PHILADELPHIA (CBS) — Philadelphia Mayor Cherelle Parker’s office released independent reports Monday night detailing the potential impact of the 76ers’ arena project in Center City.
THE long awaited The reports focus on the community impact, economic impact, transportation impact and design of the proposed $1.55 billion arena, 76 PlaceThe project calls for the building to be located between Market and Filbert streets and 10th and 11th streets, replacing part of the Fashion District shopping mall.
The proposed arena would not result in “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 said.
The EU report also looked at the impacts on businesses and the labour market. Large businesses and corporations could benefit from the arena if transport and security challenges are addressed, the report said, but smaller businesses are “at higher risk” of negative impacts and indirect displacement.
The analysis found that one in five small businesses in Chinatown are expected to benefit from the arena project, while about half would be negatively impacted. The businesses expected to benefit, according to the report, are primarily in the entertainment, food and hospitality sectors.
Only about a quarter of Chinatown small business owners own the properties on which they are located, meaning the vast majority of small business owners are vulnerable to rent increases, the report said.
“Given Chinatown’s tightly knit cultural and social network and the incompatibility of many major businesses with the arena, [proposal] “This could be detrimental to Chinatown’s goals,” the report said. “In other words, Chinatown’s core identity could be significantly diminished or even lost.”
The Defenders of Chinatown have said since the proposal began that the project would harm their community.
The 76ers said the arena would create jobs for the area and include residential unitsincluding some affordable housing.
Members of the Philadelphia Branch of the NAACP said the proposed arena would benefit members of the city’s black community, including employment.
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 member of the Save Chinatown Coalition, said in part: “The lack of calculation of the financial cost of the arena to Chinatown, other neighborhoods, and existing businesses shows how shallow and flawed these documents are. As we continue to carefully review these documents in the days ahead, it is clear that these are not the studies the community has requested or the city needs.”
“Let’s be clear: billionaire developers will be the primary beneficiaries of 76 Place, and these studies are just a red herring to obscure that fact. Don’t be fooled. The truth is that 76 Place will pay no property taxes. The truth is that Black workers’ wages go down when arenas are built,” Rev. Greg Edwards, executive director of POWER Interfaith and a member of the Save Chinatown Coalition, said in the statement.
The Save Chinatown coalition is planning a rally and march downtown on September 7.
A spokesperson for 76 DevCo, the developer of the proposed arena, said in a statement: “We are reviewing what has been released and will have more to say when we are able to complete a full analysis, but it is already clear that they support what we have said since we announced 76 Place: the arena is an appropriate use for downtown and will generate new jobs and significant tax revenue because Philadelphia can accommodate two arenas. Our assumptions about parking and traffic are achievable and these results are further evidence that 76 Place can be developed in a way that protects our neighbors and maximizes the benefits 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 did not participate in the research, which was conducted by independent third parties, according to the city. Taxpayer money was not used to fund the research, the city said.
The Parker administration and key stakeholders will now consider next steps related to the proposal, according to a statement from Parker’s office. A form for the public to share their comments is available on the city’s website in English, Chinese and Spanish.
Read all reports on the city’s website.
Other findings
As for the design, the consultants said the new arena is appropriate for the downtown area and they believe arenas benefit downtown areas by attracting crowds.
The report notes that the project does not include an open public space like other arenas in the city. It says having a plaza would be an asset to the city and provide a venue for large gatherings before and after events.
As for the economic impact, the consultants estimate 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 says the Wells Fargo Center would be negatively impacted, but the Philadelphia market could support two arenas and both arenas would be financially stable.
On transport, to encourage people to use public transport, the report says every ticket should include a transport pass and large-scale bicycle parking should be provided.
Traffic would be manageable if no more than 40 percent of attendees drove to the arena, the report said, but more cars would cause congestion.
Could the Sixers leave Philadelphia?
Earlier this summer New Jersey Governor Phil Murphy State leaders confirmed that state leaders are having a “serious conversation” with the Philadelphia 76ers to try to persuade the team to build its new stadium, 76 Place, in the Garden State. In response, the Sixers told CBS News Philadelphia that 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 Governor John Carney He also posted on social media that the team was being asked to build an arena in Wilmington.
This is a developing story and will be updated.
