2020 Annual Report to the Community: A Defining Decade

A Defining Decade Celebrating 10 Years of Collaboration & Growth

2020 Report to the Community

2020 REPORT TO THE COMMUNIT Y

King of Prussia District: Celebrating 10 Years of Collaboration & Growth It is hard to believe that our organization is celebrating its 10-Year Anniversary in 2020.

It seems like only yesterday that a handful of property owners and the Township gathered together to discuss ways that they could work together to improve the business climate in Upper Merion Township/King of Prussia. Two years later, in May 2010, the King of Prussia Business Improvement District, Inc. (King of Prussia District) was formed to serve as a catalyst for economic development and job growth and to help resurrect the image of King of Prussia as a place to do business. Since that time, King of Prussia District contributed significantly to the resurgence of King of Prussia in the commercial, residential, retail and hospitality industries and played a contributing role in the more than $3B in economic development activity since 2010.

In forming King of Prussia District, property owners and the Township believed that working together, through a robust execution of five programs, we could turn around the once flat growth in the Township’s commercial centers. The five programs established in 2010 continue today and include: • Marketing & Communications

Carol McCoy Board Chair

• Physical Improvements • Transportation • Land Use & Zoning • Tax Policy

Eric T. Goldstein Executive Director

Since 2010, a dedicated all-volunteer Board of Directors, a small paid staff and several dozen program committee members have worked alongside Township, County and State officials, more than 400 participating property owners, countless corporate sponsors, residents, and businesses, the Upper Merion Area School District, grant makers and allied non-profit organizations to effectively improve the community's position as a premier live-work-play-stay community.

During the past decade, we were able to help lower vacancy rates in commercial office buildings, increase local and outside investment in King of Prussia’s economy, attract new retailers and dining establishments, improve access to King of Prussia, improve pedestrian and vehicular safety within King of Prussia, enhance the look of commercial corridors and high-visibility entry points into the community, enliven the community through numerous event programs, leverage private dollars into millions of public dollars, raise property values and keep residential real estate taxes low.

We are enormously proud of what we achieved working alongside you.

But we believe this is only the beginning. In 2019, Upper Merion Township voted to extend our organization for another five years (through 2025), expand our geography and increase the number assessed property owners, allowing us to enhance our work even more.

Cover: US corporate headquarters of GeoBlue at 933 First Avenue

King of Prussia District has been an effective and efficient contributor to the resurgence of King of Prussia in the past ten years. We are grateful for your ongoing support of our organization and our mission to engage public and private partners to collaboratively improve the economic environment in King of Prussia by making it more vibrant, attractive and prosperous.

We hope that you benefit from the information contained in this report and find it useful as a reference going forward. As always, we welcome your feedback, so please share your questions and comments.

C ONTE NT S

4

King of Prussia District

8

Economic Development

8

About – Our Mission – King of Prussia District Award Winners

Current and Future Development Projects

Commercial Real Estate & Employment Top 10 Leases in Past Ten Years

24

Hospitality & Attractions

30

Retail & Dining

34

Transportation & Physical Improvements

42

King of Prussia Rail

46

Community & Housing

52

Education

56

Community Events

62

Revenue & Expenses

64

Event Sponsors

Hotels in King of Prussia – Top Attractions

King of Prussia Mall – King of Prussia Town Center

King of Prussia District Initiatives – Infrastructure Enhancements

KING OF PRUSSIA

IN THE SPOTLIGHT Whether we’re pitching editors, engaging with our thousands of social followers or deploying aggressive advertising campaigns, King of Prussia District works tirelessly to keep KOP top-of-mind and tell the stories behind this community’s incredible transformation.

Driving Business Through Advertising Campaigns In 2019, King of Prussia District launched a new multi-channeled marketing and advertising campaign targeting CEOs and C-Suite executives called Make the Move that positioned KOP as the suburban market’s premiere location for corporate headquarters. The advertising campaign, which included billboards, bus ads and print and digital ads, was complimented by a landing page, businessinKOP.com, highlighting the many benefits of operating a business in KOP.

King of Prussia Rail Coalition – Project Updates

Demographics

Enrollment – Colleges & Universities

King of Prussia District Initiatives – Beerfest, KOP Shops for CHOP

Board of Directors – Staff

Sharing the Stories that Set us Apart King of Prussia District produced three new videos in 2019 to coincide with our campaigns. The first video was released in conjunction with the Make the Move campaign and a refresh of the homepage of VisitKOP.com and features interviews with business owners in KOP. King of Prussia District also released two videos to promote KOP Restaurant Week and KOP Shops for CHOP: A fast-paced promotional video for social media, and a longer-form video that pulls at the heartstrings and will be used for sponsor, restaurant and recruitment moving forward.

In 2019, King of Prussia District also launched a blog on VisitKOP.com to allow for more in-depth storytelling about events, programs and the businesses and organizations that call KOP home.

Raising KOP’s Visibility Through Press Outreach

Building Community Online Social Media Followers

In the time the business improvement district has been around, King of Prussia has experienced unprecedented development and investment activity.”

– Philadelphia Business Journal, Dec. 5, 2019

“O N CE S LE E PY KIN G O F PRUS S I A I S N OW B O OM IN G WI T H D E V E LO PM E N T ”

@KINGOFPRUSSIADISTRICT

13,295

KOP BEERFEST ROYALE

2,394

FRIENDS OF KOP RAIL

609

KOP RESTAURANT WEEK*

599

@KOPBID

7,709 @KOPBEERFEST

– Philadelphia Inquirer, Jan. 8, 2020

749

@SUPPORTKOPRAIL

237

@KOPRESTAURANTWK

39

“ T H RE E Y E A RS L AT E R , KO P O FFI CE B U ILD IN G T R A D E S FO R MO RE T H A N D O U B LE ” – Philadelphia Business Journal, Oct. 23, 2019

@VISITKOP

2,245

KING OF PRUSSIA DISTRICT

“ $5 0 0M PRO J EC T PL A N N E D FO R FO RM E R

804

U PPE R M E RI O N G S K C A M PUS ” – Philadelphia Business Journal, June 6, 2019

As of April 1, 2020 *Launched February 2020

ABOUT

KING OF PRUSSIA DISTRICT

4 • 2020 Report to the Community

King of Prussia District is a private, not-for-profit, 501(c)3 business improvement district founded in 2010 by Upper Merion Township (UMT) Ordinance. King of Prussia District serves as a catalyst for economic development and job growth and seeks to elevate property value throughout the community through its programs and services.

Working with UMT and the 441 commercial, industrial and multi-family residential property owners within the established 1,985 acre boundary that defines the district, King of Prussia District develops and executes strategies that install resident, corporate and investor confidence. King of Prussia District’s programs and services, and its impact on economic development, help drive revenue for UMT, the Upper Merion Area School District, Montgomery County and the Commonwealth of Pennsylvania.

Within King of Prussia District’s NEW Expanded Boundary

44 $2. 3B , 985

The Smith Valley Forge

Property Owners

Total Assessed Property Value

Children's Hospital of Philadelphia

Acres The Village at Valley Forge

About King of Prussia District • 5

Our Mission

King of Prussia District engages public and private partners to collaboratively improve the economic environment in King of Prussia by making it more vibrant, attractive and prosperous.

Our mission comes to life through a five-point program plan: Physical Improvements From public parks and bike lanes, to signage and landscaped medians along some of KOP's most visible and highly-traveled commercial corridors, King of Prussia District manages design, construction and maintenance of projects that enhance KOP's aesthetic.

Funding These Programs King of Prussia District programs are funded through a special assessment fee made possible by commercial, industrial and multi-family residential property owners within its boundary. The assessment fee is 0.00089 MILS, (approximately 3.49%) of the total real estate tax bill for property owners. The millage rate has remained the same since the District was founded in 2010. With the exception of a Township contribution of $75,000 for theconnector shuttle bus system to help reduce traffic and congestion in the high trafficked commercial areas of the Township, King of Prussia District’s $2.8M, 2019 budget consists entirely of private contributions, assessment fees and sponsorships.

97.3%

of King of Prussia District’s $2.8M, 2019 Operating Budget were PRIVATE contributions.

Land Use & Zoning King of Prussia District works closely with the Township to develop strategies for a comprehensive and cohesive forward-thinking vision for the future of KOP.

Tax Policy King of Prussia District continually monitors existing tax codes of the region’s largest commercial centers to ensure that UMT remains competitive and attractive to companies, employees and residents.

Transportation King of Prussia District is dedicated to making life flow in KOP, effecting game-changing transportation solutions that enhance vehicular, pedestrian, bicycle and public transportation access.

Marketing & Communications Committed to keeping King of Prussia’s profile in the forefront and maintaining its reputation as one of America’s great edge cities, King of Prussia District executes robust marketing and advertising campaigns and produces award-winning events throughout the year.

