PHILADELPHIA-Peebles Corp. of New York City and locally-based P&A Associates have been chosen to develop a new $85-million, 199-room Kimpton Hotel at 1801 Vine St., the site of the Family Court building.

The existing 247,000-square-foot building was completed in 1941 and has served as home to the Family Court of the First Judicial District ever since.

The Family Division will relocate to a new facility, which is under construction at 15th and Arch Streets later this year.

The 1801 Vine building is listed on the Philadelphia Register of Historic Places and the planned redevelopment will incorporate important historic elements. For example, thirty-seven historic interior murals are to be preserved and restored.

The new hotel will include 16,000 square feet of spa and fitness space, 14,000 square feet of meeting and event space, and 5,800 square feet for a restaurant and bar.

Mayor Michael A. Nutter noted in making the announcement that the redevelopment will significantly enhance the Parkway Museums District, generate new tax revenues, and continue the momentum of new commercial and institutional development activity along Vine Street.

When complete, it will be the first minority-owned hotel development of its size in Center City .

"We are delighted to announce this major economic development project that will create more than 600 construction and permanent jobs in Philadelphia," said Nutter at a City Hall press conference this week. "The addition of a new Kimpton Hotel along the Ben Franklin Parkway will be a great addition to that historic boulevard."