COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE Room 400, City Hall Philadelphia, Pennsylvania Tuesday, November 12, 2024 10:25 a.m. PRESENT: COUNCIL PRESIDENT KENYATTA JOHNSON COUNCILWOMAN NINA AHMAD COUNCILWOMAN CINDY BASS COUNCILWOMAN KENDRA BROOKS COUNCILMAN MICHAEL DRISCOLL COUNCILWOMAN JAMIE GAUTHIER COUNCILWOMAN KATHERINE GILMORE RICHARDSON COUNCILMAN JIM HARRITY COUNCILMAN CURTIS J. JONES, JR. COUNCILWOMAN RUE LANDAU COUNCILWOMAN QUETCY M. LOZADA COUNCILMAN NICOLAS O'ROURKE COUNCILMAN ANTHONY PHILLIPS COUNCILMAN MARK SQUILLA COUNCILMAN ISAIAH THOMAS COUNCILMAN JEFFREY YOUNG, JR. BILLS: 240966, 240967, 240968, 240969, 240970, 240971, 240972, 240973 - - -
This is the public Committee of the Whole regarding Bill Nos. 240966, 240967, 240968, 240969, 240970, 240971, 240972 and 240973. I want to thank all of you for being here today and welcome you to City Council's Committee of the Whole. Mr. Christmas, would you please call the roll and take attendance.
Present. Thank you, Mr. Christmas. A quorum of the Committee is present and this hearing is now called to order. Mr. Christmas, will you please read the titles of the bills.
P. (the "76ers"), or another entity affiliated with the 76ers, under which ArenaCo or other 76ers related entity would sublease the Arena Site and cause an arena to be constructed on it, including a multi-purpose sports and entertainment facility and ancillary, accessory, and related amenities, improvements, and infrastructure (the "Arena") and agree to other related conditions; (5) upon the expiration or termination of the Sublease or other circumstances set forth in the Sublease, convey fee simple title to the Arena Site to PAID for disposition to ArenaCo; (6) grant, accept, amend, relocate and extinguish easements, agreements, conditions, covenants and restrictions encumbering or benefiting the Arena Site and any City owned property adjacent to the Arena Site for the benefit of the Arena Site to facilitate construction and operation of the Arena; (7) enter into a direct operating covenants agreement among the 76ers, PAID and the City, under which the 76ers agree to play substantially all of their regular season and playoff home games in the Arena; and (8) take all actions necessary and appropriate to accomplish the intent and purpose of this Ordinance; all under certain terms and conditions. Bill No. 240967, authorizing and approving the execution and delivery of a Service Agreement between the City of Philadelphia and the Philadelphia Authority for Industrial Development relating to the provision by the Philadelphia Authority for Industrial Development of certain project-related services to promote, among other things, the growth and expansion of business, commerce and tourism within the City of Philadelphia in connection with the development of a multi-purpose sports and entertainment facility, including an arena to accommodate National Basketball Association games, and family entertainment, community, retail and other uses; authorizing and approving the obligation of the City of Philadelphia to pay in full when due the Service Fee and other amounts payable under the Service Agreement and covenanting to make necessary appropriations for such purposes; and authorizing City officials to take necessary or appropriate actions to accomplish the intent and purpose of the ordinance, all under certain terms and conditions. Bill No. 240968, authorizing the revision of lines and grades on a portion of City Plan No. 307 by striking from the City Plan and vacating Filbert Street from 10th Street to 11th Street, under certain terms and conditions. Bill No. 240969, authorizing the revision of lines and grades on a portion of City Plan No. 307 by striking from the City Plan and vacating certain aerial portions of 10th Street between Market Street and Filbert Street, under certain terms and conditions. Bill No. 240970, authorizing CBL Arena, LLC. and its successor(s) in interest to construct, own, and maintain various right of way encroachments in the vicinity of 1001-19 Market Street, 1025 Market Street and 1001-25 Filbert Street, Philadelphia, PA 19107, under certain terms and conditions. Bill No. 240971, amending Title 14 of the Philadelphia Code, entitled Zoning and Planning, by amending certain definitions relating to signs; creating an "Arena Area" within the "/CTR, Center City Overlay District" overlay; and making related changes, including a master plan requirement and changes to accessory sign controls; all in connection with zoning rules for a proposed arena in Center City; and approving a master plan for the Arena Area; all under certain terms and conditions. Bill No. 240972, amending Title of the Philadelphia Code, 13 entitled "Zoning and Planning," by 14 revising certain provisions of section 14-906, entitled "Market Street East Sign Regulations," all under certain terms and conditions. Bill No.
240973, approving the amendment of a neighborhood improvement district in the area generally bounded by, and including, 11th Street to the West, Filbert Street to the North, 8th Street to the East and Market Street to the South, with the exception of certain condominium units at 801 Market Street Condominium not included in the District, known as the Gallery Neighborhood Improvement District, to remove certain portions of such property generally bounded by Filbert Street on the north, 10th Street on the east, 11th Street on the west, and Market Street on the south from such District in accordance with the provisions of the Community and Economic Improvement Act, and under certain terms and conditions.
Thank you. At this time I recognize Councilmember Cindy Bass for a motion.
Thank you, Mr. President. On October 31st City Council adopted Resolution No. 24 240100, which authorized and directed the Committee on Rules to take all actions required by the Community and Economic Improvement Act with regard to Bill No. 240973, which will remove the site of the proposed Arena from the Gallery Neighborhood Improvement District. Given that all the other Arena legislation is being heard in the Committee of the Whole, I move that this Committee rather than the Committee on Rules hear and act on Bill No. 240973.
Thank you for the second. It has been moved and properly seconded that Bill No. 240973 be referred to the Committee of the Whole. All those in favor will signify by saying aye. (Aye.)
The ayes have it. The motion carries and Bill No. 240973 will be referred to the Committee of the Whole. Thank you. Before calling the first witness, I want to offer a few brief remarks. But I also want to ask for everyone in here to please put your cell phone on silent. Also, any sidebar conversations we will ask for you to take it outside of chambers. And also, as it relates to the process for today in terms of rules of engagement, we just ask that while everyone is doing -- while the Administration is doing their testimony about the proposed legislation here today, please refrain from any types of oohs and aahs or additional outside commentary. Just want to be clear on that. There will be a time for public comment which will take place next week. I think we have at least between four to six opportunities for individuals to come down and participate and voice their opinion, pro or con, as it relates to the legislation that is proposed in front of us today. Are we clear everyone? Are we clear everyone? (Yes.)
