Developer: Deer Creek to begin before 2004
The developer of the Deer Creek Crossing project in Harmar Township said the long-delayed project will begin construction by year's end.
Meanwhile, another Allegheny Valley retail project -- the massive Pittsburgh Mills complex in nearby Frazer -- that has been on the drawing boards for nearly a quarter century finally seems on the verge of becoming reality.
Opponents of the controversial $150 million Deer Creek project, however, say they will continue the fight against it.
"We expect to break ground on the project we presented and received permits on," said Steven Coslik, president of Woodmont Co., the Ft. Worth, Texas-based developer.
A hearing had been scheduled next month on an appeal brought by Citizens for Pennsylvania's Future (PennFuture) seeking to overturn a state permit granting permission to disturb wetlands on the 274-acre site.
PennFuture attorney Jody Rosenberg said her group succeeded in having the hearing before the state Environmental Hearing Board moved from May to September, after she said a judge agreed with her that the developers were dragging their feet during the discovery process.
Meanwhile, the developer is seeking to have Commonwealth Court throw out a challenge by PennFuture to the tax break approved for the project by the county, township and Allegheny Valley school district in 1999, whereby $25 million in future property taxes would be foregone to pay for road improvements at the Route 910 interchange with Route 28.
Woodmont won the first round on the tax break in December, when a Common Pleas judge threw out the suit. But that judge has since been ordered by Commonwealth Court to better explain his rationale for tossing out the case, Rosenberg said.
Rosenberg said she is also examining whether the assessed value of the land included in the tax increment package was understated in order to inflate the pre- and post-development values to obtain the maximum possible tax break.
Opponents of the project argue it will severely impact Deer Creek, which cuts through the middle of the property and contains at least 21 species of fish, according to a Pennsylvania Fish and Boat Commission study, in addition to wiping out 6 acres of valuable wetlands.
Original plans called for the creek to be rerouted around the perimeter of the property, but the Department of Environmental protection rejected the plan, saying its environmental impacts outweighed its economic benefits.
Last August, the DEP approved permits to disturb the wetlands after concluding the developer provided adequate protection for the creek in its current bed through the establishment of a buffer zone on each bank.
Rosenberg said she believes Coslik is bluffing.
"Saying they will break ground in 2003 -- is merely his effort to keep tenants from jumping ship to and heading to Frazer or elsewhere," she said, indicating that banks are reluctant to finance developments clouded by litigation.
"One thing I've learned over the course of this fight is that a mammoth development like this is as fragile as a house of cards. The developer must convince everyone -- the public officials, the DEP, PennDOT, their competitors and especially their prospective tenants -- that everything is going great."
Deer Creek Crossing is not the only major retail project that could reshape the Allegheny Valley landscape beginning this year.
Construction of the $258 million Pittsburgh Mills development in neighboring Frazer Township, a proposed 1 million square foot complex of outlets, specialty retail stores and entertainment venues, could also begin soon. Mills officials said last week preparations are under way to begin grading the 340-acre site within a few weeks.
The project received a $35 million tax break for road construction in October. The two projects are expected to complement each other, with the Deer Creek project providing more of the so-called "big box" retailers like Wal-Mart, Target, Giant Eagle, and Home Depot. The Mills project is slated for occupancy late next year or early 2005.
