Annual Report 2003–2004

Home , Oakwood (Pittsburgh), Perry North (Pittsburgh), Ridgemont (Pittsburgh), Summerset at Frick Park

[ URA ] ANNUAL REPORT 2003–2004

ANNUAL REPORT 03–04 URA ANNUAL REPORT 03–04 On behalf of the City of Pittsburgh, I am pleased to intro- ment component to complement successful office build- duce this 2003–04 annual report of the Urban ings and residential complexes, and at Summerset at Frick Redevelopment Authority of Pittsburgh ... and to congrat- Park, where our sparkling new community continues to ulate the Authority for its leadership role in the City’s attract new City residents. development. The scope of development activity in our neighbor- These years were notable for exciting, multifaceted hoods may be unprecedented, for both its impact and its growth in our unique neighborhoods. In virtually every City involvement of so many Pittsburgh residents. As a result, neighborhood, our residents and community-based organ- our economy and our neighborhoods are stronger and izations, with key URA financing assistance, fashioned and more diverse than ever. implemented creative plans to improve their business dis- I would like to take this opportunity to thank and con- tricts and residential communities. gratulate Mulu Birru for his outstanding tenure as URA Our most significant developments—many of them executive director. While Mulu has gone on to other chal- neighborhood-based—advanced as well. We saw that at lenges, he has left an enduring legacy that includes devel- South Side Works, where we welcomed a retail/entertain- opment of our riverfronts, revitalization of our brownfields SECTION HEADER and a gratifying inclusiveness that now characterizes Pittsburgh’s development initiatives. 1 At the same time, I would like to welcome Jerome Dettore as the Authority’s acting executive director. Not only has Jerry dedicated his professional career to the work of the URA, but he also has played a significant role in all of the Authority’s key projects over the past several decades. Under his leadership, Pittsburgh is poised to achieve even more.

Sincerely,

TOM MURPHY Mayor, City of Pittsburgh

[ The South Side Works—Poised to achieve even more] URA ANNUAL REPORT 03–04

2 [ The Pittsburgh Model for Neighborhood Development ] THE PITTSBURGH MODEL FOR NEIGHBORHOOD DEVELOPMENT

The Urban Redevelopment Authority of Pittsburgh plays a compelling town center. The URA continued the site’s key role in many facets of Pittsburgh’s growth. We help infrastructure development, including construction of new revitalize brownfields and transform them into exciting parking garages, to accommodate the growth at South commercial sites that provide jobs and local taxes. We’re Side Works. involved in invigorating our Downtown, assisting promising With its office buildings, residences and retail and businesses with expansion and attracting new employers entertainment venues, South Side Works already has gen- to our central city. We help develop our riverfronts. We erated more than $200 million in private investment. The assist faith-based organizations in improving their neigh- impact of this signature destination will only grow with the borhoods and community. We work to ensure that disad- next phases of development. vantaged groups participate in the City’s success and The same can be said of Summerset at Frick Park in enjoy affordable housing opportunities. And we provide the Squirrel Hill and Swisshelm Park neighborhoods. The valuable support to Pittsburgh’s growing technology sec- transformation of this industrial wasteland has progressed tor, a new source of employment and prestige for the City. rapidly. Ninety-eight of a planned 694 new homes have All are vital priorities, yet perhaps the most enduring been completed, and the URA has reclaimed many acres mission of the URA is to inspire and facilitate growth of the former Nine Mile Run site as an extension of Frick throughout Pittsburgh’s neighborhoods. As our neighbor- Park. Few residential communities can match the setting hoods prosper, the benefits ripple throughout the City. of Summerset. When newcomers acquire homes in our neighborhoods Elsewhere in 2003–04, the Authority was characteris- and homeowners improve their dwellings, they solidify tically active in assisting the City’s growth. On the residen- their communities and provide a customer base for neigh- tial front, the URA provided a total of $33,827,207 in borhood business districts. When merchants thrive in financing for the construction, acquisition and rehabilitation neighborhood business districts, they serve as a magnet of homes in the City. Through its Business Development for new residents ... who can take advantage of conven- Center, the Authority helped businesses throughout ient amenities. Pittsburgh launch or expand by providing a total of In the following pages, we’re pleased to detail the $16,613,306 in financing that leveraged $82,620,688 in progress in 15 Pittsburgh neighborhoods — a representa- development. tive number rather than a complete list. In each case, The URA is pleased to play this supportive role ... development follows the model that Pittsburgh pioneered and our role is appropriately described as supportive. In and refined. A community-based organization or coalition Pittsburgh, the impetus for growth in our neighborhoods of groups takes the initiative, based on its knowledge of comes from those neighborhoods themselves. The vision neighborhood needs. The URA participates through site and energy of Pittsburgh residents make our neighbor- assembly and financing and technical assistance. A broad hoods unique ... and assure impressive development in public-private-neighborhood partnership provides funding the future. and, in many cases, managerial and operational expertise. It’s been a successful model but never moreso than in the Sincerely, remarkable achievements of 2003–04. Two of the City’s most notable developments progressed in 2003–04. At South Side Works, Soffer Group introduced its residential/retail/entertainment component with a flourish. The Cheesecake Factory restaurant JEROME DETTORE THOMAS E. COX became an instant landmark and soon will anchor a Acting Executive Director Chairman

LEFT: 279 45TH STREET, A BDC STREETFACE RECIPIENT URA ANNUAL REPORT 03–04

IN THE MID 1990’S the City of Pittsburgh, Allegheny Conference for Community Development, Allegheny County and civic leaders came together to address Pittsburgh’s serious competitive disadvantage. From these meetings came the Southwestern Pennsylvania Strategic Investment Partnership. In November 1995, The Strategies for Strengthening Southwestern Pennsylvania’s Regional Core and Restoring its Manufacturing Base was produced. The Authority adopted from this report the following four key strategies to build strength in the region’s core and create new jobs for the future.

[ Development STRATEGY 1 [ Neighborhood Development ] STRATEGY 2[ Riverfront Development ] STRATEGY 3 [ Industrial Site Reuse/Brownfield Development ] STRATEGY 4[ Downtown Development ] DEVELOPMENT STRATEGIES

SINCE ITS CREATION IN 1946 as the engine for renewal and revitalization in the City, the Urban Redevelopment of Authority of Pittsburgh has significantly expanded its role. The City has changed dramatically since then, and those changes are reflected in the URA’s broadened mission of high quality urban development, creating and retaining jobs, generating increased tax revenue, eliminating slums and blight, and creating housing and home ownership opportunities. The URA focuses much of its efforts in Pittsburgh’s neighborhoods, where financial and technical support may have the most direct benefits for City residents. Yet URA’s initiatives often advance several strategies simultaneously. At the South Side Works, for example, the Authority is collaborating with community-based organizations to energize an important neighborhood ... and at the same time revitalize a brownfield, develop a riverfront and provide attractive new space for technology-based companies. These strategies characterized development throughout the City in 2003–2004. The highlights of that progress are captured in the following pages with special attention paid to our supporting initiatives.The developments detailed here touch nearly every Pittsburgh neighborhood, and the URA is pleased to be in the vanguard. Strategies ]

SUPPORTING INITIATIVE 1 [ Faith-Based Initiatives]

SUPPORTING INITIATIVE 2 [ Supporting Advanced Technology ]

SUPPORTING INITIATIVE 3 [ Providing Opportunities for Disadvantaged Groups ] URA ANNUAL REPORT 03–04

HELPING PITTSBURGH’S UNIQUE NEIGHBORHOODS is at the center of the Urban Redevelopment Authority of Pittsburgh’s multiple missions. Stabilizing and modernizing the City’s housing stock, providing affordable residential opportunities, revitalizing and enlarging neighborhood business districts—all are activities that contribute to population and economic growth. Thus, the Authority focuses much of its attention and resources on Pittsburgh’s neighborhoods, knowing that vitality in the neighborhoods ripples throughout a healthy City. A number of the Authority’s programs are narrowly focused; in virtually every Pittsburgh neighbor- STRATEGY hood, the URA is helping families acquire and renovate homes. Still other programs cut across many com- 1 munities, providing fundamental support for both merchants and business development organizations. [ Neighborhood Development ]

