The public has a right to know how the Sixers arena debacle happened. Why won’t city officials tell us?
The city and SEPTA have defied a 2023 order in support of my public records request into the arena negotiations. Their efforts to block the release of the files beg the question: What are they hiding?
When the Philadelphia Board of Ethics ruled 18 months ago that lobbyists for the Sixers arena project had not disclosed a series of secret meetings with government officials, it felt like there was a lot more the public still wasn’t being told — but absolutely deserved to know.
So I submitted Right-to-Know Law requests to then-Mayor Jim Kenney, City Council members, SEPTA, and the various city agencies that have jurisdiction over the project.
The city and SEPTA denied my requests. I appealed the denials to the Pennsylvania Office of Open Records, which partially granted my appeals. City agencies and SEPTA were ordered to turn over records more than a year ago. But rather than comply with the Office of Open Records’ orders, the city and SEPTA filed an appeal with the Philadelphia Court of Common Pleas and the Commonwealth Court of Pennsylvania, respectively.
Two days after the bombshell announcement earlier this month that the Sixers were abandoning their plans for an arena on East Market Street and would instead build one in South Philly, Andrew Richman, one of the city’s lawyers, asked whether I am still interested in pursuing the records requests.
Of course, I am.
If the city and SEPTA want to end litigation, they merely have to drop their appeal of the Office of Open Records’ orders.
Their continued efforts to block the release of the records beg the question: What are they hiding?
Paula Knudsen Burke of the Reporters Committee for Freedom of the Press represents me in the city’s and SEPTA’s appeals. Knudsen Burke said that our case underscores the many reasons why my open records requests still matter.
“The Supreme Court of Pennsylvania has explained that the Right-to-Know Law allows the public to ‘scrutinize the actions of public officials and make public officials accountable for their actions.’
“Scrutinizing actions of the government doesn’t just apply to ‘completed’ deals,” she said. “Such scrutiny is equally important — and perhaps even more so — when a sought-after transaction fails.”
“Scrutinizing actions of the government doesn’t just apply to ‘completed’ deals.”
In short, the public has the right to know how the 76ers arena debacle happened.
Contrary to widespread belief, 76 Place was far from “a done deal.” City Council’s hastily passed enabling legislation was little more than a zoning permit that allowed the Sixers to build an arena in the footprint of the Fashion District. Neither City Council nor Mayor Cherelle L. Parker has the authority to grant the right of entry onto SEPTA property.
SEPTA received federal funding to make improvements to Jefferson Station. In order to protect the “federal interest,” changes to the use of the station must be approved by the Federal Transit Administration. In other words, federal officials call the shots.
Sixers co-owner David Adelman tacitly acknowledged the crucial role played by Washington in a social media post following City Council’s 12-5 vote: “We look forward to pursuing the remaining approvals to make 76Place a reality.”
During a news conference on Jan. 13, Mayor Parker said, “This is a curveball that none of us saw coming.” However, the signs were there. In November, SEPTA released a study, “76 Place at Market East SEPTA Impact Assessment,” that detailed the negative impact the 76ers arena would have on SEPTA’s operations and budget:
The construction and operation of 76 Place will significantly impact SEPTA. The construction will disrupt SEPTA’s infrastructure and operations, increasing SEPTA’s costs.
“Achieving a 40 percent transit share for arena attendees will require additional service – the cost of which will not be covered by fare revenue,” the report said. “The proposed changes to Jefferson Station will potentially degrade its usability and its feeling of openness, brightness, and safety, and may not satisfy Federal (FTA) regulators. To make SEPTA whole will require additional funding, and to make Jefferson Station world class the current design will require refinement.”
According to the November study, the 76ers arena would cost the transit agency $22 million to $50 million during the six years of demolition of the Fashion District and construction of the 76ers arena, and $20 million to $25 million annually to add additional service to meet the Sixers’ goal of 40% public transit ridership.
The study was released in conjunction with the testimony of SEPTA officials before City Council. SEPTA interim General Manager Scott Sauer did not mince words: “The reality is that SEPTA simply cannot assume these new costs within the framework of its operating budget … SEPTA cannot shoulder the burden of expanded transit costs at 76 Place, which would be in addition to the existing fiscal challenges.”
In bowing to the interests of three billionaires, City Council members who voted for the enabling legislation ignored red flags in the SEPTA report and testimony. For them, the additional costs of 76 Place were SEPTA’s problem. But the costs were also the Sixers’ problem. With the release of the impact study, the Sixers knew that winning federal approval would have been an uphill battle.
Before moving forward with the formal federal review, SEPTA would need a final arena design from the developer, 76 DevCo. The review process would have entailed a second round of contentious public hearings and community meetings. With a new administration hostile to Philadelphia, it could have been years before federal officials made a decision. So it should have come as no surprise the Sixers were exploring their options with Comcast Spectacor and Camden.
The Arena That Wasn’t is a cautionary tale.
The Sixers’ owners were looking out for their interests.
It was wrong for Mayor Parker and 12 City Council members to ignore their constituents’ concerns and kowtow to the demands of unaccountable billionaires.
And far more transparency was needed throughout the process — and it is still needed now.
Pioneering investigative journalist Ida B. Wells said, “The way to right wrongs is to turn the light of truth upon them.” Records produced in response to my Right-to-Know Law requests will shed light on how the city and SEPTA allowed private interests to hijack the planning and public policymaking process.
Faye Anderson, a longtime advocate for government transparency and public accountability, is the founder of PHL Watchdog. She can be contacted at phlwatchdog@gmail.com.