Destination: Transformation

1

Destination: Transformation 2018 Report to the Community

DESTINATION: TRANSFORMATION

The reality, however, is that the young haven’t

King of Prussia’s Proactive Strategy for a More Dynamic Community

actually left the suburbs, and according to current US Census data and future projections, they aren’t likely to leave the suburbs anytime soon. The young residents

There have been countless articles, panels and stories recently about how suburban communities are racing to reposition themselves in the face of changing demographic preferences. In October 2017, a Bloomberg article pointed out that the movement for suburban communities to become more “city-like” has taken hold and has actually “blurred the lines between city and suburbs” in recent years.

Repositioning suburban communities to compete in this new economy typically involves: changes to zoning codes to entice mixed-use development and redevelopment; construction of multi-use trails; expansion of sidewalk networks; increased entertainment offerings that include movie theaters and action adventure facilities; dining and retail offerings that promote outside as much as inside; and investments in multi-modal transportation options such as bus rapid

and office workers are already here. The suburbs are just maturing. It’s an evolution that is happening throughout the country and certainly one that is happening right here in King of Prussia.

This year, the King of Prussia District’s Annual Report to the Community, Destination: Transformation, highlights the many ways King of Prussia is evolving to meet changing demographic preferences.

It’s an exciting time to live, work and recreate in this community and by the time you finish this report, we think you will agree!

Our thanks to AgileCat for this year’s design and to the King of Prussia District staff, who research and write the content.

We welcome your feedback, so please share questions and comments anytime. Here’s to a prosperous 2018!

transit and passenger rail.

Many of these actions are fueled by the thought that suburban communities have to change their old ways in order to compete for the millennial population.

Eric C. Davies

Chairman of the Board

Eric T. Goldstein Executive Director

Cover: King of Prussia Town Center © Eric Prine Photography

2018 Report to the Community CONTENTS

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King of Prussia in the Spotlight

40 Economic Development

4

Get To Know King of Prussia

46

Demographics

8

Transportation & Infrastructure

Enhancements

16

Hospitality

Hotels, Attractions & Events

24

Retail & Dining

King of Prussia District

About

King of Prussia District Award Winners

King of Prussia District Programs

• Marketing & Communications

• Physical Improvements

• Transportation

• Land Use & Zoning

• Tax Policy

Revenues & Expenses

Board of Directors & Staff

Event Sponsors

28 Commercial Real Estate & Employment 36

Housing & Education

234 Mall Boulevard, Suite 150 King of Prussia, PA 19406 – 484.681.9452 visitkop.com

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KOP in the Spotlight 2017 was an incredible year for King of Prussia, and the media took notice.

KING OF PRUSSIA IS ON FIRE Times Herald | March 2017

THE SUBURBS STRIKE BACK! Philadelphia Magazine | March 2017

INSIDE KING OF PRUSSIA’S $1 BILLION TRANSFORMATION Curbed Philadelphia | April 2017 “Growing up, King of Prussia was just a massive mall that my family visited on special occasions. Years later, it’s been remarkable covering its transformation from a place to visit to a place to live, work and play.”

Melissa Romero Editor, Curbed Philadelphia

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IS KING OF PRUSSIA THE NEW PROMISED LAND? Philadelphia Magazine Cover Story | March 2017

NOTHING SAYS SUCCESS LIKE A KING OF PRUSSIA SPOT Philadelphia Inquirer | April 2017

BOOMTOWN KING OF PRUSSIA Philadelphia Business Journal | January 2017

“The western suburbs, including regional star King of Prussia, continue to be transformed into perhaps the most important business center.”

Craig Ey Editor-in-Chief Philadelphia Business Journal

4 GET TO KNOW KING OF PRUSSIA

King of Prussia (KOP) is a vibrant, progressive community located in Montgomery County, Pennsylvania.

THE LARGEST CONCENTRATION OF COMMERCIAL ACTIVITY IN THE PHILADELPHIA SUBURBAN REGION.

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KOP is located just 18 miles northwest of Philadelphia and is well known for its worldrenowned mall. KOP is also home to more than 28,000 residents and has the distinction of being the largest concentration of commercial activity in the Philadelphia suburban region.

9,529,328 SF Industrial/Flex

A well-executed strategy by Township leadership has led to an incredible surge in economic development projects across a broad cross-section of industries.

7,148,851 SF

This recent economic expansion has placed KOP

Retail

at the forefront of the suburban transformation movement and enabled KOP to move toward becoming a more dynamic place for residents, companies, employees and visitors.

7,630,582 SF Commercial Office

2,604 Hotel Rooms Source: CoStar, 2018

Upper Merion Township/King of Prussia

17.273 SQ MILES 60,087 EMPLOYEES

Source: US Census Bureau, Center for Economic Studies, 2016

4,021 COMPANIES Source: 2012 Survey of Business Owners

28,589 RESIDENTS Source: US Census Bureau, 2012-2016 ACS 5-Year est.

King of Prussia Town Center

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Demographics

Population

40.3

Age Distribution

MEDIAN AGE

15%

28,623

2016 10%

28,102

2010

26,863

2000

5%

0

#31 OF 439

<5

5-9

10-14

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84

MOST DIVERSE SUBURBS IN PA

2010

2016

Source: Niche, 2018

Residents 65 & older

POPULATION BY RACE 2016

2010

2000

1990

White

73.8%

76%

84.8%

92.1%

Black

4.6%

5.5%

4.6%

3.7%

Asian

18.1%

14.7%

8.5%

3.6%

Hispanic

3.3%

3.9%

N/A

N/A

Other

0.2%

0.2%

2.2%

0.6%

15.4%

17.1%

1,766

1,710

2010

2016

1,476

2010

Source (unless otherwise noted): US Census Bureau, 2012-2016 ACS 5-year est.

Residents under 5

2016

2000

85+

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More than 28,000 residents call Upper Merion Township/ King of Prussia (UMT/KOP) home. With the influx of more than 2,500 multi-family housing units under construction or recently completed, the population of UMT/KOP is likely to reach 30,000 in the next few years.

Top 5 Counties Where KOP Residents Are Employed Montgomery.................................................30% Philadelphia................................................ 16.7% Chester..........................................................15.1% Delaware........................................................ 9.3% Bucks................................................................ 2.5%

Median Household Income

Unemployment Rate of Residents

2.9%

2018

85,676

2016

75,575

2010

$

3.1%

2017

$

3.5%

2016

4.0%

2015

13% INCREASE IN 6 YEARS

4.5%

2014 Source: PA Department of Labor & Industry

The median residential sale price per square foot in UMT/KOP increased by 16.4% over the past year.

Educational Attainment

20.8% 56.8%

Source: Redfin, 2018

93.9%

PENNSYLVANIA

29.3%

95.4%

total households in UMT/KOP

Household Income Less than $10,000

4.1%

$10,000 to $14,999

2.2%

$15,000 to $24,999

5.1%

$25,000 to $34,999

5.8%

$35,000 to $49,999

9.1%

$50,000 to $74,999

17.0%

$75,000 to $99,999

14.4%

$100,000 to $149,999

20.5%

$150,000 to $199,999

9.8%

$200,000 or more

12.0%

11.5%

47.5%

MONTGOMERY COUNTY

UPPER MERION TOWNSHIP/KING OF PRUSSIA

24.2%

11,975

89.5%

377,000

$

HS or higher BS/BA or higher Graduate school or higher

Source: PA Department of Labor & Industry

16%

of the employed residents of UMT/KOP live and work here

8 T R A N S P O R TAT I O N & I N F R A S T RU C T U R E E N H A N C E M E N T S

Looking for a community with unparalleled access?

Look no further than King of Prussia, PA.

9

Average Daily Traffic Counts

nd He .

Rd on ers

1

202 te. 23

R KING OF PRUSSIA BUSINESS PARK

422

Al

le

9

276

nd

First Ave.

al e

Rd

.

8

276

7

11

4

KING OF PRUSSIA MALL

6

3

5

d.

hR

urc

Ch

THE VILLAGE AT VALLEY FORGE

10

202

2

SG

ulp

76

Location

Year

1

Betzwood Bridge (422 E+W)

2017/16

2

Route I-76 (West) @ Croton Rd. Underpass

2015

52,464

3

PA Turnpike (West)

2015

39,646

4

PA Turnpike (East)

2015

34,486

5

Route 202 (E+W, btwn. Allendale Rd. & Gulph Rd.)

