2022 was a milestone year for ESI and we are thrilled to spotlight some of our work that was completed, as well as highlight our ongoing thought leadership efforts being built out of ESI Center for the Future of Cities. We look forward to continuing to provide the same level of excellence to our clients in the new year!
2022
King of Prussia Business District Comparative Location Analysis
Jurisdictions have long competed to be destinations of choice for employers and employees, based on tax mix, amenities, transportation infrastructure, and other location characteristics. At present, this competitive landscape seems particularly fluid and intense. Most notably, COVID has hollowed out commercial office cores, scrambled real estate markets, and increased people’s preferences for outdoor amenities and other wellness resources.
Meanwhile, economic uncertainty has forced a reckoning for jurisdictions in their relative tax burden positions. Lower tax burden jurisdictions are caught between heightened fiscal pressure if they maintain their low rates, and loss of competitive advantage if they raise rates. Higher tax burden jurisdictions, in turn, are finding that if they continue to raise rates, they cause mass outcry amongst residents and businesses, while if they rein in tax rates they stretch their already tight budgets.
In such a climate and at such a time, King of Prussia District is tasked with catalyzing economic development and job growth for UMT/KOP. This report helps substantiate where UMT/KOP holds a competitive advantage over neighboring jurisdictions as a destination of choice for employers and employees, and conversely where UMT/KOP fares more poorly relative to competing jurisdictions. The former can inform promotional efforts such as HQ KOP, while the latter can inform King of Prussia District’s discourse with local elected officials and business leaders.
ESI’s 2022 analysis of how Upper Merion Township/King of Prussia (UMT/KOP) compares as a business location relative to other nearby suburban jurisdictions represents an update to research conducted in 2017 and 2011, also commissioned by King of Prussia District. It covers relative tax burden and other locational characteristics, and enables both a comparison across jurisdictions, as well as a comparison across time.
Thanksgiving 2022 Light Read
For this week’s Present Value post, we gave thanks! Please enjoy this list of interesting reads, fun activities, and ways to support charitable causes this holiday season.
On behalf of the entire ESI team, we hope you have a happy Thanksgiving.
The latest from Present Value
SEPTA Key Advantage Update: Institutional Pass Program Expansion – Tiffany Hudson
The Future of Sustainability at Universities – Lee Huang
Smart Water Management and the Future of Cities with Dr. Allison Lassiter – Kendra Hills
Unlocking Potential Economic Benefits for Low-Income EV Consumers – Kendra Hills and Frank Robinson
Adaptive Reuse – Moving Forward in a Post-Pandemic World – Peter A. Angelides
Recently Completed Projects
Catalyst for Change: The Future of Cities
The State of Cell and Gene Therapy in the Greater Philadelphia Region
Financing Green Infrastructure: Lessons from the Chesapeake Bay Watershed
Thanksgiving Reading List
The Movement to Keep Buildings from Making You Sick
The Productive Power of Urban ‘Activity Centers’
How New York Suburbs are Tackling the Housing Crisis
Comcast Looks to its Technology Center in Philadelphia to Power its Future
Main Line College’s New President Looks to Grow Enrollment 25%, Add New Programs
Food Rescue Organizations Mount a Simultaneous, People-powered Assault on Two Persistent Problems
Ways to Celebrate
Activities, Shopping, and Dining
Check out this list of 29 things to do in Philly during Thanksgiving week, courtesy of Visit Philadelphia
Find a new favorite restaurant with this list of 40 new and soon-to-open restaurants the Inquirer has assembled
Discover your new favorite retailer this Small Business Saturday
Charitable Causes
Consider joining the Giving Tuesday movement or become a Kiva lender and support a worthy cause you are passionate about
Make an in-kind donation to Bethesda Project, People’s Emergency Center, Why Not Prosper, or the Philadelphia Foundation
Volunteer your time with Philly House, Mighty Writers, or Philadelphia Animal Welfare Society (PAWS)
Support the Veterans Multi-Service Center, or Esperanza, Project HOME, or Prevention Point
The Current State of EV Policy in the United States
