Sixers offer $50M in community benefits to build Philadelphia arena
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A rendering of the Sixers' proposed arena. Rendering: Courtesy of City of Philadelphia/Gensler
The Sixers could ante up $50 million to Philadelphia for investments and other pledges in exchange for building a new downtown arena, per terms of a deal Mayor Cherelle Parker unveiled on Wednesday.
Why it matters: Plans to build the $1.5 billion arena and residential tower at 10th and Market Streets are accelerating amid neighborhood opposition.
Driving the news: Parker revealed details about the community benefits agreement she negotiated with the 76ers, and draft legislation required for the project to move forward, at a news conference Wednesday.
- The deal would keep the team in the city for at least 30 years, and net Philadelphia $6 million annually in payments in lieu of property taxes.
Context: The announcement comes after Parker endorsed the arena project for the first time last week.
The intrigue: Parker has maintained tight control over negotiations with the Sixers, but the power now shifts to City Council to determine the proposal's fate.
- On Oct. 24, Parker is expected to deliver the council nine bills and two resolutions necessary for the project, like zoning changes and property transfer approvals.
- That would then kick off weeks of debates, hearings and negotiations that could lead to final votes before the end of the year.
Meanwhile, opponents and supporters of the project are expected to scrutinize the agreement and lobby lawmakers.
What they're saying: "I am proud that I have made my decision and negotiated an agreement to ensure that our Sixers are staying home," the first-term mayor said in a released statement.
The other side: Vivian Chang, a member of the anti-arena group Save Chinatown Coalition, urged "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," per a statement.
Follow the money: According to the city's agreement with the Sixers, the $50 million includes:
- $7 million to fund extended-year schooling.
- $4 for security improvements around the arena, such as cameras, lighting and a new police substation.
- $3 million for a lending fund to support Chinatown small businesses.
Plus: The agreement includes goals around hiring a diverse and local workforce.
Zoom in: The Sixers are privately funding the project without local tax incentives. But that could change, per the agreement.
- Current Sixers ownership could become eligible to receive tax breaks if the city subsidizes certain competing arena developments during the 30 years of the deal.
1 cool thing: The Sixers expect to submit a bid for a WNBA team in Philly, per the agreement.
Timeline: If approved, crews could start demolishing part of the Fashion District in 2026, with construction beginning in 2028.
- The arena could open in the fall of 2031.