A vote before Mt. Lebanon commissioners on a tax break proposal for developers of The Galleria shopping mall has been pushed back at least two weeks as officials on both sides iron out agreements.
Columbus, Ohio-based Continental Real Estate Co. initially sought about $4 million in tax-increment financing to help defray the cost of proposed traffic and parking improvements at the 240,000-square-foot retail, restaurant and entertainment complex.
But the issue was taken off the agenda last week for Monday night's Mt. Lebanon commissioners meeting as officials continue to work on details of two separate agreements needed to approve the taxing district, Mt. Lebanon Solicitor James H. Roberts said.
Tax-increment financing allows developers to borrow money to improve a project's infrastructure, then pay it back with new real estate tax revenues generated through the development.
The tax break would pay for reconstruction of the mall's parking garage and parking lots, curbs, sidewalks and a traffic signal at the entrance off Washington Road. The intersection between the old Elby's building and the Washington Road Galleria entrance would be aligned under the plan.
It's part of a $34 million plan to renovate The Galleria inside and out. Continental — the same company that successfully developed The Waterfront at a former steel mill site in Homestead — purchased the Galleria for about $17 million in January. It plans to spend about $13 million in private funds for the renovation.
Barry Ford, director of development in Continental's Pittsburgh office, said Friday that the amount requested for the TIF has been reduced from the original $4 million request, though he would not say by how much or why. Mt. Lebanon commission President David Humphries said the lesser amount is around $3 million.
Roberts said both sides are close to finishing paperwork on the two agreements. One is a development agreement between Mt. Lebanon and Continental that would describe how the property would be developed. The second is a cooperation agreement between Mt. Lebanon, the county redevelopment authority, and Continental, which describes how the developer will pay back the bonds.
"We have to get these two agreements in a form for everybody to sign," Roberts said.
He said the municipality hopes to have the issue on the agenda for the Oct. 28 commissioners meeting.
The commission has to vote to approve the TIF district, thereby deeming the property blighted. They must then join the school district in an agreement to set aside the tax increment to support the TIF bonds, Roberts said.
It's unclear whether both approvals could come in one meeting or in two separate meetings, he said. "That depends on how much we get done over the next two weeks," he said.
To be eligible for a TIF, an area must exhibit at least one condition of blight.
The Mt. Lebanon planning board in July accepted the findings of a basic conditions study of the mall indicating that two out of a possible six conditions of blight exist in the 19-acre section of the municipality. The blighted conditions included faulty street and lot layout and defective design and arrangement of buildings.
Continental officials announced in May plans for four new restaurants at The Galleria, including the popular Italian eatery Bravo. Barnes & Noble, Starbucks and Pottery Barn Kids also have been discussed as potential tenants.
Barnes & Noble's future as a tenant has grown dimmer with the vacancies of a nearby Ames department store building.
"They do have other options so they have not committed to the process," said Ford. "We've got very good retail connections. We're in the process of putting together a tenant program."
He said it's premature to discuss potential tenants because "it's really predicated on getting the infrastructure improved and getting the facility improved."
