Pittsburgh Mayor Luke Ravenstahl is pushing to privatize the city's tow pound and move it to a lot near the south end of the Liberty Tunnel, city officials said Tuesday.
Closing the Strip District tow pound would free 1.5 acres of "prime real estate" along the Allegheny River and give control of the money-losing operation to McGann & Chester Towing, which the city pays to tow vehicles.
"This proposal will actually save the city a little bit of money," said Finance Director Scott Kunka.
That is, if City Council approves.
Councilman Patrick Dowd, who is running against Ravenstahl in the May 19 Democratic primary, said he worries that privatization would raise the $110 fee charged to people recovering their towed vehicles. He favors, instead, moving the tow pound away from the river.
"A private operator has to make money; they have to produce a profit," said Dowd, who is undecided about the proposal. "The city can run it as a break-even center."
Kunka said the pound collected $1.18 million last year, but it cost $1.58 million to run. The pound posted similar losses in 2007 and 2006.
Most of the expenses -- $1.04 million last year -- were paid to McGann & Chester. The city would not pay McGann & Chester under the new arrangement.
The 8-acre site near the Liberty Tunnel and Saw Mill Run houses vehicles seized by state and Port Authority police. Adding more vehicles would be easy, said Bob McGann, co-owner of the towing company.
The lot is open seven days a week, McCann noted. City government, however, is closed Sundays; therefore, people can't recover vehicles that are towed Saturday nights until Mondays.
McGann said fees are being negotiated with the city.
Dan O'Hara, president of the Fraternal Order of Police Fort Pitt Lodge No. 1, questioned why the city couldn't raise its fees to cover costs. He hopes to learn more about the proposal before council takes a preliminary vote April 8.
McGann & Chester's proposal beat one from Ferra Automotive Services of Sharpsburg. A city panel rejected the offer because Ferra wanted to move the tow pound out of the city and charge higher recovery fees, Kunka said.
McGann contributed $500 in April 2007 to Ravenstahl's campaign and $1,000 in May 2008, according to campaign finance records. Ravenstahl repeatedly has denied showing favoritism to political donors.
Moving the pound would allow the Urban Redevelopment Authority to hasten development of the city's riverfronts -- a Ravenstahl priority.
"Now, we're setting the stage for vibrant development that builds upon our natural assets and reconnects our neighborhoods to our riverfronts," Ravenstahl said in a statement.
