Federated plans $55 million Union Square renovation; seeks approval for seismic upgrades, Macy's expansion, building replacements

Business Wire, April 25, 1996

CINCINNATI--(BUSINESS WIRE)--April 25, 1996--Federated Department Stores, Inc. said today it will seek approval from the city for a $55 million project in downtown San Francisco that will involve seismic upgrading, expansion and remodeling of the existing Macy's store and replacement of two smaller Geary Street buildings. The proposed newer structure would replace the existing Bally and Allen buildings, extending the roofline of the current eight-story Macy's and architecturally blending building exteriors along the south side of Union Square.

In an Environmental Evaluation application filed today with the City Planning Department, Federated noted that neither the Bally nor Allen buildings meet the city's newer and stricter seismic codes for unreinforced masonry buildings, therefore requiring them to be seismically upgraded or demolished and replaced by 2004. By replacing the existing Bally and Allen buildings, Federated said it also can seismically upgrade the existing Macy's Union Square store without impacting that building's significant historic architecture.

Macy's Union Square currently comprises six interconnected buildings that cover the eastern three-quarters of the block bounded by Geary, Stockton, O'Farrell and Powell Streets. In addition to the Union Square, Bally and Allen buildings, the Macy's store space also includes the I. Magnin building, the original Main building at 101 Stockton, and the addition to the Main building at 170 O'Farrell Street.

In its filing, Federated noted that, "The existing floor levels and column gridlines of the Allen and Bally buildings do not correspond to each other, or to the Main building or the Union Square building, and hence the existing interconnections among the buildings consist of a confusing maze of stairs and ramps at every floor level." By seeking to replace these buildings with a more functional space -- one that also meets requirements of the Americans with Disabilities Act (ADA) -- Federated said it hopes to improve both the seismic safety and aesthetic appearance of the retail buildings along the south side of Union Square.

"Macy's has been a major presence on Union Square for fifty years," says Michael Steinberg. "The incorporation of the I. Magnin building into Macy's and the proposed new building gives us the opportunity to create an attractive and architecturally consistent facade on Union Square, the premier downtown retail attraction in Northern California."

The company noted that although the existing Bally building is classified as a Category IV historical structure within the Kearny-Market-Mason-Sutter Conversation District, there is nothing of historical significance left in the building; its cornice was removed following the 1989 earthquake and the lower two floors were altered significantly in the 1970s. Because of the remaining designation, however, Planning Commission approval is required for its demolition and replacement.

A zoning variance, including a Union Square shadow impact study, also will be required for extension of its the Macy's Union Square roof line, which would add approximately 36,000 square-feet of new retail and office space and create a more unified exterior appearance for the buildings.

If approved by the city, construction would begin in early 1997, with completion about 15 months later. The architectural firm of Patri, Burlage, Merker (PBM) is designing both the new property and the integrated new facade for it and the Macy's Union Square store. PBM is the same firm that designed the San Francisco Center and the new downtown Nikko Hotel.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15 billion. Federated currently operates more than 400 department stores and 150 specialty stores in 36 states. Federated's department stores now operate under the names of Bloomingdale's, The Bon Marche, Broadway, Bullock's, Burdines, Emporium, Goldsmith's, Lazarus, Macy's, Rich's, Stern's and Weinstock's.

(NOTE: Information on Federated and its operating divisions is available on the Internet at http://www.federated-fds.com. Copies of past press releases and corporate background data also are available by calling Fax-On-Demand at 1-800-853-9150.)

NOTE TO EDITORS: The Internet address in this release should

contain double slashes after "http:". It is

possible the slashes may not appear properly

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CONTACT: Federated Department Stores, Inc., Cincinnati

Federated - Carol Sanger, 513/579-7764

Macy's West - Betty Krogh, 415/393-3268