COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE Room 400, City Hall Philadelphia, Pennsylvania Tuesday, November 26, 2024 10:18 a.m. PRESENT: COUNCIL PRESIDENT KENYATTA JOHNSON COUNCILWOMAN NINA AHMAD COUNCILWOMAN CINDY BASS COUNCILWOMAN KENDRA BROOKS COUNCILMAN MICHAEL DRISCOLL COUNCILWOMAN JAMIE GAUTHIER COUNCILMAN JIM HARRITY COUNCILMAN CURTIS J. JONES, JR. COUNCILWOMAN RUE LANDAU COUNCILWOMAN QUETCY M. LOZADA COUNCILMAN ANTHONY PHILLIPS COUNCILMAN MARK SQUILLA COUNCILMAN ISAIAH THOMAS COUNCILMAN JEFFREY YOUNG, JR. BILLS: 240963, 240964, 240966, 240967, 240968, 240969, 240970, 240971, 240972, 240973 - - -
Good morning, everyone. This is the public Committee of the Whole regarding Bill Nos. 240963, 240964, 240966, 240967, 240968, 240969, 240970, 240971, 240972 and 240973. I want to thank all of you for being here today. But before calling the roll, I would 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 being offered in Mandarin and Cantonese. Mr. Christmas, will you please take the roll.
Present. A quorum of the Committee is present and this hearing is now called to order. Mr. Christmas, will you please read the titles of the bills.
L. 465, No. 11 113, as amended, and authorizing the Director of Finance and other offices of the City to execute documents and do all things necessary to carry out the intent of this ordinance. And Bill No. 240964, authorizing the City of Philadelphia to organize an authority to be known as The Arena Services District Authority, pursuant to the terms of the Pennsylvania Municipality Authorities Act, all under certain terms and conditions. P. (the "76ers"), or another entity affiliated with the 76ers, under which ArenaCo or other 76ers related entity would sublease the Arena Site and cause an arena to be constructed on it, including a multi-purpose sports and entertainment facility and ancillary, accessory, and related amenities, improvements, and infrastructure (the "Arena") and agree to other related conditions; (5) upon the expiration or termination of the Sublease or other circumstances set forth in the Sublease, convey fee simple title to the Arena Site to PAID for disposition to ArenaCo; (6) grant, accept, amend, relocate and extinguish easements, agreements, conditions, covenants and restrictions encumbering or benefiting the Arena Site and any City owned property adjacent to the Arena Site for the benefit of the Arena Site to facilitate construction and operation of the Arena; (7) enter into a direct operating covenants agreement among the 76ers, PAID and the City, under which the 76ers agree to play substantially all of their regular season and playoff home games in the Arena; and (8) take all actions necessary and appropriate to accomplish the intent and purpose of this Ordinance; all under certain terms and conditions. Bill No. 240967, authorizing and approving the execution and delivery of a Service Agreement between the City of Philadelphia and the Philadelphia Authority for Industrial Development relating to the provision by the Philadelphia Authority for Industrial Development of certain project-related services to promote, among other things, the growth and expansion of business, commerce and tourism within the City of Philadelphia in connection with the development of a multi-purpose sports and entertainment facility, including an arena to accommodate National Basketball Association games, and family entertainment, community, retail and other uses; authorizing and approving the obligation of the City of Philadelphia to pay in full when due the Service Fee and other amounts payable under the Service Agreement and covenanting to make necessary appropriations for such purposes; and authorizing City officials to take necessary or appropriate actions to accomplish the intent and purpose of the ordinance, all under certain terms and conditions. Bill No. 240968, authorizing the revision of lines and grades on a portion of City Plan No. 307 by striking from the City Plan and vacating Filbert Street from 10th Street to 11th Street, under certain terms and conditions. Bill No. 240969, authorizing the revision of lines and grades on a portion of City Plan No. 307 by striking from the City Plan and vacating certain aerial portions of 10th Street between Market Street and Filbert Street, under certain terms and conditions. Bill No. 240970, authorizing CBL Arena, LLC. and its successor(s) in interest to construct, own, and maintain various right of way encroachments in the vicinity of 1001-19 Market Street, 1025 Market Street and 1001-25 Filbert Street, Philadelphia, PA 19107, under certain terms and conditions. Bill No. 240971, amending Title of the Philadelphia Code, entitled Zoning and Planning, by amending certain definitions relating to signs; creating an "Arena Area" within the "/CTR, Center City Overlay District" overlay; and making related changes, including a master plan requirement and changes to accessory sign controls; all in connection with zoning rules for a proposed arena in Center City; and approving a master plan for the Arena Area; all under certain terms and conditions.
Bill No. 240972, amending Title 14 of the Philadelphia Code, entitled "Zoning and Planning," by revising certain provisions of section 14-906, entitled "Market Street East Sign Regulations," all under certain terms and conditions. Bill No. 240973, approving the amendment of a neighborhood improvement district in the area generally bounded by, and including, 11th Street to the West, Filbert Street to the North, 8th Street to the East and Market Street to the South, with the exception of certain condominium units at 801 Market Street Condominium not included in the District, known as the Gallery Neighborhood Improvement District, to remove certain portions of such property generally bounded by Filbert Street on the north, 10th Street on the east, 11th Street on the west, and Market Street on the south from such District in accordance with the provisions of the Community and Economic Improvement Act, and under certain terms and conditions.
Thank you very much, Mr. Christmas. Before we get started, we just want to tell everyone we welcome you here today to speak on the proposed legislation regarding the proposed arena. We just want everyone irregardless if you are for or against this project to be respectful of all testimony and public comments from all of the individuals who are here today. We also have working with us to our left the Office of Civil Affairs, our Sheriff's Office as well as Philadelphia Police Department that will be working with us throughout this process, but we also expect for this to continue being a very spirited and lively discussion for a critical project that we are proposing in front of us today. I want to also acknowledge the presence of members Councilmember Bass, Majority Whip Thomas, Councilmember Squilla, the author of the legislation, and Councilmember Dr. Nina Ahmad. Mr. Christmas, will you please call the first panel.
Sabrina Maynard, Budget Director of the City of Philadelphia. (Witnesses approached Witness table.)
First and foremost, thank you. I want to congratulate you on your promotion.
And just state your name and title for the -- your new title for the record. Please begin your testimony.
Good morning. My name is Sabrina Maynard. I'm the City's Budget Director. I'm joined by Sam Rhoads from PIDC. Good morning, Council President Johnson and members of the Committee. We are here this morning to testify in support of Bill No. 12 240963, which amends the existing Gallery at Market East Tax Increment Financing or TIF District. The TIF District was created by Bill No. 150380, which was approved in June of 2015 to support renovations of the former Gallery now known as the Fashion District. Those renovations have been completed and the TIF District is operating as a retail mall with mixed office uses as contemplated. This amendment would remove the 1000 block of Market Street from the existing TIF District and leave the remaining portion of the district from 8th to 10th Streets between Market and Filbert intact and continuing to operate as a retail mall with mixed office uses. The amendment to the TIF is requested to facilitate development of a new arena to support home games for the Philadelphia 76ers and this will only take effect if the Arena project moves forward. Removing the 1000 block of Market Street from the TIF would mean that tax revenues from the block would no longer flow to the developer of the Fashion District to pay debt service on the bonds they issued to fund the Fashion District project. The parcel that would be removed from the TIF would be subject to negotiated PILOT and U&O payments. With respect to procedural requirements of the Commonwealth TIF statute, this hearing is taking place within 30 days of public notice and with both the City Council and School District having approved resolutions agreeing to participate in the amendment should it be approved by this ordinance of City Council. In closing, this requested amendment is a procedural companion to the several ordinances required to facilitate the proposed new arena for the Sixers and will only be effective if the Arena project moves forward. We respectfully request that you favorably vote Ordinance 21 No. 240963 out of Committee today and we are happy to take your questions.
Thank you very much. The Chair also recognizes the presence of Minority Leader Kendra Brooks. In your testimony you stated that removing the 1,000 block of Market Street from the TIF will result in tax revenues from this block no longer being directed to the developer of the Fashion District to service the debt on the bonds issue for the project. Could you clarify how much revenue would be diverted from the development as a result of moving this parcel?
Yes. My name is Sam Rhoads with PIDC. And the estimate through 2035 through the remaining term of the district is $3.4 million. The developer can expect to receive about 40.4 million under what we call the build scenario if the arena does go forward, and they would have received about $43.8 million by our projections if it does not move forward.
Once the proposed Arena parcel is removed from the TIF, the parcel will then generate revenue for the City. Could you outline a timeline for when revenues from this parcel will begin to flow to the City, and specifically will a PILOT and U&O agreements take effect? When will they take effect?
The PILOT will take effect, is estimated to take effect in 2033 under the state statute. It takes effect upon the land transferring into the public ownership, which is estimated to be in 2028 when the Sixers have completed the demolition. If they move forward, at that time it would move into the public ownership, the PILOT would take effect. Under the terms of the PILOT, under the state statute for the first five years to allow for that demolition and construction period, there would be no payments under the PILOT, and they would commence in 2033.
Is that the same for the U&O agreement as well?
The U&O payment would start immediately upon the occupancy of the arena.
Could you also detail the other types of revenue the City is expected to receive during the demolition, construction, operational phases of the arena?
Correct. Yeah, so those through 2035 again through the remaining term of the TIF District the City can expect to receive a net of $69.3 million -
Oh. Yeah, I'm sorry. That number includes all of the other types of revenue. So Liquor-by-the-Drink tax, which would go to the School District, in addition to the U&O, the PILOT. There's the amusement tax on tickets and all of the sales taxes related to the sale of merchandise and so on. We also included the estimate of parking taxes related to folks who would attend.
Okay. Thank you very much. The Chair recognizes Councilmember Curtis Jones.
Thank you, Mr. President. Good morning. Is it true that the primary economic development organizations in the city of Philadelphia are PIDC --
Could you speak into the microphone please for the stenographer?
Thank you, Mr. President. Is it true, is it safe to say that the two primary economic development organizations in the city of Philadelphia are PIDC and the Commerce Department?
If that is being true, what is the plan for Market Street East outside of the arena but dealing with the adjacent properties and what is the vacancy rate between Macy's and that site?
No, between -- on the other side of the southern side of the street from maybe 10th Street to Macy's?
Sure. Where we've calculated the vacancy rates are on the south side of Market Street, which I think is consistent with your question, from 9th Street through the 1100 block, and that is roughly I want to say 50 percent. I have to confirm with those numbers, but there's a high level of vacancy if you walk those blocks. And if you saw the presentation that our Director of Planning and Development Jesse Lawrence provided, there's a significant amount of boarded-up facilities there. And then the other point I wanted to make with the Gallery is that it's currently got 20 percent vacancy, so it's also experiencing a high level of vacancy in its current state.
So it's safe to say that that particular portion, commercial portion of our city, is pretty bad off. Is that --
I understand the technical term. Yes, it is not thriving currently.
So whether we approve this arena or not, what would be the -- and I go with the or not as well because everybody that is against this arena has yet to tell me what we do if we don't develop that site and how does that assist, spur development on the south side of Market? Is there a plan?
Yes. So a couple of things. One is that I believe that this arena provides the opportunity to develop Market Street and there's a couple of elements to that. One is that if you recall within the CBA agreement, there's an allocation to provide for a master plan which is called for under our community impact statement. It's for the City to put together a master plan and exercise both around Chinatown and Market East. In addition, I would highlight that unlike prior investments, public investments into Market East, including specifically the Gallery, in this case the developers of the arena likewise have those south side properties under agreement, so we have a unique opportunity to develop that collectively.
Can I have a point of information, Mr. Rhoads. I just want to ask, and I know the master plan is a part of the CBA, but I know there's also several different roundtables that the Mayor is convening. So even if there wasn't an arena, there would still be a master plan developed for East Market Street, I would think, that at least would come out of some of these roundtables that talk about the revitalization of Center City as well as I would think the vision of the Planning Department will be thinking proactively regarding this particular part of Center City; is that correct?
Yes, that's correct. And I think with the arena that creates an anchor around which, then you have some energy to plan off of and to redevelop that area.
Thank you. Chair recognizes Councilman Curtis Jones for his time.
Thank you for that, Mr. President. Whatever the decision of this body I would encourage us to bring to that roundtable discussion, SEPTA, and a security plan for that same area. And why do I say that? The other day several brave parents turned in their children from that attack. I was thinking of Councilwoman Bass about what do you do when the shooter lives with you. And we have to have a cohesive plan that includes SEPTA, that makes it safe, clean, reliable but also that we take control of our footprint downtown. We have been in discussions with several schools, which will not be named because they recently have been beset with these gatherings outside with young people fighting each other, attacking each other with these meetups. So whoever you're working with have to include those components. Whether or not it's a Sixers arena or whether it is a new rendition of retail, all of those components have to be in that plan. Thank you, Mr. President.
We agree with you completely. And while the arena is still many years off, we're already in discussions with both the Sixers and SEPTA and the Police Department around ensuring the cleanliness and safety of the area.
Just one real quick question. Macy's, what are we planning for Macy's?
I do not have -- speaking as PIDC, I do not at this point have anything on my desk in terms of a request for funding or anything like that with Macy's. So we would have to talk with the owner at this point. They have not reached out to us for any assistance, but we would be happy to talk with them.
Thank you, Councilmember Jones. The Chair recognizes Councilmember Jamie Gauthier. The Chair recognizes Councilmember Jamie --
Thank you, Council President. Good morning and congratulations, Ms. Maynard, on your appointment. Back in 2015 the Gallery became the Fashion District and the City saw it as an opportunity to "save Market East" with more jobs, shopping and reactivating the corridor. The Fashion District back then is what we are being promised that the arena will do today. Although this particular piece of legislation can be viewed as a procedural matter required by the Commonwealth, I do think that we can learn a lot from looking at how the City has approached economic development at Market East in the past, and perhaps consider how we can do better. Many of us were not in office when the current TIF was created, so let's start with why this TIF was originally put in place. During the initial presentation some of the promises made by the developer were, one, that they would pay $1.6 million to the School District annually; second, that they would generate $94 million in tax revenues via Use and Occupancy and Liquor-by-the-Drink taxes over 20 years; third, that this would result in a projected $1.4 million annual increase for the District in 2036, and last "thousands of jobs". How would you compare the Fashion District's performance against the original projections? For example, are there reports showing the value of diverted taxes for each year through 2024? Do we have a comparison of jobs projected versus jobs created?
Thank you, Councilwoman. When the TIF was created in 2015, there were a number of primary goals there. One is to keep in mind that at that point it was under public ownership, largely the Redevelopment Authority. And so, there's a number of goals that were I would have said did not meet the public eye and there are a number of goals that did meet the public eye. So one was that the City at that point had virtually unlimited liability exposure for maintaining the core and shell of that facility. So one of the things that we did with that TIF is that we were able to cap and limit the City's exposure for the Gallery, so that was one issue. Secondly, we were able to do that while maintaining the public access to SEPTA and other public transit facilities so we were able to maintain that. And then thirdly, we were able to put -- we were able to achieve what did meet the public eye as we were able to achieve or facilitate the reinvestment in that Gallery. So keeping in mind that typical malls get reinvested in, in terms of tiles, lighting and so on and so forth every three to five years, that mall had not been reinvested in, in over years due 21 to the complicated public-private 22 investment. 23 So there's a number of 24 different motives in creating the TIF, only one of which was the reinvestment. With respect to their performance and your specific questions on the tax revenue projections, the City and the School District have continued to obtain the base level values of tax revenues that were projected in 2015. The growth in those tax revenues was, in fact, under what the projections were, and of course there's a number of factors in that. One of course is COVID. Another of course is I'll call tectonic shift in retail and store retail across the country of which the Gallery was certainly part of that trend. So the growth projections are certainly under what they were originally.
Okay. What criteria do we use to determine if a TIF is successful from the point of view of the City and are there public reporting requirements that TIF districts must comply with?
Sure. The success -- whether or not it's a success depends on the specific goals, the public policy goals and objectives of the TIF. And primarily keep in mind that TIFs are put in place for pieces of property that are either blighted or underperforming. So generally speaking, it's receiving the investment of the construction itself, which we can check that box. We did in fact receive that over $300 million investment and the construction jobs that come with it. Secondly, we get a rejuvenated facility and we certainly were able to obtain that. And then as I mentioned before, we had other multiple sort of priorities there in terms of the public ownership and capping the City's exposure, all of which we were able to obtain.
Okay. Lastly, I would say given, you know, you noted some of the seismic shifts around how people shop now, COVID. There will always be seismic shifts. Given that, is it up to us to accept the projections and the numbers that developers put forward in considering these tax incentives or is there any change that we should make to our process? And that's the end of my questions.
Okay. Thank you very much. The answer to that is that the owner of the Fashion District is Macerich. Macerich is one of the largest operators of malls in the country. And so, they're very focused, as is the whole retail world on performance. When we do these projections, they go through a series of I'll call it filters in order to represent what we think is our best guess. And I'll be clear, these are estimates. We spell out in the original project plan in 2015, as we do here, all of our assumptions for the public to see. They represent input from the owner themselves so they are in the business of projecting forward what they think sales and other revenues will be, so we look at those numbers. We look at them vis-à-vis industry standards and also vis-à-vis information that the City of Philadelphia and the Revenue Department and so on have. So we're able to put them through a series of filters, I'll call them, to before we arrive at the numbers that we put in front of you. And in all cases we do try to be very conservative.
Thank you, colleague. Point of information from Councilmember Squilla. Then Chair recognizes Councilmember Bass.
Thank you. Thank you, Mr. Chair. One other point of information. If you remember when we did the TIF, one of the main things in 2015 was to alleviate the City of the maintenance obligations that we have, which was millions and millions of dollars, to try to keep that Gallery operating because it was under PRA Redevelopment Authority's hand, so it really -- not only the cost and taxes that they would be generating but the cost to the City that we had to constantly try to fix that and we weren't a great landlord, per se, and it would take us forever to fix things and do things. And so, that was another reason why to really alleviate the City of the burden and having the private company then own it and then be responsible for the repairs. And sometimes that isn't seen as part of why we did the TIF.
Correct, definitely under the tip of the iceberg. But we shifted the responsibility for all of the infrastructure to the private sector --
Thank you, Councilman. Chair recognizes Councilmember Bass.
Thank you, Mr. Chairman. And thank you, Councilman Squilla, for the clarification. And it's important information to put on the table. I just had really a couple of quick, very quick questions and I wanted to just say that from Councilman Jones' line of questioning about the amount of vacancy. And I know he used to run a little organization, PCDC, the other PCDC that used to do commercial development throughout the entire city so I know he knows a little something about this. But can you talk about -- and I know, Sam, you've been here for a minute. Can you talk about the price tag? How much have we invested in Market East over the years? You could give it in the last few years or the last years, but can you give us some sense of how much has the City of Philadelphia invested in Market East thus far?
You ask all 7 the tough questions. The short 8 answer would be I'll have to get 9 back to you on that. 10
But to illustrate it, the City if you think about the publicly-owned investments there along Market East, you have a number of course federally-owned properties. With respect to the City, the primary exposure really has been around the Gallery, which goes all the way back to the late '70s with the decline and suburbanization of the department stores, all of which had their headquarters and flagship stores there, the collapse of the transit system, the combination of the old Reading and Pennsylvania Railroads into SEPTA, putting that underground. So I'm going to say billions and billions if you think all the way back to what Philadelphia has done to completely make over a period of 50 years what its Center City looks like. And regardless of various thoughts or opinions on the Gallery, I personally view it as something that's very successful in the sense that it is a retail center that sits on top of the transportation network of Philadelphia and brings people in from all neighborhoods to do their shopping there. So very substantial investment over time.
Well, I can tell you that -- and it's funny because I heard Mayor Parker speaking about this yesterday, and I have a similar story, when she talked about what a big deal it was back in the late '70s and early '80s to come downtown and to go to the Gallery. It was a big deal. It was a big deal in our family as well. And as someone who went to high school in Center City, we were in and out of the Gallery all of the time and it was packed and it was successful. It was very successful. And, listen, shopping habits changed, people changed where they want to shop, how they want to shop. And so, I think that the Gallery actually succumbed to trends and changes that way. But I just really wanted to illustrate that we've made quite an investment in Market East. And so, we're at a pivotal moment. I don't think that the answer is to stop making investments in Market East. I think that we have to look at what we've already invested and build upon that investment so that we can make that part of the City, that part of downtown Philadelphia as successful as it possibly could be. And I also want to follow up on something else that Councilman Jones mentioned earlier, which was that I haven't heard anything in terms of an alternative plan like what's the opposite plan if it's not the arena, if it's not 76 Place, then what is it? You know, help us help you, but I'm not hearing that. And so, I just wanted to ask those questions about the investment that we made thus far. But I'll come back around for more questions. Thank you, Mr. Chairman.
Thank you. Chair recognizes Councilmember Brooks followed by Councilmember Jones.
Thank you so much. So I have a question about the proposed Arena Services District and the CBA. The Arena Services District is financed by 8 million in the CBA. If this passes 9 today, does it lock us out of the 10 $50 million discussion around a CBA? 11
That 12 question might be better put to the 13 next panel. We're specifically 14 focused on the Tax Increment Financing District.
Chair recognizes Councilmember Squilla for a point of information.
So this doesn't deal with the term sheet, doesn't deal with the CBA. All it does is remove the portion of that one block of the Fashion District from the TIF. That's all this does. It just removes it from the TIF. That's it. If the casino -- casino, if the Arena legislation doesn't pass, this goes away. All this does is removes them from the TIF because it takes them out of the benefits they're receiving on that block. So is that clear?
Councilmember Brooks, would you like to start your time over?
Okay. If you want to come back for a second round, let me know.
Okay. Thank you, colleague. Thank you, Councilmember Squilla. Chair recognizes Councilmember Jones followed by Councilmember Landau.
Thank you, Mr. Chairman. My question is a Part 2 to what I asked before, but it's more dealing with SEPTA transportation plans for that particular strip. If I could -- I still see you. Thank you so much.
Yes. Mike Carroll, Deputy Managing Director for the Office of Transportation and Infrastructure Systems.
So whether or not this body takes the step to approve or disapprove this project, but let's suppose that we go forward with it, I am unclear about the plan for a safe SEPTA ride to the facility. Every planning study suggests that we have to really rely on mass transit for this to be successful. We cannot park our way, drive our way through a successful development of this facility. Tell me how we address safety. SEPTA is in an -- they already talked about somewhere close to a $50 million differential. I think it might have been a 14 million differential between what 15 they would need just to keep up with 16 ridership to go to the facility. 17 But tell me how we're planning to 18 work with the City of Philadelphia 19 Police Department to make that 20 experience for someone who comes from the city, but particularly people that we're attracting to spend money here, how they do that safely in conjunction with games? How do we do that?