2014

35,119

6

N. Gulph Rd. (E+W, west of DeKalb Pike)

2015

18,154

7

Henderson Rd. (E+W, btwn. Church Rd. & DeKalb Pike)

2016

24,590

8

Route 202 (N+S, DeKalb Pike @ Henderson Rd. South)

2014

34,887

9

First Avenue (E+W, btwn. N. Gulph Rd. & Moore Rd.)

2014

11,641

10

Swedesford Rd. (btwn. Guthrie Rd. & Warner Rd.)

2015

9,367

11

Conrad Blvd. (Exit 327 off I-76)

2014

4,625

hR

d.

Count 91,218

King of Prussiaâ&#x20AC;&#x2122;s unique location at the

confluence of Routes 422, 76, 276, 202 and 23 make it one of the most convenient locations to get to by automobile.

2ND HIGHEST MONTHLY TRAFFIC COUNT ON THE PA TURNPIKE

1,058,320 Monthly traffic count at Valley Forge/KOP Interchange Source: PA Turnpike Commission, 2017

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Existing KOP Public Transportation Norristown High Speed Line 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 Norristown High Speed Line

For those looking for public transportation alternatives, numerous SEPTA buses deliver more than 1M rides per year from locations throughout the Philadelphia region to King of Prussia.

SEPTA’s Norristown High Speed Line has three station stops in King of Prussia (Gulph Mills, Hughes Park and DeKalb St.),

service to KOP. Rambler Shuttle Serving various Upper Merion Township locations via two routes that run from 9 AM to 4 PM, M-SA. theconnector KOP-BID’s shuttle provides reliable service for commuters M-F during the AM and PM rush hours.

theconnector shuttle system provides last mile service from

theconnector links SEPTA’s Norristown

two area SEPTA Regional Rail stations (Wayne and Norristown)

Transportation Center and Wayne

and the Upper Merion Township Rambler provides an inner

Station with commercial office

loop service that allows residential neighborhoods

locations in KOP.

to connect to various retail, dining, medical and entertainment destinations.

SEPTA Buses Connecting KOP to the Following Locations: 92 to Exton 95 to Eastern Montgomery County 99 to Phoenixville 123 to Upper Darby 124 to Center City, Phila.

125 to Center City, Phila.

139 to Limerick

theconnector

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Commuter Travel Patterns to KOP from Surrounding Counties

9

5%

31.2% 14.8%

14.2%

Electric Vehicle Charging Stations at 9 Locations in KOP

11.2%

King of Prussia Service Plaza Milepost 328.4 PA Turnpike King of Prussia Mall

CHESTER

160 N. Gulph Rd.

DELAWARE

MONTGOMERY

PHILADELPHIA

Source: US Census Bureau, OnTheMap, 2015

Upper Merion Township Municipal Building 175 W. Valley Forge Rd.

Time Spent Commuting to Work

The Childrenâ&#x20AC;&#x2122;s Hospital of Philadelphia Specialty Care Center 550 S. Goddard Blvd.

Maschellmac Office Complex 1060 First Ave. Freedom Business Center 630 Freedom Business Center Dr. Systems Solutions, Inc. 376 Crooked Ln.

15%

10%

5%

0%

Valley Forge National Historical Park Joseph Plumb Martin Trail

in minutes

Canvas Valley Forge 101 Bryce Ln. Source: US Dept. of Energy Alternative Fuels Data Center

Source: US Census Bureau, 2012-2016 ACS 5-Year est.

BUCKS

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Infrastructure Enhancements

Connecting residents and employees to jobs, entertainment, shopping and dining like never before.

A number of multi-modal projects have recently been completed, or are currently under construction, in UMT/KOP. These infrastructure improvements are greatly enhancing walkability throughout the Township and connecting residents and employees to jobs, entertainment, shopping and dining like never before.

These projects represent numerous public and private entities who are working to enhance multi-modal connections in UMT/KOP.

Valley Forge Park Alliance Trail Extension Study Valley Forge Park Alliance received a $60,000 grant to study a connection between the Chester Valley Trail and the Schuylkill River Trail. This project is funded by the DVRPC’s Regional Trails Program to help complete a 750-mile network of multi-use trails called “The Circuit.” This project will review options for creating a 2.55-mile trail along N. Gulph Rd. that connects these very popular commuter and recreational routes.

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Route 422 Expansion PennDOTâ&#x20AC;&#x2122;s $110M project to widen Route 422 at key points will help accommodate the 92,000 vehicles that travel this stretch of highway daily.

The improvements under construction include building a new bridge over the Schuylkill River and widening a one-mile section between the Route 363 and Route 23 interchanges. The project also maintains a protected bike and pedestrian path that allows access to the Sullivan Bridge over the river. Construction began February 2016 and is expected to finish May 2020.

0 M A Y 2 0 T2 I O N COMPLE E D AT

Betzwood Bridge Project

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King of Prussia Rail The proposed King of Prussia Rail will extend the existing Norristown High Speed Line into the heart of King of Prussiaâ&#x20AC;&#x2122;s employment core.

This transformative project will connect the three largest employment centers in the Philadelphia region - Center City, University City and King of Prussia - and serve as a catalyst for economic development and job growth for the entire region.

SEPTA and the Federal Transportation Administration released the Draft Environmental Impact Statement (DEIS) for King of Prussia Rail in October 2017. In January 2018, after evaluating 30 alternatives that considered 40 different technical factors and input from the community, SEPTAâ&#x20AC;&#x2122;s Board of Directors adopted the Locally Preferred Alternative as presented in the DEIS with the North/South design option. This paves the way for the start of the Final Environmental

ECONOMIC IMPACT 5,400-6,300 direct, indirect and induced jobs in Southeastern PA during construction 1,000 projected jobs created annually in KOP

Impact Statement phase of the project.

310,000 SF projected annual real estate development

KOPRailCoalition.com

KingofPrussiaRail.com

Artistic rendering of King of Prussia Rail over PA Turnpike

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Linear Park â&#x20AC;&#x201C; Phase 1 KOP-BID is finalizing designs for Phase 1 of the First Avenue Linear Park. Phase 1 will expand upon the 450-foot Demonstration Project constructed at 650 Park Ave. in 2017 and extend the multi-use pathway for an additional 6,600 feet to adjacent parcels east, west and across the street. Phase I of the Linear Park will open to the public in 2019.

Demonstration project along First Ave.

Dynamic Message Signs The PA Turnpike Commission installed 4 dynamic message signs along Mall Blvd. and N. Gulph Rd. to provide information to motorists about travel conditions along the PA Turnpike in real-time. These signs will be activated in 2018 and alert drivers to traffic congestion and construction-related activities.

Crow Creek Trail

Chester Valley Trail Extension

UMT received a grant from the State to create an

Montgomery County received a $200,000 grant in

accessible pathway for cyclists and pedestrians that will

2016 to design a 3.5-mile link between the Chester

stretch 2 miles along Crow Creek from the King of Prussia

Valley and Schuylkill River Trails. This important

Mall to W. Beidler Rd. The project will be constructed in

section through UMT, Bridgeport and Norristown

two phases and will connect residential, civic and retail

Borough will connect the 14-mile Chester Valley

centers, along with the high school and middle school, to

Trail from Exton to the 60-mile Schuylkill River

the expanding network of local bike trails.

Trail that runs from Philadelphia to Reading.

16 H O S P I T A L I T Y

Home to the Philadelphia suburban regionâ&#x20AC;&#x2122;s largest collection of hotel offerings.

Fifteen hotels welcome you with comfortable guest accommodations, some of the best meeting space available and unparalleled access to unique attractions, the regionâ&#x20AC;&#x2122;s best retail and an ever-growing dining scene.

