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SEA acquires Uptown property for arena
Officials go to court to purchase another
Saturday, September 02, 2006

The Pittsburgh-Allegheny County Sports & Exhibition Authority moved yesterday to gain control over the remaining ground it needs for a new arena, settling with one property owner and petitioning to take the land of another.

The SEA reached agreement with Mark Bertenthal, owner of Burton Signs and Specialities, to purchase two properties on Fifth Avenue in Uptown to be used for the facility, considered the key to keeping the Penguins in Pittsburgh.

But it did not have a final deal by the end of the day with the Laborers District Council of Western Pennsylvania, prompting a court filing to take the union's land by eminent domain.

SEA Executive Director Mary Conturo said she still expects to work out an amicable settlement with the union for its properties on Fifth Avenue. The SEA filed yesterday to avoid a change in state law taking effect this weekend that makes it more difficult for government to take land for private development.

Ms. Conturo has said the union is willing to sell, but needs time to get the required approvals within its hierarchy. The union declined comment yesterday.

"We expect to get it resolved within a week or two," Ms. Conturo said. "We expect to conclude our negotiations in that time."

The SEA board on Thursday approved property purchases from eight owners totaling $10.85 million as part of the effort to assemble land on Fifth, Colwell Street and Washington Place for the arena. The prices for Mr. Bertenthal's properties, at 1015 and 1021 Fifth, were not disclosed.

Ms. Conturo said that with the addition of Mr. Bertenthal's properties and those owned by the Laborers, the SEA would have all the land it needs for the facility, which would be built across Centre Avenue from Mellon Arena. One large property, the former St. Francis Central Hospital, already is owned by the Penguins.

The SEA hopes to close on the properties by Oct. 15 and begin demolition after Jan. 1, with the arena construction scheduled to start in June or July. The money for the acquisitions and site preparation will come from the state, which had pledged to advance $26.5 million in future gambling revenues.

City and county officials are moving quickly to secure the land and get the construction started in an effort to keep the Penguins, which are for sale, in Pittsburgh. Without a new arena, the team could be in jeopardy of moving.

"It is my understanding that the new arena is key to keeping the team here," Ms. Conturo said. "[The property acquisitions are] an important step in helping to make that happen."

Hartford, Conn., real estate developer Sam Fingold has signed a letter of intent to buy the team for an estimated $175 million. While he has said he would try to keep the team here, he also has ties to a group seeking to bring a hockey team to Kansas City. In recent days, it has appeared that Mr. Fingold's bid could be in trouble, in part because of financial problems.

Mr. Bertenthal said he didn't like having to sell his building and parking lot on Fifth Avenue. But he added he didn't think he had a choice because of the threat of eminent domain.

"I hate it because we've been here 33 years. We're within walking distance of town. We have a lot of customers Downtown," he said.

He called the real estate brokers hired by the SEA to negotiate sales "very overbearing," adding that they "kept threatening eminent domain" if he didn't agree to a sale. He said he is looking in the Strip District and the South Side for a new location. Relocation costs are included in his deal with the SEA.

"Finding a building with a parking lot that's reasonably priced is not easy," he said.

Still, he said he was happy to see the Uptown area finally get some attention from the city, charging that it has been ignored in the past.

"I've always been embarrassed by the Fifth and Forbes corridor from Oakland to town," he said.

There are two proposals on the table for building a new arena.

Isle of Capri Casinos Inc., in partnership with the Penguins, has pledged $290 million toward construction as part of its bid for the Pittsburgh slot machine casino.

Gov. Ed Rendell and local politicians also have come up with a back-up plan that relies on pledges from the other two 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.

First published on September 2, 2006 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
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