The arena is part of a larger redevelopment project of the central business district of Allentown. The project encompasses a 5-acre square block area, in which several new structures are planned to be erected: Part of the arena site was previously developed in the 1980s as an office building called Corporate Plaza. On February 23, 1994, it collapsed into a sinkhole, due to limestone in the ground and the decision to not place the building on a concrete pad, but rather on spread footings; the plaza was imploded on March 19 of that year. Inside the arena is a new ground-floor studio that houses WFMZ-TV's news operation.
Competition on building sites
Rebuilding an arena on the site of the Spectrum in Philadelphia was rejected in favor of the more profitable Xfinity Live! project and a new 180-room Renaissance by Marriott hotel. The competition to build a new arena for the Phantoms in 2008 was primarily between Allentown and Camden, New Jersey. While Camden was closer, Allentown had a more elaborate proposal which helped secure Allentown's bid for the team. Plans to build the PPL Center at the corner of 7th and Hamilton Streets in downtown Allentown were announced in late 2009. For much of 2009 and 2010, the focus of the project was on securing funding. The project took a major leap forward in 2011, when several properties were purchased by the city to help clear the way for the project to begin. By the end of January 2012, all of the properties had been purchased with final demolition of all buildings occurring in early February 2012.
On May 31, 2011 a comprehensive parking analysis conducted by Traffic Planning and Design, Inc. was submitted to Allentown Economic Development Corporation. The analysis stated the total number of parking spaces within the study area, between the public and private parking garages and surface lots, was of approximately 7,376 parking spaces. As a result of this parking analysis, the existing spaces and proposed construction of an additional 500 parking spaces to be built with this development, will adequately accommodate the highest peak period parking demands of the proposed Allentown arena and mixed-used development. In comparison, Coca-Cola Park on Allentown's east side has 2,500 parking spots available.
Traffic
Also on May 31, 2011 a comprehensive traffic analysis conducted by Traffic Planning and Design, Inc. was submitted to Allentown Economic Development Corporation. The report stated that the existing roadway infrastructure can accommodate the new traffic generated by the proposed development. Conditions will be further improved with the recommended improvements.
Controversy
Some concern about the PPL Center is centered on the cost of the arena relative to the cost of other dedicated American Hockey League arenas in the country. Nathan Benefield, the director of Public Analysis for The Commonwealth Foundation for Public Policy Alternatives, a Pennsylvania free-market think tank which opposes public funding of stadiums, believes that the PPL Center benefited from funding a plan with no cap on public money beyond the annual revenue generated by the zone. As of October 2012, $224.3 million in bonds have been sold.