Vote on Sixers arena proposal a moving target as City Council wraps up hearings

Philadelphia City Council is still weighing the fate of the 76ers’ arena proposal after concluding a string of public hearings devoted to the $1.3 billion development.

A committee composed of all 17 lawmakers will reconvene early Thursday morning. It’s unclear if council members will take a preliminary vote on the arena before its regular weekly meeting.

“I don’t know,” said City Councilmember Mark Squilla after a daylong hearing Tuesday.

The decision to recess comes weeks after enabling legislation was introduced during a raucous meeting. And it follows hours of testimony from stakeholders, including the Sixers, SEPTA and Mayor Cherelle Parker’s administration. Council members have also heard from a long list of opponents and proponents, as well as the general public.

On Tuesday, lawmakers sought answers to lingering questions about major components of the team’s controversial proposal, but walked away without them, a fact that frustrated some council members as the body prepares to vote on the project.

“I have to tell you it is incredibly frustrating that we’re being rushed and we don’t have the answers to our questions,” said Councilmember Rue Landau.

During their second appearance before Council, Sixers representatives said Tuesday they are negotiating with Council President Kenyatta Johnson over the terms of a community benefits agreement. Lawmakers have repeatedly asked whether the Sixers would be willing to raise the cap of the agreement. It currently sits at $50 million.

David Gould, chief corporate affairs officer with Harris Blitzer Sports & Entertainment, previously told council members that the Sixers could not go above that figure. But on Tuesday, he said the team is “considering adjustments” to the value of the CBA.

Johnson said Tuesday that all negotiations are a “work in progress,” including those related to the community benefits agreement.

“Whatever number we’re able to negotiate with the Sixers, we’ll let members of council know about it and if they decide to vote ‘yay’ or ‘nay’ based upon that particular number … then we’ll just go from there,” Johnson said.

After the hearing, Squilla told reporters that Council has asked the Sixers to increase the price tag of the CBA but declined to share that figure. That includes a request to raise the amount devoted to a fund designed to help small businesses impacted by the construction of the arena.

“The minimum has to be another $10 million … if you want to be realistic. But I think we need more than that if you see some of the requests from the community. I don’t think we, as a body, would support anything less than that,” Squilla said.

Lawmakers also continued to grill Gould and Alex Kafenbaum, head of development for Harris Blitzer, about funding for SEPTA.

The team has committed to covering any construction costs tied to building the arena above Jefferson Station. But the Sixers say they are unable to provide funding for additional operating costs the authority would incur as a result of the arena, including expanded service on its Regional Rail lines to accommodate fans.

SEPTA has told City Council it cannot afford to cover those costs as it continues to navigate a fiscal crisis. The city has also said it will not send more money to the authority.

“We remain in active dialogue with SEPTA,” Kafenbaum said.

A SEPTA spokesperson declined to provide further details about those talks.

“The most important thing is to be part of these discussions, and to make sure we are clear with everyone on the basic facts with regard to the impact on SEPTA,” the spokesperson said.

The amount of car traffic generated by the arena — a chief concern among opponents — was yet another loose end that lawmakers sought to tie up.

The team’s proposal is rooted in having just 40% of fans driving to the arena. An impact study commissioned by the city found that going above that threshold would cause gridlock at major intersections.

An updated traffic study is forthcoming but it’s unclear when it will be completed. Michael Carroll, deputy managing director for the Office of Transportation and Infrastructure, said Tuesday that the report is “maybe a month or two” away from the finish line.

“The cake is done when it’s baked,” Carroll said. He said the 40% figure is feasible if SEPTA expands capacity on roughly a handful of rail lines.

The Sixers have said they need authorization from City Council before the end of the year to open the arena in 2031, the year the team’s lease ends at the Wells Fargo Center in South Philadelphia.

Council would need to vote the enabling legislation out of committee by Dec. 12 to hit the Sixers’ deadline — if an additional meeting is added to the calendar.

Team officials reiterated Tuesday that the franchise hopes to stay in Philadelphia but said a move to New Jersey is not out of the question if City Council votes down the team’s proposal.

New Jersey Gov. Phil Murphy has told the Sixers that the state could award the team up to $800 million in tax credits. For now, neither the city nor the state has committed to subsidizing the arena.

“2031 is getting closer and closer and we need a place to play. So if we are not able to come to an agreement for this site, the only other viable option that we have as of right now is in Camden, New Jersey,” said Gould.