Valley Forge Casino Resort

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Guest Rooms

Meeting Space

Best Western Plus, The Inn at King of Prussia

168

2,020

Crowne Plaza – Valley Forge/Liberty Conference Center

226

24,000

DoubleTree by Hilton King of Prussia

327

24,000

Extended Stay America

140

0

Fairfield Inn Philadelphia – Valley Forge

80

0

Hampton Inn – King of Prussia

147

528

Holiday Inn Express Hotel & Suites – KOP

155

0

Home2 Suites (under renovation, re-opening 2018)

121

200

HYATT house King of Prussia

147

3,011

HYATT Place – Philadelphia/KOP

129

1,064

Motel 6 – King of Prussia

170

0

Radisson Hotel Valley Forge

325

38,000

Sheraton Valley Forge Hotel

180

25,000

131

350

158

62,000

2,604

180,173

Hotel

2,604 KOP has 30% of all hotel rooms in Montgomery County

Tuesday

–

At 74.8% occupancy, Tuesday is the highest hotel occupancy day of the week.

63.1% Average weekday occupancy

70% Average weekend occupancy

SpringHill Suites Philadelphia/Valley Forge/KOP Valley Forge Casino Resort & Conference Center Total

600,000+

$15M+

Total # of hotel rooms booked in KOP in 2017

Source: Valley Forge Tourism & Convention Board

Renovations underway or recently completed at KOP hotel properties

DoubleTree by Hilton King of Prussia

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INDOOR SKYDIVING

Experience the thrill of flight!

Calling All

THRILL SEEKERS

iFly indoor skydiving simulates the skydiving experience in an indoor flight chamber.

ESCAPE ROOMS

TRAMPOLINE PARK

KOP is home to two thrilling escape rooms: Escape Room

Featuring trampolines, foam pits, dodge ball, slacklines

Beat the clock

Put some spring in your step!

Mystery and Expedition Escape. Work as a team to solve

and more, Get Air Indoor Trampoline Park is fun for the

puzzles and escape before time runs out!

whole family.

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Competitive Edge Sports

Fitness for all levels From state-of-the-art fitness facilities to boutique studios focusing on yoga, spin, barre and kickboxing, there is no stopping your fitness goals in KOP.

Julia Paddison Yoga

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Valley Forge Casino Resort

Las Vegas-based casino operator Boyd Gaming announced in December of 2017 that they will acquire the Valley Forge Casino Resort for $280.5M. This is Boydâ&#x20AC;&#x2122;s first entry into PA in its 40-year history.

The deal is expected to close Q3 2018.

Win Big

Featuring 600 slot machines, 50 table games, signature restaurants, incredible concerts, live entertainment and a beach club, the Valley Forge Casino Resort is the regionâ&#x20AC;&#x2122;s only full-amenity gaming resort.

$117,180,524 2017 GROSS GAMING REVENUE AT VFCR Source: PA Gaming Control Board, 2018

In October 2017, access fees to Valley Forge Casino Resort were lifted, allowing visitors to enter free of charge!

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2.1M+ ANNUAL VISITORS TO VALLEY FORGE NATIONAL HISTORICAL PARK

Valley Forge National Historical Park

â&#x20AC;&#x153;With world-class retail, awesome hotels, incredible dining and amazing entertainment, King of Prussia is the engine behind driving tourism in Artistic rendering of the new Visitor Center

the region. The area attracts visitors from all over the country, and even the world. In fact, the area

In October 2018, Valley Forge National Historical Park will begin construction of a new Visitor Center, opening early 2020.

helps make Montgomery County second only to Philadelphia in international stays and spending.â&#x20AC;?

Mike Bowman President & CEO Valley Forge Tourism & Convention Board

22 E V E N T S

DINEKOP.COM

dineKOP Restaurant Week Featuring prix-fixe lunch and dinner menus at incredible values, dineKOP Restaurant Week is the perfect opportunity to explore KOP’s diverse and growing dining scene. A portion of the proceeds are donated to The Children’s Hospital of Philadelphia’s King of Prussia Specialty Care & Surgery Center.

è Annually in March

VFCASINO.COM

UMTOWNSHIP.ORG

UPPERMERIONFARMERSMARKET.ORG

Valley Forge Casino Music Fair

Concerts Under the Stars

Upper Merion Farmers Market

Become part of a 40-year tradition

Held on Sundays throughout

Back for its 9th year, the Farmers

with the revival of the Valley Forge

the summer, this family-friendly

Market serves up farm fresh goods

Music Fair, showcasing top-rated

outdoor concert series at the

and sustainable products from

musicians, comedians and more.

Upper Merion Township Building

more than 20 vendors from as far

features a beer garden and food

as 100 miles away.

vendors.

è Every Saturday

May through November

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KOPBEERFEST.COM

King of Prussia Beerfest Royale & Donnerstag: Happy Hour Suburban Philadelphia’s must-attend beer festival of the fall, KOP Beerfest Royale features 100+ international and craft beers to sample, inspired dishes from KOP’s best restaurants, live music on two stages and a cigar lounge. Held under grand tents in the King of Prussia Mall parking lot, this event draws 3,200 visitors to KOP each year.

è Annually in October

KINGOFPRUSSIA-TOWNCENTER.COM

Events at King of Prussia Town Center From movie nights to outdoor

VALLEYFORGE.ORG/REVOLUTIONARY-RUN

Valley Forge Revolutionary 5-Mile Run® Runners of all levels lace up for a patriotic five miles on a USATF certified course in scenic Valley Forge National Historical Park.

The event includes a three-mile walk and a 1.776 km Young Patriots Run for kids ages 6-14.

è Annually in April

concerts and seasonal festivals, King of Prussia Town Center hosts lively events throughout the year along Main Street and on the Town Square.

24 R E T A I L & D I N I N G

World-class shopping for every taste, style and budget.

Fresh off the 155,000 SF expansion in 2016 that combined the former ‘Court’ and ‘Plaza,’ the King of Prussia Mall continued to add to its impressive portfolio of retailers and restaurants, including many first-to-market and first brick-and-mortar stores.

In 2017, King of Prussia Mall embraced experiential retail, debuting pop-up shops with retailers like Timberland and Victoria’s Secret, and transforming outdoor space into a pop-up wine garden with Chaddsford Winery, complete with a fire pit and beautiful landscaping.

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20M+ Annual visitors to the King of Prussia Mall

450+ Retailers and restaurants at the King of Prussia Mall

King of Prussia Town Center

12 New establishments opened in King of Prussia Town Center in 2017

Source: King of Prussia Mall, KOP Town Center

King of Prussia’s new Main Street, the 260,000 SF King of Prussia Town Center, attracted restaurants and retailers in droves, drawn to the unique outdoor lifestyle center and live-work-play environment.

Twelve new establishments opened in 2017, including the much-anticipated first-to-market Founding Farmers, which stakes its claim as the most booked restaurant in the US for five years running.

“We chose King of Prussia for our first restaurant outside of the Washington DC area, and we feel like KOP chose us as well. The incredible mix of people, activities and energies that KOP offers has provided fertile ground for our farmer-owned restaurant. It’s rewarding to see the decision to open in KOP generate such success for our team.”

Dan Simons Owner, Founding Farmers King of Prussia Mall

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OPENED IN 2017 A Diamond Jewelry Outlet Alex and Ani All Saints Bassett Furniture Bath & Body Works | White Barn Bluestone Lane Coffee Choolaah Indian BBQ at King of Prussia Town Center

Bonsai Art Gallery Buena Onda Bulgari Calvin Klein Underwear Casper

In 2017, KOP welcomed an

unprecedented number of new

retailers and restaurants throughout

its retail corridors. Many of them were

first to open in the US or Pennsylvania.

Chaddsford Winery Wine Garden Chocolate Moonshine

Choolaah Indian BBQ* t

Clarins

CKO Kickboxing Clarks

422,038 SF of retail added in last five years

Source: CoStar, 2018

Davio’s Galleria* District Taco*

Duck Donuts* East Meets West

Natuzzi Italia

Elle Fitness

NYX*

Experimac

Orchestra

Fendi*

Finish Line

Founding Farmers* G-Star Raw* Ghurka*

Good Moo’d Creamery

t

Outback Steakhouse Renew Sleep Solutions Saks OFF 5TH South Moon Under SuitSupply

Tadashi Shoji*

Hickory Farms

The Habit Burger Grill*

Ideal Image

The Rock Shop

Indochino* Joie*

The Shade Store Tiffin Indian Cuisine £

Le Creuset

Tommy John

LightRx

Town Center Nail Spa

Marc Cain

Tutti Nails & Spa

MidiCi The Neapolitan Pizza Co.* Mind Games Mission BBQ Mistral*

Muse Paintbar* Naples Soap Company

True Food Kitchen* UNTUCKit*

Valley Forge Car Wash W Talent Management WSFS Bank Xfinity Premiere Yard House*

OPENING IN 2018 Aesop Bright Light Design Center Bury the Hatchet Ax Throwing ** Eddie V’s**

ilovekickboxing.com

* First PA Location ** Second PA Location Mistral at the King of Prussia Mall

Ecco

Intimissimi/Calzedonia

The Dapper Donut

Johnny Was

Workhorse Brewing t Company

J. Alexander’s*

Keystone Shops Kicks USA NoRTH Italia Shoe Dept. Encore

t First in the US £ First Brick & Mortar

Vitality Bowls*

Zara

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7,148,851 SF Retail space in King of Prussia.

