Category Archive: City Living
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Tax credits lower costs of living Downtown
Thursday, September 13, 2007
By Mark Belko,
Pittsburgh Post-GazettePeople who want to live Downtown but can’t afford the expensive condominiums or steep rents that now dominate the market finally may have an option.
It’s a 100-year-old building on Seventh Street in the heart of Pittsburgh’s Cultural District.
A plan to convert the 12-story Century Building into affordable apartments cleared a key hurdle this week when the Pennsylvania Housing Finance Agency awarded $515,155 in federal tax credits for the project.
The approval, announced at a news conference yesterday, will enable Trek Development Group to press ahead with the construction of 60 upper-floor apartments, including single-room studios and one- and two-bedroom lofts.
Rents will range from $550 to $1,150 a month, depending on income level, in a Downtown market where studio rents currently are $868 to $909 a month and two bedrooms go for $1,035 to $2,002 a month, based on whether there’s one or two bathrooms.
Mayor Luke Ravenstahl said the $16 million Century Building project has been a priority for him since he got into office a year ago because of its potential to attract a broader mix of people into the Downtown residential scene.
“Downtown Pittsburgh is on its way back. It’s revitalizing, and it’s because of projects like this that we’re going to be able to look at a significantly different Downtown, in my opinion, in the years to come,” he said.
Until now the residential surge Downtown has been fueled in large part by luxury condominiums with price tags starting at roughly $230,000. Many units are selling for $300,000 or more, with a few topping $1 million.
Apartment rents at the Encore on 7th high-rise a few doors down from the Century Building are $1,400 to $3,275 a month.
While housing has helped to boost the fortunes of the Downtown district, it has been out of the reach of many people because of the price.
At the same time, Pittsburgh Downtown Partnership research has found a “tremendous demand” for a middle range that includes young professional housing and work-force housing, said Patty Burk, vice president of housing and economic development.
“Delivering this building will be the first step in meeting that demand and helping Downtown be for everyone,” she said.
Part of the problem in providing more affordable housing in downtowns, here and elsewhere, is the high cost of construction, which leads developers to focus on the high end to turn a profit. Lower pricing typically requires some form of subsidy.
For example, Washington County-based Millcraft Industries, another developer seeking to bring more affordable housing Downtown, sought federal historic tax credits to help make the numbers work. It is converting part of the old G.C. Murphy store into 46 loft apartments, with rents to range from about $775 for a 620-square-foot studio to $1,875 for a 1,500-square-foot penthouse.
William J. Gatti Jr., president of Trek Development Group, said the $515,155 in affordable tax credits was “vital” to the conversion of the upper floors of the Century Building into housing. He said the project could not have gone forward without them.
“The price point that we’re attempting to make units available for would not be enough to amortize the debt necessary to develop the building and to carry the cost. So we absolutely need the tax credits to make it work,” he said.
Trek plans to target young professionals, artists and middle-income renters. It plans to offer 12 single-room studios, 12 two-bedroom units and 36 one-bedroom units.
“It is fitting that exactly 100 years after its original construction we are announcing the rebirth of the Century Building as Downtown Pittsburgh’s first truly affordable residential loft community,” Mr. Gatti said.
Trek intends to pursue an environmentally friendly LEED certification for the building, which also will include a green roof and geothermal heating and cooling. There also will be a roof deck with city and Allegheny River views, an equipped exercise room, a community club room and a business center.
Apartment amenities include garbage disposals, dishwashers, and washer and dryer hook-ups.
Besides the PHFA tax credits, project funding includes nearly $3.2 million from the Pittsburgh Cultural Trust, $2.3 million in loans from the city’s Urban Redevelopment Authority, $2.3 million in historic tax credits, $2.3 million in loans from the Strategic Investment Fund and $750,000 in loans from the county’s economic development department.
Trek already has been doing preliminary demolition work within the building. Construction should be in full bloom next year, with apartments ready for occupancy in early 2009.
The Century Building conversion is considered another key addition to the thriving Cultural District. It’s expected to complement the Cultural Trust’s half-billion-dollar RiverParc project, the first phase of which involves the construction of some 700 units of housing on the Allegheny River at Eighth Street, at a cost of $90 million.
Allegheny County Chief Executive Dan Onorato said Downtown will be “the place for the next decade or two where activity” will be growing. He said the county is committed to making sure the Golden Triangle, as the hub of the region, continues to move forward.
“We’re on a roll. You can easily fall off that roll if you don’t pay attention to what we have here and the assets that we have. So Downtown Pittsburgh’s going to remain a focus for the next several years for all of us involved here,” he said.
