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.
Thank you. The chair recognizes Councilmember Jamie Gauthier.
Thank you, Council President. Good afternoon to all of you. Thank you for your testimony and for your work in the city. My question is for Paul. I was intrigued to hear you talk about the visioning that you've done for Market East, and I was also very pleased to hear you make a strong statement that we have to protect Chinatown and to bring up some best practices from San Francisco.
Given that, I wanted to ask, what do you think about the wisdom of the city's plan strategy to do a master plan after the approval of this or after the desired approval of this project, given how large the project is, and given that the project does pose the risk of displacement as noted in the city's own impact study? And then secondly, what, since you did bring up that we need to protect Chinatown, if you've had an opportunity to look at the community benefits agreement, what's your opinion on the CBA and its effectiveness in mitigating some of the less desirable impacts on the surrounding neighborhoods?
No, no, no. 20 That's fair. That's perfect. Number one, obviously Chinatown is an absolutely unique destination place of resonance and place of business in this city that absolutely needs to be preserved and enhanced. And as you may know, we're working on a next phase of the rail park and the stitch can expend. That needs to be knitted back together. So we need to create more room for Chinatown to grow. I mean, there are lots of opportunities along Vine Street for more development there, I think. So one is, we need to get out of this, either or thinking. The city can be a place of many, many successful nodes. And I absolutely think we can do a lot to preserve and enhance Chinatown. I don't want to be presumptuous, but we released a plan a year ago for Market East, which is a redevelopment plan for the street and we did it in advance of these hearings. Yes, the city needs to do something official, but I urge you to look at that. I'll give you a copy of our testimony with a link to our website because it urges this thinking of comprehensive east, west, north, south thinking, which I don't think anybody in the city will disagree with.
But I don't think -- I don't think we're behind the ball. I think we -- what -- we should be moving now and frankly, we need to be doing stuff yesterday to be ready for 2026. There's things that need to happen right now.
Absolutely. I think my question is, if I'm understanding it correctly, the administration has said that they, you know, have included some funding in the -- in the CBA or that the Sixers will include funding in the CBA to see a master planning effort for Market East and Chinatown. I agree with you that there can -- we should be thinking of downtown comprehensively. There can be many successful nodes in the city. But given, you know, your experience with planning and urban design, I think I'm asking you with a project of this scale that does pose displacement risk. Do you think it's wise to say we're going to go forward with the project before we go forward with the planning?
As I said, I think we've outlined a preliminary planning framework. I think the basics are there. What we really need are the mechanisms. And by that I mean what are the additional sources of revenue to help cause Market East to continue to improve. Council President, as you and I were talking beforehand, what are the mechanisms for enhancing Chinatown? We need zoning, we need financing, mechanism. The vision is the easy part, frankly. And I don't mean to say we don't have need a lot of community engagement. We need a knit to city back together and fill in these gaps. But I think we need to be focusing on how do we do it? What are the financing mechanisms? That's where I would focus.
Would you answer some of those questions? PUBLIC SPEAKER ZURITSKY: Could I answer?
Sure. PUBLIC SPEAKER ZURITSKY: Please? So, you know, we -- our company has done development in Chinatown and partnered with Chinatown Development Corporation to redevelop 9th and Vine to Race, that block. And like, as I -- as I mentioned in our testimony, we have a lot of inventory to do affordable housing for Chinatown. And -- so I don't -- the fact that there's seven years until this is going to actually going to be opened, I think there is time over the next year or two to work on things that Chinatown needs and make progress and build some things that they -- that they really want. I think now is -- I don't -- I don't think it's too late to start the planning process and working on these projects.
Thank you. And then my second question, since Paul brought up San Francisco and the need to protect Chinatown, I did want to hear your opinion if you looked at it on the CBA and do you think that it will be an effective tool towards that end based on what you've seen? PUBLIC SPEAKER KILLINGER: I think that was you.
Look, I am not here to comment on business relationships between the city and Chinatown on the CBA. Okay?
I don't think I'm asking you to talk about the relationship --
I thought you asked me to comment. Maybe misunderstood your question.
Oh, I don't think -- I'm not asking for your opinion between -- on the relationship between the city and the Sixers. I'm asking if you've looked at the CBA and if you think that it could be an effective tool towards anti-displacement.
No. But to me, the bigger tool, in my judgment, I'm not in any way -- I have not read the CBA. I want to be clear on that. But what I learned in looking at San Francisco is zoning is the most powerful tool we have. If the fear is that by building an arena on Market East, that it will create all this speculative buying in Chinatown and destruction and displacement, if you simply historically certify those properties and put current height controls, you completely remove the incentive for any speculative buying. That's what protected Chinatown in San Francisco. There are many other tools necessary. I just want to urge the look at what the zoning powers of this city are, which I think is the most powerful tool to protect Chinatown as it is today. And as Rob said, the number of surface parking lots that could become housing that have been sitting vacant for a long time along Vine Street, there are huge opportunities for Chinatown to grow.
Thank you very much. This is a point of information. Councilman Squilla, the author of the legislation, I think you introduced several different bills regarding to the preservation of Chinatown regarding zoning. Can you just clarify for the record?
Thank you, Mr. President. Yes. And I want to thank Paul also because I did reach out to Paul when we were looking at some of our legislation for our Chinatown cultural overlay. And we looked at some of the things that Paul had mentioned in San Francisco and some other ideas throughout the country of protecting cultural hub in those communities. So the overlay that we have created, as we said earlier in one of the testimonies, was to an inclusionary zoning, a height limit of 65 feet. And a mass and bulking ordinance for controlling of small businesses, no more than 3,000 square feet, that would require a variance. And the third was the ability to limit some of the uses as some of the adult uses nightclubs, so forth and so on. So people don't come and speculate and put those type of businesses in a cultural Chinatown that would normally not have it. The Chinatown does have restaurants and bars in there already. But the last thing was that we are still working on that legislation is franchises where the city is looking at the ability to limit if you have five or more franchises that would also trigger a variance. That is something, too, that we are also looking at to sustain the cultural makeup of Chinatown where you can't have -- I don't want to name a franchise because if I do it, they'll say, why'd you pick them out? But some franchises that, you know, that comes in here and they have at least five, that would automatically trigger variance, would send them to the RCO and to the zoning board and through Council for support. So some of those things that we have been talking to and working with Chinatown to come up with are in our cultural overlay. Also, mentioned is the TIF that we're still working on, which would -- if there is an increase in value in assessments, if the values of properties are going to be increased because of this development, and now the properties of value is going to be more, the businesses are -- more businesses want to come in and take over for small businesses. The TIF would then be able to capture that increase, but then be able to use it in that community to offset the increase assessed values of those properties. So that is something else that we are still working on with the law department and the City of Philadelphia and the Chinatown community who seems very much supportive of something like that. And so they were some of the things that we put in as far as zoning is concerned so far in legislation. And I believe too, this overlay, and the reason why it's not part of these conversations here is because I believe that Chinatown needs to be protected anyway, and that will be on its own track, in case this doesn't move forward, that will still be put in place for future protections.
Chair recognizes Councilmember Jamie Gauthier for a very brief follow up.
Very brief, I promise. I just wanted to make it crystal clear that my questions were not a knock on Councilmember Squilla's efforts. I have great admiration for how much work he's been putting in on this. It was more asking for an opinion on the master -- sequencing of the master planning and the CBA.
Thank you very much, Councilmember Jamie Gauthier. Councilmember Jeffrey Young.
Thank you, Mr. President. And good afternoon everyone. Just a question for anyone on the panel. For me -- press a comment first, I think it's clear that a mixed use option along East Market is the best, you know, option for our city. It's been clear that I have a keen interest in what happens on Market Street in our commercial corridors. I've held hearings on it. It is something that's very important to me to make sure that our city continues to grow. But given that this particular proposal could cause -- no, that could cause, I think it will cause displacement and other things. Are there other viable development opportunities at this site that could produce new revenue for the city with more everyday use that puts more eyes on the streets to make our streets safer, to put more lighting on the streets, et cetera? Like has there been -- I guess it's probably more for Center City District than anyone else, but has there been any other options presented that would -- that would still be able to, you know, that would still be a new development that would still be built union, right, and still have the opportunity, so, to provide a new revenue for the city?
Not an easy question to answer, but I mean, let's just think about the upper floors of the Fashion District. We all used to think that movie theaters was the guaranteed source of driving business and having people come in. How many people are watching movies here and all sorts of digital technology? The movie theater industry is contracting. That would've been an easy answer. Let's have movie theaters upstairs. We did that and go to most movie theaters today and are not full unless it's something gigantic. You go -- you go, okay, well, my wife's a movie critic, she drags me. I have to go. But --
Oh, yeah. No. 23 And look, technology has changed, right? And it's like, how many of us buy the newspaper for news any longer? So we have tried many things. Technology has really evolved. Sports is one of those things like conventions that brings people in person together, right? I think it's a very powerful use to bring people together. We tried gaming on the street; that did not succeed, right? We tried Disney. We've had a lot of efforts on the street. But to me the mixture of residential, the mixture of office, the mixture of hotels, sports is just one use. It's not a panacea. It's not the solution to this street, strengthening Chinatown strengthening hotels, strengthening residential. We're doing that elsewhere in Center City, right? We're doing that very well. We're a leader in converting vacant office buildings to residential and hotels. So it's all of the above. There's not one solution to what we need to do today.
And thank you for that. And again, given that you said this, it's not one solution. And I think that for us as a city, we've only been given one solution to look at. And I think that is what my concern is. I want to see what other options are out there to produce, you know, new revenue for the city. Not, you know, this and I'm not -- I want to say this. How can I say this? I'm not anti-arena at this site. I want to make sure that whatever happens here, if it does happen, is good for the city, right? It's in the best interest of the city. And if there are other alternatives that have less of an impact, right, on communities but still are able to produce new revenue, produce new jobs, I think that is what we should be taking a look at, as well, alongside whatever else proposals have been there. But I think just having this put in front of us without a plan for the entire East Market area, I think we're putting -- what is it? The cart before the horse. I think that's what we're doing here. Thank you, Mr. President.
Thank you very much. There are no other questions and comments from members of the committee. I want to thank all of you for taking time and joining us today and thank you for your testimony. Thank you very much. Let's keep rocking and rolling. Will the clerk please call the next panel, please?
Our next panel, could Mark Merlini. Dan Killinger -- oh, no, I'm sorry.
Jeremy Wolin and Eli Storch. Please join us up at these, please. Just please state your name for the record and you can begin.
