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In the past decade, private developers invested about $1 billion into Philadelphia's Delaware River waterfront — mostly for mixed-use and residential developments, according to an economic impact report commissioned by the nonprofit Delaware River Waterfront Corp. (DRWC).
Public infrastructure money to build parks and trails along the riverfront is meant to spur private investment and keep the river accessible to the public, WHYY Public Radio in Philadelphia reported April 9.
The goal is to help foster projects like Rivermark Northern Liberties, a $223 million mixed-use development near Spring Garden Street and Columbus Boulevard, said Joe Forkin, president and CEO of the DRWC.
In the coming months, the site that in the past has been a trash incinerator, a vehicle impound lot and an outdoor music venue will become apartments, retail space and a public park that connects to the Delaware River Trail.
"We spent many, many years cleaning this [site] out to a residential standard," Forkin explained. "It's going to be a spectacular showcase for everything the master plan endorsed, a really great connection to the river both visually and physically, the connection of the trail that comes through, and a street connector [project]."
An economic impact study by Econsult Solutions Inc. forecasts another $10 billion will be invested along the waterfront by the private sector in the next 10 years.
Approximately $100 million in public funds were spent between 2014 and 2024, and another $500 million in public money is expected to be expended by 2034. Unlike some waterfronts, much of the land along the Delaware River is privately held, meaning the DRWC had to purchase property first and improve the site.
In the past decade, there have been more than 1,200 new residential permits for projects under construction along the 6-mi. stretch of the Delaware Riverfront, as compared to dozens of new commercial building permits, WHYY reported.
And that's been by design.
"We encourage mixed-use development on the riverfront," Forkin explained. "We want to see vibrant art scenes. We want to see restaurants — food and beverage operations for people to gather and experience entertainment. All of that stuff is part of the plan."
Penn's Landing Redevelopment Leading the Way
The biggest public investment will be a $329 million pedestrian-friendly highway cap at Penn's Landing over Interstate 95, known as the Central Access Philadelphia project. The goal is to connect Center City to the Delaware River waterfront and build 12 acres of parkland.
The Penn's Landing redevelopment is a mixed-use project expected to cost $2.2 billion and developed by New York-based The Durst Organization. WHYY noted that that same company paused construction of a nearby $300 million, 26-story apartment tower after building the foundation, but promised it would resume the effort in the coming years.
It is unclear how much of a slowdown there will be in construction along the waterfront, as there is more saturation in the market for residential properties, along with higher interest rates.
Currently, it costs about 20 percent more for developers to build along the Philadelphia waterfront due to soil conditions and other considerations, but it is still considered prime real estate because there is limited space on which to build, Forkin noted.
There also is some redevelopment of existing historic structures, like The Battery, a $200 million project at a retrofitted PECO generation station next to Penn Treaty Park.
The DRWC is chipping in $1.5 million to continue the Delaware River Trail in front of The Battery, and $2 million was spent by the nonprofit to acquire land.
In addition, the $200 million Northbank residential development near Graffiti Pier in Fishtown has already seen the construction of hundreds of homes, with plans to have at least 700 units overall.
The DRWC expects to redevelop Graffiti Pier into a public park. The nonprofit budgeted about $1.3 million for initial planning and land acquisition. Another $2.3 million was for the first phase and $30 million was for future park improvements at Graffiti Pier, according to Forkin.
Officials are hoping for the same demand for vacant land further north in Port Richmond.
"There are still wide swaths of area especially adjacent to the river that are available for development," Forkin told WHYY.
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