Bright red shopping bags have been flowing out of Century
21's new store at the Gallery at Market East, but other changes - big and small
- are afoot at the Center City mall.
Though some small tenants have departed in recent weeks -
a 25-year-old sandwich shop will close for good Saturday - and others hear
rumors about stores moving, the mall's landlord, Pennsylvania Real Estate
Investment Trust, has approached the City of Philadelphia about public
financing, according to chief executive officer Joseph F. Coradino and Mayor
Nutter's office.
In his remarks to financial analysts Wednesday to discuss
PREIT's quarterly results, Coradino referred to unspecified plans with newly
added partner Macerich Inc. and the possibility of getting public money.
"Century 21 opened to the public just yesterday, and
we're tremendously pleased with the warm welcome they have received from
Philadelphians," Coradino said in a conference call. "This marks the
first step in the renaissance of the Gallery with Macerich as our partner.
We're poised to deliver a world-class project. Our discussion with the public
sector continues to progress with the expectation that City Council will
consider a public financing package in December and ratify it in early 2015. As
this process unfolds, we intend to update you on our vision, scope, schedule,
and returns."
Council President Darrell L. Clarke's spokeswoman said
Thursday she was unaware of such plans for Council consideration. After
Coradino's remarks were relayed to him, Nutter spokesman Mark McDonald
confirmed Thursday that PREIT was seeking public help.
"The mayor is strongly supportive of the efforts to
transform Market Street, and clearly the renewal of the Gallery is a key part
of that effort," McDonald said. "In broad strokes, we hope for more
doors onto the street and more activity on the street, a more exciting and
inviting place for Philadelphians and visitors."
The Philadelphia Redevelopment Authority owns the
Gallery, having spent $101 million on it in the 1970s. Deputy Mayor Alan
Greenberger told The Inquirer in February a new lease was in the works to give
PREIT control of the entire property.
"Once that lease is finished, PREIT will seek
private financing for the substantial renovation of the Gallery," McDonald
said. "The city has been asked for help to fill in any gaps in that
funding. We are working on the issues, including the lease and funding, and we
don't have a final plan in place. The timing issue as you present it is roughly
accurate, all depending on a variety of factors related to the completion of
the proposed lease and other matters."
A call to Heather Crowell, PREIT's Philadelphia vice
president for communications and investor relations, was not returned. Calls
and e-mails to a New York PREIT representative were not returned.
Meanwhile, it will be more difficult to get a sandwich at
the Gallery next week.
After 25 years, Michelfelder's Deli will close. Owner Ki
Kim had a four-color, handwritten sign atop a front counter thanking customers
and telling them the store will close Nov. 1. He fielded a call from a worried
friend while talking to a reporter in a back office. He said he had no problem
with management of the mall.
"The main reason is there is not enough business to
stay open," Kim, 70, said noting the bad stretch started during the
2008-09 financial crisis. "This is the worst year in five years."
A bookstore and fish market within steps of his shop
closed in September. Next door, Prime Time Jewelers store manager Tarun Verma
said, "This is the worst month since we opened the store in December
2011."
Auntie Anne's assistant manager Thomas Robinson said he
had heard that mall officials might want all food stores in a larger food court
and that something might happen in late December, but he also lamented the loss
of Michelfelder's.
"Most of the people come this way for Mr. Kim's
hoagies," he said.
Kim said he hoped Century 21 and other unknown changes
would benefit his small-store colleagues.
"I think it will, but I don't know," Kim said.
"It's only been here for a few days."
Source: Philly.com
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