In the event that that doesn't happen, to my left we have members of the Philadelphia Police Department. Also to my left, we have members from Civil Service as well as the Sheriff's Department. So we want to make sure this is an orderly and very lively and robust discussion. But we'll make sure that everyone who wants to express their issues and concerns regarding this process, next week they will have the opportunity to participate during the public comment period. I want to thank all of you for joining us today as we begin our public hearings on the proposed Arena development project. This hearing marks an important step in our legislative process where we'll consider all aspects of the proposal and potential impact on our city. Our goal is to ensure a transparent, comprehensive and balanced review of the proposal, which includes analyzing how this Arena could contribute to our economy, create jobs in an inclusive and equitable manner and support our local culture and sports. We'll also be examining the concerns raised regarding infrastructure and neighborhood impact to make sure all voices are heard and all questions are answered. As we proceed, I encourage everyone to engage in a respectful, constructive dialogue. This hearing will allow for all voices to be heard so that we can move forward with a comprehensive understanding of the project and its implications. It is also an opportunity to ask questions, seek clarity and provide input so that we as a Council can make an informed decision that reflects the best interests of our community and our city. I want to thank everyone for taking time out of your schedule and being here. And with that being said, I'm going to ask for the Chief Clerk -- my Chief of Staff John Christmas to please call the first witness list. The Chair right now recognizes the author of the legislation, Councilman Mark Squilla, who hails from the great part of South Philadelphia.
Thank you. Thank you, Mr. President. Thank you everybody for attending today. It's an important part now that we start the legislative process. We received the draft legislation from the Administration passed on through the Council President's Office and introduced by myself. This gives us all now an opportunity. We've been meeting for a little over two years with a lot of the community stakeholders, listening to the concerns and challenges that this proposal will bring to the city of Philadelphia and the Gallery site, the Fashion District site. We want to make sure that this legislative process is robust, that we have opportunities for all the stakeholders and public to be able to testify and be able to have their opinions heard and have every Councilmember be able to hear those concerns and then look at the legislation to see if any possible changes should be made to the legislation or Community Benefits Agreement as we move forward. So I'm really looking forward to this conversation today, mostly listening, asking questions and really happy to see that all my colleagues are here also to be a part of this to ask questions and to get as much information as possible before a final vote will be taken. So thank you so much and looking forward to the process starting. Thanks.
Thank you, Councilmember Squilla. Will the Clerk please call the first witness list.
The Mayor's Chief of Staff Tiffany Thurman. And joining her will be City Solicitor Renee Garcia and Deputy Managing Director for Transportation Infrastructure Mike Carroll. (Witnesses approached Witness Table.)
Thank you very much. Good morning. Thank you for being here today and you can begin your testimony. Good morning, Tiffany.
Good morning, Council President Johnson and all members of City Council. My name is Tiffany Thurman, Chief of Staff to Mayor Cherelle Parker. I am here today to testify in support of Bills 240966, 240967, 240968, 240969, 240970, 240971, 240972 and 240973. These bills reflect what the Parker Administration negotiated with the Sixers for a new Center City Arena and the package of enabling legislation City Council is now considering. I want to thank Councilmember Squilla for introducing the package of bills that are now being heard today on behalf of Council President Johnson. We have submitted written testimony to City Council in advance which includes details of the legislative package under consideration. Joining me today to provide oral testimony are City Solicitor Renee Garcia and Deputy Managing Director for Transportation and Infrastructure Michael Carroll; Finance Director Rob Dubow; Department of Planning and Development Director Jessie Lawrence; Chief Policy Officer Sophie Bryant; and PIDC Executive Vice-President Sam Rhoads along with other leaders and team members from across the Parker Administration. We are here to answer any questions Councilmembers may have. We are grateful to be here and we look forward to engaging in a robust dialogue. In regards to the overall framing, under this deal we both keep our hometown 76ers playing in Philadelphia until at least 2026 and we jumpstart a broader city-led focus on the preservation of Chinatown and revitalization of Market East. The Mayor established the following guiding principles to inform her consideration of the Arena proposal: One, careful stewardship of City resources and a focus on the City's fiscal stability; two, unlocking the long overdue redevelopment of Market East, a historic and critical commercial corridor maximizing the potential citywide impact of such a large-scale development project and ensuring City residents and businesses from groups historically excluded from participation have access to related employment and contracting opportunities. We negotiated a union- supporting agreement, SEIU, UNITE HERE, Building Trades and Carpenters. We also focused on preserving and enhancing Chinatown as our guiding principle, including by responding to long-standing challenges arising over many decades. 3 billion project with no City funds, an approach that is unprecedented from our local sports facilities and rare at a national level. The Arena is projected to generate over $700 million in new tax revenues for the City and School District and nearly $350 million for the Commonwealth. Second, the Arena will unlock long-needed redevelopment on Market East, attracting investment, generating jobs and yielding new tax revenue. Third, the arena will create over 1,000 construction and operations jobs and is paired with a historic Economic Opportunity Plan to ensure employment and contracting opportunities both during construction and operations, benefits individuals and businesses reflective of the community at-large. And these jobs will be covered by the 21st century Minimum Wage Act, and many of the construction operational jobs will be covered by the existing prevailing wage ordinance. We support -- also, I want to make sure that we get on the record we support expanding prevailing wage to concession workers and the Administration is committed to making that happen, Council President Johnson. The $50 million Community Benefits Agreement will support nearby communities and make citywide investments in education and economic opportunity. Finally and crucially, the CBA investments will galvanize resources aimed at ensuring Chinatown's ongoing vitality and strengthening this treasured cultural community. With regard to City finances, this agreement prioritizes careful stewardship of City resources and focus on the City's fiscal stability and growth.
Unlike prior deals with our sports facilities, our sports venues, there are no City funds being invested in the Arena and no 7 related debt service. Based on an independent assessment by CSL, a nationally respected firm with expertise in arenas, arena construction and the forecasted 53 annual net new events during the 30 year-based lease term should generate over $700 million in new tax revenues for both the City and the School District and $349 million in new tax revenues for the Commonwealth all in current dollars.
A thousand pardons for interrupting you. I just want to announce that we do have translation services available for anyone in the audience who would needs it. The lady is seated over here in the corner translating this hearing and testimony in Mandarin and Cantonese. And if you are in need of those services, you can get a headset and hear it in realtime, what is being the testimony. A thousand pardons, Ms. Thurman. Please continue.
