Bills on proposed new Sixers arena advance in Philadelphia City Council
Bills that would allow the 76ers to build a new $1.3 billion arena in Center City were passed on Thursday out of a Philadelphia City Council committee, including a $60 million community benefits agreement.
It was another raucous day in Philadelphia City Council chambers, filled by both supporters of the proposed 76 Place and critics concerned about how the arena, if built, would impact the adjacent Chinatown neighborhood.
The bills passed out of council's Committee of the Whole Thursday morning after the vote was tabled Wednesday. The bills will need to pass a second council vote next week.
The proposed arena site, bounded by 11th, 10th, Filbert and Market streets, would replace part of the Fashion District Philadelphia mall and a now-shuttered Greyhound bus terminal.
Initial plans to include a high-rise housing component were later scrapped.
Plans were met with opposition from Chinatown business owners and community groups, who argued the arena would cause gridlock and lead to many businesses being priced out due to rising rents.
The vote to pass the measure was 12 to 4, with one member absent.
""We appreciate City Council advancing these bills. This is an important next step in building 76 Place. We are reviewing the amendments that were added today to ensure they align with our understanding of our agreement with the City," the Sixers spokesperson said in a statement.
Councilmember Jamie Gauthier was one of the four no votes.
"I think there is a world where we could have had a downtown arena and a thriving Chinatown," Gauthier said after the vote, "but the thought to protecting Chinatown was not in that community benefits agreement."
The No Arena Coalition said in a statement that council "collapsed their own deal and were raided by billionaires and developers."
"It was shocking to see Council leadership declare a bottom dollar figure of $100 million, and completely capitulate to pressure less than 12 hours later. We have wasted months of time and countless hours of hearings, for barely any change in a deal that was written by the developers more than two years ago. It's an embarrassing indication of the lack of strategic and tactical skills from a largely rookie Council who got played," the statement said.
The Sixers have said they plan to have the arena up and running for the 2031-32 NBA season.
Community benefits agreement for Sixers arena
To address those concerns, councilmembers deliberated about having the Sixers fund a 30-year community benefits agreement that includes a grant program to businesses that the arena would impact. Groups like the Philadelphia Chinatown Development Corporation had lobbied for that agreement to amount to $163 million, and others went as high as $300 million, a number proposed by councilmembers Kendra Brooks and Nicolas O'Rourke.
Council floated a $100 million agreement Wednesday, but by Thursday, a version of the agreement showed it was cut to $75 million.
According to an email from councilmembers Rue Landau and Gauthier, the arena bills passed out of committee with a CBA cut even further to $60 million. Those members voted against the legislation and said they would likely vote no again when it's up for final passage, barring significant changes.
The final agreement allots $33 million to Chinatown and adjacent neighborhoods and $27 million for citywide investments. Among the investments are $3 million to subsidize and incentivize SEPTA and PATCO's use of arena events, $2 million in grants for legacy Chinatown businesses, and $17.5 million in funding for an Arena Special Services District.
"City Council proposed a strong $100 million Community Benefits Agreement with extensive anti-displacement measures created with input from community leaders. It is deplorable to learn the 76ers and their billionaire owners think our communities are worth only $60 million over 30 years. They recently gave a single athlete $193 million over 3 years," the councilmembers said in a statement.
Some councilmembers claimed Mayor Cherelle Parker threw in an extra $20 million at the last minute to be used exclusively for affordable housing in Chinatown. It's unclear where that money is coming from.
Councilmember Mark Squilla, whose district includes the land where the arena would be built, spoke about the final CBA total after the council voted.
"Wel,l obviously, we always wanted more resources, but the mayor stepped up and gave an extra $20 million for affordable housing in the Chinatown community. So a total of $80 million, I think most people were, we always wanted more, but most people were satisfied," Squilla said.
After the meeting, some demonstrators carried handwritten signs reading "$60 million is a sellout." Others read "who's happy with this deal?" with a picture of the Monopoly mascot.
"Today what happened at City Council was a disgrace," said Chinatown business owner Xu Lin. "It was a disappointment, it was a betrayal. It was a bad deal," he added. "Arenas, stadiums will only make billionaires richer."
Brooks and O'Rourke issued a separate statement calling it a "sellout deal."
Mohan Seshadri, executive director of the Asian Pacific Islander Political Alliance, said before Thursday's vote that council should continue hashing out a higher community benefits agreement.
"They should fight for a deal that's better for Philly, or they should do what they want to do which is go on vacation. And then come back around in 2025, do the due diligence, do the analysis, figure out what communities around the impact zone of the arena actually need, and then win a deal that would actually protect the local communities," Seshadri said.
"What happened today at City Council was a disgrace. It was a disappointment. It was a betrayal," Xi Lin, a business owner in Chinatown, said.
Save Chinatown Coalition members shared their disappointment with councilmembers, especially over the community benefits agreement meant to help the neighborhood with the impact of the nearby arena.
Trade unions, mayor back massive construction project in Market East section of Philadelphia
Thursday's decision was a win for the Parker administration and the powerful Philadelphia building trades unions.
"I think there was a lot of misinformation being spread around the opposition, and if they fully understood the project, they would have different thoughts," said TJ Lepera, electricians union IBEW Local 98's political director.
Lepera shares how he thinks union members are feeling.
"They're just thankful that the city has a bright future and thankful to the mayor and all her hard work and city council, we believe made the right decision today," he said.
In a statement Thursday afternoon, Parker called it a "monumental action on this $1.3 billion economic development project for Philadelphia that, as I have consistently said, extends far beyond the basketball."
She went on to thank every councilmember who voted for the proposal by name.
Concerns raised about traffic, SEPTA impacts
The bills were voted on after several hearings where residents raised concerns about how the arena would impact traffic, parking, and public transportation in the areas around the Market East section of Center City.
An impact study examining traffic and parking found the arena would cause gridlock at several major intersections if more than 40% of fans on game nights drove to the event. Another 40% of visitors would have to take public transportation while another 10% would use rideshares like Uber and Lyft, the remaining 10% would walk or arrive some other way.
"The final deal does not do enough to offset the harm the arena will inflict on Chinatown, Washington Square West, the Gayborhood, and communities across our city. The failure to produce a serious traffic plan threatens the future of the entire Chinatown neighborhood, as well as the lives of patients who rely on Jefferson's Level 1 Trauma Center," Gauthier and Landau's statement said.
It remains unclear who will pay for the additional SEPTA services needed once the arena is up and running. When councilmembers pressed the Sixers representatives on the issue, they said they would remain in talks with SEPTA but would not commit to additional funding for future operational costs.
Later Thursday night, people against the arena drove cars around City Hall to create traffic, something they say will be a major issue if the arena is built.
"This is one of multiple demonstrations that you are going to see over the next week raising awareness and calling attention to say this is a really bad deal for Philly," Seshadri said.
