COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE City Hall, Room 400 Philadelphia, Pennsylvania Wednesday, November 20, 2024 10:00 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 BRIAN J. O'NEILL COUNCILMAN NICOLAS O'ROURKE COUNCILMAN ANTHONY PHILLIPS COUNCILMAN ISAIAH THOMAS COUNCILMAN JEFFREY YOUNG, JR. JOHN D. CHRISTMAS, CHIEF CLERK P R O C E E D I N G S
Good morning, everyone. This is the public hearing of the Committee of the Whole regarding Bill's Number 240966, 240967, 240968, 240969, 240970, 240971, 240972, and 240973. Before calling the roll, I'd like to announce that we have translation services available for anyone present at today's hearing. If needed, please go to the table to my left. Services are offered in Mandarin and Cantonese. Mr. Christmas, will you please call a roll.
Council Lady Lozada. COUNCILMEMBER Lozada: (Nonverbal response)
Present. Thank you. A quorum of this committee is present. And this hearing is now called to order. Mr. Chris, will you please read the title of the bills?
Bill Number 240966; to grant the necessary authorizations for the city to help facilitate development, construction, and operation of a new arena for the Philadelphia 76ers professional basketball team and for other uses, including authorizing the commission of public property and such other city officials as may be appropriate on behalf of the city to enter into the following agreements and take the following actions: Acquire fee simple title to all the portions of 1001 to 1025 Filbert Street, 1001 to 1019 Market Street, and 1025 Market Street, together, the Market and Filbert Street properties. Acquire fee simple title to other parcels of land, aerial areas and subsurface areas in the vicinity of the Market and Filbert Street properties, including, without limitation, those areas reverting to the city or other parties in connection with the striking of certain aerial portions of 10th Street between Market Street and Filbert Street, and in certain other nearby parcels and areas enter into a ground lease agreement with the Philadelphia Authority for Industrial Development under which the city would lease to pay all or a portion of the Market Street and Filbert Street properties and the additional properties, if any, and other parcels and subsurface areas the city now owns in the vicinity of those properties, all of which collectively would constitute the arena site. Join in or consent to a sublease and development agreement between pay and other CBL Arena, LLC and entity affiliated with the Philadelphia 76ers LP or another entity affiliated with the 76ers under which Arena Co or other 76 or related entity would sublease the area -- the arena site and cause an arena to be constructed on it, including a multi-purpose sports entertainment facility and ancillary accessory and related amenities, improvements and infrastructure and agree to other related conditions. Upon the expiration or termination of the sublease or other circumstances set forth in the sublease, convey fee simple title to the arena to pay for disposition to ArenaCo. grant, accept, amend, relocate and extinguish easements agreements, conditions, covenants and restrictions encumbering or benefiting the arena site in any city on property adjacent to the arena site for the benefit of the arena site. To facilitate construction and operation of the arena, enter into a direct operating covenant agreement among the 76ers paid in the city, under which the 76ers agree to play substantially all of their regular season and playoff games -- playoff home games in the arena and take all actions necessary and appropriate to accomplish the intent and purpose of this ordinance, all under certain terms and conditions. And Bill Number 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 purpose 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. And Bill Number 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.
And Bill Number 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. And Bill Number 240970, authorizing CBL Arena, LLC, and its assessors and interest to construct, own, and maintain various right of way encroachments in the vicinity of 1019 Market Street, 1025 Market Street, 1001 to Filbert Street, 15 Philadelphia, PA, under certain 16 terms and conditions. 17 And Bill Number 240971, 18 amending Title 14 of the 19 Philadelphia Code, entitled Zoning 20 and Planning, by amending certain 21 definitions relating to signs, 22 creating an arena area within the 23 Center City Overlay district and 24 making related changes including a master plan requirement and changes to assessory sign controls, all in connection with zoning rules for proposed arena in Center City, and approving a master plan for the arena area, all under certain terms and conditions. And Bill Number 240972, amending Title of the 10 Philadelphia Code, entitled Zoning 11 and Planning, by revising certain 12 provisions of Section 14906 entitled 13 Market Street E-Sign Regulation, all 14 under certain terms and conditions. And Bill Number 940973, 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 all under certain terms and conditions.
Thank you very much. We want to thank everyone for coming to participate in public comment today as we discuss, consider, and debate the proposal that's before us. Today we welcome all feedback, pro and con, regarding this proposal. We just ask for a level of respect regarding public comments. Also working with us today is to my left, the Department of Civil Affairs, our Sheriff's Department, and Philadelphia finances, Philadelphia Police Department, as we operate and move through this process. The first gentleman we're going to ask to call up, Mr. John Christmas, please.
In the meanwhile, how's everybody doing today? All right? That's good. Good morning. How you doing today?
-- Council President. Good morning Council members. My name is Sam Staten Jr. The business manager of Laborers' Local 332, also International Vice President for the Laborers' International Union of North America and Canada. I'm here today to testify about how important it's that we have this arena downtown. As you know, Local 332 is a construction union. That our membership depends on work. We all know about construction, that it's seasonal. It's not year-round. So anytime we get an opportunity to get our members to work, we are charged to do that. Our local unions are unique because we invite -- probably is the only local that employs every nationality. We are proud of that. Our local was founded in the 1920s by African Americans. It was chartered by International 1932. Since that time, it's only been eight business managers. I'm the eighth business manager. We are proud of our heritage and I understand Chinatown wanted to be proud of their heritage. When it comes down to viable and work, we depend on contractors that we have signed signatory to give us decent benefits and wages. We fight for that. I was educated yesterday. I used to go to Chinatown quite a bit to eat. And when I was sitting in Chinatown eating, I would notice that I didn't see many people. I saw a lot of people who looked like me eating, but I didn't see a lot of people working. That kind of disturbed me to the bit that I stopped going to Chinatown. Yesterday, when a question was asked about -- one of the City Council members about the employment, and the gentleman said, we had 300 businesses in Chinatown, but he only employed three African Americans. That was -- that was disturbing for me. And to know that City Council and our mayor is trying to bring back Center City, it's a great thing because like any place else, you need an anchor. You need an anchor. A mall don't survive without anchor stores in a mall. We talk about downtown. I remember the days, holidays where every store had lights up. You could walk blocks 12 and see all shopping in stores. 13 Things were lively. People were 14 enjoying themselves. That hasn't 15 happened here in Philadelphia in 16 over 20 years. Where you go 17 downtown and Christmas time is dead. 18 Vacant buildings is all you see. 19 This arena will bring 20 back businesses, especially minority businesses. You talk about minority business having a chasing a dream. You talk about minority contractors chasing a dream, be a part of this stadium. It is so, so important. When it's all said and done, Chinatown will go back to be in Chinatown, but it don't change the makeup of downtown if it's not done. It's still going to have board up stores, people waiting for an opportunity. We must make this arena happen. So many people depend on this arena happening. I recall in my younger days, the downtown that I remember, we had so many options; movies, shopping, they don't exist now. Why? Because we have to do better. We have to do better. This is not about Chinatown; this is about the city of Philadelphia. We hear our mayor talk about one united city. We must make this -- the stadium happen. So I'm calling on City Council to make sure that it happened not just for my membership. But you talk about the jobs that it's going to create in the retail, the new business owners that they are going to create with these properties that now boarded up and vacant. So again, I stress upon the Council to pass the bills. Thank you.
Sam, before I turn over to my members, we just want to publicly, just thank you and acknowledge you for the work that you do, representing Laborers' District Council in 332, but most importantly carrying on the life and legacy of Sam Staten, Sr. And so you are always in the community. You are always talking about economic development, and most importantly, making sure we're putting our best foot forward to advocate for those most in need when it comes to addressing issue of poverty here in the great city of Philadelphia. The chair recognizes the Councilman Jim Harrity.
Thank you, Council President. Thank you, Mr. Staten, for coming in today and taking your time. I know you're a busy guy. What can you tell me about what this job will do for members of all the unions? This is going to be a five- year job, right? Those of us who've worked in the industry know that once you get a little bit of gray hair on your head or in your beard, it gets harder and harder to become a steady person. This job will not -- this will not only create jobs, but this will also allow our members to retire off of this job, correct?
Yes. I mean, this is huge because, you know, we are -- we are a great proponent of apprenticeship. So it's not just our members, we're talking about the future. Like, every union's not going to survive unless you have people coming behind you to maintain it. We've been around since the 1920s. We didn't stay around because we were there, there was members to keep the work going and keep the work going. So when you talk about construct, and like I said, again, it's seasonal. But you're also changing lives in every kind of area. Whether it's be our membership, be apprentices, people returning citizens from prison. It's so many opportunities here that we talking about. Like I say, Chinatown's going to go back to Chinatown, be in Chinatown when it's all said and done. But the city still got to find jobs for people to be able to pay taxes and people to still support their families. And this is what this kind of work does for us in construction. The other piece of that is this is why you have union contractors because there's definitely a difference between union and non-union in a building. When you build union, you're safe. You know, you walk through a building and it don't cave in. We had this issue some years ago where people got killed at 20th and Market because we had a non-union contract trying to do some work that he wasn't qualified to do and people died. This is why you depend on union because we are first class. Yesterday, if you heard Mr. Boyer say, we spend $48 million a year in training. That's huge because when you put people life on a line, you want to have the best. We have a training school right on Broad Street that we built, brand new four -- three or four years ago. Because we want to train the best. We want to be prepared for when contractors come to do this work. We send the best that we have because we know how dangerous their work is. And plus we want people to have careers. I was just at our training school last night, we had 35 new people that I spoke to. Some of them came from prison. It doesn't matter for us. We don't look at people and where they come from. We look at what their future and where they want to go. That's what matters.
So we're in a public comment phase and we're going to call up individuals who signed up for public comment.
Would Mr. Paul Scott Heaton, Ms. Lynn Major, Mr. Dave Kyu, Sunhee Volz and Jeena Chang, please come forward.
Ms. Lynn. Oh, Mr. Paul Heaton. Ms. Lynn Major, Dave Kyu, and Sunhee Volz.
We didn't call you yet. Just one second, ma'am.
Again, I called Paul Scott Heaton. Lynn Major, Dave Kyu, and Sunhee Volz.
Darlene, go ahead. State your name and begin with your testimony.
Okay. Those of us who are 65 and up and came here for a good retirement life have not been considered as stakeholder group. But we must not be ignored. We make up over 30% of residents in the tourist part of the city, both east and west of Broad. We spend our retirement money here in the city. We came here because of access to good medical care, theaters, dining. We came here to stay here feeling confident that when the time came we could get around safely with canes, walkers, and wheelchairs. I have made friends through social groups, like Friends of the City and the Transition Network, and that's how I can speak for others my age. For over a year now, I have been organizing lunches in restaurants within the Chinatown neighborhood. We've enjoyed over two dozen restaurants so far and there is always a wait list to my lunch events. I asked them what brought you to Philly? Like me, many of us do not drive and are reliant on walking and public transportation. I am reliant on SEPTA 45 Bus, a half block from my house in South Philly. I use SEPTA Bus and Subway to get to my doctors here in Center City. I use SEPTA Bus and Subway to get the theaters, social events, to get to Amtrak and the -- or airport. None of us have been consulted on the proposed Community Benefits Agreement or CBA, which would earmark $50-million for initiatives both, citywide and for neighborhoods closest to the arena. Critics have pointed out the community stakeholders were not involved in drafting the CPA. It would've been easy to get our feedback, just go to the Kennedy House or William Penn House West Broad or the Hopkins House or Independence Place in Washington Square West, that's full of us. Vision Zero. I've heard no mention of this during the past two years of discussions about this proposed arena. I've heard no mention of this. I read in there, it says, Complete Streets projects help us work towards achieving zero vision. Vision Zero, a collaborative citywide effort to eliminate traffic deaths and serious injuries on streets. Just go to visionzerophl.com. Regarding SEPTA, I think -- I think you said Councilman -- Councilmember Cindy Bass, I thank you for raising the concern about SEPTA, and that was just last week and I read that you explained that you met with SEPTA officials and I read the quote SEPTA is saying that they're not paying for these costs. So who is? Thank you, Councilman Isaiah Thomas for asking about the CBA. So I'm almost finished. I particularly am addressing six of you. The six of you that are on the Public Health Committee. Councilmembers Nina Ahmad, Quetcy Lozada, Isaiah Thomas, Mike Driscoll, Cindy Bass and Rue Landau. I say to you, please listen to what the former health commissioner of Philadelphia said recently. Plus the more than 3,000 doctors and physicians for social responsibility. And please listen to those brave doctors, EMTs, ER techs, and medical workers who have put their names in support of No 11 Arena, Jeff Med. This, despite the lip service of Jefferson CEO, who has only been in his job two years, that he said he thought they could coexist with each other.
You're my elder, so I don't want no smoke. I don't want no trouble.
