EmailEmail
PrintPrint
Forum: Bright lights, big city
Downtown Pittsburgh is on the move. HERB BURGER recounts how the ball got rolling again
Sunday, May 14, 2006

Approximately 18 months ago, I was invited to a meeting of concerned executives from the Allegheny Conference, the RIDC, Strategic Investment Fund and the Downtown Partnership and asked to head up a task force to restart the Fifth and Forbes redevelopment project. The basic objective: Start a private initiative, cooperative with the city, but not directed by the administration. Based on those experiences, there were some problems that needed to be solved as we worked through the process. I believe that understanding how we got to this point will help us as Downtown enters a new phase.

 
 
 

Herb Burger, a retired marketing executive, was chairman of the Pittsburgh Task Force.

 
 
 

1) You need a comprehensive plan that is based upon market realities, with people who are willing to invest.

A developer was chosen before I arrived, Carl Dranoff, from Philadelphia. He had skills, was a "big picture" developer. However, his interest was slow (10 months from start to a plan) and flagged further when he heard that PNC would do its own development. Carl was soon gone from the scene and we had to start all over.

We looked for developers who would see Pittsburgh as an opportunity, as the economic center of the region, and would have the capacity and resources to do the job. We interviewed local developers -- many were too busy, did not have the resources or wanted to "cherry pick" a few of the URA-owned buildings. We needed a lead developer.

2) Search out regional or national developers who understand how to remake a city and brought strong resources and skills to the effort.

I had lunch with the charming and flamboyant Damian Soffer, who suggested a national firm by the name of Madison Marquette. He helped set up my contact and Madison Marquette people spent several months here studying the market. They had skills, resources, and retail contacts and were interested. At the time, they enthusiastically saw great potential in the city. We knew that the state, foundation and other funding sources would require a lead developer who could assume financial responsibility. This option changed with the election of a new mayor who wanted to review proposals by Pittsburgh firms, not national companies. Faced with this decision, Madison Marquette decided to focus their attention on more immediate projects and withdraw their involvement.

3) The final choice of a developer is the mayor's prerogative, so the development has taken a new turn. We now needed to find a local developer.

At the same time we talked to Madison Marquette, we had a stroke of good fortune. A developer my wife and I had worked with on another project invited me to a lunch with Jack Piatt, a Washington County developer. If you want imagination, and courage, Jack Piatt fits the bill. This distinguished looking entrepreneur -- silver hair, sparkling blue eyes -- was clearly a man of action. When he saw an aerial photo of the Downtown he said, "What's for sale?" I said that the Lazarus building was available. He responded with, "How much?" I gave him an estimate and he said, "I'll buy it and make it my signature building."

After numerous complications were resolved, parking, air rights, etc., the Lazarus sale was completed. Mr. Piatt planned retail and a supermarket on the first floor, offices on two and three and four, and then adding three floors of upscale condos to the top of the building. The Fifth and Forbes project was now jump-started.

Shortly after the Piatt announcement, Jim Rohr, CEO of PNC, announced an exciting $172 million project adjacent to the headquarters building.

4) Mr. Piatt and Mr. Rohr, both Pittsburghers, are committed to the city and the region. That's what was needed to get the process moving.

Since that time Mr. Piatt has made a comprehensive proposal to also develop the other side of Fifth Avenue and the Forbes area behind it. He has the skills, resources, and background to undertake such a project and would be a strong candidate. We now know that Madison Marquette has withdrawn, to favor the mayor's desire to have a local developer. But add to that the Cultural Trust's future development plans, the new Piatt Place and PNC's development and you have an attractive, exciting and vibrant city center.


So now can we rest on our laurels and consider the development job done? No, not quite.

Development and new buildings do not necessarily make for an appealing, inviting city, a place where young professionals and empty nesters will want to live, regardless of which developer is chosen for the final piece of Fifth and Forbes.

We need to sort out more qualities that will add warmth and charm to the new Downtown -- make it attractive physically and economically. Here are a few thoughts:

Developers visiting Pittsburgh find the prospects here interesting. Instead of the outer fringes of the city needing development, they're healthy. It's the center or the hole of the donut that needs help. They see opportunities we don't see.

The corporate community needs to commit to a continuing presence in the Downtown as "the place to be," reducing the office churn, which, of late, has reached serious proportions. We need people working in offices, as well as living there.

City Council, city and county government need to band together to reduce taxes for residents and businesses in the Downtown. There is no choice but to make the city core more competitive, not only with the suburbs, but also with other metro areas.

To be competitive and inviting, we need to offer moderate-priced parking for shoppers and visitors, and residential units must offer parking.

We need to focus on attractive retail and entertainment activities, not readily available in nearby malls. This will require aggressive, focused contacts and work.

It is part of the Pittsburgh culture to love "process" and "vision-making". We can discuss plans ad infinitum. Everyone enjoys talking about development ideas and to prepare guidelines etc. But, our dreams often have little connection to market realities and what investors would be willing to invest in. It is time for less process and more market-oriented action.

Let's focus on making our city interesting and attractive -- turn on some charm and make it more of a destination. For example, how about statutes of the great musical entertainers who began here? Or attract one of today's cinema complexes that have varied forms of entertainment? How can we better showcase a high-tech city? Is it a high-tech sign, a la Times Square, or as we have at the Pittsburgh airport? Maybe we should ask our young professionals in the tech arena for their ideas.

We need to encourage immigration. New blood, new cultures, new ideas will enrich our city. Help it to grow and prosper.

My role in the Pittsburgh Task Force having been completed, I want to thank all those who helped -- the RIDC, Strategic Investment Fund, URA, city government, Allegheny Conference, the Elmhurst Group and others. To all who go the next steps, I say good luck and Godspeed. Pittsburgh is a wonderful city and deserves your good work.

First published on May 14, 2006 at 12:00 am