LORI HOLLIS AND NEPHEW, KYROS THORPE, NEW HOMEOWNER NEIGHBORHOOD DEVELOPMENT

AMONG THESE COMPREHENSIVE INITIATIVES ARE: acquisition and expansion or working capital, technical and planning assistance, and links to other public and private MAINSTREETS PITTSBURGH. More than 20 neighbor- financing. hood business districts received a total of nearly $1 million Such projects are generating jobs and spin-off in support from this URA program in 2003, with a similar economic development in most Pittsburgh communities. In number participating in 2004. Merchant- and community- short, Pittsburgh’s neighborhoods are a whirlwind of URA- based organizations deploy this funding for business supported development activity that heralds a prosperous, district revitalization efforts, such as public space improve- thriving future. ments, storefront renovations, signage and business SOME OF THE MOST PROMISING PROJECTS district promotion. In 2004, the URA introduced “Shop IN 15 PITTSBURGH NEIGHBORHOODS ARE LISTED Mainstreets Pittsburgh” which encourages residents to BELOW. shop locally before going outside the City. The campaign to bolster retail sales included a distinct logo, marketing 1 [ Bloomfield ] materials, bus stop ads and fundraising ideas for use by An underutilized site along the PAT busway is the location the 14 participating shopping districts. Together with co- of an exciting, multi-use development in Bloomfield. sponsor Duquesne Light, the URA’s promotional effort Known as LUNA SQUARE, the $115 million initiative is pro- made 12 million “Shop Mainstreets Pittsburgh” impres- jected to feature a 236-room hotel, a six-screen cinema, a sions on City residents and visitors. 1,500-space parking garage, 50 condominium apartments, 20 loft apartments, 148,000 square feet of office space ELM STREET PROGRAM. A component of the Penn- and retail and restaurant space. Luna Square is strategi- sylvania Department of Community & Economic Develop- cally located near the newly constructed Hillman Cancer ment’s New Communities Program, Elm Street provides Center as well as Shadyside Hospital. funds for neighborhoods near central business corridors Kratsa Properties is developing Luna Square in asso- undergoing renovation, facilitating simultaneous commer- ciation with Kiebler/Hess and the McKean Group. While cial and neighborhood revitalization. In 2004, the Common- the financing package remains to be completed, the wealth awarded a $220,000 planning grant for Pittsburgh’s project took an important step forward in 2004 when the Elm Street Program, which is managed jointly by the URA City, Allegheny County and the Pittsburgh School District and the Pittsburgh Partnership for Neighborhood created a tax increment financing district for Luna Square, Development. a key tool that will facilitate identification of additional funding. Further, the developer agreed to convey 600 parking ENTERPRISE/TECHNOLOGY ZONE, The Pennsylvania spaces to the Pittsburgh Economic and Industrial Department of Community & Economic Development has Development Corporation to assure public availability of designated the Pittsburgh Technology Zone as an those spaces. Enterprise/Technology Zone to provide special business Demolition activities were launched in 2004, with con- incentives and focused delivery of technical assistance to struction of the parking garage targeted for 2005. businesses located within or relocating to a targeted “zone.” The target area was developed in concert with a coalition of three dozen community groups and technical 2 [ East Hills ] assistance providers. The program is helping neighbor- A vital initiative in the neighborhood—redevelopment of the hood businesses adopt, upgrade and link technology. Five 326-unit housing complex known as 2ND EAST HILLS—is targeted business assistance initiatives currently are underway. East Hills Limited Partnership, with Telesis underway. Pittsburgh, Inc. as general partner, is spearheading the In still other cases, the URA supports developers, three-phase initiative. Phase 1 features substantial rehabili- entrepreneurs and community-based organizations playing tation of 117 townhomes, site improvements across all 14 a leadership role in neighborhood growth. The Authority’s acres of the complex and demolition of 13 poorly configured assistance is broad and multifaceted, including site units. In addition, Phase 1 includes creation of a multipur- assembly and disposition, creation and certification of pose community center with a computer lab, a health/well- development zones, financing assistance for business ness center, an assembly room and office space. URA ANNUAL REPORT 03–04

Rent levels at 2nd East Hills, currently ranging from 3 [ East Liberty ] $712 to $781, are regulated according to the Section 8 One of the neighborhood’s most significant initiatives, requirements of the Housing Authority of the City of involving 644 housing units, advanced substantially in Pittsburgh. For the more than $19 million initiative, URA is 2003-2004. The housing units—in three separate devel- providing $390,000 in RHDIP financing. The broad funding opments known as LIBERTY PARK APARTMENTS & team also includes HUD, PennHOMES, Allegheny County TOWNHOUSES, EAST MALL APARTMENTS and PENN and the Municipality of Penn Hills, with equity provided by CIRCLE APARTMENTS—were formerly owned by Federal low-income housing tax credits. American Properties but were acquired by the URA as part Construction began in 2004, with changes expected of foreclosure sales. to be dramatic. Rehabilitation plans include new bath- The Authority has worked with East Liberty rooms and air conditioning for every unit as well as reno- Development, Inc. (ELDI), the Coalition of Organized vations of kitchens, flooring, roofs, siding and windows. Residents of East Liberty and other stakeholders on a com- East Hills Limited Partnership will landscape barren and ill- prehensive redevelopment plan…and began to implement used yard space, repair crumbling walkways, install new that plan in 2003. McCormack Baron Salazar, the develop- lighting and add back yard fencing and storage units. The ment team that built and manages Crawford Square and refurbished complex will foster openness and create a new Bedford Dwellings, was selected as the developer for a sense of community identity. portion of the Liberty Park site, which will feature approxi- To assure that the momentum of Phase 1 continues, the mately 225 rental units in the first and second phases. For- Authority engaged Hanson Design Group, Ltd. to perform sale units will be developed by S&A Homes in the third a planning study for the entire neighborhood. This collabora- phase of the development. The URA has provided $4.4 mil- tive effort included HUD, Telesis, Winn Development (devel- lion in pre-development financing for the Liberty Park initia- oper of 1st East Hills) and the offices of Mayor Tom Murphy tive, with additional funding from the U.S. Department of and Pittsburgh City Councilwoman Twanda Carlisle. Housing and Urban Development. Construction on Phase I Even in advance of the study, other encouraging devel- is expected to commence in 2005. opment projects are progressing in East Hills, such as: Other aspects of this comprehensive initiative progressed as well. Demolition of the Liberty Park and East CRESTLINE COURT, where Stanley Construction Company Mall high rises is expected to begin in 2005. East Mall is building six single-family homes on property that is cur- Apartments could re-emerge as a mixed-use development. rently vacant. Development of the first two homes is near Penn Circle Apartments is serving as a relocation resource completion, with sales prices set at $137,500 and for Liberty Park and East Mall residents. $132,000. Construction of the remaining 4 homes is Nearby, the success of Whole Foods in East Liberty is underway. Since the site is adjacent to East Hills Park, spawning other development in the neighborhood. which includes 1st East Hills, 2nd East Hills, 3rd East Hills Developed by The Mosites Company, EAST SIDE II will and two additional residential streets, Crestline Court will lead a nearly $17 million initiative to develop approximately add to the homeownership opportunities in the neighbor- three acres adjacent to Whole Foods. The project will hood while eliminating blight. Nearly a $1,000,000 devel- include 80,000 square feet of leasable commercial space opment, the URA is providing $299,287 in construction and a two-level deck that will provide additional parking for financing and $223,000 in mortgage assistance through Whole Foods customers. A second phase could include the Neighborhood Housing Program (NHP). Other funding another 18,000 square feet of leasable space. sources are Parkvale Bank and developer equity. The URA is providing $710,000 in gap financing and joining with the City of Pittsburgh to provide another $140,000 from the proceeds of rights-of-way sales. The Commonwealth of Pennsylvania, the Local Initiatives Support Group (LISC) and local foundations are providing additional funding. In addition, the project is among the first in Pennsylvania to utilize Federal New Markets Tax Credits. NEIGHBORHOOD DEVELOPMENT

RED ROOM CAFE

[ East Liberty ] RED ROOM CAFE, a start-up restaurant that emphasizes fresh, creative, healthy selections in an upscale-yet-relaxed atmosphere. Red Room Cafe is contributing to the growing multicultural restaurant environment in East Liberty…and will create 18 new jobs in the process. For the $260,000 business launch, the URA provided $88,000 in PBGF financing. Other funding sources included Sky Bank and equity. Red Room welcomed its first customers in 2004.

ROB REESE, OWNER URA ANNUAL REPORT 03–04

Through its length and breadth, East Liberty is abuzz initiative is a critical component of the Broad Street revital- with development activity. Also progressing in 2003– ization, spearheaded by the East Liberty Quarter Chamber 2004 were: of Commerce, that includes the rehabilitation of the former Keystone Plumbing building, elimination of several nui- LIBERTY BANK BUILDING, a signature six-story, 25,000- sance bars and introduction of a Family Dollar shop. The square-foot building that has been vacant for at least a URA is providing $80,000 in Urban Development Fund decade, meaning that substantial renovations are required (UDF) financing for the initiative, which is projected to cre- to restore this handsome edifice. A partnership of no wall ate 30 jobs over three years. productions, EDGE studio and TEDCO Construction Corp. has undertaken the task and will convert the building for THE WERNER BUILDING, a two-story commercial structure mixed uses: retail on the first floor, up to 10 loft-style units on South Highland Avenue that traces its roots to the early above. Because the building is located in an 1900s but today suffers from underutilization. Werner Enterprise/Technology Zone and a Keystone Opportunity Building Associates, LLC has acquired and begun to Expansion Zone, the site is exempt from most local and improve the building, marketing available space to profes- state taxes for 10 years. For this vital initiative of more sionals, artists and service-oriented companies while than $2.9 million, the URA is providing $910,000 in financ- seeking to retain existing tenants. The $752,157 initiative ing assistance, with additional funding from Dollar Bank, will preserve or create 13 jobs over three years. The LISC, ELDI and developer equity. The project is expected Authority provided a loan of up to $200,000 in UDF financ- to create at least 50 jobs over three years. ing, with additional funding from PNC Bank and equity.