Okay. Thank you for your -- for your testimony, ma'am. State your name for the record, please. PUBLIC SPEAKER MAJOR: Okay. Good morning. Buenos dias, Philadelphia. My name is Lynn Major. A little nervous here. This is the first time I've ever spoken in these chambers, but maybe not last. I live in West Philly. I'm a constituent of councilmember Gauthier. Speaking about Bill 240966, I really appreciate this opportunity to speak. I'm an educator and a musician and a proud parent of two recent School District of Philadelphia High school graduates just down the road from here. Like me, they also relied on SEPTA. We need SEPTA. We need SEPTA to function, keep functioning. I'm coming at this issue from the perspective of being, as you can see, a Sixers fan. So, you know, there's that. For better or for worse, the Sixers should stay where they are in South Philly. That's where they belong. I'm also a long-time basketball player myself. Aside from having been an involved parent in the school district, I've also been a tutor in Philly Public schools. I've gotten to know quite a number of students and their families and can really see what's at stake. I've been a resident of Philadelphia, voting and tax paying for a great many years now. A lady never tells her age, but I'm getting up there. So yeah, I got skin in the game here. Why do I strongly oppose this 76 Place idea to be built at -in the -- at the proposed site? So many reasons, many of which have already been very clearly stated. I'm going to just give some historical perspective thinking in terms of half century milestones. That's not my time, is it? Oh, okay. 1976. I remember the bicentennial. We're coming up on 2026. The semiquincentennial celebration. It is a great opportunity to feel civic pride. 2076, would 76 Place even still be standing? Questionable. I think we can figure this one out. Thank you.
Good morning. Good morning. My name is Dave Kyu. Before I read my written remarks, I'll just note I was a sportswriter for The Philadelphia Citizen in 2020 and 2021. I wrote about why us, Eagles fans hate the Dallas Cowboys so much. But I also wrote about, you know, the Sixers ownership during the pandemic. They were the first and last basketball team to ask its -- all of its employees to take a pay cut to endure the pandemic. So I'm a little biased. I'll admit, you know, I don't think they'd be good employers. I don't think they'd be good community partners. So good morning again. My name is Dave Kyu. I'm here to talk about process today. I'm the executive director of Asian Arts Initiative where I've had the privilege of working with -- in Chinatown for the last 15 years. I was also once a city employee working in the Office of Arts and Culture in the Nutter administration. So Council members know this as well as I do that the civil servants that make up our city are tirelessly dedicated to fair process and a government that serves the people of Philadelphia. Chinatown has been asking to be at the table for our voices to be heard since day one of this arena proposal. Instead, this mayor has applied the full weight of her authority against the door to keep us out so she could sell out the people of Philadelphia to the -- to the developers behind closed doors. This process has been shameful and disrespectful to the 69 percent of Philadelphians who oppose the arena. Not only to those people, but to all Philadelphians who have had no chance to weigh in on this on the -- on the whole negotiation for the last two and a half years when we've known about this proposal, we've had no opportunity for this hearing, for finally to have any discussion -- public discussion about the arena. But it's not too late. This is not a done deal. We invite Council to remember your values as civic servants and vote "no" on this shameful process. We must tell the mayor that this process is not the standard that we should be setting for the rest of her administration. Just a few weeks for Council to consider this proposal and this negotiation to consider such a major proposal is not nearly enough time. If she thinks this is a good idea, then bring Council to the negotiating table, bring the community, bring the press, bring the unions. What does she have to hide? We know a rush job when we see one and we, the people of Philadelphia, ask our government to serve the people, not the billionaires. We do not trust this process. And the only conscionable vote for Council to make on this process is "no." Thank you for your time.
Thank you. State your name for the record and begin, please. PUBLIC SPEAKER VOLZ: Good morning. My name is Sunhee Volz and I'm the Environmental Justice Program Manager with the Asian American Community Fund of Pennsylvania. I grew up in Council District 10. I've lived in the city most of my life and I'm here to voice my strong opposition to this package of bills. The Arena project poses a threat to environmental health and public well-being in Center City and surrounding communities that the impact studies have not even considered. Air pollution is the biggest threat to public health for people in urban areas, and Philadelphia regularly has some of the worst air pollution in the country. Philadelphia's concentrations of particulate matter 2.5 are three times higher than the Pennsylvania average. And downtown Philly has one of the most polluted census tracks in the city -- in the region. I'm sorry. The 19107 zip code has the worst particulate matter exposure in the city. Anyone who lives, works, shops or hangs out in Center City is exposed to this pollution. Children, the elderly, and people with preexisting respiratory issues are particularly at risk. And even short term exposure to particulate matter can cause health impacts and worsen existing conditions. Exposure to particulate matter pollution can raise a person's risk of asthma attacks, heart attacks, and diesel particulate matter from trucks has been linked to lung cancer. Particulate matter 2.5 is so small that it enters the bloodstream and vital organs. The biggest source of air pollution in the city is transportation. A recent study showed Philadelphia has the fourth most congested roads in the country. Chinatown is a neighborhood with little tree cover, no public green space and is divided by the Vine Street Expressway. Every stage of demolition, construction and operation of the arena will produce more air pollution. Why build an arena here in this spot that only worsens air pollution for an historically overburdened community? The people of Pennsylvania have a constitutional right to clean air. That is not being valued here. Why is there not a comprehensive plan for development that gets us to the city's climate goals that provides jobs on projects that create sustainable communities and a sustainable environment and not billionaire interests? Thank you.
Morning. My name's Jeena Chang. I live in Old Kensington and I oppose this bill. You might've seen my five-month old trying to join the testimony. I'm also a mom of a three-year-old who's in pre-K, and in just one month, five of his classmates were sent to the ER because our rec center's playground is literally falling apart. We were promised renovations around this time, actually, but instead, the city just slapped some construction tape up around the most dangerous areas. No 12 renovations. We're told not enough money. I take my kids to a nearby library, actually in Councilor Squilla's district, and this week it closed indefinitely. They -- the heater broke and the librarian said that the contractor came, but he won't fix it. Apparently, the city still owes this contractor $400,000 in previous HVAC bills. Again, we're told not enough money. Well, to the billionaires who want a $400 million tax freebie, it's time they're told not enough money. That's money that we need to keep our schools from shutting down, our libraries warm this winter, and our rec centers safe. For years, the city has told residents to make do, get scrappy, stretch every dollar. Meanwhile, this pilot hemorrhages out money, millions of dollars, on the backs of residents who actually pay their taxes. Why waive a $400 million bill for some billionaires when the city can't even pay its own $400,000 bill to keep its library open. Council members, this math does not add up. And to councilmember Lozada, my councilmember, throughout your career, your heart has been for the many immigrant families in our district. I urge you to protect the District families from being shortchanged and strong armed by this bad arena deal. Thank you.
Good morning, 5 Council. My name is Shirley Young. 6 I am a resident of Philadelphia, 7 born and raised. I am the president of the Hingwayan Homeowners Association that consists of 51 homeowners in Chinatown. A unique housing complex that has common area and we make it work and it's great. I am a member of the Chinatown Neighborhood Advisory Committee. So as a resident homeowner, I am against this arena. Ever since two years ago, none of the talks has involved homeowners and the businesses in Chinatown, and it affects it. Someone made the case about, well, the arena is not in Chinatown, we're -- it's bordering right there. Market East Gallery was bordering. It impacts Chinatown. You cannot say it doesn't impact Chinatown. We -- Chinatown has been here for over 150 years. We are a driving community of homeowners, small businesses, residents, and it's not even just that. We have relatives, friends, neighbors that come to Chinatown to take care, to shop, to take care of people. So the traffic definitely is always the main concern. They're doing the Chinatown Stitch to repair the damage that the Vine Street Expressway has done to Chinatown. The arena will not benefit Chinatown. It will decimate Chinatown. There's proof of that in cities that have arenas where Chinatown is there. Chinatown is decimated after that. So if you vote yes on here, just have the knowledge that you will be signing the death now for Chinatown, for Philadelphia and that will be your legacy. The money -- the arena is not the only option for Market East. There are other options. So please, I beg you that just because they're throwing money at you right now, that should not be a consideration. Chinatown matters. We count on you as City Council to make a choice because Chinatown is part of Philadelphia. Our neighborhoods are very important to Philadelphia. We're not against the union and the jobs and the 76ers, but we want to survive and we want to live and we want to contribute, and we do as taxpayers, businesses, homeowners, we're unique. So, you know, so much more to say. The process that has -- I felt has been shoveled and jammed down our throats. Chinatown community is horrible. There's no 3 consideration. I feel like it's a rough job. SEPTA's not even going to support it. So the changes that they have, one of my concerns is we have senior citizens living in Chinatown, but we also have senior citizens living in other parts of the city that take the bus routes, and all that will change and that impacts indirectly. All right. So the one area of -- arena impacts everybody's lives, and you can't ignore that. You have to pay attention about all of that. It's not just the money and the pack agreement. They're not -- the owners are not paying enough money to Philadelphia for having the arena there. So please vote "no" City Council.
Would Calvin Williams, Deborah Kodish, Derek Schwartz and Rev. Gregory Holston, please come forward. You will each have two minutes to make your remarks. Again, Mr. Calvin Williams, Deborah Kodish, Derek Schwartz and Rev. Gregory Holston.
My name is Deborah Kodish. I am founder and longtime director of the Philadelphia Folklore Project and a co-founder of the Folk-Arts Cultural Treasures Charter School in Chinatown. I'm here to speak against Bill 240966 and to ask you to vote "no" on this harmful arena legislation. Philly is known as the poorest big city in the country, but Philly is one of the richest cities on the planet if we count social movements, arts and culture, people, heart. This is a place of huge cultural, social, intellectual, and spiritual wealth. I have spent decades in collaboration with community-accountable visionaries and institution builders, artists, dancers, musicians, cultural workers in Chinatown and across the city. We are truly wealthy in our people, and I am simply here to remind us that Philadelphia Chinatown, 150 years old, richly diverse and growing is a national, even international cultural treasure. We should act like it. We should hold onto our precious places. The harms of this proposed arena cannot be mitigated and are underestimated. I am part of No Arena in Chinatown Solidarity. Thousands of us now from all over the -- all over Philadelphia who have taken some kind of action to tell you repeatedly, over the last two years, why this is an extremely bad idea. We started organizing because some of us directly experienced what David Edelman and others did to West Philadelphia. We don't want to see more sacrifice zones or sacrifice people. We need community-driven development, not the bad ideas of three billionaires, motivated by profit -- motivated by profit and not the public good. Listen to the people, be our people's champions. And thank you to those of you who have stood up against the steam roller. I'm asking you all to protect what is priceless. Vote "no" on arena legislation. History will remember your actions and so will we. Thank you.
Good morning. My name is Derek Schwartz. I live in District 7. There are so many reasons why I oppose this arena, but today I want to speak from my perspective as somebody living with a chronic illness. My long-term health is reliant on having immediate and dependable medical care. And when I'm rushing to the hospital, I don't have the time or the energy to cross- reference the 76ers schedule, much less to sit in gridlock traffic for 45 minutes. Something that I really value about living in Philadelphia is the great medical infrastructure that we have here. And this legislation scares me because I feel like the access to care that I rely on is being bought and sold to the Sixers in a deal that does nothing for the people of Philadelphia. Jefferson Hospital is the only Level trauma center in Center City, and if that is no longer accessible, then for many of us there will be nowhere left to go and that will inevitably result in avoidable deaths. This bill is threatening the safety of chronically ill people, disabled people, elderly people, and anybody living with serious medical conditions. And of course, medical emergencies happen to everybody. So if this arena is built, we will all be less safe. The 76ers aren't spending any money to meaningfully address the gridlock that this arena would inevitably cause, and have shown that they care more about lining their pockets than they do about our lives. Instead of supporting this arena, I want to see city resources going to support the workers and infrastructure of our already strained SEPTA system to schools and to the city services that we actually need. With this vote, City Council has the opportunity to prioritize the safety of Philadelphia residents over the interests of billionaires. I'm begging you to please stand with the people. Thank you.
Would Lilian Xie, Jamie Luck, Kelly Lam and Elizabeth William, please come forward. You each have two minutes each to speak. Please state your name for the record and begin with your testimony.
Good morning, everyone. My name is Lilly Xie, and I live in District 7. I am here today because I strongly oppose this bill. I'm an urban planner by training, and I've witnessed large scale development projects in a number of cities. This arena is one of the most destructive proposed projects that I have seen. I want to speak on the so-called Community Benefits Agreement. I've seen a lot of CBAs in my time and I can confidently tell you that this CBA is a joke. It's an embarrassment and it makes a mockery of what public process is supposed to look like. 6 million split between 600 Chinatown businesses, which is basically $37 per month per business. On top of that, no input from any community organizations. This is the type of CBA that, as a city planner, I will use as an example of what not to accept. At the end of the day, no 20 CBA would be enough by itself to counter the sheer size and impact of this development and its proximity to vulnerable neighborhoods like Chinatown. As planners, we know that real protection for communities is rooted in development strategies and policies that stabilize and protect neighborhoods for years to come. Not just throwing money at people for a few years and hoping that that wins their approval. What we really need are improvements to basic city services, which again, the Sixers are not putting a dollar towards. Our schools need funding. Our transit system need upgrades. People need dignified jobs with decent wages, including the city's own staff who are currently threatening to go on strike. This resolution is asking the people of Philadelphia, many of whom are struggling to afford basic things like rent and childcare, to foot the bill for an arena whose main purpose is align the pockets of the ultra-wealthy. This is not good development, this is not good city planning. This is exploitation. I urge you to reject this proposal. Thank you. PUBLIC SPEAKER WILLIAMS: Hello, my name is Elizabeth Williams. I live in the Gayborhood with my wife Molly Forline, who is a doctor at Jefferson Einstein Hospital. I'm speaking on behalf of Molly today because she's unable to attend any of the hearings due to staffing shortages at the hospital. I read the 195-page Lung and Traffic impact study, which compared three facilities in New York and two in San Francisco. This obviously skews the numbers to look more like New York. We are not like New York. New York has 45 percent car ownership. Philly and San Francisco both have 70 percent. I've been in SF on game day. I waited 40 minutes to move three blocks. I thought there must be an accident up ahead. I was told, no, this is game day. More alarmingly, the study does not include any streets south of Market. It only looks north up to Cuthbert. There are -- sorry. Callowhill. The arena will impact traffic all around it, not only on one side. Additionally, the proposed ride share drop-off in pickup points require cars to cross Market Street so in order to access or depart. So obviously traffic south of Market will be impacted and gridlock is going to happen. I'd like to keep in mind a group that hasn't been mentioned during these discussions; expecting mothers and newborn babies. Molly was born premature and her lungs were underdeveloped. With not a neonatal intensive care unit, NICU, she would've suffocated and died. As you know, Center City's only Level 1 trauma centers in the area that will be impacted by gridlock, but so is Pennsylvania Hospital, home to the largest NICU in the region. The only two hospitals with NICUs that are south of Temple University are in the impacted area. This can be the difference for high risk pregnancies between life and death for both mother and child. You don't choose when you go into labor and you can't schedule it around arena events. I've heard lots of testimony about the ways that the arena will benefit the Black community, but this is one area where the Black community is disproportionately negatively impacted.