And I'll ensure I go slower so that it can be accurately and properly translated. These are relatively conservative estimates. CSL only considered the additional in-Arena revenue from net new events based on their actual experience with comparable facilities. CSL did not include indirect or induced impacts based on the economic multipliers. The Sixers will make an average PILOT U&O payment of $6 million a year over 30 years. Putting that amount in context, it is significantly greater than the $1 million that is paid currently by the Fashion District and bus terminal sites. 5 million tax bill that will be paid at Wells Fargo Center if taxed at the current assessment rate, and it equals the combined value of the $2 million a year PILOT from the Eagles, the $1 million a year from the Phillies and the $2 million a year from Comcast Spectacor. Let me turn now to Market East. Building on anchor destinations stretched from Old City and Independence Mall to Chinatown and City Hall, we have the opportunity to reimagine Market East to suit our modern-day needs. We can diversify uses along the corridor, adding retail, residential and commercial and boost pedestrian activity, attracting residents, local workers and tourists alike. The development potential before us is significantly driven by the Sixers assembling key parcels on the 900 and 1,000 blocks of Market East. The Sixers redevelopment plans for those blocks include 960 residential units; 85,250 square feet of retail space and 300 parking spaces. 5 million in new Commonwealth tax revenue on a current dollar basis over construction and 20 years of operations just from redevelopment. The Sixers overall investment, including the Arena and this other development in combination with proactive and collaborative master planning, will be catalytic spurring the redevelopment of other vacant or underutilized properties along Market East. I'll turn it now over to our City Solicitor Renee Garcia to discuss how the agreement expands access to opportunity. CITY SOLICITOR GARCIA: Good morning, Council President and esteemed members. I am Renee Garcia, your City Solicitor. The Economic Opportunity Plan, the EOP, and the Community Benefits Agreement, the CBA, ensure that the positive impact of this project reaches all corners of the city, and especially those residents and businesses historically shut out from participation in large-scale development projects. In negotiating this EOP, we were squarely focused on the fact that ambitious participation goals are often set and never reached. To ensure that this EOP would be successful, we consulted with subject matter experts in the Department of Commerce's Office of Economic Opportunity, OEO, the Capital Program Office, the Law Department, the Airport and PIDC to identify gaps in those prior EOPs. We are confident that this EOP will deliver results with its focus on both the numeric participation goals it sets and the terms and conditions it includes to enable the City to track and enforce compliance across the construction period and during the Arena's ongoing operations. The EOP goals for a diverse workforce by which we mean minority, women and disabled employees and diverse contractors meet and exceed those for prior local arenas and stadiums. Notably, this EOP includes goals for local, by which we mean city residents, workforce participation for the operations phase, something that has not been included in all prior local arena and stadium EOPs. To set goals in the four main phases of development, construction workforce, construction contracting, operations workforce and operation contracting and concessions, we consulted with key experts, OEO, the Building Trades, the Sixers and others to understand current availability. We negotiated an appropriate target range based on current availability plus expected increases in availability created by new workforce and contractor diversity initiatives that would be supported by the CBA's investments.
This EOP especially differs from prior ones by, number one, requiring ongoing reporting and monitoring by the Oversight Committee to continue after construction and through the Arena operations. Number two, obligating the Sixers to report to the Oversight Committee on a quarterly basis during the decades- long operations period and file 11 annual reports, which will be publicly available. Three, mandating that the Oversight Committee meeting minutes and annual reports from the Sixers be made public and posted on the City's website empowering the tool of transparency. Four, setting forth a more detailed and expansive list of what counts as best and good faith efforts. And five, making any future Arena alterations, expansions, renovations or improvements costing over $1 million or taking more than 30 days subject to the EOP requirements. With the EOP setting baseline goals for utilization and providing support to exceed these goals, we ensure our local workforce and small and diverse businesses are ready to respond to increased demand. Turning to the CBA, in current dollars the $50 million is larger than those for any prior local arena or stadium. Importantly, the CBA payments are front-loaded with 60 percent of the total being spent down in the first 10 years. 5 million going to support for education training workforce development and business development, including relating to employment and contracting opportunities that will come from the Arena, ancillary development and ongoing business activity in adjacent communities. 75 million. Assistance and support for businesses to prepare them for work associated with the Arena and ancillary development, which will be led by the Diverse Chambers Coalition of Philadelphia. Number three, Power Up Your Business $2 million. Funding to support businesses and aspiring entrepreneurs participating in the Power Up Your Business program at the Community College of Philadelphia. Program offerings will demonstrate cultural competency and be accessible to participants with limited English proficiency. Next, the Business Barrier Fund, $1 million, seed funding for pooled resources to assist small businesses with obtaining insurance bonding, paying fees, et cetera, that are needed to access work associated with the Arena and adjacent development, a combination of direct financial assistance and technical assistance. And lastly, internships $1 million internship and employment onboarding opportunities for high school and college students from disadvantaged communities and local HBCUs, for example, Cheyney and Lincoln Universities, for front-of- house and back-of-house roles with the Sixers and in-Arena operations. Our work together over the coming years is to ensure that the participant pool for these programs continues to diversify. Working together and in collaboration with trusted community partners, we can realize the goal of expanding access to economic opportunities for all. My colleague Mike Carroll will now discuss key aspects of the Arena services and event management.
Good morning, Council President and members of Council. My name is Mike Carroll. I'm the Deputy Managing Director for the Office of Transportation and Infrastructure Systems. The Parker Administration fully understands the importance of a robust and credible strategy to manage the impacts of events. Analysis of the community impact and the independent traffic and parking reports, reinforced by experience at the South Philadelphia sports stadium complex, demonstrate that active engagement before, during and after Arena events is crucial to efficient operations of the Arena and effective management of impacts to the community. Experience likewise indicates that a combination of capital improvements, communications and flexible operational responses are required to manage impacts as they arise. Effective management of event impacts includes the following elements: With respect to planning, the Sixers will be obligated to create an event management and security plan both under the sublease and through the permitting process required by PennDOT. For coordination event response, the Sixers will be obligated to participate in regularly scheduled meetings of the Arena committee that will be formed and chaired by the City and will include SEPTA and other key stakeholders. These meetings will provide for planning in advance of events and analysis of events after they have occurred to allow for course correction. In the construction phase, the Sixers cannot commence work until required demolition foundation and/or building permits are issued. In each case, noise and air quality are an element of the City's review. Additionally, any street closures require City approval and the City will coordinate with the Sixers to minimize disruptions to vehicular and pedestrian access to neighboring businesses. The Sixers will be obligated to provide their schedule of events, including Sixers games, as soon as the schedule is announced by the NBA. Other events which are not part of the NBA will also be required to be communicated with plenty of events notice. This will allow the committee to plan for confluences with events at the Convention Center, the Reading Terminal Market and street closures associated with cultural and other festivals. The Sixers have agreed to fund clean-up after events through the Center City District as well through the Community Benefits Agreement. In addition, the City in Philadelphia may identify additional cleaning services in partnership with the Sixers and will contemplate the activity of an Arena District to supplement these roles. With respect to parking, the City has determined through its independent analysis that there is sufficient parking supply to support Sixers games and other events. The Sixers will be required to secure at least 1,000 spaces and a previously announced partnership with the Parkway Corporation and the use of existing technology to manage traffic and provide wayfinding for folks who are looking for parking. On the subject of traffic and pedestrian control and safety, the event management and security plan will identify capital improvements and operational efficiencies to be implemented in partnership with the City and PennDOT. The Philadelphia Police Department and SEPTA will work with the Sixers to identify appropriate levels of officer deployment pursuant to that plan. Communication tools that minimize congestion include the use of navigational software such as Waze as well as static and variable message signs along highway routes and other approaches. Mobile phone applications will be incorporated along with information provided through websites and social and traditional media. With respect to public transit, the City's reports indicate that a 40 percent share of public transit usage for peak event times is achievable and it is required for the efficient functioning of the street network.
Various means will be deployed and updated as required to encourage ridership including, but not limited to, a subsidy identified in the agreement for public transit use and promotion of public transit use through media and other campaigns. And now, I'll turn it back to Chief of Staff Tiffany.