WESTERN PENNSYLVANIA FAMILY CENTER (WPFC), which 4 [ Federal North ] is renovating and converting a carriage house on its North As the next phase of the Federal North Redevelopment Highland Avenue campus to a mixed-use building that will Project, the URA in 2004 began to assemble a 4.5-acre feature one rental unit as well as classrooms and a confer- site for development of new housing called FEDERAL HILL. ence room. The project will enhance WPFC’s capabilities As currently envisioned, the complex would include 44 for- as a provider of education, research and training services sale units developed by S&A Homes and the Central and facilities for students from across the U.S. and Northside Neighborhood Council. Construction is targeted abroad. For the $246,905 development, the Authority is to begin early in 2006. providing $30,000 in RHDIP financing, with additional fund- Elsewhere in the Federal North Redevelopment Area, ing from PNC Bank and local foundations. the URA launched discussions with developers on the reuse of a former gas station and continued to maintain WEDGWOOD GROUP, LP, which has acquired and will ren- buildings that were acquired as part of the redevelopment ovate three blighted Broad Street buildings—in a “Weed project. & Seed” target area—for rental to business tenants. This

WPFC 5 [ Fineview ] Meadville Street is the site of welcome residential development activity in Fineview. There, Fineview Citizens Council is constructing eight single-family, detached homes on properties that currently are blighted. Northside Leadership Conference is project manager for the complex, which is known as NUNNERY HILL. All eight homes will be priced at $150,000. URA is assisting the more than $1.56 million development in several ways. The Authority is providing $627,087 in construction financing as well as $255,000 in mortgage assistance to make the homes affordable to a diversity of purchasers. NEIGHBORHOOD DEVELOPMENT

Citizens Bank is providing $728,000 in financing and $15,000 in grants. In addition, application has been made, through the offices of state Rep. Don Walko, for a grant from the Pennsylvania Department of Community & Economic Development.

6 [ Friendship ] The Authority and its community-based partners are in the early stages of redevelopment of an important Friendship site —a former Eat’N Park restaurant at Penn and Fairmont. Studies have indicated that the location is suit- able for mixed uses. Activities scheduled for 2005 include identifying tenants and financing for the project, with the onset of construction to follow.

7 [ Garfield ] The Bloomfield-Garfield Corporation and the Garfield Jubilee Association, two pillars of redevelopment in Garfield, have joined forces on an ambitious initiative called GARFIELD HOMEOWNERSHIP CHOICE to bring 50 new single-family housing units to the neighborhood. The multiphase plan calls for demolition of obsolete structures, acquisition of large, contiguous parcels of land for redevelopment and the salvaging of blighted properties where possible. All Phase 1 units are priced from $105,000 to $120,000 and targeted to households earning less than 115 percent of the area median income. In the initial development phase, 15 units were completed; eleven have been sold, with the remaining four units are under sales contracts. Total development costs for Phase 1, was $5.2 million. The URA provided more than $1.15 million in financial assistance under the initial phase and is expected to contribute to future phases. The Pennsylvania Housing Finance Agency Homeownership Choice Demonstration Program is providing $1 million in funding for all three phases. Other financing sources contributing to the project include the Pennsylvania Department of Community & Economic Development, Mellon Bank, PNC Bank, Citizens Bank, National City Bank, local foundations and developer equity.

INTERIOR, LIBERTY BANK BUILDING URA ANNUAL REPORT 03–04

Other Garfield developments are advancing as well. Now, Ebony Development will enhance its efforts to Among them: revitalize low-income communities in the City by expanding PENN AVENUE ARTS INITIATIVE (PAIA), through which Penn its current staff from 14 to 21. At least 51 percent of the Avenue properties are acquired and renovated as jobs created will be made available to those of low and live/work space for artists. PAIA has created 31 such sites moderate income. that now are homes or offices to more than 150 artists. In For the $260,000 initiative, the Authority is providing the latest phase of the initiative, Bloomfield-Garfield $130,000 in PBGF financing, with equity accounting for Corporation will rehabilitate four blighted, multi-use build- the balance. ings that will offer a broad range of space and amenities. For the more than $1.2 million initiative, the URA is provid- 9 [ Lawrenceville ] ing $401,339 in construction financing as well as $66,000 Over the past several years, Lawrenceville has become the through the Streetface program. Others on the broad home for many businesses based in the arts, providing financing team include Sky Bank, the R.K. Mellon headquarters in stately older buildings as well as new con- Foundation, the Roy A. Hunt Foundation and the Common- struction. Lawrenceville is well-positioned as a convenient, wealth of Pennsylvania. hospitable environment for artists and their companies.

8 [ Hill District ] IRV WILLIAMS, EBONY DEVELOPMENT, LLC The URA and its development partners envision exciting growth in the Middle Hill District along the CENTRE AVENUE CORRI- DOR bounded by Wylie Avenue and Heldman, Rose and Soho streets. The vision for this corridor was formalized through a study by Urban Design Associates and is being carried forward by a stakeholders group convened by Pittsburgh City Councilman Sala Udin. The Authority has acquired 21 private properties and BLACKBIRD ARTIST LOFTS 85 public parcels in the corridor, and plans for the proper- This encouraging trend continued in 2003–2004, as ties already are in motion. The Housing Authority of the Artists and Cities launched construction at 36th and Butler City of Pittsburgh plans to build 75 to 90 housing units for streets of a three-story, 30,000-square-foot condominium the elderly along Wylie Avenue, with construction set to building called BLACKBIRD ARTIST LOFTS that will offer begin in 2005. In addition, discussions are underway with commercial space on the first floor and for-sale live/work Carnegie Library to expand their current branch office in space above. Owned by Blackbird Development LLC, the the Hill District and build a facility on the first floor of the building will feature three commercial units and 15 building. live/work units. For the more than $4.18 million develop- A number of organizations are working with the URA ment, the Authority is providing $905,000 in construction on development of the corridor. In addition, the U.S. financing. Others on the impressive financing team include Environmental Protection Agency is providing $100,000 to PNC Bank, National City CDC, the Community Lending underwrite an environmental assessment of a former gas Fund and the Green Building Alliance. station in the corridor. In that same block, the URA helped T’S UPHOLSTERY Elsewhere in the neighborhood, URA is assisting in the STUDIO, Inc., acquire a building at 3609–3611Butler Street expansion of Ebony Development, LLC, a minority-owned for the expansion of its business. Arsenal and Old Lace real estate development company headquartered on Centre Shop will continue to operate from the building, while T’s Avenue that was the driving force behind several important Upholstery, which previously was located about four Hill District initiatives, including Williams Square and One blocks away, will occupy 1,300 square feet. An additional Hope Square, two newly-constructed office buildings. unit of 1,300 square feet provides a rental opportunity. NEIGHBORHOOD DEVELOPMENT

For the $173,500 initiative, the Authority is providing tive, the Authority is providing $104,200 through the $29,000 in PBGF assistance, with additional funding from Community Development Investment Fund (CDIF) and Allegheny Valley Bank and equity. URA’s support is assist- Streetface program. Private financing accounts for the bal- ing in the expansion of a woman-owned business even as ance. Wylie Holdings has completed all renovations, with it helps stabilize the neighborhood business district. leasing activities underway.

Other important developments advanced in Lawrenceville 3500 PENN AVENUE, where Lawrenceville Corporation and in 2003–2004, including: its contractor, Steve Catranel Construction, is building five INTERLOCKING DECK SYSTEMS INTERNATIONAL (IDSI), townhomes, for sale at prices ranging from $146,000 to which has created and is marketing a patented weldless $151,500, on sites that currently are blighted. The part- steel-frame decking system for bridge decks, in addition to ners previously teamed to construct 26 housing units in its specialty fabricated metals work. IDSI’s technology sig- the Doughboy Square area. For the $995,580 initiative, nificantly improves the life cycle of bridge decks, reduces the URA is providing $335,000 in construction financing fabrication and installation time as well as maintenance and $160,000 in mortgage assistance for purchasers. PNC Bank is providing additional funding.

T’S UPHOLSTERY STUDIO 10 [ Shadyside ] Giant Eagle long has been a vital, community-serving amenity in Shadyside. Now, the supermarket on Centre Avenue near South Negley Avenue will become even more important to the community, as ECHO Real Estate Services will construct 78 apartment units within the air rights of the expanded business. As part of the initiative, ECHO will nearly triple the existing 24,000 square feet, add 88 parking spaces to the current 56 and expand the underground parking garage from 56 spaces to approximately 248 spaces. In 2004, the City, Allegheny County and the Pittsburgh 4933 BUTLER STREET STREETFACE School District completed a tax increment financing agree- ment to provide key funding for the initiative. Construction costs, and eliminates environmental damage caused by activities commenced in 2004, with completion set for welded joints. The outlook for the technology is so bright 2005. With this project, Shadyside will gain attractive, that the business on 41st Street has increased sales sig- imaginatively conceived housing units that offer the utmost nificantly and grown to 63 employees. The Authority is pro- in convenience — a full-service supermarket directly viding $250,000 in financing through an Enterprise Zone downstairs. loan, with the balance privately financed.

