Sixers arena proposal should not be a zero-sum game | Editorial

There’s a lot to like about the proposed $1.3 billion Sixers arena on Market Street. But there are also hurdles that need to be overcome to make the project a success.

Unfortunately, the debate surrounding the arena has become a zero-sum battle between the Sixers and opponents in neighboring Chinatown. A better way forward would be for the two sides to find a solution that is a win-win for everyone.

To be sure, there aren’t any other billion-dollar development deals on the table that will provide 9,000 construction jobs in Philadelphia. Even better, the Sixers are not seeking any city tax dollars.

For a city in need of an economic boost following the pandemic, the arena could be transformative. The proposed location — on Market Street between 10th and 11th Streets — would replace a portion of the flailing Fashion District.

The urban mall, formerly known as the Gallery, underwent renovations, but the pandemic upended the retail industry, leaving its future in doubt. Letting the Fashion District wither is not a viable strategy.

More broadly, the arena may spur other development along the south side of East Market Street — a forlorn stretch of hodgepodge retail that is an embarrassment for a commercial corridor just blocks from City Hall. The recent mixed-use development on East Market between 11th and 12th Streets shows what can be done.

However, while the arena will attract thousands of fans to Center City on game nights, create energy on the streets, and boost surrounding bars, it will also sit empty many nights. Many studies have found that taxpayer-supported sports arenas are not major economic engines.

Another challenge — and potential upside — is the location. Most Philadelphia-area fans are used to driving and overpaying to park at the Sports Complex in South Philadelphia.

Getting to the arena would require a change in habit for many fans. Fortunately, its location above a major transit hub at Jefferson Station offers access to subways, trolleys, Regional Rail, buses, and the nearby PATCO Speedline.

Public transportation is better for the environment, cheaper, and safer for fans who drink alcohol and drive home — as well as for other motorists.

For those who insist on driving, the Sixers said there are 29 parking garages totaling 9,000 spaces within a half-mile of the arena. Many fans would already be in the city for work, while many Center City residents could walk.

But there is no denying there will be traffic jams before and after games. However, increased vibrancy along a main commercial artery is not necessarily a bad thing. Welcome to life in a big city.

There are other questions and challenges. For example, what will be done to mitigate the effects of construction on surrounding businesses?

Inquirer architecture columnist Inga Saffron raised worthy points regarding the impact on Jefferson Station, which project architects said they are addressing. Other cities, including Boston, have built arenas in tight spaces and above transit hubs, so it’s hardly a dealbreaker.

The biggest concern is the impact on neighboring Chinatown. The Philadelphia Chinatown Development Corp., a business-leadership nonprofit, said the overwhelming majority of its business owners and residents oppose the arena.

In a meeting with this board, some of the opposition leaders raised a number of fears, including how the arena could gentrify Chinatown and increase rents for businesses and residents.

They pointed to Washington, D.C., where construction of a sports arena and a convention center displaced 90% of Chinatown residents. However, Washington used eminent domain to raze portions of Chinatown to make way for the arena. The Sixers do not intend to take property in Chinatown, though there are plans to relocate the Greyhound bus station bordering the neighborhood.

Chinatown is right to be wary. There is a fraught history of displacement there and in other communities of color. The Sixers’ commitment to ensure 40% of food, drink, and concession operations go to Black-owned businesses is a start, but more must be done to protect Chinatown.

Debbie Wei, a founder of Asian Americans United, argued the shelf life of many arenas is less than 30 years. What happens if the proposed Market Street arena becomes obsolete? (The Wells Fargo Center in South Philadelphia was built in 1996 and has undergone $400 million in renovations.)

Wei and others raised safety concerns about the many nights when there are no games or concerts. The Sixers plan for outward-facing restaurants, so the arena is not a dark fortress. That’s an improvement over the Fashion District, which is a magnet for the type of teen violence seen just last week.

Others wonder if the city can support two large indoor arenas. Several smaller cities do it. Frankly, that’s a business issue between deep-pocketed Comcast Spectacor — which owns the Wells Fargo Center and the Flyers — and the Sixers’ billionaire owners. For fans, the competition is good.

This much is clear: The Sixers want out of Wells Fargo and South Philadelphia. They want their own arena in Center City to better compete with other NBA teams and to increase scheduling flexibility.

Meanwhile, Daniel Hilferty, the head of Comcast Spectacor — the company that controls the development rights at the Sports Complex — has said that he hopes the Sixers abandon their Market East arena proposal and remain at Wells Fargo. Hilferty also said that Comcast Spectacor plans to build a smaller arena near the Xfinity Live! sports bar on Pattison Avenue.

Could the Sixers and Comcast Spectacor partner in an arena?

Could the Sixers and Comcast Spectacor partner in an arena? Could the Sports Complex be reimagined as something more than arenas and a parking lot? That does not appear to be an option now but may be worth exploring.

Where else could the Sixers go if Market Street is blocked? To their credit, the team has not threatened to leave Philadelphia. But if they are rebuffed, could we end up with the New Jersey Sixers? The Sixers appear intent on remaining in Philly, but it’s worth noting the team’s practice facility and headquarters are in Camden.

Here’s the bigger issue beyond the Sixers arena: Philadelphia’s knee-jerk reaction to new ideas is often no. Hence the nickname Negadelphia.

In the 1980s, many were aghast when late developer Willard Rouse proposed building One Liberty Place because it would be taller than the statue of William Penn atop City Hall. In the 1990s, some opposed the Kimmel Center as a new home for the Philadelphia Orchestra.

When Philadelphia bid for the second Amazon headquarters in 2018, many worried about the impact of thousands of good-paying jobs and billions in investment. Amazon has paused construction in the winning city, but managing growth sure beats managing decline.

The point is dynamic cities think big and evolve. Philadelphia’s perpetual underdog status is often due to a lack of the kind of imagination and ambition that once made it a city of firsts.

That’s not to say the Market Street arena is a panacea. But this is an opportunity that deserves serious consideration along with creative thinking to address the challenges.

The Sixers offered to contribute $50 million toward a community benefits agreement that could be used to improve public safety, support small businesses, and create affordable housing.

Perhaps the funds could be leveraged to support other game-changing projects that would benefit Chinatown, such as capping the Vine Street Expressway and redeveloping the Roundhouse.

The details of any community benefits agreement would need to be ironed out and legally binding. The failure of promises made for the arena in Brooklyn is a cautionary tale. But there is an opportunity for the Sixers and Chinatown to reach a grand bargain that enhances Market Street and the adjacent neighborhood.

This is where city leadership should come in but hasn’t. Since last July, when the Sixers proposed building the 18,500-seat arena, one thing has become abundantly clear: The city lacks a fair and coherent process for large development deals.

The City Planning Commission can make recommendations but has no authority. Because of an unwritten rule known as councilmanic prerogative, most of the power rests with individual members of City Council.

The fate of the Sixers arena plans lies largely with Councilmember Mark Squilla, whose district covers East Market Street. Major developments that have an impact on the entire city should not be left to the whims of one Council member. It makes for opaque and ad hoc development.

Mayor Jim Kenney expressed initial support for the proposal but, as with many big issues these days, he appears largely uninvolved. If the arena issue is not resolved this year, the next mayor could influence the outcome. That’s a crapshoot, as some mayoral candidates are more supportive than others.

Every location — including the Sports Complex — has its pros and cons. In the end, the goal should be to find the best solution where the Sixers, Chinatown, and all of Philadelphia win.