Anchored by Broad Street and running from City Hall to Washington Avenue, the Avenue of the Arts is home to many of the city’s theaters and performance spaces. It offers significant economic impact from arts and culture, but over the last several years, its development shows that the impacts go far beyond just the arts: a significant amount of investments has been made, and new hotels, restaurants, residences, retail stores have been proposed with many well underway. This additional residential and retail space has brought new residents and businesses to the area, generating interest, activity and “buzz” for the Avenue of the Arts.
Econsult Solutions, Inc. (“ESI”) was retained by the Avenue of the Arts, Inc. to measure and articulate the depth and breadth of the economic impact from the non-arts developments along South Broad Street. Seven large developments are either underway or proposed along South Broad Street, and their construction costs are used to predict the overall economic impact of the residential and commercial growth.
ESI assessed that the estimated $810 million in direct construction investments for residential, hotel, and retail projects will potentially generate over $1.3 billion in economic impact to the City of Philadelphia and $21 million in fiscal impact over the construction period. This includes supporting 1420 direct, indirect and induced jobs each year of construction. $21 million in tax revenues will be generated to the City, with $33 million in tax revenues to the commonwealth.
The growth in the Avenue of the Arts has significantly outpaced that of the city in regards to the number of stores with dwelling (mixed-use with residential), hotel, and apartment properties. This is a positive change for the Avenue of the Arts that will help redefine its future position in the city.
