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Back to square one for Foxwoods?

Foxwoods, which proposes to open a casino in the former Strawbridge & Clothier department store in Center City, confidently predicted 4 1/2 months ago that a lease with the building owner was nearly finalized.

NOTE: THIS STORY HAS BEEN CORRECTED.

Foxwoods, which proposes to open a casino in the former Strawbridge & Clothier department store in Center City, confidently predicted 4 1/2 months ago that a lease with the building owner was nearly finalized.

That still hasn't happened. And that makes for troublesome timing for Foxwoods, which on Friday must justify to the state Gaming Control Board why it should be granted a two-year extension on its license to open the casino.

What does that mean for Foxwoods? Will the project's investors continue to seek the lease, or abandon Center City for its original location in South Philly?

Foxwoods did not respond to those questions yesterday.

In December 2006, the board approved a license for Foxwoods on the Delaware riverfront in South Philly. After feuding with city and neighborhood groups for nearly two years, Foxwoods agreed last fall to consider moving to the former department store at 8th and Market streets. The board's deadline for Foxwoods to open a casino ran out in May.

The casino's investors made their pitch to the board to relocate in a raucous April hearing interrupted by anti-casino protesters who oppose the new location.

Brian Ford, chief executive of the local investor group partnering with the Foxwoods Development Co., told the board that an agreement had been reached with the building's owners, the Pennsylvania Real Estate Investment Trust. Foxwoods Development Co. is owned by the Mashantucket Pequot Tribal Nation of Connecticut.

PREIT controls the lower floors of the former Strawbridge's building, and Gramercy Capital Corp. of New York controls office space on the upper floors. Gramercy objected to the casino plan during a City Council hearing on zoning for Foxwoods in May, but has refused to explain why. Council later approved the zoning.

The real-estate dispute has left the prospects for the Foxwoods lease frozen for months.

Officials from PREIT and Gramercy did not respond to requests for comment yesterday.

The board in May approved an extension and changes in plans for SugarHouse, a casino being built on the Delaware riverfront in Fishtown that also ran into delays with the city and neighborhood groups. SugarHouse plans to be open by mid-2010.

Another factor complicates a Foxwoods move to Center City.

Trump Entertainment Resorts, through a group called Keystone Redevelopment Investors, was one of three applicants denied a casino license in Philadelphia. Trump sued the board in December, then filed a petition with the board in January challenging any Foxwoods attempt to relocate since the board considered each applicant's location when making its decisions.

CORRECTION: