Transit Oriented Development by PennPlanning

TRANSIT-ORIENTED DEVELOPMENT IN PHILADELPHIA

University of Pennsylvania | 706 City Planning Studio | Spring 2011

TOD typologies for a diverse city

Transit-Oriented Development IN Philadelphia: TOD typologies for a diverse city

Report by the Philadelphia Transit-Oriented Development Studio at the University of Pennsylvania, Department of City Planning May 2011

CPLN 706 Instructor: Nando Micale University of Pennsylvania School of Design

ACKNOWLEDGEMENTS Instructor:

Nando Micale

Participants :

PCPC

Tower Investments

Alan Urek

Tina Roberts

Clint Randall Anthony Santaniello Matt Wysong

The Ingerman Group

Geoffrey Long

Laura Spina

PREIT

David Fecteau

Chris Mrozinski

MOTU

Community Retail Catalysts

Steve Buckley

Catherine Timko

Patricia Ellis SEPTA

Byron Comati Erik Johanson

Students:

Market East Station

Wayne Junction Station

Donald Carson

Erich Bilal

Jeffrey Hreben

Jillian Nameth

Alex Sweet

David Streim

John Tatum

Ariane Burwell

Girard Station Alison Baumann Adam Tecza Andrew Zalewski James Willmer

Summary of Findings

Neighborhood TOD

I Wayne Junction Station

Wayne Junction Tod 8 Area Analysis 11 Development Concept 22 Impact 44 Conclusion 47 Image Citations 48 Data Sources 49 APPENDIX: Wayne Junction 168

Center City TOD I Market East Station

Area Analysis 52 Market Assessment 60 Initial Development Concepts 68 Final Development Concept 70 Implementation & Execution 80 Conclusion 94 Work/Image Citation 96 APPENDIX: Market East 178

Destination TOD I Girard Station

Area Analysis 102 Market Assessment 114 Case Studies 127 Program Concept 134 Development Strategy 148 Conclusion 160 Image Citation 162 APPENDIX: Girard Station Pro Forma 184

SUMMARY OF FINDINGS

While the 20th century is characterized by a political and economic system that subsidized auto-oriented development fueled by the construction of the federal highway system and availability of cheap land, the 21st century must seek more sustainable development solutions and find economic models for urban infill within regional policies and regulations that favor multi-modality and mixed-use. Higher value locations such as transit-oriented development (TOD) will be one of the major planning and development challenges as the United States faces population growth of an additional 100 million people in the coming decades. TODs will continue to offer one of the most compelling solutions to the challenges posed by the continued need for urban development. The trend toward TOD across the country is rooted in high-value quality of life issues. Americans are struggling with fuel costs increases which have contributed to a destabilized real-estate market that has been driven by auto-oriented development policy. TOD offers an attractive alternative, providing residents with amazing access to employment and leisure activities across the city and impeccable local access to everyday goods and services.

At the Federal level, the Obama administrationâ&#x20AC;&#x2122;s focus on integrated planning and design has charged the departments of Housing and Urban Development, Transportation, and Environmental Protection with creating programs that leverage investment across programs. This shift in Federal policy, a new focus on sustainability, and smart growth initiatives have spawned grant programs, such as the Sustainable Communities Planning Grant Program, the TIGER Grant, and Community Challenge Grant. All of these programs have focused on TOD as the urban development typology for regions and communities to target their resources.

Philadelphia has a rich history of transit and some of the best neighborhoods in the city. Despite this vibrant past, more recently the national trend toward transit-oriented development seems to have passed Philadelphia by. To remedy this situation, the City of Philadelphia, through its dual zoning code revision and comprehensive planning processes has identified criteria and locations for future TOD development. Four categories for TOD have emerged in Philadelphia: Center City, Destination, Neighborhood Center, and Park & Ride. The charge of the Super TOD studio was to evaluate these categories through three selected station sites â&#x20AC;&#x201C; Market East, Girard, and Wayne Junction - to create detailed development plans that the City can use to integrate into their policy thinking, regulatory frameworks, and dialogue with the development community and SEPTA. What follows is the result of that work in addition to some highlights of the opportunity and complexity that the TOD model provides.

The studio hopes that work found in this document can serve as a jumping off point for stakeholders invested in improving Philadelphia through transit oriented development. While each station will have its own challenges and opportunities, the categories outlined by the City are helpful in framing the issues that are likely to be encountered at stations associated with a particular typology. Transit needs to be at the center of any TOD. SEPTA and private developers need to consider the impact that high-quality, competitively priced transit has on the viability of any proposal. The presence of a station is not enough to make for attractive development. Riders must have reliable levels of transit service to make this form of transportation a viable option, and thus make the development around these nodes successful.

Benefits of TOD • Higher quality of life • Better places to live, work, and play • Greater mobility with ease of moving around • Increased transit ridership • Reduced traffic congestion and driving • Reduced car accidents and injuries • Reduced household spending on transportation, resulting in more affordable housing • Healthier lifestyle with more walking, and less stress • Higher, more stable property values • Increased foot traffic and customers for area businesses • Greatly reduced dependence on foreign oil • Greatly reduced pollution and environmental destruction • Reduced incentive to sprawl, increased incentive for compact development • Less expensive than building roads and sprawl • Enhanced ability to maintain economic competitiveness

Wayne Junction Station The station area plan for Wayne Junction targets its potential to support increased ridership, better integrated land uses, and ultimately to serve as a model of neighborhood TOD for the City of Philadelphia. The plan takes a three-pronged approach to unlocking that potential by proposing a mixed-use redevelopment program, a set of public realm and infrastructure improvements, and adjustments to SEPTA’s regional rail operations that would make travel to Center City cheaper and more convenient. The proposal calls for new residential units within a half mile of the station, additional retail development including a co-op grocer and national credit tenant drugstore, a small amount of commercial and flex industrial space, enhanced streets, new parks and a central bus hub that connects directly to the train station. This $134 million investment - combining private capital, city resources and federal funding - would complement the $50 million Wayne Junction station renovation that SEPTA plans to undertake in the near future. By leveraging public dollars to induce private development, Wayne Junction will generate higher population density, more diverse land uses, greater transit ridership, and a high quality public environment for residents and visitors alike.

Market East Station

Girard Station

Located just 3 blocks from the epicenter of Philadelphia, Market East Station has long been one of the cityâ&#x20AC;&#x2122;s most important transit stations. Despite incredible access by subway, regional rail, Amtrak, trolley, and bus, the station has somehow failed to capture the many types of people who pass through the area on a regular basis. The area is rich in resources, including the Reading Terminal Market, the Gallery Mall, the recently expanded convention center, Thomas Jefferson University, Chinatown, and the Historic District and Independence Mall. The studio suggests that an uninviting public realm and a lack of residential living are the principle challenges facing a revitalization of the area. The plan for Market East intends to capture a variety of submarkets (residents, students, commuters, tourists, and conventioneers) through a combination of improved transit accessibility, new attractions and amenities, and the creation mixed-use buildings. At the heart of this plan is a creation of a highly visible station entrance on Market Street, three new large format hotels, a variety of housing options, and urban big box retailers that all makes for a lively residential and destination neighborhood.

Girard Station anchors the fast growing, vibrant neighborhoods of Fishtown and Northern Liberties. While both neighborhoods and the nearby waterfront have attracted new residential and commercial development, vacant and abandoned land along I-95 and the elevated railway continue to divide the neighborhoods from one another. For Girard Station, the studio envisions an ambitious project to repurpose vacant land as a new development called Canal Square. Canal Square hopes to become a major entertainment and retail node for the region, while still serving the surrounding communities through exciting public amenities, space for creative entrepreneurs, and workforce affordable housing.

Park and Ride The fourth typology, Park & Ride, at Holmesburg Junction, was not studied for a variety of compelling reasons, most notably for the site constraints that significantly limited any development and a concern about the validity of Park and Rides as true TODs developments. This mismatch underscores the need for City agencies to consider carefully the way that TOD works on the ground. TOD is a place-based phenomenon that simply does not work in every location.

WAYNE JUNCTION TOD

NE J Y A U

CTION This station area plan for Wayne Junction targets its potential to support increased ridership, better integrated land uses, and ultimately to serve as a model of neighborhood TOD for the City of Philadelphia. The plan takes a three-pronged approach to unlocking that potential by proposing a mixed-use redevelopment program, a set of public realm and infrastructure improvements, and adjustments to SEPTAâ&#x20AC;&#x2122;s regional rail operations that would make travel to Center City cheaper and more convenient. The proposal calls for 550 new residential units within a half mile of the station, 115,000 SF of retail development including a co-op grocer and national credit tenant drugstore, a small amount of commercial and flex industrial space, enhanced streets, new parks and a central bus hub that connects directly to the train station. This $134 million investment - combining private capital, city resources and federal funding would compliment the $50 million Wayne Junction station renovation that SEPTA plans to undertake in the near future. By leveraging public dollars to induce private development, Wayne Junction will generate higher population density, more diverse land uses, greater transit ridership, and a high quality public environment for residents and visitors alike.

INTRODUCTION TO WAYNE JUNCTION

Of the Transit-Oriented Development (TOD) typologies that Philadelphia has defined, the neighborhood model will be the most widely applicable throughout the City. The development concept described below uses Wayne Junction station in Northwest Philadelphia to demonstrate the potential of TOD as a strategy for increased density, decreased driving and neighborhood revitalization. Philadelphia can realize the potential of these transit-rich areas by combining investments in infrastructure, public spaces and private development, and by carefully phasing plans to leverage tax dollars into more new businesses, real estate and transit ridership.

Wayne Junction in relation to the city at large.

The proposed TOD plan for Wayne Junction begins by recognizing the existing transit strengths on which to build. First, Wayne Junction is an important train station along the trunk of the regional rail network. In addition to the five train lines that pass through the station, Wayne Junction is a half-mile from two stations along the Broad Street Subway and a stop along three bus lines. The station is also located at the end of an exit ramp from V Boulevard. At the heart of this TOD proposal is SEPTAâ&#x20AC;&#x2122;s $50 million planned station renovation (including improvements to the nearby substation). To compliment SETPAâ&#x20AC;&#x2122;s commitment to updating Wayne Junction, this proposal calls for a threepronged strategy to turn this underused train station into a neighborhood TOD prototype. The first prong is a strategy to redevelop the properties and diversify the land uses around the station (approximately one to two blocks on both the Germantown and Nicetown sides of the Wayne Junction). The program calls for 227 units of market rate apartments and 224 affordable housing units comprised of mostly new construction with some converted historic industrial loft buildings. While the proposed building programming is dominated by housing, there are retail, commercial and light industrial elements as well. The major retail anchors include a co-op grocer and national credit tenant drugstore, like Walgreens.

The platform at Wayne Junction station.

Wayne Mills Narrow Fabric Machine.

INTRODUCTION TO WAYNE JUNCTION

One of the unique features of this proposal for Wayne Junction is the repurposing of several buildings on the block bounded by Berkley St and the inbound train platform, currently owned and occupied by Wayne Mills, a narrow fabrics manufacturer established here in 1910. Wayne Mills intends to continue occupying their buildings, but they lease some of their excess space to other local manufacturing and commercial tenants. By constructing a new flex industrial facility across the street, these tenants can be consolidated, making room for new retail tenants that can use the ample back-of-house space for on-site production of their goods, such as a coffee house and roaster or brew pub. On the Germantown Avenue side, a new park with a small amphitheater and old restored rail cars with shops and food will create a place for both active and passive uses. Modeled after the American Historic Tobacco District in Durham, NC, the goal of this reprogramming is to capitalize on the unique campus-like layout and industrial history of the Wayne Mills block and introduce uses that serve the local population as well as attract visitors from other neighborhoods, adding new uses in the buildings and people on the streets. To help catalyze and compliment this development, the second part of the three-pronged approach is investments in public spaces. Design and infrastructure interventions will focus on greener streets, new parks that integrate storm water management features, and re-aligning streets that create better access to the station and a new central bus hub on Windrim Ave next to the train station entrance. The final piece of this three-pronged strategy is a set of adjustments to SETPAâ&#x20AC;&#x2122;s regional rail operations that would prioritize Wayne Junction by reducing fairs to Center City and increasing service. By making regional rail travel more competitive with car and bus costs, SEPTA could help Philadelphia capture more of the value of one of the most extensive train networks of any city in the country. With so much infrastructure already built, the key to successful neighborhood TODs in Philadelphia 10

The proposed plan for Wayne Junction.

The new vision for Windrim Avenue.

The proposed plan for Wayne Avenue.

is not to build new transit lines, but to unlock the value of existing stations. Since local incomes are quite low and the market for real estate development is not strong, the earliest phase of this plan includes a large proportion of the proposed affordable housing. This strategy leverages the subsidies available for low-income housing production to add high quality new housing and increase density that helps supports new retail development. As a larger and more diverse population moves to this area, the more viable the second and third phases of development become, with additional market rate housing, retail and industrial space.

AREA ANALYSIS Wayne Junction is at the confluence of many things, it is a central transit node, the meeting point between neighborhoods, surrounded by a wealth of historic buildings, and in an ecological basin. At the heart of all of this is the historic SEPTA station. These existing characteristics have the potential to be enhanced, buttressed, and celebrated to highlight the unique place that Wayne Junction is now and could become in the future. The following analysis contributes to a comprehensive understanding of the challenges and opportunities that can be built upon.

NEIGHBORHOOD CHARACTERISTICS

Wayne Junctionâ&#x20AC;&#x2122;s place character reflects North Philadelphiaâ&#x20AC;&#x2122;s industrial history. The place character manifests itself in existing public infrastructure and the continuation of retail corridors from surrounding neighborhoods. Originally a hub of manufacturing, North Philadelphia has de-industrialized, and this is reflected in the built environment. The first way place character manifests itself is in the historic nature of the station area. Berkely Street, just north of the station, was the home of factories that worked in conjunction with larger manufacturers around the city, including Wayne Mills. For instance, an old sign for a pushpin manufacturer exists on the side of a building, reflecting its history. Thus, the buildings on Berkley Street are mostly brick with large floor plates to suite industrial needs. Several of them have the original occupant and year built on their front facades, acknowledging the history of the building. The campus of Wayne Mills also reflects this. The company still uses the buildings that it originally operated in. Additionally, a more historic character exists along Germantown Avenue, anchored by Stenton and Loudon Mansions. Second, place character exists in the retail corridors of Wayne and Germantown Avenue that intersect with Wayne Junction and continue through the Nicetown Neighborhood. Retail along Wayne Avenue exists at a small scale, with some neighborhood shops and auto-related uses lining the streets. Along Germantown, there are more active retail uses including a suburban-style strip mall development. In the warmer seasons, impromptu outdoor markets appear along vacant lots in the retail corridor. Public infrastructure is another aspect of the place character surrounding Wayne Junction. The infrastructure exists at several different levels including a CSX rail line that goes underground in front of the Windrim side of the station. This sunken rail line is lined with a wall for safety. On the other extreme is the Roosevelt Expressway that exists southwest of the station. Above ground level, but lower than Roosevelt Expressway is the Regional Rail Line that traverses the site. Finally, Wayne Mills and other industries bring a unique place character to the station area. As a company, Wayne Mills has existed at this site for over 100 years specializing in the manufacturing of narrow fabrics. The company itself is very transparent, welcoming community and educational tours. Currently, the company uses approximately 60% of the space, and rents out 40% of it to other complementary businesses.

Row house typology common around the Wayne Junction station.

Highway infrastructure is a defining feature of the site.

Informal retail exists along Germantown Ave. during the warmer months.

A view of the Wayne Mills manufacturing campus.

HISTORY

After it’s genesis in 1881, Wayne Junction was a station of great significance for both Philadelphia and the United States. The station was a central hub for a number of surrounding neighborhoods including Germantown, Nicetown, Tiago, and Logan. In the early 20th century, the transit stop - which was part of the Pennsylvania Railroad system and, at one time, saw more train stops than any other place in the world - brought an immense amount of prosperity to the region. Bustling industry, manufacturing, shipping, and trading were commonplace, and the local residents were the beneficiaries of the booming commerce. In the late 1890’s the station provided a sleeper car service that travelled across the country, to Los Angeles, through Chicago and St. Louis. The rail service, however, became more and more infrequent, and eventually the passenger service trains were discontinued in 1958. During this time of service decline, there was also a certain amount of economic decline that paralleled it. The station, and the neighborhoods around it began to fall into disrepair with the de-industrialization of Philadelphia. Nevertheless, Wayne Junction maintained it’s significance as an integral station in the northern portion of Philadelphia. For this reason, the idea of the potential for Wayne Junction to be a prominent modern transit hub has never fully been abandoned, as evidenced by the recent public investment into the station.

Historic images of Wayne Junction station from the early 1900’s

Another Historic Image of Wayne Junction Station from the early 1900’s

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Wayne Junction Timeline

2011 13

ENVIRONMENTAL

Topography Map: Wayne Junction as a sinkhole.

The development and infrastructure around Wayne Junction has negatively impacted many of the environment functions around the site. Much of the area is covered in concrete which prevents storm water filtration and causes higher summer temperatures. When it rains, water moves rapidly over the impervious concrete surfaces and collects in the bowl formed by the topography around the station or flows through the storm drains out to the river carrying with it the oils and garbage from the street. In the summer, the dark colored cement traps heat causing the surrounding area to be several degrees warmer by way of the urban heat island effect. Projections for the impacts of climate change on Philadelphia show that in addition to more severe weather events, the summers will be longer, have higher temperatures, and result in extended dry periods. When there is precipitation much of it will fall as heavy rain or be a wet snow that melts quickly. These changes will compound the issue of storm water management, and the urban heat island effect and have compound the environmental problems around Wayne Junction.

To avoid the worst impacts of climate change, there will need to be significant efforts to reduce greenhouse gas emissions both in Wayne Junction and worldwide. Reduction targets in the Kyoto Protocol call for an 80% reduction in emissions below the 1990 baseline by 2050. Residential energy use and transportation account for close to 60% of greenhouse gas emissions in the United States. Though Wayne Junction already has many public transit riders, to go from the existing built environment in Wayne Junction to one that is more sustainable necessitates using a variety of options for emission reductions. These include everything from reducing waste to increasing public transportation to renewable energy to carbon sequestration through urban forests, and a variety of other measures. One final environmental concern are the noise and air quality problems from the Roosevelt Expressway. Given the large traffic volumes moving over the roadway, the area directly around the freeway experiences higher amounts of particulate matter. In high concentrations, such as those found along a roadway, particulate matter has adverse impacts on health.

TRANSIT

Modal Split In Wayne Junction

52%

33%

Drove

Bus

4% 3% 2% 1%

Walk

Rail

Subway

Bike

Bus

Walk

Work at Home

Trolley

Car

Regional Rail

Subway

Cost Time to Center

FREE

106 min

35 min

36 min

14 min

15 min

18 min

Frequency

Anytime

6.6 min

Anytime

15 min

8 min

Drawbacks

Limited Range and Weather

Weather

Slow and Access

None

Access

Residents of Wayne Junction work all over the City and 99.4% are employed outside the Wayne Junction area. Only 23 people live and work in Wayne Junction. Wayne Junction is a small employment center with 720 people employed in the station area and 3,994 people that live in the area and leave for work. To get to these jobs, people use a variety of transit options. Wayne Junction is a transit rich location having a complete car network, sidewalks for pedestrians, a smattering of bike lanes, regional rail, bus, and subway service. However, many of the systems are not well integrated physically, in the fare structure,

Most Time Efficient

Best Low Cost

or in the service that they provide, resulting in a number of missed opportunities. The most complete transit network is for autos. Around the site, all of the buildings are serviced by roadways and there is ample parking. Directly adjacent to the site is the Roosevelt Expressway, which makes Wayne Junction accessible and in turn gives the area access to the entire metropolitan region. When compared to other modes, the auto has the shortest time to downtown and is a convenient option for making any type of trip. Running through the site, there are a number of bus lines including the 53, 75, and 23. The 23 is the 15

New Jersey - New York Doylestown

TRANSIT

West Trenton

Warminster

Area amenities along the SEPTA regional rail â&#x20AC;&#x153;trunkâ&#x20AC;? Thorndale Chestnut Hill East

New Jersey - New York

Norristown Chestnut Hill West

Trenton Transit Center

Glenside Fox Chase

Wayne Junction Cynwyd

Downtown

Shopping Academic Institutions Food Multi-Modal Connections Art Housing Sporting Events Elwyn

Newark

Philadelphia most popular route in the city and stops in Wayne International Airport Junction before running downtown and on to South Philly. To accommodate the high volume of riders, the 23 comes every 6.6 minutes. The short wait time and the two dollar fare make the bus the lowest cost transit option.

network. Despite the large number of lines running through the station, the structuring of the service means that very few trains are stopping at Wayne Junction. The area is missing an opportunity to capitalize on Wayne Junctions important position in the network.

The regional rail has an important position in the Wayne Junction area and also on the regional rail network. It is not meeting that potential in part because it is not competitive with other modes in terms of service or price and by extension is not as convenient or cost effective. The network geometry of the system reveals that Wayne Junction is located along the trunk as opposed to being situated along a branch. A number of regional rail lines converge at the station, bringing high volumes of people through the area each day and ensuring that it is easily accessible with direct service throughout the

Unlike other stations along the trunk, Wayne Junction provides far fewer amenities and none that are of regional import to attract visitors to the stop and options to residents. The amenities lag behind those of other stops along the trunk suggesting there is the potential to reposition the neighborhood to better take advantage of its location along the central core of the Regional Rail network. What exists around the train station has potential but needs to be improved to leverage the investment in the station upgrades will bring economic development to the community at large.

DEMOGRAPHIC HIGHLIGHTS

To create a thorough and current profile of the demographic composition of the area, the analysis in this section relies on several sources, including the 2000 Census, the 2005-2009 American Community Survey (ACS) five-year estimates, and Policy Map, a tool developed by The Reinvestment Fund. Two geographies were used to gather and evaluate the data: the seven closest census tracts to Wayne Junction Station (for Census and ACS data), and a half-mile radius around the station (for Policy Map data).

Only 9% of households are married couples.

The size of the population in the study area is expected to remain stable in the next five years with projections for a slight loss of less than 2% or 200 people. Three out of every five residents is currently of working age (18-64) while school-aged children account for 22% of the population. Nearly 98% of residents identify as Black or AfricanAmerican. Two-thirds of households have no children under 18 years old. Of those with children under 18, single parent households outnumber married-couple households nearly three to one. Education attainment of residents near Wayne Junction is well below the citywide levels. Only 8% of adults in the study area have a college degree, although that number has increased as a proportion of the total from 6% in 2000. The most significant shift in the past decade has been in the number of adults with and without a high school diploma (or equivalent). In 2000, one third of adults (25 years or older) had not finished high school; approximately 7 years later, only about 22% did not have a diploma. The median home value ($76,000) and household income ($30,000) help explain the lack of private investment in the area. With relatively low incomes and a weak local housing market, new retail businesses and real estate developers have not shown much interest in the Wayne Junction station area. Purchasing power is limited by the fact that over 40% of households earn below 30% of AMI. This is a challenge to transit-oriented development at Wayne Junction because transit alone does not make a successful TOD â&#x20AC;&#x201C; there must be increased development as well. Therefore, the market for new housing and necessary additional demand for new retail will likely have to come from a combination of existing and new residents.

Median home value is $76,000.

$ 42% of households earn < $25,000/year.

Only 10% of adults have college degrees.

MARKET ANALYSIS

The primary obstacle to private development around Wayne Junction is the relatively weak housing market. Philadelphiaâ&#x20AC;&#x2122;s high cost of construction is not justified by the market demand for housing without significant subsidy. Without an increase in density and income, retail amenities are not likely to be added to the neighborhoods around the station. This section highlights the key residential and retail market study findings that informed the programming and tenant mix of this proposal.

Primary Trade Area For Residential Market

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Residential

The residential analysis assesses the market for housing within a 7 square mile boundary. This area is large enough to capture demand from all adjacent neighborhoods without including too wide a variety of submarkets. While the renter/owner split is well balanced in the Wayne Junction area, incomes are generally too low to support new construction of market rate ownership units, particularly given the risks associated with the current credit crisis in local and national housing markets. For this reason, the analysis for Wayne Junction focuses on rental housing, and the affordable multifamily market in particular.

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Source: Census Wayne Junction Primary Trade Area

Primary Trade Area For Retail Market

In the past two decades, real (adjusted) incomes in Philadelphia have failed to keep pace with inflation, falling further among renters with respect to rising housing costs. This trend holds true in the market area, with median household incomes at $30,000 and median rents at $800, or 32% of gross income. Since affordability is of particular concern in areas of concentrated poverty, this market study included an analysis of the undersupply of housing affordable to low-income households. The results show that the greatest demand for additional supply (12,000 units within the boundary) is for those households earning between 30-50% of area median income.

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Retail

The retail trade area boundary is large enough to capture demand for unique establishments like restaurants and theaters, but small enough to focus on the target market, which is residents of the immediate and adjacent neighborhoods. 18

Source: ESRI

Wayne Junction Primary Trade Area

MARKET ANALYSIS

Demand Analysis for Affordable Housing

HHs earning $40-75,000 HHs earning $25-40,000 HHs earning < $25,000

9,276

Over(Under) supply of 80% AMI Units: Over(Under) supply of 50% AMI Units: Over(Under) supply of 30% AMI Units :

4,146 6,693 (11,984)

13,045

20,626

Low Food Access Areas

The trade area is undersupplied with several retail categories according to an analysis of ESRI and Census data. Even without forecasted growth in population and income, there appears to be market potential for additional drug stores, restaurants (both sit-down and casual) and liquor stores. All of these categories are included in the proposed retail programming. According to a database maintained by The Reinvestment Fund, such a high concentration of low-income households and a limited number of supermarkets and food outlets has resulted in is poor access to fresh food around Wayne Junction, as well as in pockets throughout the retail trade area. As an urban food desert with an otherwise central location, the Wayne Junction station area appears to be a good strategic investment opportunity for a green grocer, co-op or supermarket developer.

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Source: The Reinvestment Fund

Wayne Junction Primary Trade Area Low Food Access

PREVIOUS PLANS

Because Wayne Junction has been identified as a site that has immense potential for growth and development, there have been a number of plans released that identify many of the possibilities for the area. These local plans, in concert with a number of city-wide plans and initiatives, worked to inform the direction of the following proposals and concepts. On the city level, the new development proposals were intended to cooperate with the Philly Greenworks plan. With the idea of contributing to the plan’s goal to turn Philadelphia into the greenest city in the world, there were a number of ecologically centered issues to be addressed.

Urban design implementations along Windrim Avenue

The Philadelphia Industrial Development Corporation’s industrial land use study was references as a result of the industrial history of the site. A number of manufacturing buildings and industrial land uses, dating back to the early 1900’s, occupy the site and contribute to the character of Wayne Junction. Considering the employment statistics and labor market opportunities of local industry, this plan was a crucial factor in determining the programming for the site. SEPTA’s “Sep-tainable” plan, which focuses on the environmental, social, and economic impacts of the comprehensive transportation planning efforts was also taken into consideration. Initiatives such as reducing air pollutants, integrating transit with livable communities, improving access to local food, and increasing mode share were right in line with the new vision for Wayne Junction as a neighborhood TOD. At the local level, a number of plans and development concepts were referenced. In the plan for Nicetown, the pertinent proposals included new RDA housing located on the south side of the station across Windrim Ave., a plan for new parks - including a skate park underneath the elevated portion of Route 1, and the potential for a new historic building designation. In a Germantown/Nicetown comprehensive plan, there were elements extracted that informed the treatment of the urban fabric, including public realm improvements, adaptive reuse of existing building stock, and a public market area/ inter-modal station.

The identification of a possible federally registered historic district in Wayne Junction

A reimagining of housing options along the south side of Windrim Avenue

OPPORTUNITIES AND CONSTRAINTS

There are a number of opportunities in the Wayne Junction TOD overlay district, chief among them, being the SEPTA transit stop and the parcels of land immediately around it. Directly to the north of the station, there is an entire block occupied by Wayne Mills, a manufacturing company whose operations date back to the early 1900â&#x20AC;&#x2122;s. The block is oriented as an industrial campus, with a number of mid-size, brick manufacturing buildings. While Wayne Mills does operate out of this industrial campus, they do not occupy all of the buildings, and have recently been leasing industrial space to local manufacturers. This particular block, bordered by Wayne Ave., Berkeley St., Germantown Ave., and the SEPTA station represents an incredible opportunity for urban design and programming implementations to showcase both the industrial character of the site, and the significance of the Wayne Junction district. To the west of the site, there is a large parcel of land occupied by a junkyard. While the current use of the land is a scrap metal junkyard, the location of the parcel lends itself to being repositioned as an integral part of the Wayne Junction programming. As the first property within the district that is seen arriving from the east via Route 1 and Regional Rail, this site, along with Wayne Ave. becomes a very important threshold. Furthermore, the multi-modal access to the site represents another significant opportunity for Wayne Junction. The Route 1 expressway crosses the site from east to west to the south of the transit station, providing highway access directly to the heart of the district. Additionally, two of Philadelphiaâ&#x20AC;&#x2122;s main corridors, Wayne Ave. and Germantown Ave. flow north and south directly on either side of the transit station. These corridors both carry a great deal of name recognition throughout the area and have the potential to be utilized as assets to development. Finally, the Wayne Junction transit stop itself benefits from being located on the trunk of the SEPTA regional rail system - all five of the regional rail lines have access to the station. The last major opportunity identified at the Wayne Junction site is the large swaths of rail yards located adjacent to the station. Because of the large rail infrastructure needed to facilitate a station as accessible as Wayne Junction, there are two large areas of rail yards located on the southwestern and north eastern sides of the transit stop that, along with the elevated SEPTA lines, effectively dissect the site into two parts. While this land is not ideal for traditional commercial or residential development, there may be more progressive and innovative uses for the virtually inhabitable land that could raise the value and put the land to itâ&#x20AC;&#x2122;s highest and best use.

The location of the Wayne Junction station.

Parcels and properties that are opportunities for redevelopment.

Large swaths of SEPTA tracks to the north and south of the station.

Two major retail corridors, Wayne Ave., and Germantown Ave., run through the site.

DEVELOPMENT CONCEPT

After assessing our development opportunities and conducting a thorough investigation of the existing conditions around Wayne Junction, we considered two concepts for the station area. One concept focused on historic revitalization, the other concept focused on bringing new residents to the station area with different residential typologies. Ultimately, our development concept combined both of these goals and encompassed our overall visions and planning principles for the project.

We envision Wayne Junction as a place that works with the historic fabric of the area to create a new image for the station. Wayne Mills is a great asset to the surrounding neighborhoods that we wish to capitalize on by creating more design interventions that make the industry more transparent and building off the flex industrial typology with complementary programming. Wayne Junction will be a place for neighborhood conveniences as well as a destination for the surrounding neighborhoods due to the addition of public space and new residential and retail typologies.

Transit and infrastructure improvements are integral to the success of the new station developments as well. We have proposed interventions on several levels that encompass all modes to capitalize on the importance of Wayne Junctionâ&#x20AC;&#x2122;s location in the SEPTA Regional Rail Network. Additionally, we have proposed interventions to make Wayne Junction a more prominent bus hub, and an area that is safer for bicyclists and pedestrians.

Principles and Visions

Five Planning Principles summarize our goals and visions for the area. 1. Leverage Public infrastructure investment to increase transit ridership & multi-modal connectivity.

