1 nationally: walk to work – 38%; 22% public transit

Diversification of CBD land-use25,000 residents now living inside CCD boundaries

25,000

Continuing rental remand 33,578 students downtown; 84,876 adjacent

58% of seniors are “somewhat” to “very likely”to stay after graduation

Campus Philly survey

Significant volumes of returning empty nesters& they have driven up housing prices

Average residential sale price: 2.26 x citywide

Younger home-buyers are moving outward

Citywide 20% of residents work downtownIn core 40-50% downtown; 11.2% in University City

Extended neighborhoods rapidly approaching 40%

These outer areas greatest increase in bike & buscommuting to work.

Educational levels continue to rise

BA Degree Graduate Degree

These are the well-educated workers that employers wantResidents start to play a role in attracting business

Big opportunity: 22,710 children were born to Greater Center City parents from 2000 to 2011

Parents groups now actively involved in plansTo improve playgrounds

Coalition to improve downtown schools

Expanded schools website to serve these families

E

Reflected in our capital priorities: Sister Cities Park

Generous landscaping, new fountain, Children’s discovery garden, café, community

facility

Sister Cities fountain

Philadelphia at the center of the universe

Names of Sister Cities

Height of water jet related to size of population

Children’s discovery garden: ages 2-8

Recreation of the Wissahickon

Boat pond, discovery garden in background

Café overlooking the boat pond

Café building

Competitively selected operator

Revenues support operations of park

Branch of official Visitors Center

Extensive outdoor seating

Seating looks over the boat pond

Looks back on the office from whichYou are playing hooky for the afternoon

Biggest sign of change

Contrast to 1970s

How did Philadelphia fare in the recession?

Housing production dropped dramaticallyfor condos & single family houses

Demand for rental remains strongDemand for rental remains strong

Rents continue to riseRents continue to rise

Planned apartments are starting constructionEds & meds as prime driver

Population continues to riseCore = Vine to Pine; Extended = Girard to Tasker

Average daily hotel room rates initially declined

Center recently doubled in size

Expansion complete; 2,000 room shortageRoom rates are rebounding

Average daily rate for Center City hotels

Leisure & hospitality job growth outperformed suburbs

Office occupancy rates declined

But in general, most CBD office districts have outperformed their suburbs.

Philadelphia: #3 behind Wash DC & NYC holding occupancy levels

Philadelphia has a very high concentration in eds & meds

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

Much higher than east coast peers

Education & health care employment added jobs in all but 6 of the last 60 months

Philadelphia’s primary buffer against recession

Jeff, Drexel, Penn & CHOP all expanding downtown

Education & health care job growth outperformed suburbs

Next on the agenda: Invest in regional infrastructure

#1: Expanding runway capacityPhiladelphia International Airport

Allow simultaneous take-off & landing

#2: Big opportunityCapitalize on national support for high-speed rail

Long-shot, game-changer: High speed rail38 minutes to NYC; 67 minutes to Washington DC

Stopping both in Center City & PHL Airport

Strategic infrastructure investments at city levelOrganized around job centers

55% of Philadelphia’s jobs are in just 5 clusters of post-industrial employment

Largest center of employment in region $12.1 billion salaries to metro residents

University City: rapidly expanding

National Institute of Health (NIH) Research Funds: 2007

Research & development clustered in 4 nodes

These 2 employment nodes: 51% private sector jobsWell-connected to region by public transit

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

Fill in the thinned out, underperforming western edge

21st Street 22nd Street 23rd Street

Market Street

Center City + University City Front to 40th: one continuous business district

Area well-served by existing transit

(1) Enhance subway-surface & subway lines

With new transit signs + real time information

(2) Green & calm major streets in office district

Improve barren plazas

New green public amenities

Encourage more active ground-floor retail

Enhance landscaping & bicycle infrastructure

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Conceptual design complete:

(3) Improve visibility of local transit at 30th St Station

Improve the quality of public spaces

Improve the quality of public spaces

Small scale investments make a differenceEnhance connection between AMTRAK & SEPTA

(4) Create a new civic space at Dilworth plaza

New gateway to regional transit

New outdoor cafe

Visible from Convention Center; views up Parkway

New green amenities

Curved benches

Illuminated at night

La w n

Fountain on the north

FOUNTAIN

A thin sheet of water you can walk on

3 foot high programmed jets

(5) Finish MSE: Stimulate movement between major destinations at either end of the street

City Hall

IndependenceMall

Market Street East

8 City Blocks 3500 Feet 2/3 of a Mile

Convention Center

Make Market Street: primary hospitality & destination retail/entertainment corridor

Transform the Gallery

Create a continuous exciting retail experienceFrom 8th Street

Animate the sidewalks with retail

Gateway & connector to Chinatown & Convention Ctr

We have a highly successful, walkable downtown With a diversity of uses

Well-linked to the region with highway & rail

Thriving with day and nighttime activities

Re-infused with value in the post-petroleum age: Dense, diverse & walkable = sustainable

Assessment trends 1991-2011: Diversification pays dividends

Thriving center of opportunity for the city & region

www.centercityphila.org