Hello, Council President Johnson, Majority Leader Gilmore Richardson and the rest of the City Council. My name is Munira Edens, and I'm an organizer with the Philly Black Worker Project. We are a worker center that fights for marginalized Black workers. I'm not only representing the thousands of Black workers here in the city, but also as part of Black Philly for Chinatown. I was born and raised here in the city and have lived in many parts, mostly North Philly and I know that every job is not a good job. Many temp workers had their labor exploited behind bars, then come home where they're told to take whatever kinds of jobs they can get and get funneled into low quality temporary jobs with no benefits and no upward mobility facing further exploitation. And who benefits from this exploitation? Wealthy corporations and billionaires like the ones behind the 76ers place. These billionaires have had the city unaffordable and also create and maintain the low wage economy that keeps Black workers poor. Supporters of the proposed 76 arena and Center City keep praising the potential employment opportunities of the project. The union has already told you all that concession workers are less than enthusiastic about new jobs when they're still fighting for living wages at their current ones. And we have members who have been denied work at these same stadiums because of their criminal backgrounds and are only allowed to work there through a temp agency. We keep being presented with these job numbers like we should take whatever we can get because a job is a job. But if we are serious about issues of poverty in our Black communities, then we need to seriously interrogate the quality of the jobs being proposed to us. Are these jobs enough to take care of my family? Do I need two or more jobs to supplement my income because this job isn't paying enough? These are real questions that our members are constantly wrestling with. And the bigger question is, based on a 76ers job creation promises, will there be job projections even turn into job for Philadelphians? They didn't in Camden. They promised hundreds of jobs to the residents of Camden and only produced 11. The reality is the majority of Black workers in the city are not entrepreneurs. And while we want to see more Black entrepreneurs to be able to sustain their families through entrepreneurial paths, we must also deal with the truth that is in front of us. 4% of businesses in Philadelphia are Black owned. This means the majority of Black workers in this city are employees, and many of them are non-union and not receiving sustainable wages and are often -- and often do not receive benefits at all. There should be many paths to prosperity for all black workers who are not entrepreneurs, but work just as hard. This deal does not do that. We heard councilmember Gilmore Richardson ask about the wealth generation and the ownership stake that Black entrepreneurs will have in this project. The answer was zero. So if the goal is wealth creation for black communities and the generations to come, it is unclear how this project supports us as a city and closing the racial wealth gap. And this is in a city where the Black median wealth is $9,000 compared to the $160,000 for white Philadelphians. Yet here we are entertaining solutions that create no real pathway to wealth for our people. Billionaires like Josh Harris, David Adelman, and David Blitzer are not actually willing to share the pie. And the question is, will Council vote "no" on this arena? Because this strategy has not worked before and this isn't working now. People keep saying they cannot afford their basic needs and the -- and in the midst of what they're talking about to make the rich richer and keep the poor poorer. This city needs more Black community -- more and black communities deserve more. I am so sick of watching billionaires get whatever they want from this city while we -- while we are getting thrown crumbs. 25?
We -- thank you. We know what our communities need and we've told you as Council this year after year, we need fully funded worker protections. We need fully funded schools for our children. We need fully funded public transportation. The majority of our members use SEPTA to get back and forth, and it's trifling. We love our Sixers teams, but we know that we need to invest in our communities. Thank you.
Thank you. PUBLIC SPEAKER HAIRSTON: I have to go after that. Good afternoon, councilmember Johnson, other members of Council. My name is Melvin Hairston from the UC slash Peoples Townhomes and I'm an advocacy on housing. What I'm here to talk about is basically one of the biggest ongoing crisis in our city is affordable housing. And with -- and with the crisis implemented, we have to have a base structure where housing is protected. Nowhere in this agreement or this proposal is housing protected by any stretch to any of our imaginations here. We -- excuse me, there is -- the townhomes was in a place of vast resources, one of the -- one of the last and formal structures of a -- of a community that spent four decades with children, grandchildren, mothers, grandmothers, single women and children that were split apart from their communities. And I being one of those people that grew up 30 years in that community, had seen the struggles of what's being moved out. And I -- and Mr. Killinger sat here and talked about the work that he's done. But one of the words that wasn't mentioned, that he was one -- that his company was one of the first to try to purchase the Townhomes where our land stood on, where our homes stood, where our babies rested their heads. And the upsetting thing is, is that now that that land has been sold and all the housing there has been reduced to concrete and trees and asphalt, that only 20% of the land was given back to the people, the -- were given back to the city to help the people rebuild, which it went from 70 housing structures to possibly a tower of apartments. That means the community is being downsized. Our community is being downsized from living in houses all their lives to being downsized to apartments, which is squaring in the lives -- squaring in the way people are living. And it needs to be pointed out that our structure on a protected, affordable housing is non-existent. That needs to change. It needs to be something in place. It needs to be a legislation in place where our homes could be protected. Because let's look at it. The community thrives through its people. The city thrives through its people. And if people are on the streets, which is the numbers and the thousands in the city, if people are on the streets, how is 76 Place really going to help the community thrive when the community is struggling to find places to live and low wages? So how is that going to allocate to paying to get a ticket to see the Sixers? How is that -- how is any of that going to allocate itself to help the people where we -- this is supposed to be a business that -- to helping these people. You know, Council, you all members are helping the people of the city. Where does this help? Where does this help people find housing? Where does this help people try to find better jobs? They -- this doesn't -- this doesn't coexists and I mean, this is this basic knowledge right here that none of this coexist with helping the people of this city. I mean, a two -- a two to three hour sports game, how does that help the community of people that are struggling and people being displaced? And I'm fitting to see change, and the people that are sitting here are fitting to see change. And we had to start with one of the biggest ongoing crisis in the city to settle up. If we could talk about building anything -- building anything to help the economic structure, we got to help the people first, then the economy works off the people. Thank you.
Thank you. Jeremy Wolin? PUBLIC SPEAKER WOLIN: Thank you. Hi, my name is Jeremy Wolin. I'm a PhD candidate in architecture at Princeton University, and I'm here to remind you how much Philadelphia loses by green lighting an arena in the heart of Center City. First, if the developers we've just heard from have been so responsible for building Market East into the struggling street it is today, why are we taking their word for it? That just one more development will be the catalyst we need. What you also heard is that Market East is physically saturated and trying to fit an arena on a lot that's already quite small for an arena development means less work for Philadelphia's builders. NBA arenas built on bigger lots have built grand plazas and public parks. NBA arenas built in new neighborhoods have built out transit stops and lines that make a transit system stronger, not push the system like SEPTA further into a death spiral. And NBA arenas built in other cities have provided more money for building, just affordable housing alone, than the entirety of the Sixers agreement. Second, yes, mixed use is important, but it has to be smart, including a use that creates sudden bursts of 18,000 people in a single hour is incompatible to all the other attractions that makes mixed use, good mixed use. And who will pay for the team of traffic enforcement and officers that the city's traffic impact studies say are needed if we are to keep 76 Place's 18,000 spectators safe on narrow streets that the city's own design impact studies say are inadequate for the job? Who will pay for the officers needed to enforce geo-fencing to accommodate even out-of-date ride-share numbers? Who will pay for lost spending and lost wages when SEPTA's second busiest transit hub periodically closes for six years of construction? Who will pay for the business -- lost business opportunities when as the city's transit -- traffic impact study says the Sixers promised 40% target still causes gridlock throughout Center City half the time. Third, adding a project that promised to bring thousands of cars into Center City hinders every positive new advancement made to Center City for decades to come. The first advancement to suffer will be the Chinatown Stitch. The Reconnecting Communities program has already given Philadelphia millions to repair the damage the I676 imparted on Philadelphia. But all that construction work goes to waste if as the Sixers traffic study promises, thousands of suburban Sixers fans gridlock Vine Street regularly, a vote for 76 Place against is a vote against repairing the scar that separates North Philly from Center City. Now, yesterday you heard from one of my colleagues and actually independent economists that say there's no economic argument for building an arena downtown, given the vast harm an arena will impart on existing businesses. In response, the so-called community benefits agreement is an insult to your constituents stuffed with free tickets the Sixers wouldn't sell anyway, programs they should already be paying for and aid to businesses that's barely a drop in downtown rent showing that the Sixers simply don't know what it costs to do business in Center City. When Inglewood, California gets $75 million for affordable housing alone and San Franciscans get $27 million upfront for traffic transit improvements followed by $10 million for transit monitoring 30 years thereafter, the 50 million on the table now, it needs another zero before Philadelphians even give it the time of day. To conclude, the cost of building in a dense downtown are great. This is why a fully funded -- fully privately funded arena is really nothing more than a scam designed to take away Philadelphia's seat at the table. The scam lets billionaires decide on their own what they pay for and then leave the taxpayer to pay for the rest.
Building at a tiny constrained site like 10th and Market means that while other cities get grand architecture and new public amenities, Philadelphia gets a billboard covered box. And while it might not look like much, building that box in this location, in the heart of Center City, comes at great public cost. Thank you.
Good afternoon. Thank you for the opportunity to testify today and thank you for being on this panel with me. Good afternoon. My name is Eli Storch and I chair the design advocacy group, a 23-year-old nonprofit with the mission of advocating for design in Philadelphia's built environment, both in terms of quality and equity. The steering committee of the Design Advocacy Group has opposed 76 Place since 2023. And I'm here today to reaffirm that an arena cannot do what needs to be done on East Market. It cannot make the most of the opportunities presented, nor can it meet the challenges posed by the site. The design materials presented to the public show that while introducing new problems, it was our opinion then, as it remains now, that what Market East needs is an influx of 24/7 street oriented activity, which is something that the proposal for 76 Place simply does not, when it was proposed and has not, based on the limited revisions provided had achieved. Much focus has been on the number of days when an event will occur. This is significant, but so too is the fact that these events be they basketball games or concerts occur in the evening, leaving a dead in street presence facing Market Street on almost all days. It's hard to imagine that the limited interior retail space with minimal street frontage represents an upgrade on what exists presently, regardless of the amount of glazing on the overall mass of the building. Additionally, locating this proximate to the Convention Center, another massive building, that presents primarily inactive facades, is similarly problematic. Adding another single use mass, and I would consider this a single use building, to this area of the city, no matter how many digital billboards adorn it, is not a compromise worth making. Much can and should and has and will be said about the pedestrian and vehicular issues the project faces, especially in light of recent news on the State of SEPTA, the threat to Chinatown, the insufficiency of the CBA, the continued lack of clarity on the actual bounds program and details of the development proposal. I'll leave that to others. Across the street, the East Market project has already provided a successful model of the type of morning, noon, and night mixed use development, as you heard from the developer himself on the panel before us, that this is -- that is what this area requires to be successful with the mix of restaurants and retail enlivening the sidewalks including that newly reinvigorated space. So, we talked about connecting through from Market Street to Chestnut using the project's own site circulation. At 76 Place, the sacrifice of Filbert Street and the deadened rear facade along Cuthbert Street would take these blocks in the opposite direction. As the leaders of our city, we hope that you, along with the planning commission and other experts in government and the private sector, will develop and guide a comprehensive vision for Market East. That has both long-term family sustaining jobs as well as short-term construction jobs, laying the groundwork for the type of mixed use development that will thrive rather than relying on a pattern of reacting only to what is proposed. Change is no doubt needed on Market East. However, this project is not it. Thank you.
Thank you. Chair recognizes Councilmember Jamie Gauthier.
Thank you, Council President. My question is for Mel. But first, thank you to all of you for testifying. Mel, I wanted to start by saying I'm really sorry that you were displaced and that you lost your home. I think the fight for the University City Townhomes is -- it's just one that will never leave me. I agree with you that as a city, we have to do much more to protect people's housing and to end the housing crisis. And while I do think we had some wins with the Townhomes around the tenant fund and securing the piece of the property that we did for future affordable housing development, I know that it's not enough and I think that you and every single UC Townhomes resident deserve better. I wanted to ask you, as an advocate fighting against the displacement of communities of color with years in the fight, what's your opinion, if you've had a chance to look at it or hear about it, about some of the measures that are being proposed for anti-displacement as it relates to Chinatown and what would you add or what would you change?
