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Groups file lawsuit to block land deal on North Shore
Hotel planned near ballpark, Heinz Field
Saturday, September 06, 2008

Two groups took their battle for a community benefits agreement into the courts yesterday, suing to stop a property sale for a North Shore hotel development between Heinz Field and PNC Park.

Pittsburgh United and affiliate Northside United are seeking to overturn a decision by the city's Stadium Authority board to sell one North Shore parcel and portions of three others to Continental Real Estate Cos. for the proposed Hyatt Place Hotel.

In an appeal filed in Allegheny County Common Pleas Court, the groups claimed that the sales price, at $1.32 million, or $8 a square foot, was "substantially below market value" for the North Shore.

At a news conference earlier in the day, representatives said a separate North Shore parcel that was sold privately for another hotel development commanded more than $75 a square foot.

The groups also took issue with the authority's decision to sell a prime four-acre riverfront parcel next to Heinz Field to Continental and the Steelers for $1.37 million for a $10 million entertainment venue.

Michael Glass, director of Northside Common Ministries and co-chair of Northside United, described the sales as a "travesty against the public trust."

"We pay taxes for this land and the land is being given away, essentially," he said.

The groups also questioned whether the meeting in which the sale was approved was in violation of the state open meetings law, commonly known as the Sunshine Act. They said they were not given notice of the meeting from the Stadium Authority and that some of the board members did not get an agenda until after arriving.

They also argued that the option agreement Continental had to develop the land between PNC Park and Heinz Field had expired. In approving the hotel parcel sale, the Stadium Authority board authorized Continental to continue as the exclusive developer.

On Thursday, Pittsburgh United, in announcing the litigation, said two lawsuits involving both the hotel and entertainment parcels would be filed. But in the end, the groups decided to file only one appeal and to focus it on the hotel deal.

"We looked at both of the land deals and felt that both issues, the Sunshine Act and fiduciary responsibilities of the Stadium Authority to the public, were the same issues for both properties," spokeswoman Jennifer England said.

Mary Conturo, Stadium Authority executive director, said she had yet to see the lawsuit but added, "We are confident that the board acted legally and appropriately in the approval of the projects."

However, she said she was concerned that the litigation could jeopardize the hotel development, which is under a tight time schedule to get started and completed.

Continental Chairman Frank Kass could not be reached for comment.

As part of the hotel development, Pittsburgh United and Northside United are seeking a community benefits agreement from Continental that would guarantee good wages, preference in hiring and help in improving housing stock, among other items.

Asked if the groups would drop the lawsuit if they got a benefits agreement, Mr. Glass replied, "More than likely."

Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
First published on September 6, 2008 at 12:07 am
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