City officials yesterday disputed a councilman's claim that the Steelers were in line to get a prime piece of North Shore real estate near Heinz Field at a bargain-basement price.
The dispute stems from a court settlement that divides the costs of traffic improvements needed for the new North Shore casino.
The settlement caps the Steelers' share at $1.5 million but gives the team a credit for the purchase price of the land, called Lot 6.
"The purchase price [approximately one million dollars ($1,000,000)] paid by the Steelers for Lot 6 of the North Shore subdivision plan shall be applied against the above-described projects," says a court order giving the terms of the settlement.
City and Sports & Exhibition Authority officials claimed yesterday the language in the November order was not meant to establish a purchase price for Lot 6, the site for a proposed $10 million entertainment complex.
City Councilman William Peduto, a former member of the city Stadium Authority board, which oversees the property between Heinz Field and PNC Park, disagreed.
Mr. Peduto, who recently was removed from the board by Mayor Luke Ravenstahl, said the language clearly states that the Steelers will get the land for $1 million.
He maintained the property should not be "a bargaining chip. It's publicly owned land. There's a process for it that was ignored." He said at the minimum, the matter should have been brought before the Stadium Authority board for action.
He estimated the parcel, near the Allegheny River adjacent to Heinz Field, could be worth eight times as much, based on other sales in the area.
City Solicitor George Specter and Mary Conturo, executive director of the sports authority and Stadium Authority, disputed the contention that a $1 million sales price had been negotiated.
In a statement, Mr. Specter said the consent agreement "did not set any price for any proposed purchase."
"The settlement had nothing to do with the Steelers' earlier negotiations [for rights to the property], and does not bind the Stadium Authority with respect to the ultimate sale or purchase price of Lot 6."
Ms. Conturo said the price for the parcel has yet to be negotiated. She said the $1 million figure "may have been related to prices set in the remainder of the option area that are off the riverfront."
Based on the going price for other riverfront parcels between Heinz Field and PNC Park, $15 a square foot, Lot 6, at 166,000 square feet, would be valued at nearly $2.5 million, she said.
The Steelers, in a statement issued late yesterday, did little to clarify the issue.
Referring to the casino agreement, Mark Hart, the team's business director, stated: "The terms of that settlement include an agreement that the purchase price of Lot 6 shall be applied to certain projects intended to improve the public roadway infrastructure" on the North Shore.
The Steelers' statement did not give a purchase price, and team officials would not offer any clarification.
Mr. Ravenstahl, in a voice mail message, said he talked to the Steelers and they agreed with him that the settlement agreement doesn't set the value of the land.
The Steelers have plans for a year-round entertainment complex at the site and may seek public subsidies for the venture. The complex would feature covered seating for about 2,000 people and would host concerts, special performances, and festivals.