I think more -- I think what's most important is people -- the people in -- the leaders of these communities need to be more involved with these conversations. I mean, too many of these proposals, directives, go passed the people.
The community leaders need to be a part of that so that can be discussed together on how everybody can thrive. This cannot be a one-way street. This has to go both ways and community leaders should be entered into these proposals and conversations about proposals such as this. And other proposals with housing across the city should be talked with not only between the city and the developers, but also leaders of the community. That's one guaranteed thing that needs to change for all of this to work where everybody can thrive together.
I couldn't agree with you more. Thank you so much for being here. Thank you, Council President.
No, thank you. And publicly thank you for the work that your councilwoman did going against the powers that be regarding UC Townhomes. And so I was there. I witnessed it, I watched her through the process, and although she wasn't able to, like, totally overhaul the whole process, she did stand on business on behalf of that community and give some very, very powerful interest to make sure that there was some give back and she took her to court and was sued and is still 10 times tall on behalf of your community in West Philadelphia. So, yes, I acknowledge that.
Thank you. Thank you everyone for your testimony. Thank you very much. Will the clerk please call the next panel, please?
Regina Hairston, Katherine Hicks, Mo Rushdy, Lynette Sutton, please make your way to the upfront.
Good afternoon. VICE CHAIR: If you could please state your name for the record and proceed with your testimony.
Thank you. Good afternoon. Regina A. Hairston, President, CEO for the African American Chamber of Commerce for Pennsylvania, New Jersey and Delaware. Good afternoon, Majority Leader Gilmore Richardson and members of City Council. Again, my name is Regina A. Hairston and I serve as the president and CEO of the African-American Chamber of Commerce for Pennsylvania, New Jersey and Delaware, representing the collective voice of over 200,000 Black-owned businesses in the tri-state. I am honored to address you today in support of the proposed development of 76 Place, a project that has garnered widespread endorsement across Philadelphia for its transformative potential. As the leader of an organization representing a diverse spectrum of businesses, spanning small enterprises to large firms and encompassing industries from professional services to construction, and having surveyed over 100 AACC members and conducted over six focus groups, I can confidently state that the Black business community views 76 Place as a monumental opportunity. The development of 76 Place presents an unprecedented avenue for the inclusion of growth of Black-owned businesses. This assertion is undeniable, standing unchallenged even by the project's most vocal critics. 3 billion privately financed investment by the 76ers ownership are well documented. Their commitment to diverse business inclusion and equity, evident in their comprehensive EOP is robust, measurable, and actionable. Leaders like Leslie Smallwood-Lewis of Mosaic, who recently addressed this Council, have attested to the significance of these commitments which extend to the planning, development and ongoing operations of the arena. However, history has taught us that commitments are only as valuable as the mechanisms in place to ensure the realization. Too often pledges to engage Black- owned businesses fail due to the argument that a sufficient pipeline of qualified businesses and workers does not exist. While this rationale is frequently invoked, it reflects a broader systemic challenge. Philadelphia disproportionately does have a low rate of Black businesses and entrepreneurial growth due to lack of opportunity. It is within this context that the 76ers have distinguished themselves over the past 18 months well before formal legislation -- legislative processes commenced or hearings were scheduled. The 76ers engaged proactively with the African American Chamber of Commerce to identify barriers faced by black- owned businesses and explored targeted interventions to overcome those obstacles. Importantly, they did not limit their involvement to discussions. They demonstrated tangible commitment by allocating $2 million to strengthen the AACC's ability to support businesses in season this opportunity. This proactive long-term approach sets the 76ers apart through national benchmarking and direct engagement with other franchises. I can confidently state that no other team, locally or nationally, and I have traveled to many of them, has undertaken such comprehensive pre-approval efforts to ensure the inclusion of underrepresented businesses. The 76ers proactive investment exemplifies a best in-class model for equitable development. Additionally, while the African American Chamber of Commerce's work has naturally focused on our members, the findings of our collaborative -- of our collaboration are broadly applicable. We have shared insights that benefit all small diverse businesses across Philadelphia, ensuring that the initiative's impact is inclusive. Moreover, the 76ers extended similar outreach to other diverse chambers, underscoring their intent to collaborative -- to collaborate across communities, to maximize the project's benefits. The 76er's commitments go beyond rhetoric.
Their investments in programs like Everybody Builds and their aggressive EOP reflects a comprehensive strategy to engage diverse businesses and engage their full participation in economic opportunities created by the 76 Place. In conclusion, the development of the 76 Place represents an innovative and inclusive approach to urban revitalization. Thank you for your consideration. VICE CHAIR: Thank you. Thank you very much for your testimony. We will ask that you state your name for the record, proceed with your testimony, and please be mindful of the two-minute limit. Okay. Thank you. PUBLIC SPEAKER HICKS: All right. Thank you. Good afternoon, Councilwoman Gilmore Richardson and members of the Philadelphia City Council's Committee as a whole. My name is Catherine Hicks. I'm the current and recently reelected president of the NAACP Philadelphia Branch. Thank you. Thank you. I am honored to speak on behalf of the members of our branch in support of the City Council legislation that would enable this Philadelphia 76ers to develop 76 Place at Market East if approved. On that basis, I urge you to favorably report this legislation out of the committee of a whole with the hopes that it would soon pass by City Council and signed by Mayor Parker. In May of this year. I was proud to endorse the Philadelphia 76ers development project that would not only bring a major athletic entertainment arena to Center City Philadelphia, but would introduce significant economic opportunities and other benefits that the 76 Place at Market East project would provide. The NAACP is the nation's oldest, largest and most widely recognized grassroots based civil rights organization. Our motto is, when we fight, we win. We always fight in the interest of the underserved and the up underrepresented for those who have been marginalized and feel forgotten, for Black communities who rightly deserve more but receive far less than their counterparts. Philadelphia, being identified as the biggest poor city in America should by no means be called to complacency. It should trigger a call to action in all of us, no matter who we are or what neighborhood we live in. The Philadelphia branch NAACP is supporting the proposed 76ers Place at Market East development because it believes that this development comes at a unique moment offering a chance to collaborate with the community stakeholders in order to bring about positive change across the city and in the Black communities in particular. 3 billion project, using no local government subsidies, will provide greater access to workforce development and career opportunities, and will enable residents in traditionally overlooked communities with significant socioeconomic challenges, to find dignity instead of being discounted and thrive more while feeling threatened less. The decision to support 76 Place at Market East did not come easily. We had discussion after discussion with the team. We asked tough questions, and through all of the back and forth, we received assurances from the Sixers that we would have a seat at the table. Our concerns would be addressed, all voices with regard to the project would be heard, civil rights would be protected, and measurable social justice matters like diverse diversity, equity, and inclusion goals would be pursued. I'm pleased to share that not only was I made comfortable with the Sixers' responses and commitments, but after discussion in the Branch's Economic Development Committee, executive committee and general body meetings, we saw that a majority of the members who participated or were on board as well. Many of us agree that by actively participating in the discussions and decision making processes, the NAACP can help ensure that needs of the communities are taken into account. Our branch regularly fights for criminal justice reforms, increased educational benefits, better election participation, and affordable decent housing.
And in this instance, having a developer who prioritizes reimagining Market Street East in a way that reserves decades of decline, doesn't displace Chinatown residents or businesses, it facilitates continued access to Jefferson Hospital's emergency room 11 and manages traffic congestion and public safety interest is invaluable. We must fight the good fight -- Okay. Yes. We must fight the good fight on economic empowerment terms where greater access to new wealth building opportunities that lead to the sustainability of our communities occur. In closing, the NAACP, Philadelphia branch, loves our city is enthusiastic about the prospect and at hand and is excited to be on the team. That's why we, respectfully, urge you to favorably report the legislative package out of the committee of the whole, so that the 76 Place at Market East can advance as quickly as possible. Thank you. PUBLIC SPEAKER RUSHDY: Good afternoon, Council President Johnson and Honorable Councilmembers, I wanted to thank you -- first, thank you for the opportunity to testify before you today in regard to the proposed Sixers Arena. My name is Mo Rushdy and I -- today I testify on behalf of the Philadelphia Building Industry Association as its president. I happen to also chair the Philadelphia Accelerator Fund and a proud leader in the UDA, both efforts promoting a 100% Black and Brown developers to do tens of millions of work in our city. I'm not testifying today on their behalf. My support comes from a simple place; jobs, opportunity and great possibilities for an area that has been dead for a long time. Yes, 9,000 jobs, good paying jobs, family sustaining jobs. The folks behind me here today. Now, I don't remember who asked that question yesterday to Ryan Boyer about a discrepancy about 9,000 jobs versus 900. Yes, it would be closer to 9,000 jobs. The Economic Policy Institute states that when it comes to construction, every $1 million of construction work generates five-and-a-half direct construction jobs. 55 million project would generate 8,525 jobs, so it's nowhere closer to 900 jobs. Opportunity. Yes, I was moved listening to the testimony of Pastor Carl Day about being pro-opportunity. Opportunity that can change lives. One that can train a diverse workforce under the umbrella of a multi-billion-dollar project. An opportunity that can give hope to the majority of demographic of our population and keeping them in the city. Great possibilities for Market East. A corridor that has been long deprived of any serious attempt for it to be reimagined and bring it back to being a safe and walkable major corridor. One that is anchored by an arena, concerts, restaurants, cafes, new buildings, connecting City Hall to Independence Mall. 55 million arena. I see three or four high-rise buildings, tens of restaurants, 2,000 to 4,000 residential units in that corridor. I see $4 to $5 billion worth of work. A great possibility only for the ones that are capable of challenging the status quo, and that can be bold as Ryan said yesterday. I see an opportunity for Chinatown to thrive with a million people coming into the arena every year. Tens of millions of dollars could be spent inside Chinatown. Now I want to put the arena aside for a second and I'll speak about our culture of no in any major undertaking. I personally fight to get affordable home projects under our city program approved by this body and approved by some people in the room. I was once recently told, Mo, I can't allow you to do for 50 homes. It's too much. Fifty affordable homes. Homes that create home ownership and create wealth for the population that Pastor Day was talking about yesterday. That gives an opportunity to -- for folks to move up. We have become anti-big things. We have been addicted to the status quo. It's my feeling that we search for reasons not to do things versus coming up with solutions to do them. We are trying to make everything perfect and we lose so much opportunity in the interim.
Like many in this room, I belong to the Democratic Party. We lost big in the last election. We have to come to grips with the fact that we lost so many working-class people across America. We lost folks like the ones that want to build this arena. We lost our belief and conviction that we are a party that can strengthen the middle class and ones that create jobs and opportunity. Let's prove them wrong. Let us restore their trust. Dear Councilmembers, please vote for opportunity. Vote for hope. Vote for the working man and woman. Please vote for the arena. Thank you.