Mayor Parker is committed to ensuring Chinatown's continued vitality and position as a treasured cultural community for long-term residents, new residents and visitors from near and far. On the south side of Market Street, Washington West preserves the history of our country's founders and the City's thriving and iconic Gayborhood. The Administration is committed to addressing significant pre-existing challenges, including around cultural and community preservation, small business durability, residential and commercial affordability, traffic and parking, safety and cleanliness. We will leverage the CBA investments, a total of $21.6 million for Chinatown and adjacent communities, including over $14 million, to support a new Arena Services District and $1 million for long overdue master planning processes to launch a comprehensive city-led commitment to Chinatown and Market East. The core components of this commitment were directly informed by community residents and stakeholders. Not surprisingly, similar themes emerged across these conversations, concerns around housing affordability, small business durability, traffic and parking, safety and cleanliness and most significantly, preservation of community and cultural community. While most of these long- standing challenges that have developed over decades, the prospect of such a significant construction project as the Arena brings them into sharp relief. The time to respond to these challenges in a holistic and strategic way is now. To that end, we have already identified investments, new programs and policy responses related to the following areas: Small business support, traffic and parking, housing, public safety, cleaning and greening, cultural preservation and community vitality. In close, coordination with Councilmember Squilla -- in coordination with Councilmember Squilla, we intend to work in partnership with local residents and stakeholders to further develop and implement a long-term vision to support and enhance the community. We understand the stakes for Chinatown and Washington West residents, businesses and visitors and take seriously the responsibility to ensure that the Arena project does not negatively impact the community. We look forward to partnering with you, Council President Johnson, Councilmember Squilla and all members of City Council in finalizing this agreement which we think offers significant benefits for the City and its residents. Thank you for the opportunity to testify. We look forward to answering any questions you may have.
Thank you very much, Tiffany. I just have a couple brief questions during the first round and then I'll turn it over to my members during the first round. And to members, we'll be doing a clock as well so we can make this a very, very robust dialogue and discussion as we go throughout this day. I just want to go back to the EOP. Ms. Garcia, you mentioned that this EOP is different than other EOPs that we've implemented here in the city of Philadelphia in the past. So give me an idea of who's going to sit on the EOP Enforcement Board -- Oversight Board to how will this EOP be enforced, and then also what are the actual goals, the percentages that's the target for this particular EOP? CITY SOLICITOR GARCIA: Thank you, Council President. I am going to call up my colleague Nicole Stokes who is the expert in this area. (Witness approached Witness table.)
Good evening or good morning, right. Happy Tuesday, everybody.
And, Nicole, could you just do something for the record? For those who may not know, explain what the EOP is for the wider public please.
Okay. So my name is Nicole Stokes. I'm an attorney within the Law Department. An Economic Opportunity Plan is a plan put on projects geared to receiving participation from minority businesses, women businesses, disabled businesses and workers. And so, the point of the EOP is to obtain participation so that we can have an effective way in our community to benefit from the agreement as well.
I believe the first question was who would be involved on the Oversight Committee. The members of the committee would include a C-Suite representative from the 76ers, one representative also selected by the 76ers, a representative of the Office of Economic Opportunity or its successor agency, a representative of the City's Labor Standards Unit, a representative of the City's Law Department, a City Council representative appointed by the City Council President, a representative from the local community appointed by the City Council President, a representative of the Building and Construction Trades Council appointed by the Mayor and a representative appointed by the Mayor who shall serve as the Chair of the committee.
And what is the actual target goals for this EOP?
There have been goals set in various or numerous different categories that range from construction to operations.
Okay. So for skilled laborers, the workforce diversity goals are 37 to 42 percent, made up of 30 percent minority, to percent women, 2 percent disabled and 30 percent local workforce. The goals for skilled -- general laborers would be made up of 40 percent, minority 5 to 10 percent women, 2 percent disabled and 30 percent local. The goals for labor apprentice and pre-apprentice would be 50 percent minority, 7 percent women, 2 percent disabled and 50 percent local workforce. There have also been goals set in contracting construction. Contracting diversity goals will be 37 to 52 percent made up of to 35 percent minority 17 business enterprises, 10 to 15 18 percent women business enterprises 19 and 2 percent disabled business 20 enterprises. 21 There have also been 22 goals set in professional services. 23 Contracting diversity for 24 professional services is made up of to 30 percent MBE, 10 to 15 percent WBE, 2 percent DSBE which would be disabled business workers. The contracting for furniture, fixtures and equipment that would go within the Arena would be made up of to 30 percent minority business 8 enterprises, 10 to 15 percent women 9 business enterprises, 2 percent 10 disabled business enterprises. There have also been goals set for ongoing operations for hourly employees. The workforce diversity goals are 60 percent, made up of 38 percent minority business -- I'm sorry, minority employees, percent women, 2 18 percent disabled, 75 percent local 19 workforce. For management 20 employees, that would be made up of 30 percent minority, 15 percent women, 2 percent disabled and 40 percent local workforce. For salaried employees, that would be made up of 30 percent minority, percent women, 2 3 percent disabled and 40 percent 4 local workforce. We have also set 5 goals for intern opportunities that 6 would be made up of 40 percent 7 minority, 15 percent women, 2 8 percent disabled, 50 percent local 9 workers. 10 There have also been 11 goals set for general contracting 12 such as janitorial, security, AV, 13 IT, waste management, landscaping 14 and snow removal. For that 15 category, it's made up of 20 to 30 percent MBE, 10 to 15 percent WBE, 2 percent disabled. For concessions which includes ownership, contracting and labor for concessionaires within the Arena, the goal is made up of 30 to 40 percent MBE, 20 percent WBE and 2 percent DSBE.
Thank you. And what were the metrics that were used to actually come up with the actual goals for the various categories that you just mentioned?
We relied on industry experts as well as past studies. We've relied on the Office of Economic Opportunity. The Sixers did their own independent study and agreed that this would also be something that they could accomplish. And so, all together we came up with the goals.
Okay, cool. And I just had another question: This particular -- the committee that was put together, it's different from other committees that we've used in the past in terms of monitoring EOPs?
So the Oversight Committee that we're creating right now for the Sixers project is different than what we already have been doing in the past in terms of EOP plans?
Yes, in terms of make-up as well. We picked key -- we studied with industry experts, identified the lack of involvement from certain past EOPs and we specifically targeted the list that I mentioned earlier to make sure that all the key players are included so that the EOP can be effective.
So would this be a model moving forward irregardless of the size of the actual development project in terms of making sure it's diverse and inclusive and everybody has a seat at the table?
Okay. All right. How are we addressing the issue of good faith and best faith efforts, right? Often times you put out an RFP for contractors to come and do work and from my understanding sometimes folks will call back, we can't find anyone to do this type of work and therefore you really don't have the opportunity to gauge those numbers. How are we being proactive to address the enforcement around that aspect?
Within the EOP there are numerous specified actions that constitute an EOP, constitute a good faith effort. That is specific to this EOP. It's more inclusive and detailed than it has been in the past. As a result, there are specific actions that apply in this EOP that may not have been enumerated. And so, the Sixers are expected to go through these specific efforts that are enumerated within the agreement, but it's also specific that it's including, but also not limited to, these efforts. It's important to note that there's also reporting, more frequent reporting that's been covered in this EOP despite last EOPs. And as a result, there should be in a way a realtime update more frequently of what's going on and what efforts are being made to obtain the inclusion.
