The 12-acre site on Fox Street is adjacent to an 18-acre parcel at the former Budd Co. plant on which Keystone planned to develop the $350-million TrumpStreet Casino, one of five competing proposals for the pair of Category Two gaming licenses designated for Philadelphia. But TrumpStreet was not among the chosen two, which went to Foxwoods and SugarHouse.

Had it exercised the option, Keystone would have paid Tasty Baking $14.4 million for the properties, which did not include the company's nearby bakery. Tasty Baking will add the $1.6-million cash payment for the option to its pre-tax income for fourth quarter 2006, management said in a statement.

In addition to its properties here, Tasty Baking has a manufacturing facility in Oxford, PA. This spring, it announced that it was exploring "long-term manufacturing options," which included a reconfiguration of its real estate. Charles Pizzi, president and CEO, has reiterated a preference to maintain operations here, and said he believed such opportunities exist.