Philly Sixers arena: City Council gives initial approval with $60M CBA

The Philadelphia 76ers are one step away from securing the approvals the team needs to build a new basketball arena in Center City, more than two years after it announced the $1.3 billion proposal.

Following hours of closed-door negotiations, City Council on Thursday voted 12-4 to move enabling legislation out of the Committee of the Whole, which comprises all 17 lawmakers. The full body is expected to take a second and final vote on the bills on Dec. 19, the last regular meeting before lawmakers break for winter recess.

While it is possible lawmakers will change their position, the outcome is not expected to change.

“We really worked hard with the administration and council to understand what the concerns were of members and the community. We tried to do the best we can to get something we could pass,” said Councilmember Mark Squilla, whose district includes the proposed arena site, after the vote.

The crucial vote was taken as opponents chanted loudly behind lawmakers. It comes weeks after the legislative package was introduced during a raucous meeting and follows a string of full-day hearings featuring hours of testimony from stakeholders that included the Sixers, SEPTA and Mayor Cherelle Parker’s administration. Council members also heard from a long list of opponents and proponents of the project, as well as the general public.

The controversial development is backed by Parker, meaning she is likely to sign any related bills that reach her desk. Greenlighting the arena would be considered a defining moment of the mayor’s first term.

A mayoral spokesperson could not be immediately reached for comment.

Most of the legislation City Council advanced Thursday was crafted by the Parker administration, including bills related to zoning and planning. There are also provisions for a community benefits agreement (CBA) worth $60 million, and an economic opportunity plan designed to ensure the arena is built and supported by a diverse workforce.

The other arena bills passed Thursday were drafted by Sqilla. Two of those bills are aimed at preserving the scale of Chinatown while preventing displacement in the neighborhood, a chief concern of arena opponents.

Lawmakers passed a pair of bills out of committee right before Thanksgiving. One is tied to a broader agreement that exempts the Sixers from paying property taxes on the new arena. The other would create a special services district around the arena, a measure designed to give nearby residents some agency when it comes to the conduct of the arena.

The CBA, a legally binding agreement, was initially valued at $50 million. The price tag went up after several lawmakers pushed the Sixers to lay out more, particularly for initiatives meant to blunt the impact of the arena on neighboring communities, especially nearby Chinatown.

The new figure, which had reached $100 million on Wednesday, reflects increased funding for workforce development, a special services district, and a business disruption fund designed to help small businesses survive construction.

The agreement also now includes funding for a community land trust to “help protect Chinatown from unchecked development.” There are also new dollars for a grant program geared towards helping “legacy” businesses in Chinatown.

Councilmembers Kendra Brooks and Nicolas O’Rourke had pushed for a $300 million agreement.

Councilmembers O’Rourke, Jamie Gauthier, Jeffrey Young and Rue Landau voted against the arena.

Brooks did not attend the hearing.

“What happened today was wrong,” said Gauthier with tears in her eyes. “We should care more about our impacted communities than big money folks that wanna rush stuff through council.”

Councilmembers Squilla, Kenyatta Johnson, Katherine Gilmore Richardson, Cindy Bass, Nina Ahmad, Curtis Jones, Brian O’Neill, Quetcy Lozada, Jim Harrity, Michael Driscoll, Anthony Phillips and Isaiah Thomas voted in favor of the arena legislation.

After the hearing, arena opponents panned the vote, calling it a “disgrace” and a “betrayal.”

“What kind of city is this? Clearly our council members who voted for this think that this is a billionaire playground — that this is a city for the wealthy,” said Mohan Seshadri, executive director of the Asian Pacific Islander Political Alliance.

“This is a bad deal for working-class Philadelphians,” he added.