6 • 2020 Report to the Community

BID BOUNDARIES

COMMERCIAL

APARTMENT (>100 UNITS)

INDUSTRIAL

KING OF PRUSSIA DISTRICT

2020 Award Recipients At our upcoming 10th Anniversary Gala & Awards in December, King of Prussia District is excited honor the individuals who were instrumental in the founding of our organization, as well as companies and organizations that have made significant impact in KOP since 2010.

Pinnacle Award Brian G. McElwee

Hospitality Valley Forge Tourism & Convention Board

Founders Awards Clint Cochran Richard W. Kubach, Jr. Skip Kunda Arthur Powell (posthumous) Scott W. Sibley Ronald Wagenmann

Leadership Upper Merion Township Upper Merion Area School District

Champion Conlin’s Digital Print & Copy Center State Representative Tim Briggs

Retail/Dining Simon Property Group

Residential Development Candlebrook Properties, LLC Hanover Property Company

Transportation Pennsylvania Department of Transportation

Commercial Office Brandywine Realty Trust Economic Development Realen Properties

In 2019, King of Prussia District Assessed Property Owners Contributed Significant Tax Revenue to the Local Economy

$83 K

$7.4M

Montgomery County Community College

Montgomery County Real Estate

$ 4.6M $ 4 3.3M Township Real Estate

Upper Merion Area School District

— Montgomery County Information & Technologies Solutions, 2020

About King of Prussia District • 7

ECONOMIC DEVELOPMENT

8 • 2020 Report to the Community

GeoBlue

Since 2010, King of Prussia experienced over $3B in economic development projects across a wide spectrum of industries.

The result is a more economically diverse community that is better equipped to weather varying economic cycles.

Most Significant Developments of the Last 10 Years King of Prussia Town Center/ The Village at Valley Forge

2

The Village at Valley Forge

Children’s Hospital of Philadelphia

3

160 N. Gulph Rd.

King of Prussia Mall Expansion

| North Facade Perspective and Elevation

In 2015, Children’s Hospital of With 2,450 for-sale and rental housing Philadelphia (CHOP) opened their units, and major institutions like four-story, 135,000 SF King of Prussia Children’s Hospital of Philadelphia and Specialty Care & Surgery Center.

Main Line Health, The Village at Valley The facility includes 68 exam rooms, Forge has quickly become KOP’s new more than 30 medical and surgical downtown. At the heart of the 126-acre subspecialties, sports medicine and mixed-use community is the 260,000 PT/OT gyms, a pediatric imaging center, SF pedestrian-friendly King of Prussia a day hospital for oncology patients, Town Center, that, since its opening in a sleep center, an urgent care center 2016, continues to attract first-to-market King of Prussia New Hospital Upper Merion Township Meeting center.

- 10/30/18 3 and an –ambulatory surgery retailers and restaurants centered CHOP is currently building a 250,000 around the Town Square.

SF inpatient hospital next to the existing outpatient center.

Completed in 2016, King of Prussia Mall’s $150M, 155,000 SF expansion connected its former two buildings into one shopping mecca. Now, the East Coast’s largest shopping mall features 450+ luxury and first-to-market retailers, a new food court, valet parking and a concierge.

$3B

in Economic Development

Economic Development • 9

4

The Village at Valley Forge

Indigo 301

The first multifamily development to open in The Village at Valley Forge in 2016, Indigo 301 features 363 contemporary one, two and three-bedroom apartments just steps away from Main Street at King of Prussia Town Center.

9

600 River Rd.

FedEx Distribution Center

5

725 Caley Rd. 650 S. Henderson Rd.

Caley & Gulph Elementary Schools

In an effort to modernize the township’s outdated schools, Upper Merion Area School District invested $64M in two new K-4 elementary schools, each with a capacity of 525 students.

The schools opened in September 2018 and enabled the district to offer full-day kindergarten for the first time.

$50M 251 Dekalb's renovation transformed one of KOP’s most troubled properties

The FedEx Distribution Center is 315,897 SF and employs approximately 200 to 300 people. The facility opened in 2016 and cost $52M to develop, further enhancing KOP's already significant industrial market.

10 • 2020 Report to the Community

6

480 N. Gulph Rd.

Sheraton Valley Forge Hotel

Delivered in 2012, the $30M hotel features 180 guest rooms, 25,000 SF of meeting space including an 11,000 SF ballroom, an indoor pool and a fitness center. The Sheraton elevated the hospitality scene in KOP and is consistently a top performer.

7

Moore Park

GeoBlue

Developed in 2017 by Brandywine Realty Trust for GeoBlue’s corporate headquarters, the 110,000 SF buildto-suit Class A office building in Moore Park (then known as the King of Prussia Business Park) was the first new office building in almost 15 years. The GeoBlue HQ includes a gym, private company café and a full training center.

8

431 W. Valley Forge Rd.

Upper Merion Township Community Center

Built in 2016, the 70,000 SF state-ofthe-art facility offers an array of classes, camps and activities for residents and non-residents. The Center is equipped with an indoor track, group fitness rooms, multiple courts, meeting spaces and a cooking studio.

0

251 W. Dekalb Pk.

251 DEKALB

In 2016, Candlebrook Properties transformed the former Marquis Apartments into 650 studio, one, two and three-bedroom units situated in a 26-acre gated community. The $65M acquisition and $50M renovation transformed one of KOP’s most troubled properties into the first luxury housing development in nearly 20 years.

Economic Development • 11

Now Complete

The Village at Valley Forge

The Village at Valley Forge

Moore Park

The Brownstones

Main Line Health

SKYE 750

Toll Brothers sold the last of their 132 high-end townhomes in The Village at Valley Forge. The stacked townhomes are situated in 11 buildings.

Main Line Health is now accepting patients at their $32M, 94,000 SF health center, which includes a specialty care center for women in partnership with Axia Women’s Health. The seven-story building features a demo kitchen, interactive wellness classes and a rooftop farm. Services include primary care, heart health, obstetrics and gynecology, breast health, skin care and emotional wellness. An ambulatory care center offers a variety of services to men and women.

Situated on 5.2 acres in the center of Moore Park, SKYE 750 is a five-story apartment complex featuring 248 one and two-bedroom units. The complex boasts an elevated interior courtyard with an expansive pool, state-of-theart fitness center, private movie theater and a resident lounge.

The Village at Valley Forge

Hanover Town Center Houston-based Hanover Company is now leasing its third luxury apartment building in The Village at Valley Forge. The 392 studio, one, two and three-bedroom units feature open-concept kitchens with stainless steel appliances and high-end finishes. The complex also offers a resort-style pool, lounge areas and a fitness center.

12 • 2020 Report to the Community

538 Swedeland Rd.

Steelyard Sports

160 N. Gulph Rd.

King of Prussia Mall Simon Property Group, Inc. invested approximately $25M in upgrades to the section of the mall formerly known as the “Plaza.” Improvements included replacing tiles, handrails and light fixtures, adding soft seating to corridors and renovating restrooms.

The state-of-the-art indoor sports complex, bordering the Innovation Renaissance corporate park, opened in early 2019. Steelyard Sports offers practice and training space for lacrosse, soccer and baseball, as well as adult pickup games.

ECO N O M I C D E V ELO PM EN T P R O J EC T S

2020 and Beyond

160 N. Gulph Rd.

King of Prussia Mall Simon Property Group, Inc. is expected to release plans in 2020 for a mixed-use development near the old JCPenney. Site work is slated to begin in early 2021.

260 Mall Blvd.

Crowne Plaza Philadelphia – King of Prussia The Crowne Plaza is currently undergoing a multi-milliondollar renovation, which began in 2018 with its restaurant, lounge, lobby and front desk. In 2020, the Crowne will overhaul the two ballrooms and the conference rooms.

480 N. Gulph Rd.

Element Hotel Wurzak Hotel Group is building the Element Hotel on the same eight-acre parcel as their other KOP hotel, Sheraton Valley Forge. The 120-room hotel will offer suites with kitchenettes designed for extended stay or short term stay options and is expected to open late summer 2020.

Economic Development • 13

| South Facade Perspective and Elevation

4

The Village at Valley Forge

The Village at Valley Forge

Children’s Hospital of Philadelphia (CHOP)

CubeSmart & UMT Emergency Services Station

CHOP’s King of Prussia campus will be anchored by a new, 250,000 SF inpatient hospital next to its existing Specialty Care & Surgery Center. Plans include 52 inpatient beds, care King of Prussia – Upper Merionof Township Meeting - 10/30/18 forNew a Hospital broad range pediatric specialties, a 24/7 20-bay emergency department specializing in pediatric care and an operating room suite. The new hospital is expected to open in 2021 and will be CHOP’s first inpatient hospital outside of its primary Philadelphia city location in the organization’s history.

Currently under construction, this seven-story building at 400 Guthrie Rd. will include 98,650 SF of storage space operated by CubeSmart over six floors. The 10,698 SF on the ground floor will be dedicated to a fire station operated

by Upper Merion Township. The hybrid concept is new to the Philadelphia area.

