-- but what we're asking for is the members of City Council to get a summary of the meetings.
What was taking place during those meetings because, again, that's not the information that's communicated to us. So if you could just help us with a brief synopsis of that stuff. I think you giving those dates that you did in that timeline was extremely important and that was something that I was not aware of. So if you can give us a brief summary similar to the other information, that would be helpful because I don't want to monopolize the time. I do think the 1.6 million is important. And at some point I have to pass it to one of my colleagues. So if I can just get an answer to why we did 1.6 million for business disruption, I can save my line of questioning for the second round.
Okay. I just want to make clear that there are many more dates that I'm going to have to --
I'm sure there are and we would like to have -- maybe, Council President, do you want them to put the rest of the dates on the record? I'm just trying not to monopolize too much time.
It would be more prudent that you just provide --
-- the Chair and members of the Committee of the Whole the actual documents detailing your actual meetings.
We are very happy to do that. Regarding the Black and Brown businesses -- thank you, John -- we'll bring up Nicole.
Okay. Regarding Black and Brown businesses, first I would like to note that within this plan minority is defined as a person who is African American, has origins in any of the Black racial groups in Africa; Hispanic Americans, a person of Spanish or Portuguese culture within the origins of Mexico, South or Central America; the Caribbean islands regardless of race; Asian American having origin in the Far East, Southeast Asia and Indian; and then also the subcontinent or the Pacific Islands or Native American having origins in the original peoples of North America. So that is what's incorporated into minority in this plan. To your point, it's important to note that the EOP plan contemplates businesses such as janitorial and building cleaning, security, audio-visual production, IT services, snow removal, landscaping, waste management, food and beverage operations and other building operations and management services. Furthermore, it contemplates concessions within this agreement. Concessions is defined as the sale of products or the rendition of services for consideration on or using the Arena --
Can I interrupt because that's not what I'm talking about.
But I don't have the amount of time right now because my time is up. If I can move on, I just really need you to answer the question about the $1.6 million for the Business Disruption Fund. I really need to understand why do we think that $1.6 million is enough when we spent $5 million on I-95. We're going to dance around Black businesses. That's going to be a long dance. But the Business Disruption Fund, if I can get that answer then I can submit my time and come back for the second round. Why do we think $1.6 million is enough if we're looking at almost a decade of construction when we spent $5 million on a couple weeks?
Thank you, Councilmember Thomas. Sophie Bryant, Chief Policy Officer.
I'm doing well. Good to see you as well. So the math and the rationale behind this, the average amount that Commerce Department uses for business disruption is around $20,000. So we calculated 40 businesses immediately proximate to the Arena and had a dollar amount of $20,000 per business times four years, which is the anticipated construction period. And then we did divide that in two. And I think our thought process there is we would leverage that $1.6 million and bring additional investment in. I think an important thing to note here is the I-95 example sort of like seismic and massive with full closures of streets, I think as Mike Carroll has mentioned and can go into more detail about, we're not planning on full street closures here. So I think the thought is less disruptive. But to your specific question about why that amount, based on what Commerce Department sort of estimates for similar kinds of efforts around large scale construction projects.
So do you anticipate if that number isn't enough getting revenue from either us on the City side or support from our state partners?
Or philanthropy. I think this is a case where sort of the Mayor's Office of Strategic Partnerships could come into great practice. I think there's a lot of attention and focus on the Arena so it is an opportunity to rally the civic community, the philanthropic community, the business community to help support businesses that might be impacted.
Sorry for cutting so many people off, but my time is so short. Please don't take it as disrespect or anything like that. I'm just trying to get a lot on the record. Council President, thank you, sir. I would definitely want to tee up for a second round because a lot of that was abbreviated that I wanted to put on the record.
Absolutely. The Chair recognizes Deputy Whip Cindy Bass.
Thank you, Mr. President. Just a couple of questions, and actually a lot of the questions I was going to ask have been asked already, but there are some things I'd like to go over just for clarity sake. Just talking about what Councilman Isaiah Thomas just mentioned around the support, the supports for existing businesses and the $1.6 million. And so, doing a little research and actually being around for a minute and recognizing that when we did the work -- I was a congressional staffer when we did the work on the Market-Frankford El line and the amount of dollars that were allocated to those businesses, many of whom ended up going out of business anyway but this pales in comparison. So we're talking about a one-time $1.6 million investment versus when that project was happening, it was over -- I forget exactly how long, but let's say roughly like six to seven years or so. And the amount that was spent on those businesses was $2 million and $3 million per year. And so, this number at $20,000 per business for 40 businesses, per business, is really just not a reasonable amount of funding in my opinion to make sure that we're able to keep these businesses afloat. The other thing around the amount of traffic in the area, and I know you said that you didn't expect that it would be the same as 95 in terms of street closures, I think it'll be the same, if not worse because you'll have gridlock, you'll have difficulty parking. People may not feel comfortable trying to find a parking space, walk all the way back to Chinatown and so forth. So there is going to be significant disruption. So I just want us to figure out how do we revisit that 1.6 number because it's not adequate. So that's my first question. Another question that I had was around, Madam Chief of Staff, your statement about notice required to the City that once the schedule comes out then the Sixers will be required to provide a schedule to the City or actually they would -- yeah, they would be required. But the question I have on the other side is for Sixers or whether there's concerts or whatever, even though the notification is required is there also a corresponding approval required by the City for those activities? So the City, do they just tell us what they're going to do or do we have a say? Listen, if you want to get a block party permit, you got to get approval from the City. And so, are we going to have some sort of say in terms of what actually is going to be happening and on what days and does that conflict with Wawa Welcome America or Made in America or some other major activity that we have? So what will the City say in those manners? And then I had some other questions related to SEPTA, but I'll come back to those.
So I'll turn it to Mike Carroll to talk about our robust event management plan.
So generally speaking, when it comes to Sixers games you're not in a position to be negotiating with the Sixers, you're negotiating with the National Basketball Association. So generally speaking, that will be pretty much what we're told is going to happen.
So outside of the Sixers what about the other events, concerts, activities that will be happening, do we have a say as a City in terms of like an approval process or is it that they're just going to tell us we booked this on this day, we booked that on that day? Is there any say that the City of Philadelphia has or is it just --
There's a big difference between a say and approval. So we will communicate to them any conflicting events. We will communicate to them the additional requirements in terms of managing events. At the end of the day typically it will be their business decision to figure out whether that's worthwhile or not. But what you need to keep in mind is that their event-goers, attendees' experience is the same experience as everybody else's. So their interest is to make sure that there's good coordination, the people that are attending their events aren't impacted in ways by everything else going on. And so, it's sort of a mirror situation. They can't then turn around and tell us, oh, you can't do this because we're having a concert or you can't do that because we're having a game. We have to coordinate, and that's the purpose of the structures we've put in place to make sure there's good coordination.
