Cincinnati City Council last month approved a preliminary deal to give Saks Fifth Avenue $6.6 million to remodel the interior of its downtown store. Council is expected to vote on a final contract next month. The terms are:

        • The city will borrow $6.6 million by issuing bonds to pay for the remodeling. The money will be repaid through funds generated by other downtown businesses. These are downtown office buildings that have used similar subsidies to fund improvements and have increased revenues more than needed to pay back bonds the city issued for them.

        • Saks agrees to stay downtown for at least 15 years. After five years, however, the store may buy out the contract and leave downtown by paying a prorated portion of the $6.6 million.

        • If Saks sells its stores, or if the number of down town retailers falls below an amount not yet agreed upon, then Saks can leave within five years without penalties.

        • Saks commits to maintaining the same number of jobs that it currently has — about 100.

        • The city agrees to provide 15 parking spaces to Saks at normal rates. The spaces will be used primarily for Saks employees, but where the spaces will be located and what the city will charge is still being negotiat ed.

        • The city will forgive Saks any penalty payments arising from a 1996 agreement with the city in which the store agreed to stay downtown until 2004. As of Jan. 30, 2002, the amount would be $500,000. It will decrease to $250,000 in 2003 and zero in 2005.

        • Saks agrees not to open another full-line Saks store within 30 miles of downtown for at least seven years after the upgrade.

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