The 76ers are considering New Jersey as the location to build the team's new arena after a state agency there sent an incentive-laden pitch to Sixers' ownership this week enticing them to build on the Delaware River waterfront in Camden.
The letter was sent Tuesday by Tim Sullivan, CEO of the New Jersey Economic Development Authority, to Tad Brown, CEO of Harris Blitzer Sports & Entertainment, which own the 76ers. It broadly details creating a "world-class arena" as part of a larger residential and commercial development in Camden, and sweetening the deal with as much as $800 million in tax credits.
The Sixers have proposed constructing a $1.55 billion arena on East Market Street, and until this letter the team had been singularly focused on building in Center City, at least publicly. Negotiations are ongoing between the team and Philadelphia officials, 76ers spokesperson Molly Mita McEndy said, but, "The reality is we are running out of time to reach an agreement that will allow the 76ers to open our new home in time. ... As a result, we must take all potential options seriously, including this one."
Last week, Mayor Cherelle Parker's office released the impact studies for the 76ers' arena proposal on East Market Street, which included details about at least 11 pieces of legislation that would need to be introduced and passed to enable the arena's construction.
The Sixers have said these enabling bills need to be in place by the end of 2024 to be on track to open the 2031 NBA season at the new arena.
New Jersey's interest in luring the Sixers to Camden — where the team has its practice facility and offices — became public in July when Gov. Phil Murphy confirmed state officials had discussed alternatives to building in Philadelphia with team owner HBSE. Murphy is among the politicians and state officials cc'd on Sullivan's NJEDA letter.
NJEDA is an independent state agency that promotes job growth and investment to grow the state's economy. Sullivan outlined for Brown a vision for a mixed-use development on the 16-acre property that formerly was the Riverfront State Prison, north of the Benjamin Franklin Bridge. The prison was built in the 1980s and closed in 2009.
"Anchored by a world-class arena, we believe that this project will enable development of significant residential, commercial, and retail offerings within the City of Camden," Sullivan wrote. "We also recognized the importance of incorporating open space and pedestrian-friendly amenities into this potential game-changing development project for our state."
Those opposed to the arena project in Center City see New Jersey's offer as ploy the Sixers could use to accelerate their original plans.
"Threats to move are a classic gambit to scare politicians into giving billionaire team owners what they want," Mohan Seshadri, a member of the Save Chinatown Coalition, said in a statement Tuesday. "We know Mayor Parker won't be bullied."
New Jersey has been unable to attract development to the former prison site since the facility closed. The state is hoping that its Aspire program, a tax-incentive system created in 2020, will entice the Sixers. Building on the state-owned land would present the Sixers with chances to obtain two tax credits, each worth up to $400 million, for the arena and supporting infrastructure.
State officials also say they would work with the New Jersey legislature to approve up to $500 million in special-purpose bonds paid for by ticket surcharges, revenue from parking and concessions and fees.
In the letter, Sullivan said the financing would be structured so that New Jersey taxpayers would be "more than paid back for their investment via incremental state, county and local tax revenues." NJEDA still anticipates the Camden development would be "privately-led" by the Sixers, who have pledged to pay for their proposed arena in Philadelphia.
HSBE also owns the New Jersey Devils, that team's arena, the Prudential Center in Newark, and the historic Loew's Theater in Jersey City's Journal Square. The cost of the redevelopment of the theater has snowballed from the initial estimate of $72 million to about $105 million and raised questions about the city's financial commitments to the project.
"I am confident that as you identify potential locations for the new home of the 76ers, you will find no better partner than the State of New Jersey and the City of Camden," Sullivan wrote at the end of his letter. "Choosing Camden as the 76ers' new home will be the best decision you will ever make."
Philadelphia City Council returns to session on Thursday and anti-arena activists from the Save Chinatown Coalition rally outside City Hall in the afternoon.
One of the impact studies released last week concluded that as many as half of Chinatown's small businesses would be negatively impacted by the arena; the proposed site of the area, at Market Street between 10th and 11th streets, currently part of the Fashion District mall, is immediately south of Chinatown.
Another study found that Center City would likely be able to handle the traffic congestion created by an arena, but not without a concerted effort to promote the use of public transportation by fans and a plan to manage parking.