So you expect there'll be coordination, but not approvals?
We're requiring coordination. In all the documents that we've talked about, including the agreement, including this legislation we're talking about, including the Highway Occupancy Permit that PennDOT requires --
-- but not approval? CITY SOLICITOR GARCIA: And, Councilmember, if I can say from a legal perspective you do not want to be in the business of approving. I mean, that gets into First Amendment and government speech issues if we're saying that you can have this and you can't have that.
I understand what you're saying, but I also think that there might be a time -- and I don't know in what particular instance, but I'm just saying that the City of Philadelphia might at some point have to say this doesn't work because of X, Y and Z and be able to make a call and say this is not going to be a possibility.
So typically the category that falls into that is something that's along the lines of Homeland Security. So if there are life-safety issues that come up around the coincidence of events, we have police powers throughout the city of Philadelphia, the state similarly, also the federal government can step in and dictate exactly what is and what is not going to happen.
I think also -- I mean, we're not new to this, right. We see robust coordination happening down at the existing sports complex, right. We see existing coordination happening through our Office of Special Events under Jazelle Jones, our City Representative. So we're not new as an Administration or as a city proper in working with different entities around coordinating around large scale events or even smaller scale events. So, yes, we will work with Reading Terminal, the Marriott --
-- we will work with all of the entities that even Mike mentioned to ensure that there's robust coordination. So we're not displacing the Flower Show, we're still going to have the Flower Show. And should this deal be passed, we also look forward to having games and different events that will take place at this new site. Regarding the Business Disruption Fund, there is the $1.6 million allocation, but we also have $14.1 million in our CBA or through our CBA that is allocated through the Arena Services District that will also address some of those concerns around business disruption. But I want to go back to a point that I made earlier. Our Administration does not lack political will. We want to see -- we have to see small businesses thrive, Black and Brown businesses thrive, all businesses thrive. That's not going to change with this deal. That's why we didn't just rush to get to yes. That's why we made sure that we did our homework. That's why we made sure that we went on the learning journeys going from different cities across the East Coast to see how other cities did it, what they learned from it and ensuring that we learned from their learnings, from what they did well and what they would do differently should they go back, and that is what's represented here and that's how we could say that this is historic and a deal that we are proud of.
So let me just add this then. So we've done the research, we've looked at all these other places and what they have done. If we have another 14 -- what did you say the number was, 14?
So if we have those funds and we have the ability to use them for this effort to make sure that those businesses don't go out of business, then I would say let's not have this sort of slush fund or pot of gold sort of set aside. Let's really put those funds in and dedicate them. Let's dedicate those dollars to make sure that those businesses are not going to be gone by the time that this arena is built. I think that ensuring that we frontload those dollars now is going to be crucial to ensuring that we have a Chinatown by the time the Sixers Arena, assuming it is going to be built, by the time that that's said and done, that those funds are available. I don't think that setting them on the side and saying, oh, well, we have some other funds that maybe we can put in or maybe we'll bring forward once we run out of the 1.6 because that 1.6 is going to go in like five minutes. It's not enough.
And we have a Commerce Department and an Administration that's going to --
So let's frontload that all now. Let's frontload that all now. Let's not talk about 1.6. Let's talk about whatever the end number is. And, listen, if it's too much money at the end and we have to move some around back to Commerce, that's fine. But let's not start out shorting the businesses that are going to need these funds. And let me just say one other thing real quick because I know my time is up and I'll come back around. Regarding the whole SEPTA situation, I know that some of my colleagues have touched on that. I don't believe, as I don't believe any of my colleagues do either, I don't believe that the City of Philadelphia can sort of sit back and say, SEPTA and Sixers work it out, work it out who's paying for this.
And let me be very clear, Councilmember. We are not sitting back. There's nothing about our approach or what we do day-in and day-out to suggest that we're sitting back. We're in ongoing active conversation with SEPTA and the Sixers. That is not our approach. That is not who we are.
Okay. I'm glad to hear that. But what I want to say is I had a briefing with SEPTA this morning about this matter and they're saying, SEPTA is saying they're not paying for these costs. They're not going to do it. And so, the question is who's going to do it. If they're saying they're not going to, and I know you and I know that you can be very direct and can reach out to them and say, all right, who's going to be paying for the work at Jefferson Station, because you've said that it's not going to be -- the Sixers have said that there's not going to be any cost that the taxpayers have to absorb. This will be a cost that the taxpayers have to absorb so --
No, I want to make sure that I clarify and then I'll kick it over to Mike. With regards to costs, the Sixers are paying the construction cost for SEPTA. We can go through additional details through Mike Carroll.
The construction costs will boil down to the details of the construction itself and that is not fully worked out. We have seen the Sixers propose a couple different approaches to how they want to do construction. I think they're zeroing in on exactly what that is.
I just have a point of information, Madam Bass, just real quick. Is there analysis from your conversation with SEPTA that there would be an increase in ridership if the stadium is built or not?
There would be as long as the service is there. So that service has to exist which doesn't exist after 10:00 p.m.
So the cost to them is more additional services?
Okay. But they will have the increase in ridership so you have to see if you're going to make more based upon the services that you're putting out?
Well, I can't speak to the calculation SEPTA went through, whether they break even, it costs them more or cost them less. But I think what they're saying is that at the end of the day they need more operating revenue or operating funds in order to provide that service --
-- so that service can't just be there on game day. It has to be there every day. Otherwise people won't be able to rely on it and you can't pay the folks who operate just for those game days. It has to be an established service. That's their position on the service.
Okay. I'm going to give it back to Councilmember Bass. But I think SEPTA's number one priority right now should be taking care of the workers of TWU right now that keeps the city moving forward. So, Councilmember Bass.
Well, thank you, Mr. President. And as the sister of a TWU, proud TWU employee, we want to make sure that SEPTA is keeping that in mind, but I guess some of these questions will be brought up because SEPTA I believe is going to be testifying tomorrow or so.
Okay. I thought it was tomorrow. All right. Well, very good. All right. So we'll circle back, but I think that there is some confusion around who's paying for what regarding Jefferson Station and we just want to all be clear and have that laid out. So thank you so much. Thank you, Mr. President.
And we also realize that there's some confusion around business disruption. And to the point that Mike Carroll made earlier, we will make sure that we are working, we continue to work tirelessly regarding accountability to ensure that there is little to no 20 street closures and disruption. That is what's important to this Administration. We do not want to see any small business go out of business as a result of this project and street closures that we have control over.
I do want to thank you for saying that part because I was around when -- I wasn't an elected official. I think I might have been a staffer when the El train with SEPTA, of all companies, played a major role in really not protecting the businesses along Market Street, 46 all way up to 63rd, and those businesses went out of business. And so, hindsight 20/20 we at least had an opportunity to look into as we move forward, particularly traffic flow. And when you're doing construction, shutting down corridors and having the impact of people going in and outside the businesses to patronize them.
