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University officials are negotiating to bring an arts cinema and fresh food market to the strip. The University's long-awaited plans to turn the 40th Street area into a major retail and entertainment corridor will likely reach fruition in early 2000 with the addition of a niche-movie theater, specialty food market and parking garage. Administrators hope the three new additions to Penn's campus -- which are scheduled to open in about 1 1/2 years -- will make 40th Street a vibrant attraction to all University City residents while also alleviating complaints about a lack of grocery options and parking. Although none of the plans are finalized, Tom Lussenhop, Penn's top real estate official, said yesterday that the movie theater, market and parking garage "definitely" will be coming to the 40th Street area. "I think it's a wonderful step in the revitalizing of West Philadelphia," said Lynn Lees, the History Department chairperson and a longtime West Philadelphia resident, when told of the news. The Sundance Cinemas -- a joint venture of actor-director Robert Redford and the General Cinemas chain -- will occupy space mostly in the Hamilton Village shopping center where United Artists Eric 3 operated until 1994, Lussenhop said. In addition, a "major element" of the theater -- which will be among the chain's first -- will occupy the corner of the shopping center at 40th and Walnut streets where Burger King currently operates, Lussenhop said. The theater will be the centerpiece in the University's efforts to invigorate the 40th Street area. In another part of its plans, the University will build a multi-story parking garage with a specialty market -- which will likely be open 24 hours a day -- on its ground floor on the northwest corner of 40th and Walnut streets. A parking lot currently occupies this space. The movie theater, specialty market and parking garage are the latest in the University's retail development plans, which include the construction of the hotel and retail complex Sansom Common and the opening of Eat at Joe's in the Walnut Mall. In July, Sundance Cinemas signed a letter of intent with the University to bring an independent theater to Penn. The movie chain and the University are still negotiating the lease, but Lussenhop said that he "fully expects" Sundance to come to campus. The University's efforts to lure Sundance Cinemas to Penn had long been impeded by a clause in the the lease of Cinemagic, the campus' only movie theater since 1995. The clause gave owner Andrew Sheppard the right of first refusal over any new cinema on campus. Sheppard had been unwilling to relinquish that right. But Lussenhop said yesterday that "the situation had been resolved amicably and equitably" and that all obstacles to building the new theater "had been completely removed." Sheppard could not be reached for comment last night. The new movie theater will have multiple screens, a bar and food. "It will be a place where people can enjoy themselves before, after and during the film," Lussenhop said. Redford announced in August 1997 that his Sundance Institute would create a chain of film theaters dedicated to screening independent, foreign and speciality films. The chain has yet to construct any theaters. University administrators hope that the first one will open on Penn's campus, according to Lussenhop. Officials at Sundance and General Cinemas could not be reached for comment yesterday. Plans for the specialty food market are not as far along as the theater. Lussenhop said the University is in "serious negotiations" with an operator similar to Fresh Fields/Whole Foods, but declined to name the company. Lussenhop cautioned that the new store is not intended to be a full-scale supermarket. "The goal of this market is to offer fresh and prepared foods in a highly attractive, safe, 24-hour environment," Lussenhop said. Lussenhop added that the University is moving through a "complex design process" to understand how such a store "can operate in a way that adds to the cityscape." One reason for building the grocery store is complaints from students, who have long said their current grocery store options -- including the Thriftway supermarket at 43rd and Walnut streets and the campus' various convenience stores -- don't meet their needs. But Lussenhop said University administrators believe that the market will serve all members of the University City community. The market will "be a real boon to the area in terms of round the clock pedestrian traffic," Lussenhop said. A 24-hour market fits into the University's efforts to increase late night foot traffic in the University City area. The newly opened bookstore remains open until 11 p.m., while the Xando coffeehouse-bar does not close until 1 a.m. on weekdays and 2 a.m. on weekends. Lussenhop said he expects the market and the theater will attract thousands of pedestrians to the 40th Street area on a weekly basis. The parking garage is also an effort by the University to fill a gap on campus. Its construction is due, in part, to the demands of the new theater, but also because of a lack of parking alternatives that has developed in recent years. The construction of Sansom Common on the site of a former parking lot and Presbyterian Medical Center's decision to restrict parking to faculty has limited the availability of parking on and near campus. Also, the School of Dental Medicine plans to build a 55,000-square-foot facility on the 40th and Locust streets site currently occupied by a parking lot, displacing many drivers. "The garage is driven by needs that are academic, administrative and commercial," Lussenhop said. While Burger King's "occupancy will be affected" -- it will not necessarily leave, but possibly give up part of its space -- the University has not yet determined whether any other current 40th Street retailers will be affected, according to Lussenhop. "As leases come up for renewal, we'll evaluate whether there's interest on the part of the owner and on our part in them continuing to operate at their present location," he said.

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