The Village at Valley Forge

Anthology of King of Prussia Chicago-based CA Ventures and Wholsen are currently building an 11-story senior living facility with 97 independent living units, 63 assisted living units and 32 memory care units at 350 Guthrie Rd. The facility will also include a fitness center, indoor pool, spa, a physical therapy room, theater, library, dining options, game and activity rooms and landscaped gardens.

14 • 2020 Report to the Community

The Village at Valley Forge

Saulin Blvd. & Dekalb Pk.

575 South

208 Townhomes & 65 Single-Family Homes

Not far from its townhome project, The Brownstones, Toll Brothers is developing the only for-sale condominium project in The Village at Valley Forge. The $30M building includes 60 one, two and three-bedroom condos, which are 50% sold out (Q1 2020). The condos at 575 South are rich with highend finishes and priced from the mid-$300,000s. Amenities include a rooftop lounge, fitness center, theatre room and a golf simulator. Move-ins are expected to begin in April 2020.

The Village at Valley Forge

Multi-Family Development (unnamed) Chicago-based UDR Inc., which purchased Park Square in Moore Park, is in the planning and final approvals stage for a 200-unit multifamily project at 140 Valley Green Ln. The development will include 200 studio, one and two-bedroom units in two buildings, as well as 7,000 SF of indoor amenity space and 25,000+ SF of outdoor courtyard space. Construction is expected to begin in Q3 2020, with estimated delivery in Q2 2022.

Approvals are in the final stages for a 208 unit townhome and 65 unit single-family residential development on vacant land near the intersection of Saulin Blvd. and Dekalb Pk. The project will also involve significant improvements to the signalized Saulin Blvd. intersection as well as an extension of Prince Frederick Rd.

301 W. Dekalb Pk.

DoubleTree by Hilton Valley Forge Following the 2018 acquisition by Concord Hospitality Enterprises Co., the DoubleTree began an extensive $18M renovation early in 2020. The project, which is expected to be complete by June 2020, includes an overhaul of the lobby and public spaces, in addition to the hotel’s 25,000 SF of event space. The hotel’s 327 guest rooms will also undergo extensive renovations.

Economic Development • 15

Innovation Renaissance

1400 N. Outer Line Dr.

Discovery Labs

Valley Forge National Historical Park

Discovery Labs is a 1.6M SF campus currently being marketed as one of the premier life sciences locations in the country. This former GlaxoSmithKline location has wonderful infrastructure including turnkey wetlab space, backup power generation capabilities and considerable room for expansion.

Construction is underway on a $14M+ renovation of the current visitor center, the first since 1976. Once complete in late spring of 2020, the 18,376 SF building will have improved physical accessibility, upgraded security and fire protection, collections storage, new HVAC systems and enhanced energy-efficiency. New exhibitions can also be expected with the completed project.

900 River Rd.

440 Crossfield Rd.

King of Prussia Logistics Hub

Upper Merion Area High School

Novaya Foxfield Industrial, which is the mid-Atlantic division of Novaya Real Estate of Boston, acquired the 29-acre former Johnson Matthey Inc. chemical plant and plans to develop a 350,000 SF distribution center that they are calling the King of Prussia Logistics Hub.

Construction of the new Upper Merion Area High School will begin in 2020 on the high school’s current property. The 300,000 SF high school is expected to open September 2022, and will include an indoor track, auditorium, fitness center and a greenhouse. Following the opening, the existing high school will be torn down and converted into artificial turf and grass athletic fields.

16 • 2020 Report to the Community

MOORE PARK

3.7

Acres in the Heart of Moore Park

Moore Park

650 Park Brandywine Realty Trust is building a new four-story 100,000 SF Class A office building designed by Coscia Moos Architecture on 3.7 acres in the heart of Moore Park. The building will include open-air amenity spaces, communal work environments and a fourth-floor terrace designed for classes, lunch meetings and evening gatherings. The project will also incorporate the designs for the First Avenue Linear Park.

Moore Park

23.6 Acres at 588 N. Gulph Rd.

Topgolf Villanova-based Provco Group announced plans to develop a Topgolf facility on 23.6 acres at 588 N. Gulph Rd., the former headquarters of the American Baptist Church. The 68,000 SF Topgolf will feature state-of-the-art golf entertainment for all ages along with a restaurant and numerous bars. Topgolf is expected to open in late 2021.

Moore Park

$33M PennDOT District 6 Expansion

King of Prussia PennDOT The Pennsylvania Department of Transportation (PennDOT) will break ground on a new traffic management center in 2020. The $33M project will allow PennDOT to increase staff to handle growing District 6 demands. The new, two-story, 30,000 SF facility will be built on a parcel of land near PennDOT’s current center at 7000 Geerdes Blvd.

Economic Development • 17

COMMERCIAL REAL ESTATE & EMPLOYMENT

Total Employment Up 17% in 7 Years

61,890 est. 2017

60,087 est. 2015

52,844 est. 2010

– US Census Bureau, Center for Economic Studies 18 • 2020 Report to the Community

King of Prussia is home to the largest concentration of commercial office, retail, industrial and flex properties in the Philadelphia suburban region.

Commercial Office Statistics

35

Properties

7.9M Total SF

.8%

Q1 2020 Vacancy Rate

Note: Aggregate Class A, B and C Q1 2020

Class A

Class B

Class C

4.5M

3.0M

4 32K

45

74

6

Total SF

Properties

Total SF

Properties

Total SF

Properties

Average Rate

Average Rate

Average Rate

$35.50

$24.31

$27.34

Q1 2020 (Up 35% since 2010)

Q1 2020 (Up 10% since 2010)

Q1 2020 (Up 50% since 2010)

14.5%

8.5%

6.4%

Q1 2020 vacancy rate

Q1 2020 vacancy rate

Q1 2020 vacancy rate

$26.13

$21.97

$18.19

Q1 2010

Q1 2010

Q1 2010

15.2%

12.4%

8.3%

Q1 2010 vacancy rate

Q1 2010 vacancy rate

Q1 2010 vacancy rate Commercial Real Estate & Employment • 19

Selection of New Headquarters in King of Prussia Since 2010

Top Five Counties Where KOP Employees Reside

American College of Financial Services

County

2017

2010

BlackTree Healthcare Consulting Camber Spine Technologies

1

Montgomery

30.4%

31.7

(18,815)

(16,837)

2

Philadelphia

14.7 (9,107)

15.0 (7,980)

3

Chester

14.4 (8,940)

13.4 (7,113)

4

Delaware

11.4 (7,031)

10.7 (5,679)

5

Bucks

5.9 (3,628)

6.0 (3,205)

CardConnect CSL Behring DrugDev Evolve IP GeoBlue Purolite QLIK Quench – US Census Bureau, Center for Economic Studies

Radial Renmatix The Judge Group

Inflow/Outflow of Employees Type

2017

2010

Employed Inside/Live Outside

59,002

50,233

Live Inside/Employed Outside

12,823

11,995

Work + Live in KOP/UMT

2,888

2,804

Trilion Quality Systems Vertex List incomplete

4,02

Number of companies in King of Prussia

Distance to Work Miles

2017

2010

< 10

28.8%

29.2%

10-24

47.1

46.9

25-50

11.5

11.8

< 50

12.6

12.1

King of Prussia District is 3.1 SQ Miles with 19,677 Jobs Per SQ Miles 20 • 2020 Report to the Community

Top 10 Leases and Sales in the Past 10 Years Leases

Flex and Industrial Space Flex

Commercial Sales

2.8M SF 73 Flex properties

1

1190 Devon Park Dr.

King of Prussia Mall

18.9% Q1 2020 9.2% Q1 2010 vacancy

2

Maschellmac Office Complex

1160 First Ave.

3

2301 Renaissance Blvd.

200 Main St.

Note: The higher vacancy in Flex properties in King of Prussia is largely due to the sale and repositioning in progress at the old GlaxoSmithKline campus along Swedeland Road.

Industrial 6.5M SF

4

933 First Ave.

301 Village Dr.

142 Industrial properties 0.3% Q1 2020 vacancy

5 6

500 N. Gulph Rd.

751 Vandenburg Blvd.

250 King Manor Dr.

Horizon Drive & 2560 Renaissance Blvd.

3.7% Q1 2010 vacancy

Industrial/Flex Aggregate 9.3M SF 215 Total properties

7

151 S. Warner Rd.

251 W. Dekalb Pk.

5.9% Q1 2020 vacancy 5.4% Q1 2010 vacancy

8

3500 Horizon Dr.

1170-1190 Devon Park Dr.

9

1018 W. Ninth Ave.

1000 Continental Dr.

211 S. Gulph Rd.

411 Swedeland Rd.

10

Employee Educational Attainment King of Prussia employees have an exceptionally high educational attainment record stemming from the abundance of aerospace, science, technology and life sciences employers in the Township.