According to the American College of Obstetrics and Gynecology, rates of maternal mortality are three to four times higher for Black mothers. In Molly's experience serving a primarily Black population, the majority of her patients are high risk. These are our most vulnerable new mothers at the most vulnerable moments of their lives. There are a lot of complexities impacting their outcomes, but I ask you, are you willing to make it worse? Pennsylvania Hospital delivers 5,000 babies annually, 13 to a day. That's over percent 14 -- a 50 percent chance during any 15 given hour that a mother is giving birth. By voting "yes" to this bill, you're saying that their lives are expendable and you are willing to take them as collateral damage. What will you say to a mother who gives birth in the backseat during standstill traffic and loses her baby to preventable -- any of the thousands of preventable things that can go wrong during childbirth? Will you say, I knew this was a possibility and I chose to accept that and worsen your odds. Thank you.
Good morning members of Council. My name is Jamie Luck and I'm here with the No 9 Arena and Chinatown Solidarity Organization. Today, I have the privilege to read a statement that was prepared by 105 businesses and organizations within Chinatown. To all members of City Council, on behalf of the 105 undersigned organizations representing the voices, residents and businesses of Chinatown and the vicinity, we the undersigned, issue a clear statement opposing the proposed community benefits agreement and request City Council and councilmember -- Councilmember Mark Squilla to delay the legislative timeline. A Community Benefits Agreement must be negotiated with the impacted community. The proposed CBA never included the concerns of residents, businesses, and civic organizations whose lives and livelihoods will be directly and immediately impacted by the proposed legislation. Our exclusion from this process is unacceptable. The proposed CBA fails to address the following core issues. Less than 10% of the $50 million within the CBA will go towards Chinatown despite it being the most impacted community. This money is less than half of one percent of the value of the project. An amount that is inadequate for the anticipated rise in rent and housing costs, small business displacement and job losses, traffic and construction nightmares, and impacts on Chinatown's basic livability. Second, no money is allocated for housing and rent relief, and no money for housing and rent relief is directed towards Chinatown and impacted businesses in the area. The community impact study reported that more than half of the 600 businesses in Chinatown would suffer as a result of the arena, yet the funding allocated via the CBA wouldn't even cover the cost of a single day of work for a typical business. As Lily noted earlier, this works out to about $37 per month per business for the six years of construction nightmares. The CBA also allocates a paltry $3 million to a small lending program that doesn't start until 2032, well after construction is completed. This also amounts to $166 per business per year. Most of the funds won't start for years, and there are no protections for Chinatown or any other neighborhood if the Sixers fail to live up to their agreement or turn out to be poor managers of this project. The Mayor's administration refused multiple requests for meetings throughout the 2024 calendar year, failing to provide even basic updates to concerned Chinatown residents. No 14 materials have been made available in Chinese, violating the language access mandate of the city. Thank you.
Thank you. Hello. I'm Kelly Lamb. I reside in West Philadelphia and I also organize with the No Arena in the Heart of Our City coalition. And I'll be continuing Jamie's testimony on behalf of businesses and residents in Chinatown. Community residents of impacted areas deserve a fair and inclusive process no 4 matter where we live. We ask Council to respect the voices of our neighborhood and slow down the legislative process until such time as community voices are adequately included and our concerns are appropriately addressed. Signed over 100 organizations, Pennsylvania United Chinese Coalition, Chinese Restaurant Association of Greater Philadelphia, Philadelphia Ho Yu Chinese American Association, Ho Yu Chinese Folk Culture Center, Philadelphia Mazou -- Culture Exchange Association, Greater Philadelphia United Chinese American Chamber of Commerce, Concerned Citizens of Chinatown, Guangxi Association of Pennsylvania, Greater Philadelphia. Lianjiang Association, Chinese Northeast Association of USA, Greater Philadelphia Fujian Association, Philadelphia Chinese Opera Society, Southern Fujian East Friendship Association of USA, Philadelphia Overseas Chinese Culture Exchange Association, Pennsylvania Fujian Chamber of Commerce USA, North American Fujian Association, ANC Association, Philadelphia Incorporated, International Cultural Exchange Association. Philadelphia Sisters Dance Group, the Pennsylvania Chinese Businesses Association, the Pennsylvania Citron Association, World Sun Yat-sen Foundation, Cross Strait Peaceful Development Forum, St. Joseph University Chinese Cultural Center, Pennsylvania United Chinese Chamber of Commerce, Philadelphia Taiwan Association. Greater Philadelphia Chang Xi Association, Asian American Fellowship of Pennsylvania, CAST Philadelphia, American Fujian Chamber of Commerce, Greater Philadelphia, Indonesian Chinese American Association, Asian Americans United, Folk-Arts Cultural Charters -- Treasures Charter School, Asian Arts Initiative, Philadelphia Chinatown Dragon Boat Team. Philadelphia Suns, Asian Pacific Islander Political Alliance, Ginger Arts Center Students for the Preservation of Chinatown, Students Against the Sixers Arena, Chang Association of Philadelphia, Chinese Christian Church and Center. Little Saigon Cafe, Takeng Grocery, Jiang's Hair Salon, Beijing Duck Seafood Restaurant, Laosan Mubei Muyang Gongsi, Mr. Noodle, AM Hair Salon, Bread Top House, Teas Roshan, New Sea Cow, Spicy Chu Shang Delicacies, MBL Burger, Lonzo Hand-Pulled Noodles, Shing Tea 79, Bubble Fish, Room 209, More Sugar, Brew Beer and Beverage. Rainbow Hair Salon, Four Season Seafood LLC, Jin Chung Trading Incorporated. New Hong Kong Bakery, Ocean Harbor Restaurant, Tai Hang Video Corp. Shi Miao Dao Yunnan Rice Noodle, Tai Lake Seafood Restaurant, Asia Bakery, Lee How Fook, Little Seven House, Arch Pharmacy, Designer Eyes, Jade and Art Gift Shop, VBB, Bubble Tea. JiangNan Philadelphia and Style Studio, Siam Express, IP Novelty Inc. Ebisu Japanese Life Store, Mochinut. Hey Yogurt, Non Zhou Hand Drawn Noodle House Inc. China King, Happy DIY, Huge Family Store, Super Acucare, Wayne Key Hardware and Kitchen Supplies Inc. Chinatown Dollar and Up Dragon Spa, Central City Eyecare, K&A Gift Shop, Heung Fa Chun Sweet House, Banana Leaf Malaysian cuisine, Drip Vietnamese Cafe, ePro Associate Inc. Jibei Chuan Philly, PC First Royalty Inc, Eagle Hairstyling Salon, EMei Restaurant, Long Life Chinese Herbs Incorporated, XIX Restaurant, Love Noodle restaurant and QT sandwiches. Thank you, City Council.
Would James Schroder, Fern Lee Hagedorn, Marya Camilleri and Michael McGettigan, please come forward. You will each have two minutes to speak. Thank you.
Good morning. My name is Jim. I've lived in Philadelphia for 15 years. This is my first time testifying. If it's any measure of the interest of the community in this process, I know there are many of us who it's our first time and who are here, I'll say on our own time. I've lived in West Philadelphia for 7 years. 8 Why does someone in West 9 Philadelphia have such concern about 10 this arena? Well, it could be 11 Chinatown, it's the Gayborhood, it's 12 Washington Square West who faced the 13 impact of billionaire developers 14 this time. But it will be my 15 neighborhood next time or rather it has already been my neighborhood. In fact, as a member of Power interfaith, I've met with neighbors all over the city and seen that every one of our neighborhoods is struggling to navigate the consequences of billionaire developers and billionaire institutions. Whether it's the arena, the plans of universities for West Philadelphia, the concerns around Germantown High School redevelopment or Logan Triangle. So I'm here today to ask Council to recognize that it isn't just this development or these three neighborhoods. Rather, this is a moment to stand collectively to set a new standard for what it looks like for great businesses to do business in partnership with Philadelphia. Here's what I mean. I've been pleased since the beginning to hear that leaders in Council and the administration clearly state the city will not provide funding to billionaires seeking to make a few billion more. Seemed like a basic baseline expectation. Unfortunately, now that we see the bills in front of us, we find that standard has lowered. You may have different words for it here in Council, but as a constituent, when I hear about a scheme to donate land and lease it back in order to avoid paying 400 million, maybe 600 million in property taxes, I call that a public subsidy. I'm a homeowner. You might say here that you haven't raised taxes in the past few years, but I'm paying 60 percent more in property taxes to the city than I did three years ago. If I can and indeed I have to, then the billionaires can also. If their business plan does not have the margin for them to pay their share in taxes, then it isn't a very good business plan. If their business plan does not have the margin for them to pay for increased public services that they will require, transit, security, safety, then it isn't a very good business plan. If this is the best deal the city has ever seen, then it is time for this City Council to raise the standard. Billionaires should come here to do business not in the city, but in partnership with the city. Council should raise the expectation. We welcome businesses that partner with Philadelphia. We do not welcome billionaires who can only make their billions more by avoiding paying their taxes and by not contributing to the schools and shared infrastructure of the city. The rest of us do our part. The billionaires should do theirs. Vote "no." Thank you.
Good morning. My name is Fern Lee Hagedorn. I live in South Philadelphia in District 2, Council President Johnson's district. And before I say anything, I want to thank those Councilmembers who are here because I see there are some empty seats. I am speaking on Bill 4 240966. I oppose the building of the 76ers arena in its proposed location. I grew up in Chinatown in New York City, 71 years later, those formative years helped shape who I am today. Thankfully, there is a Chinatown here for young people, and I hope that Chinatown will be here for years to come. But imagine what this project will do to Chinatown in its proposed location. The arena project is not for the common good. The developers talk about minimal disruption and trying to assure us that construction will only be a temporary inconvenience. But who are they kidding? This is not just disruption, this is not just construction, this is destruction. Breaking ground is not a one-day job. For days on end, there will be constant sounds of bulldozers, dump trucks, smashing concrete, loud drilling. Exhaust and dirt will fill the air and land on cars and windows. Children will slip in the mud as water lines are replaced. The elderly will not be able to safely cross a street. Construction will go on not for a month, but for six years, from early morning into the evening. Is this a livable environment? As a result, daily life will be hell. Chinatown will become a dug up neighborhood, people will avoid going there, the construction will drive residents out and bring in other forces to build market rate condominiums. The destruction will be long-term and may be permanent. Six years can mean a slow death for Chinatown. It happened in Washington DC. The permanent destruction of Chinatown will happen if this project is approved. You, City Council, have the power to put a stop to the destruction of Chinatown. Do not be destroyers of Chinatown. Thank you. PUBLIC SPEAKER CAMILLERI: Hi. My name is Marya Camilleri, and I live in Council District 3. I oppose Bill Number 240966. Thank you to all of the Council members who are asking tough questions of Mayor Parker and of the three billionaires who did not even show up to the hearings for the project that they're trying to fast track. I'm a public-school parent with a child in 4th Grade at Folk-Arts Cultural Treasure School, also known as FACTS in Chinatown. We live in West Philly and we love our neighborhood. But my partner and -- my partner and I, both mixed -- both from mixed race immigrant families, have felt in -- at home in Chinatown for plus 4 years. FACTS is a unique, diverse, 5 inclusive community that values 6 identity, language and culture of 7 origin. Families are actively 8 involved in their children's 9 education and the school nurtures 10 academic excellence alongside social 11 justice, empathy and anti-racism. 12 Folk arts are woven into 13 the curriculum and creativity is 14 essential to learning. FACTS is in 15 a vibrant, resilient neighborhood 16 with 150 years of history, full of 17 small businesses that our family 18 supports frequently. I worry about 19 the impact of six years of arena 20 demolition and construction on this community. When I walk from the EL to FACTS, I see the harm that the Vine Street Expressway and Convention Center inflicted on Chinatown, replacing hundreds of homes and small businesses with dangerous intersections, shadowy tunnels, and empty storefronts. This neighborhood does not need another massive building that sits -- that sits empty most of the time. My child will graduate 8th Grade at FACTS before the arena is scheduled to be completed. That's four years of breathing in construction related pollution and navigating disruptions to public transit. I've lived in West Philly long enough to remember how the EL construction devastated 52nd Street. And I fear Chinatown could suffer a similar fate.
