PHILADELPHIA DELIVERS Response to the Amazon HQ2 RFP PHILADELPHIADELIVERS.COM [CONFIDENTIAL] OCTOBER 2017 TABLE OF CONTENTS CITY OF PHILADELPHIA PROPOSAL INFORMATION REQUESTED SECTION 01: SITES 15 University City 19 Navy Yard 30 SECTION 02: BUSINESS ENVIRONMENT + INCENTIVES 36 Business Environment 37 SECTION 03: TALENT 62 Additional data maps and testimonials: www.philadelphiadelivers.com/talent SECTION 04: LOGISTICS 80 Additional data maps and testimonials: www.philadelphiadelivers.com/logistics SECTION 06: LIVABILITY 95 Additional data maps and testimonials: www.philadelphiadelivers.com/livability GLOSSARY OF TERMS + CITATIONS 105 Glossary of Terms 106 Citations 107 PHILADELPHIADELIVERS.COM [CONFIDENTIAL] CITY OF PHILADELPHIA OFFICE OF THE MAYOR JAMES F. KENNEY 215 City Hall Mayor Philadelphia, PA 19107 (215) 686-2181 FAX (215) 686-2180 October 16, 2017 Jeff Bezos Founder and CEO Amazon 2121 7th Avenue Seattle, WA 98121 Dear Mr. Bezos: Thank you for the opportunity to present Philadelphia?s credentials in response to the Amazon HQZ RFP. Your solicitation generated a tremendous outpouring of support and excitement from our diverse community of stakeholders across the city, truly making me proud. Philadelphia offers you unparalleled sites in a major city that still has plenty of room to grow, a personality that complements Amazon?s, and a lifestyle that is delightfully frugal. More than 160 CEOs signed a letter ofsupport from the corporate community, spearheaded by the Greater Philadelphia Chamber of Commerce. Members of the tech and startup community submitted 96 testimonials to express how being located in Philadelphia has benefited their companies. Our small business and community organizations joined weekly phone calls to share their thoughts and ensure that Philadelphia?s proposal took the needs oflocal businesses into account. Over 65 college and university presidents produced their own letter to tout the of Philadelphia's education institutions, and nearly 70% of students surveyed by Campus Philly said that they would want to intern with Amazon if the company was located here. At the University of Wharton School, students took it upon themselves to organize not one, but two competitions to showcase their big ideas on how Philadelphia could best pitch your company. just one week after your RFP was released, Philadelphia City Council signed a resolution encouraging Amazon to choose our city; and our local State Representatives have been advocating in Harrisburg for a comprehensive partnership with the Commonwealth of on incentives. CITY OF PHILADELPHIA OFFICE OF THE MAYOR JAMES F. KENNEY 215 City Hall Mayor Philadelphia, PA 19107 (215) 686-2181 FAX (215) 686-2180 Together, as a city, we followed Amazon's lead in focusing on you and your employees as our customers. Through this short, but intense process, we studied and read all that we could about the culture, values and working preferences of Amazon. We traveled to see your impressive campus and how it ?ts into the landscape of Seattle. We started all of our team meetings with a reading period before diving into the strategy debate of the day. opted to complement our written su Wit a we Slte an v1 eo ecause we wanted you to see the dynamism and personality of our city; hear the commitment of our business leaders, entrepreneurs, and community members; and experience the grit and passion that make Philadelphia so unique. Perhaps this quote from one of the Wharton student ?nalists best captures the promise of our city: "If Amazon is looking for thinkers, doers, and revolutionaries; if Amazon is looking to change the status quo, to push the boundaries; if Amazon is looking for a testament to the past and a plan for the future, its next stop should be Philly." We hope that you will agree and ultimately make Philadelphia the home of HQ2. Sincerely, WIZW James F. Kenney Mayor 01 Sites “We have the land, we have the resources, and we have the wherewithal to catapult the city, and it needs a catalyst. Philadelphia’s ready, and I think Philadelphia will be one of the great cities in the world for the next 200 years” — Brian Roberts, CEO of Comcast PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 15 Section 01: Sites FIGURE 1.1: Philadelphia is well connected to the maior economic and population centers of the East Coast. New York City and Washington, DC. are easily accessible by trainLEGEND Amtrak train station International airport Port Major highways l-95 Amtrak PHILADELPHIADELIVERS.COM l6 Section 01: Sites FIGURE 1.2: Philadelphia?s public transportation system is the 6th Iarqest in the country by ridership its robust system provides easy access to downtown, the suburbs, and neighboring states. .Warrninsber Gwyned Van?. 'Hnbom ty .L ho ring me Ambler? . PE NSY LVAN IA - - I Grove Trevose Fort Washington. .Crestmont 0?.So I Elm St. Norristown . Phi'mont et .0 . Orelan .Arf Roslyn Bethaynes Nomstown T.C. North Hills' Meodowbrook TO montgomery Gbnsae. NYC county .Jenkintown ZBOSTON Oiestnut Hill East Fox Chase Eddingtao HillWest: . . 1' 'Cor- . . Highland" Mount Airy flkins Park . To . St. Martins' Stenton Ryers TR TO .MIquon Allen La ne .Melrose PVCheltenham .Wash Lane TO Carpenter" Lawndale Delanco HARRISBURG I Rd Upsal'\ .?Vl?ster""?Fem ck Trans.C Riverside .vy I ge .IA'Olney .O/Holf - .Manayunk ?Quee whi?gtls neJunctIon Cinnaminson rdmore Narbeth mum" legheny Palmyra burlington /Pennsaulien co nty Overbrook University City /nnsaquenTransitCenter .Merion ?Bala delaware county 36thSt CityHall camden Gladstone COU nty Cherry Hill Clifton-Aidan Ferry Ave'\ 0 OS f. 'gcanek ?0 Da . Collin\gswood Rose w/ '?on .ICum'Westmont 0" Sh ron Hill Wallingford G. Fog-01L Haddonfield. sew Eon-mfg ii ProspectNavy Yard ?when" EW JERSEY WILMINGTON BALTIMORE WASHINGTON DC gloucester I 2 3 5 MILES . Proposed Amazon HQZ neighborhoods Subway Line Navy Yard Bus -0- Regional Rail Amtrak El 30th Street Station PHILADELPHIADELIVERS.COM I7 Section 01: Sites Neighborhood: University City credit: Ryan Collard NEIGHBORHOOD: UNIVERSITY CITY DIVERSE NEIGHBORHOOD + A HOTSPOT FOR MILLENNIALS A CENTER FOR INNOVATION + RESEARCH VIBRANT BUSINESS DISTRICT 53,605 442 >76,000 19% $900M 71% >40% 152 residents with a median age between 22-24 of residents are foreign-born in University City 43,908 students enrolled across 4 colleges and universities 56% of residents aged 25 or older with a bachelor’s degree or higher PHILADELPHIADELIVERS.COM [CONFIDENTIAL] start-ups incubated over the past 50 years creating over 40,000 jobs in R&D and 175 patents issued in 2016 of Pennsylvania’s National Institute of Health funding sourced through University City institutions jobs throughout University City of residents walk, bicycle, or ride public transit to work retailers 268 restaurants & bars – an increase of 24% since 2009 19 Section 01: Sites Nelghborhood: University City FIGURE 1.4: University City, located at the heart of the region's public transportation network, is home to world class academic and research institutions. uCity Square chuylkill 3 xt - I?qu/lgz' DREXEU UNIVERSITY - 4 g; 1 .. . :1 ?ItU?NIv-?-Rsnx or ,Ngn? H'o?us'E m1 a. UNIVERSITY . HOSPITAL - at. LEGEND ?Amtrak -O-Regiona Rail 1? ?Freight Rail IO-Subway Line IO-PATCO Train Line -O- Trolley Line Bike Friendly Route lndego Bike Share Location Bus Route 1- Hospital Neighborhood Boundary PHILADELPHIADELIVERS.COM 20 Section 01: Sites Neighborhood: University City I Site: Schuylkill Yards SCHUYLKILL YARDS Situated along the Schuylkill River and adjacent to Amtrak 30th Street Station, Schuylkill Yards provides tremendous access to all of Philadelphia. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] SCHUYLKILL YARDS IS A 14-ACRE NEXT-GENERATION INNOVATION COMMUNITY, INTENTIONALLY DESIGNED AND HOLISTICALLY CREATED FROM THE GROUND UP. Schuylkill Yards’ location, adjacent to 30th Street Station in Philadelphia’s University City, is unmatched due to its connection to transit and the city’s economic and education centers, providing tenants with critical opportunities for brand exposure, collaboration, technology transfer, and millennial workforce development. With a dynamic mix of office space, residential, retail, and greenspace planned, Schuylkill Yards provides incredible value. 21 Section 01: Sites Nelghborhood: University City I Slte: Schuylkill Yards QM 9 SEPIA Yard I I Il?ulure Development] . I I sum; mm! wuwuumsvuo - COWTNQ l? 5 IE Drexel 5 - I University '30m Slreel Slehon IREXELPLAZA Bit? . PLAZA OREXEI SQUARE L. - . . 0 OPEN SPACES l' at" WALK Ciru Square \0 El I Diversity at on. - noon-cc cm I I I The Schuylkill Yards site is organized by a series of public gathering spaces tying directly to local institutions and the waterfront. PARCEL ADDRESS BUILDABLE SQUARE FOOTAGE NUMBER 1 2929 Arch Street, Cira Centre (existing building) 788,107 (proposed for initial 2019 requirement) 2 3001 and 3025-53 Market Street 3,474,100 (proposed for initial 2019 requirement) 3 3001 - 3003 John F. Kennedy Blvd. 996,884 4 3025 John F. Kennedy Blvd. 1,209,152 5 3051 John Kennedy Blvd. 375,510 6 3101 and 3051 Market Street; 3101-57 Rear Market Street 711,070 7 3000-18 Market Street 187,275 8 3020-52 Market Street 357,915 9 3001 Chestnut Street 463,295 Total 0,563.3? PHILADELPHIADELIVERS.COM 22 Section 01: Sites Neighborhood: University City I Site: Schuylkill Yards Amazon’s HQ2 site at Schuylkill Yards offers world class transit and mobility. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 23 Section 01: Sites Neighborhood: University City I Site: Schuylkill Yards REQUESTED INFORMATION Key site specifications Ownership Drexel University and Brandywine Realty Trust, with Brandywine Realty Trust serving as master developer and building owner via long-term master ground lease Site control Owned by Drexel University and Brandywine Realty Trust; Brandywine Realty Trust will be a fee simple owner of select parcels and will master lease the balance from Drexel University Zoning Existing zoning is a combination of CMX-5 and I-2 Initial requirement (2019) 500,000 square feet of existing office space will be available in 2019, accommodated between Cira Centre and One Drexel Plaza Full buildout (2027) The current zoning on the site will accommodate 8.56 million square feet (7.78 million of development and 788,107 in an existing building). Once adopted, the zoning changes recommended by the Planning Commission in its Southwest University City Plan would allow for a total of 17.4 million square feet of development Transit Proximity to population center 1.1 miles to City Hall Proximity to airport ~15 minutes via rail or car Proximity to major highways / arterial roads Schuylkill Yards has multiple on/off access ramps to both I-76 and I-676 directly adjacent to the site (connections within minutes to I-95) Bus 9 bus routes currently available on site (#9, 21, 30, 31, 42, 44, 62, 124 and 125); most popular two routes (#21, 42) average service every ~10 minutes Subway / street trolley Market-Frankford Subway line stop on site with service every ~10 minutes; 5 trolley routes serve the site, connecting various neighborhoods in Center City, Southwest, and West Philadelphia (#10, 11, 13, 34, 36) with service ~10-12 minutes Commuter rail Immediately adjacent to Amtrak 30th Street Station Sidewalks Every proposed Schuylkill Yards site is bounded by completed, ADA-accessible sidewalks Bike lanes Bike lanes available within and surrounding the site along Walnut Street, Chestnut Street, 30th Street, and JFK Boulevard / 32nd Street. Bike racks and shower facilities are available at all existing and proposed Schuylkill Yards building sites Parking ~2,901 parking spaces within three blocks of the site Site connectivity Dense urban campus and employees can easily walk, bus, bike, or drive between buildings; drop-off and pickup private watercraft commuter access is available via a dock at Walnut Street. Heliport access could also be added Permitting / Infrastructure Utility infrastructure The site is served by dual electrical feeds from two separate PECO substations, providing total and complete redundancy. A significant component of the design phase will be to explore a variety of energy options and generation sources that are highly reliable, effective, and environmentally responsible Fiber and cellular connectivity Site includes both existing metro and long-haul network fiber connectivity. 