Proposed Philadelphia 76ers arena could damage Chinatown, community impact report shows
PHILADELPHIA (CBS) — Philadelphia Mayor Cherelle Parker's office released independent reports Monday night detailing the possible impact of the proposed 76ers arena in Center City.
The long-awaited reports focus on the community impact, the economic impact, the transportation impact and the design of the $1.55 billion proposed arena, 76 Place. The plan is for the building to sit between Market and Filbert streets and 10th and 11th streets, replacing part of Fashion District Philadelphia.
The proposed arena would not "lead to direct housing displacement," but it could indirectly displace people by accelerating "gentrification and loss of cultural identity in Chinatown," which is just north of the potential location, the report says.
The community report also examined the arena's effects on business and the labor market. Large and corporate businesses could benefit from the arena if transportation and safety challenges are met, according to the report, but small businesses are "at a greater risk" of negative effects and indirect displacement.
The analysis found that one in five of Chinatown's small businesses is expected to benefit from the proposed arena, while about half would see negative effects. The businesses that are positioned to benefit, according to the report, are primarily in the entertainment, food and hotel sectors.
The report says that only about a quarter of small business owners in Chinatown own the properties on which they're located, meaning the vast majority are vulnerable to rent increases.
"Given Chinatown's tightly interwoven cultural and social network and the incompatibility of many important businesses with the arena, the [proposal] may negatively interfere with Chinatown's goals," the report says. "In other words … Chinatown's core identity could be significantly diminished or lost."
Advocates for Chinatown have said since the proposal was introduced that the project will hurt their community.
The 76ers have said the arena will create jobs for the area and include residential units, including some affordable housing.
Members of the NAACP Philly branch said the proposed arena would benefit the Black community in the city, especially in terms of jobs.
The community impact report was compiled by BJH Advisors and Sojourner Consulting in partnership with Urban Partners, AKRF, Drs. Susannah Laramee Kidd and Laureen Hom and Creative Development Partners.
In a statement, Vivian Chang, executive director of Asian Americans United and a Save Chinatown Coalition member, said in part: "The failure to calculate the financial cost of the arena to Chinatown, other neighborhoods, and existing businesses tells you how unserious and flawed this paperwork is. As we continue carefully reviewing these documents in the coming days, it is clear these are not the studies the community asked for or the city needs."
"Let's be clear: Billionaire developers will benefit the most from 76 Place, and these studies are window dressing to obscure that fact. Don't fall for it. The truth is 76 Place won't pay any property taxes. The truth is that wages fall for Black workers when arenas are built," Rev. Greg Edwards, POWER Interfaith Executive Director and member of the Save Chinatown Coalition, said in the statement.
The Save Chinatown Coalition is planning a rally and march in Center City on Sept. 7.
A spokesperson for 76 DevCo, the developer of the proposed arena, said in a statement, "We are reviewing what has been released and we will have more to say when we are able to complete a full analysis, but it is clear already that they support what we've said since we first announced 76 Place: the arena is an appropriate use for Center City and will generate significant new jobs and tax revenue because Philadelphia can support two arenas. Our parking and traffic assumptions are achievable and these findings are more evidence that 76 Place can be developed in a way that protects our neighbors and maximizes benefit to Philadelphia."
76 DevCo is a partnership between 76ers managing partners Josh Harris and David Blitzer and Philadelphia business leader David Adelman.
76 DevCo paid for these reports but was not involved in the research, which was done by independent third parties, according to the city. Taxpayer dollars were not used to fund this research, the city said.
Parker's administration and key stakeholders will now consider the next steps related to the proposal, according to a statement from Parker's office. A form for the public to share feedback is available on the city's website in English, Chinese and Spanish.
Councilmember Mark Squilla said Monday that city leaders will make "a decision [about] whether to move forward" this fall.
"If we come up with a way that we can mitigate most of the concerns, I think then the legislation would probably be introduced [to allow the arena to be built]," Squilla said. "I think it gives us work to do now, and I think we're up for that. Let's do the hard work, let's make a decision. And at that point, half the people are going to be mad, and half the people are going to be happy."
Read all of the reports on the city website.
Other findings
When it comes to design, the consultants said the new arena is appropriate for Center City and they believe that arenas benefit urban downtowns by attracting crowds.
The report notes that the design does not have an open public space like other in-city arenas. It says having a plaza would be an amenity to the city and offer a place for large gatherings before and after events.
As far as economic impact, consultants say the arena could host 53 annual ticketed events. The report says the proposed arena would generate about $1.9 billion in direct spending, 710 jobs and $390 million in tax revenue over 30 years of operation.
The economic report states that Wells Fargo Center would be negatively affected, but the Philadelphia market could support two arenas and both arenas would be financially stable.
The report says that to encourage people to use public transit, each ticket should include a transit pass and large-scale bike parking should be planned.
According to the report, traffic operations would be manageable if no more than 40% of attendees drive to the arena, but more additional cars would cause gridlock.
Could the Sixers move out of Philly?
Earlier this summer, New Jersey Gov. Phil Murphy confirmed that state leaders were having a "serious conversation" with the Philadelphia 76ers to persuade the team to build its new stadium, 76 Place, in the Garden State. In response, the Sixers told CBS News Philadelphia the team remains "focused on bringing a state-of-the-art arena to Philadelphia" and hopes to open the facility in time for the 2031-32 NBA season.
Delaware Gov. John Carney also posted on social media that the team is welcome to build an arena in Wilmington.