City announces waterfront plans

City officials complain that the Great Plaza at Penn's Landing simply isn't that great, so now they're scheming to make the name more fitting. Plans are continuing on a project that will transform the gray concrete expanse into the region's premier shopping and entertainment destination. The developer of the nation's largest mall -- the Mall of America -- met with city officials last week to assure them that despite missing multiple groundbreaking dates, the Philadelphia deal will continue. The $250 million project will place a mix of shopping, entertainment and cultural attractions on the banks of the Delaware River. Tenants will include an 18-screen movie theater, an FAO Schwarz and a Jimmy Buffet "Margaritaville" restaurant. "We remain very commited to making sure that the project becomes reality," said Kathleen Shields, vice president of the Simon Property Group, the project's developer. "I don't think that there's anything that remains to be resolved that can't be." Likewise, city officials remain optimistic that the completed project will be within reach soon, though they have not released a potential opening date. "I think that there are some high hurdles," said Deputy Commerce Director Dwane Bumb. "But [Simon is] heavily invested enough that we would not expect him to walk away." The venue is intended to be a regional destination, drawing its customers from as far as two hours away, as well as from the streets of Philadelphia. "It's somewhat upscale," Shields said of other tenants, which include Versace and Cache. "We want it to be a place that people come to spend their leisure time and their leisure dollars." The present Great Plaza -- which has become the destination choice for the city's summer festivals -- will be demolished and reincarnated in the form of an eight-acre rooftop "festival park," according to project adviser Michael Rubin, president of MRA International -- an entertainment venue consulting firm. This park will also include a 4,000 seat amphitheater with a full stagehouse, as well as the new home of the Please Touch Museum -- a hands-on museum for children ages one to seven. And a $26 million tramway will link the new development with Camden's waterfront, allowing passengers to glide over the river in eight-passenger gondolas. "The idea was that the waterfront would only get its real potential if it existed as a single visitor destination on both sides of the river," said Joe Deimer, spokesman for the Delaware River Port Authority, which is footing the tram's bill. This would be the nation's first bi-state waterfront program. Yet despite the complex interactions between the public, private and non-profit groups that are making all of these attractions possible, the project's timing is not behind schedule at all, some say. "The perception is that it's taken a long time," Rubin said. "Contrary to that -- and relative to projects like this -- it's taken a very short time." Concerns have also arisen over the project's finances, which have risen from $175 million in 1997 to the more recent $250 million. Simon is currently seeking additional funding to fill a $30 million gap, with the cable-giant Comcast Corp. emerging as a possible suitor. But those involved with the project say that the cost increase was justified. "Simon recognized that to create a destination place, they need to maintain a certain level of amenity that you can't value-engineer out," Rubin said. "Otherwise, you don't have a destination." One obstacle hindering the Penn's Landing project was a similar retail venue planned at 8th and Market streets at the former DisneyQuest site. The two projects had been trying to lure tenants at the same time, creating what Shields called a "negotiating ploy" as the stores sought the best deal. However, the city effectively ended such competition last Wednesday when it announced that it will purchase the 8th and Market site for an as-of-yet undetermined use. "It becomes a very important arrow in the quiver of Philadelphia's tourism industry," Rubin said of the waterfront project, citing the combined attraction of the city's historic district along with New Jersey's aquarium and baseball park. The Penn's Landing development's concept of mixing entertainment and retail is part of a larger national trend, according to Michael Beyard, senior fellow at the Urban Land Institute. "Why would you make a major effort to go to a shopping center if it's not entertaining, if it's not fun?" he said.