njfuture redevelopment forum 13 innovation districts schiffman

Greater Philadelphia World Trade Center_______________________________________________

GREATER PHILADELPHIA

WORLD TRADE CENTER

An Innovation District

A Global Trading Services Organization


Six Issues

I. What is a World Trade Center?

II. What is the Greater Philadelphia World Trade Center?

III. What is an Innovation District?

IV. What Economic Impact Can Be Expected From World

Trade Centers?

V. What Economic Impact Can Be Expected From

Innovation Districts?

VI. Why Are World Trade Centers and Innovation Districts

a Formula for Rapid Economic Development?



I. WHAT IS A WORLD TRADE CENTER?




A World Trade Center is a real estate project focused on

regional economic development and job creation by

helping to increase international trade


WTC Sao Paulo

WTC Cairo WTC Barcelona

WTC Seoul

WTC New York



What is the Structure of the Organization?




World Trade Centers Association (New York City)

• Established in 1968

• “License Driven”: covering cities and regions

• Qualified licensees have the exclusive right to:

- Build a World Trade Center

- Use the WTCA’s registered marks and logos


How Many World Trade Centers Are There?



• 335 World Trade Centers in approximately 100 countries

• Over 1,000,000 businesses world-wide are tenants or members



What is the Definition of Greater

Philadelphia for the Purposes of the Project’s

Market Area?



Greater Philadelphia WTC Region

The Thirteen County Delaware Valley Region

consisting of;

Southeastern Pennsylvania – five counties

South Jersey – eight counties



Who are Examples of Owners and Sponsors

of World Trade Centers?



Selected World Trade Centers And Their Ownership

Genoa Chamber of Commerce Ross Perot interests

Portland General Electric, USA Port of Tacoma, Washington

Barcelona Port Authorities Allegheny County, Pennsylvania

Hannover Fair Company, Germany Port Authority of Norfolk, Va.

St. Louis County Economic Development Council Maryland Port Administration

Shanghai Chamber of Commerce Korean International Trade Association (KITA)

Abu Dhabi Chamber of Commerce City of Lexington, Kentucky

The Provincial Government of Halifax Nest Investments (15 WTCs throughout the

Fidelity Investments Middle East)

Paris Chamber of Commerce China External Trade Development Council

(CETRA)

Port Authority of New York and New Jersey

University of Arkansas University of Montana

OVER 60% OF WORLD TRADE CENTER SPONSORS AND OWNERS ARE PRIVATE



II. WHAT IS THE GREATER PHILADELPHIA

WORLD TRADE CENTER?



Who is the Developer for the

Greater Philadelphia WTC?




Waterfront Renaissance Associates,

a Pennsylvania Limited Partnership

Martin Schiffman- Managing Partner


Who Is Waterfront Renaissance

Associates?




Waterfront Renaissance Associates was

established in 1987 by its major investor, the

New York based investment firm of

Carl Marks & Co.


When Did the Greater Philadelphia

World Trade Center Commence?




In 1989 WRA acquired the exclusive rights to construct a

World Trade Center project for Greater Philadelphia



What is the Current Structure of the

Greater Philadelphia World Trade Center

Venture?



The venture is a “public/private” partnership



When was the Public/Private Partnership

Established?



October 2002


Who is Involved in the Public Private

Partnership?




Project Development:

Waterfront Renaissance Associates

Support of Waterfront Renaissance Associates:

Carl Marks & Co.

In-Kind Support to WTCGP:

The Delaware River Port Authority

Trade Services to Area Businesses:

World Trade Center of Greater Philadelphia



Who is World Trade Center of Greater Philadelphia?



World Trade Center of Greater Philadelphia,

the global trading services company

•Established in 2002

•Helps regional businesses to increase exports

•Located at 1500 Market St. in Philadelphia

•Ten personnel: eight full-time employees, 2 interns



How Successful Has WTCGP Been

Since Inception in October 2002?