One of the primary reasons that Wayne Junction has the potential to become a Super TOD is because of its connectivity on the SEPTA Regional Rail, as a stop on the trunk. Additionally, due to the need for restoration, SEPTA has invested in a station renovation that is over $50 million dollars. It is our hope that our plan will also help increase transit ridership, and give SEPTA some tangible ideas with how to make Wayne Junction a truly multi-modal station through public investment. A change in frequency, and a new pricing strategy to encourage multi-modal transportation is one of the first steps. In addition, a more pedestrian friendly station area and essentials for bicyclists will be built to account for all modes. A more formal bus station will exist on Windrim to make the train directly accessible to bus and trackless trolley riders, and vice versa.

Utilizing SEPTA investments as leverage for private development.

2. Create a mixed-use neighborhood center around the train station that supports residents and welcomes visitors.

Wayne Junction is at the confluence of three different neighborhoods, and should serve as a central hub of activity. Our goal is to create mixes that encourage residents to get out of their cars and walk to the station, and to motivate more visitors to take the train. Currently, one form of housing exists around the station, a single-family row home. Our plan promotes the introduction of different housing types including multi-family apartment buildings and townhomes. In addition, the plan provides much needed retail to promote activity around the station. TODs should also include neighborhood-serving retail that allows residents to travel to and from the train station, on foot, for their most common needs, and our programming reflects this. A bank, pharmacy, and grocery store exist around our station due to market demand and its compatibility with transit use. In addition,

A walkable and dense neighborhood center for residents.

Prioritization of the bicycle network to encourage more riders.

PRINCIPLES AND VISIONS

a diner, bookstore, and cinema will provide novelty uses that can help create not just a neighborhood center, but a destination for those in surrounding neighborhoods. 3. Focused station area redevelopment that catalyzes infill development.

One of the main opportunities around the station area exists in the form of small vacant lots peppered throughout the neighborhood. It is our hope that construction around the station will help create more sensitive and contextual redevelopment of smaller lots within the neighborhood.

Utilizing existing buildings be introducing adaptive re-use.

4. Become a model for green development and infrastructure.

As Philadelphia has become a pioneer in green and environmentally friendly policies, our station area design and development will be at the forefront of this. In addition to providing alternative energy for the substation, all new construction and adaptive reuse around the station will be environmentally sensitive. Wayne Junction has a problem that faces several Philadelphia neighborhoods, that of stormwater management. We will account for this with an aggressive plan to collect water at the bottom of Wayne Avenue and Germantown Avenue in the sinkholes that exist around the station. This will not only help the residents of Wayne Junction, but also the businesses that are located at the bottom of the hill.

Increased neighborhood interaction through improved public space.

5. Work with the historic fabric of the neighborhood to revitalize the area and form a new future.

The area surrounding Wayne Junction is one of the most historic in Philadelphia, including the station itself. In our designs, we hope to create a place that harkens back to historic Philadelphia. This will be done through our use of historic rail cars and the restoration of early 21st century factory buildings. In addition, informational signage will exist on the station platform and around the station itself to identify the historical significance of the station and station area. 24

Ecologically and Envrionmentally conscious development.

CONCEPTS CONSIDERED

In the concept generation phase, two alternative plans were created to attempt to optimize new investment in the Wayne Junction area: Historic Revitalization

The first concept was to celebrate the history of the neighborhood through the reprogramming of flex industrial buildings to have a greater mix of uses and the integration of railcar follies to punctuate the public space. Through this adaptive reuse, there would be the creation of new jobs, and activity in the station area which would result in positive co benefits for SEPTA as it balances boardings and aligtings and spurred on residential development in the many small vacant parcels around the station area.

Historic Revitalization Plan

A Growing Neighborhood

The second concept was to create a new residential units, supporting amenities, and vibrant public spaces, around the station area to attract more residents to the area. Permeating through this concept were themes of livability and neighborhood oriented development to fuse existing and new into a vibrant place.

A Growing Neighborhood Plan

PROGRAM

Roberts and Wayne

Berkely Street

Wayne Mills

Windrim Avenue

After carefully reviewing the market study and existing conditions of our site, the program was finalized. The location for several programs was based on financing mechanisms available for certain programs, adaptive reuse, and access to the train station and major streets. All affordable housing in the station area is new construction, as there are financing sources available for this program. The multifamily buildings exist at the edge of the station area at 229 units total and three stories each. They are meant to change the building typology by adding density, while keeping with the character of the neighborhood. Affordable housing also exists as row homes with approximately 58 row homes total, that vary from two to three stories.

In what currently exists as a Comcast parking lot and storage area, stands a building whose programming is shared by a Walgreens and Wine and Spirits store. This building is set back from the street to allow the area to act as stormwater management for the site. Walgreens was chosen as the tenant because they are looking to expand in this market. A new diner will exist next to the train station, in the form of an old rail car. Other old rail cars on the site have been restored and programmed as a bike shop/storage, bookstore, and art gallery. Along Wayne Avenue, a building has been programmed as a coffee shop and roaster on the first floor, with the current tenant, a martial arts studio, occupying the second and third floors. Next to the coffee shop exists a brewpub, meant to echo the nature of storefront and production that is found at the coffee shop, while providing a new

PROGRAM

restaurant in the area to address demand. Next to the brewpub and closest to the train station, is a tutoring center, meant to be developed in the style of 826 Tutoring centers, a national organization that houses tutoring centers in buildings in which they program the storefronts for retail, bringing artists and writers to the tutoring center as well. Wayne Mills will stay in its current building, as we feel it has brought jobs to the area and is an active, light industry. Along Wayne Avenue, a building has been programmed as a coffee shop and roaster on the first floor, shared office space on the second floor, and business incubator on the third floor. Directly next to the coffee shop on the first floor is a family restaurant that is accessible by the street and takes advantage of nearby open space. Wayne Mills will stay in its current building, because of its ability to bring jobs to the area and is an active, light industry. However, because Wayne Mills does not use their entire campus, and currently leases some of their space to smallscale manufacturers, this concepts proposed a space for creative/design firm offices. On Berkely St., the property immediately west of the exiting church property would be three stories of dedicated flex industrial space totaling 21,000 square feet. This building provides large enough footprints for businesses that would be removed from the Wayne Mills campus. On the corner of Germantown Ave. and Berkeley St., there will be new construction, market-rate residential units, with a 3,000 square foot corner retail space. There will also be adaptive reuse of the large brick manufactureing building to the west of the proposed industrial space. These new urban lofts, along with the new housing proposed on the corner of Germantown and Berkeley, will introduce 76, market rate units into the area. On the southern side of the station, off of Windrim Ave., there is a proposed 200 units of new construction, market rate housing. This development would occur on the site curently occupied by Extra Space Storage, and would complete the transformation of the space immediately around the area into a truly walkable, residential center.

American Historic Tobacco District in Durham, NC

New construction housing typologies in Philadelphia

Eastern Market in Washington, DC

PROGRAM

On the southern corner of Wayne Avenue and Berkeley Street there would be a new construction retail building totaling 7,000 square feet. The storefront would be oriented along the street to emphasize the commercial corridor. Because of the size of this particular building, the new development could potentially house a number of uses. A 1,000 square foot community bank, a 3,000 square foot dry cleaner/laundromat establishment, and an independently owned 3,000 square foot pizza shop would occupy the space and serve both the neighborhood, and visitors. Anchoring the corner of Wayne Avenue and a newly constructed access boulevard would be a 24,000 square foot co-op grocery store. Because of the poor food access in the area, this development would provide locally sourced produce and grocery options. Additionally, because of the organization structure of food retail cooperatives, the neighborhood members would have the option of ownership â&#x20AC;&#x201C; strengthening the bond between the development and the community, while providing avenues for social and economic empowerment to the local population. Because of its strategic placement, the grocer would be immediately accessible from a major arterial and act as an entry threshold from the west for the rest of the retail development. The grocer could potentially build off of this increased potential for consumer traffic, and in turn, attract outside dollars to the area.

Cine Independant Theatre and Venue in Athens, GA

Urban Walgreens, Memphis, TN

As the prices for electricity continue to increase because of deregulation, it will be important for Septa to control costs and manage risk. In the extensive rail lands around the Wayne Junction Station, there is the opportunity to install a field of wind turbines that could easily tie into the existing electrical substation while simultaneously providing both a new image and industry for the area.

Carruth Housing Development, Boston, MA

URBAN DESIGN

The major design moves for our site are discussed in detail in the following sections. Our main goals in redesigning the site include creating a more easy transition between transportation modes through street design, protected bike lanes and new station entrances. Additionally, creating a more pedestrian friendly station area with less parking and hidden driveways, shorter and safer crosswalks and a tree canopy were important considerations. Having an open space system that is useful and connects to the surrounding amenities is also extremely important. Ultimately, our urban design aims to create a new identity for the Wayne Junction Station Area.

URBAN DESIGN - WAYNE MILLS CAMPUS Wane Mills Campus Plan Left: Detailed site plan of the Wayne Mills Campus Area. Right: A Rendering of the Proposed Amphitheater and Railcar Park.

Below: A site section cutting across Berkely Street through the station and onto Windrim Avenue.

Site Section

URBAN DESIGN - WAYNE MILLS PARK Perspective of Wane Mills Park

URBAN DESIGN - WINDRIM AVE.

Perspective of Windrim Ave

Currently, Windrim Avenue has several obstacles, including a wide, unprogrammed sidewalk, and a dangerous intersection for pedestrians. In redesigning Windrim Avenue, the proposal aimed to create a place that is more comfortable as a multi-modal hub, where one can wait for the bus or train in a central location, surrounded by trees. The headhouse hides the CSX line and provides food and small convenience retail. The street itself has been narrowed with bike lanes and given an identifiable arch to make crossing the street more comfortable for pedestrians, and generally, more multi-modal. Top: A rendering of Windrim after urban design intervention. Bottom: An existing photograph of Windrim Avenue.

URBAN DESIGN`- WAYNE AVE.

Perspective of Wane Ave

The Wayne Mills campus will be identifiable with a unique pavement pattern that gives the area a sense of place. The pavement pattern is inspired by the narrow fabrics produced in Wayne Mills, with bright ribbons that act as pedestrian paths that continue onto other areas of the site, across Windrim and Wayne Avenue, linking them together. An area that currently exists as a gas station and old industrial building will become a new open space. This open space will help frame the rail cars and provide an amphitheater for surrounding communities. The land currently slopes down, collecting water. Thus, the space will also be a tool for stormwater management, with rain gardens and trees. A fountain will exist at the bottom of the sinkhole as an interactive site for children during the summer months that turns off when the railcar band shell is in use. Finally, an opportunity for stormwater management also exists on the northwest corner of the site, as a receptacle for roof water runoff. This has been designed as a flexible space that can double as a farmers market, as it sits diagonally from the co-op grocery store.

Top: A view along Wayne Avenue of proposed urban design interventions. Below: existing view of Wayne Avenue.

URBAN DESIGN - ROBERTS AVE.

Perspective of Roberts Ave

The area of our site that acts as a gateway from Roosevelt Expressway into Wayne Junction, currently sits as a junkyard. We feel this land is an opportunity for new housing and retail options around the station area. We propose that Roberts Avenue continues as an extension of an off-ramp from Roosevelt Expressway so that it intersects with Wayne Avenue. The boulevard has been designed as a curvy street that slopes downward. The corner of Wayne and Roberts will house a coop grocery store on one side and the dry cleaners, pizza shop, and bank on the other side, extending the retail corridor of Wayne Avenue. Additionally, bike lanes on Roberts will feed into the protected bike lanes on Wayne Avenue, connecting this street to the larger site.

Top: View of design intervention along Wayne and Roberts Avenue. Bottom: Existing condition of Roberts and Wayne.

BRANDING

Wayne Ave.

Various possiblities for wayfinding and branding signage.

NE J U N

CTION

Wayne Junction is a unique site because it is not, in and of itself, a Philadelphia neighborhood. In fact, it is at the confluence of two large Philadelphia neighborhoods: Germantown and Nicetown. Because of this reason, Wayne Junction is afforded the opportunity to draw from two separate and strong identities in the formation of itâ&#x20AC;&#x2122;s own. A comprehensive branding strategy to introduce a consistent and clear demarcation of the new transit oriented development zone would expedite development efforts and shifts in public perception. New logos to reinforce the sense of place and celebrate the rich history of Wayne Junction, along with coordinated wayfinding signage and kiosks would breath new life into the district and provide a tangible sense of place for both residents and visitors.

Proposed Wayne Junction logo: Emphasizing the new dientity of the area and changing the public perception

TRANSPORTATION INTERVENTIONS If all the trains that passed through Wayne Junction stopped there, the station would go from a train every 15 minutes to every 5.6 minutes.

Regional Rail To 30th Street

SERVICE FREQUENCY

Before Transit Intervention

Regional Rail To 30th Street 6 am

7 am

8 am

9 am

7 am

8 am

9 am

After Wayne Junction Train Station

6 am

Residents of the area around Wayne Junction have Junction beenWayne making decisions about which mode to take Train Station based on cost and convenience. As a result, private vehicles and the bus are both popular options. The Regional Rail is used by only a small percentage of the population, however, with new policies, it could be cost competitive, convenient, and provide economic, environmental, and social benefits to the surrounding area and the city at large. To support these goals, several changes could be implemented to form a TOD Impact Zone. A TOD Impact Zone is a new designation which is analogous to a free fare zone found in downtown areas in cities including Denver and Seattle. Utilized in a neighborhood context, this TOD Impact Zone will provide transit improvements as a catalyst for development. Wayne Junction could be the first of these zones but this designation could be used for TODs throughout the city. To make the station area both a node and a place, the Regional Rail system will have to restructure transportation incentives. These would include strengthening and integrating all modes around the station area and simultaneous making Regional 36

A 1/4 and 1/2 mile radius around the Wayne Junction Regional Rail stop

TRANSPORTATION INTERVENTION

Rail more attractive to area residents and the city at large. To make Regional Rail more attractive, there will need to be increases in service and decreases in fare. Decreasing the fares on Regional Rail will make the service more desirable to area residents as well as making the area a destination. To make the fare competitive with other inner city transit modes, the Wayne Junction stop will have to cost two dollars or the same price of the token, and be a free transfer point so transit riders can easily switch from the Regional Rail to the bus. This will make the Regional Rail stop cheaper and accessible from a large number of origins. These changes will effectively increase the volume of people traveling through the station area and potentially providing more customers to SEPTA. Though Wayne Junction occupies a unique position on the trunk where a number of lines converge, a train only stops every 15 minutes. However, if every train that passed through Wayne Junction stopped there, wait time could be decreased to 5.5 minutes, effectively tripling service. Since people are more frustrated by wait time than in vehicle time, this will provide inordinate benefits to users of the Wayne Junction station area without inordinately impacting other riders. Finally, having more trains stopping there will help handle some of the increases in passengers using the Regional Rail to access other points along the network and make the station more desirable. To make Regional Rail more convenient, it is important to also have good multi-modal integration to accommodate a variety of trips from the regional scale down to the community level. Other transit options in the station area include walking, biking, and bus trips. Throughout the community, pedestrian access will be improved through complete sidewalks, pedestrian bump outs at intersections, and the integration of a street tree network to provide shade. The station area will also feature a complete bike network with lanes on all the roadways. On Wayne there will be a separated bike lane for all levels of

Pedestrian bump outs shorten the crossing distance at the intersections of Windrihm and Germantown

The bike network and bike parking at the train station

The bus hub on Windrihm where the 23, 53, and 75 all come together and stop

TRANSPORTATION INTERVENTIONS Street Section - Windrim Ave.

1 unit = .25cm Wayne Ave

10’ Ped

8‘ Parking

5’ Bike

9’ Lane

5’ Bike

8’ Parking

10’ Ped

Street Section - Wayne Ave.

10’ Ped

5’ 5’ 8‘ Bike Bioswale Parking

11’ Lane

users, around the station area there are divided bike lanes, and on the smaller collector streets are sharrows. At the intersections, bike boxes will allow cyclists to safely make left turns and avoid conflict with autos turning right. Protected bike parking is provided in the station area to encourage people to park and ride other forms of transit and also to use bikes to access the amenities in the station area. On Windrihm, there will be a new bus hub. By rerouting the 23 and 53 to pass through the same 38

11’ Lane

8’ Parking

5’ Bike

10’ Ped

station area as the 75, there will be a new place to wait for the bus supported by the surrounding amenities of the market stalls. In addition, there will be a new sign notifying users when the next bus is coming. Finally, the station area and surrounding development will employ progressive parking policies. There will be no free parking in the station area. The grocery store will have free parking

TRANSPORTATION INTERVENTION

Modal Share Impact

Before TRANSIT

After TRANSIT

3,680

AUTO

5,235

AUTO

4,045

5,703 Total Transit Projection for New Residents

Total Transit Projection for New Residents

Assumes all residents ride regional rail

through a validating system for customers and limited progressively priced parking for area visitors and transit users. Within the new residential developments, there will be .33 parking spaces per unit. These low ratios are in response to a variety of Philadelphia and Wayne Junction specific factors. Traditional projections for trip generation and car ownership tend to over predict car usage when they are based on suburban context. Currently, 48% of residents do not use the car to get to work and since the new developments are going to be all within a Âź mile of the station and with some directly across the street and a new package of amenities including a grocery store in the area, additional parking

= 10 regional rail riders

adds unnecessary cost to the development. Finally, through a car sharing service such as city car share, residents will have access to cars should they need them. Assuming that the existing mode split held true for new residents, SEPTA ridership at Wayne Junction would increase from the existing 640 riders to 1,005 riders. Though there is no way to predict without more sophisticated models, with all the transit and station area improvements, it is expected that the split would be even higher and that there would be some existing residents that became new transit riders. 39

TRANSPORTATION INTERVENTIONS- RENEWABLE ENERGY

Wind Generation Potential and Total Substation Load at Wayne Junction

29 MW

15 MW

Wind Potential

Existing Load

Diagram of potential sites for wind along the train tracks and in the vicinity of the substation.

With much of the investment in the station area headed to the substation, wind could be used to repower the station area forming an iconic gateway as people arrive at Wayne Junction and providing SEPTA with ongoing energy price reliability. Initial projections suggest that in the lands around the station 15MW of energy could be generated annually. In just 7 years, this project would pay back. In addition, the use of wind power as compared to the traditional energy mix in Philadelphia would reduce annual greenhouse gas emissions by roughly 28,000 tons.

DEVELOPMENT STRATEGY - PHASING

Phase I

By delivering a significant amount of affordable units along with the station renovation and improved public spaces, the station area will become a more attractive investment opportunity for developers and businesses. Phasing affordable housing first â&#x20AC;&#x201C; which typically has very fast leaseup periods and high occupancy â&#x20AC;&#x201C; will also ensure a large enough increase in density to support new early phase retail, like a co-op grocery and small in-line tenants. Coordination of land acquisition and development for this phase may be the most challenging because of the realignment of Roberts Ave and the irregular existing parcel lines. The success of Phase I will depend on a creative and cooperative approach to land assembly and development partnerships among the City, affordable housing builders and a grocery store/ retail developer.

PHASE I Res (Market Rate) Res (Affordable) Retail Commercial Parking Flex Industrial Public Realm TOTAL

Units/Size 202 46,970 SF 5,943 SF 85 -

Cost $35.7M $7.2M $1.3M $1.8M $3.3M $53.9M

DEVELOPMENT STRATEGY - PHASING

Phase II

Once the first phase of public interventions, housing and retail are complete, the second phase will focus on those elements that create a more distinct sense of Wayne Junction as a local destination. These include the renovation of lofts on Berkley Street, the repurposing of select buildings on the Wayne Mills campus, and the construction of a public park with amphitheater, programmed rail cars and fountain. As with Phase I, public sector assistance in assembling properties along Berkley St would ensure a more cohesive and timely redevelopment process. On the other side of the street, Wayne Mills owns nearly the entire square block on which they operate, making it easier to coordinate and control renovations, new retail tenants and semi-private space improvements. 42

PHASE II Res (Market Rate) Res (Affordable) Retail Commercial Parking Flex Industrial Public Realm TOTAL

Units/Size 76 31,152 SF 26,468 SF

Cost $13.8M $7.0M $3.8M $3.3M $27.9M

DEVELOPMENT STRATEGY - PHASING

Phase III

The third and final phase will benefit from improved market conditions that allow for new market rate housing and larger retail tenants like Walgreens and a state store. By then, the addition of approximately 1,000 local residents will have increased density and pedestrian flow around the station enough to support new head house retail stalls along Windrim Ave. The third phase is perhaps the easiest to implement from the perspective of land assembly. Of the three areas to be redeveloped, each is controlled by a single owner, two of which are commercial entities (Comcast and Extra Space Storage).

PHASE III Res (Market Rate) Res (Affordable) Retail Commercial Parking Flex Industrial Public Realm TOTAL

Units/Size 200 65 16,570 SF -

Cost $36.4M $11.5M $2.5M $3.3 $55.3M

IMPACT

By strategically phasing development, Wayne Junction will leverage affordable housing, infrastructure and transit investments to then generate the maximum potential private development. The impact of these public and private expenditures is measured in several ways. In addition to increased transit ridership, a more balanced commuter mode split, and energy generation from new wind infrastructure described above, the fiscal benefits help justify the initial development outlays, abatements and subsidies. Without major station improvements, streetscaping, and new public spaces, privately financed construction would continue to be unattractive to developers, so the returns on one-time investments are significant and necessary. The following section also measures the fiscal benefits to the City of Philadelphia. By providing minimal additional annual services, the City can expect property, sales, wage and other tax revenues that far exceed the net new expenses. Finally, there will undoubtedly be a positive impact on the neighborhoods around Wayne Junction that will provide retail and leisure amenities, make the area more pedestrian friendly, and create a strong sense of place.

COST ESTIMATES Estimated Developmetn Costs Private Investment

Residential (Market rate) Residential (Affordable) Retail Commercial Flex Industrial Parking

$41,300,000 $41,600,000 $17,500,000 $15,400,000 $3,800,000 $1,800,000 Public Investment

Wayne Junction Renovation Passive/Pocket Parks New/Realigned Streets Rain Gardens Streetscaping

Private

The following table illustrates the estimated development costs for each element of the proposed program, broken down by land, construction and soft costs (architecture, engineering, etc). Construction costs reflect the latest available estimates from RSMeans for each product type and size. While the data used may be accurate for 2011, these estimates can fluctuate over time as material and labor costs shift. Nonetheless, this represents the best approximation of the actual build out cost of the proposed program. In order to generate sufficient returns for investors and secure reasonable debt financing terms, each element requires public subsidy, either in the form of tax credits, soft second and low-cost loans,

$50,000,000

$1,300,000 $1,100,000 $1,100,000 $700,000

grants or some combination of these. Over 75% of the subsidy is allocated to new affordable housing as low-income housing tax credits. Conservative financing, land costs and rents ensure that the total private and public costs are not understated. Public

In addition to the public subsidies (tax credits, grants, etc) to make private development possible, this proposal also calls for investments in the public environment around the station. The new parks, street furniture, trees, and re-aligned roads carry a price tag of approximately $10 million, to be phased over time, complimentary to private development. Assuming that build out of the proposed development would take 15-20 years, this public outlay could be spread out at an average of only $500,000 per year.

FISCAL IMPACT

Assuming the level of subsidy for each element described in the Cost Estimates section, the following returns could be generated by each proposed use: Returns on the public investments required can be measured several ways. First, the one-time capital investments in the station and public spaces are expected to strengthen the real estate market area around Wayne Junction. While it may be impossible to isolate the precise effect of these public improvements on private investments, it is reasonable to assume that much of the early phase development and associated tax revenue would not occur without contributions from SEPTA and City departments (streets, parks, planning, etc). Returns can also be measured in increased transit ridership. By adding 1,000 new residents to the Wayne Junction station area, SEPTA can expect to gain several hundred new daily riders assuming the modal split remains constant. The majority of tax revenues generated from new development in a primarily residential TOD will come from property taxes which are abated as-of-right in Philadelphia on improvements for ten years after a building is placed (or re-placed) in service. Although the 10-year tax abatement significantly reduces the short-term tax revenue benefits, as these abatements expire, the net fiscal impact will be greater in the long-term. Despite uncertainty of the timing of development, the following summary of fiscal impacts establishes a baseline estimate (in nominal dollars) for both the short-term annual impact without new property tax revenue, as well as the long-term impact after abatements have expired. Other tax revenue sources include wage, business, sales and parking taxes. These are based on total proposed development size and estimates of sales per square foot and operating expenses. The current Philadelphia tax rates are applied to each category to estimate the gross tax revenues generated from Wayne Junction at full build out.

SUMMARY Revenue (w/ Tax Abatement) Residential Commercial TOTAL REVENUE

$ $ $

1,000,000 300,000 1,300,000

Revenue (w/o Tax Abatement) Residential Commercial TOTAL REVENUE

$ $ $

2,700,000 1,200,000 3,900,000

Expenses Municipal Services Maintenance TOTAL EXPENSES

$ $ $

500,000 500,000 1,000,000

(w/ Tax Abatement) TOTAL NET FISCAL IMPACT

300,000

(w/o Tax Abatement) TOTAL NET FISCAL IMPACT

2,900,000

CONCLUSION The implementation of the neighborhood transit oriented development plan at Wayne Junction will be an example of how transit oriented development can serve to revitalize Philadelphia by leveraging the strengths of existing infrastructure and form new partnerships with developers. The station area is an exciting opportunity to catalyze positive change for surrounding neighborhoods so they can be appropriately integrated into transit areas.

These neighborhood nodes of transit and development will attract new residents and bring a range of amenities to existing neighborhoods, activating spaces to provide Philadelphia with a vibrant future. Philadelphia has the potential to turn transit stations within their neighborhoods, both on the trunk and along the branch, into nodes of activity that encourage an increase in transit ridership and real estate development, and we have presented Wayne Junction as a model for those stations.

IMAGE CITATIONS

INTRODUCTION TO WAYNE JUNCTION Wayne Junction

Ariane Burwell

Windrim Avenues

Erich Paul Bilal

Loudon Mansion

Ariane Burwell

Site Plan

Jillian Nameth

AREA ANALYSIS All Photos

Ariane Burwell & Jillian Nameth

HISTORY Wayne Junction Station Photos

Existing Railroad Stations in Philadelphia County, Pennsylvania. http://www.west2k.com/papix/waynejunction.jpg

PREVIOUS PLANS Windrim Rendering

Germantown and Nicetown Transit-Oriented Plan. Philadelphia City Planning Commission. 2009

Potential Historic District Designation

Germantown and Nicetown Transit-Oriented Plan. Philadelphia City Planning Commission. 2009

Proposed Apartments along Windrim

Nicetown Plan. Philadelphia City Planning Commission. http:// www.philaplanning.org/plans/areaplans/NicetownRAP.pdf

PRINCIPLES AND VISIONS

SEPTA Bus

http://upload.wikimedia.org/wikipedia/commons/thumb/1/1c/ SEPTA_New_Flyer_DE40LF_5606H.jpg/800px-SEPTA_New_Flyer_ DE40LF_5606H.jpg

Evanston, IL

http://farm4.static.flickr.com/3416/3547978170_a3b38ebe76_o. jpg

Mayor Nutter on Bicycle

http://lh4.ggpht.com/_JxQOEWrH4SM/S__QCjy6jNI/ AAAAAAAAAng/hBTCX3R-Lo0/MayorNutterBikeToWork2010. JPGok, ill take what ever

Compost Bin

http://www.flickr.com/photos/eskepe/4932721837/

Adaptive Reuse

http://www.fritzhaeg.com/webpic/gl-pic/gl-ae-pic/prototypes/07utrecht/ae06-postcard-butterfly-a.jpg

Urban Garden

http://bic.org/who-we-are/interns-bic-blog/topic_images/Urbanfarm-brooklyn-4.JPG

IMAGE CITATION

PROGRAM American Historic Tobacco District

http://www.flickr.com/photos/mrjincks/3806911710/

Philadelphia Rowhomes (Juniper St.)

Google StreetView

Eastern Market

http://www.flickr.com/photos/sarahanddennis/4984567441/

Cine Movie Theatre

http://www.athenscine.com/cine_ext2_.jpg

Memphis Walgreens

http://4.bp.blogspot.com/_SYIwwsvNixM/R8LhWLgzIiI/AAAAAAAACOc/Dtpc9aLXM_o/s320/ Memphis+downtown+Walgreens.JPG

Carruth, Boston

http://cache.boston.com/bonzai-fba/Globe_Photo/2008/05/11/1210518771_7324.jpg

URBAN DESIGN Windrim Ave. Before

Ariane Burwell

Wayne Ave. Before

http://www.flickr.com/photos/alankin/5045514398/

Roberts Ave. Before

Ariane Burwell

TRANSPORTATION INTERVENTIONS SEPTA Regional Rail

Ariane Burwell

DATA SOURCES US Decennial Census, 1990 US Decennial Census, 2000 ACS 2005-2009 Estimates Social Explorer, 2010 TRF Policy Map, 2010 US Bureau of Labor Statistics, Consumer Expenditure Survey US Census Bureau, Longitudinal Employer-Household Dynamics, 2008 City of Philadelphia, Annual Budget, 2010 School District of Philadelphia, Annual Budget, 2010 ULI Dollars and Sense Shopping Center Report, 2007 Philadelphia Office of Property Assessment ESRI Business Analyst Real Capital Analytics RS Means Construction Cost Estimator Delaware Waterfrton

MARKET EAST TOD

Area Analysis

Transit oriented development refers to a â&#x20AC;&#x153;pattern of dense, diverse, pedestrian-friendly land uses near transit nodes that, under the right conditions, translate to higher ridershipâ&#x20AC;? (TCRP 112, 2004). While the Market East Station area has pockets of dense development, a large number of transit users on multiple modes, and a central city location, it does not fulfill this definition because it lacks a diversity of land uses and a pedestrian-friendly public realm. Through the development of the right type of uses, Market East Station and the surrounding area can maximize Market Eastâ&#x20AC;&#x2122;s assets and capture the economic value of its existing population.

Existing Conditions

TOD would serve a variety of purposes, but mainly, it would be designed to serve as the catalyst for redeveloping a currently underutilized area that is ripe with opportunities for future growth. This report will provide an outline of the existing conditions found in the district, as well as a conclusion highlighting the strengths, weaknesses, opportunities, and threats observed in the area. Finally, this report will serve as the foundation upon which our ultimate TOD proposal(s) will be grounded. The Market Street East district – bounded to the West by Broad Street, to the North by Arch Street, to the East by 6th Street, and to the South by Walnut Street – serves as one of Center City’s most visible commercial corridors, as well as a nexus for some of Philadelphia’s most important institutions, such as Thomas Jefferson Hospital and the Pennsylvania Convention Center. The district is also adjacent to some of the city’s most vibrant and historical neighborhoods, such as Chinatown and Washington Square, as well as a handful of Philadelphia’s proudest cultural and government institutions, like Independence Mall, Reading Terminal Market, and City Hall. Historically, Philadelphia’s Market Street East district has served as one of the city’s busiest retail destinations. The former home of various major department stores such as Lit Brothers, Strawbridge & Clothier, Snellenburgs, and John Wanamaker as well as the world famous Reading Terminal Market. The Market Street East district has a proud history of providing options to city residents. However, today, most of the major department stores have been replaced by discount retail and the Gallery Mall, which includes as its anchor tenants K-Mart and Burlington Coat Factory. Needless to say, the spectrum of shopping opportunities has changed over the decades. Physical Context At the heart of this collection of diverse retail opportunities, rich civic institutions, innovative medical facilities, and colorful neighborhoods is a complex network of multiple transportation modes, including regional rail services, trolley and subway lines, bus routes, bike lanes, access to nearby highways, and ample parking. City residents, both near and far, have the benefit of accessing the district through a half-dozen different transportation options, making Market Street East one of the most accessible locations in Center City. Ultimately, the combination of attractive amenities and a robust transportation infrastructure suggests that the Market Street East district would be a prime location for the implementation of Transit Oriented Development (TOD).

