A Washington County developer is stepping up to cater to the appetite for a market Downtown.

Millcraft Industries Inc. announced yesterday that it plans to open a European-style gourmet market on Wood Street by the end of the year as part of its $40 million plus redevelopment of the former Lazarus-Macy's department store.

The market will offer freshly prepared foods, including entrees, soups and salads, fish and sushi. A delicatessen, specialty breads and produce also will be available.

Lucas Piatt, Millcraft vice president of real estate, said the 12,000-square-foot store will have the feel of a "New York City-style" market and will cater to the needs of those who live and work Downtown. They will be treated to "all the best stuff you expect in a European urban market."

Among the amenities the store plans to offer are call-ahead ordering and grocery delivery.

The market will feature lunch meats, cheeses and other products from Jeannette-based DeLallo Italian Foods as well as a new line of Omaha Steaks products, including Omaha Fresh and Omaha Fresh Angus that will only be available Downtown.

Mr. Piatt is hoping the novelty of the store and the exclusive line of steaks will help to make the market a destination for suburbanites, in addition to being a convenience for Downtown residents.

"We want this concept to become a true destination. The market needs to serve the people who live and work Downtown, but we also feel that people will travel from around the region to shop here," he said.

The market is part of an overall redevelopment of the vacant four-story Lazarus-Macy's store, closed in 2004, that includes 22 two-story rooftop townhouses, 25 condominiums, 180,000 square feet of office space, and 50,000 square feet of retail space.

A Downtown market has long been at the top of the wish list for city officials, the Pittsburgh Downtown Partnership and groups interested in bringing more housing into the Golden Triangle.

There has not been a grocery store Downtown since Market on the Square, a meat and food store attached to the G.C. Murphy's building in Market Square, closed in late 1994. That site had been a fixture for groceries since 1929.

Interest in a market has surged in recent months with the Lazarus-Macy's redevelopment, the $170 million PNC office tower planned on Fifth Avenue, proposals to revitalize other sections of Fifth and Forbes avenues, and a host of residential projects under way Downtown.

"Certainly a grocery store is a watershed event for the creation of a neighborhood Downtown and we think it's great," said Mike Edwards, president and chief executive officer of the Pittsburgh Downtown Partnership.

Millcraft also had talked to Giant Eagle and the McGinnis Sisters about supplying the market, but in the end settled on DeLallo, in part because the Piatt family had shopped at DeLallo's Jeannette store for years and enjoyed the quality of the products.

Likewise, Nebraska-based Omaha Steaks products are featured at Millcraft-owned restaurants at Southpointe, Washington County, and in Moon.

"We talked to a ton of other stores. We didn't want to wait for them to make decisions. We wanted to move fast. Our project is moving fast, and we know there's a market there [for a store]," Mr. Piatt said.

He said the Downtown market will be the prototype for four such stores planned around the region. The other locations haven't been determined.

Fran DeLallo, a family member who is part of the grocery business, said they are planning an array of specialty sandwiches, breads, and lunches and dinners for the market. He added he was impressed by Millcraft Chairman Jack Piatt's knowledge and interest in gourmet foods.

"He wants stuff that's a cut above. He wants stuff that's really special. They want to do a lot of specialty things," he said.

Lucas Piatt said Millcraft is talking to several unidentified retailers about occupying space in the Lazarus-Macy's building.

Millcraft also is expected to meet with Mayor Bob O'Connor later this month to unveil final details of a proposed residential and retail development aimed at revitalizing a number of government-owned buildings in the Fifth and Forbes corridor, including G.C. Murphy's.

Mr. O'Connor, meanwhile, may announce as early as today the selection of a designer to help create a master plan for the entire corridor. The designer would develop standards for buildings, streets, sidewalks and other aspects of the corridor, with input from the Downtown Partnership, Pittsburgh Cultural Trust, property owners and others.