Over $800 Million in incremental exports

Over 10,000 full time jobs created regionally, in

Pennsylvania and New Jersey



III. WHAT IS AN INNOVATION DISTRICT?



An Innovation District is :

•A specific geographical area in which collaboration takes place between

universities, the public sector dealing with policy, the public sector dealing with

transportation and other infrastructure, and the private sector.

•The goal is to monetize the ideas being incubated at the university level,

with participation from the private sector.

•Designed to create a multitude of consumable products which create jobs.

•The involvement of the public sector is to provide the “policy and physical

shape” of the district.



The First Innovation Districts Were Regional

THE GRAND DADDIES OF THEM ALL

SILICON VALLEY, Northern California

THE RESEARCH TRIANGLE, Raleigh/Durham, NC

LATER GENERATIONS

SILICON FOREST, Hillsborough County, Oregon

TECHNOLOGY CORRIDOR, Seattle to Northeast Puget Sound



Do Innovation Districts Have Recognizable

Characteristics?



University Involvement

Public Investment

Private Investment

Tax Incentives

Transportation Investment

Industry Clusters Targeted

Urban Planning Goals

Actual or Expected Economic Impact



Innovation Districts Now Are Often Urban (“When life deals you lemons you make lemonade”)

•Cities no longer produce jobs as they had in the

period between the Industrial Revolution and WW II

•They are often found with the “raw materials”

which comprise good Innovation Districts

(universities, mass transit, “smart” residential

neighborhoods, etc.)

•In essence, Innovation Districts represent the

new-age “factory town”



IV. WHAT ECONOMIC IMPACT CAN BE

EXPECTED FROM WORLD TRADE

CENTERS?



Are There Examples of International Tenants Who

Have Made World Trade Centers Their Home?

(Essentially they are First Class Commercial Office Projects)



What Are the Economic Impacts Produced by the

Development of a World Trade Center?

Greater Philadelphia World Trade Center

WORLD TRADE CENTER TOTAL ANNUAL SPENDING IMPACT FISCAL IMPACT

Boston $136,000,000 $33,000,000

Dresden $61,000,000 $19,000,000

Macau $10,000,000 $2,000,000

Sao Paulo $333,000,000 $48,000,000

Taipei $1,374,000,000 $152,000,000

Amsterdam $150,900,000 $43,600,000

Seoul $1,915,400,000 $386,900,000

University of Arkansas $55,400,000 $7,910,000

Bucharest $61,900,000 $10,700,000

Changzhou $107,800,000 $12,280,000

Hong Kong Int’l Airport $171,600,000 $25,340,000

Istanbul $2,281,000,000 $401,410,000

Malmo, Sweden $77,400,000 $39,720,000

Panama $92,500,000 $13,200,000

New York $2,191,108,175 $590,400,000


Is it Known that the “Alter Egos” of

WTC Projects are As Urban

Redevelopment Projects?




World Trade Centers Are Urban Redevelopment Projects

City Neighborhood New Construction

New York Lower West Side (“Radio Row”) 16 Million SF

Sao Paulo “Brooklin” neighborhood 2,000,000 SF

Boston “old port” Waterfront 2,750,000 SF

Amsterdam the “Zuidas” neighborhood 1,350,000 SF

Seoul Korean City Air Terminal district 3,440,000 SF

Dresden edge of business district 934,000 SF

Changzhou Wujin District 1,400,000 SF



Which Industry Clusters Has the Project Targeted

Which Are Relevant for the Region?


The Greater Philadelphia World Trade Center Will Support the Region’s

Growth in Knowledge-Based Industries • Pharmaceutical Industry: 80% of the world’s largest firms, over 50,000

employees

• Technology Businesses Started

by University Research: * U. of Penn. and Drexel U. rank 4th and 7th nationally ;

* Rowan recently designated as a comprehensive research

university - joint programs with Rutgers-Camden;

* Forbes Annual 25 “Most Connected Campuses”

List: U. of Penn., Drexel, Temple, Villanova

• Higher Education: 83 Universities, 300,000 students; the largest

“college town” in the U.S.

