Gallery redevelopment goes to City Council; tax break bill offered up

The Gallery's transformation into a fashion outlet mall is officially on Philadelphia City Council's plate.

City Councilman Mark Squilla on Thursday introduced a plan for a city tax break that will help redevelop the Gallery into an outlet, according to Newsworks.

The measure was introduced after "certain layers of ownership throughout the Gallery from the Redevelopment Authority" were worked out through lawyers from the Pennsylvania Real Estate Investment Trust and the city, Squilla told Newsworks.

The goal is to get the bill approved before Council's summer recess.

Pennsylvania Real Estate Investment Trust (PREIT) and Macerich Co. are getting $90.5 million public subsidy to aid the redevelopment.

The Gallery project costs $325 million and the $90.5 million will come from two main financing sources from the state and city including grants and tax increment financing, or TIF. The state has already contributed $15.5 million.

PBJ reporter Natalie Kostelni has more.

PREIT and Santa Monica, Calif.-based Macerich announced last summer that Macerich bought a 50 percent stake in the Gallery for $106.8 million.

Source: Philadelphia Business Journal