Philadelphia’s mayor has disclosed the details of an agreement with the city’s professional basketball team for the development of a new $1.3 billion arena in downtown Philadelphia. The deal, finalized earlier this month, stipulates that the Philadelphia 76ers will be responsible for financing the project entirely, with no contribution from the city’s funds. However, the team has agreed to make annual payments in lieu of taxes, averaging $6 million per year. Additionally, as part of the agreement, there will be a $50 million investment in local businesses, surrounding communities, and the city’s schools to offset any negative impacts of the project, as stated by Mayor Cherelle Parker during a news conference on Wednesday night.
Expressing her satisfaction with the decision and the terms negotiated, Mayor Parker emphasized the significance of keeping the Sixers rooted in Philadelphia. City officials further disclosed drafts of nine bills and two resolutions necessary to authorize the project, allowing for the city’s acquisition of the arena property and adjustments to zoning regulations. Mayor Parker announced plans for a series of town hall meetings in the upcoming months to provide residents with an opportunity to voice any concerns they may have regarding the proposal.
The team owners have proposed the development of “76 Place,” stating that the project will revitalize a struggling retail area near City Hall and take advantage of the city’s public transportation network. They have also committed not to renew the lease on their current venue, a facility from 1996 located in the South Philadelphia sports complex, upon its expiry in 2031. However, the plan has faced opposition from activists in Philadelphia’s Chinatown district, who fear potential disruptions and displacements within the community. Concerns have been raised about increased vehicle traffic in the pedestrian-friendly neighborhood and the potential displacement of vulnerable residents such as older individuals, low-income families, and new immigrants. Mayor Parker reaffirmed her commitment to preserving the area, situated just over a block away from the proposed arena site.
Should the proposal receive approval from the City Council, demolition work in the designated area is anticipated to commence in 2026, with construction slated to begin two years later. Officials are aiming to inaugurate the new arena in time for the Philadelphia 76ers’ 2031-32 season.