• Healthcare and Medical Research: Nine medical schools, 26 teaching hospitals,

240,000 healthcare workers; One of every five

doctors in the U.S. is educated in Philadelphia • Bioengineering Companies: Over 100 establishments; 5,000 employees

• Information Technology Companies: 6,600 establishments, 150,000 employees

• Venture Capital: $1.2 billion provided in 2011



V. WHAT ECONOMIC IMPACT CAN BE

EXPECTED FROM INNOVATION

DISTRICTS?

(Courtesy of our host, New Jersey Future)




BARCELONA (reclaimed Mediterranean Waterfront)

At the center of the Barcelona Innovation District is

World Trade Center Barcelona

University Involvement- Ten universities and 12 research centers

Public Investment- $226.8 Million in transportation and infrastructure

Private Investment- €45 Million (approximately $58.5 Million) in infrastructure

Actual or Expected Economic Impact- A 22.8% increase in residents since 2002

from 73,464 to 90,214;

More than 56,000 new jobs;

Between 2000 and 2011 4,500 new companies moved into the district;

11% of the new companies in the district by 2008 were foreign (“FDI”);

1,300 new housing units were created by December 2011



BOSTON (reclaimed the old “south waterfront”)

At the center of the Boston Innovation District is World Trade Center Boston

University Involvement- 35 colleges are in the vicinity of the district

Public Investment- $6 billion through the “Big Dig”

Private Investment- Most of the land in the district is privately owned

Actual or Expected Results- Since 2010 100 new companies have brought over

3,000 jobs into the district;

Vertex, a pharmaceutical company, is building a 1.1 million sf global headquarters



NEW YORK CITY (the results of an international competition)

University Involvement- The RPF was won by Cornell University/Technion in 2012

Public Investment- $100 Million for infrastructure and construction costs

Private Investment- Cornell received $350 Million from alumnus

Charles F. Feeney of Atlantic Philanthropies;

Cornell is providing $150 Million in revolving financing from its endowment

Actual or Expected Results- $7.5 billion of economic benefit is expected to be

generated in the short-term;

$23 billion expected over three decades;

$1.4 billion in tax revenues;

20,000 construction jobs;

8,000 permanent jobs are expected directly from the project;

600 spinoff companies are expected to be created totaling approximately

30,000 permanent jobs



SYRACUSE (focused on a series of streets transformed into a “Corridor”)

University Involvement- The “Connective Corridor” will link three universities from

the university district to the downtown central business district;

Public Investment- Over $40 Million secured from state and federal sources

Private Investment- Over $200 Million

Actual or Expected Results- 643 jobs created or retained at 41 firms;

100 start-ups have raised more than $15 Million;

A Clean Tech Center has spawned over 24 clean energy start-ups;

An engineering firm moved 350 engineers along the Corridor;

75 new hotel jobs have been created;

75 new information technology jobs



VI. WHY ARE WORLD TRADE CENTERS AND

INNOVATION DISTRICTS A FORMULA FOR

RAPID ECONOMIC DEVELOPMENT?

Greater Philadelphia World Trade Center_______________________________________________ A Global Trading Services Organization

While Innovation Districts are one of the fastest growing themes in

urban planning, global commerce IS the fastest growing sector of the

world economy

•International trade: mid 1960’s = 2.5% of US GDP, 2013 = 25% of US GDP

•World Trade Centers produce extraordinary economic impact

•World Trade Centers are notably urban

•World Trade Centers encourage international reach out

•World Trade Centers spawn collateral growth

•

•World Trade Centers are a living symbol of global commitment


Is There A Role for Government?


Greater Philadelphia World Trade Center________________________________________


Yes. Government has to provide the:

tax incentive package, and

development incentive framework

njfuture redevelopment forum 13 innovation districts schiffman

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innovation districts

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examples of owners