Philly Struggles to Hold Onto Companies

Two major Philadelphia-based companies have announced plans to expand and possibly relocate their operations out of Philadelphia. Aramark Corp., which has 300,000 square feet of office space, is being wooed by New Jersey and Delaware, City Commerce Director James J. Cuorato said. Cigna Corp., which occupies 600,000 square feet, half of one of Philadelphia's two signature skyscrapers, also is being wooed by New Jersey.

Aramark, a food services provider, and Cigna, an insurer, are on a list of 60 firms employing more than 30,000 people with leases expiring over the next five years that the city is working to keep. Both companies are seeking economic development incentives from those locations bidding for them. These types of situations have caused most cities to give increased attention to existing business retention. Unfortunately, most of the projects that we have observed over the past 18 months have chosen "greener pastures" offering greater inducements to attract them.

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