Exciting news broke at a public meeting at the Convention Center on Wednesday night when Philadelphia Mayor Cherelle Parker revealed the city’s proposed agreement with the 76ers to construct a new arena on East Market Street, along with a $50 million community benefits agreement.
Mayor Parker, who recently gave her endorsement to the project, hailed the deal as a “historic” pact that will bring more resources to Philadelphia than any previous sports facility in the city’s history. In addition to the Sixers’ $1.55 billion private investment to build the state-of-the-art 18,500-seat arena without any city funds, Parker emphasized that the community benefits agreement includes programs aimed at protecting Chinatown.
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“These programs will help kickstart a city-led focus on Chinatown that we have never seen before,” said Mayor Parker.
The proposed arena on Market Street, which is set to replace part of the Fashion District mall between 10th and 11th streets, is still pending approval from the City Council. The Parker administration has prepared a legislative package containing 11 ordinances and resolutions that must be passed by the year’s end to keep the project on track for completion by August 2031. These bills will be officially presented to City Council for introduction on Oct. 24, providing 30 days for all stakeholders to review the proposal.
While some opposition to the project has surfaced concerning its impact on surrounding neighborhoods like Chinatown and Washington Square West, Mayor Parker and her team detailed the $50 million community benefits agreement, with $25 million allocated for programs in neighborhoods directly affected by the arena and another $25 million for citywide initiatives. The money will largely be spent in the first 10 years of the project, with $15 million designated for use in the six years leading up to the arena’s completion.
“We need immediate assistance,” Parker stressed. “We’ve arranged to front-load the funds so we can put them to good use right away.”
Notably, the community benefits agreement will be enforceable by the city and binding on the 76ers, even if the team undergoes a change in ownership during the 30-year agreement.
Key features of the agreement include the establishment of a $3 million small business lending fund to support and grow Chinatown businesses, along with a city-led campaign to raise an additional $10-$15 million. There will also be $1.6 million earmarked for grant funding to aid businesses affected by the arena’s construction, while $2 million will go towards supporting businesses and entrepreneurs through a program run by the Community College of Philadelphia.
To encourage the use of public transit for event attendees, the agreement includes $3 million to subsidize SEPTA and PATCO rides. An additional $1 million will back master planning efforts to address concerns about traffic, parking, and quality-of-life issues in surrounding neighborhoods, along with $1.25 million for cleanliness initiatives.
For security, $1.45 million will be allocated for the installation of 21 CCTV cameras near the arena, with another $1.5 million going towards setting up a new neighborhood security substation staffed by public safety officials from various agencies.
The CBA also boasts funding for internship programs, community use of the arena on five days per year, and annual funds to support the upkeep of city recreation centers.
Land-lease agreement details
Similar to the arrangement at the Sports Complex in South Philadelphia, the arena land will be leased from the city by the 76ers, sparing the team from having to pay property taxes. This marks a departure from past constructions in the city, which typically utilized public funding for site preparation and infrastructure. City officials emphasized that this transaction with the 76ers involves no local public funding.
As part of the land-lease agreement, the Sixers will make annual payments to the city, estimated around $6 million. This sum surpasses the amounts paid by other sporting venues in the city, with the Wells Fargo Center, Lincoln Financial Field, and Citizens Bank Park paying significantly less.
Mayor Parker defended the city’s decision to embrace the 76ers’ investment on East Market Street. She highlighted the need to manage city resources prudently to enhance Philadelphia’s fiscal outlook, attract investments, create job opportunities, and chip away at poverty rates in the city.
The city anticipates that the project will yield $708 million in tax revenue over 30 years, with a lump sum equivalent of $245 million today. The School District of Philadelphia stands to receive $153 million over the same period, or $52 million immediately.
If approved, construction of the arena is expected to commence in 2028 after demolition begins in 2026. The project is projected to bring about 1,000 new jobs to the area and prioritize minority-owned businesses and local employees in its workforce.
Mayor Parker envisions the arena as a transformative undertaking that extends beyond basketball, believing it could reshape perceptions of the city for the better.
“It has the potential to change the way we think about our city,” she remarked.