12.7% of all retail space in Montgomery County

1,112 Outdoor dining seats in King of Prussia.

Up from 385 outdoor dining seats in 2014 City Works at King of Prussia Town Center

Retail Vacancy Rate Q4 2017

3.6% KI N G O F PRUSSIA

11%

4.3% M O NTG O M ERY COU NT Y

How Local Retail Stacks Up Location

Retail SF

Retail Vacancy Rate

Philadelphia CBD (Spring Garden - South St.)

13,741,828

3.8%

$209

Cherry Hill, NJ

7,940,880

8.4%

$292

King of Prussia, PA

7,148,851

3.6%

$682

Marlton, NJ

2,847,865

2.8%

$251

Plymouth Meeting, PA

2,505,779

1.3%

$240

1,712,592

3.5%

$240

Source: CoStar, 2018

RETAIL PROPERTIES

3.6%

VACANCY RATE

$37.03

AVG. RENT PER SF

$682

AVERAGE SALES PER SF

$4.8B

TOTAL RETAIL SALES

NATI O NAL AVERAGE

Source: KOP & Montco Data: CoStar, 2018; National: Statista.com

Conshohocken, PA

201

Sales/SF Source: CoStar, 2018

THE LARGEST

• Mall and Target

on the East Coast

• Dick’s Sporting Goods

and Outback Steakhouse in the Country

28 C O M M E R C I A L R E A L E S T A T E & E M P L O Y M E N T

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

More than 17M square feet of space in all.

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In the last five years, absorption

As a result of this positive

has been strong in both the

absorption, King of Prussia will

commercial office and industrial/

add thousands of new employees.

flex sectors. A total reduction of

KOP hotels, retailers and dining

8% overall in the vacancy rate

establishments stand to benefit

translates to the absorption of

from the resulting increase in

more than 1.4M square feet of

disposable income.

LEED Certified Buildings in King of Prussia LEED GOLD

GeoBlue HQ 933 FI RST AVE .

The Judge Group HQ

space since 2012.

151 S. WARN ER RD.

LEED SILVER

UGI/AmeriGas HQ 460 N . GU LPH RD.

1000 Continental Dr.

22

LEED CERTIFIED

Starbucks

ENERGY STAR CERTIFIED BUILDINGS AND PUBLIC SCHOOLS IN KOP

180 W. D EK ALB PK .

Chick-Fil-A 145 W. D EK ALB PK .

Tozour Trane Commercial Interior 3606 H O RIZO N D R .

Bala Consulting Engineers 443 S. GU LPH RD.

LEED CERTIFICATIONS IN PROG RESS

Founding Farmers B RYCE LN .

Worldwide Clinical Trials 1000 CO NTI N ENTAL D R .

GUCCI 160 N . GU LPH RD.

200 N. Warner Rd. 1000 Continental Spa 150 S. Warner Rd. 151 S. Warner Rd. © Don Pearse Photographers, Inc.

Source: US Green Building Council, 2018

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TOP 10

Commercial Real Estate Transactions 183M

$

$490,305,139 Total commercial transaction value in UMT/KOP, 2017

KING OF PRUSSIA TOWN CENTER

47M

$

2301 RENAISSANCE BLVD.

24M

$

2701 RENAISSANCE BLVD.

20.9M

$

282 S. GULPH RD.

19.2M

$

630 CLARK AVE.

$

17.5M

45 Commercial and industrial properties sold in 2017

630 ALLENDALE RD.

$

17M

S. GODDARD BLVD.

16.9M

$

S. GODDARD BLVD.

11.7M

$

611 W. DEKALB PK.

8.2M

$

950 PULASKI RD.

587,000 SF Office space filled or created by the five companies who chose KOP for their new headquarters

31

Significant 2017 Lease Activity Property

5 NEW HEADQUARTERS

2301 Renaissance Blvd.

168,000

250 King Manor Dr.

100,000

211 N. Gulph Rd.

62,000

420 Drew Ct.

30,429

421 Feheley Dr. 741 3rd Ave.

Vertex, Inc.

SF

20,147 20,000

3600 Horizon Dr.

13,625

450 S. Henderson Rd.

13,570

780 5th Ave.

11,600

307 E. Church Rd.

9,072

90,000 SF lease

154 Hansen Access Rd.

8,642

235 employees

201 King Manor Dr.

8,120

GeoBlue

625 Clark Ave.

8,041

1020 W. 8th Ave.

7,912

168,000 SF lease Nearly 800 new jobs

The Judge Group

110,000 SF new construction 250 employees

CO MI NG IN 2 0 18

Qlik

780 5th Ave.

5,250

780 5th Ave.

5,107

380 Crooked Ln.

4,160

450 S. Henderson Rd.

62,000 SF lease

867

300 employees

CO MI NG IN 2 0 19

The American College of Financial Services

$3,644,083,523 Total assessed value of commercial property in UMT/KOP

156,000 SF purchase 250 employees

57% Commercial property share of total Township real estate taxes

$4.45M 2017 commercial property real estate taxes paid to UMT/KOP GeoBlue Headquarters, 933 First Ave.

Source: Upper Merion Township

32

Reducing the Tax Burden In the last five years, the Township’s overall tax burden has improved from middle of the pack to closer to the top (less tax burden). Upper Merion has healthy and growing levels of taxable commercial activity, which gives it a distinct and significant advantage in terms of a growing tax base and the ability to be competitive in terms of overall tax burden. The Township has a strong

60,087 EMPLOYEES IN KOP Source: US Census Bureau, Center for Economic Studies, 2015

business base from which it can levy its business and mercantile taxes and property tax. All-in property tax rates (county, municipal and school district combined) were, and still are, lower than most other jurisdictions. Because of the strong and growing commercial tax base in the Township, there is less pressure for future tax increases so it’s likely to maintain an advantage with a lower tax burden than neighboring tax jurisdictions.

4,021

COMPANIES IN KOP Source: Survey of Business Owners, 2012

Source: Econsult Solutions, Inc., 2017

“UMT/KOP’s overall tax burden [on business] has improved since

Top 5 Counties Where KOP Employees Reside

our last study in 2011/2012. UMT/KOP has healthy and growing

Montgomery: 31.2%

levels of taxable commercial activity, which gives it a distinct

Philadelphia: 14.8%

and significant advantage and produces less pressure for future tax increases. UMT/KOP is likely to maintain this advantage compared to neighboring tax jurisdictions for some time.”

Stephen P. Mullin President Econsult Solutions, Inc.

Chester: 14.2% Delaware: 11.2% Bucks: 5.9% Source: OnTheMap, 2018

33

King of Prussia Companies in the News

Fortune 500 List UGI Universal Health Services

Philadelphia Business Journal’s “Best Real Estate Deals of 2017” The Village at Valley Forge/ King of Prussia Town Center King of Prussia Mall Expansion

Philadelphia Business Journal’s 2017 Healthcare Innovators

Philadelphia Business Journal’s 2017 “Best Places to Work”

Inc. Magazine’s 2017 FastestGrowing Private Companies in America

CSL Behring

CardConnect

American Reading Company

CRM Science

Genomind

Goddard Systems, Inc.

Greenphire

Nexxt Tozour Energy Systems

Big Barker CI&T Genomind Greenphire Keen 360 MedRisk ReminderMedia

Philadelphia Inquirer’s 100 Fastest Growing Private Companies Big Barker

ReminderMedia

Genomind

TCS

Philly Marketing Lab

Veterinary Practice Partners

Veterinary Practice Partners

34

“The recent economic growth in Upper Merion has helped enable the Township Supervisors to hold the line on real estate taxes for 8 consecutive years, while enhancing services. This has helped make King of Prussia a more affordable place to do business.”

