A community impact analysis says the proposed 76ers arena in Center City Philadelphia could have a negative impact on half of Chinatown’s small businesses

A rendering of the proposed 76 Place in Center City Philadelphia.
Photo: Gensler

BJH Advisors and Sojourner Consulting — paid by the City of Philadelphia — has completed and published a community impact analysis that seeks to provide an “an unbiased assessment” of how the proposed 76ers arena (known as 76 Place) in Center City Philadelphia would impact the surrounding communities.

The report’s opening remarks say the City of Philadelphia “requested a focus on Chinatown due to its complex social, commercial, and cultural systems, its importance to marginalized populations, and its cultural significance.”

In a very brief synopsis of the 135-page report, the consultants wrote:

Since Chinatown is a unique and interconnected system, the consultant study identified that significant impact to small businesses or transportation could affect the whole community. These impacts may trigger a cascade of indirect impacts throughout the system, which could potentially result in the loss of Chinatown’s core identity and regional significance. The following are specific findings of the report:

  • As a regional hub for Asian residents and businesses, Chinatown’s vitality is car-dependent and already suffers from concerns with traffic, parking, and loading. Increased congestion, or even the perception of congestion, together with the shift in ethnic profile of demand, will likely exacerbate existing negative dynamics driven by increased property values.

  • Chinatown’s economic and real estate model depends on realizing value of ethnic-centric land ownership and leasing patterns which, in turn, is dependent on ethnic-centric demand in business and residential markets.

  • Although the project will not lead to direct housing displacement, there is evidence for increased indirect displacement of small businesses and low- and fixed- income individuals through gentrification and loss of cultural identity in Chinatown if the 76 Place were built.

  • An analysis of Chinatown‘s small businesses found that:

    • One out of five small businesses in Chinatown are positioned to experience positive net economic benefit from the Arena. These businesses are mainly in the entertainment, food, and hotel sectors.

    • Half of the small businesses in Chinatown are not positioned to benefit from the Arena and may experience negative impacts. Most of these businesses are in the financial and professional services, healthcare, supermarket/grocery, and wholesale sectors

The enclosed Community Impact Analysis underscores the significance of Philadelphia’s Chinatown as an interconnected social, economic, and cultural system of regional importance. Additional support for Chinatown’s residents and small business community will be necessary to ensure that any development initiatives prioritize the well-being and resilience of Chinatown.

Click here to read the full analysis.

Wei Tsay

Founder & Editor

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