2012

The Economic Impact of the Schuylkill River Development Corporation

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The Schuylkill River Development Corporation retained Econsult Solutions, Inc. to provide an estimate of the magnitude and composition of the economic and fiscal impacts associated with SRDC, and to provide an update to a 2005 report that measured the potential impacts of proposed projects at least partially funded by SRDC.

The SRDC is a non-profit organization which manages the planning and development along the banks of the Schuylkill River, along with the Department of Parks & Recreation, on behalf of the City of Philadelphia.

As of 2012, the Schuylkill River Development Corporation (SRDC) has completed numerous projects along the Schuylkill River including a 9/11 Memorial, bridge enhancements on Market Street and J.F.K. Boulevard, and a dock on Walnut Street. Currently, SRDC is constructing a boardwalk along the river, and is planning for future crossings and beautification projects to enhance the aesthetics of the Schuylkill River, for a total value of approximately $60,000,000. Specific economic and fiscal impacts of SRDC capital spending and resulting real estate investments include:

  1. For the City of Philadelphia, 319 jobs and $780,000 in city tax revenues
  2. For the Commonwealth of Pennsylvania, 1,022 jobs and $3,200,000 in tax revenues
  3. Serve as a catalyst for new commercial and residential development, partially responsible for an increase of over 150% in residential property value near the Schuylkill Banks since 2000.

 

Rehabilitating the Prentice Women’s Hospital Building

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Northwestern University is proposing to demolish the Prentice Women’s Hospital Building, in the Streeterville neighborhood of the City of Chicago in Cook County, Illinois, to build new research space at that site. The National Trust for Historic Preservation, however, counter-proposes the construction of the desired research space at an adjacent location that is controlled by Northwestern, and the preservation of Prentice into usable office and retail space.

Our team was hired to evaluate the impacts of the Trust’s counter-proposal to preserve and reuse Prentice. We have determined that the Trust’s project is likely to generate significant upfront and ongoing economic benefits:

1. Upfront rehabilitation of Prentice, and the spillover economic activity that results from it, will generate about $100 million in one-time expenditures, support about 600 temporary jobs and generating about $400,000 in tax revenues to local and county governments.
2. Ongoing operations at Prentice, and the spillover economic activity that results from them, will generate about $150 million in annual expenditures, support about 1,000 permanent jobs and generating about $1 million in tax revenues to local and county governments.
3. The combination of preserving Prentice and adding new research space at an adjacent location is likely to generate more positive property value impact nearby than simply demolishing Prentice and building new research space there, with attendant increases in property tax revenues to the City of Chicago and Chicago Public Schools on the order of hundreds of thousands of dollars per year.

 

The Economic Impact of Drexel University

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Located in the University City District of Philadelphia, Drexel University is a comprehensive private research university with nearly 25,000 students.  Drexel is comprised of 14 schools and colleges, including schools of law, medicine, engineering, and business. Offering over 100 academic programs and a unique co-operative education program, Drexel has emerged as a top-tier university.

Econsult Corporation was retained by Drexel University to determine the University’s economic and fiscal impacts on the City of Philadelphia and the Commonwealth of Pennsylvania. Using standard economic impact models, the analysis estimated the impact that Drexel in the following realms:

Direct Spending – capital investments and operating expenditures induce significant spillover activity and generate high levels of employment within the City and Commonwealth and high amounts of tax revenues for the City and Commonwealth.

Human Capital Investment – Educational resources and academic degrees Drexel confers represent an investment in human capital within the City and Commonwealth, and confer a wage premium on Drexel alumni that generates further economic stimulus.

Ancillary Spending – Drexel draws students, visitors of students, visiting prospective students, patients and their visitors, and event attendees and participants, whose ancillary spending represents an importation of dollars that support job creation and generate tax revenues within the City and Commonwealth.

Local Engagement – Drexel marshals the full weight of its many departments and programs to engage on practical solutions to contemporary urban issues throughout the City and to provide invaluable services and resources at the neighborhood level.

Econsult found that Drexel University has a significant economic contribution for the City and the Commonwealth, with upwards of $1.5 billion generated within the City and $2.4 billion generated within the Commonwealth annually. Drexel’s impact comes from activities that are of utmost importance to the City and Commonwealth, and to the world at large.  Drexel has distinguished itself at both a local and global level in these areas, and its current trajectory suggests continued advancement, for the benefit of the City, Commonwealth, and beyond.

 

The Economic and Fiscal Impacts of Tower Investments’ Developments In Northern Liberties

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Econsult Solutions, Inc. was retained by Tower Investments to determine the net economic and fiscal impacts on the City of Philadelphia and the Commonwealth of Pennsylvania of the Tower Investments development in Northern Liberties. A mere decade ago, The Northern Liberties area was significantly physically blighted and not seriously compensated for real estate development. Now, iconic structures such as the Piazza at Schmidt’s and Liberties Walk have received prominent national media attention and have become locations of choice for a wide range of residents, retailers, and visitors. Counted among Tower Investments’ $200 million in direct developments are commercial space for over 80 businesses, more than 560 housing units totaling over 800,000 square feet of commercial and residential space, and beloved public spaces such as the 80,000 square foot Italian style courtyard within the Piazza at Schmidt’s. These developments have stimulated the City and Commonwealth economy, created jobs, and generated tax revenues.