And, Council President, that's why we opened with having Mike Carroll here at the table to send a strong signal to the city, to members of Council and whoever's watching today. We care about small businesses. We care about making sure that we make good on our promise around economic opportunity for all.
Yeah. I would just say, I mean we are going to require the Sixers to provide us with construction plans, with what we call maintenance protection of traffic plans which meet the goals we're looking for. So we have the opportunity when we get into the details of reviewing that to identify specific impacts to specific neighbors to specific businesses and ensure that those impacts are not detrimental and that we will rely on the resource that we set aside and make sure we're able to compensate folks when we see those impacts are unavoidable.
Thank you very much. The Chair recognizes Minority Leader Brooks.
Thank you, Council President. First, I want to clarify that I'm a no vote to this procedural vote because I feel like this an example of how this whole process is being rushed. I have problems with the Community Benefits Agreement and I had this conversation before, that I feel like it's a bad deal for everyone other than the billionaires who own this arena. And according to the election pollsters, 70 percent of Philadelphia said that they don't want this. So if people don't want this arena for many reasons, whether it's displacement in Chinatown, low-wage jobs that come with the stadium and people across Philadelphia love the South Philadelphia Sports Arena Complex. But most importantly, this is not the priority this Council body should be focusing on right now in these coming weeks during the time where we have hearings going on about proposed school closings, we have a housing crisis that we're failing to address and an impending Trump Administration that has Philadelphia as its target. I have to ask my colleagues, is this really our top priority right now? There's so many other things that we should be worrying about besides pleasing Josh Harris, David Blitzer and David Adelman and the Sixers billionaire owners that are pushing for a deal that will only benefit them, not the average Philadelphians. They're building an arena that's estimated to cost $1.5 billion which would raise the cost of the land parcel. Independent estimates have shown that they would potentially bring in $40 million in property taxes. The Community Benefits Agreement does not reflect this. So my question is, is the Administration aware of the pollster that has found that 50 percent of the City does not support the Arena proposal and what should we tell them when they ask us? And do you think that the pollsters were wrong about this?
I can't speak to the pollsters, but let me tell you what I can speak to. I can speak to the Mayor's agenda, to the Parker Administration agenda and to our guiding principles. We did not come to a decision quickly or lightly. In addition to the learning journey that we did, we looked also at third-party independent verifiers to look at the terms of the deal and to say, yes, this is a good deal or, no, this is not a good deal. And that's indicative of our approach even when we went to the Convention Center and rolled out the methodology and the step-by-step process that we took to get here. I want to go back to our guiding principles, stewardship of City resources, unlocking long overdue redevelopment of Market East, maximizing the potential of citywide impact, also focusing on large scale development, ensuring City residents and businesses from groups historically excluded from participation have access to employment and contracting opportunities. With regards to the housing crisis and housing affordability, our CBA directly answers that as well. I would like to call up Jessie Lawrence --
-- our Director of Planning and Development to speak to that.
Let me finish all my questions and then you guys can speak because I don't want to run out my time.
Thank you. So we've heard many complaints from Chinatown and surrounding neighborhoods that they were not being consulted about the CBA, and I appreciate you running down the dates that you were able to meet with people. But when you were negotiating the Community Benefits Agreement, which organizations did you consult with locally in Center City and across the city?
So first, I'll call up John -- I'd like to call up first John Mondlak to answer that question. And then around the housing affordability housing crisis Jessie Lawrence can follow him. So, John Mondlak.
Hi again. Jessie Lawrence, Director of Development, Planning and Development. Just to speak to what we're working on when it comes to housing, again the CBA has a $3 million commitment that will be committed to looking at how we can provide seed funding for a larger project, larger program. It's an initial investment that's supposed to work on a range of things that'll really look at how the City can coordinate housing, specifically housing programs in Chinatown. That programming will include affordability opportunities, preservation, rental assistance, senior housing, homeownership support as well. But it'll again be leveraged in what will be also a Chinatown Master Plan. I spoke of master planning earlier. There will be a specific Chinatown Master Plan that will look at many aspects, including housing. Ultimately, it's the Administration's initiative to really make sure that we stabilize the communities through the master planning and then the sowing of the seed investments as well. We're looking at making sure that we are leveraging not just new opportunities but looking at what we have existing ownership and public opportunities as well, making sure that we're looking at ways to prevent displacement, making sure that we're looking at ways to provide additional resources for housing. Again, City-led programs that will allow us to take the lead and take the charge and dovetail into not just one program but a series of programs over the next coming years. (Witness approached Witness table.)
Sophie Bryant, Councilmember Brooks. So an answer to your question about the Community Benefits Agreement, I think John talked earlier during the hearing about the multiple modes that the Administration engaged with Chinatown and adjacent communities going back to 2023. So there was those meetings that DPD and PIDC held directly with community members. The Mayor had several meetings. We heard from Councilmember Squilla. Really importantly, there's the Community Impact Study which is directly sourced from engagement, again, through multiple modes with Chinatown stakeholders. And from those conversations, those modes of engagement, clear and similar themes came up. And I think Chief of Staff Tiffany Thurman ran through those in our introduction. So first and foremost, concerned about the preservation of the cultural community, the ethnic community that is Chinatown, concerns about gentrification displacement both of residents and of businesses, concerns about business closure, concerns about safety and cleanliness. And so, while it's the case that we didn't have a direct counterparty at the table negotiating the CBA, all of those themes and all those insights went into the CBA allocations. And maybe, Councilmember, I think here it's maybe the right time to sort of elevate the Chinatown commitment to be much broader than the CBA. And I think we've talked about in the briefings with Councilmembers this broader commitment that the Mayor is seeking to make to Chinatown and really the Arena project is sort of spurring that closer look and that attention to Chinatown. I think one of the findings that we took so poignantly from the Community Impact Study is that Chinatown's already experienced significant gentrification and change over the past several decades even prior to this Arena project being proposed, and that's really spurred the Administration. And John can run through some of the details, thinking about in each of those areas, cultural preservation, recreation space, business, housing, cleanliness, safety, how the Administration can leverage all of its departments and all of its resources to support and preserve the community.
Councilmember Brooks, if I may, I'd like to also add or ask Renee Garcia, our City Solicitor, to talk about the structure of the CBA. CITY SOLICITOR GARCIA: Thank you. Councilmember, it's important to emphasize that the agreement is between the City and the team. And so, if there is a breach of the agreement, it is on my office to bring that enforcement action. Too many times we have seen CBAs where the City is not involved and, therefore, if there is a breach, then it is incumbent upon these neighborhood associations to lawyer up and try to take on a billion-dollar basketball team. So it is squarely within my office to enforce. We also have other safeguards. We have the money flowing into the City. So the Sixers will make a payment to the City that will go in restricted funds and the payments will go out from the City, specifically the financial budget office will be handling that. There will also be -- it will also be transparent. So each year when the money comes in and the money goes out the public will be able to see where the money is going. And most importantly, as we have found in other cities they did not include the term that will make the CBA binding upon owner after owner after owner. No matter how many owners there are, this agreement will be binding.
