Developer appeals Pittsburgh planning board conditions on Penn Plaza project

The owner of a much-debated $150 million development in Pittsburgh's East Liberty neighborhood is headed back to court alleging city planning commissioners placed illegal conditions on the project.

Pennley Park South, owner of property along Penn Avenue that once contained the Penn Plaza apartment complex, contends the commission overstepped its authority in restricting building heights to 108 feet and requiring the company to include a public “community room” large enough to accommodate 100 people.

The planning board approved Pennley Park's proposal on May 15 subject to those conditions.

“The (plan) met all of the zoning code's conditions for approval and this compliance was confirmed by the city,” the appeal says. “Therefore, the planning commission did not have the right to invent standards, which are not in the zoning code, and to impose the unreasonable conditions on the approval of the (plan).”

Planning Director Ray Gastil declined comment.

Lawrence N. Gumberg, president of Downtown-based LG Realty Advisors, the parent company of Pennley Park South, said the company plans to move forward with development.

“Our appeal is focused solely on two additional conditions added to that approval at the 11th hour, restrictions that we believe violate the law,” Gumberg said in a statement. “Our comprehensive plan for the site will result in new commercial and retail development, create much-needed employment opportunities, generate additional tax revenue and contribute to a more vibrant neighborhood.”

Downtown attorney Jonathan Kamin, who represents Pennley Park and filed the appeal, could not be reached for comment.

According to the appeal, city zoning code allows building heights of 238 feet or less in East Liberty. Pennley Park is planning two 150-foot structures.

The appeal also contends the requirement for a community room is tantamount to a “taking of private property.”

The development includes space for shops, offices and parking and reconfigures Enright Parklet, which abuts the property.

Pennley Park has been locked in a three-year battle over the project with city officials and community activists, who contend it compounds gentrification in East Liberty.

This is the second time the company has gone to court over a planning commission decision about the property.

The commission in 2016 rejected the company's redevelopment plans. Pennley Park appealed the decision and reached a settlement with the city and community groups that resulted in a revised plan.

Penn Plaza, built in 1968, was part of an urban renewal effort that provided housing to low-income and market rate tenants and resulted in the mass demolition of homes and businesses. About 228 people lived in Penn Plaza in 2015, when LG Realty notified residents it intended to close the complex for redevelopment.

Bob Bauder is a Tribune-Review staff writer. Reach him at 412-765-2312, bbauder@tribweb.com or on Twitter @bobbauder.