Regional Location

.25 Mile / .5 Mile Walking Radius

Transit Connections

Market Street is a heavily used main thoroughfare that provides a variety of different transportation options. Market Street is less than five blocks from the Vine Street Expressway (I-676), which provides convenient access to both the Schuylkill Expressway (I-76) and I-95, which connects Philadelphia with the Northeast corridor. Because of its central location in the CBD, the site is also served by numerous SEPTA bus connections on both Market and Chestnut Streets. There is a Greyhound bus depot located at 10th and Filbert Street, connecting passengers to the rest of the Northeast. Rail and light rail connections also exist within the subject area. The Market East Station is the main transportation node in the area, providing SEPTA regional rail access, as well as connectivity to PATCO (trains to New Jersey) and Amtrak services at 30th Street Station. In addition, at the Northeast corner of 8th and Market Streets is a SEPTA station for the Market Frankford line, connecting the subject area with points West and Northeast. Finally, the subject site is only ten miles from the Philadelphia International Airport. One of the largest concern is the lack of a Market East entrance on Market St.

SEPTA Regional Rail, Subway, Trolley, and PATCO

Bike Lanes

A number of bike lanes begin and end within the site however as a system they are not effective because they are not connected between and through areas. The city recently announced plans for bike lanes along 10th and 13th streets to help with this problem.

Parking Lot Locations Scaled by # of Spaces

Parking

The Market Street East district provides ample structured and surface parking lots, most of which serve nearby office tenants, tourists, and shoppers. Within the district, there are approximately 7,902 parking spaces in more than twenty parking facilities, comparable to the amount of parking at Oâ&#x20AC;&#x2122;Hare International Airport. Zoning

The study area is located in a C5 zoned district -the highest level of commercial density in Philadelphia. It allows mixeduse development, including commercials, residential, hotel, and entertainment. Buildings in the C5 district may have a 200% Floor Area Ratio (FAR) and heights up to 700 ft. The City is in the process of updating its zoning code, but it does not anticipate zoning changes to the subject area. 54

Market East is located in a C5 Zoned District. C5 designation

Gallery Mall & Market East Station

There is an incredible amount of activity in and out of Market East station and the Gallery Mall during the morning and afternoon as well as during the day (60,000 people pass through the Gallery Mall daily), however it tapers off after 9 pm. In some ways, the Station is the life blood of the area. It is the central hub of activity bringing people in and or taking them where they are going. Market East is an extensive underground network at this site and near City Hall. It is at the convergence of many different transportation networks and provides access to the Gallery Mall. Generally the underground ares are well maintained, well lit, and active however there are a number of entrances that could be cleaned and improved to more clearly show access. A major challenge for any proposed renovation is the complex ownership structure between PREIT, Vornado, City of Philadelphia, and SEPTA. When the Gallery closes at 9pm, do does the connecting hallway between Market East station and SEPTA, even when trains continue to run. Despite the proximity to multiple transit options, the plethora of amenities, including a handful of large employment centers and a robust selection of retail opportunities, the district simply has very few local inhabitants. Only 2411 people live in Market East. Much of the commercial activity in the district is buoyed by denser surrounding neighborhoods such as Washington West, Old City, and beyond; however, the high level of commercialism seems to have dissuaded residents from locating within two blocks of Market Street. One of the key missing components of the Market Street East district, especially if it is to be transformed into a TOD destination, is substantial residential housing options.

The Entrance to market East

The Outside of the Gallery Mall

Underground Concourse Area

Center District (4)

Urban Design

The Market East District has a variety of architecture and design in its built environment. Market Street has well-design streetscaping, though the districtâ&#x20AC;&#x2122;s public realm is inconsistent in its attractiveness as a welcoming pedestrian-friendly place. Altogether, the urban design of Market East can be deduced to five points. Unattractive and Difficult to Find Entrances

The Market East Station entrances are often difficult to find and unattractive in appearance. Many entrances are located on side streets or inside the Gallery Mall. The station seems to be hiding from the public realm when, as the transit node of the district, it should be an easily accessed and celebrated hub.

Entrances to Market East Station are unattractive and difficult to find.

The Gallery Ignores The Street

The Gallery Mall is one of the retail anchors of Market East, but as an indoor mall the building aces inward while its exterior walls ignore the street. By turning its back to one of the busiest streets in Philadelphia the Gallery Mall not only misses the opportunity to capture a wider retail net, but its lank street walls hurt the quality of the public realm.

Large, Low-Rise Buildings in Urban Core

There are several large, low-rise buildings in Market East, most of which will not be able to accommodate the mixed-use amenities that support a successful high-density TOD. Most of these house in-line retail along Market Street, a prime location for higher-density development.

The exterior of the Gallery mall ignores the street.

Low-rise retail buildings do not meet the potential for a dense, urban core.

Overpasses Are Dark And Inhospitable

The Gallery Mall has a number of sky-bridges that connect the second and third floors of the mall. The skybridges cross 9th Street and 10th Street. Although they provide convenient pedestrian access between buildings, the skybridges create dark and inhospitable environments for pedestrians on the street. Urban Street Wall and City Hall View

Market Street is one of the prime corridors for Philadelphia. Its consistent street wall frames a view of City Hall. Market Streetâ&#x20AC;&#x2122;s viewshed should be preserved and sustains in future development.

They Gallery Map skybridges create inhospitable environments for pedestrians on the street.

Market Street has a street wall whose view shed frames iconic City Hall.

Landmarks & Amenities Map of Landmarks and Local Amenities.

The Gallery

Opened in 1977, The Gallery at Market East is a 1.1 million square foot urban mall, prominently located in the heart of the Market Street East district. More than 40,000 people enter The Gallery each day for its 180 stores and food court, all accessible through one of the city’s busiest transportation hubs, SEPTA’s Market Street East rail station. The mall’s anchor tenants are K-Mart and Burlington Coat Factory. (5) Convention Center

One of the largest convention centers in the Northeast with more than 1.3 million square feet of space, the Convention Center is currently undergoing an expansion that will add 1 million square feet of saleable space and re-orient the main entrance of the building to Broad Street. The expansion is expected to bring more than 280,000 additional room nights and more than $140 million in economic impact annually. Moreover, the expansion has helped create the need for 2,000 additional hospitality-related jobs equaling more than $150 million in economic impact. (6) The convention center also helps support a robust hospitality industry in the surrounding region, with more than twenty five hotels within a fifteen minute walk of the center. (7)

The Gallery

Thomas Jefferson Hospital & University Established in 1825, the Hospitals now have 957 licensed acute care beds, with major programs in a wide range of clinical specialties. Services are provided at five locations, the largest of which are the main hospital facility and Jefferson Hospital for Neuroscience, both in Center City. Thomas Jefferson University Hospitals, an academic medical center within the Jefferson Health System, serves patients in Philadelphia and the surrounding communities in the Delaware Valley. As of July 2010, the number of annual admissions is approximately 45,000, with more than 450,000 outpatient visits and 108,000 emergency room visits. The hospital system employs more than 6,200 personnel. (8) Washington Square West Neighborhood

Washington Square West is a colorful neighborhood between 7th and Broad Streets and between Walnut and South Streets. It is a relatively desirable residential community that offers a diverse array of shops, restaurants, and coffee houses. The area takes its name from Washington Square, a historic urban park in the northeastern corner of the neighborhood. Philadelphia’s Antique Row lies in the area as does the nation’s oldest hospital. Educational and medical facilities associated with Thomas Jefferson Hospital & University are also located within the neighborhood. The neighborhood’s real estate is characterized by two, three, and four-story townhouses interspersed with condominiums, mid-rise apartments, and offices with ground-floor retail. Reading Terminal Market

Reading Terminal Market is an enclosed public market located at 12th and Arch Streets. Over 80 merchants, including representatives from the Pennsylvania Dutch community, offer fresh produce, meats, fish, groceries, ice cream, flowers, baked goods, crafts, books, clothing, and specialty and ethnic foods. Although in operation since 1893, the market has been housed in the former terminal of the Reading Railroad since the 1980s. It caters both to locals as well as tourists, and is a unique place that is full of life. There is always

activity inside as people grab a quick lunch or shop. Unfortunately, the life inside doesn’t extend to the street. More importantly, the entrance is uninviting, dark, dirty, and tucked away from the rest of the place.(9) Market Street Shopping

In addition to Reading Terminal Market and The Gallery, Market Street also hosts a variety of streetlevel retailers, including Foot Locker, Modell’s Sporting Goods, FedEx, Starbucks, Stereo Sound, Walgreens, Rite Aid, Payless Shoes, Ross Dress for Less, and many others. It also provides numerous fast-food and middle-range dining establishments. Chinatown Neighborhood

Chinatown is a neighborhood of roughly 1,000 inhabitants mainly of East Asian descent. It is a colorful, vibrant neighborhood with a host of authentic Asian dining and shopping options. The Chinatown Friendship Gate, located at 10th and Arch Street, is an internationally known landmark and a symbol of cultural exchange and friendship between Philadelphia and its Sister City, Tianjin, China. (10)

Market Street Shopping

Chinatown Entrance on 10th Street

Residential Market Assessment Percent Decline from Market Peak, Q2 2010 Philadelphia has retained residential values better than all but one major city.

-9%

Las Vegas

Phoenix

Miami

Detroit

Tampa

Los Angeles

San Francisco

-24%

Although the Market Street East submarket has little residential development, that which is found in the district exemplifies a wide variety of -27% -28% -28% multifamily property types, including high-rise and -35% -35% -36% mid-rise apartment buildings, as well as brownstone -42% apartments, and very few owner-occupied -46% -48% dwellings. The most notable recent addition to the -51% area has been the 45-story, 415,000 square foot,-56% St. James luxury residential skyscraper, located two blocks south of Market Street on Washington Square. The St. James provides rental units, as well as some office and retail space. The building was built in 2004 and commands rents of between $1,400 and $7,000 per month. (13) San Diego

Atlanta

New York

Portland

Boston

Cleveland

Charlotte

Denver

Philadelphia

Dallas

-14% -14% -15% Philadelphia residential values have actually fared -20 -21%While -21% -21% relatively well during the recent recession. the national apartment vacancy rate came in at -30 7.8% in second quarter 2010, the overall vacancy rate for -40 the Philadelphia metropolitan area stood at 4.2%, down from 6.9% at the midpoint last year. Rents-50across the metro area rose 3.8% compared with second quarter 2009. In Center City, the -60 vacancy rate dropped to 1.9% from 7.6% at the same point last year, and rents increased by 7.4% to an average of $1,918 or $1.88 per square foot. (12). There has been a significant lull in residential development in Center City since 2009, as the chart Source: Case Shiller & Econsult, 2010 below illustrates. Few, if any, of these developments have occurred in the Market Street East district.

Minneapolis

-7%

Chicago

-5%

Washington DC

-10

Seattle

Precent Decline in Housing Prices from Peak

Residential Market 0

New Center City Residential Development by Type, 1997â&#x20AC;&#x201C;October 2010 12,385 new units of housing

1,500

Developments

1,000

500

New Construction Abatement Enacted

Residential Conversion Abatement Enacted

2,000

43 38 146

51 16

1997

1998

1999

2000

2001

2002

2003

Apartment Conversions

Condo Conversions

Apartment New Construction

Condo New Construction

2004

2006

2007

2008

2009

2010

Single Family Conversions and New Construction

Source: Center City District, 2010

2005

Center City District & Central Philadelphia Development Corporation www.CenterCityPhila.org

Office

Office Market East Market Submarket

As of second quarter 2010, vacancy in the broader CBD is 10.3%, with net absorption ofSquare negative Total Feet: 85,010 square feet. Net absorption, although negative since fourth quarter 2008, has improved Class A Rent: since first quarter 2009 when netAverage absorption equaled negative 390,292 square feet.

5,532,969 $22.90 Quoted rental rates are approximately $24.77, 91.3% which reflect a slight decline from $24.87 in second Occupancy:

CHERRY ST

ARCH ST

JFK BLVD

CITY HALL City Hall

MARKET ST

CHESTNUT ST INDEPENDENCE NATIONAL HISTORICAL PARK

SANSOM ST

WALNUT ST

4TH ST

5TH ST

6TH ST

7TH ST

8TH ST

9TH ST

10TH ST

11TH ST

12TH ST

LOCUST ST

BROAD ST

The Market Street East office submarket (as defined by CoStar) is composed of 209 buildings, representing roughly 12.7 million square feet, of which only 8 buildings are Class “A”, representing 3.6 million square feet. As such, the majority of office space in the MSE submarket is Class “B” and below. Overall, the Philadelphia CBD is currently comprised of 750 office buildings, representing 61 million square feet, across all classes. There has been only one new delivery in the CBD since third quarter 2006 – the 1.2 million square foot Comcast Center in fourth quarter 2007. Obviously, there have been no new office deliveries in Market Street East.

Office Buildings (year built)

1900–1986

1987–1996

1997+

Source: Grubb & Ellis

Notable Buldings in the East Market Submarket East Market Submarket

Square Feet

Year Complete

Mellon Independence Center

640,000

1906

Sovereign Building

226,222

1920

1234 Market

665,000

1974

Aramark Tower

600,000

1983

Source: Grubb & Ellis, 2010

quarter 2009. The Market Street East submarket boasts stronger vacancy of only 9.5% and net absorption of negative 43,022 square feet, across all classes. However, rental rates for the MSE are lower than the CBD, at only $22.12. Moreover, Class “A” within the MSE submarket has vacancy of only 7.5% with positive net absorption of 18,622 square feet and rental rates of $23.37.

Center City District & Central Philadelphia Development Corporation www.CenterCityPhila.org

Although there have been notable lease signings in both the Market Street West and Independence Hall submarkets, as of second quarter 2010, there have been no new reported signings above 13,000 square feet in the Market Street East submarket. (15) The map to the right illustrates the major office buildings, and year built, within Market Street East. It is important to note that there are smaller offices available, especially between Chestnut and Walnut Streets, that provide medical offices, in support of the nearby Thomas Jefferson Hospital & University.

Retail

etail

that there may be a way to better capture this Market Street is one of four primary East-West daytime traffic to boost retail sales. corridors for retail activity in the Philadelphia Despite national weakness in the retail real estate CBD. Although it does not attract the same luxury market, Philadelphia’s broader retail market has brands or high rents as nearby Walnut Street, regional patrons of moreStreet than East provides a wealth of retail been relatively healthy, even showing signs of Market Retail Demand for Shoppers’ Goods 2010 fine-dining restaurants. Center improvement in recent quarters. As of second establishments. The Market Street East submarket y’s emergence as the third-largest quarter 2010, the direct vacancy rate for retail in is also home to The Gallery, a large urban mall with dential downtown in the United Radius from City Hall broader Philadelphia has declined from 6.6% mid180 shops, including a K-Mart and Burlington Coat tes, with an extraordinary concen5-Minute Walk 15-Minute Walk 30-Minute Walk ion of well-educated and and profesto 4.7%. Absorption totals continue to Factory, on-site raili connection, and Reading (1/4 Mile) year 2009 (1/2 Mile) (1 Mile) nally employed residents, has hover on the positive side at a total of 71,276 square Terminal Market, a large collection of local food Worker Market ated an entirely new source of feet, and they have not been negative since second andgoods, craft shops. Office Sq Ft 11,506,247 25,643,563 36,270,370 mand for household personal professional services, as well as quarter 2008. Office Workers 51,202 114,113 After dipping 161,402to $25.58 per square d and dining. Finally, Centerthere City’sare aNon-Office foot in second quarter 2009, Moreover, collection of lowto moderateWorkers 15,776 35,160 49,730the lowest rental rate e strength as a dense, compact and since 2007, rates have jumped income street-level retail establishments lining Total Workers 66,978 149,273 221,132 to $29.32 per square kable downtown provides an foot in mid-year 2010, the highest they have been Market Street, Foot Market Locker, Modell’s Residential aordinary concentration of retailincluding mand unmatchedSporting by any other part FedEx, since fourth quarter 2008. Goods, Starbucks, Stereo Sound, Owners 6,610 18,107 49,369 he region. Walgreens, Rite Aid, Renters Payless Shoes, Ross Dress for 4,872 14,080 33,300 nter City Demographics Population 32,187 to believe 82,669 that this increase in Less, and many others. The map below illustrates 11,482 There is reason Visitor Market rents has been a result of a lack of supply. There the lack of purchasing power of the district’s local ong the 159,300 residents living Hotel Rooms 3,223 7,316 8,111 has been no new retail construction added to the residents, despite density. It also shows ween Girard and Tasker Avenues is its retail eadily increasing population of in the Rittenhouse Visitors 415,542 943,254 CBD since first quarter1,005,725 2009; however, there are why retailers Square area can hly educated individuals with houseGoods Dollars of Demand currently 606,755 square feet of retail space under command higher rents - because of for theShoppers’ much higher d incomes that generate significant Workers $121,416,000in the$171,732,000 broader CBD. (16) Despite purchasing power the surrounding community.$54,479,000 construction sumer spending. In the core of the of Office Non-Office Workers $8,345,000 $26,307 ,000 wntown, more than 40% of residents these$18,599,000 encouraging signs for Philadelphia retail, k to work, whileAlthough in the nextthe ringresident Residents $22,045,000 $61,799,000 $158,724,000 evidence suggests that the Philadelphia retail has population does not possess , residents commute primarily by Visitorshigher end retail$65,683,000 $126,396,000 $134,767 ,000 west of Broad Street, been buoyed more by activity the purchasing powerOvernight to sustain lic transit. Few Center City houseTotal $150,552,000 $328,210,000 $491,530,000 particularly along Walnut Street in the Rittenhouse establishments, the Market Street East district does ds thus have more than one car, and ny have no car, indeed eliminating a large neighborhood, attract a sizable amount of daytime foot The number of office workers is derived from the amount of occupied square feet of Square office space within the defined geographies andand standardless so by activity in industry estimates of workers per square foot. All other worker numbers are based on 2006 Census data. Residential population is based on Census ual expense thattraffic, can be as devoted to below. and CCD counts of new residential units. Visitor population is extrapolated from occupied hotel room Street data from PKFEast. Consulting, as well as 2007 Market shown Albeit transient, it suggests visitor data fromTourism Economics/Longwoods International, and GPTMC. Dollars of demand for each market segment are CCD calculations based

er spending, making the residents of nter City an even more attractive rket than a casual glimpse of demophic indicators may suggest.

Center City Population: 159,300

on retail industry standards.

Center City Daytime Population:

Center City Households: 82,700

Convention Center

Center City Average Age: 39.9 years

CBD Educational Attainment: 66% with bachelor degree or higher

1600 block JFK: 1,347

1000 block Market: 2,049

1600 block Chestnut: 2,485

Center City Aggregate Income: $4.9 billion RITTENHOUSE SQUARE

1700 block Walnut: 2,247

100 block N. 10th: 1,233

1300 block Market: 2,004

LOVE PARK

CityHall Hall City

CBD Average Household Income: $74,317

this population can be added the chasing power of nearly 90,000 stuts who attend college in or adjacent Center City.

2010 Pedestrian Counts

1100 block Chestnut: 1,593 100 block South 13th: 983 200 block South Broad: 1,677

1100 block Walnut: 1,134

700 block Chestnut: 1,077 WASHINGTON SQUARE

Pedestrians were counted at each mid-block location at 15-minute intervals for three consecutive hours (11:30am–2:30pm) for five weekdays in June 2010. Reported totals are one-hour averages.

Center City District & Central Philadelphia Development Corporation www.CenterCityPhila.org

INDE H

Hotel

There are more than 30,000 hotel rooms in the greater Philadelphia region, and more than 8,000 within walking distance of Market Street East. Most of the lodging options within the MSE submarket cater to tourists visiting the attractions in Independence Mall and Old City, and business people attending events at the Philadelphia Convention Center, which is located only a few blocks from the subject area and slated to expand in March 2011. Because of the expansion, the MSE submarket is expected to add demand for between 2,000 and 2,500 new rooms by 2013. The three most prominent hotels in the MSE submarket are the 581-room Loews Philadelphia Hotel, the 1,408 room Philadelphia Marriott Downtown, and the recently built Four Points by Sheraton Philadelphia City Center. (18) It is important to note that the hospitality sector, on a national level, has been a real estate market laggard over the past few years. Still, the Convention Center expansion is expected to increase demand for hotel rooms in the MSE submarket.

Demographic Highlights

Census Tracts

Philadelphia County census tracts 1-12 and 15129 were used to gathering data for Center City. This covers, by and large, the area between Poplar Street on the north, South Street to the south and stretches from the Schuylkill River to the Delaware River. Tract 5 centers on the immediate area of the project site along Market Street and includes the area between Broad and 6th Street and Arch Street to Chestnut Street. Tract 6 adds to Tract 5 the thin swath of land between Chestnut Street and Walnut Street.

1.5 Million + conventioneers will attend conventions each year

Population

The population of Tract 5 stood at 1,126 in 2000 and Tract 5 & 6 together was 2,441. Center City had a population of 55,914. Whereas Center City has a 50/50 gender split, these two tracts show a gender imbalance with 64% male/36% female.

Transportation Mode

Just 24% of those employed in the study area drive to work, with a full 60% walking and another 15% taking public transportation. The Center City employed population shows similar percentages, with 46% walking, 21% using public transportation and a slightly higher proportion of people driving (30%). Of those taking public transit, the bus or trolley is more popular than the subway or railroad.

20 million commuters board @ the Gallery each year - 61,000 daily

4.8 million tourists visit the Historic District each year

Income

Based on 2000 Census figures, Tracts 5 & 6 exhibit lower income distribution than for the general Center City area. A full 28% of those employed make less than $10,000 (2000 dollars). The other income bands are relatively similar, though those making more than $75,000 is only 15% in the study area, while 25% of the labor force in Center City.

87,000 workers within a 1/2 mile

Employment

As of November 2010, 267,000 jobs are located downtown, providing work for nearly half of Center Cityâ&#x20AC;&#x2122;s residents. The SEPTA regional rail system carries more than 300,000 passengers into Center City each day. Center City has the capacity to provide 20% of all jobs for residents of Southwest Philadelphia, 17.4% of all jobs for residents of the Far Northeast, and 13% of all jobs for residents of Montgomery County. (20)

Industry

The three most important employment industries in the study area are, in rank order, health & education (31%), other services (excluding public service) (15%), and retail trade (14%). Health and education is also the most important industry in Center City (38%), but professional and management is second (22%), followed by both finance & insurance and arts & entertainment (9% each).

88,000 students @ 4 area universities, all within 12 minute transit ride

159,000 residents in Center City - 3rd largest in the country

Market East Realities

• Central location

Core Questions

• How can this site accommodate a larger residential population?

• Small residential population • Prime tourist destination with unmet hotel demand • Mall ignores the street

• How can this site capture tourists, shoppers, and residents?

• Multimodal system with weak connections

• How can our proposal balance market realities and long-term development goals?

• Small population in immediate area : Subject area Census tracts have just 2,441 residents

• Center City median and average income > than Philadelphia: $46,523 > $41,221 median and $70,026 > $51,929 average

• Highly educated, young population: Center City 58% between 20 – 35 and 66% have bachelor’s degree or higher

• How can existing structures re-engage with the public realm?

• Eds + Meds, Services drive employment: top employment sectors in study area

Visions For Market East Station

1 2 3

Market East will be a residential and mixed-use district with complementary amenities.

Market East will be a regional urban big box retail destination.

Market East will be a multimodal hub centered around regional rail with bus, subway, bike and pedestrian uses.

Market East will have a reinvigorated public realm, that connects Chinatown to Thomas Jefferson University, City Hall to Independence

Mall.Â

Initial Development Concepts Concept 1 I Residential Variety

• Remove Gallery sky bridges • Turn the Gallery inside out + ground floor retail • Transit visibility: enhance Market Street

Residential Options

Station entrance, bust station renovation • Modern City Retail: Home Depot, CVS, Market East

Nordstrom Rack, grocery store, food + bev, ground floor retail • Residential Amenities: dog park, gym, culinary school, movie theater, center median

Retail For Modern City Living

Transit Visibility

+ pedestrian refuges • Residential Options: Market-rate Housing, student Housing, Senior Housing • Hotel + Conference

Residential Gallery Conversion Student Housing Culinary School Hotel

Concept 2 I Big Box Retail & Attractions

• Remove Gallery sky bridges • Turn the Gallery inside out + ground floor retail • Big Box Retail: Best Buy, DSW Shoes, Crate

Multi-Modal Hub

& Barrel, Home Depot, Nordstrom’s Dept. Store Market East

• Tourist and Convention Attractions: Wax Museum, IMAX + Movie Theater, Reading Discovery Zone, culinary school +

Tourist Attractions

Big Box Retail

restaurant, Terminal Market expansion • 2 Hotels + Conference Centers • Multi-modal Infrastructure: bike station, two-way cycle track • New, Market-Determined Housing

Residential Gallery Conversion Attractions Hotel Cycle Track

Final Development Concept The Proposal

Our proposal presents a financially • Improves transit connections

feasible, multi-phase development plan

• Provides destination retail and amenities • Satisfies unmet hotel demand

for Market East that provides attractive

• Attracts new residents • Reorients the Gallery

short-term returns for private investors

• Reengages with the public realm

and long-term gains for the city of

• Provides a base for profitable long-term development

Philadelphia.

Rental

416 units

$55,517,456

For-Sale

128 units

$29,934,650

Student

200 units

$20,876,00

Senior

215 units

$28,434,250

Existing Retail

225,000 sf

$32,197,500

New Retail

400,670sf

$71,104,706

Hotels

2,124 rooms

$542,982,090

Cinema

16 screens

$9,158,400

Entertainment

40,000 sf

$4,470,000

Culinary School

80,000 sf

$9,900,00

Bike Station

6,000 sf

$742,000

Gym

31,800 sf

$5,159,512

Infrastructure

various

$22,000,000

Filbert

Market

Chestnut

Residential Retail Hotel

11th 10th 9th

Amenities & Attractions

Retail

Ultimately, our proposal strives to accomplish two goals pertaining to retail: first, help suburban big box retailers expand into an urban core market; and second, create a downtown retail destination, appealing to conventioneers, local graduate students, commuters, and regional and local shoppers and residents.

Retail comprises a significant portion of the proposed program. In total, the proposal is adding or renovating more than 400,000 square feet of retail space in the Market Street East area. Composed of a combination of national brand department stores, urban big box centers, and additional street-level retailers, our proposal expects new retail establishments to attract new residents as well as additional shoppers from the Greater Philadelphia area. The new retail centers will also create jobs, as well as a 24/7 urban destination along one of Philadelphiaâ&#x20AC;&#x2122;s most historic thoroughfares.

9 2 4

6 7

11th

3 8

1. Existing Underground Concourse 2. Market Street Entrance 3. Gallery Mall Turned Inside Out

10th

Filbert

4. 10th St. Skybridge Removal 5. At-Grade Plaza 6. CB2 / Nordstrom Rack

9th

7. DSW / 8. Best Buy / CVS 9. Ground Floor Restaurants / Retail 10. Reading Terminal Expansion 11. Fresh Market 12. Home Depot 13. Ground Floor Retail 72

Chestnut

Market

Amenity

The goal of the amenity investments is to create locusts of activity during the day and night. The variety of infrastructure investments appeal to tourists, conventioneers, bikes, residents, and cooking enthusiasts. The five proposed amenity investments are listed below. These proposed amenity investments will serve as just one draw and in many ways can be the face of Market East, especially the IMAX theater.

11th

5 1. IMAX Theater 2. Bike Station

Filbert

10th

3. Gym 4. Wax Museum 5. Cooking School / Cookology

9th

Market

Chestnut

Residential

There are over 88,000 students (27,000 grad) at Penn, Drexel, Temple and Thomas Jefferson. These students, with their propensity to have more discretionary income for housing (when compared to other renter groups), would be drawn to the Market East neighborhood. It takes just 5 minutes to travel from Market East station to the 34th Street Station using the MFL. By pricing apartments at discounted rents to Rittenhouse Square, the development can capture a significant share of these renters. Moreover, 87,000 workers are within Â˝ a mile of the Gallery. Market East could be a destination residential community for a significant portion of these populations.

The success of Market East area will be determined in large part by the addition of a residential community. With great transit access to the city and region, the sites developed in our plan, coupled with the other retail and neighborhood amenities proposed, provide a great opportunity for the construction of many new units of market-rate and student focused housing. The proposal calls for two market rate apartment buildings, one student housing apartment building, one market rate condo building, and one senior living building. The scale of these properties has been made consistent with the buildings around it, but the parcels allow additional height should density need to be increased in subsequent phases.

1 2 3

11th

1. Market Rate Apartments 2. Market Rate Condos

Filbert

10th 5

3. Student Housing 4. Senior Housing 5. Market Rate Apartments

9th

Market

Chestnut

Hotel

Roughly 1.5 million people are expected to attend events at Philadelphiaâ&#x20AC;&#x2122;s newly expanded convention center. This increased activity creates a need for approximately 2,000 additional hotel rooms in the immediate Market East area. The plan calls for three hotel projects of various sizes and programmatic to create the type of lodging necessary to support the needs of Philadelphiaâ&#x20AC;&#x2122;s modern convention space. Our plan calls for the

development of approximately 2,200 rooms, with parcels providing flexibility (in both scale and phasing) of 1,000 additional rooms. (total meeting space will be 300,000 sf). The first property is located on the 1100 block of Market Street, the second will be built on the pads atop the Gallery along 10th Street, and the third is at the 1000 block of Filbert Street, currently occupied by the Greyhound bus station.

11th

1. Large Format Hotel 2. Hotel above the Gallery

Filbert

10th

3. Boutique Hotel 9th

Market

Chestnut

Infrastructure Improvements

12th Street

Reading Terminal is a central element of Market East, attracting over 6 million visitors a year. Despite its popularity, the surrounding urban design needs improvement. In this proposal, Reading Terminal will expand into the head house and have a presence on both sides of Filbert Street, between 11th and 12th. By removing a lane of parking and expanding the sidewalk, pedestrian connections under the sky bridge are made clearer. Traffic congestion will be alleviated through the use of a current lane of parking as a loading only zone. Trucks making deliveries will no longer need

Existing View at Reading Terminal

to stop traffic while they parallel park. Overall, this proposal creates a valued space at a major locust of activity in Market East. 10th Street Plan

The purpose of the 10th street plan is to improve pedestrian connections, create a consistent treelined streetscape, and maintain as much street parking as possible. The plan is focused on 10th street between Thomas Jefferson and Chinatown. Currently, the sidewalk width of 10th street is inconsistent. In this proposal, the parking lane will be removed and the sidewalk will be expanded to be a minimum of 12 ft.

11th Street

Reading Terminal Streetscaping

Filbert

Reading Terminal Market East Entrances

4 2 11th

3 10th

Filbert

1 9th

Market

Chestnut

1. Market Street Cycle Track 2. Market Street Station Entrance 3. 10th St. Streetscaping 4. Reading Terminal Streetscaping

Skybridge Removal

The removal of the Gallery skybridge is the final part of the 10th street plan. A representative rendering (below), looking South, shows what the area could look like without this intrusive part of the Gallery. Its removal is integral to creating a visual connection to Chinatown from Market Street, turning the Gallery inside out along 10th St, and creating a hospitable environment for pedestrians.