And if I could just add quickly, and I apologize for my turning my back, the meetings I mentioned earlier we actually were not talking about in those 10 meetings, the dates that I provided. The No Arena Coalition was determined not to concede that there would be an arena. And so, we really didn't get into it. But when we did the impact study, and we'll provide the dates and the information, there was significant outreach and multiple number of ways to gather information from folks in Chinatown to find out what is your concern, what is your worry, what can we do to -- like, what is the worst-case scenario, what are the things that most worry you if an arena came, and we collected those ideas and those are the things that went into the CBA. We've also had information from the Chinatown community from past studies. They put out their own material to indicate what it is that they're concerned with generally pre-Arena and post-Arena, and we took all of that to try to incorporate and encompass the CBA to address those issues.
And I thank you for that. So the meetings that you guys held with the Chinatown Coalition, were they similar to the meetings that you held with Councilmembers?
Again, as John said we had ongoing meetings with them before our Administration started. That's why it's prudent that John Mondlak talk about that because he was part of the previous Administration. So over the course of the two years we've had meetings with them inclusive of or similar to the meetings that we had with Councilmembers, so beyond that.
Okay. So you've had similar meetings with the Chinatown Coalition over the last two years?
Okay. I'll come back with a second round of questioning.
Thank you very much, Madam Brooks. You're finished your line of questioning?
A second round. All right. Thank you. The Chair recognizes Councilmember Nicolas O'Rourke.
Thank you, Mr. President. And let me say thank you, Chief Thurman and Solicitor Garcia and Directors Carroll, Dubow, Lawrence, EVP Rhoads. I wanted to start this morning by shouting out all the organizers and activists that are here today. I know that there are many folks in the room, all the union siblings in the room 15 is good news. But particularly, Philly's finest UNITE HERE Local 274 is in the house. And this conversation never felt complete to me without y'all in the room, so I'm glad to see y'all here this morning. UNITEs like red. There's a lot we need to talk about, including the prospects for sustaining long-term work that ensures Philly workers are fully respected. And I know all of us in Council are eager to get into the details even more. So let me get into them. I wanted to start my questions by asking the Administration to consider its priorities during this critical time for the country and our city. I echo the sentiments and the concerns of my leader. At a federal level we are staring down another Trump presidency. Here we go again, that the City itself is not prepared for. An Administration that threatens our funding streams, our democracy, the safety of many of our most vulnerable neighbors, particularly some of them in the Chinatown community. We don't assume this. We expected it. The man bragged about it. And now, it's time to reap. And locally, we're facing several real crises, a citywide housing crisis only made worse by the pending expiration of the Neighborhood Preservation Initiative, looming school closures that the Leader mentioned, SEPTA's increasing dire fiscal cliff that we've already talked a bit about, which escalated today with the announcement of the fare hikes. And in the midst of all of that, we're spending our time, if I may say, here today talking about this. We are prioritizing a pet project of billionaires, they got plenty money, instead of the material needs of Philadelphians. With that in mind, I want to ask a few rapid fire questions about the Administration's priorities. When can we expect the Administration to release its plan to protect our city against the Trump Administration similar to the one that was released in 2016?
What we have released January 1, 2024 is the plan, a safer, cleaner, greener big city in America with economic opportunity for all. That is the plan. We're going to stand -- we're going to empower the tool of transparency. We're still focused on housing affordability. The plan, the direction, the vision we double-down on. We don't shrink back from, we don't change course.
Beautiful vision, I appreciate it. There is a major difference in the world today as there is another President-elect Donald Trump. For the record, could you state how many hours we are spending in these hearings focused on an arena that's wildly unpopular? I think percentage was 50, 30, 56 percent. How many hours are we going to be focused on this particular issue?
The answer, Chief Thurman, is 41 hours respectfully. And for the record, how many days do we have before the inauguration of President Trump?
Point of -- I know I can't ask a point of clarification. But I will say that if your question is how many hours our Administration is spending on this Arena deal?
No, I'm saying for the record how many -- we are all in here now, all of us. Could you state how many hours that we're spending in these hearings focused on an arena that's wildly unpopular? The answer is 41 -
41 hours. And for the record, again how many days do we have, and this is to get us to focus and be clear about the issue, how many days do we have before the inauguration of this man? The answer is 69 days.
69 days. So again, there are many things to be concerned about right now. I've listed some of those. I heard the bill ring. I don't know if I have time to keep my questions.
Thank you. And I really, really, really think it is important to note that in the midst of the world shifting and folks responding to what just took place this past week, that the sixth largest city in the country is not focused on what we're going to do to protect the citizenry. We're focused on how we're going to get an arena through when we already got one. Let me move on. There are many shiny promises here, but just as many details are missing. And we're not talking about the small details on the margins. The questions that remain lay at the heart of this plan. As a result, this entire deal to me and to others feels very half-baked. Is it true that Council does not currently have access to the lease that details the developers' ability to buy the Arena site back for a single dollar after the lease ends?
As Renee answers that question, I just want to say before I turn it over to our City Solicitor that the way that we frame this is not just about the Arena in and of itself, but what it unlocks which is why we framed this ask in our public announcement and in the meetings that we've had since then. This is Beyond the Basketball, and that's why even now, especially now, that is very important. But going more to the technical question around the lease, I'll turn it over to our City Solicitor. CITY SOLICITOR GARCIA: We are negotiating a sublease. It is currently 185 pages long. It is done but for the terms that we will be negotiating here. The term sheet that you have, which was provided to the public 30 days before introduction, is the deal. So this is a binding agreement. Everything in the sublease is boiled down to the term sheet. You also have the ground lease between the City and PAID, which has many of the same requirements that are in the sublease. You also have a servicing agreement. Of course, you have the EOP and other documents. To the extent that there are questions about different topics in the term sheet, I'd be happy to brief you. But again, this is the deal. What the sublease is the material terms surrounded by legal gobbledygook, and I'll tell you the first 60 pages are just defined terms in the sublease. And this is how we have negotiated every single arena and big development deal.
Let me just put this on record. In Section 5 of the title of Bill 24 240966, it outlines that ArenaCo can buy the arena at the end of the lease. In Section 16.1 of that same bill, the tenant purchase option outlines that the purchase price is a dollar, $1, and it refers to another lease which elaborates on that option, and we do not currently have access to that lease. Does the City have final cost estimates on the police manpower and overtime needed for this proposal? (Witness approached Witness table.)