Thank you. CITY SOLICITOR GARCIA: If I may, Council President, because I see Councilmembers flipping, if you have the EOP in front of you, it's Pages 12 to 13. There are 16 different categories that -- oh, now everybody is flipping -- which require the production of even attendance logs, right. There are communications that are required. Policies of non-discrimination and hiring, agreements, invoices. So it is quite comprehensive. And this is not even everything, right. This is just a sampling of what could be provided that the Oversight Committee will be looking at.
And as my colleague Nicole mentioned, we looked at past EOPs as well and we wanted to ensure that we're not here 30 years from now like what can we learn from the last deals that were struck 30 years ago and how can we ensure that we have more Black and Brown businesses at the table. So to your point, we're not scrambling, right, so that we create a real pipeline for real opportunities. That's what we wanted to make sure. And so, that's where that Oversight Committee comes in. And as you --
Just as you all know, our Administration led by our Mayor, Mayor Parker, we do not lack the political will for enforcement.
Thank you. The Chair recognizes Councilmember Gilmore Richardson.
Council President, I apologize for this. It's just a point of clarification. I was thumbing through to make sure I had this here relative to the --
Okay. Thank you. This is just a point of clarification regarding your question, Council President, so please don't take this away from my time. But my question is regarding the frequency of the checking. I think you spoke to that in the testimony, the frequency of how you all will monitor onsite the EOP goals both for the construction jobs and for the other professional services goals. What is the actual frequency? I just wanted to -- CITY SOLICITOR GARCIA: So for the first period there's monthly reporting and then there's quarterly and annual. But when the Oversight Committee convenes, they will set the cadence how often they are going to meet as they're receiving all this information because it's going to be a lot of information. So my vision is in 2025 this Oversight Committee comes in and they will work through the governance of how often they are meeting and looking through information.
Thank you. I'm going to reserve because that was just a point of clarification. Thank you, Council President.
No problem, Majority Leader. Your time will be definitely --
For more specifics, we've decided that by the 30th day of each month during design and construction period, the developer 76 DevCo shall provide a report to the committee that documents the status and participation of M/W/DSBE contractors and subcontractors, which will include the name of each company, the trade, the specialty, et cetera. They will also have to report the status of participation for minority, women, disabled, and local employment on the project. By the 30th day of the following of each quarter, they are also required to do ongoing operations and they should provide a report to the committee. And then further, annually they agreed to file annual reporting with OEO and City Council concerning the performance of the EOP through the duration of the project.
Thank you. Is there -- I know you're talking about internships, and I just want to go on the record, I know I mentioned this briefly, Tiffany, but talk to me about the CBA and support for apprenticeship programs and pre-apprenticeship programs rather from the Sixers or the Administration to make sure again -- and my line of questioning is just making sure that in the event that this proposal does move forward, right, we're making sure the workforce reflects the city of Philadelphia. We want to make sure that those who have the professional services opportunities represent the city of Philadelphia. And so, when we talk about particularly in the construction industry and making sure it's diverse and it's inclusive, is there support for apprenticeship programs and pre-apprenticeship programs to make sure young people in general have an opportunity to participate in this particular project?
Council President, we have not been here long. We've only been here for at my calculation about 11 months. But in this 11 months that we've been here from day 1 up until now we've talked about an economic- opportunity-for-all agenda, and inclusive in that agenda includes workforce development. That's indicative also of our budget address that we wrote out and the budget that Councilmembers, that you all passed for FY25. So we're absolutely committed to workforce development. We're absolutely committed to pre-apprenticeship and career technical education. You see that commitment in the work that we do day-in and day-out in our current Administration and it's also indicative and clear in this deal that we've reached.
Yes, sir, it is. You can look at the allocation that we have through our CCME, which stands for a City College for Municipal Employment. We will continue to work through those details in close coordination with Council.
When we talk about the internships for the young people, where are these internships going to take place, with the Sixers, the City?
A combination of all of the above. We want to make sure that we look differently at internship programs, not just opportunities where folks in high school and college can come in and have a feel-good experience, but we're creating a real pipeline to real employment. That's also evident in our EEO -- I'm sorry, in the EOP that we struck. So what Nicole talked about in terms of management trainees, creating a real pipeline to ensure that people don't just have a one-time experience, but that they get real on-the-job experience for roles in management, so that internship program creates a pipeline well into the management training. And that's something that we fought for. That's something that we said that was non-negotiable. That was part of our guiding principles when we sat at the table with the Sixers.
Okay. That's what's up. I'm going to wrap up my line of questioning, but I do have a question for Mr. Michael Carroll. Mike, the transportation study foresees gridlock in Center City if it exceeds more than 41 percent. It says 41 percent of game attendees if they drive there will be some level of gridlock. But give me an idea of -- some folks think that the traffic will have an impact on the Jefferson Trauma Center, right. Give me an idea, Mike regarding, in the event that the Arena does move forward, I know you've done extensive work around traffic studies, that in the event that there's an emergency, people that's going to and from Jefferson Trauma Center will still be okay.
Yeah. So our independent analysis confirms what you're saying, that the access to the trauma center will be okay, and I'll get into a little bit of detail about that. But I also want to add that Jefferson took a look at this as well and their CEO concurs that there won't be significant impacts to the -
So for the record, Jefferson Hospital's CEO said that there will not be a significant impact on the Jefferson Trauma Center and people getting access to and from this trauma center, correct?
Okay. Just want to make sure we get that out there.
All I can add is that when you look at the potential impacts, they're spread around. They're not concentrated around any access points or access routes to the emergency room in general where we see potential impacts that are coming from an east, west perspective, not a north, south. And the 10th Street corridor which will be affected as pedestrians come and go from the arena will be reserved for emergency access. So, in fact, there will be police there that will help any emergency vehicles that need to come down that corridor get there probably even faster than they would under normal conditions.
Okay. And last question: Some think that in the event that this project moves forward that the Sixers should be responsible or the City should be responsible for upgrading the SEPTA station at that particular site. What is the Administration's perspective on or position on --
Okay. Is it your thought that if it's not the Administration of the City, it should be the Sixers that should be responsible for upgrading SEPTA transit?
That responsibility is going to be the subject of conversations between SEPTA and the Sixers. We certainly want to support them reaching an agreement. And so, to the extent that we can provide any information or help them talk that through we're happy to do so. But they need to reach agreement about how they do that.
Okay. Thank you very much. The Chair recognizes Councilmember Jones.
Thank you, Mr. President. And thank you for your testimony. I have four questions, one has already been answered. I occupied that space dealing with affirmative action and, that is, a robust plan and action of option. Stuff happens, you need to be able to respond to it. But I appreciate the initial architecture of that plan. The other questions that I have are threefold and you may not be able to answer them all now, but I expect an answer by the conclusion of these testimonies: Number one, to drill down on what President Johnson talked about, I need to know the SEPTA plan on how people that want to enjoy that Sixers stadium would get to and from their events from where they're coming to that station safely. I need to drill down to say is there going to be a Sixers party train? You said that the traffic was coming east and west. How are you compensating for that by way of ridership, train availability and the like?
