Philadelphia, April 23, 2015 – Mayor Michael A. Nutter praised Councilman Mark Squilla’s introduction of a package of legislation today in City Council which will advance the redevelopment of the Gallery shopping mall on east Market Street.
“This once-in-a-generation project has the potential to transform Market East, create thousands of jobs, and offer a new shopping and entertainment experience to Philadelphians and visitors to our city,” said Mayor Nutter. “I thank Councilman Squilla for introducing these six bills and one resolution on behalf of the Administration to begin the legislative process and move this project forward.”
Last week, the City of Philadelphia announced it had reached a tentative agreement with Pennsylvania Real Estate Investment Trust (PREIT) and The Macerich Company on a $325 million redevelopment of the Gallery. The proposed plan is subject to approval by Philadelphia City Council, the Philadelphia Redevelopment Authority and the School Reform Commission.
“The redevelopment of the Gallery will revitalize an entire section of Center City, helping to create a seamless corridor between the Historic District and City Hall, with new retail and restaurant opportunities for visitors and residents in Philadelphia,” said Councilman Squilla of the First District. “Together with the development on the 1100 block of Market Street (East Market) and the presence of the New York based retail brand Century 21, the Fashion Outlets of Philadelphia at Market East will rejuvenate this shopping destination that has served generations of Philadelphians.”
The two-year project to transform the Gallery into The Fashion Outlets of Philadelphia at Market East includes $90.5 million in public investment from the Commonwealth of Pennsylvania and the City of Philadelphia through a combination of state grants, $15.5 million of which has already been committed, and a proposed Tax Increment Financing (TIF) District which would generate a $55 million investment from the City. The TIF requires approval from both the School Reform Commission and the Philadelphia City Council.
“Redevelopment of the Gallery will create more than 2,000 jobs and all but complete the much-anticipated revitalization of Market East,” Council President Darrell L. Clarke said. “At the same time, we must be respectful of the Gallery’s place in the hearts of many Philadelphians, including merchants who are now being displaced. I look forward to a productive public discussion that includes the voices of those who made the Gallery the inclusive and distinctly ‘Philadelphia’ gathering place beloved by so many.”