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Hill District promised a role in development plans
Tuesday, January 30, 2007

Hill District leaders continued to seek assurances yesterday from state, county and local officials to include them in any discussions regarding neighborhood redevelopment surrounding the Mellon Arena.

This comes after complaints were lodged on Sunday by a group of Hill residents who said that ongoing negotiations with the Pittsburgh Penguins were exclusionary and disrespectful.

In recent weeks, Mayor Luke Ravenstahl, Allegheny County Chief Executive Dan Onorato and Gov. Ed Rendell have participated in high-level meetings with Pittsburgh Penguins executives hoping to seek a solution that will keep the hockey team in Pittsburgh.

Yesterday morning, Rep. Jake Wheatley, D-Hill District, said that the mayor and the governor had responded to residents' concerns regarding development rights on the lower Hill and community involvement in the negotiations.

"I think they are very sensitive to those issues," said Mr. Wheatley.

"This is not adversarial. We're just interested in the timing to make sure all voices are heard."

Mr. Wheatley said after a series of calls and e-mails yesterday, he is scheduled to speak tomorrow with Mr. Ravenstahl about how to "protect" the concerns of Hill residents. After speaking with staff in the governor's office, he said he was hopeful that Gov. Rendell or a representative would participate in the call as well.

On Sunday, a group calling itself the Greater Hill Coalition of Concerned Citizens said residents have grown more frustrated that discussions on possible redevelopment were proceeding without any local representation at the table. The mayor should have "respected" the community by inviting it to the table, said the Rev. Johnnie Monroe, of Grace Memorial Presbyterian Church.

The coalition is made up of clergy, Hill residents, nonprofit leaders and Mr. Wheatley.

Marimba Milliones, one of the coalition's organizers, responded in an e-mail, saying "the development rights for the lower Hill District are a public resource and should not be handed over without conferring with Hill District residents, stakeholders and leadership. How many times will we have to fight this same battle for inclusion and respect? It will be ideal if we could work cooperatively on the front end from now on, because ignoring us is not an option."

Since the first of the year, state and local officials have met at least twice with the Penguins, and Hill District officials have not participated in any of the discussions.

Mr. Onorato and the others are banking on Plan B, the arena funding formula crafted by Gov. Rendell as a backup to the pledge by Isle of Capri to provide $290 million for an arena if it got the Pittsburgh casino license.

Until now, neither Lemieux nor other Penguins officials could meet with local leaders to discuss arena funding because of the team's agreement with Isle of Capri. But last month when Isle of Capri lost, that left Plan B as the only thing standing between the Penguins and a potential move. The team's lease at Mellon Arena expires at the end of June,

Under the plan, the arena would be funded with contributions of $7.5 million a year for 30 years from Pittsburgh casino winner Don Barden; $7 million a year for 30 years from a slots-financed state economic development fund; and $4 million a year from the Penguins, including $1.1 million annually from naming rights, plus $8.5 million upfront.

If the community wants a voice in what goes on with the Penguins and the lower Hill property, they have time to hash it out.

The development rights apply to the Mellon Arena property and the land is owned by the Sports & Exhibition Authority. The "rights" give a developer the option of developing it. The negotiations are not to determine what goes on the property, simply who gets the option to develop it.

The SEA passed a resolution in 2005 specifically giving first option on the property to whatever casino operator or developer agreed to fund an arena. Because the Penguins and Don Barden are sharing in that funding, the proposal is that they share the rights as well. Development won't happen until at least 2009, when the new arena is scheduled to open. Mellon Arena can't be demolished until then.

The concerns in the Hill come amid renewed optimism that a deal to keep the Penguins in town could be close to completion.

Since negotiations broke off Jan. 18 without an agreement, Mr. Rendell has been talking to Penguins co-owner Ron Burkle to resolve issues blocking a deal.

Although no formal talks are scheduled, the governor is "hopeful that [negotiators] can continue making progress and reach some kind of accommodation as soon as possible," spokesman Chuck Ardo said yesterday.

State Sen. Wayne Fontana, a board member of the Sports & Exhibition Authority, which is involved in the negotiations, said both sides have continued to talk over the phone.

"I think they've got to be real close. All of the offers have been made, the bulk of the offers. You're talking about a tweak here and there. That's what could be left," he said.

Mr. Onorato said yesterday he fully agrees that Hill residents should have a place at the table.

They "will be involved with decisions," he said through a spokesman. Talks thus far have focused on building a new arena and keeping the Penguins in town, he said, "but the community will have the opportunity to weigh in."

First published on January 30, 2007 at 12:00 am
Staff writer Mark Belko contributed. Ervin Dyer can be reached at edyer@post-gazette.com or 412-263-1410.