December 21, 2023
Source/Philadelphia 76ers
The impact studies on the Philadelphia 76ers' arena proposal will be released in 2024, pushing back the timeline the city previously had for their findings to be made public.
The studies on the impact of the proposed 76ers arena on Market Street will not be released until next year, when incoming Mayor Cherelle Parker's administration will be in place, city officials said Thursday. The findings had been expected before the end of 2023.
The release of two studies – the economic analysis and the community impact assessment – have been delayed until undisclosed dates. The arena's design also is being vetted by outside consultants, who are supporting the city's planning commission, but their work will not result in a formal report.
The $1.55 billion plan, announced by the Sixers in July 2022, would replace a portion of the Fashion District Mall on Market Street. The Sixers have committed to privately financing the arena and have touted the development — which also includes a residential tower — as a pivotal investment in the revival of Market East.
The project has faced considerable pushback from Chinatown residents who say it will threaten the preservation of the neighborhood and create quality of life issues during the construction phase. The team has promised a $50 million community benefits agreement designed to address the concerns of Chinatown and other communities.
The studies are not meant to provide recommendations about whether the arena should move forward, but produce reports on various scenarios analyzed by the consultants, city officials said.
"Comprehensively evaluating a proposed project of this size is an enormously complex and multifaceted process," Mayor Jim Kenney said. "As we've said, for a proposal of this scale, it is critical that we do our due diligence right and that has taken time, intentionality and care. We expect the reports to be finalized in the new year, and our administration will do everything possible to ensure a seamless transition with the incoming administration to make sure they have the information they need."
The impact studies were commissioned in April and got underway over the summer. Consultants were chosen by the Philadelphia Industrial Development Corp., a public-private economic development agency that helps evaluate and oversee large projects in the city.
Last summer, the 76ers drew criticism for setting up a blind fund for PIDC to cover the cost of the consultants, leading some to question the independence of the analyses. The team and city officials described this financial arrangement as standard practice for large projects, insisting the 76ers would not have any direct influence or involvement in the studies.
On Thursday, Amanda Conte, a spokesperson for the Sixers' development arm, said the team is not pressuring the city to release the studies before the reports are ready.
"76 DevCo appreciates that the city is taking the time necessary to complete the due diligence process associated with the third-party studies," Conte said.
The Save Chinatown Coalition, which has organized opposition to the arena, said the timing of the reports is not its focus.
"The studies 76 Place developers are paying for are more about justifying the arena than analyzing it, and the public has no reason to trust them regardless of when they're released," said Mary Yee, head of the coalition's planning committee.
The coalition criticized the "biased nature" of the studies and said many outside experts are dubious of the benefits of building an arena at the proposed location.
"We hope folks in the Planning Commission, SEPTA, PennDOT, OTIS and PIDC will continue to ask hard questions and do the right thing to identify a more suitable and practical location," Yee said.
Parker hasn't yet committed to a position on the 76ers arena. Her mayoral campaign received considerable support from the city's building trades unions, which have backed the project. Days after Parker won November's mayoral election, she signaled that her view on the project will take into account the overall benefit to Philadelphia.
"I will make sure that the voice of the people in neighborhoods throughout the city are heard on that issue," Parker said. "There will be no one voice that will dominate the discussion. The community matters there. But that is the community citywide."
How much the impact studies will influence the fate of the arena project remains to be seen.
The city's economic analysis is evaluating construction costs, projected revenues and expenses, and tax revenues associated with construction and operations. It also is looking at the project's financial feasibility and comparing it to other venues that have been built for professional sports teams.
The community impact assessment is analyzing the cultural, economic and environmental conditions in Chinatown and surrounding neighborhoods, as well as the history of large-scale development in the area. The study includes a traffic analysis for the arena – an issue that has drawn the concern of arena opponents. The Sixers seek to start construction in 2026 and complete the arena in 2031, when their lease expires at the Wells Fargo Center.
Consultants for the community impact study held an online community meeting on Nov. 8 and an in-person community meeting the following day that was convened by the Philadelphia Chinatown Development Corporation. The city published some of the community impact research that was presented at those meetings.
Over the last several months, the 76ers have pointed to findings from their own consultants about the feasibility, economic impact and community benefits of the proposed arena. The 76ers claim the arena will generate $1.5 billion in new tax revenues for the city and state by drawing more events to Center City, in addition to NBA games. The team also says the arena site — above SEPTA's Jefferson Station — will encourage more fans to use public transportation to attend events while nearby parking lots accommodate those who drive.
The delayed release of the impact studies comes amid multiple efforts to obtain records of the city's communications surrounding the planning and evaluation of the arena proposal. The city's law department has denied more than 100 Right-to-Know requests that have sought to make public certain information and communications about the city's process for the project.
On Monday, the Civic Design Review committee, which evaluates the design and other features of development proposals in Philadelphia, held its first public meeting on the proposed arena. The meeting came at the request of Councilmember Mark Squilla, whose First District covers the proposed arena site. In September, Squilla said he anticipated legislation for the arena would be drafted before the end of this year and that it would be shared with community members at least 30 days before a bill is introduced.
Based on the feedback of Monday's meeting, the Sixers will revise the proposal and return to the CDR for a meeting on their master plan. The meeting's date has not been set.
Conte said the team will welcome the release of the impact studies and incorporate the feedback into their proposal.
"We look forward to reviewing the studies and recommendations when they become available," Conte said.