Okay. So there's going to be work on that from today through the 30 years of that arena being in operation. So what the main principles are I think that SEPTA wants their system to be safe for everybody all the time. That's the goal. And there's a lot of work that's going into that now. And I encourage people who feel like they have not been safe or have feelings about SEPTA to give SEPTA a chance. Come back to SEPTA, try SEPTA. I think they'll see there's an improvement. The ridership numbers for the past year are showing that people are coming back to SEPTA. And I just want to set the table with that, that that work is going on now. With respect to the arena, with respect to games, there's a couple things that I would point to. The first thing I think is that in the work that SEPTA did which they presented to City Council, their focus for people coming from the suburbs is how they get on Regional Rail and how they get off at Jefferson Station and how that capacity is there in the Regional Rail system for the (inaudible). I think that's where there's some questions that need to be answered. There's work that needs to be done. The fact is though that among the modes that SEPTA operates, Regional Rail has the fewest problems and probably the best perception in terms of safety, cleanliness, the issues that relate to quality of life and people's comfort using the system. So that's not to say that that answers itself, but it gives us a better position to start from to make the improvements that I think you're speaking to and people would want to see so that people who are visiting the city have a good experience. A lot of what needs to take place is how the arena space Jefferson Station is managed. And I can tell you that there's a lot of focus not just from SEPTA in staffing up with people who will act as ambassadors, help people get their direction, you know, manage the crowds on the platforms, but also the Sixers will have personnel that are in the area doing that. Philadelphia police will have a presence there, so we'll talk about this in the next bill 19 conversation. But the main focus has to be for all of these resources to be coordinated and working together with that intention. And so, the remaining pieces I think have to do with people who are on the subways, the Broad Street Line, Market-Frankford Line who we might expect are coming from a little bit closer within the City, but also folks who don't have quick access to Regional Rail but may think, okay, it makes sense for me to drive to one of these subway or El stations, park in that vicinity and catch a ride there. And, you know, frankly when I go to see an Eagles game, that's how I travel. I'll go to the Broad Street Line, get on the train and work my way down to NRG Station and walk from there. And what you find is that there is sort of safety in numbers in terms of that crowd of people. They got their jerseys on. They all know where they're going. The misbehavior you see when there's not a lot of people on the train tends not to be an issue when you're crowded with fans and everybody's got the home team spirit and they're going to catch an event. So that does not mean there isn't work to do, and I think that goes back to the thing I was saying in the first place. SEPTA, working with Philadelphia Police, working with partners have to secure those station areas. And so, we need to get a sense for what those patterns of travel look like on those origin stations as people are on the outskirts of the system working their way in, and we have to make sure that there's effective police presence there, that there's effective management of the situation there. Some of those stations are going to more likely for folks that want to park and then ride the system in.
That's what I really was looking for. I know when we did the South Philadelphia stadiums there was some thought given to how people would take mass transit from as far away as Fern Rock down to Patterson. I want that same emphasis given for people who might want to get on at 69th Street, want to get on at 30th Street, want to get on at 40th Street to take that ride down there. And it's going to require both security and vigilance above ground and below, above ground and below. And I think if we are truly trying to make sure that if this project is approved that people feel comfortable before and after a game going to our restaurants, shopping in our commercial district, that they need to feel that when I'm done eating, when I'm done shopping, there's a reliability of safe transportation so I can get back to my neighborhood or my car. So that plan irrespective of who pays for it has to be thought out. Thank you, Mr. Chairman.
Thank you, Councilman. Chair recognizes Councilmember Landau followed by Councilmember Lozada.
Thank you. So my questions are both for Sabrina and Sam. You rattled off a lot of dollar amounts and stats in the beginning and I thought they were in your written testimony but they're not, so could you go over them again to know -- what I'm looking for is you were talking about the tax benefits. I think you were talking about the original TIF and what the tax deal was there and also what the tax benefits will be. So I'd love to hear again the numbers you both said. And then I have a follow-up question.
Certainly. Thanks very much and apologize for rattling those off. They've been swimming around in my head for too long so I appreciate that.
The question that I was responding to initially was around what would the City expect to receive in tax revenues if the arena moves forward, and then what would be the impact to the developer of the mall in terms of their TIF funds. So let me just walk through this piece-by-piece. So what we estimated and projected is what I'll call the build scenario and the no-build scenario. In other words, what happens if the arena does move forward and what could the City of Philadelphia expect to receive in tax revenues if it does not move forward. And then we subtracted A from B and that's the net benefit. So in the build scenario you're moving one block from the TIF District, one block from the Fashion District. The Fashion District is now concentrating in two blocks as opposed to three, about 900,000 feet instead of about a million three. In addition, then the block that's being freed up, the arena is being built. So under that build scenario through 2035, and we chose that number because that's when the current TIF District ends, so through 2035 if the project moves forward, the City can expect to get about $73.3 million in all of the various tax revenues for that. If we do not move forward, the City can expect to receive about $4.1 million if it remains in its current status. So the net positive to the City through 2035 is about $69.3 million.
That's helpful. And we have 2035 as the end. Why also would the remaining parcels of the Fashion District remain under the TIF if it's going to have new ownership or at least a combination of new ownership?
From a legal perspective it won't have new ownership. So the entity that owns the Fashion District will continue to own the Fashion District. It's my understanding that they may take in a new partner in terms of partnering with the Sixers, but it's effectively the same entity. And make no mistake, Macerich is a very substantive owner of malls and retail space across the country so they will continue to own and operate that.
Okay. We might disagree on whether taking in a new partner means new ownership, but I hear you. Because they are getting a tax benefit then on the two-thirds remainder through 2035. That's the point.
The tax benefit, the TIF that was put in place in 2015 will continue for those two blocks, that's correct.
Thank you, colleague. If you need to tee up for a second round, feel free to do so. But colleagues, just keep in mind this is only the first panel of about four that we have scheduled for this morning. Chair recognizes Councilmember Lozada followed by Councilmember Young.
I just have one really quick question. We've made a lot of requests from the School District of Philadelphia. We've asked for improvement plans, investments. What impact will the amendment have on the School District's budget or financial planning given their participation in the TIF adjustment?
Thank you for that, Councilwoman. And that question was asked last week when we presented in front of the School Board as well. They of course were focused on what their revenues are. So the numbers that I just went through with respect to the City, with respect to the School District through 2035, the School District can expect to see a little bit of positive revenue. They in the no-build scenario they could expect to receive about $43 million. Under the build scenario they can expect to receive a little over $48 million. So it's about a net $6 million benefit through 2035. The benefit to both the City and the School District really comes over the 30-year term of the Sixers play. The challenge with measuring it just through 2035 of course is that you're experiencing the period of time when the existing facility's being under construction, demolished and under construction so you have a dip in revenues during that time. So over the 30-year play term of the Sixers and the construction in that scenario, the School District can expect to receive about $153 million.
Thank you, colleague. Chair recognizes Councilmember Young followed by Councilmember Ahmad.
Thank you, Mr. Chair. Just a quick question. And understanding that this is just a procedural vote that's required if something will happen, will we have to remove the TIF let's say for example if a hospital wanted to develop on the site, right, or such an entity like that. Would the TIF have to be removed because of that particular type of development as well?
Yes, if there's any significant redevelopment or alteration from the original plan, then we would anticipate removing that site from the district, yes.
Thank you. Just wanted to get some clarity on that. Thank you.
Thank you, colleague. Chair recognizes Councilmember Ahmad. And after Councilmember Ahmad, that will be it for the first round of questions unless someone has a burning question that didn't get an opportunity. Councilmember Ahmad.
Good morning. Thank you for your testimony. I had a quick question about the costs incurred by the City to facilitate this process, this Arena project including this reduction of the TIF. Also to understand, what is the appropriations coming to PAID from us to you and basically all the, you know, maybe they're incidental but the expenses, the legal, the departmental, all of it together, how much is it costing the City to get this prepared for the arena to proceed?
To date, nothing. And the conversation that I think has been a little bit in the public eye is this notion of the Sixers funding -- well, let me take a step back. So the work that we've done to get to this point involves the various studies that you've seen have been undertaken. And so, we ran requests for proposals. We selected consultants for the community impact --
Pardon -- the Sixers did. So the Sixers provided funds to PIDC, which was held as a blind fund, so the Sixers had no input with respect to the RFPs, the selection, the work or the outcome. That was completely managed by PIDC in partnership with the City of Philadelphia. So all of the plans and the structuring and the work that got us to this date was funded out of that pool.
And what will the City be paying PAID? There is an appropriation piece, right. What will be that payment?
That is projected also to be nothing. So if this project is approved and we move forward, the Sixers move forward with constructing the arena and then operating it, you're correct, PAID sits in the middle of that. The City owns the land. They lease it to us. We sublease it to the Sixers. Built into that transaction is rent from the Sixers to PAID to cover our cost of administering that lease over that 30-year period of time. So we would not expect to incur any costs from the City. You're correct however there is within one of the ordinances what's called the services agreement, which effectively backstops if there are any costs that are -- again, there's none projected. But if there do end up being costs under that lease to PAID, then we would look to the City to fund that.
So we would be paying -- at the end of it we would be paying whatever cost you incur would be passed onto us?
And in a situation if as a clawback provision if they were to leave early or we were to do something outside of what the agreement is, is there -- this is not including the PILOTs and all of that, what we have lost by putting a PILOT in. Is there a dollar figure or you're saying there's no cost incurred pretty much -- just going beyond the record, there's no cost being incurred in order for this TIF to be reduced and for the parcels to be ready for the arena to be built on this new aggregated space? So no 12 cost incurred to the City in order for that to happen?
Okay. I just wanted to be clear we're not spending any money to do this.
Thank you, colleague. Quick questions for Round 2 and then we have to move on to the next panel. Chair recognizes Councilmember Gauthier.
Thank you, Mr. Chair. I have one more question for the panel, but I also want to chime in quickly on the conversation started by Councilmember Jones and Councilmember Bass. In the most respectful way possible, I too think that we should be solution-oriented when it comes to Market East or any other corridor in a city that needs economic development. However, I think it's challenging to ask community members what's their alternative when they're coming up with critiques. I think it is, in fact, the job of PIDC and the Planning Commission to offer a vision, a master plan, a vision and economic development plans for our important corridors. And unfortunately, we're in this position of only considering the one thing, right. But a master planning process might deliver other things that we can consider. So just wanted to add my thoughts in the most respectful way as possible.
Chair recognizes Councilmember Bass for a point of information.
Thank you. So while I do respect your opinion, I do disagree strongly and I'll tell you why. The idea that government, that we in these chairs have all of the answers is a fatal flaw in my opinion. We need to ask everyone what do you think, what do you want to see, what is your opinion. The idea that we hold all of the answers is incorrect and dangerous. We need to hear from everyone, and that doesn't mean that because you come and testify and you're opposed that you have an answer. But to not ask the question I think is a dereliction of our duty as members of Council. So I just -- with all due respect.
We actually are in agreement on that point. I became a city planner because I think it's important to empower community members to build their own vision for their neighborhoods.
I just think this forum makes that a little difficult. That's why I've asked so many questions about the sequencing of the master planning process. In my experience the plan comes, then the idea for the project comes and then you move forward. And this kind of seems a little bit a cart before the horse. But I'm going to get to my question, Mr. Chair. It's going to be quick.
I'm sorry. But can we be very, very quick because you just used your whole time right there.
And I have to let Councilmember Bass offer a response, but then we have to move on, right. Councilmember Bass, please.
And I certainly understand what you're saying. But at the same time if we are going to, you know, we're constantly accused of not listening to the people and to not ask them this very important question, again it's irresponsible not to at least ask for folks to come and to expound upon what is their vision for that community, and really because the Gallery is located in such a -- well, the Gallery. I'm back to that. But the location of what would be the 76 Place is in such a central location, citywide folks should be able to weigh in and say this could be a vision for it, that could be a vision for it, these are ideas that people want to bring to the table and there's nothing wrong with us as members saying to them, I want to hear what you have to say. Isn't that what we are always saying that we are all about, listening to the people. And if we don't listen to the people now, when are we going to start. And so, I just want to put that out.
Thank you. They've been doing a lot of weighing in, but I'll move to my question.
Mr. Rhoads, you acknowledged earlier that the projections we had for the original Fashion District TIF fell somewhat short of the actual outcome. So given that economic conditions are always going to be variable and it's impossible to predict the future, what kind of safeguards can we build into future tax incentives around projects including this arena project to make sure we're not giving away public resources to projects that miss their benchmarks? In other words, what kind of clawbacks might we implement as we move forward with these big projects that often time include big incentives?
Thank you. That's a great question. And the way in which Philadelphia has used Tax Increment Financing in specific effectively is self-enforcing, and a lot of jurisdictions across the country, counties or cities, guarantee the tax revenues. So to the extent the tax revenues are short, they have to make up the difference, in which case you'd get into your question of the notion of a clawback. Philadelphia has never done that. We as a matter of policy offer up the tax revenues that are generated, whatever they might be, whether they're what we estimated, whether they're higher or whether they're lower, to the developer to repay the portion of the debt taken out. If the tax revenues are lower, then the developer receives less money. They are effectively the one who guarantee and backstop that debt. So to the extent that the tax revenues are insufficient to cover the debt, they have to guarantee it. So we effectively have in -- I'll call it the Philadelphia model, a self- enforcing clawback of the Tax Increment Financing. And I would offer to say that we've been well- served in that respect.
Thank you, Chair. Two questions: One, I wanted to clarify something Councilmember Lozada asked about the School District income that would come from the taxes for the School District. You said if we build it, it would be 43 million a year -- I think I have it backwards. No build, 43 million; build, 48 million, right. So 6 million additional dollars per year if we build it, right?
And then you said over a 30-year term it would be 153 million total realized for the School District.
But 6 million times 30 years is 180 million. Where did you come up with the 153 million number?
The $153 million is in the detailed projections, so it's literally going tax-by-tax. So the taxes that benefit the School District are its portion of the PILOT, $2.8 million a year, the U&O tax and the Liquor-by- the-Drink tax are the three taxes that primarily benefit the School District. Those were projected through the 30-year operations of the arena. And that totals to that $153 million.
Okay. And one last sneaky question to put in. If the TIF is in effect until 2035, is there a renewal clause in the agreement that it would renew and how could we guarantee that it's not renewed or only renewed, if needed?
The state legislature took care of that for you. So the Pennsylvania TIF statute does not provide for renewals. It really is intended to be a one-shot deal for up to 5 years in order to encourage 6 reinvestment in a blighted or 7 underutilized property. So that 8 will not be renewed. 9
Thank 12 you. Thank you again for our first 13 panel. Sabrina, congratulations 14 again on behalf of members of City 15 Council and we look forward to 16 continuing to work with you to -- 17 okay. I'm sorry. 18 Chair recognizes 19 Councilmember Young. 20
Thank you. Just one more quick question. So you said the 43 versus the 48 million over the lifespan. Is that 43 and that additional 6, does that include the other taxes that you've come up with, this final number. So does that include the U&O, the Liquor-by-the-Drink, the current stuff like that that go to the School District as well?
Yes, I'm sorry. I missed the beginning part of your question, but the taxes for the School District and for the City include projections of all of the individual taxes.
Yeah. But we just want the School District portion of it, right, because to my colleague's point she did 48 times 30 or whatever and it wasn't that number that you said. But you've included in your final number that 6 million times the 30. You've included the anticipated U&O, Liquor-by-the-Drink, et cetera. Did we account for the current U&O, Liquor-by-the-Drink for the next 30 years if it currently stands as is? Is that included in your projection as well so we get an accurate comparison of the two?
I hear you. Thank you. So the first set of numbers through 2035 is a net of what the City or School District would have received anyway. So that's $6 million -- the notion that the City -- I apologize. The School District would receive $43 million if we did nothing. That's the projection through 2035. If we move forward, it could be expected to receive 48 million. So that $6 million is the net through 2035. Then the $153 million is if you extend that out through the full 30 years.
And that additional -- so that 153 million will be extended over the 30 years. So we will only be including let's say an additional 30 years, we just times that 43 by 30, and that's all we would get? We would not get any additional revenue for that particular 30-year period? We would not see an increase in U&O, we would not see an increase in Liquor-by- the-Drink, we would not see an increase in those other taxes that go to the School District as well?
The PILOT agreement and the U&O payment are agreements, so those are scheduled with escalators. All of the other taxes related to the activity, the amusement tax coming to the city of Philadelphia related to tickets, the Liquor-by-the-Drink tax, the beverage tax, all of those are based on volumes. All of those assumptions are in here. Those will be -- we have in here what we think are reasonable conservative assumptions. The actuality could be higher. The actuality could be lower, but those are our assumptions.
Yeah, but without -- so you're making those assumptions. But without it, are there assumptions being made that the growth will be stagnant in those taxes or can we assume those other taxes will increase as well over the next 30 years?
Chair recognizes Councilmember Squilla for a point of information and then unfortunately, colleagues, we got to wrap up this panel. I'll let you finish your line of questioning.
For the current Gallery now, so what he's saying is those projections, are you projecting those numbers for the current Gallery to compare that to the projections of the arena?
So for the Gallery we projected out, we have the current information. That got projected out as is. Yes, I'm sorry.
Thank you. Thank you all. And as I was saying earlier, Sabrina, congratulations on behalf of the members of the City Council. We look forward to working with you. Mr. Clerk, will you please call the next panel for today's hearing.
Mr. Mike Carroll, Managing Director for Transportation and Infrastructure. (Witness approached Witness table.)
Mr. Carroll, good morning, sir. How are you? Thank you for being here today. Please state your name for the record and you may proceed with your testimony.
Again, I'm Mike Carroll, the Deputy Managing Director for the Office of Transportation and Infrastructure Systems. Good morning, everyone. Council President, Councilmember Thomas and members of the Committee of the Whole, my name is Michael Carroll and I am the Deputy Managing Director for the Office of Transportation and Infrastructure Systems, which we call OTIS. I'm here to testify on Bill No. 240 --
Mr. Carroll, I apologize. You're probably a little taller than the person before. Can you just start all over. State your name for the record and begin with your testimony. We apologize.
Okay. Good morning. My name is Michael Carroll. I am the Deputy Managing Director of the Office of Transportation and Infrastructure Systems also known as OTIS. I'm here to testify on Bill No. 240964 to organize an authority to be known as the Arena Services District extending from Spring Garden Street to South Street and from Broad Street to 8th Street as amended. As Mayor Cherelle L. Parker stated in her decision to support the arena proposal, the corridor along Market Street has been under stress for decades and this project supports the Mayor's vision to turn that around by bringing investment and activity to the street and catalyzing vitality that can bring benefits to the entire city. The Parker Administration does acknowledge that many community concerns around the arena project are substantive and legitimate. At the same time, Mayor Parker asserts that the challenges associated with building and operating the 76 Place arena be put in perspective and that the Administration and the proponents of this project should be given the opportunity to address those concerns in good faith. We recognize this will require a group effort. That means building institutions that are not only guided by community voices but also include community representation in directing resources and in holding the project accountable. Therefore, as the Administration has come to appreciate the range of insightful questions raised by City Council over the past few months, we are also grateful for thoughtful ideas that have emerged from our discussions. With that in mind, we strongly support Bill No. 240964 introduced by Councilmember Squilla. Based on feedback obtained through the public engagement, we believe this area spans the potentially impacted parts of Market Street corridor, Chinatown, Washington Square West and Midtown Village. This bill is an auspicious step towards tackling community concerns and promoting both quality of life and a welcoming business environment in the context of construction and operation of the arena. Formally establishing an Arena Services District Authority will have a direct benefit in advocating for the interests of neighbors and businesses when routing issues to accountable public agencies as well as to the developers. In this respect, the Authority fills the need for a single convening and coordinating body that is exclusively focused on the needs of the existing communities. Furthermore, the Administration agrees with the bill's authors that the Arena Services District be funded through the Community Benefits Agreement. This will allow the Authority to directly fund services and improvements within the district boundaries. In that fashion, a complete mechanism is created to take the most meaningful feedback we have heard from both supporters and opponents of this project and then to turn that into focus plans. Moreover, this ensures that such plans are kept up-to-date and translated into sustained action. While one can anticipate, services will focus on cleaning and greening as well as promoting safety and security. The Administration sees real wisdom in the approach taken in crafting this bill, specifically that the services undertaken by the authorities should be determined by the members of the communities and then memorialized in a formal Authority Services Plan. This process will be transparent and it will involve engagement culminating in a public hearing process and it will require approval by City Council. The need to center all this work on the community is why the composition of the board is so important. The Administration supports an amendment to this bill 21 to establish a seven-member board that will include no less than four members who live or work within the district boundaries and have no other conflicting affiliations. The Authority necessarily will play an important role in managing the impacts of parking and traffic as well.
6 The Administration 7 strongly supports the designation of 8 a Traffic Oversight Committee under 9 the Authority that will include 10 representatives of the Registered 11 Community Organizations, businesses 12 and City Council to ensure a tight 13 feedback loop for planning and 14 advocacy. 15 The committee will also 16 convene a range of professionals 17 representing SEPTA, PATCO and 18 Administration departments 19 responsible for transportation, 20 public safety and emergency 21 services, which will support 22 planning and allow for direct 23 management of traffic and parking 24 concerns. I'm especially grateful, as characterized in the bill, for the Traffic Oversight Committee having a clear role to satisfy the requirements of the traffic event management plan that will be required as a condition of the permits necessary for the arena project to advance. By consolidating this work within the Arena Services Authority, duplication of roles and a confusion among accountable parties will be avoided. The work of the Traffic Oversight Committee should commence as soon as the Authority is incorporated by Council and the members can be appointed. This is because the bill requires the committee to develop plans to manage the impacts of demolition and construction. The committee will then adopt traffic management plans to coordinate transportation activities in the course of the arena's operation. When the arena is up and running, we anticipate that the Oversight Committee will coordinate the scheduling of events to minimize conflicts and assist in managing the parking demand as well as the supply of new parking. To summarize, we commend Councilmember Squilla and his staff for authoring this bill, which reflects thoughtful and thorough consideration of the challenges involved in constructively challenging public feedback into effective ideas. As we continue to engage with City Council and with the public around the proposed arena, we feel this bill embodies the best approach to addressing the specific concerns ranged around safety and security, construction and transportation impacts. We support this bill and encourage Councilmembers, community members and other stakeholders to get involved in making this approach a success. Thank you and this concludes my testimony.
Thank you for the testimony. Chair recognizes Councilmember Squilla followed by Councilmember Gauthier.
Thank you. Thank you, Mr. Chair. And thank you, Mr. Carroll, for that testimony. As we were looking through the initial introduction of the legislation in the CBA, we really thought it was important to work with the Mayor's office and Council President to pull together an Arena District which this Authority becomes and the amendment also, we've added the boundaries down from we heard Wash West who testified earlier from Spring Garden. It was stopping at Pine, and now we'll go down to South Street from Broad to 8th. Those boundaries are basically as requested by people from within the community. The biggest thing, as you mentioned, is the creation of the Transit Oversight Committee that the Authority will be able to review with PennDOT approval. PennDOT will have to approve any plans that are set forth. And so, it's important to make sure that as there are three phases of the plan that you mentioned during demo, during construction and then during events if the arena is built. The key I think is that it's going to be reviewed by the Controller's Office. It's required to be reviewed by the Controller's Office to see if we meet those goals. And then the Authority would then go back to the committee to make sure we have proper changes, but what we would also like to do, which in the term sheet whereas if we do not reach our goals, we've heard this over and over again, what happens if you don't reach 40 percent transit, public transit, what happens if we have gridlock there, we would like to have a provision where -- right now the Sixers have agreed to pay first year of transit passes. This has not been agreed on yet. But I mean, as we still work on our term sheet, as we still work on the CBA and look to add additional things, I think it's important to say, hey, listen, there's a responsibility for all of us. If for some reason we do not meet the 40 percent goal for that first year and the Controller comes back and tells us that, then somebody has to be accountable and then the Sixers would have to pay or the Arena folks have to pay another year of transit tickets and every year after until you reach that goal. There has to be some type of provision in here where we are held accountable as a City and as the developer to make sure that happens. Again, that is not part of the term sheet at this point. We want to make that part of the term sheet. There has to be a provision in there where there's accountability. Planning is always great, but we know that actual activity sometimes takes a different track than a plan. And so, I appreciate your involvement in working, the Administration and the Mayor's office for supporting this arena District. I think it's really important to give the autonomy to the people who live in the community, and that's why a majority of community members was also important because they should have a say on how that money is being spent and what resources they think they need to spend that on as the impact on their surrounding community. And it's not us, the City, telling them, but they will have a plan in place. And the Municipal Authority is created from this. Obviously, if the arena legislation doesn't pass, the municipal authority will not move forward in that case. But just in case it passes, this Authority will allow the community to have more of a say and the resources to do it. So thank you.