5170 BUTLER STREET, a four-story structure at a highly vis- 11 [ Uptown ] ible intersection that Wylie Holdings is rehabilitating for One of the City’s oldest neighborhoods, Uptown is also mixed uses, including headquarters space for one of Pittsburgh’s most important communities, serving Lawrenceville Corporation, one of the primary catalysts for as a major transport corridor between Oakland and development in the neighborhood. The plan for this build- Downtown and home to such important institutions as ing mirrors that used successfully elsewhere in the rehabil- Mercy Hospital and Duquesne University. Over the past itation of historic Doughboy Square: Lawrenceville several decades, however, Uptown has experienced Corporation partners with a private developer, and located severe population loss and a steep decline in commercial its own offices in the building to generate activity, then will and industrial activity. As a result, neglected housing and move on to the next site when the current building inspires vacant storefronts and lots mar the neighborhood. business relocation or expansion. For the $283,000 initia- URA ANNUAL REPORT 03–04

To reinvigorate the community, the URA, the City of abatement of most state and local taxes until 2010. The Pittsburgh and a number of important partners have URA is providing $676,528 in financing, with additional fund- launched the UPTOWN REVITALIZATION INITIATIVE to sup- ing from Dollar Bank. Marketing of the units is underway. port public improvement projects as well as new housing and commercial development. To finance the initiative, the RIVERCITY FLATS, a project of RiverCity Restorations, Authority has applied to HUD for $638,000 in CDBG fund- LLC, that will convert a former Forbes Avenue warehouse ing. That money, combined with other applicable public to 12 loft-style apartments to be rented at market rates, financing and private investment, will provide an initial pool between $550 and $700 monthly. For the $530,000 initia- of about $1 million for the initiative. tive, the Authority is providing $100,000 in RHDIP financ- The funding will underwrite such important tasks as ing. Other funding sources include S&T Bank and owner property acquisition, infrastructure improvements and pre- equity. development work. To complement the initiative, URA and the City are studying designation of a 400-parcel portion of Uptown as a “redevelopment area.” That certification

ROMA LOFTS

12 [ West End ] would enable utilization of tax increment financing and pro- The West Pittsburgh vide preference for certain funding programs, including Partnership has undertaken Pennsylvania Housing Finance Agency tax credits. a significant business district improvement project in the The initiative has brought together a powerful, repre- West End, with valuable financing support from the URA. sentative team that includes the Uptown Community Through the more than $1 million initiative, the part- Action Group, Oakland Planning and Development nership is providing public space improvements for Corporation, the Hill CDC, Duquesne University and SOUTH MAIN STREET, the neighborhood’s principal busi- Mercy Hospital. ness corridor. The project includes improved pedestrian Meanwhile, encouraging developments already have access through new curbs and sidewalks as well as such begun to progress in the neighborhood, including: aesthetic enhancements as street trees, grates, planting beds, ornamental light poles and signage. The partnership ROMA LOFTS, the conversion of a former warehouse at also will install parking meters and handicapped-accessi- Colwell and Vine streets to eight condominium units with ble curb ramps and crosswalks. integral parking. Four of the units will be developed in the The partnership has committed $250,000 to the initia- traditional loft style, while the remaining four will be tive, while the Authority is providing $615,000 in Public penthouse-type units atop the building. The units will be Space Improvement and Mainstreets Pittsburgh funding. priced at market rates between $188,000 and $199,000. In addition, the City of Pittsburgh is providing $200,000 in Pittsburgh Housing Development Corporation serves as financing. Construction was launched in 2004. developer of the nearly $1.8 million initiative, which is Elsewhere in the West End, business owners are con- located in a Keystone Opportunity Zone that provides a tax tributing to the growth of the neighborhood through a number of expansion projects. NEIGHBORHOOD DEVELOPMENT

ARGENT OF PITTSBURGH

[ West End ] ARGENT OF PITTSBURGH, a limited liability company that holds two prominent West End businesses, James Gallery of the West End and Frame Foundry of Dormont. Argent has acquired properties at 411–415 South Main Street and renovated them to house its two units. The new location increased the businesses’ square footage by 75 percent and allowed additional space for walk-in trade, artists exhibits, meetings and seminars, and on-site work. The $906,000 initiative is expected to bring 17 jobs to the City. The URA

JAMES FREDERICK, OWNER, invested $135,800 in financing through the District Improvement Fund and Streetface program. The Allegheny Pittsburgh Business Development Corporation (APBDC), a URA subsidiary, provided a Small Business Administration 504 loan in the amount of $250,000. Additional funding was provided by North Side Bank and equity. URA ANNUAL REPORT 03–04

FAITH-BASED ORGANIZATIONS ARE THE oldest and most stable institutions in many city neighborhoods, inherently aware of their neighbors needs. Today these organizations are playing a greater role in strengthening communities through housing and economic development initiatives. The URA has actively participated in the financing of Faith-Based development for over the past 10 years and continues to do so today. Innovative projects in the neighborhood include:

SUPPORTING INITIATIVE [ Faith-Based Initiatives] SUPPORTING INITIATIVES

17 13 [ Brookline ] [ Hill District ] Resurrection Parish School was once an important institu- CENTRAL NEW DEVELOPMENT CORPORATION (CNDC), a tion in Brookline—and will be once more with its planned nonprofit organization formed by Central Baptist Church is conversion to 26 units of housing for elderly tenants. The helping revitalize the Lower Hill District. CNDC has reha- complex will be known as CREEDMOOR COURT, and it will bilitated a blighted three-story building in the Centre feature apartments affordable to those with incomes at or Avenue corridor for retail and commercial uses and has below 50 percent of the area median income. Section 8 renamed it Victory Centre. This is the first of several devel- rental assistance will be provided to all tenants, who will be opments that CNDC plans to do in the neighborhood. The responsible for no more than 30 percent of their income URA invested $344,500 into this $831,000 project. for rent and utilities. Creedmoor Court, Inc. serves as developer, with con- 14 [ Larimer ] sulting assistance from veteran residential developers Ralph The URA collaborated with the Lincoln Larimer Community A. Falbo, Inc. and Christian Housing, Inc. and property man- Development Corporation, East Liberty Concerned agement from Housing Management Services, Inc. Citizens Corporation, Mt. Ararat Baptist Church and the For the nearly $3 million initiative, the U.S. offices of state Rep. Joseph Preston and Pittsburgh City Department of Housing & Urban Development (HUD) has Council-woman Twanda Carlisle on certification of a committed nearly $2.6 million. The URA is providing LARIMER REDEVELOPMENT AREA. That designation came in $384,827 in assistance through the Rental Housing September 2004. Now the URA is working with the com- Development & Improvement Program (RHDIP), an munity and the nonprofit development arm of Mt. Ararat amount that will be reduced if the developer receives fund- Church, on a redevelopment plan for the neighborhood. ing from the Federal Home Loan Bank.

15 [ Marshall–Shadeland ] 2907-2913 SHADELAND AVENUE, where the Evangelical Presbyterian Church founded New Hope for Neighborhood Renewal (NHNR). They acquired three deteriorated properties for conversion to three single-family detached units each featuring three bedrooms, a front porch and rear parking pad. Sale prices ranged from $90,000 to $95,000. NHNR used volunteer labor from neighborhood churches as a form of construction subsidy. In addition, the home- opposite and above CREEDMOOR COURT buyers received budgeting counseling from NHNR. For the $558,872 initiative, URA provided $183,429 in construc- [ East Liberty ] tion financing and $125,000 in mortgage assistance. Other RIPPEY STREET, where Habitat for Humanity, a non-profit funding sources include PNC Bank, the PNC Foundation Christian housing organization, and the Mellon Orchard and the Federal Home Loan Bank. All three units were sold Neighborhood Association are working together to con- to families earning at or below 80% of the area median struct three single-family detached homes on two vacant income. lots. Purchasers for the $90,000 homes, who will provide “sweat equity” for their residences, have been identified 3104 FREDERICK STREET, a rehab-for-resale program of and are participating in credit counseling. The URA and Nazareth Housing Services (NHS), a Catholic nonprofit ELDI sold the land for the project, and the Authority also is development agency managed by Mt. Nazareth Center, providing $96,000 in construction financing, and $96,000 Inc. NHS upgraded this dwelling to code standards, and in mortgage assistance for the $270,067 development. will sell it to an eligible buyer. This program enables very- The project has attracted investment from such corpora- low income household to become homeowners. The URA tions as The Home Depot, GMAC, Cutler-Hammer, Bell is providing $46,137 in construction financing and $25,000 Federal and Whole Foods; nonprofits including the in mortgage assistance for the $98,000 initiative. A loan Financial Roundtable, Eastminster Presbyterian Church, from NHS is providing the bulk of the balance. Carnegie Mellon University, First United Methodist Church, Mt. Ararat Baptist Church and the Community Design Center, and a number of foundations. URA ANNUAL REPORT 03–04

PITTSBURGH’S TRANSFORMATION from a single-industry town to a vibrant, multifaceted economy has presented the City with the challenge—and the opportunity—to recycle its underutilized or vacant former industrial sites. The Urban Redevelopment Authority of Pittsburgh and its partners have consistently stepped up to this challenge by developing such vital, multi-use complexes as the Pittsburgh Technology Center and Washington’s Landing on sites that had become brownfields. The ongoing development of the new residential community known as SUMMERSET AT FRICK PARK is yet another creative use of a brownfield. In 1995, the URA acquired the 238-acre site in the STRATEGY Swisshelm Park and Squirrel Hill neighborhoods that had been used for years as a repository for industrial waste. Transforming the environmentally degraded wasteland into an attractive residential 2 [ Industrial Site Reuse/ Brownfield Development ]

SUMMERSET AT FRICK PARK INDUSTRIAL SITE REUSE /BROWNFIELD DEVELOPMENT

19 community has been the work of URA and its community- appended to Frick Park and afford majestic views of the based partners, who provided key input on environmental park and access to its popular network of trails. The park and traffic flow concerns. extension is marked by a stone pavilion that functions as Summerset is being developed by Summerset Land the gateway to the community. Development Associates, a broad team that includes The Many facets of the initiative, such as reconfiguring Rubinoff Company; Montgomery & Rust, Inc.; Pennrose, 600,000 cubic yards of slag, have required ingenuity and Falbo Associates, and EQA Landmark Communities. In all, determination. But the benefits of Summerset are commen- the initiative includes construction of 694 housing units surate. For one, the City has gained a sparkling new resi- priced at market rates ranging from $198,000 for a town- dential neighborhood and related park land. For another, home to $700,000 for estate-style homes. The 98 units in Summerset at full buildout is expected to generate approx- Phase 1-A of the project are complete, with an additional imately $5.9 million annually in new local tax revenues as 113 units under construction in Phase 1-B. well as a one-time infusion of $3.6 million in transfer taxes As part of the initiative, the Authority also is reclaiming on a projected $28 million in land sales over the life of and revegetating adjacent land, 105 acres that will be the project. This is one brownfield that is sprouting green once more. URA ANNUAL REPORT 03–04

20 INDUSTRIAL SITE REUSE /BROWNFIELD DEVELOPMENT

21 [ Perhaps the most enduring mission of the URA is to inspire and facilitate growth throughout Pittsburgh’s neighborhoods. As our neighborhoods prosper, the benefits ripple throughout the City.]