2 5

3.% 2 .6%

Total Properties

Bachelorâ&#x20AC;&#x2122;s Degree or Advanced Degree

Some College or Associates Degree Commercial Real Estate & Employment â&#x20AC;˘ 21

Real Estate Transactions (Total SF) Qtr. 1

Qtr. 2

Qtr. 3

Qtr. 4

800K

700K

600K

SF

500K

400K

300K

200K

100K

0 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Market Rent Growth (YOY)

Market Sale Price Per SF Distribution

8%

30%

6%

25%

4%

20%

2%

15%

0% 10% -2% 5% -4% -6%

0% 2010

2011

2012

2013

22 â&#x20AC;˘ 2020 Report to the Community

2014

2015

2016

2017

2018

2019

<$100

$100 $120

$120 $140

$140 $160

$160 $180

$180 $200

$200 $220

$220 $240

>$240

$ 60K

$ 4 0M

Market Sales Price per SF in 2019

Market Sale Price Per SF Class A

Class B

Sales Volume in 2019

Vacancy & Market Rent Per SF

Class C

Vacancy Rate

$240 $220

Market/Rent SF

20%

$28

18%

$27

16%

$26

14%

$25

12%

$24

10%

$23

$180 $160 $140

Market/Rent SF

Vacancy Rate

$200

$120 $100

8%

$80 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Net Absorption Qtr. 1

Qtr. 2

Qtr. 3

$22 2010

2011

2012 2013 2014 2015 2016 2017 2018 2019

Sales Volume & Market Sale Price Per SF

Qtr. 4

Sales Volume

Price/SF

300K

Market Sales Price Per SF

Net Absorption SF

100K 0 -100K -200K -300K -400K -500K 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

$200

$160M

$190

$140M $120M

$180 $170

$100M

$160

$80M

$150

$60M

$140

$40M

$130

$20M

$120

$0 2010

2011

2012

2013

2014

2015

2016 2017

2018 2019

Commercial Real Estate & Employment â&#x20AC;˘ 23

Sales Volume

200K

HOSPITALITY & ATTRACTIONS

24 â&#x20AC;¢ 2020 Report to the Community

DoubleTree by Hilton Valley Forge

With nearly 2,600 hotel rooms and 180,000 SF of meeting space, King of Prussiaâ&#x20AC;&#x2122;s 14 hotels are ready to welcome those traveling for business or leisure.

KOP has 28% of all hotel rooms in Montgomery County

73.5% 70. % 6 .8% 2,556

Best Western Plus

Tuesday is the highest hotel occupancy day of the week

Average weekend occupancy

Sheraton Valley Forge

Average weekday occupancy

Extended Stay America

Number of hotel rooms in KOP

Hospitality & Attractions â&#x20AC;˘ 25

Exciting Investments in KOP’s Hotels

Hotels in King of Prussia Number of Rooms

SF of Meeting Space

Best Western Plus, The Inn at King of Prussia

168

2,020

Crowne Plaza – Philadelphia/King of Prussia

227

24,000

DoubleTree by Hilton Valley Forge

327

24,000

Extended Stay America

140

0

Fairfield Inn Philadelphia – Valley Forge

80

0

Hampton Inn – King of Prussia

149

528

The DoubleTree is investing $18.5M in an extensive overhaul of its lobby, public space, event space and 327 guest rooms.

Holiday Inn Express Hotel & Suites – KOP

148

0

Home2 Suites

115

0

A multi-million dollar renovation is underway at the Crowne Plaza, with the restaurant, lounge, lobby and front desk complete in 2019, and ballrooms and conference rooms in early 2020.

HYATT House King of Prussia

147

3,011

HYATT Place – Philadelphia/KOP

129

1,064

Motel 6 – King of Prussia

170

0

Sheraton Valley Forge

180

25,000

SpringHill Suites Philadelphia/ Valley Forge/KOP

131

350

Valley Forge Casino Resort & Conference Center

445

100,000

2,556

179,973

Boyd Gaming deflagged the Radisson Hotel at Valley Forge Casino Resort in January 2020 and is expected to announce improvements within the year.

Wurzak Hotel Group, owner of the Sheraton Valley Forge, is under construction on the Element, a 120room hotel expected to open late summer 2020.

Hotel

TOTAL

608,074 26 • 2020 Report to the Community

Number of hotel rooms booked in KOP in 2019, up from 597,005 in 2018.

From comedy shows and historical storytelling, to brewery tours and indoor skydiving, you’ll never get bored in King of Prussia.

Fun is in the Cards As the region’s only full-amenity gaming resort, Valley Forge Casino Resort (VFCR) is a destination like no other in KOP. Try your luck on VFCR’s 40,000 SF gaming floor, featuring 850 slot machines and 50 table games, or experience their brand-new FanDuel Sportsbook, offering 1,800 SF of sports betting, with seven betting windows, 27 television screens, and two sports tickers. With copious nightlife options like concerts, comedy acts and dueling pianos, six restaurants and nearly 500 hotel rooms, you may want to make a weekend out of it.

The [Valley Forge Casino Resort] stood out from other facilities in the area, finishing the year with a 28% total revenue increase from $129.5 million in 2018 to $165.8 million last year.

The casino blew its comrades across the state out of the water in the new world of legal sports betting, raking in a $570.7 million handle — more than double the amount wagered at any other casino.”

– Philadelphia Business Journal, Feb. 3, 2020

$ 65.8M

Revenue in 2019

Hospitality & Attractions • 27

The Escape Game

Teambuilding Paradise Whether you want to strengthen bonds with your corporate team, are looking for a unique bachelor/bachelorette party outing, or simply want to connect with family, there are a plethora of options in King of Prussia. Test your aim and root on your teammates as you hurl a 3.5lb axe at a target at Bury the Hatchet: Axe Throwing in Moore Park.

Or, work as a team to solve puzzles and riddles before the clock runs out in one of four escape rooms: Escape Room Mystery, Expedition Escape, Amazing Escape Room and, new in 2019, The Escape Game.

Looking for something more low-key? From brewery tours to quizzo, there’s always something brewing at Workhorse Brewing Company and Conshohocken Brewing Company. iFLY

Adrenaline Junkies Unite Get your heart pumping as you experience the thrill of flight in iFLY’s indoor flight chamber. Advance your skills with private lessons or group classes, or take advantage of their STEM programs for kids.

Those wanting to stay a bit more grounded will enjoy the foam pits, slack lines and dodge ball at Get Air Indoor Trampoline Park.

Let’s Get Physical

Philadelphia Runner

Happy Place

Ready to work up a sweat? From boot camps to barre, Pilates to CrossFit, there are plenty of studios, gyms and athletic clubs to help you level up your fitness game in King of Prussia. If you prefer fresh-air fitness, hit one of 35 parks and open space areas within Upper Merion Township. Or, grab your bike and hop on the Schuylkill River West Trail, a multi-use, 15.5-mile continuous trail and greenway that runs through the township. Philadelphia Runner, new to the King of Prussia Mall in 2019, and Road Runner Sports in King of Prussia Town Center, also offer group runs for all levels throughout the week.

35

Parks and open space areas within Upper Merion Township

Popping Up at KOP Mall In addition to offering world-class shopping and incredible dining, King of Prussia Mall hosted some unique activations and pop-ups in 2019.

Happy Place, a fully-immersive, pop-up exhibit, took up residence in 15,000 SF of the former JCPenney building in October 2019. Originally scheduled to close January 5, Happy Place extended its stay until February 29 due to demand. KOP Mall also hosted a pop-up farmers market in July 2019, in partnership with Upper Merion Township.

28 • 2020 Report to the Community

VALLEY FORGE NATIONAL HISTORICAL PARK

.8M

Visitors to Valley Forge National Historical Park in 2018

$24M Spent in communities near the park

Experience History

382

Jobs supported

$36M

With close to 30 miles of trails, trolley and bicycle tours, historical storytellers and incredible events year-round, people come from all around the world to experience the history and beauty of Valley Forge National Historical Park. In 2018, construction began on a $14M renovation of the current Visitor Center, the first since 1976. Once complete in late spring of 2020, the 18,376 SF building will have improved physical accessibility, upgraded security and fire protection, collections storage, new HVAC systems and enhanced energy-efficiency.

New exhibitions can also be expected with the completed project. A 5,760 SF temporary Visitor Center and Encampment Store is currently open 800 feet from the old center to welcome visitors.

Cumulative benefit to the local economy

â&#x20AC;&#x201C; 2019 National Park Service (NPS) Report

Hospitality & Attractions â&#x20AC;˘ 29

RETAIL & DINING

30 â&#x20AC;¢ 2020 Report to the Community

King of Prussia is synonymous with world-class retail and never-ending dining options, and for good reason. Simon Property Group’s shopping behemoth, the King of Prussia Mall, the bustling King of Prussia Town Center, the Valley Forge Shopping Center, Courtside Square, and many other retail corridors throughout Upper Merion Township, continue to challenge the myth that brick-and-mortar retail has had its day.

