By Ken Alltucker
The Cincinnati Enquirer

Once the heart of Fourth Street's retail district, the long-vacant former McAlpin's department store will be converted to condos under a plan endorsed Monday by City Council's Finance Committee.

A majority of council members indicated Monday that they would support a city-negotiated deal to sell the McAlpin's store and the abutting Newstedt-Loring-Andrews building to developers Madison Marquette and JFP Properties for $4 million.

The developers plan 60 condos and street-level retail space on the nearly block-long stretch between Race and Vine streets. City Council is expected to formally vote on the project Wednesday.

The new deal changes an old plan to build mostly office space and retail. Madison Marquette has tried unsuccessfully since 2001 to recruit office users and shops for the buildings, across from Tower Place.

Because the developers are now plunking down $4 million for the site, council members expect action soon.

"These folks are putting money on the table, and we hope that they will get things going," Councilman Jim Tarbell said.

Vice Mayor Alicia Reece said she supports the plan, but she thinks that the city spent too much to buy the buildings in the first place.

Cincinnati bought the two buildings - along with a third building, at the southeast corner of Race and West Fourth Street - for $8.5 million in 2001. But an appraisal in April valued the McAlpin's and Newstedt buildings at $1.9 million.

The city will retain ownership of the third building, formerly occupied by Frisch's, and Madison Marquette retains development rights there for a planned office and retail project.

"My question is, how many other buildings don't we not know the true value of when we bought them," Reece said.

E-mail kalltucker@enquirer.com