Pittsburgh Mayor Luke Ravenstahl heralded the coming of another Downtown skyscraper, but two small business owners who will be displaced said progress is coming at a price.
John Stetor, 66, who has operated the Smithfield Outlet at its current location on Forbes Avenue for about 10 years, said he is looking at several Downtown sites for his eclectic variety store. Tony Baverso, 69, franchise owner of George Aiken's Delicious Prepared Foods on Forbes, said he's seriously considering retirement.
"It is progress, and I suppose it should be done," Stetor said. But "I think there's a need in town for some of these mom-and-pop discount type stores."
Ravenstahl dodged raindrops on Thursday to tour the proposed site of the Gardens at Market Square, a $76.7 million development that will include a seven-story, 175-bed Hilton Garden Inn and a 17-story office tower with about 100,000 square feet of space.
Its ground floor will offer about 25,000 square feet of retail space and a 332-vehicle parking garage. Construction is scheduled to begin this summer. The office, garage and retail areas are scheduled to open in 2013, followed by the hotel in 2014.
"It just continues our efforts to re-energize Downtown," Ravenstahl said. "Now we have the opportunity to go building by building, facade by facade. We want to try to not only bring buildings to life from a facade perspective, but we want to bring these buildings to life from an occupancy perspective."
The Market Square area has changed dramatically in the past five years with renovation of the square and historic buildings around it.
Starting next year, part of Forbes and Fifth avenues and Wood Street will become a construction zone with construction starting on PNC Financial Group's 33-story office tower headquarters along an entire block of Wood from Forbes to Fifth, and the Gardens owned by Washington, Pa.-based Millcraft Industries on Forbes near Market Square.
Ravenstahl said the city intends to begin work with the Pittsburgh History & Landmarks Foundation on facade renovations at eight buildings in the same area with money from a $4 million state grant. Targeted buildings include Kashi Jewelers at Fifth and Wood and the Italian Sons and Daughters' headquarters at Forbes and Wood. The city is working with Point Park University to convert upper floors of three historic buildings on Wood Street into student housing with retail on the ground floors.
"I see a mix of better and better quality specialty retailing of a wide variety and the use of these historic buildings to create interesting environments," said Pittsburgh History & Landmarks Foundation President Arthur Ziegler.
Millcraft Industries' Chief Operating Officer Lucas B. Piatt said the Gardens, with a terra cotta exterior, will complement its older surroundings.
The city's Urban Redevelopment Authority, which owns five buildings that will be demolished for the Gardens, approved their sale yesterday to Millcraft for $2.4 million, about $2.9 million less than the $5.3 million purchase price. Ravenstahl said the sale was justified, considering the city will reap about $4 million annually in new tax revenue.
Millcraft intends to seek public subsidies, including possible tax increment financing, which uses future tax revenues to pay for the installation of sewer and utility lines, Piatt said. The URA also is considering seeking a $500,000 state grant for the Gardens.
"I think 10 years ago, the city made an investment in buying property," Piatt said. "These investments are paying off now. This property now sits off the tax rolls. We're going to put this back on the tax rolls.
"They'll have their money back in a couple of years."
The URA has been landlord to Stetor and Baverso for about five years. Both knew this day could be coming.
"I hope we can stay in town," Stetor said.
