Philadelphia officials expect to see continued high numbers of major construction projects in 2022, despite the partial disruption of the tax stimulus at the end of last year that made some real estate developments more profitable.
Last year saw 90 record-breaking construction projects before the Civic Design Review Board, which has been tasked with submitting non-binding proposals on Philadelphia’s largest development proposals as part of the city’s construction approval process, Department of Planning and Development officials said in a Tuesday briefing.
Officials said the increase, to about double the number the commission reviewed in most years, came as developers raced to take full advantage of the city’s 10-year property tax cut for new construction. As of January 1, the city has begun phasing out the mitigation process by reducing its value by 10% annually.
Major projects reviewed by CDR last year included a 275-unit apartment building planned by Alterra Property Group at 4301 Chestnut St. , and the Durst Organization’s proposal to build 360 housing units on a previously owned plot of land between Vine and Calohill Streets on North Christopher Columbus Boulevard.
With interest rates on construction loans low and most of the property tax cuts still in place, it looks like development will continue apace next year, said Eleanor Sharp, executive director of the Philadelphia City Planning Commission.
“Money is still cheap in the market,” she said. “So despite the tax cut adjustment, there will be people who benefit from what is today as opposed to next year.”
Because of this expected activity and the backlog of projects left from last year, planners intend to impose stricter deadlines and other measures aimed at giving employees more time to deal with requests for new projects.
The biggest change is that developers are required to submit their projects for CDR review four weeks in advance of session deadlines, instead of the three weeks allowed in past years.
“We want to make sure that the development community has all the predictability that they can go through this process as smoothly as possible,” said Paige Berryman, Director of the Planning Commission.
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