Thank you, colleague. Chair recognizes Councilmember Gauthier followed by Councilmember Lozada.
I have some questions about traffic management. I'm sorry if I missed some of this in your testimony. The Civic Design Review Committee asked 76 DevCo to submit an updated traffic plan. Does the Administration expect that the Traffic Oversight Committee will provide that plan or is the Traffic Oversight Committee providing revisions to the updated 76 DevCo plans? And also, what kind of power does the Authority have to enforce whatever traffic plan is proposed?
Okay. So I'll try and break that up. So the developers are responsible for obtaining the permits that they need by submitting a traffic impact study, and they're working through finalizing that based on comments from PennDOT, from the City and from SEPTA. So the public sector sides come together and we have compiled questions and comments from revisions that we want. That process is still under way. PennDOT basically manages that process and that will have to be complete before anything can proceed. Now, the legislation that we're looking at now contemplates what I'll call a traffic management plan. That traffic management plan can check the box in terms of adopting the Sixers traffic event management plan, which is going to be a requirement of the permits that they need from PennDOT. So they can become one in the same thing. The Sixers have to draft it up. It can be basically incorporated into the work of this Authority and then owned by this Authority from that point moving forward. So that event management plan is going to describe the things that need to take place when there's a game, when there's a concert, how staff are deployed, how we manage the situation, what's closed, what's open and basically provide the framework for the details that happen each night. The enforcement of that then falls on staff that are brought on board. So we've talked about that being something that the Sixers are going to play a role in but also the Philadelphia Police Department. And so, the Philadelphia Police Department will coordinate just as they do in the Stadium District that sort of day of, the preparations before then and then the shutdown after events. So they have complete authority to control the street, to manage traffic, to give tickets, to have people towed, to do what they need to, to make sure that things operate smoothly.
Thank you, colleague. Chair recognizes Councilmember Lozada followed by Councilmember Ahmad.
Thank you. Thank you for being here this morning. You and others in the Administration have consistently said that you hear the community's concerns. Today you said that the concerns were substantive and legitimate. If you had to choose the top two most serious concerns that you all have heard from the community, what would they be and how are they being prioritized and how are they being addressed, right, because I've talked to multiple groups. We've seen multiple groups come in here and consistently the message is different. They are saying they're not hearing from the Administration. They're not being heard. The information that we hear here is not actually getting on the ground and into the neighborhood. So what is the Administration doing to ensure that those concerns are really being addressed by the people that would be impacted the most?
Okay. So just to answer right away, I think the two things that come up the most that we really need to think about are what I'll call quality of life and then traffic. Okay. And I also want to say we hear the concerns. I think the thing we're really hopeful for is that we're talking in terms of the right perspective, the right magnitude and then have some respect for the ability to manage these situations and not just be overwhelmed by them and focused on just the negative outcomes that we're all trying to work to avoid. So if I wanted to talk about quality of life, I think the perception I think is that it's going to be kind of like a madhouse, there's going to be a lot of security issues, there's going to be litter all over the place and that it's going to really diminish the feel of the existing neighborhoods when this is up and running. And so, that's going to be an important focus of the Arena Services District to really channel those issues and make sure that, one, there's plans in place but also that there's infrastructure in place in terms of actual investments and things like lighting and cameras, but also to make sure that institutionally it's seamless, that when there's an issue that the community raises, there's people that are on the board, there's people that are on these committees that are hearing that directly. Council will be involved in hearing that directly, and there's a direct line between those concerns being raised and the people who are accountable to go manage and take care of those, and there's resources to take care of those. We've talked a lot about traffic. I want to be clear I think that the traffic situation requires focus. It requires work. But as I was saying last night, I think it's important that people not kind of get confused with the whole range of things that take place around the stadium complex with what's actually likely to happen here. So if you think about an Eagles game, it's about 70,000 people who are in the stadium. There's tailgating in basically every lot that's available adjacent to Lincoln Financial Field. That's like four or five times the magnitude of what we're talking about in this location around 76 Place. There's no parking lots here so there's not that sort of tailgating feel you're going to have. It's going to be contained in the building and the uniformed police, other staff are going to make sure that that's all within the building and then the flows out of the building and into the building are managed. The traffic situation does require some investment and attention. But in general, that perspective is important for people to understand. And that's what we're here to do is to make sure when we convene this Authority we have the board they can communicate both ways to make sure people have both a channel for their feedback, things we haven't heard even yet, but also that there's some body that's empowered to generate the ideas to make sure that the work has taken place to manage that.
But what are you all doing to specifically get the information to those that are on the -- what are you all doing to specifically get the information to those that are on the ground, right? And I say this because I've experienced, right, in the 7th when we have legislation or policy that some folks don't agree with, we get rooms full of folks that are making so much noise that those who are impacted the most don't have a voice. And so, what are you all doing to really get the information to those that are right there that are going to be impacted? When all of these people go away and this arena is there or the changes made to that specific neighborhood are made, those are the folks that are going to be impacted. They stay behind. What are we doing very specifically to knock on their doors and make sure that they are heard, that we're hearing them?
Okay. Well, I mean I look forward to the Mayor's town hall going to the 7th District hearing directly from people. Those lines of communication are not going to close when the arena is being demolished or constructed or when it's in operation. I think there's certainly an opportunity for us to keep working with Council. So as I mentioned, Council will be involved in this Traffic Oversight Committee and there's an opportunity for folks who have perspective outside of the district to be represented in the board as well. And so, I think the fact is that we do rely on the systems the City has in place to channel those complaints on an ongoing basis under routine circumstances still being in effect, and they're not being like a wall between resident/community feedback concerns and what this body is doing. Instead it should be fluid. That stuff should come into this body. It will be independent effectively from the Administration, although both the Mayor will have appointing authority and City Council will have approval authority in that process. But it's not going to close off that conversation as things move forward. But I really want to reiterate the fact that this has to be a living process. I don't think it's going to work for us to assume we know everything now and then walk away and just assume it's going to keep working. It has to keep going.
Thank you, colleague. Chair recognizes Councilmember Ahmad followed by Councilmember Young.
Thank you, Chair. Good morning. I think it's still morning. Thank you for your testimony. In your testimony you said the composition of the board for this new body will have no 8 more than four members who live or work within the district boundaries and have no other conflicting affiliations. Could you elaborate on what that means?
Yeah. So no fewer than four, just to be clear. And then what would be conflicting is, for example, somebody who lived in the district and worked for the Mayor's office or lived work for the --
Worked for the Mayor's office or lived in the district and worked for the Sixers or one of the concessionaires in 76 Place because we don't want people kind of advocating for other interests aside from those which are really the core interests of the existing communities today in the area.
And will it include people who have businesses there but don't actually live there?
Yeah, that's the objective. And then certainly when we're talking about the Traffic Oversight Committee their specifically focused on the businesses because that's where a lot of the existing traffic, parking issues are going to be focused.
And I noticed -- are parking lot owners going to be included in this body?
I can't answer that. I think that has to be deliberated. You could make the case that parking lot owners bring a certain amount of expertise to what the issues are today. They certainly are going to be invested in the outcomes of how this all works so there's certainly a case to include them, but I wouldn't preclude future conversation or deliberation about that.
And in terms of you will potentially even think of new parking lot, this will be from the Traffic Oversight Committee, right, in considering new additional parking. I just wanted to know how the current parking which is kind of inside in Chinatown, right, how is that going to accommodate game nights, the regular traffic who come to Chinatown and this additional, do we have capacity for that and are you thinking of new parking lots that could be specifically targeted for arena visitors that you thread them through Chinatown on like a flash or a something or they walk, that would not mess up the parking lots that are used to service the current visitors and people in Chinatown?
Yeah. So the existing capacity is sufficient, abundant for both the existing use and from our analysis the events from 76 Place. We still feel like we've heard from folks in Chinatown that there's need for more. And so, from the beginning there was a commitment made to do some analysis so we'll be working with the Philadelphia Parking Authority to evaluate what that demand is. And sometimes it's not so much an issue of creating completely new parking capacity, but it has to do with how you manage the parking capacity that you already have. So it's possible for within a lot or a garage there to be some parking that's set aside for specific users. And so, use of that might be through validation or they might have a daily or weekly or monthly pass. And so, you have to kind of get into the weeds a little bit to understand how, first, specific corridors or businesses or users that can be divided up. It does require, when we're not talking about the PPA, conversations with private stakeholders who own the garages similar to your previous question. So it's not a straightforward task without actually doing the work and finding out how those things match up. Your idea about having some sort of a service is certainly one that we're willing to explore. That's come up before and it's something that we would want to engage with the private sector to figure out how to run a service like that.
And this speaks to the improvement of pathways within Chinatown itself in order to facilitate people walking through and kind of enjoying Chinatown itself. One of the concerns that businesses have brought up to me have been the timing of the games are right when there's dinnertime in Chinatown itself, which they make their maximum dollars at that time, and these people not necessarily going to be eating there. They're just going to be clogging up the space so their normal customers will not be able to park or come or eat. So I just want to know how we are thinking of that to mitigate that.
So there's a couple things there. So when we're looking at the way that the pre-event period flows, you're not going to see a crush of people who are coming from all over to get there so they can be there right at 7:00 p.m. It tends to trickle in. And so, in my opinion you're not going to see a big distinction between normal PM rush hour traffic, which is sort of heading out, and then a few hundred an hour that come in. And then as it gets a little bit later, you'll find that there's more people who are kind of either here already because they work here and they're going to a game or they were doing something else and then they're going to walk --
Do we have any data around this reflection that we know the patterns and -
So when we look at both the current arena how people get there, you see between about 5:45 and 7:00 p.m. there's a curve that sort of goes up as people walk in the door. When you look at the other arena spaces and we looked at about roughly different, it's 9 a similar pattern. There's much 10 more compression in the exit. And 11 when you talk to folks who work in 12 the Stadium District for any event, 13 that's where the real management 14 needs to take place. That's when 15 everybody is kind of all moving at 16 the same time, not before the game. 17 It's not to say that 18 there won't be issues, but we think 19 the natural sort of dispersion of 20 parking around this area, the fact that we're bringing people in from the places they already live to go to Wells Fargo, you're going to find a lot of people that are coming from the west, from the western suburbs, there's going to be a lot of people coming across the bridge, so basically coming from the east and the west. And the parking that's available east of 76 Place where through apps, through variable message signs, we're going to try and direct the people from the east to go and the parking that's to the west is we're going to try and direct people from the west to go. And so, Chinatown being set to the north it's not as if nobody is going to park there, but it's more likely going to be people who want to go to Chinatown anyway and then kind of link that trip to Chinatown with their visit to the event that they're trying to go to.
And the reason I ask this because I think in Councilman Squilla's bill there's a limitation of thinking how to limit how long people are parking in the spot. Is that part of this --
10 Point of information. Yes, working 11 with the PPA during event days there 12 will be no allowance of renewing 13 street parking, meter parking. If 14 it's only two-hour parking, if it's 15 only one-hour parking, that's all 16 you could do. You can't go park on 17 the street, go into the event. You 18 would have to come out of the event, 19 put money in the meter if you want 20 it and then go back. You wouldn't 21 be able to renew that. So that 22 would be held for the businesses in 23 the community, not people going to 24 the event.
But it might also catch people who are there for a long dinner and then go to karaoke --
We mentioned that to some of the businesses there in the Chinatown community. And they said, well, if they're having dinner, we would let them know that if they do have it, they have to go out to their car and pay a meter or go to one of the local lots. And we're working on -- we don't have it worked out at this point, but we're working on a validation for parking for people visiting.
I mean, if we can crack this nut, this can be useful everywhere.
Yeah. And again, I think it really is important for us to have a good plan, a well-researched plan and then be nimble to address the things that come up. In my opinion, a three-hour restriction is going to work pretty well, especially if you're parking in Chinatown. That walk to the arena and during -- and during, hopefully they start winning, right, sitting and enjoying an event and then walking back is going to be more than three hours. And so, we're not just going to leave it to chance though. We're going to step up the presence of parking enforcement officers during the events. And so, there's not going to be this slack that sometimes people think they can get away with or they can cheat for 30 minutes or something like that. We all understand that when there's events going on we all have to bring our A game in terms of enforcing what's going on the street.
Right. Well, thank you. I just wanted to make sure that the option for this new parking lot dedicated for arena people, however that can transpire. And the passage through Chinatown for those folks on foot or some other method would hopefully enhance more participation in the economy in Chinatown. So please keep that in mind. And I don't know how we codify this, but these are the concerns the local people brought to me, business owners brought to me around the parking issue.
The Chair recognizes Councilmember Jeffrey Jay Young.
Thank you, Mr. President. So in this amended agreement there's a provision that says that when regarding the folks who are going to be appointed to this board that they need to have their primary residence or principal place of business within the boundaries. And just to get some clarity to my colleagues, our Supreme Court has defined what principal place of business is. It's essentially where your books are kept, your nerve center where decisions are made. So I would hope that that clarity will provide some sense to say that there won't be any representation from the 76ers on this particular board because their nerve center is in New Jersey, right. So I just wanted to put that out there on the record. And regarding the implementation of the traffic management plan, if -- we're using the CBA to fund this Authority, correct? I just wanted to put that --
So the implementation of the plan is left up to the staff and the police. So does that mean essentially the implementation -- so who pays for the police and the staffing regarding the implementation of the plan? Would that come out of the CBA money or is that additional money that the 76ers or the developer will have to pay to the City?
Based on the draft event management plan, which the Sixers and their consultant put together, my understanding is that they are paying for that outside of the CBA.
Outside of the CBA. Okay. Great for that clarity. Thank you for that. And if the goals of those approved plans are not met, what are the consequences? Essentially what is the recourse of the -- do we just have to come up with a new plan or how are we able to I guess kind of mitigate that effect?
According to the amendments, we have the review by the Controller's office who would be able then to review that plan and then do the actual data-crunching to make sure that the plan goals were being reached. And if not, our goal is to require -- it would be in the term sheets, but require the arena folks to be able to continue to provide transit resources for every ticketholder.
So thank you, Councilmember Squilla. I appreciate that. So would that include then I guess more money for traffic management to say we need additional police officers or we need additional staffing, additional public safety officers to actually manage that plan again outside of the CBA?
At this point, no. It would be that the plan would have to be adjusted to whatever we saw as the failures, and then we would have to adjust it. It could be as simple as there was a one roadway that was not being cleared and traffic was not being able to flow up that street. It could be maybe we didn't have enough trains at one location and we need to put more trains there. So I'm not sure how you put a cost associated with that. But right now our thinking was that we would continue to provide and incentivize public transit so that the goal -- I think the only measure that we have right now is 40 percent public transit, which the study showed that we would need to have in order for the arena to be successful and not negatively impact the surrounding communities.
Just two things I want to focus on. And one is these goals that are laid out now are important benchmarks for us. It's sort of the foundation for the work, but the proof is in the pudding when we see what's happening, when we see how well it's working, when we're getting complaints from people and managing those complaints. And so, with that in mind my experience is that, you know, better coordination, more careful deployment of resources, communication solves the overwhelming majority of the issues that we see. And so, from that respect the way this Arena Services District is organized so that, like I said there's a tight feedback loop, I'm feeling confident that many of the board members are going to be passing their cell phone numbers out to a lot of people who live and work in this area, we're going to react fairly quickly. And if we find for some reason from the Controller's report that that's not working, like I'm saying, I expect some improvements in the way that people are coordinating is going to address a lot of that right out of the bat before we're kind of adding more to it in terms of resources. Now, with respect to police that's a police deployment decision which the police department will control and they will make sure that they've got adequate resources so that this area functions the way that it should.
I have a point of information before calling the next speaker, next member. So in South Philadelphia, we talk about the Philadelphia Police Department. Does the sports stadium teams pay for the actual officers during game times? It's like a protected community. When you go to a game, certain blocks you can go down because there's police officers that are there managing traffic flowing in and out of the area during game time at Packer Park.
I can't speak to the specific mechanism myself. But, yes, my understanding is that those resources come from outside of the City.
So for the record, the police coverage in a certain area in Packer Park comes from outside funding, not the City budget. Would that be the same case with this particular project downtown?
Okay. The Chair recognizes Councilmember Jim Harrity.
Thank you, Council President. I just have one quick question.
Mr. Harrity, could you speak into the microphone so the stenographer can hear you please.
Yes, Council President. I just have one quick question. The Traffic Committee, is PPA going to be serving on that committee or they're going to be involved, because for me I would think that they should have some kind of say in there since they'll be doing most of the enforcement?
I don't see that in the latest round of amendments, but I feel like the Administration would support adding PPA.
Yeah. I think that just for informational purposes they should have somebody in the room if we're talking traffic because again they're the ones that will most likely be enforcing it.
Exactly. So just throwing it out there and maybe we can look at that when talking to Councilman Squilla. Thank you. Good enough.
Thank you. Councilmember Rue Landau and then Councilmember Brooks, and the next we're going to have the next panel.
Okay. Thank you, Chair. Thank you, Mr. Carroll. Appreciate you being here. You were making a distinction between an Eagles game that has 70,000 attendees versus a Sixers arena that will have 18,000. Have we ever had a situation where 18,000 people are being released into a Center City area at the same time?
So I can't speak from data, but I would say that there's a lot of events that take place in the Convention Center that are that order of magnitude. Not that they all release at the same time, but similarly they are going to have people who are basically pedestrians at the Convention Center dispersed to public transit, dispersed to parking garages and then come and go. And just for more perspective on that, within Center City there's 200,000 people who live here, about 280,000 people who work here and every day there's a lot of travel that's going on which is really focused in these same set of blocks, so we're talking about maybe percent, percent of that which 5 is in the evening, later in the 6 evening around 9:30, 10:00 are going 7 to be out on the street. It needs 8 to be managed. It's not nothing, 9 but the network is abundantly large 10 enough in order to handle those types of flows if it's managed correctly.
Okay. I think it's an important distinction to make, including you said that most of the Sixers fans now are going between 5:45 to 7:00 down to the arena District -- I mean, down to the Stadium District. That place down there is like a food desert. So if you wanted to go and get something to eat before you're sitting down, I think there is a larger period of time then what will happen with the incoming and the outgoing, the dissension of folks who are going to the district, I think it's extremely important that we keep this in mind.
Second question: I know that -- I've got three, I'm going to rattle them off fast -- the staff and teams, they're going to be parking underneath the building; is that right?
On Arch Street near 8th, there is an entrance to the underground parking lot. Who is using that?
I've seen a proposal to that. I think the design is still being finalized. My understanding is like you say it is staff. There may be some VIP parking down there. The teams specifically will have access to that as I understand.
When visiting teams and concerts and their entourage come in those large buses, we call them tour buses, where will they park to let off all of their people in the bus and the equipment and then where will they park, where will they remain after that?
I expect all of that to be within the footprint of the building. And so, where that access point is I would suspect it's along the stricken right-of-way of Filbert Street, but we'll need to see more detail as the proposal develops.
Well, I think the main thing is it's not on street -- they're not going to pull onto Market Street and let people out. That's not something that we would permit. So it's not going to be on 11th Street. It's not going to be on 10th Street. It's a process of elimination. It's probably going to be on Filbert Street, but that point of access needs to be designed. And so, where that point of access is I think we'll have to see what they come back with. But my understanding is that that underground portion would be from that right-of-way.
Okay. Third question, just to clarify, you believe in the arena District that the police overtime for traffic will not be paid for out of the City's General Fund; is that right?
I read what I thought was plain English in the draft of the traffic event management plan that the Sixers will be responsible for staffing police and other personnel both at the arena and at locations in the area that might be affected by traffic.
Even when it's not a Sixers game and when it's a concert or another event?
So I'm using the term Sixers broadly. The ArenaCo I think is the moniker they're using now. That would be their responsibility.
Okay. We'd love to get clarity on that. Thank you, Council President.
Yeah, we're going to get clarity on it. And I would think the same contribution that they would provide in South Philadelphia, in the event that this move forward if they're not there, that same percentage that they're paying I think would shift to a different area, but we have to get clarity for it. But I would think common sense would say I was paying it before I would still pay in the future but not just at the same location. The Chair recognizes the Minority Leader Brooks.
Thank you, Council President. And I'm guessing you're the right person for this question this time. So the last time members of the Administration and the Sixers have testified, they both said that they'll be open to further negotiations around the CBA? Has there been any proposed changes different from Councilmember Squilla's bill today to the CBA?
So the vote today, does that eliminate conversations around any changes to the CBA?
I don't see why it would. It really is just Council assuming the authority to incorporate an Arena Services District.
So conversations around the CBA or improvements to that is still open?
Thank you very much. At this time I want to thank you, Michael Carroll, for your testimony.
Bill 7 McKinney, Walette Carter, Michael Caine, Jeffrey Doshna, please come forward. Bill McKinney, Walette Carter, Michael Caine and Jeffrey Doshna. (Witnesses approached Witness table.)
Thank you very much. Please begin your testimony.
So I'm here in place of Walette Carter. My name is Kimberly Wilson. Good morning. I am a Girls' High graduate, 250. I'm also the President of the Hill Freeman World Academy Home and School Association and the Vice- president of Membership and Engagement for the School District of Philadelphia's Home and School Council. As a North Philly resident, I want to thank my Councilman Jay Young for not rushing to a decision on the proposed Sixers arena and for asking questions that all Philadelphians have right now. I come to you with a deep concern for the future of our students, our schools and our communities in Philadelphia. In my role I visit schools all across Philadelphia reminding families that they have a voice. PHSC reps have been in close to a dozen schools already this year helping parents organize and talk through solutions to problems no one should have to deal with. I've worked with HSA to address issues like broken boilers that leave kids in freezing classrooms without heat, cafeterias with paint chipping on walls, missing ceiling tiles in classrooms and common spaces, schools with broken accessibility ramps and bathrooms and playgrounds that have not been upgraded since I graduated from high school almost years 9 ago. 10 Every day teachers and 11 students in the city go to rundown 12 school buildings and ask why this 13 city isn't paying attention to how a 14 new generation is being educated. 15 Families talk to HSA leaders about 16 their fears of how this will impact 17 SEPTA and those who rely on public 18 transportation. SEPTA is struggling 19 to meet current demand and has 20 testified that it will not be able to accommodate the additional traffic generated by the arena without reducing services on other critical routes. The buses, trains and trolleys that many of our students rely on to get to school could be cut or rerouted to make space for arena-goers and this is simply unacceptable. Families are worried about school closings and shrinking budgets. There are questions about the tax breaks the Sixers arena will get while homeowners like me see property taxes rise. We cannot build schools -- we cannot build great schools solely off of the backs of residents while the biggest developers go tax-free. The Sixers and every developer in the city should be helping to build every school to ensure Philadelphia has healthy, safe, accessible and well- equipped spaces for our students where our students can learn and thrive. In closing, what we need is for you to slow down this process, think carefully about the long-term effects of this proposal because as a city, we should be prioritizing our children's future and not prioritizing a new entertainment venue. The promise of economic revitalization around the arena is far from guaranteed and this arena project is not for our children, our students or their families. They deserve equity and fairness, not empty promises from billionaire investors, and we as a city need to show that we are willing to make the right choice for them now and for generations to come. Thank you.
