City proposal would give Gallery $175M to maintain public areas
The revamped Gallery at Market East would receive more than $175 million in public funding over 43 years under a plan that gets the City of Philadelphia off the hook for directly maintaining the mall's public areas.
The revamped Gallery at Market East would receive more than $175 million in public funding over 43 years under a plan that gets the City of Philadelphia off the hook for directly maintaining the mall's public areas.
The proposal, which will first be considered by the city Planning Commission on May 19, calls for the public to pay for "construction, maintenance and operating costs" in public-access areas of the redeveloped mall, according to text of the legislation posted on the city's website.
The original deal between Philadelphia and the mall's planners put the city in charge of maintaining its public-access areas, since they are used during extended hours by commuters making connections at nearby rail stations.
Under the proposed legislation, the mall's owners - Pennsylvania Real Estate Investment Trust (PREIT) and Macerich Co. - would be in charge of those areas, with the city chipping in for their maintenance.
The city also is considering $127.5 million in tax breaks over 20 years to service a $55 million loan to help pay development and construction costs for the mall's revitalization.
PREIT and Macerich, a California-based mall developer, have said their plan to transform the Gallery into what they're calling the Fashion Outlets of Philadelphia will cost $325 million in new spending.
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