Strip District redevelopment tax break headed to County Council
A long-awaited plan to award a Chicago developer a tax break to redevelop vacant buildings in Pittsburgh’s Strip District is moving forward.
Legislation to participate in the special taxing district will be introduced to Allegheny County Council on Tuesday with a vote expected next month, according to a council document.
Elected officials from Pittsburgh Public Schools and Pittsburgh City Council will also vote on the Tax Increment Financing plan in the coming months. Elected officials began considering this most recent proposal in 2016.
Chicago-based McCaffery Interests’ $121 million project will redevelop the Produce Terminal with office and retail space, the document said. The project will also include redeveloping a warehouse at 1600 Smallman Street to add more office and retail space, as well as a parking structure. The project will also include storm sewers and street improvements, which the roughly $3.5 million in public funds would go toward.
The tax break program gives developers a relief on a portion of the property taxes on their projects over a period of time to help pay for infrastructure improvements.
The project would bring the assessed value of the properties from $3.5 million to $31 million, which would increase the annual tax revenue to the three bodies from $77,621 to $867,499, the document said.
The TIF would start Jan. 1, 2019 and would last 20 years, the document said.
The project would also create 639 temporary construction full-time jobs and 645 permanent full-time jobs, the document said.
The project also secured $13 million from Pittsburgh Water and Sewer Authority and $1 million from the state, the document said.
Theresa Clift is a Tribune-Review staff writer. You can contact Theresa at 412-380-5669, [email protected] or via Twitter @tclift.