The price of keeping Saks Fifth Avenue downtown may be high but the city can't afford to lose the upscale store, according to downtown retailers.

        Cincinnati city officials are negotiating a possible $6.6 million deal to keep Saks at its Fifth and Race streets location.

        Saks isn't commenting and city officials are saying little.

        But retailers big and small say Saks is important to all downtown businesses.

        “Saks is an additional draw to the downtown area for shoppers,” said David Smith, general manager of the Lazarus department store at Fountain Place, which is near Saks.

        “We all have a vested interest in all retailers being successful down here,” Mr. Smith said. “The prospect of a Saks pulling out makes the downtown environment perhaps less viable for all of us.”

        Dena Holland, manager of

        The Reds Dugout Shop at the Westin Hotel, a block east of Saks, said the “high-end stores like Saks are why people come downtown to shop.”

        “They don't have a Saks at the malls like Tri-County or Northgate,” she said. “We don't have a big high-end store like Neiman Marcus in this area, and people want the availability of the type of product that Saks offers.”

        Downtown is still getting over April's riots and the decision last year by high-end retailer Nordstrom against building a downtown store, even though the city was promising millions of dollars in incentives, retailers said.

        “It seems to me the city has worked hard on projects like Tower Place and Lazarus and downtown is starting to look really great,” Ms. Holland said. “Saks pulling out would really hurt all downtown businesses because it brings people downtown and to small businesses like this one.”

        Deputy City Manager Richard Mendes said Monday that the city has had “a variety of discussions over the past several months” with Saks representatives about keeping the store open.

        Mr. Mendes wouldn't discuss the details of any proposals. But Councilman Phil Heimlich has said the retailer wants $6.6 million to stay downtown for the next 15 years.

        Asked if Saks wanted to expand to other nearby locations, including the old McAlpin's department store site on Fourth Street, Mr. Mendes would only say that Saks “is looking at a couple of different expansion scenarios, but I can't get into details.”

        Mr. Mendes agreed with retailers that losing Saks would hurt business for other downtown stores. But he added that it would also damage the city's ability to lure other retailers downtown.

        Though he wouldn't divulge de tails, Mr. Mendes indicated the city is talking to retailers about attracting new stores or retaining existing ones.

        “Saks is a major contributor to the nature of downtown,” Mr. Mendes said. “It's a big draw. It's a special store. Losing Saks would hurt.”

        Saks is asking for money at a time when the city is facing a $7.5 million shortfall in its annual budget of about $300 million.

        “Given the city's financial position, finding funds is always an issue,” Mr. Mendes said. But he said once Saks makes a formal proposal the city will likely be able to use funds dedicated to econom ic development that are already in the budget.

        The city has paid in the past to keep Saks downtown. In 1996, city council approved a $2.3 million incentive package for the store that included a renovation.

        Keeping Saks downtown is important at a time when the city is trying to attract a big-name retailer to the empty lot at Fifth and Race across from Saks and Lazarus, retailers and officials said.

        Council had approved a $48.7 million package to bring a Nordstrom to that location.

        Representatives of Downtown Cincinnati Inc. (DCI), the downtown advocacy group, also had discussions with Saks, according to DCI Executive Vice President David Ginsburg.

        “These big retail anchors are like major league sports teams,” Mr. Ginsburg said Monday. “Demand is greater than supply.

        “Saks is a very important part of the retail community downtown and efforts to retain them are worthwhile,” he said. “But it's also important that the investment we have in Saks and in retaining Saks can be leveraged into creating additional opportunities downtown.”

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