I'm sorry. My name is Sam Rhoads. I'm Executive Vice-President with PIDC. And I apologize. To the first part of your question, the repurchase of the property for a dollar relates to the fact that the Sixers are purchasing all of this at their own cost and building it at their own cost, so they're donating it to the City. So they likewise then would get it back at the end.
Does the City have the final cost estimates on the police manpower and overtime needed for this proposal?
We do not have the final cost estimates, but we are working diligently with our Administration as well as with the Sixers on what is needed.
We don't have access to these plans or estimations finalized. Who will pay for the increased costs faced by PPD to provide additional security? I know some of this has kind of been hinted at, but I'm asking for my line of questions. Who will pay for the increased costs faced by PPD to provide additional security?
Currently, the arena owner in South Philadelphia pays for police security both inside and outside of the arena. Presumably, that's going to be what is required here as well.
Presumably that'll be what's required, presumably. Who will pay for the additional costs faced by SEPTA? Again, I know we've had some of this already, but for the record who will pay for the additional costs faced by SEPTA?
Excuse me. For everyone, can everyone speak into the microphone so everyone can hear you because y'all speaking low.
And I believe we discussed cost and operational cost, and the Sixers is responsible for the operational cost for SEPTA for this project. I don't know if you want to come up, calling on Mike Carroll to talk about SEPTA.
I have questions for Round 2, Mr. President. Thank you so much.
So just to respond, the costs for event day with respect to police and staffing are addressed in the Traffic Event Management Plan, and the draft plan that was provided indicated that the Arena would pay for those costs. That they would staff those positions which implies they will pay for those costs. The question about SEPTA operations and services has come up a number of times today. And so, the City's position is pretty clear. We have done our part to support SEPTA. We don't want to get in a position where we're sort of triangulated as a city into fronting more costs and we will not do that, so we will rely on the discussions. We will support the discussions between the Sixers, SEPTA and other parties that may be interested in this to identify the resources to cover those additional transit expenses.
Thank you very much. The Chair recognizes Councilmember Jim Harrity.
Thank you, Council President. My colleague shouted out UNITE HERE, so I guess I should shout out the Building Trades, all my brothers and sisters over here supporting. (Applause.)
Yeah, that deserves a round of applause. Just in general, we keep hearing how this deal is different from other deals that we as a city has been through before. We have experience in this kind of stuff. We did build a few stadiums. We have built a few stadiums in the past. I would just like to know -- I know you guys did your research, so how does this deal compare to other deals that have gone on in similar cities size-wise and downtown arenas? I'm sure you looked at all that. Could you tell us how our deal differs from other deals?
So the first we'll do is talk about the historical context of this and why we came out publicly and said that this is the best deal. So I'll turn it over to Rob Dubow.
Thanks for the question, Councilmember. And there are a couple of ways that this is different from earlier deals. All the earlier deals we had had some City contribution and substantial City contributions. This has no local funding, so that's a major difference. On top of that, the PILOT for this agreement is larger than the PILOT agreements we've had for earlier agreements. In fact, if you combine the PILOT payments for Wells Fargo, the Linc and Citizens Bank Park, add them all together they equal the same amount as the PILOT for the new Arena. The CBA is different in that rather than being paid evenly over the years, the money is front- loaded, so more is spent in the first 10 years than in any of the other agreements. And we've talked about how the EOP is different from earlier EOPs, so substantially different in a number of ways from earlier deals.
Point of clarification, Council President.
The Chair recognizes Majority Leader Gilmore Richardson.
I apologize to my colleague. I just wanted to state, Mr. Dubow, I have the comparison sheet out from the Administration on . You did detail the information regarding the CBA, the PILOTs and the various comparisons as it relates to impact from Wells Fargo, Citizens Bank, Lincoln Financial and 76 Place, but you did not mention charitable donations.
Right. So actually if you add the charitable donations and the Arena -- that million dollars a year, I forget what it's called -- those payments combined are still less than the CBA, and the CBA also has the benefit of being frontloaded.
Just pardon me for the record, because I just want to make sure I have the --
Can you speak into the microphone for me please?
Pardon me. Just for the record, I want to make sure I have the numbers right. Are you saying that everything is frontloaded in the $50 million that you have listed here and that the special service -- let me go back. The $50 million includes everything in the Community Benefits Agreement as well as the charitable donations, because previously there was a $30 million payment that was paid out over 30 years to the Children's Fund and I don't see that here?
That's right, the 50 million includes both and the 30 million was paid out evenly over time as opposed to the CBA which is frontloaded.
So 1 million per year per team for Citizens and for Lincoln, but I don't see that listed here is what I'm saying. It's not listed here.
So in the table I'm looking at says that the charitable donations are included in the 50 million above.
But does that include the 30 million paid to the Children's Fund?
So it does include that in the 76 Place?
So 76 Place doesn't -- so 76 Place is just the 50 million. The earlier contributions had the 30 million to the Children's Fund plus the 11 million Special Services District. If you add those two up, it's still less than the 50 million.
I'll come back, Mr. President. But -- I'll come back to be respectful of my colleague.
You're welcome, Majority Leader. Chair recognizes Councilmember Jim Harrity and then we'll break.
Yeah. I was still, you know, some more clarity on how things are actually different in this deal. For instance, how does the Community Benefit Package compare to other stadiums that were built in other cities that are close to what we are, city of the first class, a downtown arena?
So we had CSL, the outside firm, look at how our deal compared to other deals. It's consistent with the trend of moving towards less local funding, but there are still deals that have substantial local funding. Like Oklahoma City, for example, just had a deal where they put in a lot of their own money. The PILOT payment is hard to compare because for some of the other places they are doing things like issuing debt and the PILOT payment is helping them pay off their debt. So we think it's a strong PILOT compared to other places but hard to completely compare apples to apples since other PILOTs are covering different things.
Okay. I heard my buzzer ring so I'll wait until the next round. But also, I just want to make sure that I voice the fact that I am also concerned like my colleague Isaiah Thomas with the 1.6. I don't believe that's enough. I've stated that in meetings. I'm glad that we're looking at grants for it, but I believe we need to look at that number. Thank you.
Okay. Thank you very much. We will recess until 1:45. See everybody back. (Lunch recess.)
This hearing is now called to order. The Chair recognizes Councilmember Katherine Gilmore Richardson.
Thank you. Thank you so much, Council President. And thank you -- okay.
I'm asking any sidebar conversations can you just please take it outside the chambers. The Chair recognizes Majority Leader Katherine Gilmore Richardson.
Excellent. All right. Thank you all so much and thank you to the Administration for your testimony. I wanted to go back to the EOP. Okay. First, I'll start with the review of the Economic Opportunity Plan that you all have listed as an exhibit to the SDA term sheet. I have some questions regarding the monitoring and compliance. That's in Section 8 beginning on of the exhibit and then the Remedies, Section 9 and Reporting of Section 10. So under the Monitoring and Compliance section, I don't see any specific requirements for frequency of reporting to the Oversight Committee and/or to Council. It states that the developer or the operator agrees to cooperate with the committee and to submit information upon request. I think this language needs to be clearer on requiring certain information to be shared with the Oversight Committee as well as Council on a regular basis, so I wanted to mention that. Additionally, the section 15 on the Oversight Committee only includes information on who will be on the committee but it does not state how frequently the committee will meet or anything else about the operation or governance of the committee. Is there somewhere else in the agreement that provides that information about what we can expect around the committee and the committee's responsibilities? And then will the committee's meetings be open to the public or will they make all their information public or what's the frequency on how they'll also interact with Council and/or the Administration so that we also receive regular updates on the project? And I just want to go through my questions so I can get them all in. " And so, I wanted to know how long on average does the process take? How often has the City enforced these penalties as it relates to EOP compliance? How will the City work with the committee and with Council as a part of this process to ensure we are enforcing any penalties in a timely manner to try to get to some level of correction and/or improvement? And then finally -- and I'll try to get as much as I can in, Pres -- in the Reporting section I see that the requirements laid out for monthly updates during construction, quarterly updates during operations and then an annual report. It states that all quarterly and annual reports must go to OEO, but I wanted to add in and City Council. And I don't see the same requirement listed for monthly reporting, if you could tell me why. And then how will monthly updates be used for realtime tracking? Meaning, not monthly updates but realtime reporting updates. And how will the committee be able to really work with the developer/operator to achieve all the goals as opposed to just overseeing and then addressing everything on the backend? And I ask because -- and I have a few more questions after that and I'll wait until the next round -- but I served on an EOP Oversight Committee for a project at St. Joseph's University when I was the former staffer for former Councilmember Blondell Reynolds Brown. And so, I have very intimate knowledge of this type of oversight in this process, and I do think that we don't have enough realtime tracking within the documents that I have been able to review thus far. So if you all could just speak to that, and then I'll come back on the next round with some more granular questions relative to the EOP. CITY SOLICITOR GARCIA: Okay. Great. Thank you, Councilmember. Nicole and I are going to tag team here and try to remember all of your questions. As far as reporting, so that is on my , you're right that there are monthly reports during the construction period, but then on the ongoing period, right, where things are operating and stable, it does move to quarterly reports and then there are annual reports. The matters that they have to report are included in that really long list of good faith and good faith efforts, which is on Pages to 13.
That lays out the 7 documents that they are going to 8 have to produce to the Oversight 9 Committee as well as the overall 10 reports on the numbers. And I'll 11 let Nicole pick up in a minute. 12 As far as the Oversight Committee, you're right, there is not governance built in here. It is anticipated that the members will be chosen in Calendar Year 2025 and they will work to create their own governance structure. The Chair is chosen by the Mayor and there is someone from City Council on there. So I do not know how that person will report back to Council. I can consider that your business.
Sure. CITY SOLICITOR GARCIA: With your good faith efforts.
Okay. I wanted to just be respectful of the clock and I did hear the clock. Council President, may I just respond back?
Okay. So I think my concern is that we need regular reporting to Council. Even though we would have a member on the committee, that that information would go to the Council President for dissemination to all members of Council. CITY SOLICITOR GARCIA: Sure.
In addition to that, all the information that we should be receiving or that the committee would receive should also go to the Council President and will be disseminated to all members of Council. CITY SOLICITOR GARCIA: Okay.
So that's exactly what's going to happen, absolutely. So that -- that is absolutely what is going to happen. It will go to Council President and Council President's Office and then that will be disseminated to Council in realtime.
Okay. And if you could just respond on the record though the frequency of the monitoring, because you get into a situation where you're conducting monthly, let's say, onsite labor census as an example, and after a month you could be done with that particular mechanical trade or skill or whatever it is. I'm just, you know, being realistic about a project. And so, while you're reporting it and we get the labor census numbers back, that particular trade could be finished at that point. And so, then you'll say, well, we tried, we tried to get somebody but just couldn't do it, but we did report it and we put it in a report, so we did our part there.
I just want to do a point of information, and I've done diversity, equity, inclusion 50 percent on pretty much most of the major development projects in my District rather the Bellwether District, which is the former Sunoco Refinery, Pennovation, Live Casino, but I am talking to contractors and developers and the trades regarding the best-faith-good-effort approach where you can say, I tried to get these individuals Black and Brown to participate and we can't find them, and then just move on. And so, that would be something we would want to work with you from an enforcement standpoint to make sure we're holding people accountable and then also the penalties. I would be remiss if I didn't mention that there was a company that I think we abolished from doing work, I think, where they were acting like they were a minority company but it was a White woman front company, right. They were doing asphalt work and they had it for generations and generations and generations. And just making sure we're on the forefront in terms of penalties and the enforcements of actually abolishing folks from usurping what we're trying to do the right way in this process. CITY SOLICITOR GARCIA: Yeah, and that's a good point. So just quickly, we hear you on best and good faith efforts. They could just say we tried, right, and there's no pipeline. But that's why we've been very specific as to the information that they have to submit, that everybody on the committee will be going through with a fine tooth comb, your designee, the Mayor's designee, there's someone from Law Department, someone from OEO. This EOP is more specific than any other EOP we have seen. And I'll turn it to Nicole because I want to talk about the enforcement, which was just your question, Councilmember, as well.
Thank you. And I just wanted to add in there if you can speak to if there is a diversity strategic plan required for the operation of this facility?
Okay. I'm going to try and get to everyone's questions. Please let me know if I miss anything. As far as the reporting just to double-back, I want to make sure that it's clear, they are required to provide a report to the committee, right, that has that make-up. And that report comes from an EOP monitor which they are required to have by this plan. That EOP monitor has to be an independent party, meaning that they're not biased to the Sixers and they're not biased to us, and that's going to be the person that is reporting in realtime, that's collecting information, that's giving these reports --
What do you mean realtime? Can you clarify? What do you define as realtime?
So an EOP monitor by trade, from what I understand and from talking to industry experts, is supposed to be on the ground and they're going to the actual sites. They're taking inventory of who is on the actual site, who is within the actual workforce. And I can take it as a takeaway to follow up with you guys to see how often that the EOP monitor by trade, but I do know that they are someone that goes weekly, I believe.
Right, and not just that they're going out every day but that we're receiving the information and the data on an everyday basis so that we could proactively monitor what is happening.
Absolutely. And one of the things that we pride ourselves on is empowering the tool of transparency. We are not an Administration that's going to say we tried. That doesn't work for us. And that is not indicative of Mayor Parker and the precedent that she set as the first woman and as an African American woman in this role. We tried won't cut it. We know that from an economic mobility perspective we tried won't cut it. So we absolutely agree with you, Majority Leader Gilmore Richardson, there has to be ongoing enforcement because there are things that are moving on a daily basis with regard to this project. So, absolutely, this is not going to be one of those we'll take it under advisement. Absolutely, that we have to empower the tool of transparency ongoing on a regular basis to ensure that reports don't come out after the job is done and then too late and then we're reduced to we tried. Absolutely, we agree with you.
I will come back on the second round to be respectful of the clock and also of my other colleagues who are seeking to ask questions. And I will also submit --
Right, but just let me put this on the record real quick because we're limited on time.
I will come back around. I will submit every question in writing for written response so that we all have it in writing because I know the quick nature of this process. But also, I want to be very clear that there are certain things that I know me personally, I'm going to speak for Katherine, that I must see in this term sheet as a part of this EOP process in order for me to be satisfied with anything around EOP and diversity, equity and inclusion goals. It's mandatory. It is not something that we can get around or talk around in any way at this point in this process, particularly as the City of Philadelphia. So I just want to put that on the record as it relates to the EOP portion of this. And then I'm going to circle back on the next round of questions relative to the last point I had in the last round regarding the difference in the Community Benefits Agreement and the charitable donations. I do not agree that this is the best deal. I don't agree. Because I was here actually as a very young intern when the Wells Fargo -- I'm sorry, when Citizens Bank and Lincoln Financial Field was negotiated, and we received from that deal alone just $60 million over the 30 years for the Children's Fund. 1 million per team per year for 30 years. Just that contribution was $60 million. That is not included here. And it does say this on of the comparison sheet, but it's not included. It's not included so we'll come back --
So we will go over the economic impact when we come back to that. We would like to respond to the question around enforcement.
So I know that that is a huge topic as it in regard to EOPs when it comes to enforcement. To your point, the City has recently debarred a contractor and that decision we just got back still stands. And so, they were acting as a passthrough entity and we did debar and the court did affirm us. Will it go to appeal? Who knows, but for right now our decision stands. And so, in this EOP there are numerous penalties that are enforceable in conjunction with the Sixers. But I also would like to note for Council because I know that this is very important to you guys and important to us as well. But Council under 17-1600, they may by resolution adopt a public hearing to determine if there are reasonable grounds that a contractor has failed to comply and withholding of payment would be appropriate remedy for such failure. They have that and then they have also -- they can also adopt by resolution a public hearing that if failure is established the contract termination, suspension or debarment shall be the remedy for such failure. And so, in the event that you guys do want to call a hearing, that is an option that is available to you under 17-600.
Thank you, Council President. I will come back on the second round. And I will also ensure that I prepare the information regarding realtime data tracking to be included in the legislation.
Thank you. The Chair recognizes Councilmember Quetcy Lozada.
Thank you, Council President. We've heard a lot about the EOP. And in my meetings with different people -- we've heard a lot about the EOP and in my meetings with different people, I am concerned that there are two EOPs, right. There is an EOP that was negotiated by the Administration and there's an EOP that was negotiated by the African American Chamber. And so, my question is, is there actually two EOPs? And if so, which one will be prioritized, right? And how are we going to ensure that the EOP that is prioritized actually delivers on its goals, particularly reaching historically underrepresented communities, because the EOP that was negotiated by the African American Chamber is very specific to Black-owned businesses, right, or to opportunities for African Americans. And so, you know, this is a diverse city. There are many other cultures who are entrepreneurs and who deserve to be included in this equal-opportunity-for-all situation.
Thank you, Councilmember. I want to make sure that I'm very clear. There's only one Economic Opportunity Plan. There's only one, and that's the Economic Opportunity Plan that we introduced that Nicole spoke to. So I'll now turn it over to Nicole. But I want to be very clear there's not one and then another. There's only one Economic Opportunity Plan, and it's an Economic Opportunity Plan to benefit all.
(Inaudible). So before you respond, in my meetings very specifically with the 76ers they said, yes, we negotiated a 40 percent agreement of the day-to-day operations with the African American Chamber to go specifically to Black-owned businesses. When I met with the Chamber, they also confirmed, yes, we negotiated 40 percent of the operation day-to-day opportunities to go to specifically Black-owned businesses. And so, you know, yes, there's 60 percent, but that 40 percent is not going to be able to carry that arena. And so, I am under the impression and having talked to others that that 60 percent will go to sponsors, sponsors that don't look like me, right. And so, representing a District where 55 percent of the people that live there look like me, I need to figure out how do I include people that look like me in that equal opportunity for all?
I want to be clear there's not only one Economic Opportunity Plan, but we have engaged the Diverse Chambers. So you mentioned the African American Chambers, but there are other Chambers that we've engaged around this plan and we will continue to work with them to ensure that their interest, their members, what they're asking for is represented here and that accountability will not change. So we've met with the Hispanic Chamber. We've met with the Diverse Chambers, so just wanted to be very clear on that. But to the question around the Economic Opportunity Plan and whether there are multiple Economic Opportunity Plans, absolutely not. There's only one Economic Opportunity Plan. I'll kick it over to Nicole --
Can I -- it's a point of information just for clarity. And, Tiffany, this may be something we have to follow up with regarding the Sixers in general. But there is an agreement between the Sixers and the African American Chamber around concessions, the concessions stands, the concessions operators, right. There's like a training program particularly focusing on those who operate the concessions. And I think we've had this conversation, but we're going to put it all on the record as well. But the focus is particularly for African Americans, the 40 percent commitment. And we have allies as well, Black and Brown allies with Councilwoman Quetcy Lozada and others who have an interest in making sure that they're included -Mark, don't laugh -- they're included in making sure that they have a seat at the table regarding this particular process. And so far, that commitment is only between the Sixers and the Chamber. And I think that's where lies the rub, clarity. CITY SOLICITOR GARCIA: I would just be curious to see any agreement because to me, I question the legality of having a specific target like that under Supreme Court jurisprudence. I have not had the ability to look at it or opine as to my perspective on that.
All right. Well, for the record then maybe the Sixers when they come in tomorrow they will talk about their partnership with the African American Chamber specifically as opposed to the whole collective diverse group as a whole as well.
I just want to state that for the Administration we're working with all the Diverse Chambers, including the African American Chamber.
Okay. What I don't want is for us to say, well, the African American Chamber is checking off all the boxes here to be able to deliver on those, that diversity commitment that we're making. And so, because we're relying on that agreement, we're going to -- we're not going to allow for those other ethnic groups to have that opportunity, right. I --
-- want to make sure that it is in black and white that when we're talking about equal opportunity for all, that that equal opportunity looks as diverse as this city is.
