Category Archive: Pittsburgh Tribune Review
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Iron City’s new owners predict full-bodied future
By Joe Napsha
TRIBUNE-REVIEW
Wednesday, June 6, 2007The new owners of Pittsburgh Brewing Co. believe the brewery is well-positioned for growth under a bankruptcy reorganization plan approved Tuesday, and a beer industry expert agrees.
The ownership group, led by Connecticut investment manager John N. Milne, plans to take over the Lawrenceville brewery on July 7 and operate it under the name Iron City Brewing Co., which was the name of the brewery when it was formed in 1861.“Today marks a positive first step for Iron City Brewing Co.,” said Timothy Hickman, who will become the brewery’s president, in a statement yesterday.
U.S. Bankruptcy Judge M. Bruce McCullough approved the reorganization plan, which will enable the beermaker to emerge from bankruptcy for the first time since Dec. 7, 2005.
“Pittsburgh Brewing was in bankruptcy for two main reasons — a weak balance sheet and an excessive cost structure. The reorganization plan addresses those issues and positions it well for future growth,” Hickman said.
A beer industry expert believes that with the right business plan, the new ownership can succeed.“They are just sitting on a gold mine,” because Pittsburgh Brewing’s brand equities “are just phenomenal,” said Daniel Bradford, publisher of All About Beer magazine in Durham, N.C.
Even so, though the new owners pledge to spend $4.1 million on a new kegging line and a new gas-fired boiler, and $500,000 on marketing the brands, having money to spend is not a guarantee of success, Bradford said.
“It is not just a question of (spending) money. You have to be strategic, and you have to execute well,” Bradford said.
Bradford believes the news ownership can “tap into some really strong trends right now.” One of those is what he calls the “retro trend,” the popularity of older beer brands like Iron City and IC Light, among adults in their 20s.
The new ownership group has an opportunity to create a specialty beer segment, a whole new brand they can roll out within the existing market, and add value to the business, Bradford said. Brewers such as High Falls Brewing Co. of Rochester, N.Y., which brews the Genesee family of beers, along with the Matt Brewing Co. of Utica, N.Y., and City Brewing Co. of La Crosse, Wisc., which bought the former Latrobe Brewing Co. plant, are among such success stories.
“It’s not just an extension of Iron City. It is thinking more along lines that reflect the indigenous culture of Western Pennsylvania,” Bradford said.
The new ownership group will take over the brewery from Joseph R. Piccirilli, who bought the business out bankruptcy in 1995. Milne’s group convinced creditors to accept a repayment plan that offers creditors no more than $5.03 million on claims totalling more than $26 million. There was a near-unanimous approval of the reorganization plan, brewery attorney Robert O. Lampl told the judge.
“I did not think we would be here today,” McCullough said as he approved the reorganization plan during a 15-minute hearing. However, he added a cautionary note, saying, “I don’t know how long it will last.”
The developments yesterday “give us optimism,” said George Sharkey, president of the negotiating board for the bottlers and brewers, members of the International Union of Electrical Workers-Communication Workers of America Locals 144b and 22b. “We’re hoping for great things. We hope the people of Pittsburgh buy the beer and support the business.”
Milne’s group projects that it can boost sales from $30.5 million in its first full year of operation to $37.4 million after three years.
The group will be able to take advantage of a 15 percent reduction in union workers’ wages and benefits under a contract that takes effect when new ownership is in place. Retirement costs were cut by terminating the union-sponsored pension plan, and medical insurance costs for employees were reduced by 20 percent.
Joe Napsha can be reached at jnapsha@tribweb.com or (412)-320-7993.
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City Council approves tax abatements
By Jeremy Boren
TRIBUNE-REVIEW
Tuesday, June 5, 2007Tax breaks designed to attract home builders to Downtown and 28 neighborhoods won City Council’s OK today but excluded some low-income neighborhoods, residents complained.