First published on September 13, 2007 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. -
Allegheny County Designates PHLF to Spearhead Main Street’s Program
Allegheny County Executive Dan Onorato announced at a press conference in Swissvale yesterday the initiation of a large-scale Allegheny County Main Streets program. Four pilot communities will be involved: Swissvale, Elizabeth, Tarentum, and Stowe. Landmarks has been designated to operate the program in conjunction with the Allegheny County Department of Economic Development.
Landmarks has selected Town Center Associates of Beaver County to serve as sub-consultant with responsibility for communications with local officials and property and business owners, development of a website and a newsletter, and conduct demographic research.
Landmarks will analyze the historic buildings, prepare recommendations for restoration, develop a real estate strategy for improving retail offerings, conduct market research, assist the County with major facade grant and low-interest loan programs, all designed to help revitalize these Main Street communities.
Funding is coming from Allegheny County and private foundations in Pittsburgh.
Landmarks will field a team of staff members with a variety of experience that will be useful for a comprehensive program, including market research, real estate financial analyses, design, graphics, planned giving, construction and real estate development.
Work begins immediately.
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County to provide aid to business owners outside Pittsburgh
By Justin Vellucci
TRIBUNE-REVIEW
Wednesday, September 12, 2007When Karen Larson opened Hometowne Tavern in Swissvale five years ago, bankers hardly gave her the time of day.
“We couldn’t get a loan for any part of our business,” said Larson, 52, of Swissvale, who owns the commercial building where the tavern she owns with her husband is based. “When it came to getting our business going, we were really on our own.”
Not anymore.
Allegheny County Chief Executive Dan Onorato announced a program Tuesday that will provide grants, tax abatements and no-interest loans to business owners looking to revitalize 43 local business districts outside Pittsburgh. The program — dubbed Allegheny Together — will begin in Swissvale, Tarentum, Stowe and Elizabeth Borough, and also help those hit hardest by the remnants of Hurricane Ivan in 2004.
“The big projects get all the attention through the media … and they’re needed and they help,” Onorato told an audience packed into Swissvale’s municipal building yesterday. “But we also wanted to make it clear we understand the benefits of small businesses.”
The county plans to commit $500,000 to $1 million a year to the program, which officials said could provide $1 million to $1.5 million in funding each year. Foundations have pledged an additional $500,000. Officials plan to seek about $500,000 from the state.
“What we all already know is we have 43 community (business districts), all historic,” said Arthur P. Ziegler, Jr., president of the Pittsburgh History & Landmarks Foundation. “We look on Main Street as a real estate development, just the way they look at a mall as a real estate development out in the suburbs.”
In those 43 communities, eligible property and business owners can be covered for up to 60 percent of total project costs or $50,000, whichever is less, county officials said. Half the money will come as a grant, and the other half as a zero-interest loan payable over a maximum of seven years.
Some of the work covered by the program includes improving facades and sidewalks, correcting code deficiencies, erecting signs for businesses, and improving accessibility to businesses for the disabled, county officials said. A display showing potential changes to Swissvale’s business district was shown yesterday.
Residents could start to see improvements made through the program in six months to a year, said Dennis Davin, the county’s director of economic development.
Local officials celebrated the program for its specific benefits, as well as the message of support it carries.
“It’s something we’ve been waiting for for years and years,” Swissvale Mayor Deneen Swartzwelder said. “This is an amazing opportunity for us. And we promise not to let you down.”
For more information on the Allegheny Together program, call 412-350-1000.
Justin Vellucci can be reached at jvellucci@tribweb.com or 412-320-7847
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Highland Park granted federal historic status
Wednesday, September 12, 2007
By Diana Nelson Jones, Pittsburgh Post-Gazette
Pittsburgh Post-GazetteThe National Register of Historic Places has granted Highland Park federal historic status, a designation with few protections but much prestige among preservationists.
Mike Eversmeyer, an architect and former head of the city’s Historic Review Commission, completed the nomination from research begun almost a decade ago by the neighborhood’s community development corporation, or CDC.
The work included surveying and documenting the histories of more than 1,300 structures.
“We based our nomination on the significance of the architecture, a coherent concentration of buildings from the late 19th to early 20th century,” Mr. Eversmeyer said. “It was a model street car suburb.”
