Plans to build a new arena for the Philadelphia 76ers in Center City have fallen through, and the team now plans to stay in South Philly, according to sources close to the negotiations.

The reversal comes less than a month after 11 bills related to the construction of the proposed arena, known as 76 Place, passed a final vote in the Philadelphia City Council following several weeks of hearings and public comment sessions.

The controversial project was supported by Philadelphia Mayor Cherelle Parker, who formally endorsed the proposal in September.

The $1.3 billion proposed arena was set to be built in the city’s Market East section, on Market and Filbert streets at 10th and 11th streets, and replace part of Fashion District Philadelphia. The 76ers currently play in the Wells Fargo Center at the South Philadelphia Sports Complex.

For months the project has been met with fierce opposition from Chinatown advocates, who’ve said the arena would raise rent prices, increase traffic, and impact the preservation of the neighborhood and local businesses. An independent report released by the city and funded by Sixers owners in August said that the arena could hurt Chinatown by indirectly displacing people and small businesses through gentrification and rising prices.

Advocates for the project, including local unions and city council members, argued the arena would revitalize the city’s economy and add thousands of jobs.

Philadelphia City Council Minority Leader Kendra Brooks and Minority Whip Nicolas O’Rourke, members of the Working Families Party and opponents of the arena proposal, said in a statement Sunday that keeping the Sixers in South Philadelphia “has always made the most sense,” and called the decision not to build in Market East “a historic win.”

“Over the last two years, the Minority Party in Council stood firmly with the community to oppose this plan because it never made sense for Philadelphia,” Brooks and O’Rourke said in part. “Community members and organizations raised critical questions about the arena that went unanswered and are now fully vindicated for doubting the 76ers’ commitment to cherished neighborhoods. This outcome would not have been possible without the courage and dedication of community leaders, organizers, and Philadelphians who spoke up and fought back.”

The arena was scheduled to open in time for the 2031-2032 NBA season, with construction slated to begin in 2026.

Another source told CBS News Philadelphia that other plans unaffiliated with the 76ers are in the works at Market East.

“Comcast has also pledged to commit the financial resources needed to revive the dormant Market East corridor, which is critically important to the entire city,” Mark Lynch Jr., business manager of IBEW Local 98 wrote in a statement. “For IBEW Local 98 and the Trades, a $1.3 billion project just turned into a multi-billion development that will create a stunning new stadium district that will keep our members working for decades.”

Lynch Jr. described the decision as “a significant win” for the Sixers, Comcast, union members and the city of Philadelphia as a whole.

Ernest Owens, president of the PABJ and independent journalist, who first broke the story also confirmed there will be an 11 a.m. news conference on Monday regarding the decision.

Sixers fans said they were surprised by the news.

“If they’re staying here, I mean, there’s a beautiful complex here obviously in South Philly,” Chris Vitali said. “I think it would be great for the community.”

Sixers fan Matt Baker said he supports the move.

“It is a little bit perplexing of how much went into it and all the political impact that that had. I really think at the end of the day, that’s what it was all about. It was politics, but the right thing was done,” Baker said.

Ryan Bondaga with Dim Sum Garden in Chinatown said he’s happy to hear the Center City arena is off the table.

“If they bring the arena into Chinatown, that would be a disaster for us,” Bondaga said, “but the arena being in South Philly, I think is such a great decision.”