3G and LTE coverage available across all 4 major carriers Permitting process Amazon’s initial 500,000 square foot requirement can be accommodated in existing office space. The process to fit out this initial space would take approximately 4-8 months, and would be ready in 2019. New construction for additional space beyond the initial requirement would entail a 24-month process that would include design, permitting, and construction PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 24 Section 01: Sites Neighborhood: University City I Site: uCity Square UCITY SQUARE Wrapped around a central square, Amazon’s HQ2 site at uCity Square would be part of a vibrant live-workplay neighborhood. LOCATED IN PHILADELPHIA’S INNOVATION DISTRICT, UCITY SQUARE IS AN URBAN MIXED-USE COMMUNITY CONSISTING OF OFFICE, RESIDENTIAL , RETAIL AND OUTDOOR SPACES. The project is designed to support high-growth companies who seek to recruit, retain and engage a talented workforce. Home to over 9,000 employees and 90+ companies in technology, energy, medicine, and life sciences, uCity Square is driving Philadelphia’s economy through collaboration between the private sector and top-tier research institutions such as the University of Pennsylvania and Drexel University. Building on a 54-year legacy, uCity Square has embarked on the next phase of expansion that includes 14 additional shovelready acres, the capacity for an additional 8.4 million square feet of new office space, and a new central square. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 25 Section 01: Sites Neighborhood: University City Site: uCity Square - new cousrnucrlou - REDEVELOPMENT - ausrmo BUILDING - runs (3 3m. SQUARE i 14' . . a I. PIVOY PARK ?q 7 a I 4 ?v INNOVAHON PLAZA normscuz uCity Square is accessible by public transit, offering easy access to city and neighborhood amenities. PARCEL ADDRESS BUILDABLE SQUARE NUMBER FOOTAGE 1 3700 Lancaster Avenue 728,730 2 225 North 38th Street 1,665,825 3 115 North 38th Street 344,062 4 3701 Filbert Street 389,018 5 3800- 3840 Market Street 923,640 6 3737 Market Street 314,508 7 3711 Market Street 1,025,160 8 3701 Market Street 288,000 9 3675 Market Street 462,912 10 3401 Market Street 412,920 11 3400 Market Street 319,944 12 3440 Market Street 425,052 13 3600 Market Street 401,940 14 3624 Market Street 677, 304 Total 8,379,015 PHILADELPHIA DELIVERS.COM 26 Section 01: Sites Neighborhood: University City I Site: uCity Square Connecting the University of Pennsylvania and Drexel University campuses, uCity Square offers premiere access to local talent and the bustling West Philadelphia neighborhood. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 27 Section 01: Sites Neighborhood: University City I Site: uCity Square REQUESTED INFORMATION Key site specifications Ownership Wexford Science & Technology, LLC (Wexford) with joint venture partners, Ventas (NYSE: VTR) and the University City Science Center (UCSC) Site control Site is owned by joint venture and consists of a mix of fee simple and 99-year prepaid ground leases Zoning Existing zoning is CMX-4 with an overlay to allow additional density Initial requirement (2019) 500,000 square feet of existing office space is available for Amazon to lease in 2019 Full buildout (2027) The current zoning on the site will accommodate 8.4 million square feet of development. Once adopted, the zoning changes recommended by the Planning Commission in its Southwest University City Plan would allow for a total of 11.9 million square feet of development Transit Proximity to population center 1.4 miles to City Hall Proximity to airport 15 minutes via car Proximity to major highways / arterial roads Served by 5 on/off access ramps to I-76 and I-676, all within 1.2 miles of the site with 4 major and minor arterial roadways, uCity Square is well-connected via multiple access points Bus 4 bus routes (#21 every 8-10 minutes; #30 every 30 minutes;  #40  every 15 minutes; #42 every 6-8 minutes) as well as free neighborhood shuttles that run every 5-15 minutes Subway / street trolley Market Frankford Subway Line is on site – trips every 6 minutes; trolley lines on site with service every 5-10 minutes; additional trolley lines (#34, 13, 11, 36) within one block, each with trips every 3-10 minutes Commuter rail 10-minute walk to Amtrak 30th Street Station (or one subway stop for a direct connection) Sidewalks Designed with a specific focus on the pedestrian experience, the area has a plethora of existing 14’-22’ sidewalks Bike lanes uCity Square has numerous bike lanes and routes. Bike parking is plentiful, and new buildings are being developed with indoor bike storage and showers Parking ~3,000 parking spaces on site Site connectivity Dense urban community - employees can easily walk, bus, bike, or drive Permitting / Infrastructure Utility infrastructure uCity Square is served by PECO, which can provide dual service from multiple grids. Procurement of power from renewable sources is available. Developer will consider CHP, co-gen micro-grid, and sustainable power solutions to meet tenant objectives Fiber and cellular connectivity Site includes both existing metro and long-haul network fiber connectivity. 3G and LTE coverage available across all 4 major cellular carriers Permitting process The initial 500,000 square foot requirement can be accommodated in existing office space. The process to fit out this initial space would take approximately 4-12 months, and the space would be ready in 2019. New construction for additional space beyond the initial requirement would entail a 33-month process that would include design, permitting and construction PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 28 Section 01: Sites Illa." er'rug-anu-unuuniu-n i i SITE 30th Street Station Office Towers: 280,000 square feet of existing of?ce space accessible from inside the station available for redevelopment Parcel 1: A ~32,500 square foot tract of land and associated air-rights located at the northwest corner of 30th Street and JFK Blvd, immediately west of 30th Street Station (requires construction over tracks) Arch Street Surface Parking Lot: North of the Station, ~60,000 square feet of single floor open-air surface parking lot built over rail tracks, which is accessible to vehicles from Arch Street to the south Amtrak Parking Garage: A 57,500 square foot lot with a nine-story, 1,525 car parking garage totaling 520,000 square feet; additional 400,000? 1,000,000 square feet of FAR available for expansion or redevelopment Neighborhood: University City In addition to being a major regional and Northeast Corridor transportation hub, Amtrak 30th Street Station also offers sites for additional growth in University City with up to 280,000 square feet of existing office space in the station and future development sites over the existing railroad tracks and parking garage. ZONING BUILDABLE SQUARE FOOTAGE l-2 (Of?ce use is a legal use) 280,000 square feet CMX-S, Center City/ 520,000 square feet base University City FAR Overlay Ioning, up to 910,000 square feet with bonuses CMX-S, Center City/ 960,000 square feet base University City FAR Overlay CMX-s, Center City/ University City FAR Overlay Ioning, up to 1,680,000 square feet with bonuses 912,000 square feet base zoning, up to 1,596,000 square feet with bonuses PHILADELPHIADELIVERS.COM 29 Section 01: Sites Neighborhood: Navy Yard NEIGHBORHOOD: NAVY YARD OPEN SPACE + ACCESS TO NATURE THRIVING CORPORATE COMMUNITY SMART CITY 1,200 >150 1,500 >13,000 1st 7.5 million 280,000 acre riverfront neighborhood 20 acres of green space, including a 5-acre park designed by renowned landscape architect James Corner of High-Line fame 6.3 miles of riverfront, with a 1-mile waterfront walking/biking path PHILADELPHIADELIVERS.COM [CONFIDENTIAL] companies including Urban Outfitters’ global headquarters and GlaxoSmithKline’s North American headquarters employees square feet of occupied and in-development real estate Navy Yard bus rides to Navy Yard from Center City per day Community solar project in Pennsylvania square feet for one of the largest cell therapy manufacturing facilities in the USA (WuXi AppTec) 30 Section 01: Sites Nelghborhood: Navy Yard The Navy Yard, a thrivinq riverfront neiqhborhood, is considered the most successful redevelopment of a former military facility in the country.000. to Navy Yard I I 9 ?e ammu- LEGEND IOIBroad Street Subway Line Planned Subway Extension Navy Yard Bus Bike Friendly Route Indego Bike Share Location" Bus Route Riverfront Trail Neighborhood Boundary Philaport Bike share locatlons In the Navy Yard be Installed In 2018 PHILADELPHIADELIVERSJZOM 31 Section 01: Sites Neighborhood: Navy Yard NAVY YARD Minutes from Center City Philadelphia, an international airport, and the region’s highway and mass transit network, the Navy Yard is a thriving riverfront neighborhood with capacity for another 10 million square feet of additional mixed-use development. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] THE NAVY YARD IS CONSIDERED THE MOST SUCCESSFUL REDEVELOPMENT OF A FORMER MILITARY FACILITY IN THE COUNTRY. A thriving riverfront neighborhood, the Navy Yard currently features more than 7.5 million square feet of buildings housing 13,000 employees working at 150 companies, ranging from headquarters for Urban Outfitters and GSK to technology startups, manufacturers, corporate R&D, and a graduate engineering and research satellite for Penn State University. Home to historic structures and new high-performance and LEED-certified development, the Navy Yard offers diverse, flexible building choices with varying heights, vintages, and floorplates, all powered by a nationally-recognized micro grid and oriented around miles of riverfront access and world-class open space. Future growth will include more than 10 million square feet of commercial and residential development. 