The City of Philadelphia has publicly released four reports commissioned to study NBA franchise the Philadelphia 76ers’ proposed $1.55bn (£1.17bn/€1.39bn) arena project.
The delivery of the reports, eight months later than originally intended, comes with the Sixers having claimed that legislation on the scheme needs to be introduced in early September in order for the 18,500-seat arena to open on time.
In July 2023, the City announced that three studies would be carried out to assess the impact of an arena for the Sixers. At that time they were due to focus on a community impact assessment, economic analysis and projection, and design services consulting. A traffic, transportation and parking analysis was later added.
The City, in conjunction with its economic development partner PIDC, engaged third-party consultants to understand and to evaluate the proposal. These consultants were selected in the summer of 2023 and commenced work soon thereafter. No taxpayer dollars were used on the studies, which have been funded by 76 DevCo, the company formed by the Sixers to develop the project.
The Community Impact Analysis report, conducted by BJH Advisors, Sojourner Consulting, and AKRF, assessed the potential impacts on neighbouring communities, especially Chinatown, that would result if the arena were built.
The venture has drawn strong opposition from Chinatown residents. The report states that although the project would not cause direct “housing displacement” in Chinatown, an arena could cause indirect displacement through gentrification and loss of cultural identity.
The Design Review Report, carried out by the team of Covergence Design and Philadelphia architects and planners Ian Smith Design Group, focused on how aspects of the proposed design would affect the public and public spaces.
The construction of an arena would be “appropriate for Center City Philadelphia, assuming it is done well,” according to this report. However, concerns were also noted, such as the lack of a public space like an outdoor plaza.
The Economic Impact Analysis review was carried out by CSL, which worked with the City’s Finance office to project taxes associated with construction and operations, analyse financial feasibility, and assess capacity of Philadelphia to support two professional sports arenas.
Its report stated that a new arena would generate around $1.9bn in additional economic activity over the course of its construction and 30 years of operation, leading to $390m in net tax revenue for the city, its school district, and the state.
The adding of a second arena to the existing Wells Fargo Center would generate 53 additional entertainment events a year in the Philadelphia market, according to the study, including 35 additional concerts.
Commenting on the release of the reports, Mayor Cherelle L. Parker, said: “We are sharing these detailed reports so that the public can better understand the implications of such a multifaceted proposed project for Philadelphia.
“Transparency is a core value to me as Mayor, which is why I wanted to ensure these reports were available to all interested stakeholders. These studies are important inputs as I consider this proposal.”
The Sixers first announced plans to build a new arena in July 2022, with 76 DevCo set up to oversee the project. The arena, which will be privately funded, has been given the provisional name of 76 Place and would form part of the Fashion District Philadelphia.
It is hoped the arena will be completed in time for the 2031-32 NBA season. The original timeline for the project foresaw that construction would not begin until 2028, after the necessary approvals, design process and demolition work is carried out.
In June 2023, the Sixers revealed new renderings of 76 Place courtesy of Gensler and CBL Real Estate. The arena’s capacity of 18,500 would be slightly less than Wells Fargo Center, the team’s current home, which holds 20,478 fans.
The Sixers share Wells Fargo Center with NHL ice hockey franchise the Philadelphia Flyers. The arena is owned by Comcast Spectacor and the Sixers’ lease at the facility is due to expire in 2031.
The Sixers are focused on delivering a new arena in Philadelphia, but with local government approval yet to be secured, the team has been courted by the Governors of New Jersey and Delaware, Phil Murphy and John Carney, for potential moves to Camden and Wilmington, respectively.
Responding to the release of the impact reports by the City, 76 DevCo said: “We are reviewing what has been released and we will have more to say when we are able to complete a full analysis, but it is clear already that they support what we’ve said since we first announced 76 Place: the arena is an appropriate use for Center City and will generate significant new jobs and tax revenue because Philadelphia can support two arenas.
“Our parking and traffic assumptions are achievable and these findings are more evidence that 76 Place can be developed in a way that protects our neighbours and maximises benefit to Philadelphia.”
