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City Council moves closer to vote on prevailing wage
Friday, December 11, 2009

A day-long debate on proposed new development rules brought City Council closer to a vote that would ensure average wages for some workers in future city-aided developments.

From the 9:30 a.m. rally at which labor, community, environmental and religious groups touted the legislation, to the 4:55 p.m. end of a public hearing, proponents outnumbered foes of the bill that counts seven of the nine council members as sponsors.

"We have a win," Councilman Bruce Kraus said, to cheers. "We're going to pass this, this session."

An initial vote on the legislation could come Wednesday.

The legislation would apply to future development projects of more than 100,000 square feet, or grocery stores of more than 30,000 square feet, that get $100,000 or more of city grants, favorable loans, financing, infrastructure help or discounted land. Tenants of such developments would have to pay hotel, cafeteria, grocery and building service workers "prevailing wages," based on the averages paid to their peers in the city.

The issue has pitted unions against developers.

Gabe Morgan, Western Pennsylvania director of Service Employees International Union Local 32BJ, said the legislation just mandates, for subsidized projects, "a market rate in this city that has lifted thousands of workers out of the poverty level."

Mabon Lichtenfels, vice president of development and construction for the Soffer Organization, said some businesses "will not come in and locate within the city limits" if they're subject to wage rules.

His firm built the South Side Works with $57 million in city Urban Redevelopment Authority investments and $168 million in private funds, and is trying to lure a grocery store, he said. The prevailing wage rule would make it "virtually impossible" to finalize that deal, he said.

Jeff Fleming, from an Oregon-based consulting firm called Amazing Hospitality Group, said he didn't think the legislation would hurt efforts to lure hotels, noting that those that pay decent wages have lower employee turnover, which reduces costs.

Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.
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First published on December 11, 2009 at 12:00 am