32 Section 01: Sites Neighborhood: Navy Yard The Navy Yard is directly adjacent to I-95 and proximally located to Philadelphia’s sports complex and the AT&T Station/Navy Yard multimodal hub. PARCEL NUMBER BUILDABLE SQUARE FOOTAGE PARCEL NUMBER BUILDABLE SQUARE FOOTAGE PARCEL NUMBER BUILDABLE SQUARE FOOTAGE PARCEL NUMBER BUILDABLE SQUARE FOOTAGE B1 118,233 B12 161,336 B21 81,768 B32 208,864 B2 236,155 B13 177,727 B22 157,664 B33 277,496 B3 261,168 B14 430,089 B23 147,407 B34 176,973 B4 261,168 B15 239,043 B24 182,052 B35 176,973 B5 660,842 B42 60,135 B25 243,778 B36 87,647 B6 660,842 B43 60,135 B26 105,404 B37 240,690 B7 99,504 B16 140,828 B27 171,601 B38 269,132 B8 127,731 B17 361,750 B28 224,500 B39 308,231 B9 899,560 B18 305,012 B29 470,414 B40 463,285 B10 143,728 B19 227,433 B30 473,528 B41 281,088 B11 161,336 B20 247,472 B31 308,231 Total 11,097,953 PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 33 Section 01: Sites ii 5? . Hm . ?5 Neighborhood: Navy Yard BANANA STAND PHILADELPHIADELIVERS.COM 34 Section 01: Sites Neighborhood: Navy Yard REQUESTED INFORMATION Key site specifications Ownership Philadelphia Authority for Industrial Development (PAID), a public entity managed by the Philadelphia Industrial Development Corporation (PIDC) Site control The property is owned by PAID and under a long-term, exclusive development agreement with Liberty Property Trust (NYSE: LPT) and Synterra Partners Zoning Existing zoning for the office campus is CMX-3 Initial requirement (2019) 1.3 million square feet of office space is available within two vacant historic buildings. The 500,000 square feet requirement could fit in either of these buildings and will be available in 2019 Full buildout (2027) The current zoning on the site will accommodate more than 10 million square feet of additional development. Currently, the Navy Yard has 7.5 million square feet of occupied space Transit Proximity to population center 3.5 miles to City Hall Proximity to airport 7 minutes via car Proximity to major highways / arterial roads Immediately adjacent to I-95 and I-76 and is directly served by an onramp and an offramp to the Navy Yard, from both highways Bus Private employer-funded “Express” bus connects the Navy Yard to Center City Philadelphia. At rush hour, it is a 10-minute ride and the bus currently departs every 10 minutes. By 2019, departures will be every five minutes Subway / street trolley The SEPTA Broad Street subway line is 0.5 miles from the Navy Yard entrance. The Navy Yard employer-funded “loop” bus connects to the subway and Center City Philadelphia (in planning stages of extension of Broad Street line) Commuter rail 12 minutes from Amtrak 30th Street Station. Private mass transit bus system that runs every 10 minutes to regional rail lines located in Center City Sidewalks Every block of the Navy Yard either currently has sidewalks or will have sidewalks when developed. The Navy Yard also has a riverfront trail and a running track Bike lanes The Navy Yard has an extensive bike network and bike parking facilities. No street is ever built or repaved without giving consideration to all modes that will use it, including bicycles. All buildings have showers, encouraging this commuting method Parking The Navy Yard currently has ample free parking for each development site based on the specific requirements of each tenant. Additionally, there are 20,000 parking spaces at the Multimodal transportation hub in the stadium district which connects to the Navy Yard via mass transit Site connectivity The Navy Yard is contiguous and employees can comfortably walk, bike, or take a circulator bus between buildings Permitting / Infrastructure Utility infrastructure PAID owns and operates its own unregulated electric grid at the Navy Yard. This grid has two distinct substations that are fed in total by seven lines from two distinct external substations operated by PECO-An Exelon Company (third substation under development). The Navy Yard has also commenced construction of a micro-grid that will feature onsite generation, solar, and batteries to provide additional resiliency Fiber and cellular connectivity The site includes existing metro network fiber connectivity. 3G and LTE coverage is available across all 4 major carriers. Infrastructure is in place to support several major data centers and to significantly expand capacity Permitting process The time to develop at the Navy Yard is a streamlined process as a result of several critical factors (i.e., by-right zoning, exclusive development agreement between land owner and developers, shorter-time to design and permit given mid-rise zoning); The initial 500,000 square feet requirement can be accommodated in existing historic buildings. The process to fit out this initial space would take approximately 18 months, and would be ready in 2019. New construction for additional space beyond the initial requirement entails an 18-24 month process that would include design, permitting and construction PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 35 02 Business Environment + Incentives “As a technology company, we were not bound to any particular geography, and in fact our largest customer base was in NY, and there were advocates of us choosing that locale. We chose Philadelphia because it was the best choice for our workforce. The company not only received lots of support and incentive from the city and local businesses to move downtown, but when we considered the growing technology landscape, the concentration of healthcare excellence (our industry), the cost of living, the talent pool, the easy commute, and the very large millennial population and all the energy that brings, there wasn’t a better choice to be found.” — LeRoy Jones, President & CEO, GSI Health PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 36 Section 02: Business Environment FIGURE 2 .1: When factoring in the cost of labor, taxes, and facilities, Philadelphia is the most affordable city to do business in the Northeast Corridor. COST OF DOING BUSINESS Indexed to Philadelphia = 100 Atlanta 92 Dallas 94 Pittsburgh 96 Detroit 97 Chicago 99 Philadelphia 100 Denver 100 Austin 101 Seattle 106 Baltimore 109 Los Angeles 109 D.C. 114 Boston 126 San Francisco 134 New York 159 (Note: Dark gray bar represent cities on the Northeast Corridor) SOURCE: Moody’s Analytics “I was so energized by Philadelphia’s unique potential to grow my creative technology agency that I moved my business here. And it has paid off even bigger than I hoped. The City has been an incredible partner, with meaningful assistance and attention, all the way to the Mayor.” — Tim Reeves, Principal, Allen & Gerritsen PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 37 Section 02: Business Environment FIGURE 2 .2: Philadelphia’s commercial real estate market is significantly more affordable than other major cities. AVERAGE COST FOR CLASS A CENTRAL BUSINESS DISTRICT COMMERCIAL PROPERTY COMMERCIAL PROPERTY VACANCY (CENTRAL BUSINESS DISTRICT AND SUBURBAN MARKETS) Cost measured in $/square foot % of total available property currently vacant, 2017 NYC $79.76 Detroit 19.5% San Francisco $75.82 Dallas 19.4% DC $68.24 Atlanta 17.5% Boston $60.85 Pittsburgh 16.6% Austin $56.92 Chicago 15.0% Chicago $46.54 LA 14.9% Seattle $45.62 Denver 14.3% LA $43.12 Baltimore 13.6% Denver $39.98 Boston 13.3% Dallas $31.82 Philadelphia 12.6% Philadelphia $31.29 DC 11.8% Atlanta $31.13 Austin 11.6% Pittsburgh $29.61 NYC 10.6% Baltimore $27.43 San Francisco Detroit $22.70 Seattle 8.5% SOURCE: Jones Lang LaSalle Real Estate Research SOURCE: Jones Lang LaSalle Real Estate Research 8.6% “After moving here from SF to start SocialLadder, I was blown away by everything Philadelphia has to offer a startup. Philadelphia is the 6th largest city in the US and 20th for cost of living which has made a BIG difference for us as a startup. We have become a globally recognized company & attracted world class talent to join our team, but we haven’t had to fundraise just to pay the rent.” — Alana Bly, Co-Founder, SocialLadder PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 38 Section 02: Business Environment FIGURE 2 .3: Given Philadelphia’s affordable cost of living, wages in the relevant job categories for Amazon are lower than in peer cities. AVERAGE WAGE OVERALL , AND BY RELEVANT OCCUPATION, BY METRO REGION Average 3-year annual salary (average 3-year growth rate), 2014-2016 Average wage, ‘000s Average wage for relevant jobs, ‘000s Management Jobs, ‘000s Accounting Jobs, ‘000s Software Jobs, ‘000s Legal Jobs, ‘000s San Francisco 67 (2.1%) 122 (2.3%) 146 (1.8%) 94 (1.6%) 109 (2.4%) 138 (3.3%) D.C. 66 (1.6%) 117 (1.6%) 139 (1.8%) 91 (1.0%) 102 (1.5%) 137 (2.1%) Boston 62 (1.9%) 109 (1.2%) 132 (1.5%) 85 (1.0%) 97 (0.8%) 123 (1.4%) New York 60 (1.5%) 119 (1.6%) 154 (2.0%) 92 (1.8%) 98 (1.3%) 134 (1.2%) Seattle 59 (2.2%) 104 (1.7%) 127 (2.2%) 80 (0.8%) 107 (1.7%) 104 (2.0%) Denver 54 (1.8%) 103 (2.0%) 132 (2.5%) 78 (1.0%) 93 (2.3%) 107 (2.0%) Los Angeles 54 (1.6%) 106 (0.8%) 126 (1.1%) 80 (1.1%) 91 (1.1%) 127 (0.0%) Baltimore 54 (1.5%) 94 (0.2%) 123 (0.8%) 76 (0.0%) 96 (0.2%) 83 (-0.3%) Philadelphia 9th 53 (1.1%) 6th 102 (1.0%) 4th 135 (0.9%) 8th 78 (1.0%) 10th 87 (1.9%) 6th 109 (0.2%) Chicago 52 (1.9%) 94 (1.8%) 114 (1.2%) 75 (0.5%) 83 (2.5%) 105 (3.0%) Detroit 50 (1.4%) 90 (0.7%) 117 (2.1%) 72 (2.0%) 79 (1.4%) 92 (-2.6%) Atlanta 50 (1.3%) 96 (1.4%) 120 (1.6%) 74 (0.0%) 85 (2.1%) 107 (1.9%) Austin 50 (1.8%) 94 (1.9%) 118 (2.3%) 73 (2.2%) 84 (2.3%) 100 (0.8%) Dallas 49 (1.8%) 99 (2.8%) 126 (2.4%) 77 (1.6%) 87 (2.6%) 107 (4.4%) Pittsburgh 46 (1.4%) 90 (1.7%) 118 (1.3%) 68 (1.8%) 74 (2.6%) 102 (1.3%) SOURCE: Bureau of Labor Statistics Note: Philadelphia rank by column category Philadelphia has 16% lower wages across East Coast peer cities. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] Philadelphia has 11% lower wages than Seattle. 39 Section 02: Business Environment FIGURE 2.4: Philadelphia has a truly diversified set of industries which enriches the talent ecosystem and stabilizes the local economy. Mining, utilities, and construction 3.0% I Manufacturing 3.7% I Retail/wholesale 14.0% Other 7.7% Finance 4.1% PHILADELPHIA REGION I . INDUSTRY BREAKDOWN ProfeSSIonal and technology serVIces 5.6 /o 9? ?ft?tal ??9le i" th? I Administrative and waste services 3.9% Education 9.5% - Healthcare 20.9% I Arts and entertainment 2.0% I Accomodation and food service 7.9% I Public sector 17.6% SOURCE: "45 Economic Forecast "We grew organically through talent acquisition of ready-made professionals who brought to us vast experience working with other multinational organizations In the region. The establishment of successful businesses in the region makes cross-pollination of talents possible, a clear win-win for all players in this ecosystem." Greg Bentley, CEO, Bentley Systems PHILADELPHIADELIVERS.COM 4o Section 02: Business Environment FIGURE 2 .5: There are 40+ Fortune 1000 and large international or private companies headquartered in the region. COMPANY NAME 2016 REVENUE (MILLION) CITY/STATE Ace Insurance $31,469 Philadelphia, PA Airgas $5,313 Radnor, PA American Water Works Company $3,302 Voorhees, NJ Amerisourcebergen Corporation $146,849 Chesterbrook, PA Ametek $3,840 Berwyn, PA Aramark $14,415 Philadelphia, PA Arkema $8,902 King Of Prussia, PA Burlington Stores $5,590 Burlington, NJ Campbell Soup Company $7,890 Camden, NJ Carpenter Technology Corporation $1,813 Wyomissing, PA Comcast Corporation $80,403 Philadelphia, PA Crown Holdings $8,284 Philadelphia, PA E. I. Du Pont De Nemours and Company $24,594 Wilmington, DE Endo International $4,010 Malvern, PA FMC Corporation $3,282 Philadelphia, PA Genesis Healthcare $5,732 Kennett Square, PA GlaxoSmithKline $36,813 Philadelphia, PA Grupo Bimbo $13,363 Horsham, PA IKEA $41,610 Conshohocken, PA Lincoln National Corporation $13,300 Radnor, PA Navient Corporation $4,965 Wilmington, DE QVC $8,682 West Chester, PA Ricoh $18,057 Malvern, PA SAP SE $26,065 