Golden Triangle Buildings Could Get Face-Lifts

Sunday, December 26, 2010
By Mark Belko, Pittsburgh Post-Gazette

The city is looking to brighten up some “dark corners” Downtown.

Aided by a $4 million state redevelopment assistance grant, the Urban Redevelopment Authority hopes to target rundown buildings Downtown and work with property owners to upgrade them.

The project is designed to supplement a larger revitalization in the Golden Triangle that already has included the construction of the Three PNC Plaza office tower and the redevelopment of a former five-and-dime store and a department store into residential, retail and other uses.

With much of that work completed, the URA has decided to go after properties “in need of some reinvestment” — not to buy but to approach and work with the owners about making improvements.

“This is really a building-by-building, block-by-block approach,” said Yarone Zober, URA board chairman and chief of staff to Mayor Luke Ravenstahl.

Mr. Zober said the genesis for the idea came during walks he and Mr. Ravenstahl had Downtown.

“One thing the mayor and I noticed at street level were individual buildings that needed work … or didn’t have street-level appeal. They detracted from the general feel and look of the Downtown corridor,” he said.

“It became very clear that we needed new tools to continue the revitalization of Downtown.”

Funds from the grant, awarded by Gov. Ed Rendell earlier this month, can be used to make facade improvements or to address “life safety” issues that prevent property owners from using upper floors for residences or other purposes.

Life-safety improvements could include stairwells, elevators or other measures to bring buildings up to code. URA executive director Rob Stephany said such improvements typically run $250,000 at the minimum.

While projects like Three PNC, Piatt Place and Market Square Place have helped to transform Downtown, there are other buildings still in need of work, including some near the upscale Capital Grille restaurant at Fifth Avenue and Wood Street, Mr. Stephany said.

“You go to wait for the valet to bring your car back and there’s blight staring you in the face,” he said.

Properties the city initially is targeting for possible work include the Thompson Building on Market Street between Fifth and Market Square and a building owned by the Order of Italian Sons & Daughters of America at Wood and Forbes Avenue that once housed a McDonald’s restaurant.

Also on the list are three buildings at the western corner of Fifth and Wood that house a jewelry store and other retail outlets and a couple of buildings on Wood owned by the URA itself.

Mr. Zober said the URA already has had discussions with the property owners about potential improvements.

David Kashi, owner of the Fifth and Wood properties, said he hopes to secure funds to upgrade the facades of the buildings. He plans to install new windows and perhaps add a marquee to the front of the buildings. He also is thinking about placing a “big clock” on the corner building.

“We’re going to make Downtown beautiful,” he said.

Mr. Kashi said he already has had one meeting with the URA and plans to have another next month to work out plans and budgeting. He had no estimate for the cost of improvements.

He likes the city initiative.

“Downtown is the center of the whole Pittsburgh area. I think it’s about time someone took the initiative and improved the look. Nothing has changed in 50 or more years,” he said.

Improving the overall ambiance also “attracts investors to bring money into Downtown Pittsburgh,” he said.

The program will require property owners to match amounts received from the URA. Mr. Kashi is not thrilled about having to do so but said he would to increase the value and curb appeal of his properties.

The Thompson Building, which once housed the Ciao Baby restaurant, is owned by the Pittsburgh History & Landmarks Foundation, which already has redeveloped three adjoining buildings at Market Street and Fifth.

Arthur Ziegler Jr., president of the foundation, said the organization plans to restore the facade of the Thompson Building, which likely will play host to some type of restaurant, bar or cafe.

Mr. Ziegler said the building once housed a restaurant operated by the Chicago-based Thompson restaurant chain. The chain at one time had six restaurants in Pittsburgh, but the Market Square building is the only one that has survived.

It was purchased by John R. Thompson in 1926, but dates back farther than that, perhaps to the turn of the century.

“It is an important part of Pittsburgh history,” Mr. Ziegler said.

Besides restoring the exterior, the foundation will “try to meet the green standards that we’ve established down there and we want to get the building in service as soon as possible in 2011,” he said.

The foundation spent $3 million restoring the original facades of the three adjoining buildings, which house a men’s clothing store, a shoe store and apartments. It plans to make a substantial investment in the Thompson Building but also is looking for help from the URA to fill in the gap.

“We did not do that with the first three buildings. We provided the funds. We need some help with this fourth one,” Mr. Ziegler said.

Like Mr. Kashi, Mr. Ziegler believes there is a need for the type of program the URA is starting.

“I think it’s excellent. We need to continue to recognize the value of these historic buildings and improve their exteriors and their basic interiors to meet building codes,” he said.

At the site of the former McDonald’s restaurant, the city would like to remove the burnt-orange metal facade that covers the upper floors and restore the building’s original exterior.

Mr. Ziegler said that underneath the current facade the building features an attractive stone architecture. “It was a handsome corner and we would like to see it be that again,” he said.

Officials at the Order of Italian Sons and Daughters could not be reached for comment.

While the URA has targeted some real estate, any Downtown building owner interested in upgrading a property can contact the agency about possible aid, Mr. Zober said.

The city’s effort is unrelated to six acquisitions totaling $15.15 million made by an unidentified buyer on the east side of a block bordered by Wood, Fifth and Forbes over the past eight months.

While the identity of the buyer is not known, many in the real estate community believe it is PNC Financial Services Group, which built Three PNC Plaza. A PNC spokesman has said, “We don’t comment on speculation.”

There’s much talk that the block could be the site of the next big development Downtown. In the meantime, the city is hoping to fill in the cracks.

“Our goal is to really make Downtown look complete,” Mr. Zober said.