Allan Domb: The Six Pillars of a Successful City

Outdoor dining in Rittenhouse / Photograph by R. Rabena for Visit Philadelphia

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If you ask 10 people what makes a city great, you’ll probably get 10 different answers — from fun restaurants and outstanding schools to top-notch parks and a strong job market.

But behind those answers is a more fundamental question: What makes people choose a city? Why do they decide to live there, open a business, take a job, visit for the weekend, or invest their money? For Philadelphia, creating demand should be our main focus. We have extraordinary assets, but realizing their full value requires giving more people and businesses compelling reasons to choose Philadelphia — and those already here more reasons to stay and grow.

After decades as a city resident, business owner and public official, I believe this starts with six key pillars that each directly influences demand for our city.

Pillar #1: Real public safety

Public safety is fundamental to creating demand for a city. When people feel safe, they are more willing to put down roots, open a storefront, commute to an office or spend an evening downtown. When they don’t, they take those activities — and their spending and investment — elsewhere.

Fortunately, Philadelphia has done a great job on this front in the last few years. After spiking during the pandemic, Philadelphia’s murder rate is now at a 60-year low, and other measures of crime that are way down, too. Hats off to Police Commissioner Kevin Bethel and Mayor Cherelle Parker for a great job here.

How we can do better: We need a cohesive effort to address mental illness and street homelessness. I’m an advocate for declaring a state of emergency and coordinating all levels of government to connect people living on the street with appropriate housing, treatment and support. Helping vulnerable people and making our public spaces welcoming should be shared priorities.

Pillar #2: Competitive taxes

Competitive taxes help turn interest in Philadelphia into a decision to locate here. A company may love our talent, location and amenities, but the economics still have to work. Our tax policies should encourage employers to choose Philadelphia, expand their businesses here and hire our residents.

As regular readers of this column know, I strongly believe that Philadelphia’s high business taxes have held the city back for generations. We lose companies not only to peer cities like Boston, Washington, D.C., and Charlotte, but to our own suburbs. We’ve lost a vast number of employers to Bala Cynwyd and Conshohocken, for example, because their tax rates are a fraction of Philadelphia’s.

Those decisions cost Philadelphia job opportunities for our residents, as well as the economic activity that companies and their employees generate. Every employer that chooses another location represents demand we could have captured.

How we can do better: We need an aggressive reduction of the business taxes that have forced most employers out of the city. Studies have shown that eliminating the net income portion of the BIRT (business tax) over 10 years and reducing the wage tax to 2.9 percent over 15 years could produce over 70,000 new jobs. Right now, nine of the 10 largest employers in the city are “Eds and Meds” (hospitals and universities) which don’t pay taxes. Meanwhile, while most cities have 15 to 18 percent of their residents commuting to a job outside the city every day, Philadelphia has 47 percent of its residents leaving daily.

Case in point: Twenty-five years ago Conshohocken was known as the Lee Tire Curve. Now it’s a booming suburb that’s home to many companies that should be downtown, but are there solely because they want to save on taxes. The goal is to make Philadelphia a more compelling choice for businesses — and grow our tax base by attracting more of them.

Pillar #3: Clean streets

Clean, well-kept streets help create demand by making people want to spend time in a place. Every block sends a message about Philadelphia. We want that message to give a prospective resident, business owner, or visitor confidence in choosing our city.

As with public safety, Philadelphia took a big step backward during the pandemic, but things have gotten better in the last couple of years. The Parker Administration has expanded twice-a-week trash collection to a number of new neighborhoods, and the mayor’s proposed budget includes more resources for enforcement against illegal dumping.

How we can do better: We need consistent attention to the everyday conditions people encounter: litter, overflowing trash cans, illegal dumping and poorly maintained public spaces. Reliable collection, stronger enforcement and clear accountability should be expectations on every block. A clean city makes people more likely to return, stay longer and feel good about investing here.

Pillar #4: Easy-to-use, efficient city services

Dealing with the city — whether it’s to open a new business, resolve a tax issue, get a zoning opinion or any number of things — should be as easy and pleasant as dealing with a well-run business. The process should be clear, simple and fast.

Every unnecessary delay risks losing someone who is ready to invest in Philadelphia. Efficient city services help turn that demand into an open business, an occupied building or a new job.

For decades, Philadelphia has been notoriously terrible at this. Emails go unanswered; phone calls go unreturned; situations that should be resolved in minutes can take months, if they ever get resolved at all.

How we can do better: The city should take a page from Gov. Josh Shapiro, who after taking office issued a series of executive orders to speed up processes and cut red tape when dealing with the Commonwealth of Pennsylvania.

Philadelphia should adopt that same focus: clear timelines, responsive service and accountability for results. Someone who wants to open a restaurant, improve a property or expand a company should encounter a city ready to help them move forward.

Pillar #5: A healthy business environment

Jobs are one of the strongest drivers of demand for a city. When employers locate and grow here, they give people a reason to move here, stay here and build a future. Their employees, in turn, support demand for homes, restaurants, shops and services. That activity creates opportunities for more businesses and more jobs.

For too long, Philly has overly relied on nonprofits and government to create jobs. Those positions are valuable, but unless we can create more private-sector employment, we’re never going to fulfill our potential as a city.

How we can do better: There is some good news here. The Greater Philadelphia Growth Partnership — a regional initiative backed by Pew, the Chamber and a number of businesses — has a mission of creating quality jobs and strengthening economic competitiveness across Southeastern Pennsylvania. And GPGP has created a concrete strategy to do just that.

Philadelphia, as the center of that region, needs to make sure it reaps the benefits. That means creating a more inviting business climate, as well as aligning our public schools and workforce training with the needs of employers.

We should be actively making the case for Philadelphia to companies considering where to locate or expand, while giving existing employers reasons to grow here. Our future depends on translating the city’s strengths into jobs and opportunity.

Pillar #6: A strong core

Philadelphia is a city of neighborhoods, and that’s one of our great strengths. Different parts of our city are home to different types of people and businesses, giving us the personality and character that other municipalities envy.

That said, I don’t think any city can fully reach its potential without a strong central corridor. Those of us who’ve lived in Philadelphia for a long time can attest to how much Center City improved from the 1990s to the 2010s, as housing was constructed, retail stores and restaurants opened, and people flocked downtown.

Unfortunately, the pandemic took a deep toll, and we’re still trying to recover.

How we can do better: We need to focus directly on creating demand for Center City — more employers choosing to locate here, more workers coming downtown, more residents making it their home and more visitors spending time and money here.

That starts with strengthening the pillars above. A safe, clean, competitive city that welcomes businesses and makes it easy to get things done gives people concrete reasons to choose Center City.

We should support the conversion of suitable office buildings to housing while working just as hard to attract and retain employers. More residents support activity throughout the week, and a strong employment base brings customers to the businesses that depend on them.

But we should also focus on making Center City fun — more restaurants, more attractions, more energy. Center City is a neighborhood unto itself, but it’s also a shared resource — a place all city residents should want to spend time. Let’s invest in it.

The goal across all six pillars is the same: create more demand for Philadelphia. Every policy decision should prompt a simple question: Will this make more people want to live, work, visit or invest here? The more often we can answer yes, the stronger our city will become.