“It seems to me that the city is trying to upscale the city, and there’s no room for lower income people,” said Donna Washington, 51, a Fairywood resident who told council that her neighborhood should be eligible for the tax breaks.
“We are always left out,” said Washington, a member of the Fairywood Citizens Council. “There are a lot of people who would like to do work on their homes … and they can’t afford (the higher taxes).”
Beginning July 1, those who build new housing — or significantly improve existing residential property in the designated neighborhoods — would be exempt from the city’s 10.8-mill property tax for 10 years.
The tax break applies to the increase in value of new developments capped at $250,000. For example, the owner of a new apartment building worth $250,000 would not have to pay $2,700 a year in property taxes, creating $27,000 in savings over the decade.
The City Planning Department created a “vitality index” to determine which neighborhoods would be eligible for the program. The department assigned scores to neighborhoods based on data such as housing vacancy, violent crime, income, education levels and population decreases.
The bill, proposed by Mayor Luke Ravenstahl, passed 8-0 today. Councilman Len Bodack was absent.
Nancy Noszka, director of real estate with the Northside Leadership Conference, likes the tax break program and said if it entices home builders to come to the city “the program will help stabilize our communities.”
Cindy Cassell, project manager for the Neighbors in the Strip community group, said the tax breaks could persuade developers to improve some of the estimated 100 vacant properties in the Strip District.
“The 10-year tax abatement will make the cost of rehabbing these old buildings more affordable,” she said.
Councilman Bill Peduto said the mayor’s office should have focused the tax breaks on Downtown because it has the greatest potential for new development that would eventually feed the tax base after the 10-year abatement.
He said the bill has “flaws” because the Planning Department’s vitality index should have been based solely on income, akin to federal Community Development Block Grant programs.
“This is not perfect legislation; it definitely has its flaws. But we definitely have an opportunity to move forward and see some development Downtown,” said Peduto. He said he voted for the legislation because he believes Pittsburgh lags behind other major U.S. cities in offering such tax breaks.
In addition to Downtown, eligible neighborhoods for the tax break are: Allentown, Arlington, Beltzhoover, California-Kirkbride, East Allegheny, Elliott, Esplen, Fineview, Hays, Hazelwood, Homewood North, Homewood South, Homewood West, Knoxville, Larimer, Lincoln-Lemington/Belmar, Lower Lawrenceville, Manchester, Marshall-Shadeland, Mt. Oliver, Perry South/Perry Hilltop, Sheraden, Spring Garden, the Strip District, the Upper Hill District, Upper Lawrenceville, Uptown and the West End.
Jeremy Boren can be reached at jboren@tribweb.com or (412) 765-2312.
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New owners of Pittsburgh Brewing to take over July 7
By Joe Napsha
TRIBUNE-REVIEW
Tuesday, June 5, 2007Pittsburgh Brewing Co.’s 18-month journey through bankruptcy court ended today when a federal judge approved a reorganization plan that gives the brewery new owners and new source of money to modernize.
U.S. Bankruptcy Judge M. Bruce McCullough today gave his stamp of approval to a plan that was approved last month in a nearly unanimous vote. All groups of creditors — those whose debt was secured by liens and those who debts were unsecured — approved the reorganization plan, said Robert O. Lampl, Pittsburgh Brewing’s attorney.
Commenting on the successful reorganization of the bankrupt brewery, McCullough said that when he took the case in December 2005, “I did not think we would be here today.” He added a cautionary note, saying, “I don’t know how long it will last.”
The new ownership group, led by Connecticut equity fund manager John N. Milne, will take over on July 7, not Thursday, as it had been proposed in the reorganization plan. The new owners need additional time to get permits from the Allegheny County Health Department and wrap up other details related to the bankruptcy, said Joel Walker, attorney for Pittsburgh Brewing Acquisition LLC., the company that will fund the brewery.
Milne’s group convinced creditors to accept a repayment plan that will offer creditors no more than $5.03 million, on claims that totalled more than $26 million. If the plan failed and the brewery were liquidated, the creditors might not receive any repayment, Pittsburgh Brewing said.