Cities and states across America are beginning to take more strides toward fully adopting electric vehicles (EVs) and integrating them into the fabric of their road and urban infrastructure. The benefits of making the switch from internal combustion engines (ICE) to EVs are growing and well documented, and their popularity has also grown significantly in the past few years. States are hoping that with regional consensus, cities will be cleaner, greener, and quieter with widespread EV adoption. This has proven challenging for American cities, and there have been significant barriers to preventing EVs from gaining a large market share. We have outlined these barriers in a previous article titled, Prioritizing Equity in EV Infrastructure Planning with Data, but they can be summarized as the following:
- EVs are generally still more expensive than traditional ICEs
- Lack of charging stations and charging infrastructure
- Lack of EV knowledge, exposure, & visibility
- Limited EV financial incentives
- EV model availability
Addressing these barriers will need effective, comprehensive, and long-term policy and strategic planning for cities to reach electrification and emission targets. Municipalities both small and large will need to look to their states for not only guidance on EV policy, but also as a partner to voice their specific needs to. Adapting state policies to different levels of government – local, regional, and federal will be key for widespread EV adoption and will also be the most challenging.
How can cites be sure they are implementing the most effective EV policies? Here are some popular policy recommendations and case studies that have been effective across different states.
Zero Emission Vehicle Mandate
Some governments leading mass EV adoption have implemented aggressive electrification goals with the intent of adopting a 100% electric share between 2025-2050, with zero emission mandates. Zero emission vehicle (ZEV) regulations have accelerated the rate of EV adoption on a regional scale within states like California, and have had immense success in in achieving lofty goals of reducing greenhouse gas. In the United States, ZEV mandates are issued at the state level, and California has been a state leader ever since their first ZEV mandate in 1990. One of the key features of California’s mandate is its requirements of manufacturers to meet rather strict ZEV percentage credits. The mandate also requires auto manufacturers to produce an increasing number of ZEVs each year beginning in 2026. The mandate also takes measures to ensure that consumers are buying ZEVs that are sustainable and have longevity with enhanced durability and warranty requirements. By 2030, California expects vehicles to maintain at least 80% of electric range for 10 years or 150,000 miles. Although California has some of the stricter EV and ZEV policies in the nation, the direct intention with future-proofing mobility innovation, and building direct relationships with manufacturers and technology providers is a lesson that could be adopted in other states across the country.
Flexible, Long-term EV Financial Incentives
Ensuring that citizens can afford EVs is critical. Tax benefits, incentives, and rebates have been successful ways for states to promote the use and ownership of EVs. 45 states and the District of Columbia all provide some sort of incentive. Increasingly, states are amending their policies to include additional provisions for low income and disadvantaged communities.
Virginia recently passed an EV rebate program that applies to new and used EVs. As EVs begin to take up a larger portion of the market, expanding access to used vehicles also expands EV access to a significant number of Americans. This rebate program allows for a $2,500 rebate at the time of purchase for both buyers and leasers, with an additional $2,000 rebate toward either a new EV, or $500 towards a used EV for low-income customers.
EV-Cross Collaborations
Collaborative EV efforts across state lines will be a critical strategy in transportation electrification, and states have been leading the way in creating integrated policies to ensure a more robust buildout of charging infrastructure across major highways.
The Regional Electric Vehicle Midwest Coalition (REV Midwest) has made bipartisan efforts to involve governors and decision makers from Illinois, Michigan, Indiana, Minnesota, and Wisconsin to develop a new regional charging infrastructure network. The REV Midwest sets out to accomplish three goals: Accelerate medium and heavy-duty fleet electrification, elevate economic growth and industry leadership, and advance equity and environmental goals. Additionally, increasing the number of charging stations is one of the main goals of REV Midwest, as they hope to boost potential consumers’ confidence and ease the range anxiety that comes with not knowing if charging is available outside of private at-home chargers. This multi-state collaboration leverages increased public and private interest/funding for EV infrastructure and allows states to share ideas and opportunities surrounding EV implementation. More state collaboration can make room for taking bigger risks with EV infrastructure and finding innovative partners to get the job done.
