Foxwoods Casino plan awaits outcome of zoning talks
Plans to move the Foxwoods Casino into two floors of the old Strawbridge's building are stalled as the Pennsylvania Real Estate Investment Trust tries to work out differences over zoning with the owner of seven floors of the building.
Plans to move the Foxwoods Casino into two floors of the old Strawbridge's building are stalled as the Pennsylvania Real Estate Investment Trust tries to work out differences over zoning with the owner of seven floors of the building.
In testimony yesterday before City Council's Rules Committee, PREIT executive Chris Mrozinski said the trust was "making progress" in lease negotiations with Foxwoods.
But he added that "nothing had been resolved" between PREIT and Gramercy Capital Corp., owner of the seventh through 13th floors in the Center City building.
PREIT needs Council to change the zoning of the building to accommodate a casino. But Gramercy, which owns 40 percent of the building, objects.
Councilman Frank DiCicco said that until PREIT and Gramercy worked out their differences, he would not recommend bringing the zoning change to a full Council vote. He did, however, recommend moving the matter out of committee.
"We have to resolve those issues," DiCicco said.
The impasse comes at a critical time for Foxwoods, a partnership between the Mashantucket Pequot tribe and family charitable trusts for developer Ron Rubin, Comcast-Spectacor chairman Ed Snider, and entrepreneur Lewis Katz.
The clock is ticking, DiCicco said. A license for the project runs out May 29. Council will recess for the summer on June 18.
DiCicco said he was "shocked" when he learned last Thursday that Gramercy did not think casino zoning would be in its best interest.
A local unit of Gramercy bought the seven floors in 2005. A year later, PREIT bought the lower floors.
Gramercy tenants include Citizens Bank, the city's Community Behavioral Health system, and the state's Government Services Administration.
DiCicco said he was concerned that the matter could lead to litigation, which could hold up Foxwoods' plan to seek state approval for a move into 801 Market St.
After yesterday's testimony, Mrozinski did not elaborate on talks with Gramercy or Foxwoods. He said only that PREIT and Foxwoods had made "progress" on lease negotiations for a slots parlor on the second and third floors. The two parties, he said, "were moving in a positive direction."
With Gramercy, too, "discussions were moving forward," Mrozinski said, without giving details.
Six months ago, Foxwoods announced that it would move its slots parlor off the waterfront in South Philadelphia to Center City. DiCicco said trying to accommodate that "has been a painful process that has created a lot of anxiety."
"At the end of the day, if they can't get a lease, all of those efforts would be for naught," DiCicco said.
"We need to figure out in the next couple of weeks if these guys are for real," he said.
He added that if Foxwoods failed to get a lease for Strawbridge's, it could return to its South Philadelphia site.
