A vibrant Center City benefits all Philadelphians | Editorial

A thriving Center City is an economic boon for Philadelphia, so there was much to be optimistic about in a new report on downtown’s post-pandemic outlook, even as obstacles remain.

Philadelphia is doing better than most large cities when it comes to bringing office workers and visitors back downtown, recovering 87% of pedestrian traffic as compared with 2019, according to data from the Center City District.

But that missing 13% still presents big challenges for city revenues, public transportation, and the future of the city’s office buildings. Challenges that must be overcome if the city wants to prosper beyond the pre-pandemic status quo.

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Part of this comes down to who is spending time in Center City, as well as who isn’t. Some of Center City’s rebound is driven by the growth of its residential population, which currently produces 112% of 2019’s foot traffic. Meanwhile, the city is seeing 84% of 2019’s foot traffic from visitors and only 70% of traffic from commuters.

Residential growth has been the secret to Center City’s success for the last few decades and will be a critical part of its adaptation to remote work. While it may be hard to fill ultra-luxury condos on South Broad Street, the rest of Center City’s real estate market is thriving.

Missing commuters, however, are so far staying home.

The city is losing millions of potential wage tax revenue from workers who shifted to remote work during the pandemic. Workers with hybrid schedules, who may only be coming into the city a few times a week, also contribute to the lack of recovery so far on the transit network — SEPTA has regained about two-thirds of its pre-COVID ridership. That’s not to mention the impact on local businesses, many of which depend on behavioral patterns that no longer exist.

Also absent are longtime patrons of many of the city’s theaters and concert halls. Perceptions of crime, amplified by the antics of the roving packs of ATVs and dirt bikes that increasingly roll down city streets, may be keeping many of these audiences away. Center City is “remarkably safe,” per the Brookings Institution’s research. But images and videos of chaos on the streets, and reports of organized retail theft, could be giving some people pause when they consider catching a show downtown.

Every Philadelphian has a stake in Center City’s success, even those who only come downtown to pay bills at the Municipal Services Building. As the recent contract for the union representing the city’s janitors and maintenance workers shows, Center City provides jobs and revenue for people across the city.

Thanks to the city’s real estate transfer and development taxes, density bonuses, and other programs, every new or rehabbed building means more money for the city’s coffers, creating revenue for programs that benefit communities far away from City Hall, like the Neighborhood Transformation Initiative and the Housing Trust Fund.

When developer Carl Dranoff finally sells that $15 million South Broad Street penthouse, that transaction alone will generate nearly half a million dollars in transfer taxes. That’s enough to pay a year’s salary for a police officer, a teacher, a librarian, a sanitation worker, and Mayor Jim Kenney — with money left over for overtime.

Still, the question remains, how can Center City flourish in the era of remote work?

One way could be to recruit suburban companies that are struggling to get employees back into the office. While driving to a remote office park may be unappealing, companies that relocate to Center City can take advantage of the culinary and entertainment options available nearby to lure workers back. This would be particularly effective with younger employees, who have been more resistant about returning to the office.

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Another way to revitalize Center City might be by changing existing zoning laws to make it easier for developers to convert struggling office buildings into residential housing.

While much of the city’s low-hanging fruit in terms of office-to-residential conversion is already gone, new concepts for co-living in office buildings may offer an alternative. These “adult dorms” would solve the issue of turning the vast, natural light-free interiors of these buildings into shared kitchens, offices, entertainment spaces, gyms, and more.

That kind of approach could provide a lifeline for some large buildings while offering an affordable option for recent college graduates, who are increasingly choosing to stay in Philadelphia.

The city must also commit to building and sustaining the transit network Philadelphia needs. For generations, the city has coasted on inherited infrastructure and vehicles, while making one of the lowest local contributions to public transit in the country. The pandemic made it clear that this is untenable. Today’s elected leaders can no longer hitch a free ride on the investments of the past.

That Center City, with its narrow streets, 46,000 public parking spots, and hundreds of thousands of pedestrians, functions so smoothly from a commuter standpoint is the product of easy access to a robust public transit system. There are three heavy rail lines, five trolley lines, and 13 Regional Rail lines that pass through or end in Center City, making it one of the most rail-accessible downtowns in the country. The hundreds of thousands of people riding those lines are getting to and from Center City without adding to traffic and congestion or contributing to air pollution near our highways.

Moving Center City forward will not be easy, but ensuring that downtown remains the vibrant economic and cultural hub of the Greater Philadelphia region demands nothing less.