Thank you. Please state your name for the record. Please begin, sir.
My name is Michael Caine. I'm the Pastor at Old First Reformed United Church of Christ at 4th and Race in Old City and I also serve as the Board Co-chair with Imam Abdul Hassan of POWER Interfaith. It's good to be here today. POWER is Pennsylvania's largest faith-based organizing effort in Philly. We represent 55 Protestant, Catholic, Jewish and Muslim congregations in 9 out of 10 Councils. I'm testifying today to oppose Bill 240964 which creates the Arena Services District. POWER is 1 of 21 affiliates of Power Switch Action, a national network of local organizations, working to realize multi-racial democracy in our cities. Power Switch Action, formerly known as the Partnership for Working Families, is the nation's leading organization on community benefits agreements, CBAs. They've pioneered the concept of CBAs in the early 2000s. They've represented community-based coalitions for over two decades in negotiating CBAs and they've authorized seminal guidance and served as consulting experts for organizations and entities on government at every level. Power Switch Action has prepared for POWER Interfaith the following testimony on the proposed 76 CBA. There's three points only: First, the monetary value of the Community Benefits Agreement falls woefully short of that of other major sports venues CBAs. Just at the level of the total dollar value, the CBA provides an alleged 50 million in contributions, only half of which are directed to the project's impacts. In contrast, the community benefit plan for the LA Clippers new arena provided 100 million in community benefits and the CBA for the Nashville MLS Soccer Stadium was valued at over 75 million. In addition, compared to other CBAs the distributions are spread out over such a length of time and required to cover such a broad range of significant impacts that the actual effect of many of the expenditures will likely be negligible. For example, $3 million in total expenditures we've been -- sure. 3 million in total expenditures over 20-plus year term for traffic impacts. We've been talking about them. Similar, 3 million in total expenditures over 20-plus year term for housing. A second problem with the 76 Place proposal is it does nothing to ensure that all of the promised non-construction jobs will be good jobs. And finally, it's critical to point out that the Mayor's proposal has co-opted the CBA concept by leaving the community out of both negotiation and implementation. Other major CBAs, including for those basketball arenas in LA and Milwaukee, are either directly negotiated and enforced by community-based coalitions, are overseen by commissions or committees consisting entirely of community representatives or both. POWER Interfaith implores City Council to negotiate a real community benefits agreement before passing this legislation, a CBA that's reflective of other major CBAs nationwide and meets the needs of communities here in Philadelphia that'll be so negatively affected by this arena. Thank you.
Thank you very much. Please begin your testimony, ma'am.
Sir, please begin your testimony. MR. McKINNEY: Thank you for having us. Thank you, President Johnson. My name is Bill McKinney. I'm a Kensington resident, an employee of New Kensington Community Development Corporation. I'm also a Black developer who hires union labor and recognize we can do better with this whole process that we've been engaged in here. I'm here because I have a number of concerns about process and outcomes of building an arena Chinatown adjacent. I have concerns with the community engagement process. I have concerns with the Community Benefits Agreement. I'm concerned about the precedence of continuing to make decisions for communities rather than with communities. I also selfishly have concerns that if we don't address these issues here, we will continue to allow them to happen throughout the city. I come here as someone who lives and works in Kensington, which is a community that has historic had things done to us rather than with us. I am incredibly familiar with poor benefit community benefit agreements. And these sort of moments have led to situations where we do not have positive outcomes and lead to us to continue to have to fight the negative outcomes that are the result. I'm here because I'm concerned that we have never truly had a strategy to support Black and Brown labor in the city and instead we are now operating from a downstream position of pitting one community against another in order to cover our historical failure to systemically support labor. I'm here because we as a city continue to operate from a scarcity mindset rather than an abundance mindset. I'm concerned that our scarcity mindset tells us that we have to support one group through suffering of another. It is a nasty circle. It doesn't have to be this way. Neither has to suffer. I'm here because I'm questioning the engagement process and reminded that if we accept a flawed process here, that process will continue to be applied in other communities throughout the city. I am concerned that this conversation will come to your districts and your constituents will be the new unheard and no one will stand in solidarity as their interest are trampled. I recognize that our scarcity mindset makes us fear rather than embrace truly participatory strategies. I speak from experience and from the very real bruises of decades of implementing truly participatory processes in communities and know that these processes are incredibly labor-intensive, emotionally taxing and lengthy in execution, but also recognize that when done properly these results are sustainable, community-based outcomes. I recognize the time. What I want us to recognize is that a truly participatory process acknowledges the strengths within our communities, invest powers in residents and co-creating solutions. Community-led solutions are more sustainable because they are owned by those most affected by the outcomes. We understand that when looking at a ladder of increased participation, the bottom is token participation which gives community a short-term sense of being heard, engaging in processes and being at the table while in reality these are often tactics utilized to quiet displeasure and disagreement and mask already existing plans while retraumatizing community. The result of that flawed process is a community benefits agreement negotiated without the community and lacking adequate value. When we don't implement participatory practices, the result is something being done to a community not with a community. That is the theme, and that causes trauma to a community. I'm concerned that we are dismissive of the trauma that we have inflicted whereas a top-down single strategy approach is retraumatizing. A comprehensive participatory approach is a healing for the community. And I want us to succeed as a city. I want us to prosper, but that will not happen through fear-based top-down strategies masquerading as progress.
It will also not happen when we put profits over people, and power is not shared but is held by political and economic forces. We don't want to continue to traumatize communities as we have in the past. Just as we have traumatized the Black and Brown worker through neglect, we don't want to feed the scarcity mindsets which says one or the other eats. Rather we all have better meals together. We have the opportunity to pause and reset. We have the opportunity to address the trauma we created by doing something to a community, be it Chinatown or Kensington, and addressing through creating, and addressing safety, choice, collaboration, trustworthiness and empowerment with the opportunity to set a new precedent that we will not traumatize communities and then retraumatize them by essentially minimizing what they are experiencing. We have the opportunity to apologize for our historical lack of support of Black labor and to build strategy that isn't on the backs of our vulnerable communities and with the opportunity to co-create a community benefits agreement with those most impacted by an arena, wherever that may be. We have the opportunity to be known for committing to trauma-informed participatory processes that yield great success for all. Thank you for the time.
Thank you, Bill. State your name for the record. Please begin.
Good morning, Council President, members of Council. My name is Jeffrey Doshna. I'm an Associate Professor and head of the City Planning and Community Development programs at Temple University. I'm an AICP planner and have been a member of the Faculty at Temple for the past years. I'm also the proud 19 President of AFT Local 4531, the 20 Temple Association of University Professionals, representing over 2,000 union members. I'm standing here today providing testimony as someone who is pro-job, pro-union and against this project. I want to focus my short time this morning on the notion that this project can happen without public support. It's simply not true. This talking point from developers of the project needs to be addressed directly. The very fact that City Council is sitting here this morning hearing testimony for myself and others is because the project cannot happen without your support. When anyone wants to build anything that runs counter to our long-developed plans, whether it's the Philadelphia 2035 plan, the different District 18 plans, all the zoning ordinances, all of the overlays, all of the other districts that we've done that have been crafted over time with stakeholder input from hundreds and hundreds of people, any time anyone wants to do something that deviates from that, they've got to come and ask for permission. And sometimes it's a small deviation like my house is too close to a property line, and sometimes it's a mid-sized deviation like I want to add an extra story to this housing project and sometimes it's something like this, a massive redevelopment project in Center City. It's a cornerstone to how planning happens that any time anyone wants permission to violate the standing rules, they've got to come and ask for that permission from the governing body. They are asking to bend the rules for relief from some of these ordinances because they're essentially asking to break the law just a little bit. It's how we do planning work. And for minor things, we tend to grant permission because it advances the public goods without having too much negative impact. But that means that whenever anyone is asking for zoning relief, what they're asking for is public support of a project. The developers can respond by saying that they're not seeking any public financial support, but this is not true. There are several areas, and I know my time is short, but I want to highlight where the City is being asked to provide financial support: The first is the land itself, and the land lease reflects that the developers would be paying a fraction of what fair market rent would be if they had to purchase or lease it on their own without the City being involved. The second, already mentioned this morning, is the impact on Septa operations at Jefferson Station. Others can speak about that in more detail, but it will put a system that is already in serious financial bind under further stress. Third will be the real cost to the City just testified to a moment ago for increased police, fire, EMS that this project will bring. And if we are willing to believe the rosy projections about increased non-game events in the area of 30 or more nights a year, we're going to have to deploy resources to this site. The most important fact is that this project features a PILOT, payment in lieu in taxes. Now, yes, PILOTS are used regularly as a tool to help redevelopment projects happen. However they're structured, the fundamental premise behind a PILOT is that the developer is getting a break on the taxes that they would have otherwise paid. We can make it more complicated than that. And this one, certainly as being drafted, certainly is. But at the core, that's what a PILOT is. It's a subsidy by the municipality to a private entity so that a project gets built. And again, this project can only happen if there's public support. So I'm going to ask everyone to review the testimony that's been already given.
And just to wrap things up, there's one more point I want to make. In my class last week my graduate economic development seminar, we dove deep into all of the published reports. We went into all of the details and all the assumptions. And one of my students asked a really important question, what happens when the team is lousy. The part of the myth of stadium and arena construction is that there's a spillover effect in the local neighborhood, that local bars and restaurants and other nearby businesses will prosper with increased customers on game day. In almost all the cases we've got good data for, those pre-build estimates tend to be overstated as compared to what actually happens. In fact, even these studies here talk about half the businesses in Chinatown being negatively impacted. What my student wanted to know what happens to those local business that might be on the upside when the team is doing badly and no one wants to go to the game, right. The billionaire owners will have already gotten their money from season tickets, from luxury boxes, from advertising long-term licensing deals even if the team is lousy. But what about those local businesses. What happens to them when no one is actually going to the game when the team is say and 13. Thank you. )
Thank you. The Chair recognizes Councilmember Jamie Gauthier.
Yes, we're done. So we will be at recess -- the young lady let someone speak on her behalf. She's at the table for questioning. We will be at recess until 1:45. Thank you. (Lunch recess.)
Thank all of you for being here today. We will continue our public comment and we have two panels to come up and then we'll also continue open comment for the public. Thank all the members for being here. Mr. Christmas, can you please call the next panel please.
Would Mary Yee, Akanke Washington and Gail Loney, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
Again, that's Mary Yee, Akanke Washington and Gail Loney, please.
Please state your name for the record and please begin.
Good afternoon, Council President, Councilmembers, members of the public and John Christian -- John Christmas. My name is Mary Yee. I've been involved in urban planning and public education and immigrant issues for over 50 years in Philadelphia. I've been an advocate and organizer for the Chinatown community since the struggle over the Vine Street Expressway alignment. Since then the community has been continually threatened by projects, some of which we've been able to prevent from seriously jeopardizing our community and some we've had to tolerate. For instance, Independence Mall 4, the Community Rail Tunnel, Market Street East, the Phillies Baseball Stadium, the Convention Center, the Federal prison and before the arena, the (inaudible) casino. S. A walk through Chinatown north and south of Vine Street will attest to the social, economic and institutional activity of our neighborhood. So I want to say that the Chinatown community, over 93 percent of people who came to public meetings and answered a survey are against the arena and have committed not to sign a community benefits agreement. Why? Because we believe that the arena is an existential threat, that there's no mitigation that can really make us whole. So why is the arena a bad idea? First of all, the site is too small. Okay. That's one reason. Inga Saffron talked about this. And the second reason is that the volume of traffic and people that will come because of the games is voluminous and detrimental to economic activities, especially small retail, as well as the traffic and parking that's necessary for these businesses to survive during game and large event days. Now, the thing too is that the arena will only be occupied for 90 or optimistically 150 days with events. Other than that it is a vacant hulk, right. We talk about the failings of the Fashion District, but the Fashion District now even has a lot more foot traffic and retail activity than the arena would. Okay. Now the other thing is that there's been a lot of public comment and outcry about the arena, and I'm hoping that folks here have tuned into that. We had two marches that had 3,000 to 4,000 people marching from Chinatown to City Hall. We also have other people speaking out like Howard Eskin and WIP, who had done a poll that said 79 percent of their fans who answered that were not for the arena being placed in Center City. Our own Save China Coalition survey between Christmas and January 2024 had 2,000 respondents. This was an informal voluntary survey that asked people what they would like as an alternative to the arena. This data we can discuss in more detail with people if we have private meetings with you. I think one of the main things is that we have no vision as a city for Market Street East. Okay. Isn't this the job of City Planning officials in the Administration? Why was there not an investigation why Market Street East and the Fashion District failed? What land uses would work and really bring life to this part of the city? Is the arena project inspiring? Well, the Civic Design Review Committee didn't think so. They said it was essentially half- baked and pretty boring. Now, common sense will tell us since I mentioned how many days the arena would be occupied. And in terms of jobs, yes, there are construction jobs that will be full-time during demolition and construction and part-time jobs for the concessionaires in the arena. But other than that, we're not talking about a lot of full-time long-term jobs. Okay. There's more going on in the Fashion District right now than what the arena proposes in terms of foot traffic and economic activity. So why can't the City issue an RFP for a master plan? So the question is why should the City lock itself into a commitment for a predominantly singular land use that will take five to seven years to build and have a lifespan of to 30 years. I think the City risks a third debacle on Market Street East.
5 It seems clear that big money is 6 driving this train. Are we allowing 7 billionaires to make public policy 8 rather than looking at citizens, 9 people who are ordinary working 10 people and taxpayers and what 11 benefits them? 12 I wanted to say a couple 13 words about the Community Benefits 14 Agreement. At best, it's a 15 misnomer. At worst, it is a 16 fabrication or a lie. The community 17 was not part of this. Moreover, the 18 $50 million that the Sixers promised 19 is not even this year's salary for 20 Joel Embiid, which is 55, and he has 21 the contract for the next three 22 years for 65 a year. So this is an 23 insult really to us that there's a 24 $50 million proposal for a CBA. )
So the only thing I want to say about that is that is chump change.
Thank you, Ms. Yee. But, Ms. Yee, you got to wrap it up.
So please do not contribute to the death spiral of SEPTA or the death knell of Chinatown.
Thank you, Ms. Yee. Thank you very much. Ms. Washington.
Good afternoon. My name is Akanke. I am a Social Study Specialist for the School District of Philadelphia. History, all right, history curriculum. So I want to ask us to think historically. I'll start. Malcolm X said, Of all our studies history is best qualified to reward our research. He said this because studying history is supposed to help us not repeat the mistakes of the past. Here in Philadelphia many of us know the history of Black communities in West Philadelphia being displaced by urban renewal policies. Those are policies that people voted on, they agreed on. These policies offered federal funding and tax abatements to developers who were supposed to develop affordable housing and bring jobs. They did not. Communities were destroyed. And we talk about the unintended consequences of these policies, but now we know. And if that example is too far removed or we can't relate to it because those developers were not arena developers, I'd like to offer you another example. The plan for the 76ers to build the arena on top of a vibrant community mirrors the construction of the Barclay Center in Brooklyn. The tale of the Barclay Center has been woven to describe this development as a response to a community's desire for a Brooklyn basketball team, the Nets. Nobody wanted the Nets. Nothing could be farther from the truth. When you drive to downtown Brooklyn now and gaze upon the monstrous building on top of the old Navy Yard, there's nothing there to remind you of the vision before the community lost its battle to the rich. Where the Barclay Center now sits was initially supposed to be an Atlantic Yard development, a 10-year project that would provide thousands of units of affordable housing. Bruce Ratner used the development company Forest City Ratner to purchase the area and as usual, he promised affordable housing, development and jobs. The original proposal was never realized. What was ushered in was the Barclay Center. The developers brought in Jay-Z, a rapper from Brooklyn who's also now promoting vouchers, as a progressive and he became part owner of Brooklyn Nets and the Barclay Center. The development was sold as revitalization of downtown Brooklyn. It is clear how the development was good for them, but the community knew that the development would increase traffic and cause rents to skyrocket, ushering in gentrification. The very polite word for ethnic cleansing and displacement. The community fought it. They protested. They filed lawsuits. The Barclay Center still went up. In June 2016 developers offered a lottery for affordable 5 apartments, only 10. The community 6 was given 10 apartments for $10 7 million in tax credits and 8 abatements. To date, the residents 9 in Brooklyn have an ongoing battle 10 with the arena over noise and traffic that they swore would not happen. Although the City issues fines, they're not enough to make the developers make substantial changes. As Brooklyn revitalization in 2023, the Barclay Center reported a loss of $76 million. So we have to remember the community didn't get their jobs, they didn't get their apartments and they're losing money. So the best predictor of future behavior is past behavior. There is a pattern of this. And if we let it go on, we can't say unintended consequences anymore. (Applause.)
Thank you very much. State your name for the record and please begin.
Hello. My name is Gail Loney. I am a resident of the 5th Councilmanic District. I am very familiar with the fight around stadiums and community benefits agreements. I was a participant in the battle with Temple University and a 35,000 seat stadium in North Central Philadelphia which they have just conceded, okay. But in addition in 2008, there was an introduction of a CBA being amended and some of the Councilpeople are still here, some of them are not. And myself and a group from my RCO, which is the Uptown Entertainment Development Corporation, rewrote a CBA to say this is what communities need with regards to CBAs. I'm not going to sit here and retout because my colleagues did an amazing job letting you guys know that we did our homework as individuals and community members on what this is all about. We learned what we needed to learn and we researched what we needed to research so that we could come here and talk to you guys and let you know this is not our job. This is our passion. The problem here is there is no communication going back and forth. It's a one-sided communication. And the CBA is not a CBA if the community is not engaged or involved. You cannot keep ramming things and information in places in neighborhoods where people live whether their neighborhood is decimated or whether they have the most prestigious neighborhood. You don't want a stadium in your prestigious neighborhood. I don't want a stadium in my neighborhood either, especially when you have not come to me and said, let's sit down at the table together and talk and exchange ideas. This city has to become more creative and more inclusive of the constituencies that you are representing. It is very traumatizing and it's very disrespectful. When we come here we try to give Council respect. We voted for you guys to represent us and we feel disrespected when you don't represent us in the way that we deserve. We fight every day for what we have and we don't have a lot, but we are here. We are fighting for what we have and we deserve better from you as our Councilpeople. Thank you. (Applause.)
Clair Wan, Sonya Chen, Leana Cabral. Are you deferring your time? I'm calling the next panel.
The Chair recognizes Councilmember Jamie Gauthier.
My question is for Ms. Loney. Thank you so much for coming to speak with us today. I really respect and admire your work and your community's fight. I wanted to know if you can expound and talk more about the similarities and differences between this arena proposal and the proposed stadium in North Philadelphia? For example, in terms of the community engagement process, the community benefits agreement, job projections as well as the potential negative impacts on surrounding neighborhoods what similarities and differences do you see?
The similarities are the same. We were told the same story. The stadium would provide jobs for the community. We're doing this -- and let me go here. Temple University owned the land that the stadium was to go on, but they are not a neighbor. They were not neighborly. They still are not neighborly. Okay. And let's be real, that that's a real thing. Okay. And that's very, very important. When you select and cherry-pick who you want to talk to, that's not cool either. That's disrespectful, because there is a community there that really exists. It might not be the community that you guys see or in your community, but it is a community there. Okay. So they told us that they will provide jobs for the neighborhood and it would bring in additional jobs for the community. They did not talk about the traffic. They didn't want to talk about the traffic. They wanted to close off the street, okay, which meant that the state had to approve a street being closed. And you're talking to people in the neighborhood who you disrespect and said, oh, don't go beyond 18th and Diamond Street because the neighborhood and the neighbors around there are just terrible people. They don't have jobs. They're a bunch of drug addicts, dah, dah, dah, dah, dah, dah. Okay. But that neighborhood produced police officers, firefighters, great teachers, teachers who are still there, you know, and I ain't no slouch either. Okay. I live there. I grew up there. Okay. So they told us all of this, but we pounded them. We pounded them. We asked for meetings. We asked to come to their meetings. They wouldn't let us in. They wouldn't let us know when they had meetings so we had to just, you know, kind of bum-rushed them. Yeah, we had people who were there. Their unions worked with us. Their students worked with us. They told us when they were having meetings so we could show up. We tried to get information. We even had a meeting with them where they were going to tell us -- you don't tell people in the neighborhood that you were supposed to be sharing space with. You don't tell people. You're supposed to talk to people. Okay. No, we're not the brightest light bulbs in the box, but neither were they, and this is the same situation.
Well, you seem pretty bright to me. Thank you so much for your work and for being here. Thank you, Council President. (Applause.)
Thank you. Thank you for your testimony. The sister said, I ain't no slouch. I know that's right.
Will Claire Wan, Sonya Chen and Leana Cabral, please come forward. Claire Wan, Sonya Chen and Leana Cabral, please come forward. You'll have two minutes to speak. (Witnesses approached Witness table.)
Just state your name for the record and please begin your testimony.
Thank you. Can everyone hear me? My name is Claire. Good morn -- good afternoon, Council and members of the public. I'm a teacher and I have taught K and 1 for years. D. candidate at Penn's Graduate School of Education. In Philadelphia I work at the Ginger Arts Center in Chinatown that serves high school and college youth from across the city. Between 2012 and 2013, the District closed 30 schools. 35 billion budget deficit. As a result, absences and suspensions increased significantly for displaced students. But this is not an issue of the past, as our school board is once again revisiting mass school closures as a solution to our lack of funding and school crisis. Our students often share their experiences, school closures, overcrowded classrooms, no books, no 12 air-conditioning or heating, asbestos in our walls and a host of other structural issues. Our school facilities and the deteriorating conditions remain to be one of our city's most urgent issues. Where are the plans to prioritize our students, the future of Philadelphia? Why do billionaire developers get more benefits than them in this deal? As a result of the proposed agreement, the billionaire developers are able to cut a deal under the guise of the PILOT as being a generous gesture to our schools, when in actuality our city would be granting them a massive tax break. They are robbing our city's children and families of a quality education. They negotiated a deal to pay our schools less than 3 million a year, again at the cost of our students. It is important to note, as some of our Councilmembers have astutely pointed out, there are clear discrepancies in these projections. 7 million. 8 per year with escalators with the School Board. But based on the 2023 and 2024 school budget, this promise and vague PILOT amount and plan is only enough to support about 125 students per year, 125. 06 percent of our public school's population. And based on the legislation, it is unclear when the PILOTs will begin and how long they will last. Why should our families, students and teachers trust these promises after what the Sixers did in Camden. Based on the new valuation of the arena if they pay traditional taxes, they would have to pay at least 871 million, assuming 0 percent inflation. 5 billion. 56 -- respectfully other panelists have had six minutes. I would like to claim my time -- 56 percent, as I was saying 56 percent of the City's property tax revenue would and should go to the School District. If they paid full property tax, the Philadelphia School District would get at least 400 million over the next few decades. Instead developers are only paying 50 million, possibly more, but that's unclear as we've heard. That's a minimum of 350 million that they're actively choosing not to put into our schools and you, if you allow this arena to be built. Given that it took $44 million to build Philly's last school, the Sixers $350 million tax break cheats Philly out of eight schools. That's almost 5,000 students without healthy, safe classrooms so billionaires can get richer. However, the arena's value, like most real estate, will likely go up over their lease. So the tax savings the billionaires will likely be even more. How is it fair that some of our most vulnerable populations, our young children and youth, have to sacrifice their futures for this project that will ultimately take funding they rightfully deserve and urgently need from them? Our students and future generations deserve better. 5 million last year, but also fund local transit 27 million upfront for the transit stop construction and about 10 million each year based on the Warriors revenue. 76 Place developers have a choice to do better for our schools and they are choosing not to. Instead they are holding the schools hostages forcing the City to accept whatever deal they put on the table. Instead of advocating for our schools are we supposed to just take whatever deal these developers stronghold us into accepting?
