After weeks of acrimony, a settlement might be in the works in the dispute over the controversial Whole Foods Market redevelopment at the site of the former Penn Plaza apartments in East Liberty.
Talk of a possible deal emerged during a status conference before Allegheny County Common Pleas Court Senior Judge Joseph James on Tuesday.
No details were discussed. Attorneys for the city and Pennley Park South, an affiliate of developer LG Realty Advisors, had little to say about the proposal after the meeting, citing a court request that they refrain from talking to the news media.
The city is still considering the proposal, Solicitor Lourdes Sanchez-Ridge said during the status conference. “It’s still up in the air. We’re still trying,” she said afterward.
Judge James has scheduled another status conference for March 17.
The matter ended up before Judge James after the city last month sought an injunction to stop purported demolition activity at the remaining Penn Plaza apartment building and to ensure “a decent, sanitary building” for the tenants still there.
It charged that the developer had engaged in demolition activity before the March 31 deadline for all residents to be out of the building and that it had failed to provide proper heating, all in violation of a memorandum of understanding reached last year.
Jonathan Kamin, Pennley Park attorney, has disputed the city’s allegations.
He denied that any demolition was taking place. He said his client has gone to great lengths to make sure the building is safe and habitable and that it has responded to every single maintenance call, making repairs when needed. He estimated Pennley Park has spent hundreds of thousands of dollars maintaining the apartments.
The memorandum of understanding provided moving allowances, relocation assistance and later move-out dates after residents originally were told they had to move in 90 days. More than 200 residents have been relocated since last summer, but 17 still remain.
The agreement also earmarked 50 percent of the tax increment from the redevelopment to an affordable housing fund. That is expected to generate $10 million to $12 million.
Before the city filed its complaint, Pennley Park claimed it had “deemed approval” to move ahead with the redevelopment after the city planning commission failed to provide written notice of its rejection of the developer’s amended preliminary land development plan within the appropriate time frame. The city has disputed that. Pennley Park has filed its own complaint asking the court to affirm the “deemed approval.”
In response, the city and the Friendship Community Group, the Bloomfield-Garfield Corp., East Liberty Development Inc., Enright Park Neighborhood Association, and six individuals have filed appeals challenging that.
The 50,000-square-foot Whole Foods would replace a smaller store on Centre Avenue. The redevelopment also includes 200 apartments, 12,000 square feet of offices and 582 parking spaces in the first phase.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: March 7, 2017, 5:29 p.m.
