(EB-5) Project Update |The Bellwether (Philadelphia) – October, 2023
Latest Update on the Strategic Project in Philadelphia, U.S, in October 2023, with a total investment of up to 611 million dollars.
The Bellwether District project in a Targeted Employment Area (TEA) – an area defined by the U.S. government as having high unemployment or rural regions – aims to clean and revitalize the PES oil refinery site in Philadelphia into a green and sustainable campus, fostering industrial growth and innovation.
With a vast area second only to Philadelphia International Airport, once completed, the Bellwether District is poised to be a leading region in sustainable development, innovation, and economic growth for the entire city.
>>> For more detailed information: Refer to Bellwether District investment project
BELLWETHER (PHILADELPHIA) – LATEST UPDATES
– 611 million USD: The total project investment as of October 2023 (an increase of 41 million USD from the last update).
– 363 additional jobs created: The job creation figure is in line with the projected number of 2970 jobs.
Majority of the incremental spend has been on demolition and earthwork with attendant carrying costs and soft costs also continuing.
All that substantively remains is the demolition of the wastewater treatment plant. Hilco will complete demolition of the wastewater treatment plant once the temporary wastewater system is set up. This is still on track to be completed this year.
There are still a few ancillary demo activities to complete (small concrete pads to be removed) but these are fairly simple activities.
– From a mass grading perspective, Hilco has completed the following activities since we last provided an update:
- Pad for lot 15 is complete and 100% of surcharge has been placed.
- Pad for lot 16 is substantially complete and we are getting ready to place surcharge. Expected completion of the placement in November of 2023.
- The stormwater detention area that will support the industrial area of the property has been excavated and Hilco is now working on connecting it to the rest of the industrial property at large. Once this area is commissioned, they can disconnect and decommission the wastewater treatment plant and complete the demolition.
The rainwater storage area is currently in the operational phase
– No substantive updated on environmental. Work continues as planned with no new major surprises.
– Hilco is out to bid for Phase I of infrastructure work. Anticipate receiving bids and leveling over the next few weeks with a contractor selection soon thereafter. Expected start date for infrastructure is still November of this year but that may slip a month, depending on the bid leveling/selection process.
Same scope as previously described-off site at 26th and Hartranft and first portions of Hartranft and Frances Harper Drive inside the site.
From a vertical development perspective:
- Lot 15 will proceed as soon as the surcharge program is completed and the surcharge material is removed. We think that is likely November (about a 2 week slide since we last provided an update).
- Lot 16 will start in January/February pending surcharge program results and weather conditions. Since lot 16 is next to lot 15 and the soils are largely in the same condition, we anticipate a similar 2 month surcharge program which lines up with this schedule.
Hilco has a term sheet for the construction financing for lot 15 that they are reviewing.