These billionaire developers won't pay their due taxes and our schools, families and students are those who ultimately suffer the consequences and foot the bill. Mayor Parker cited a return on investment for supporting the arena, but studies show that education significantly improves economic growth and when we invest in our people, skills, creativity and innovative capacities. Investing in quality education for all of our students only benefits our city's economic and health outcomes. So as our elected officials, you are meant to be the champions for our school kids and our students deserve you fighting for more. We all agree that our schools need more funding, we do, but this, this is a low-ball offer to one of our city's most pressing issues. People want long-term policy solutions, not a temporary corporate bailout. Thank you. )
Thank you. Ms. Chen, state your name for the record and please begin.
Good afternoon, Council President, Councilmembers and staff and members of the public. My name is Sonya Chen and I am a postdoctoral researcher at the University of Pennsylvania where I researched the politics of race and racial inequality. D. in politics and social policy and have lived in the Philadelphia area for almost seven years. 76 DevCo has repeatedly claimed that the proposed arena will create 9,000 jobs. It sounds like a pretty great promise, but that's all it is, a promise. Why are we taking this number at face value when the study that allegedly produced this number has not been released to the public? If 76 DevCo is so confident in all the jobs it will create, then it should have nothing to hide. Meanwhile the City's own economic study projects 710 jobs. But according to the study's sensitivity analysis, it could be as few as 490 jobs, over 32 years. That would be 15 new jobs a year, a far cry from the claims of 76 DevCo. When we only think in terms of the arena's impact on new jobs, we don't account for the numbers of jobs lost. What happens to the workers in the third of the Fashion District the arena will displace? What happens to the workers at the 50 percent of Chinatown businesses that the City's community impact study projected would be negatively affected? 76 DevCo has touted its economic opportunity plan for a divers workforce. But what about the already diverse workforce here in Center City that stands to lose their jobs. Without a proper economic impact study that assesses the net impact on jobs in Center City, it is simply irresponsible to move forward with the arena proposal. 76 DevCo has also touted its economic opportunity plan as a boon for communities of color. Every year the City assesses the success rates of active economic opportunity plans that are meant to promote the meaningful participation of minority-, women- and disabled- owned businesses. In 2023, according to the City's own number, only 39 percent of projects met their EOP goals. In 2022 the number was 36 percent. That means two out of three economic opportunity plans failed, and 76 DevCo will almost certainly fail as well given their history of failure to live up to their promises to Black and Brown businesses. In 2024 according to 76 DevCo's own reporting, just 3 percent of all its total vendors and suppliers were certified minority- owned. To understand what might very well happen here in Philadelphia when we hand developers hundreds of millions of dollars in tax breaks for a hollow promise of jobs, we can look to Camden. What happened after the city gave multiple corporations hundreds of millions of dollars in these tax breaks including the 76ers practice facility? Camden's budget deficit ballooned draining money from public schools and infrastructure improvement, all for nine jobs they created for Camden residents. Let me repeat that again. The Sixers promised nearly 300 jobs to Camden residents and today there are nine. The argument for the -- respectfully the first panel today had one hour so I think we can take a few more minutes. The argument for the proposed arena relies on the creation of false choices that we don't have to accept. They say if you don't choose the arena Market East will continue to be dilapidated. They say if you don't choose the arena, there won't be jobs. But the truth is there are still so many unanswered questions about the true economic impact of 76 Place. What are the long-term effects of given a 600 million tax break to 76 DevCo for the City's budget deficit? Can 76 DevCo really live up to its lofty promises of meaningfully including minority- owned workers and businesses in this project when their track records says otherwise. And will there even be a net gain in jobs at all? Let us not forget the playbook of pitting Black and Asian workers against one another has long been used in American history. And it is your responsibility, Council, to refuse to be a part of that history. )
Because the only people who stand to gain from pitting workers against one another are the White billionaires whose net worth is almost certainly greater than every single person in this room right now combined. (Applause.)
We don't have to look far to see that American trust in government is at an all-time low. But what is the one part of government that the American people still have trust in. It is local government. The very office the people of Philadelphia voted you into to represent our interests, but this trust has to be earned and nurtured. What happens if the people of Philadelphia, 70 percent of whom who oppose the arena, watch you rush through a proposal with so many unanswered questions. If you move forward without the necessary due diligence, it would irrevocably destroy the very fabric of our local democracy for years to come. Thank you. (Applause.)
State your name for the record and please begin your testimony.
My name is Leana Cabral. Good afternoon. I am a Philly resident, education scholar and a senior research associate at Research for Action in Philadelphia. I'm also the mother of a Philly student. I'm here this afternoon to express my deep concern about the unwanted changes this arena would bring to our city and the moral compass of a City Council that would choose an arena over its citizens. The main selling points of an arena, construction jobs, economic revitalization of the area and increased tax revenue for the city are unlikely. The one certainty is that a new arena owned and operated by the ownership group of the 76ers would increase the wealth of that small group of individuals tenfold. That's the only guarantee. Meanwhile amid the wealth that numbers were talking about, an NBA franchise valued at 4 billion, an owner who brags about a six-figure wine collection as art, our city's school children are facing a new round of school closings. Research shows that individual children in Philadelphia schools struggle to access even the most basic needs, clean drinking water, air-conditioner, safe spaces to play, and here we are rushing a process for a state-of-the-art playground for billionaires rather than thinking through what priorities can actually be met by development. This city, our schools and our students cannot afford the potential billion in lost tax revenue a new arena could bring and the 50 million CBA deal that the Mayor negotiated would not begin to meet the needs of Philadelphia's public schools, a new arena in a school district that has a shortage of counselors, outdated facilities, asbestos and a lack of modern instructional materials, a new arena in a district that has only one full-time librarian, one full-time librarian. Consider this data point: In the last year in Philadelphia only percent of public school 15 students participated in school 16 athletics compared to 53 percent of 17 students in the rest of the state's 18 public schools. Philadelphia spent $94 per student on athletics compared to the rest of the state's average of 365 per student. We know that Philadelphia has always been one of the most inadequately-funded school districts in the Commonwealth. Put simply, Philadelphia cannot support a new arena. We cannot afford to bankroll millionaires. It's them or our students. Who are you going to choose? Despite continual claims from team owners that building new stadiums will result in economic boons and employment growth, research consistently shows that it is not a sound investment and does not result in the economic benefits initially promised. Those who stand a profit from a new arena in Chinatown are few in number. Please, please put people and our children over them. Thank you. (Applause.)
Thank you, Council President. I just heard testimony about the School District of Philadelphia in connection to the arena. I was wondering if you could just elaborate a little bit more about how the arena is connected to the School District of Philadelphia's investment in terms of dollars and funds? I don't want to hear from your perspective. You just spoke on it.
Well, I'll start. But I wonder if you'd like to contribute. I mean, I would say that we're one city, right, with certain investments that we need to make and this would result in lost tax revenue that would impact the School District.
What are your findings on the lost tax revenue for the School District?
I'm citing the study that was done that said the potential revenue and lost taxes could be around 1 billion. That's not my -- I did not do that data analysis myself but I'm pulling it from the study. Also, the CBA deal and PILOTs in general are terrible for our city and our schools as we've seen before. Did you have anything about --
Yeah. So that -- is my mic on? Thank you. I believe you're citing the study done by Arthur Acolin. Last name A-c-o-l-i-n. He actually was a panelist a couple of sessions ago. But to your question, I just wanted to reiterate to your point earlier 56 percent of our City's property tax revenue goes to our School District, right. We all should know that. And so, when we think about the arena and the tax revenue that it would make and also then therefore the tax break that we would be affording the billionaires, that's money that's directly taken from a school district. (Applause.)
Thank you very much for your testimony. Mr. Christmas, will you please call the next panel please.
Would Dawud Bey, Patrick Zhang and Jenna Osman please come forward. Again, Dawud Bey, Patrick Zhang, Jena Osman, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
Please state your name for the record and please begin your testimony.
Hi, Councilmembers. My name is Patrick Zhang. I've been a Philadelphia area resident for almost two decades. So you've heard that the arena will devastate the city, but what you should also know is that the arena will also -- the arena will also destroy the soul of minority communities not just within Philadelphia but miles outside the City limits. I grew up in the western Philadelphia suburb, so admittedly Chinatown is not my hometown but it was a life raft. As a young impressionable child of immigrants growing up in the more homogeneous suburbs, my environment taught me that my identity, my background were burdens to repress or insecurities to erase. So I struggled every day to accept who I am, which resulted in failing mental health, social isolation and poor academic performance. But it was not until I was a teenager independently venturing into Chinatown to work, hang out and eat when things began to change. Learning about the history of the neighborhood and witnessing the community fostered there, for the first time in my life I was authentically proud of my Asian American identity, my Chinese American identity to be specific. Through Chinatown I was exposed to the languages, the traditions, the art and cuisine of my heritage not found in such a concentration anywhere else regionally. Chinatown allowed me to feel better connected to my family, my ancestors and my community. But most importantly, Chinatown taught me empowerment and self-love. And I would not be who I am now without the Chinatown that exists today. However, it has been consistently predicted that the neighborhood's businesses and community institutions will be smothered by the arena if it is allowed to be built. The 76ers Place will consequently harm Asian immigrant communities, yes, within Philadelphia but also in the greater Philly region and beyond. It's not just Chinatown that needs Chinatown and it's not just Philly that needs Chinatown, but hundreds in the greater region who feel lost or ashamed of who they are, those of a diaspora who are uprooted and perhaps only know the value of their heritage through Chinatown. They all, we all need this neighborhood to not only exist but to thrive, because minorities and immigrants exist in American society which intends to beat us down. And as Councilmembers, I hope you may protect the people that you represent, especially vulnerable minority communities, by preserving the few spaces that they have left for their well-being. Everyone deserves the dignity to exist without shame, and Chinatown grants Asian immigrant communities within and outside of Philadelphia that dignity. And it's for this reason as well as everything else that you've heard today in the past few days that you must not allow the development of the 76ers Place. Thank you. (Applause.)
Thank you. Please state your name for the record and begin your testimony.
How are you doing. My name is Dawud Bey and I wanted to first thank you guys for allowing this type of platform to give multiple people opportunity to speak as it relates to how this is going to impact multiple communities --
Yep. Multiple communities within Philadelphia. I have a statement that I want to read, but I promise you it won't take as long as others. But at the end of the day I want to speak from my statement but I also want to add some context to behind what I'm saying. As President of Fine Print Construction, a certified minority business enterprise, I'm thrilled to hear of Mayor Cherelle Parker's approval of the Philadelphia 76ers state-of-the-art arena in Market East area. This $1.9 billion investment is just the beginning of a transformative economic opportunity that will benefit the entire city of Philadelphia. If we play our cards right, we can leverage this $1.9 billion project into over $20 billion in economic impact. Philadelphia has large commercial buildings that are underutilized. And truly to be a first class city, we need an area -- an arena downtown. The vibrancy and energy of downtown contribute to the nostalgia and charm of a great city like New York and Los Angeles. The new 76ers arena will not only bring excitement and economic growth to the Market East area but will also create lasting benefits throughout the entire Philadelphia. This project represents a historic opportunity for economic inclusion, particularly for Black and Brown communities. Through a comprehensive community impact agreement, we can ensure that the benefits of this development reach those in needed -- reach those who need it most. I look forward to the opportunity this arena will bring and the role Fine Print Construction will play in helping to shape the future of this great city. Thank you. (Applause.)
I've been listening online, I've been listening on the Internet and everything related to some of the opinions about this arena and a lot of things I've really never heard yet is how would this impact this city from a cultural perspective, like bottom line. You know, we talking about Philadelphia 76ers is becoming the Camden what, I don't know what we're going to name them. But at the end of the day, I know the benefits that arenas could bring to certain communities. I'm from South Philly. We got the Sixers still. We have the Philadelphia Flyers. We have the Eagles, and our communities is beautiful. It brings our communities together actually. Going down walking from Tasker Street, Broad and Tasker, just to walk down in South Philly down in the neighborhood of the arenas, it's one of the biggest thrills in Philadelphia. So at the end of the day I just wanted to just remind us of the importance of this type of arena to come to Philadelphia, to impact our communities. And everybody love to hate New York City, right, but we love it though. We love the traffic. We love the horns. We love all the cab drivers and everything riding past putting their fingers up at us and everything. But at the end of the day in order for this to be a true first class city, every place that I done visited, they an arena right downtown. So I just wanted to encourage this panel here to support the arena and let's build baby, you know. And like the great Leon Sullivan said, jobs, jobs, jobs, jobs. We need jobs here in Philadelphia. Thank you. (Applause.)
Thank you for your testimony. Can you say your first and your last name and please begin your testimony.
My name is Jena Osman. I was born and raised in Philadelphia and I've lived in Washington Square West since 1998. My home is exactly five blocks south of the proposed arena site on Spruce Street. Thank you to the Councilmembers for taking the time to listen to the people. You should know that we're listening closely to all of you too. The whole city is watching to see where you come down on this issue and your vote on the arena will be your legacy. When the 76ers reps were here and were challenged on why their project was worth the loss of property tax dollars that could be used for our City schools and other needs, they defended their PILOT deal as standard practice that they expected to be treated just like all other arena projects. The problem is this is not like any other arena project, not just in Philadelphia but in the nation. This is the only arena project that requires 40 percent of its patrons to take public transportation so that the City does not shut down around it. This is the only arena that offers zero public space for attendees to gather anywhere near it. This is the only project without a viable pedestrian plan. This is the only arena project two blocks from the City's only Level 1 trauma center. And before you bring up San Francisco's Chase Center, please note that the hospital next to their stadium is a research hospital and their trauma center is 2 miles away. Add to that, the fact that our public transit system relies on the whims of who controls the state legislature and you have a recipe for certain disaster, not just for Chinatown but for the entire center of our city, and you all know that. You all know that there's no way to make the logistics work. To quote Councilwoman Cindy Bass, And yet here we are. Last week David Adelman posted a video tour of the LA Clippers Intuit Dome, which he called an example of what the best arenas have to offer including, an 80,000 square foot public plaza which on its own is almost half of the entire lot size of 76 Place. If he knows that that is what's best, you know it too. In the first week of testimony, I heard an arena supporter ask you to vote yes so the magic could happen. I wish I believed in that magic that this arena project could resolve our city's inequities, that it could bring opportunities to some without destroying the livelihoods and neighborhoods of others. But it won't. I urge you to respect the facts of this proposal, not the fantasy and to vote no on this project. (Applause.)
Would Cheemeng Low, Cindy Miller, Katherine Garth and Sydney Rae Chin, please come forward again. Cheemeng Low, Cindy Miller, Katherine Garth, Sydney Rae Chin, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
Thank you. Please state your name for the record and proceed with your testimony, and we are going to ask that you adhere to the buzzer as close as possible please. Thank you.
Hi. My name is Cheemeng Low. I'm an EMT for the last years, paramedic trainee as 5 well for the record. South of 6 Market Street there's a stroke 7 center, a burn center, Will's Eye 8 emergency room, Rothman Hospital of 9 Pennsylvania and Jefferson, keep 10 that in mind. All of those 11 wonderful facilities and the 12 providers who work there are 13 useless. We are nothing if the 14 dying patient can't come to us in 15 time. 16 I wanted to speak today 17 because the developer and the Mayor 18 of this proposed arena seem to have 19 convinced some of you that a little 20 traffic, 18,000 arena, just about 21 two blocks away from one of the 22 first trauma Level center, that 23 extra time of the ambulance is okay. 24 That's what they make you believe. But being late to the ER is the problem. Just as you know according to the City traffic study, not our study, there's multiple intersections receive a PennDOT rating less than a D and there was one getting an F in every scenario, which is at 7th and Race. The developer had changed their tune on how they deal with the pedestrian overflow about after and before the event. First, they said they're going to close 10th and 11th between Market and Arch and then we're going to keep only one lane open. And this in this hearing they say, oh, for the sake of emergency care, all lanes should maintain open. But where will the people go, the 18,000 people coming in and leaving the stadium. In our scenario if someone needs emergency care in the wrong place at the wrong time, the trip to the ER will be long and delayed. This extra minute will be difference between staying alive or death. Heart attack, stroke, gunshot, those are the ones that are dire and time-sensitive for us to tr to treat. It takes as little as five minutes for one person to bleed out. Just keep that in mind or any other trauma injuries. For stroke patients we say times equal brain. Every minute stroke happens untreated diminishes the chance of the recovery and increases chances of permanent brain damage. Everyone should be asking if this is fair for the patient to have the worst outcome because of the bad idea. Is it right for the developer to potentially cause chaos so close to the city's only Level trauma center? And one more question: Which genius thought they putting a ride share drop off-off right next to the hospital is a good idea? Whoever put this plan together, who vote through this chose to ignore the obvious. The arena is bad for the health of the Philadelphia city. Thank you. (Applause.)
Thank you for your testimony. Please state your name and proceed with your testimony. And I do want to just point out that we want to stick to the two-minute bell because we don't want to lose people who have signed up to testify. If it goes on longer, then we begin to lose people who have to leave, so we just want to be respectful of everybody's time. Thank you so much.
Good afternoon, Councilmembers and President Johnson who is not here right now. My name is Cindy Miller and I'm a 40-year resident of West Philly and District 3, and my illustrious Councilmember sits here, Jamie Gauthier. And I vote and I pay taxes. The testimonies listing the hundreds of reasons as to how this arena would be a major failure and racist stain on our city have all been true. An injury to one is an injury to all, but the root of this issue is that this is a class struggle. Three billionaires who don't even live in the city represent the ruling classes versus the people, the working-class residents who have given testimony here and are not members of the money-powered ruling class. Reverend Carl Day highlighted how Black males are being left out of City project planning for the future and usually not even considered. Residents and business owners in Chinatown are routinely disregarded and disrespected. Gayborhood residents feel erased in this process while Washington West folks feel passed over, but all these groups are not members of the money-powered ruling class so they can be ignored. Why over and over again are we putting our faith in the ruling class to solve our problems? We are being hoodwinked by having money waved under our noses. It seems that supporters of this arena and City Council want to just accept these promises and believe these unreal promises and sign off. These billionaires are not even Philadelphians. Why do we allow them to barge in and build in our city. Look at Washington's D.C.'s Chinatown. Read the latest SEPTA reports. Listen to doctors and ambulance drivers at Jefferson. Look at David Adelman's track record as a developer and landlord in West Philly. There's a City school crisis. There's a mental health response crisis, houselessness and addiction problems are everywhere. Trump just got re-elected and we're spending 40 hours of debate and testimony on this foolishness.
One last bit. You believe that these developers are coming from a place of concern, but they're just throwing money around. It's the classic carrot and the stick. Pay attention. And in the words of a great man, you are being bamboozled. Solidarity to the working class. Thank you. (Applause.)
Thank you for your testimony. Please state your name for the record and proceed with your testimony and if you can stay within the two-minute buzzer, we appreciate it. Thank you.
Thank you. Hello. My name is Taniri Chen and I'm a resident of Brewerytown. Thank you, Councilmember Jeffrey Young, Jr. for voting no on the arena legislation. I'm a restaurant worker and recently joined the Rice Coalition after giving a testimonial. I got into the industry after being inspired by my grandparents cooking. Both sets of my grandparents owned restaurants in Chinatown, including Harmony on 9th Street and Happy Garden on 10th Street where (inaudible) now is. When I was a kid, I would spend a lot of time in the restaurants after going to preschool in Chinatown. This helped shape my culinary viewpoint and has become the reason why I cook professionally. As I learned from my last restaurant job, so many industry folks spend time post-shift or on their few days off in Chinatown. One of the favorites that was brought up during morning prep conversations was Tai Lake as a beloved hangout spot. Chinatown is one of the few places open almost every day of the year as well as late nights so it makes it perfect for industry people to hang out at. Chinatown has also shifted the restaurant scene culturally. As a city staple, Vietnam Restaurant recently won a coveted James Beard Award. The 76ers arena would impact these small businesses that keep the restaurant industry fueled and refreshed. Our city's culture thrives off of our vibrant small businesses, especially Philadelphia's restaurants. Chinatown is a destination for so many in the region and beyond. Instead we should be invested into infrastructure that supports our community, especially our youth. Let's reimagine how we can revitalize our city without harming the communities that make our city so unique. Thank you. (Applause.)
Would Alexandra Greco, Lynn Denton, Barb Hadley and Letty Thall, please come forward. Again, would Alexandra Greco, Lynn Denton, Barb Hadley and Letty Thall, please come forward. You will each have two minutes to speak. Thank you. (Witnesses approached Witness table.)
Thank you. And Ms. Greco, if you could start. Please state your name for the record and proceed.
Hi. My name is Lynn Denton. I'm a visual artist and a filmmaker and I've lived in Center City in District 1 for over 30 years. I have worked with children in the public schools for much of that time. I've conducted projects for Mural Arts. I've shown at the ACA and at the Pennsylvania Academy. I am appalled that we would even consider giving these people, these developers, these billionaires the right to endanger Chinatown which is a cultural treasure. It's a cultural treasure that we will never be able to replace. Now, New York has made some mistakes with Grand Central Station, with Madison Square Garden and their mistakes in tearing down Madison Square Garden because they will never get a monument like that again. And I am also appalled that we are taking our cultural heritage and throwing it away for a few billionaires' pocketbooks. I'd like to say that the Arts in Philadelphia bring in 429 million in tax revenue. And I looked on the GBCA website and found exact figures for what generates this income. And the truth is that it's arts and culture, and that encompasses a lot of things. It encompasses Chinatown and the fact that if we let this go through, we will lose a cultural treasure. I've known how precious this historic treasure is -- okay. I'll wind it up. But I want to tell you as an artist who's lived in Philadelphia and seen the changes in my neighborhood over a period of 40 years, we will never get the opportunity again to have a cultural treasure like Chinatown if we let this go through and we won't have the tax revenue for our children and the schools, what they deserve in the public schools. I've done a lot of projects in the public schools and I know what I'm talking about. Thank you.
Thank you for your testimony. And please state your name for the record and proceed.
Good afternoon. My name is Alex Greco. I'm a constituent of District represented by Mark Squilla. I am a writer, artist and educator who was born and raised in South Philadelphia right by the stadiums. In the 36 years I have lived in South Philadelphia, I have witnessed firsthand the changes in the Stadium District and the chaos and frustration such arenas can cause when not forcibly built directly on top of highly congested historic neighborhoods and pre-existing local businesses. While I am sadly not surprised that self-serving billionaires are lying, manipulating and misrepresenting their plans to carve up the heart of our city for profit, an area mind you that has already seen failed corporate revitalization efforts in recent years, I am appalled that Council is seriously considering accepting this demeaning treatment and abandoning the very people and communities that they have vowed to serve. Selling out and gutting our thriving Chinatown and all the citizens that rely on it all to appease the whims of landlords who have a proven track record of not caring about the communities and lives they have to bulldoze to turn some more profit, anyone who has tried to drive through Chinatown currently at rush hour, indeed anyone who is even paying marginal attention can see that this is not only a bad deal in the short term but a costly mistake in the long term in terms of public money and lives. As this is yet another complicating factor that would prevent Philadelphians from accessing reliable public transportation and critical emergency health services into the future and strike a blow on a historic, cherished and vulnerable neighborhood and the people who rely on it. Perhaps the most urgent imperative is this: The next four years promise to be extremely challenging for big and little Democratic cities like Philadelphia. Philadelphians need to know through demonstrable, tangible leadership by our City Council that we will be protected, listened to, respected and fought for by our elected representatives and Council and in the Mayor's Office. If Council shows it is willing to bend to the selfish whims of billionaires and serve up the people of Philadelphia and our treasured institutions to weak disingenuous promises of short-term financial gain, that will not save us. What faith can we have that we will weather what comes next? The people are united for the common good. Are you with us? (Applause.)
