Governor Wolf Announces $10 Million in State Funding to Redevelop Former Gallery Site into Fashion Outlets of Philadelphia
September 29, 2016
Philadelphia, PA – Governor Tom Wolf today announced a $10 million state grant to aid in the redevelopment of the Gallery, a former shopping center spanning three city blocks from 8th to 10th streets along Market Street in Philadelphia. The $575 million project will transform the site into the new ‘Fashion Outlets of Philadelphia,’ a 730,000 square-foot retail space expected to open in 2018.
“We have already shown through our great work on the Papal visit, the Democratic National Convention, and the NFL Draft to be held here next April that Philadelphia is a world class city,” Governor Wolf said. “The redevelopment and modernization of this area is vital to this important section of Philadelphia. This project will not only upgrade the Gallery and create new jobs and retail options, but it will also better connect people visiting this area to public transportation options and enhance pedestrian connection between landmarks like City Hall and Independence Hall.”
The $10 million Redevelopment Assistance Capital Program (RACP) grant will help the Philadelphia Real Estate Investment Trust (PREIT) close a final funding gap in the project, allowing it to become a reality.
“Everyone connected with this project sees this as further validation of the significant economic benefits that the Fashion Outlets of Philadelphia brings to this region, not just in jobs and long-term tax revenue, but in further elevating Philadelphia’s status a world class city,” said Joseph Coradino, CEO of PREIT. “We are so grateful for the governor’s support in this initiative and look forward to continuing to work together to fully realize the promise that our project and vision has to offer.”
The grant will be used to improve exterior facades that connect the street to public transportation, interior renovations including the installation of new mechanical systems and the replacement of escalators and elevators, and a greatly enhances pedestrian connection between City Hall, the Independence Mall historic area, and the recently expanded Pennsylvania Convention Center and the Avenue of the Arts.
“This renovation project will serve as powerful economic engine for the City,” Mayor Kenney said. “It will create construction jobs in the short term, retail and office for jobs for the long term and hundreds of millions in tax revenue.”
Throughout the course of the two-year construction period, over 2,100 jobs are expected to be created. Once the Fashion Outlets of Philadelphia has opened, PREIT and Macerich estimate approximately 2,300 direct and indirect permanent jobs will be created, including over 1,000 retail jobs and nearly 300 office jobs.
The expected one-time economic impact on the Commonwealth of Pennsylvania is $560 million, including $480 million for the City of Philadelphia, with an additional yearly economic impact of $300 million throughout the state.
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