Thank you. Girl Concrete. PUBLIC SPEAKER SUTTON: Good afternoon, Council, President Johnson, and members of City Council. My name is Lynette Sutton and I'm the managing partner of Girl Concrete. We are a union concrete contractor that specializes in foundations, slabs, concrete walls, and sidewalks. I thought I would come here today as a business owner, to briefly share the perspective of a small diverse business like mine, that is excited about 76th place, but also feels the daily systemic challenges of operating a local women-led construction business in Philadelphia. Personally, when I hear of sizable construction projects in our city that have the potential to generate tremendous economic impact for communities and local businesses, I will tell you that like many of you, we can't help but to feel skeptical. We wonder will we be a part, included, get a real opportunity on the site, or will we be watching from the other side of the build? In our case, the other side of the construction fence. For us, the opportunities that have truly made an impact for Girl Concrete's workforce are those were collectively the owners, developers, GCs, the city and EOP oversight committees have worked together to ensure diversity and inclusivity from the onset, not just for cookie crumbs, but real opportunity. That is what 76 Place has the potential to be. A real opportunity for all, including those that surround the build, not just the select few. I may just be a small local business, but I have full confidence that the Sixers can get this right. We have a history with the team that predates the project, and I know their commitment to the city and diverse businesses like mine is real. In 2021, during COVID, our other entity, Girl Contracting, was selected as one of the first winners for the 76ers Buy Black award. Through that partnership, the 76ers marketed our business to their fan base using social media, radio and TV. And it actually worked so well that the volume of leads broke our website. They also provided us technical assistance on branding and access to many of their senior executives. This was exposure and coaching that we would've never had or been able to afford. Since then, we've launched another business, Girl Concrete. We're on flagship projects in the city, 30th Street Station and the Bellwether District. And recently, we're recognized as the Business of the Year. While that is all great, it's what we've done with those opportunities that matter. And what we have been able to do is to create local jobs. Our workforce are women, men, returning citizens, apprentices in the trades, people from the communities that actually, surround the build regardless of gender, creed, or ethnicity. People who are talented but often overlooked. People who just need a shot or a second chance. That's my workforce. Look, it's not easy being a woman in construction, let alone a Latina in concrete. But the partnerships and relationships that we've built with the Sixers and because of their introductions, have helped us to break barriers and create new jobs, and that is a story that I have not yet heard emerge in these hearings. Essentially, how the Sixers have helped far before 76 Place was even an idea. So in closing, as a member of the small business community, I urge you to vote in support of 76 Place because as you know, it's not often that you find an owner or a developer with a path, not a will, not a desire, but a long-term proven concrete path to move female diverse and local small businesses forward in a way that we can all feel. I thank you.
Thank you. Thank you for your testimony. And before opening up to the floor, I want to go back to Ms. Hairston. Just real quick, regarding the African American Chamber. Is there any recommendations or best practices, from your perspective, and in the work that you are doing that we can do that strengthens or takes the DEI commitment to the next level?
Thank you for that question, Councilman. What I did not articulate in my testimony is that the African American Chamber of Commerce was commissioned to do a study by the 76ers. What we looked at is if they have a commitment, and I think everyone here knows there's a 40% commitment to black concessionaires for 76 Place. That's great, that's inclusion. But in order to have equity for that to actually happen, there has to be interventions to get our businesses there. We have plenty of businesses that are ready for that opportunity today, but in order to build a pipeline, we have to be intentional. The African American Chamber of Commerce has a study. The study is ready to be reviewed by our board of directors. Once our board of directors have had the opportunity to review the study, it will be made public. It should be made public by next week. There are 10 recommendations that, specifically, support DEI in this particular project.
And would that include -I know we've had these conversations before, but I want to go on the record with it. Besides the concession stands, right, we also know in a project such as this magnitude, somebody's going to get the bond work, somebody's going to do the architect work, somebody's going to get -- somebody's going to get the contract for cleaning, somebody's going to get the contract for security. How does that play a role from a professional services standpoint? When you talk about the vending and procurement, somebody's going to provide the food that people are going to eat down at the stadium, in the event that this project moves forward. Talk about the role that the African American Chamber is doing in working with a diverse -- inclusive diverse group of other chambers that you have been working with in the past, that play a role in this particular project.
Certainly. So the work that we have done with the 76ers can be replicated throughout any diverse businesses -- small businesses. It is inclusive of all professional services as well. And so it just does not include concessionaires. The reason why we're focusing on concessionaires in the study is because when you go in an arena, you have to eat and you have to drink. Currently, when you go in arenas, in the arenas that I have traveled to, you do not see black businesses represented. So this was an opportunity to ensure that this project has representation of ownership by Black businesses. There will be other opportunities for Black professionals to have contracts in this project. We are partnering with the 76ers to be an advisory for their RFP process. So any bid that's put out, they are working and have committed to the African American Chamber of Commerce that we will be a partner in that process.
It's very different. Their entire engagement has been very different. And I can say my board of directors for 31 years have been fighting for this day. And to be able to deliver this report to them next week for the work that they have been doing for 31 years, I am elated and proud. It was not easy taking this vote for the 76 project. My board members were called, they were threatened for business. My staff received calls or we were called everything but the child of God and I still get those calls and got those calls yesterday. So it wasn't easy to do this, but the 76ers have been a good partner in this. This is an agreement that we work together. This is what we've been fighting for, right? Black businesses and organizations that have the opportunity to be at the table to conduct business. And that is exactly what we were able to do in this project, and it's a model going forward.
Thank you. Mo Rushdy, in one capacity, you had the BIA, but also another capacity you created the Accelerator Fund that, specifically, focuses on African American and people of color developers have an opportunity to participate in the development that's taking place in the city of Philadelphia. What opportunities are you advocating for to make sure those who come through the Accelerator Fund program, and I know that's primarily on the city side, like turn the key types of programs, but in projects such as this to help individuals get to the next level from the development and contracting standpoint? PUBLIC SPEAKER RUSHDY: Well, Council President, we have seen a lot of talk and a lot of actions and there's a lot of efforts that are being done, such as the ones that Regina is talking about when it comes to the vendors and the contractor's base. The UDA is really focused more, and the Accelerator Fund, specifically, is focused on creating a hundred percent Black and Brown owned developers, landlords, right? One of the things that I truly believe in is that we have been cornered through the system, through the government system, over decades of the minority components whether it's through government jobs, whether through RFPs. And what we're trying to change here is to have an organic growth and having a growth and creating a good cohort of forty, fifty, sixty, a hundred percent Black and owned developers that are doing over 5- to $10 million worth of work every year. We have done this by raising tens of millions from our conventional lenders who are members of the BIA by raising money through. And that's not just me, there is a whole team behind us that includes a very robust board and the Accelerator Fund and the BIA, making sure that we are leveraging all of our contacts to make sure that we are actually bringing opportunity to people. We have seen this already working. We have been working, we have worked with Councilmember Jamie for disposing public land and creating an opportunity for a dozen of developers to be each doing their 3- to $4 million worth of work where they are a hundred percent owners. They're not partnering with anyone, while still maintaining their AOP requirements in terms of vendors that they are actually hiring on these jobs. Okay? It is very important that we support that. It is very important that we focus on that end of the business because once you create that class of Black and Brown developers in the city, in all these neighborhoods, then we're seeing organic growth of Black and Brown vendors within all aspects of our industry.
Thank you very much. The chair recognizes councilmember Jim Harrity.
Thank you, Council President. My question's for Mo Rushdy. Mo, you've been doing development for quite a long time, and I know, large and small developments, you know, across the city. And we've heard Mr. Levy say that he believes that the way we revitalize Market East is through mixed use and other avenues. You know, as a professional, as somebody who has successfully developed properties, because I know a lot of developers who tried to be developers and tried to do projects but weren't successful or weren't able to make a profit. Through your experience, if you were re-visioning Market East, what kind of businesses would you try to bring in your development, if you were the one doing development along or not besides the stadium? I'm not talking about the stadium, just in the actual area. PUBLIC SPEAKER RUSHDY: Right. So thank you for the question, councilman. Now, again, you know, people are looking at the arena as the project of Market East. That's just a start. I have a very good contact, but I don't want to put them on the spot here, who basically said that there are already investors and developers who are looking at waiting for the arena to pass where they're already eyeing properties on Market East to make sure that they are going to be building, you know, high rises, multi-family, want to include affordable housing in it. This is just a gate to a lot of development and revitalization that happens to that Market East. Again, it is very important to recognize that we have a lot to offer, right? This is a big job. There are no subsidies here, right? People can take -- or talk about, you know, that this might be a scam. This is not. Refuse to listen to this. There is private money, private $1.5 billion job for a developer that can cross the river and it's not a bluff for $800 million and get it built where these guys don't build it and we watch them going there, right? This is serious. I mean, this is it, right? Do we want to have an arena? Do we want to have a Philadelphia 76ers that are being built by 9,000 members, good paying members here? Or do we want to just go back and forth and talk about how we are, just one project is destroying all of Market East? Market East is a dead corridor. I challenge anyone to go and walk at 7:00 or 8:00 at night, go and have a walk. Take eight blocks going back and forth, and then give me you opinion. All right. I think Chinatown needs to be preserved. I think the legislations, the companion legislations that were offered by Councilman Squilla to preserve, to make sure that you don't have predatory development that happens in Chinatown. Okay? We have to make sure that this does not happen. We have to make sure that we're listening and hearing on what's going on, right? But let us not have the either or conversation because we have seen so many, I am having them right now myself. Again, on a way much smaller scale, on $20 million jobs building a city's program, right? A city's program, and I still get opposition. It's a joke, quite honestly, right? So today, we have a decision to make. It's very simple. We either build an arena in the city, right? And it gets all the benefits that we can get. The increased city wages for all the members that are going to be working here, the small businesses that are going to be revived and opening up, right? Or we can say, no, this is, you know, not for the city of Philadelphia. That wouldn't be -- I mean, I don't mean any disrespect here, but it wouldn't be unusual for us to basically say no. Okay? Let them cross the river on the other side. Okay? And then we can all play the blame game afterwards. This is in my opinion, an easy decision, while we have Chinatown in our hearts and making sure that we are preserving and making sure we do the best that we can to make sure that they're not displaced.
Thank you, Council President. Mo, you are --you've been a long-term developer in the city of Philadelphia. I just want you to -- if you can just talk more about, you know, oftentimes people can see development as -- in a adverse type of position. In what ways can development of this stature be a part of the growth of city -- of city of Philadelphia to address some of the community issues that people are talking about? How can something of this magnitude be, potentially, helpful that maybe you can talk more about how development is helpful to support social issues and even capture hearts, if anything. PUBLIC SPEAKER RUSHDY: That's a -- that's a -- that's a great question and it's a loaded question. So let me -- let me leak you a stat that we had in part of our, kind of, like last election cycle. Eighty percent of people in the city of Philadelphia think that -- look at developers negatively, right? That's a stat. Eight out of ten think that developers, quite honestly, are scumbags. That's the way they look at it. Okay? That's a problem, right? I always say in the city of Philadelphia, we start from below zero when we go and approach the neighborhoods with a project, right? We start from below zero. We're not starting from a neutral place. Now, there are reasons for that. And I think the people in the communities are not wrong, right? They're not wrong. Okay? Why are they not wrong? Because we have a lot of poverty in these neighborhoods, right? We have a lot of poverty, but that is why someone like -- or an entity like the BIA as a business entity, was the only business entity in the city of Philadelphia that came in in support of Council President, Clarke's MPI and 1% construction tax. We, as a business community said, we support a 1% construction tax, to support to get and float $400 million worth of bonds. So that we can give opportunities for people in the neighborhoods to get that $75,000 down payment assistance that the city of Philadelphia has given. To be able to have people afford and families move back into the neighborhoods and create opportunities. Okay? This is -- this is big. And, Councilmen, this is where I come here and say, you know, do we have a unified vision for growth? Do we have a unified vision that we are sending a message to the people outside of the city of Philadelphia, that want to come into the city of Philadelphia and spend money and invest in projects, and tell them that we are open for business? Or are we going to go through this process and them looking at the city of Philadelphia and be like, you know what, this isn't the city for us. We are at Crossroads. We have a new mayor, we have a new vision, we have a new Council President. Okay? And there is a lot of enthusiasm that going forward, that we are open for business, we're creating opportunity, and we're making sure we are really going there to the middleman and making sure that they are never forgotten again.
