Penguins Halt Development Of Former Civic Arena Site Following URA Board Vote
PITTSBURGH (KDKA) - The Penguins have decided to halt their development activities at the site of the former Civic Arena after the Urban Redevelopment Authority Board delayed their vote Thursday on the plans of the proposed First National Bank headquarters.
Penguins' CEO David Morehouse issued a statement following the vote.
"In a week where the Penguins had to furlough a majority of our employees and we are all suffering the worst health and economic crisis in our nation's history, we are disappointed that the URA delayed a $200 million development project that alone would create 1,500 construction jobs, 2,000 permanent jobs, deliver the highest commitments to minority and women-owned businesses in the city's history, and generate $11 million in direct and immediate investment into the middle and upper Hill District. Our primary anchor tenant pledged to grow thousands of new jobs in Pittsburgh and has justified expectations that this development will be delivered on time, in accordance with our Option Agreement. With constantly changing demands and delays, it makes delivery increasingly impossible. At this point, given the current economic conditions and the apparent lack of support from the URA, we are ceasing our development operations on the Lower Hill."
The URA voted unanimously to delay voting on the plans because, according to some members, the plans only came in the last few days, giving members less than enough time to review them.
"Despite broad support for the general concept, both from the URA and the Greater Hill District community, it's a matter of public record that the development team knew in April that much more work was needed to solidify details on commitments made to the public in previous agreements," said Board member Councilman R. Daniel Lavelle. "The minimum turnaround time usually requested is five business days."
Mayor Bill Peduto's Chief of Staff Dan Gilman told our news partners at the Pittsburgh Post-Gazette that he believes the deal can still be reached.
Mayor Peduto released this statement Friday afternoon.
"The City of Pittsburgh remains fully committed to delivering a transformative development to the Lower Hill District in partnership with the Pittsburgh Penguins and BPG. Over the past several months, we have successfully worked together on numerous positive votes without delay to take down parcels, advance affordable housing, and move forward with a new corporate HQ skyscraper. This development partnership will also bring over $10M in funding to the greater Hill District Community, new rec2tech facilities, and an MWBE small business incubator, union jobs, and local hiring programs. The City and URA are working closely to advance a vote in the coming days that will build off that partnership and take the next step forward in seeing this vision come to reality."
The Penguins have proposed a billion-dollar redevelopment of the former arena site which would including office space, housing, a music venue, retail stores, restaurants, and a hotel.
The URA says they are still committed to getting the deal done.
"This is truly a transformative development, worthy of public support, and so it should also be strong enough to withstand a short delay for review," said URA Executive Director Greg Flisram. "We know that we can achieve development goals while also realizing tangible community benefits; at today's URA, we understand those are complementary, not competing, goals."
