This City's Proposed New Arena Will Come With A Major Side Of Housing

The Philadelphia 76ers are staying put in their home city until 2061, with plans for a massive new arena that could also include more housing for the area. The development in Center City will cost $1.3 billion and will not be funded by the city.

Philadelphia Mayor Cherelle Parker laid out the plans. The crown jewel is the 18,500-seat 76Place, which will need approval from the city. The project initially called for a $250 million apartment building on the arena’s north side. That 25-story tower would have 395 units and a fifth would be designated for affordable housing.

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The latest update also adds to the development on the south side of the arena, with 380 units of housing and 28,000 square feet of retail space. Development could start in 2027. A second development phase would add 340 residential units and 26,000 square feet of retail space and begin construction in 2031. The stadium itself is expected to be ready by 2031. 

The team is owned by Harris Blitzer Sports & Entertainment (HBSE), which also owns the New Jersey Devils. HBSE is no stranger to large real estate projects. The company operates the Prudential Center in Newark, New Jersey, a large venue where the Devils play and features the GRAMMY Museum Experience. HBSE has a separate real estate division. 

A separate company, 76 DevCo, was created for the arena project. It is a partnership between 76ers managing partners Josh Harris, David Blitzer, Philadelphia billionaire and Campus Apartments CEO David Adelman. They will work with Mosaic Development Partners, a Philadelphia-based real estate company.

The company will have to demolish part of the Fashion District mall to make room for the project. The developers have pledged $50 million to support initiatives within the Philadelphia community. Another project from the Goldenberg Group would also add a 400- to 600-room hotel to the area. 

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“I wholeheartedly believe this is the right deal for the People of Philadelphia,” said Mayor Parker in an update she posted on X. She called the arrangement the best financial deal ever entered into by a mayor of Philadelphia. 

The area is adjacent to Philadelphia’s Chinatown district and Mayor Parker promised the city that no buildings in Chinatown would be torn down. However, many people in Chinatown oppose the deal and feel it will create long-term damage for Chinatown residents in terms of traffic flow and access to emergency health care. 

The City Council will have the final approval on whether or not the project happens. The mayor's office will host a series of town halls to allow citizens to examine and respond to the proposal. The project is expected to create 9,100 jobs and deliver $1.5 billion to the city in tax revenue over the next 30 years. However, a study released earlier this year said the project could cost the city $1 billion in tax revenue and damage small business growth. 

New stadiums are often a source of controversy for cities. While new venues can provide jobs, large-scale construction can cause years of disruption and the return on investment isn't always clear. One thing in this project's favor is that the city is not being called upon to foot the bill. 

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