Thank you. Just one quick question for Regina Hairston, president of the chamber commerce -- African American Chamber of Commerce. Will the concession stands -- so Philadelphia's very clear, the arena's concession stands, are they going to be a hundred percent occupied? Well, not a hundred percent. When I say, like, the 40, 50% is going to be dedicated to minority owned concessions and so forth. Is it going to be the full concession stand or are they going to have a part in a concession stand? Or has that -- has that detail been discussed? So for example, this is like someone is selling cheesesteaks, but the minority business is selling cookies a little bit. You know, that type of situation on the side there.
So when you get our report that's being published next week, it will be outlined, but the concession, there's ownership in the 76 Place will be 40% Black owned.
You're welcome. The chair recognizes Councilmember Jeffrey J. Young.
Thank you, Mr. President. This question I have is for the folks who represent membership organizations. Could you tell us -- I might have missed it. Could you tell us the number of people you represent and the number of people, I guess, you surveyed for a position on this particular project?
I think the membership organization would be the African America Chamber --
Yeah. It would be the, I guess, the NAACP and African American Chamber. Yeah.
Oh, well, BIA is, as well, because you're a membership organization, as well.
I don't know if they -- I don't know if he served -- I'm sure all they're members, you know.
I think we're close to a hundred percent, but I'll try to find the actual stat.
So I don't have an actual stat for you, but I'll just go back to my testimony. So we represent 200,000 Black businesses in the Tri-state area.
When we decided to support this project as a part of the commission study that we did for the Philadelphia 76ers, we surveyed over 100 members, and that is in our report. And we conducted six focus groups.
So 80,000 members in Pennsylvania with only 100 participated in the study?
So the 100 people that participated in the study was people that were interested in concessionaires, being concessionaires at the particular arena. So the study is focused around food and beverage, and so those are the stats that I'm giving you.
Okay. Thank you. So the folks who participated in the study would have a direct interest -- for that direct financial interest if that arena gets developed or not based on concessionary food and beverage things like that?
So I'm not really clear on the question, but we have not received, not one person that is a member of the African American Chamber of Commerce who is not in support of this project. That has not happened. We haven't gotten it. Everyone that we've talked to have been supportive of the project. We've sent out newsletters, we sent out information over the last year and a half and there has not been one person that is a member of the African American Chamber of Commerce who has said they don't support this project. PUBLIC SPEAKER HICKS: And for the Philadelphia branch NAACP, we have 1400 members, they -- who were notified about the process of being in support of the 76ers agreement. I don't have the amount who actually voted on it. We started out with our executive committee members, and then we sent information out and to our general body meeting, we voted on it. And, a hundred percent of those who participated agreed to support.
Thank you, Mr. Chair. Thank you, Mr. President. And good afternoon to all on the panel. I did want to ask, Mr. Rushdy, you raised a point, and this is something that's come up a couple of times. People have said this a couple of times in the hearings and it's been bothering me, so I wanted to ask it. People advocating for cultural preservation shouldn't engage in ultimatums or either or, but if the Sixers don't get the arena, they get to literally pick up and leave and go across the river. Do you -- do you think that that's, like, an appropriate thing -- do you think that is -- that is fair, just, the right way to approach it? Is it or are folks off for advocating for preservation for the community and then the Sixers are right to pick up and leave in that ultimatum? How would you speak to that? PUBLIC SPEAKER RUSHDY: Welcome to my daily life, Councilman. So these choices we make even in the neighborhoods, right? 5 billion job. But we go through the same things when we're dealing with -- when we're going into communities, especially communities that has not seen development, right? And they look at developments as a threat. This is my opinion, right? My honest opinion from the heart. Anything that disturbs the status quo immediately is looked upon as bad. That is a given. That's the city of Philadelphia. I've been doing business here for 15 years and I have never entered into 16 a community where they took me up in 17 arms and said, this is. I'm telling 18 you, even on affordable housing jobs 19 sanctioned by the city of 20 Philadelphia and turned the key jobs 21 where people will be getting a 22 $75,000 soft second mortgage, I 23 still get that same resistance. 24 So when you talk about cultural preservation, I'm sorry, cultural preservation, I think that's noble. I think what you're doing is noble to make sure that Chinatown is preserved. That's admirable. I think we should all do the same thing. But it cannot be the reason -- it cannot be the reason to deny moving forward. It cannot be the reason. We cannot put progress on our city and growth, okay, in one hand and say, well, it's either we're going to preserve the cultural identity of Chinatown, or you got to build that arena. So figure it out. Because if you build that arena, now you're a bad person because you're really against Chinatown. Not at all. Not at all. When Comcast came with their -- with their proposal down in South Philly, I was the first to go out there and be like, thank you, great. Let's now support the arena and let's support Comcast and what they're doing in South Philly. Okay? Chinatown needs to be preserved. We need to put the safeguards. Yesterday, we had a meeting ourselves to go over the overlays that were put in Chinatown. Typically, you know, a community -- an entity like the BIA is against overlays. We hate overlays because you just can't predict what you can do, right? When you have overlays versus a zoning designation that's already predetermined, it's a problem. But when we heard about the overlay, the inclusionary zoning overlay that was introduced there to preserve affordable housing for Chinatown, as part of the idea of making sure that you're preserving the price points for Chinatown, we see this as a step to make sure that you're preserving Chinatown, right? When you look at the overlay that prevents over 3,000 square feet, I think, or, you know, how many buildings that gets acquired, it prevents predatory. I call it predatory, but you know what I mean where developers will go in and go and buy four or five buildings, take it down and let's go in and put a high rise in Chinatown and here you go, you break Chinatown. I think that is mitigation factors that you are doing with your advocacy to make sure that this does not happen. But the answer cannot be, let's just not build the arena to preserve Chinatown. That is not the answer, especially because in my opinion, it's not fair for Market East. Market East. We're forgetting Market East.
Heard. If I may, Mr. President. Heard. I -- but I do -- if you can say, is it appropriate for the Sixers who are the Philadelphia's basketball team to have only loyalty to, if we -- if we can build an arena here, we'll stay, but if not, we'll leave. But then turn the question on community members who are advocating for the community to say, if you don't go with this, then you're being unreasonable. Do you think it's appropriate to, kind of like, raise -- leverage that on the community itself as advocating, especially since so many of us are agreeing, finally, that Chinatown must be preserved and that they don't have enough. PUBLIC SPEAKER RUSHDY: Councilman, see, again, I think the framing of your question, in my opinion, with and with all due respect, is flawed to say that can they exercise that leverage by basically saying, well, if you don't approve me, I'm going to go to the other side.
That's what's they're saying. PUBLIC SPEAKER RUSHDY: No, no, no. I understand that. But that is a fact. I have an offer. It happens when we sell our homes. If you don't give me that price for my house, I have an offer on my house. Is that -- is that mean? It's not mean. It is -- it is -- there's a transaction happening. It's a transaction of $1.4 billion. So what are we thinking? That when someone is trying, that has a lease that's going to be over in 2031, we think they're leaving it till 2028, '29 maybe we're going to solve it, maybe we're not. No. No. They're business people. They're looking at options. Their first option, and what they really want to do is they want to stay in the city of Philadelphia and they want to be the Philadelphia 76ers. That is what they want.
9 I would say for the record, and I'll 10 be done, Mr. President. I thank you 11 Mr. Rushdy for this. I would just 12 say it's still -- it's still 13 challenging for me to accept the 14 idea that as a team that has a place 15 to play, that folks have gone out of 16 their way to try to keep and support 17 and to provide for, already where 18 they exist, for an arena that won't 19 be up for a few more years. 20 And then to say that if 21 that team doesn't get exactly what 22 they want in this particular place 23 -- there are folks who have and I 24 have since, from the beginning said, not against an arena in concept, but an arena in the community that the community is saying they don't want there, after having heard the pros and cons for it after a series of meetings, and then say that somehow, you know, there's some loyalty there. It sounds like their desire, which is the tip for billionaires, is to make more money. But there is no loyalty coming here or being expressed from the team. But there's expected to be loyalty from the community to let them do what they want to do. And I think that's a bit unfair to ask the community, and as an elected representative at large, I think we should point that out. I hear this back and forth. It just -- it troubles me that this idea, that we are being -- we are being unreasonable by providing an -- by an ultimatum but they're not. That seems a bit disingenuous, but thank you. PUBLIC SPEAKER RUSHDY: Absolutely. And if you don't mind before -- just seconds 7 here. If the owners of the Sixers 8 were looking at their bottom line, 9 you have my word, we would not be 10 sitting here today. If that is what they want. Their bottom line only, they would not be here today. Okay? It's simple math, man. It's simple math, Councilman. They -- there is no bluff here. If it's a business transaction, they will not be sitting here today. So I do think that there is a serious will on behalf of the 76ers of being here, want to build it by the folks sitting here today, make sure we're providing an opportunity for -- in the city of Philadelphia, reviving a Market East corridor, put a CBA that makes sure that it is covering Chinatown, making sure that they are protected. I sincerely believe that that is their true good intention to do that.
Thank you. PUBLIC SPEAKER RUSHDY: You're welcome.
I want to thank all of you for taking time out of your schedule today and for your very informative testimony. Well, Mr. Christmas, please call the next panel.
Mr. Shawmar Pitts, Christopher Rogers, Erica Guadalupe Nunez, Mercedes Bonilla, please come forward.
