The Philadelphia City Council is nearing the finish line of a marathon of public hearings on the proposed $1.3 billion Sixers arena. With two weeks left and just three more hearings, the full committee will convene to hear testimony next Tuesday and again on the Monday and Tuesday after Thanksgiving. A vote later in December will seal the deal one way or another.
Last week, council members collected hours of testimony and public comments (mostly from residents and activists opposed to the arena) over three days. The conversation was also shaped by certain events outside the Council chambers. Here’s what you need to know.
SEPTA remains a question mark
SEPTA has already been a balmy topic at previous hearings, but its officials testified in person told lawmakers for the first time last week that transportation authorities did not have the ability to fund additional services needed to operate the arena.
The Sixers’ plan for the Center City arena calls for 40% of ticket holders to employ public transportation to games (which would represent a dramatic change in behavior – currently about 85% of fans drive to watch the team play at their current location in the South Stadium District Philly) to avoid traffic congestion around the arena and the nearby Jefferson Hospital trauma center.
SEPTA, which is involved in ongoing negotiations on the issue with the Sixers, announced earlier this month that it was entering a “death spiral” fiscal crisis and told some council members that funding for additional services would be impossible. Officials from Mayor Parker’s administration and Sixers corporate representatives insisted during public hearings that they would not foot the bill.
Last Tuesday, SEPTA officials took to the microphone to reiterate their position and discuss details of additional services to the arena. SEPTA Chief of Staff Liz Smith told lawmakers that to provide service that meets the 40% threshold, SEPTA will need to spend an additional $21 million annually on 20 additional regional rail trains on each game/event night and on other service improvements.
On Friday, Gov. Josh Shapiro threw SEPTA a transient bailout by announcing he would provide $153 million in federal funds to cover this year’s operating budget deficit – but that doesn’t solve the problem, and SEPTA anticipates as much as $240 million in annual budget shortfalls in the coming years. But the focus is more on the possibility of long-term financing solutions: Shapiro has insisted he will “not let SEPTA fail,” and Democratic state officials have promised to negotiate a funding source in next year’s fiscal budget.
Councilmember Mark Squilla, whose district includes the arena and who introduced legislation to allow its construction, he pointed to it as a reason to move forward with the arena. A council member told the Philadelphia Inquirer that he didn’t think the issue of additional SEPTA service would be a “point of contention” in the council’s decision-making process.
The school board is pushing the process forward
On Thursday night, the Philadelphia school board voted in favor of a resolution that clears the way for the City Council to adopt stadium regulations. City officials who made a presentation to the board described the vote as purely procedural and not a referendum on the stadium itself. However, many members of the public who spoke at the meeting – teachers, parents, students and members of community groups – urged members to vote no, arguing that approval would “green light” to the arena plan.
The resolution would remove the arena site from the existing tax increment financing district. This would allow the Sixers to not pay property taxes on the structures (a point often emphasized by arena opponents) and instead pay a fee in lieu of taxes (PILOT), which would ultimately be a lower amount. Seven of the nine Board members appointed by the mayor voted in favor of the resolution, and two voted against. One of the dissidents, ChauWing Lam, asked the board to postpone the vote and said yes “uncomfortable lack of full picture” on this matter.
Later application
A vote on the arena legislative package was initially scheduled for Dec. 12, but on Thursday, Council Speaker Kenyatta Johnson arranged an additional meeting for the council on December 19. The change results from legislative formalities – the draft law on financing tax increases requires a longer period of public consultations.
This extra week could prove beneficial to arena supporters, giving them more time to address concerns and convince council members to vote for the project. The final public hearing on the arena is scheduled for Dec. 3, giving the council more than two weeks to consider the bills without the focus of often intense public comment sessions.
The legislative package opening the arena will need nine votes to advance through the 17-member council.
