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23 AUGUST 2012
REGIONSBUSINESS.COM
IF WE WANT TO MAINTAIN THE COMPETITIVE ADVANTAGE OF LOCATION, WE HAVE TO PAY MORE ATTENTION TO ACCESS.’ —MERYL LEVITZ
as it was in other cities, so that’s also sound for business. But our taxes have to decrease, even if it’s the smallest, minutest amount. That would be a very strong signal that Philadelphia is open and wants to business.”
Charles Ramsey PHILADELPHIA POLICE COMMISSIONER
“Bringing gun violence under control is a constant challenge for us,” Commissioner Charles Ramsey said. “Pennsylvania has very weak gun lawns, and certainly as a result of that, we have what I believe to be a level of gun violence that is unacceptable.” Crime has been one of Philadelphia’s most immovable obstacles. Out of the nation’s 10 largest cities, Philadelphia has the highest homicide rate according to 2010 FBI statistics. Last year ended with 324 homicides - up from 306 from 2010 - and this year had already seen 207 by the end of July. Unfortunately, it’s not just gun violence plaguing the city; there have been more than 10,000 violent offenses so far this year, including more than 550 rapes and more than 5,000 aggravated assaults. How that is affecting the city’s growth is more difficult to quantify. “Public safety does have an impact on
any city and its ability to attract resi2012: A DEADLY YEAR dents and businesses. But having said that, we’ve made a lot of progress in Homicides that area,” Mr. Ramsey said. “I don’t increase know if we ever get to a place where After three years of relative, we feel like we’re safe enough, but we though still deadly, stability need to continue to push forward and in regard to the homicide be as safe as we can possibly be.” rate, as of August 22, Before Mr. Ramsey came to Philathere have been delphia in 2008, he served as chief of the Metropolitan Police Department of the District of Columbia for nine years and spent 30 years as a member of the Chicago Police Department. homicides in Philadelphia in Like Philadelphia, Chicago has also 2012. At this rate, more than been battling surges in violent crime. 350 people will have been “There are some cities in the counkilled by the end of the year try that have seen spikes in crime,” which would be the most Mr. Ramsey said. “But you have to since 2007. remember that crime rates across this country are lowest they’ve been since the 1960s. Those are the kind of numbers you’re going up against. The economic downturn has had an impact on budgets. As a result, there have been some cutbacks. So it’s not surprising we’re starting to see some crime numbers creep back up.” As for the future, Philadelphia police have embraced social media to combat crime and increase public awareness. “I believe very strongly in the use of social media to reach out and touch people,” he said. “And we’ve been very aggressive in that area and proud to say that Philadelphia is a leader in the country in terms of its use of social media.” Mr. Ramsey cited the attempted kidnapping of a 10-year-old girl
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Tensions Mount Between Unions, Developers Development in Philadelphia is heating up again after a long period of hibernation, but it’s not smooth sailing for companies choosing to defy the city’s powerful unions. The Goldtex site in the Loft District - a project led by brothers Matthew, 35, and Michael Pestronk, 31 - has been battling union protesters since March. The apartment developers and brothers chose to use mostly nonunion labor for their project, and since it is privately funded, they are under no legal obligation to hire union. Michael Pestronk said they offered 40 percent of the jobs to union workers, but the unions allegedly refused unless the Pestronks agreed to go 100 percent union. The Goldtex fiasco is just one example of developer/union animosity plaguing Philadelphia. Developers have long argued that union influence over building sites paired with their hefty
price tag will continually outweigh any potential profit. Unions counter that without representation, they will see wages slashed to minimum wage levels and their benefits disappear. According to the Pestronk brothers’ website, PhillyBully.com, the Philadelphia Carpenters Union required a $63 an hour wage, which far exceeds the market rate. The union says it pays its workers $35-45 an hour, which would still be higher than the hourly union rate in Washington, D.C. Despite having to hire a private security force to protect the project and supplies from protesters, the
developers say they are saving 25 percent with nonunion workers. The union debate is a source of constant ire for both sides, and many are keeping a close eye on the Goldtex site feud. Philadelphia is America’s oldest and most enduring union town, but attitudes toward the once-untouchable unions have been shifting in recent years. In 2008’s “The Last Union Town,” Philadelphia magazine writer Matthew Teague said unions “have entwined themselves into the
material of the city, so that the very idea of introducing a free market has become almost unspeakable.” In its own reporting of the Pestronks, The Philadelphia Daily News printed “Developers Take On Thuggish Philly Unions” on the front page. The Goldtex site is being considered a major battle in the developer/union war. If the Pestronk brothers succeed with their build, many developers could follow suit in hiring primarily nonunion workers for future projects. If they fail, unions will maintain their dominance. Meanwhile, Philadelphia development hangs in the balance.