A plan to build a $1.3-billion arena for the NBA’s Philadelphia 76ers is advancing after city officials voted 12-5 on Dec. 19 to approve the plan.

The proposed arena, called 76 Place at Market East, would be built in Center City Philadelphia on part of the site of the Fashion District mall. The venue is planned to seat at least 18,500, though design is not complete.

Mayor Cherelle Parker said during a state of the city address that the facility is expected to generate $700 million in tax revenue, and the 76ers have agreed to fund a $60-million community benefits agreement in addition to paying for the project without any money from the city.

“I’m proud of this deal, which compares favorably with any sports arena or stadium deal in Philadelphia history,” Parker said. 

The 76ers aim to move from their current home at the 20,000-seat Wells Fargo Center in South Philadelphia to the new arena in 2031. Under a timeline proposed by the team, demolition at the mall site would start in 2026, followed by the start of construction in 2028. They have not yet named a contractor. 

The team’s owners, Harris Blitzer Sports & Entertainment, along with their partners in the project, 76DevCo and Mosaic Development Partners, have also proposed building 54,000 sq ft of retail space, 720 residential units and more than 83,000 sq ft of parking at the arena site and nearby on Market Street. 

While officials voted to approve the plan, there is controversy over the selected location because of concerns the project could cause gentrification in Philadelphia’s Chinatown and other nearby neighborhoods. Councilmember Jamie Gauthier, who voted against the plan, said in a statement that the area needs revitalization, but that the $60-million community benefits agreement is not sufficient “to offset the harm” that will impact local residents, businesses and nonprofits.

“My training as an urban planner and lived experience as a lifelong resident of West and Southwest Philadelphia led me to conclude this is a bad deal for our city and communities,” she said.