5.4M 7 0,035 9

Total retail SF

# of retail properties

Average Lease Rate Amount of retail SF added since 2010 – CoStar, 2020

3.5% Q1 2020 vacancy rate

6%

Increase since 2010

$25.73/nnn Q1 2020

$24.23/nnn Q1 2010

Retail & Dining • 31

King of Prussia Mall With 450+ stores and 30+ eateries, King of Prussia Mall is one of North America’s premier shopping destinations, attracting over 20M people each year.

With a focus on customer service, King of Prussia Mall offers valet parking, coat and package check and a Concierge service. King of Prussia Mall even rolled out a parking app just in time for the Holiday 2019 season, making the shopping experience that much easier.

Always innovating and improving, King of Prussia Mall has quadrupled in size since its opening in 1963. In 2016, KOP Mall invested $150M in a two-year expansion project that added 155,000 SF of retail and physically joined the previously disconnected two sections of the mall. In 2019, Simon completed a $25M renovation of the section of the mall formerly known as the “Plaza.”

In 2020, it is expected that Simon will announce a mixed-use redevelopment project focusing on the former JCPenney site.

Largest Retail Developments Since 2010

345,000 SF redevelopment of Valley Forge Shopping Center

385,000 SF development of King of Prussia Town Center

55,000 SF expansion of King of Prussia Mall

$25M

In 2019, Simon completed a $25M renovation of the section of the mall formerly known as the “Plaza.”

Comparison to Other Retail Centers Retail SF

Retail Vacancy Rate

Rent/SF ($)

Philadelphia CBD (Spring Garden – South St.)

12,328,295

1.9%

$33.71/nnn

Cherry Hill, NJ

7,694,468

3.3%

$20.32/nnn

King of Prussia

5,378,935

3.6%

$25.73/nnn

Marlton, NJ

3,236,352

4.3%

$18.73/nnn

Plymouth Meeting, PA

2,184,390

4.0%

$32.00/nnn

Conshohocken, PA

2,499,470

5.0%

$21.93/nnn

Location

– CoStar, 2020

32 • 2020 Report to the Community

Retailers Now Open in KOP AJ Moore

Modani Furniture

Aldi

Morphe

APM Monaco

Philadelphia Runner

As Seen on TV

Provonias

b8ta

Rise Dispensary

Balsam Hill

Seventh Sense Botanical Therapy

Charles P Rogers Dormify Drybar EGG New York Eloquii Fabletics Green Life Spa Harry & David Heart + Paw Herbology Hobby Lobby Hope & Henry Kalos Kung Fu Tea Lalama

Sheex Shibe Vintage Sport Smile Direct Spavia Spencer’s Workshop Sticky Situations & Extra Virgin The Escape Game Tillys Showcase Verizon Warby Parker Williams Sonoma Windsor Fashions Zadig & Voltaire

Love Obsessed

Restaurants Now Open in KOP Bartaco California Tortilla Cinnabon Cup of Dough Godiva Café

Mezeh Mediterranean Grill Popeye’s Louisiana Kitchen

King of Prussia Town Center Offering a taste of city life with the ease of the suburbs, King of Prussia Town Center attracts eager shoppers and diners with its unique architecture and walkable main street appeal. Flanked

by Wegman’s and just steps from the 2,900 luxury apartments at The Village at Valley Forge, it’s no wonder the retail space is leasing up quickly. In August 2019, Williams Sonoma announced plans to open a 6,000 SF space in King of Prussia Town Center, joining other new 2019 tenants like Drybar, Heart + Paw, Smile Direct, Spavia and Verizon.

The heart of King of Prussia Town Center is the central pavilion and green space. From yoga, to outdoor concerts and movies, Town Center plans events year-round to keep the community engaged and the area lively.

Town Center is as much about providing a wealth of options as it is room to play.

The descriptive words we heard over and over again: “experience,” “oasis,” and “hometown redefined.”

– CBS3 Philly

Restaurants Coming Soon Bonchon Buffalo Wild Wings Kooma Sushi

Morgan's Brooklyn Barbecue Taco Bell

Retailers Coming Soon Aritzia Aesop

NovaCare Sally Beauty

,267 229%

Outdoor dining seats in King of Prussia

Up from 385 in 2014

This increase is a testament to the new, walkable, vibrant nature of the recently completed mixed-used development projects in King of Prussia.

Retail & Dining • 33

TRANSPORTATION & PHYSICAL IMPROVEMENTS

Total Annual Volume at the Valley Forge Interchange on the PA Turnpike in 2019

12,822,709 1,068,599 Monthly Average 34 â&#x20AC;¢ 2020 Report to the Community

Average Daily Traffic Counts ers nd

He on

1

.

Rd

202 3

Rte. 2 MOORE PARK

422

Al

le

9

276

nd

First Ave.

al

e

Rd

.

8

276

7

11 4

KING OF PRUSSIA MALL

6

3

13

5

14

THE VILLAGE AT VALLEY FORGE

10

202

INNOVATION RENAISSANCE

2

SG

ulp

76

hR

d.

12

Location

Year

AADT

1 Betzwood Bridge (422 E – into KOP)

2017

46,820

2 Route I-76 @ Croton Rd. (W – into KOP)

2015

52,464

3 PA Turnpike (W – into KOP)

2015

39,646

4 PA Turnpike (E)

2015

34,486

5 Route 202 @ PA Turnpike Overpass (N+S)

2015

34,595

6 N. Gulph Rd. west of Dekalb Pike (N+S)

2012

25,941

7 Henderson Rd. @ PA Turnpike Underpass

2016

24,590

8 Route 202 @ Saulin Blvd.

2017

39,207

9 Moore Rd.

2018

7,345

10 Swedesford Rd. btwn. Guthrie and Market (E+W) btwn. Guthrie Rd. & Warner Rd.

2015

9,367

11 Conrad Blvd. (Exit 327 off I-76)

2014

4,625

12 Swedeland Road (@ Renaissance Blvd.)

2019

6,254

13 Church Rd. near Crooked Lane (E+W)

2017

11,041

14 Horizon Dr.

2017

5,358

– Delaware Valley Regional Planning Commission

Transportation & Physical Improvements • 35

Existing KOP Public Transportation Norristown High Speed Line

KING OF PRUSSIA DISTRICT INITIATIVE

theconnector connector Shuttle Since June 2013, this public shuttle system provides reliable service for commuters going to work every weekday from the Norristown Transportation Center and Wayne Regional Rail Station. theconnector has two routes, each with two buses that make 14 stops and 21 runs during the AM and PM rush-hour periods.

This service complements SEPTA’s Regional Rail and Norristown High Speed Line routes and serves as a “last mile” service to 14 commercial office properties. theconnector launched using a federal CMAQ grant with additional funding from Montgomery County, Upper Merion Township, commercial property owners, tickets, advertising and King of Prussia District.

Current KOP station stops at Gulph Mills, Hughes Park and Dekalb St.

Regional Rail (no direct access) Manayunk/Norristown and Paoli/ Thorndale lines require transfer service to KOP.

4

Rambler Shuttle Serving various Upper Merion Township locations via two routes that run from 9 AM to 4 PM, M-SA.

SEPTA Buses

Stops

92 connecting Exton to KOP 95 connecting Easter Montco to KOP 99 connecting Phoenixville to KOP 123 connecting Upper Darby to KOP 124 connecting Center City, Phila to KOP 125 connecting Center City, Phila to KOP 139 connecting Limerick to KOP

theconnector connector Grants 2013 through 2020 Congestion Mitigation and Air Quality Grant (CMAQ)

Montgomery County

Upper Merion Township

$500,000

$217,700

$225,000

Total – $942,700 To date, theconnector provided 77,384 rides, reduced single-occupied vehicles driven by 1.6 million miles and saved 1.7 million pounds of Carbon Dioxide.

– March, 2020

Highest Monthly Traffic

1,135,764 May

Lowest Monthly Traffic

908,311 February – PA Turnpike Commission, 2019

36 • 2020 Report to the Community

theconnector connector Shuttle Direct Service Program King of Prussia District and King Limousine & Transportation Services are collaborating to provide direct shuttle service for Amazon Flex Site Associates travelling to this busy facility on American Avenue. This new service provides a 24-hour connection between the facility, employee off-site parking and public transportation outlets, reducing congestion and environmental impacts for this nonstop operation.

KING OF PRUSSIA DISTRICT INITIATIVE

First Avenue Linear Park

Linear Park/ Demonstration Park Grants The Linear Park is a unique collaboration between King of Prussia District, UMT, PennDOT and 21 private property owners (26 parcels) in Moore Park. Once complete, the Linear Park will use access easements on private properties along First Avenue to create an active and vibrant amenity open to the public.

DVRPC TCDI Linear Park/ Demonstration Park Concept Design

$88,000 Local Share Grant for Demonstration Project

Phase One King of Prussia District started construction on Phase One of the First Avenue Linear Park in March 2020. During the next 10 months, a vibrant, multi-use pathway will take shape beginning at Moore Road and extending east on either side of First Avenue. The fully accessible pathway will also feature seating areas, solar-powered pedestrian lighting, solar powered bus shelters, benches and trash receptacles. King of Prussia District will manage year-round maintenance to ensure a clean and safe environment for residents and employees using the park.

