American Commerce Center_Potential Economic

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					                        AMERICAN COMMERCE CENTER:
                        POTENTIAL ECONOMIC, FISCAL, AND
                        REAL ESTATE MARKET IMPACTS

                          CLIENT                                                   Econsult Corporation was hired by Hill International Real Estate

                                                                                   Partners, L.P. to estimate the potential economic, fiscal, and
                                Hill International Real                            real estate market impacts of the upfront construction and
                                Estate Partners, LP                                ongoing operations of the proposed American Commerce Center
                                30 South 15th Street, Suite 1300
                                                                                   (ACC) at 1800 Arch Street in Philadelphia, PA. ACC will be a
                                Philadelphia PA 19102
                                                                                   mixed-use tower that will rise to 1500 feet – making it one of
                                December 2008                                      the tallest buildings in the US – and will include office, hotel,
                                                                                   retail and entertainment uses, as well as public amenities and
                                                                                   public open space.

                                                                                   Econsult first estimated the potential total economic and fiscal
                                                                                   (tax) impacts of one-time upfront construction of the ACC,
                                                                                   including total expenditures, jobs, and earnings, as well as
                                                                                   potential tax revenues gained within the City of Philadelphia and
                                                                                   the Commonwealth of Pennsylvania. Following this analysis,
                                                                                   Econsult estimated ACC’s economic and fiscal impacts from
                                                                                   ongoing annual operations using industry averages to translate
                                                                                   square footage amounts by use into salary and other

                                                                                   Econsult’s approach involved analyzing the net new economic
                                                                                   impact generated by ACC, or the gross economic impact less
                                                                                   any impact that would have taken place anyway (and is just
                                                                                   moving internally within the City and Commonwealth). Econsult
                                                                                   estimated the potential net new ongoing annual operating
                                                                                   impact of ACC. In addition, Econsult conservatively projected
                                                                                   net new tax revenue amounts into the future, discounted them
                                                                                   back to the present using a reasonable borrowing rate, and then
                                                                                   estimated potential net new tax revenues to be accrued for the
                                                                                   City and Commonwealth before accounting for any other public
                                                                                   investment besides the density bonuses and other incentive
                                                                                   zoning items requested by the developer

                                                                                   Finally, in addition to the anticipated economic benefits,
                                                                                   Econsult examined the range of qualitative benefits likely to
                                                                                   accrue as a result of the ACC, including:

                                                                                      • Environmental                    • Transit orientation
                                                                                        sustainability                   • Public space
                                                                                      • Active streets                   • Extension of Center City
                                                                                      • Infusion of activity from          office core
                                                                                        outside the region               • Iconic architecture
                                                                                      • Mixed uses

                                Sixth Floor   |   3600 Market Street   |   Philadelphia, PA 19104   |   215.382.1894 (1895/fax)   |

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