Bill Jenaway

Upper Merion Township Supervisor

150 S. Warner Rd. © Don Pearse Photographers, Inc.

35

Gross Rent per SF Commercial Office (Class A, B & C)

COMMERCIAL OFFICE

210 PROPERTIES 7,650,891 SF 10.9% VACANCY $24.51 AVG. RENT/SF

$25.50

$25.00

$24.50

$24.00

$23.50

INDUSTRIAL/FLEX

$23.00

$22.50

2013

2014

2015

2016

2017

Source: CoStar, 2018

Commercial Vacancy Rate by Class

218 PROPERTIES 9,531,758 SF 2.5% VACANCY $7.67 AVG. RENT/SF Class A

20%

Square Feet Vacancy Rate*

15%

Avg. Lease Rate

4,078,897 10.9% $27.54

Class B

10%

Square Feet Vacancy Rate*

5%

Avg. Lease Rate 0 Q4 2012

Q4 2013

Q4 2014

Q4 2015

Q4 2016

Q4 2017

Class B

Class C

18.8% $23.22

Class C Square Feet

Class A

2,903,465

Vacancy Rate* Avg. Lease Rate

Source: CoStar, 2018 *December 2017

668,529 12.5% $19.59

36 H O U S I N G & E D U C A T I O N

28,623 residents call King of Prussia their home.

Retail, dining, entertainment, employment and recreation at your fingertips.

37

Residential options in UMT/KOP are expanding

“King of Prussia exemplifies the Live, Work and Play model.

With a strong employment base, world-class dining, shopping and entertainment, top-rated schools and quality housing, it is an ideal place to call home.”

with more than 2,500 units of modern, new, rental and for-sale housing units opened or currently under construction. All of the new housing is located in close proximity to retail, dining and employment centers. Early reports are that these new units are being occupied by people who are abandoning long commutes for residential units closer to their jobs in King of Prussia. This should have a significant impact on the reduction of traffic and congestion in the coming years.

Average Rental Rates Studio............................................ $1,094

Pete Sikora Development Manager Bozzuto Development Company

1 bedroom �������������������������������� $1,238 2 bedroom �������������������������������� $1,590 3 bedroom ��������������������������������$2,374

#9

Source: US Census Bureau, 2012-2016 ACS 5-Year est.

BEST SUBURB FOR MILLENNIALS IN PA

Multi-Family Residential Units Under Construction

Source: Niche, 2018

Multi-Family Average Rate per SF

1,864

1,022 683 363 0

251 DeKalb

2010

2014

2015

2016

2017 Source: CoStar, 2018

38

High-quality educational offerings are a cornerstone of any great community.

UMT/KOP residents and employers benefit from the Upper Merion Area School

Districtâ&#x20AC;&#x2122;s (UMASD) outstanding academic and extracurricular K-12 programs.

UPPER MERION AREA HIGH SCHOOL

Beyond grade 12, residents and employers enjoy

#32

unparalleled access to more than 25 nearby colleges

Best High Schools in PA

and universities. When you couple this incredible access

Source: Niche, 2018

with UMTâ&#x20AC;&#x2122;s pro-business climate and low residential and business taxes, you have a winning formula for a diverse community, poised for future growth.

SILVER MEDAL U.S. News & World Report, 2017

A+

Overall Rating Source: Niche, 2018

39

NE ARBY COLLEGES 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

Rendering of Caley Elementary School

Opening September 2018: Caley & Gulph Elementary Schools Responding to increased enrollment, UMASD is investing $64M in two new elementary schools. The new K-4 schools will enable the district to offer full-day kindergarten for the first time, and will replace a 50-year old school. Following redistricting, the schools will open September 2018.

Next up: UMASD will review and plan for the needs associated with the current high school.

NE ARBY UNIVERSITIES Arcadia University

KOP-BID is proud to contribute $5,000 to UMASD student scholarships and teacher grants in 2018!

Delaware Valley University Drexel University Eastern University Immaculata University La Salle University

School Building

Grade Level

Enrollment

Penn State University, Delaware County

Bridgeport Elementary

K-4

399

Caley Elementary

K-4

424

Candlebrook Elementary

K-4

399

Gulph Elementary

K-4

Opening Fall 2018

University of Pennsylvania

Roberts Elementary

K-4

377

University of the Sciences

Upper Merion Area Middle School

5-8

1,287

Villanova University

Upper Merion Area High School

9-12

1,147

Penn State University, Great Valley Philadelphia University Saint Josephâ&#x20AC;&#x2122;s University

West Chester University

40 E C O N O M I C D E V E L O P M E N T

With over $1B in development projects currently underway, King of Prussia has truly established itself as the economic powerhouse of the suburban Philadelphia region.

COMPLETED IN 2017

933 FIRST AVE.

THE VILLAGE AT VALLEY FORGE

Developed by Brandywine Realty Trust for GeoBlue’s corporate headquarters, the 110,000 SF build-to-suit in the King of Prussia business park includes a gym, private company café and a full corporate training center.

Canvas is the first active adult (55+) apartment complex in UMT/KOP. The five-story property features 231 spacious units with enclosed first floor parking, an infinity pool and outdoor dining areas, spa, dog park, workshop space and community garden. The project was developed and constructed by The Bozzuto Group.

GeoBlue

Canvas Valley Forge

127 S. GULPH RD.

Best Western Plus The Inn at King of Prussia Located in the heart of UMT/KOP, the hotel recently completed renovations to its lobby, front desk, breakfast room and media center along with a new ballroom for up to 80 guests. A new conference room, boardroom, self-service market and fitness center rounded out the $1M renovation.

300 VILLAGE DR.

Fairfield Inn by Marriott Philadelphia Valley Forge/King of Prussia

Located next to the Crowne Plaza Valley Forge, the Fairfield Inn underwent a significant $5M renovation, updating décor and furnishings in its guest rooms, expanding the lobby and breakfast area, and adding a grab-and-go market and state-of-the-art fitness center.

41

THE VILLAGE AT VALLEY FORGE

Hanover Valley Forge

The 339-unit ultra high-end, luxury one and two bedroom apartments at The Village at Valley Forge feature an outdoor courtyard with resort-style pool, fire pit and outdoor grill and a clubhouse complete with a fitness center, cinema, demonstration kitchen and gaming area.

THE VILLAGE AT VALLEY FORGE

611 W. DEKALB PK.

175 N. HENDERSON RD.

A Toll Brothers community, The Brownstones at The Village at Valley Forge feature luxurious three bedroom, 2.5 bath stacked townhomes with optional basements and roof terraces. 49 townhomes in four buildings have already sold for between $400,000 and $500,000, with plans for an additional 83 townhomes in 11 total buildings.

Developed by OneCorp and sold for nearly $12M, construction on the 18,000 SF property at 611 W. DeKalb Pk. was complete in Spring 2017.

This state-of-the-art car wash opened November 2017 and features a soft cloth, conveyor car wash complete with the latest technology.

The Brownstones

Bassett Furniture

Valley Forge Car Wash

116 FIRST AVE.

Valley Forge Casino Resort

The Casino Tower enjoyed its first renovation in more than a decade. The $6M renovation included new carpeting, draperies, upgraded bathrooms and artwork for 40 suites and 116 standard rooms, and the addition of two “super suites.” Additionally, a $500,000 renovation transformed the 4,442 SF Grand Ballroom with updated décor, added space, an enhanced entryway and a new bar.

42

2018 & BEYOND

630 ALLENDALE RD.

The American College of Financial Services

Moving from Radnor, The American College of Financial Services will set up its headquarters in KOP in 2019. The 156,000 SF building at 630 Allendale Rd. will provide ample space for future development and will accommodate the staff of over 200 and students who travel from across the country for accreditation each year.

1400 N. OUTER LINE DR.

Valley Forge National Historical Park

In October 2018, the Valley Forge National Historical Park will set up a temporary full-service Visitor Center in their parking lot as they begin construction on a new $10M Visitor Center. Scheduled to reopen in Spring 2020, the new Center will feature improved physical accessibility, upgraded security, new HVAC, finishes and $2.4M in new exhibits.

