Philadelphia 76ers announce new agreements for proposed $1.3 billion arena

Philadelphia 76ers announce new agreements for proposed $1.3 billion arenaPhiladelphia 76ers announce new agreements for proposed $1.3 billion arena
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The Philadelphia 76ers’ development team, 76 Devcorp, recently announced the new agreements it plans to make with Philadelphia on its proposed $1.3 billion arena.
What you should know: The proposal for the Sixers’ arena, 76 Place at Market East, which was announced in July last year, has been strongly opposed by the Chinatown community, whose members have cited concerns of displacement, parking and traffic congestion, gentrification and the decline of Chinatown culture.
Recent development: Announced in a statement on Thursday, 76 DevCorp revealed details of the agreements “to be included for consideration in the city’s due diligence process and the studies it has commissioned.”
In the statement, Sixers co-owner and lead developer David Adelman said the new arena will serve as “an exciting new home” for the basketball team and also benefit “the city, including its neighbors in the Fashion District, Jefferson, Chinatown, Midtown Village and Washington Square West, area businesses and workers.”
We have been clear since this project was first announced: we are committed to making 76 Place a win for the team, our fans and the city,” Adelman added.
About the agreements: As mentioned in the statement, the 76ers said they are prepared to buy the land needed for the arena using private funds. They will then convey this land to Philadelphia at no cost.
“Public ownership of the land will give the city more influence over the arena design; power to enforce the largest legally binding Community Benefits Agreement (CBA) in the history of Philadelphia; and ensure arena access for community events and emergency services,” the statement explained.
After conveying the arena site to the city, the area will no longer be part of the existing tax increment financing structure, which is set to expire in 2035.
“This will result in significant incremental tax revenue for the city and School District during this time period and beyond,” the statement explained.
Lastly, 76 DevCorp declared that a PILOT (payment in lieu of taxes) will be created. The new Sixers arena will supposedly generate new tax revenues “totaling $200M for the School District of Philadelphia and $800M for the city until the end of the 30 year lease term.”
“Unlike other venues across the country whose payments go to publicly finance those arenas and stadiums, 76ers’ PILOT payments will go to the City,” the statement explained.
Other details: In addition to the agreements, 76 DevCorp shared that there will be “exciting announcements about the project including additional information about community meetings and opportunities for community engagement” in the coming weeks.
The development team also mentioned that it has “been on a listening tour” and has conducted over 50 meetings about the arena with government officials, community leaders, employees and neighbors.

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