The Pittsburgh-Allegheny County Sports & Exhibition Authority will spend $10.85 million to acquire properties from eight owners in the Uptown area to clear the way for the construction of a new arena.
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The authority board yesterday voted unanimously to approve the purchases, which involve properties on Fifth Avenue, Colwell Street and Washington Place.
With the action, authority Executive Director Mary Conturo said, the agency has agreements with eight of the 10 property owners it had targeted earlier this summer to acquire land needed for the proposed arena.
Ms. Conturo said the authority also has a verbal agreement with another property owner, Mark Bertenthal, which should be finalized today.
The lone holdout is the Laborers District Council of Western Pennsylvania, whose offices are on Fifth Avenue.
The union, she said, is agreeable to a sale but may not be able to get the approvals it needs fast enough to suit the authority.
As a result, the board authorized Ms. Conturo to take the property through eminent domain, if needed. Ms. Conturo said, however, she expects to be able to reach an amicable agreement with the union and that negotiations would continue.
"They have no objections to us filing for eminent domain while we continue to negotiate," she said. "We fully expect to be able to reach an agreement."
The board also gave Ms. Conturo authorization to file for eminent domain on two parcels owned by Mr. Bertenthal. The filings could come as early as today to avoid a change in state law that takes effect this weekend and makes it more difficult for government to take property for private development.
Ms. Conturo said the authority also wants to avoid a situation in which a holdout could affect its ability to clear the land it needs for the arena.
"We don't want to be signing any sales agreements until we know we can acquire all the properties. We want to be comfortable we can get control of the whole site," she said.
The sports authority's preferred site for an arena is the same as that proposed by the Penguins. It borders Fifth Avenue, Washington Place and Centre Avenue. The Penguins already own the former St. Francis Central Hospital on Centre, which would be part of the site.
Ms. Conturo said the authority hopes to close on the acquisitions by Oct. 15. It has notified property owners and occupants that they need to vacate by Jan. 1 so demolition can start. It hopes to begin construction by June or July, with completion planned for 2009.
The state is advancing $26.5 million from anticipated gambling revenues to help the authority acquire properties and begin site preparation work. The authority board also authorized a line of credit with PNC Bank yesterday to help with the acquisitions in the event the state advances aren't available for the closings.
Of the $10.85 million in spending approved by the board, $631,000 is for relocation costs.
The largest purchase price approved yesterday was $3.99 million for a parking lot owned by Parkway Partnership of Pittsburgh. It has an assessed value of $1.4 million and was purchased for $1.5 million in 1999, according to the county's real estate Web site.
The second largest purchase was $3.4 million for all or a portion of eight parcels owned by Epiphany Church. The assessed value of six of the parcels is $2.5 million; values for the two others could not be determined.
County and city officials are working quickly to acquire the land and to move on arena construction to make sure the Penguins stay in Pittsburgh.
Hartford, Conn., real estate developer Sam Fingold has signed a letter of intent to buy the team for an estimated $175 million. In recent days, however, it appeared his bid could be in jeopardy because of sticking points, including financial problems.
Mr. Fingold has said he would try to keep the Penguins in town. He also has ties, however, to a group hoping to bring professional hockey to Kansas City. The National Hockey League probably would be reluctant to move a team if a viable plan is in place for a new arena.
Isle of Capri Casinos Inc. has pledged $290 million toward an arena as part of its bid for the Pittsburgh slot machine casino license.
Gov. Ed Rendell and local politicians also have come up with an alternative plan that relies on pledges from the two other casino bidders -- Forest City Enterprises and PITG Gaming LLC -- to provide $7.5 million a year for 30 years toward the facility, plus $7 million a year from other slots revenues and $4.1 million a year in team contributions.
Also yesterday, the authority board approved up to $10,000 in payments to Smith Sports International for consulting services to help in drafting a new lease for a new Penguins owner. Ms. Conturo said Smith also has done lease work involving Heinz Field and PNC Park.

