Major makeover planned for The Gallery in Center City

CENTER CITY (WPVI) -- Plans to overhaul the The Gallery shopping mall in Center City are taking shape.

The Pennsylvania Real Estate Investment Trust and the Macerich Company reached a tentative agreement to renovate the indoor mall on Market Street into an outlet shopping center.

The developers released renderings to show what could become of the newly named Fashion Outlets of Philadelphia at Market East.

"We believe that the proposed redevelopment will position The Gallery as the next great urban marketplace in the United States, capitalizing on its central location where mass transit, tourism, the residential population and employment bases converge," said Joseph F. Coradino, CEO of PREIT. "The redeveloped property will become the foundation of a new, vibrant Market East District, and we are excited to lead this effort."

Plans for the 1.5 million square feet of space include 125 new stores, along with revamped dining and entertainment options.

The transformation will involve a new glass-walled Center Court at 9th and Market.

The proposal calls for $90.5 million in investments from the city and the state.

That funding still needs approval from Philadelphia City Council, the Philadelphia School Reform Commission and the Philadelphia Redevelopment Authority.

"This once-in-a-generation project has the potential to transform Market East, create more than 1,000 new permanent jobs as well as more than 2,000 construction jobs, and offer a new shopping and entertainment experience to Philadelphians and visitors to our city," said Philadelphia Mayor Michael Nutter, in announcing a tentative agreement.

"The time has come for the long-awaited redevelopment of Market East and I want to thank all of the partners involved for their years of hard work to make this proposal become a reality. This new attraction will be a place that all Philadelphians can enjoy for decades to come."

Demolition work would start soon after approval, but would require much of the mall to be closed for that time.

"We have worked for more than a decade to reach this point, and we are excited to move forward with a project that will make Philadelphia proud," said Coradino. "The time is right for Market East, and we can't wait to get started."

The proposed renovation is scheduled to reopen in Spring 2017.