THE VILLAGE AT VALLEY FORGE

THE VILLAGE AT VALLEY FORGE

Now under construction just south of The Childrenâ&#x20AC;&#x2122;s Hospital of Philadelphiaâ&#x20AC;&#x2122;s King of Prussia Specialty Care & Surgery Center, Woodfield Valley Forge will feature 320 units, a 495-space parking garage, a pool, fitness center, pet spa, flex work area and a sky lounge as part of its amenities package.

This luxurious, 274-unit flexible stay rental property by Korman Communities will feature furnished and unfurnished one- and twobedroom suites, along with two-level structured parking, a fitness center and pool with incredible outdoor entertainment space. The complex is expected to be complete by April 2018.

Woodfield Valley Forge

AVE King of Prussia

43

2018 & BEYOND

$25M RENO

V A T IO

N 160 N. GULPH RD.

King of Prussia Mall

On the heels of the 2016 expansion connecting the 'Court' and the 'Plaza,' the owners of the King of Prussia Mall plan to invest approximately $25M to renovate the former 'Plaza' wing.

Simon Property Group is also considering new opportunities for the vacant JCPenney lot.

250 KING MANOR DR.

265 MALL BLVD.

King of Prussiaâ&#x20AC;&#x2122;s only brewery will feature a tasting room, event space and food truck grotto in a 62,000 SF facility at 250 King Manor Dr. Opening late Spring 2018, Workhorse will offer wi-fi and a family-friendly environment.

Slated to open April 2018, the brand new 9,700 SF upscale restaurant will specialize in steak and seafood dishes and will also feature sushi and a full service bar. The completed restaurant will accommodate 220 guests and employ 100 full and part time staff.

Workhorse Brewing Co.

J Alexanderâ&#x20AC;&#x2122;s

500 N. Gulph Rd.

Brandywine Realty Trust is creating a modern 100,820 SF, Class-A office building and new parking structure expected to deliver Fall 2018. The redevelopment is designed for tenants seeking high visibility, an efficient footprint, high-quality finishes and access to unparalleled amenities including open exterior balconies and indoor and outdoor collaborative spaces.

44

2018 & BEYOND

THE VILLAGE AT VALLEY FORGE

Main Line Health

Plans are underway for a $32M healthcare center at The Village at Valley Forge across from the Sheraton Valley Forge Hotel. The 94,000 SF complex is being developed by Main Line Health in a partnership with Axia Women’s Health, and is expected to open November 2019.

670 W. DEKALB PK.

260 MALL BLVD.

550 ALLENDALE RD.

Opening Summer 2018, Eddie V’s is a Darden Restaurant specializing in seafood and world-class service. Each location is unique in its artwork and décor, and features live jazz in the V Lounge.

Renovations to all 226 guest rooms will begin in April 2018 through the end of June, with lobby and meeting space renovations planned for 2019.

The 96,000 SF four-story self-storage facility containing 750 units is planned for 550 Allendale Rd.

Eddie V’s

Crowne Plaza

Storage Partners of King of Prussia

301 W. DEKALB PK.

DoubleTree by Hilton

Renovations are underway on the 327-room property, with a Starbucks storefront and gift shop already complete. The remainder of the $3.2M renovation will focus on guest rooms, meeting space, the lobby, and its two restaurants. The project will be complete in 2018.

45

2018 & BEYOND THE VILLAGE AT VALLEY FORGE

Hanover King of Prussia

Located across the street from Hanover Valley Forge at The Village at Valley Forge, this luxurious 339-unit apartment complex will feature similar high-end amenities.

KING OF PRUSSIA BUSINESS PARK

750 Moore Rd.

Located in the heart of the KOP business park, 750 Moore Rd. will be a five-story building on roughly 5.2 acres featuring 248 one- and two-bedroom apartments.

The building will contain a resort-style clubhouse with fitness center, cyber cafĂŠ, virtual golf, private movie theater, resident lounge and an elevated interior courtyard featuring an expansive pool, upscale cabanas and an outdoor kitchen/dining area.

S. HENDERSON RD. & SHOEMAKER RD.

Self Storage

Johnson Development Associates and Cubesmart are planning a four-story, 120,000 SF self-storage building on 3.34 acres at the corner of S. Henderson Rd. and Shoemaker Rd.

200 N. Warner Rd.

Cohen Equities completed a multi-million dollar renovation at 200 N. Warner Rd. The capital improvements, led by Meyers Design and Shields Construction, included new windows, atrium, lobby and amenities.

KING OF PRUSSIA BUSINESS PARK

Park Square

Bentley Homes partnered with Cornerstone Communities to create 320 luxury apartments at 751 Vandenberg Rd. The $60M project will consist of four buildings surrounding a beautifully designed courtyard.

46 K I N G O F P R U S S I A D I S T R I C T

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.

View of King of Prussia business park

King of Prussia District (KOP-BID) is a unique not-for-profit organization, founded in 2010 by Upper Merion Township (UMT) Ordinance, that is a catalyst for economic development and job growth in KOP. KOPBID serves over 300 commercial property owners in an area covering 1,900 acres.

47

KOP-BID’s charge is to work with UMT and commercial

KOP- BID

EXECUTES A

5 - PROG R AM PL AN:

Physical Improvements

High quality, attractive public spaces

property owners on strategies that instill resident, corporate and investor confidence and, ultimately, help increase property values and grow revenue for UMT, the school district, Montgomery County and the Commonwealth.

S EL EC T 201 7 A C HIEV EM ENT S

PHIL ADELPHIA BUSINESS JOURNAL

POWER 100

presented to Eric T. Goldstein MONTCO HAPPENING

Land Use & Zoning

A comprehensive and cohesive vision for the future of KOP

BEST FOODIE EVENT

presented for KOP Beerfest Royale INTERNATIONAL DOWNTOWN ASSOCIATION

Tax Policy

A regionally competitive tax structure

MARKETING MERIT AWARD

presented to KOP-BID for rebranding campaign Our Edge. Your

.

Transportation

Multi-modal transportation W IT HIN T HE KO P-B ID B O UNDA RIES

options and enhancements

Marketing & Communications Elevating KOP’s profile in the region

304

$1.39B

1,900

Commercial Property Owners

Total Assessed Value of Commercial Property

Acres

48

Elevating KOP’s Profile

KOP-BID is committed to keeping KOP’s profile in the forefront by sharing the stories that help define it as one of America’s great edge cities.

29,000,000 Digital Billboard Impressions

1,000,000 Digital Ad Impressions

389,000 Print Ad Impressions

273,000 Radio Ad Impressions

87,841

52

Unique Visitors to visitKOP.com

News stories generated from KOP-BID initiatives, events and press releases in 2017.

49

KING OF PRUSSIA DISTRICT AWARDS Award recipients represent individuals and companies in King of Prussia that exemplify the goals and mission of KOP-BID.

Leadership

Dr. Valerie Arkoosh, Chair Montgomery County Board of Commissioners Commercial Office Property Vertex, GeoBlue &

Brandywine Realty Trust Economic Development Realen Properties for

Through numerous speaking engagements, op-eds and committee appointments, King of Prussia District was proud to represent the KOP business community in 2017.

The Village at Valley Forge Transportation

Pasquale T. Deon, Sr., Chair SEPTA Board of Directors Hospitality

Sheraton Valley Forge Hotel SOCIAL MEDIA FOLLOWERS

Residential

Canvas Valley Forge & Bozzuto Development Company Retailer

Founding Farmers

1,369

11,441

6,025

56% increase from 2016

55% increase from 2016

427

Community Outreach

Upper Merion Township Parks & Recreation Department & Upper Merion Township Community Center Complex Advisory Board

50

A Culture of Events

2018 BUSINESS EVENTS March 21

Annual Report Luncheon September 13

Networking Breakfast December 13

Annual Meeting & Holiday Reception

FIRST WEEK IN MARCH

dineKOP Restaurant Week King of Prussia’s only restaurant week, dineKOP shines a spotlight on KOP’s diverse and rapidly growing dining scene while offering incredible prix-fixe lunch and dinner menus. dineKOP benefits The Children’s Hospital of Philadelphia’s King of Prussia Specialty Care Center (CHOP KOP).

