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How dinner meeting led to $750,000 billboard deal in city
Thursday, April 17, 2008

Embattled city of Pittsburgh development czar Pat Ford met over dinner with executives from two advertising companies in late 2006, giving them assurances that two questionable billboard applications would be deemed valid, according to sworn testimony by one of the participants in the meeting.

Like a controversial and contested permit to put a sign on the Grant Street Transportation Center, Downtown, the permit applications were granted without public hearings or votes despite the fact that the signs were erected in two areas -- the Cultural District and the North Shore -- where they are not allowed under the city zoning code.

The dinner meeting on Mount Washington paved the way for a $750,000 billboard deal between the two companies.

As a result, a Rolling Rock sign hangs near the David L. Lawrence Convention Center. And two Smirnoff vodka signs went up on the North Shore. The signs were later taken down, for reasons their owner would not explain yesterday.

Mayor Luke Ravenstahl briefly attended the dinner meeting at which the permits were discussed, according to one of the participants.

Some six weeks later, two Liberty Pacific Media executives who were at the meeting, vice presidents Jeff Engelstad and John Fitzmaurice, gave the mayor's campaign $12,500 each, tying them for third place among the mayor's top donors.

Yesterday, Mr. Ford, through his attorney, denied providing any permit assurances to billboard executives, and any involvement in mayoral fund raising.

The events came to light as he remains the subject of a probe into administration dealings with sign firm Lamar Advertising and his friendship with, and exchange of gifts with, that company's real estate manager, Jim Vlasach.

Mr. Ford is on paid leave from his job as executive director of the city Urban Redevelopment Authority while the State Ethics Commission reviews his actions.

Mr. Ravenstahl said he recalled the meeting, but not the specifics. He said, however, that he knew nothing of the Cultural District and North Shore sign permits prior to yesterday.

"It's something we'll look at," he said. "It is of concern. We just want to make sure everything is done right. But I had no role in discussing any of those permits and/or signs with any of the involved parties."

Mr. Ravenstahl said he did not solicit the campaign contributions and said he did not believe that Mr. Ford was involved in political fund raising.

The history of the signs began in mid-2006, when Liberty Pacific Media, an Oregon firm, started buying the rights to local sign sites.

On Nov. 3, 2006, Liberty Pacific sought permits to put a sign at 960 Penn Ave. in the Cultural District and two signs at 220 E. General Robinson St. on the North Shore. Though both are in zones in which no new signs are allowed, the applications were granted by zoning staff.

Liberty Pacific promptly entered talks with Capitol Outdoor Inc., a Washington, D.C.-based firm, which later bought the rights to the sign sites for $750,000.

Before that deal was inked, during the second week of November 2006, executives from Liberty and Capitol had a dinner-and-drinks meeting with Mr. Ford, who at the time was city planning director.

Lamar Advertising challenged the sign permits that were granted to Liberty Pacific and Capitol, and the matter went before the Zoning Board of Adjustment.

Lamar's attorneys argued that the signs violated zoning rules governing the size, spacing and illumination of signs. Capitol argued that a 1983 zoning board ruling, bolstered by the dinner-and-drinks meeting, permitted the signs.

At a zoning board hearing on Dec. 13, 2007, Capitol executive John Polis said that he wanted to "get a feel for [whether] the permits [Liberty] had were valid or not" and left the dinner meeting with "no reason to think that the permits that they had weren't valid."

Mr. Polis testified that the specific addresses on which his firm wanted to place signs were discussed at the meeting, and that Mr. Ford and the mayor left him with the impression that there would be no problem.

Mr. Ford's attorney, Lawrence Fisher, disputes that contention.

"Pat Ford has never provided executive assurances regarding any billboard permits, nor does he have any knowledge of any such assurances by the mayor," said Mr. Fisher, in an e-mail response to questions.

Subsequently, Mr. Ford's involvement with the sign applications "would have been fairly similar to that with the Grant Street sign," Mr. Fisher wrote.

In that case, Mr. Ford approved of Lamar getting a no-bid lease with the Pittsburgh Parking Authority for space on its Grant Street Transportation Center, and advised the zoning administrator to approve a permit for a 1,200-square-foot digital sign in return for the firm taking down six vinyl signs.

Mr. Ford has come under fire following revelations last week that he and his wife got gifts including a surround sound system, neckties and cigars from his friend, Mr. Vlasach.

His wife, former mayoral spokeswoman Alecia Sirk, has resigned.

Construction has been halted and the Grant Street sign permit has been appealed by five Pittsburgh City Council members to the Zoning Board of Adjustment.

Lamar withdrew its appeal of the other disputed signs last month following a private settlement with Capitol that is the subject of a confidentiality agreement.

On Dec. 29, 2006, Liberty Pacific vice presidents Mr. Engelstad and Mr. Fitzmaurice each gave Mr. Ravenstahl's campaign fund $12,500.

Last month, Liberty Pacific and an affiliate applied for permits for 23 more signs citywide, including three Downtown. The permits are on hold pending legal review.

Mr. Engelstad and Mr. Fitzmaurice could not be reached yesterday. Mr. Polis said he did not hear any discussion of campaign contributions at the dinner-and-drinks meeting.

"It has always been [Pat Ford's] practice to direct campaign contribution inquiries to the mayor's campaign office," wrote Mr. Fisher. "Neither in the case of Liberty Pacific Media, nor with respect to any other billboard firms, were there any such inquiries whatsoever."

Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.
First published on April 17, 2008 at 12:00 am
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