Thank you. Thank you for your testimony. Can we have you please state your name for the record and proceed.
Yeah. Good afternoon. My name is Barb Hadley. I live at 4th and Locust in District 1. I moved first to Philadelphia in 1987. I have two reasons for you to vote no on the arena. First, you can't miss poverty in Philadelphia. We are one of the -- we are the poorest of the largest 10 cities in the country. Until 2022 I worked as Vice-president for Education and Employment at Project HOME in North Philadelphia, and I saw up close how the schools are in dire need of resources to provide an adequate education. 11th and 12th graders came to our afterschool programs Monday through Friday hopeful to go to college, but too many couldn't read at the 5th, 6th grade, sometimes even 2nd grade level, 11th and 12th graders. I told myself like poverty is a reason for the low-quality education. That's what we tell ourselves. That's what we say. I paid wage and property taxes believing in City leaders, in you included, that we will prevail to fund a good quality education as much as possible, and this will obviously not be true if you give a wealthy sports team tax breaks of more than $400 million. Secondly, what makes Philadelphia powerful and beloved are its neighborhoods. And Chinatown, yes, it's vulnerable, but at the same time a powerful example of enduring intergenerational community. I recently met a union man from South Philadelphia like just two weeks ago who said it better than I can. He said, I'm in the union, we have enough work, we don't need the arena. I live in a great Philadelphia neighborhood. I live in a great Philadelphia neighborhood on the same street as grandchildren of people I went to high school with. If we destroy Chinatown, which took generations to build, we will never get it back. Be the leaders that we need. Vote no on the arena. Thank you. (Applause.)
Thank you for your testimony. Please state your name for the record and proceed.
I'm Letty Thall and I've been a Spring Garden neighborhood resident for over 45 years so I know what it means to have access to your home, limited by throngs of people, police vehicles and sometimes Secret Service who blockade blocks. We know Fourth of July, Thanksgiving. I won't go through all the celebrations on the Parkway. But if you are there at the parade, look around and you'll be able to see streets are closed so people can mingle, can go into the street. Can you imagine the demolition construction and use of the arena at around 11th and Market? Where are all these people going to go? The limited sidewalks for the arena and six years' worth of demolition and construction will impact the ability of residents and visitors who come up from Independence Hall to go to Reading Terminal and walk around our city. Look at the current construction at 8th and Market. That's disruptive to SEPTA, to people, to traffic and it's only those four corners. The arena is proposed for 18,000 people. Recently I was at the 10,000 seat Liacouras Center for a concert. We all had to exit going north on Broad Street or north on the sidewalks. The Broad Street was still open to buses, traffic and we were all like a sausage-making machine trying to squeeze, go north on the sidewalk so we could cross Broad to go south. It made me think what's going to happen around game time here. So rather than these resolutions that amend the benefits that everybody have described, that we as residents will lose, I question and ask you all as elected officials why is the deadline for making a decision this year, why is a private company whose lease is running out can't renegotiate? What's the rush? What are the up-to-date traffic studies, the impact on all of us the residents and businesses and neighborhoods east of Broad, not just Chinatown but all of the residents. Jobs are certainly important and we need them, but we need to make sure they're long-term jobs created with guarantee of living wages and benefits, not just full-time equivalent. Thank you very much. (Applause.)
Will Stephen Sablosky, Linnea Bond, Sonya Chen and Daria Petragoia, pardon the pronunciation, /Petragoia/, I guess please come forward. Again, that is -- okay. So Stephen Sablosky, Linnea Bond, Daria Petragoa --
Sorry. Pardon me. And, Blanche Brown, please. Okay. I guess they're not here. You will each have two minutes to speak. Please state your name and begin with your testimony.
Thank you. My name is Linnea Bond. I rent a rowhome with four roommates in the Spring Garden neighborhood. With a proposed arena between my home and Jefferson Hospital, I asked the Council not to bet my life and my neighbors' lives on the Sixers more than having their current number of driving attendees. That would be an insane bet even if the Sixers were funding SEPTA, but they have told you that they won't be spending any more money on our already in-crisis public transit system, even as they would receive a massive tax cut. No wonder so many people and neighborhoods and schools and essential services in this city are struggling when billionaires get the green light to avoid paying their fair share. As a neighbor of Chinatown, I also stand beside my Asian neighbors and pointing to a long history of similar building projects across the country that have gentrified and destroyed vulnerable but culturally invaluable communities like Chinatown. I want to thank the Council for standing up for our communities and moments I've seen you hold Sixers' leadership responsible for these questions. But ultimately we rely on your votes to prove the communities matter to you. I especially want to thank my own Councilmember Young who has vocally opposed this arena proposal on behalf of constituents like me. (Applause.)
Thank you. Please state your name for the record and proceed.
Good afternoon, Councilmembers and general public. Thank you for allowing me the chance to testify. My name is Daria Petragoia and I have lived at 11th and Clinton Streets for years, so this really 15 impacts me and I want an opportunity 16 to speak. I've never done this 17 before so I think it's very 18 important. 19 I believe the 76ers arena 20 will definitely be a bad thing for Philadelphia and all of us here. City Hall is prioritizing a priority and desire of billionaires instead of focusing on what Philadelphia really needs, affordable housing, safe schools and funding of all of our public services. The arena plan has no 5 projections for working Philadelphians but plenty of projections for billionaires. The process has been rushed and the so-called CBA was negotiated in secret between the Mayor and the billionaires, sidelining our community voices so I'm glad we have an opportunity to speak right now. The traffic will definitely be horrible. You know that the neighborhood is already bad and with the arena, it's just going to be even worse. The arena will put more stress on the already struggling transit system. We already don't have reliable public access to schools and work. The Sixers want to build on top of Jefferson Station but building on top of a transit hub will require upgrades and additional costs. There will be added costs for an increased service of Regional Rail, Broad Street Line and also the Market-Frankford Line. Who's paying for the upgrades to Jefferson Station and the other transit costs that the construction will require? Currently there is no 11 deal in place between the Sixers and SEPTA and no estimated cost to their system. Neighboring Chinatown, which we've heard already, and the local businesses will surely suffer. How can small businesses continue when their neighborhood is going to be dismantled? It's a treasure just like it's been stated before. Also, how will this project access Jefferson Hospital, which already is a busy neighborhood getting people that are having trauma, emergencies. It's a Level trauma center and it's right in the middle of the proposed arena. It's already a very busy area without the arena, and those are my feelings. Thank you so much.
Good afternoon. Please state your name for the record and proceed.
My name is Stephen Sablosky. A little while ago we heard someone mention where's the creativity and I offer some creativity with the proposed site other than Market Street. Just like Madison Square Garden and Penn Station and New York City built a stadium in the lot at 30th Street for a mega seating 60 percent larger than 18,500 seats, approximately 30,000 seats. Why not make something very huge. We only have one chance to make it correct. So therefore we should build something much larger. The area at 30th Street I've had several different estimates as far as what is the size of the lot there. I've had acres to 40 10 acres. Several levels -- excuse me. 11 Potentially creating a thousand or 12 more high-paying jobs. I call this 13 project the Martin Luther King 14 Center Stadium, tubular cylindrical 15 hotel complex with parking, 16 revolving top of the hotel King Fu 17 Chinese restaurant with 18 international flavors and favorites. 19 Indian, South of the Border, Classic 20 European and surprises. The hotel itself is adjacent to the stadium and the hotel has different amenities to it as well as far as offering a revolving restaurant at the top. The hotel itself is about 750 rooms and it offers a Chinese food restaurant at the top. That's all I really have to say.
Thank you for your testimony. Please state your name for the record and proceed.
My name is Blanche Brown. I live in District 3 and work in District 1, and I know that Council is voting today after public testimony to move two bills out of Committee and there are just way too many unanswered questions to move this legislation forward today, so I want to say that first. There are many reasons why I personally oppose the arena. I think it is a bad deal for Philadelphians. I think it is poor urban planning, but I'm here today to speak on behalf of a large community of artists who create and exhibit work in Chinatown. I'm the Executive Director of Vox Populi, a nonprofit gallery and performance venue that has been in operation for 40 years, of which we have had 9 the pleasure of calling North 10 Chinatown home. We work with 11 hundreds of local artists a year and 12 there are many other nonprofit 13 galleries, collectives and 14 individual artist studios who rent 15 spaces in Chinatown like we do. 16 Rent has already 17 skyrocketed in the area. Property 18 taxes have increased by up to 70 19 percent in Chinatown since 2013. 20 And according to the 2024 impact study conducted by the City, 76 Place will only exacerbate the Philadelphia's Arts and Culture sector has an economic impact of 3.3 billion. And I'm very concerned that the backbone of that economy, the artists and cultural workers who call Philadelphia home, are not protected by this CBA. This CBA falls far short for what is needed to protect not only Chinatown but also the broader community of working-class Philadelphians affected by this deal. What is Council going to do to protect the artists that I represent, to protect my organization's programming that serves thousands of visitors every year. 76 Place will not only quite literally destroy the cultural fabric of Chinatown, it will also displace and disrupt the Arts economy that thrives there. Thank you.
Thank you. Thank you for your testimony. Also, if you have any questions that are unanswered, you can feel free to read them into the record now if you'd like. I think there are a lot of questions that are -- I didn't know if from your statement in the beginning I didn't know if there was something specific you wanted to ask.
I think overall like everything that people are saying here today are questions that are certainly to be considered and I don't think by the end of today's testimony that we're going to be in a place that's solid enough to move forward.
Thank you. Thank you for your testimony. Please state your name for the record and proceed with your testimony. MS. DiSANTO: My name is Katie DiSanto. I go by Katie. I already read these proposals the last time I was here so I'll try to keep it a little bit shorter today. I work at 9th and Arch and we are an independently-owned and operated small business that's been in Chinatown for 72 years. I walk by the proposed arena site every day. And like over 73 percent of my fellow citizens, I want you to reject Bill 240966 and its related bills. The City's own studies which actually have a copy of here predict that my business is one of the businesses that will not survive the half baked plan for arena construction, traffic and operation. I've been eligible to vote in Philadelphia for 14 years and I am a pro-union voter, but I'm appalled that any of my fellow working-class Philadelphians would be willing to throw our careers, homes, health and families in the trash in order to replace us with a few temporary jobs and increased profits for a private club for a few wealthy outsiders. Thank you. I wanted to address something that was brought up by a panel earlier today. How is limited parking for arena attendees going to be enforced on 40 to 70 random days of the year? Who is paying for the messaging and enforcement of these proposed limits? There have been many nights where I've needed to use a car to take equipment to or from our small business where I've had to sit in traffic and circle the blocks for up to 30 minutes looking for a parking spot in Chinatown as it is, so it's logical to assume that thousands of people will be trying to do the same thing on game nights, and there's no reasonable way to slice this. That would eliminate the issue. That would choke out local businesses and stunt any future growth. Furthermore, I really am confused why Council is allowing this proposal to be so rushed in light of the upcoming Administration's plans for sweeping tariffs. We can expect cost of construction materials to increase by percent or more if Council 12 approves this plan before the 13 inauguration demolition happens and 14 then what, six to nine months from 15 now, the price of the project 16 skyrockets and 76 DevCo is no longer 17 willing or able to spend the amount 18 on the project that's necessary. 19 We'll be left with a huge 20 hole in the ground and no plan if Council wants to make this gamble with our future and lives, there's no good reason to do it. Now, we ask that you instead invest in real neighbors who already live and work here and revisit this conversation next year or preferably never. But if you won't do that, respectfully next election we will find new Councilmembers who will listen and work for the people and not for profiteering parasites. Thank you.
Will Sarah Gersch -- MS. DiSANTO: Oh, sorry. I couldn't quite hear what you were saying.
Will Sarah Gersch, Calvin Williams, Mary Graham and Lina Ruth Duiker, please come forward. Again, Sarah Gersch, Calvin Williams, Mary Graham, Lina Ruth Duiker, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
My name is Sarah Gersch. All the people who have testified so far have been so impressive. I feel a little out of my depth, but I am in the service industry. I work in the restaurant industry here in Philadelphia. I live in the 1st District and I am disgusted that our Mayor would put Philadelphians in this position. I am in the large percentage of Philadelphian residents who understand what it means to live paycheck to paycheck, so I can absolutely understand why some of our union workers and laborers might feel tempted by this proposal or why City Council or the Mayor might feel tempted by this proposal. A quick influx of cash for the City sounds good. The promise of some good union labor jobs sounds good and how can we turn our nose down at that when we as a city are struggling so much right now. We know the City needs money to fund our schools, our public transit and our infrastructure and we know that we need good union jobs. But let me say this though. That feeling of how can we turn this down is by design. This arena will cost $1.3 billion to build, a price tag that the majority of us can't even begin to fathom. But let me assure you that cost is nothing to the billionaires who want to build it. We could just magically erase $1.3 billion from the net worth of Josh Harris and David Blitzer and they wouldn't even notice. They would still have the money to take care of their children and their children's children in a lavish lifestyle forever. Every dollar of profit that gets spent from this arena will get sucked up into the cloud of their net worth and will never be circulated back into our communities. Again, they don't even live here. But every dollar that we spend at the businesses in Chinatown is used and needed by the people who own businesses there and get spent back into our local communities and is being taxed properly by our City Council. This project threatens the heart of one of our city's cherished communities. And again, I say that's by design. The more we concede to billionaires owning our communities, the more power that they have to do this next time when they're coming for your neighborhood. So please vote no. 6 (Applause.)
Thank you. Thank you for your testimony. Good afternoon.
My name is Calvin Williams and thank you for the opportunity. Two minutes is not a lot to bring lived experience to the table but I'll make a stab at it. I was employed in Center City for over 35 years. years plus at 22 8th and Market Street with a major 23 retailer department store. 24 Across the street for over 10 years in the Municipal Service Building I know Center City from Vine to Pine, from river to river. I know it street level and underneath level like the back of my hand. I'm also a seasoned ticketholder with the 76ers now since 1992, and prior to that a partial season ticketholder for five years. I just want to say that you have to live the thing in order to qualify to say it's a Philly thing and it is a Philly thing, that the neighborhoods built the Philadelphia plan, brand and all those things. Now, in our neighborhoods I know from experience that we can't cross the line sometimes with fear of bodily harm. But as a city and neighborhoods we found places in this city where we can be civilized and where we act like human beings with sister and brotherly love and our fashions. Now, we find places in this city where we can live with each other like that. To name a few, the Reading Terminal, Rittenhouse Square, South Street, at one time the Gallery. But above all of those, the most place that we find unity as communities is in South Philly in the parking lots before games and after games. We are family. I am saying to you at this time, and I try to be real brief because this gets real personal, is that I've seen the good, bad and the ugly with the organization of the 76ers over these years, but a lot of us in here have been coaches or we've been in teams. We had to put the teams together for campaigns. And nowhere can I imagine that anyone has a philosophy to build a team to lose, to lose with a philosophy saying that I have to lose consistently in order to win. What kind of culture is that. And I ask you who do you trust, people like the old time that we had the problem with bringing East Market Street -- I'll be real quick if I can please. In the old days with the Councilman O'Neill and with Paul Levy. When our team -- when our City leaders came to this body and asked to do Market Street East, a Quaker named Stockton Strawbridge was a leader and he brought us through all of those things in bringing in the rest of the leaders of the city. I am asking you to keep our family in South Philadelphia, bring in a soccer team to add with it so that we can live in harmony with each other. Thank you. (Applause.)
Will Debra Zellner, Jethro Heiko, Jackson Plumlee and Adam Shellhorse, please come forward. Again, that is Debra Zellner, Jethro Heiko, Jackson Plumlee and Adam Shellhorse, please come forward. You each will have two minutes to speak. (Witnesses approached Witness table.)
Hi. I'm Debra Zellner, professor emeritus. I'm in District 5. One of the prime motivators in approving the 76ers arena is the number of jobs, particularly construction jobs that it will supposedly provide in the city. On November 19th, Elaine McGuire from IBEW Local 98 told Council that the 76ers arena would provide "9,000 jobs for the Building Trades." I found that to be a rather high number, so I looked at what Mayor Parker had said about the agreement she had reached. In her press release she said "the arena would create over 1,000 construction and operations jobs." This number is consistent with the number of jobs projected by the economic impact analysis done by CSL. They project a total of 1,070 jobs for Pennsylvania, 710 for Philly. Of those 710 Philly jobs, 260 would be construction jobs. So I wondered where did the 9,000 jobs for the Building Trades number come from. I found at 76place.com the following statement regarding the arena: It will directly create plus 9,00 construction jobs for Philly residents. This is clearly not true. It appears that the numbers provided by CSL are closer to the truth than those provided by the Sixers. Something similar happened with the Building of Allegiance Stadium, home of the Las Vegas Raiders. The state legislators who approved the deal were told that it would provide 18,700 construction jobs, but it turned out that it generated only 900. The people who were misled were not pleased. Given that the arena will probably generate 250 construction jobs and 450 other jobs, the question becomes at what cost. The community impact analysis found that about half, 155 of the businesses in Chinatown, would be negatively impacted by building the arena. That means job loss for the people who own and are employed by those businesses. That could gut Chinatown. If SEPTA cannot get the money needed to add trains, the gridlock in Chinatown and elsewhere will push out more small businesses. Looked at that way it isn't such a win for Philly. There's no reason to think that the arena will result in more development on East Market Street that might generate more jobs. In fact, the BJH report concluded that "impacts on Market East are inconclusive." Hoping for revitalization does not produce it. Take for example the Prudential Center in New York, New Jersey opened in 2007 and owned by Harris Blitzer. It was to revitalize downtown Newark. I lived up there. 17 years later it is still surrounded by huge surface parking lots where development was supposed to occur --
Please reject the building of the arena in this location. Thank you. (Applause.)
Thank you so much. Who's next? Please state your name for the record and proceed.
My name is Jethro Heiko. I live in East Oak Lane so I'm in the 9th District. I love Chinatown. I urge you to vote no on this proposal. Over years 13 ago I connected with Chinatown 14 activists who were fighting the 15 Phillies ballpark proposed for 16 Chinatown because I as a young 17 community organizer in Boston was 18 responsible for the successful 19 stopping of the demolition of Fenway 20 Park, a five-year campaign where me and the organization I worked for suffered many insults from the building trades of Boston, including death threats. So I take it very seriously the opposition to arenas to stadiums and to projects that give a lot of promises but never deliver. Of course people may not find Wells Fargo to be as historic yet as Fenway Park, but it is an important part of the city as we heard just two speakers ago. I found that very moving and very difficult to follow to be honest. So not only are promises never kept but even looking at the details of the community benefits agreement, it's woefully inadequate. Not that any CBA should ever be considered if a project itself is not worthy of consideration, and this project clearly is not. It's poorly cited. It will considerably damage Jefferson Station, an incredible cost to taxpayers. The idea that this is not going to be a taxpayer-funded project is not accurate. In fact, I've attended the last nine School Board meetings for the last nine months, less than two days before the last School Board meeting. The agenda item was inserted to provide a TIF amendment and to vote in favor of everything you need to then support if this project were to go forward. And I think that speaks to the last thing I'll say. These projects are always, always a considerable distraction from democracy, a subversion and corruption of public process, and less than two months before a Republican President will take power in the White House and do conservable damage to the city. This City Council should spend their time, spend your time doing the work of the city, including supporting and protecting immigrants who will definitely be targeted by this next Administration. And it's time to put an end to this charade. It's a horrible project and you must vote no on it. (Applause.)
Members of City Council and staff. Thank you for your time and this opportunity to speak. My name is Jackson Plumlee and I'm a landscape architect, urban planner, UPenn graduate and a proud volunteer member of Philly Thrive, an environmental justice organization in Grays Ferry. We're fighting for residents' rights to breathe, stay and thrive as the South Philly refinery redevelopment moves forward. I'm here because Market East and the refinery redevelopment are both generational opportunities to remake our city and we cannot afford to waste them. Please imagine these ideas: A library cafe and community center with hundreds of units of affordable housing above a community food hub with space for local businesses and child care for their workers or a transformation of the Fashion District into a lush garden under glass and a community space offering centralized access to housing, health care and jobs resources. These ideas were just a few of many generated by hundreds of Chinatown residents, organizers and business owners at a community design workshop in January at the Center for Art and Architecture, which I attended. Grays Ferry residents have developed similar visions for their own neighborhood and the refinery site. But despite the dedication and creativity of these communities, their ideas are often thrown away and dismissed in favor of short-sighted proposals like an arena located to wreak havoc on our culture, commerce and infrastructure or a sprawling 1300-acre logistics hub paved over 150 years of refinery contamination. Now, imagine this, 30 years from now after the Sixers have moved away the Schuylkill continues to flood higher, Chinatown's legacy businesses are replaced by Qdoba and McDonald's, SEPTA's service is cut and the developers have long disappeared failing to honor their CBA commitments. We're going to look back and we're going to ask, why did we settle for these terrible ideas. Why did we prioritize easy money over long-term vision. We had the chances to plan for climate change, to preserve our culture and to fight the affordable housing crisis, but we wasted them. Thankfully we can still change course if you vote no. 6 If we listen to the people, we can create something innovative, something sustainable, something truly transformative for our city. Philadelphia is full of imagination and promise and we deserve so much better than what these developers are offering. Thank you. (Applause.)
Thank you. Please state your name for the record and proceed.
Thank you, Commissioners. My name is Adam Shellhorse, District 1. 240963 is the resolution I'm addressing today. Thank you for listening to me. I just wanted to take a minute and just congratulate all these speakers who have spoken their mind with regard to our beautiful community, the Chinatown community as well as the city. Thank you so much. I want to give you guys applause just for the wonderful work. What this gentleman said, what the other gentleman said, so many are just memorable and I hope you guys go back and listen to these because I do. I went to the public hearing on the 21st and we had a very remarkable speaker from Temple University, Dr. Bill King, a pediatrician, who spoke at length and he said that this is a bad, bad, bad idea. And I quote it because he talked about how it would be the plan of a super villain to create such event gridlock. My name is Adam Shellhorse and I'm a Temple Professor and I made the comment that many of the City Commissioners were looking at their cell phones and being distracted while the people were talking. And I really hope that you guys will listen to the people because it's so important. I know you guys are Democrats. I know you guys want and mean well for the city and I thank you for your service to the city, but really these testimonies mean a lot and I hope you go back and listen and study it at length, because what Dr. Bill King said about event gridlock is probably the most serious issue at hand here in terms of you're going to cause death, right. You're going to create problems when you have 25-minute gridlock on night games and so forth. Another issue that I brought up in my previous study was that these stadiums are shortsighted. The D.C. example, the D.C. Arena, right. The Wizards wanted to move after less than 5 years. This is a trend nationally, 6 right. So we have to be careful 7 when we open up our city and let 8 teams come in because they're going 9 to want to move out again and what 10 have you done. Just think ahead. 11 What this gentleman was 12 saying, it's dystopian, right, that 13 all of a sudden you've destroyed 14 this ethnic hub that's so wonderful. 15 We all like to go to Chinatown and 16 for what, for 20 years of 17 basketball. I like what the 18 gentleman said, keep it in South 19 Philly, right. 20 So I want to continue here. The story of Philadelphia's Chinatown mirrors other Chinatowns across the nation, right. After the Wizards acquired Capital One arena where the city covered pre-development cost to acquire and demolish properties, entrepreneurs in Washington's Chinatown voiced concerns about prices of real estate skyrocketing and parking impacts on businesses in the area. A decade later in D.C. most Chinese residents were forced to move out due to unaffordable housing. The parking shortage led to the closure of the last Chinese grocery store, accelerating the decline of the Chinese American population in the area to fewer than 300 residents today. Ironically as D.C.'s arena now relocates to the suburbs that they're trying to the community is left behind having endured irreversible destruction while in the midst of its recovery from the pandemic. So I think D.C. is a very close example. We need to pay attention to that. These stadiums want to move all the time, right. And it's just all this destruction at what price, right --
I'm finishing right here. I just want to say please do the right thing. Say no to the arena. Say yes to these wonderful voices, your constituents. We're keeping up with y'all. We will vote you out if you do not support Chinatown and Philly. Representative Squilla -- (Applause.)