Local partnerships are just as important as multi-state partnerships, and San Francisco has been a leading example in this, creating the Electric Vehicle Working Group. This group aims to identify key policies and partners to aid EV growth within the city. The group is comprised of 15 representatives from city departments and agencies, along with stakeholders from regional and state agencies, as well as industry and non-profit organizations.
These are just some ways cities and states can prioritize equitable widespread electrification. Policies that are both strict enough to reach target greenhouse reduction goals, but also flexible enough to change with the needs of consumers will be important for cities and states to transition to a more sustainable future.
Kendra Hills, Intern | hills@econsultsolutions.com
Kendra Hills is an intern at Econsult Solutions supporting ESI’s Center for the Future of Cities. She is currently a Master’s student at the University of Pennsylvania, studying city & regional planning with a concentration in smart cities.
An Interview with W. Wilson Goode, Jr.
Last month, ESI President and Principal Lee Huang sat down with Senior Advisor and former Philadelphia City Councilperson W. Wilson Goode, Jr. to discuss the state of equity and inclusion in filling city contracts. As a member of city council, Goode, Jr. was instrumental in creating initiatives to boost participation from underrepresented groups in city affairs. Read their conversation below.
Can you describe your first experiences around MWDBE goal-setting while as a City Council Member?
Cities need to develop a serious approach to supporting an inclusive economy through government spending. During my first year in office, the City was considering legislation regarding the
build out of Lincoln Financial Field and Citizen’s Bank Park. As a freshman councilperson, I was able to weigh in on it, however at the time, there was no current disparity study to point to and assess utilization of Minority, Women, and Disadvantaged Business Enterprises (MWDBEs). A study was initiated in 1998 but not yet completed, so the City’s stadium legislation couldn’t be based on any up to date and precise goals. Rather, it had to be driven more so by aspirational targets.
Eventually, Bill #030125 was signed into law in 2003, however a year later in 2004, the prevailing legal opinion was that council exceeded its authority to pass such legislation. After questioning during budget hearings and session hearings, the only way to implement the signed law was through a charter amendment, which I introduced – and it was approved by a supermajority of City Council and the voters through a ballot question.
In your view, how should DBE participation goals be leveraged to offer more opportunities for public contracting?
Disparity goals shouldn’t stop at billion-dollar investments like stadium builds, but instead they should be interwoven into all aspects of a city’s procurement and investment strategy. In Philadelphia, we have tended to look at large-scale projects to advance certain policies. From the stadiums to the convention center, to Mayor Kenney’s Rebuild initiative. In my opinion, I don’t believe these project-based efforts should be our primary way at addressing utilization matters, but they absolutely present a good opportunity to highlight the issues at hand.
What do you think city government levers are to affect availability? What can the City of Philadelphia do, and what should it do to grow capacity?
The City can do more when it comes to prime contracting with minority and disadvantaged businesses. The City sets overall participation goals, however majority-owned contractors are essentially
left to make best faith efforts to create opportunities for diversity. So, on some level, the City does not make any immediate decision on the diversity of subcontractors selected to participate at the bidding level and which entities are in the running for public projects except through goal-setting.
How can we create an inclusive entrepreneurial ecosystem if lending discrimination persists, particularly for African Americans? And without access to race-based data for business lending, how do we remedy discrimination?
The City needs to set the tone in terms of policy and investment. How can we create an inclusive ecosystem if lending discrimination occurs on any level? Match-paired mystery shopping has been one way of examining this issue on a national level where we can show that Black business borrowers are treated differently. The National Community Reinvestment Coalition has performed research in several cities and found that on average, Black borrowers received more examination of their business and questions about family income, while also receiving fewer resources and information from lending institutions.