Every child deserves to go to a safe clean school and get a quality education regardless of zip code. Sadly, thousands of Philadelphia families are deprived of a school experience that they love, forced to send their kids to crumbling unhealthy buildings. The school district is again warning of school closures, reopening wounds from the 2013 closings. The city is dedicating less time to the school closure hearings than an arena that 78% of Philadelphians think should not be a priority for Council. It is unacceptable that City Council has cleared schedule for 40 hours of hearings on the vanity project of three billionaires who don't live in the city and have a proven track record of broken promises and predatory development. City Council, I urge you keep doing your research, keep asking these hard questions and don't rush this legislation. Don't give these billionaires what amounts to a $1 billion tax break when our public schools and public transit are in crisis. Please vote "no" on this bill. Thank you.
Hello. Yeah. My name is Michael McGettigan. I sell and repair bicycles in Philadelphia. My son went to Philly Public Schools, and in three years if all works well, he will be an MD. On November 5th, a little more recently, we saw what happens when oligarchs get their way. Recently an oligarch just outside Philadelphia cried out, I want to control my own destiny because my team's lease, which I signed off on, doesn't allow us to make a second billion dollars quickly enough. Accordingly, for my corporation's benefits, I require the Mayor of Philadelphia and City Council to foreclose on the destinies of Philadelphia's business owners, residents, workers, as well as patients and staff at nearby hospitals. Oh, don't forget SEPTA passengers, Market East, Wash West and the Gayborhood and the majority of Philadelphians who will oppose tax dollars and city property going to my currently two and 10 basketball team project. That's a 11 lot of destinies to put a smile on an oligarch's face just as long as that property makes him happy and then he will need a more expensive stadium that seems to happen. We older folks have lived through half a dozen Philly mayors who have failed to even whisper about a real plan for the space between City Hall and the Delaware, or asked the community what that plan should look like and why there are so many empty parking lots to Disney Hole, et cetera, et cetera, et cetera. Those are owned by oligarchs who just are like, well it's not a rich enough payday, let's keep a surface parking. That's why Market Street's got a problem. As one of the first plans cities in America, Philly must not let a couple of squabbling billionaires to take a sharpie to our plans for Market East, for Chinatown, for the historic district, for Wash West. And -- but wait, how does Stadium deals work out in other big cities? The answer to that is clear, not one reputable study has found pro sports facilities to be a valid economic strategy. Everybody on City Council knows that, the mayors knows that, that's the -- the studies say it, taxpayers always end up taking a loss. Before an oligarch got upset with how fast he was getting through his second billion dollars, there were real plans for Market East. Let's foreground them at a special four-day session as City Council instead of doing damage control for an oligarchs vape dream. The 76 Place -- the last part of this is division. The 76 Place debate is already damaging our society. Its backers have worked really hard to declare Chinatown as the only problem and we'll pay them off with some community benefits bucks, we just have to figure out what we can buy them for. At the same time, they are widening and exploiting an existing division between Philadelphia's Black and Asian communities. That is a cost the studies haven't mentioned and the studies cannot quantify, and that's something that has to be solved in this century before we build a basketball stadium. 76 Place is dividing our urbanites between those who feel that we should take whatever a developer gives us and be grateful for it, and those who say true expert planning that raises all boats is what we should see. And we are already seeing that on Market East. If you look on the south side of Market Street, there's people putting their money where their mouth is, and nine in six years is happening now, creating jobs. We have heard a union leader announce with a straight face that the home, the base, the home place of our convention center, our biggest hotels, our famous Reading Terminal Market, our world class Chinatown, our historic district is desolate and it's dangerous. Creating a division between a major union and the citizens who get up in the morning, head over to that area, to Market East, to Chinatown, to Wash West and he creates a division between these citizens who live and work hard there every day to meet the challenges of city life.
We know what it looks like there, and we still show up for work, we still show up to shop, the Reading Terminal Market, we support this. That is a cost that's not in any of the studies when a union worker stands up and says that the place is -- there's a blank hole country, he's telling it -- he's saying that, he's saying bad things happen in Philadelphia. We live here, we know better. Chinatown is currently united, but if 76 Place backers succeed, I really hate to say this, but I've seen it happen with the Casino Bucks and elsewhere. If the 76 Place backers succeed, how will Chinatown bridge the gap between those in its community who folded and who took the CBA cash and those who resisted and who were left out of that? And we've already heard 8 times today that it's not enough 9 money anyway to solve the problem. 10 I have not yet heard 11 anyone connected with this project 12 say what an incredible economic 13 engine Chinatown is. How much they 14 make a year, 500 bill -- a bill? 15 Who knows? I'd love to hear that 16 number. We haven't heard it, we 17 just keep hearing a billionaire -- a 18 billionaire this is going to give us 19 a billion. That's a cost that's not 20 in any of the studies that division 21 that could happen in Chinatown 22 that's already happening between the 23 Black and the Asian communities in 24 Philadelphia. That's so many -- that's one of the costs we've heard, and there's so many more that other people have said better than me, and that will say better than me afterwards. We already know 76 Place arena will bring no real economic benefits to that city -- to our city. Even the studies they paid for bear this out. The math has been done, the time is now to continue doing the complicated work of reviving Market East and Chinatown, and not looking at this billionaire's kind of some sort of savior. Is -- Council Person Squilla, is the Mayor here?
Okay. Yeah. With greatest respect, Mayor Parker, Council Person Squilla do not try to play, and I say this as a person who was born in Philly 70 years ago, okay, Councilmember Squilla, Mayor Parker, do not try to play poker with these oligarchs, they hold all the cards, they've already changed the deal, you're going to -- I don't want to lose my shirt just because you have hold of it for a moment and you want to make this guy happy. They changed the deal multiple times. Don't try to play poker with these guys, work with the community that's here.
Thank you. Would Michael Ciul, Pierce Jordan, Kate Carey and Craig Heim. Please come forward. Again, that's Michael Ciul, Pierce Jordan, Kate Carey and Craig Heim, please come forward. You will each have two minutes to speak.
Hi, my name is Mike Ciul. I live in the 3rd District, West Philly. Thank you, Councilmember Gauthier, for your support. I'm really nervous. And I want to thank everyone who's come here to speak, I know how much courage it takes to come here, and I know there are a lot of people that they couldn't make it, so I'll do my best. I have been car free all my life by choice. I've chosen to live in West Philly, very close to the L. And I love Philadelphia, it's such a great walkable city, I take SEPTA everywhere. We have a great Chinatown, we have a great sports complex and we have a great subway line to connect them. I would hate to ruin all of those things by building something we don't need in a place that is already amazing, wonderful. I sang with Mendelssohn Club way back to celebrate the 125th anniversary of Chinatown, we got to sing in Chinese. We sang the Yellow River Cantata, and it was such a great experience, it made me so proud of my city. And it was only a few years later that they said they were going to build a stadium there. I thought, what an insult, what a slap in the face to the people of Philadelphia. And then they said they were going to build a casino, I'm so glad we stopped those things from happening. I can't believe anybody buys the story that this arena is going to bring business to the neighborhood. I was at the convention center for an event recently, and we were hungry, we wanted to eat lunch and I knew we were on our -- we could go to Reading Terminal, but those buildings are built like fortresses. They're designed to keep visitors in and neighbors out. That's enough. Thank you so much. Thank you for listening.
Thank you for your testimony. Please state your name for the record and proceed. PUBLIC SPEAKER CAREY: Good morning, everyone. Councilmembers and everyone else, my name is Kate Carey. I'm not part of any organizations, I'm just a regular person. I am a lifelong Philly resident, my family has lived here for generations, half of which have been firefighters, paramedics, and the other half union truckers, HVAC technicians and mechanics. For the last seven years, I live in District 10, which for those of you who don't know is very far northeast. So if you're wondering why someone who lives so far from the proposed site of the arena is so opposed to it, it does affect all of us. On my -- and it is a bad deal for Philadelphia. On my hour-and-a-half each way ride on SEPTA to my job in Center City every day, I often overhear neighbors on the bus discussing their concerns about this Sixers arena as well. Whenever there is a marathon on the parkway or a street festival in the Gayborhood, the traffic congestion, SEPTA delays and rerouting are already so frustrating. Not to mention that the city's only trauma one center is mere miles away from the proposed site. And when every second counts in an emergency, this traffic added will cost lives. Giving the proposed Sixers Arena a property tax break when our transit system is already struggling to the point of cutting routes and increasing fares, housing prices are climbing and public schools are barely hanging on, is -- sorry, I'm a little nervous, is a waste of our resources, frankly, and I'm not willing to sacrifice another vibrant community of hardworking people for a bunch of billionaires. Thank you.
Thank you. Thank you. Please state your name for the record and proceed with your testimony.
Good morning. My name is Craig Heim. I'm a Sixers fan from the amazing community of East Mount Airy in the 8th District where I've lived for years. Over the past several months, I've spoken with staff from all Councilmembers' office and shared my strongly held view that the Sixers Arena absolutely should not be built in Center City. Without exception, these staff members have been professional, friendly, and responsive in recording my opposition. I contacted all the Councilmembers because this issue is not about one community or one Council district. It's about the entire city of Philadelphia and what it means to be part of a neighborhood. One Philly, a United City. It's a citywide concern and as an elected official I wanted to make sure every one of you had my input. The 76ers own economic study make it clear that this project would profoundly, negatively impact the Chinatown community, people's homes and businesses will be ruined for the financial gains of a handful of billionaire investors. Support for this proposal is callous approval of the destruction of a vibrant Philadelphia community. Don't let it happen. One of the economic benefits cited in the 76ers study is quote, increased competitive pricing of stadium suites in a city with two arenas. How far from the reality of everyday Philadelphia citizens is this finding in a city where the vast majority of residents can't afford to go to a game? Why should we care about luxury suite prices? The idea that Chinatown is the only viable location in Philadelphia for a new arena is absurd.
Thank you for your testimony. Would Lien Vu, Jack Koch, Megan Malkemes and Emma Thorp, please come forward. Again, Lien Vu, Jack Koch, Megan Malkemes and Emma Thorp, please come forward. You'll each have two minutes to speak.
Thank you. Please state your name for the record and proceed with your testimony.
Hi. My name is Lien Vu and I am the president of OCA Advocates Greater Philadelphia. We are the local chapter of a national Asian American Civil Rights organization that's been around for over 50 years. Our organization has witnessed - has witnessed Chinatowns and similar communities across the country, threaten and decimated by the construction of sports arenas. These projects often promise to create jobs and boost local businesses, as you've heard, but in reality, they represent the death rattle of these community's history and cultural identity. Take for example, the Capitol Arena in Washington D.C., which opened in 1997. This arena led to the collapse of D.C.'s Chinatown displacing long-term residents and small businesses, and eroding the community's cultural identity. Residents describe the impact as devastating, watching as promises of economic support for small businesses failed to materialize. I was there at that time. Similarly, in Brooklyn, the construction of the Barclays Center disproportionately forced out communities of color. Rent increases primarily affected lower income residents, while higher income individuals could afford the changes leading to significant displacement. Now we face a similar threat with this proposal. Economic studies consistently, like you've heard, show the reports that sports arenas do not increase tax revenues for their local areas. If more money is needed, the 76ers developers have stated that the even the community benefit agreement will not increase. OCIGP hasn't seen no 12 efforts from the city or developers to address community concerns about displacement, cultural preservation, or the everyday impacts of construction on traffic, SEPTA transit, schools, churches, et cetera. From what we have seen so far, this arena will devastate Philadelphia's nationally recognized, one of the oldest Chinatowns in the nation. Just as the Capitol Arena destroyed D.C.'s Chinatown and the Barclays Center, the forced out communities of color in Brooklyn. Thank you.
My name is Jack Koch. A lot of shock clock violations tonight here. I live in Philly, I'm also a business agent for the Elevator Constructors Union Local 5. There is nothing more important than having a job to support your family and the dignity of work. This arena will provide jobs during the construction, after the construction is finished also. This arena will spark growth on the East Market, which desperately needs it right now. Within this growth, there will be more jobs and more end of the day -- and at the end of the day, permanent jobs. The city will have more restaurants, bars, places to go. Nothing worthwhile is easy, but at the end of the day, this will definitely be a positive for our city. Thank you.
Thank you for your testimony. Please state your name and proceed.
Hello. My name is Megan Malkemes. I'm a constituent of Councilmember Squilla, and I'm a social policy student here in the city, and I'm here to express my total opposition to the construction of the 76ers arena. As a taxpayer in this city, I'm strongly against $400 million of tax revenue that could and should be invested in the youth, families, and workers of the city being wasted on an unnecessary expenditure that has been met with such outspoken opposition. I'm also strongly against the advancement of any development project that threatens to decimate up to 50% of small business in its surrounding communities. As someone who arrived to Philadelphia, in part because I can no longer afford to live in my hometown of Boston, Massachusetts, I'm all too familiar with the failure of community benefits agreements to prevent displacement and result in substantial benefit for the residents most impacted by gentrification. As someone who relies on SEPTA for transportation and has been a retail worker in Center City, I'm also all too familiar with how SEPTA disruptions interfere with the economic stability of low income workers who risk workplace penalties with SEPTA dysfunction as it impacts their commute. And lastly, as an emerging policy professional who intends to remain in the city, I believe that when presented with such clear opposition to a project that data indicates will harm its constituency at the level of housing, employment, and healthcare, just to name a few, that City Council should act in the interest of its community stakeholders and the community members of Chinatown who are at risk of displacement over the interest of a handful of billionaires. Thank you.
