Penn's Landing is a 13-acre site along the Delaware River that the city has made several attempts to revitalize.
Sabatini, 63, has been with the PLC for 24 years.
"This was perfect timing for him," said Laurie Curtin, director of public relations at the PLC. "He felt there should be a new person in the position for the long haul before the development phase begins, someone who can make a long-term commitment."
In a letter to Acting Chairman James Cuorato announcing his plans for retirement, Sabatini noted his desire to spend more time with his family.
The PLC is one of a number of city entities under investigation by the Federal Bureau of Investigation. The corporation was recently subpoenaed by federal officials.
Sabatini told The Philadelphia Inquirer that his decision to retire was unrelated to the investigation.
Leonard Ross, chairman of the committee that will choose a developer for Penn's Landing, was questioned by the FBI about the selection process in mid-November. Ross is an adviser and former law partner of Mayor John Street.
Prior to his long tenure at PLC, Sabatini was employed by the city Department of Licenses and Inspections for 16 years under former Mayor Frank Rizzo.
Members of the PLC board of directors will form a selection committee to find a replacement for Sabatini, Cuorato stated in a news release.
The future of Penn's Landing will be decided by a selection committee that will choose one of four developers to implement a plan for the area. A date for the selection has not been set.
The competing plans include visions of theaters, an ice rink, retail and office space, restaurants and public parks.
The Daily Pennsylvanian is an independent, student-run newspaper. Please consider making a donation to support the coverage that shapes the University. Your generosity ensures a future of strong journalism at Penn.
DonatePlease note All comments are eligible for publication in The Daily Pennsylvanian.