Pause, pause, pause. Second part of my question is for more the Commerce Department. It is known that Macy's may not renew their lease. And between Macy's and the site of that stadium, we're looking at 30 to 40 percent abandonment, lack of occupancy. What is the economic plan for developing that? I heard parts of it that there might be in the Community Benefits Agreement loan funds, whatever, but I want to hear about the recruitment and the theme of that recruitment. Is it a Philly experience, a taste of Philly experience, Philly businesses? What is the plan to put businesses and the percentage of businesses that would be local? Number three, what is the security plan for that corridor during those times of games and events? During the last election, people highlighted nationally some of the challenges that we had in that area and downtown. And one nondescript-elected politician described us as Gotham. How do we change that so that suburbanites that want to enjoy the festivities that we plan are going to feel comfortable about that? So those are my three questions. And now, you can begin answering.
Okay. I'm going to take on the first one and I'm going to just -
Excuse me, Mike Carroll. Just for the record, I just want to let members know you will have three minutes, so to get straight to your question and then let them get an opportunity to respond.
Okay. I'm going to take on the first one and then I will defer on the second one. So the SEPTA plan really depends a lot on what SEPTA is working on, so we are in communication with them. To put it as succinctly as possible, the question comes down to is the service available. So that means that SEPTA has to plan for trains, not special trains, but train service which is available when the Arena events let out, so that's around 10:00 p.m., past 10:00 p.m. So the matter at hand is that we expect folks are going to find there's plenty of capacity on the Market-Frankford Line so that's the east, west. There's going to be plenty of capacity on the Broad Street Line which is within the City's boundaries to get you north, south. But when folks are coming from the suburbs, we need to make sure that that Regional Rail capacity is there. And so, that's what SEPTA is working on, making sure that they have capacity for folks going to and from the suburbs to attend events, and that's where most of the work is going to be focused. So we're supportive of that work. We can make sure that on the street the access to the concourses is dealt with, all the Headhouses are available, they're free and clear. Our police will be involved in that. Event staff will be involved in that. But once people get to the platform, they need a train to get on in order to get out of Philadelphia out to the suburbs, and that's one of the keys here.
I'm going to need a little more detail as to the safety component of that when people are let out of those events. People come -- everybody should be safe on SEPTA. People coming off of second shift at night want to feel like they can get to my District, 60th and Market safely. In particular, people that aren't very urban that are going back to the suburbs I need to know a little more in-depth how we're going to deal with both safety and the perception of safety.
Absolutely. Right now and since the beginning of this Administration we have met regularly and we will continue to meet regularly. Through our Office of Public Safety, our Director Adam Geer and with Commissioner Bethel, our Police Commissioner, they work very closely around safety and perceptions of safety with their counterparts at SEPTA. That will continue to happen as we continue to have discussions around what's going to happen not just down at Market East for what's happening down there through this deal but citywide. So absolutely, that is an ongoing priority and those are ongoing meetings that we're having and that accountability is key. So absolutely, Councilmember.
So to your discretion, Mr. President, would you like me to defer on Questions and to allow for (inaudible) or can I proceed?
I would like for Questions and to be answered.
So with regards to Macy's and the development that's happening in and around that parcel, I'd like to call up Jessie Lawrence, our Director of Planning and Development. (Witness approached Witness table.)
So my name is Jessie Lawrence. I'm the Director of Planning and Development. Essentially what we're setting the stage for is a Market East Master Plan. The master plan will look at how we will guide growth, how we want to grow in the anticipation of development. It will look at ways that we leverage the existing opportunities for development, those that are past, present and future. That master plan will really be intentional on not just the growth but all the things that support quality-of-life issues looking at how we can be intentional about development, improving safety. One of the biggest things in quality of life along the corridor is vacancy. In our observation about a third -- excuse me, a quarter of retail storefronts from City Hall down to the Independence Mall they are vacant. If you go south to Chestnut Street, a third of those storefronts are vacant. So we're looking at ways to make sure it'll be, you know, it'll look at ways to look at how vacant properties, vacant sites, those that are, you know, structures that are vacant, lots --
Can I get a point of information. To follow on what my colleague is getting at as well, so there's a thought that in the event this arena is built in Center City, it would spur development along that corridor. Can you elaborate around that particular theory that if this arena is built it will revitalize East Market Street? Can you elaborate on that please?
So East Market Street is essentially a main street that once was and it is not right now. And adding the elements of what's being presented here as another anchor to leverage the existing anchors that have been pitched over time, the thought is that it would spur development. It would be a catalyst for that development. The vibrancy that would return by way of jobs, tax revenue, attractiveness for the most part. The Arena itself presents a proposal on both sides of Market Street, but the thought is to not depend on just the Arena. There's a qualitative aspect, but there's also a quantitative aspect. And we can make the corridor attractive by assembling these parcels and jumpstarting the development along the corridor, but we can't bring other people to develop those key vacant parcels until we insert something. There have been some attempts to do that over time. Unfortunately, we got hit with COVID which really kind of stalled it. I know that there's a sense of diversifying those uses. We are looking at the addition of just retail, and also residential office space could be something on the potential on the horizon, but that would be responsive to whatever the market is right now.
So -- I mean, thank you, Mr. President for that. I want to know in that theme how much emphasis will be given to Philly, a taste of Philly, Philly-based businesses that might be successful in other parts of Philadelphia being attracted to that corridor to benefit from that corridor? When we went to Chicago most recently, when you go out of your hotel to maybe to go to a sporting event, you don't want to go to Five and Below. You want to experience something that represents our city. How are we focusing in on that opportunity?
So there's a thought that we would be looking into an Arena Services District. And part of that requires us working with small businesses that are in the immediate area. We'll be looking to support the programs that would be in collaboration with some very key community-based partners and that conversation will be had about how to incorporate the local aspects into whatever we do as far as potential retail and uses within the arena as well. Does somebody want to add to that?
Did you get your last question answered, Councilman Jones?
And I just want to add one part on security, and I'm just being fair because we're going to ask questions on both sides. But the CBA does cover a significant amount of security cameras and lighting for that immediate area. I know because we reviewed this information with the District Councilmember but also was proposed from the Administration. So do you want to elaborate on it?
Yeah, that's a big part of the answer. And in fact, we are starting to plan out the configuration of the deployment of more cameras, significantly more cameras, a broader area of coverage, so in particular getting feedback from neighbors in Chinatown, Washington West, others where we really don't have significant deployment for that purpose. That will be in place. We do have LED lighting in most of this area, but we have the opportunity to upgrade that lighting with potentially more fixtures. But also, one of the benefits of the LED lighting that we're putting in place citywide is we can actually control remotely how bright it is. We can manage that remotely. We can manage it, you know, push a button. But we can also make sure that the lights are maintained in a state of good repair so that there aren't these dark spots that occur with the old-fashioned lights that we replace. So we've got a good strategy on that front. I will say with respect to the security, people's perceptions thereof of the SEPTA system, I think we are on the right track and it's certainly going to be a challenge for people to extend beyond the post-pandemic world that we're seeing in front of us now to 2030, '31, '32, but the trends are moving in the right direction. So, for example, just the one measure I think speaks to it is the ridership levels on SEPTA. And if you go back to the winter of 2021, we were about 40 percent. Most recently looking at the information we have, we crossed 70 percent. So my expectation is by 2027, 2028 we're kind of back to what things were like in 2019. There's a lot of work as the Mayor's Chief of Staff said to coordinate with our police, our Office of Public Safety, SEPTA police which is staffing up to get a handle on what's going on the system and make sure we're very responsive to the feedback we get from riders, from people who live and work around the SEPTA system, and I think we're on the right track.