In the past 3 years, dineKOP raised $37,000 for CHOP KOP.

New in 2018

KOP-BID adds KOP Shops for CHOP, a charitable day

“King of Prussia District’s networking events are always well attended and create numerous opportunities to make new introductions and acquire new business.

I always enjoy attending KOP-BID events!”

David Plechner Director of Design and Construction Penn Outdoor Services

of shopping, to the dineKOP event line-up!

21

UNIQUE EVENTS HOSTED IN 2017

51

SUBURBAN PHILLY’S MUST-ATTEND FALL FESTIVAL

SOLD OUT

OCTOBER 4 & 6

King of Prussia Beerfest Royale & Donnerstag: Happy Hour

6 Years in a Row

KOP-BID’s signature event and the biggest party in the burbs, KOP Beerfest Royale features more than 100 craft and international beers to sample, inspired dishes from KOP’s best restaurants, live music on two stages, a cigar lounge and much more. From dozens of restaurants and transportation providers, to printers and hotels, KOP businesses support, and are represented at, KOP Beerfest Royale!

3,200 ATTENDEES Largest Crowd | 2017

EVERY THURSDAY IN JUNE

Rock Your Lunch Summer Concert Series A mid-day escape for employees, Rock Your Lunch features live music, yard games and free samples from KOP’s best restaurants.

52

Transforming Public Spaces

KOP-BID believes in the power of beautifully designed and well-maintained landscapes. These projects have transformed some of King of Prussia’s most traveled roadways.

First Avenue Linear Park & Demonstration Project The Linear Park is a unique collaboration between KOP-BID, UMT, PennDOT and 21 private property owners (26 parcels). When complete, the Linear Park will use access easements on private property along First Ave. to create an active and vibrant amenity open to the public.

In May 2017, KOP-BID officially opened the Demonstration Project, a 450-foot section of the Linear Park designed to give property owners and visitors a peek of what’s to come.

Demonstration Project

Now in the final stages of design and engineering, construction on Phase 1 will be completed in 2019. The The Demonstration Project was funded, in part, by a grant

Linear Park’s features include a wide multi-use path,

from the Commonwealth of Pennsylvania’s Commonwealth

solar pedestrian lights, benches, waste receptacles and

Financing Authority. Matching funds were provided by Brandywine Realty Trust and King of Prussia District.

landscaping. KOP-BID is working on funding to complete the project that will ultimately extend to Allendale Rd.

Medians

Since 2011, KOP-BID has transformed nearly two acres of concrete and asphalt into beautiful and sustainable landscapes along some of Upper Merion’s most traveled roadways such as Henderson Rd., DeKalb Pk., First Ave. and Route 76 (Schuylkill Expressway).

Median Plantings

53

S I N CE 2 011 King of Prussia District has installed

16,988

Artistic rendering of proposed Allendale Rd. landscape improvements

PE RE N N IAL S

8,808 BULBS

4,822

O RNAM ENTAL G R AS S ES

1,237

10-Year Strategic Plan In 2017, King of Prussia Districtâ&#x20AC;&#x2122;s Physical Improvement Committee hired Glackin Thomas Panzak (GTP) Landscape Planning | Landscape Architecture to help develop a 10-year strategic plan for capital improvements.

The plan identified 19 projects and placed them on a short (1-3 years), medium (3-5 years) and long-term (5-10 years) timeline. GTP is currently designing the short-term projects and KOP-BID expects to implement the first of these early action projects in 2018.

Since 2011, KOP-BID has invested more than $2M into the design, construction and maintenance of landscape projects throughout UMT.

S H RU B S

112 TRE ES

Gateways In 2012, King of Prussia District designed and installed illuminated gateway signs and accompanying landscapes at six major entrances to the Township.

KOP-BID continually maintains these gateways at Warner Rd. & Route 422, First Ave. & N. Gulph Rd., S. Gulph Rd. & Henderson Rd., Mall Blvd. & PA Turnpike and DeKalb Pk. near Saulin Blvd.

54

Improving Access and Connections

Access is the life-blood of King of Prussia.

There are a number of exciting transportation projects underway, and in the planning stages, that will dramatically improve access to King of Prussia for employees, residents and visitors, alike.

Artistic rendering of King of Prussia Rail traveling along Mall Blvd.

55

King of Prussia Rail

58%

King of Prussia Rail is a proposed 4-5 mile extension of SEPTA’s existing Norristown High Speed Line that, when complete, will connect passenger rail to some of the largest employment centers in the Township. This estimated $1B project will provide the opportunity to connect the region’s

IN AN APRIL 2017 SURVEY OF 1,137 RESIDENTS, EMPLOYEES AND COMMERCIAL PROPERTY OWNERS

BY AGILECAT FOR KOP-BID, 58% SAID THEY SUPPORT KING OF PRUSSIA RAIL.

three largest employment centers: Center City, University City in Philadelphia and King of Prussia.

28% oppose | 14% undecided 740 of the 1,137 were UMT/KOP residents

Artistic rendering of King of Prussia Rail traveling along First Ave. SC HU

YL KI LL

RI VE R

VA

FO

RG

D ER

23

HE

Valley Forge National Historical Park

EY

RT PO N GE IO ID ER BR RM PE UP

23

LL

ND

BRIDGEPORT NHSL STATION

ER SO N

King of Prussia Business Park

RD

202

2 1 276

Valley Forge Casino Resort PE N

N SY

LV AN

IA TU

R N PI

SY LV

DE AN IA

TU RN

LF

4

3

5

King of Prussia Mall RD

KA

E

PI KE

KE

76 GU

PE NN

P IK LB

One study found that the rail line could add anywhere from $540 million to $946 million to the assessed value of existing real estate in the area, and encourage new development of up to 8 million square feet.

DE

KA

LB

P IK

– Curbed Philadelphia, September 2017

276

E

422

Existing NHSL

HE

202 GU

SO

LF R D

ER

LB PI KE

ND

DE KA

N RD

PECO/Turnpike/First Ave., Locally Preferred Alternative (LPA) with the North/South design option

Why Support King of Prussia Rail?

Faster Commutes

Increase Opportunities

Reduce commute times to/from University City and Center City Philadelphia by as much as 30 minutes each day.

Connect employers to a broader pool of employees, and give residents easier access to jobs along the route.

Reduce Traffic & Emissions

Save Money

Reduce up to 18M vehicle miles traveled annually, resulting in less congestion and reduced emissions.

Commuters will save approximately $3,760 in fuel and parking expenses annually, and $12,000 annually for commuters who eliminate their car.

Generate Jobs Generate 5,400-6,300 jobs (direct and indirect) during construction, and 1,000 annually.

Artistic rendering of King of Prussia Rail traveling over US Route 202

57

KOP-BID is helping lead an advocacy effort for the King of Prussia Rail project. This has led to the creation of a regional coalition.

The King of Prussia Rail Coalition was formed to build support among residents, commercial property owners, elected officials, employees, visitors, regional economic development and job growth agencies, chambers of commerce and more.

First Avenue Road Diet

Drivers, cyclists and pedestrians will soon enjoy a safer experience in the King of Prussia business park thanks to improvements planned for First Avenue. Managed by KOP-BID, with partial funding from UMT and a $432,000 grant from the Transportation Alternatives Program (TAP), the First Avenue Road Diet will reduce travel lanes to one in each direction, add a center turn lane, bicycle lanes and a signalized

In 2017, Jerry Sweeney, President & CEO of Brandywine Realty Trust, agreed to Chair the Coalition’s Advisory Committee, a group of for-profit and not-for-profit leaders who believe King of Prussia Rail will help the Philadelphia region remain nationally and internationally competitive.

crosswalk midway between American Ave. and Moore Rd. The safety improvement project will begin Spring 2018 and is expected to be complete by Summer 2018.

KOPRailCoalition.com

theconnector theconnector is a commuter shuttle bus service managed by KOPKing of Prussia Rail Coalition Press Conference L to R: Rob Wonderling, Chamber of Commerce for Greater Philadelphia; Eric Goldstein, King of Prussia District; Dr. Valerie Arkoosh, Chair, Montgomery County Board of Commissioners; Jerry Sweeney, Brandywine Realty Trust; Bernie Dagenais, Main Line Chamber of Commerce; Jeff Guzy, Chairman of the Board, GVF

BID connecting UMT/KOP employees to SEPTA Regional Rail at the Norristown Transportation Center and Wayne Station M-F during the AM and PM rush hours. The comfortable 14-passenger shuttles offer free Wi-Fi, bicycle racks and are ADA compliant.