SUMMERSET AT FRICK PARK URA ANNUAL REPORT 03–04

THE CITY’S RIVERFRONTS OFFER A COMPELLING ENVIRONMENT for commercial activity, residential life, recreation and preservation. One of the most important objectives of the Urban Redevelopment Authority of Pittsburgh and the administration of Mayor Tom Murphy is to create just those types of venues along Pittsburgh’s rivers as attractions for current residents, magnets for business location and destination points for visitors. Often, riverfront development in Pittsburgh involves recycling former industrial sites, brownfields that typically require the collective efforts of public-private-neighborhood partnerships if transformation STRATEGY is to occur. That was the case with Washington’s Landing and the Pittsburgh Technology Center, two of the City’s most creative, productive riverfront initiatives. And the same can be said of South Side 3 Works, perhaps Pittsburgh’s most ambitious riverfront development yet. [ Riverfront Development ] RIVERFRONT DEVELOPMENT

When the URA in 1993 acquired the vacant, 123-acre Occupancy of the residential component was among site of the former LTV South Side Works, it teamed with the most exciting aspects of development which brought a South Side-based organizations to fashion a far-reaching total of 354 housing units including 270 units at The development plan. The plan called for complementary Residences at South Side Works, developed by mixed uses including office and warehouse space, retail Continental Communities. This $27 million riverfront devel- and entertainment venues and market-rate housing, as opment offers one and two bedroom units as well as two well as related infrastructure improvements and parking bedroom townhomes. garages. At full development, SOUTH SIDE WORKS would In March 2004, the U.S. Immigration & Naturalization generate $250 million in private investment, up to 5,400 Service occupied its new $4.7 million headquarters on the new jobs and more than 400 housing units. site, providing approximately 50 jobs. The URA was active The plan was bold, but its implementation has con- at South Side Works as well, completing $3 million in infra- firmed the vision of URA and its partners. South Side structure improvements and opening its third South Side Works already has attracted $200 million in private invest- Works parking garage, featuring 868 spaces. ment and seen the realization of most of its key goals.

COLUMBIA GAS RETAIL BLOCK SERVING THE SOUTH SIDE WORKS SITE

QUANTUM TWO

RICHARD KOZA

During 2003 and 2004, the complex advanced significantly with the opening of the Soffer Organization’s $27.7 million mixed-use component featuring a 10-screen cinema and the debut of The Cheesecake Factory, a 13,700- As vibrant as South Side Works is today, it promises square-foot restaurant that is part of a California-based to become even more lively. national chain. With its spacious main dining area and 72- Soffer also will develop two additional office buildings, seat outdoor patio, The Cheesecake Factory is a popular while the developers of Rivertech Center will construct a and effective dining anchor for all of South Side Works. new office building, a 43,000-square-foot facility to be The Soffer Organization developed a 15,000-square-foot known as Rivertech Office Park. town square that offers landscaped areas and seating sur- The Authority, the Commonwealth of Pennsylvania, the rounding a central water fountain. The plaza also includes City of Pittsburgh, the Pittsburgh Water & Sewer Authority, a kiosk for visitor orientation, concession sales and event Allegheny County and the Pittsburgh School District have marketing. combined to provide more than $84.3 million in public But those weren’t the only aspects of the development financing for South Side Works. That investment has proved to progress, as Soffer also completed two office build- to be savvy, indeed, as South Side Works is a development ings—2700 East Carson a three story, 186,000-square- of unprecedented scope and impact in the City. foot structure that offers ground-floor retail space, and a These new elements of South Side Works joined a 114,504-square foot office/retail building that encompasses number of businesses, residences and amenities already the cinema. New residents have moved into The Flats at completed. South Side Works, an $18 million mixed-use facility that features 84 loft units with street-level retail space. URA ANNUAL REPORT 03–04

BUILDINGS/RESIDENCES COMPLETED

1 UPMC Regional Distribution Center 7 The McGowan Center for 12 Quantum One Square Footage: 83,000 Artificial Organ Development Uses: Office space Investment: $4 million Square Footage: 45,000 Square Footage: 160,000 Completion: November, 1998 Investment: $10.7 million Investment: $18 million Completion: September, 2002 Completion: October, 2001 UPMC Sports Performance Complex Square Footage: 260,000 Carson Street Retirement Investment: $30 million 8 Monongahela Connecting Bridge 13 (MonConn Bridge) Housing Units: 69 Investment: $14 million Square Footage: 70,712 2 Pittsburgh Steelers/University of Pittsburgh Completion: July, 2000 Investment: $6.86 million Panthers Football Training Field Completion: September, 2000 3 Pittsburgh Steelers/University of Pittsburgh 9 Waterfront Park & Trail Panthers Administrative and Sports Investment: $500,000 14 Sarah Street Townhomes Training Center Completion: April, 2001 Housing Units: 30 Square Footage: 31,304 4 Pittsburgh Steelers/University of Pittsburgh Investment: $3.55 million Panthers Indoor Training Center 10 Steelworkers Monument Investment: More than $250,000 Completion: November, 2000 5 UPMC’s Center for Sports Medicine Completion: April, 2001 Completion: September, 2000 15 RiverTech Center Uses: Office space/surface parking 11 Federal Bureau of Investigation (FBI) 6 International Brotherhood of Electrical Uses: Office space Square Footage: 47,000 Workers (IBEW) Square Footage: 83,000 Investment: $5 million Square Footage: 125,000 Investment: $20 million Completion: October, 2002 Investment: $18 million Completion: October, 2001 Completion: August, 2000

37 10 38 40 9 33 39 31 34 5 24 27 21 25 30 35 26

32 17 28 12 7 1 20 19 23 16 6 36 18 13

14 RIVERFRONT DEVELOPMENT

16 2800 East Carson Housing Units: 84 loft housing 23 2700 Carson Street Uses: Retail/Office Building Square Footage: 123,522 Uses: Retail/Office Square Footage: 41,040 Investment: $18 million Square Footage: 186,000 Investment: $4.9 million Completion: Fall, 2003 Investment: $20 million Completion: Fall, 2002 Completion: Fall, 2004 20 URA Garage #2 (Sidney & 26th streets) 17 URA Garage #1 Parking Spaces: 367 24 Cheesecake Factory Parking Spaces: 679 Square Footage: 129,678 Uses: Restaurant Square Footage: 245,355 Investment: $6.7 million Square Footage: 14,000 Investment: $11.34 million Completion: September, 2003 Investment: $2.5 million Completion: June, 2002 Completion: July, 2004 21 South Side Works Cinema COMPLETED IN 2003 & 2004 Uses: Entertainment 25 URA Garage #3 Square Footage: 402,000 (2812 Tunnel Boulevard) The Residences at South Side Works 18 Investment: $10.7 million Parking Spaces: 868 (25th & 26th streets) Completion: October, 2004 Square Footage: 266,162 Uses: Housing and retail Investment: $12.6 million Housing Units: 270 Completion: October, 2004 Square Footage: 388,286 22 Matcon Diamond, Inc. Investment: $27 million (East Carson Street) Completion: December, 2003 Uses: Light Manufacturing Plant 26 Regional Headquarters for Square Footage: 20,000 Immigration & Naturalization Investment: $1.2 million Services (INS), 3100 Sidney Street The Flats at South Side Works 19 Completion: Fall, 2004 Uses: Office building (2600 Carson Street) Square Footage: 32,500 Uses: Housing and retail Investment: $4.7 million Completion: March, 2004

27 Quantum Two (Corner of Hot Metal & Tunnel St.) Uses: Office space Square Footage: 187,000 Investment: $20 million Completion: Early 2005

28 URA Garage #4 Parking spaces: 409 Square Footage: 139,446 Investment: $7.25 million Completion: January, 2005

PLANNED DEVELOPMENT 29 Rivertech Office Park 3800 S. Water St. Uses: 7 speculative office buildings Square Footage: 41,000 Investment:$3.1 million 4 Completion: Fall, 2005

30 400 S. 27th Street 3 Uses: Retail/Offices Square Footage: 114,504 Investment: $20.2 million Completion: Fall, 2005

11 2 31 Marriott Spring Hill Suites Rooms: 106 Investment: $8 million Construction to begin: Spring, 2005