I just would end with, Mr. President, I don't want to create an environment along this corridor that makes people want to clutch their pearls. I do want there to be an environment where people feel safe, and sometimes you don't do that by overdoing the boots on the ground but it's more subtle, cameras and other kinds of deployment of police. But we only get one chance --
And that is going to be nationally looked at. So I'm looking for as we go forward, Mr. President, a little more detail in each of those plans so that we can evaluate it and give feedback.
Thank you, Member Jones. The Chair recognizes Councilmember Jamie Gauthier -- point of information. Chair recognizes Councilmember Squilla.
Yeah. Thank you, Mr. President. Also too as part of the CBA, I know that there was a public safety headquarters being proposed on Market Street. That would include incorporating a location that would coordinate between the police, SEPTA, PATCO and Jefferson, right, and that was going to be also within a -- to really go and work on a five- or six-block area surrounding that location?
Yeah, that's absolutely right. And on event day that's going to be a crucial element to making sure we reach that standard you're setting, Councilmember.
I do have a question though regarding public safety. So I'm from South Philly, right. And in South Philly down in the Stadium District area the police patrol the whole neighborhood during every game, right. And that was part of a deal that took place when the stadium was first built, that that neighborhood is pretty much -- I'm not even going to say protected because you still have unrulies that leave the games and still do a lot of things in neighborhoods and we get the phone calls about it. But for the most part you have police officers, I guess, through a contract with the City that governs that area on games. Will it be something similar when it comes to the games downtown --
Yeah, we have a very present and active police force and that won't change. That will continue. Their presence will be felt. And to Councilmember Jones' point, the perception of safety is very important as well as the reality of safety. So absolutely.
Thank you very much. Councilmember Jamie /Gauthier/, Gauthier.
Thank you, Council President. And thanks so much to the Administration for being here today. My first questions are about SEPTA. I know that I don't need to remind anyone in this chamber how much everyone in the city relies on SEPTA to get around. We know that SEPTA has been struggling financially for a while so asking them to absorb any cost, whether construction or operational, to subsidize the Sixers Arena hurts the entire city. If SEPTA's financial stability is not explicitly addressed in the legislation, we should not vote for the Arena. So with that, my first question is around construction cost. My understanding is that the initial cost for renovations to Jefferson Station because of the Arena construction would be or could be as high as $30 million. These costs include lost revenue and changes to the station, including removing and reinstalling an HVAC system that was very recently renovated. Will we have the exact cost estimates for renovation before this legislative body takes a final vote?
So we know that in working with SEPTA and meeting with SEPTA that they are currently doing a financial analysis and that those numbers are forthcoming. They have not been finalized yet. And so, absolutely as those numbers are finalized I I know that SEPTA will share that. And in terms of our Administration understanding the importance of SEPTA and the importance that it plays to even the vitality and the in-person work that we are calling our staff, our Administration to do, we have demonstrated in the FY25 budget that we support SEPTA. Rob Dubow --
-- our Director of Finance, will speak to that. But absolutely, those numbers will be shared with you as they're shared with us. Rob.
The explicit question is will we have the exact cost estimates for the SEPTA renovation, which could be as much as $30 million before this legislative body takes a vote on the Arena package?
As soon as we receive those numbers, you all will receive those numbers, if you don't receive them at the same time that we receive them. We have not received them yet so we are waiting for that.
Those numbers are not finalized. But I know -- I'm sorry, Councilmember Gauthier. I know that our Director of Finance, if that's okay, wanted to speak to the financial aspect of SEPTA.
So in our proposed budget we put in an amount that would equal the match required for the proposal that the Governor put forward in his proposed budget.
That meant increasing our contribution of 109 million to 133 million, so a $24 million increase. As you know, the state didn't adopt what the Governor proposed. They adopted about a third of what they would have gotten under the Governor's proposal. We maintained that higher amount in our budget and Council approved that higher amount, so together we kept that 133 million in the budget which meant that we put in much more than our match requirement. It's kind of a way of showing how important SEPTA was to us. CITY SOLICITOR GARCIA: I just want to -- Councilmember, I just want to add that the Sixers are on the hook for all the construction and infrastructure costs for the subway station. What I believe the contention is now is the increased service costs running trains late at night. And I'm sure SEPTA will speak to that tomorrow when they're -- but per the deal, they have to pay for all the construction infrastructure.
Why is that not explicitly laid out in the legislation? CITY SOLICITOR GARCIA: It is in the term sheet. I don't have all of the -- that is something in the term sheet and in the sublease agreement. And I'll find you the exact provision in the term sheet, so it was not necessary to put in the legislation. I know there will be lots of questions tomorrow about the service and operations aspect to it.
My understanding is that 76 DevCo traffic estimates are based on a 40 percent ridership rate among fans which has already been mentioned. Currently Regional Rail evening service at Jefferson Station runs every one to two hours. The only chance we have to get to 40 percent ridership would require Regional Rail to run every to 30 minutes 5 after games. 6 This would produce a 7 shortfall for SEPTA according to 8 them of $20 million to $25 million 9 per year net of ticket sales 10 revenue. Who will pay for these 11 costs and where does the legislation 12 specify this? 13
So I think 14 as was mentioned before the City 15 feels confident that we have done our part in terms of oversubsidizing SEPTA's operating budget and in terms of setting aside the $3 million in the Community Benefits Agreement which can further subsidize transit fares. So we encourage SEPTA and the Sixers to try and reach an agreement. We recognize the fact that that service needs to be there. And that goes to my previous comments, we can't have people ride trains that don't exist, so we fully acknowledge that there is a need to add service in order for us to meet those goals, but we're in a role of supporting conversations between other entities to reach that agreement.
Do you think it's important for us to have answers to these questions around significant costs before we vote on the Arena package or do you think it could just kind of be like an unknown?
Well, I think it's not just a question of legislation. It's a question of the Highway Occupancy Permit that PennDOT is going to require the Sixers. It's a question of the lease agreement itself. And so, these are questions that we have an opinion and we can share the opinion, but we can't force either the Sixers or SEPTA to reach an agreement. There's details that need to be worked out. I think it was mentioned before we don't have all the details right now from SEPTA. So as we get information, we may be able to clarify that response but that's where we stand right now.
Thank you very much. The Chair recognizes Councilmember Isaiah Thomas.
