By JA Williams Jr.

Philadelphia Mayor Cherelle Parker appears to have landed one of the biggest corporate catches the city has seen in years. Burlington Stores, the Fortune 500 retailer formerly known as Burlington Coat Factory, announced plans to relocate its corporate headquarters from Burlington County, New Jersey, to 3151 Market Street at Schuylkill Yards in West Philadelphia.

The company plans approximately $370 million in private investment connected to the relocation.
The headline number is impressive. But the bigger question for Philadelphia taxpayers, workers and businesses is this: What could Burlington’s headquarters actually be worth to Philadelphia?

Potentially, quite a lot.
Burlington plans to acquire the approximately 441,000-square-foot property at 3151 Market Street and invest heavily in developing its new headquarters.
Philadelphia officials say Burlington expects its Philadelphia workforce to eventually reach approximately 2,000 full-time employees, with an estimated average annual salary of roughly $125,000.
That makes the payroll calculation particularly significant: 2,000 employees earning an average of $125,000 equals approximately $250 million in annual payroll.
If Burlington maintained that employment and salary level for a decade, approximately $2.5 billion in payroll would be associated with its Philadelphia headquarters. That’s before considering Burlington’s initial $370 million investment or the secondary economic activity generated by its employees.
There is an important distinction when discussing the 2,000 jobs.
Not all of those positions should necessarily be characterized as newly created jobs. Reporting on Burlington’s plans indicates that approximately 1,500 existing employees are expected to relocate from New Jersey, while the company expects to add approximately 500 positions over five years.

For Philadelphia, however, moving those existing jobs across the Delaware River still matters. Employees working in Philadelphia become part of the city’s employment and tax base, while their presence can generate additional demand for businesses and services.
One of Philadelphia’s most important sources of revenue is its Wage Tax.
If Burlington eventually maintains approximately $250 million in annual Philadelphia payroll, the headquarters could potentially generate roughly $8.6 million to $9.3 million annually in city wage-tax revenue, depending largely on employee residency and the tax rates in effect.

At full staffing, that could theoretically represent approximately $43 million to $47 million over five years and $86 million to $93 million over ten years.
These figures are Broad & Market Standard estimates, not official projections from Burlington or the City of Philadelphia. Actual collections would depend on Burlington’s final workforce, employee residency, salaries, future tax rates and how quickly the company reaches its employment target.

Nevertheless, the numbers demonstrate why Philadelphia competed aggressively for the headquarters.
Burlington isn’t relocating to Philadelphia without public incentives.
Pennsylvania committed approximately $30 million in assistance, including $20 million through the Redevelopment Assistance Capital Program and $10 million through Pennsylvania First.

Philadelphia is providing an $8 million economic-development package, including a $7 million high-impact forgivable loan and $1 million in SEPTA Key Advantage transit benefits. Additional tax incentives are also part of the deal.
Public incentives inevitably raise an important question: Will taxpayers receive enough economic activity in return to justify the investment?
The announced payroll numbers suggest substantial potential.
Philadelphia’s $7 million forgivable loan, for example, is less than the amount Burlington’s projected $250 million payroll could potentially generate in city wage taxes during a single year once the headquarters reaches full employment.

That should not be interpreted as a literal one-year taxpayer payback. State and city incentives come from different governments, Burlington’s employment will increase gradually, and additional incentives carry costs. But it illustrates the scale of the potential tax base Philadelphia is attracting.

The $370 million investment gets the headline, but the approximately $250 million annual payroll could ultimately prove even more important.
Thousands of corporate employees can generate spending on restaurants, transportation, housing, entertainment, retail and professional services.
If just 10% of that payroll eventually translated into spending within Philadelphia, it would equal approximately $25 million annually. That figure is an illustration rather than an official economic-impact projection, but it demonstrates how a major corporate headquarters can affect businesses far beyond the company’s walls.

Restaurants, coffee shops, retailers and service businesses surrounding University City and Schuylkill Yards could particularly benefit from thousands of additional workers entering the area.
The location of Burlington’s headquarters is another important part of the story.
Burlington is establishing itself at Schuylkill Yards, immediately adjacent to Drexel University and Philadelphia’s expanding University City employment district.

The project adds a major corporate headquarters to an area already known for universities, healthcare, research and technology. That helps diversify West Philadelphia’s employment base while further connecting University City with Philadelphia’s traditional downtown business district.
Philadelphia also gains something cities compete fiercely to attract: another Fortune 500 corporate headquarters.

Headquarters bring executives and decision-makers into a city. Companies purchase legal, banking, accounting, technology, construction and other professional services. Their presence can also make the region more attractive to other corporations considering relocation.
A successful Burlington headquarters could therefore become part of Philadelphia’s pitch to the next major corporation.
There is little question that Burlington represents a significant economic-development victory for the Parker administration.
But landing the company is only the beginning.

The real measure of the deal will be whether Burlington reaches its employment commitments, maintains those jobs in Philadelphia and creates economic opportunities extending beyond the walls of its headquarters.

Philadelphia should also watch how many of the additional positions ultimately go to city residents and whether local and West Philadelphia businesses participate in the economic activity generated by the project.

If Burlington reaches approximately 2,000 employees earning an average of $125,000, Philadelphia could eventually have approximately $250 million in annual payroll associated with one corporate headquarters.

Combine that with $370 million in private investment and another Fortune 500 company calling Philadelphia home, and the significance becomes clear.
Parker landed a big one.

Now the challenge is making sure Philadelphia gets the full value of the catch.