32 Market Place Uses: Mixed use food/spirits 22 15 Square footage: 25,000 Investment: $2.5 million Construction to begin: Fall, 2005

33 Hofbrahaus Brewery & Restaurant Uses: Restaurant FUTURE DEVELOPMENT Square footage: 15,000 Investment: $3 million 37 Condominiums 29 Construction to begin: Spring, 2005 38 Hotel 34 Tunnel Park 39 Quantum Three Completion: Spring, 2005

40 Quantum Four 35 URA Garage #5 Parking spaces: 560 Investment: $7.6 million Construction to begin: Spring, 2005 Completion: Fall, 2005

36 East Carson Street widening and improvements Construction to begin: Fall, 2005 URA ANNUAL REPORT 03–04

DOWNTOWN PITTSBURGH, with its captivating blend of commercial, residential and entertainment activities, is the bustling heart of the City and the region, and the Urban Redevelopment Authority of Pittsburgh has been a major force in maintaining and enhancing the vitality and diversity of the central business district. In 2003–2004, URA assisted several developments that will strengthen Downtown’s attractive complement of amenities. Perhaps the most far-reaching of these initiatives is the AFRICAN AMERICAN CULTURAL CENTER OF GREATER PITTSBURGH, a more than $32.7 million initiative that is projected as a hub for regional and STRATEGY national tourism. Set near Pittsburgh’s Cultural District, the center will offer art exhibits and perform- ances, a museum, a 90-seat theater for jazz and story-telling, a 300-seat theater for larger perform- ances and a 100-seat restaurant. The 102,000 square feet facility will be located on Liberty Avenue 4 just one block from the David L. Lawrence Convention Center. [ Downtown Development ]

COURTYARD BY MARRIOTT HOTEL DOWNTOWN DEVELOPMENT

The Authority is managing site assembly for the cen- Thus, the center remains on track for its projected ter, which involves acquisition of 13 properties, and has opening in late 2007. The City, Allegheny County, the neared completion of negotiations for all but a few of the Allegheny Regional Asset District, and local corporations parcels involved. and foundations are participating in the funding for the Significant progress occurred along many fronts in facility, a collaborative approach that suggests the center 2003–2004. Early in 2003, Neil Barclay was named presi- will be a unique asset for the entire region. dent of the center. Also that year, LORD Cultural Planning and Management, project manager for the facility, staged a Elsewhere Downtown, URA actively supported a num- design competition which included the evaluation of more ber of vital initiatives, including: than 15 national architectural firms. The winner of the competition, Ai of San Francisco, initiated design efforts in 2004. COURTYARD BY MARRIOTT HOTEL, a 182-room facility located in the 900 block of Penn Avenue that is providing much-needed lodging to accommodate the expanded convention center and the cultural center. Oxford Develop- ment Company created the hotel through an entity called Penn Avenue Hotel Limited Partnership. The hotel features three meeting rooms, 48 integral parking stalls and 8,500 square feet of restaurant and retail space. For the nearly $24 million project, the URA provided $1.5 million in financing assistance, with additional funding from the ERECT Fund, the Strategic Investment Fund, equity, and rehabilitation tax credits.

100 7TH STREET, where Lincoln Property Company will develop a new market-rate apartment building on a 32,000-square-foot site the overlooks the Allegheny River. The facility will be a high-end complex featuring 151 apartment units with rents ranging from $1,084 for one-bedroom units and up to $3,448 for two-bedroom apartments. Within walking distance of such important venues as Heinz Hall, The Benedum, PNC Park, Heinz Field, the Andy Warhol Museum and the convention center, the complex will enhance the 24-hour-a-day vibrancy of Downtown and increase Pittsburgh’s tax base. For the $36.6 million development, the URA is providing $4 million through the Pittsburgh Development Fund. Other funding sources include the AFL-CIO Business Investment Trust and Fleet Bank. In addition, the Pittsburgh Cultural Trust, which owned the site, deeded it to Lincoln Property and subsi- dized a portion of the acquisition cost. URA ANNUAL REPORT 03–04

THE CITY OF PITTSBURGH has become a vital, vibrant center of advanced technology. The Urban Redevelopment Authority of Pittsburgh plays a key role in creating the environment for technology development and supporting City businesses on the cutting edge. The Authority also was active in 2003–04 in supporting the growth of young technology enterprises. Among the most promising:

SUPPORTING INITIATIVE [ Supporting Advanced Technology]

AETHON, INC., a North Shore robotics company that has system has been in development over 12 years at the created a low-cost, pilot-less, indoor hauling device called University of Pittsburgh’s McGowan Institute of TUG(tm) that enables hospitals to economically and reli- Regenerative Medicine. ALung has achieved a number of ably move supplies and equipment. TUG(tm) uses patent- important milestones and has reached the final stages of ed wireless technology to navigate, avoid obstacles and commercialization, which will include domestic and continuously track and correct its positioning. In 2003, European clinical trials. The company’s 46 shareholders Aethon completed a $3 million financing round led by local have invested a total of $1.65 million, with an additional investor Draper Triangle Venture, LP, then supplemented $850,000 raised through angel equity financing. that financing in 2004 with a preferred stock sale that Significantly, the U.S. Department of Defense has provided raised $7 million. To complement the private placements, $880,000 in financing. URA is assisting ALung’s growth the URA played a lead role in providing more than with a $109,880 PBGF loan. The state is participating $500,000 in public financing, including a $150,000 through $137,349 in financing through the Machinery and Pittsburgh Business Growth Fund (PBGF) loan and a Equipment Loan Fund. ALung’s current workforce of six is $250,000 Enterprise Zone competitive loan. Other funding expected to grow to 32 as commercialization progresses. sources include the Allegheny County Economic Development Department and Catalyst Connection. With JUNCTION HOLLOW R&D CENTER PHASE II, which will such customers as UPMC’s St. Margaret Hospital and feature development of a technology incubation facility as Magee-Women’s Hospital, the University of Maryland part of the Panther Hollow Technology Research and Medical Center and The University Hospital of Cincinnati Development Center adjacent to Carnegie Mellon already signed on for TUG(tm), Aethon expects to achieve University. Previously, the URA, the City of Pittsburgh, profitability in the immediate future. Allegheny County and the Pittsburgh School District collaborated on creation of a tax increment financing district ALUNG TECHNOLOGIES, INC., a South Side business that to help underwrite the first phase of the project, construc- will develop and market the Hattler Catheter, a break- tion of a 131,000-square foot facility atop a parking through artificial lung device that provides an alternative to garage. In 2004, the Commonwealth of Pennsylvania com- mechanical ventilation. By delivering oxygen to the blood mitted $5 million for the second phase. and removing carbon dioxide via a catheter, the Hattler Catheter can provide substantially safer and less expen- sive respiratory support than mechanical ventilation. The SUPPORTING INITIATIVES

ONE OF THE MOST CRITICAL OBJECTIVES of the Urban Redevelopment Authority of Pittsburgh is providing opportunities for disadvantaged groups to participate fully in the City’s business and residential growth. The Authority’s outreach encompasses both housing and business development, and it includes broad-based programs as well as targeted assistance.

SUPPORTING INITIATIVE [ Providing Opportunities for Disadvantaged Groups]

URA renewed this emphasis in 2004 through the The Authority also worked to meet the housing needs PITTSBURGH MINORITY AND WOMEN ENTERPRISE FUND of a special population by supporting the acquisition and FOR BUSINESSES (PMWEF), created in partnership with rehabilitation of a nine-unit apartment building in East Mellon Bank, National City Bank and PNC Bank and First Liberty. East Liberty Development, Inc., Sojourner House, Commonwealth Bank. PMWEF provides an alternative and Inc. and Negley Place Neighborhood Alliance are convert- supplemental source of financing for minority- and woman- ing the Hayes Street dwelling to six units of housing for owned businesses throughout the City that have demon- homeless, dually diagnosed women with children. strated growth potential. Sojourner House has successfully operated the “MOMS” Through PMWEF, companies may borrow from (Motivation, Opportunities, Mentoring, Spirituality) $50,000 to $250,000, with terms ranging from five years Program at a nearby East Liberty location for more than a to 10 years, for such needs as business and real estate decade. The Hayes Street initiative will expand the servic- acquisition, construction, equipment purchases and work- es available for this disadvantaged group. ing capital. To be eligible, businesses must provide cash For the $332,940 development, URA is providing equity of at least 10 percent and show commitments of $166,470 through the Rental Housing Development and public or private financing for at least 50 percent of total Improvement Program. Other sources of funding include project costs. In addition, recipients are required to utilize Mellon Bank and the Community Design Center. All six technical assistance to promote sound business practices. units will be reserved for households earning 50 percent or The URA manages the program and has provided less of the area median income. $800,000, with each participating financial institution contributing up to $500,000. The program is expected to jump-start promising minority- and woman-owned businesses which lack only that last portion of gap financing to achieve the next step in their growth. URA ANNUAL REPORT 03–04

2003–2004 [ URA Capital Budget ]

2003

SOURCE OF FUNDS USE OF FUNDS

URA Housing Bonds $ 26,500,000 39.2% Housing $ 32,512,500 48.0% URA TIF Bonds 11,210,000 16.6% Bedford 8,990,000 13.3% Other Federal Funds 11,244,000 16.6% Station Square 7,080,000 10.5% CDBG 7,960,000 11.8% Panther Hollow 4,130,000 6.1% State Funds 5,545,687 8.2% Business Development Center 3,550,000 5.2% Pittsburgh Water & Sewer Authority 2,800,000 4.1% Administration 3,391,500 5.0% City Capital Bond Funds 2,400,000 3.5% Other 3,150,000 4.7% Nine Mile Run 2,855,687 4.2% South Side Works 1,000,000 1.5% Residential Riverfront Development 1,000,000 1.5%

