Pittsburgh URA approves deal on Produce Terminal redevelopment

The Pittsburgh Urban Redevelopment Authority board of directors Thursday approved a lease agreement with a Chicago company for redevelopment of the Strip District's landmark Produce Terminal contingent upon a 25-day public comment period.

URA board members also stipulated that Chicago-based McCaffery Interests enter into negotiations with the Society for Contemporary Craft, a nonprofit that's been a building tenant for 32 years, on a long-term lease. The organization's lease expires at year's end.

The board will vote on final approval of the agreement in April after reviewing input from the public.

“The type of development here is one that complements Penn Avenue and doesn't take away from the character of the Strip District,” said Kevin Acklin, the URA board chairman, noting that the city has been negotiating with McCaffery for four years.

The agreement came one day after staff from the URA and Mayor Bill Peduto's office met with Dan McCaffery, the company's CEO, who plans a $100 million redevelopment of the terminal and a former warehouse across the street at 1600 Smallman Street.

Plans for 1600 Smallman include ground floor retail and offices on upper floors.

McCaffery is planning a “food-centric” concept with a large public market on the west end of the terminal.

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