The 147-year-old Lawrenceville brewery, maker of Iron City, IC Light and Augustiner brands, will be operated under the name of Iron City Brewing Co., Walker said.The ownership group has promised to invest about $4.1million to modernize the brewery, including a new kegging line and boiler. In addition, increased marketing efforts will be launched to promote the brewery’s brands, which include Iron City, IC Light, Golden Lager and Augustiner, said Timothy Hickman, who will become the brewery’s president next month.
“It gives us optimism and we’re hoping for great things,” said George Sharkey, a negotiator for the local unions representing the brewery’s 150 bottlers and brewers.
Pittsburgh Brewing President Joseph Piccirilli, who bought the brewery in bankruptcy court in 1995 for $29.4 million, did not attend today’s hearing and declined a request for a comment. Piccirilli will serve as a consultant for three months after the sale, but will not play a long-term role in the management of the brewery, according to the court-approved plan.
The brewery filed for bankruptcy on Dec. 7, 2005, after the Pittsburgh Water & Sewer Authority threatened to shutoff its water over an estimated $2.5 million in unpaid water and sewage bills. Operating under Chapter 11 of the bankruptcy code, the brewery was able to withhold paying debts prior to its bankruptcy filing, while it continuing to operate.
But, even after being relieved of those old debts, the brewery has struggled. Production was slowed last month because the brewery did not have sufficient funds to pay for the raw materials to make beer. Brewery attorney Robert O. Lampl said suppliers wanted to be paid in cash for their products.
The brewery’s reorganization plan is based on receiving public funding from a combination of state, Allegheny County, City of Pittsburgh . The new owners say they want $250,000 grant and low-interest loans of $500,000 in low-interest loans from government sources within the first two years of its operation.
Milne’s group says that new efforts in marketing can boost sales of the brewery’s Iron City, IC Light and Augustiner brands to $30.5 million in its first full year of operation. The brewery’s revenues were $27 million through the first 10 months of 2005.
A beer industry expert believes a new management can succeed in reviving Pittsburgh Brewing.
“The brand equities on those beers (Iron City and IC Light) are just phenomenal. They can tap into some really strong trends right now ,” said Daniel Bradford, publisher of All About Beer magazine in Durham, N.C.
One of those trends is what Bradford calls the “retro trend” — the popularity of older beer brands among young adults in their 20s. “Retro is cool.”
Pittsburgh Brewing’s new owners also can tap into the “support your local brewery” movement among beer drinkers, Bradford said.
The new ownership group also has an opportunity to create a specialty beer segment, a whole new brand they can roll out within their existing market, and add value to the business, Bradford said. Brewers such as High Falls Brewing Co. of Rochester, N.Y., which brews the Genesee family of beers, along with the Matt Brewing Co. of Utica, N.Y., and City Brewing Co. of La Crosse, Wisc., which bought the former Latrobe Brewing Co. plant, are among such success stories.
“It’s not just an extension of Iron City. It is thinking more along lines that reflect the indigenous culture of Western Pennsylvania,” Bradford said.
“It is not just a question of (spending) money. You have to be strategic and you have to execute it well,” Bradford said.
“They need to be very judicious. They are just sitting on a gold mine,” Bradford said.
Joe Napsha can be reached at jnapsha@tribweb.com or (412)-320-7993.
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Meeting airs arena concerns
By Kevin Crowe
TRIBUNE-REVIEW
Tuesday, June 5, 2007The displacement of families and businesses caused by the construction of the Civic Arena in the late-1950s was on the minds of some residents who attended a meeting Monday about the design and construction of the Penguins’ new arena.
Lois Cain, 69, grew up in the Hill District and lived there during the construction of what now is the Mellon Arena. She watched some of her neighbors and friends get forced out of the Hill. There were public input meetings at that time, she said, but the recommendations made by the community quickly were forgotten.“I lived through this equation,” Cain told about 300 people who attended the meeting at the arena. “The Penguins have never been a friend of the Hill District.”
