September 25, 2024
Michael Tanenbaum/PhillyVoice
Mayor Cherelle Parker held a public meeting at the Pennsylvania Convention Center on Wednesday night to detail her administration's plans for the proposed 76ers arena in Center City and the $50 million community benefits agreement negotiated with the team.
At a public meeting at the Convention Center on Wednesday night, Philadelphia Mayor Cherelle Parker unveiled details about the city's proposed agreement with the 76ers to build a new arena on East Market Street and pay for a wide-ranging $50 million community benefits agreement
Parker, who endorsed the project last week, described the deal as a "historic" pact that will generate more resources for the city than any previous facility built for pro sports teams in Philadelphia. In addition to the Sixers' $1.55 billion private investment to build the 18,500-seat arena — without receiving any city subsidies — Parker stressed that the CBA includes programs meant to protect Chinatown.
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"They will help to jumpstart a broader — and what I would call a city-led — focus on Chinatown that we've never had before," Parker said.
The arena proposal on Market Street, which would replace a portion of the Fashion District mall between 10th and 11th streets, still requires approval by City Council. The Parker administration has prepared a legislative package that includes 11 ordinances and resolutions that must be passed by the end of the year to remain on schedule for the arena to be completed by August 2031. The bills will be formally presented to City Council for introduction on Oct. 24, allowing 30 days for the proposal to be reviewed by all stakeholders.
Opposition to the project has centered on how it will impact surrounding communities like Chinatown and Washington Square West. Leaders from both neighborhoods, including the Save Chinatown Coalition, did not attend Wednesday's meeting but vowed last week to continue their fight against the project.
"We urge City Council to exercise its authority and delay any legislation until we have a process that respects the needs of the city and its residents," Vivian Chang, executive director of Asian Americans United and activist with the Save Chinatown Coalition, said of the Parker administration's arena proposal.
Chang said Parker has not met with the group and is "unilaterally trying to impose a CBA" without fully assessing the neighborhood's needs. Parker said Wednesday she plans to hold more town hall meetings on the project.
Members of local unions and other backers of the arena made up the majority of the crowd at the Convention Center.
Parker and members of her administration outlined how the CBA will include $25 million for programs in neighborhoods directly impacted by the arena and another $25 million for citywide initiatives. More than 70% of the money will be spent within the first 10 years that the arena project is underway, including $15 million distributed in the six years before the facility opens.
"We need help right now," Parker said. "We had to negotiate to be able to front-load the money so that we can put it to good use right now."
Notably, the CBA will be enforced by the city and will be binding with the 76ers regardless of whether the ownership sells the team during the 30-year timeframe of the agreement.
Key features of the CBA include $3 million for a small business lending fund to stabilize and expand Chinatown businesses, which would be supplemented by a city-led campaign to raise an additional $10 million to $15 million. Another $1.6 million will go toward grant funding to support businesses disrupted by the arena's construction. Additionally, $2 million will support businesses and entrepreneurs through a program run by the Community College of Philadelphia, while other funds will help businesses overcome barriers like obtaining insurance.
To encourage fans to use public transit to attend basketball games and other events at the arena, the CBA includes $3 million to subsidize and incentivize rides on SEPTA and PATCO. It also will direct $1 million toward master planning to address concerns about traffic, parking and quality-of-life issues in surrounding neighborhoods and $1.25 million for cleanliness initiatives.
For security around the arena, $1.45 million will pay for the installation of 21 CCTV cameras in the vicinity. Another $1.5 million will create a new neighborhood security substation staffed with public safety officials from Philadelphia police, SEPTA, Jefferson and Center City District.
Other miscellaneous features of the CBA include funds for internship programs, community use of the arena five days per year, and annual funds to support the maintenance of city recreation centers.
Much like the stadiums at the Sports Complex in South Philadelphia, the land used for the 76ers arena will be leased from the city instead of the team paying assessed property taxes.
Historically, when sports facilities were built in the city, public subsidies from the city and state were provided for site preparation, infrastructure and other aspects of construction. This was done for all of the stadiums at the Sports Complex. City officials said their agreement with the Sixers will be a departure from that model.
"It has no local public funding," city Finance Director Rob Dubow said. "We have progressed from 100% government funding, to capped public funding, to no public funding in this transaction."
The 76ers will make annual payments to the city of about $6 million as part of the land-lease agreement, known as a PILOT. By comparison, the Wells Fargo Center pays $2.52 million per year, the Eagles pay $2.25 million per year for Lincoln Financial Field and the Phillies pay $1.25 million per year for Citizens Bank Park.
Parker argued it would be "short-sighted" for the city to turn down the 76ers' investment on East Market Street, which includes $1.3 billion for the arena and another $250 million for a residential tower. She said her position on the project has been driven by the need to steward city resources in a way that bolsters Philadelphia's fiscal stability. Attracting investment in Center City and creating a pipeline of jobs are priorities for her administration to open up more economic opportunities for residents, she said.
"We have to contend with the fact that, although we've continued to see a reduction in poverty in the city of Philadelphia, we continue to be the poorest big city in the nation," Parker said. "And I'm not proud of that distinction."
Parker also said she's been working for years to bring a WNBA team to Philadelphia and believes that the new arena will make the city a strong contender for the league's anticipated expansion.
The city projects that the arena will generate a total of $708 million in tax revenue over 30 years, which equates to $245 million if the money was paid in a lump sum today. The School District of Philadelphia is expected to receive $153 million in revenue, or $52 million if received all at once today, according to the city's projections.
The Parker administration said the arena will generate about 1,000 construction and operations jobs. City oversight for the project will ensure that goals are met for employing minority-owned businesses and employees, with an emphasis on creating jobs for Philadelphia residents, officials said. If the project is approved, demolition of the existing site would start in 2026 and construction would begin in 2028.
Parker said she views the arena as a transformative project for Philadelphia that goes beyond basketball
"It has the potential to change the way we think about our city," she said.