58

Progressive Zoning

In September 2014, UMT, with assistance from

A number of projects have already come out of

KOP-BID, officially rezoned the KOP business

the ground as a result and many more are likely

park to a mixed-use district. The new zoning

in the coming years, especially if the large-scale

allows multi-family residential and service

infrastructure projects, like the PA Turnpike slip

retail for the first time since the business parkâ&#x20AC;&#x2122;s

ramp and King of Prussia Rail, come to fruition.

creation in the late 1950s/early 1960s.

Betzwood Bridge Improvement

Park Square 630 Allendale Rd.

10

1

750 Moore Rd.

Approved Storage Facility

Valley Forge National Historical Park

11

2

Valley Forge Casino Resort

King of Prussia Business Park

4

First Avenue Road Diet

5

9 7 8

3

6

GeoBlue American Baptist Church

Linear Park

Demonstration Project

King of Prussia Mall

1

Park Square Multi-family residential development with 320 units

6

American Baptist Church Marketed for redevelopment

2

750 Moore Rd. Multi-family residential development with 248 units

7

Linear Park 2.6 mile park connecting businesses along First Ave.

3

GeoBlue 110,000SF new office construction

8

Demonstration Project Designed to give property owners and visitors a sneak peek of the Linear Park

4

Approved Storage Facility 96,000 SF with 750 units

9

First Avenue Road Diet Safety improvement project

5

Valley Forge Casino Resort Recently acquired by Boyd Gaming

10

Betzwood Bridge Improvement Bridge improvement project as part of the Route 422 expansion

11

630 Allendale Rd. Sold to The American College of Financial Services for new HQ

Proposed alignment of King of Prussia Rail

Proposed slip ramp location

59

Tax Policy

In an effort to ensure that King of Prussia has a regionally competitive tax structure that promotes and grows business, KOP-BID continues to examine the existing tax codes of UMT and periodically monitors the tax codes of nine of the largest competing centers of commerce in the region.

In 2017, KOP-BID engaged Econsult

development activity in the past few

Solutions, Inc. to conduct a follow-

years in KOP as well as the Township

up study to the 2011/2012 report

Supervisorsâ&#x20AC;&#x2122; ability to hold the line

released on the tax impacts of various

on tax increases for an incredible 8th

corporate locations throughout the

straight year, Upper Merion moved

region. At the time, Upper Merion

to 3rd on the list, leaving only two

was the 6th highest taxing district for

locations with a lower tax burden on

business in that group. The 2017 study

business in the Philadelphia region!

showed that, due to the economic

0.00089 MILS KING OF PRUSSIA DISTRICT ASSESSMENT FEE

The King of Prussia District assessment fee equals 3.49% of the total real estate tax bill for commercial properties within its boundary.

Total UMT/KOP Real Estate Tax Millage TOWNSHIP

Overall Tax Burden on Business by Jurisdiction (1=lowest, 10=highest)

Source: Econsult Solutions, Inc., 2017

Jurisdiction

2017 Rank

2011 Rank

Newtown Square

1

3

Tredyffrin

2

1

Upper Merion

3

6

Malvern

4

2

Radnor

5

9

Paoli

6

5

Exton

7

4

Plymouth Twp.

8

-

Conshohocken

9

8

Whitemarsh

10

7

COUNTY SCHOOLS COUNTY COLLEGE TOTAL

2.159 3.459 19.430 .39 25.438

60

2017 Revenue & Expense Summary

Revenues

2017

2016

$1,191,060

$1,126,812

272,209

327,358

Sponsorships/Grants

22,828

100,113

Special Event Income*

68,114

64,209

Contributions

1,700

23,328

Interest

1,188

1,338

$1,557,099

$1,643,158

2017

2016

Assessment Fees theconnector

Total Revenues *Net of expenses

Functional Allocation of Expenses Physical Improvements

$408,324

$514,523

Marketing & Communications

395,214

330,472

Transportation

498,821

515,846

Land Use & Zoning

21,701

18,255

Tax Policy

21,619

11,266

Management & General

168,233

184,440

Fundraising

96,692

98,985

$1,610,604

$1,673,787

(53,505)

(30,629)

Total Expenses Net Income (Loss)

All revenues and the functional allocation of expenses reflect audited financial statements from December 31, 2017.

Completed copies of the December 31, 2017 audited financial statements of King of Prussia Business Improvement District (audited by Kreischer Miller) are available upon request.

Contact Julie DeMasi, Manager of Finance & Administration, at julie@kopbid.com.

$119,693 IN-KIND CONTRIBUTIONS RECEIVED BY

KING OF PRUSSIA DISTRICT TO SUPPORT 2017 PROGRAMS AND EVENTS.

61

Board of Directors Chair Eric C. Davies Wurzak Hotel Group Vice Chair Carol McCoy Radial Treasurer Daniel Platt UGI Corporation Secretary Jeff DeVuono Brandywine Realty Trust Past Chair

Michael Brookshier Keystone Property Group

Richard Kubach RWK Enterprises, Inc.

David Fahey Avison Young

Skip Kunda Kunda Beverage

Adam Heine Camden Securities Co.

Kevin Lang Wegmans

Rob Henry GVF

Dennis Maloomian Realen Properties

Andrew Horning Bala Consulting Engineers, Inc.

Suzanne Ryan PECO

David Kraynik Upper Merion Township

Andrew Tod GF Management

Bob Hart Simon Property Group

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

Julie DeMasi Manager, Finance & Administration Shauna Sanchez Digital Marketing Associate

Chris Basler Director, Capital Projects & Planning From Left: Chris Basler, Julie DeMasi, Eric Goldstein, Shauna Sanchez and Rachel Ammon

62

Thank You to Our Generous Sponsors 2017 K O P B EER FES T R O Y A L E

Presenting Sponsor

In-Kind Sponsors

Annual Gold Sponsors

Annual Silver Sponsors

Pilsner Sponsors

B U S I N ES S N ET W O R K I N G Annual Sponsors

APPI energy

In-Kind Sponsors

Y OG A HA PPY HO UR

D I N EK O P

R O CK Y O U R L U NC H

King of Prussia Districtâ&#x20AC;&#x2122;s 2018 Report to the Community was researched and written

One complimentary copy per person is available at:

by KOP-BID staff and designed by AgileCat. KOP-BID has made every effort to avoid

King of Prussia District

errors in this publication. View online at visitKOP.com/about/publications

234 Mall Boulevard, Suite 150 King of Prussia, PA 19406

Stay informed by signing up for the KOP-BID monthly eNewsletters at visitKOP.com.

Please contact KOP-BID for bulk pricing.

Photography/Renderings Courtesy of: 251 DeKalb; AgileCat; AVE/Korman Communities; Bassett Furniture; Bergmann Associates; Bernardon Harber Holloway Architects; Best Western Plus The Inn at King of Prussia; Boles, Smythe Associates Inc.; Bozzuto Development; Brandywine Realty Trust; Candlebrook Properties; Choolaah Indian BBQ; Cohen Equities; Competitive Edge Sports; Crowne Plaza; Don Pearse Photographers; DoubleTree by Hilton; Eddie V's; Eric Prine Photography; Escape Room Mystery; Fairfield Inn; GeoBlue; Get Air; Glackin Thomas Panzak; Ground Reconsidered; Hanover; iFly; J Alexander's; Johnson Development Associates; Julia Paddison; King of Prussia Town Center; KTGY; LeCesse; Main Line Health; Mistral; Montgomery County Planning Commission; PennDOT; Pennoni Associates; SEPTA; Simon Property Group; The Judge Group; Toll Brothers; Upper Merion Township; Upper Merion Area School District; Upper Merion Farmers Market; Valley Forge Car Wash; Valley Forge Casino Resort; Valley Forge National Historical Park; Valley Forge Tourism & Convention Board; Vertex, Inc.; Weld Photography; Woodfield Valley Forge; Workhorse Brewing Company

234 Mall Boulevard, Suite 150, King of Prussia, PA 19406