-- his brother is an official with the Carpenters Union and they are making back deals, right. So we don't, you know --
-- and this kind of thing we need to be careful. Thank you very much for Chinatown.
Will -- and I'm going to struggle with this pronunciation but I'll try -- Yingxian Chen Shellhorse, Mark T. Roberts, Marya Camilleri and Talia Young, please come forward. Yingxian Chen Shellhorse, Mark Roberts, Maria Camilleri and Talia Young, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
You can please state your name for the record and proceed.
Sure. My name is Mark Roberts. My wife and are 20-year residents of Wash West. We oppose the arena. From the City Council website there is no stated purpose of public testimony but only that it is permitted at special meetings and for specific issues. Most people would think that that's for the public to give opinion, present facts or ask questions about the issues at hand. Also, unstated on the website is what City Council does with our testimony but hopefully they consider it. And that when legitimate, answerable questions are asked, there is some way of learning the answer to those questions. In all the testimony hearings on the arena project to date, we have heard a lot of serious questions put to and some even asked by City Council I can't list them all here but several come immediately to mind. Why are Chinatown's objections being left unaddressed? Will there or won't there be a support beam under an arena holding 18,000 fans? Where is the guarantee our loved ones are safe in an ambulance going to the Jeff Level 1 Trauma Center on an event day? When did the construction period go from three to six years? If 70 percent of residents don't want the arena why would trade union demands mean more to City Council than those of residents, especially since there'll be union jobs wherever this thing gets built. Even with the state's new millions, SEPTA cannot support the Sixers threshold of 40 percent transit arrivals to prevent crippling gridlock. So now what? There has not been an acceptable traffic report yet. Why not? Will even the Councilmembers questions of the Sixers be answered? My testimony question is how can the Council vote yes without the answer to these questions and many others. Basically my testimony is not questions. It's the answers that we -- where do we see the answers to all the questions that everybody's asking because you couldn't vote on what is present now. I don't understand how you could you could say, well, yes, but we're not sure if they're going to be able to put a beam to hold keep 18,000 people safe. So do the questions get answered before the vote? Thank you very much. (Applause.)
Thank you, City Council for having us. Everybody get up and stretch. We have been sitting for way too long. Everybody get up stretch your bodies, all of you, all of you --
But if people aren't paying attention it doesn't matter and I want people awake. My name is Talia Young. I live -- sorry, now I have to sit. I live in District 1. I have lived in the Gayborhood for more than years. 16 My kid was born at Pennsylvania 17 Hospital and goes to school in 18 Chinatown also in District 1. I'm a 19 small business owner and a teacher. 20 Perhaps you can tell, but I am here today as a parent. We are here to present our petition Parents of Philadelphia students against Center City 76 Place arena, which has 600 signatures representing children who attend more than 50 schools from all of the Council Districts across the city at a time when many of the Philadelphia District schools are in need of significant repairs, electrical upgrades, air-conditioning, asbestos removal. It is irresponsible and immoral for our City government to consider what amounts to a $1 billion tax break to three billionaires who do not even live in Philadelphia city limits. As we know, the proposed arena is on the doorstep of two historically marginalized communities, Chinatown and the neighborhood, and threatens their existence. Both of these neighborhoods provide our youth a safe haven from bullying, racism, homophobia and transphobia. This arena will also impact our families and children by six years of demolition and construction to breathing toxic air having to make alternative transportation plans through the very center of the city where all of our transit goes through, including Jefferson Rail Station, 11th Street El, the 45 and bus routes. While 10 critical city infrastructure such as 11 SEPTA faces an imminent debt spiral 12 in terms of public funding and 13 critical cuts. 14
19 Please state your name for the 20 record and proceed. 21
My name 22 is Marya Camilleri and I live in 23 Council District 3, Jamie's District, and I oppose Bill 240963. I'm going to read the rest of our petition. The Sixers plan to pay zero property taxes even though families across the city are struggling and our schools need that revenue to survive and thrive. The arena CBA offers a poultry amount of money for schools amounting to 1.50 per student. Shouldn't our kids be worth more than a pack of gum per year? The lack of transparency and stifling of parent, student and community engagement exhibited by the Philadelphia School Board and City Hall are not characteristic of a true democracy. We all expect our taxes to fund children's education and public infrastructure. We need not line the pockets of billionaires. We urge our City Councilmembers to put our kids and communities first. Vote no on the 76 Place arena. We had hundreds of comments, but we just wanted to highlight a few. One, the traffic is already bad. People will not be able to get to the hospital for emergencies. I delivered my baby in my car on 8th and Market on the way to Pennsylvania Hospital in 2022. Two, SEPTA is the school bus for a lot of middle and high school kids. A major disruption of the SEPTA system due to the construction renovation of Jefferson Station would likely have cascading effects on a broad swath of kids and families throughout Philly. Having all of the sports stadiums in South Philly is an effective way to allow easy access for those who wish to enjoy those events without negatively affecting the City Center. Three, I am both a parent of a student and a teacher in the School District. My classroom has crumbling plaster and warped floors, broken desks. Why are we funding an arena that is going to do great damage to the neighborhoods of my students when our schools are falling apart? Four, I'd like to demand a provision in the bills Council is considering that no bathroom in 76 Place can have a stall door until all the bathrooms and the kids' schools have stall doors.
Will Kaia Chau, Tyler Lian, Rachel Lewis and Jacqueline Wong, please come forward. Again, Kaia Chau, Tyler Lian, Rachel Lewis, Jacqueline Wong, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
My name is Rachel Lewis and I'm a constituent of District 1 residing in Port Richmond. I love the city of Philadelphia and our sports teams. I'm also a homeowner and a taxpayer in the city, but most importantly I'm someone who has grave concerns about the proposed arena moving forward. Merriam-Webster defines the verb revitalize as to grow new life or vigor to something. While I think we can agree revitalization of Market East is important, are we okay to give new life at the detriment and destruction of another. I certainly do not trust the process being pushed forward to rush legislation of a proposed arena that would severely impact Chinatown as a community, provide tax benefits when we have critical funding needs, propose an insufficient CBA and strain SEPTA beyond current challenges. Earlier this year we had schools unable to operate due to extreme heat as a consequence of no 18 air-conditioning in their buildings and we have many schools facing closure. We should be ensuring that students have basic necessities to learn in a proper environment among many, many other critical issues in Philadelphia above pushing forward an arena proposal that will negatively disrupt our city's identity and citizens. I stand with the majority of people in Philly and ask that you please vote no to the arena proposal. Thank you.
I come here to speak as a union member and an activist in Chinatown and I'm also a senior, and unfortunately many, many seniors are not able to come to speak.
Please proceed. I'm sorry. I didn't hear you state your name before --
As a senior -- as a union member I understand why people want a job. They want to have a good living. Philadelphia is a town of unions. The brothers and sisters of our unions would not have no jobs. Regardless where the arena will be built it won't impact our union members. Chinatown is not just for the Chinese community. It's also for our immigrants from Southeast Asia. It's a vibrant community. Me personally I go to Chinatown every week to go grocery shopping, visit my friends and have dim sum with my friends, and it's also a place where whenever there's a holiday that's where we gather. In my heart Chinatown is a rather safe place. Fifty years ago the first time I stepped foot into the Philadelphia Chinatown as soon as I got there, I felt already comfortable and I felt an ease. Public safety is a particular concern to our District 4 Councilman Mr. Jones, District 8 Councilwoman Ms. Bass and District 10 Mr. O'Neill. We all know how important a safe place is. We do not want to bring destruction to such a safe place. Talking about myself, all my medical providers are all working in Jefferson. I'm a senior with diabetes and I also have difficulty with movements. If you were to build an arena at 10th Street and Market Street, it really will make me feel unsafe and I'm very unhappy about it. If I were to fall or have an accident, the emergency vehicle will not be able to make it through. Without the public transit, arena is not able to be built or be supported. Just two days ago Governor Shapiro promised to fund $153 million to SEPTA to prevent the hike in fare. Okay. However, the developers still want to use our taxpayer money to build the arena. In the public hearing on held on November 19th in 2024 SEPTA testified that in order to renovate the underground area of the SEPTA station to support the arena, it would require $50 million. After the arena to start operating SEPTA would require additional million 24 annually to regulate the schedule for the crowd control. As a union member of the PFT and the Principal union, in 2011 I personally witnessed the closures of many schools, including TSS. Right now the public schools of Philadelphia are facing the same issue. As Councilman Mr. Johnson mentioned, our public schools need funding to build better education, better future for our kids. So the whole world knows that Philadelphians love our sports teams. I'm very concerned that regardless -- whether in terms of the safety issue before and after game I'm very concerned. I feel that it's going to be quite unsafe. One more time.
And if the arena gets built, then for our other later generation they won't be able to see the existence of Chinatown. It will disappear gradually. Finally, I want to say please say no 4 to arena in heart of Center City. Please protect and love our next generation, our Chinatown. Reduce the traffic burden for the entire Philadelphia, improve public transit. At the end we all have to answer to our young ones for the decision we make today. (Applause.)
Thank you. Thank you for your testimony. Please state your name for the record and proceed. Please state your name for the record and proceed. Yes.
My name is Donna Greenberg. I live in Council District 5 and I'll be speaking on Bill 240963. I'm 74 years old and a lifelong Philadelphian. I live not far from Chinatown. As a retired acupuncturist, I've spent many years in Chinatown's restaurants, shops and herbal stores. I know what a treasure this community is. Our city is great because of the richness that different cultures provide. We must protect them. None is more important than Chinatown, which is 150 years old. It has experienced many upheavals, including the one that split Chinatown in two to construct the Vine Street Expressway. That created traffic jams, safety problems and pollution. All of which will result if the proposed arena is built next to Chinatown. Deafening noise, destruction and debris will confront residents and businesses in Chinatown if they're forced to live through years of demolition and construction. This will make it hazardous for those who live and work in Chinatown to get around their community. Local patrons and tourists will stay away. Traffic will be heavier than it already is. Children will find it difficult to walk to their schools and neighborhood centers. This unique community will be torn apart. Its welcoming lively atmosphere will shut down as 50 percent of local restaurants and businesses stand to lose revenue. This will make it unaffordable for people in Chinatown to live and work leading to their displacement. One of the few remaining Chinatowns in the united States could disappear. Please say no to the arena. Thank you. (Applause.)
Thank you for your testimony. Will Yannick Trapman- O'Brien, Sarah Heim, Samantha Xander and Lauren McCutcheon, please come forward. Again, that's Yannick Trapman-O'Brien, Sarah Heim, Samantha Xander and Lauren McCutcheon, please come forward. You will each have two minutes to speak.
Thank you very much. My name is Yannick Trapman-O'Brien. I'm a West Philadelphia resident in the 3rd Congressional District and I work most days in Center City. The CBA claims it will provide funds to leverage new economic opportunity. But what is the lived cost of that opportunity. Who will pay for it and who will benefit from it? In that first panel we heard people talk about the importance of being neighborly. On top of all the disruptions previously mentioned the residents of Chinatown, the Gayborhood, Washington Square West, they've spent decades building intangible value with each other just like everyone here has done in their own neighborhoods. When we know our neighbors, when we make a ritual of having dim sum with our friends, when we know which houses have the best candy on Halloween, when we know exactly how long it will take to get to the corner store and grab one thing off the shelf and get home, when our children go to the same school building we did because it was not shut down, these are real things that materially benefit our lives. They have value. The CBA offers a limited financial investment, one they don't really want to budge on. But you can't just turn money into any of these things that I've described. Even with funding, rebuilding connections, living through years of traffic and construction and pollution, fighting to keep residents and businesses from being priced out to make sure residents feel safe in their neighborhood, working to not let the unique character of our neighborhoods become what we've heard described today as half-baked and boring Qdobas and McDonald's, all of that will take time, all of that will take energy and work. And the 76ers management will not do that work. Residents will have to and who will compensate them for that. The issue before us is not a referendum on just one development project. This is an auction where we are debating the market price of the value that Philadelphia's neighbors build with each other. And when developers inevitably come to see what profit they can seek out of your neighborhood, they will look to these proceedings to see what they can get away with. So I encourage every Councilmember here today and every resident in Philadelphia to listen very carefully to what each Councilmember says with their actions because they are telling us exactly what they think our neighborhoods are worth. Thank you. (Applause.)
Thank you. Thank you for your testimony. Please state your name for the record and proceed.
Good afternoon. My name is Sarah Heim. I'm a lifelong Philadelphia resident from East Mount Airy, District 8, a Central High School graduate and a current Penn student in urban studies. I'm here to testify in opposition to the proposed arena. The proposal itself and the entire process surrounding it has been utterly disrespectful, not only to the Chinatown community but to all Philadelphians. The Mayor announced her endorsement of the plan long before hearing public testimony and after repeatedly denying invitations from community leaders to visit Chinatown and discuss the proposal there. Instead she continues to call last minute meetings at City Hall even on the night of the Mid-autumn Festival. Mayor Parker and the developers don't even care to know the community they are intent on destroying. The developers have continued to insist that the arena will benefit the city, even after their own impact report demonstrates the expected harmful effects on nearby neighborhoods. Community members have expressed worries about displacement, noise pollution and poor air quality from construction and traffic congestion. Instead of responses to their concerns, residents were offered Sixers tickets in the Community Benefit Agreement negotiated between Mayor Parker and the developers without their input. They consider the dispossession and suffering of Philadelphians to be a viable business venture. Philadelphia does not tolerate this disrespect. 76 Place is just one of too many development projects that claims to know what's best for Philly. Chinatown has spoken. Philadelphia has spoken. City Council must listen. We do not want this arena. Don't let these billionaires or their political mouthpieces tell you otherwise. (Applause.)
Thank you for your testimony. Please state your name for the record and proceed.
Thank you. Good afternoon. I'm Samantha Xander. It doesn't look like my District Councilmember is here and we're missing others, so I do hope they listen later. I've waited a long time to speak and missing work to do so because I believe passionately in this issue. I live and pay property taxes in District and both me and my husband own businesses in this District. I'm a double Temple alum and my law firm services disabled residents of Philadelphia and beyond. Our child attends McCall, the public elementary school in the catchment of the proposed arena. We are Sixers fans, including my 12-year-old who loves basketball, plays it almost every single day and loves our team and goes to games. This is not about that. It's about the billionaire team owners who don't live here, who think they also own our city and can do as they please with it. When we first heard about this project, we had so many questions and still do. How could Center City possibly deal with that amount of traffic and parking? How would this type of project work when it caused chaos in other cities and destroyed other neighborhoods? Are they even listening to residents, business owners and area Trauma 1 hospital workers' concerns? Why knock down a newly built state-of-the-art affordable family-friendly movie theater and arcade that we frequent? How green is this project really? How will seasonal part-time low-paid jobs that folks just went on strike over contribute to and better our local economy? Why can't the builders get paid building somewhere else? How will they address the burden it causes with construction, traffic, congestion, pollution drunk drivers and costly SEPTA modifications? The answers to these questions and others are not good. You still have questions. Unfortunately the billionaire owners won't even sit at the table with you to discuss them. And the answers the representatives gave you were unsatisfactory, but this shouldn't be surprising because this is how they do business. It's about these billionaires making themselves more money. It's not about our city's best interest, our revenue and it never was. The CBA was a unilateral agreement with zero community input. I don't know why it has the word agreement in the title. As I was taught my first day of contract law, a contract requires a meeting of the minds. Last year some Sixers representatives came to McCall unannounced to parents, guardians and community members. Chinatown residents make up 60 percent approximately of our student population. David Adelman showed up and took photos with our principal and staff. The Sixers took unauthorized pictures of our kids getting $5 gift cards and adultsized t-shirts thrown at them. Pictures they ended up having to take down from social media because parents were upset about how this played out. This non-consensual behavior is in line with their plans to bulldoze over the rights of our communities without us having a seat at the table. Just like it was a joke to give out junk to our staff and kids at our beloved public school for a photo op, the CBA is also a joke and we are not laughing. As you know, a vast majority of Philadelphians oppose this project. I hope you reading the comments sections whenever a news source reports on the arena. It is the most unpopular project I have witnessed in my lifetime in Philly --
-- and this is the first time -- I pay my taxes. I will finish my last paragraph.
Our schools, public transit and housing systems -- I'm wrapping it up. Our schools, public transit and housing systems are in crisis and little things like SEPTA paying for passes or other menial measures won't fix it -- excuse me, Sixers paying for SEPTA passes and other menial measures won't fix it. And we are entirely uncertain what challenges the new federal administration will bring to our beautiful city. She needs protection and well-thought- out plans. I urge you to follow your hearts and instinct that something isn't right here. Slow down this process. Don't let them steamroll the city with bad deals that were never deals in the first place because they were never negotiated --
Mayor Parker admitted that she did not ask for more money up. I hope my -- last sentence. Thank you.
I have hope for my kid, my family, his friends, their families and our community safety, future prosperity and well- being. These billionaires do not have any of our interests at heart. Thank you.
Will Lauren McCutcheon, which I may have called once, Sergio Cea, Eric Kim and Eleanor Hyun, please come forward. Lauren McCutcheon, Sergio Cea, Eric Kim, Eleanor Hyun, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
Good afternoon, please state your name for the record and proceed.
Good afternoon, Council. My name is Sergio Cea. I use I/he/him pronouns. I'm the Political Director of Reclaim Philadelphia, which is headquartered in Chinatown at 9th and Cherry. And I'm speaking to you while on PTO that I earned through my union contract under SEIU 668. Like many, I'm furious with how the Parker Administration has approached this process. The community was never involved in negotiations over this terrible deal that only benefits billionaires and neither was City Council. No one thinks the CBA is as strong or as powerful as it has been described. And as a Latino person and a queer person, our communities aren't even reflected in the CBA. I know this isn't just being forced down the throats of residents in Philadelphia but Council too. I empathize with y'all. I do, because I know City Councilmembers feel impotent right now, not having their schedules cleared out, not being able to introduce legislation for the change Philadelphians can see and feel, instead weeks wasted on a pet project for billionaires. As a political director, I have to note that Democrats suffered a landslide defeat this election, and it was because the Democratic party has been more invested in protecting the status quo and muddied interests instead of delivering for working-class people. This arena, if passed by City Council, will just be a reflection of greater problems in the Democratic party. Last week I heard a lot of great and tough questions from Councilmembers. If you don't negotiate for a better deal, how will you be able to look Philadelphians in the eye with a straight face. If you vote to support legislation now, how will you ask Philadelphians for their vote when they remember you sold out the last community of color all to line the pockets of billionaires. While we are struggling to make ends meet, while we are facing displacement from predatory development in Black and Brown neighborhoods across the city, our SEPTA fares will go up 7.5 percent starting December 1st next week, and SEPTA has said that the Sixers arena will cost SEPTA $20 to million a 7 year, and the funding Governor 8 Shapiro secured recently won't cover 9 that. It will only last us months, 10 not years. 11 Right now we should be 12 doing everything in our capacity to 13 deliver for Philadelphians 14 struggling to regain the trust of 15 voters for the midterms and beyond. 16 We should also be using this time to 17 prepare for and fight back against a 18 Trump Administration protecting 19 anyone who's at risk from losing 20 their civil rights or reproductive 21 freedom. The next election we will 22 know how you voted and what you 23 prioritize. There is still time to 24 decide. Which side are you on? Thank you. (Applause.)
Thank you. Thank you for your testimony. Please state your name for the record and proceed with your testimony.
Esteemed Councilpeople, Hearing Chair and staff, my name is El Hyun. I'm a resident of the 3rd District. After this most recent election I've been thinking about 2020, a year that also brought a lot of uncertainty and fear. In the midst of that fear and isolation, I started playing pickup volleyball with a small group of friends. So four years later this team is still going strong. We have membership from many neighborhoods and diverse backgrounds in Philadelphia. And for someone like me, this team actually means a lot. I moved here eight years ago and I don't have family in the area so people in my life like this team are the people I rely on to feel less lonely and to also get help when I need it. And I know this team would not exist in the way that it does without Chinatown. Every Monday we meet at the Chinatown Community Center to play a match and during the summer some of our members play with a Lady Suns volleyball team which is a part of a 50-year-old youth sports organization in Chinatown. I'm talking about this because I think it demonstrates something really important, which is that healthy communities protect and support other communities and communities are what are going to get us through tough times. When our support networks are compromised, we see the consequences down the line. We see more substance use. We see mental and physical health crises and we feel that we live in a less safe city. When one community is injured, it hurts all of us. So please, Councilmembers, and I'll speak directly to my District representative Jamie Gauthier who is here, please know that when you vote on this arena, you are not choosing between distinct interest groups. Chinatown, labor unions, Washington West, you are voting for all of us. Although I can see the appeal of short-term financial and employment gains that could come with this project, economic analyses and SEPTA's recent statements against the arena have convinced me that these gains will be short-lived and outweighed by unforeseen costs in the long run. I know the City needs more funds and more jobs. Let's meet those needs with a project that will support our communities and not tear them apart. Philadelphia deserves better. Thank you. (Applause.)
Will Christina Morton, Emily Goddard, Minh Nguyen and Anlin Wag, come to the table please. (Witnesses approached Witness table.)
Thank you. Please state your name for the record and you may proceed.