And when we came here, right, because we know that there were negotiations and work done long before we got here, but when we came here what we said was that we're not going to be pulled into a fight. We're not going to be pulled into a fight between one Chamber and the other, between one diverse group or the other. We want the whole pie. I've said that on the record before when I was here earlier in the spring talking about our budget. And that One Philly budget and this deal is the same thing. We want to make good on our promise and that includes everyone. That includes all the Diverse Chambers, but we're not going to get pulled into a situation as an Administration where we're pitting one Chamber over the other. So we've met with the Asian Chamber. We've met with all of Diverse Chambers, but I'll kick it over now to Nicole to talk more about our Economic Opportunity Plan.
I appreciate not getting pulled into a fight with the Chambers, but you all have allowed a fight to be created as a result --
-- wait a minute. And it may not be the Administration directly, but because the 76ers have continued the conversation or have made this agreement with a specific Chamber, you have now put the Diverse Chambers into a position where they are going to fight with each other, right, or where they are going to have to try to advocate for the specific group that they represent, right, which is why I'm saying how do we get to a place where we're very clear about what agreement is the agreement we are going to abide by.
That's why we have walked through step-by-step the Economic Opportunity Plan, all aspects of the Economic Opportunity Plan with every Chamber. We've empowered the tool of transparency. Our process is our process. We don't shrink back on our process. We don't do well in defense mode. What we make sure is that what we say we're going to do in terms of making good on our promise, that we will do that. And we'll continue to do that. We won't shrink back. And I'll now kick it over to Nicole.
Okay. So to Tiffany's point -- I'm sorry, to the Chief of Staff's point, minority as I was going over it before for Councilman Thomas is included. And when it says it's African American, it's Hispanic, it's the Caribbean Islands, Asian American, Native American, Pacific Islanders, so all of that is clearly delineated and included in this plan. As a result, everyone should have an opportunity. And I don't want this EOP to be painted as it's going to be an opportunity for some and not others. All of the minorities were specifically included in this plan as far as local workers as well. CITY SOLICITOR GARCIA: And may I -- I have a little bit of an itch so I want to say one more thing. There are a lot of pipeline programs that are funded with the CBA and that we already have in Commerce and other departments and they are not race-specific, right. The pipeline needs to be built for everybody. And to the extent that we are all making good on our progress with building that pipeline, it will create this pool. So I just want to be clear with all of those, there will not be targeting towards a specific race in this city. It's economic opportunity for all in these programs.
I'd also like to note that, for example, we leaned on industry experts. And one of the examples that they gave us was that a lot of times even with apprenticeship programs, they struggle with placement outside of the apprenticeship program just because there is no opportunity for those apprentices to develop. And so, they have a retention problem once apprentices matriculate from the programs. And so, this EOP, right, puts us in a position to create more opportunity for the apprentices that matriculate from those programs because these are places in which there are requirements that diverse workers and businesses are included.
In reading your handout here, that 50 million in the CBA can you tell me how that's going to be divided and who's going to manage that distribution? CITY SOLICITOR GARCIA: I'll tell you who's going to manage it. It will be our friend over here Mr. Dubow. It will be Budget and Finance, some combination. And so, it will be the City.
And how is it going to be divided? Who's getting that and how much is each entity getting?
Thank you, Councilmember. Sophie Bryant. So one of the exhibits that the Councilmembers have is the CBA allocation listing and also a payment schedule. And you'll see in the allocation listing that we've divided it into two different sections. One section for citywide investments and one section for investments that are responsive to Chinatown and adjacent communities, and we can run through the individual line items. What you'll see on each line is what's a description of the purpose of the spending. So, for instance, $3 million to subsidize use of public transit, how much money in total and then what the payment schedule is. So I'm just going to make up the numbers here because I don't have it, I'm not to the right page, but $3 million, $1 million a year starting in the year the Arena opens. As the City Solicitor said, the vast majority of those dollars are going to come to the City so we can ensure that they're put to the exact purpose that's specified in the CBA. A few of the dollars would go straight to the Sixers, so those are dollars for things like free tickets for public and charter school students to go to games and also community use of the arena. So we can -- I'm happy to go through if you want to sort of go into some detail about what the items are. We can just flip to that page. Okay. 6 million, and these are just an order of dollar magnitude. So we'll start with the biggest dollar and then work our way down. So the largest investment in that category, and this is with Councilmember Squilla, is the new Arena Services District. It's a model that's sort of in place down at the South Philadelphia Sports Complex. 15 million and it's spread out over years. So it's basically a 10 sort of level funding amount, about 11 $700,000 a year starting in FY26. 12 Next, we've got the 13 housing support, $3 million. The 14 Director of Planning and Development 15 Jessie Lawrence mentioned at 16 $3 million. 6 20 million. And just a couple more in that Chinatown section, the neighborhood security substation. I think Council President Johnson had asked some questions about sort of security investments. 5 million. As Mike Carroll mentioned, particularly important on game and event days. It's a place to collocate services and responses from PATCO, SEPTA, PPD, CCD, Jefferson security staff. 25 million. And then investments in two master planning efforts, one for Chinatown and one for Market East. And the idea there, Councilmember, is to really bring in the voice of community and City planners and creating a broader vision for both Chinatown and for Market East as these significant developments take part. I'm going to flip now to the citywide investments. 4 million. The largest investment in that category, and it's spread out, I'm being (inaudible) here, for years is Extended Day, Extended Year schooling. And I think, Councilmember, this sort of goes to the Mayor's perspective on this project and the development of Market East is having citywide impact. And the importance of preparing our young people, our folks who are not currently connected to employment or opportunity, our small businesses to give the resources and supports and training so that we can across the city, including in your District, leverage this opportunity. So there's a $7 million investment in Extended Day, Extended Year. 5 million for City College Municipal Employment. They're really a focus on workforce development, preparing both workers and small businesses to leverage the opportunity created by the Arena. 75 million, and this is what Chief of Staff Thurman was mentioning, for the Diverse Chambers, to work with their constituencies to prepare them to access the work both from the Arena but also from that broader development along Market East. We've got that $3 million for public transit, $3 million for free tickets for traditional public and school students.
We've got $2 million Power Up Your Business, an existing program at Community College of Philadelphia, here a real focus from the Mayor on making sure that those expanded offerings demonstrate cultural competency for the range of diverse constituencies that would access them and also are accessible to folks for whom English is not a first language. 5 million to expand the Sixers Neighborhood Basketball League, looking over at Councilmember Thomas here. We've got $1 million for a Business Barriers Fund. And, Council, this is a real priority for the Mayor. She's really sensitive to the fact that for some small businesses having to get bonding, having to get insurance, having to have sort of audited financials can be a barrier to responding to contracting opportunities, so her idea here is let's pull together some resources that are low barrier for our small businesses so they can get the credentials and sort of the credentials that they need to access contracting. Just a couple more to go. We've got $1 million for internships --
I don't mean to interrupt. I sincerely apologize for the interruption, but we are now way past time for that round. And so, I'm going to ask that you conclude.