The Mt. Lebanon commissioners did not vote Monday on a developer's request to extend a sales contract for land for a 60-unit luxury condominium complex, leaving the project's future uncertain.
Michael Zamagias Interest LTD has asked for an extension to Dec. 1 of a sales contract for four parcels on Washington Road that the group agreed to buy from the Mt. Lebanon Parking Authority.
That contract required the developer to secure tax increment financing by Sept. 1, a deadline that the developer said he was unable to meet.
Mt. Lebanon solicitor James Roberts said at Monday's meeting that he would have to review the sales contract to see if the failure to extend the sales agreement would kill the deal. He would not speculate on it at the meeting.
The contract says: "If TIF financing for the project is not finally approved by the taxing authorities by Sept. 1, then this agreement shall terminate, provided, however, that if the receipt of such final approvals is delayed beyond Sept. 1, the buyer and the seller, with the consent of the municipality, may mutually agree to a later date."
The commission's next voting meeting is Sept. 11.
Tax increment financing is a way governing bodies can offer tax incentives to developers.
Zamagias has applied for a $6.5 million TIF, which calls for about $11.4 million in funds from Mt. Lebanon and its school district over a period of 20 years to help the developer build a two-tower condominium complex on Washington Road at Bower Hill Road.
The project, estimated at $32.5 million, has received preliminary approval from the planning board, but the TIF financing was still in the early stages of being discussed by members of the TIF committee, which includes representatives of local governing bodies.
But commissioners were unclear why the extension was needed, and because no one from Zamagias appeared at the meeting Monday to explain the delay, the board did not propose a motion to extend the agreement.
"I can't support it," Commissioner David Humphreys said of the request to extend the contract. While he said he did agree that TIFs can be useful development tools in some instances, he was concerned about the way the TIF procedure was progressing and the lack of information.
"I have deep concerns at this point as to what is going on here," said Commissioner John Daley, who said he did not support extending the contract because he thought the developer would continue to drag his feet.
Commissioner Barbara Logan agreed.
"I just don't want to see us squander months, and then years, hoping it will happen," she said of the project.
Commissioner Dale Colby was the only one reluctant to let the contract lapse.
"My feelings are, I'd hate to kill this deal, if that's what we're doing here," he said.
Commissioner Keith Mulvihill was absent.
Mr. Humphreys asked municipal Manager Stephen Feller to request a detailed explanation from Zamagias as to why they could not get the TIF financing in order.