Newtown Square, PA Saint-Gobain $46,186 Malvern, PA Siemens AG $94,095 Malvern, PA Subaru Corporation $29,601 Cherry Hill, NJ TD Bank $27,452 Wilmington, DE TE Connectivity $12,238 Berwyn, PA PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 41 Section 02: Business Environment Teleflex Inc $1,868 Wayne, PA Teva Pharmaceuticals Industries $21,903 North Wales, PA The Chemours Company $5,400 Wilmington, DE The Penn Mutual Life Insurance $1,848 Horsham, PA Toll Brothers $5,169 Horsham, PA Triumph Group $3,532 Berwyn, PA UGI Corporation $5,685 King Of Prussia, PA UNISYS Corporation $2,820 Blue Bell, PA Universal Health Services $9,766 King Of Prussia, PA Urban Outfitters $3,545 Philadelphia, PA Vanguard $6,782 Malvern, PA Vishay Intertechnology $2,323 Malvern, PA VWR Corporation $4,514 Radnor, PA SOURCE: Hoovers “Our talent and recruitment teams have enjoyed being situated in an energetic community of job seekers, both from the region’s world-class colleges and universities as well as in a competitive business environment which is home to numerous global and national corporations. Philadelphia and its surrounding communities are enticing to professionals and their families - benefiting from an energetic art and culture scene and world-class institutions, museums, restaurants and more.” — Steven H. Collis, Chairman, President and Chief Executive Officer, AmerisourceBergen PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 42 Sectlon 02: Business Environment FIGURE 2.6: Major technology firms are headquartered in Philadelphia and have drawn early-tenure and executive talent into the region. Philadelphia is an innovation hub in its own right, with 65 incubators and some of the most innovative tech firms across software, retail, e-commerce, and healthcare.uc ercer . 0: 0 "o .. montgomery .. {':llchester . a burlin ton . camden . . . mu r3 0 MILES LEGEND Technology company gloucester NEW JERSEY "Phlladelphlans are not great at simply copying what others have done, or accepting someone else's for success. An un-scratchable Itch of Independence drives our spirit of Innovation; In our startups, our universities, our private companies and our public Institutions. Yet In curious complement to our Independence, the sense of community and partnership are no less than an equal component of our spirit." - RoseAnn Rosenthal, President and CEO, Ben Franklin Technology Partners "So many Innovative tech and ecommerce companles trace their roots back to Philly from the "dot com" ploneers like (which Amazon acquired) and Half. corn to a bIg name like Urban Out?tters to young companies like Warby Parker and Kynetlc." Josh Kopelman, Partner, First Round Capital "Philadelphia has provided Stitch with an ample supply of world-class team members at a competItIve regional cost. Philly boasts a large network of renowned universities, a low regional cost of living, and a massive metropolitan population size. These have given us access to a seemingly limitless talent network at an affordable price, something our peers In other cItIes seem to perpetually struggle to find." Robert Moore, Chalnnan, Stitch Data PHILADELPHIADELIVERS.COM 43 Sectlon 02: Business Environment FIGURE 2.7: Philadelphia has stronq cellular coveraqe across all major carriers. tut"; We? Q?f ff? iUniversIIy City.: 3" 1.. - 4,6; A ?11 MOBILE in?University City - my? 13:135Ag; ?fth City a LEGEND Source: Rootmetn?cs, Best Technology Found, 2017 . Proposed Amazon HQZ neighborhoods - - LTE PHI LADELPHIADELIVERS.COM Section 02: Business Environment FIGURE 2 .8: FIGURE 2 .9: Philadelphia ranks third in cellular network speed among the top 10 largest U.S. cities. Philadelphia ranks third in cellular data performance among the top 10 largest U.S. cities. Atlanta 93.6 Chicago 97.3 Chicago 93.5 Atlanta 97.3 Philadelphia 92.4 Philadelphia 96.6 Dallas 91.5 Dallas 96.5 D.C. 90.8 Houston 96.1 Houston 90.7 D.C. 96.0 Los Angeles 90.6 Los Angeles Miami 90.2 Miami 95.5 Boston 89.6 New York New York 89.5 Boston 95.3 95.9 95.3 SOURCE: RootMetrics SOURCE: RootMetrics Ranks estimated speeds for daily smartphone consumer use activities, such as checking email, browsing webpages, using apps, making calls, and sending texts Ranks the reliability and speed during uploads and downloads, such as downloading email, downloading files, loading typical webpages and apps FIGURE 2 .10: FIGURE 2 .11: Philadelphia leads the top 10 largest U.S. cities in fiber accessibility. Philadelphia has the fastest download speeds among the 10 largest U.S. cities. Philadelphia 83.5 Philadelphia 98.2 D.C. 74.3 Boston 98.0 New York Washington 96.0 Boston 49.0 Chicago 95.8 Dallas 25.6 Atlanta 94.6 Miami 25.1 New York 94.3 Los Angeles Miami 91.2 Atlanta 16.5 Houston 81.0 Chicago 14.5 Dallas 47.6 Houston 4.7 Los Angeles 37.1 SOURCE: National Broadband Map, Federal Communications Commission SOURCE: National Broadband Map, Federal Communications Commission Percentages reflect population with access to fiber technology Percentages reflect population with access to download speeds over 100 mbps PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 71.4 20.6 45 03 Talent “When you bring the smartest people together with the best possible resources, you get new ideas. You get discovery, you get day one innovation. That’s the kind of approach that has made Amazon great and that’s what I feel across Philadelphia. This city forged the nation’s future. If you want to catch a glimpse of how things will look in the years to come, this is the place to be.” — Dr. Amy Gutmann, President, University of Pennsylvania PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 62 Section 03: Talent FIGURE 3.1: Over 40 million people live within 150 miles of Philadelphia across a range of skillsets relevant to Amazon's growing needs. 8.5M people working in management, business, science and the arts 6M bachelor's degree holders 4.5M graduate degree holders 8.5M foreign-born residents ?0 12.5 25 50 LEGEND No population 100 or less people - 101 to 1,000 people - 1,001 to 10,000 people - 10,001 to 25,000 people - 25,001 to 100,000 people "There is no more exciting city In the country right now. This is a long time in the making and those of us who live here have known it for some time. but now the rest of the country is beginning to take notice. Being in Philly at the moment feels like somehow hitching yourself to a rocket ship that has already taken off." Luke Butler. Director of Strategy and Operations, Curalate 63 Section 03: Talent FIGURE 3.2: Philadelphia leads the nation in the number of top 100 universities within 150 miles. NAME RANK Princeton University  #1 in National Universities Columbia University  #5 in National Universities (tie) University of Pennsylvania  #8 in National Universities Johns Hopkins University  #11 in National Universities (tie) Georgetown University  #20 in National Universities New York University  #30 in National Universities (tie) Villanova University  #46 in National Universities (tie) Lehigh University  #46 in National Universities (tie) Pennsylvania State University*  #52 in National Universities (tie) George Washington University  #56 in National Universities (tie) Fordham University  #61 in National Universities (tie) University of Maryland—College Park  #61 in National Universities (tie) Rutgers University—New Brunswick  #69 in National Universities (tie) Stevens Institute of Technology  #69 in National Universities (tie) American University  #69 in National Universities (tie) University of Delaware  #81 in National Universities (tie) Drexel University  #94 in National Universities (tie) Yeshiva University  #94 in National Universities (tie) Stony Brook University—SUNY  #97 in National Universities (tie) SOURCE: U.S. News & World Report (2017) *Abington, Brandywine, Great Valley (including Navy Yard) campuses “It’s hard to imagine we could have built FS Investments into a $20 billion alternative asset manager with more than 325 employees in less than a decade were it not for our being headquartered in Philadelphia. Thanks to Philadelphia’s world-class universities, we tap into a strong talent pool of highly educated recent graduates. We’ve built a robust co-op program with Drexel University and an impactful financial literacy program with the University of Pennsylvania’s Wharton School of Business, demonstrating another facet of our universities’ positive impact on our communities.” — Michael Forman, CEO of FS Investments PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 64 Section 03: Talent FIGURE 3.3: Philadelphia’s metro area is the seventh largest in the U.S. with over 3 million workers in the region. TOP 20 US METRO AREAS, BY POPULATION TOP 20 US METRO AREAS, BY WORKFORCE 2016 (million) 2016 (million) New York 20.15 New York 10.10 Los Angeles 13.31 Los Angeles 6.70 Chicago 9.51 Chicago 5.00 Dallas 7.23 Dallas 3.70 Houston 6.77 D.C. 3.40 D.C. 6.13 Houston 3.30 Philadelphia 6.07 Philadelphia 3.10 Miami 6.06 Miami 3.10 Atlanta 5.78 Atlanta 3.00 Boston 4.79 Boston 2.70 San Francisco San Francisco 4.68 2.60 Phoenix 4.66 Phoenix 2.20 San Bernardino 4.53 Detroit 2.10 Detroit 4.30 Seattle 2.00 Seattle 3.80 San Bernardino Minneapolis 3.55 Minneapolis 2.00 San Diego San Diego 3.32 1.98 1.58 Tampa 3.03 Denver 1.60 Denver 2.85 St. Louis St. Louis Tampa 1.48 SOURCE: U.S. Census Bureau, IHS Economic Forecast, Bureau of Labor Statistics, 2016 2.81 1.50 SOURCE: U.S. Census Bureau, IHS Economic Forecast, Bureau of Labor Statistics, 2016 “Through the years, we credit much of our success to what the City of Brotherly love offers. The region’s infrastructure and transit networks facilitate easy connections with customers, and we’re strategically nestled between New York and D.C. Our area’s stellar higher education network is churning out bright minds in STEM fields. And just as importantly, these graduates are choosing to stay in Philadelphia to work, buy homes, raise families and visit our world-class restaurants, historical sites and cultural destinations.” — Chris Gheysens, President & CEO, Wawa, Inc. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 65 Section 03: Talent FIGURE 3.4: The city of Philadelphia is the sixth largest in the U.S., with close to 1 million workers. TOP 20 US CITIES, BY POPULATION TOP 20 US CITIES, BY WORKFORCE 2016 (million) 2016 (million) New York 8.54 New York 5.43 Los Angeles 3.97 Los Angeles 2.63 Chicago 2.70 Chicago 1.79 Houston 2.30 Houston 1.57 Phoenix 1.62 Phoenix 1.06 Philadelphia 1.57 San Antonio San Antonio 1.49 Philadelphia 0.94 San Diego 1.41 San Diego 0.95 0.91 Dallas 1.32 Dallas 0.89 San Jose Austin 0.69 1.03 Austin 0.95 San Jose Jacksonville 0.88 Charlotte 0.61 San Francisco San Francisco 0.87 0.69 0.60 Columbus 0.86 Columbus 0.60 Indianapolis 0.86 Indianapolis 0.58 Fort Worth Fort Worth 0.85 0.57 Charlotte 0.84 Jacksonville 0.57 Seattle 0.70 Seattle 0.51 Denver 0.69 Denver 0.49 El Paso El Paso SOURCE: U.S. Census Bureau, IHS Economic Forecast, 2016 PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 0.68 0.40 SOURCE: U.S. Census Bureau, IHS Economic Forecast, 2016 66 Section 03: Talent FIGURE 3.5: The Philadelphia metro is the seventh largest job market in the U.S. AVERAGE NUMBER OF JOBS OVERALL , BY METRO REGION Average 3-year # of jobs, millions (average 3-year growth rate, 2014-2016) New York 9.2 (2.1%) Los Angeles 5.8 (1.4%) Chicago 4.6 (1.1%) Dallas 3.4 (2.5%) D.C. 3.1 (1.4%) Houston 2.9 (1.1%) Philadelphia 2.8 (0.9%) Boston 2.7 (1.1%) Atlanta 2.6 (2.3%) Miami 2.5 (2.3%) SOURCE: Bureau of Labor Statistics, 2016 “Philadelphia is built on bootstrap principles. This has never been a metropolis where ‘It’s not my job’ has been an acceptable response. The idea of all of us, from administrative support to CEO, all rowing in the same direction, toward the same goals, is so deeply ingrained in the business culture here it’s almost part of the ether. As the leader of the largest woman-owned executive search firm in the world whose mission is to find the best and brightest talent, I have seen the talent pool here expand and deepen to levels I have always imagined it would.” — Judith von Seldeneck, Chairman, DiversifiedSearch PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 67 Section 03: Talent FIGURE 3.6: Philadelphia has a growing pool of talent across all relevant skills and occupations. AVERAGE NUMBER OF RELEVANT JOBS OVERALL , AND BY RELEVANT OCCUPATION, BY METRO REGION Average 3-year # of jobs 2014-2016, (average 3-year growth rate) # Relevant Jobs, ‘000s Management Jobs, ‘000 Accounting Jobs, ‘000s Software Jobs, ‘000s Legal Jobs, ‘000s 1,427 (2.7%) 494 (2.2%) 549 (2.9%) 277 (3.5%) 107 (1.8%) 864 (2.0%) 328 (0.6%) 335 (2.7%) 151 (4.0%) 51 (0.6%) 812 (1.1%) 227 (1.9%) 296 (1.1%) 221 (0.8%) 68 (-0.2%) Chicago 745 (3.4%) 310 (5.3%) 251 (2.7%) 144 (2.1%) 39 (-2.0%) Boston 532 (2.1%) 209 (4.1%) 170 (-0.5%) 129 (1.8%) 24 (5.8%) Dallas 489 (0.6%) 141 (-0.6%) 185 (0.9%) 138 (1.5%) 25 (0.7%) San Francisco 473 (3.7%) 158 (2.1%) 166 (4.1%) 126 (5.3%) 23 (3.2%) Atlanta 449 (3.4%) 158 (3.8%) 163 (2.0%) 106 (5.4%) 22 (1.0%) New York Los Angeles D.C. Philadelphia 9th 413 (1.4%) 9th 122 (1.6%) 7th 169 (0.5%) 10th 92 (2.6%) 5th 31 (1.8%) Seattle 363 (3.7%) 97 (4.7%) 131 (4.1%) 121 (2.7%) 14 (1.1%) Detroit 274 (0.8%) 96 (-1.0%) 99 (1.9%) 62 (1.8%) 16 (1.0%) Denver 254 (1.9%) 65 (1.9%) 110 (2.0%) 64 (2.8%) 15 (-1.8%) Baltimore 229 (1.8%) 71 (2.8%) 84 (-0.1%) 59 (3.1%) 14 (2.3%) Austin 166 (2.5%) 42 (-1.7%) 57 (3.4%) 57 (5.0%) 10 (2.8%) Pittsburgh 146 (1.4%) 45 (1.6%) 58 (0.5%) 34 (2.6%) 9 (1.8%) SOURCE: Bureau of Labor Statistics, 2016 Note: Philadelphia rank by column category, figures may not sum due to rounding ”The ability to tap into some of the best minds in the world, young, innovative, creative minds, has been tremendously important to us. Not just to us, but to our employees, who have families who wants to see a future for their children in Philadelphia.” — Osagie Imasogie, Chairman, Iroko Pharmaceuticals PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 68 Section 03: Talent FIGURE 3.7: Philadelphia is one the top sources for university talent in the country producing over 90,000 graduates annually – placing it in the top 10 among other large U.S. cities. UNIVERSITY AND DEGREE DENSITY BY METRO REGION Universities # (national rank) Avg 3 year annual graduates, total # (national rank) STEM graduates, total # 2015-2016 academic year (national rank) New York 252 (1) 244,517 (1) 39,924 (1) Los Angeles 193 (2) 181,186 (2) 32,481 (2) Chicago 133 (3) 121,843 (3) 22,086 (3) 100 (4) 92,050 (6) 15,800 (6) Boston 85 (6) 95,123 (5) 19,892 (4) Dallas 76 (7) 66,225 (9) 10,848 (9) San Francisco 72 (8) 49,496 (12) 9,975 (11) D.C. 67 (9) 91,089 (7) 17,948 (5) Atlanta 63 (13) 42,815 (14) 10,831 (10) Pittsburgh 53 (17) 33,848 (20) 9,155 (12) Denver 50 (18) 30,419 (21) 5,163 (20) Seattle 49 (19) 41,212 (15) 8,778 (13) Detroit 35 (26) 29,303 (23) 4,709 (36) Baltimore 34 (27) 36,602 (19) 8,275 (18) Austin 27 (36) 28,809 (25) 6,500 (21) Philadelphia SOURCE: NCES IPEDS 2015-16 preliminary release “Millennials represent the city’s future – and take great pride in honoring its past. They are die-hard fans of local sports, fine dining, bike riding, marathon running, outdoor festivals, museums and other cultural highlights that make Philadelphia special. And most importantly, they are loyal to our city and believe in the power of hard work, commitment, and giving back.” — Susan Jacobson, President, Jacobson Strategic Communications PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 69 Sectlon 03: Talent FIGURE 3.8: The Philadelphia region has approximately 100 universities and has some of the nation?s top engineering, computer science and business programs. . bucks I montgomery . . 0 0 Chester 0 delaware . . UniverSIt Of Penns Ivanla . Universit Of Delaware 0 0 new castle i LEGEND 0 3.25 6.5 13 0 II-ZMILES 0 University or College PHILADELPHIADELIVERS.COM 70 Section 03: Talent FIGURE 3.9: Total degrees awarded at degree-granting institutions in the Philadelphia region for the 2014, 2015, and 2016 academic years. Total 2014-2016 Total Relevant* Degrees Awarded 2014-2016 Grand Total Annual 3-Year Average of Relevant* Degrees Bachelor and Associates Degrees Advanced Degrees 76,134 25,378 8,362 University of Delaware 6,942 2,314 965 Temple University 4,726 1,575 311 University of Pennsylvania 6,842 2,281 1,376 Drexel University 5,987 1,996 692 Villanova University 3,922 1,307 476 Talmudical Yeshiva of Philadelphia 2,101 700 144 Rowan University 1,899 633 108 Wilmington University 3,088 1,029 583 West Chester University of Pennsylvania 1,477 492 37 Thomas Jefferson University 1,739 580 137 DeVry University-Pennsylvania 2,837 946 389 Thomas Edison State University 1,285 428 62 Saint Joseph’s University 2,348 783 288 Rowan College at Gloucester County 978 326 26 Widener University-Main Campus 1,485 495 205 Princeton University 1,092 364 139 The College of New Jersey 942 314 3 Community College of Philadelphia 696 232 — Rutgers University-Camden 908 303 75 Valley Forge Military College 1,677 559 246 La Salle University 1,100 367 150 Theological Seminary of the Reformed Episcopal Church 647 216 28 Camden County College 337 112 — Delaware County Community College 837 279 — Rider University 1,111 370 113 Montgomery County Community College 536 179 — Saint Charles Borromeo Seminary-Overbrook 1,191 397 157 Rowan College at Burlington County 85 28 — The Art Institute of Philadelphia 545 182 — Princeton Theological Seminary 525 175 92 Philadelphia College of Osteopathic Medicine 372 124 54 Eastern University 773 258 132 Arcadia University 286 95 39 Philadelphia University 744 248 96 Cheyney University of Pennsylvania 392 131 — Cairn University-Langhorne 185 62 10 * Degrees in computer science, engineering, and business PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 71 Section 03: Talent Total 2014-2016 Total Relevant* Degrees Awarded 2014-2016 Annual 3-Year Average of Relevant* Degrees Bachelor and Associates Degrees Advanced Degrees Gwynedd Mercy University 442 147 38 Immaculata University 339 113 7 Mercer County Community College 458 153 — Bryn Mawr College 216 72 — University of the Sciences 17 6 2 Bucks County Community College 539 180 — Kaplan Career Institute-Philadelphia 467 156 72 Widener University 352 117 27 Pennsylvania State University-Penn State Abington 478 159 — Holy Family University 282 94 36 Rosemont College 365 122 37 Goldey-Beacom College 1,068 356 270 Neumann University 228 76 21 Reconstructionist Rabbinical College 509 170 43 Delaware College of Art and Design 300 100 — Metropolitan Career Center Computer Technology Institute 294 98 — Haverford College 202 67 31 Chestnut Hill College 162 54 — Cabrini University 199 66 15 Bucks County School of Beauty Culture Inc 57 19 — Delaware Valley University 577 192 77 Strayer University-Pennsylvania 690 230 76 Antonelli Institute 115 38 25 Widener University-Delaware Campus 271 90 18 Harcum College 34 11 — Gratz College 245 82 12 Manor College 246 82 — Hussian School of Art 146 49 2 Pennsylvania State University-Penn State Great Valley 340 113 113 Swarthmore College 125 42 — University of Phoenix-Pennsylvania 122 41 6 Ursinus College 26 9 — Burlington County College 103 34 10 The Restaurant School at Walnut Hill College 62 21 — Lincoln University 159 53 15 Pennsylvania Institute of Technology 221 74 — University of Valley Forge 26 9 1 Salem Community College 53 18 — Peirce College 401 134 9 Strayer University-New Jersey 575 192 82 National Massage Therapy Institute 112 37 15 Pennsylvania State University-Penn State Brandywine 311 104 57 Bryn Athyn College of the New Church 5 2 — Westminster Theological Seminary 2 1 — * Degrees in computer science, engineering, and business PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 72 Section 03: Talent Total 2014-2016 Total Relevant* Degrees Awarded 2014-2016 Annual 3-Year Average of Relevant* Degrees Bachelor and Associates Degrees Advanced Degrees Delaware Technical Community College-Stanton/Wilmington 129 43 22 Cabrini College 26 9 3 Orleans Technical Institute 235 78 — Lutheran Theological Seminary at Philadelphia 27 9 — Pennsylvania Academy of the Fine Arts 38 13 — ITT Technical Institute-Philadelphia 202 67 — Strayer University-Delaware 191 64 30 American College of Financial Services 112 37 37 Brightwood Career Institute-Philadelphia Mills 45 15 — ITT Technical Institute-Marlton 162 54 — Lansdale School of Business 80 27 — ITT Technical Institute-Levittown 115 38 — The Lincoln University 27 9 — Kaplan Career Institute-Broomall 24 8 — ITT Technical Institute-Plymouth Meeting 52 17 — All-State Career School-Allied Health Campus 50 17 17 Sanford-Brown Institute-Trevose 31 10 3 The Workforce Institute’s City College 10 3 — * Degrees in computer science, engineering, and business SOURCE: NCES IPEDS 2015-2016 Preliminary release Real estate website Trulia ranked Philadelphia as the #1 best place to be a millennial: “Millennials who were 28 to 32 during 2015 and living in Philadelphia were 43.0% more likely to have a college degree than their older peers. This may help explain why they earned 78.8 cents for every dollar earned by those 33 to 55, which is a higher amount than in any of the other largest metros”. (Trulia, April 2017) Millennial-run apartment search site Abodo set out to determine what their generational-peers look for in a city to call home by surveying 2,000 people born between 1982 and 1998…It turns out, the top three qualities Millennials want in a city are economic in nature: a thriving job market, affordable rent and affordable home prices. The company judged Philadelphia as the best city for Millennials. (Forbes, 2016) PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 73 Section 03: Talent FIGURE 3.10: Philadelphia is one of the top cities in the U.S. for technology talent. NET NEW TECH JOBS AS % OF ALL NET NEW JOBS ACROSS TOP METRO AREAS DAYS REQUIRED TO FILL ENGINEERING JOBS AMONG COMPARABLE CITIES % (2002-2015) # days to fill engineering jobs, 2017 45 Philadelphia 25.3 Philadelphia 25 Detroit 26.2 Chicago 22 Pittsburgh 28.0 D.C. 21 Atlanta 29.4 Los Angeles Los Angeles 30.6 Boston 13 New York 30.7 New York 12 Baltimore 32.2 Atlanta 10 D.C. 32.3 Dallas 9 Austin 32.6 Houston 5 Denver 34.7 Bay Area 19 Chicago 35.4 The Philadelphia region has experienced a 34% growth in tech jobs since 2002. SOURCE: Economy League, Driving Tech Talent Growth in Philadelphia, 2017 Dallas 35.6 Boston 36.6 San Francisco 41.9 SOURCE: Textio, 2017 “We built a company that is rooted in artificial intelligence, neural networks, deep learning, machine learning, and we’re able to draw talent of that caliber right here in Philadelphia. Most importantly, we’re able to retain them. We still have software engineers on our team that have been here for more than four years. In the