Public money fails to make North Side's Garden Theater block bloom

More than $10.5 million in public money has been poured into efforts to redevelop two blocks around the North Side's former Garden Theater since the mid-1990s with dramatically mixed results, records show.

In one block, a large medical office building and a neighboring parking garage with street-level retail space have attracted nearly 1,000 jobs.

The other block, anchored by the Garden Theater, has remained an eyesore between the Mexican War Streets and Allegheny General Hospital. Officials insist that's about to change — a refrain neighborhood residents have grown accustomed to hearing.

“I've quit listening when they say something new is coming. I'll believe it when I see it,” said Brad Duceour, 35, of the War Streets, who pushed his 8-month-old son past the run-down former adult movie house in a stroller as he walked Friday with his wife, Jennifer, along North Avenue.

Robert Rubinstein, the city Urban Redevelopment Authority's acting director, understands the frustration. But he's convinced the blighted block is turning a corner.

“I think despite the number of fits and starts over the years, the Garden Theater block is poised for a better outcome than perhaps we would have had when this all began,” Rubinstein said.

According to the URA's accounting, the $10.5 million in public money that has been used in what's known as the Federal North Development Area came from various sources, including $5.2 million from tax-increment financing, $2.9 million from federal Community Development Block Grants and $2.1 million from state Redevelopment Capital Assistance Program grants.

URA said $5.25 million went toward site work; $4 million went toward property acquisition and relocation, including legal fees from a costly eminent domain battle over the Garden that lasted about a decade as it went to the state Supreme Court; and $1.25 million in development subsidies.

URA Chairman Kevin Acklin said the public investment helped leverage $50 million to $60 million in private investment, and 850 people work in the development area — most of them at the Federal North Medical Office Building on Federal Street, which is home to a range of Allegheny Health Network medical services.

The numbers don't include money that went toward other development in the area, including the Federal Hill housing development, the Carnegie Library of Pittsburgh's new Allegheny branch and the opening of eateries such as El Burro, a Mexican restaurant, Rasta House, a Caribbean restaurant, Crazy Mocha coffee shop and the Deli on North Avenue.

“All of those things happened, I believe, because of the Federal North redevelopment project” that included the medical office building and parking garage, Rubinstein said.

Allegheny City Development Group LLC, headed by Philadelphia developer Wayne Zukin, hopes to complete its renovation of the Garden by late spring, Zukin said.

His group was selected in 2011 to redevelop the entire Garden block, including the neighboring Masonic Hall and several run-down properties and empty lots on Federal and Reddour streets and West North Avenue, but delays prompted the URA to look to other developers for properties other than the Garden.

The nonprofit City of Asylum bought the Masonic Hall for $50,000 in January, with plans for an $8.2 million renovation that could receive more than $4.2 million in public money, based on URA's projections in February. The ground floor would have offices, a bookstore, a restaurant and performance space, while eight apartments would be on the upper floors.

URA is in talks with Downtown's Trek Development about redeveloping the properties on Federal, Reddour and West North.

Zukin said the Garden renovations are expected to cost $2.3 million. The project has received $1.1 million in state and local grant money, and another $400,000 is expected, Zukin said.

The URA said Thursday that it will spend up to $100,000 to repair and reinstall the iconic Garden sign that used to tower above the theater.

A lot of the work done is not visible from North Avenue, including demolition of the old theater's rear area and construction of a rear wall and roof.

A delay in building a stormwater system for the Garden block is preventing contractors from proceeding with some interior work. It also drove away a potential tenant in November.

Piccolo Forno restaurant owner Domenic Branduzzi planned to open an Italian restaurant called ARDE in the Garden, but he said that “after two years of waiting for important infrastructure to be built, (it) is no longer feasible for me personally.”

Allegheny City has not lined up a new tenant.

Partner Craig Totino said the group received interest from a number of other restaurants. He thinks a 2,000-square-foot space on the second floor with large windows providing views of Allegheny Commons could be well-suited for a yoga studio. Before Piccolo Forno pulled out, one was lined up for that space, he said.

“I know some people are frustrated because it has taken so long, and this block has been particularly challenging, but I think we're finally at a point where things are happening,” said Tom Hardy, executive director of the Allegheny City Central Association.

Tom Fontaine is a staff writer for Trib Total Media.