76ers officials face tough questions on 2nd day of hearings on proposed arena
PHILADELPHIA (WPVI) -- November 13 marked day two of hearings regarding a proposed new Center City arena for the Sixers.
That $1.3 billion project, 76 Place, has been a controversial proposal from the start, with many bringing up what they say will have a negative impact on neighboring communities like Chinatown.
For the second day, members of Philadelphia City Council held a hearing on the issue.
READ MORE: Philadelphia City Council hearings begin on proposed 76ers arena in Center City
On Tuesday, they questioned members of the administration of Mayor Cherelle Parker, who supports the arena plan.
On Wednesday, the council questioned officials with the Sixers organization. In the five-hour hearing, it became clear that there are some major sticking points for City Council that could potentially stand in the way of them approving the plan.
"We've got to make a decision that's in the best interest of the city," said Councilmember Isaiah Thomas.
One thing that came up often in the hearing was the project's Community Benefits Agreement (CBA). It's part of the deal to build a new arena. The 76ers have pledged to give city programs and initiatives $50 million. The deal was negotiated by the Parker administration. City Council members, though, aren't satisfied.
"The CBA is not enough," said Thomas, who is also the majority whip of Philadelphia City Council. He and several other councilmembers asked Sixers officials at the hearing if the organization would increase the $50 million CBA.
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Their answer was "no." It could be a major roadblock, according to Councilmember Mark Squilla, who introduced the arena legislation and represents the district where the arena would be built if approved.
"If there is no change in the CBA, I don't think there's enough votes to pass it out of legislation," said Squilla.
Executives with the Sixers touted the program's benefits, including what they say would be a revitalization of the Market East area.
"We don't think you should approve this because it's the only realistic actionable plan for Market East, but because it's the right plan," said David Gould, Chief Corporate Affairs Officer with Harris Blitzer Sports & Entertainment, the company that owns the 76ers.
Sixers officials also talked about the project's goal of creating jobs and prioritizing equal opportunities for women-owned and minority-owned businesses.
Still, the amount of money dedicated to the CBA was an issue. Drawing parallels, Thomas asked if the Sixers would commit to moving their headquarters to Philadelphia. As executives said they wouldn't, Thomas compared the revenue stream that such a move would generate compared to the CBA.
"The city itself would collect more money in wage tax revenue that they would pay than this actual CBA agreement," he said.
Another concern councilmembers brought up is the extra pressure that a Center City arena would put on SEPTA, which is already struggling financially.
"I ask today for you to commit to having some serious conversations with SEPTA so that we can all get a higher comfort level before moving forward," said Councilmember Mike Driscoll.
Executives with the Sixers testified they would not cover SEPTA expenses brought on by events.
"You heard from the Sixers say they're not willing to do anything different," said Councilmember Jeffery Young Jr. "I just don't see how the legislative branch will have the opportunity to do its due diligence."
Officials with the Sixers testified that they want approval of the plan by the end of the year. City councilmembers also challenged that timeline.
There are five more hearings planned and they will include public comment.
Residents interested in signing up to make public comment or learning more information on the process can find more information here: https://phlcouncil.com/arena-info/
To learn more about the hearings scheduled, click here.