Phase Two Phase Two of the Linear Park extends the multimodal trail and site amenities nearly one mile across six more private parcels. Site improvements include more solar powered pedestrian lights, trash receptacles, benches, a possible pedestrian boardwalk, ADA curb ramps, planting beds, shade trees and solar powered bus shelters. These improvements will provide a safer pedestrian environment along First Avenue and help create a “complete street” that enhances the new mixed-use neighborhood.

$4. M+

$122,940 Brandywine Grant for Demonstration Project

$20,000 PennDOT Multimodal Fund

$1,200,000 PennDOT TIIF-STP Fund

$1,200,000 MONTCO 2040 Implementation Grant

$100,000 PA Department of Community & Economic Development MTF

$421,699 Total amount of grants awarded to date

PA Redevelopment Assistance Capital Program

$1,000,000

Connecting 21 private properties (26 parcels) in Moore Park Transportation & Physical Improvements • 37

KING OF PRUSSIA DISTRICT INITIATIVE

Median Landscape Improvements King of Prussia District creates and maintains vibrant landscapes that improve the appearance of our most heavily traveled commercial corridors.

From 2011 to the first half of 2020, King of Prussia District planted and maintained 30 roadway medians, shoulders and the Demonstration Park that cover nearly three acres of public space. This beautiful and sustainable vegetation includes bluestars, chokeberry, purple coneflower, Russian sage, feather reed grass, fragrant sumac, red maple, honey locust and blackeyed susan, to name a few of the varieties of perennials, ornamental grasses and trees.

The plantings reduce stormwater runoff, improve permeability and enhance the aesthetic of the roadways.

Electric Vehicle Charging Stations at 17 Locations in KOP AVE King of Prussia* 555 S. Goddard Blvd.

Canvas Valley Forge* 101 Bryce Ln. Children’s Hospital of Philadelphia Specialty Care Center 550 S. Goddard Blvd.

Freedom Business Center 630 Freedom Business Center Dr. OMNIA at Town Center* 300 Village Drive King of Prussia Mall 160 Gulph Rd. King of Prussia Service Plaza Milepost 328.4 PA Turnpike Maschellmac Office Complex 1060 First Ave. Park Square* 751 Vandenburg Rd. Qlik 211 S. Gulph Rd. System Solutions, Inc. 379 Crooked Ln. Upper Merion Township Municipal Building 175 W. Valley Forge Rd. Valley Forge National Historical Park Joseph Plumb Martin Trail SKYE 750* 750 Moore Rd. Hanover Town Center* 350 Village Dr. The Smith* 580 S. Goddard Blvd.

King of Prussia District invested over $2.1M in design, construction and maintenance of these projects since 2011.

Devon Building 550 American Ave. *Open to residents or employees only

– US Dept. of Energy Alternative Fuels Data Center

38 • 2020 Report to the Community

Since 2011, King of Prussia District has installed

125

Trees

2,097

Shrubs

6,072

Ornamental Grasses

21,079

Perennials

10,808

Bulbs

10

Flagpoles

7

Solar Pedestrian Lights

KING OF PRUSSIA DISTRICT INITIATIVE

King of Prussiaâ&#x20AC;&#x2122;s 2020 Gateway Median Planting Project King of Prussia District is partnering with PennDOT to install and maintain a second planted median on the Schuylkill Expressway.

In 2020, the island median next to the westbound offramp from Route 76 to Dekalb Pike will be transformed into a vibrant landscape with flowering perennials and ornamental shrubs.

The new planting bed, design by ThinkGreen, LLC, will include almost 3,000 flowering shrubs, ornamental grasses and dazzling perennials. This new median will mirror the adjacent project King of Prussia District completed in 2016.

Transportation & Physical Improvements â&#x20AC;˘ 39

Infrastructure Enhancements Crow Creek Trail Project UMT received a grant from the state to create a two-mile accessible paved path along Crow Creek, featuring four ADA-compliant crossings at roadway intersections. This pathway for bicyclists and pedestrians will connect residential, civic, retail centers and schools from the King of Prussia Mall to W. Beidler Rd.

Chester Valley Trail Extension Montgomery County is preparing to begin construction on a 3.5mile link between the Chester Valley and Schuylkill River Trails.

This important section through UMT, Bridgeport and Norristown Borough will connect the 14-mile Chester Valley Trail from Exton to the 60-mile Schuylkill River Trail that runs from Philadelphia to Reading.

Gulph Road Connector Study Valley Forge Park Alliance completed a study in 2019 to create a connection between the Chester Valley Trail and the Schuylkill River Trail. This important project reviews options for the proposed 2.55mile trail along North Gulph Rd. and was funded by the DVRPC’s Regional Trails Program. The construction of this trail will join the residential complexes, commercial development and entertainment venues at the Village at Valley Forge and Moore Park to the 750mile network of multiuse trails called “The Circuit,” which runs throughout the greater Philadelphia region.

Route 422 Expansion Construction on this $100M segment between Trooper Rd. and First Ave. will be complete in 2020. The new roadway and replacement of five bridges around Valley Forge and King of Prussia will improve multimodal capacity and safety for 92,000 drivers and passengers on this stretch of highway each day, between the Route 363 and 23 interchanges. Construction started on this section of the project, known as the Schuylkill River Crossing Complex, in 2016 with several milestones achieved, including the westbound structure of the Schuylkill River Bridge, 422 eastbound off-ramp flyover at Route 23 and rehabilitation of the Route 23 bridge.

Transform 76 Improvements In 2016, former PennDOT Secretary Leslie Richards announced a long-range, comprehensive, multimodal transportation management plan to reduce congestion along the I-76 Schuylkill Expressway between King of Prussia and Philadelphia. This corridor improvement plan includes the deployment of Active Traffic Management technologies, including variable speed limit signs and queue detection signs. These systems are under construction now with the first component, 73 digital variable speed limit signs, set to activate this spring.

40 • 2020 Report to the Community

A Selection of Transformative Infrastructure Projects in KOP Since 2010

Sullivan’s Bridge Part of the Route 422 improvement project, this $9.2M pedestrian and bicycle bridge over the Schuylkill River opened in 2016 and re-established an important link between two of the region’s most popular landmarks: Valley Forge National Historical Park and the Schuylkill River Trail. Named the “Best Urban Trail in the US” by USA Today, the Schuylkill River Trail makes it possible for pedestrians and bicyclists to journey to and from Philadelphia on a dedicated recreational route.

I-76/Henderson & Gulph Road Westbound On/Off Ramps The $11M Henderson Road Ramps Project, completed in November 2011, provides an exit into King of Prussia at Henderson and South Gulph Rd. and entrance to the westbound Schuylkill Expressway. This project helped alleviate traffic and congestion at the Route 202 interchange by offering motorists, with final destinations on the east side of King of Prussia, an alternative to the busy Route 202 interchange.

Henderson Road Widening Project This heavily congested arterial roadway was widened to four lanes with a center turn lane in July 2013 through a $4M infrastructure investment by the Upper Merion Transportation Authority. King of Prussia District provided $75,000 in install landscaping improvements adjacent properties as part of the project.

KING OF PRUSSIA DISTRICT INITIATIVE

First Avenue Road Diet Motorists, cyclists and pedestrians now enjoy a safer and more efficient travel experience along First Avenue. This primary route through Moore Park was reconfigured to change the four-lane throughway to three lanes plus a dedicated center turn lane.

Bicycle lanes were added along with a new mid-block, signalized pedestrian crosswalk that opened in early 2019 to provide a safer street crossing.

Transportation & Physical Improvements • 41

KING OF PRUSSIA RAIL

42 â&#x20AC;¢ 2020 Report to the Community

King of Prussia Rail is a proposed 4.5-mile extension of SEPTA’s existing Norristown High Speed Line into the heart of King of Prussia’s most populated employment centers. Once complete, this transformative project will connect the three largest commercial centers in the Philadelphia Region – Center City, University City and King of Prussia. The project will serve as a catalyst for economic development and growth for the entire region.

Project Update

Artistic Rendering of King of Prussia Rail

In September 2019, HNTB submitted 15% design documents to SEPTA. This preliminary engineering work refined the project design and rail alignment, station locations, property and environmental impacts, maintenance, rail operations and other details. These design refinements are a result of public input and engineering criteria, as well as existing land use and future opportunities.

AECOM continues to advance the Final Environmental Impact Statement (FEIS), which identifies environmental and community impacts and commits to specific mitigation and minimization actions to eliminate or reduce negative effects of the proposed rail extension.

For more information, visit KingofPrussiaRail.com

King of Prussia Rail is a proposed 4.5-mile extension of SEPTA’s existing Norristown High Speed Line into the heart of King of Prussia’s most populated employment centers.

King of Prussia Rail • 43

King of Prussia Rail Coalition King of Prussia District is proud to serve as a strong advocate and driving force behind this important project. In 2015, King of Prussia District spearheaded the formation of the King of Prussia Rail Coalition, a regional consortium of commercial property owners, elected officials, residents, employees, visitors, economic development and job growth agencies, building trades, chambers of commerce and more.

