Squilla pushing for a special services district to surround Sixers arena

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Mayor Cherelle Parker will transmit a legislative package to City Council on Thursday containing the approvals the Sixers need to build a new arena in Center City. But it’s still unclear when those bills will be introduced.

Councilmember Mark Squilla said Tuesday that he is still negotiating with the administration over the content of the package. While most of the language has remained the same since the bills were posted online last month, Squilla wants to add a provision for a community-driven arena district.

“Whatever [residents] deem necessary to offset some of the challenges from a development,”  Squilla said in an interview. “But it will be totally dictated and run by the folks in that district — the board of that district.”

The board would be a new entity. The district would cover a still-to-be-determined geographic area around the arena, and may operate programs similar to those run by a special services district, Squilla said. Special services districts often have programs dedicated to keeping an area clean, safe and well-lit.

These kinds of districts have become common, especially over the last decade. The goal is to give the community some agency when it comes to the conduct of the arena.

The Sports Complex Special Services District in South Philadelphia, for example, has programs designed to improve sanitation and recycling, landscaping, traffic and streetscapes within the district’s boundaries.

Launched in 2003, the SCSSD is funded by Comcast Spectacor, the Philadelphia Eagles and the Philadelphia Phillies, which donate a combined $1 million to the district each year.

Squilla said the new district could be funded by the arena itself, or through the community benefits agreement the Sixers committed to under its broader deal with the city.

Another possibility is using what’s known as tax increment financing, a revenue stream that is often generated through property taxes. In some cases, a portion of the property taxes in an area is diverted to fund the operations of a special services district. TIFs can also rely on the creation of a new tax.

Either way, they must be approved by local government. And critics say TIFs can cannibalize tax dollars that could be used to fund other priorities.

“You can’t pull money out of thin air. It has to come from the wealth of the tax base. And so, because stadiums tend to be poor investments, it’s just taking that money out of the community in some way,” said J.C. Bradbury, an economics professor at Kennesaw State University who studies sports arenas and stadiums.

The Parker administration did not immediately respond to a request for comment.

The Sixers have said they need approval from Council before the end of the year to stay on track with the project, which will replace one-third of the Fashion District mall at 10th and Market streets. The team wants to start construction in 2028 and open the arena in 2031, the same year its lease ends at the Wells Fargo Center.

The legislative package includes 11 ordinances and resolutions, including measures related to zoning and planning, as well as neighborhood improvement and financing arrangements tied to the Fashion District mall.

Opponents of the arena plan to flood City Hall, including Council chambers, on Thursday. They will also hold a rally outside City Hall before Council starts at 10 a.m. Organizers expect hundreds to participate in the protest.

Some opponents have said the legislative process is being rushed, and that it is moving forward without transparency and due diligence, an argument Squilla disagreed with.

“To me, it seems long,” said Squilla. “But I know the council president wants everybody’s voices heard on this, and I do too. So I think the process will play out however it plays out.”