A city Urban Redevelopment Authority board member blasted the efforts by the Pittsburgh Penguins to develop the former Civic Arena site Thursday, saying he had no faith in their ability to do so.
“Personally I feel we should pull the plug on the Penguins. I don’t see them ever developing this site. I think they’re making too much money parking cars there every day,” said Jim Ferlo, a former state senator, referring to the development rights the team holds to the land in the lower Hill District.
Mr. Ferlo’s comments came as his colleagues, in a 4-1 vote, approved another round of environmental testing for part of the 28-acre site owned by the URA. The goal is to clear the way for the first phase of a 1,200-unit residential development proposed by the Penguins.
But Mr. Ferlo, who voted against the measure, said he’s not sure anything will be built as long as the hockey team is involved. He urged the URA to try to take back the rights to the property, by eminent domain if necessary.
“I don’t see any movement on the site,” he added. “I don’t see anything happening. I don’t see any way for anything to happen with the Penguins involved.”
The team was supposed to start the 175-unit first phase of the residential development in October. Instead it paid $75,000 to buy another six months, in part because of issues regarding possible site contamination.
In addition, the team has spent $225,000 for three extensions related to a proposed office development. It had signed U.S. Steel to build a new headquarters there, but the deal collapsed because of the company’s financial problems.
The payments for the extensions came from development credits the team was awarded in the deal to build PPG Paints Arena, formerly Consol Energy Center.
Kevin Acklin, URA board chairman and chief of staff to Mayor Bill Peduto, came to the team’s defense.
Although he acknowledged there’s frustration, he said he is convinced the team is working hard to get development moving.
Progress has been slowed in part by issues involving affordable housing, including a complaint filed by one community group with the U.S. Department of Housing and Urban Development, he said.
“I have seen a commitment by this team ... to advance development. We’re not there yet. I think we have some hard work to do,” he noted.
The Penguins are still operating within the framework contemplated in the option agreement they signed with the URA and the city-Allegheny County Sports & Exhibition Authority to develop the land. Mr. Acklin said.
In a statement released after the meeting, Travis Williams, the Penguins’ chief operating officer, said the team has taken a number of steps toward development, including working with the SEA to help clear the site and find funds for infrastructure; reaching a community benefits agreement with Hill District leaders; and hiring developer McCormack Baron Salazar to do the housing component. It also has invested $5 million in the project, Mr. Williams said.
“These are not the actions of an organization merely content to collect parking revenue,” he said.
Nonetheless, board member Cheryl Hall-Russell, president and CEO of the Hill House Association in the Hill, said there remains “a lot of frustration” over the lack of progress.
The URA will pay KU Resources Inc. up to $250,000 for the latest round of environmental testing at the site, needed in part to help craft a remediation plan.
While the URA is paying for the testing, the Penguins have agreed to reimburse the agency once they purchase the land. And if by some chance, the team does not end up developing, the testing would have needed to be done, anyway, Mr. Acklin said.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: December 9, 2016, 5:00 a.m.