Thank you. Please state your name for the record and proceed.
Thanks. My name is Emma Thorp, I have been a resident of Philadelphia for 10 years. I grew up in the D.C. area. And every time my father visits, he is just overwhelmed by the amount of small independent businesses we have in this city. Unique -- Philly is really unique in how many small, locally owned businesses we have. If my father wants a cup of coffee that is in a Starbucks, he has to drive minutes. Here I can walk 7 five minutes from my apartment and 8 run into three or four locally owned 9 coffee shops. 10 I remember, you know, 11 when I was a teen, you know, being a 12 bad kid going around D.C.'s 13 Chinatown, by that time I was old 14 enough -- by the time I was old 15 enough to do that on my own, there 16 -- it was completely stripped of any 17 kind of local character or local 18 business. Every business was a 19 chain, every restaurant was 20 nationally owned. Here, if you walk down D.C. or Philly's Chinatown, it is unrecognizable from D.C.'s Chinatown. There is dozens of independent businesses on every block, there is -- you know, you could eat out every single night for a week and still be going to independent locally owned businesses. I was very concerned by the impact study that said 50% of businesses would be negatively impacted by that, and we've heard at this hearing today that, you know, over 150 local Chinatown businesses are opposed to this plan because they worry that, you know, it may close their business. And that is something that if we, you know, if the arena goes through, we would see, you know, a pop -- we would see that the businesses are being negatively affected and we would lose what makes Philly so characteristic and so unique and what other cities have mourned losing. In addition, I just also wanted to speak how wonderful it is how many union members we have. I think unions and construction is the lifeblood of any city, and it saddens me that we are seeing it as unions and constructions versus the people and culture when really it should be all of us versus the billionaires that have depleted the city of its resources, making it impossible. Making it so the city doesn't have money to spend on publics and hire unions to repair things like parks and schools, and in fact can't even pay the bills to the contractors that have been hired for those things. So yeah, thank you so much for your time. Go Philly.
Would Sherrie Cohen, Ben Fileccia, Lillian Austin, and Yvette Young and Roxanna Taginia, please come forward. Again, Sherrie Cohen, Ben Fileccia, Lillian Austin, Yvette Young and Roxanna Taginia, please come forward. You will each have two minutes to speak.
Thank you. Please state your name for the record and proceed.
My name is Sherrie Cohen. I'm a community activist attorney and I live in the 8th Council District. I came here to speak against the arena legislation and to urge you do not sacrifice Chinatown on the altar of billionaires. I have three points. Number one, history. Philadelphia's Chinatown, one of the last surviving Chinatowns in the U.S. was founded in 1871, over 150 years ago. Last year it was named as one of America's most endangered 6 historic places by the National 7 Trust for Historic Preservation to, 8 quote, raise awareness about the 9 threat facing one of nation's 10 greatest treasures. 11 This national organization recognized the threat to Chinatown's existence caused by 76th place. Do you? In 2026, the 250th anniversary of the founding of the U.S. We'll celebrate as "one Philly" -- oh, I'm sorry. Will we celebrate as "one Philly" the word of our mayor, or will we no longer be one Philly because we have consigned one of our nation's greatest communities to displacement and decimation. Number two, housing. While we debate whether one team should get a new home when they already have a home, isn't the more important question, what are we doing about all the Philadelphians who really need a home? We have an affordable housing crisis with more than 70,000 households on the wait list for publicly subsidized housing. And about 50% of renters are cost burdened. Number three, one Philly. I dare say that most of us are still reeling from a certain election that took place two weeks ago. That was when an orange billionaire used the familiar playbook of divide and conquer and won. Let us now not let three billionaires, I don't know if they're orange, divide and conquer us. As our mayor says, let us be "one Philly." Let us stand together in solidarity with Chinatown today and when Chinatown celebrates the 250th anniversary of its founding in Philadelphia. Thank you.
Thank you. Thank you for your testimony. Please state your name for the record and proceed.
My name is Ben Fileccia. I'm a lifelong Philadelphia resident and the senior vice president of the Pennsylvania Restaurant and Lodging Association. The PRLA appreciates Mayor Cherelle Parker's thoughtful and collaborative approach, navigating conversations happening at City Hall around the development of a new arena for Philadelphia 76ers in Center City and commends the mayor for her diligent leadership. Mayor Parker's stance on keeping this iconic team in Philadelphia is not only a win for the city's sports fans, but also a bold step towards driving economic growth and reinforcing the strength of the hospitality sector. Mayor Parker has been a long champion of hospitality, and this bold endorsement makes clear her commitment to our industry and her promise to attract more visitors to Philadelphia. Since taking office, she has made great strides to our -- to cut bureaucratic red tape, streamlined services. And by forming the Mayor's business action team will make operating in Philadelphia easier and more appealing for our businesses. These actions reflect her vision of a city that is both economically vibrant and hospitable to operators across all industries. As this project progresses, PRLA looks forward to actively engaging with all stakeholders, including the over 80,000 service workers in the region to ensure this development benefits both the local economy and the hospitality community, which is critical to Philadelphia's continued success as a premier destination. Thank you.
Thank you. Please state your name for the record and proceed. PUBLIC SPEAKER TIGINIA: Hi, Councilmembers and fellow residents. My name is Roxanna Tiginia, and I live in South Philadelphia in the 1st District. I oppose the arena plan as this would decimate today's vibrant Chinatown. And to understand a bit of what we can expect here in Philadelphia, I wanted to speak a little bit on the decision makings of D.C. back in the 80s and 90s to see what is in store for Philadelphia. D.C.'s Chinatown served as a home and a community hub for Chinese immigrants reaching a majority of the neighborhood population occupying 69% of the neighborhood according to the U.S. census. However, D.C. government had different plans for this area. Despite calls from the Chinatown community in D.C. for support and community development, D.C. officials made way to build out a convention center, a commercial mall, and an arena, which sounds very familiar to our Chinatown area today. This resulted in further increasing property prices and displacing countless Chinese businesses and residents. By 2015, the Chinese population had dwindled drastically with the 2020 census reporting only 18% of Chinatown residents being Asian American. This marks the highest decrease in Asian American residents out of any city in the United States, over a 40% decline. I bring all of this as an example of what we can expect with this arena. We can expect a disrupted Chinatown, we can expect a majority of its residents to be displaced because it's happened before. We've seen it in D.C. D.C.'s Chinatown exemplifies how poor decision making from city leaders can result in a broken, fragmented community sterilization of an important cultural hub and a displacement of families and thousands of residents. So I ask you all Councilmembers to consider the long lasting effects your decision will have on this already incredible neighborhood in Chinatown, and to stand with the majority of Philadelphians who oppose this deal. Thank you.
That concludes our witness list for today. Thank you all for coming.
Thank you very much, Council. We'll stand in recess until 1:30 this afternoon. Thank you. (Lunch recess taken.)
Good afternoon, everyone. Good afternoon, everyone. Today is definitely a good day. As I look at my Chairman of Labor over there and my Chairman of Transportation, and members of Council, we've all advocated and sent the letter to accepted to strike a good, fair deal with the workers at TW, which we now are going to reach. I just want to thank the members of this body for their advocacy and being supportive of those efforts. To the matter at hand, now, we have several panels that will be speaking today regarding the legislation before us today regarding the proposed arena, 76ers arena. And so what we're going to do is call up the several panels for today. Well, Mr. Christmas, please call the first panel.
Walter Tsaou. Walter Tsoau, Raymond Palidora, Ellie Yu, Randall Drain, please come forward. Two minutes.
How are you doing, Walter? How are you today? PUBLIC SPEAKER TSAOU: Thank you so much.
State your name fully for the record and please begin. PUBLIC SPEAKER TSAOU: Okay. My name is Dr. Walter Tsaou. I'm the former Health Commissioner of Philadelphia. I'm a Mount Airy resident and in the 8th Councilmanic District. The owners of the Sixers had a vision of putting a Center City arena, but they never surveyed their most important customers, their fans. They have touted the idea that only the Sixers Arena can revitalize East Market Street, but they are wrong. As the reality of the unanswered problems of this arena, opposition has grown not just from Chinatown, but Washington Square West and the Gayborhood. The JMT study of traffic depends on at least 40% of Sixers fans taking SEPTA to the game or risk intractable gridlock. Such gridlock could also increase particulate matter, for example, in our atmosphere. This dystopian reality of ambulances being unable to bring their heart attack or bleeding patients to timely care was not of concern to the Sixers owners. The JMT traffic study doesn't consider the reality of Philadelphia, where a shooting at the Lombard Station happened just yesterday, nor does it consider The Flower Show or other large events that will clog up all the parking garages in Center City. SEPTA, which all ready faces tremendous budgetary problems, will have to negotiate keeping the rails running while having a large construction overhead on top of Jefferson Station. This is also unfunded. SEPTA is an essential route for primary care and prevention for its patients. If the goal is to revitalize East Market Street, we should have a public participation processes noted in recent inquire article. A serious promise is dead zone created by the federal buildings between 7th and 5th Street, which basically closes after 5:00 p.m. If you want to revitalize that area, why don't you build a second Christmas market on Independence Mall? It would at least revitalize that part of East Market Street from Spring tourists to Winter residents. The vitality for streets comes with people, which means strengthening public transportation, including an inner city bus terminal, and maybe even ferry service between South Jersey and Penn's Landing. This could bring thousands of visitors to East Market Street door to stop. Of note, it is young immigrants starting families, buying diapers and other essential goods who fill our retail stores. We must fight mass deportation and preserve our immigrant population in Philadelphia. There's been a level of disrespect that needs to be stated. No respect for what it would do to SEPTA, the surrounding neighborhoods, access for emergency vehicles or the opinions of the Sixers fans themselves, or for that matter, this City Council. As Councilman Bass noted, the owners didn't even bother to show up. Why do these billionaires so categorically reject the sports complex, which is somehow good enough for the Flyers, Eagles and Phillies? If they want to build a stadium arena so badly, why not build it there? What is -- what is their beef with Wells -- Wells Fargo Center, which has just undergone $400 million in renovations? Well, let's put it this way. If your mother spent $400 million fixing up your bedroom and you said, "I'm not moving there." She will say, "You deserve a spanking." Well, City Council, you are the adults in the room, and you need to give these billionaires a spanking, and let them know as every neighborhood around this proposed arena has said, do not build it here. Thank you.
Please state your name, for the record, and please begin. PUBLIC SPEAKER PALIDORA: My name is Raymond Palidora. I'm born and raised here in Philadelphia. I lived in South Philadelphia my whole life, District 1, represented by Councilman Mark Squilla. I've been working in medical oncology research at Jefferson for about 10 years now. I'm here to express concerns about the proposed Sixers arena in Center City, and its potential impact on patients, the quality of care, and the important work that all of us healthcare workers do every day. At Jefferson, we care for vulnerable patients, including those with cancer where timely access to treatment is essential. An arena in such a busy area will create traffic and accessibility issues, making it harder for patients to reach the hospital on time, which can negatively impact their care and overall health outcomes. As someone who is involved in cancer research, I know firsthand how important it's to maintain a stable environment for those patients and healthcare staff. Increased congestion around the hospital in this area will not only affect our patients, but also affect hospital employees, researchers, students, healthcare workers, all who travel in and out of the area on a daily basis. Delays in getting to work can lead to disruptions in clinical care schedules and slow down the essential research that happens there everyday. Our research collaborations with external partners and the delivery of essential research materials like brand new experimental cancer treatments that I deal with all would face delays, potentially hindering the progress we've made in advancing cancer treatments. Outward shipments of things like blood tests and tumor biopsies that need 24-hour processing would also be a delayed, hindering research and treatment further. We also have to remember that this arena won't be built overnight. Before anything is completed, there'll be years of demolition and construction right over Jefferson Station, one of the busiest transportation hubs in the city. During this time, trains will be a delayed or stopped, streets surrounding the hospital will be blocked by cranes, construction vehicles, and all the other equipment. This extended period of disruption could severely affect our ability to provide consistent and timely care for patients. Construction delays, road closures, reduced public transit options, will make it even harder for patients to travel to their appointments or for doctors and nurses to reach their hospital on time. For cancer patients in particular, many of whom have all ready have tightly scheduled treatments, this arena could delay this delicate schedule. A delayed appointment is not just an inconvenience for them. It can directly impact their recovery and treatment outcomes. Some participants in my studies have all ready expressed concern about their proposed arena and said they would try and schedule their appointments around all the different major events that would happen there. This kind of scheduling uncertainty would disrupt care at various times throughout the day leading to unpredictable patient flow and creative backups in critical areas like our infusion centers. So when patients avoid certain times during the day, and what I mean is, you know, the day before or the day after an event, the morning of the event, because they want to get in and out of the city, that puts stress on all the scheduling for all the doctors. Patients will be double booked and all the care will be backed up. While I understand the desire to bring new business and enter entertainment into the city, and I understand the desire for the Sixers organization looking for a new home for the team, I'm not against that. I believe it's crucial to just find a better location. There's plenty of room 7 for the arena in different parts of the city, and I'm sure we can find a good home for the Sixers.
