The 76 Place development team engaged MuniCap, a firm with over 20 years experience in tax projections and advising municipal governments, who estimated tax revenues by applying the City’s taxing methodology and tax rates to the taxable operations for both the arena and Fashion District Mall. Their analysis assumes removal of the arena parcels from the existing TIF district, construction of the arena, and repositioning of the Fashion District Mall.
The tax streams analyzed include property, wage, business income, sales & use, use & occupancy, amusement, outdoor advertising, realty transfer and liquor taxes and are based on construction and operating assumptions for the arena and portion of the mall to remain.
The estimated tax revenues were first calculated on a gross basis, and then subtracted the tax revenue currently generated by the existing uses on site as well as the tax revenue currently generated by the Sixers games and other events that are already occuring in Philadelphia at the Wells Fargo Center. This demonstrates that the tax revenue will, in fact, be above and beyond what would have been generated if we stay at the Wells Fargo Center.
This analysis also does not include any estimates of taxes generated by offsite activity such as spending at restaurants, bars, retail, hotels or other businesses – it is solely based on the onsite activity and thus is a conservative outlook on the overall tax impacts.
