City inks deal on Oak Hill development
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Construction is expected to start this fall on 450 new apartments, townhouses and homes in the Oak Hill section of the Hill District, following the signing yesterday of a development agreement for the $36.5 million project, which is almost entirely publicly funded.
"This is a glorious day for Oak Hill," said the community's tenant council president, Eloise McDonald, at a signing ceremony in Pittsburgh Mayor Luke Ravenstahl's office. "Today starts the completion of Oak Hill."
The second phase will bring Oak Hill to 1,089 homes, including a mix of low-income and market-rate rental units and some owner-occupied houses and townhouses. The community replaced Allequippa Terrace, a 1,700-unit public housing community torn down more than a decade ago.
The second phase has faced five years of hurdles.
First, developer Beacon/Corcoran Jennison got in a tug of war with the University of Pittsburgh over the Robinson Court part of the Allequippa Terrace site. Mr. Ravenstahl and Councilwoman Tonya Payne resolved that two years ago by brokering an agreement under which Pitt pays $4 million for Robinson Court, where it is developing athletic facilities.
The developer will build on the 42-acre Waring Court part of the site.
The collapse of the global credit market nixed the developer's plans to borrow money to fill a financing gap, and reduced the value of tax credits on which the deal depended.
But over the last few days, the developer and public officials completed the financing package, which includes $10.9 million in tax credits, $9.1 million from the Housing Authority, $8.4 million from the city for infrastructure, the $4 million that Pitt paid for Robinson Court, another $200,000 from Pitt, and $3.9 million in as-yet-unspecified public funds.
The Bank of New York Mellon is buying the tax credits. The developer plans to apply for building permits in June.
The second phase is to include 292 apartments, 118 townhouses and 40 for-sale houses. Also part of the development are 20,000 square feet of offices and space for a convenience store and sandwich shop, plus the renovation of the Wadsworth Hall community building.
First Published April 25, 2009 12:00 am
