PA: The Sixers will pay for SEPTA passes for season-ticket holders for a year. A key lawmaker wants them to go further.

Philadelphia lawmakers and the 76ers are negotiating over details of the team's commitment to fund SEPTA passes for ticket holders to get to the proposed Center City arena, a development that comes as transit has become a sticking point in the advancement of the arena proposal.

The team has already agreed to pay for SEPTA passes for season-ticket holders to get to Sixers games for one year. But a key lawmaker wants them to go further.

City Councilmember Mark Squilla, who represents the area where the proposed Sixers arena would be located, near 10th and Market Streets, said during a Council committee hearing Tuesday that he wants the team to pay for transit passes for all ticket holders for the first year, as well as in subsequent years if the team's public-transit ridership goals are not met.

Squilla told reporters that the team had agreed to subsidize transit passes for all ticket holders for a year. A spokesperson for the developers initially confirmed the team agreed to do so, but later clarified that the arrangement applies only to season-ticket holders as part of a community-benefits agreement that was already negotiated.

The back-and-forth came as City Council members voted to advance two pieces of procedural legislation related to the proposed arena: one that would remove the site of the proposed arena from an existing tax financing district, and one that would establish community input and oversight of the area around it.

Members voted 10-3 Tuesday to move the legislation out of the Committee of the Whole, which is composed of all members. Councilmember Kendra Brooks already expressed opposition to the project and voted against the bills. Two other members who publicly oppose the arena were absent Tuesday.

Two additional members, Councilmembers Rue Landau and Jamie Gauthier, voted against the legislation Tuesday and said in a joint statement that they oppose the project as it currently stands, citing "unanswered questions and significant unaddressed concerns" about the impact on surrounding neighborhoods, public transit, and job growth.

However, they said they remain undecided and said "we have approached the proposed arena in Market East with open minds and continue to do so."

Council leaders said advancing the two pieces of legislation does not constitute approval of the project.

Council members are in the midst of a series of public hearings about the controversial project that proponents say will spur development and job creation in Center City. Opposition has been fierce, especially from residents in nearby Chinatown who say it could endanger their historic neighborhood. Dozens of residents testified against the arena Tuesday afternoon.

In recent weeks, the impact of the project on SEPTA has become a significant point of concern for some lawmakers. The transit agency is financially beleaguered — despite an expected infusion of dollars that Gov. Josh Shapiro announced last week — and has said it cannot absorb additional operational costs as a result of the arena project.

Traffic congestion and parking have also become points of contention for arena opponents. The 76ers have said those impacts can be blunted because they estimate at least 40% of event attendees will use public transit to get to the arena. That would be higher than current transit usage — about 85% of spectators drive to events at the Wells Fargo Center, where the Sixers are currently tenants, according to Comcast Spectacor, which owns that facility.

Squilla explained his transit pass proposal during a hearing Tuesday ahead of the vote. One bill that advanced would establish a traffic oversight authority and would empower the city controller, the city's independently elected fiscal watchdog, to review the developers' adherence to terms set by the city.

"This way, it keeps us as a city accountable, and it keeps the arena people accountable," Squilla said.

The idea isn't novel. The NBA's Golden State Warriors in San Francisco offers free public transit to ticket holders attending events at the arena where the team plays home games, as does the Seattle Kraken ice hockey team.

A spokesperson for a coalition of organizations that oppose the arena said in a statement that the problem isn't the cost of transit passes, but rather that SEPTA officials have estimated the authority will face millions of dollars a year in additional operational costs as a result of the arena.

"And the developers were crystal clear: They're not paying for it, we are, through higher fares and slashed service," the spokesperson said. "Throwing free passes for a season won't fix that."

The second bill members considered Tuesday would remove the site of the arena from an existing Tax Increment Financing District that covers the area, which is currently occupied by the Fashion District mall. In areas covered by TIFs, the city can use a portion of tax revenue to support development and job growth.

If Council approves the arena, the site will be on city-owned land and won't be taxed, although the team will contribute a payment in lieu of taxes (PILOT). If the project does not move forward, the status quo would remain.

Under state law, the bill had to be voted out of committee this week in order for the full Council to consider it before the end of this year. The Sixers have said the city must approve the project this year for the team to maintain its construction timeline and open by the 2031 NBA season, when its lease at the Wells Fargo Center expires.

Much of the testimony Tuesday was about the economic development of Market East, the long-struggling Center City corridor where some stretches have storefront vacancy rates as high as 50%.

In one contentious moment, two members disagreed about who is responsible for developing a plan for the neighborhood. City Councilmember Cindy Bass, who represents parts of North Philadelphia, said arena opponents have not offered a viable alternative.

But Gauthier, of West Philadelphia, said that while members of the community should guide the future of their own neighborhoods, it's the city's job to come up with a vision for Market East. Gauthier, an urban planner by trade, said ideas for specific projects typically come after the city adopts a master plan.

"This kind of seems a little bit the cart before the horse," Gauthier said.

Bass responded that there's "nothing wrong" with Council members asking residents and activists who oppose the arena what their alternative ideas are for the neighborhood.

"It's irresponsible not to at least ask for folks to come and to expound upon what is their vision for that community," she said.

This story was updated to include additional information about the Sixers' agreement and details of the vote that took place late Tuesday.

___
(c)2024 The Philadelphia Inquirer
Visit The Philadelphia Inquirer at www.inquirer.com
Distributed by Tribune Content Agency, LLC.