[CentralGrad258]

I really hate to turn this into a pro-abatement vs anti-abatement arguments, because this project is awesome and I hope it gets built. However, if since we're there now, I think the pro-abatement side is not looking at the issue critically, simply by parroting the developers talking points. To act as if nobody would be moving to Philly if not for abatements does not stand up to close scrutiny-

a.) It completely ignores the fact that downtown living has seen a major boost across the entire country. Every single city has seen its downtown population boom and to pretend that Philly would have missed out on the trend, had it not been for abatement is a serious reach.

b.) Assuming the demand for downtown living is there, would paying real estate taxes diminish the demand or constrain the supply? Maybe in some marginal cases, but developers build where there's demand. Their profit margins might suffer and maybe a project here or there doesn't get built, but if the wealthy want to live downtown, someone will be more than happy to build a property for them.

c.) Philly real estate taxes are substantially lower than the surrounding counties. Even after AVI, you're likely paying twice as much for equivalent property value in the burbs than in the city.

Again, the developers love abatements. They don't have to pay property tax while the property sits, and can charge higher amounts, knowing that the new owners monthly mortgage payments would still be lower due to them not paying real estate taxes. The fact that the properties coming off abatement haven't resulted in a sudden outflows of residents proves that abatements are not longer necessary, to attract development imo. Maybe in the 90s when the legislation was being considered it did make some sense. At this point, not really.

Also, one last thing. If the abatement is really about dealing with the high cost of construction, then you know that's just code for unions. Maybe, just maybe working with developers to find alternatives to hiring building trades contractors for every project could help lower costs of projects, instead of taking money out of city and school district coffers.