Patients and employees, and students' well- being must come first and I encourage City Council to consider the consequences that this development would have on the city's health and the well-being of all of our communities. Thank you.
Thank you. Please state your name and begin your testimony.
My name is Ellie Yu and I'm a queer and trans community member from West Philly. I'm a patient registrar and care coordinator at the Mazzoni Health Center, a primary care facility centering LGBTQ plus folks in gender affirming care and HIV treatment and prevention. I'm also a union committee member of SEIU Healthcare; Pennsylvania's largest union of nurses and healthcare workers, and the only chapter of SEIU Healthcare PA located in the heart of Philadelphia. As healthcare workers serving members of the community -- LGBTQ plus community, we are firsthand witnesses of the impacts of cultural erasure and limited access to lifesaving healthcare. A majority of our patients, in addition to being queer and trans, or living with HIV, experience multiple health disparities including housing insecurity, food insecurity, substance use, and overall structural racism and systemic bias. A majority of our patients have incomes at or below 133% of the federal income poverty line and come to us to receive affordable, judgment free, and affirming care. In the early 1980s, when the AIDS pandemic pushed our queer community into the spotlight and took the lives of many beloved friends and family, Philadelphia community members in the Gayborhood and the rest of the city came together to provide healthcare and financial assistance to those impacted by the epidemic when federal, state, and local governments failed to respond. The Mazzoni Center where I work, formerly, Philadelphia Community Health Alternatives, is one of many organizations that emerged to provide care to underserved residents in Philadelphia. Our secondary location, which specializes in HIV and STI prevention, treatment and education is located in the Gayborhood on 12th and locust, just a few blocks from the proposed Sixers arena. The proximity of the proposed stadium to our center is concerning, especially considering this history -- of the city's history of overlooking the needs and concerns of the queer community. The proximity of the arena threatens the accessibility to the all ready scarce free community at HIV and STI testing in the city, which is crucial in preventing the transmission of these infections becoming a public health crisis. Additionally, over 80% of our patients rely on public transit to access care. SEPTA is already facing a financial cliff. There is no funding in the current plans, Sixers games or money for the SEPTA cleaning. The financial burden of the arena cannot fall on SEPTA users. Ordinarily, Philadelphians who rely on SEPTA, including our patients, cannot afford additional fare increases. This proximity hurts not just our LGBTQ plus residents, but every individual living in Philadelphia. The Commission Traffic Impact Studies have shown that the introduction of 76 Place will unequivocally worsen traffic leading to Jefferson University Hospital, Center City's only Level 1 adult trauma center of which there are under 220 Level adult trauma centers across all 50 states. These hospitals are crucial in emergencies as they're equipped to stabilize and treat the most critical injuries. Patients with the most life threatening injuries need to be transferred here from other facilities in order to receive the appropriate treatment. This means that in a Level 1 trauma emergency where every second counts, traffic congestion is life threatening. While I'm not a first responder or I do not work in emergency room, I do know many of our patients rely on Jefferson University Hospital as the only emergency room they are close enough to get to. I've seen the notes that get sent to us from Jefferson when our patients are admitted into their emergency room. I've taken calls from Jefferson notifying us of a patient's death. I've listened to family members of patients expressing profound grief at the passing of loved ones due to fatal injuries. And I remember every single one of our patients' names who we've lost since -- lost since their lives could be so easily prevented.
I hope that you're all able to take some time to consider what it is would be gaining from losing -- gaining and losing by this arena being built. And if any of it is worth listing the lives of Philadelphia residents who put their trust in you to represent them. Thank you.
Thank you. State your name for the record, sir. Please begin.
Hello. My name is Dr. Randall Drain, and I live in the District 5 near Broad and Girard. I'm a lifelong resident of Philadelphia and I was born and raised in North Philly for approximately 35 years. I treated many wonderful patients as a pediatrician in North Philadelphia and West Philadelphia. The majority of my patients and their families that I provided healthcare to were African American. Currently, I go to church in Chinatown at Renewal Church, and I love this vibrant and friendly community. I'm here today not only because I love Chinatown, but also because I feel called to speak out as a physician who's now retired. Let us just review again some of the alarming statistics. Philadelphia's ambulance response times are three minutes longer than the industry standard for safety. Only 33% of Philadelphia ambulances make it to patients within the recommended nine minutes. Center City traffic is a large part of this problem. An arena would bring thousands more vehicles into the area at one time. The congestion and gridlock from an arena would slow down ambulances even more and put patients' lives in danger. Jefferson Hospital is an excellent Level 1 trauma center, the only one left in Center City, and they see the most critically ill patients: Trauma from gunshot wounds, car accidents, heart attacks, strokes. In these emergency cases, every second matters. For every minute a hospital arrival is delayed, a patient's chances of dying are 5% higher. Healthcare is already challenging for many African -- African American communities in Philadelphia without having to navigate the prospect of delayed care during game -- during game time. And just in summary, just like you to consider to put private interest, like the arena, not above public health. We need to put patients over profits. Any plans for development in Center City need to consider public health first. We urge decision makers like yourselves to consider the impact to public health and to do what is morally right and just for all Philadelphians before moving forward with plans to build the arena. Thank you.
Thank you very much. Just that one brief question before I turn it over to my members. Your testimony concerns were raised about the proposed arena that might impact traffic near Thomas Jefferson University Hospital, potentially affecting patient access. However, on Tuesday, November 12th, 2024, this City Council heard from the administration, meaning the Mayor's administration, that an independent analysis by OTIS, which is the Office of Transportation Infrastructure and Sustainability, found that no significant impact on the Jefferson Trauma Center with the Jefferson CEO, and the CEO name is Joseph Cacchione agreeing on that. They stated that the 10th Street corridor, they meaning the CEO of Jefferson, Joseph Cacchione, mentioned that the 10th Street corridor will be reserved for emergency access with police ensuring the area remains clear. So can you give me your perspective on -- and I only asked this question because we want to be data driven as well. I asked this question based upon that this CEO who runs the hospital, his primary, it's going to be his responsibility to make sure that patients are treated adequately and actually more than adequately. And so for him to come out and put his reputation out there leading the actual hospital that's subject for debate kind of says a lot, but I wanted to hear from all of you --
I'll offer my opinion, which is there's politics involved here. He's curry favor with the Mayor, with the building trades, he needs them for his future developments, and he realizes that he's in a very difficult decision -- position. I have been told by many staff people at Jefferson that they have been asked not to speak about this from a public relations perspective. And I think that common sense should tell you that 10th Street is only -- there's only two lanes going down that street. I don't know, are you going to have the police block off all the surrounding roads like they do for festivals and so on? And how will that actually make traffic congestion even worse if they were to do that? So I just think that the 10th Street carter idea is a fantasy, if you're going to have a Sixers game and you expect people to find parking spots? Common sense should tell you that that doesn't make any sense, frankly. And I think common sense should prevail.
I just wanted to put that on the record. The next person I'm going to call is Councilmember Anthony Phillips.
Thank you, Council President. I just -- Walter, correct? Yeah. So I just had a question for you. You mentioned that there should be a space near the Independence Center to do a market, some sort of like marketplace that can help revitalize that particular area near Independence Hall. But I didn't -- maybe I didn't catch you correctly. Did you mention what would be a space other than the arena that could replace to where the current -- where the current, you know, mall is right now? What would be something that could be worth investing in there? PUBLIC SPEAKER TSAOU: Well, you know, the -- I'm -- I'm thinking of the Christmas market which is surrounding this building right now, which is a temporary structure, which could surround Independence Mall, for example. But during -- when the tourist season sort of ends in the Fall, we could start having a Christmas market around Independence Mall and actually use it as a way of getting people to come to the 5th and 7th Street area, which usually closes down after five o'clock.
But what -- what would replace the --- the -- the Fashion District? So that's down the street, but I'm talking about the Fashion District, so the mall. PUBLIC SPEAKER TSAOU: Well, I think, the Fashion District suffers from the fact that there's not enough people who come into the town right now and shop there. And its safety is a big issue. And trying to improve safety is an important part of that. But also, the fact is that we have not -- we've taken away the bus terminal from the city, we don't have a ferry service that bring people from South Jersey into the eastern part of Philadelphia. We could do a lot more creative things to bring people in here and we can preserve immigrant families, like I said before, who are the ones who are most likely to buy essential goods for their kids and their families. Not me -- I'm, you know, I go out and go over Broad, but I don't -- young people --
Have you and your team worked on finding, you know, investors and so forth to, kind of, like counteract this potential development, like could actually pay for something to replace that area. And also would you be, if the Sixers were to move to New Jersey, how do you think Philadelphians would feel about that? PUBLIC SPEAKER TSAOU: Well, I -- I'm -- I don't think that would be a good idea personally, but I -- my testimony is why -- what's wrong with the sports stadium? If you walk from the NRG stadium to the Philly Citizens Bank Park, there's like four blocks that you have to walk through just to get to the Citizens Bank Park. That's a big open space there. Why don't you put a Sixers arena there that faces the Wells Fargo Center, they can point their fingers at each other and, you know, the building trades can build something wonderful right here in Philadelphia.
The Chair recognizes Councilmember Jamie Gauthier.
Good afternoon and thank you for being here. I wanted to delve into -- I also wanted to delve into what seems to be a discrepancy between how Jefferson leadership views the proposed traffic plans presented by the 76ers and how Jefferson's emergency room and other front line staff feel about the plan. So I think these questions are for Raymond, but if there are things that you can't answer or are not privy to, then that's fine. First, am I correct in understanding that Jefferson leadership commissioned in an internal study to understand the traffic impact of the arena, or are they using the city's transportation impact study? PUBLIC SPEAKER PALIDORA: So from what I'm aware of, they said they conducted their own, that wasn't shared with employees, it said there was going to be. I have not seen it. I'm assuming they might have used what the city had seen and piggybacked off that for some data, but I haven't seen anything.
Can you talk about how Jefferson's leadership informed or engaged frontline staff in this process? For example, was there a town hall or a conversation with staff that allowed people to express concerns about traffic or perhaps an anonymous survey of staff and, you know, physicians and nursing staff? What have those conversations looked like? PUBLIC SPEAKER PALIDORA: Again, as far as I'm aware, not -- not a whole lot has been shared or asked of staff. I believe there was one -- one town hall where some questions were brought up, and it was going to be asked of the top to kind of come down. Anytime I've reached out for more information or questions, it seemed that, again, it was in the works and employees will know and staff will know, but no 9 town halls or anything like that have been really developed.
Can you talk about what transpired at the town halls? What was the overwhelming sentiment of the staff? PUBLIC SPEAKER PALIDORA: So the -- the one town hall that I knew, some questions might have been brought up. I was not a part of. So I can't particularly speak on that from some other just colleagues and things, there's a bunch of different opinions on the arena itself. But again, nothing official is like a platform for us to really share that.
Lastly, now that you have this public forum, what would you want Jefferson leadership to take into consideration when they're thinking about traffic around the hospital? PUBLIC SPEAKER PALIDORA: Again, I mean, I think everyone's concern seems to be just general congestion, patient flow in and out, and like I said, you know, healthcare workers getting in and out of the -- of the arena. And one thing I've also said that seems to also be kind of thought about is if I'm a nurse working in my third 16-hour shift and I'm trying to get home and now there's a two-hour delay on a train, because there's a Sixers arena, that's one thing. But also patients coming in and out, I think it just needs to be considered of all the other parking lots might not be taken care of because there's an arena, so patients have no place to park. So I think that needs to be prioritized before an event going on in Center City.
You are welcome. You're welcome. Councilmember Jim Harrity.
Thank you, Council President. And thank you for your question, that was actually my first question that I was going to ask also. So just to follow up on that, do you think that it would be helpful to designate one lane in the corridor of the hospital during arena events to mitigate traffic concerns? If we designated a lane just to emergency vehicles? PUBLIC SPEAKER TSAOU: How -- is this the honor system? How does this work that you have police blocking parts of this corridor and say --
I mean -- PUBLIC SPEAKER TSAOU: -- or traffic cones or something, or?
I'm not trying to jerk you off, so please don't try to jerk me off. PUBLIC SPEAKER TSAOU: Yeah, yeah.
All right. I asked a question, and you'll show me the respect that I deserve for my seat. Just like I'm showing you the respect. PUBLIC SPEAKER TSAOU: Yes, I take it back.
That was an honest question. I'm asking if there was a lane designated for emergency traffic, do you think that would mediate the concerns? That was it. PUBLIC SPEAKER TSAOU: No, I don't think.
So you don't think so? Okay. Thank you. I'm good. I'm good because I need to calm down before I --
Thank you, Council President. I just wanted to take one second for us to all think about the fact that a lot of people are coming here to express their opinions on the project, pro or con and also to do so sometimes, in a general way and sometimes, in a certain lane. And I think it is -- would not be helpful for us to ask just everybody, what do you think should be built in this space as well as we -- not everybody's an expert on traffic studies also, I think we should just, you know, listen to what people are telling us and try to ask questions that are directed towards that, because I think that's the way we can get the most from, for example, this panel of medical experts that we have. Thank you.
Thank you very much for your testimony. PUBLIC SPEAKER TSAOU: Thank you.
Mark Merlini, Dan Killinger, Ed Grose, Rob Zuritsky, Paul Levy, please come forward. You will each have two minutes to speak. Thank you.
