Keeping the 76ers in Philadelphia has been a major talking point for proponents of their proposed arena, including Mayor Cherelle Parker. But if the project is supposed to keep the team in the city, legislators asked Wednesday, why isn't the corporation governing it located here?
Councilmember Isaiah Thomas (D-At Large) raised this issue in a contentious public hearing, which featured testimony from 76ers officials. While the team plays at the Wells Fargo Center — and, if its arena proposal is approved, would play on Market Street between 10th and 11th streets — it has long maintained headquarters and a practice facility in Camden. This New Jersey home base, Thomas argued, deprives the city of millions in wage taxes.
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"If we decide to vote for this arena, will the Sixers, the entity themselves, LLC or whatever company it is, will the company be moving back to Philadelphia?" he asked. "I don't care where you practice, I don't care about the practice facility. I'm not saying abandon that, but I'm saying the actual entity itself."
David Gould, chief diversity and impact officer for Harris Blitzer Sports & Entertainment, said the team would "have operations here and we'll be registered here and located in the city of Philadelphia."
"So no," Thomas deadpanned.
Councilmembers Michael Driscoll (D-6th) and Rue Landau (D-At Large) bolstered Thomas's push for a new headquarters in their later questioning.
"It's very important, I think, to all of us," Driscoll said.
The council members showed palpable frustration with Gould and his colleague, HBSE head of real estate development Alex Kafenbaum. Many criticized the team for refusing to increase the $50 million community benefits agreement, which several council members find insufficient. The CBA would, among other things, create a small business lending fund to aid Chinatown restaurants and shops impacted by the arena. Activists from the neighborhood have vehemently opposed the project, saying it would displace residents and businesses.
"Who thought (this project) would be a good idea?" said Cindy Bass (D-8th). "And the reason I ask is because I'm suspecting that it's the owners of the 76ers, none of whom felt the need to come and discuss their vision or concept with us today, which is quite inappropriate and disrespectful and just really callous toward all of us."
Concerns over SEPTA also boiled over from Monday's hearings with Parker's administration. The 76ers have pledged to pay for infrastructure upgrades at Jefferson Station, which the arena would sit atop, but not any operational costs to increase service on game nights. The public transit authority is facing significant financial hardship in the form of a $240 million shortfall and may increase fares up to $2.90 in the new year. After the team promised to fast-track conversations with SEPTA in the Wednesday hearing, Councilmember Jamie Gauthier (D-3rd) cut in for clarification.
"What are you meeting with them about?" she asked. "If you already have been explicit that you do not have the capacity and will not cover the cost."
Kafenbaum said, "We think we can be helpful and be a problem-solving partner to SEPTA and the city and the state in this conversation."
The council also pressed the team on job creation and diversity within those jobs. 76 DevCo, the development arm behind the project, claims it will generate 12,000 jobs. But Councilmember Quetcy Lozada (D-7th) wanted guarantees for workers in the Fashion District who would be displaced by the project, which would take over a portion of the mall. Councilmember Katherine Gilmore Richardson (D-At Large) wondered why no women, minority, disabled or local investors held equity in the project, referencing lyrics from Jay-Z's "Legacy" in her comments.
"Jay-Z said generational wealth, that's the key," she said. "My parents didn't have much, so the shift must start with me. We're not shifting anything. So that concerns me."
The two-part session Wednesday was the second of eight days of hearings scheduled over the arena. The legislation to authorize the project is under consideration at City Council after two years of development and debate. The team says it must receive approval by the end of 2024 to stick to its construction timeline, which projects a 2031 opening date.
Gould and Kafenbaum may be recalled for testimony as the hearings continue.
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