PHILADELPHIA (CBS) — The Sixers on Thursday released more information on agreements they say they will reach with the city as they develop 76 Place, the team’s proposed Center City arena bordering Chinatown.
Among the updates:
The team will buy the land needed to build the arena and give it to the city at no cost.
Another deal the Sixers are prepared to make: removing the proposed arena site from a Tax Increment Financing agreement that was set to expire in 2035.
The Sixers will pay a Payment in Lieu of Taxes (PILOT) to the city for the arena site.
The arena will generate about $1 billion in tax revenue over its 30-year lease term, the team claims, saying $200 million will go to the School District of Philadelphia and $800 million will go to the city.
The city and the Philadelphia Industrial Development Corporation were recently retained to do an independent analysis of the arena’s finances.
Developer David Adelman was quoted in a statement announcing the new details of the arena plan.
“The new 76ers arena will be one of less than five arenas developed across the country over the last 20+ years that are privately financed, a stark contrast from all of the stadiums in the current South Philly Sports Complex that took city taxpayer funds or land for development and construction,” Adelman said. “With these proposed agreements, our project will significantly add to the city tax base, while maintaining the status quo would simply provide a financial benefit to Wells Fargo Center and its parent company Comcast.”
A city spokesperson said in a statement:
“As we have said from the very beginning, the City has an obligation to complete its due diligence in understanding the impact the proposed downtown arena may have on the surrounding communities before any plans move forward. That is why over the coming months, PIDC, the City’s partner and lead economic development agency, is supporting the City as it conducts its due diligence to better understand the impacts on the surrounding communities. Three requests for proposals (RFPs) will independently evaluate the building design, community impact and urban planning, and the economic impact of the proposed project.
As part of the commissioned independent economic analysis the City is conducting with PIDC’s support, the selected firm CSL will evaluate construction costs, projected revenues and expenses, tax revenues associated with construction and operations, financial feasibility, and capacity of Philadelphia to support two professional sports arenas. This will encompass evaluation of the proposals outlined in the Sixers announcement including conveying private land to the City, removing the arena site from the existing TIF and creating a new PILOT in accordance with state law. CSL will also do an assessment of comparable arenas, including an analysis of markets supporting more than one arena.
The City has met and will regularly meet with community representatives to ensure that their concerns about the proposed project and process are noted, and where possible, adjustments will be made to ensure that the City’s response is equitable and fair.”