Cain’s comments underscored the feeling of distrust in many of the comments and questions fielded by the meeting’s hosts, representatives from the Penguins, the city Planning Department, the Sports & Exhibition Authority and Urban Design Associates, the development firm hired by the Penguins to help run the meetings, and members of organizations based in the Hill District.
The meeting was held to organize focus groups with the goal of getting input from the public about the construction and design of a $290 million arena Uptown, said host Don Carter, of Urban Design Associates.
It was the first step in a public participation process the arena project must follow to gain approval from the City Planning Commission.In response to the comments questioning the process by which public input would be handled, City Councilwoman Tonya Payne said she wanted city planners to forward minutes from the focus group meetings to her office.
“If that information can get presented to my office, I’ll make sure it gets to the community,” she said, drawing applause.
Carter said that while he was happy so many people attended last night’s meeting, the time to discuss specifics of the new arena will be during the focus group meetings. They will be held as soon as a traffic study of the area surrounding the proposed arena is completed, and the times, dates and locations will be available on the city’s Web site, he said.
Carl Redwood, a spokesman for the One Hill Community Benefit Agreement, said the meetings should be about “more than just bricks and mortar.”
Redwood led about 50 people from Freedom Corner at Crawford Street and Centre Avenue to the arena for the meeting. They carried signs that read “One Hill,” and chanted “One Hill, One Voice.”
“We want to ensure that the community surrounding this development will see tangible benefits,” he said.
People who did not attend the kick-off meeting can sign up for the focus groups by contacting the Department of City Planning, the Hill District Consensus Group or the Hill Community Development Corp.
The six focus groups are: residents; churches and social organizations; community organizations; city and public agencies; business and land owners and developers; and historic preservation groups.
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Ohio developer builds on Pittsburgh success
By Ron DaParma
TRIBUNE-REVIEW
Saturday, June 2, 2007Buoyed by success developing historic properties in Pittsburgh and other cities, developer John Ferchill is taking on what he terms his biggest challenge yet — a $180 million building revitalization project in Detroit.
Ferchill is deeply involved in an effort to turn the abandoned 33-story Book-Cadillac hotel in the “Motor City” into a luxury hotel and condominium project. He hopes to use some lessons learned here to aid in that effort, he said in an interview Friday.
“Pittsburgh has been just terrific for us,” said Ferchill, whose Cleveland-based company, the Ferchill Group, found success here in 2002 when he built Bridgeside Point, a five-story, 153,000-square-foot office building at the Pittsburgh Technology Center industrial park in South Oakland. In 2005, he added to his local resume with historic conversion of former H.J. Heinz Co. buildings on the North Shore into the Heinz Lofts, a 267-unit luxury apartment complex that is 95 percent leased.
And by the end of June, a development team that includes Ferchill will be reopening the Bedford Springs Resort, in Bedford County, a historic restoration project in the range of $100 million.
“We are going to use some things we learned in Pittsburgh and apply them in Detroit,” he said. “We used a couple of things with historic development that we had never used before that brought significant money for our projects.”
Tools used in Pittsburgh include historic tax credits and easements, said Arthur P. Ziegler Jr., president of the Pittsburgh History & Landmarks Foundation. The South Side foundation worked with Ferchill to secure the historic financing help he needed for the Heinz Lofts and Bedford Springs projects.
“John is one of the most experienced and focused developers, whether it involves new construction or restoration,” Ziegler said. “He knows how to harness together a wide variety of funding sources that make projects that seem to be impossible, possible.”
That includes the Detroit project, according to Ziegler, who became familiar with the Book-Cadillac building about a year ago while conducting a study of the site on the city’s West Side.
“It is a wonderful, historic building that will be very difficult financially to restore to make usable again,” Ziegler said. Nonetheless, he expressed confidence that Ferchill is the man to take on such a task.
“I think he can operate it very well,” Ziegler said.