State your name, for the record, then you can begin your testimony. PUBLIC SPEAKER ROGERS: Anybody? Any one of us? Okay. Christopher Rogers. Thank you all for having the time. I'm here representing as one of the growing coalition of Black Philadelphians who are taking a active public stand against the Sixers Arena proposal not in our name. I've been pretty successful in local collaborative efforts to preserve and sustain some of the Philadelphia's cultural treasure, such as The Paul Robeson House, Hakim's bookstore, and most recently, the National Historic Landmark, Henry Ossawa Tanner House, and Strawberry Mansion. I want to thank Councilperson Richardson for her support there. These passionate personal efforts speak to the importance of uplifting and maintaining the rich social fabric and deep cultural heritage which informs sustainable, equitable people responsive neighborhood development. Yet before all that labor, I'm a neighbor and I strive to be a good one as my mother taught me. Being a good neighbor means being willing to stand against specific practices and policy proposals that promise more immediate community fragmentation and cultural heritage displacement. Then our future is speculative and wishing on a star benefits would serve our public interest. Not too long ago, the National Trust for Historic Preservation, uplifted the Henry Ossawa Tanner House to America's 11 most endangered historic places in 2023. And we were honored to reach this designation alongside our neighbors in Philadelphia's Chinatown. Since the National Trust has led continuing efforts that evidence how many of America's Chinatowns are disappearing through public and private attack. The ongoing initiative showcases how these communities face compounding threats and assemblage of racialized and economic forces that put at risk these special old places where countless lives, memories, and stories began and continue to unfold. Indeed, black neighborhoods such as Strawberry Mansion, where the Tanner House is located in Cobbs Creek where I live, navigate the changing same. From my public testimony then I reminded the audience that we Black and Asian Philly folks, working to preserve our cultural heritage come to recognize a legacy of common resistance that we share from our community self-determined projects against the onslaught of a cumulative, collective and continuing policies of structural inequity and impose austerity. I reminded folks that we have not yet been saved, but inspired by those who came before us, we continue to love and fight for our neighborhoods. Councilperson Kendra Brooks testified that 70% of Philadelphians stand against the Sixers Arena proposal. Many of us who watch our beat up Sixers struggled through all our season openers were forced to watch over and over again a 22nd clip where Mayor Parker exclaimed the power of the people is more important than the people in power. And yet, the mayoral administration came to endorse the Sixers money, yet unpopular proposal and went further to suggest that their current lowly concessions would be the best that we ever achieve. Is this faith in the power of the people or an admission that who truly are the today's people in power even as you mentioned, Councilperson O'Rourke, the powers that be that even impacted the people's town homes. To whom does our city's elected representatives truly bend its ear? From whom do those elected by us to represent the freedom, dreams of our communities take its directives. What faith do we, ultimately, display in the collective wisdom of everyday working families about what's right for them in their neighborhoods? Thank you.
Thank you. PUBLIC SPEAKER BONILLA: My name is Mercedes Bonilla. Good evening members of Council. I serve as the founder of Leverage Economic Solutions, which is a economic development organization that has served the state of Pennsylvania and the city of Philadelphia as a whole. I also serve as one of the newly elected executive committee members of the NAACP, Philadelphia Branch 2346B, in which in Philadelphia we have more than one branch. Catherine Hicks is our president. We have 1,400 members in which we just held the election on 11/16 of 2024, whereas only 172 members have voted. To turn attention back to Councilmember Jeffrey Young's question, we were not given any email in reference to any vote of any 76ers Place. We were not sent any text messages and I, as a member and a longtime member of the NAACP, serving as at large member in many different branches over this country, I am horribly -- I stand horribly having to go against the NAACP right now because there's a lot of ambiguity here. We have not voted and there have been meetings that we have all not been a part of. I am in opposition, completely, of the 76ers Place as the NAACP Philadelphia 2346B member and executive committee member. Going into Reed and Handens plans, as well as other plans and being a part of traffic reports, there is no full plan for Market East and or East Market area. There are no full plans. There's not a straightaway plan. There are not plans that effectively communicate port authority plans and or bridge plans. I want to recognize the African American Chamber of Commerce of three states, which is stated Pennsylvania, New Jersey, and Delaware, which in New Jersey I am a native of. We already have an African American Chamber of Commerce. And which now we have two, given that we have Pennsylvania, New Jersey, and Delaware here. So I do want to recognize that they did give some numbers, but those numbers are skewed by only contacting or allowing 100 people within the organization to speak for a body of businesses. To preserve time of this panel, I'll yield my time. Thank you.
Excuse me one second. The chair recognizes Councilmember Katherine Gilmore Richardson.
Thank you. Thank you very much. Council president, I just wanted to thank you all, so much for coming in and for your testimony, and it's nice to formally meet you in-person, I didn't realize that was you, relative to the Tanner House Preservation, something that I've cared deeply about over the last several years. And I just have to uplift someone who's not here, who brought that entire situation to me and really helped us work through that challenge, which is queen Judith Robinson. She brought that situation in North Philadelphia to my attention. We work with our former Council President, Darrell Clarke, and together with the support of this body, we were able to help with ensuring that we provided, needed and necessary support for the preservation for Tanner Household. So I just wanted to thank you all for those efforts and uplift, in her absence, queen Judith Robinson for the work that she has done for us to be in this space. Thank you very much.
Thank you. Please state your name for the record and begin your testimony please. PUBLIC SPEAKER NUNEZ: All right. Thank you. Good afternoon. My name is Erika Guadalupe Nunez and I'm the director of Juntos, a community led Latina immigrant rights organization in South Philadelphia, fighting for our rights and against the criminalization of our people. We adamantly oppose the construction of an arena in Chinatown, and recognize it not only as an attack on its immigrant community, but as an attack on all immigrant communities across the city who have built and transformed its sectors to serve as thriving community and cultural hubs that speak to the true essence and resilience of our city. From north to south, east and west, we say no 11 to an arena in Chinatown. There's a movement phrase in Spanish, [SPANISH LANGUAGE] which translates to the people are not for sale, they're loved and defended. The attempts to sell out Chinatown for the pet project of a few billionaires will do nothing more than rob our city and its communities of the resources we need to thrive. From infrastructure to operational costs tied to the stadium, the proposed drain on state funding and a tax break that would cost our public schools $7 million annually, the 76ers Arena Project is nothing short of a plan to sell out communities. Instead of this misguided proposal, we need a true commitment to fund affordable housing, mental health services, schools, libraries, public transit, and much more. The developers behind this plan are making false promises about the supposed benefits of this proposal, and we are calling on you to open your eyes and keep your hearts with the people you serve. Many Latina immigrant community members work in Chinatown. We know that wealthy white team owners are not considering their well-being with this proposal. An attack on Chinatown makes all of our communities vulnerable to the beast of gentrification. If you allow this to happen in Chinatown, what keeps places like Calle Nueva safe. Latina immigrant communities have similarly transformed the 9th Street business corridor into what it is today. How long before wealthy elites eye for another development project, robbing decades of transformation by our residents both past and present? Immigrant communities have built neighborhoods that serve as vibrant neighbors -- networks of care, support, and culture exchange out of necessity. Places like Chinatown are not accidents of geography. They're the results of generations of collected effort by people striving to create spaces where they can thrive, find safety and access critical services and affordable homes. The construction of this arena will disrupt and dismantle these networks, leaving thousands of residents vulnerable, not only to the looming threats of political agendas like Trump's, but also to the systemic inequalities that remain unresolved in our city. Know this, the Latina immigrant community does not want an arena in Chinatown. We stand in solidarity with its residents and the broader community until this plan is no more. [SPANISH LANGUAGE] The people United will never be divided.
State your name and record for the record. Please begin your testimony, sir. PUBLIC SPEAKER PITTS: Good afternoon, Mr. Council President. How you doing today?
I'm doing pretty good, Mr. Pitts? PUBLIC SPEAKER PITTS: Yes. My name is Shawmar Pitts, and I represent South Philadelphia Grays Ferry neighborhood, and I'm part of a environmental justice organization called Philly Thrive. And we've sat here and we've heard a lot of testimony today and, you know, it's hard to see and witness what's going on because this is history in the making, believe it or not. And I want to be on the right side of history. And I know that people see opportunity and building an arena in Center City. They see opportunity there, but at the expense of community that has made their life there and that lived there. So I don't think it's appropriate that we even consider uprooting and displacing a community that has lived there and has a history there, right? I don't think we should even consider doing something to people like that. And a lot of times people ask me about why would I be in defense of the people in Chinatown. It's because when my community was displaced, I didn't like it. I didn't like to see the gentrification going on in a Point Breeze section of South Philadelphia and in the Grays Ferry section of South Philadelphia. I didn't like it. And I don't think that is appropriate for that to happen to anyone. No doubt about it. I want jobs for my black people. I want jobs. All of the people that come and talk about the jobs, we can get the jobs, we can build it anywhere we want. We can build it anywhere we want. And we can bring our minds together to figure out how do we infuse Market East? What should we build in Market East that's going to be a good economic development in our city. We got the minds to do it. We don't have to sacrifice the people in Chinatown to do that. And we don't have to -- and I think that also, you know, I'm so glad that, you know, our Councilman O'Rourke was here when he asked about, you know, is it appropriate to say if you don't build it here, then I'm just going to leave, right? Well, you know, my thing is, if that's all it take for you to leave, you wanted to leave anyway. You want to hold us hostage because you can't get your way right here, you could build it somewhere else. We could revitalize South Philadelphia where all the stadiums are at and build it there, a new state of the art facility, the best in the world. We could build it right there and it won't displace anybody in Chinatown. How about that? We can come up with ideas where it is a win-win. We can do that, but we got to be willing to do it. We can't just be on the wrong side of history and do the wrong things because the wrong things is done to my folks all the time. All the time. And they come and they promise us jobs. And just like the young lady from Girl Concrete said, when you come and you promise us jobs and all of that, we skeptical. And that's a -- that's a understatement, skeptical, because I'm going on your record. I seen development in this city that I have never seen before in the last 10, 15 years with laws in place, 40% minority participation and all of those things. And we don't get them jobs. We ain't even getting them jobs. So I'm going on your record. So all them people in the building trades, when they come and say build it, yeah, I want you to build it because I want the jobs too, but we ain't been getting them. We get hired and -- with that 40% we get hired, and then within a couple months in that job, that job going to be there for seven years. They going to be building seven to 10 years. Within a couple months we all laid off. So what good is it for me if it's going to be jobs there. What good is it for me, if I go through the apprenticeship program and get the skills, what good is it for me if I'm not going to be able to work because they don't want to spread that money out. They don't want me counting the money at the end of the day. I'm not going to work there seven years, five days a week with overtime at $60 an hour as an electrician.
They're not going to allow that, they haven't been allowing it. So why do we think all of a sudden the Sixers care about us and they going to give us jobs and they going to look at people like me and say, we going to give you a opportunity. Come on, man, don't do that to us, man. We ain't that stupid. Don't do that to us man. Don't do that to us.
Thank you. PUBLIC SPEAKER PITTS: Don't use us like that because that's what they doing. Thank you.
Thank you very -- thank you very much for that very passionate testimony. Thank all of you. At this moment I'm going to acknowledge Councilmember Jeffrey J. Young.
