Philly Sixers Arena: How the Center City proposal fell apart

To lure the team, the state offered up to $800 million in tax credits.

The Sixers, who insisted they needed legislative approval by the end of the year, said in a statement that while their priority was to build downtown, they needed to “take all potential options seriously, including this one.”

Two weeks later, Parker broke his silence in a pre-recorded video posted to social media.

From her office on the second floor of City Hall, the mayor announced that she supported the arena and that the city and the team had reached a “historic” deal that would keep the Sixers in Philadelphia.

“This is a historic agreement,” Parker said. “This is the best financial deal ever made by a Philadelphia mayor for a local sports arena. And I believe wholeheartedly that this is the right deal for the people of Philadelphia.

The video came a week after Parker chaired a lively community meeting filled with opponents and supporters of the arena proposal. Although she did not take a position that evening, political observers expected her to support the arena given her close ties to the city’s building trades, the first group to support her candidacy for mayor and a major contributor to his campaign.

After the mayor’s announcement, things moved quickly.

A week later, Parker held another community meeting to detail the city’s deal with the Sixers.

Inside the Pennsylvania Convention Center, she said the team would stay in the city until at least 2061. As part of the deal, the team would contribute $50 million to a community benefits agreement and about $6 million a year in PILOTS – payments in lieu of taxes –. to the city and its school district.

The agreement also included an economic opportunity plan designed to ensure a diverse workforce, including women and minorities, would benefit from the investment.

If there were questions about Parker’s position on the project before the meeting, there were none afterward.

“Anyone who has a problem with what’s in this deal, they don’t have the Philadelphia 76ers as the bad guys here anymore. My name is Cherelle L. Parker. I am the 100th mayor of the City of Philadelphia. I am proud and take full responsibility for what is included in this agreement,” Parker said.

Parker told the room that his administration will forward the enabling legislation for introduction at the official Oct. 24 City Council meeting.

Sticking points in the Sixers arena

During a raucous meeting marked by boos and loud chants for and against the arena, Councilor Squilla introduced a package of bills on behalf of the administration that included 11 ordinances and two resolutions.

Part of the package contained zoning and planning approvals. Other measures included an existing neighborhood improvement district and financing agreements related to the Fashion District shopping center.

Squilla also introduced two arena-related bills, including two ordinances designed to help protect Chinatown during construction and beyond.

“This will be a robust dialogue to ensure that the final product represents what the City of Philadelphia looks like demographically and, more importantly, addresses the issues and concerns of the District Councilor,” the council president said Kenyatta Johnson after the meeting.

Before voting, lawmakers would hold a series of all-day hearings focused on the Sixers’ arena proposal and the team’s deal with the city. The hearings would also give the public the opportunity to express support or opposition to the project.

Most lawmakers hadn’t yet taken a stance on the arena, but it seemed like Parker and the Sixers had a good chance of getting what they both wanted: the green light for a new downtown arena -city.

In mid-November, the City Council began hearing testimony from various stakeholders, including the Parker administration, the Sixers and SEPTA.

Lawmakers questioned team officials during two hearings, focusing largely on the value of the community benefits deal and the lack of funding allowing SEPTA to expand its rail service to accommodate fans before and after the matches.

Several lawmakers told the team that $50 million was insufficient for a CBA, in part because they did not provide enough funds to provide protection for Chinatown, the community closest to the proposed site.

Council members also chastised the representatives after learning that the team was still negotiating with SEPTA over the cost of providing additional trains to fans who chose to use the authority’s regional rail lines to return home after the matches.

In the midst of the financial crisis, SEPTA announced plans to raise ticket prices and make severe service cuts. Officials would later testify that there was no way the authority could afford to expand the service.

“Here we are, we’re ready to figure out what we’re going to do here, and some of these things really should have been figured out,” said council member Cindy Bass.

Both issues emerged as sticking points as lawmakers continued to consider the proposal while listening to testimony from supporters and opponents, who each got another chance to make their point.

“We can’t be NIMBYs – not in my backyard.” You don’t get growth that way. You get growth by being bold. And the future always benefits those who are bold,” said Ryan Boyer, business director of the Philadelphia Building and Construction Trades Council.

John Chin, executive director of the Philadelphia Chinatown Development Corporation, an influential organization within the city’s Chinese community, told council members that neither the enabling legislation nor the city’s broader agreement with the Sixers contained enough protections for the neighborhood.

To preserve Chinatown, he said, the neighborhood needed a combination of strong cultural and economic development plans.

“I don’t see any of that,” Chin said. “It’s barely a mitigation plan.”

The saga continues

As the hearings unfolded, lawmakers continued to negotiate behind closed doors with the Sixers on various issues, including the value of the community benefits agreement. At the second hearing, team officials reversed course and told council members they would be willing to increase funding.

Time is running out to move the project forward before the end of the year, and it appears both sides are struggling to reach an agreement, which Johnson wanted to have in hand before calling for a vote.

An initial vote was delayed twice because negotiations lasted hours.

“We’re still in the process of responding to members’ issues and concerns and hopefully we’ll finish that tomorrow,” Johnson told reporters a day before the final city council meeting of 2024.

The next day, the deal was done.

The vote: 12-4.