The 76ers arena would threaten Chinatown, discourage driving, plus other takeaways from the city’s 400-page reports

The long-awaited impact studies on the controversial proposal for a new Sixers arena found that the project is “appropriate” for Center City, but could have a negative impact on Chinatown.

The city-contracted reports, released Monday, analyzed the arena’s potential impact in four categories: community, economy, traffic, and design. They come as City Council is expected to take up the issue this fall.

The project has been controversial since it was pitched two years ago, with proponents touting its economic benefits and opponents flagging the project’s potential to hurt an already challenged Chinatown, which is next to the proposed site at 10th and Market Streets.

The project’s opponents have questioned the independence of the studies, which were funded by the Sixers organization. And experts have warned that the economic projections may not be realistic.

Here is what you should know about each of the studies:

The arena wouldn’t require knocking down existing housing, but could displace residents because of rising property values and subsequent gentrification, according to the community impact study.

The average median housing values in the neighborhood are already more than twice the citywide median.

The Sixers have said they would use a $50 million community benefits agreement to help preserve housing affordability, small business vitality, and cultural identity in the neighborhood, but many members of the Chinatown community have expressed opposition to the project.

The construction of a new arena would have a mostly negative impact on Chinatown’s small-business corridor, the city’s community impact analysis found.

Most of Chinatown’s business sectors would see a negative impact, including grocery stores, financial services, and health-care providers. The study estimates that professional services and wholesale businesses would see no positive impact.

Without support from the city, the arena would raise property values, push out legacy tenants, and lead to a decline in Chinatown’s “cultural identity,” the study found.

The area already faces challenges to development and “vibrancy” unrelated to the arena’s construction, according to the study, but a Sixers arena would exacerbate trends.

“As a result,” the study said, “the Arena should be considered a significant potential risk to Chinatown’s core identity.”

The transportation impact study emphasized the importance of public transportation and said 40% of fans must use it over driving to avoid gridlock.

The study found that if even slightly more than 40% of fans drove to Center City, it would cause gridlock at key intersections.

To discourage fans from driving, the study recommends providing a SEPTA or PATCO pass with event tickets at no extra cost, excluding parking benefits from event tickets, and planning large-scale bike parking or bike valet services.

The Sixers’ goal, for 40% of fans to use public transit while another 40% drive, is possible and would result in manageable traffic, the study found. As of March, 75% of fans were driving to the Wells Fargo Center.

At least one expert has questioned whether the Sixers will get a “complete reversal of behavior.”

According to the community impact study, the arena could exacerbate traffic issues unique to Chinatown, including the car-reliance of its aging population, limited parking, and congestion.

The surrounding area has sufficient garage parking to meet demands, even during other Center City events such as theater productions, the study said.

The study cautions: “The more parking you provide, the easier and more likely it is that arena attendees choose to drive.”

The report suggests changing on-street parking time limits in Chinatown from three hours to two hours, using prepaid parking, and adding 95 accessible parking spaces at the proposed arena.

Congestion caused by the proposed arena is “considered a minor impact on overall traffic operations” on I-676, according to the study.

The consultants determined that without the arena, traffic would see a 4% increase, while the arena would cause a 12% traffic increase.

Traffic has been an issue at the Wells Fargo Center. Past analyses have shown “noticeable increase in traffic congestion” on surrounding highways post-game in comparison to evenings when there are no events.

According to the economic impact report, a Market East Sixers arena would net $390 million in tax revenue over 30 years.

That’s well below the $1.5 billion in tax revenue pitched by the Sixers. The organization said it used a different cost estimation method for its figure, but has not released its study or the methodology used.

Only about $249 million, or 64% of that, would go directly to the city or the School District of Philadelphia. The remaining revenue would go to the state.

In contrast, the Sixers’ own analysis found the arena would add $800 million in tax revenue for the city and $200 million for the school district over 30 years.

The Sixers are proposing to give the land to the city and lease it back from the municipal government. That would make the property exempt from real estate taxes that fund city services and the School District of Philadelphia, and the team would instead have an agreement for Payment in Lieu of Taxes, known as a PILOT. The PILOT would start in 2033 and would net $24 million over 30 years, according to the study.

The city-contracted consultants found that the arena would bring $1.9 billion to the city in spending on construction and from people coming to the city for events, and $593 million in income for workers in the full-time jobs created.

The Sixers have estimated the arena would attract $400 million in annual “economic output” and that construction would attract more than $2 billion in “economic impact” to Center City.

A new arena would create 710 new full-time jobs in Philadelphia, and 1,070 across the state, according to the city’s study.

That figure is in line with the Sixers’ own analysis, which suggested the arena would bring 1,000 direct, full-time jobs upon completion.

The study released said that Wells Fargo Center would suffer by losing Sixers games and suite and naming-rights revenues. But it found the Philadelphia market could support two financially viable arenas.

Based on studies of eight other cities with more than one sports arena, the city’s consultants found that a new arena would add to the number of events in Philadelphia.

That added competition could mean an additional bonus for consumers: lower suite prices. Based on analyses of other cities, consultants estimated suite prices would be lower at both arenas, and more acutely at Wells Fargo Center because of its loss of the key tenant, the Sixers.

The design impact study says the proposed arena is “appropriate for Center City Philadelphia, assuming it is done well.” It also noted that downtown arenas are often “disruptive in a positive way.”

However, the report expressed concerns with the lack of an outside public plaza for public gatherings or celebrations.

The study recommends creating and refining “civic and public gatherings spaces” for queuing before and after events, meeting friends, and other pre- and post-event activities.

Last year, the Design Advocacy Group, made up of more than 2,100 architects and building design experts, expressed opposition to the arena. The group’s steering committee said the arena would not revitalize East Market and could even “make matters worse” for accessing Center City.

Nicole Gainer, a spokesman for 76 Devcorp, the Sixers’ development partnership, said at the time it was “disappointing that members of the Design Advocacy Group Steering Committee issued a statement with several glaring inaccuracies.”