TOTAL SOURCES $ 67,659,687 100.0% TOTAL USES $ 67,659,687 100.0%

2004 SOURCE OF FUNDS USE OF FUNDS

URA Housing Bonds $ 19,650,343 34.9% Housing $ 26,541,828 47.1% HUD Grants 16,500,000 29.3% Bedford 13,000,000 23.1% HOME and Other Federal Funds 7,841,732 13.9% South Side Works 6,000,000 10.7% CDBG 5,790,000 10.3% Administration 3,290,247 5.8% State Funds 4,050,000 7.2% Other 2,250,000 4.0% Pittsburgh Water & Sewer Authority 1,500,000 2.7% Business Development Center 2,200,000 3.9% Other Bonds 1,000,000 1.8% East Carson Street 2,000,000 3.6% Uptown Revitalization 1,050,000 1.9%

TOTAL SOURCES $ 56,332,075 100.0% TOTAL USES $ 56,332,075 100.0%

SOURCE: 2003 CITY OF PITTSBURGH CAPITAL BUDGET PLUS TIF ACTIVITY 2004 CITY OF PITTSBURGH CAPITAL BUDGET FINANCIAL INFORMATION

2003–2004 [ Housing Programs] 31

PROGRAMS CLOSED / UNITS URA FUNDING PURCHASED

HOME REHABILITATION PROGRAMS

Home Improvement Loan Program 44 48 $ 656,082

Pittsburgh Home Rehabilitation Program 64 69 1,274,860

Homeowners’ Emergency Loan Program 37 37 241,155

Home Accessibility Program for Independence 7 7 21,715

Pittsburgh Party Wall Program 54 55 560,476

(Less Multiple Funding Sources) 1 1

Subtotal 205 215 $ 2,754,288

MORTGAGE ADMINISTRATION

Pittsburgh Home Ownership Program 225 229 13,391,941

Neighborhood Housing Program 32 32 1,300,402

Housing Recovery Program

Bond Loans 36 37 2,111,875

Deferred Loans 36 37 906,138

Lead Grants 35 36 202,202

HRP Developer-Deferred 28 29 841,265

Down Payment / Closing Cost Assistance 228 231 601,930

(Less Multiple Funding Sources) 325 330

Subtotal 295 301 $ 19,355,753

RESIDENTIAL DEVELOPMENT PROGRAMS

Pittsburgh Housing Construction Fund 51 315 8,424,170

Pittsburgh Development Fund 2 159 4,300,000

Community Development Investment Fund 9 51 490,000

Rental Housing Development and Improvement Program 27 1203 5,086,310

Rental Rehabilitation Program — — —

City Bond Funds /Other 1 289 —

Multifamily Revenue Bonds — — —

(Less Units with Multiple Funding Sources,

Units Previously Counted or Pre-Development Loans) 12 1154 —

Subtotal 78 863 $ 18,300,480

TOTAL 578 1379 $ 40,410,521

This report includes Pre-Development Loans URA ANNUAL REPORT 03–04

32 2003–2004 [ Housing Production BY Neighborhood ]

NEIGHBORHOOD LOANS UNITS URA FUNDING NEIGHBORHOOD LOANS UNITS URA FUNDING

Allegheny Center — — $ — Middle Hill 12 21 $ 311,321 Allegheny West — — — Morningside 5 6 309,474 Allentown 2 2 116,402 Mt. Oliver 5 5 188,371 Arlington 2 2 35,300 Mt. Washington 9 11 383,104 Banksville 2 2 112,750 North Oakland 2 15 206,500 Bedford Dwellings 3 3 65,828 North Shore — — — Beechview 12 12 525,028 Oakwood — — — Beltzhoover 15 15 472,710 Observatory Hill — — — Bloomfield 13 20 1,012,743 Overbrook 6 6 315,410 Bluff 5 11 263,238 Penn Main — — — Bon Air 2 173 4,000,000 Perry North 6 8 240,904 Brighton Heights 18 18 1,029,778 Perry South 18 20 445,253 Brookline 27 52 1,557,569 Point Breeze 2 2 95,026 California–Kirkbride 2 2 111,716 Point Breeze North 2 2 150,373 Carrick 17 18 730,630 Polish Hill 7 7 289,715 Central Business Ridgemont 2 2 48,988 District (CBD) — — — Shadyside 1 1 24,900 Central Lawrenceville 15 16 690,928 Sheraden 15 15 661,508 Central North Side 19 28 1,508,725 South Oakland 5 5 238,044 Central Oakland — — — South Shore — — — Chartiers City 3 3 112,803 South Side — — — Chateau — — — South Side Flats 11 22 750,157 Crafton Heights 5 5 192,855 South Side Slopes 12 12 438,951 Crawford Roberts 10 26 1,141,855 Spring Garden 7 7 330,553 Duquesne Heights 2 2 67,616 Spring Hill 5 5 137,671 East Allegheny 12 16 848,248 St. Clair 1 1 128,858 East Hills 9 129 896,699 Stanton Heights 9 84 266,088 East Liberty 5 12 152,505 Squirrel Hill North 1 1 11,605 Elliott 6 6 362,641 Squirrel Hill South — — — Esplen 1 1 29,066 Strip District — — — Fairywood — — — Summer Hill — — — Fineview 8 14 879,204 Swisshelm Park 3 3 72,915 Friendship 3 3 156,000 Terrace Village 2 2 104,810 Garfield 37 44 1,919,257 Troy Hill 6 272 99,540 Greenfield 6 8 266,409 Upper Hill 13 20 341,429 Hazelwood 11 11 421,855 Upper Lawrenceville 8 8 240,200 Highland Park 4 5 352,423 West End — — — Homewood North 12 12 507,811 West Oakland 22 28 1,257,167 Homewood South 15 38 630,994 Westwood 1 1 2,775 Homewood West 5 7 146,972 Windgap 1 1 3,612 Knoxville 7 7 187,896 Larimer 3 3 14,720 Lawrenceville — — — TOTAL 568 1,390 $ 33,225,277 Lincoln–Lemington 15 15 772,956 Lincoln Place 2 2 90,665 Plus Down Payment / Closing Lower Hill — — — Cost Assistance Grants 228 231 601,930 Lower Lawrenceville 8 26 1,399,061 (Less Multiple Units) –206 –189 Manchester 3 3 117,681 Marshall–Shadeland 23 25 1,228,518 TOTAL –206 –189 $ 33,827,207 FINANCIAL INFORMATION

2003–2004 [ For Sale Housing Developments ] 33

NEIGHBORHOOD DEVELOPMENT UNITS URA FUNDING TOTAL COST

Bloomfield 4913,4915,4933,5115-17 Penn Avenue 8 $ 401,339 $ 1,215,700 Central Business District 100 7th Street 151 4,000,000 36,637,000 Central North Side 112–118 Parkhurst Street 3 278,445 656,000 Central North Side Alpine II 7 384,340 1,345,500 Central North Side 314 Jacksonia 1 37,280 103,500 Central North Side 1726–28 Buena Vista Street 2 53,087 153,694 Crawford Roberts 708 & 714 Roberts Street 5 150,200 296,100 Crawford Roberts Roma Bottling 8 676,528 1,787,841 East Allegheny East Allegheny Scattered Sites 5 465,161 1,176,586 East Hills 405 Crestline Drive, 410 Crestline Court 2 96,217 304,386 East Hills Crestline II 4 203,070 674,572 East Liberty Rippey Street Development 3 96,000 270,067 Fineview 1902–20 Meadville St. & 1911–17 Meadville St. 7 527,087 1,526,549 Garfield Garfield Homeownership Choice Phase I-B 3 229,175 620,081 Garfield Garfield Homeownership Choice Phase 1-C 6 393,150 1,522,016 Garfield 409 N. Fairmount 1 64,469 156,000 Lower Lawrenceville Blackbird Artist Lofts–36th & Butler Streets 15 850,000 4,234,470 Lower Lawrenceville 3500 Block of Penn Avenue 5 335,000 1,004,500 Marshall–Shadeland 2907, 09 & 13 Shadeland Avenue 3 183,429 558,873 Marshall–Shadeland 3104 Frederick Street 1 46,137 98,000 Middle Hill Bedford Facades 3 94,895 94,895 Perry North 292–298 Watson Boulevard 2 55,000 55,000 Southside Flats South Shore Place Phase 4 4 83,760 852,400 Upper Hill Milwaukee–Clarissa Street Phase II 7 50,000 100,000 West Oakland 211 Dunseith Street 1 55,752 125,000 West Oakland Chesterfield Road Phase V 6 396,300 766,000

TOTAL 263 $ 10,205,821 $ 56,334,730 URA ANNUAL REPORT 03–04

34 2003–2004 [ Rental Housing Developments ]

NEIGHBORHOOD DEVELOPMENT UNITS URA FUNDING TOTAL COST

Bluff 1919 Forbes Ave., River City Flats 7 $ 100,000 $ 530,000 Brookline 1100 Creedmoor Avenue 26 384,827 3,330,127 Central Business District 341 Fourth Avenue 22 — 3,051,725 Crawford Roberts 2051 Rose 6 10,000 20,000 East Hills 2nd East Hills–Phase I 117 390,000 19,434,732 East Liberty Sojourner House MOMS Phase I 6 166,470 1,347,895 East Liberty 733 N. Highland Avenue 1 30,000 246,905 Homewood North 7108 Upland Street 1 13,250 21,533 Lincoln-Lemington-Belmar 1604 Worthington Street 1 13,250 26,000 Middle Hill Our Daughter’s Place 7 10,450 22,600 North Oakland Luna Lofts 410-416 Craig Street 14 150,000 1,878,285 South Side Flats 1505-07 East Carson Street 9 200,000 646,585 Stanton Heights 5301 Mossfield Street 76 225,000 12,509,059 Troy Hill The Ferchill Group, Heinz Lofts* 267 — 70,637,651

TOTAL 560 $ 1,693,247 $113,703,097

*URA amended LERTA tax abatement program specifically for this development.

