Pittsburgh's Urban Redevelopment Authority yesterday approved entering negotiations with a developer that could result in the sale of 11 North Side properties — including a former X-rated movie house — at a deep discount.
The $250,000 sale price — far below the $1.1 million that the URA paid for the Garden Theatre in February 2007 — reflects the financial risk involved, the authority said this week.
Allegheny City Development Group LLC, a venture of Zukin Realty of Philadelphia and Collaborative Ventures of Bethel Park, plans a $17.5 million project at West North Avenue and Federal Street that includes retail, office and residential space.
"We've been trying to get this going for a long time. That whole area where it would be is a gateway to the North Side and the 10 neighborhoods that surround it," authority spokeswoman Gigi Saladna said. "Once you improve one area, the other areas benefit from it."
Since 1994, the URA has spent more than $5 million to buy and maintain the properties, which includes a former Masonic Hall and the Bradberry apartments.
The financing would include tax credits for historic properties; funds from the city, state and URA; and some conventional bank financing not yet in place, said Zukin President Wayne Zukin.
Proponents of the plan say continuing neighborhood efforts to eliminate blight and increase property values are crucial.
"This Garden Theatre-block development is really key to reconnecting our neighborhood along that intersection of Federal and North," said Greg Spicer, president of the Central Northside Neighborhood Council, a community development corporation.
Allegheny City Development Group's plans include 39 residential units, 23,770 square feet of retail space and 12,000 square feet of office space, Zukin said. The East End Food Co-op could open a store in the Garden Theatre building, he said.
"We hope to have (some) buildings open within a year plus," he said.