“I’ve got a lot on the line here,” said Ferchill in an interview with the Wall Street Journal. His company has assumed more than $80 million in loans and other debt associated with the project, he said.
Plans are to open the building in the fall of 2008 as a 455-room Westin hotel. The top eight floors will house 67 upscale condo units, most of which already have been sold. Penthouses commanded as much as $1 million.
“I’m counting on the city of Detroit reviving itself in a manner that nobody expected to happen,” he said. Ferchill said he thinks the start of a turnaround is under way, as the city’s new ballparks, casinos and housing developments are luring more tourists and investors.
Despite his involvement in the Detroit project, Ferchill’s plans for Pittsburgh projects won’t be affected, he said.
“We have completely different teams of people working in Detroit and in Pittsburgh,” he said.
In late 2005, Ferchill sold the Bridgeside Point building at the Pittsburgh Technology Center for $31.5 million, with plans to use some of the proceeds to build a second building at the industrial park.
Plans are to break ground for that $30 million, 150,000-square-foot project within the next 30 days.
“We’re targeting technology companies, some that will have laboratory space,” he said.
Recently, local economic development officials have expressed the need for such facilities for fledgling technology firms in the region.
Ron DaParma can be reached at rdaparma@tribweb.com or 412-320-7907.
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Row house shows off South Side’s potential
By Pamela Starr
FOR THE TRIBUNE-REVIEW
Saturday, June 2, 2007When Ashley Snider bought her South Side row house four years ago, nothing had been done to it since the 1970s.
So, the 31-year-old interior designer ripped up the shag carpeting and had the original soft-pine floors refinished. She took the wallpaper off the kitchen walls and painted them an eggplant color on the bottom and a lemon yellow color on top. Snider painted the metal cabinets with black chalkboard paint so she can write on them.“Paint is cheaper than anything else,” says Snider, who works at Perlora in the Strip District. “I also redid the kitchen floor with black-and-white checkered tiles.”
Snider’s row house is one of 12 homes that will be featured on the 16th annual Historic South Side Home Tour, which will be held from 10 a.m.-4 p.m. today. Jennifer Strang, marketing and communications director for the South Side Local Development Company, which benefits from tour proceeds, says the group chose the house to illustrate how Snider was able to do a lot of work herself and stay on a budget.
“Ashley represents the next generation of South Sider, very in touch with her own sense of style but respectful of her home’s history,” says Strang. “Tourgoers will find a well-balanced mix of classic and modern design throughout and come away in awe that Ashley was able to do much of the work unassisted.”
Snider paid just $90,000 for the 1,500-square-foot row house on Jane Street, which was built in 1866 and has had 12 owners. A German immigrant, Jacob Dietz, purchased the lot for $300 in 1865 and had the house built the following year. The home was turned into two apartments at the turn of the 20th century.This is the first home she has bought herself.
“I knew I wanted to live in the South Side,” says Snider, who owns a friendly pit-bull mix named Totsi. “It was the second house I looked at. I think I got lucky.”
There was an unlucky incident shortly after she moved in. Plumbing problems when the sewage backed up in the basement cost her $9,000 to fix. New pipes had to be installed. She also paid $4,000 to have the hardwood floors refinished.
Snider painted the walls in the dining room a nice, taupe shade and used the same paint in the master bedroom. She painted a wide, taupe strip in the middle of the walls of the master bedroom and painted the rest of the walls eggshell. Violet sheers on the windows add a splash of color.
“I kept the light fixture because I liked it, but it’s not original to the house,” she points out.
The bathroom on the second floor sports pink wall tiles that came with the house. The black-and-white checkered tile floor matches the kitchen floor. Snider created the medicine cabinet herself with a beautiful mosaic pattern. She painted the rest of the walls a charcoal color, but wanted black.
“That’s the way it came out,” she says with a laugh.
The second bedroom was painted with the taupe color; and Snider painted the ceramic Elvis bookends herself. She also made the platters in the kitchen.