Good morning, Council President. Good morning to the listening public. Thank you all for being a part of this robust conversation. I'm sure you all know where I'm going to go with this. So my first question is really more of a concern. If we are allowing the Sixers hypothetically speaking to have an arena, which this proposal is presenting, why is it that we're not mandating for the Sixers, the entity, the actual company itself, I don't know if it's an LLC or whatever type of entity it is, why would that entity not have to relocate back to the city of Philadelphia by the time the arena is built in 2031?
Councilmember, if that is something that you would like to request or ask or require of the Sixers, we will not stand in the way of that.
So, Council President, I do want to go on the record that I think that it would be a good idea that if this proposal is granted, right, and I'm thinking about the tax revenue for the City of Philadelphia, currently right now the entity, the Sixers entity is a New Jersey-based company, and I will definitely put this on the record tomorrow. If we do agree to give them an arena, I think part of the deal should be that the company itself be headquartered in the city of Philadelphia so we're not just getting that wage tax 41 days a year. We're getting it 365 days a year. Now, you can practice anywhere you want, right. I'm a basketball guy. I get it. You can practice anywhere you want. I don't care where you practice. I care where you clock in at 9:00 a.m. So I wanted to put that on the record first and foremost. Secondly, the Mayor talked and the Mayor's team talked a lot about this being a phenomenal deal for Black businesses. At some point throughout the course of this hearing today, because I don't want you to take all of my time talking about it, but can you give us more details about how Black businesses will benefit from this deal. Specifically listening to some of the agreements that I listened to Council President communicate, Councilmember Jones communicate, and us not having all of the details to be able to make that mandatory. Now, I'm not talking about the construction side. The construction side is only one part of it. I'm going to push the 20 percent number on professional jobs, right. I heard the 20 percent number which relates to architects and professional jobs. I want to push that number to be even higher than percent. But at some point throughout the course of our conversation today, can you make sure that you elaborate specifically on how Black businesses will benefit from the building of the Arena? Once the Arena is already built, not the construction jobs, the professional jobs that's in the Arena, the opportunity for people to own businesses and have storefronts and things of that capacity, so please talk about that at some point before we leave today. The next thing, I want to thank Councilmember Jamie Gauthier for talking about the traffic and SEPTA thing. I think she's absolutely right. That was one of my questions. We kind of need a little more detail on that before we take the vote. I understand you're saying that it's between the Sixers and SEPTA, but the general public don't look at it that way. They just see us all as government. So the reality is that for us it would be very beneficial to have that information before we take this vote so we understand any type of unintended or ill-advised consequences that could present itself, especially since I just think it was today or maybe yesterday SEPTA announced like a 13 percent increase in their fare. So 14 we do need to know details on that. 15 As I close out, Council 16 President, because I heard the 17 buzzer, what I do want you to talk 18 about on the record right now is 19 Chinatown. So every Thursday I sit 20 here and I'm so close to public comment. Chinatown has said that they have not had an opportunity to meet with the Mayor to talk about this issue robustly. Can you please for the record give us information, detailed information on all of the meetings you've had with the Chinatown community, and also please talk to us about why there's only $1.6 million in the grant to assist businesses impacted by construction when I believe when we did I-95, I believe that two-week process or so cost us about $5 million that we spent on business disruption. So if we did 5 million for about two weeks, help us understand how 1.6 million is going to last 10 years?
So the first I'd like to do is to ask John Mondlak, our Chief of Staff for Planning and Development, to come up and talk about the meetings that we've had. As he's coming up, let me be very clear. We have had ongoing stakeholder engagement meetings with members representing Chinatown, Market East, most recently Wash West Civic Association. There is ongoing engagement and conversations that we'll continue to have. But I unequivocally or I want to be very clear. We have had meetings. We'll continue to have meetings. We are an open-door Administration --
Yeah, I want to hear about -- I want to be very clear. I'm not accusing the Mayor or the Admin of anything. I'm not saying you guys have or have not had meetings. So I apologize if my tone is one that suggests that you have or have not done something. I'm just letting you know that every Thursday we're here it is communicated on a consistent basis that people are being ignored and their voice is not being heard. So I think it's important that you put the information on the record who have we met with, what have the conversations consisted of, who was present. I think that is something that's really important. And before I close out, please just explain to me the 1.6 million number because that number doesn't make sense to me.
Absolutely. So as I shared, we've had ongoing meetings and engagement with all stakeholders throughout the City, including those representing Chinatown. There are a number of Chinatown stakeholders and organizations, groups that are both for and against this deal. We recognize that. We've opened our door and had those meetings. John Mondlak, our Chief of Staff for Planning and Development, will go through a list of all of those meetings and the engagement. And then we'll go in and answer your additional questions.
Thank you, Councilman. My name is John Mondlak. I'm Chief of Staff to Department of Planning and Development. And I'm going to just summarize the meetings that have taken place in the last year or so with the members of Chinatown as far as actual participants. I'll have to follow up with names if that's what interests you. But essentially, we met monthly with the No Arena Coalition, and again we can provide some names starting back over a year ago. The dates would have been -- and again, not every single month, but there's about meetings. I think we had to miss a couple because of scheduling. But we met June 1, 2023; June 2, 2023; July 14, 2023; September 8, 2023; October 13, 2023; January 26, 2024; February 16, 2024; March 8, 2024; May 10, 2024; June 14, 2024. In those meetings -- I'm sorry.
I just want to do a point of information as well, and again, we're just doing transparency. I see Sam Rhoads there and I -- represent PIDC. When we first started this process, you talked about the Chinatown Coalition being a part of the actual initial planning of the actual study, what went into the study. So you may want to also provide the Councilmember also additional information after John Mondlak.
I could even add that in and if Sam wants to add more, that's fine. So in those meetings were again the No Chinatown Coalition. It was senior folks at the Department of Planning and Development along with PIDC. Early in the meeting we shared the scope of work and the RFP responses to all of the studies. And we took their input into our selection of who we selected and we also modified the scope of the community impact to accommodate some of their requests. We couldn't accommodate all of their requests, but we did modify the scope to incorporate some of their requests. So that was initially -- the rest of the meetings throughout the year focused on status of the impact studies, lots of questions about process, how this would unfold when it came into the public process, what commissions and boards it would go to, what is the procedure, what is the process, so there was a lot of fact-finding questions that we answered. And there was also a fair amount of lobbying because they made their position very well-known that they were opposed to this. At the time we were gathering information doing the studies to try to inform a decision, so we had nothing to say to that. But we entertained again the conversation around why they thought it would be adversely affecting Chinatown.
So I think more details about those meetings would really be important and helpful for us, because again that's not the information that's communicated on Thursdays in Council session. So we would definitely want to see who was there, maybe how many people you may have been able to persuade to be with you, like did that happen and things of that capacity --
Okay. Got you. That's amazing. So I know my time is up --
We had not made a position clear at that point. We didn't have a position. It was really just an information exchange. They had a position for sure. We did not have a position.
Thank you. That's extremely helpful. My last question was the 1.6 million for business disruption. I was just wondering where did that number come from. And if we were to approve this project, how can we assure that that's the right amount of money when we spent like 5 million on business disruption on I-95?
Well, I'm out of time and the Council President has to move on. I'm sure that there's been a lot of information --