After opposing the operate of any state resources over the Sixers’ now-abandoned proposal to build an arena in Center City, Pennsylvania Gov. Josh Shapiro says he is not closing the list on the state’s involvement in the team’s novel project in South Philadelphia.
Shapiro, a Democrat in his first term and a major Sixers fan, said in a Wednesday interview with The Inquirer that he is “adamant and crystal clear” that he will not support the operate of state funds to build an arena along East Market Street.
But now that the Sixers and Comcast Spectacor have joined forces and announced a novel, multi-faceted plan this week that includes the revitalization of Market East, an comprehensive sports center in South Philadelphia with retail, restaurants and residential units, as well as the prospect of bringing a WNBA team to Philadelphia — Shapiro says he’s interested.
Still, Shapiro maintains he needs to look at the final plans for the newly proposed arena in South Philadelphia and the role city officials will play in offering incentives for the project before deciding “whether it makes sense for the community to invest or not.”
Shapiro said that as tensions over the Center City arena proposal escalated over the past few months, he encouraged leaders of the Sixers and Comcast Spectacor to re-enter negotiations.
“Fact [Comcast Spectacor and the Sixers] “We’ve been able to come together again and work together, which means we’ll have something really vigorous in the eastern market, we’ll have a great novel arena for the Sixers and hopefully the WNBA as well,” Shapiro said in an interview.
» READ MORE: How NBA Commissioner Adam Silver put an end to billionaire feuds and helped keep the Sixers in South Philadelphia
Shapiro said that as plans to withdraw the Center City arena proposal in favor of a new development in South Philadelphia were taking shape, he emphasized to Sixers and Comcast Spectacor business leaders that they were “not abandoning Market East,” a declining retail corridor in Center City just a few blocks away town hall. Philadelphia officials and leaders of the 76ers and Comcast Spectacor say they are committed to revitalizing the area, but details of that promise have not been released.
The mayor also said yes is interested in the fact that the new sports complex project in South Philadelphia will be part of a broader revitalization of underutilized parts of the city, mostly consisting of parking lots and warehouses.
“I think this whole area is an exciting area for development,” Shapiro said, pointing to South Philadelphia’s Bellwether neighborhood, the Port of Philadelphia and the Naval Shipyard as other areas the city should build.
“We also have an opportunity to develop the entire South Philadelphia area in a way that will be great for people to work, live, play and enjoy,” he added.
» READ MORE: As the Center City arena dies, the Sixers, Comcast and City Hall say they will continue to revitalize Market East
Shapiro also noted work already underway in the Bellwether neighborhood west of the stadiums and previewed future development in the Philadelphia Harbor area that he said his administration would announce. The Bellwether District, which is located on the former Philadelphia Energy Solutions refinery site, is being redeveloped by Hilco Redevelopment Partners, and businesses located in the district are eligible for state and local tax exemptions or credits.
A new project – worth investing in
It wouldn’t be the first time Pennsylvania used state resources to help build a sports arena in Philadelphia.
The state and city previously subsidized the construction of the Wells Fargo Center, Lincoln Financial Field and Citizens’ Bank Park in South Philadelphia – a total of $500 million for three projects.
As arena negotiations continued, New Jersey offered $800 million in tax breaks to attract the team out of state and build it in Camden.
Although Shapiro initially opposed using state funds to build the Center City arena in the Sixers’ earlier proposal, the governor said the many economic development opportunities offered by the team’s new project – from the revitalization of Market East to business opportunities in South Philadelphia – would give the state more to invest.
Pennsylvania frequently invests in community and economic development projects throughout the state, usually through public-private partnerships, to spur economic growth in the region. These investments often take the form of tax breaks, direct grants or logistical support.
For example, the Bellwether District is part of a “Key Opportunity Zone” that offers huge tax incentives for businesses looking to set up operations there. in Pittsburgh, Shapiro was announced last year that the state will spend $62 million over the next four years to support a $600 million downtown revitalization project supported by private sector companies, foundations and state and local governments.
