Hilco Redevelopment Partners proposed to transform the former Philadelphia Energy Solutions refinery, a 1,300-acre industrial site in South Philadelphia, into a state-of-the-art multimodal ecommerce logistics park. The project aims to generate long-term community and economic benefits for the city and the surrounding region. Redevelopment of the brownfield would address significant challenges, including environmental remediation, decommissioning industrial infrastructure, demolition, site preparation, and construction, with goals of creating economic opportunities, supporting local jobs, and generating tax revenues. ESI was engaged to evaluate and demonstrate the economic impacts of the redevelopment.
ESI analyzed both the potential construction and ongoing operations impacts that could result from redeveloping the brownfield and reactivating it for gainful economic use. To do so, the project team completed the following:
- Data Collection and Verification: Data inputs on operating activity and capital investments as provided by the client and supplemented with public data.
- Economic Impact Analysis: Using IMPLAN input-output modeling to calculate total economic output, employment, associated earnings, and tax revenue impact.
- Scenario Modeling: Evaluating the potential economic impacts during both the construction phase and ongoing operations.
Results of ESI’s analyses demonstrated the benefits that can be anticipated due to the planned redevelopment. This informed Hilco’s investment decisions, strategic planning, and supported their commitment to environmental sustainability and economic inclusivity. The report ESI provided articulated the benefits which helped Hilco in their communications with the community and government officials.
Redevelopment of the former refinery is expected to generate $2.3 billion in one-time economic output during construction, supporting 13,330 FTE jobs and $876 million in employee compensation. Once operational, the new logistics park is projected to generate $3 billion in annual economic output, supporting 19,370 FTE jobs and $960 million in employee compensation.
The project has led to ongoing collaboration with local workforce development organizations and the School District of Philadelphia for internship and apprenticeship opportunities. The long-term impacts include the creation of accessible jobs, opportunities for local Minority, Women, and Disadvantaged Business Enterprise (MWDBE) businesses, and improved environmental conditions within the vicinity of the former industrial site. ESI has continued to support HRP since the original impact analysis, providing scenario modeling support and evaluation of various tax incentive opportunities.