Market Street

10th Street

10th Street Looking South - Before

10th Street Looking South - After

Public Space Sidewalk 8’ 12’

Thru-Traffic 12’

Sidewalk 12’

Chestnut Street

Infrastructure Improvements

Cycle Track Down Market Street

The goal of the infrastructure investments is to improve bike and pedestrian connections within and through Market East while also limiting public investment wherever possible. Overall, these investments, specifically the Market East Station entrance on Market Street, will increase the visibility of the multi-modal hub that is characteristic of Market East. Cycle Track

In efforts to encourage more intermodal exchange at this transit hub, this project proposes a twoway cycle track down the middle of the Market Street. The cycle-track will be a separated two-way bike track that accommodates all levels of cyclists traveling between Pennâ&#x20AC;&#x2122;s Landing and City Hall. The track will replace one of the eastbound traffic lanes, effectively creating one thru-lane and one bus lane in each direction. Alternative bike routes were considered for the neighboring streets of Filbert and Chestnut; however both streets are one-way eastbound streets, which would therefore lack a westbound bike lane. Any over-flowing traffic from the lost East-bound Market Street lanes can filter on to the parallel streets of Filbert and Chestnut.

New Market Street Entrance

Market Street Entrance

At the center of the TOD is Market East Station, a multi-modal transit hub. Although considered the biggest asset to this project, it has a number of constraints to its use. One of the biggest complaints of transit users is that the Market East Station is often different to find. It has a number of entrances, including 11th Street, 10th Street, and Filbert Street, but it lacks an entrance on the most wellused street in the area: Market St. Creating a visible Market East Station entrance will improve wayfinding for transit users, help instill a sense of place for pedestrians on the street, and make Market East Station a more accessible hub. One of the constraints of the Market East Station is that it employs the Gallery Mall as part of its underground concourse. Unfortunately, when the Gallery Mall closes, it also closes off access between the Market East Stationâ&#x20AC;&#x2122;s Regional Rail connections and the Septa Subway routes. This disruption means that passengers have to leave the station and walk down the street before they can find a separate 78

Septa subway entrance. A possible solution to this problem would be for the proposed Market Street entrance to provide a separate corridor that remains open and accessible after the Gallery Mall closes for the evening. Accessibility between transit modes is important to keep transit ridership convenient.

A new Market Street entrance to the Market East Station will improve accessibility options for pedestrians.

Market Street Looking East - After

Market Street Looking East - Before

Implementation & Execution

Square Footage by Program Type

Build Out Summary

Amenity 244,800 SF

Total Cost:

Total Build Out:

$995 million

Hotel 1,595,200 SF

Parking 316,800 SF

3,551,510 SF Retail 567,750 SF

Residential 826,960 SF

Private Investments Highlights

Public Investments Highlights

Equity Commitment: $299 million

$22 million in public investment

NPV (@10%): $388 million

$100+ million in tax benefit over 15 years

IRR: 23%

Total Cost

Developer Equity

Public Funds

Phase 1

Total Build Out: Total Cost:

1,493,650 SF $364 million Phase 1: Cost by Program Type

• • • • • • • • • • • • •

Improves transit connections Nordstrom Rack DSW Gallery Renovations CB2 IMAX Wax Museum Fresh Market Gym For-Sale Housing Rental Housing Hotel Parking

Wax Museum

Gym

IMAX

Parking

Hotel

Multi-Fam. Rental

Existing Retail

New Retail Condos

Station Entrance Residential Retail Attractions Hotel Open Space / Cycle Track

21 20

19 20

18 20

17 20

16 20

15 20

14 20

13 20

12 20

11 20

Phase 2

Total Build Out: 1,078,000 SF Total Cost: $187 million

Phase 2: Cost by Program Type Bike Station Culinary School

• • • • • • • • •

Senior Housing Student Housing Best Buy CVS Culinary School Bike Station Boutique Hotel Parking Reading Terminal Market Expansion

Senior Rental Housing

Hotel

Student Rental Housing

Parking

Residential Retail Attractions Hotel Open Space / Cycle Track

2 20

21 20

19 20

18 20

17 20

16 20

15 20

14 20

13 20

12 20

11 20

Phase 3

Total Build Out: Total Cost:

1,493,650 SF $364 million

Phase 3: Costs by Program Type Parking New Retail

• Home Depot Components

• Hotel • Rental Housing • Street Level Retail Multi-Fam. Rental

Hotel

Residential Retail Hotel

19 20

18 20

17 20

16 20

15 20

14 20

13 20

12 20

11 20

Phase 1: Detail

The Gallery PRIVATE INVESTMENT: NOI (2015): $5.5 million NPV (@10%): $110,000 IRR (Leveraged): 10% Commercial Rents: $35 PSF Construction Cost: 49.8 million Cost PSF: $171 PSF Street-facing retail: 160,000 SF IMAX Theater: 66,000 SF 16 screens Wax Museum: 60,000 SF PUBLIC INVESTMENT: Construction Cost: Cost PSF: New MSE Entrance: Plaza:

$8.2 million $181 PSF 40,000 SF 5,000 SF

Mall Conversion - Presidential Towers, Chicago (21)

Strawbridge Building

NOI (2014): NPV (@10%): IRR (Leveraged):

$1.1 million $1.5 million 16%

Commercial Rent:

$35 PSF

Construction Cost: Cost PSF:

$6.7 million $135 PSF

The Fresh Market:

50,000 SF

1000 Market St.

DSW

DSW, a leading U.S. specialty branded footwear retailer, operates stores in 39 states, offering a wide selection of brand name and designer dress, casual, and athletic footwear for women and men. Their core focus is to create a distinctive store experience that satisfies both the rational and emotional shopping needs of their customers by offering them a vast, exciting selection of in-season styles combined with the convenience and value they desire. DSW allows customers to personalize their shopping experience by offering a “sea of shoes” that are accessible, easy-to- shop, and fulfill a broad range of style and fashion desires. Typical DSW stores are approximately 25,000 square feet, with over 85% of total square footage used as selling space. Over 30,000 pairs of shoes in more than 2,000 styles are displayed on the selling floor of most DSW stores, compared to a significantly smaller product offering at typical department stores. DSW stores feature self-service fixtures that allow customers to view, touch, and try on the product without relying on salespeople to check availability. DSW locations have clear signage, and well-trained sales associates are available to assist customers as desired. New footwear merchandise is organized by style on the main floor, and clearance goods are organized by size in the rear of the store. The store layout allows customers who do not have time for relaxed browsing to swiftly identify the shoe styles they are seeking and shop in a targeted, time-efficient manner. DSW, like Nordstrom Rack, appeals to both market rate and discount shoppers. On the second floor, above Nordstrom Rack, of the proposed mixeduse building on the southeast corner of 11th and Market Streets, DSW will cater to the nearby conventioneers, as well as local and regional shoppers, as well as local graduate students attending one of Philadelphia’s major universities.

1000 Market St. will have a DSW, CB@, and Nordstrom Rack.

NOI (2015): NPV (@10%): IRR (Leveraged):

$6.4 million $4.1 million 12%

Commercial Rents: Housing Rents: Condo Sale Price:

$30-35 PSF $2.24 PSF/mo $375 PSF

Construction Cost: Cost PSF:

$94.7 million $182 PSF

Nordstrom Rack: 38,500 SF DSW: 38,500 SF CB2: 31,800 SF Gym: 31,800 SF Multifamily Rental: 156,800 SF 160 units Condominiums: 160,400 SF 128 units Parking: 208 spaces

1000 Market St.

CB2

CB2 is a modern destination from Crate and Barrel that first opened in Chicago in the year 2000. CB2 offers affordable modern furniture and accessories for the apartment, loft, or home. It is a subdivision of Crate & Barrel, geared towards young adults, which is owned by Euromarket Designs, and majority-owned by Otto GmbH.

Nordstrom Rack

Nordstrom Rack, the off-price division of Nordstrom, Inc., first opened in the basement of the Downtown Seattle store in 1972 as a clearance department. Since that time, it has grown into its own division. Currently there are 86 Nordstrom Rack locations in 28 states. Nordstrom Rack carries merchandise from Nordstrom stores and Nordstrom.com at 50-60% off original Nordstrom prices. Nordstrom Rack offers petite and plus sizes in selected stores, as well as a broad range of accessories, bath and beauty products, and home accents. Nordstrom Rack also provides in-store alterations and tailoring. As mentioned above, Market Street East has a history of being the department store center for Philadelphia, and the proposal to add Nordstrom Rack at the corner of 11th and Market Streets

would attempt to restore this tradition. Located across from The Gallery and a proposed, fullservice, convention-center hotel, Nordstrom Rack is expected to appeal to conventioneers, local and regional residents, and commuters. It will serve as one of the primary focal points of the destination retail scheme. Its bargain brands will appeal to both market-rate and discount shoppers alike. Similar to how a Nordstrom flagship store helped revitalize Pacific Place in Seattle, an urban infill project very similar in size and scope to Market Street East, Nordstrom Rack is expected to help catalyze the area as one of the premier shopping destinations in the region.

CB2 - Chicago (22)

1000 Market St.

Bike Station A new bike station will provide a safe, secure, and convenient place for bicyclists to store their bikes. This type of facility will encourage multi-modal trips: Commuters can take the train to Market East, pick up their bike from the bike station, and cycle to their office any number of blocks away. The Bike Station may offer a number of services, including secure bicycle parking, personal lockers, showers, bike rentals, and a bike repair shop. Membership dues and daily fees can cover the operating costs. The station may also be developed in tandem with a Philadelphia Bike Share program, or in conjunction with the proposed Gym within the development.

The Bike Station (in blue) at the corner of Filbert St. & 11th St.

NOI (2018): NPV (@10%): IRR (Leveraged):

$95,500 $94,700 18%

Commercial Rent:

$25 PSF

Construction Cost: Cost PSF:

742,000 $124 PSF

Bike Station:

6,000 SF

Bike Station - Washington D.C. (23)

1100 Market St.

Convention Hotel

The site directly across the street from the head house and grand Market Street entrance to the Pennsylvania Convention Center will be developed as a 20-story nationally branded hotel. This project will reflect a similar concept as the Marriot at 1200 Market with double hung corridors wrapping three sides. The 72,000 sf building envelope allows for two floors of meeting space totaling approximately 150,000 sf, which meets the needs of large conference groups. The plan suggests that the hotel be operated by Hilton or Sheraton, each having the experience and brand recognition necessary to be competitive in todayâ&#x20AC;&#x2122;s marketplace. Further, the sales & marketing staffs associated with these operators are essential to a project that will cater to business and conventioneers.

NOI (2016): NPV (@10%): IRR (Leveraged):

$50.3 million $185.4 million 23%

Commercial Rents: ADR (Year 1):

$30-40 PSF $275

Construction Cost: Cost PSF:

$213 million $292 PSF

Inline Retail: 45,000 SF Hotel Conf. Space: 150,000 SF Hotel: 535,200 SF 960 rooms Parking: 384 spaces

1100 Market St. will be home to a new convention hotel.

Convention Hotel - Marriott Marquee, Washington, DC (24)

Culinary School

NOI (2018): NPV (@10%): IRR (Leveraged):

$1.2 million $395,000 12%

Commercial Rents:

$30 PSF

Construction Cost: Cost PSF:

$11.3 million $141 PSF

Culinary School:

80,000 SF

A new culinary school on Market St.

Reading Terminal market expansion NOI (2018): NPV (@10%): IRR (Leveraged):

$412,000 $330,000 16%

Commercial Rents:

$30 PSF

Construction Cost: Cost PSF:

$3.4 million $141 PSF

RTM Expansion:

24,000 SF

Expansion of Reading Terminal Market

1001 Filbert St

Boutique Hotel Though the convention center will drive the majority of the lodging needs of Market East the plan calls for the development of a six floor boutique hotel concept operated by Kimpton Hotels. Though Kimpton recently completed the Hotel Palomar in Philadelphia we believe that the Market East area can offer a different product to business travelers and tourists that will complement the rest of the development program. Moreover, Kimpton often operates several properties in the markets in which they do business. The building envelope is at least 50,000 sf with the first floor containing the lobby, a restaurant, and a small amount of meeting space (30,000 sf).

The existing bus station will move to 30th Street Station. 1001 Filbert St. will have a new boutique hotel.

NOI (2019): NPV (@10%): IRR (Leveraged):

$20.4 million $62.7 million 36%

Commercial Rents: ADR (Year 1): Construction Cost: Cost PSF:

$30 PSF $300 $213 million $291 PSF

Inline Retail: 28,000 SF Hotel Conf. Space: 30,000 SF Boutique Hotel: 220,000 SF 300 rooms Parking: 120 spaces

940 Market St - Student Housing

Best Buy Best Buy is a retailer of consumer electronics, home office products, entertainment software, appliances, and related services. The companyâ&#x20AC;&#x2122;s stores offer video products, such as televisions, navigation products, digital cameras and accessories, e-readers, and DVD and Blu-ray players; and audio products comprising MP3 players, home theater audio systems and components, musical instruments, and mobile electronics. Its stores also provide home office products comprising notebook and desktop computers, monitors, mobile phones and related subscription service commissions, hard drives, and networking equipment; entertainment software products, such as video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads, and computer software; and small electric appliances, as well as snacks and beverages.

NOI (2018): NPV (@10%): IRR (Leveraged):

$3.7 million $3.7 million 20%

Commercial Rents: Housing Rents:

$35 PSF $2.03 PSF/mo

Construction Cost: Cost PSF:

$34 million $155 PSF

940 Market St. will have new student housing convenient for student at Thomas Jefferson University or once of the other city universities.

Urban Best Buy - New York City (25)

Best Buy: 24,000 SF CVS: 24,000 SF Student Housing: 136,000 SF 240 units Parking: 120 spaces

The Hub Student Housing - UPenn, Philadelphia (26)

801 Chestnut st - senior housing

NOI (2018): NPV (@10%): IRR (Leveraged):

$3.6 million $4.8 million 17%

Commercial Rents: Housing Rents:

$30 PSF $2.25 PSF/mo

Construction Cost: Cost PSF:

$34.1 million $150 PSF

Inline Retail: 15,850 SF Senior Housing: 180,400 SF 215 units Parking: 104 spaces

802 Chestnut St. will have senior housing.

The Gallery Hotel NOI (2026): NPV (@10%): IRR (Leveraged):

$94.3 million $90.7 million 43%

ADR (Year 1):

$275

Construction Cost: Cost PSF:

$387 million $586 PSF

Hotel Conf. Space: 120,000 SF Hotel: 540.000 SF 864 rooms

A high-rise hotel will be built on top of the existing Gallery Mall

Initial construction of the Gallery in 1977 provided structural support on top of the current retail space for expansion of three towers of up to 27 floors each. The plan calls for developing one of the two pads on Gallery II along 10th Street between Market and Filbert Streets, with the flexibility of adding a second tower or constructing two shorter towers. This tower will be a 22-story full service national hotel and meeting center with a developable envelope of 72,000 sf and a room floorplate of 20,000 sf. The plan proposes 22 floors of rooms and 2 floors of meeting space yielding 864 rooms and 120,000 sf of meeting area. 92

800 market - market rate apartment

Home Depot The Home Depot operates as a home improvement retailer. The companyâ&#x20AC;&#x2122;s stores sell a range of building materials, home improvement products, and lawn and garden products to do-it-yourself, do-it-for-me (D-I-F-M), and professional customers. The Home Depot has 1,972 convenient locations throughout the United States (including the territories of Puerto Rico and the Virgin Islands), Canada, China, and Mexico. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area. Their store inventory consists of up to 40,000 different kinds of building materials, home improvement supplies, appliances and other home products.

Urban Home Depot - Chicago (27)

800 Market St. will have market rate apartments.

NOI (2023): NPV (@10%): IRR (Leveraged):

$5.5 million $1.9 million 16%

Commercial Rents: Housing Rents:

$30-35 PSF $2.20 PSF/mo

Construction Cost: Cost PSF:

$56 million $176 PSF

The Home Depot: 56,600 SF Inline Retail: 31,500SF Multifamily Housing: 193,360 SF 256 units Parking: 128 spaces

Conclusion Our proposal for Market East station is a market driven plan focused on limiting public investment to critical components and using these strategic investments to leverage the maximize private investment over a 15 year period. While aspects of our plan can be pursued by private developers on a site specific or project basis, we believe that at full buildout our plan accomplishes our visions and goals, specifically: improving transit connections, providing destination retail and amenities, satisfying unmet hotel demand, attracting new residents, reorienting the Gallery, reengaging the public realm, and providing a base for profitable long-term development. Ultimately, our proposal redefines the mall for Philadelphia, improves the image of the City, generates returns for stakeholders, and serves as a successful urban, multi-modal transit-oriented development.

Private

Public

Generates attractive returns for private investors: • Total Equity Commitment: $299 million • NPV (@10%): $388 million

Generates $100 million+ in taxes in first 15 years,

• IRR: 23%

increasing to $300 million over 30 years • Driven by hotel ($85M) + sales taxes ($10M) • As abatements expire property taxes to make a larger percentage

Conventioneers Tourists

Commuters

Students

Residents

Nordstrom Rack



DSW



Best Buy



Home Depot



CB2



Fresh Market



CVS



Reading Terminal Expansion



Gallery Renovation



In-Line Retail



Housing



Gym



IMAX



Wax Museum



Hotels



Culinary School



Cycle Track + Bicycle Station



This proposal’s mix of residential, retail, commercial, and cultural amenities will help capture the existing markets at Market East.

Work/Image Citation

Cover/Intro 1. Flicker: http://www.flickr.com/photos/henryofdjibouti/5008486750/ 2. Flicker: http://www.flickr.com/photos/jeremai/5643365382/ Area Analysis 3. Transit Cooperative Research Program, Transit Oriented Development in the United States: Experiences, Challenges, and Prospects. Report #102. Washington, D.C.: Transportation Research Board, 2004. 4. Centercityphila.org 5. Pennsylvania Real Estate Investment Trust. Gallery at Market East - About Us. [Online] 2010. [Cited: January 25, 2011.] http://galleryatmarketeast.com/about_us. 6. Pennsylvania Convention Center Authority. PA Convention Center - Expansion Information. [Online] 2010. [Cited: January 25, 2011.] http://www.paconvention.com/home2/expansion/. 7. PA Convention Center - Hotels. [Online] 2010. [Cited: January 25, 2011.] http://www.paconvention.com/ home2/attendees/hotels.asp. 8. Thomas Jefferson University Hospitals. About Us - Thomas Jefferson University Hospitals. [Online] 2011. [Cited: January 25, 2011.] http://www.jeffersonhospital.org/About-Us.aspx. 9. Reading Terminal Market. Reading Terminal Market - About. [Online] 2011. [Cited: January 25, 2011.] http://www.readingterminalmarket.org/about/revitalized. 10. Friendship Gate in Chinatown. The Philadelphia Inquirer. 2007. 11. Readingtrminlamarket.org/about Market Assessment 12. Kostelni, Natalie. Phila.-area apartment market bouncing back. Philadelphia Business Journal. [Online] July 13. 2010. http://www.bizjournals.com/philadelphia/blogs/real_estate/2010/07/phila-area_apartment_market_ bouncing_back.html. 14. 2010. http://www.bizjournals.com/philadelphia/blogs/real_estate/2010/07/phila-area_apartment_market_ bouncing_back.html. 15. CoStar. The CoStar Office Report, Mid-Year 2010, Philadelphia Office Market. 2010. 16. Cushman & Wakefield. Marketbeat: Philadelphia Retail Report, Mid-Year 2010. 2010. 17. Center City District & Central Philadelphia Development Corporation. State of Center City Philadelphia 2010. Philadelphia : s.n., 2010. 18. Philadelphia Convention & Visitors Bureau. Places to Stay - PhiladelphiaUSA.travel. [Online] 2010. [Cited: January 25, 2011.] http://www.philadelphiausa.travel/visitors/places-to-stay. 19. pidc.org. May 2011. 20. Central Philadelphia Development Corporation and the Center City District. Center City Reports: Residential Development 2010: Diversification Pays Dividends. Philadelphia : s.n., 2010. Implementation & Execution 21. N/A 22. Cb2.com 23. http://www.ecovelo.info/images/bike-station-dc.jpg 24. http://johnwilliamtempleton.files.wordpress.com/2010/11/image022.jpg 25. http://go-digital.net/blog/wp-content/uploads/2009/07/IMG_6482-bestbuy-circuitcit.jpg 26. http://www.rent.com/media/property/560/264/56026446.jpg 27. http://www.flickr.com/photos/smart_growth/2454340567/

Canal Square TOD at Girard

Canal Square TOD

CANAL

the station | the pass | the shops at canal square Few sites match the potential of Northern Liberties, Fishtown and the North Delaware Waterfront for creating transit oriented development in Philadelphia. The Girard Station on the Market Frankford Line (MFL) and 15 Trolley, make the area a major transit hub. Coupled with extensive vacant land between Front Street and the Waterfront, this area has incredible development potential. Over the last 15 years the neighborhoods surrounding Girard Station have become high growth markets, with a number of major developments helping to transform the area into one of the most desirable in Philadelphia.

Evoking the industrial past of the Philadelphia’s northern waterfront, this studio’s proposal for Girard Station is named after Canal Street, a winding road that follows the course of the historic Cohockskin Creek. Just as the Cohockskin once powered Northern Liberties, the proposal envisions a revitalized Canal Street that will enliven the neighborhood. Canal Square will innovatively repurpose forgotten industrial lands into Philadelphia’s most exciting place to live, work and play.

100

INTRODUCTION TO CANAL SQUARE

This a vision for Canal Square, a new transit-oriented destination, that will build off of existing development and create a major retail, entertainment and cultural attraction for the surrounding neighborhoods as well as Greater Philadelphia. Stretching south from Girard Station, the TOD will establish a stronger link between the existing neighborhoods and the waterfront. Adjacent to Girard Station a new affordable commercial and residential development will provide flexible spaces for Philadelphia’s creative economy. Front Street will be transformed from a dark and vacant place, to one lined with artisan studios, shops and restaurants. New connections within the street grid will knit together this 800+ unit development with the Piazza at Schmidt’s and the station. The lower portion of the development will transform vacant land between Delaware Avenue and I-95 into a vibrant mixed use retail destination. The historic Canal Street will become a new pedestrian walk lined with a mix of major national and local retailers. Unlike strip mall development located elsewhere along the Delaware, this vision creates a walkable urban place that extends the urban fabric of Northern Liberties to the waterfront. But the Girard TOD is more then a development, it provides an opportunity to capitalize on private investment to make the region more livable and healthy. The entire site will be built to encourage a healthy and active lifestyle. At its heart, a new community and recreation center will provide the neighborhoods of Fishtown and Northern Liberties a world class facility to learn, play and socialize. As part of an initiative for a healthier kind of community, Canal Square will incorporate sustainable technologies and active design to achieve a healthy living community. The next few chapters describe a blueprint for transit oriented development around Girard Station from concept to financial strategy. While the size, scope and timeline for this project make this a complicated proposition, developing at this strategic location has transformative potential not only for the adjacent neighborhoods but also for all of Philadelphia. The Girard Station TOD will help redefine how Philadelphian’s shop, socialize, and live.

101

AREA ANALYSIS

Stepping out of the Girard Station places one at the crossroads of a quickly changing portion of Philadelphia. Looking east and west from the intersection of Front and Girard Streets, one sees a typical pattern of aging Philadelphia rowhomes, historic commercial buildings, and decaying storefronts that frequently characterize many of Philadelphiaâ&#x20AC;&#x2122;s long-time commercial corridors. Looking south, the 90 year old Frankford Elevated Rail line leads to a tangle of interstate overpasses in the distance.

However, Girard Station is also a gateway to the unexpected: moving just a few blocks west will reveal new construction embracing eclectic urban design and architecture. Moving less than two blocks south down Front Street, the sky opens and the waterfront is visible within walking distance. A juxtaposition of history, innovation, and natural qualities permeates the neighborhood character. Its location just outside of Center City, has made the neighborhoods bordering Girard desirable for investment and redevelopment.

Once known mostly as a post industrial area, in recent years new residents and visitors have helped to redefine Philadelphiaâ&#x20AC;&#x2122;s lower river wards. Today the neighborhoods surrounding Girard Station have new shopping, nightlife and restaurants unlike what is found elsewhere in the city. A transit-oriented development at Girard has the opportunity to weave together the best aspects of surrounding neighborhoods while providing concentrated development and rich transit connectivity.

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NEIGHBORHOOD CHARACTERISTICS

Canal Square was imagined to take advantage of Girard Stationâ&#x20AC;&#x2122;s strategic location at the junction of several important areas in Philadelphia including Fishtown, Northern Liberties, and the Delaware Waterfront. At the juncture of these areas, a transit-oriented development at Girard Station has the opportunity to capitalize on and link the best neighborhood characteristics and assets of these areas. Their dominant physical components as well as demographic composition influenced the final development concept. Fishtown

Fishtown is well known as a strong neighborhood of working class residents

Located north and east of Girard Station, Fishtown is generally considered to be bounded by Frankford Avenue at its western edge, York Street to the north, and Laurel Street to the south. Historically, its location adjacent to the waterfront made it a center for the shipping and fishing industries. In addition, its past as a strong, working class neighborhood continues to be a part of its character today. Still a working-class residential community, the area has also seen a wave of new residents attracted to its unique neighborhood quality and availability of affordable housing stock. While Northern Liberties has had significant large redevelopment projects, Fishtown has been defined more by piece meal redevelopment and new construction with a focus on green or sustainable building. The opportunities for redevelopment have instilled a do-it-yourself culture in the neighborhood; there are pop-up parks in vacant lots as well as temporary public art projects in empty storefronts. The area has also become a center for burgeoning arts culture evident in the concentration of galleries especially along the Frankford Arts Corridor. This artistic quality extends to both the architecture and businesses of the area. Renovated, historic rowhomes bare unique design features and stand along specialty boutiques, music venues, and locally owned businesses. Northern Liberties

Located between Center City and Fishtown, Northern Liberties has experienced a two decade long renaissance. Northern Liberties is a neighborhood that extends south from Girard Avenue, and Girard Station, to Callowhill Street, North 6th Street to the west, and the Delaware River to the east. While Fishtown has had a strong residential population through its history, Northern Liberties was more defined by its industrial uses including manufacturing and brewing. In recent years, large redevelopment projects have redefined this area as a new neighborhood desirable for young professionals as well as artists and creative professionals. These new projects, including the Piazza at Schmidtâ&#x20AC;&#x2122;s, have strengthened Northern Liberties as a destination for vibrant nightlife activity through its concentration of boutiques, dining and bar venues. Northern Liberties is now also

A tradition of embracing electric and expressive design permeates Fishtown

A strong arts scene, especially along the Frankford Avenue Arts Corrridor has emerged in the area

The market has embraced innovative and modern architecture in new construction & redevelopment

103

NEIGHBORHOOD CHARACTERISTICS

known for its urban design quality that is a unique departure from the historic urban pattern in the neighborhood. New real estate projects have introduced new public spaces differentiating the area as a destination. Northern Liberties has become a neighborhood well known in Philadelphia for urban transformation and innovation. Delaware Waterfront

Girard Station is also in close proximity to the Delaware Waterfront. Access to the waterfront is an important, ongoing neighborhood issue for Fishtown as well as Northern Liberties. While the full realization of the Delaware waterfront redevelopment remains in question, making connections to the waterfront is an advantage for transit-oriented development in this area. The waterfront is home to some major developments, including the Sugarhouse Casino and Waterfront Square Condominiums. In addition, the waterfront is also a reminder that these dense, urban neighborhoods also border a significant, natural resource. Transit oriented development has the opportunity to capitalize on what will hopefully become a mix of high quality destinations and open space amenities along the Delaware waterfront.

Fishtown is well known as a strong neighborhood of working class residents

New projects make impressive urban design statements to draw visitors

Boutique retail has rebranded Northern Liberties

The Delaware waterfront is a natural resource and asset available to new development here

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HISTORIC CANAL

Canal Street is one of the most unique aspects of the Girard Station TOD study area. The street winds its way through Northern Liberties, following the path of the historic Cohockskin Creek. In the 19th century the industries of Northern Liberties harnessed the power of the Creek, as the lower portion existed as a working canal. As late as 1859, the canal continued to be exposed to open air and navigated through one of Kensingtonâ&#x20AC;&#x2122;s key industrial areas. Historical maps indicate that many area industries used the area around the canal as open space for storing goods such as coal. This was especially true in the large block south of Laurel Street; area industries fronted the major arterials with their rear facing the canal. By 1945, the canal was completely covered and a rail ran along what is best characterized as a service street. As contemporary photographs demonstrate, this street has continued to act primarily as a service street, at least in the parts located within the site. However, the entire section East of Front Street was never repaved, and thus maintains an aesthetically pleasing cobble stone paving which would add significantly to place character. Moreover, the section south of Laurel Street still holds the original rail lines, along with this historic paving.

The original rail lines run along much of Canal Street

The paving is well preserved, and can be enhanced to create place character

Hexamer & Locher 1858 Map with Cohockskin Creek

Canal Street contains many abandoned industrial buildings presenting opportunity for redevelopment

Canal Street is well connected to the MarketFrankford corridor

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HISTORY

The history of Northern Liberties and Fishtown consists of three distinct periods. The two neighborhoods initially developed because of waterfront industries. The neighborhoods saw the drastic shrinking of their industrial base in the post war period. In the wake of industrial decline, new development has produced a modest renaissance over the last decade. Industrial Growth

The river ward communities of Fishtown and Northern Liberties have their roots in an industrial and seafaring past. From the 1800s onward, this area grew as the region’s main manufacturing center with factories, shipping facilities, and ports populating the waterfront. This area then boomed with business activity and residential growth in neighborhoods to the west of the waterfront. Northern Liberties originally developed as a suburb of Philadelphia and by 1810 was the 6th largest city in the United States. It was only incorporated into the city in 1854 when Philadelphia was the nation’s third largest city. As industrial growth continued in Philadelphia, other riverfront communities extended northward including Fishtown and Port Richmond. Northern Liberties and Fishtown were centers of economic activity centered on the brewing industry. Several large-scale brewers grew in the area including Schmidt’s Brewery which

was established in 1860. The industrial period saw the establishment of Northern Liberties and Fishtown as industrial centers and dense residential neighborhoods. As population growth continued in Philadelphia, the early 19th century saw the introduction of the first elevated subway line, the Market Frankford line, in 1922. The subway line extended through the center of these existing residential neighborhoods and provided new connectivity to Center City and west across the Schuylkill River. Industrial Decline

Like most of Philadelphia, Northern Liberties and Fishtown began to experience significant decline after it reached its population height in the 1950’s. The post-war period saw the loss of most of the industrial activity in the area that had sustained its growth and economic health. As industries left the waterfront, a major link to the interstate system moved in. Under construction for over twenty years, I-95 had reached Girard Avenue by 1969 and continued its extension to the Center City section, which opened in 1979. The elevated highway then partially severed these neighborhoods from the natural resource, which had once been their lifeblood. Northern Liberties also experienced the slow collapse of its brewery industry, and in 1987 Philadelphia’s last major brewer, Schmidt’s, shut its doors.

Historical Timeline of Study Area

1922

1809

Frankford Northern Liberties

Elevated Rail

6th largest U.S. city

Opens

INDUSTRIAL GROWTH

1800s

1860 Schmidt’s Brewery Established

106

Renaissance

While postindustrial decline is still apparent in Fishtown and Northern Liberties, the significant availability of low cost property and vacant land has driven redevelopment in the area. The area’s proximity to Center City spurred development hoping to capitalize on residential demand based on comparative affordability and the emergence of an edgy, artistic neighborhood. Significant portions of redevelopment opportunity have already been taken by developers including Bart Blatstein and Tower investments who acquired the entire Schmidts Brewery site in 2000. For the past ten years, the area has experienced increasing residential redevelopment and investment interest in larger scale projects as well as renovations. The redevelopment of the Schmidts site has realized one of Philadelphia’s largest infill developments consisting of residential units, retail space, and a large public space amenity. The Delaware waterfront planning process has also brought new attention to the potential of Northern Liberties and Fishtown. Since the 2000’s, several major projects have impacted the waterfront on the shores of these riverfront communities. Casino development made its controversial debut in 2010 when the Sugarhouse Casino opened at the intersection of Frankford and Delaware Avenues. Development interest continues in this area as the next portion of the Piazza at Schmidts is scheduled to open shortly and future phases have been announced.