The parameters of the historic district run roughly from Stanton Avenue on the south to the park on the east and north, with Chislett Street serving as the western boundary. It cuts slightly into East Liberty at one point because the buildings between Stanton and Hays and Negley Avenue and Chislett were of the same signature as Highland Park’s, said Mr. Eversmeyer.
“I think it’s something for Pittsburgh to be very proud of,” said Arthur Ziegler, president of the Pittsburgh History & Landmarks Foundation. “It gives national status to the neighborhood, and it will protect it from federally funded programs that could harm historic buildings.” Any such programs would be reviewed by state preservation officials, he said.
He said Highland Park’s housing collage ranges from late Victorian to early Modern, covering Edwardian, Tudor Revival and Arts and Crafts.
“The neighborhood has a feeling of architectural continuity,” he said.
Amy Enrico, owner of Tazza d’Oro coffeehouse on Highland Avenue, said, “I’m grateful for all the time they have put in. This is an incentive for all of us to preserve the architecture and stories of all the neighbors who came before us.”
The national designation does not prohibit individual owners from altering properties or require them to restore them, but it does make the district eligible for preservation funding and tax credits. City-designated historic districts are more restricted, with oversight from the planning department and Historic Review Commission on any proposed change to properties.
Several areas of Pittsburgh have federal and city historic status. One does not preclude the other, and the two do not always follow the same boundaries, said Mr. Ziegler.
“No one has spoken about interest in going for city historic designation” for Highland Park, Mr. Eversmeyer said.
David Hance, president of the Highland Park CDC. credited then-city councilman, now state Sen. Jim Ferlo for funding the research. The designation, he said, “tells us that what we see everyday where we live is notable, and it’s one more tool we have” to encourage quality development.
First published on September 12, 2007 at 2:52 am
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Preservation group moves beyond county lines
By Ron DaParma
TRIBUNE-REVIEW
Sunday, September 9, 2007The Pittsburgh History & Landmarks Foundation is best known for its preservation efforts of historic properties throughout Allegheny County.
However, the South Side-based agency has been extending its reach beyond its home county in recent years, including with its latest project in Beaver County — an effort to bring “residential reinvestment” to areas near business districts in nine communities.
The foundation is the lead consultant on the project focusing on Aliquippa, Ambridge, Beaver, Bridgewater, Freedom, Midland, Monaca, New Brighton and Rochester.
“The idea is to work with the local officials and independent local organizations to identify new projects for each of the communities that in general terms fall into the guidelines of the state’s Elm Street program,” said Eugene Matta, the foundation’s director of real estate and special development programs.
Elm Street is a program established by Gov. Ed Rendell’s administration that this year is making available $7 million statewide to improve residential streets near Main Street business districts.
It provides seed money to be matched by funds raised from other sources to make the improvements a reality.
Though not an official Elm Street program, the foundation describes it as an “Elm Street-like” program.
While it will not necessarily be securing funds under that program, it will be seeking support from state and private sources.
The foundation is working under a consultant contract it signed several weeks ago with the Community Development Program of Beaver County, paid for with $50,000 from the state Department of Community and Economic Development.
Also on board is Town Center Associates, an organization serving as “sub-consultant.”
“TCA is headquartered in Beaver County and knows that county well,” said Arthur P. Ziegler Jr., PH&LF president.
“It’s president, Mark Peluso, already has done quite a bit of work in the community,” said Matta.
Examples of the projects funded under the Elm Street program include improvements to building exteriors, streets, new street lighting and trees, sidewalks or other “pedestrian-oriented features,” Matta said.
Other activities include improvements of mixed-use buildings in residential areas, acquisition of properties, demolition and reclamation projects, code violation repairs, emergency housing repairs, addition of home security items, parks and playgrounds and water and sewer connections.
The consultants have held one meeting with community leaders to discuss how to proceed with the program, and a second meeting is scheduled Tuesday.
“We suggested to community representatives that sometime in October we would like to have at least four projects they feel are worth considering,” Matta said. “Then somewhere between October and November, we should be able to start work on applications for funding.”
Over the past year, the foundation has secured five grants totaling nearly $800,00 under the DCED funding process.
Its efforts include helping to attract $2 million in investments in Wikinsburg to rehabilitate four properties in the historic Hamnett Place neighborhood.
It is working as manager of the Main Street program in Vandergrift, Armstrong County, and it received a $7,500 grant from National City Corp. to help form a Main Street project for Freeport, Leechburg, Apollo.
Preservation of historic farms also has been a focus. The organization is involved in a survey of farm properties in Green and Washington counties, Matta said.
