Archive: 2011
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South Side Site Gets Development Go-Ahead
Retail, apartments slated for former Goodwill headquartersFriday, December 24, 2010By Mark Belko, Pittsburgh Post-GazetteA $28 million project to convert the former Goodwill headquarters on the South Side into apartments and retail space is good to go, thanks in part to a $5 million state redevelopment assistance grant.
The grant, awarded by Gov. Ed Rendell last week, will help close a gap in the financing and enable the project to move forward, city Urban Redevelopment Authority board members were told Thursday when they authorized the receipt of the money.
Green Tree developer Burns & Scalo Real Estate plans to convert the seven-story building on East Carson Street into 87 market rate apartments and 10,000 square feet of ground level retail space.
James Scalo, Burns & Scalo president, said he expects the apartments to rent for about $1,500 a month.
He said the state money will be used to help build a parking garage within the complex, an amenity he believes will be a big selling point. He said it would be the only residential project on the South Side with secure parking within the building.
With the money committed, Mr. Scalo said he hopes to start demolition work inside the building next month. Construction work is expected to start in April, with an opening slated for spring 2012.
Burns & Scalo will clean and preserve the facade and also seek to have the Renaissance Revival building listed on the National Register of Historic Places, in part to make the project eligible for historic tax credits, Mr. Scalo said.
Burns & Scalo came under some fire last summer when it received permission from the city Historic Review Commission to demolish an adjacent Goodwill building to make way for an Aldi supermarket.
Mr. Scalo said there’s a reason the developer is seeking to preserve the Goodwill headquarters while it demolished the other structure.
“This building has a lot of historic value. The other one did not,” he said. The structure used to be the mercantile store for the J&L Steel plant on the South Side.
Also Thursday, the URA board approved a deal that allows Cleveland-based Forest City Enterprises to make a $9 million lump sum payment to the URA to close out a $20.8 million loan dating back to 1984.
The loan was used to build Liberty Center, the 27-story skyscraper that houses the Westin Convention Center hotel and Federated Investors. Since the loan’s inception, Forest City had made about $9.5 million in payments. The developer, about three weeks ago, approached the URA about discontinuing $400,000 in yearly payments in exchange for one final lump sum amount.
In agreeing to the deal, the URA will be accepting about $2 million less than the original loan, not including interest. However, Rob Stephany, URA executive director, said there was a chance that future yearly payments, which were tied to cash flow, could decrease, depending on the tower’s occupancy and lease arrangements. He said Forest City originally offered $3.5 million as a lump sum payment.
A consultant hired by the URA also analyzed the deal and concluded that a $9 million buyout was a “very fair number.”
Mr. Stephany said the URA plans to reinvest the $9 million in city neighborhoods that are eligible for federal community development block grants.
“It’s a great opportunity for us,” he said
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Kaufmann’s is Back? Well, the Kaufmann Center will be, with $100,000 from PPG
Wednesday, January 05, 2011
Pop City Media
The historic Kaufmann Center in the Hill District, home to social services and events in the neighborhood for decades, is that much closer to reopening as a state-of-the-art auditorium for community development, education, arts and cultural happenings, thanks to a $100,000 grant from the PPG Industries Foundation.
The structure – part of the six-building Hill House Association, local provider of health, education, housing and other services – had fallen into disrepair and closed in June 2009. The grant from PPG, says Foundation Executive Director Sue Sloan, will aid the Center’s $5 million renovation effort, which includes a new entryway and LEED certification of the building as a newly energy-efficient green structure.
Hill House hopes the renovated auditorium will attract regional events to the neighborhood as well. Overall, the building’s renewal should contribute to the organization’s and the neighborhood’s health, both financially and socially.
“The real value is that this will help revive and increase services for individuals in the Hill District,” Sloan notes. “This is going to make a difference to the folks who are living here and using these services.”
Writer: Marty Levine
Source: Sue Sloan, PPG Industries Foundation -
$289,500 in Funding Will Help WCDC Continue to Revitalize Wilkinsburg
Wednesday, January 05, 2011
Pop City Media
On December 28, the Wilkinsburg Community Development Corporation received its second annual installment of funding from Tristate Capital Bank, totaling $289,500. The funding is part of a six year, $1.8 million commitment by the bank in order to assist the WCDC’s Business District Revitalization efforts.
“The money is split 50/50,” says Tracy Evans, executive director of the WCDC. “Half goes to our office, staff, and projects, primarily infrastructure improvement projects we’re working on as well as marketing money for the overall borough.” The other half of that money is allocated for projects that the WCDC is collaborating with Landmarks Community Capital Corporation, a division of the Pittsburgh History and Landmarks Foundation, to achieve.