Thank you. I have a question for Ms. Bonilla. Just, you were alluding to, I guess, Market East. Could you just, you know, go a little bit deeper into what you think some of the current issues are with Market East? PUBLIC SPEAKER BONILLA: Some of the issues right now, and I also for the record, I'm a Pennsylvania real estate agent that deals with commercial as well as residential real estate. So for the record, I did not state earlier that I am a Pennsylvania real estate agent that deals with commercial real estate as well as residential real estate. I think some of the issues in Market East, that were touched on earlier prior to our panel sessions, parking. There are a lot of, again, you may step out for a second, but there's a lot of ambiguity when it comes to numbers. People come here and give testimony and/or speak, but they don't actually have the data in front of them. Each panel they keep saying we don't have numbers, right? I think the biggest part with not just Market East as far as the data, I think it's kind of the problem here is what's displayed here about not giving numbers here. It's not something that has been done, but in economic development, we can survey and actually write those plans. So you can't necessarily say -- it's like statistics. The numbers are not facts, but you can actually try to give an account. I also serve as well -- I actually am an MBA candidate at Georgetown University McDonough. So I actually deal with statistics and data all the time. So a lot of that's not given here or they don't have the data to say, give me -- can you give me a second Council President and or members of Council, so I can actually give that -- give that information. So one of the major things again is parking, as well as those residents that live here. We see people that might be coming here for colleges. Philadelphia, we have some of the best colleges in the world, even though I'm a native New Jersey, I live here in Germantown, serve as a block captain. So I'm also -- I deal with a lot of -- I'm the past RCO secretary for Baton Hill. So I have done a lot in the economic space. So what I see is that in Market East, a lot of -- and as stated before earlier in session, that the community leaders are not involved with planning and they're not brought to the table. That's what I'm seeing currently in the lay. Uh-oh, Council President, I'm sorry.
The chair recognizes the gentleman from the 1st Councilmanic District. Just for a point of information regarding, how many meetings have you had and how long has this process you have been working on, as it relates to addressing the issues, as it relates to the constituents that you actually represent in the 1st Councilmanic District, which includes the Chinatown community.
Thank you, Mr. President. We've -- it's been meetings for a little over two years, on this process, and with, Chinatown community, we had over 32 meetings which was verified by PCDC in their testimony of, he said dozens of meetings. And we also have met with not only the Chinatown community, but at least close to a hundred meetings altogether with all the community stakeholders as far as the people involved with Washington West, with Jefferson Hospital, except the Midtown Village, and Center City District, Reading Terminal, Convention Center. A Lot of other stakeholders that were there that compromise the number of meetings and discussions that we've had along the way before, legislation was proposed by the administration.
And for the record, what are the purpose of the meetings that you were actually having in terms of you, your staff being there, what was the purpose?
To discuss the challenges and concerns of the nearby residents, and/or the support of arena proposal that was going to be put at the gallery site between 10th and 11th and Market.
And for the record, what have you done with the actual information you actually received?
Well, as we received them, we -- as part of the negotiations after the legislation was proposed, we met with the Council President's Office and the Mayor's Office to go over some changes in that proposal and modify -- modification of the CBA to include what we call Arena District and also to introduce additional, what we're calling companion legislation to look at cultural aspects of Chinatown to create an overlay and still working on a proposal for a tax incremental finance legislation to address the concerns that we heard during that process.
And last but not least for the record, are you willing to still continue to meet with the various stakeholders and groups from Chinatown and surrounding community regarding the actual legislation that's proposed for you that you're actually sponsoring?
Yes. We met -- we had a public meeting as late as Monday, Monday this -- Monday this week -- last week. No, Monday this week, we met to discuss other activities on the legislation, other proposals and possible compromises, and have continued to have meetings with all the stakeholders, ongoing even through this process. Not only during this hearing process here, but during times when we're not at this hearing.
All right. Thank you very much, Councilmember Mark Squilla. I want to thank everybody for your very, very informative and passionate testimony. And with that being said, I'm going to ask for Mr. Christmas to please call the next panel.
Chris Mullins of McGillin's Ale House, and Fergus Carey of Fergus. Please come forward.
State your name for the record and please begin your testimony. PUBLIC SPEAKER CAREY: Fergus Carey. My name is Fergus Carey. I am a business owner in Philadelphia for the last 30 years or so. I am -- I'm also the president of the Board of Midtown Village Merchants Association, and this is my associate Chris Mullins from McGillin's Ale House, and he is also on the board of Midtown Village Merchants Association. We are here today. We are -- we are a business organization and we are in favor of the arena coming into 11th and Market. We are pro-business and therefore we felt that it was the right decision to make.
That's your testimony. That was quick. Go ahead, sir. PUBLIC SPEAKER MULLINS: I'm ready. Short and sweet.
Please state your name. PUBLIC SPEAKER MULLINS: Short and sweet.
Please state your name. PUBLIC SPEAKER MULLINS: Sure.
Said a whole lot without saying a whole lot. PUBLIC SPEAKER MULLINS: Yeah.
State your name for the record, sir. PUBLIC SPEAKER MULLINS: Sure. It's Christopher Mullins, Jr. Good afternoon and thank you for allowing us the opportunity to address City Council. I'm the third-generation owner of McGillin's Olde Ale House. McGillin's is Philadelphia's oldest tavern. It was founded in 1860 by William McGillin. My grandfather and his brother purchased McGillin's in 1958. And in 1993, with the opening of the Convention Center, my parents saw the opportunity for Center City, and decided to purchase the bar, take it over and, you know, see where things go. And I've been with them since 2006. The Convention Center changed the face of Center City, many for the good. However, there are still challenges to the building, but at the end of the day as predicted, it brought thousands of out-of-towners and locals into the core of the city. We remember what our neighborhood and must -- much of Center City was like, prior to the opening of the Convention Center. It has spurred new hotels, restaurants, sidewalks are filled with visitors, and it's a much more vibrant place to be. But we also do know that the Convention Center is not enough to sustain Center City. For 50 years, we've watched the slow decline of Market Street, where once five department stores lined the avenue. Macy's is the last one, and that we hear is closing too, potentially. News of Giant closing has rattled our nerves, and retail, we know everywhere is in decline. But what's going to fill Market East because it's not going to be retail. There are so many holes along the blocks of -- from 6th Street to 13th along Market, and we've been told too many times over the years that things will turn around. Yet we still wait. And today we're debating over a privately funded massive project that will bring millions of dollars in revenue to our inner core, provide jobs and drive traffic into an area that swirly needs the activity. Plus this project comes with no private republic financing, which is unheard of from what I understand. We realize the effect on Chinatown is a concern and we share those concerns, but we know provisions can be put in place to protect this historic neighborhood. However, the benefit to all of Center City needs to be considered. As far as traffic goes, this weekend we have the Philadelphia Marathon. For two days, traffic is disrupted in all of Center City from every corner, and yet somehow life goes on and people take public transportation. The Flower Show affects more people per day than the arena will hold in total -- in total though it is mitigated by the use of public transportation. People from all over the region during that Flower Show come downtown and enjoy the highlights the city has to offer. The city's alive. It's energized and an experience that people take back to their communities and say how wonderful Philadelphia is. This project will not fix all of our problems, but it will be a shot in the arm. It'll bring people into the core instead of concentrating all of the business in South Philadelphia. The jobs -- the jobs that this will bring will also allow cleaner streets and safer streets. My family, our employees, and our community urge you to support this once in a lifetime project which our city so sorely deserves. Thank you so much.
Thank you, Mr. President and Mr. Carey and Mr. Mullins, I want to thank you for being here. I was in your industry for 17 years. People come in, see your place packed, they think you're a millionaire. They don't realize it's a seven-day a week proposition, that you have big payrolls, that you have the insurance going up, government's usually coming after you for how many permits you have to pay every year. I understand the plate of the small businessman and I'm just happy that you guys are not only worried about your own establishments, that you have this organization that are worried about other establishments in Center City. It's this working together that I think is so important, that makes us the city and neighborhoods and the City of Brotherly Love that some would argue you to our competition. I would argue that a rising tide lifts all boats and hopefully this project can do that. And I will say this, we need you over these next couple years to give us input and Councilmember Landau will be working with you with regard to 2026. And I know she's been doing a great job with all of the establishments for outdoor dining, what extended permits we're going to need for 2026 when we have the FIFA World Cup. So I just want to tell you, we're not always the enemy. We're here to help. And that when we can be helpful over the next couple years, please use us. Thank you.
Thank you. Just for the record, where are your two businesses located? PUBLIC SPEAKER CAREY: We're both in Midtown Village Merchants, in middle of Midtown Village. Fergie's Pub is at 1214 San Street. McGillin's is on Drury Street. We are basically a spit from this place right now.
Okay. All right. Thank you very much. Well, thank you for taking time out of your schedule and being here today. PUBLIC SPEAKER CAREY: Thank you very much.
Last and final panel, Mr. Christmas. Can you call the panel please?
Bobby Zhang, Lauren Lowe, Yoojin Park and David Acosta, please come forward.
Thank you. Just please state your name and begin the testimony. PUBLIC SPEAKER ZHANG: Hi, my name is Bobby Zhang. I'm the honorary president of the Hoyu Association in Philadelphia. I'm also the Secretary General of Pennsylvania United Chinese Coalition. I immigrated to the United States in 1982. At that time, I was living in Washington, D.C. I moved to Philadelphia in 1995. The CBA introduced by Councilmember Squilla is a terrible one. Chinatown was never consulted, and it's a pitiful deal for the entire city. The D.C Chinatown is on the brink of disappearance. What happened over there foreshadows what would happen to Philadelphia's Chinatown should the arena get to build. The fight of the DC Chinatown community against displacement intensified after the Capital One Arena was built. However, the community that used to have thousands of residents now has only less than 300 remained with only 15 business owned by -- Asian owned. And to that city, that was economic death zone with low foot traffic, with dozens of empty vacant business, as well as languishing chain stores. So let what happened to the D.C. Chinatown be a warning. It's a warning that shows what would happen to a community if a developer were to allow to develop that results in displacement of residents. And the warning that once the local business will chase out, the entire community will lose its unique characteristic, and what would happen then. The Chinatown currently is in danger. Our business -- our community relies on small businesses with many of them provide services. But because of the pandemic, our community have suffered great effect. Many businesses did not survive during the pandemic. We saw many families have lost their lifetime -- lifelong savings. In addition, our community is facing hate due to the pandemic. In 2022, we just started to recover. What we need from the city is support and help. We need someone to recognize the value of our community and support us as we start to rebuild, especially in the face of anti-Asian violence. However, we get this arena, that will destroy us. It's only silence from elected officials in the face of our concern at their inaction. This arena can be built in any place. No matter what is built, there will be the same jobs or even more when it's built somewhere else. They already tried to build one on the waterfront, but they were rejected. Why would we accept a proposal that will disproportionately affect our community? Chinatown is a working class community of color that has been long marginalized. This feels like yet another instance of anti- Asian hate. We are still trying to just survive. Thirty percent of our restaurant business rely on takeout and delivery services. All of our customers need to be able to access Chinatown in an easy manner and then also need affordable parking. To countless Asian American and immigrant family, Chinatown is not just a place for dining. It's our spiritual, cultural, and historical center. Our community won't survive the six years of construction and Chinatown won't even be around to see the arena open. You cannot mitigate an existential threat. You cannot offer community benefits that will pay for our history, our culture, or our relationships. The so-called economic study has ignored the hundreds of business, their contribution to the economy. It also ignores the danger this small business face. It seems like our pain, our cause, seems to be meaningless to this city. But after 150 years of hard work, we earned the right to stay here. We are one of the oldest communities in this city, and it's also -- it's also an indispensable part of the city's culture and history. We are calling on all Philadelphians, who have a heart to oppose this project, to support our community, to show that our community is a treasure asset of this city, join us and to fight against those predatory developers. End this now. No arena in Chinatown. Thank you.