Silicon Valley, in the tech ecosystem, that’s a near impossibility.” — Apu Gupta, CEO and Co-Founder, Curalate PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 74 Section 03: Talent FIGURE Philadelphia has best in-class university proqrams and partnerships in place to nurture a rich pipeline of relevant talent. UNIVERSITY PARTNERSHIPS Penn Center for Innovation (Pennovation) Drexel Co-op Program CCP Corporate College PennApps Drexel Temple Ben Franklin Technology Partners Mawr Women's Sister Hackathon Wharton Customer Analytics Initiative Lehigh Rossin College of Engineering and TE Connectivity Drexel's Advanced Functional Fabrics of America Drexel University City Science Center Jefferson Nexus Innovation Partnerships UPenn Sanol?i Partnership Princeton Exxon Mobil DESCRIPTION Pennovation is an innovation hub, business incubator, and laboratory at UPenn that stimulates entrepreneurial activity and promotes the commercialization of research discoveries. Employers partner with Pennovation startups to commercialize cutting edge talent, including an innovative partnership with Comcast for its machineQ loT technology. Over 5,000 students annually work full-time at companies as part of their undergraduate credits. Students are placed in companies across 32 states and 51 countries including 54 students placed at Amazon. Students can earn positions with major corporations such as Amazon, Google, NBC Universal, Lockheed Martin, JP Morgan, and Johnson alohnson. The Community College of Philadelphia (CCP) was recently named one of the 12 most innovative community colleges nationwide. In partnership with large employers, such as UPS, CCP offers tailored college-level courses to upskill existing employees. CCP partners with employers to ensure their employees are dynamic to the company's needs. PennApps is the world?s ?rst and largest college hackathon. Twice a year PennApps hosts over 2,000 college students hailing from over 10 countries. Montgomery County Community College and Drexel University (Drexel) have entered into a bold and innovative partnership that will build a pipeline of quali?ed graduates for high demand jobs in the region, especially in the areas of STEM (science, technology, engineering, and mathematics) and health sciences. Temple Ventures features three main components: (I) a joint Temple/Ben Franklin seed fund for prototype and startup funding; (2) new-business-Iaunch resources to support the formation of new Temple-created technology ventures; and (3) incubation services including workspace, professional resources, management, and commercialization guidance. Mawr hosts an annual hackathon with students from six all-female colleges. Wharton partners with corporations on targeted research projects. The initiative has launched 23 research opportunities, across 19 industries and 20 million individual customer transactions. TE Connectivity and Lehigh?s Rossin College have shared a 30+ year relationship as academic/corporate partners. TE engages with professors and students on research responding to the needs of the marketplace. Students gain unparalleled access to a global company with all the challenges and realities facing the global marketplace. The U.S. Department of Defense has tapped Drexel University as a key leader in the creation of a $75 million national research institute that will support American textile manufacturers in bringing sophisticated new materials and textiles to the marketplace. The institute, called Advanced Functional Fabrics of America, will be a national manufacturing resource center for the industry and government to draw on academic expertise in new ?bers and textiles. The result will be fabrics engineered to see, hear, sense and communicate; serving an array of industries including aerospace, apparel, architecture and health. Drexel and the University City Science Center partnered to open ico3401, which houses the largest group of early-stage funded companies in Philadelphia. Students and faculty from Thomas Jefferson University and Philadelphia University work with an industry partner on a range of subjects including product and service design. packaging design across the value chain, materials exploration, and prototype design and development. Recent partners include QVC, Toys Us and DuPont. UPenn was one of seven universities that French drug maker, Sano?, partners with to strengthen its pipeline. Princeton University researchers working in collaboration with scientists at ExxonMobil?s research arm will be conducting innovative research on batteries and solar cells, as well as Arctic sea ice, ocean absorption of carbon dioxide, and low energy plasmas. PHILADELPHIADELIVERS.COM 75 Section 03: Talent FIGURE 3.12: Philadelphia's local and state governments are finding creative ways to bring STEM into public K-12 curricula. K-12 STEM CURRICULUM PROGRAMS Parkway Middle College Bucks County STEM Design Challenge School of Aviation, Supply and Global Logistics Philadelphia School District STEM Expo Community College of Philadelphia Urban Technology Project Drexel University STEM Education Arcadia University University City Science Center - FirstHand Teacher's Institute Downington STEM Academy Science Leadership Academy DESCRIPTION In four years of high school, students are able to earn up to 61 college credits in partnership with Community College of Philadelphia, which is the equivalent of two years of college. Each graduate will have the opportunity to earn certificate degrees in subjects including computer science, as well as an associate's degree in liberal arts. Annual competition in which participating schools are invited to solve a given STEM-related problem. Over 80% of PA Intermediate Units participated in the 2017 challenge. The Design Challenge has reached 100,000 students and 10,000 teachers since its inception in 2011. Over the next five years, the School District will be opening the high school to align with the region's high priority occupations including those in aviation and global logistics. The Expo, organized by the District and the Mayor's Office USZOZO STEM Initiative, exposes seventh- and eighth-graders to Career and Technical Education (CTE) programs offered by the School District and careers in the culinary arts, healthcare and STEM (science, technology, engineering and math) fields. The Urban Technology Project (UTP) empowers Philadelphia youth and their communities through meaningful technological experiences that link youth leadership, education and community development. UTP programs involve a continuum of service-learning and school-to-work experiences that provide long-term, holistic support for urban youth. These programs begin in middle school, continue through high school and extend into post?secondary opportunities. Drexel's graduate engineering students work alongside teachers in Philadelphia high schools to introduce and integrate engineering into the curriculum through the National Science Foundation GK-12 program. Arcadia University offers the Graduate Certificate in Science. Technology, Engineering and Mathematics (STEM), which is a 15-credit program which provides qualified teachers with specialized knowledge of the application of STEM. The FirstHand Teachers Institute focuses on understanding the 21st-century career and workplace skills that today's students need to be successful. This three day, experiential program gives teachers an opportunity to implement skill-based STEM learning into their classrooms. A nationally- ranked, bronze metal high school, the magnet school provides focused STEM education to a diverse student body and boasts a 99% graduation rate Created around the core values of core values of inquiry, research, collaboration, presentation and reflection, students schedules are flexible to allow opportunities for dual enrollment programs with area universities and career development internships. PHILADELPHIADELIVERS.COM 76 Section 03: Talent FIGURE 3.13: In addition, beyond the school curriculum, the Philadelphia region’s more than 200 robust K-12 STEM programs will help develop the next generation of workers. Academy of Natural Sciences Founded in 1812, the Academy of Natural Sciences is America’s oldest natural history museum and is a world leader in biodiversity and environmental research. Activities for Community Education in Science (ACES) Focused on designing experiments to show local kids that science can be fun. American Association of Blacks in Energy (AABE) The Philadelphia Chapter is a group of professionals who encourages youth to succeed in STEM and energy related studies and careers. Association of Women in Forensic Science (AWIFS) Provides networking opportunities and programs for female forensic professionals, teenagers, and college students through mentoring and outreach programming. Bartram’s Garden Thousands visit yearly for tours, educational programs, special events, recreation and as a community cultural center. Chemical Heritage Foundation A free museum, located in the heart of Philadelphia. We preserve, study, and interpret the history of chemistry, chemical engineering, and the life sciences. Character Lab Philadelphia-based, non-profit organization that aims to advance the science and practice of character development so that all kids can reach their fullest potential. Citywide Math and Science Institute Committed to advancing STEM across Philadelphia and provides an extensive list of STEM resources, including programs and opportunities across the city. Click 2 Science An interactive, professional development site for trainers, coaches, site directors and frontline staff/volunteers working in out-of-school time STEM programs, serving children and youth. Cobbs Creek Community Environmental Education Center The Cobbs Creek Community Environmental Education Center, Inc. (CCCEEC) operates a premier urban environmental education center that embraces and educates people of diverse backgrounds to understand and appreciate the important role the environment plays in our lives. Coded by: Kids Committed to providing free tech education, tech industry exposure and career mentorship to children who lack access to these opportunities. Our programs are designed to help our students achieve success by providing them with a combination of real world tech skills and access to a support system of mentors with experience in the tech industry. Curiosity Machine A community of scientists, engineers and children creating together. Through this online learning platform children are inspired and equipped to create their own inventions with the support of trained and qualified mentors. Discover Engineering In Greater Philadelphia The preeminent site for those aspiring or studying to be engineers in the greater Philadelphia area. The website includes engineering opportunities, internships, scholarships, and more for school-age as well as college students. Franklin Institute Science Museum In the spirit of inquiry and discovery embodied by Benjamin Franklin, the mission of The Franklin Institute is to inspire a passion for learning about science and technology. George Washington Carver Science Fair The George Washington Carver Science Fair encourages urban youth to pursue academic achievement and careers in science. The Carver Fair is jointly sponsored by Temple University, The Academy of Natural Sciences, The School District of Philadelphia, and The Archdiocese of Philadelphia. Girls SOAR A free program for girls between the ages 12-14 at the University of Pennsylvania. They aim to encourage girls to explore science and math, develop confidence in their mathematical and scientific abilities, and give girls a new image of who can be a scientist and what a scientist can do. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 77 Section 03: Talent GritPHL A program that teaches young girls about the tech space through hands-on learning, collaboration with like-minded peers, and encouragement from successful women in the industry. Its mission is to empower elementary and middle school girls to boldly pursue the study of STEM subjects and create a vision of who they can be in these industries through teaching, storytelling, mentoring, and character development. iPraxis iPraxis creates and fosters opportunities that engage underrepresented communities in science and technology through education and entrepreneurship. John Heinz National Wildlife Refuge at Tinicum Since its establishment in 1972, the refuge has worked with area educators to provide educational opportunities for their students. Our programs focus on providing teachers with the information, skills, and resources to incorporate the environment into their curriculum and to utilize the refuge as an outdoor classroom. LEAP into Science Sponsored by the partnership between the Franklin Institute and the Free Library of Philadelphia, is a program designed to engage children and families in science and literacy by integrating hands-on science activities with children’s literature. The Math Forum@Drexel A leading online resource for improving math learning, teaching, and communication. They offer a wealth of problems and puzzles; online mentoring; research; team problem solving; collaborations; and professional development. Math Science Upward Bound Aims to prepare Philadelphia Public and Charter High School students for admission to institutions for higher learning and success in the collegiate environment through intense academic enrichment, a summer college immersion experience, enhanced cognitive and critical thinking, and extensive interpersonal development through positive social interactions. Mathematics, Engineering, and Science Achievement (MESA) Pennsylvania Aims to engage students who are underrepresented in STEM fields, and motivate them to persist in these lucrative, high demand careers. NextFab A network of membership-based makerspaces that provide access to tools, technology, education, events, and services for makers of any skill level. Partnerships for Achieving Careers in Technology and Science (PACTS) Designed to involve students as an integral part of The Franklin Institute. It combines science enrichment, career development, mentoring, and leadership opportunities for a diverse group of rising 6th graders and rising 8th graders. PennApps This biannual hackathon involves teams of up to four college students who spend the weekend at the University of Pennsylvania working on innovative software and hardware solutions to real-world problems. Philadelphia Department of Commerce Launched StartupPHL’s Call for Ideas, a grant program to fund innovative proposals to support Philadelphia’s entrepreneurial ecosystem. PennGEMS (Girls in Engineering, Math and Science Camp) A week-long day camp at the University of Pennsylvania targeting middle school girls in 7th, 8th, and 9th grade that focuses on bioengineering, nanotechnology, materials science, graphics and computing. People’s Emergency Center: Digital Inclusion and Technology Program Offers free access to computers for general use and training throughout the year to students of all ages to develop the technology skills necessary for success in 21st century careers and education. Philadelphia Education Fund’s STEM Initiatives Supports STEM learning in Philadelphia through a variety of services including grants, student tutoring, and professional development. PHENND (Philadelphia Higher Education Network for Neighborhood Development) PHENND is a consortium of over 30 colleges and universities in the greater Philadelphia area that works to develop mutually beneficial, sustained, and democratic community-based service-learning partnerships. It actively seeks to revitalize local communities and schools and foster civic responsibility among the region’s colleges and universities. Philadelphia Regional Noyce Partnership Aims to build lasting synergies among the Noyce programs in the greater Philadelphia region that will strengthen all aspects of the STEM teacher pipeline: recruitment, pre-service preparation, induction, and ongoing development and growth throughout a teacher’s career, in ways that no individual institution would be able to achieve alone. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 78 Section 03: Talent Philadelphia Science Festival The Philadelphia Science Festival is a ten-day, community-wide celebration of science that takes place annually in April, featuring lectures, debates, hands-on activities, special exhibitions and a variety of other informal science education experiences for Philadelphians of all ages. Philadelphia Zoo The Philadelphia Zoo’s 42-acre Victorian garden is home to more than 1,300 animals, many of them rare and endangered. The Zoo, fulfilling its mission of conservation, science, education and recreation, supports and engages in conservation efforts to protect endangered species around the world. Philly Coder Dojo An open source, volunteer led free computer programming club for young people to learn how to code, develop websites, apps, programs, games and more. STEMCityPhl A civic campaign to build collective public will for excellent STEM education and opportunities, ensuring that all Philadelphians can participate in the economy of today and tomorrow. Steppingstone Scholars, Inc. A not-for-profit educational organization that identifies fourth-graders from Philadelphia public schools and prepares them to enter and succeed in the area’s top college-preparatory schools. TechGirlz A nonprofit organization dedicated to reducing the gender gap in technology occupations, by focusing on girls at the crucial middle school age. They offer free workshops to get girls interested in different kinds of technology, show them varied career options, and connect them with professionals in technology fields. Tech Impact Tech Impact (formerly NPower PA) provides hands-on technology support to nonprofits via implementation and support of an organization’s entire technology infrastructure, either in the cloud or on-premise. They are the nonprofit behind npCloud.org and ITWorks, which is a 16-week training program to help young urban adults (18-24) move into an IT career. Transportation YOU A hands-on, interactive, mentoring program that offers young girls ages 13-18 an introduction to a wide variety of transportation careers. The University of the Arts Professional Institute for Educators UArts provides courses for educators to learn about STEM topics to implement in their own classrooms. Women in Natural Sciences (WIN) A free after-school and summer science enrichment program at the Academy of Natural Sciences. Since its founding in 1982, WINS has introduced hundreds of high school girls to future careers in science and other professions by providing hands-on science workshops, career and college exploration, and positive youth development. Youth Engineering and Science A nonprofit organization that aims to promote an understanding and an interest in science and engineering for traditionally underserved and under-represented youth by engaging children in innovative project-based STEM programs in their own communities. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 79 04 Logistics “The mid-Atlantic is one of the most productive and densely populated corridors on the planet, and Philadelphia is an ideal, centrally located, transited, major, urban hub therein. It has the infrastructure and scale for being one of the country’s largest cities with the additional benefit of being within this major innovation region.” — Christopher Wink, CEO, Technically Media PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 80 Sectlon 04: Logistics FIGURE 4.1: Amazon already has a stronq existinq distribution footprint around Philadelphia. I NEW a 11"" . VIARYLAND, I, EST VIRGINIA VIRGINIA LEGEND Delivery Station Network Ful?llment Distribution Center Network Inbound Cross Dock (IXD) Network Pantry E. Fresh Distribution Center Network Prime Now Hub Network Regional Sortation Center Network REPRESENTING WITH OVER WITHIN 300 MILES OF THE CITY, 7 AMAZON HAS: 6 30M 220/ existing and under-construction and dIstn square feet in the region of Amazon's ful?llment and distribution footprint in the U.S. Section 04: Logistics FIGURE 4.2: Philadelphia International Airport provides connectivity to maior domestic and international destinations with ~500 daily departures. SEATTLE BOSTON2 Flights: 35 departures per week Flldits: 199 departures per week (6:00 hours) (1:15 - 1:30 hours) Trains: 120 trips per week (6:00 hours) NEW 42 departures per week (1:00 hour) TI?aIns: 300 trips per week (1:15 hours) SAN FRANCISCO -- WASHINGTON, Flights: 49 departures perweek 69 departures per week (6:00 - 6:15 hours) (:45 hours) Tl?alns: 265 trips per week (1:40 hours) 54 INTERNATIONAL DAILY FLIGHTS -- 33 nonstop destinations: Canada, Europe, the Carribbean, and the Middle East nosummvn sumou SOURCE: Dopamnomdmm "In?ow: ummonalupon PHILADELPHIADELIVERS.COM 02 Section 04: Logistics FIGURE 4.3: At 30th Street Station, Amtrak provides convenient access throughout the Northeast Corridor and recently completed a plan to improve the passenger experience at one of the nation’s most important transit hubs. CURRENT AMTRAK STATS PLANS FOR 2021 TOP SPEED TOP SPEED ON TIME RATE FEWER DELAYS 135mph 80% 160mph 8x more reliable than current equipment TRANSIT TIME TO NEW YORK TRANSIT TIME TO NEW YORK TRANSIT TIME TO D.C. TRANSIT TIME TO D.C. 30,000 SF 30TH STREET STATION CAN EXPAND TO of retail and dining at Philadelphia’s 30th Street Station 83,000 SF 2016 RIDERSHIP INCREASE PASSENGER SEATING BY 74min 104min 11.9M 62min 88min 30% Acela Express service offered every half-hour between DC and NYC during peak times SOURCE: http://fortune.com/2016/09/03/amtrak-high-speed-trains-2021/ https://www.washingtonpost.com/local/trafficandcommuting/with-a-245-billion-federal-loan-amtrak-set-for-upgradedtrains-stations/2016/09/10/3b6fc19a-715e-11e6-8533-6b0b0ded0253_story.html?utm_term=.e4dca42340ea http://blog.amtrak.com/2016/08/amtraks-next-generation-high-speed-trains/ PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 83 Section 04: Logistics FIGURE 4.5: FIGURE 4.6: Philadelphians spend the least amount of time in traffic compared to major U.S. cities. Philadelphia has the second shortest commute time using public transportation among major U.S. cities. PEAK TRAVEL TIME CONGESTION OF TOP 10 U.S. METRO AREAS AVERAGE COMMUTE TIME FOR PUBLIC TRANSPORTATION TO WORK Yearly delay per auto commuter (hours) 1 Minutes of commute time D.C. 82 Atlanta 54 Los Angeles 80 Dallas 53 New York 74 New York Boston 64 Miami 51 Seattle* 63 Los Angeles Chicago 61 Chicago 50 Houston 61 Houston Dallas 53 D.C. 48 Atlanta 52 Philadelphia Miami 52 Boston 46 Philadelphia 48 SOURCE: Texas A&M Transportation Institute (2015) 51 50 49 47 1 Yearly Delay per Auto