Rob, you want to start us off? PUBLIC SPEAKER ZURITSKY: Sure.
It was good to see you. PUBLIC SPEAKER ZURITSKY: Good to see you.
Mr. Zuritsky, good to see you. Just start your name -- say your name for the record, and please begin your testimony. PUBLIC SPEAKER ZURITSKY: Good afternoon. My name is Robert Zuritsky. I'm president and CEO of Parkway Corporation, a company proudly headquartered just three blocks up North Broad Street. My company has been in the parking business in Philadelphia for 102 years, and is regarded as a national leader in parking operations technology and development. Parkway is also a national developer and owner of office, residential, retail, medical office, hospitality, and parking with most of our developments taking place in Center City, Philadelphia. Interestingly, I believe Parkway is the only developer with direct experience building for sale, affordable housing and parking in Chinatown in the last 60 years. Hospitality, retail, parking in the convention center district, medical office for Penn -- building medical office for Penn Jefferson, and Wills Eye with retail and parking in the medical district, and one of the only developers in the country who is building 880,000 square feet of build-to-suit office, and certainly the only company building that office in Center City, Philadelphia. I am happy to speak out in favor of this project for many reasons. Before the pandemic, Center City, Philadelphia was on a roll, and then everything went backwards. Now we have office buildings struggling, we have hotels hurting because of a drop in business, travel and meetings. Retailers, restaurants are hurting and closing, and public transportation is suffering also because of a lack of business activity in Center City. This arena will be the newest, most high tech, best fan experience in the world when it opens. It can act as a catalyst to encourage businesses to consider moving and keeping their businesses in town, and will encourage more people to want to live in town, because we have such a great, walkable city. This arena will also be another amenity for people to want to use our hotels and especially help SEPTA and PATCO. This arena will act as a catalyst to get other developments started in the area. I mentioned earlier all the developments that we have done around this area, but I didn't mention the properties that we have been trying to develop directly nearest to The Gallery Fashion District for 30 years and failed to develop -- to develop them. This is because Market East has struggled for all that time, but having a brand new Madison Square Garden, best tech fan experience facility will get this town cooking like the other parts of Center City have already experienced growth. Lastly, I can assure you that the parking and traffic during construction and after the arena will not be a concern. First of all, we have inventoried 40 parking facilities in that area, and 85% of those parking spaces of the 14,000 spaces within a six-block walk are available at six o'clock. We have done the survey also during The Flower Show and the car shows, and there is adequate spaces to handle this arena. Secondly, the technology exists today to disperse those parkers; the season ticket holders and prepaid parkers to 8-10 parking facilities from 7th Street to Broad Street. And you could give the option for the parking facilities that are closest to the homes of where the people are coming. So the traffic, actually, will be easier to handle in Center City than it is at the sports complex now. The last thing about parking is that you never want to oversell these 8-10 parking facilities. So those facilities can still handle the hotel business, the reading terminal market business, whatever businesses that they are currently serving. This will be a wonderful opportunity for the businesses in Philadelphia. Bill Rouse told my father when he was building the Kimmel Center. My father asked him -- okay, sorry. My father asked him, "Why are you only building a hundred spaces underneath the Kimmel Center?
" That is what a city does, and that's how it benefits from these arenas. So to conclude, this city needs this arena, we deserve to have the best arena in the world, in the Center City, and as another amenity to attract the businesses and help to keep all these businesses that we have here. If, God forbid, we lose this opportunity, and a business that exists in Philadelphia now wants to invest a billion-and-a-half dollars and expand into the city, and we lose that opportunity, what does that say to the rest of the business community in the country about the business environment in Philadelphia? Please make a good deal that does enough to help the neighborhood, communities, but also propels our city forward. Thank you.
Next. PUBLIC SPEAKER MERLINI: Good afternoon, members of the City Council. My name is Mark Merlini. I'm the managing partner of Brickstone Realty, a real estate development company in the city. Over the past 38 years, we have completed over 4.3 million square feet of office retail and multi- family development in Market East. Although we are developers, we are preservationists at heart, as demonstrated by our resurrection of the Lits building in '87 into an office and retail complex. We converted City Hall Annex into a 500 room Marriott courtyard, and we restored the Wanamaker building, which is 1.9 million square feet into office retail and three levels of parking below grade. Lits and City Hall Annex had been vacant for many years prior to our restorations. We won two National Trust honor awards conferred by the National Trust for Historic Preservation for the Lits Building and Wanamaker building. Our recent preservation award-winning projects include the Steele Building at 11th and Ludlow, Bombs Building at 106 South 11th Street, and the Hale Building at Juniper and Chester Streets, totaling almost 3.3 million square feet of historic preservation in Market East. We are real estate developers, we're preservationists, and yes, we're our citizens who are deeply concerned about Market East. We opened the Lits building in May of '87. I've walked Market Street East everyday since then. I have watched the demise of Market Street with the closure of Strawbridges, the Clover Store, Strawbridge's Corporate headquarters, JCPenney, and The Gallery replaced with the failed Fashion District. We lost three major retailers recently: Ross Dress For Less, Target, and PetSmart at -- those stores were in the Chester Street, Carter River and Collins Project. Five Below's corporate headquarters with over 500 employees have been trying to get their employees back into the office. The biggest pushback is safety. They're working with the Philadelphia Police Department to hire off duty officers to be present at the corner of 8th and Market from 3:30 to 6:30 in the evening. Westchester University Center City campus is located in the Lits building. They have security officers to escort students after their evening classes to parking locations and transit stops. Pre pandemic, our retail was 96% occupied. It's currently 26%. After 6:00 p.m., Market Street East is empty except for panhandlers and homeless. When our tenants leave their offices on empty streets, they do not feel safe and will not come to work. Wanamaker's offices are over 55% vacant. When those office leases expire, Market East will not be on their radar screens unless something dramatically changes. The City of Philadelphia may not be on their radar screens as well. Our adjacent neighborhoods should be more concerned about getting people to Market East rather than keeping them from Market East. If we don't get people to Market East, it'll be far more detrimental to those neighborhoods. People in the street provide a veil of safety. After working for nearly four decades to improve Market East, I can attest that this -- that we need this arena. Most importantly, we need the people that the events at the arena will bring to Market Street. I remember being out with friends for dinner the night of the presidential debate that took place at the Constitution Center, when my wife and I returned to 8th and Market around nine o'clock, Market Street was filled with people providing an incredibly energizing and safe feeling. The arena is the -- only the beginning. Its opening is six years out, and there are many other improvements from City Hall to Independence Mall that must take place on Market Street. We have an arena to be the impetus to get this done. Please vote "yes" to the arena. Thank you.
State your name and begin, please. PUBLIC SPEAKER KILLINGER: Sure. Good afternoon. My name is Daniel Killinger. I'm the President of National Real Estate Development. We are an independent operating subsidiary of the National Electrical Benefits Fund, a pension fund plan that provides retirement benefits to the International Brotherhood of Electrical Workers and the National Electrical Contractors Association. We are the developers of East Market, a nearly 2 million square foot development catty corner from the proposed site of the new arena between 11th and 12th Market and Chestnut Streets, in the east -- along East Market corridor. Sure. Since launching East Market in 2014, our vision was to create a project big enough to be a catalyst for future growth along Market Street. We envisioned it to be a bridge connecting the Liberty Bell, the -- the first piece as a bridge to connect the Liberty Bell to City Hall, the Convention Center to Jefferson, and Midtown Village to Chinatown. Ten years later in over a billion dollars invested, we've realized our -- we've revitalized this 4 acre site in -- along Market Street with two residential towers, about 100,000 square feet of retail, a new hotel, and a 200,000-square foot office building. This was capped off recently by the opening of our tremendous partnership with Jefferson this year when we delivered the Jefferson's Health Honickman Center on 11th and Chestnut Street. This 10-year over billion dollar investment was in our minds the first step. The first piece that would hopefully catalyze Market Street East of City Hall. Market Street East of City Hall deserves to be a world class boulevard. This city has been envisioned along Market -- has been organized around Market Street and Broad Street since its inception. It has the potential to link all of the neighborhoods surrounding it. As I mentioned, which was the original vision of East Market, there is an opportunity to -- with our investment, with Parkway's investment, with Brickstone's investment, with Jefferson's investment, to really be the catalyst and really string together a series of developments along Market Street to bring it to its potential glory. If designed carefully and thoughtfully, which I know the Sixers have in their vision of a truly state-of-the-art arena, 76 Place can not only help connect neighborhoods, but it can also be a potential beacon for public transportation, a true center for Jefferson Station, which now you need to access off of Filbert Street or off of 11th or 10th or 11th Street, a really opportunity to celebrate public transportation in Center City. It can create a tremendous amount of jobs, that has been communicated to this panel over the past few weeks and contribute to the vibrancy, safety, and security of Market Street. We are excited to see Market Street vision fulfilled and support the future growth of the arena. Thank you.
Good afternoon. I want to start off by thanking the committee of the whole for the opportunity to testify today. When I wrote my testimony, I've been following the hearings very closely in the news. I tried to keep this brief and specific to the hotel industry. My name is Ed Grose. I am the executive director of the Greater Philadelphia Hotel Association. GPHA serves the interest of over 100 hotels, including all Center City properties, and we also represent 160 allied members who are companies who do business with hotels throughout the Delaware Valley. Our members employ 14,000 residents, and we have over 38,000 guest rooms. Hotels generate over $143.4 million annually in tax revenue for the Commonwealth and city through real estate, wage, liquor, use, and occupancy and amusement taxes. Philadelphia's portion of these taxes amounts to $78.1 million a year. I am here today to support the 76ers Arena Project. We are fortunate to have a private investor who is willing to put up $1.3 billion into an area of Center City that need new development. Many hotels that are located around where we sit today will oftentimes recommend a guest who want to visit our historic assets, such as the Liberty Bell, Independence Hall to either use Uber or a taxi cab driver to spare them of the unsavory area that currently surrounds Market East. I think we're off to a great start with the recent developments that have taken place a few blocks from here next to the Loews Hotel, the Canopy -- the Canopy by Hilton. We're off to a very good start. Now, we need to finish the job. I have -- I have seen 8th and Market sit empty for 30 years when Disney Quest pulled out. When that happened in, I think 1994, we all assumed that area would be developed. Today, it's -- it's a surface lot. We deserve better. We deserve better as a city for our residents, for our visitors, and for the overall, general feel of Center City. So with that, it also -- I think the way we see this arena, which is within walking distance of the majority of our 14,500 hotel rooms in Center City, it's another entertainment option for our guests. It's a also -- it could also be an option for a large event, such as when we hosted the DNC in 2016. They could use that arena and it would be closer to the hotel rooms that would surround the area. So for those reasons, we, as an association, support the arena.
Good afternoon. My name is Paul Levy. I'm Chair of the Board of the Center City District. Council President, members of Council, thank you very much for this opportunity to comment on the proposed 76ers arena. I want to start at the outset to say that the Center City District has no statutory authority to be in favor or opposed to any development that may be proposed within the boundaries of the CCD, nor do we have approval rights over any real estate projects within the CCD. That is the responsibility of this City Council and this mayor. Further, the CCD is the business improvement district that provides services to all properties within the boundaries of our district, and is not a registered community organization authorized to comment in favor or against proposed developments. But I am often asked to comment on how a proposed project, if approved, could impact the business and pedestrian vitality, the safety and the assessed value of the balance of the CCD, and how the city and the developer might enhance its strengths and reduce any inverse -- adverse impacts on the surrounding area. Let me start by saying, as others have, that Market Street East from 6th to City Hall, ought to be the prime hospitality corridor in the city linking Independence Mall, the Convention Center, Convention hotels to City Hall, the Parkway, and the Avenue of the Arts. And we need to be working now to get this street ready for 2026. But having led the CCD for more than 30 years, and having worked with many developers and five mayoral administrations on a range of projects, I am deeply disappointed and concerned about the current state of Market East. Let me list some liabilities and significant gaps in the fabric of the pedestrian experience. Echoing something Ed just said, the south side of the 800 block of Market Street has been a surface parking lot since Gimbels was demolished to move into The Gallery in 1977. The Heirloom Market at 801 Market Street just announced its closing for lack of customers at the same time as new supermarkets 5 have opened elsewhere in Center City 6 since 2000, bringing our total 7 number to 25. The rest of Center 8 City is thriving, a market cannot 9 make it on Market East. Much of the 10 retail on the south side of, in 11 fact, all of the retail on the south 12 side of the 9th and 10th block of 13 Market East is currently boarded up. 14 The Marriott Hotel does 15 not want to open their doors on 16 Market Street for safety and public 17 behavior reasons. The northwest 18 corner of 13th and Market has been a surface parking lot since 1982. The Wanamaker Building right next to us here has been taken back by its lender and the fate of the Macy's department store is very uncertain. Such is the state of our prime hospitality corridor. Our successful avenues in Center City are not single use streets, but ones that mix offices, hotels, apartments with cultural and entertainment venues. Adding a sports venue on this street with 18,500 seats that can also accommodate concerts, conventions, and religious gatherings at least 150 evenings a year can have the same positive impact as The Flower Show, auto show and boat show that draws as many as 25,000 people to the same area, causing them, as Rob said, to walk past other retail restaurants and occupy hotel rooms. Obviously, traffic congestion is a real issue that needs to be addressed through effective parking management, as Rob indicated, and by strong promotion of SEPTA and PATCO. So too -- so, too, there will be a need for additional cleaning and public safety surfaces. Even when there are no 4 games or concerts, it is my understanding that the ground floor of the arena will have retail and food establishments that will be open to the public 365 days a year. Residents and visitors will come to buy sports gear even when there are no games, but also to buy food and clothing just as they do in other portions of the Fashion District.