The first installment of the Tristate Capital funds were used by the WCDC and LCCC to open Wilkinsburg’s Landmarks Community Resource Center last October, and this year’s funds will contribute to two new Wilkinsburg housing projects totaling $10 million.
“This funding stream has been key to the Wilkinsburg Community Development Corporation opening an office in the borough in 2010 and hiring three full-time personnel to further our goals in revitalizing the Wilkinsburg business community,” says John A. Thompson, WCDC president and mayor of Wilkinsburg.
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Writer: John Farley
Source: Tracy Evans, WCDC
John A. Thompson, WCDC -
Report Cites Downtown Dynamics
Tuesday, January 04, 2011By Sally Kalson, Pittsburgh Post-GazetteDowntown Pittsburgh is a more diverse and dynamic place than it was just seven years ago — more residents, more students and workers, more people riding bikes and running.
That’s the conclusion of Pittsburgh Downtown Partnership President Michael Edwards, based on the group’s new report about living, working and commuting Downtown.
Among the findings:
• The peak age of Downtown residents is 25 to 29.
• One-third of Downtown residents have incomes of more than $100,000.
• Of the 126,000 people working Downtown, two-thirds are in the service or finance industries.
• The proportion of students jumped from 4 percent to 13 percent since 2003.
• The use of public transit also jumped, from 48 percent to 53 percent in the same period.
• The average commute to Downtown is 13 miles, or about 38 minutes.
The report comes from four different surveys conducted in 2010. For the most part, the studies are looking at the “greater Downtown” area that includes the Golden Triangle, the north and south shores, the near-Strip District and Uptown.
The full report is available at www.downtownpittsburgh.com.
Most of the indicators are positive, Mr. Edwards said.
One piece of data that never registered before is the growing number of people coming Downtown on weekends to exercise. That, he said, speaks to the work of Riverlife, the nonprofit advocacy group, and increased riverfront activity, from kayaking to biking and running the trails.
“This is the first time we’ve seen that,” Mr. Edwards said. “It shows a more compelling place to locate, with the whole Downtown as your backyard.”
But there are two trouble spots in the report.
Commuting costs are up anywhere from 8 percent to 89 percent, looking at parking, gas, bus fares and tolls. At the same time, fewer employers are contributing to those costs with bus passes or discounts. So, while Downtown is holding its own as the region’s employment hub, those costs are a concern for the future.
Also of concern: The cost of developing new housing Downtown is 25 percent higher than what the market will bear.
There’s not much the partnership can do about commuting costs, but it does have an idea to lower the cost of building new housing. Mr. Edwards said he and others will be lobbying in Harrisburg for a state historic tax credit, a financing tool that could fill 20 percent of the gap.
“That would lower the cost to the developer significantly,” he said.
It only makes sense to make Downtown development more affordable, he said, because the residential population there has more than doubled in the past decade, from 3,050 to 7,260.Right now, the occupancy rate for Downtown residences is 97 percent, so there is good reason to believe that new units would fare just as well.
For office space, overall occupancy is 90 percent, the highest in 20 years. Hotel occupancy, at 65 percent, is still higher than national average.
“So we are performing pretty well,” Mr. Edwards said. “This information allows us to tackle the nuances and make things even better.”
The spike in students is attributable to Pittsburgh CAPA 6-12, Point Park and Duquesne universities and the Art Institute of Pittsburgh. That influx, Mr. Edwards said, adds to the district’s depth because “they come at different times and spend money on different things.”
For example, comic books.
“This location thrives off the college students,” said Humes Grossman, a clerk at Comic Book Ink on Smithfield Street.
Downtown regular Premo Masullo, 40, of Brentwood, is a server at the Omni William Penn Hotel. He’s noticed changes for the better.
“I’ve been working here almost 20 years, and it’s more thriving than it was 20 years ago,” he said. “There are [more] smaller businesses Downtown. There are more kids, college kids, which increases business.”
But not every part of Downtown is benefitting equally from the positive trends, said Julina Coupland, 29, of Point Breeze.
“Pockets of it seem to be [thriving] and others are moving more slowly,” she said. “The Cultural District, the new Market Square are pretty vibrant. But mostly when I’m down here on weekends and evenings, it’s pretty quiet, not a lot is going on.”
Other findings in the report include:• Average household size increased to 1.5 people from 2008, and 4 percent of households have children.
• Top reasons for moving Downtown were convenience, desire for city living and appeal of the buildings.
• Weekly average of spending at Downtown restaurants and retailers was $183.
• Four in 10 commuters are ages 35 or younger.
• The Boulevard of the Allies is mostly traveled by students.
• Market Square and Fifth Avenue are among the busiest pedestrian areas due to recent revitalization.