The 76ers have struck a deal with Comcast Spectacor to stay in South Philly and abandon plans for a Center City arena

The 76ers are going to stay in South Philly after all, according to City Council members and a key labor leader.

The team has struck a deal with Comcast Spectacor to remain in the South Philadelphia sports stadium district, after more than two years of heated debate over a potential new arena on East Market Street.

» READ MORE: Live updates: Sixers abandon plans to build new arena in Center City

Ryan Boyer, head of the Philadelphia Building and Construction Trades Council, said the new deal involves the 76ers and Comcast Spectacor, which owns the Flyers and Wells Fargo Center, working together to build a new arena in South Philadelphia.

Boyer, whose organization is a politically powerful coalition of more than 30 unions, said the deal also involves a commitment for major developments on East Market Street, but he did not yet have details on what that would look like.

”The commissioner of the NBA was involved in it, and the commitment to Market Street redevelopment is still there,” Boyer said. “We think that overall it will be good for the city. It’s just a pivot.”

The reversal is a stunning end to a saga that has dominated city politics for more than a year and a setback for Mayor Cherelle L. Parker and others who championed the $1.3 billion Center City proposal.

Last month, Council, in a contentious 12-5 vote, passed enabling legislation that would have allowed the arena in Center City to move forward. Lawmakers were criticized intensely for supporting the project, especially from advocates for Chinatown, which borders the proposed site at 10th and Market Streets. But they ultimately approved it after lobbying from unions, including Boyer’s group, and Parker’s administration.

“I’m so livid right now I don’t even know what to do,” said Jimmy Harrity, an at-large member of City Council, who was the first city lawmaker to publicly endorse the team’s move to East Market Street. “I feel as though I was used as a pawn.”

Councilmember Mark Squilla, whose district includes the proposed Center City site, introduced the legislation needed to green-light it. Throughout the fall, he worked tirelessly to get it across the legislative finish line, weathering attacks from his constituents in Chinatown and Washington Square West.

Squilla said Sunday that although he was not involved in the talks that led to the new deal, he’s not upset about how it turned out.

”I’m OK being used in that process,” he said. “This might end up actually being the best-case scenario. We can reimagine Market Street without an arena, have people committed to … investing in it, and still have a new arena in South Philly.”

After the Sixers announced their desire to leave South Philadelphia, Comcast Spectacor began aggressively courting them to stay in the stadium district. As part of their campaign, they revealed an ambitious and sprawling proposal for a $2.5 billion complete redevelopment of the area that would add thousands of apartments, restaurants, and more entertainment options.

That led to a clash between the 76ers’ billionaire owners — Josh Harris, David Blitzer, and David Adelman — and Brian L. Roberts, the chairman and CEO of Comcast, which owns Spectacor. Publicly, Adelman feuded with Daniel J. Hilferty, the president and CEO of Comcast Spectacor, a subsidiary of the cable and internet giant.

The 76ers for months were insistent that they had big plans for East Market Street. They also acquired a number of properties on the south side of Market Street that were slated for development as housing and retail.

One Council member who has talked with the administration and the team said the timeline for development on both East Market and in South Philly would be moved up as well. The Sixers’ East Market arena was originally slated to open in 2031.

It’s unclear what will happen to the commitments that the 76ers made as part of a community benefits agreement the team negotiated with the city before the Council vote on the Center City proposal. The team agreed to pay $60 million for a variety of municipal programs and community groups.

“We were a negotiation ploy for these people who promised a big bag of goods that were going to help the city,” said Harrity. “They’re taking money from our kids.”

During last-minute negotiations, Parker committed to setting aside $20 million of city money for affordable housing in Chinatown. Squilla said that commitment remains in place.

But the team’s plan to purchase and demolish the western third of the Fashion District shopping mall is now halted. The Fashion District and other parcels on East Market Street will be part of the broader conversation about what the 76ers and Comcast Spectacor plan to help revitalize the corridor, he said.

The news also comes three days after Macy’s announced it would be closing its department store on East Market Street, which has long been a pillar of the corridor. The need for investment on the faded commercial corridor will be greater than ever.

Councilmembers Kendra Brooks and Nicolas O’Rourke, members of the progressive Working Families Party who voted against approving the Center City plan, said in a statement Sunday that the news that the team is staying in South Philadelphia represents a “historic win and a testament to the power of organizing.”

Councilmember Jamie Gauthier, who also voted against the arena’s enabling legislation, said that she had been concerned that the arena’s effects on SEPTA and Chinatown had never been fully answered. This latest development brings the Sixers’ previous commitments into greater doubt.

“It is clear that we should have never trusted the process in the first place,” said Jamie Gauthier, who represents much of West Philadelphia. “This development proves that the project was half-baked.”.

Gauthier said she has not yet had the chance to consult with her colleagues or the administration on next steps, but she believes future proposals from the 76ers will be subject to far greater scrutiny.

The team has burnt a lot of political capital getting their legislation through City Council in a polarizing vote, only to back away at the last minute.

“They don’t respect us, they don’t respect Council, they don’t respect the mayor, they don’t respect the citizens, which is why they never should have had such an easy path in the first place,” said Gauthier.

Staff writer Anna Orso contributed to this article.

This is a developing story and will be updated.