A partnership that has proposed to redevelop the Gallery
into an outlet mall is now armed with a total of $100 million in public
subsidies to help fund a significant portion of the project.
Macerich Co. (NYSE: MAC) and Pennsylvania Real Estate
Investment Trust (NYSE:PEI) received another $10 million in taxpayer funds
to support the project. This time the money came from Pennsylvania’s
Redevelopment Assistance Capital Program.
As of April 2015, the project had received a total of
$90.5 million in public investment from the state and the city through a
variety of state grants, according to a break down from the Philadelphia
Redevelopment Authority. Part of that sum came from the state, which had
previously committed $15.5 million as well as $55 million in tax increment
financing for the project approved by the city and the Philadelphia School
Reform Commission.
The extra $10 million received from the state will be
used for facade work, interior renovations that include the installation of new
mechanical systems and the replacement of escalators and elevators.
The cost to transform the Gallery into an outlet retail
center totals $325 million. Of that amount ,PREIT and Macerich plan to invest
roughly $234.5 million while the other $100 million is coming from the public
subsidies. Those expenses are in addition to $250 million that was spent to
acquire control of the three-block complex.
Source: Philadelphia
Business Journal
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