The King of Prussia Rail Coalition is guided by an Advisory Committee comprised of regional non-profit and for-profit leaders who believe that this project is necessary for the Philadelphia region to remain competitive. King of Prussia District manages the Coalition’s advertising campaigns, website and webinar series.

Educational Webinar Series The King of Prussia Rail Coalition, in partnership with Wells + Associates, continued its popular webinar series, KOP Rail: Smart Strategies for Connected Communities, into 2019, presenting a total of six webinars. Topics included an evalauation of the Station Area Planning Studio for KOP Rail, presented by the Delaware Regional Planning Commission; the anticipated impact on commercial real estate in the region, presented by Brandywine Realty Trust’s CEO and KOP Rail Coalition Advisory Committee Chair Jerry Sweeney; and opportunities for a more walkable community featuring a case study from Tysons Virginia.

View the webinar archives at koprailcoalition.com/webinar

2019 KOP Rail Coalition Advertising Highlights Bus Shelter Ads

44 • 2020 Report to the Community

Bus Ads

Billboards

KOP RAIL SUPPORTERS

859

Individuals and companies have endorsed KOP Rail on koprailcoalition.com

609

KOP Rail Coalition Facebook followers @FriendsofKOPRail

237

KOP Rail Coalition Twitter followers @SupportKOPRail

King of Prussia Rail â&#x20AC;¢ 45

COMMUNITY & HOUSING

46 â&#x20AC;¢ 2020 Report to the Community

SKYE 750

With incredible access to world-class retail, dining, entertainment and employment opportunities, high-quality K-12 schools and low real estate taxes, it’s no surprise that King of Prussia is a highly sought-after community.

Total Population

28, 02 28,945

2010

2017

Best Suburbs for Young Professionals in PA

The 2020 census data will be one to watch, as UMT/KOP has added nearly 3,000 rental and for-sale residential units in recent years.

King of Prussia District expects the actual 2020 residential population to approach 32,000.

32,000

#4 of 710

#12 of 710 Best Suburbs to Live in PA

#29 of 1,523 Expected in 2020

Best Places to Raise a Family in PA – Niche, 2020

Community & Housing • 47

Resident Profile By Age 2010

2017

15%

10%

5%

0 <5

5-9

10-14

15-19

20-24

25-34

35-44

45-54

55-59

60-64

65-74

75-84

85+

– US Census Bureau, 2006-2010 ACS / 2013-2017 ACS 5-Year Estimates

3 .3%

Renter occupied

68.7%

White – 70% Asian – 18.5% African American – 4.8%

Resident Profile

by Race

Hispanic – 3.8%

Owner occupied

Total Housing Units

3,037 2,898

– US Census Bureau, 20062010 ACS / 2013-2017 ACS 5-Year Estimates

2010 48 • 2020 Report to the Community

2017

Housing Units

by Income Household Income

% of Housing Units

Less than $5,000

1.8

$5,000 to $9,999

1.6

$10,000 to $14,999

1.7

$15,000 to $19,999

1.7

$20,000 to $24,999

3.1

$25,000 to $34,999

5.0

$35,000 to $49,999

8.8

$50,000 to $74,999

16.1

$75,000 to $99,999

14.8

$100,000 to $149,999

20.0

$150,000 or more

25.2

$77,955 Median household income 2010

$9 ,5 5 Average household income 2017

40.7 $323,200

Median age of residents in 2017

Average home value 2017

Community & Housing â&#x20AC;˘ 49

Average Rental Price Per Square Foot of New Construction

New Residential Developments Built in Last 10 Years

Development

Studio/Junior Units $3.04 per square foot

Two Bedroom Units $2.37 per square foot

One Bedroom Units $2.53 per square foot

Three Bedroom Units $2.10 per square foot

# of Units – King of Prussia District 2019 Survey of MF Owners

Indigo 301

363

Omnia

339

Hanover King of Prussia

339

Hanover Town Center*

392

Canvas

231

The Smith

320

AVE

274

The Brownstones (for-sale)*

132

575 South (for-sale)

60

Park Square

313

SKYE 750*

248

TOTAL

2,819

Rental vs. Ownership of New Construction

92 2,8 9

Owner units

Rental units

6% 9 4%

*Completed in 2019

A total of 20 multi-family developments with a total of 6,263 units are within King of Prussia District’s 3.1 Square mile boundary.

30% 50 • 2020 Report to the Community

Approximate Number of UMT’s Residents That Live Within the King of Prussia District Boundary

83%

of all Multi-Family Residential Units in King of Prussia are leased.

– King of Prussia District 2020 Survey of MF Owners

Community Assets The resident and business communities benefit from Upper Merion Township’s unique community assets. For more information, visit umtownship.org.

Upper Merion Community Center Open to residents and non-residents, the Upper Merion Community Center is a 70,000 SF, state-of-the-art facility located at 431 W. Valley Forge Rd. The center features an indoor track, group fitness rooms, multiple sport courts, meeting spaces and a cooking studio, and hosts a wide array of classes, camps and activities. The center also houses the 431 Art Gallery, which features work by artists from the Montgomery County Guild of Professional Artists.

Upper Merion Area Community Cupboard Located in the Valley Forge Presbyterian Church at 191 Town Center Rd., the Upper Merion Area Community Cupboard (UMACC) is open to anyone who lives within the bounds of the Upper Merion Area School District and is hungry or food insufficient. The UMACC is a collaborative and empathetic community response of Upper Merion schools, municipalities, businesses, communities of faith and caring neighbors to strengthen the most vulnerable neighbors through food supplementation.

Upper Merion Township Pool The Upper Merion Township Pool is located on the same property as the Community Center and is open to residents as well as non-residents of Upper Merion. The pool is open from Memorial Day Weekend through Labor Day, and is only open on the weekends while Upper Merion schools are still in session.

Upper Merion Community Garden at Sunny Hill Farm Founded in 2018 at 135 E. Valley Forge Rd., across the street from the Township Building, the community garden's focus is to provide a collaborative and community garden space for residents in order to share produce with those in need and provide education to reconnect residents with the process of sustainable, organic gardening. The garden features sixty 10’ by 10’ garden plots and is part of the non-profit Upper Merion Township Foundation.

Upper Merion Park Partners Upper Merion Park Partners is a program to provide residents, organizations and businesses with a variety of ways to help protect and enhance the Township’s 35 parks and open spaces, as well as educate people about the importance of parks and open spaces.

Community & Housing • 51

EDUCATION

52 â&#x20AC;¢ 2020 Report to the Community

Upper Merion Area School District’s (UMASD) high-quality academic and extracurricular K-12 programs are an incredible asset for KOP’s resident and business communities. With two new elementary schools that opened their doors in 2018, a new turf field and a new high school on the way, UMASD continues to invest in its future and its diverse student body.

UMASD Receives Award for Diversity & Inclusion Plan Now approaching year five of their Diversity and Inclusion Plan, UMASD received the 2019 Moral and Courageous Commitment to Equity Award from Cabrini University Center for Urban Education, Equity, & Improvement. A committee of teachers created a reading program for the 2018-2019 school year to promote a common culture of reading among the school district’s students and staff and develop a sense of school unity through literature.

The book selections deal with difficult topics of race and diverse perspectives.

This initiative included school-wide readings, classroom mini-lessons, author skype sessions, lunch book club discussions and a partnership with the Upper Merion Police Department.

New Upper Merion Area High School Project Underway Construction of the new Upper Merion Area High School is expected to begin in the spring on the high school's current property. The 300,000 SF high school is expected to open September 2022, and will include an indoor track, auditorium, fitness center and a greenhouse. Following the opening, the existing high school will be torn down and converted into artificial turf and grass athletic fields.

“A” RATED SCHOOL DISTRICT – Niche, 2020

Upper Merion Area High School

,9

Students enrolled

40% of all students belong to all non-white (non-Hispanic) ethnic groups Approx. 90% of the 2019 UMAHS graduates are continuing their education in colleges, universities, technical schools and the military Over $2M in renewable scholarships from the schools to which they were accepted – US News & World Report 2019 and UMASD Education • 53

KING OF PRUSSIA DISTRICT INITIATIVE

$5,000

UMASD Student Scholarships King of Prussia District is proud to continue and grow our contributions to the Upper Merion Area School District student scholarship and teacher grant funds each year!

contributed in 2019

$7,500

contributed in 2020

2019/2020 Enrollment in UMT Schools School Building

Grade Level

Enrollment

Bridgeport Elementary

K-4

271

Caley Elementary

K-4

379

Candlebrook Elementary

K-4

339

Roberts Elementary

K-4

270

Gulph Elementary

K-4

419

Upper Merion Area Middle School

5-8

1378

Upper Merion Area High School

9-12

1191

54 • 2020 Report to the Community

4, 247 Total enrollment of schools

2.9% Increase in enrollment since 2019 (3,761) – MCPC Report 2016

27

COLLEGES Area Colleges and Universities

American College Bryn Mawr College Cabrini College Chestnut Hill College Delaware County Community College Haverford College Montgomery County Community College Philadelphia College of Osteopathic Medicine Rosemont College Swarthmore College The Restaurant School at Walnut Hill College Ursinus College Valley Forge Christian College

UNIVERSITIES Arcadia University Delaware Valley University Drexel University Eastern University Immaculata University La Salle University Penn State University, Delaware County Penn State University, Great Valley Philadelphia University Saint Josephâ&#x20AC;&#x2122;s University University of Pennsylvania University of the Sciences Villanova University West Chester University

Education â&#x20AC;˘ 55

COMMUNITY EVENTS Please confirm event details with event organizers

KOP Beerfest Royale raised over

$2 5,000 for physical improvement projects in KOP! 56 â&#x20AC;˘ 2020 Report to the Community

From business networking events to large-scale festivals, concerts and everything in between, King of Prussia is host to a number of incredible community events throughout the year.

