A new North Shore hotel got the Pittsburgh planning commission's OK yesterday, despite an organization's call for a delay to allow community negotiations to continue, and a call for an investigation into a development agreement.
Commission members voted 6-1 to allow Columbus, Ohio-based Continental Real Estate Cos. to build a 178-room, three-star Hyatt Place hotel across North Shore Drive from the Equitable Resources Building, next to PNC Park. The $25 million price tag apparently includes the reported $1.3 million purchase price of the land, which is owned by the Stadium Authority and governed by a development agreement among that agency, Continental, the Steelers and the Pirates.
If Continental buys the land from the Stadium Authority and gets building permits, it will start building in July and hopes to open in September 2009, said Mike Hudee, its vice president of development.
Pittsburgh United -- a consortium of neighborhood, labor and environmental organizations -- called for a delay and a City Council investigation into the development agreement. Barney Oursler of Pittsburgh United said the agreement has expired, the purchase price is questionable and the Stadium Authority has asked Continental to talk with neighborhood groups about a community benefits agreement related to the site. Such talks have started, but have only just "gotten past the fear level" that the developer initially showed toward negotiations, Mr. Oursler said.
Zoning Administrator Susan Tymoczko told the commission that the Stadium Authority had given the hotel its blessing, and Planning Commission Chair Wrenna Watson reminded members that the panel isn't supposed to consider the absence of a community benefits agreement. That logic won the day.
Councilman William Peduto, who pushed the Stadium Authority to hold off on the sale of the land to Continental before being ousted from that panel last month, agreed that council should review the status of the agreement. He said he believes Continental lost the right to develop the hotel parcel around one year ago.
Hyatt Place isn't the only new hotel project scheduled for the North Shore. Kratsa Properties broke ground last week on a 180-suite Marriott Residence Inn at the corner of Mazeroski Way and General Robinson Street.
The $30 million extended stay hotel is scheduled for completion in fall 2009. Suites will include full kitchens and 37-inch plasma TVs. There also will be an indoor swimming pool, an exercise facility and a billiards and theater room with a large plasma TV for guests. The hotel is privately financed.