We can create a better entrepreneurial ecosystem – but I don’t believe that we can call it “inclusive” without directly addressing such racial discrimination. We know that there are higher home loan denial rates for African Americans in areas where there are lower self-employment rates, in such places like Philadelphia, Pittsburgh, Baltimore, Detroit, Chicago, New Orleans, and Memphis. Systematic and historic differences in access to capital to buy a home make it inevitably harder for those to start businesses. Typically, our homes are our biggest asset on our balance sheets.
The City’s standpoint should be to look at disparities in terms of business and other lending, but also making it a point to focus substantial time toward investing in solutions to those problems, such as loan guarantee funds, special programming with banking institutions, CDFIs, and strengthening housing subsidies as examples.
Increasing self-employment rates and building up capacity in Black and Brown communities is good for the City as a whole. If policy leaders want to grow the economy, this is a good way to do it. Access to capital is incredibly important. There’s also no way MWDBEs can scale and grow without private sector procurement opportunities. The public sector measuring its spend is good, but how do we broaden the conversation to springboard businesses into accessing private sector contracting to generate revenue and scale up.
W. Wilson Goode, Jr., Senior Advisor | Goode@econsultsolutions.com
W. Wilson Goode, Jr. is a public policy advisor who served as a Philadelphia City Councilman At-Large from 2000 to 2016. Mr. Goode graduated from the University of Pennsylvania and did Graduate Studies in Policy Design and Delivery at Harvard Kennedy School. When Mr. Goode served on the Philadelphia City Council, he was the primary sponsor of over 145 ordinances including: budget appropriations; revenue increase for public education; civil service preference for local residents; living wage and benefits standard for City-supported employees; labor peace requirement for City airport and City-supported hotels; annual economic disparity analyses; diversity goals for city contracting; fair lending plans and community reinvestment goals from depository banks; contract enforcement of economic diversity; reduction of the business gross receipts tax; business tax credits for job creation and investment in neighborhood economic development; as well as landmark legislation enacting the only campaign contribution limits for municipal elections in Pennsylvania.
Lee Huang, President & Principal | Huang@econsultsolutions.com
Lee Huang brings over 20 years of experience in economic development experience to ESI public, private, institutional, and not-for-profit clients. He leads consulting engagements in a wide range of fields, including higher education, economic inclusion, environmental sustainability, historic preservation, real estate, neighborhood economic development, non-profits, retail, state and local government, strategic planning, tax policy, and tourism/hospitality, and is a sought-after speaker on these and other topics.
Catalyst for Change: The Future of Cities
As Econsult Solutions celebrates the one-year anniversary of ESI Center for the Future of Cities, we are thrilled to present a collection of our smart city-focused thought leadership and research. This portfolio connects the firm’s urban economics, policy, and strategy expertise and sits at the forefront of addressing the most challenging issues city leaders face today. The ESI team has produced ground-breaking research that has helped lay the foundation for building out a more just, sustainable, and prosperous future in four key focus areas:
Livability – Investigating how cities can improve quality of life for all citizens, interconnecting and leveraging resources to ensure cities are safer, and cleaner.
Mobility – Exploring the rise of autonomous and electric vehicles, assessing the catalytic impacts of transit investment, in addition to exploring the delicate balance between optimal density and congestion.
Investment – Analyzing how technology can improve and foster inclusive economic growth, the importance of an environment that attracts and retains innovative talent, strategic public and private partnerships for sustained success of smart city programs.
Governance – Understanding how governments are leveraging new technology and practices to enhance quality of life and foster growth, enhancing cybersecurity systems and increasing citizen engagement.
As we move forward, ESI Center for the Future of Cities will continue to build on those ideas and sit squarely at the intersection of public and private needs. As the firm’s thought leadership arm, it brings together ESI’s expertise in urban economics to address the most prominent issues facing cities around the world. City leaders need a blueprint for building safer, more sustainable, and resilient 21st Century cities.