Even more through strong graphics and signage, SEPTA should be and can be given a prominent signer gateway at 10th and Market. It is invisible now, and we need to signify it there at 10th and Market Street. 3 billion arena, also have site control and plans for building residential towers across the street on the vacant 10, 100 block, one, where there are now only one-story structures. It would be very helpful to do that sooner rather than what was the proposed tower, which would not have been able to be built on top of the arena until 2031. So we have the opportunity for two residential towers immediately across the street with the same pattern and success that national enjoyed. Would somebody with my hair color want to live across the street from the arena? Definitely not. But for young singles, this will be the place to be and live with entertainment. Chinatown needs to be protected. We can learn from San Francisco that prevented speculation when their adjacent office district was booming in the 1980s. They placed height limits over Chinatown and introduced historic preservation controls. And it is one and remains the most thriving Chinatown nationally. Many other economic development programs have been proposed by others, and as I suggest we need a strong parking management. I will end here. Finally, this project should not be looked at in isolation or thought of as a one-off. A year ago, CCD released a plan for the enhancement of Market East, which can be found on our website. We strongly recommend that if you decide to approve this project, the city should develop a master plan for improvements for the entire hospitality card or from Independence Hall to City Hall, so new additional development can fill in the remaining gaps. Could there be many positive benefits if a new Sixers Arena were to be built in South Philadelphia? Absolutely. But that is my -- not my decision to make. I only want to offer thoughts on what else could happen and should happen if you decide to place it on Market East in CCD. Thank you.
Thank you. The Chair -- the Chair recognizes Councilmember Nina Ahmad.
Thank you Council President. I have a question for the panel, but particularly for the person from the Pension Fund. As you've heard, I don't know, and I heard you're all following the testimony carefully. You heard about the SEPTA issue, that there is really -- SEPTA doesn't have the ability to do anything about all this additional work that will be needed in order for this to be a successful project. Particularly, because traffic is one of the biggest concerns of everybody who lives in and or around this proposed project. So I just wonder if people, you know, organization and entities who have resources are willing to participate in looking at how to make these -- how to make SEPTA viable in terms of doing this project. Because remember, this whole project hinges on 40% of the people coming to the arena, taking the train -- taking public transport. And if you don't have it, don't have the ability to give it, then it doesn't work. So I just wondered if there's, you know, private equity here that could be participants in this or how we are going to elevate -- alleviate this issue around SEPTA because without that, I don't see how this is happening. Thank you. PUBLIC SPEAKER KILLINGER: So I would agree that SEPTA is key to the successful -- the success of SEPTA is key to this proposal, and it's a rare opportunity to really push this city onto the public transportation system. Whether or not our pension fund that is a decision that is made many, many layers beyond my capability and authority.
So I realize that, that's why I am putting it out in the public comment to say that everybody needs to take a piece of this, because they're all going to benefit from this, right? So those who are going to be, you know, getting the upside of this is who I'm asking, what their role is going to be? The city -- one of the reasons why the city is so insistent on this, from the Mayor's perspective, we have a fiscal cliff coming. We need to have revenue. We understand that we don't have alternatives that are properly organized or anything that resembles this offer. So if everybody's going to make so much on the plus side, what is their skin in the game is what I'm really asking. How can we change that? I mean, the city has nothing more to give, right? So, I've also asked for more documents to actually see that the city does not -- is not left holding the bag in certain situations. But I want to know everybody who's going to benefit from this, because that's what I'm hearing. What is your skin in the game from all of you, not just you, everybody who has told us this is a really great thing and we can't really proceed unless these safeguards are in place. So this is a -- I'm not asking you to answer that question now, I'm just putting this out there that having skin in the game is really important and I would love to see where all -- where that -- what that looks like in order for things to proceed. PUBLIC SPEAKER KILLINGER: Yeah. I mean, I would just argue that we have a billion dollars invested, which would be our, you know, current skin in the game.
Thank you very much. The Chair recognizes Councilmember Phillips.
It gets -- I just want to say thank you so much for coming out today. Your reflections have been helpful in this discussion, particularly, Mr. Zuritsky, thank you so much for -- because a lot of people have been really concerned about parking and the idea of walking across Steak 48, that actually is good for -- for business and so forth, which is not too far from the arena, so I thought that was great. But I did have a quick question, for Paul. Paul, you've been doing this for a long time. You have been trying to build Market East in a sustainable way for a long time. Can you just take Philadelphia through the history of development projects that have been proposed for the Fashion District that have -- were almost successful, were successful, just ideas that just never came into fruition and were on a, you know, were on the verge of potentially having an idea come finally, coming to fruition. But what have you seen, over the years, has been proposed in that area and why -- and why -- why they haven't been successful? Why didn't they go through?
You know, the original 1970s vision for Market East was almost a 100% retail district. So we built The Gallery; first, Gallery 1 and then built Gallery 2. There were only a handful of office buildings on the street and almost all one-story retail. I think we made a very important strategic decision in the 80s when we built the Convention Center, because that suddenly made it possible for the Loews to become -- or actually what was PSFS, to become the Loews Hotel, for the new Marriott to be built. So we began to diversify the street. There was an attempt, as some people may remember, to put a casino at 8th and Market Street. That went no place. Prior to that, there was a plan to put Disney Quest. That went no place, as well. So those are two failed developments. What I think is really important about the project that Dan Kellinger described, is for the first time someone brought not only residential and two really high quality residential towers, but ground floor retail and now mixed with a medical, they're moving the pattern where we need to be moving towards mixed use. We can't rely on just office buildings in the office district, we need to mix in hotel and residential. We can have the former vision of retail only like it was some suburban shopping center. So what I think has been positive on Market East is the mix of retail and hotel and residential, but there are still a lot of real estate there. And so I see the arena as bringing, you know, not just basketball, but conventions can be in that space, concerts can be in that space, but then they have already proposed to do two residential towers as across the street. The more we do a live, work, play downtown, the more successful we will be. The simple answer is single use office districts -- single use retail districts are a formula for failure. We need to diversify. More mixed use is the key to the future.
Thank you, Paul. Just -- and just a quick question for Rob. Rob, if you -- if you don't mind, can you talk about your corporation and its plans to build more parking in Center City as a result of this? Do you have any plans for that? PUBLIC SPEAKER ZURITSKY: No. 4
Not yet. Okay. PUBLIC SPEAKER ZURITSKY: Can you hear me?
Okay. PUBLIC SPEAKER ZURITSKY: No. I don't think any more parking is -- in that neighborhood there is adequate parking. There is an --
Thank you. PUBLIC SPEAKER ZURITSKY: -- abundance of parking. Our developments -- you know, we had a couple developments. One in Chinatown was going to be residential with some retail and a little bit of parking. That's really what I think it's going to be is residential. That's what we were focused on, is all residential in that neighborhood.
Thank you. Thank you. Thank you everyone on the panel. Thank you. Thank you, Council President.
Thank you very much. The chair recognized Councilmember Jim Harrity.
Thank you, Council President. Let's try this again. I got two questions. One for Ed Grose and one for Mr. Zuritsky. Ed, can you tell us how much business the 76ers arena will stir up in the hotel industry in Philadelphia and how much tax revenue those hotels will --
I don't know an accurate answer to that. I'm looking, that's why I geared my testimony towards what it will do for the city. I do know that for every $100 dollars spent on a hotel room, there's about 17% of that. So $17 out of every $100 dollars in room rate comes back to the city in some way. That's not even -- and that's not even in considering the money spent once the person leaves the hotel room.
And it's also going back to, I could easily see another political convention occupying the space. I could see -- I did not think of religious groups, but there's all kinds of other uses that could be used that I have no 19 way of knowing what that'll amount to in the future.
Okay. And Mr. Zuritsky, what type of impact will this project have on parking industry, particularly in the area of Chinatown and the surrounding areas? And how much revenue do you estimate will come from this for parking industry? PUBLIC SPEAKER ZURITSKY: That's an interesting question. I -- the amount of -- this one?
Speak into the mic. PUBLIC SPEAKER ZURITSKY: Oh, hello. I don't think that works. Hello? I'm pretty loud. I'm pretty loud though. Okay. Try it again. PUBLIC SPEAKER ZURITSKY: I don't think there's going to be -- there's already -- they're already parking -- there's already parking business that's out in -- and this is going to be a smaller arena. So there's about 5,000 fewer, I think seats. So I agree with the --with their estimates that public transportation will be boosted from this dramatically. I feel it's so easy to get in and out. And I think their estimates of 3000 to 3,500 cars coming to -- I think that makes sense too. So it's not going to change the -- it's going to maybe reduce the demand because there's fewer seats.
Right. PUBLIC SPEAKER ZURITSKY: I would -- I would say Paul, when the convention center first opened and the car show was really cooking, we would do 60,000 people on a Saturday. Now, that was spread out over a, you know, 10-hour period. But this area of town has a dramatic amount of parking and most of it is available, especially in the evenings when most of the, you know, when most of the events are. So I think this is a very easy thing to manage and the technology will enable us to disperse this. And I think this will be very good for the surrounding businesses by doing it.
Yeah. So, I mean, it's no secret that the parking lot people have been taking some hits over the last couple years. Do you think this will help them out a little bit? The added people coming in there? PUBLIC SPEAKER ZURITSKY: Absolutely. Having another generator, the Convention Center is a tremendous draw for the parking industry, and we've, you know, handled that successfully for 21 years, as long as the Convention 22 Center's been open. This is much 23 smaller than the Convention Center 24 and this is very manageable. It will be good for -- yes, the parking industry absolutely benefits from this.
Thank you. I -- no more questions. Thank you, Council President.
Thank you. The chair acknowledges councilmember Rue Landau.
Thank you, Council President. My question is for Dan and Paul, if possible. Dan, I think I've met you before and told you that I love the development that you did on 11th and 12th whatever that street was, at alley. I spent a lot of my professional career going to municipal court down there, and it was not a pretty site. So I love what you did. I love the hotel. I think it's been transformative for the area, but my question to you too, it is beautiful, it is vibrant, it is full, there are people, why has it not triggered more change and more development both on Chestnut Street, just south of it, and also potentially on Market Street? I've spent a lot of time on Market Street as well. I've -- personally, I'm not happy that Macy's doesn't open their front door. I'd love to go through their front door. I'd love for any of those businesses or somebody else to have been taking a chance on some of those businesses on Market Street. And I think it does take a couple of courageous people and or a development like yours to be an anchor. I'm curious as to why you think that didn't spur more? PUBLIC SPEAKER KILLINGER: Yeah, I think it's a good question. I think you would have to look at it through the different uses in our -- we have residential, we have hotel, we have office. I do think that the residential on Market Street, although our front doors aren't on Market Street, they're on Ludlow Street, which is the alley behind, has been a bit of a catalyst for more residential, primarily between our project and sort of 13th and Sansom. There's three or four new residential buildings along 12th Street and along Walnut Street in that area. So I would -- do think that has inspired residential. I think that the retail's a challenge. We did have some momentum prior to the pandemic, and when the Fashion District opened, it was starting to build. But since the pandemic we've closed, we've lost Wawa, we've lost District Taco.
I know. PUBLIC SPEAKER KILLINGER: We've lost. So like, it's a struggle. And now we're trying to fill our remaining spaces, and that's the one piece that's been slow for us. The hotel has stabilized and been somewhat successful but it could certainly use another a sort of shot in the arm from like three or four different investments along Market Street for sure.
Thank you. PUBLIC SPEAKER LEVY: Dan, when did you complete the second tower? PUBLIC SPEAKER KILLINGER: 2018 and '19 were the first two residential buildings. And about --
Right. And they complete the second -- PUBLIC SPEAKER KILLINGER: -- 95% full.
Right. So, to partially answer your question, councilwoman, the success of those two towers before PREIT lost control of the Fashion District, they bought the properties across the street, which are third of the East. They were planning to do two residential towers there. That momentum was happening, and then we all know what happened with the pandemic. It was a huge setback. We have rebounded from that in terms of job growth and the plans that the Sixers have announced for residential towers on the south side --
-- are simply picking up on what PREIT was going to do when they owned them. So I think that momentum was building, I think certainly Mark can speak to the number of properties they were trying to acquire on Chestnut Street. It was beginning to ripple out. We had this huge disruption that we're recovering from, and I think this can get that process going again.
That's helpful. So you're saying that there was a plan to start reaching down to Chestnut Street, but the pandemic was the barrier to getting that done?
Well, let me -- let me just give Dan and his team enormous credit for what they did, because so much of the criticism of the Fashion District and other projects is that they created a wall and a corridor. And what National did is create a set of walkways through to connect Market Street to Chestnut Street. And that prompted, Brickstone acquired more properties on that street, and it was beginning to filter out. I think there's a chance still, depending on what the parking authority does with 10th and Ludlow, that if those two towers go forward on the block, that PREIT had controlled, you could get that connectivity. And my read of the Sixers plan is a continuous walkway from Market Street through to Filbert and across all the way to Arch creating within the building a corridor. Overcoming the North South barriers is as important and objective as reestablishing the East-West connection. That should be our broad development principles for this street.