WHYY: Proposed Sixers arena could cost millions in lost tax revenue, new analysis finds

A new analysis finds that 76 Place could cost Philadelphia and Pennsylvania more than $1 billion in lost tax revenue, a scenario that would nearly offset the public revenues the team says a downtown arena would generate.

Released Thursday, the study considers the potential impact the $1.55 billion project could have on local businesses, particularly those dedicated to food and entertainment. It shows that disrupting that economy, during construction and once the arena opens, could mean less money for the city and state in the form of sales and wage taxes, as well as the city’s business and receipts tax.

“It’s possible that there might actually be no impact or a positive impact. But under a relatively conservative scenario, there will be some negative impact on existing businesses due to increased congestion, traffic during the construction period, people avoiding the area as some of the streets will be closed and all the traffic patterns will be disrupted,” said Dr. Arthur Acolin, the Bob Filley Endowed Chair in the Department of Real Estate at the University of Washington.