2000

1965

Northern Liberties was once the center of a strong brewing industry in Philadelphia

Industrial decline left many structures and properties ripe for redevelopment

Sugarhouse brought a new, if controversial, entertainment and gambling element to this area

Highway Built Tower Investment Acquires Schmidt’s

POST-INDUSTRIAL

1960s

RENAISSANCE

1987

2000s

2010 Sugarhouse Casino

Schmidt’s Brewery closes

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NEW DEVELOPMENT

The Piazza at Schmidts

Northern Liberties’s image today is almost synonymous with the Piazza at Schmidts development. Located just two blocks west of Girard Station, the Piazza at Schmidt’s made a significant impact on the neighborhood character and induced further investment. With the acquisition of the closed Schmidts Brewery in 2000, developer, Tower Investments, was able to conceive of large-scale, and catalytic development on 22 acres of industrial land. Tower Investments has focused on building out a “five minute community” concept. To date, the Piazza at Schmidt’s has brought over 500 residential units, 100,000 SF of retail including boutique shopping and dining, and 50,000 square feet of office space to the area. The second phase, The Shops at Schmidts, is projected to open in 2011, and will include a new 50,000 SF supermarket, and additional retail. A future phase will build out the remainder of the Schmidt site with 600 residential units. Tower Investment’s work in Northern Liberties has set a high bar for development quality in the neighborhood. This development also proves the power of a master planning strategy for reconnecting the urban fabric in this area and enhancing marketability. In addition, amenities and a differentiated residential product have helped attract a younger, higher income demographic to the area. Finally, this development has devoted significant attention to creating a culture of entertainment and nightlife. The pedestrian walkways and plazas surrounding restaurants and bars encourage a 24/7 environment comfortable for residents and enticing for visitors alike.

The Piazza at Schmidts has established the area as a destination and is bringing new amenities such as a supermarket

New infill residential development stands next to industrial buildings and traditional rowhouses

The Sugarhouse Casino

The Sugarhouse Casino, opened in early 2011, and introduced 45,000 SF of gambling and entertainment space to the Delaware waterfront on the border of Fishtown and Northern Liberties. This development, however controversial, has brought another reason to visit the Northern Liberties/Fishtown area. It is a new anchor institution in Philadelphia and its planned expansion of additional gaming space, a 750 room hotel and a parking garage may increase its presence in the future along the waterfront. Although its architecture is not award winning, the construction of the Casino did realize the first portion of the Delaware riverfront trail on the waterfront side. While the Sugarhouse Casino is an entertainment venue, it currently has few other amenities beyond two full-service restaurants, and two full service bars. The casino draws an additional user profile to the area: most of its visitors are coming from nearby North Philadelphia neighborhoods for short-term visits. However, as it expands the venue may draw additional visitors from a larger trade area. This exhibits the opportunity to build off of the casino by providing restaurants and 108

The Sugarhouse Casino may expand and become more of a full scale destination along the waterfront

entertainment venues. New developments can capitalize on the availability of another customer profile in the area. In addition, the casino currently employs over 1,000 people and there is potential to provide affordable housing options and amenities for workers. The arrival of the Sugarhouse Casino demonstrates how the desirability of the Delaware waterfront for large scale projects has a strong relationship to the market dynamics and development possibilities surrounding Girard Station.

these projects are completed by entrepreneurial, local developers such as Onion Flats who capitalize on the ability to pursue progressive design or sustainable strategies in fitting with the neighborhoodsâ&#x20AC;&#x2122; culture. This trend has also brought a dynamic street character to these neighborhoods; geometric, modern facades neighbor traditional rowhomes. Infill residential development has attracted buyers looking for alternatives to the Center City market with preferences for a unique neighborhood with near downtown convenience. In addition, infill development has also targeted the artist market, that originally began the period of regeneration and repopulation of this neighborhood. The dichotomy in this neighborhoods between the old and new, vacancy and new investment, is a key driver of the desirability of living and visiting this part of Philadelphia.

Infill Residential

The increasing attractiveness of these neighborhoods as well as availability of vacant land opportunities have spurred a trend of infill residential development especially throughout Fishtown and Lower Kensington. Many of

Recently built commercial and residential buildings

Girard A venue

Frankford.

2nd St.

Girard Station

Schmidt Redevelopment

law ar e

Av e

nu e

Penn Treaty Park

Sugar House Casino

Waterfront Square

1/4 Mile

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AREAS OF OPPORTUNITY

Vacant, Abandoned and Public Land

law ar e

Av en

2nd St.

Frankford Ave.

Girard A venue

1/4 Mile

One of the most important factors guiding the site selection process was the opportunity for parcel acquisition. The map above combines an analysis of vacant land, public ownership and those parcels which would lend themselves to repurposing. Within a quarter mile walk distance of Girard Station, there is a significant agglomeration of vacant and publicly owned parcels south of Front Street and Girard Ave. The west side of this block consists primarily of vacant, deteriorated industrial buildings that have visible signs of continued disuse. Except a gentlemenâ&#x20AC;&#x2122;s club located on the corner of Front Street and Girard, the entire block is vacant with no permanent structures still standing. The pattern of vacant land becomes even more expansive further south, encompassing 8.3 acres south of Richmond Street. The presence of the highway overpass is undeniably an influence on 110

development opportunities as it creates a sharp division between the waterfront and Northern Liberties. The area south of I-95 maintains a strong industrial character and some structures continue to be in use. The building directly south of Laurel Street and the set of buildings along Delaware Ave are currently in use mainly as industrial and storage facilities. However, the building to the north of Laurel Street and the buildings west of Frankford are not in use. One of the positive attributes of this area is the high concentration of large land owners. Core Realty is currently the sole owner of not only the Cold Storage buildings south of Brown Street, but also all the structures along Delaware between Frankford Ave. and Brown St. Moreover, Tower Investments has significant ownership along Front St. near Girard Station.

LOCAL TRANSIT

Area Transit Lines 57 Bus

Fern Rock Transp. Center

25 Bus

Frankford Transp. Center

5 Bus

Frankford Trans. Center

15 Trolley

To Port Richmond

15 Trolley

to 63rd Street

Girard Station

Market-Frankford Line

43 Bus

Kensington

15 Trolley Spur ( Opening Spring 2011)

5 Bus 57 Bus

Pennâ&#x20AC;&#x2122;s Landing

South Philadelphia

Waterfront Trolley ( Proposed)

25 Bus

Columbus Commons

43of Bus Northern Liberties and Fishtown are some the Parkside most transit rich places in Philadelphia. The Girard Spring Garden Avenue MFL Market-Frankford Station puts Line the neighborhood within minutes from Center City and University City. MFL passengers are one transfer away from most major employment centers in Philadelphia, making the neighborhood already a popular place for Center City workers and students.

to travel to the Northeast and Center City. The city is currently exploring the construction of a new waterfront trolley line that would link the Route 15 spur and casino, the Pennâ&#x20AC;&#x2122;s Landing, Center City and South Philadelphia.

The Girard Avenue trolley provides another valuable transit connection for the neighborhood and is one of the few major crosstown lines that does not require passengers to travel through Center City. The 15 Trolley links the riverward neighborhoods together and in 2011 a new spur will allow trolleys to travel directly to the waterfront at Frankford and Delaware Avenue. A number of bus lines also serve the neighborhood which providing additional options for residents 111

COMMERCIAL CORRIDORS

Commercial Corridors

Frankford Corridor

Girard Avenue Small Businesses East Girard Shops and Restaurants Liberties Walk

New Pathmark

2nd Street Corridor

The blocks along Girard and Front Street adjacent to Girard Station form a major gap in the commercial corridors of Fishtown and Northern Liberties. A few blocks southwest of the station is the Piazza at Schmidts development, featuring a number of specialty boutiques and restaurants. Across the street from the Piazza is a major new retail development anchored by a large supermarket opening this year. East of the station, Frankford Avenue and Girard are reemerging as important retail corridors for Fishtown and feature a number of small shops, cafes and bars. The New Kensington Development

112

Corporation has focused a lot of their efforts on revitalizing Frankford Avenue to make it again the focus of Fishtown. Between the commercial cores along 2nd Street in Northern Liberties and Frankford Avenue in Fishtown, there is a large gap in the retail fabric. The areas adjacent to Girard Station continue to have high vacancies and have yet to experience the revitalization seen in the surrounding neighborhoods. Moreover, the corridor lacks many neighborhood oriented stores; walking out of the station riders are confronted with uses such as an adult bar and tattoo parlor.

FINAL SITE SELECTION

Study Area

Lower Kensington Girard

Fishtown

Ave

Frankford Ave.

Girard Station Schmidt Development

Casino

ar e

A ve

2nd St.

ve nA

tow

Northern Liberties

Waterfront Square

1/4 Mile

Spring Garden

The above map shows the final development boundaries for this Girard Station TOD. The studio developed these site boundaries based on a number of factors including: the availability of land, large vacant contiguous parcels, proximity to transit and transformative potential. As illustrated in the previous sections, the areas around Girard have significant amounts of vacant or abandoned land, however in most of the neighborhood vacant parcels are relatively evenly dispersed, leaving few large parcels for development. The area stretching

along Front Street and Canal Street to south of the station allow for large scale redevelopment. The site is adjacent to both the casino and Schmidt site, allowing for synergies with existing development. While the TOD boundary stretches far beyond Girard Station, the entire area is within a short walk to Girard Station, Spring Garden Station and the route 15 trolley. Furthermore, this long linear site will allow for maximum connectivity between the waterfront, Fishtown and Northern Liberties.

113

MARKET ASSESSMENT

Generating a concept for a destination TOD at Girard Station involved the study of demographic, economic and market characteristics of the neighborhoods bordering the station. The site identified in the previous section is located at the confluence of a diverse set of neighborhoods, each with their own set of challenges and opportunities. The recently released 2010 census data shows that the neighborhoods of Lower Kensington, Fishtown and Northern Liberties have undergone change over the last 10 years, becoming more demographically and economically diverse. A continued property boom has built value in the area but threatens to price out working class families.

Economically, the Girard study area poses many opportunities for new growth and workforce development. The neighborhoods surrounding Girard Station house a growing community of creative professionals, with sites like the Crane Arts building and Coral Arts House cementing the areas reputation as an affordable hub for the arts community. While creative industries are developing as a major economic driver, Girard holds potential to become a retail destination, filling in a niche not being served by the big box retail of North Philadelphia or the specialty stores of Center City.

Finally, as a TOD, Girard Station is highly accessible by transit to the rest of the region. Retailers based in Girard can reach a large segment of Philadelphia, and many of its suburbs in 30 minutes or less by train. Girard Station is also well positioned to tap into the regionâ&#x20AC;&#x2122;s large student population, with over 50,000 students within a 20 minute transit trip of the station.

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ECONOMIC AND DEMOGRAPHIC ANALYSIS Study Area Census Tracts

144

142

158

143

Census Analysis This economic and demographic analysis incorporated the use of census data for 4 Philadelphia census tracts: 144, 142, 158, 143. These tracts coincide with the neighborhoods surrounding Girard Station and include parts of Fishtown, Northern Liberties, Lower Kensington and the Waterfront.

115

ECONOMIC AND DEMOGRAPHIC ANALYSIS

Demographics

These four census tracts are comprised of a population of 13,798 residents as of the 2010 census. The most recent data has revealed that this population has experienced significant shifts in population growth as well as diversity especially in comparison with the rest of the city of Philadelphia. While the city of Philadelphia only experienced 0.5% growth over the past ten years, these four census tracts experienced a 8.7% increase in population. Nearly all of this population growth has been captured by the census tract 144, which represents much of Northern Liberties. Its dramatic 64% increase in population growth is evidence of the new construction in the area and its status as a new residential market in the city of Philadelphia. The other census tracts did experience a minor decline; tract 144, comprising the neighborhoods west and north of the station, had the highest decline at 3.5% over this ten-year period. Census tract 144’s dramatic 64% increase in population growth is evidence of the new construction in the area that has brought new residents and a market to this area. In addition to noted population growth, this area’s household composition also has helped draw conclusions about the market surrounding Girard Station. Although this area’s median age of 34.4 is nearly the same as the average citywide, this area does have a higher concentration of nonfamily households which comprise 54% of total households. In addition, a younger population defines this four-census tract area; currently 77% of residents over the age of 25 can be characterized as single households. On average 46% of total households are family households and of these family households 32% are married families. Of households with more than one resident, 53% of those households are 2 person households, 22% are 3-person, and 17% are 4-person respectively over this four tract study area. Smaller household sizes and younger residents are a trend in this area. A large contingent of non-family households are influencing much of the household growth and residential market in this area.

116

As the population and number of households have demonstrated growth, this area has also experienced significant shifts in terms of diversity. Overall, the area has experienced the most growth in the white population; this segment increased more than 10% from 2000 to 2010. Other significant shifts include a small 2% decrease in the Hispanic population from and a slightly larger 4.8% decrease in the African American population. This area is largely less diverse than the city as a whole. However, several tracts including tract 144 are significantly more diverse as it is 37% Hispanic or Latino. Overall, there is a decline in diversity, which may be attributed to changes in housing prices as residents move to other more affordable parts of the city. Economics

With significant changes in population and major demographic characteristics, the area has also had an upward shift in household income. Income levels are strong as 38% of residents currently earn between $45,000 to $100,000 annually with 13% of the households in this range earning incomes in the $75,000 to $100,000 cohort. In addition, household incomes are projected to rise 12% from 2010 to 2015 to an average of $47,363. Due to strong household income levels, residents are purchasing and occupying homes in the area as indicated by a low vacancy rate of 13%. The median home value for the four-tract area is $189,700. There is substantial variation in housing prices characteristic of a gentrifying area; tract 142’s value of $305,900 is significantly higher than the area average $150,900. This is due to its proximity to Center City Philadelphia and its prominent location near the Northern Liberties neighborhood. Take Aways

This economic and demographic analysis revealed several general trends which guided program selection and identification of target markets. Household incomes are rising which indicates an increase in disposable income and market potential in the area. This analysis supports the addition of retail that can cater to a market with more disposable income.

ECONOMIC AND DEMOGRAPHIC ANALYSIS

2010 Demographic Composition Younger professionals on the rise Also, the analysis of this study area revealed that younger cohorts are on the rise, indicating that retail as well as housing options should capitalize on this market. As younger people form new households, they are more likely to select multifamily apartments as they form new households. In addition, the increase in younger cohorts signifies that there may be a need for different types of retail that benefit from new household formation such as furniture stores as well as other amenities not currently available in the neighborhood. Growing senior population This demographic analysis also revealed that there is a significant portion of the population that is aging in place. From 2010 to 2015, the portion of the population in the 65 to 74 cohort rose 20.5%. While this cohort represents a small portion of the overall population, it signifies that there may be a demand for affordbale housing geared towards seniors. Public transportation & low-income residents Another important conclusion was that 75% of those making less than $45,000 take public transportation to work. There is a need to maintain affordable housing in close proximity to transit in the area.

6.86% Black

5.5% Other

13.97% Hispanic

73.69% Non-Hispanic White

Population Growth by Census Tract (2000-2010) 6000 5000 4000 3000 2000 1000

Employment in the service industry Another key takeaway is that 40% of this areaâ&#x20AC;&#x2122;s employment is based in the service industry. This statistic is important especially in consideration of the addition of estimated 1,000 service workers to the local economy with the opening of the Sugarhouse Casino. Since the average wage of those working in the service industry is about $40,000, this reveals the need for affordable housing that may be also be within close proximity to places of employment.

TRACT 142 TRACT 143

2000

TRACT 144 TRACT 158

2010

117

TRANSPORTATION ANALYSIS

Potential Market Capture

10 Minute Transit Destinations

Transit is at the heart of a TOD, and Girard Station provides the development with excellent access to Philadelphia and the wider region. To better understand the residential and retail draw, we analyzed the extent one could travel on transit from the station in 10 and 30 minutes.

Riders can reach Center City and the Lower Northeast by subway in less then 10 minutes. As the 10 minute transit map shows, Girard Station is easily accessible by transit to local employment centers like the Convention Center and Market West district, along with destinations like Chinatown and Old City. Local serving retail can pull from communities along the route 15 trolley line as far as Port Richmond and Broad Street.

Girard Station TOD is well-situated in the Northern Philadelphia region. From the Girard El Station, SEPTA provides access to Center City and the surrounding region. Within a 30-minute transit ride from Girard Station, riders can traverse to the Sports Complex in South Philadelphia, Frankford Transit Center in Northeast Philadelphia, Haverford Ave. in West Philadelphia and University City. Suburban catchment markets within 50 minutes of Girard Station include Jenkintown, Conshohocken, Ardmore and Swarthmore. Within the Center City District, connections to Old City (4 minutes), Rittenhouse Square (17 minutes) and East Falls (27 minutes) allow riders to access important urban nodes efficiently and quickly. While automobile access is not the focus of this development, retailers and residents will still rely partially on car travel. We analyzed 15 and 30 minute travel sheds by car, finding that drivers can easily access the development from as far as the Mainline and suburbs in southern New Jersey. 30 Minute Transit Destinations

Within 30 minutes one has access to a large part of the region by transit. Major employment centers like Center City, Temple and University City are all a short ride away. Regional retailers can draw by transit shoppers from as far as the Mainline and South Jersey. Residents can access regional destinations like Manayunk, Center City, the Airport, Camden Waterfront and Amtrak at 30th Street Station with zero or one transfer. Students from Temple University, University of Pennsylvania, Drexel, Philadelphia University and St. Josephs have a less than thirty minute ride to Girard Station.

118

TRANSIT DESTINATIONS & ORIGINS 10 Minute Transit Extents R2 + R3 + R5

R6 Fern Rock

MFL Frankford Trans. Center

Erie

Port Richmond (10 mins)

Kensington (5 mins)

Riverline

Poplar (5 mins)

Broad Street 63rd Street

Girard Station

Fishtown (2 mins)

Catchment Neighborhoods Market West (7 mins) 69th Street

Old City (4 mins)

Catchment Suburbs

Convention Center (7 mins)

Regional Destinations

16th Street

Transit Hubs

Angora BSL

PATCO

Sport Complex

Southwest Phila

Airport

30 Minute Transit Extents R2 + R3 + R5

Jenkintown (40 mins) R6

Conshohoken (47 mins)

Fern Rock

MFL

Frankford Trans. Center

Manayunk (34 mins) R5

Ardmore (40 mins)

East Falls (27 mins)

Overbrook

Wayne Junction

Alleghany Ave.

East Falls

Temple U (18 mins)

Riverline

Trolley 63rd 63rd Street Street

Haverford Ave.

Zoo (28 min)

Girard Station

Old City (4 mins)

Amtrak (14 min) City Hall (9 mins) UPenn (16 mins)

Convention Center (12 mins)

16th Street

Rittenhouse Sq University City (17 mins)

Baltimore Ave/ 44th Street

36 Street Camden

Collingswood Collingswood(23 min) South Street (17 mins)

Angora R3 Swarthmore

BSL

(47 mins)

PATCO

Sports Complex (26 mins)

Sport Complex Southwest Phila

Airport Airport

(39 mins)

119

HOUSING ANALYSIS

The housing stock in Northern Liberties and Fishtown have traditionally been characterized by three-story attached townhomes typical of Philadelphia. The Piazza at Schmidts brought a new type of successful rental product to the area and will continue to add additional rental apartments and condominiums in future years. This development has also influenced the addition of other infill development to the area through new and renovation townhome construction. While the current urban character is dense and many townhome redevelopment projects are small in scale, the area has gentrified over the past ten years drawing young couples and singles to the area. As an area that is rapidly changing, the residential market in terms of demand and value displays different characteristic depending on exact location. Current Housing Market

Currently 50% of the units are owner-occupied and 33% renter-occupied attributed to the relative low-cost of housing in this area. Compared to the city’s status as 48% owner-occupied and 38% renter-occupied the area has high homeownership. While 16% of housing units are vacant in the area compared to 14% in the City, the area’s blighted residential buildings are turning over quickly. Although 77% of the housing stock in 2010 is presently below $150,000 in value, this is projected to fall to 56% by 2015 as the area continues to gentrify and become more desirable. In conjunction with the prior statistics, homes valued at $250,000 and above form a small part of the market in 2010 at 2.4% but are projected to grow to a 9.4% share of the market by 2015. The compound annual growth rate for homes prices from $250,000 to $350,000 respectively is 32% over the next five years. Median home value subsequently is projected to rise as well from $104,830 in 2010 to $138,370 by 2015. As the housing market continues to evolve and the Schmidts development continues to add market-rate rental and for-sale housing, lower to moderate income residents will continue to be pushed out of the neighborhood. With the development of Sugarhouse Casino and the 850 jobs it is projected to create, high quality housing near 120

the casino would help workers stay in the area and invest in the community. Maintaining affordable housing and capitalizing on the existing popularity of Northern Liberties and future success of Canal Square is paramount to the proposed housing strategy. For-Sale

For-sale demand is mainly coming from residents looking to buy underutilized row homes at steep discounts and rehab the structures into new upgraded product. The cost of building new makes renovations highly attractive. In addition, as seen in Appendix (Rent-v-Own Analysis) it is much cheaper to rent than own in the Northern Liberties/ Fishtown area even at market-rate rental rates. Nevertheless, there is potential demand from existing household turnover. The for-sale demand in Appendix (For-sale) indicates the process by which demand was estimated. With little household growth projected between 2010-2015, all new household formations in the primary market area of North Philadelphia will occur from existing household turnover. As seen, in the demand, households were income qualified by affordability based on income level and then qualified based on their propensity to rent vs. own by price band. The households were further analyzed by their preferences for attached product and the estimated “fair share” the subject site could capture of the total demand. This amounts to approximately 14-18 annual new home sales that could be captured in the Northern Liberties and Fishtown market area. Over the next five years this will total approximately 70 to 90 home sales. While the proposed development at Canal Square will not capture all of this demand, the site will likely capture some of this new attached housing demand albeit at a low rate. Market Rate-Multifamily

Building upon the success of The Piazza at Schmidts immediately to the west of the site, Canal Square will incorporate a significant number of market-rate and affordable multi-family housing options. The market rate demand was similarly

HOUSING ANALYSIS

calculated by income qualifying households by monthly rent ranges and then looking at different income brackets propensity to rent. In addition, annual rental turnover was calculated as well as the percent of households that estimated to prefer new properties located in walkable neighborhoods. In addition, a specific subject site capture rate was estimated to determine the quantity of annual multi-family units that will be demanded at the site. The demand projected 67 to 74 units could be absorbed annually by the market at market-rate pricing. This equates to a steady demand of approximately one new apartment building every two to two and one-half years which is steady demand. Since The Piazza at Schmidts will likely absorb some of this demand, more emphasis will be placed on building mixed-income communities with 20% market-rate housing and 80% affordable housing.

The Piazza at Schmidtâ&#x20AC;&#x2122;s currently contains 560 units and its next phase is expected to absorb the majority of market rate demand in the area

Affordable/Workforce Multifamily Due to strong competition from existing Northern Liberties market-rate rentals nearby at the Piazza and the need for more affordable housing in the area, significant investment in this type of housing will allow workers to live in close proximity to employment and improve quality of life for the whole community. The affordable housing demand for North Philadelphia indicates strong subject site capture by bedroom type most notably 1 and 2 bedroom units. With the large number of low income households in and around Northern Philadelphia, significant opportunities exist to built new affordable housing with strong absorption potential.

There is demand for the construction of about 70 units of for-sale housing over the next 5 years.

Demand Conclusion The Canal Square project will include a mix of market-rate attached row homes as well as multi-family product along with a significant amount of affordable multi-family housing to serve a diverse demographic. Building upon the existing strengths of the Northern Liberties housing market, Canal Square will add to and diversify the housing product available for several income and demographic profiles.

5-Year Housing Demand

The projected market demand for market rate rentals is about 335 units over the next five years.

615 (3.5 buildings)

335 (2 building)

70 (homes) attached for sale (market rate)

Demand for affordable housing is strong: 615 units make up projected demand over the next five years

multi-family (market rate)

multi-family (affordable)

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RETAIL ANALYSIS

The retail analysis guided our selection of anchor and junior anchor retailers for our program. This analysis involved examining retail supply and demand in the local trade area. Using a primary and secondary trade area, it was determined that limited available local and neighborhood serving retail demand restrained our goal of providing catalytic destination driven change in the area. In addition, current competitive centers such as the Liberties Walk retail area and the Piazza at Schmidts capturing a large share of local demand. Therefore, a new regional trade area analyzed potential supply and demand by retail type on a larger scale.

General Merchandise stores can fill retail gaps near Girard Station

Local Retail Analysis The first component of our market study looks at the existing demand for retail in our primary trade area defined as the four census tracts surrounding Girard Station. The analysis demonstrated that the growing retail center at Schmidts, as well as leakage to retail centers in North Philadelphia and Center City, resulted in only moderate demand for new retail in the primary trade area. Existing demand was largely comprised of neighborhood services like Florists and Health and Personal Care. Due to the high volume of people passing through Girard Station every day, the areas around the station are particularly attractive for local serving retail. The chart below highlights underserved sectors of the local retail market, as well as potential spending power in the primary trade area.

Hobby, book, or art stores are in demand surrounding Girard Station

Table 1: Local Retail Analysis Type

Spending Power

Sq Feet Demand

Hobby, Book, Arts

$4.4 m

2,000 sq ft/ 1 store

General Merchandise

$6.9 m

3,200 sq ft/ 2 store

Sporting Goods

4.4 m

30,000 sq ft/ 1 store

Florist

$550 k

4,200 sq ft/ 2 stores

Health & Personal Care

$4.4 m

6,400sq ft/ 2 stores

Florists may benefit from the convenience of being next to a transit center

A health and personal care store may fill space around Girard Station

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Regional Retail Analysis

In order for Canal Square to be a destination development, retail must draw not just locally but regionally. The secondary trade area encompasses a 30 minute drive or transit trip radius around Girard Station. While there are a number of major retailers along Aramingo Avenue and in Center City, there are a number of other sectors with strong retail demand. The analysis is segmented into minor and anchor retailers. There is demand for small retailers selling goods like shoes, clothing and stationary. For anchors there is strong demand for electronics, home furnishings, general merchandise and clothing/ accessories. The secondary market has existing demand for full services restaurants, something further enhanced by the recent opening of Sugarhouse casino adjacent to the development site.

Sporting Goods are an example of anchor retail in demand in the area

Table 2: Minor Retailers Type

Spending Power

Sq Feet Demand

Stationery and Gifts

$410 k

2000 sq ft

Misc. Retail

$1.6 m

9,200 sq ft

Clothing

$2.9

14,000 sq ft

Shoe Stores

410 k

3,300 sq ft

Type

Spending Power

Sq Feet Demand

Home Furnishings

$1.5 m

6,900 sq ft/ 1 store

Electronics

$2.6 m

10,900 sq ft/ 1 store

Sporting Goods

$4.4 m

30,000 sq ft/ 1 store

Clothing & Accessories

$2.9 m

7,000 sq ft/ 2 stores

General Merchandise

$6.9 m

63,000 sq ft/ 2 stores

Full Service Restaurant

$9.9 m

24,000 sq ft/ 8 stores

Stationery and Gift Stores are an example of retail that can fill inline space in this area

Table 3: Anchor Retailers Electronic stores can be a key anchor retailer in this development

Demand for full service restaurants can capitalize on Philadelphiaâ&#x20AC;&#x2122;s strength in the local food movement

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ALTERNATIVE RETAIL POTENTIAL

The Station at Canal Square’s retail strategy is to provide for neighborhood needs as well as connect to neighborhood assets. The neighborhood’s existing status as a growing residential community, and an arts and entertainment destination for Philadelphia residents strongly influenced this portion of the proposed commercial development. Arts-based Strategy Located just outside center city and Philadelphia’s downtown business district, the neighborhoods surrounding Girard Station have historically been known for their diverse population and eclectic urban qualities. They continue to attract artists and have a concentration of arts- related commercial spaces. In addition, artists are attracted to the ability to capitalize on affordable housing in the area as well as neighborhood organizations that promote the arts and commercial revitalization. This area’s status as an art-based destination and community drove the proposal for artist related pace centered around Girard Station. While the area has attracted a new population, preserving the area as a desirable and affordable option for artists and craftspeople is key. Drawing attention to arts related uses can continue to push the revitalization of this area as well as anchor a unique place quality. Like many older, industrial neighborhoods across the county, Northern Liberties and Kensington have been re-embraced as centers of creative activity. Neighborhood Precedent The arts have a strong basis in this community through nearby institutions, arts designated commercial corridors, and the emergence of artistrelated real estate developments. Institutions - There are several institutions with arts related programs in proximity to our site. Temple University and the Tyler School of Arts are located just north of the site. In addition, this area is just several stops from the Avenue of the Arts which contains a concentration of arts related institutions including the Pennsylvania Academy of Fine Arts.

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Arts Corridors- Frankford Avenue, from Girard Avenue north to Lehigh Avenue, became a city designated arts corridor in 2004. This corridor is managed by the New Kensington Community Development Corporation (NKCDC) which has an interest in encouraging arts related businesses and programming to locate along Frankford Avenue. In addition, Frankford Avenue is home to numerous galleries which host monthly open house events. This site is strategically located within several blocks of the southern entrance of this arts related commercial corridor. Arts-based Neighborhood Retail - Northern Liberties and Kensington have a strong concentration of retail based around the arts. This reveals itself in two ways: there is a preference for local retailers that sell artisinal or locally produced items as well as the appearance of restaurants that focus on locally produced or organic foods. This trend has continued in new development through the appearance of boutique-style retail especially in new developments such as the Piazza at Schmidts. Artist Work Space - The interest in encouraging artists to move to the neighborhood and generate commercial activity has been reflected in the market as well. Commercial spaces centered on artist activity have been pursued by developers as well non-profit corporations in this area. The Crane Arts Building is an example of a commercial arts building which opened in 2006 in a rehabilitated warehouse in Kensington. It was developed by a private developer to provide four stories of artists live-work spaces and a ground floor gallery space in a rehabilitated warehouse. Affordable Housing for Artists - The Coral Streets Art House is another example of a project that displays the precedent for combining low income housing and artist live work spaces directly in this market area. The project was developed by the NKCDC in East Kensington and provides 27 units or affordable housing.

Why Look to Artists? Many studies have shown that artists have an ability to impact a neighborhood on several fronts. First, they have shown a preference for inhabiting areas in transition and the ability to transform an area of potentially underused properties into an area of productive use. Secondly, artists have a tendency to form connections to the community and their locations become cultural destinations that draw tourists and art fans from the area. Frequently, these properties can be combined with ground floor community or gallery space that draw additional visitors and provide active street frontage.

Artists and related professionals comprise from 5-17% workers in nearby neighborhoods

Market for Artists While this area has attracted significant residential activity, there is still a concentration of abandoned and blighting industrial infrastructure in the area. Furthermore, anchoring a destination based development requires building from strength. This area has a proven concentration of arts based professionals: 2000 census data revealed that each of the four census tracts in this developmentâ&#x20AC;&#x2122;s study area held at least 4.5% of all employment in the arts or arts-related professions. These areas represent some of the highest concentrations within the city of Philadelphia. With a demonstrated market for artist related uses, the second most important aspect is the ability to harness local partnerships with non-profits or other local organizations. Nearby organizations such as the New Kensington CDC and the Frankford Avenue Arts Corridor seek to support the arts through their key missions. There is an opportunity to partner with these organizations for development support or for marketing projects to potential tenants and residents.