Econsult Solutions, Inc. quantified the impact of the upfront construction and ongoing operational development by Tower Investments and compare it with the performance of other developments. The results indicate the Tower Investments’ development work in the Northern Liberties section of the City of Philadelphia has had a dramatic effect at the neighborhood and citywide level, and has led to a $1 billion increase in the aggregate market value of real estate in the Northern Liberties.

Econsult Solutions, Inc. was retained by Tower Investments to determine the  net economic and fiscal impacts on the City of Philadelphia and the Commonwealth of Pennsylvania  of the Tower Investments development in Northern Liberties. A mere decade ago, The Northern Liberties area was significantly physically blighted and not seriously compensated for real estate development. Now, iconic structures such as the Piazza at Schmidt’s and Liberties Walk have received prominent national media attention and have become locations of choice for a wide range of residents, retailers, and visitors. Counted among Tower Investments’ $200 million in direct developments are commercial space for over 80 businesses, more than 560 housing units totaling over 800,000 square feet of commercial and residential space, and beloved public spaces such as the 80,000 square foot Italian style courtyard within the Piazza at Schmidt’s. These developments have stimulated the City and Commonwealth economy, created jobs, and generated tax revenues.

Econsult Solutions, Inc. quantified the impact of  the upfront construction and ongoing operational development by Tower Investments and compare it with the  performance of other developments. The results indicate the Tower Investments’ development work in the Northern Liberties section of the City of Philadelphia has had a dramatic effect at the neighborhood and citywide level, and has led to a $1 billion increase in the aggregate market value of real estate in the Northern Liberties.

– See more at: https://econsultsolutions.com/experience/our-projects/northern-liberties-economic-impact-study/#sthash.nQdYDs5M.dpuf

The Potential Impact Of The Provence Entertainment Complex

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Econsult Solutions, Inc. was retained by Tower Investments to conduct a study on the potential economic and fiscal impact of their proposed entertainment complex in Philadelphia. Tower Investments is proposing to develop The Provence Entertainment Complex, an entertainment complex containing a hotel, a casino, and a mix of non gaming entertainment venues along the north side of three blocks of Callowhill Street between North Broad Street and 17th Street, at the (current) northern edge of Center City and immediately adjacent to the expanded Pennsylvania Convention Center Expansion District. Using Econsult’s integrated regional Economic and Fiscal Impact Model and an input-output model, Econsult Solutions, Inc. estimated the economic benefits of The Provence project with economic benefits including employment, wages, gross sales, investment, and state and local taxes.

The Provence Entertainment Complex represents the highest potential for impact among all possible casino sites within the City. Its many complementary uses will work together to generate a significant amount of economic and fiscal impact within the City and Commonwealth. Its strategic location makes it the site that will cannibalize existing casino activity the least, making more of that economic and fiscal impact new to the Commonwealth and not just a reshuffling of existing impact. And, its catalytic effect on nearby residential and commercial development will result in even more economic and fiscal impact within the City and Commonwealth. Econsult Solutions, Inc. analysis shows no other casino related development in Pennsylvania would better maximize total benefits to the City and Commonwealth, in terms of:

  • Direct investment, annual spending, employment
  • Corresponding net new state and local tax revenues
  • Induced real estate investment by others, generating new development, construction and economic activity in nearby areas

The proposal and report were submitted in November 2012 to the Pennsylvania Gaming Control Board to be considered for a Philadelphia-based Category 2 Slot Machine Operator’s License. The application process is ongoing with public hearings being held throughout the year.

 

Economic and Fiscal Impacts of the 2012 Philadelphia Auto Show

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Econsult Corporation was retained by the Automobile Dealers Association of Greater Philadelphia (ADAGP) to analyze the economic and fiscal impact of the Philadelphia Auto Show on the City of Philadelphia and the Commonwealth of Pennsylvania.

Annually, the Auto Show draws hundreds of thousands of visitors and dozens of exhibiting automobile manufacturers. It is recognized within the automotive industry as one of the nation’s top shows, and features over 700 vehicles each year. The show generates revenue for the City and the Commonwealth through direct and ancillary spending done and the exhibitors, and the tax revenues generated from this spending.

In 2012, the Philadelphia Auto Show brought in over 250,000 attendees. Econsult found that the Auto Show is responsible for supporting hundreds of jobs and generating millions of dollars through direct expenditures and ancillary spending in the City and Commonwealth. This spending has a significant economic and fiscal impact. Econsult also found that the impact in 2012 was over 10 percent larger than the 2011 Philadelphia Auto Show, and there was approximately a 15 percent increase in tax revenue for both the City and the Commonwealth.

This spending, by ADAGP, exhibitors, and visitors, ripples through the local economy and supports additional activity and employment. It also generates significant tax revenues for the City and Commonwealth, through the overall increase in economic activity as well as through increases in amusement tax revenues, hotel room tax revenues, and parking tax revenues.