KING OF PRUSSIA DISTRICT INITIATIVE

King of Prussia Beerfest Royale King of Prussia District’s signature event and the biggest party in the ‘burbs’, the award-winning KOP Beerfest Royale, features more than 110 beers to sample, incredible dishes from KOP’s best restaurants, live music, cocktail lounges, a beer garden with giant yard games and more, all under grant tents in the King of Prussia Mall parking lot. kopbeerfest.com

Awarded Best Beer Festival and Best Annual Festival of 2019 by Main Line Today!

KING OF PRUSSIA DISTRICT INITIATIVE

Business Networking Series King of Prussia District brings together business leaders from varying industries to network, exchange ideas and stay up-to-date on King of Prussia’s growth and development. Speaker events feature thought-leaders and experts presenting on engaging topics and trends impacting communities like King of Prussia.

2020 Business Networking Events Fall Networking Breakfast

September 17, 2020 10th Anniversary Gala & Awards

December 9, 2020

visitkop.com/events

Community Events • 57

KING OF PRUSSIA DISTRICT INITIATIVE

King of Prussia Restaurant Week & KOP Shops for CHOP

$ 2,500 Raised for CHOP in five years!

Enjoy an incredible week of dining and shopping in KOP benefitting Children’s Hospital of Philadelphia (CHOP)! For one week in March, KOP’s hottest restaurants offer prix-fixe lunch and dinners, and participating fast casual restaurants offer deals and CHOP donation days. Select retailers also offer shopping incentives and donate a portion of their sales to CHOP. New in 2020, KOP’s business community joined this community-wide fundraiser by donating to CHOP through the new Community Champions campaign. Upper Merion Area School District also held pajama days to benefit CHOP throughout all schools. koprestaurantweek.com kopshops.com

Annually in March

Over 100 restaurants, retailers and companies participated in 2020!

58 • 2020 Report to the Community

Concerts Under the Stars

Now in its 36th year, this iconic, free outdoor concert series at the Upper Merion Township Building features a beer garden, food vendors and a family-friendly atmosphere. umtownship.org

Sundays Late-May through August

KING OF PRUSSIA DISTRICT INITIATIVE

Food Truck Tuesday King of Prussia District invites you to enjoy the fresh air, fun and live music on your lunch break, as we bring food trucks, a band, games and giveaways to different corporate parking lots.

Returning in 2021

visitkop.com/ftt

Community Events â&#x20AC;˘ 59

Valley Forge Revolutionary 5-Mile RunÂŽ Runners of all levels lace up each year for a patriotic race on a USATF certified course through scenic Valley Forge National Historical Park. Produced by Valley Forge Tourism & Convention Board, the event also includes a three-mile walk and the 1.776km Young Patriots Run for kids ages 6-14. valleyforge.org/revolutionary-run

Returning April 2021

Events at King of Prussia Town Center

Upper Merion Farmers Market

King of Prussia Town Center keeps Main Street and the Town Square lively with a rotating calendar of events including movie nights, live music, fitness pop-ups and seasonal festivals.

Now in its 11th year, the award-winning, producers only Farmers Market serves up fresh goods and sustainable products from vendors as far as 100 miles away.

kingofprussia-towncenter.com

uppermerionfarmersmarket.org Outdoors every Saturday

May through November Indoors every other Saturday

December to early May 60 â&#x20AC;˘ 2020 Report to the Community

$458,000+

Taste of the Suburbs Presented by the King of Prussia Rotary, this food and wine sampling event brings 30+ of the area’s top restaurants, wineries and breweries to the King of Prussia Mall. Ticket sales benefit the Rotary’s nonprofit King of Prussia Charitable Foundation, which serves international, national and local programs.

Raised in 14 years for Valley Forge National Historical Park!

The Valet & The Venue at Valley Forge Casino Resort Hosting top-rated musicians, epic tribute bands, big-name comedians and more, Valley Forge Casino Resort offers live entertainment every weekend in these two intimate venues. vfcasino.com

kingofprussiarotary.org

Community Events • 61

KING OF PRUSSIA DISTRICT

2019 Revenue and Expense Summary

Functional Allocation of Expenses

Revenue

Transportation – 49%

Fundraising – 3%

Marketing – 30%

Land Use – 1%

Physical Improvement – 10%

Tax Policy – 0%

Management – 7%

Completed copies of the December 31, 2019 audited financial statements by Kreischer Miller for King of Prussia District are available upon request. Contact Julie DeMasi, Manager of Finance & Administration, at julie@kopbid.com.

2019

2018

% Change

1,283,229

$1,259,341

+1.9

39,800

44,112

-9.8

1,045,725

208,133

+402

Corporate Sponsorship

56,800

32,069

+77

Special Event Income

368,206

369,560

-.3

2,528

2,740

-7.7

$2,796,288

$1,915,955

+46

2019

2018

% Change

Physical Improvements

272,896

$322,352

-15.3

Marketing & Communications

791,813

704,421

+12.4

1,310,413

548,446

+139

23,533

23,527

-

0

34,657

-100

Management & General

179,241

194,854

-8

Fundraising

85,572

97,311

-12

TOTAL EXPENSES

$2,663,468

$1,925,387

+38.3

Net Income (Loss)

132,820

(9,432)

–

Assessment Fees Corporate and Individual Contributions Commuter Shuttle Systems

Interest/Fees TOTAL REVENUE

Functional Allocation of Expenses

Transportation Land Use & Zoning Tax Policy

All revenues and the Functional Allocation of Expenses reflect audited financial statements from December 31, 2019 and December 31, 2018.

62 • 2020 Report to the Community

Board of Directors Chair

John Bown III Industrial Investments

Steven Powell Kravco Company, LLC

Audrey Greenberg The Discovery Labs

Jeff DeVuono Brandywine Realty Trust

Maureen Hansberry Childrenâ&#x20AC;&#x2122;s Hospital of Philadelphia

Rob Henry GVF

Bob Hart Simon Property Group

Treasurer

Daniel Platt

Dennis Maloomian Realen Properties

Carol McCoy Radial Vice Chair

Gary Tang The American College of Financial Services

UGI Corporation

Secretary

Keystone Property Group

Skip Kunda Kunda Beverage Past Chair Eric Davies Wurzak Hotel Group

Lea Anne Welsh

Michael Brookshier

AVE by Korman Communities

Anthony Hamaday Upper Merion Township Andrew Horning Bala Consulting Engineers, Inc.

Staff Eric T. Goldstein Executive Director Rachel Ammon Director, Marketing & Communications Stefanie Herbert Marketing Intern

Julie DeMasi Manager, Finance & Administration Shauna Sanchez Digital Marketing Associate Alison Kahan Event Coordinator

Chris Basler Director, Capital Projects & Planning Not pictured: Alison Kahan, Stefanie Herbert

2019 Revenue and Expense Summary â&#x20AC;˘ 63

Thank You to Our Generous 2019 Sponsors KOP Beerfest Royale Presenting Sponsor

Barrel Sponsors

In Kind Sponsors

Growler Sponsors

Pint Sponsors

KOP Restaurant Week & KOP Shops for CHOP Platinum Sponsor

Event Sponsor

Print Sponsor

In Kind Sponsor

Media Sponsor

Rock Your Lunch Summer Concert Series Presenting Sponsor

In Kind Sponsor

Event Sponsors L 200/2200 MVISUA EDIA

Food Truck Tuesdays Presenting Sponsor

Event Sponsors

Business Networking Presenting Sponsor

Keynote Sponsor

Gold Sponsor

In Kind Sponsor

Silver Sponsors L 200/2200 MVISUA EDIA

King of Prussia Districtâ&#x20AC;&#x2122;s 2020 Report to the Community was researched and written by King of Prussia District staff and designed by AgileCat. King of Prussia District has made every effort to avoid errors in this publication. View online at visitKOP.com/about/publications.

Stay informed by signing up for the King of Prussia District monthly eNewsletters at visitKOP.com.

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