Several galleries have opened along the citydesignated Frankford Arts Corridor

Arts & local production goods retail charactertize stores in Northern Liberties & Fishtown

The Coral Street Arts is an affordable housing project geared towards artist live -work space in the neighborhood

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CASE STUDIES

Case studies provided a valuable opportunity to assess best practice from around the world. The Girard TOD study site faces many distinct challenges but luckily other communities offered the studio key lessons. While Philadelphia has limited experience with urban format mid box retailing, a number of major North American cities such as Washington DC and Chicago, have adapted suburban retailers for urban contexts. Projects like Columbia Heights in Washington DC, illustrate how cities can accommodate major retailers without sacrificing the quality of the urban environment.

Case studies also provide lessons on how to leverage below market rate development to create a destination. Many cities, including Philadelphia, have developed below market-rate space for artists as a strategy for economic development. Cities also increasingly utilize affordable housing to anchor developments in areas where the market rate housing would not generate suitable returns or density to anchor infill development.

Infrastructure like the Frankford Elevated and I-95 create major barriers to growth around Girard Station. A diverse set of examples in the United States and abroad illustrate how infrastructure can be reclaimed as public space. Projects in Glasgow Scotland reimagine highway underpasses, while the Queensboro Bridge, shows how unused space under the bridge can become neighborhood retail space.

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CASE STUDIES: LOCAL RETAIL & ARTISTS BASED STRATEGY

Crane Arts Building,Philadelphia, PA The Crane Arts Building located two blocks north of Girard Ave. at West Master Street and West Jefferson Street is a unique revitalization project that offers event and studio space to artists of all disciplines. The Crane Arts Community consists of the main Crane Art Building in addition to the Crane Old School, The Stable, and the Ice Box. The mission of the Crane Arts Community is to promote and encourage artistic production by both emerging and established artists. In addition, Crane Arts seeks to assist in the development and growth of Philadelphiaâ&#x20AC;&#x2122;s creative resources, assets, and potential. The Crane Arts Project is profiled herein as it is similar to the structure we propose at the Plaza across from the Girard Station platform. Like the Crane Arts Community, this new structure will enhance and engage the artist community in and around Philadelphia providing work and studio space to incubate new talent in the Philadelphia region. History The Crane Company Building was built in 1905 out of cast concrete faced with brick in the Kensington warehouse and manufacturing area just north of Girard Avenue. It was designed by Philadelphia architect Walter Ballinger, an early innovator of concrete building techniques. The long wedgeshaped building was used as a plumbing warehouse, and had an adjacent three-story stable for delivery vehicles and draft horses. It was later used to process frozen seafood. The enormous concreteblock, first-floor addition which functioned as a walk-in freezer now serves as the Ice Box Project Space. The unique rehabilitation and location for creativity-based businesses to thrive alongside the vibrant, Crane Arts community and provide space to foster collaboration is central to the success of Crane Arts. Program The Crane building has four floors of artist studios and suites with monthly rental prices ranging from $280 to $2,500 with each unit paying their own

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separate utility bill. Unit square footages range from 200 to 4,000 per individual unit. Currently all the studios and suites in the Crane Building are occupied. Studio spaces are personalized, however, personal structures cannot be added to the rented space. In addition, Crane Arts has a variety of project spaces available for community programs and cultural development including the Ice Box, the Grey Area, The Big Hall, Crane Green Space and the Archive Space. The Stable is the last building under renovation on the Crane Arts property and will be occupied by a historic restoration firm Miner-Carr Conservation. Key Takeaways The Crane Arts Project has experienced significant growth since its founding by Temple art professors. This project has used existing buildings to house artists cheaply and facilitate the existing arts culture found in Philadelphia. The Crane Arts buildings foster collaboration and provide the necessary unfinished space for artists to use as their studios. The Girard Station proposed office building would build upon this model by offering space to the professional creative arts services such as architecture and design. This would provide reasonably priced space for professionals to incubate their small practices and continue to grow their businesses. Crane Arts has been successful because it provides unfinished studio space at a reasonable price for a short duration. This type of space is in high demand since the creative arts business can financially sustain the terms of renting in a structure such as Crane Arts. Fruitvale Village, Fruitvale, CA Fruitvale Village is a successful example of transit village concept built adjacent to a Bay Area Rapid Transit (BART) station located in Fruitvale, California. This transit oriented development combines mixed income housing with a neighborhood retail center and a significant public plaza component. Located just 4.5 miles from downtown Oakland, it has revitalized the area as well as increased transit ridership at this location.

History This development was undertaken by a local non-profit community development corporation, the Unity Council. Previously, this neighborhood had been suffering economic decline and the area directly surrounding the transit station was considered unsafe and lacked connectivity to the rest of the community. In addition, this development also benefitted from the ability to acquire and redevelop two vacant lots owned by the BART system. The neighborhood surrounding the Fruitvale station was increasingly diverse in terms of income as well as demographics; the area was home to Program The nonprofit corporation sought the development of this project as part a revitalization strategy to redevelop the area surrounding the station and make greater connections between the station and an existing commercial corridor, International Boulevard. Fruitvale Village was constructed on four acres in 2004 and contains two mixed use buildings containing almost 40,000 square feet of ground floor retail surround a public plaza connecting from International Boulevard through to the transit station. The retail was geared towards enhancing neighborhood choices as well as providing for convenience retail for transit users. It also includes 47 units of mixed income housing, including 37 market rate units and 10 affordable units that were constructed above the retail. Another significant portion of the program was devoted to community space; 114,000 square feet include a clinic, library, senior center and office space. Key Takeaways Fruitvale Village benefitted from the ability to leverage public funding sources including TIF financing as well as grants from the Department of Housing & Urban Development. In addition, its land acquisition was facilitated by the ability to acquire BART-owned property in exchange for land already owned by the Unity Council.

Crane Arts Building in Kensington provides studio and work space to Philadelphia artists

Undertaken by a partnership between a private developer and local artists, Crane Arts has become an asset to the arts community in this area

Fruitvale Village combines a public plaza and retail space to enhance ridership

Fruitvale Village is a example of the ability to transform ridership through providing a new retail and residential node directly adjacent to the station. In addition, it demonstrates the nexus between affordable housing, urban revitalization, and transit strategy. Finally, Fruitvale Village has successfully influenced the adjacent commercial corridors and integrated transit into the daily rhythms of an increasingly vibrant, residential neighborhood. This TOD has successfully attracted residents to its mixed income housing.

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CASE STUDIES - DESTINATION RETAIL ANALYSIS

Columbia Heights, Washington, D.C.

Key Takeaways

Columbia Heights is located in a residential neighborhood located in the Northwest of Washington D.C. and is an example of a retail and transit oriented destination.

Large destination TOD projects are complicated and very costly. DC USA surpassed some challenges because the city already owned the land and provided extensive subsidies to the developer. Today the retail complex is a major source of tax revenue for the city. In addition, the complex successfully adapted suburban retail forms for the urban market. The large complex fits well with the surrounding urban fabric, with access to stores along the street. The building is oriented toward the metro station, and a large share of its customers arrive by bus, metro or foot.

History While it has historically been a diverse middle class community, the area had fallen into distress by the 1960s. Race riots, high vacancy rates and crime gave the neighborhood notoriety. The city eventually amassed large landholdings in the neighborhood’s center through eminent domain The opening of the Columbia Heights Metro Station in 1999, along with a concerted effort by the city to develop its land holding, helped catalyze new development in the area. Columbia Heights today is a vibrant community with a growing population of young working professionals. Program The city worked with private developers to create a mix of destination retail, luxury housing and affordable housing around the new Columbia Heights Metro station. The DC USA retail complex was the cornerstone of the city’s efforts. Developed by Grid Properties, a firm with prior experience building urban big box development in Harlem, the project included 860,000 square feet of retail space anchored by a Target, Best Buy, Bed Bath and Beyond, and Marshalls. The complex is oriented to the street, with ground floor access to retail tenants. A 1,400 space parking lot was built underneath the complex. The complex has been so successful at attracting customers from transit, that the garage, highly subsidized by public funding, is actually highly underutilized. The project has helped revitalize the once struggling neighborhood of Columbia Heights and bring DC residents transit accessible retail options normally only available in the suburbs.

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Large destination retail can succeed in inner city neighborhoods located outside the central business district. DC USA attracted a mix of retailers that served the local population. A higher end retail development may not have succeeded in the same location. The redevelopment of Columbia Heights is partially so successful because the city played a large role in its planning. The government actively worked to establish a strong mix of retail and residential development. Since developers were able to acquire land at below market rates, the city could win concessions for affordable housing and community space. Rockville Town Square, Rockville, MD Rockville Town Square is a mixed-use transitoriented development in suburban Maryland near Washington DC. The town square includes condominiums and apartments, retail stores, restaurants and is also anchored by the Rockville Library and the Rockville Arts and innovation Center. Farmers’ markets, concerts and community festivals are held in the square every year. The project is a 10 minute walk from the Rockville metro station and approximately 1,000 new public parking spaces were added to the area which uses a pay by space system that allows users to pay at pay stations located on every level of the garages. Most of the shops are small boutiques offering

unique gifts and services. The Arts and Innovations Center serves as a community center and the home of the Metropolitan Center for the Visual Arts, a venue for art classes, exhibits, and shows. The new Rockville Library incorporates state-of-the-art facilities and a large collection of books. These civic spaces anchor the retail and apartments that surround the square area. Program The Redevelopment District of Rockville, Federal Realty Investment Trust and Foulger-Pratt collaborated to make the project possible. The first phase opened in the Fall of 2006. The project cost $352 million and was built on a 12-acre site which could be expanded to 60 acres. The focal point of the development is an open-air plaza anchored by the public library and the arts center. Condominiums are located above retail and restaurants surround the town square. At completion the project will be comprised of 644 residences, 175,000 square feet of retail and restaurants as well as 1,900 parking spaces. The residential component includes studio to three bedroom condominiums ranging in size from 550 to 2,400 SF in size and priced from $275,000 to $1,200,000. The buyer profiles include 55% empty-nesters but also 20% singles/couples and 10% retirees. The buyers and renters are coming from the local area in an estimated 60% share and 25% come from the region and 50% work in the local area. The development is achieving 10-15% premiums over the surrounding market in terms of $/SF.

The DC USA Development is a good example of a multi-story retail environment at a transit stop

Columbia Heights combines affordable and market rate housing

The commercial portion includes CVS, Starbucks, Primo Italiano, Taste of Saigon, Lebanese Taverna, Sushi Damo, Giffordâ&#x20AC;&#x2122;s Ice cream and Chevy Chase Bank. The compatibility of the uses occurs due to the convenience of their location and the limited offerings surrounding the development. Key Takeaways The success of the project stems from the integration of well-used public spaces such as the square and public library. In addition, the pedestrian-friendly street design combined with public gathering space adds to the allure of the project. Careful treatment of parking for residents and shoppers is integral to the success of the mix of uses. Due to the high demand for restaurants, it is important to balance the restaurant uses with other neighborhood service retailers. At Rockville, restaurants comprise 60% of the retail space which could be more than that which is needed in a development. This project is highly successful and continues to anchor the Rockville community through its mix of public and private spaces as well as uses.

The library is a part of the community component at Rockville Town Square

Rockville Town Square centers development around a new main street

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CASE STUDIES: RECREATION & PUBLIC SPACE ANALYSIS

Queensboro Bridge, New York, New York

Louisville Waterfront Park, Louisville, Kentucky

In 1909, the Queensboro Bridge, originally called the Blackwellâ&#x20AC;&#x2122;s Island Bridge, was constructed. Unlike many major infrastructure projects currently constructed, some attention was paid to the interstitial space between the ground plane of the bridge and its descent into the water. Specifically, the main section underneath the bridge was deigned with a vaulted tiled ceiling, per the design of Rafael Guasavion, an architect from Barcelona.

The Louisville Waterfront Park is a large scale park system that has reclaimed industrial land for public space and mitigated the negative aspects of existing elevated expressway structures and rail in the area. Although this project is a large waterfront park, it demonstrates the potential for implementation on a smaller scale.

History This beautiful space served for many years as marketplace, known as Bridgemarket. Historically, it acted as a Farmers Market, a location for the sale of fruits and vegetables to the local community. Despite its popularity, the marketplace closed during the depression and the space became used by the Department of Transportation. In 1973, the space was designated a Landmark and efforts were made to redevelop and repurpose the space. Project In 1997, these effort culminated in the repurposing of the space. 42,000 square feet was leased to a furniture and house wares store, while 25,000 were leased to two restaurants, both under the Gustavion name. Other improvements made to the space include a fully landscaped plaza, the refurbishing of a historic fountain and obviously an attempt to preserve the historic vaulted tiled ceilings. Takeaways The Queensboro project illustrates how infrastructure can be designed to serve more than just its primary functional activity. It provides an excellent example for how development might occur underneath the highway and elevated train at Girard. Moreover, this case demonstrates that leisure activities, like dining, can co-exist under highly trafficked arterials.

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This project was developed to regenerate the waterfront as well as reuse the area surrounding and underneath I-64, an elevated expressway. The project began with the establishment of the Waterfront Development Corporation in 1986, which attracted funding including private donations as well as state funding for the project, and subsequently worked on land clearing and acquisition. Project When this project is completed, it will contain over 80 acres of park space tucked between the waterfront and I-64. The project centers around a 12 acre great lawn which runs under an 8-lane segment of the highway. The rest of the park meanders between structures that work with the transit infrastructure or coordinate more with natural areas along the riverfront. The first phase of the park opened in 1999 and the final phase was finished in 2009. As of 2007, park construction was estimated to have leveraged $1.3 Billion in additional investment and development near the waterfront. Key Takeaways The elevated structures in the Girard neighborhood can be reimagined to enhance connectivity and become an asset that encourages and supports future development. This park example shows how blighting structures also yield opportunities for innovative design. While this project is large in scope, other design initiatives including the use of public art and lighting, can make development in proximity to these structures more desirable.

Get Healthy Philly Plan, Philadelphia, Pa

Philadelphia has a new focus on encouraging the relationship between public health, physical activity and the built environment. This “Get Healthy Philly” campaign is undertaken through a partnership between the Department of Public Health and the City Planning Commission. The Philadelphia 2035 Comprehensive Plan states that planning and zoning can help address the goals of “Get Healthy Philly” through “Making healthy foods more accessible and affordable for Philadelphians” and “Promoting physical activity in daily living”. According to this campaign, healthy communities provide walkability, safe and comfortable cycling environments, and access to fresh food. Philadelphia’s focus on encouraging healthy communities can also inform its transit oriented development strategy.

The Queensboro bridge has a supermarket beneath its structure

New York City Active Design Guidelines, New York, New York

The New York City Active Design Guidelines were published in 2010 as a collaboration between several New York City departments including Design and Construction, Health and Mental Hygiene, Transportation and City Planning. The diverse mix of city agencies involved in the project is representative of the emerging attitude that combating this nation’s health problems requires more than recommending healthy eating and exercise. Both architectural and urban design can have a real impact on engineering healthy living back into the natural rhythms of daily life. These guidelines focus on four areas: environmental design and health, urban design, building design and synergies with sustainable design. In terms of urban design, the guidelines encourage the creation of attractive street environments as well as dedicated pedestrian pathways to increase walking and enhance access. Through building design, designers can also facilitate daily activity through the design of visually pleasing and comfortable stairs or by locating building functions to encourage walking routines. Finally, these guidelines highlight that sustainable design involves more than energy use reduction: active design is just as important for public health as for environmental benefit. The NYC Active Design Guidelines highlight that transit oriented developments should strive to make connections to transit as much as they build activity back into the daily lives of residents. A TOD has the opportunity to use design to encourage a healthy lifestyle through the provision of exercise paths, healthy eating choices, and easy connections to transportation networks. By building active and passive recreational areas and enhancing the experience underneath the Market Frankford Line along Front Street, Canal Square residents will have greater options for physical activity as well as greater incentive to walk to the rich public transit options in the area.

View of green space underneath I-67 in Louisville, Kentucky

Skate parks are one type of public space that has been proven to succeed underneath highway infrastructure

The NYC Active Design Guidelines highlight the increasing need to engineer activity into daily life.

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PROGRAM CONCEPT

We envision Canal Square as a development that both serves the local population and provides Philadelphia with a new regional destination. The development will consist of three phases, each with their own distinct identity and set of amenities. The first phase of the development is called The Station at Canal Square, and focuses on revitalizing the area along Front Street between Girard Station and I-95. The Station at Canal Square will focus on serving the local market with a mix of local retail and affordable work/live spaces for artists and creative industries. At the heart of The Station is a vibrant Front Street promenade that re-imagines the area alongside the El as a vibrant retail and restaurant corridor.

The second phase of the development is called the Shops at Canal Square and forms the heart of the development. Stretching along a pedestrianized Canal Street, this phase will establish a series of exciting public spaces anchored by apartments above a mix of national and local retailers.

The final phase of the development, The Pass at Canal Square, will re-imagine the area under I-95 as a series of public spaces designed to encourage an active lifestyle. The Pass will incorporate a new state of the art community center that will not only anchor the development but also the wider neighborhood.

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DEVELOPMENT PRINCIPLES

Canal Square will strengthen neighborhoods and create destinations through the following key principles:

A Stronger Connection to Transit and Surrounding Neighborhoods

A New Regional Node for Retail and Entertainment

A Place that Capitalizes on Existing Assets

A Diverse Community Built for a Modern Economy

A Model Neighborhood for Healthy and Sustainable Living

A Gathering Place for all of Philadelphia 135

SITE PLAN OF CANAL SQUARE

CANAL the station at canal square

CANAL

the pass at canal square

CANAL the shops at canal square

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New plaza at Girard Station

Eastern setback along Front Street creates a promenade

Historic facades front residential courtyards along Front Street

Area under I-95 features tennis courts, a skate park and leisure space.

Canal Street winds through the development as a pedestrian street.

A square sits at the heart of the Shops at Canal Square

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PLAN CONNECTIONS AND SYSTEMS North- South Connections

East-West Connections

Girard Station

Fishtown

The Piazza Liberty Lands

Northern LIberties

SugarHouse

Spring Garden

As described earlier, one of the major goals of the project was to connect the neighborhoods of Northern Liberties, Fishtown and the Delaware River waterfront as well as establishing Girard Station as the primary transit node in the area. Both the elevated Market Frankford line and the I-95 underpass created significant physical barriers to establishing these connections. However, the existing street grid also created serious obstacles to both north-south and east-west movement through the site. Consequently, the proposed site plan stresses both street and pedestrian connections that reinforce these goals. North-South movement through the site occurs primarily along Front Street as well as through the extension of Leopard St. This proposal recommends that Front Street receive a number of significant improvements. Most importantly, the entire set of blocks between Girard Ave. and the Canal Walk, will become a shared pedestrian-auto right of way. Moreover, buildings fronting these blocks will be significantly set back from the street. 138

The result is an improved pedestrian environment, that will continue to serve the need of automobile traffic. It is also proposed that the intersection of Front Street and West Laurel Street be turned into a roundabout. This intersection currently creates a great deal of confusion for both cars and pedestrians, and a revamped roundabout would provided an important visual anchor that induces north-south movement upon exiting Girard station. The extension of Leopard Street south through the development provides the second important NorthSouth link. Not only does this further integrate the site into the existing context, but also creates a residentially oriented street which provides excellent access to both Girard Avenue and the proposed Canal Square. East West movement through the site is greatly enhanced by a number of improved street connections. First, cut throughs are proposed in The Station area, which help to establish connections between the proposed second phase

Station Connections

Open Space System Girard Station

Girard Station

Fishtown The Rialto

The Piazza The Piazza

Liberty Lands

Church Liberty Lands

Northern LIberties

SugarHouse

Waterfront

of the Tower Investments development and Girard Avenue. Second, a new street layout would connect East Wildey Street at the same point along Frankford Avenue. Finally, on the southern part of the site, Ellen Street would be carried past Canal Square to establish another connection between Northern Liberties, Front Street, and Delaware Avenue. The other major East-West connection reinforced by this plan is the connection between the roundabout at front street and the intersection of Laurel Street, Delaware Avenue and Frankford Avenue. By establishing a strong retail and residential connection between these two points, one of the major street connections between Northern Liberties and the development along the Delaware River will be strengthened. This will not only strengthen the connection between these two neighborhood nodes, but will add value to the Girard Line Spur and the proposed Delaware Avenue Light Rail station at this intersection.

Spring Garden

Beyond the street network, the open space system provides one of the major connecting elements in the development. The most important is obviously Canal Walk, which stretches all the way from Liberty Lands, through the development, and on to the waterfront. However, the interspersed open space, both hard- and soft-scape, provide important moments that highlight important elements within the site. They also provide destination in and of themselves, creating important nodes within a larger system of destinations and paths. In total, these systems help to reinforce the centrality of Girard Station as the primary transit node in the area. As demonstrated in the above map, the new open space system and street network reinforce the relationship between the station and key area destinations. As such, the proposed development not only helps to support local transit, but also improves transit connections to existing neighborhood assets.

139

THE STATION AT CANAL SQUARE

The Creative Office at the Station Office Space 80,000 SF Retail 20,000 SF Printing Store Coffee Shop Inline Store 95,000 SF The Arts at the Station Affordable, rental units 288 Market rate, rental units 60 Market rate, for sale townhomes 8 Total units 356 Inline and Studio Space Mixed Retail Restaurants Inline Stores Studio Space Total The Brewery at the Station Total

117,500 SF

17,000 SF

CANAL the station at canal square

140

A Gateway to Canal Square & Girard Station

Focus on the Arts

Exiting a renovated Girard Station, riders will be greeted by a new plaza fronted by a 4 story office building. This building will include small office spaces for creative class fields such as architects and videographers, renting space on short-term leases. Retail offerings will include a coffee shop with outdoor seating fronting the plaza as well as a business center providing support services such as printing, scanning, and shipping services. Radiating east and west along Girard Avenue, the current ownership patterns and businesses are vibrant albeit lower-tier than the desired retail tenant mix. A comprehensive commercial corridor revitalization strategy focusing on storefront quality and signage is recommended to complement the new development occurring around the station and south along Front Street.

Moving south along the east side of Front Street between Girard Street and West Wildey Street, ground floor retail with three-stories of apartment units above will be constructed along both sides of Front Street. This will constitute the “creative arts” district of the development. The ground floor retail will be designed to activate the space underneath the El and draw users from Girard Station. The ground floor retail will include a gallery space for displaying creative art wares as well as a fresh food market. The end cap retail spaces will be restaurants or higher-end bar and dining options. The apartments above will include a mix of marketrate unfinished artist lofts and affordable housing. This will allow artists to live and work within their existing building. Also, street fairs will periodically occur on the weekends in a bazaar –type format drawing crowds from all over the city. In addition, a greenway will run the length of Front Street and include outdoor equipment for all ages from swing sets to dog parks.

A New Entertainment Node

The block bounded by West Wildey Street and North Front Street will include a new microbrewery. The property will include a greenway transecting the property drawing pedestrians to the new Canal Street retail and residential district to the south. The micro-brewery will include a manufacturing facility as well as a restaurant and tasting center. In addition, a small outdoor event space will enhance the user experience and create an entertainment attraction at this critical juncture. Phase I will be completed during the first seven years of this master planned development and coincide with the completion of the rebuilding of I-95. This phase will enhance the experience around Girard Station and lay the foundation for drawing transit riders south to the new Canal Street District by improving the streetscape, creating neighborhood amenities and enhancing the connectivity of Front Street to Girard Avenue and Girard Station. Building upon the Piazza at Schmidts, this “creative arts district” will also be a new neighborhood destination that draws new users by providing affordable housing and building upon the area’s existing status as an arts-centric neighborhood.

Looking under the El at a mid-block pass through

Looking up Front Street at Canal and Front

Section through Front St

141

THE SHOPS AT CANAL SQUARE

The Shops at Canal Square anchors the significant second phase of this transit development. It will be completed in 2022, in order to come online as the I-95 reconstruction finishes. In contrast to Phase I, the retail in this phase is oriented to a larger regional market. The retail offerings will include a mix of undersupplied retail categories supported by the local community in addition to entertainment offerings not offered at the Sugarhouse Casino located across the street. Canal Walk will include a mix of mid-box national and regional retailers in addition to affordable housing in the form of apartment and condominium product. The core of this phase is centered on Canal Street which meanders from East Laurel Street to Brown Street.

Vision for The Shops at Canal Square

The Shops at Canal Square will include a masterplanned large scale development creating a sense of place to attract regional and local shoppers as well as residents. In addition, small scale office space will be incorporated when strategically available. This district involves the creation of a large scale regional destination which will draw shoppers from the suburbs in addition to Center City Philadelphia. This district will solidify the new Canal Walk District as a unique and viable place for Philadelphians to live, work and play through its development.

The Shops at Canal Square

Anchor retail Junior retail Restaurant space Total

180,000 SF 185,294 SF 46,323 SF 411,618 SF

The Residences at Canal Square

Affordable, rental units Market rate, rental units Total Units

CANAL the shops at canal square

The Shops at Canal Square

142

402 84 486

Perspective of Canal Square

Section through Canal Square

143

THE SHOPS AT CANAL SQUARE

Trader Joes:

15,000 SF

Bus Boyâ&#x20AC;&#x2122;s and Poets

6,000 SF

Room and Board

56,000 SF

Stein Mart

35,000 SF

REI

48,000 SF

HH Gregg

26,000 SF

The Shops at Canal Square

144

Retail Walk

Retail Concept

All major retailers will be constructed simultaneously to anchor both ends of Canal Walk and include a central park area. East Laurel Street will become a key thoroughfare with major retail offerings fronting a shared pedestrian and automotive street. On the north end of East Laurel Street near Delaware Avenue, a triangular park known as Trolley Loop Square will anchor another transit hub on the eastern portion of the development and provide access to trolley, bus and automotive transit. Around this park, restaurants will anchor the hard corners with outdoor seating fronting the new park. Along East Laurel Street moving west, mid-box retailers such as Trader Joes will anchor the corridor. Proceeding south into the core of Canal Walk, REI, Room & Board and Stein Mart to the south will anchor the walk. These retailers will be built with wrapped parking and front both the pedestrian Canal Walk and other arterial streets for access.

These retailers were selected based on their market feasibility in addition to fitting brand standards for enhancing an active and healthy living concept. Intermixed between these larger retailers will be restaurants offering farm-to-table fare in addition to smaller boutique retailers such as urban lawn and garden store. The Residences at Canal Square Above the retail offerings will be two to three levels of apartments or condominiums at affordable price points attracting low-income and work force tenants in addition to new market rate renters.

THE PASS AT CANAL SQUARE

The Pass at Canal Square

Community Center Public Spaces skate park canal walk park playground

180,000 SF 185,294 SF

CANAL

the pass at canal square

Recreational & Open Space Program The new community recreation facility proposed as the central anchor of Canal Walk at Canal Square will serve as a new destination for residents of the Northern Liberties and Fishtown neighborhoods. This community center will be designed across from a large public square and the new REI and serve as the cornerstone of the healthy lifestyle initiative for the community. The Community Center will consolidate the dilapidated and outdated community centers in the Northern Liberties and Fishtown neighborhoods and in turn provide a state-of-the-art facility for both neighborhoods to use. This facility will include indoor and outdoor swimming facilities, a basketball gymnasium, workout facilities and breakout rooms for yoga and palates in addition to community meeting rooms and flex space for events. Surrounding the community recreational center will be new softball, baseball and soccer fields in addition to a new playground and skate park. Running trails will transect the fields in addition to an indoor running

track above the basketball gym. Additional outdoor fields and amenities will come online as needed. In addition, the outdoor climbing wall at the REI will be shared by the community center. Trail access to the Delaware River to go kayaking and fishing will also be provided from the community recreation center. This center will consolidate existing facilities and provide a first-class space for all residents of the Northern Liberties and Fishtown neighborhoods to enjoy and share as a collective community.

145

CANAL SQUARE

Connecting Communities & Creating Destinations The Canal Walk development will integrate the Northern Liberties, Fishtown and Delaware Waterfront areas into a cohesive and vibrant community. Canal Walk is primed to attract residents and visitors based on its unique place character, quality of retail, and vibrant lifestyle amenities. Canal Walk is central to the future success of Northern Liberties and Fishtown as they continue to grow towards the Delaware Waterfront. This new project will be the model for destination transit-oriented development in the region.

146

147

DEVELOPMENT STRATEGY

Often more challenging than traditional development, achieving a successful transit oriented development involves much more than construction adjacent to transit lines. TOD means leveraging proximity to transit with the ability to create public and private benefit. It needs to incorporate a strategic and contextual approach to achieve a balance between market realities and the possibilities of a vision.

Planning for large-scale transit oriented development is especially challenging in the city of Philadelphia. In a city as dense and transit rich as Philadelphia, one can argue that the city is already full of transit oriented development. With limited, unencumbered land in strategic areas near stations, Philadelphia TODS will need city intervention to induce private development. Conceived as an opportunity for private development, Canal Square, will also require significant partnership from the city in the form of political will as well as funding sources.

Lastly, having the ability to pursue a cohesive vision for an area can be a large part of a developerâ&#x20AC;&#x2122;s success. Viewing a transit oriented development as parts of the whole built over time can really transform the built environmentâ&#x20AC;&#x2122;s relationship to transit. Such an approach requires a master planning strategy as well as the support of the city in terms of land acquisition, financing or approvals. As Tower Investments has demonstrated its success through its master plan, pursuing this strategy at Canal Square can also help bring a market to Northern Liberties and increase transit use at Girard Station.

148

MASTER PLANNING STRATEGY

The plan for Canal Square was envisioned as a master planned development that would be undertaken over several phases in order to create a transit oriented development with a complete program of uses and amenities surrounding Girard Station. Canal Square was imagined as a larger district plan for creating valuable transit oriented development over the long term around Girard Station. This development was planned for a contiguous area of 17 acres roughly bounded by Girard Avenue to the north, Delaware Avenue to the east, Front Street to the west, and Poplar Street to the south. This plan has been phased according to market conditions and potential land acquisition strategies. This development addresses the following challenges and opportunities:

The City of Philadelphia will need to be a partner in pursuing redevelopment at this location

Achieving a Holistic Vision

With limited unconstrained land available with a 1/4 mile of Girard Station, this development must make the best use of redevelopment opportunity and make connections that currently do not exist. Secondly, creating a transit oriented development that is also a destination required creating a combination of uses and amenities that require a longer time line for construction in regards to cost and absorption realities. This area will be pursued as a total vision undertaken by a master development team. The master developer will control the site, hold control of site design, obtain approvals, and oversee phased implementation of the build out of the site.

Canal Square can achieve some concentrated land acquisition due to a significant amount of vacancy

Land Acquisition

This area is advantageous because there is a large percentage of vacant and abandoned property as well as the concentration of property with just a few owners. However, due to significant improvement in the area and price appreciation, it is unlikely that a city entity such as the Redevelopment Authority (RDA) would be able to acquire all of the land and control the master plan. The RDA as well as other city agencies will likely be needed to acquire some parcels in the area and then sell to the master developer.

A successful strategy will need to engage both public and private players in the development process

Public and Private Involvement

As a development planned to contain over 1.5 million square feet of new as well as rehab construction, several developers and partners will need to be incorporated to realize this vision. With some public ownership of property as well as demonstrated private interest in development in the area, a master developer can coordinate public and private goals in the creation of this transit oriented district. The plan would be for a master developer to partner with the city to acquire the land and then would sell sites to private developers to construct and finance uses according to the overall master plan for the area.

