City Council's approval of the planned 76ers arena in Center City on Thursday will set in motion a long path ahead toward building the $1.3 billion project on East Market Street. City leaders who voted in favor of the proposal hope the development will revive one of Philadelphia's historic commercial corridors, but there are many steps that need to be taken before the team projects to debut the arena in 2031.
After the legislative package passed, Councilmember Mark Squilla (D-1st) reflected on the hearings that were held over the past month and looked ahead to what comes next for the project in his district.
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"This was a complicated process," Squilla said. "We have a lot of strong feelings on both sides of the argument, and I think passion shows through. When people have passion, that means they care. That's what we want with our residents and the people of the city of Philadelphia. And the concerns are still legitimate."
Squilla listed a number of steps council will need to take in the year ahead.
"We've got a lot of work to do," he said. "We've got to build the arena authority that we created. We have to set up the transportation plan. We've got to work on the public safety plan that's going to be set up because of the (community benefits agreement)."
SEPTA called the project "a massive new investment" that will require a strong public transportation system to meet the demand created by the arena.
"We will continue working with all stakeholders to ensure SEPTA is positioned to provide safe, clean and reliable service through construction, the arena opening, and beyond," spokesperson Andrew Busch said.
For the 76ers, one of the first steps ahead will be closing on a deal to purchase the portion of the Fashion District mall and other surrounding parcels where the arena will be built. The team declined to comment Thursday on its timeline to buy the site, which stretches from 10th to 11th streets and from Market Street north to Cuthbert Street. The land ultimately will be donated to the city and leased by the team for $6 million annually over 30 years — an arrangement made in lieu of paying property taxes.
"As council, we did our job up to this point and now the ball is in their court to see what happens," Squilla said.
Parker celebrates arena deal
At a news conference Thursday afternoon, Mayor Cherelle Parker praised City Council for its work negotiating the arena deal.
To get the project across the finish line in City Council, Parker committed to budgeting an extra $20 million — on top of the 76ers' $60 million community benefits agreement — for affordable housing preservation and development in Chinatown. The arena plan also will require 50% participation from minorities in the venue's construction and operations.
For months, the Parker administration touted the arena as a rare private investment that would not require any public subsidy from the city. Squilla said the city's promise to fund affordable housing showed Parker's willingness to negotiate for the benefit of Chinatown.
"Whether you consider it a subsidy, the mayor wanted this project to move forward, and council believed that we needed more of an assurance for displacement concerns," Squilla said. "The mayor stepped to the table and did that. Is it a subsidy for the city, or is it the mayor saying, 'These concerns are real for them?'"
Parker said the $20 million is part of a citywide housing initiative that she plans to unveil early next year.
She said, "$20 million is taxpayer dollars, but we are going to be making significant investments in housing here."
Councilmembers Kendra Brooks and Nicolas O'Rourke, of the Working Families Party, were critical of Parker ahead of Thursday's vote for including the extra money.
"This is not part of a CBA, but rather giving developers an out from their responsibility to mitigate the harm caused by their own project," the council members said in a statement.
Councilmember Jeffery Young Jr. (D-5th), who voted against the arena project, said the deal fell short of its goal to ensure that communities benefit from the project.
"I think that when we allow corporations to basically create the deal, I don't think that that is always in the best interests of the residents of the city of Philadelphia," Young said.
Council President Kenyatta Johnson (D-2nd) said the 76ers' proposal was too great of an investment for the city to overlook because most sports venues in the United States require significant public funding.
"This $1.3 billion investment had to move forward," he said. "If we would have turned down this particular deal, we would have been fools."
Chinatown coalition reels and regroups
The arena vote marked the culmination of more than two years of resistance from community members in Chinatown and their allies opposed to the project. Organizers of the No Arena in Chinatown coalition said more than 30 protesters were arrested by the Philadelphia Sheriff's Office on Thursday morning as arena opponents held a sit-in and accused council members of selling out city residents.
"It's been an awful process," Mohan Seshadri, a coalition organizer and executive director at the Asian Pacific Islander Political Alliance, said after Thursday's vote. "We just saw so many of our community advocates and organizers violently dragged out of council for trying to make their voices heard."
The Philadelphia Sheriff's Office did not respond to questions about arrest numbers and whether the protesters will face charges.
Seshadri said the coalition will continue to fight against the project and advocate on behalf of vulnerable communities.
"This CBA is a slap in the face to anyone who even pretends to care about SEPTA, about education, about safe and affordable housing and communities," Seshadri said.
The coalition is working with the Asian American Legal Defense and Education Fund and the American Civil Liberties Union to explore their options moving forward, but no specific plans for a lawsuit were shared Thursday.
Squilla said City Council will maintain dialogue with communities that have been against the project and will consider proposals to further help people impacted by the development.
"Our communications will stay open and council will still be willing to work with all of the stakeholders in the process," he said. "And if we need to introduce additional legislation for some additional concerns that we find out afterwards, we'd be willing to do that to work in the budget process to make it happen."
Philadelphia Chinatown Development Corp. Executive Director John Chin expressed doubt that the arena plan will benefit the neighborhood, protect its residents from displacement, and prevent gridlock traffic from overwhelming Center City. Asked whether his community can build trust with the 76ers, Chin struggled to answer.
"How can we trust them? I don't know," Chin said. "This is really a question for the 76ers. They clearly have heard and seen the harsh reaction of people who want to protect Chinatown. At the same time, I think the amount of money that should have come to Chinatown for its protection didn't materialize."