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The Granite Building To House Luxury Condominiums
Built in 1889–90 as the German National Bank and now a contributing structure in the Pittsburgh Central Downtown National Register Historic District, The Granite Building provided German immigrants to the Pittsburgh area with a place where they could transact their banking in their native language.
Designed by Bickel & Brennan, the “Richardsonian Romanesque” granite building imitates the style of the Allegheny County Courthouse and Jail, designed by H. H. Richardson in 1884, just a few blocks away. Charles Bickel was a prominent Pittsburgh architect who designed several notable buildings downtown, among them Kaufmann’s department store.
After more than a century as an office building, Landmarks board member Holly Brubach is renovating The Granite Building as luxury condominiums and making the building available for a September 26th Heritage Society tour and reception.
Among the many downtown candidates for residential conversion, The Granite Building is considered ideal for its spaciousness and ample light. With only one 2,750-squarefoot unit per floor, The Granite Building provides the comfort and privacy of a single-family home in the heart of the city and represents another example of how historic buildings can stimulate economic development.
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Market Square may get historical makeover
By Jeremy Boren
TRIBUNE-REVIEW
Monday, July 30, 2007Two Market Square landmarks could be poised to regain their early-20th century charm when the city’s Historic Review Commission weighs renovation plans Wednesday.
Developers and architects believe the improvements will heighten the appeal of the square — a place many avoid because of the prevalence of homeless people and panhandlers.
Washington County developer Lucas Piatt said exterior renovations to the vacant G.C. Murphy Building will restore a 1920s or ’30s era look, based on photographs of the store in its heyday. On the opposite side of Market Square, Nicholas Coffee Co. plans to turn a closed bar into a coffee shop with an old-style European look.
Most of Piatt’s $32 million renovation project is to begin by year’s end. Retail space will occupy the first floor of the G.C. Murphy Building, and most of the 38,000-square-foot headquarters of the YMCA will be on the second floor. The Y will occupy a portion of another floor as well.
“The benefit of having the activity back in the building is huge,” Piatt said. “The tax repercussions for the city will be phenomenal.”
Piatt’s project will receive about $6 million in state aid and benefit from tax credits for restoring historic buildings.
Downtown architecture firm Strada LLC is handling the design work on the G.C. Murphy Building and nearby structures, such as the adjoining seven-story D&K Building.
“There’s a combination of architectural styles within all these buildings,” said John Martin, a Strada principal. “We’re trying to bring the buildings as close as we can to their own original look.”
Original brick that was painted over will be exposed, decorative stone fixtures at the entrance will be rebuilt, and windows will be replaced.
“The (historic commission) would rather you don’t invent,” Martin said. “They don’t want it to be Disneyized.”
To avoid that, he’s relying on photographs of the buildings from the 1930s to help guide the design. Martin said he thinks the commission will approve the project. The changes still would need approval from the state Museum and Historic Commission.
Nicholas Coffee hopes to expand its imported coffee, tea and spices business to include the former Mick McGuire’s bar next door on Graeme Street. The Irish pub was closed Jan. 12 after police arrested three people accused of dealing drugs from the business.
Architect Doug Sipp of Sipp & Tepe Architects has designed about $50,000 worth of facade renovations for coffee shop owner Nicholas G. Nicholas. The interior would be changed into a cafe offering coffee, espresso, pastries and other treats.
“The facade will be like a step-down European storefront,” said Mike Kratsas, project manager. “There will be large windows like an old-time storefront.”
Arthur Ziegler, president of the Pittsburgh History & Landmarks Foundation, welcomed both of the historically sensitive upgrades to Market Square.
“I think that both coming together give a great deal of substance to the effort to make the square a vital part of the residential Downtown,” Ziegler said. “Restoring historic buildings creates an environment where people want to be.”
Jeremy Boren can be reached at jboren@tribweb.com or 412-765-2312.
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More condos proposed for Strip District
By Mark Belko,
Pittsburgh Post-Gazette
Wednesday, July 11, 2007Yet another condo project is in the works not far from Downtown.
Solara Venture IV, LLC is seeking a loan of up to $390,000 from the city Urban Redevelopment Authority to help finance acquisition and pre-development costs for a proposed 60-unit condominium development in the Strip District.
The company is planning to convert the Otto Milk Building on Smallman Street between 24th and 25th streets into condos, with smaller units starting at $180,000, according to the URA. The development also would include two floors of retail and office space, plus 75 parking stalls.
URA board members are expected to consider a Pittsburgh Development Fund loan of up to $390,000 at their meeting this week.