Thank you very much. Please state your name for the record and please begin your testimony. PUBLIC SPEAKER ACOSTA: Thank you, President Johnson and thank you members of City Council. I'll keep my comments brief because I know you've been here all day. My name is David Acosta. I'm a poet, a writer, a community organizer, a cultural worker, creator, and a lifelong resident of the city of Philadelphia. And I am here to speak against Bill 24966. I'm part of the arts and culture community, a community still reeling from the financial impact of the COVID Pandemic. You need to know that our theaters and cultural venues will lose money if the arena goes up. The Wilma Theater, the Kimmel Center, all of these theaters and other arts organizations that bring in millions of dollars to the city every year, will lose money because the arena's traffic and construction will black out customers. Restaurants will lose money. We can't even afford to fund SEPTA. How can we afford to pay for this arena? You have on your desk a list of 1,000 signatures from cultural workers, creators, executive directors of cultural organizations in the city, and signatures are still coming in. You also have on your desk, a copy of an anthology that I had the pleasure of editing along with Mia Kang on the meaning of Chinatown to the 44 poets who contributed to the anthology, the oldest poet being in their late sixties, the youngest poet being a 9-year-old Chinese American boy. I think that the arena, and these people who signed this petition see their livelihoods as threatened. We know the economic study inflated the jobs and revenue numbers of the arena. Approving it would destroy thousands of jobs and replace them with very little. The arena also poses an existential threat to the Gayborhood, Washington Square West, the Loft District, another nearby neighborhoods, Old City, Queen Village, Bella Vista, and Hawthorne. The great deal of the mayor is offering is great only for 76 Place billionaire developers whose lawyers drafted it. It is a bad deal for the rest of us and for the cultural institutions that will be impacted through six years of construction and subsequent gridlock. The project will also destroy one of our city's cultural treasures, Center City's last remaining working class community of color. History will judge you harshly if we green light this project destroying a cultural enclave of great value while financially harming perhaps a revocable important cultural institutions which makes us a class world city. To those of you who stand in opposition to the building of the arena, thank you for asking the hard questions on behalf of the citizens you represent. We call on all of you to exercise true leadership and say "no." Support the community's right to self-determination. Honor Philadelphia's identity as a city of neighborhoods. In conclusion, finally consider the negative impact this proposed arena could have on the culinary and gastronomic richness of our city. People come to Chinatown for some of the best Asian food to be had anywhere in this country. Many of these are small family owned businesses whose survival is threatened by six years of construction. And subsequently, the rise in affordability for housing which follows gentrification. Please say no to this project and address the real problems impacting quality of life for us all. Better schools, affordable housing, clean streets, and a fully functioning public transportation system. Thank you.
Thank you. Please state your name for the record and please begin your testimony. PUBLIC SPEAKER LOWE: Good evening. My name is Lauren Lowe. I'm a writer and a teacher and a District 3 constituent with family roots in Philadelphia's Chinatown. My father and his six siblings all grew up in the neighborhood, or as we say in Cantonese, [CANTONESE LANGUAGE], born and raised. As I've become an adult and moved around for school and for work, Chinatown and Philly have always remained home. A longtime member of the Philadelphia Suns. I now also coach the girls 9 under team on Saturday mornings at 10 the Crane Tower. 11 Now, 71 years old -- 12 sorry for putting your age out there 13 like that, dad. My father, like 14 most fathers, has a lot of stories, but there are two days in particular that he recalls with extra clarity. The first was from October 1976, when he was at Passing, Sporting Goods, 8th & Arch, which in a classic old school Philly Way did the uniforms for the professional teams in the city and the Holy Redeemer School teams where he went to school. And he found out that day that Dr. J was being traded to the 76ers. We all know how that went. The other days from three years before that, in August 1973, he was years old and an early 7 phone call woke him from his sister. 8 They're trying to knock down Holy 9 Redeemer. She said, you have to get 10 over there. It was raining light 11 that morning. He phoned his best 12 friend, grabbed his sister's wide 13 burn hat and sprinted to 10th 14 Street. 15 Bulldozers had already 16 begun demolishing row homes while 17 the neighborhood was still sleeping. 18 Without hesitation, he climbed to 19 top a mountain of rubble with his 20 friend and neighbors. You've probably seen that photo, if you're familiar with the Vine Street Expressway fight. It's black and white and there's the small determined group staring down cranes, a banner beside them, reading homes, not highways. To this day, my father actually doesn't consider him an activist, though I've spent many occasions trying to pin the title on him. We don't always share the same politics, and I kept thinking this was a place where we could overlap, and I could get him to admit that I was right about something. But as I've gotten older, I've started to see his point of view and really appreciate. Can you imagine how much you must love a place to put your body on the line like that? This is my lineage. I'm speaking to you today with equal parts pride and pain. It's an incredible opportunity to advocate for our community alongside our elders, and yet I'm also frequently aware of how often they've had to do this over and over again in the course of their lifetimes. I'm also aware that this fight is not just about Chinatown. It's a fight that's held over and over in low income communities across the city and in neighborhoods of color. At the same time, when the Vine Street Expressway fight was happening in that same era, there were so-called Urban Renewal Projects that raised the Black Bottom neighborhood in the 60s, and where university adjacent development continues to drive displacement at an increasingly rapid place today. To the note about community meetings with Chinatown, I would just like to flag that while I appreciate the very specific number offered by Councilman Squilla about 32 meetings. PCDC was actually here yesterday and John Chin remains on record standing in opposition to this arena. And furthermore, he said that while they've had many conversations, the current CBA actually does not reflect anything close to what's been discussed about what's needed for Chinatown's protections. So I'd like to just remind everyone of the axiom. It's not about quantity, it's about quality. And while you may be in meetings often, which in the last year or two years, we've only received 72 hours' notice, I think the last one we found out about on Thursday or Friday for a Monday meeting, are you actually listening to us or them?
Finally, I'm struck by this building slogan that we often hear. I can get with a good chant. I grew up playing sports. But what are we committed to building? Are they flashy developments that promise a quick fix silver bullet solution with nearsighted promises of revitalization? Are we committed to building up our communities through serious investment and engagement and long-term comprehensive visions for planning? I fear the looming scale the proposed arena has prematurely narrowed the conversation about what's possible there, not only for the future of Market East, but for the city as a whole. Facing school closures, accepted death spiral, affordable housing crisis, and a gun violence epidemic. It is true that we need real change, and that does include a re-imagining of the blocks along Market East. But do we really believe that a few billionaire owners, who by the way, are responsible for a star-filled roster that's two and right now and hasn't made it out of the second round in many, many years, are really the best that we have to offer. As we approach the bicentennial in 250 years of Philadelphia, we have to ask ourself, what will our legacy be? What do you want the city's legacy to be in another 250 years? And perhaps more pressingly here for Council today, what will your role be in creating that legacy? I do believe, perhaps naively that a better, more equitable city is possible for all Philadelphians. These don't have to just be empty words that we're exchanging here. You can take action, you can vote against the arena, you can put forth a real request for proposals and bring community stakeholders to the table throughout the process to help drive the process. We just need the courage, vision, and collaboration to fight for the city we want. Thank you.
Thank you. PUBLIC SPEAKER PARK: Good afternoon or rather evening. My name is Yoojin Park. I'm a social worker, Temple grad and queer performer. I perform as the only Asian king in the city and was recognized for my art and activism in PGN's most influential queer community leaders. In addition to starting my own non-profit for Queer Youth of Color, I'm also a part of No Arena Gayborhood, a community group made by and for queer people citywide who are in solidarity with Chinatown. We're backed by almost 2,000 queer folks from all over Greater Philadelphia that have signed our petition against the arena. We support Chinatown and all communities harmed by predatory development. I want to talk about two main things today; local history and local democracy. I'll start with the history. Others have given examples of predatory development in Philly, but no one's mentioned yet how Chinatown and the gay were practically connected once and how predatory development harmed both. I'm talking about the Convention Center, which displaced Chinatown families and erased an entire group of Black-owned gay businesses on Filbert and Arch. We still deal with a lot of racism in the Gayborhood, and a huge part of the reason is that half of it was literally erased. Queer people of color are pushed out time and time again. This month, two minority owned and oriented Gayborhood businesses got priced out. It's not a coincidence that both these owners of these businesses oppose the arena because they know what it's like to have to fight for space and capital as a minority within a minority. It's not surprising when you hear other people talk about the Gayborhood or try to call it Midtown Village without actually ever engaging with queer folks of color or our performance community. Level Up, my home bar and the only Black owned bar in the neighborhood is closing next month. That loss is more tangible to me than anyone else here because I'm in the chain reaction. Ken is losing his space in the Gayborhood. The folks working for him are losing their jobs. I'm losing my home bar and so many show opportunities, and once again, we're losing precious rare community space for queer folks of color. In 2020, Midwood Development, who destroyed the 12th Street gym, first whitewashed the mural of Gloria Cassar in the middle of the night without any consent from the community. They also made promises about preserving a cultural treasure and proposed a so-called Public Art Bonus to appease people. And of course didn't keep the promises. Doesn't that give you deja vu? Just like Midwood, this arena developer doesn't care about a democratic process with the community. They don't even talk to us. Their idea of community benefits is stuff like free basketball tickets for the same school district that has to close schools doesn't have AC, and literally kids are breathing in asbestos, but they're about to get a $400 million tax break. We don't expect a self- interested developer to have a democratic process. They don't work for the taxpayers, but City Council does. And you should be working on urgent things like schools and SEPTA and you should be the strongest guardrail ensuring a democratic process. But instead, we have an undemocratic process to the point where you're physically silencing free speech. I'm talking about what happened here on October 24th, as you may know from the ACLU's warning letter yesterday. All right. Two cops on behalf of City Council dragged Debbie way out of here. She told you about it, but I was there too. I followed them to document it on video. And as I joined them on -- and as I joined them on the elevator, one cop, literally, hit me without any verbal warning. The other cop pulled out a baton and swung it at me twice. All for coming here as a citizen of Philadelphia and to use my first amendment right for free speech. I came here again today to testify in front of you all with no guarantee that my safety would be protected today.
This is just to show how undemocratic this arena process has become. You literally have -- you literally are manhandling a 67-year-old woman. And I just -- I just wanted to come here and ask you, what kind of precedent are you trying to set the arena aside? Do the people of Philadelphia really feel safe to come in here and share their opinion? It took a lot of courage for me to come here, to come back into these four walls and into this room. And I really think that you all should think about that and think about the 70% of Philadelphia that really does not want this arena. Thank you.
Thank you for your testimony. Any questions or comments from members of the committee? Hearing none. This concludes the business for the Committee of the Whole today. I recognize Councilman Mark Squilla for a motion to recess the public hearing to Thursday, November the 21st, 2024 at 6:00 p.m.
It has a moving, properly seconded that the Committee of the Whole will be recessed until Thursday, November the 21st at 6:00 p.m. All those in favor signify by saying aye. Councilmembers: Aye.
The ayes have it. The motion carries that the Committee of the Whole stands in recess until Thursday, November the 21st, 2024 at 6:00 p.m. Thank you everybody for your participation. (Proceedings concluded.) C E R T I F I C A T I O N I hereby certify that the proceedings and evidence are contained fully and accurately in the notes taken by me of the above case, and this copy is a correct transcript of the same. _______________ Samanda J. Rios