Shadyside residents could be getting a much sought after skating rink in the landmark Alfred E. Hunt Armory.
The Pittsburgh Urban Redevelopment Authority board on Thursday chose a $12.6 million proposal to turn the 102-year-old building into an ice arena over two more lucrative offers, saying community support and social benefits outweighed financial incentives.
By a 4-1 vote, the URA agreed to a 90-day negotiating period with Harmar's Kratsa Properties and Toronto-based Cadan Real Estate Development Co. If the developers meet 17 stipulations, the URA will sell the building for a minimum price of $1.86 million with no public subsidies other than historic tax credits. Kratsa and Cadan initially offered $1 million.
The decision drew applause from a standing-room-only crowd of mostly Shadyside residents who support the rink proposal.
“This is a wonderful community amenity,” said Virginia Flaherty of Shadyside, who rallied community support. “... It is our dream. Thank you for listening to us, and we pray that the process will go through.”
Former state Sen. Jim Ferlo voted “no,” calling the ice rink idea “the worst” of three proposals. He said the other two ideas were more viable and argued that the URA should seek other proposals specifically for a recreational facility.
Shadyside-based Walnut Capital offered $2.5 million for the armory and proposed building 106 high-end apartments with a public indoor courtyard and garden at a total cost of $25.5 million.
Downtown's McKnight Realty Partners and the Mosites Co. offered $1.86 million and planned a $31.7 million development that included offices and recreational space with climbing walls.
“I'm disappointed,” said Gregg Perelman, a Walnut Capital partner. “I think we offered the highest and the most in terms of what is the best use. We also feel we were going to bring the most tax revenue to the city.”
Kratsa and Cadan have proposed one regulation hockey rink and two smaller skating rinks on a newly added second floor with spectator seating, party rooms and a cafe. About 140 spaces would be on what's now the ground level.
“Obviously the housing proposal would have generated more tax revenue for the city, but there's a social return of capital here in terms of having a public space that people can utilize,” said URA Chairman Kevin Acklin, who is Mayor Bill Peduto's chief of staff. “If you just looked at every proposal in terms of tax revenue and what the sale price is, you wouldn't need a board of directors. You would just need a calculator.”
Residents lined up to support what would become the city's only indoor skating facility, saying Shadyside has a glut of apartment buildings. They said the facility would benefit children and adults, and proposed skating programs for low-income and minority youths.
“I think it promises more activity, creative thinking, and it's more positive for the future involvement for the community, and it's flexible,” said Dolores Vojta of Shadyside.
Gary Maister of Cadan said his company has experience building ice arenas in the Toronto area and rehabbing historic buildings. He said he has built several multi-unit residential developments and an office building in Pittsburgh over the past six years.
Maister said the Shadyside ice arena will be profitable.
The URA in January voted to buy the 102-year-old armory for $1 from the state Department of General Services. The URA must give the state 80 percent of the sale proceeds. The Pennsylvania National Guard used the building until it closed in 2013.
Bob Bauder is a staff writer for Trib Total Media. He can be reached at 412-765-2312 or bbauder@tribweb.com.