149

LAND ACQUISITION

The land acquisition strategy around Canal will need to involve a mix of private and public players. Currently, the majority of property in this area is vacant or underutilized. However, there has also been significant property acquisition in the area and rising property values due to the increasing popularity of this neighborhood. There have been several large, property acquisitions in proximity to Delaware Avenue and Canal Street demonstrating the anticipation of investment and significant development. However, there are also several, blighting physical barriers which make developing in this area challenging. While there is demonstrated private interest and some concentrated land ownership, there will need to be a partial public acquisition of property for the realization of a coordinated, and cohesive master plan. Concentrated Land Ownership

This plan involves the assembly of land currently in the hands of thirty owners. Despite there being a large number of parcels to acquire into the plan, there are several landowners who own a significant

Land in Public Ownership

portion of the land. (shown below) This signifies that partnerships may be formed to realize this cohesive plan. The Redevelopment Authority

The RDA’s involvement will be needed for acquiring properties especially in phase I. Currently, the land directly surrounding Girard Station and lying south along Front Street stands as the most significant barrier to the scheme. Alternatively, large property owners can become partners in the master development agreement, especially in Phase II. The obstacles to development in this area are the significant amount of land to be acquired, rising land prices, and blighting structures that discourage development on available parcels The responses to these issues can be: • The RDA should acquire at fair market value, assemble, and convey the land to the master developer for phase 1 • The city will writedown the cost of their land in the development or a total of 2.24 acres. • Other significant land owners, such as Core Equity and GR Partners II LP will become partners in a master development agreement.

Current Land Ownership by Total Area

Girard A venue

10.84% Frankford Ave.

2nd St.

G R Partners II L P 44.1% Other Owners

17.8% City of

De law ar eA ve n

Philadelphia

27.43% Core Equity

150

1/4 Mile

PUBLIC & PRIVATE FUNDING SOURCES

Public and Private Funding Sources

Affordable Housing

Public funding will help address the development challenges that exist to developing meaningful transit oriented development at Girard Station. This development is expected to be able to support 70% private financing through traditional commercial lending sources, as well as institutional and equity investors. However, it will also require a 10% subsidy from the city of Philadelphia for a total of about $27.3 million dollars. Out of a total development cost of $285 million, this represents less than 10% of total costs. The public funding sources from the city of Philadelphia fall in three categories: infrastructure, land and the construction of other public amenities such as a new community center. In addition, construction will require federal level sources in the form of low income housing tax credits.

Another 20% of the total development cost will need to be covered by low income housing tax credit financing. This development has devoted a large percentage, 32%, of its program to the construction of affordable housing. Constructing affordable housing was intended to fulfill the demand that exists in the area as well as a create a mixed income housing environment at Canal Square. This program was programmed to deliver 690 units over a ten year period and will require an estimated $67 million of Low Income Housing Tax Credits for realization. Currently, Pennsylvania receives about $27 million in LIHTC from the federal government according to its 2011 allocation. Although this a large proportion of funding dependent on to low income housing tax credits, funding for projects will be allocated separately as developers pursue affordable housing construction. Due to Philadelphiaâ&#x20AC;&#x2122;s high construction costs, developers will also likely need to pursue other gap funding and low cost financing available through the Pennsylvania Housing Finance Agency (PHFA).

Infrastructure Funding

The largest portion of this subsidy is composed of the cost of construction for the public spaces, which will be realized over the first two phases. Although it represents a significant cost, $18 million, this infrastructure is necessary for providing the right conditions for private development and mitigating the impact of significant barriers such as the Market Frankford Line. Land Subsidy

A small subsidy, in the form of a donation of cityowned land to the master developer, will also help mitigate costs. The city will recoup the cost of this land in the form of tax revenues to follow.

Although a key goal is building a mixed income development, the proportion of affordable housing provided may be reassessed as funding challenges arise or market conditions shift. Currently, the combination of only moderate housing demand and anticipated supply from the Piazza at Schmidts Phase II requires a buildout of a majority share of affordable housing. The program may be reassessed after phase I as the economic climate shifts.

Public Amenities

Finally, the creation of a new consolidated community center for Northern Liberties and Fishtown will require $8 million in public funding. However, this will round out phase II; the total amount of public funding will not all be required up front.

151

PHASING

2011

Land Acquisition/Approvals

2013

Phase 1: The Station

2018

Phase 2 The Shops

2022

Phase 3 The Pass

3 2

I-95 complete

Canal Square will be constructed over three phases based on available demand as well as physical constraints. Phased construction will begin in 2013, following a two-year period of land acquisition, permitting and zoning approvals, and is estimated to be complete after the reconstruction of I-95 ends. The impact of such a major public works project as the I-95 reconstruction will significantly impact the construction timeline, especially what can be built adjacent to the highway over the next ten to twelve years. PennDOT plans to completely rebuild the elevated interstate between Center City and Northeast Philadelphia over the next decade through 2022. Phase I will begin in 2013 and focus on the blocks directly south of Girard Station at The Station at Canal Square. This phase will enhance the built environment surrounding Girard Station as well as the area along Front Street moving south towards the Shops at Canal Square to follow. In addition, it will add a new community of residents as well as concentration of neighborhood retail to the area. 152

Phase II will focus on the area south of I- 95 and will be completed alongside highway reconstruction. This phase will bring the major retail anchors in the program online as well as several mixed use and residential buildings. This phase will also realize the southern portion of Canal Walk which will eventually connect to hardscaping running down Front Street. Finally, two parking garages will be constructed providing the infrastructure necessary for a successful mixed use and multimodal environment. Phase III largely involves the construction of The Pass at Canal Square, the master planâ&#x20AC;&#x2122;s major recreational and open space component. Located in part underneath the highway, this program will be completed following I-95 completion from 2022 through 2025. With the addition of a full program of public space, Canal Square will have a complete connection from the Station down Front Street, under I-95, to the Shops at Canal Square. At completion, Canal Square will be a cohesive development offering the amenities and destinations critical for attracting residents and visitors alike.

FINANCIAL SUMMARY

The total development cost for all phases of Canal Square is approximately $254 million. The specific product type mix is selected to accomplish three goals: enhance and improve the connection between the Northern Liberties and Fishtown, create a vibrant street wall with ample retail establishments such as restaurants and boutiques, and thirdly provide affordable and workforce housing for a mix of residents to experience and live in the new development. According to these goals, a program mix containing 32% of buildable area for affordable housing was selected to achieve the goal of maintaining affordable living space in proximity to transit. In addition, the Piazza at Schmidts is planning to bring on 400 new marketrate apartment units over the next five years which will likely absorb all demand for market-rate rental housing. By offering such a large percentage of affordable, Canal Square maintains affordability as prices rise and limits commute times for working residents in and around the area. While there is a large portion of affordable housing, 21% of total square footage is allocated towards market-rate rental in order to create a mixed-income community for all age cohorts. Retail is also a major component comprising 21% of the total square footage. Since many of the large format retailers will still have large parking requirements, 21% of the square footage is allocated towards parking to meet these stringent requirements. The office component of the development while small, is important to maintaining daily traffic for the retail establishments along the new development. Market-rate, for sale housing was not focused on due to the complex nature of individual land assemblage and the inability to add density through single-family row home construction. Therefore, this product type will be left to small developers to build off the future success of Canal Square. Total development square footage is approximately 1.8 million over the two phases. While this is a significant investment, a large-scale developer will be able to phase the development in such a manner to experience strong absorption paces as the development is built-out. The amount of square footage required to build this product will take time and a diligent partnership between the City of Philadelphia and a master developer. The Cost summary is very similar to the square footage breakdown for obvious reasons. As seen, the affordable housing component comprising 44.51% of total development costs is the largest component of cost. This number includes an additional $67 million in Low Income Housing Tax Credits which inflates the percentage. However, building this amount of affordable housing it will take a significant public and private investment. All other costs are similar to the square footage costs. The residential breakdown by absolute cost is as follows: market-rate rental housing will cost approximately $27.7 million, for-sale housing $2.7 million, affordable rental housing $113 million. The office component will cost $11 million, retail $50 million and the structured parking decks $43 million. In summary, this development will require patient capital from institutional lenders in addition to equity sources looking to harvest returns over a 10 to 15 year time period. 153

FINANCIAL SUMMARY

Cost

Office

Cost

Value

For Sale Market Rate

Cost

Value

Rental Market Rate

Cost Summary: Build Out

Office 5%

Cost

Value

$48.3 M

Cost

Affordable

Value

Cost

Market Rate For-Sale 1%

Office 4%

Market Rate For-Sale 1%

Parking 21% Market Rate Rental 21%

Affordable Housing 44.51%

This development totals 1.8 million square feet at buildout over two phses, 2013-2022

154

Value

Parking

Retail

Development Summary: Build Out

Market Rate Rental 10.91%

Parking 19%

Retail 20%

$51.1 M

$102 M $50.8 M

$34.0 M

$27.5 M

Value

$3.4 M

$2.7 M

$11.4 M

$30.4 M

$113 M

$126 M

Development Cost and Value in Year 2022

Retail 21% Affordable Housing 32%

This development totals 1.8 million square feet at buildout over two phses, 2013-2022

PUBLIC BENEFIT ANALYSIS

Canal Square can realize significant benefits for the city in terms of increased tax revenue as well as non-monetary public benefits. A subsidy of $27.3 million and political support from the city can help realize a project that will offer additional tax revenue, public goods such as additional open space and a community center, and job creation. Using estimates of fiscal impact including projected revenues and expenses for the city of Philadelphia, this development will have a value of $22 million at the start of the project in 2013 just through buildout of phase II in 2022.

$27.3 million subsidy will help realize significant public benefit

The construction of about 840 residential units and about a half million square feet of commercial development will bring new residents and employers to the area. The residential portion will bring 1,700 new residents to the area, increasing transit use and supporting the retail and services on site. In addition, this commercial development will create an estimated 1,000 new jobs. This development is estimated to produce about $1.8 million in additional expenses based on an estimate that 20% of residents will be new residents in Philadelphia and about half will add at least one student to the Philadelphia school system. This development will increase tax revenue and justify a city investment. Including just tax revenues such as sales, real estate and wage taxes, it has a value of about $24 million today based on the taxes that are estimated through build out in 2022. Beyond phase II, it will more than pay back this public investment. By 2022, it can be expected to generate at least 7 million in annual tax revenue to the city of Philadelphia. Since this development is more than 53% residential, the removal of the current 10year tax abatement can expect to increase revenue as well. This project justifies a city investment through financial returns as well as non-monetary public benefits. This program will create about 180,000 square feet of new public space, including outdoor recreation facilities. Canal Square will also feature a new 54,000 community center that replaces outdated facilities in Northern Liberties and Fishtown. Finally, this development will concentrate and draw growth to an area of existing rich infrastructure and transit accessibility proving its benefit to the city as well as the region.

180,000 square feet of new open space

54,000 square feet community center

DEVELOPMENT IMPACT

Future Tax Generation Annual Tax Revenue (2022) Jobs Created Residents

$23.6 million $8.3 million 989 jobs 1,684

2022

2011 989+ mew long term jobs

155

TRANSPORTATION OVERVIEW

Canal Squareâ&#x20AC;&#x2122;s goal is to establish a development which is not merely transit adjacent but transit oriented. Building off of existing transit will allow Canal Square to feature less parking and stimulate higher transit ridership and walking. To become a true transit oriented development a number of steps need to be taken. One major step is to institute policies and incentives to encourage transit use and discourage driving. Any development should strive to improve the transit experience by investing in Girard Station, trolley stops and the surrounding public realm. Estimating Transportation Impacts The first step in estimating transportation impacts is to project how many trips Canal Square will generate daily. To do so we categorized the program by land use and trip type. The San Diego Land Development Code Trip Generation Manual provides trip generation rates by land use type. For example, residential units are divided into three categories: Affordable Multi-Family, Market Rate Multi-Family and Market Rate Single-Family. For each residential type we calculated the number of trips generated per day, assigning 20% of those trips as work based and 80% as non work based.

Similar to residential development, we categorized commercial development by land use, and divided trips by primary and secondary market area. For shopping trips originating in the primary trade area we assumed a high rate of trips would be unlinked, meaning shoppers would make individual trips to one type of business like Trader Joes or a restaurant. For trips originating in the secondary market, we assumed all trips were linked trips that result in shoppers making one trip which includes many type of commercial uses. The next step in estimating transportation impacts involved forecasting mode choice by category. Unlike trip generation this step is much less straightforward and relies on precedents set by other locations with similar characteristics. For example, to derive the percentage of affordable housing work trips by transit, analysis was used of census data in neighborhoods with similar transit access and income characteristics. The results of this transportation impact analysis were compared against a suburban scenario that assumes 100% auto usage and a high rate of linked trips. When compared to the baseline scenario, Canal Square produces more trips, but less then half of all trips to the development are by car.

Transit Study

As a suburban-model development, Canal Square would produce around ....

This urban design, transit access and TDM strategy allow reduces auto trips by 45% ...

....28,000 daily auto trips 15,000 daily auto trips = 1,000 trips

156

9,000 daily transit trips

10,000 daily bike/ped trips

PARKING

The transportation impact analysis guided the amount of parking proposed at Canal Square. For residential and office parking, the rates are conservative estimates based on the number of daily auto based work trips. For residential parking we propose 0.7 parking spaces per unit. For commercial development we assume 0.25 parking spaces per 1000 square feet of office space. Low parking ratios for offices reflect that the Canal Squareâ&#x20AC;&#x2122;s only office building is adjacent to the El station and many workers will likely live in the surrounding neighborhood of Northern Liberties and Fishtown. Parking rates for the retail portion of the development are based off of peak parking demands. Separated by type of retail land use, the San Diego Trip Generation Manual estimates the proportion of daily trips that occur in the peak hour. Retail parking rates are capped at the average daily peak rate which contrasts to traditional auto oriented development that build for annual peak demands. This parking analysis estimates the need for 2.3 parking spaces per 1000 square feet of retail.

Location of Parking

Canal Square will provide 57% less parking than a traditional auto oriented development of the same size. To achieve low parking ratios, property owners must implement a number of incentives to promote alternative transportation modes. Parking Study

A suburban model development the size of Canal Square would need...

around 3,600 parking spaces

By leveraging access to transit, creating a walkable urban environment, and providing incentives not to drive, parking is reduced 57%...

to 1,600 parking spaces

= 100 spaces

157

TRANSPORTATION DEMAND MANAGEMENT (TDM)

Residents and Employee TDM

To reduce the demand for automobile access, the developer and employees can implement a number of TDM practices. The most effective tool is to charge for all parking on site. To limit the spillover effect of parking onto adjacent neighborhoods, Canal Square will exclude itself from the surrounding residential parking permit zone. None of the units will provide free parking. For employees and residents who choose not to purchase a parking space, the developer or employers can provide a number of incentives. Reduced transit fare passes and convenient car share passes can make going car-free easier. Employers might consider providing a guaranteed ride home; if employees miss their last train, the employer can cover the cost of travel home.

Providing on-site car share spaces provides new mobility options for residents and workers

Retail TDM

A number of strategies can reduce the amount of parking needed by retailers. Shared parking facilities create added efficiency by removing the need for many smaller and less well utilized lots. Digital parking information boards and sensors can tell drivers where the nearest parking space is available within the retail core.

Providing bicycle infrastructure is another TDM strategy

Most retail developments plan parking for their busiest days a year. Such a strategy means that most parking is unused most of the time. By planning for average peak demand, retailers can dramatically reduce their parking needs. A number of incentive programs can make traveling to the site by alternative means easier, reducing the parking burden during busy shopping periods. Retailers could provide transit vouchers and a free shuttle to major destinations like Center City. Free delivery would allow those purchasing larger goods to come by transit and not worry about the hassle of hauling their big purchases home. While these incentive programs cost retailers money, the costs saved by not building additional parking would help offset some or all these costs. Moreover up to date parking information would make finding a parking spot easier, ensuring that this developmentâ&#x20AC;&#x2122;s garages do not appear to be full when in fact large parts of them are unused.

Smart parking technologies can let dirvers quickly find availavble parking spaces

Shuttle buses can help reduce peak parking demands

158

STATION AREA IMPROVEMENTS

Improving transit facilities can also help make the make the Canal Square transit oriented. Girard Station is a major transit hub but the facilities on the platform and the street are unpleasant and poorly connected to one another. At the street level new platforms along the route 15 line will create a pleasant environment to wait. Ticket Vending Machines (TVMs) will allow riders to pre-purchase their fair, speeding boarding times. Signage and paving patterns on the sidewalk will help draw users up into the El station. The station itself will receive an upgrade. New signage, lighting, public art and seating will improve the ridership experience. Any future renovation of Girard Station should include a direct platform connection between the trolley platforms and elevated station. Trolley Spur Loop

The construction of a trolley spur from Girard Avenue to Delaware Avenue, allows SEPTA to run trolleys to the heart of the Canal Square development. It is recommended that the authority

stengthen the transit connections at Frankford and Delaware Avenue by making it a transfer point between the Route 15 trolley and Route 25 and 43 buses. Trifecta of Transit

While Girard Station is the primary gateway to the development, the TOD will also orient itself to the Route 15 spur terminus at Laurel and Frankford Avenues and the Spring Garden MFL station. With future residential development planned for the sites south of Canal Square, pedestrians will have a continuous urban experience from Spring Garden Station to Girard Station at project completion. The entire development site places one no further than a 10 minute walk from either station. This proposal recommends that SEPTA continues to run some route 15 trolleys to the Frankford Spur after the I-95 reconstruction is completed. The new terminus, enhanced by a proposed transit hub, will provide a convenient ride half way between the two El stations.

Girard Station

1/4 mile to trolley loop

1/3 mile to MFL station

Delaware Avenue Trolley Loop

Spring Garden Station Proposed Station Circulation at Girard

Rail Transit Coverage around Canal Square

159

CONCLUSION

Unique, inspiring, catalyzing, and authentic, Canal Square is a model for 21st century urban infill development in the City of Philadelphia. From preserving the urban street wall along Front St. to the vibrant excitement of visitors experiencing Canal Walk for the first time, Canal Square is grounded in the authenticity of the community and enhances the experience by a power of two. At the same time that Philadelphia continues to grow and adapt in a positive way, Canal Square can be a catalytic development example of adaptive reuse for the entire country. The unique urban fabric coupled with smart design and the latest green building and healthy living techniques provides residents and visitors alike an unsurpassed experience. As Northern Liberties and Fishtown continue to adapt and grow in prominence, Canal Square will be at the convergence of attractive neighborhoods and benefit from enhanced connectivity from walking to public transit. Canal Square is a development but an experience for residents to adapt their lifestyles and make healthy living choices. It is also a destination for visitors to experience the best of authentic Philadelphia through shopping, dining and R2 + R3 + R5

Fern Rock

MFL

entertainment experiences unsurpassed in the region. Canal Square will truly be

Frankford Trans. Center

a unique development for all of Philadelphians to experience and celebrate. Wayne Junction

Overbrook

Alleghany Ave.

East Falls Riverline

Trolley 63rd Street

Girard Station

Haverford Ave.

36 Street Camden

16th Street Collingswood

University City

Baltimore Ave/ 44th Street Angora

BSL

Sport Complex

Southwest Phila

160

Airport

PATCO

161

IMAGE CITATION

INTRODUCTION TO CANAL SQUARE Outdoor Walk

http://www.citypass.com/blog/philadelphia/it%E2%80%99s-always-happening-in-philadelphia/

Site Plan Image

Adam Tecza

Apartments Building

http://www.flickr.com/photos/stehouwerrecio/4528234009/

Walkway Perspective

Andrew Zalewski

NEIGHBORHOOD CHARACTERISTICS Fishtown Skyline

http://www.acontinuouslean.com/2009/02/18/a-guide-to-fishtown-philadelphia-usa/

Fishtown Trolly

http://www.martinbuday.com/3rdscroll.html

Gallery

http://www.uwishunu.com/2011/02/fishtowns-highwire-gallery-presents-mixed-media-exhibit-the-love-show-now-through-february-25/

Modern Architecture

www.paulloftland.com/2/Image

Nightlife

http://www.citypass.com/blog/philadelphia/it%E2%80%99s-always-happening-in-philadelphia/

The Piazza

http://www.philadelphiaspeaks.com/forum/fishtown-northern-liberties-kensington-portrichmond/3561-watching-phillies-piazza.html

Delaware Waterfrton

http://www.therealpotato.com/

HISTORIC CANAL Hexamer & Locher Historic Map

http://libwww.freelibrary.org/collections/collectionDetail.cfm?id=16

Canal Present Day 1-4

Andrew Zalewski

HISTORY Schmidtâ&#x20AC;&#x2122;s Brewery Historic

http://badluckcity.wordpress.com/2010/03/17/philly-beer-history-for-sale/

Front St Industrial

Andrew Zalweski

SugarHouse Casino

http://activerain.com/blogsview/2245080/a-win-for-safety-at-sugarhouse-casino

NEW DEVELOPMENT Pathmark - N. Liberties

http://www.flickr.com/photos/eskepe/4932721837/

Infill Development

Adnrew Zalewski

Birds eye Casino

http://ilovebricks.blogspot.com/2009_09_01_archive.html

HOUSING ANALYSIS

162

The Piazza Apartments

Andrew Zalewski

Rowhomes

http://pomfretgrade5.wikispaces.com/row+house

Market Rate Rentals

http://www.homesteadcap.com/projects_description.asp?projectnumber=OR2004-002

Affordable Rentals

http://evstudio.wordpress.com/2008/10/19/englewood-senior-affordable-housing/

LOCAL RETAIL ANALYSIS General Merchandise

http://demianrepucci.com/2009/10/01/gagosian-shop-t-shirts-and-pop-art/

Hobby, Book and Art

http://www.shopmacarthur.com/directory/fye

Florists

http://www.pearsonsflorist.com.au/ContactUs/StoreLocations.aspx

Health and Personal

http://laist.com/2009/12/22/great_gift_idea_group_yoga_at_home.php

REGIONAL RETAIL ANALYSIS REI

http://boomers.typepad.com/boomers/2008/07/rei-authenticit.html

Stationary and Gift

http://www.magnetreps.com/wp/date/2009/02

Electronics

http://www.yoursn0w.com/2011/03/21/best-buy-bringing-ipad-2-to-canada-this-friday-at10am-no-pre-orders/

Restaurant

http://www.flickr.com/photos/glowbalcollection/3994267372/

ALTERNATIVE RETAIL POTENTIAL GIS Map

Allison Baumann

Art Gallery

http://www.uwishunu.com/2011/03/gallery-night-returns-april-15-free-late-night-access-toart-galleries-across-the-city/

Highwire Gallery

http://frankfordavearts.org/?tag=galleries

Coral Street Arts

www.flickr.com/photos/lisc/3451231398/

CASE STUDES Crane Arts Building

http://www.cranearts.com/?page_id=53

Studio Space

http://www.wheaton.edu/art/adamshall/sculpture.html

Fruitvale Village 1

http://www.fta.dot.gov/publications/about_FTA_10995.html

Fruitvale Village 2

http://www.housingpolicy.org/gallery/entries/Fruitvale_Village.html

Colombia Heights 1

http://the42bus.blogspot.com/2010/07/dc-home-target-costo-and-walmart.html

Colombia Heights 2

http://www.soulstrut.com/index.php/forums/viewthread/66840/P60/#933098

Rockville Town Square

http://www.cooltownstudios.com/2008/02/27/cnus-placemaking-2008-charter-awardsannounced

Rockville Retail

http://www.terrain.org/unsprawl/27/

Queensburough Bridge

http://photos.stevengpeterson.com/2011/02/25/queensboro-bridge-food-emporium/

Bridge

http://www.city-data.com/forum/louisville-area/232504-louisville-photo-sticky-9.html

Skate Park

http://www.nydailynews.com/topics/Adrian+Benepe/photos

NYC Active Design Guidelines

http://www.nyc.gov/html/ddc/html/design/active_design.shtml

163

DEVELOPMENT PRINCIPLES Community Connections

http://www.flickr.com/photos/cameragirl/392479146/

Regional Node

http://dailyphotoparis.blogspot.com/2010/12/bercy-village.html

Existing Nodes

http://cooltownplaces.com/?bentry=the-piazza-in-philly

Diverse Community

http://www.movoto.com/real-estate/homes-for-sale/CA/Oakland/200-2nd-St-12_40370584. htm

Healthy Living

http://www.tipsonhealthyliving.com/green-living/simple-steps-to-save-energy-and-moneyat-home

Gathering Places

http://www.ozarch.com/main/do/Portfolio/pcid/190

CANAL SQUARE Architecture

http://www10.aeccafe.com/blogs/arch-showcase/2011/04/15/thin-flats-in-northern-libertiesphiladelphia-by-plumbob-llc/

Front Street Perspective

Andrew Zalewski

Canal Square

Adam Tecza

Flower Park

http://www.fastcodesign.com/1661922/how-to-revitalize-a-highway-underpass-hint-turn-itinto-munchkinland

FINANCIAL SUMMARY Pathmark - N. Liberties

http://www.flickr.com/photos/eskepe/4932721837/

Infill Development

Adnrew Zalewski

Birds eye Casino

http://ilovebricks.blogspot.com/2009_09_01_archive.html

Transportation (TDM)

164

Parking

http://thingsthatarerectangles.wordpress.com/2010/02/12/79-parking-spaces/

Bikes

http://www.flickr.com/photos/rllayman/3452936864/

Parking Lots

http://www.popularmechanics.com/cars/news/pictures/worlds-strangest-parking-garages

Mass Transit

http://www.dc.gov/DC/DDOT/On+Your+Street/Mass+Transit+in+DC/DC+Circulator/ DC+Circulator

165

APPENDIX: Wayne Junction Economic and demographic Data Retail Demand & Supply Analysis Pro Forma Pro Forma Program Details Wind Feasibility Analysis Total Fiscal Impact Commercial Fiscal Impact Residential Fiscal Impact Transit Competitive Study

168

169

2000 27,545 2,213 2,651 2,491 1,330 2,540 3,698 4,050 3,566 2,331 1,595 851 229

2000 162

2000 514 12,543 91 176 170

2000 13,494 1,517,550

8.00% 9.60% 9.00% 4.80% 9.20% 13.40% 14.70% 13.00% 8.50% 5.80% 3.10% 0.80%

2010 315

2010 341 11,917 19 164 263

2009 25,345 2,437 9.60% 1,564 6.20% 2,097 8.30% 1,275 5.00% 2,393 9.40% 3,285 13.00% 3,206 12.70% 3,887 15.30% 2,616 10.30% 1,472 5.80% 813 3.20% 300 1.20%

2015 361

2015 290 11,697 17 178 296

2010 2015 12,704 12,478 1,493,866 1,486,767

Source: Census 2000, ACS 2005-2009 Estimate

Age (Detail) Total Population: Under 5 Years 5 to 9 Years 10 to 14 Years 15 to 17 Years 18 to 24 Years 25 to 34 Years 35 to 44 Years 45 to 54 Years 55 to 64 Years 65 to 74 Years 75 to 84 Years 85 Years and over

Source: Policy Map

Ethnicity Hispanic

Race White Black/African-American Asian Other Two or More

Source: Policy Map

Population Wayne Junction Philadelphia

ECONOMICS & DEMOGRAPHICS

Economic and demographic Data

Source: Census 2000, ACS 2005-2009 Estimates

Wayne Junction Median HH Income Average HH Income Per capita income

2000 $25,932 $37,309 $13,935

2009 $27,624 $38,794 $16,074

% of HHs 8943% 6851% 4240% 4270% 857%

# of HHs 208,472 159,707 98,837 99,533 19,978 586,527

Philadelphia Income (2010) Less than $25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $150,000 More than $150,000 TOTAL Source: Census 2000, Policy Map

% of HHs 85% 54% 34% 26% 4%

# of HHs 1,884 1,200 760 585 81 4,510

WJ Income (2010) Less than $25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $150,000 More than $150,000 TOTAL

Source: Policy Map

Employment by Industry Management of Companies & Enterprises Agriculture, Forestry, Fishing and Hunting Information Arts, Entertainment, and Recreation Wholesale Trade Professional, Scientific, & Technical Services Admin & Support & Waste Management Services Construction Other Services Manufacturing Public Administration FIRE/Leasing Accommodation/Food Services Retail Trade Educational Service Transportation/Warehousing/Utilities Health Care & Social Assistance

Source: Census 2000, ACS 2005-2009 Estimate

Educational Attainment Population 25 years and over: Less Than High School High School Graduate Some college Bachelor's degree Graduate degree

0 2 41 69 85 107 170 190 201 277 312 323 355 357 416 429 1,068

2000

16,554 5,240 5,605 4,061 946 702

0% 0% 1% 2% 2% 2% 4% 4% 5% 6% 7% 7% 8% 8% 9% 10% 24%

32% 34% 25% 6% 4%

2009 15,579 3,486 6,389 3,892 1,311 501

22% 41% 25% 8% 3%

170

Population Persons per HH

Population Projection

HH Avg. HH Income Total Personal Income ($000s)

Trade Area

4411 Automobile dealers 4412 Other motor vehicle dealers 4413 Automotive parts, accessories, and tire stores 4421 Furniture stores 4422 Home furnishings stores 4431 Electronics and appliance stores 4441 Building material and supplies dealers 4442 Lawn and garden equipment and supplies stores 4451 Grocery stores 4452 Specialty food stores 4453 Beer, wine, and liquor stores 4461 Health and personal care stores 4471 Gasoline stations 4481 Clothing stores 4482 Shoe stores 4483 Jewelry, luggage, and leather goods stores 4511 Sporting goods, hobby, and musical instrument stores 4512 Book, periodical, and music stores 4521 Department stores 4529 Other general merchandise stores 4531 Florists 4532 Office supplies, stationery, and gift stores 4533 Used merchandise stores 4539 Other miscellaneous store retailers 4541 Electronic shopping and mail-order houses 4542 Vending machine operators 4543 Direct selling establishments 7212 RV (recreational vehicle) parks and recreational camps 7221 Full-service restaurants 7222 Limited-service eating places 7223 Special food services 7224 Drinking places (alcoholic beverages)

Retail Type (by NAICS category)

2015 54,421 2.68

2010

7,064 333 2,122 2,759 2,160 7,232 17,546 1,600 54,004 2,442 6,523 26,486 28,366 7,788 1,312 1,509 2,601 1,131 6,481 11,549 672 1,948 323 2,079 5,278 68 757 27 8,063 9,543 3,194 1,321

-1.99% 0.00% -1.99%

2009 - 2015 %

7,207 340 2,165 2,815 2,204 7,379 17,902 1,632 55,101 2,491 6,655 27,023 28,942 7,946 1,338 1,539 2,654 1,154 6,613 11,783 685 1,988 329 2,121 5,385 70 773 27 8,227 9,737 3,258 1,348

20,279 -412 $38,794 $0 $786,713 -$15,974

2015

10.00% 10.00% 50.00% 50.00% 50.00% 75.00% 75.00% 75.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 50.00% 50.00% 50.00% 50.00% 25.00% 100.00% 100.00% 50.00% 50.00% 50.00% 10.00% 10.00% 10.00% 10.00% 50.00% 75.00% 50.00% 75.00%

Expenditure Potential Resident Capture 2009 2015 ($000s) ($000s)

55,526 2.68

20,691 $38,794 $802,687

2009

8.98% 0.42% 0.54% 0.70% 0.55% 1.23% 2.97% 0.27% 6.86% 0.31% 0.83% 3.37% 3.61% 1.98% 0.33% 0.38% 0.66% 0.29% 3.30% 1.47% 0.09% 0.50% 0.08% 0.53% 6.71% 0.09% 0.96% 0.03% 2.05% 1.62% 0.81% 0.22%

% of GPI

Retail Demand & Supply Analysis

RETAIL DEMAND & SUPPLY ANALYSIS

Retail Type (by NAICS category)

(84,998) (1,112) (565) (3,917) (15,876) (1,771) 2,442 1,632 (4,046) (2,547) 4,071 11,737 13,166 (3,404) 1,194 (127) 901 (1,299) 781 8,725 (1,427) (6,201) (5,428) (1,279) 5,385 70 773 27 (26,725) 3,753 2,348 (4,883)

($000s)

Under / Over Supply

(25,350) (5,744) (6,205) (7,742) (18,960) (7,259) 8,154 (13,044) (22,535) 7,878 32,309 14,604 (9,886) 62,200 (760) 11,525 (11,837) 66,934 71,332 (11,400) (13,781) (48,367) (7,139) (383,188) 65,161 19,355 (51,666)

Sq. Ft.

