Gov. Josh Shapiro wants to see the full Sixers sports hub project before deciding if Pa. should invest

After opposing the use of any state resources for the Sixers’ now-abandoned proposal to build an arena in Center City, Pennsylvania Gov. Josh Shapiro says he isn’t closing the book on the state getting involved in the team’s new South Philadelphia arena project.

Shapiro, a Democrat in his first term and a major Sixers fan, said in an interview Wednesdaywith The Inquirer he was “adamant and crystal clear” that he would not support the use of state funds to build an arena along East Market Street.

But now that the Sixers and Comcast Spectacor have come together — announcing this week a new, multifaceted plan that includes the revitalization of Market East, an expansive sports hub in South Philly with retail, restaurants, and residential options, and the prospect of bringing a WNBA team to Philadelphia — Shapiro says he is interested.

Still, Shapiro maintains that he needs to see the final plans for the newly proposed South Philadelphia arena and the role city government will play in offering incentives for the project before deciding “whether it may or may not make sense for the commonwealth to invest.”

As tensions around the Center City arena proposal intensified over the last few months, Shapiro said, he encouraged leaders from the Sixers and Comcast Spectacor to begin negotiating again.

“The fact [Comcast Spectacor and the Sixers] were able to come back together and work together means we’re going to have something really dynamic in Market East, we’re going to have a great new arena for the Sixers and hopefully the WNBA as well,” Shapiro said in the interview.

» READ MORE: How NBA commissioner Adam Silver put an end to a billionaires’ feud and helped keep the Sixers in South Philly

As plans to scrap the proposal for the Center City arena for a new development in South Philly took shape, Shapiro said, he emphasized to business leaders with the Sixers and Comcast Spectacor that they “not abandon Market East,” a languishing retail corridor in Center City just blocks from City Hall. Philadelphia officials and leaders from the 76ers and Comcast Spectacor all say they are committed to revitalizing the area, but details of that promise have not been released.

The governor also said he is interested that the new South Philadelphia sports complex project will be a part of a larger revitalization of underutilized portions of the section of the city, mostly made up of parking lots and warehouses.

“I think that whole area is an exciting area for development,” Shapiro said, pointing to South Philadelphia’s Bellwether District, the Philadelphia Port, and the Navy Yard as other areas the city should build up.

“And we’ve got an opportunity to develop that whole South Philly area in a way that’s great for people to work and live and play and enjoy,” he added.

» READ MORE: As Center City arena dies, Sixers, Comcast, and City Hall say they will still revive Market East

Shapiro also noted the work already underway in the Bellwether District west of the stadiums, and teased future development in the Philadelphia Port area that he said his administration will announce. The Bellwether District, which is located at the former Philadelphia Energy Solutions refinery site, is being redeveloped by Hilco Redevelopment Partners, and businesses located in the district are eligible for state and local tax exemptions or credits.

This wouldn’t be the first time Pennsylvania has used state resources to aid construction of a Philly sports arena.

The state and city previously subsidized the building of the Wells Fargo Center, Lincoln Financial Field, and Citizens Bank Park in South Philadelphia — a total of $500 million among the three projects.

And as arena negotiations continued, New Jersey offered $800 million in tax incentives to draw the team across state lines to build in Camden.

While Shapiro initially said he opposed using state funds to build the Center City arena in the Sixers’ earlier proposal, the governor said the multiple economic development opportunities that the team’s new project offers — from the Market East revitalization to the business possibilities in South Philly — give the state more to invest in.

Pennsylvania often invests in community and economic development projects around the state, usually as part of public-private partnerships to encourage economic growth in a region. These investments often take the form of tax credits, direct grants, or logistical support.

For example, the Bellwether District is part of a “keystone opportunity zone,” offering major tax incentives for businesses to establish themselves there. In Pittsburgh, Shapiro announced last year that the state would spend $62 million over the next four years to support a $600 million downtown revitalization project supported by private-sector businesses, foundations, and state and local governments.