Good afternoon. My name is Christina Morton and I live in District 1, the same district as the proposed arena. While I worry about how this project would affect the area I live in, I want to take a second to talk about an arena in a different area of the city, the proposed football stadium at Temple University which was brought up earlier in this meeting. You'll find a lot of similarities in community response in these two cases. A coalition of North Philadelphia churches and community groups quickly organized to oppose this project. In 2018 the President of the Philadelphia Chapter of the NAACP said "nothing can be worked out in North Central Philadelphia where residents are already there, where it would further disrupt the community from Temple's expansionist policies that have already taken place." The Stadium Stompers, a group made up of North Philadelphia community members, students and workers said "North Central Philadelphia has historically been a neighborhood of Black residents and if there is a massive stadium built on top of that neighborhood, it is going to displace people directly and raise the land and housing prices." Polls showed that 58 percent of students opposed the building of the stadium while 30 percent were in favor. For faculty 68 percent opposed it while only 11 percent were in favor. 12 Right now polls are 13 showing that around 70 percent of 14 Philadelphia residents are opposed 15 to the proposed arena we are here to 16 talk about today. The Temple 17 football stadium was not a done deal 18 when it was announced and this 19 Sixers arena is not a done deal 20 either. 21 Philadelphians do not 22 want stadiums. We want money for 23 SEPTA. We want school funding. We want community health resources. We want stable well-paying jobs, not the kind of seasonal low-wage jobs that stadiums create. Looking at the community impact analysis of the 76 Place proposal, a report commissioned by this very city government, researchers drew a couple of conclusions I would like to highlight. The report says "Impacts on Market East are inconclusive. With or without 76 Place the area will continue to face significant challenges to development and vibrancy. This stadium is not an insurance that this is going to revitalize Market East." It also says in relation to Chinatown "Due to impact on labor markets and small businesses, Chinatown's core ethnic identity could be significantly diminished or lost." I urge City Council to consider the message they are sending to this city's residents, the ones they are meant to represent if they vote to go forward with a project like this. We are not stupid. We see this project for what it is. We know the community benefits agreement is not sufficient. $37 per month per business over six years of construction is insulting. Its crumbs the ultra wealthy are offering in exchange for the chance to make millions off the back of the city's residents. The people of Philadelphia refuse to be bought and I hope the City Councilmembers refuse to bought as well. Thank you. (Applause.)
Thank you very much. Please state your name and please begin your testimony.
Good afternoon. My name is Emily Goddard. I live in District 3 and I'm speaking on Bill 240963. I have a Master's Degree in public health with a focus on environmental health and I oppose the proposed arena project. You've heard from numerous medical professionals about how the arena would hinder ambulance access to Jefferson ER and cost patients lives, but I also want you to consider the less visible health impacts. We've heard about the trouble of who is paying for the SEPTA updates. Without a clear plan for how SEPTA would function around the arena, gridlock traffic is highly likely of at least half, if not more, of arena events. Recent studies have found that in the U.S. gridlock accounts for over $124 billion in total economic costs, 8.5 million tons of CO2 emissions and over 50 hours lost by the average consumer or commuter annually. It causes local businesses to struggle, hinders delivery services and increases individual stress. Traffic is also the biggest source of air pollution which is responsible for up to 10 percent premature deaths in the U.S. each year um, and it can also lead to cardiac, respiratory and even neurological health problems. More gridlock in Philly from the arena means more time wasted, more economic losses, more carbon in the atmosphere and more Philadelphians choking on smog. We are also in a growing climate crisis which is causing more extreme weather events such as our current drought that's bringing wildfires and smoky air to Philadelphia. The construction sector is the largest emitter of greenhouse gases accounting for 37 percent of global emissions, which also causes air and water pollution that have negative impacts on health. While sustainable arena development is very much possible, as we can see with Seattle's Climate Pledge arena, 76 DevCo has made no mention of incorporating any sustainability measures or practices into the construction or operation of 76 Place. This arena can't be world class if it's massively contributing to climate change, which the WHO calls the greatest health threat of our time. We had economic and traffic impact studies, but we also need environmental and health impact studies too. I urge City Council please don't vote to approve this project. Take the time to negotiate with 76 DevCo to build sustainably and put environmental health protections in place. I love Philadelphia and I care so deeply about this city and the people in it. If we truly want a cleaner and greener Philadelphia, we need to stop this rush process. Please City Council don't vote to approve a project that would not only take money away from our schools and our public transit but also harm the health of every Philadelphian. Thank you. (Applause.)
State your for the record and please begin your testimony.
Minh Nguyen, resident of the 2nd District under City Councilman Kenyatta Johnson. These have been such incredible testimonies. Everyone has been so inspiring today. My name is Minh Nguyen. I am a realtor with Keller Williams and (inaudible) with over 2,000 realtors and offices in five states. We serve clients in PA, New Jersey, Delaware, Maryland, New York. Out of the 1100 Keller Williams franchises across North America, we're number two in production, projected to close over $4 billion in total volume production this year, and we're number one in recruitment. I served as the Technology Chair DEI Committee and Finance Chair. I'm on the DEI Committee of the Pennsylvania Association Realtors and a member of the Greater Philadelphia Association Realtors. I'm also the Secretary and Policy Chair of the Local chapter of the Asian Real Estate Association of America. We have 45 chapters, 19,000 members, 51 ethnicities and languages in North America. 2 Lastly, I'm on the board of a 3 political organization that elects 4 LGBTQ candidates for office, and 5 we've endorsed several candidates, 6 several members of this Council. 7 I've been a judge of Elections for 8 over seven years in the 40th Ward. 9 So I just want to say I'm 10 speaking today independently and the views and opinions expressed in this testimony are of my own. Let me just start by saying that we must be a city that has the courage to do big things. We believe that housing is a human right, that we envision a world free of housing discrimination and free of homelessness. We must create housing and real estate infrastructure that supports individuals and communities of all socioeconomic conditions and we must invest in smart and holistic development, affordable housing, commercial-mixed corridor revitalization and infrastructure projects and transportation hubs to positively impact all communities. The Chinatown community has had a history of organizing from the Vine Expressway to two casino development proposals to anti-bias violence in public schools and now to the 76ers development. Y'all are incredible and shout out to all of the work y'all have been doing. It has been so inspiring. Their courage, resilience and power has been felt throughout the decades and I stand with you. As a Vietnamese American, Chinatown has been core to my identity and awareness as an Asian American and the Gayborhood has been instrumental to my identity as a Gasian. We have reviewed impact studies and reports summarizing the assessments of the impact on this arena, and I've compiled after research and consultations with Chinatown developers and small business owners some concerns and some demands. So real quick, Concern No. 1, impacts in the spirit and legacy of Chinatown's culture, organizations and communities. Impact No. 2, parking, traffic and the transportation system. Impact 3, quality of life in the environmental ecosystem of Market East, residents and businesses, Chinatown, Washington Square West neighborhood and other communities for impacts on the healthcare system, including Jefferson. My sister works in a mental health nonprofit working on services for victims of domestic violence and sexual assault and she has expressed her discontentment with the development and this impact on victim services. Impacts on City services impacts on the viability of sustainable jobs and impacts on small business owners and the artificial inflation of property assessment which will increase property taxes and also increase rent which might lead to displacement of tenants in Chinatown. So there are 10 demands, and I'll submit this to the public record and I'll send this to your emails and also to your offices.
But voting against the development proposal in December 19th renegotiating terms, conditions to include community organizations and CBA meetings and negotiations, appropriate allocations and accountability of the $50 million Community Benefits Agreement, three, policy, create police substation safety networks for feasibility studies and mandates the construction scope of work and cost review by CSL to be approved by the City's finance office. Five, implements tax abatements, exemptions, freezes on existing buildings and OPA oversight and monitoring on the assessment schedules, six, connect parking bridge to Chinatown, the subdivision development to incentivize business traffic to Chinatown, implement rent control or rental mitigation standards and constructing of a civil engineering plan for the traffic and safety routes for the hospital systems. Thank you so much and thank you for everyone's amazing work.
Thank you very much. Will Mr. Christmas please call the last panel.
Will Edward Bell, Brandon Blue, Kimberly Cook and Terrence Washington, please come forward. Edward Bell, Brandon Blue, Kimberly Cook, Terrence Washington, please come forward. You will each have two minutes to speak. (Witnesses approached Witness table.)
Please state your name for the record and begin your testimony.
Hi. I'm Edward Bell. I live in District 1 and I am here to talk about Bill 15 240963. I'm an architect and a member of Queen Village Neighbors Association. I'd like to talk about quality of life in Center City. I came to Philadelphia 30 years ago and I have done a residential, commercial and institutional work in my life here. When my wife was admitted to Penn and after hearing Ed Bacon speak about city planning in Philadelphia and his work to improve Center City, its livability and his efforts to integrate its public transportation systems, his plan was successful and turned around the decades of neglect and abandonment, which made Center City and Society Hill livable again. And for that, he was recognized nationally and featured on the cover of the Time Magazine 1964 edition as the Man of the Year. Coming from Colorado, I was used to car aesthetic and owned and drove two, not because I wanted to but so much is because I needed them for my work. With my arrival here I was immediately struck by how easy it was to get around in Center City and I gladly gave up my cars and became an urbanite. We decided to move into Center City and to rent an apartment later by a house and started our professional lives here rather than move back to the place I considered home. Why you might ask? Because it worked, it was convenient. Center City was a walkable 20-minute city, a pleasant place where people could walk from home to work. We didn't own a car for about years. 10 My wife walked to Penn 11 Hospital at 8th and Spruce from our 12 house in Queen Village to deliver 13 our first and second sons. I make 14 these points because we're short on 15 time and you will either understand 16 what I'm saying or scratch your head 17 in disbelief that a nearly carless 18 lifestyle might be desirable. 19 If you are the latter, 20 you probably don't live in Center 21 City. And what we have not heard 22 from these developers is how their 23 plans will make our lives better, 24 more pleasant, more convenient, richer or more productive. And I think the reason is they probably know that putting an occasionally used arena on Market Street is equivalent to putting a cork in the middle of Center City's transit system. Importantly, it will also endanger the lives of patients trying to get urgent medical attention during peak traffic times. Ladies and gentlemen of the Council, please do not give up our gains. I urge you to think of the greater good. The relocation of Sixers arena to Center City will benefit few and do little to make life in Philadelphia better. Thank you. (Applause.)
Thank you. Please state your name for the record and please begin your testimony.
Good afternoon. My name is Anlin Wang and I live in Councilmember Phillips District. Thank you for this opportunity to speak about the arena proposal. I've been in Philly for the last dozen years. I'm proud to call this place my home. I'm particularly proud of this City Council for standing up for Philadelphians against the threat of Donald Trump in this past election. And one of the things I'm concerned about with the new Trump Administration they say they're going to start this new department called the Department of Government Efficiency designed to impose mass cuts to public supports across the country. One of the guys that's selected to lead this department has said that he is inspired by the current President of Argentina. He said, he's going to make that guy look like a moderate. This is a guy who in one year has increased the poverty rate of Argentina by 50 percent. That is the threat that we are facing here in Philadelphia as well as the poorest big city in this country, already a stat that I hear cited in these halls all the time. But instead of preparing for that threat, I am dismayed to see this current Mayor's Administration try and push through another project just to support billionaires and their small group of investors and cronies instead of the working people of Philadelphia. That philosophy is what lost the Democrats this election to begin with. It is frustrating to see it continue. But that said, I have hope and faith that this City Council will see the light and reverse course on the arena. Another reason to oppose the arena though is the guaranteed destruction of Chinatown. What the Sixers and the arena advocates have brought forward is that no, no, no, we have the CBA, it will protect Chinatown, but a CBA did not protect Washington D.C.'s Chinatown, and that's because nobody is forced out of their homes at the barrel of a gun. Rather they're forced out of their homes by the attraction offered by the free market. Imagine you are a working or middle class person. All of a sudden your home, your business value doubles in price. Who wouldn't say no. We've worked so hard our whole lives to take care of ourselves and our families. And so, that's why that offer is irresistible. Last thing I'll point out here real quick is look at the turnout, where is the pro arena crowd a few hours into the hearing. They're not here. And yet the evening hearings, they're all packed with people who oppose the arena. Why is that? Because it's a life or death struggle for us. So this fight is guaranteed to continue as long as the arena project continues. When the arena bill is dead, then you get peace back. Thanks very much for your time and please (inaudible). (Applause.)
Thank you very much for your time. Please state your name for the record and please begin.
Terrence Washington. Thanks for having me. I moved to Philly just two years ago to work at the Free Library of Philadelphia Foundation. I used to run One Book One Philadelphia. I live in District 3. My first year here year we read the book Interior Chinatown and everyone who was in Council at the time has a copy. And we chose it in part because we felt like some of the conversation around the arena proposal assumed that Asian Americans or Chinatown residents more generally were less American or less Philadelphian than everybody else. That's wrong. It's terribly messed up. I'll say again -- I mean, look, you should listen to Mr. Calvin Williams, you should listen to so many people who've said much more important things than I'm about to say about the schools here. But I'll say as a transplant I grew up in South Carolina as a fan of the Charlotte Hornets, Larry Johnson to be specific. A city can survive a team leaving. The Sixers are betting that the Philadelphia will give whatever they want to keep them from leaving. Charlotte got another team in two years. They got the name back in more. It's doable. I 8 guess the last thing I'll say is 9 that I don't actually think it's 10 possible to have a fair deal with billionaires. They become billionaires by turning all of our resources into their money. We're all in here on a work day discussing how much we should let them lower their tax rate when they're going to go and get what ends up being our tax money from the state and the federal government to try and push through their project. This whole thing has been insulting. I would say that if I were in a union I would be incensed at the way this process has happened and I wouldn't wish it on anybody else, late meetings, no information, all of that. Thank you for your time.
Thank you. Please state your name and begin your testimony.
I want to say first and foremost. Thank you, Council President Johnson and Councilmembers, for allowing we the people to speak on this proposal arena. Hello. My name is Colleen Ott. I'm of District 9. I am the Autistic Art Coalition of Philadelphia, Founder and CEO. I'm a retired EMT of Philadelphia and the tri-state area of 13 years. Our second location is in Chinatown at 112 North 8th Street inside of Liberty Resources where I am a consumer too. Two years ago the City of Philadelphia set the standard as the first certified sensory inclusive city in the united States as being a beacon on the right hand of history with autistic neurodivergent and/or intellectual disability individuals of all ages and all walks of life. This past weekend in West Philadelphia and at the Lucian Blackwell Community Center I had several conversations with people. I asked the question what do you think about the arena, including community partners such as the Philadelphia Autism Project who had the same (inaudible) as 40 others I had conversations with from North, South, East, West Philadelphians who opposed the arena proposal, but one person was not in agreement of the arena from November 1st to today. As a disabled individual, this causes disruption, not sensory- compliant. Thank you for letting me speak. Have a great day. Peace. (Applause.)
Thank you, colleague. Please state your name for the record and begin your testimony.
My name is Kimberly Cook and I live in the 3rd District. And I'm actually not reading the testimony that I had prepared for today. I would like to instead respond to Councilmember Bass's, who's not here right now, question earlier about all of the unanswered questions. There's a lot so I'm going to read very fast and fit in as many as I can in my time. Why won't the billionaire developers give a single dollar more than the measly 50 million in CBA? Why did the City just accept the developers' starting position from 2022? Why is the Mayor refusing to negotiate a better deal? Why were Councilmembers not invited to the CBA negotiations who are supposed to be present in those spaces to represent their constituents? Why were the impacted communities not involved in the CBA? Why are the Sixers refusing to share their sublease with the City? Why are the Sixers' job projections so wildly different from the City's projections? Why do they keep lowering projected revenue that they think they'll make? How many new jobs will the arena actually create? What kind of jobs will they be, permanent, full-time? What is the net impact on jobs when we take into account loss jobs? What happens if the Sixers don't honor the EOP? Why should we trust their EOP when in 2024 only 3 percent of the Sixers suppliers and vendors were certified minority-owned? And why should we trust them when they only employ nine people from Camden when they promised to employ 250? Why should we give up over $400 million in property taxes to three billionaires that should be going to our schools? What is the City's plan for when the arena wipes out 100 billion in tax revenue from small businesses near the arena? How can we guarantee that traffic will not impact people in dire health in emergencies trying to get to Jeff? Who is paying for the $25 million increase in necessary additional annual funding for SEPTA? Who is paying for the hidden cost to upgrades to sidewalks, street lamps, trash cans and other infrastructure costs? Who is paying for the additional City worker staff that will be necessary for trash pickup, trash enforcement and street maintenance? Why is City Council relying on an economic impact study that admits it "should not be relied on"? How is a comparison of arena drivers to New York City realistic when only 46 percent of New Yorkers own cars compared to 71 percent in Philadelphia? How much of our state tax dollars will the Sixers be seeking? Why are so many aspects of the Sixers' master plan not flushed out? And without an absolutely 100 percent complete crosschecked clear plan, why are we even putting this up for vote? And why are we selling out our city for an insulting $50 million to a few billionaires against the will of the people? (Applause.)
Thank you. Thank you for your testimony. Please state your name for the record and please begin your testimony.
-- City Councilmen and staff. My name is Brandon Blue. I am from Montgomery County. I am an up and coming architect and I have been working with local architect firms such as Design Philadelphia and PhilaNOMA. I am also a recent graduate at Temple University. For the past two weeks I did some research regarding the economic impacts of constructing a downtown arena. Using sources from many different articles and peer- reviewed essays, I have found some damning evidence from which it is imperative to share with the City Council and the people of this great city. Based on the sources from J.C. Bradbury's The Impact of Professional Sports Franchises and Venues on Local Economies, a comprehensive survey, the universal consensus is that there are no 11 significant positive impacts regarding to the construction and operation of a downtown arena. Therefore, there are no significant economic impacts to their surrounding communities after the arena has been built. Proponents of the sports arena typically exaggerate the financial benefits to gain more support from City officials to help fund these projects. Team owners and proprietors use the people's support for their favorite team to blind them from the truth, the truth being that construction and stadium operational jobs are mostly temporary and do not provide enough wages for substantial financial security. Local communities and businesses are at risk of displacement and could suffer from negative economic impacts if local businesses do not pertain to sports- adjacent businesses like bars, restaurants and local entertainment. With the addition of this new arena, local communities will lose their identities and only percent to 50 17 percent of businesses might survive. 18 SEPTA, Philadelphia's 19 primary provider of public transit, 20 is an authority that is devastatingly underfunded. Even with the government's flexing of highway funds to SEPTA, it would still nearly impact the authority. It would have to bear the massive cost of renovations to Jefferson Station and the increased demand for new trains, all for a whopping $20 million to $25 million. And do you honestly think for a second that only 40 percent of people will drive to this arena? I have it up -- considering that the United States is an extremely car-dependent nation, traffic hellscapes in the city would be overwhelmingly guaranteed. So for all these reasons I cannot in great consciousness support this arena and the community funds go from 50 million to 100 to an insulting 130 million, and it's just the funding is completely like unclear, unprecise. And to the Black and Brown communities who support this project that will always be disenfranchised, always be the displaced by billionaires who intend to always keep us out of earning even a quarter of what these billionaires make, why? Why are we trusting these billionaires to provide gentrified communities with jobs and economic security? In fact, one of the owners of the Sixers, David Adelman, was literally the guy who caused the gentrification of a predominantly Black community to stop student housing for Penn's campus. Wait, just one more thing. And let me be clear, if you have not learned anything from all these incredible, clear testimonies against the arena today, I want you to keep this following statement in mind. If you still wish to approve this arena, you are denying the integrity, dignity and genuine opportunities to not only Chinatown, not only the Black and Brown working-class communities in the city, not only the School Districts, not only SEPTA and not only the health care providers but also the entire community and new Councilmembers supporting this would support and sustain the moniker that Philadelphia is the largest poor city in the U.S. So let's be clear, this is not NIMBYism. These are real concerns. So let us be real that these promises are fantasy. Thank you. (Applause.)
Thank you. This concludes the hearing for Bill Nos. 240963 and 240964. There being no further questions from members of the Committee and no other witnesses on the list to testify, I want to thank all the witnesses who came in today for their participation. We surely value your opinion. We will now go into our public meeting to consider the action to be taken on Bill Nos. 240963 and 240964. Mr. Christmas, will you please take the roll.
Present. Thank you, Mr. Christmas. A quorum of this Committee is present. The Chair recognizes Councilmember Squilla for an amendment to Bill No. 240964.
Thank you, Mr. Chairman -- thank you, Mr. Chairman. I move -- I offer an amendment to Bill No. 240964. A copy of the amendment has been circulated to all members of the Committee and I move for its adoption. (Duly seconded.)
The Chair notes for the record that Councilmember Thomas seconds the motion. All those in favor will signify by saying aye. (Aye.)
The ayes have it. The amendment to Bill No. 240964 is adopted. The Chair recognizes Councilmember Squilla for a motion on Bill No. 240964 as amended.
Thank you, Mr. President. I move that Bill No. 15 240964 as amended be reported from this Committee with a favorable recommendation and that the rules of Council be suspended as to permit the first reading of this bill at the next session of Council. (Duly seconded.)
The Chair notes for the record that Councilmember Driscoll seconds the motion. It has been moved and properly seconded that Bill No. 4 240964 as amended be reported from this Committee with a favorable recommendation and that the rules of Council be suspended to permit first reading of this bill at the next session of Council. All those in favor of the motion will signify by saying aye. (Aye.)
Three nos? Still for the record do a roll call vote. Councilmember -
Can I offer a brief comment before I register my vote?
Thank you, Council President. I remain undecided on the Arena project overall. I remain committed to participating in an engaged manner in all of these proceedings and given whatever input I can as these negotiations go forward. However, at this point I have too many important unaddressed questions and concerns to vote to move any legislation out of this body. And my vote is nay. (Applause.)
Excuse me for a second. We let everybody have the opportunity to give their public comment respectfully. Can we just conduct the business in a respectful manner. That's all we're saying. That's why we set it up for a tremendous amount of opportunity for people to come down and give their perspective, pro or con, as we go through this legislative process. And I just ask that respectfully. Please call the roll.
Councilman O'Neill is absent. Council Lady Gilmore Richardson is absent. Councilman Thomas.
Council President, can I also have the floor for one second?
Briefly. Thank you so much. I remain committed to all negotiations. I am currently undecided for the unanswered questions. And for the lack of support and financial resources for the impact of the communities, I'm a nay.
Bill No. 240964 as amended will be reported from this Committee with a favorable recommendation and suspension of the rules to permit first reading of this bill at the next session of Council. The Chair recognizes Councilmember Squilla for a motion on Bill No. 240963.
Thank you, Mr. President. I move that Bill No. 4 240963 be reported from this Committee with a favorable recommendation and further move the rules of Council be suspended to permit the first reading of this bill at the next session of Council. (Duly seconded.)
The Chair notes for the record that Councilmember Driscoll seconds the motion. It has been moved and properly seconded that Bill No. 17 240963 be reported from this Committee with a favorable recommendation and that the rules of Council be suspended to permit first reading of this bill at our next session of Council. All those in favor of the motion will signify by saying aye. (Aye.)
For the record it's the same 3 that opposed the initial bill, right, that's correct? (Yes.)
So for the record the ayes are 10 and the nays are 3. The ayes have it, and Bill No. 240963 will be reported from this Committee with a favorable recommendation and the suspension of the rules to permit first reading of this bill at our next session of Council. This concludes the business before the Committee of the Whole for today. I recognize Councilmember Squilla for a motion to recess the public hearing on the following bills: 240966, 240967, 240968, 240969, 240970, 240971, 240972 and 240973 to Monday, December 2, 2024 at 6:00 p.m.
It has been moved and properly seconded that the public hearing on Bill Nos. 240966, 240967, 240968, 240969, 240970, 240971, 240972 and 240973 be recessed to Monday, December 2, 2024 at 6:00 p.m. All those in favor will signify by saying aye. (Aye.)
The ayes have it and the motion carries. The public hearing on Bill Nos. 240966, 240967, 240 -- we're not finished yet. Be quiet please -- 240968, 240969, 240970, 240971, 240972 and 240973 stands in recess until Monday, December 2, 2024 at 6:00 p.m. Thank you all very much for your participation today and have a blessed Thanksgiving. (Committee of the Whole concluded at 4:53 p.m.) C E R T I F I C A T I O N I, hereby certify that the proceedings and evidence noted are contained fully and accurately in the stenographic notes taken by me in the foregoing matter, and that this is a correct transcript of the same. __________________________________ TANEHA CARROLL