Current Potential

(25,393) (5,779) (6,678) (7,853) (19,013) (7,861) 6,964 (16,579) (22,974) 7,621 30,829 13,965 (10,345) 60,813 (944) 10,850 (12,046) 55,652 69,415 (11,509) (13,869) (48,425) (7,374) (385,536) 61,797 18,821 (51,950)

Sq. Ft.

2015 Potential

171

Unlevered IRR Levered IRR

Returns Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

Financing Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

$ $ $ $

$ 27.5 $ 35% 15%

$ 9% $ $ $ 6.00% $ 30 0.0726 1.2 5% $

90%

158

227 850 1,500 2% 90% 25% 3%

56,869 214,024 10% 192,622

Residential

Development Costs Hard Costs $ Soft Costs Land Costs $ Total Development Costs

Revenue Total Units/Space Average Unit Size Average Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

Total Parcel (SF) Gross Buildable Area (SF) Common Area Net Leasable Area (SF)

Pro Forma Summary

9% 17%

(835,332) 271,638

2,064,291

37,157,244 3,344,152 4,128,583 44,629,979 36,321,912

33,815,792 4,057,895 3,412,140 41,285,827 $

$ 27.5 $ 35% 15%

$ 9% $ $ $ 6.00% $ 30 0.0726 1.3 74% $

90%

158 $ 25% $ 40 $ $

224 850 831 2% 95% 45% 3%

70,404 211,212 10% 190,091

5% 17%

(26,117,591) 405,783

32,729,940

40,077,477 3,606,973 1,447,678 48,137,503 13,959,886

33,371,496 8,342,874 2,816,160 44,530,530

Residential (Affordable)

Retail

2,622,601

15,735,604 1,573,560 1,748,400 19,057,565 14,467,976

9% 16%

$ (1,267,628) 31 $ 150,261 35% 15% 9%

$ 10% $ $ $ 7.00% $ 30 0.0806 1.3 15% $

90%

112 $ 12,825,904 10% $ 1,282,590 30 $ 3,375,510 $ 17,484,004

1.70 1% 85% 30% 3%

114,517

112,517 114,517 0% 114,517

3,081,174

13,865,281 1,386,528 1,540,587 16,792,396 12,066,495

9% 17%

$ (1,798,786) 31 $ 77,919 35% 15% 8%

90% $ 10% $ $ $ 6.00% $ 30 0.0726 1.2 20% $

170 $ 12,990,380 10% $ 1,299,038 75 $ 1,116,450 $ 15,405,868

1.80 2% 90% 30% 3%

68,773

14,886 76,414 10% 68,773

Commercial

$ 31 $ 35% 15% 0

90% $ 10% $ $ $ 6.00% $ 30 0.0726 1.2 42% $

133 $ 5% $ 10 $ $

1.00 1% 90% 35% 3%

26,468

6,617 26,468 0% 26,468

Industrial

8% 16%

(1,050,581) 7,812

1,580,219

3,386,184 338,618 376,243 4,101,045 2,335,603

3,520,244 176,012 66,170 3,762,426 $

8% 14%

$ (279,987) 31 $ 2,769 35% 15% 0 8%

90% $ $ 1,622,286 9% $ 146,006 $ 180,254 $ 1,948,546 6.00% $ 1,342,299 30 0.0726 1.2 25% $ 450,635

45 $ 1,716,705 5% $ 85,835 $ $ 1,802,540

0.60 1% 55% 30% 3%

38,149

38,149 0% 38,149

Parking

$ $ $ $

5% 17%

42,528,861

111,844,076 10,395,838 9,421,744 134,667,033 80,494,171

98,241,297 15,244,245 10,786,645 124,271,196

630,619

261,293 680,784

TOTAL

172

(835,332) 271,638

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

Total Project Cost Permanent Loan Term Mortgage Constant DSCR LIHTC Equity Other Equity

Construction LTC Construction Loan Construction Interest

Financing Hard Costs Soft Costs Land Costs Total Development Costs

Revenue Total Units Average Unit Size Average Monthly Rent Rent Growth Occupancy OpEx Ratio (% of GPI) OpEx Growth

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

$ (26,117,591) 27.5 $ 405,783 35% 15% 7%

$ 48,137,503 6.00% $ 13,959,886 30 0.0726 1.3 74% $ 32,729,940 $ 1,447,678

$ 40,077,477 9% $ 3,606,973

90%

$158 $ 33,371,496 25% $ 8,342,874 $40 $ 2,816,160 $ 44,530,530

224 850 831 2% 95% 45% 3%

70,404 211,212 10% 190,091

2,753,356

3,671,141 917,785

Annual Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR

1,165,228

2,118,596 953,368

Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR 17%

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 5%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

(20,642,914) (20,642,914)

-1

2,064,291 (20,642,914) (18,578,622)

-1

(26,117,591) $ (4,030,013) $ (4,030,013) (4,030,013) 2,582,335

32,729,940 (22,265,265) 10,464,675

(1,014,171) (176,577) (837,593) 13,606,731 330,620

304,251

1,344,790

2,204,187 991,884 132,487 1,344,790

357,515

(1,014,171) (176,577) (837,593) 13,430,154

1,371,686

2,248,271 1,011,722 135,137 1,371,686

384,949

(1,014,171) (176,577) (837,593) 13,253,576

1,399,120

412,931

(1,014,171) (176,577) (837,593) 13,076,999

1,427,102

3,427,518

4,053,236 1,013,309 387,591 3,427,518

441,474

(1,014,171) (176,577) (837,593) 12,900,422

1,455,644

470,586

(1,014,171) (176,577) (837,593) 12,723,844

1,484,757

2,433,600 1,095,120 146,277 1,484,757

788,771

(2,638,747) (580,023) (2,058,724) 33,732,048

2,385,883 1,073,647 143,409 1,455,644

721,564

(2,638,747) (547,192) (2,091,556) 34,312,071

3,360,312

3,973,761 993,440 379,991 3,360,312

2,339,101 1,052,595 140,597 1,427,102

655,676

(2,638,747) (516,219) (2,122,529) 34,859,262

3,294,423

3,895,844 973,961 372,540 3,294,423

2,293,236 1,031,956 137,840 1,399,120

591,079

527,749

(2,638,747) (486,999) (2,151,749) 35,375,481

3,229,827

3,819,455 954,864 365,235 3,229,827

(2,638,747) (459,433) (2,179,315) 35,862,479

3,166,497

3,744,564 936,141 358,074 3,166,497

(1,014,171) (176,577) (837,593) 13,783,308

1,318,422

2,160,967 972,435 129,890 1,318,422

(835,332) $ (3,736,367) $ (3,736,367) (3,736,367) (2,507,408)

(22,265,265) (22,265,265)

17%

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 9%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

Multi-Family Residential (Affordable) Multi-family Residential (Affordable)

$ 27.5 $ 35% 15%

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

$ 37,157,244 9% $ 3,344,152 $ 4,128,583 $ 44,629,979 6.00% $ 36,321,912 30 0.0726 1.2 5% $ 2,064,291

90%

Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

$158 $ 33,815,792 12% $ 4,057,895 $60 $ 3,412,140 $ 41,285,827

Financing Hard Costs Soft Costs Land Costs Total Development Costs

4050

227 850 1,500 2% 90% 25% 3%

56,869 214,024 10% 192,622

Revenue Total Units Average Unit Size Average Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

Multi-family Residential Multi-Family Residential

Pro Forma Program Details

500,282

(1,014,171) (176,577) (837,593) 12,547,267

1,514,452

2,482,272 1,117,023 149,202 1,514,452

857,321

(2,638,747) (614,825) (2,023,923) 33,117,223

3,496,068

4,134,301 1,033,575 395,343 3,496,068

530,571

(1,014,171) (176,577) (837,593) 12,370,690

1,544,741

2,531,918 1,139,363 152,186 1,544,741

927,242

(2,638,747) (651,714) (1,987,033) 32,465,509

3,565,990

4,216,987 1,054,247 403,249 3,565,990

561,465

(1,014,171) (176,577) (837,593) 12,194,112

1,575,636

2,582,556 1,162,150 155,230 1,575,636

998,562

1,448,814

2,634,207 1,185,393 1,448,814

434,643

1,477,790

2,686,891 1,209,101 1,477,790

463,620

493,176

(1,014,171) (176,577) (837,593) 11,664,380

1,507,346

Sale

523,322

(1,014,171) (176,577) (837,593) 11,487,803

1,537,493

2,795,442 1,257,949 1,537,493

784,705

(2,638,747) (822,774) (1,815,973) 29,443,451

3,423,452

4,564,603 1,141,151 3,423,452

2,740,629 1,233,283 1,507,346

1,145,509

(2,638,747) (776,202) (1,862,546) 30,266,225

3,784,257

4,475,100 1,118,775 427,931 3,784,257

(1,014,171) (176,577) (837,593) 11,840,957

1,071,308

(2,638,747) (732,266) (1,906,482) 31,042,426

3,710,056

4,387,353 1,096,838 419,541 3,710,056

(1,014,171) (176,577) (837,593) 12,017,535

(2,638,747) (690,817) (1,947,931) 31,774,692

3,637,310

4,301,327 1,075,332 411,314 3,637,310

554,072

(1,014,171) (176,577) (837,593) 11,311,225

12,879,468

1,568,243 11,311,225

2,851,351 1,283,108 1,568,243

Sale

21,750,743

(2,638,747) (872,140) (1,766,607) 28,571,310

52,960,801

3,491,921 49,468,880

4,655,895 1,163,974 3,491,921

173

$ 31 $ 35% 15%

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

(1,798,786) 77,919

$ 13,865,281 10% $ 1,386,528 $ 1,540,587 $ 16,792,396 6.00% $ 12,066,495 30 0.0726 1.2 20% $ 3,081,174

90%

$170 $ 12,990,380 10% $ 1,299,038 $75 $ 1,116,450 $ 15,405,868

Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

Financing Hard Costs Soft Costs Land Costs Total Development Costs

1.80 2% 90% 30% 3%

68,773

Revenue Total Space

Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

14,886 (some land included in Retail) 76,414 10% 68,773

(1,267,628) 150,261

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

Commercial Commercial

$ 31 $ 35% 15%

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

$ 15,735,604 10% $ 1,573,560 $ 1,748,400 $ 19,057,565 7.00% $ 14,467,976 30 0.0806 1.3 15% $ 2,622,601

90%

$112 $ 12,825,904 10% $ 1,282,590 $30 $ 3,375,510 $ 17,484,004

Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

Financing Hard Costs Soft Costs Land Costs Total Development Costs

1.70 0.5% 85% 30% 3%

114,517

Revenue Total Space

Average Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

112,517 114,517 0% 114,517

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

Retail Retail

1,390,007

1,985,725 595,717

935,858

1,336,939 401,082

16%

Annual Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR 17%

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 9%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

Annual Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 9%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

2,622,601 (8,742,002) (6,119,402)

3,081,174 (7,702,934) (4,621,760)

(1,798,786) $ (1,463,557) $ (1,463,557) (1,463,557) (181,170)

(7,702,934) (7,702,934)

-1

(1,267,628) $ (1,660,980) $ (1,660,980) (1,660,980) (306,008)

(8,742,002) (8,742,002)

-1

(876,618) (161,786) (714,832) 11,752,082 196,362

175,324

1,072,980

1,390,952 417,286 99,314 1,072,980

(876,618) (152,628) (723,990) 11,913,867

1,051,941

1,363,678 409,103 97,367 1,051,941

357,355

349,777

(1,165,922) (163,885) (1,002,037) 14,150,927

1,523,277

2,005,632 601,690 119,335 1,523,277

(1,165,922) (153,164) (1,012,758) 14,314,812

1,515,699

1,995,653 598,696 118,741 1,515,699

217,822

(876,618) (171,493) (705,125) 11,580,589

1,094,440

1,418,771 425,631 101,300 1,094,440

364,972

(1,165,922) (175,357) (990,565) 13,975,569

1,530,894

2,015,660 604,698 119,932 1,530,894

239,711

(876,618) (181,782) (694,835) 11,398,806

1,116,329

1,447,146 434,144 103,326 1,116,329

372,626

(1,165,922) (187,632) (978,290) 13,787,937

1,538,548

2,025,738 607,721 120,531 1,538,548

262,037

(876,618) (192,689) (683,928) 11,206,117

1,138,655

1,476,089 442,827 105,393 1,138,655

380,319

(1,165,922) (200,767) (965,156) 13,587,170

1,546,241

2,035,867 610,760 121,134 1,546,241

284,810

(876,618) (204,251) (672,367) 11,001,866

1,161,428

1,505,611 451,683 107,501 1,161,428

388,050

(1,165,922) (214,820) (951,102) 13,372,350

1,553,972

2,046,046 613,814 121,740 1,553,972

308,039

(876,618) (216,506) (660,112) 10,785,361

1,184,657

1,535,723 460,717 109,651 1,184,657

395,820

(1,165,922) (229,858) (936,065) 13,142,493

1,561,742

2,056,276 616,883 122,348 1,561,742

331,732

(876,618) (229,496) (647,122) 10,555,864

1,208,350

1,566,438 469,931 111,844 1,208,350

403,628

(1,165,922) (245,948) (919,974) 12,896,545

1,569,551

2,066,558 619,967 122,960 1,569,551

355,899

(876,618) (243,266) (633,352) 10,312,598

1,232,517

1,597,766 479,330 114,081 1,232,517

411,476

(1,165,922) (263,164) (902,758) 12,633,381

1,577,398

2,076,891 623,067 123,575 1,577,398

380,549

(876,618) (257,862) (618,756) 10,054,737

1,257,167

1,629,722 488,916 116,362 1,257,167

419,363

(1,165,922) (281,585) (884,337) 12,351,796

1,585,285

2,087,275 626,183 124,193 1,585,285

287,003

(876,618) (273,334) (603,284) 9,781,403

1,163,621

1,662,316 498,695 1,163,621

302,476

(1,165,922) (301,296) (864,626) 12,050,499

1,468,398

2,097,711 629,313 1,468,398

Sale

Sale 12

4,270,068

(876,618) (289,734) (586,884) 9,491,669

14,638,355

1,186,894 13,451,461

1,695,562 508,669 1,186,894

2,519,250

(1,165,922) (322,387) (843,535) 11,728,112

15,413,284

1,475,740 13,937,544

2,108,200 632,460 1,475,740

174

$ 31 $ 35% 15%

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

$ 10% $ $ $ 6.00% $ 30 0.0726 1.2 42% $

90%

$133 $ 5% $ $10 $ $

Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

Financing Hard Costs Soft Costs Land Costs Total Development Costs

1.00 1% 90% 35% 3%

26,468

Revenue Total Space

Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

6,617 26,468 0% 26,468

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

Industrial

$ 31 $ 35% 15%

Proceeds at Refinance Annual Depreciation Income Tax Capital Gains Tax Exit Cap

$ 9% $ $ $ 6.00% $ 30 0.0726 1.2 25% $

90%

Construction LTC Construction Loan Construction Interest Equity Total Project Cost Permanent Loan Term Mortgage Constant DSCR Tax Credit / Subsidy

$45 $ 5% $ $0 $ $

38,149 85 0.60 1% 55% 30% 3%

Revenue Total Space Number of Spaces Monthly Rent Rent Growth Occupancy OpEx Ratio OpEx Growth

Financing Hard Costs Soft Costs Land Costs Total Development Costs

38,149 0% 38,149

Total Parcel (SF) Gross Buildable Area (SF) Common Area Leasable Area (SF)

Assumptions & Inputs

Parking Parking

(1,050,581) 7,812

1,580,219

3,386,184 338,618 376,243 4,101,045 2,335,603

3,520,244 176,012 66,170 3,762,426

(279,987) 2,769

450,635

1,622,286 146,006 180,254 1,948,546 1,342,299

1,716,705 85,835 1,802,540

105,749

151,070 45,321

185,805

285,854 100,049

14%

Annual Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR 16%

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 8%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

Annual Debt Service Principal Payment Interest Payment Remaining Balance Refinance Proceeds Cash-In Levered Cash Flow Levered IRR

Cash Flow NOI Reversion Proceeds Tax Credit / Subsidy Acquisition & Construction Cost Net Cash Flow (Unlevered) Unlevered IRR 8%

Net Operating Income Gross Revenue Annual OpEx Less Tax Abatement NOI

(357,430) $ (357,430)

(1,881,213) (1,881,213)

-1

(163,130) $ (163,130)

(901,270) (901,270)

-1

(1,050,581) (357,430) 172,208

1,580,219 (1,881,213) (300,994)

(279,987) (163,130) 7,518

450,635 (901,270) (450,635)

33,936

(169,679) (29,543) (140,136) 2,306,060

203,615

288,713 101,050 15,951 203,615

19,503

(97,517) (16,979) (80,538) 1,325,321

117,020

152,581 45,774 10,213 117,020

35,972

(169,679) (31,315) (138,364) 2,274,745

205,651

291,600 102,060 16,111 205,651

20,674

(97,517) (17,997) (79,519) 1,307,323

118,190

154,107 46,232 10,316 118,190

38,028

(169,679) (33,194) (136,485) 2,241,550

207,707

294,516 103,081 16,272 207,707

21,855

(97,517) (19,077) (78,439) 1,288,246

119,372

155,648 46,694 10,419 119,372

40,106

(169,679) (35,186) (134,493) 2,206,364

209,785

297,461 104,111 16,435 209,785

23,049

(97,517) (20,222) (77,295) 1,268,024

120,566

157,204 47,161 10,523 120,566

42,203

(169,679) (37,297) (132,382) 2,169,067

211,882

300,436 105,153 16,599 211,882

24,255

(97,517) (21,435) (76,081) 1,246,589

121,771

158,776 47,633 10,628 121,771

44,322

(169,679) (39,535) (130,144) 2,129,532

214,001

303,440 106,204 16,765 214,001

25,473

(97,517) (22,721) (74,795) 1,223,868

122,989

160,364 48,109 10,734 122,989

46,462

(169,679) (41,907) (127,772) 2,087,625

216,141

306,475 107,266 16,933 216,141

26,702

(97,517) (24,085) (73,432) 1,199,783

124,219

161,968 48,590 10,842 124,219

48,624

(169,679) (44,421) (125,258) 2,043,204

218,303

309,539 108,339 17,102 218,303

27,945

(97,517) (25,530) (71,987) 1,174,254

125,461

163,587 49,076 10,950 125,461

50,807

(169,679) (47,087) (122,592) 1,996,117

220,486

312,635 109,422 17,273 220,486

29,199

(97,517) (27,061) (70,455) 1,147,192

126,716

165,223 49,567 11,060 126,716

53,012

(169,679) (49,912) (119,767) 1,946,205

222,691

315,761 110,516 17,446 222,691

30,466

(97,517) (28,685) (68,832) 1,118,507

127,983

166,875 50,063 11,170 127,983

37,618

(169,679) (52,907) (116,772) 1,893,298

207,297

318,919 111,622 207,297

20,464

(97,517) (30,406) (67,110) 1,088,101

117,981

168,544 50,563 117,981

Sale

Sale 12

179,859

(169,679) (56,081) (113,598) 1,837,217

2,186,755

209,370 1,977,385

322,108 112,738 209,370

231,855

(97,517) (32,230) (65,286) 1,055,871

1,385,243

119,161 1,266,082

170,230 51,069 119,161

175

CO2 1 27,955 27,956

CH4 0.000009 0.437562

N2O 0.000005 0.24309

Project Year Calendar Year Total Revenues Total Operating Costs Operating Income Total Other Expenses After-Tax Profits Total Additions Total Subtractions After-Tax Cash Flow Cumulative After-Tax Cash Flow Payback Boolean Debt Service Coverage Ratio (DSCR)

Wind Pro Forma

WIND ENERGY

-4,956

0 2019

** Calculated using Philadelphia specific Egrid Numbers

1 2020 2,919 615 2,304 6,281 -3,977 4,933 254 702 -4,254 1 1.44

2 2021 2,948 633 2,315 9,178 -6,863 7,847 271 713 -3,541 1 1.45

3 2022 2,978 652 2,325 6,026 -3,701 4,714 290 723 -2,817 1 1.45

4 2023 3,008 672 2,336 4,126 -1,791 2,833 309 734 -2,084 1 1.46

5 2024 3,038 692 2,345 4,105 -1,760 2,833 330 744 -1,340 1 1.46

25 2044 3,707 1,250 2,456 379 2,077 9 1,231 854 15,019 0 1.53

26 2045 3,744 1,288 2,456 295 2,160 9 1,315 854 15,873 0 1.53

27 2046 3,781 1,326 2,455 206 2,249 9 1,404 853 16,726 0 1.53

28 2047 3,819 1,366 2,453 111 2,342 9 1,500 851 17,576 0 1.53

29 2048 3,857 1,407 2,450 9 2,441 9 0 2,450 20,026 0

30 2049 3,896 1,449 2,446 0 2,446 0 0 2,446 22,473 0

* All financials caculated using "WindFinance." Wind Finance Analysis. National Renewable Energy Labroratory. Web. 04 May 2011. <http://analysis.nrel.gov/windfinance/login.asp>.

GHG Calculations** Coefficients Emissions Reductions TOTAL REDUCTION

ANNUAL GREENHOUSE GAS REDUCTION

48,618

15.2 15.2 1.27 1.44 1 1.34 1.5

Target Internal Rate of Return (IRR) (%) Actual IRR (%) Target Minimum Debt Service Coverage Ratio (DSCR) Actual Minimum DSCR Minimum DSCR Year Target Average DSCR Actual Average DSCR

Annual Energy Production (MWh/year)

6.7 4.61 5.14 7 6,050

6 1

Nominal Levelised Cost of Energy (LCOE) (cents/kWh) Real LCOE (start year cents/kWh) Breakeven LCOE (cents/kWh) Payback Period (Years) Net Present Value (start year dollars)

1st Year Energy Payment (cents/kWh) Energy Payment Escalation Rate (%/year)

WIND RESULTS

Wind Feasibility Analysis

WIND ENERGY

176 $ $ $ $ $ $ $ $

Revenue (w/o Tax Abatement) Residential Commercial TOTAL REVENUE

Expenses Municipal Services Maintenance TOTAL EXPENSES

(w/ Tax Abatement) TOTAL NET FISCAL IMPACT

(w/o Tax Abatement) TOTAL NET FISCAL IMPACT

33,000,000 32% 9% $900,000 100 3,000,000 3.9% $120,000 2,500,000 6.45% $160,000 150,000 20% $30,000 11,000,000 2% $220,000 $310,000 $1,210,000

Wage Tax Revenue New Jobs Created New Income Generated (@ $30k/yr) Wage Tax Rate Estimated Wage Tax Revenue

Business Tax Sales Receipts Net Income Tax Estimated Business Tax Revenue

Parking Tax Revenue Sales Receipts Parking Tax Rate Estimated Property Tax Revenue

Sales Tax Revenue Sales Receipts Parking Tax Rate Estimated Property Tax Revenue

Total Tax Revenue (w/ Tax Abatement) Total Tax Revenue

2,900,000

300,000

500,000 500,000 1,000,000

2,700,000 1,200,000 3,900,000

1,000,000 300,000 1,300,000

Property Tax Revenue Market Value Assessment Ratio Tax Rate Estimated Property Tax Revenue

COMMERCIAL

Commercial Fiscal Impact

FISCAL IMPACT

$ $ $

Revenue (w/ Tax Abatement) Residential Commercial TOTAL REVENUE

TOTAL

Total Fiscal Impact

FISCAL IMPACT

177

$91 10 min 16 min 26 min

$67 7 min 35 min 42 min

Bus

$323 N/A 14 min 30 min

http://philadelphia.bestparking.com/index.php#1

google maps (directions)

http://www.bts.gov/publications/national_transportation_statistics/html/table_04_23.html

http://www.phillygasprices.com/Prices_nationally.aspx

SEPTA.org

Sources:

Frequency measured between 8am - 9am

Max travel time adds in the max wait time given rush hr frequency

Min Travel Time includes walk/bus to subway station

Monthly Cost Headway Est Minimum Travel Time Est Maximum Travel Time

Regional Rail

COMMUTER MODE COMPARISON

Bus Car Car Regional Rail

ADVANTAGE

$ 6,155,300,000 $ 7,090,700,000 78% 661,958 $ 112,113

OTHER DATA Other Misc. Revenue from Local Receipts Appropriated Expenditures excluding schools Residential Proportion of real property Existing Residential Units Median Home Value

Transit Competitive Study

0.25 10%

Car

45 240 285

218,296

32.00% $ 84.00 $ 574,000,000 $ 2,432,000,000 $ 1,520,000,000 154,482 $ 5,904 $ 9,839

SCHOOL-AGED CHILDREN MULTIPLIERS Average Children per Unit Proportion of New Philadelphia Residents

MUNICIPAL INPUTS Residential Assessment Ratio for Tax Purposes Residential Tax Rate per $1,000 Total Tax Levy Total School Budget School Aid from State Number of School Children Current Local School Cost per Student Current State School Aid per Student

Number of new units in development Market Rate Affordable Total Units

DEVELOPMENT INPUTS Average Market Value per Unit

Residential Fiscal Impact

FISCAL IMPACT

16 4 15 38 54 107 2 $13 $91 $3 $16

In Vehicle Time Frequency Wait Time Adjusted WT Total Time One Way in Minutes Total Time Two Way in Minutes Total Time Two Way in Hours Daily Travel Time Cost Monthly Cost for Transit Daily Cost for Transit TOTAL COST

Bus

$15

14 14 28 0 $4 $150 $5

Car

$ $

Total Estimated Revenue (w/ Tax Abatement) Total Estimated Revenue

Regional Rail

71 701,053 $

Adjusted for Time Valuation

154,482 9,839

Car

Car Car Car Car Car Car Car Car Car Bus

ADVANTAGE

1,011,115 2,683,438

1,520,000,000

35 9 7 17 52 103 2 $13 $67 $2

661,958 7,253

78.00% 4,801,134,000

285 85% 43 310,063

6,155,300,000

84.0000 $1,672,323

32.00% 19,908,606

62,214,394

Additional State School Aid State School Aid (Chapter 70) divided by Number of School Children School Aid per Student multiplied by Number of Students in New Development Estimated Additional School Aid

Number of new homes Percent of Residents Moving within Philadelphia New Residents from Residenial Units Estimated Additional Miscellaneous Revenue

Other Miscellaneous Revenue Miscellaneous Revenue multiplied by Residential Proportion of all Property Miscellaneous Revenue from Residential Use divided by Number of Residential Units Miscellaneous Revenue per Housing Unit

REVENUE Revenue from Property Tax on Development Market Value of Development multiplied by Assessment Ratio Actual Assessed Value multiplied by Residential Tax Rate /$1000 Estimated Property Tax Revenue

RESIDENTIAL

15,743 71 7 112,168

Total Estimated Expense

469,350

Percent of Residents Moving within Philadelphia 85% New Residents from Residenial Units 43 Town Service Costs for Residential units $ 357,182

Service Costs Due to Development (Costs associated with Library, Health, Recreation, Police, Fire and Road Maintenance) Town expenditures excluding Schools $ 7,090,700,000 multiplied by Residential portion of All Property 78.00% Service Costs due to Residential $ 5,530,746,000 divided by # of Residential Units 661,958 Service Cost per unit $ 8,355 Number of Homes in New Development 285

EXPENSE School Costs Due to Development Current School Cost per Student $ Number of Students in New Development Net New Philadelphia School Students Total School Cost per Year $

APPENDIX: Market East Unit Development Costs Summary Pro Forma Development Costs Project Buildout by Development Units Project Buildout By Area

178

179

Market Street East

Unit Development & Infrastructure Costs Development Costs Tenant(s) Phase The Gallery Existing Retail Multi-tenant I Cinema IMAX I Entertainment Wax Museum I Bike Station N/A II Hotel Hyatt III Strawbridge Building New Retail Fresh Market I 1000 Market New Retail CB2 I New Retail Nordstrom Rack I New Retail DSW I Gym [Equinox] I Market For-Sale Housing N/A I Market Rental Housing N/A I Parking N/A I 1100 Market New Retail Multi-tenant I Hotel Sheraton I Parking N/A I Culinary School Culinary School (incl. Cookology) I Reading Terminal Market New Retail Multi-tenant II 940 Market New Retail Best Buy II New Retail CVS II Student Rental Housing N/A II Parking N/A II 801 Chestnut Senior Rental Housing N/A II New Retail Multi-tenant II Parking N/A II 1001 Filbert New Retail Multi-tenant II Hotel Kimpton II Parking N/A II 800 Block New Retail Home Depot III New Retail Multi-tenant III Market Rental Housing N/A III Parking N/A III Infrastructure Costs Roads Utilities Other Hardscaping (not incl. surf. pkg.) Landscaping Other Amenities Total Infrastructure Costs Total Development Costs (does not include public)

Total Project Summary by Property

Buildout

$310 per SF $258,291 per room $149,809 per space $156 per SF $156 per SF $117,488 per unit $27,484 per space Per Unit Cost $600 per LF $600 per LF $35 per SF $5 per SF

$143 per SF $572,400 per screen $112 per SF $124 per SF $316,293 per room $135 per SF $162 per SF $162 per SF $162 per SF $162 per SF $233,864 per unit $159,004 per unit $21,841 per space $281 per SF $200,226 per room $22,468 per space $124 per SF $124 per SF $154 per SF $154 per SF $104,380 per unit $24,819 per space $132,216 per unit

Unit Costs

Public

$8,678,590 $77,487,410 $17,977,079 $8,804,040 $6,263,935 $30,076,841 $6,376,172 Private $0 $0 $0 $0 $0 $0 $850,482,534

Total Costs $32,197,500 $9,158,400 $4,470,000 $742,500 $273,277,500 $6,743,750 $5,159,512 $6,246,580 $6,246,580 $5,159,512 $29,934,650 $25,440,615 $4,542,824 $12,623,720 $192,217,180 $8,627,520 $9,900,000 $2,970,000 $3,684,000 $3,684,000 $20,876,000 $2,481,875 $28,434,250

180

Net Present Value (10%) Levered IRR

Net Cash Flow

Annual Cash Flow (Levered)

800 Market Block

1001 Filbert

801 Chestnut

Culinary School Reading Terminal Market 940 Market

1100 Market

Strawbridge Building 1000 Market Block

Development Costs The Gallery

800 Market Block

1001 Filbert

801 Chestnut

Culinary School Reading Terminal Market 940 Market

1100 Market

Strawbridge Building 1000 Market Block

Net Operating Income The Gallery

Summary Pro Forma

Market Street East

Total NOI Total Debt Service Total Tax Liability Total Sale Proceeds Total Equity Contribution

Existing Retail Cinema Entertainment Bike Station Hotel New Retail New Retail New Retail New Retail Gym Market For-Sale Housing Market Rental Housing Parking New Retail Hotel Parking Culinary School New Retail New Retail New Retail Student Rental Housing Parking Senior Rental Housing New Retail Parking New Retail Hotel Parking New Retail New Retail Market Rental Housing Parking Total Development Costs