“I used to work at Color Me Mine in Squirrel Hill,” she explains. “I have a lot of experience working with paints and stuff.”
The woodwork throughout the row house is all original, as are the fireplaces in the living room and master bedroom. She painted one wall in the living room a rich terra-cotta shade and the other walls eggshell. Snider just started to strip the original marble fireplace in her bedroom but it’s taking a lot of time.
“I work on stuff when I have the time,” she says. “I don’t plan to do anything next. I don’t have the money for a new kitchen or bath. I just paint things all the time. I do things in cheap ways.”
Strang says that the home tour will show very diverse houses.
“From painstakingly remodeled 19th century homes to beautifully repurposed churches and industrial space, there is something for everyone,” she says. “All represent the South Side’s commitment to historic preservation.”
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Block House roof removal sheds light on history
By Allison M. Heinrichs
TRIBUNE-REVIEW
Saturday, June 2, 2007The Block House, owned by the Fort Pitt Society of the Pittsburgh Chapter of the Daughters of the American Revolution, is the oldest building in Pittsburgh and a National Historic Landmark. It protected soldiers during the French and Indian War and was used as a residence through most of the 1800s.
As the wooden planks were removed, sunlight streamed into the Fort Pitt Block House’s pyramid-shaped attic, illuminating six inches of dust.
Kelly Linn couldn’t have been happier.
“Nobody living today has ever seen this,” said Linn, curator of the Block House, as she perched on scaffolding, clutching a handful of dirty straw, twine and horsehair insulation.
Over the next three weeks, workers with RickJohn Roofing will remove the old roof, built in 1894, and replace it with a roof of similar design. The Carnegie-based company volunteered to do the project and provide materials for free, a $20,000 value. General manager Jean-Paul Bibaud made the arrangements.
The 243-year-old Block House’s attic didn’t contain any huge surprises — no bones of Revolutionary War soldiers or American Indians — but the materials used to build the five-sided roof, and the way it was put together, make it a historical treasure, Linn said.“Knowing what’s under here will launch a whole body of research into the history of roofing,” said Linn, an archeologist and historic preservationist.
The Block House, owned by the Fort Pitt Society of the Pittsburgh Chapter of the Daughters of the American Revolution, sits in Point State Park. It’s the oldest building in Pittsburgh and a National Historic Landmark. It protected soldiers during the French and Indian War and was used as a residence through most of the 1800s.
The roof has a top layer of cedar shakes, tacked atop the existing roof in 1948. Beneath is a layer of thick black felt, seven layers of tar paper and another layer of older felt, followed by inch-thick wood planks. Between the planks and the second-floor ceiling is an attic 4 feet tall at its highest point, and 16 feet wide.
The floor, coated in clumps of the dusty insulation, is littered with animal skeletons, bird eggs and old papers.
As she sifts through the attic in the next three weeks, Linn hopes to find a date on one of the scraps of paper or an old coin that would give clues about the age of the roof materials — which could date from 1764, when the building was constructed, to 1948, when the final layer of roof was installed.
Several archaeologists will inspect the roof, including a team of historic preservationists from Belmont Technical College in St. Clairsville, Ohio.
For Rick Gammiere, who co-owns RickJohn Roofing with Bobby Wallo, the project caps off an education that began when he was a child.
“When I was in grade school, we visited the Block House, and there was this rope that blocked off the upstairs,” said Gammiere. “I said, ‘I’m going to get up there.’ I can now say I have been.”
Allison M. Heinrichs can be reached at aheinrichs@tribweb.com or (412) 380-5607.
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YMCA to anchor Market Square Place
By Ron DaParma
TRIBUNE-REVIEW
Friday, June 1, 2007The YMCA of Greater Pittsburgh will cut the size of its Downtown facility by more than half when it moves to the vacant G.C. Murphy store complex on Fifth Avenue on the edge of Market Square, officials said Thursday.
