As arena deadline nears, Philly Council considers giving the 76ers a $100M ultimatum
Lawmakers want the 76ers to pay significantly more than the $50 million the team has offered to contribute to the project’s community benefits agreement, which would aid impacted businesses.
With negotiations over the 76ers’ $1.3 billion Center City arena proposal coming down to the final hours, City Council leaders are signaling that they’re ready to play hardball.
Lawmakers want the 76ers to pay significantly more than the $50 million the team has offered to contribute to the project’s community benefits agreement, which would aid affected businesses and fund some city programs.
With a key committee vote scheduled for Thursday morning, Council President Kenyatta Johnson’s office on Wednesday circulated amendments raising the CBA to $100 million.
The team has agreed to pay as much as $60 million in community benefits, according to a source close to Council leadership.
If Johnson called a vote on a $100 million agreement Thursday, that would amount to a take-it-or-leave-it ultimatum, with lawmakers potentially approving a deal the team has not agreed to. Alternatively, just circulating the amendment may force the 76ers to negotiate higher.
A spokesperson for the 76ers did not respond to a request for comment.
» READ MORE: The 76ers indicate they may give more than $50 million for the arena proposal’s community benefits agreement
Negotiations between Council and the team were continuing late Wednesday, with just hours to go before the Committee of the Whole was scheduled to reconvene at 8:30 a.m. following two delays Wednesday, and it’s possible Council’s plan could change before Thursday morning.
The amended proposal includes an increase in funding for small businesses disrupted by the project’s construction, and shows Council wants to add millions of dollars for housing support in Chinatown, the historic neighborhood adjacent to the proposed arena site at 10th and Market Streets.
The size of the community benefits agreement has been a critical sticking point in negotiations between Council, the Sixers, and Mayor Cherelle L. Parker’s administration. The initial $50 million agreement struck between the Sixers and Parker’s administration included grants for businesses near the site of the arena and security upgrades, as well as funding for some of the mayor’s citywide priorities.
Councilmember Mark Squilla, whose district includes the proposed arena site and who introduced the legislative package related to the project, has said the team should pay at least $60 million in community benefits, and several members have suggested the deal should include more money specifically for Chinatown.
Some opponents of the arena are pressing for much more. A coalition of groups that oppose the project, which has been advocating for a $300 million CBA, said in a statement Wednesday night that the $100 million proposal is akin to “lipstick on a pig.”
“City Council is rushing into a reckless deal, and the billionaires are trying to pull off a land grab of epic proportions,” the coalition said. “This slapdash dealing before a big vote is an embarrassment, all to meet the developers’ manufactured timeline. Council should fight for much, much more and deal with this in 2025.”
Under Council’s normal procedures, the committee must approve the legislation this week for it to be considered by the full Council by Dec. 19, the last expected Council session of the year. The Sixers have said they need approval for the project by the end of this year in order to open the arena by the 2031-32 season, when their lease at the Wells Fargo Center in South Philadelphia expires.
Staff writer Jake Blumgart contributed to this article.