Commuter–Extra travel time during the year divided by the number of people who commute in private vehicles in the urban area *Seattle is included for reference SOURCE: Texas A&M Transportation Institute (2015) PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 85 Section 04: Logistics FIGURE 4.7: As the sixth largest transit system in the country, SEPTA provides great local and regional access across Philadelphia and the surrounding metro area. CURRENT SEPTA STATS FUTURE PROJECTIONS 447 miles SEPTA is planning a multi-billion dollar capital program which will improve service to potential HQ2 neighborhoods Rail network (inclusive of regional) is almost 4x that of Seattle’s system to be completed in 2041 84 subway, elevated, light rail, trackless trolley and bus routes 1.1M passenger trips every weekday 56% capacity increase planned for University City: peak morning commute ( 7-9am) 1.5 mile extension planned to extend Broad Street subway line for direct access to Navy Yard LARGE-SCALE MODERNIZATION Plans also underway to rebuild and modernize large portions of rail infrastructure with high-capacity services, including: • • • • Multi-level railcars Articulated light rail vehicles Subway platform extensions Bus network redesign SOURCE: Southeastern Pennsylvania Transportation Authority (SEPTA) PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 86 06 Livability “I’ve seen it all, from Philly all the way to California; and I can absolutely say that our value-add is our diversity. We are a majority-minority city. So, that means every sector of the city, every neighborhood, every person, every ethnicity, every experience, every journey, adds to the value that we have as a city.” — Brigitte Daniel, Executive Vice President, Wilco Electronics Systems, Inc. PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 95 Section 06: Livability FIGURE 6.1: Philadelphia is one of the most affordable major cities in the U.S. Amazon’s employees will see their money go further in Philadelphia than other metropolitan areas due to its low cost of living. COST OF LIVING INDEX 2016, Philadelphia Indexed to 100 New York 192 San Francisco 150 D.C. 126 Boston 125 Seattle 122 Los Angeles 120 $100,000 in Philadelphia is equivalent to… $122,278 in Seattle, WA $124,810 in Boston, MA $125,738 in Washington, D.C. $192,236 in New York, NY Philadelphia 100 Chicago 100 Baltimore 97 Denver 93 Dallas 85 Atlanta 83 Austin 82 Detroit 80 Pittsburgh 79 SOURCE: Council for Community and Economic Research (C2ER) Cost of LIving Index (COLI) PHILADELPHIADELIVERS.COM [CONFIDENTIAL] When we compare Philadelphia to Seattle… Housing is 25.11% less Transportation is 17.36% less Healthcare will cost 17.02% less Groceries will cost 7.67% less 96 Section 06: Livability FIGURE 6.2: Philadelphia has one of the most affordable housing markets among major U.S. metro areas. MEDIAN RENTAL PRICE FOR 2-BEDROOM APARTMENT MEDIAN SALES PRICE FOR SINGLE FAMILY HOME 2017 2017 San Francisco $3,234 San Francisco $907,500 New York $2,500 Los Angeles $647,600 Los Angeles $2,500 Seattle $472,200 Boston $2,400 Boston $446,200 D.C. $1,975 D.C. $423,000 Seattle $1,895 New York Denver $1,755 Denver $398,100 Chicago $1,620 Austin $276,300 Dallas $1,529 Baltimore $271,400 Philadelphia $1,495 Philadelphia $241,600 Baltimore $1,450 Chicago $222,800 Austin $1,395 Dallas $214,900 Atlanta $1,394 Atlanta $182,100 Detroit $1,150 Pittsburgh $138,900 Pittsburgh $1,018 Detroit $137,900 SOURCE: Zillow Market Data SOURCE: Zillow Market Data PHILADELPHIADELIVERS.COM [CONFIDENTIAL] $412,100 97 Section 06: Livability FIGURE 6.3: Plenty of diverse, low-cost housing options are available within 10 miles of the University City and Navy Yard neighborhoods. WITHIN 10 MILES UNIVERSITY CITY NAVY YARD Total housing units 777,058 555,991 Occupied housing units 87.3% 86.1% % of People living in owned homes 57.3% 54.3% % of House prices under $200k 61.6% 63.9% Median house prices $190,570 $203,780 Median rent value $981 $969 SOURCE: U.S. Census American Community Survey 2015 ”Your proposal smartly expressed a desire for the trinity of great urbanism: density, walkability, diversity. Of all the metropolises on the Northeast Corridor, none offers a better version of that mix, at a more affordable price, than Philadelphia. Where else can you have all the fruits of density and still live in a single-family home? Any home buyers you bring in from Seattle are going to have reverse sticker shock.” — Inga Saffron, Architecture Critic, Inquirer PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 98 Section 06: Livability FIGURE 6.4: Philadelphia has been internationally recognized as a cultural powerhouse. PHILADELPHIA HAS BEEN DESIGNATED… PHILADELPHIA IS HOME TO… 1st 35+ TOP SITES IN PHILADELPHIA Independence National Historical Park Liberty Bell restaurants of 2017 James Beard Awardwinning chefs & restaurateurs Independence Hall ONE OF THE LARGEST Rodin Museum on Lonely Planet’s Best of the U.S. (2016) urban park systems in the country, Fairmount Park Barnes Foundation #2 ONE OF THE LARGEST World Heritage City in the U.S. #1 on U.S. News & World Report’s Best Places to Visit in the U.S. (2017) #2 public art programs in the country Philadelphia Museum of Art Society Hill Historic Distric Franklin Institute Fairmount Park RECENT MA JOR EVENTS Papal Visit and Meeting of Families (2015) Democratic National Convention (2016) NFL Draft (2017) on U.S. News & World Report’s Best Historic Destinations in the U.S. (2017) #3 on New York Times’ 52 Places to Visit (2015) SOURCE: UNESCO, Lonely Planet, U.S. News & World Report, New York Times, Philadelphia Parks & Recreation, James Beard Foundation, VisitPhilly.com PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 99 Section 06: Livability FIGURE 6.5: Philadelphia’s emphasis on pedestrian access and connectivity has made it the fifth most walkable large city in the U.S., with an increasing proportion of employees walking to work. WALKABILITY SCORE Top 10 most walkable cities, 2017 New York 89 San Francisco 86 Over 40% of Center City residents commute to work on foot. Boston 81 Miami 79 Philadelphia 79 Chicago 78 D.C. 77 Seattle 73 Oakland 72 Long Beach 70 SOURCE: Walk Score, Philadelphia City Center District State of Center City Report ”Philly is a city that’s really easy to get around. Our employees drive to work, they bike to work, they train to work, and they walk to work.” — Josh Kopelman, Partner, First Round Capital PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 100 Sectlon 06: Livability FIGURE 6.6: Philadelphia has over 400 miles of bike lanes and ranks in the top 5 most bikeable cities. montgomery county 1 City?Universit -. J) ,-"camden delaware county county LEGEND ?Ral On Street Blke Lane On Street Sharrow Planned Blke Lane Reglonal Trall Network Navy Yard Tm lou cester 430 1,200 79 A miles of bike lanes with ~30 Indego bike share launched in Since 2010, bicycle commuting protected bike lanes, and 2015 and has expanded from 600 into Center City during rush hour building out 750-mile regional to 1,200 bicycles and now has 117 has increased 79% trail system stations, including corporate pass and cash payment options Planned Reglonal Trall Network Indego Blke Share Location' -East Coast Greenway .- Blke share locatlons In the Navy Yard be Installed In zola PHILADELPHIADELIVERS.COM 101 Sectlon 06: Livability FIGURE 6.7: Philadelphia is a majority-minority city. PHILADELPHIA ETHNIC DEMOGRAPHICS of people who identi?ed, by race (2016) I African-American I White alone, not Hispanic or Latino I Hispanic Asian Other SOURCE: u.s. Census Data; Note: Some radal catngonos Include maple respondents. pic chartdoes not equal 100, data rounds. "Philadelphia, we say it's the City of Brotherly Love, and when we say brothers, we mean all types of brothers. That's the type of city where you can find a home, no matter what you look like or how you worship or how you practice your private life. This Is a city that welcomes everybody." Todd Carmichael, CEO and Co-founder, La Colombe 42% 37 12% 6% 3% PHI LADELPHIADELIVERS.COM 102 Section 06: Livability FIGURE 6.8: Philadelphia has made significant strides in decreasing crime; the city’s crime rate is comparable to other major U.S. cities. HOMICIDES IN PHILADELPHIA HOMICIDE RATE Total number of people, 2016 Homicides per 100,000 residents, 2016 32% decrease over time 500 406 Detroit 45 391 400 331 300 306 324 Chicago 28 331 Atlanta 23 302 248 280 278 15 2016 246 200 2006 07 08 09 10 11 12 13 Denver 8 25% decrease over time 22,833 20,681 20,957 Philadelphia 17 Dallas 13 Total number of people, 2016 20,000 D.C. 20 Pittsburgh 19 14 MA JOR CRIME IN PHILADELPHIA , 2016 25,000 Baltimore 51 Los Angeles Boston 7 San Francisco 18,328 18,982 7 Austin 4 17,641 18,282 17,004 15,000 7 15,771 15,236 16,062 New York 4 Seattle 3 10,000 2006 07 08 09 10 11 12 13 14 15 2016 SOURCE: Federal Bureau of Investigation Uniform Crime Reporting, City of Philadelphia PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 103 Section 06: Livability FIGURE 6.9: The Philadelphia region is home to superior public education, with two of the top three and fifteen of the top two hundred public school districts in the U.S. 2018 BEST SCHOOL DISTRICTS IN AMERICA 2 Tredyffrin-Easttown School District Wayne, PA 3 Radnor Township School District Wayne, PA 16 Lower Merion School District Ardmore, PA 30 Unionville-Chadds Ford School District Kennett Square, PA 107 Great Valley School District Malvern, PA 114 Colonial School District Plymouth Meeting, PA 116 North Penn School District Landsdale, PA 118 Central Bucks School District Doylestown, PA 126 Wissahickon School District Ambler, PA 150 School District of Haverford Township Havertown, PA 162 Council Rock School District Newtown, PA 173 Lower Moreland Township School District Huntingdon Valley, PA 174 Wallingford-Swarthmore School District Wallingford, PA 189 Spring-Ford Area School District Royersford, PA 195 Moorestown Township Public School District Moorestown, NJ SOURCE: Niche 2018 Best School Districts in America Report PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 104 Glossary of Terms Citations GLOSSARY OF TERMS 150-Mile Radius The 150-mile radius measures 150 miles from Philadelphia City Hall. This radius captures the broader region, which includes Washington, D.C. and New York City. All locations within this radius are reachable within 2 hours of ground transportation. Philadelphia Region Philadelphia Region refers to the five counties in Southeastern Pennsylvania (Bucks, Chester, Delaware, Montgomery, and Philadelphia), five counties in Southern New Jersey (Burlington, Camden, Gloucester, Mercer, and Salem), and New Castle County, DE. Philadelphia MSA or Metro Philadelphia MSA or Metro refers to five counties in Southeastern Pennsylvania (Bucks, Chester, Delaware, Montgomery, and Philadelphia), four counties in Southern NJ (Burlington, Camden, Gloucester, and Salem), New Castle County, DE, and Cecil County, MD. The city of Philadelphia The city of Philadelphia is co-terminus with Philadelphia County. Peer set of cities The peer city comparison set represents relevant major metropolitan areas comparable across the data requested in the RFP. – Philadelphia – New York – Boston – D.C. – Chicago – Atlanta – Austin – Denver – Pittsburgh – Seattle – San Francisco – Los Angeles – Detroit – Dallas – Baltimore PHILADELPHIADELIVERS.COM [CONFIDENTIAL] 106