The nonprofit organization will lease space at the Murphy structure and the neighboring former D&K retail store building, with the move expected by late next year.The two buildings are being developed by Washington County-based Millcraft Industries Inc. as part of its Market Square Place project, a $32 million complex that will include retail stores, restaurants and apartments.
In November, the YMCA disclosed to its nearly 2,500 full-time and 500 seasonal members that it planned to sell its seven-story headquarters building on the Boulevard of the Allies and seek another Downtown site.
“The YMCA has made a major commitment to the revitalization of the Fifth and Market District and to making Downtown a much better place to live and work,” said Lucas Piatt, vice president of Millcraft Industries.
“As the lead tenant in the Market Square Place project, the YMCA will provide a sought-after amenity to the residential aspect of the project and provide essential foot traffic to help support the additional … retail use within the development.”The move will bring 200 staffers, including 50 new hires, and the 500 to 1,000 people who use the Downtown Y’s facilities each day into the heart of the city’s deteriorated retail corridor along Fifth and Forbes avenues.
In addition to its members, the YMCA serves hundreds of others through its wellness programs.
“In our new Downtown location, we will provide wellness and other services that match the needs of our Downtown members at a convenient central location,” said Dan Lebish, board chairman of the Downtown YMCA branch.
The facility at Market Square Place will include a 25-meter, five-lane pool, men’s and women’s locker rooms, wellness facilities with cardiovascular and strength equipment and exercise rooms.
However, it will not have the basketball court, running track and other court game facilities offered at the current site.
The YMCA signed a long-term lease at the Murphy site, but terms of the deal were not disclosed. Because it is a leased facility, the new YMCA will be fully taxable property, said Piatt and John Cardone, the Downtown Y’s executive director.
Over the years, the Downtown Y attempted to secure tax-free status for its land and building at 330 Blvd. of the Allies, which drew objections from private health clubs in the city.
The organization will not move from its current location until the new complex is ready, said Cardone. He said efforts continue to sell the building, which has been home to the YMCA for 20 years.
“Our new YMCA will not only help us serve our Downtown members better, it will also enable us to invest more in YMCA programming throughout the greater Pittsburgh community,” said Cardone.
The building will be substantially more cost-effective to operate, and Cardone said savings will be returned to the community in the form of scholarships and enhanced services.
The majority of the YMCA’s new facilities and offices will be on the second floor of the former G.C. Murphy complex, about 30,000 square feet of its 38,000-square-foot space, Piatt said.
However, its main entrance will be on the ground-level floor of the seven-story D&K building, across from PNC Financial Services Group’s Three PNC Plaza project under construction. The connection between the D&K and Murphy complex will be on the second level of the two structures.
The five floors above the Y’s facilities in the D&K structure will be developed as rental apartments. Other apartment units will be located on the upper levels of the former G.C. Murphy complex, which is a combination of several adjoining buildings.
The Piatt project is being built with the aid of about $6 million in state funds. Additional help is being sought in historic tax credits.
Possibilities for ground-level retail space include a high-end spa and salon, restaurants, clothing shops and a bank, Piatt said.
News of the YMCA’s decision was welcomed by Arthur P. Ziegler Jr., president of the Pittsburgh History & Landmarks Foundation, which has been concerned about preservation of historic and architecturally significant structures Downtown.
“We’ve worked closely with the Piatts and their architect to ensure that the entire complex of buildings could be saved and made workable,” Ziegler said. “We’ve been pleased with the uses they are creating.”
YMCA on the move
New site
Location: Former G.C. Murphy complex and D&K Store building
Size: 38,000 square feet
Pool: 25-meter, five lanes
Facilities: Men’s and women’s locker rooms; wellness facilities, with cardiovascular and strength equipment and exercise rooms; whirlpool, sauna and steam room
Current site
Location: 330 Blvd. of the Allies
Size: 97,000 square feet on seven stories
Pool: 25-meter, six lanes
Not moving from old site: Gymnasium, racquetball courts, walking/running track