Chinatown organization calls for Sixers to include $163M in arena deal for business grants, land trusts
The controversial proposal over a Sixers arena at Market East remains in limbo as city councilmembers left a Tuesday committee meeting without a vote on the plan. It was something that arena opponents and Philadelphia Chinatown Development Corporation Executive Director John Chin didn't expect.
"It was a very pleasant surprise that there wasn't a vote yesterday," Chin said.
A continued snag in the proposal is the team's offer of a $50 million Community Benefits Agreement, which multiple lawmakers and detractors of the project say needs to be increased.
"We as a community have been very encouraged by the advocacy, the critical questioning, of the community benefits agreement," Chin said.
Representatives for the Sixers, who testified Tuesday in front of the Committee of the Whole, acknowledged they were willing to discuss increasing the CBA number. Lawmakers say those negotiations are ongoing.
Chin says his goal remains not seeing the arena built adjacent to his neighborhood, but he also acknowledges the real possibility it could be. To that end, PCDC wrote a six-page document laying out what needs to be in the CBA.
The price tag: $163 million — more than triple the Sixers' initial offer.
"If the 76ers are sincere about being good neighbors, that's the number that's really needed to protect the businesses and residents in the community," Chin said.
CBS News Philadelphia was provided a copy of the proposal. It includes a $63 million "Legacy Business" grant program that PCDC officials say would provide up to $30,000 a year to around 105 businesses for up to 20 years that could be impacted by the arena.
There was also a call for the team and city to fund a $100 million "Commercial Land Trust.'" PCDC wrote it would be used to "acquire commercial properties and preserve long-term affordability."
Many other items were listed in the document, including using city land to create a Chinatown parking lot with 500 spaces. There was also a call to "give all public parcels within the Arena Services District to PCDC or a Chinatown Community Land Trust for the development of affordable housing." That includes the transfer of ownership of the former Philadelphia Police Headquarters at 7th and Vine streets, known as "The Roundhouse," for a social housing project.
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"Where these properties are placed into these trusts for affordable rents, in perpetuity," Chin said.
While the Sixers and lawmakers acknowledged talks of increasing the CBA amount were happening, no one could give a clear number of the number they were looking for on Tuesday. Sixers representatives balked at a suggestion from Councilmember Nicolas O'Rourke during the hearing of a $300 million CBA, saying it would be "far beyond what we could do."
On Wednesday, city leaders didn't directly answer questions about the PCDC proposal. Mayor Cherelle Parker, a supporter of the Market East arena, didn't dive into the CBA talks at all.
"To hammer home what an appropriate number is or what an appropriate number is not, I won't do," Parker said.
The first-term mayor instead left that up to City Council. Council President Kenyatta Johnson was also quiet about the negotiations, saying that he and other councilmembers continue discussing the proposal.
Parker has held community meetings twice this week across the city to support the arena. Despite lingering questions and concerns from city councilmembers, Parker said Wednesday she was not moved from her position and believes this is a good deal for Philadelphia.
"This is a $1.3-billion private sector investment that will create loads of economic opportunity that we can do. And we're still working through the process," Parker said.
But time is running short for City Council to come up with an answer on the project by the end of the year. On Tuesday, council opted not to vote on whether to move the project out of committee, which would be the first step in approval, instead recessing until Thursday at 8:30 a.m.
But on Wednesday night, a spokesperson for Johnson said that the Committee of the Whole's Thursday hearing on the 76ers' proposed arena has been canceled and moved to Wednesday, Dec. 11 at 9 a.m.
Councilmember Mark Squilla told CBS News Philadelphia that if the proposal isn't passed out of committee next week, it couldn't be approved by the full council in time for the final scheduled session on Dec. 12.
However, Johnson has previously indicated that he may call an extra session on Dec. 19, providing lawmakers a little more time. For now, stakeholders continue to watch the City Council closely for any movement.
"It ain't over until it's over. So I'm gonna keep eternally grateful through all of it, and hopeful and optimistic," Parker said.
"Vote no to the arena," Chin said. "But if you feel compelled to vote yes, please, please protect Chinatown."
