URA finds final $4M to overhaul Strip District's Produce Terminal
Pittsburgh's Urban Redevelopment Authority has the final investment it needs to improve Smallman Street and redevelop the Strip District's landmark Produce Terminal, a city official said Thursday.
Kevin Acklin, who chairs the URA and serves as Mayor Bill Peduto's chief of staff, said a $4 million state Redevelopment Assistance Capital Program grant combined with a proposed $7.2 million from tax increment financing and an undetermined contribution from the city would pay for new sewer and utility lines and street improvements.
“(The grant) closes the gap toward doing the necessary public infrastructure investments that are necessary to do this development,” Acklin said. “We have an opportunity here with the tax revenue that's going to be generated to use a combination of TIF and (grant funds) to deliver those investments.”
Chicago developer McCaffery Interests Inc. has a $70 million plan that would preserve the produce terminal's exterior “gritty” image while rehabilitating the interior for modern offices, stores and apartments.
But the project hinges on about $20 million in public subsidies and foundation grants.
Acklin said building renovations are expected to total about $60 million, with the remainder going to improve Smallman and replace old sewer and utility lines that feed the building and others in the Strip.
“All of this is done within the lens of enhancing and empowering and increasing the vitality of the overall Strip District, not drawing away from it,” he said.
The city for years has wrangled over a suitable development for the building that dates to the 1920s and served as the hub of Pittsburgh's produce industry.
Built by the Pennsylvania Railroad, the 1,500-foot-long building essentially served as a loading dock for trains and trucks. The URA bought it in 1983 for $1.1 million.
Pittsburgh's Buncher Co., which owns about 55 acres of adjoining land, had an option to purchase and redevelop the building, but those plans stalled because of opposition from historic preservationists. Buncher intended to demolish about one third of the building.
A key difference between the Buncher plan and the latest proposal is that McCaffery requires public subsidy. Acklin noted the city was prepared to offer Buncher a $50 million TIF.
Acklin said a URA consultant is hosting community meetings to gather public input for improvements around the building. One key is to make busy Smallman safe for vehicles, pedestrians and bicyclists, he said.
“We're taking information from the public on what they'd like to see on Smallman,” Acklin said. “From our perspective, we think we can have improvements in pedestrian and bike safety within that corridor ... while keeping its kind of gritty charm.”
Bob Bauder is a Tribune-Review staff writer. Reach him at 412-765-2312 or bbauder@tribweb.com.
