A new analysis of the 76ers’ proposed arena near Philadelphia’s Chinatown warns that the construction and operation of the arena could lead to over $1 billion in lost tax revenue for the city and state.
The analysis: The study, authored by Dr. Arthur Acolin, an economist and University of Washington associate professor in real estate, estimates potential disruptions to existing businesses in the area over a five-year construction period and 30 years of operation. The analysis estimates potential consequences, including the possible closure of 566 businesses, the elimination of nearly 16,000 jobs and a cumulative loss exceeding $1 billion in tax revenue.
Substantial negative effects: Existing businesses in the proposed arena area reportedly contribute over $296 million annually in taxes, a revenue stream that the researchers indicate is at risk due to the impact of 76 Place. The construction and subsequent opening of 76 Place have the potential to significantly disrupt the operations and survival of numerous existing tax-paying businesses, according to the analysis. This disruption could then have substantial negative effects on the businesses’ activities, their employees and the financial well-being of both the city and the state.
About the 76 Place: In July 2022, development company 76 Devcorp, which is headed by real estate developer David Adelman, proposed a plan to build the new 76ers arena at 10th and Market Streets near Philadelphia’s Chinatown. Developers are aiming for the arena’s construction to begin in 2028 and its opening in 2031 when the basketball team’s lease at the Wells Fargo Center expires.
The opposition: The proposal was immediately met with fierce criticism from the members of Chinatown, who are worried it would worsen limited parking, traffic congestion, gentrification, displacement and the loss of Chinese culture in the area.
In response, Adelman stressed the support of business groups outside of the neighborhood and…
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