PERFORMANCE HIGHLIGHTS

2003–2004 [ Business Development Center ]

BUSINESS SECTOR NUMBER OF URA PRIVATE OTHER PUBLIC TOTAL PROJECTS INVESTMENT INVESTMENT INVESTMENT INVESTMENT

Services 6 $ 569,000 $ 916,500 $ — $ 1,485,500 Advanced Manufacturing 4 992,000 3,663,973 632,500 5,288,473 Information Technology/Life Science 2 1,285,000 55,000 — 1,340,000 Real Estate Development 27 10,881,590 52,169,106 2,939,470 65,990,166 Retail 14 1,150,560 1,975,940 — 3,126,500 Medical Instruments & Devices 1 109,880 27,470 137,350 274,700 Wholesale/Distribution 3 650,000 1,233,444 — 1,883,444

TOTAL 57 $15,638,030 $60,041,433 $ 3,709,320 $ 79,388,783

MINORITY AND/OR WOMAN-OWNED BUSINESS ENTERPRISES Borrowers 18 African-Americans 8 Total Funding $2,421,460 Private Funds Leveraged $7,199,345 FINANCIAL INFORMATION

2003–2004 [ Business Development Center 35 AND Streetface Production BY Neighborhood ]

NEIGHBORHOOD LOANS URA FUNDING TOTAL COST NEIGHBORHOOD LOANS URA FUNDING TOTAL COST

Allegheny Center — $ — $ — Manchester —$ —$ — Allegheny West 1 18,700 43,400 Marshall–Shadeland — — — Allentown 1 44,100 119,000 Middle Hill 6 371,478 876,686 Arlington — — — Morningside — — — Banksville — — — Mt. Oliver — — — Bedford Dwellings 1 11,620 34,154 Mt.Washington — — — Beechview 2 580,000 1,833,200 North Oakland — — — Beltzhoover 1 100,000 192,080 North Shore 1 150,000 2,332,500 Bloomfield 3 61,780 343,230 Oakwood — — — Bluff 2 86,700 267,050 Observatory Hill — — — Bon Air — — — Overbrook — — — Brighton Heights — — — Penn Main 1 13,172 26,345 Brookline — — — Perry North 1 14,700 43,245 California–Kirkbride — — — Perry South — — — Carrick — — — Point Breeze — — — Central Business Point Breeze North 1 100,000 510,000 District (CBD) 6 1,874,100 24,918,118 Polish Hill — — — Central Lawrenceville 15 1,099,640 8,687,617 Ridgemont — — — Central North Side 1 13,090 50,470 Shadyside 1 200,000 4,001,680 Central Oakland 2 24,784 55,450 Sheraden 1 54,000 190,000 Chartiers City — — — South Oakland 1 1,250,000 1,250,000 Chateau 1 80,000 200,000 South Shore 1 100,000 100,000 Crafton Heights — — — South Side — — — Crawford Roberts 1 130,000 260,000 South Side Flats 21 6,123,530 20,509,308 Duquesne Heights 1 50,000 139,000 South Side Slopes — — — East Allegheny 3 199,503 570,257 Spring Garden — — — East Hills — — — Spring Hill — — — East Liberty 14 1,867,500 6,383,221 St. Clair — — — Elliott — — — Stanton Heights 1 50,000 94,444 Esplen — — — Squirrel Hill North — — — Fairywood — — — Squirrel Hill South — — — Fineview — — — Strip District 1 24,700 74,000 Friendship 1 50,000 100,000 Summer Hill — — — Garfield 7 132,041 497,143 Swisshelm Park — — — Greenfield — — — Terrace Village — — — Hazelwood 1 56,500 59,600 Troy Hill — — — Highland Park — — — Upper Hill — — — Homewood North — — — Upper Lawrenceville 8 162,100 696,222 Homewood South — — — West End 6 1,133,093 2,445,056 Homewood West — — — West Oakland 2 23,400 74,100 Knoxville — — — Westwood — — — Larimer — — — Windgap — — — Lawrenceville — — — Lincoln–Lemington 1 55,600 57,850 TOTAL 123 $16,613,306 $82,620,688 Lincoln Place — — — Lower Hill — — — Plus Allegheny County 1 512,000 1,255,973 Lower Lawrenceville 5 307,475 4,586,262 SBA 504 Loan

TOTAL 124 $17,125,306 $83,876,661 URA ANNUAL REPORT 03–04

[ URA Profile ]

The Urban Redevelopment Authority of Pittsburgh helps Under the direction of the Deputy Executive Director generate, stimulate and manage growth and development for Development, the Development staff is responsible for in the City of Pittsburgh. Created in 1946 to fight blight the planning, financing and management of major real through urban renewal, the Authority now carries out the estate development projects, that is, those having a signif- City’s major development projects, programs and activities. icant impact on land use and economic growth, such as The activities of URA are made possible through wide- South Side Works and Summerset at Frick Park. spread community support. This includes assistance from federal, state and city elected officials, as well as support FINANCE AND OPERATIONS DEPARTMENT from the U.S. Department of Housing and Urban Under the direction of the Deputy Executive Director– Development, the Pennsylvania Department of Finance and Operations the Finance Department is Community and Economic Development, the Pennsylvania responsible for the accounting and treasury operations of Department of Commerce, the foundation community, var- the Authority. It monitors bonds issued for Housing and ious departments within the City of Pittsburgh, and local Economic Development programs and performs ongoing community development corporations and neighborhood oversight of the Authority’s loan portfolio. The department organizations within the City. supports the information needs of both internal depart- URA currently has approximately 80 employees and ments and external constituencies, such as funding an administrative budget in excess of $3.2 million. It car- sources and regulatory bodies. ries out its work through its Executive Offices and the The Operations Department provides overall support departments and divisions described below, with support for the Authority and includes the staff and the divisions of from its Legal Department. Information Systems, and Internal Audit and Compliance and minority business enterprises and woman business enterprises activities. EXECUTIVE OFFICES

In addition to management and policy direction, the BUSINESS DEVELOPMENT CENTER (BDC) Executive Offices encompass a broad range of develop- The Business Development Center encourages and ment activities, including oversight of the Pittsburgh directs private investment in business and business facili- Economic and Industrial Development Corporation ties in Pittsburgh for the public interest. The BDC utilizes (PEIDC), the Pittsburgh Housing Development several revolving loan funds to provide below-market inter- Corporation (PHDC) and the Allegheny Pittsburgh est rate gap financing for: the acquisition of land, building Development Corporation (APBDC). construction and rehabilitation; equipment; leasehold improvements, and working capital. BDC also provides tax-exempt fixed asset financing for qualified borrowers. URA PROFILE

The BDC provides direct financing and administrative REAL ESTATE DEPARTMENT support for projects owned and managed by the Pittsburgh The Real Estate Department is responsible for all acquisi- Economic and Industrial Development Corporation, and it tion and disposition of properties for the Authority. The markets the Pennsylvania Industrial Development department works hand-in-hand with all other departments Authority loan program to qualified industrial firms on of the Authority in assembling sites for redevelopment. It behalf of PEIDC. also acts as agent for the City of Pittsburgh in assembling The Business Development Center performs site properties for City-sponsored projects. development analysis and manages the Authority’s neigh- PITTSBURGH ECONOMIC AND INDUSTRIAL DEVELOPMENT borhood commercial and industrial real estate develop- CORPORATION (PEIDC) ment projects. Also, the center offers advice on business URA provides staff and space for PEIDC, a state-licensed location and serves as a catalyst and advocate for busi- industrial development corporation that serves as a con- ness development in the City of Pittsburgh. duit for financing from the Pennsylvania Industrial Other important initiatives of the BDC include admin- Development Authority (PIDA) and other state programs. istration of the Mainstreets Pittsburgh program and the PEIDC acts as a last-resort real estate developer for indus- creation of the Technology Zone, the successor to the trial, commercial, high-technology and retail initiatives. Enterprise Zone Program. PITTSBURGH HOUSING DEVELOPMENT CORPORATION HOUSING DEPARTMENT (PHDC) The Housing Department is responsible for the operation An affiliate of URA, PHDC serves as a housing developer of all housing programs, and coordinates housing develop- in Downtown Pittsburgh and the City’s neighborhoods. ment activities and the design of housing policy for the The Authority provides staff and space. Authority. ALLEGHENY–PITTSBURGH BUSINESS DEVELOPMENT The department carries out redevelopment activities CORPORATION (APBDC) by providing below-market interest mortgage financing to This Small Business Administration-licensed corporation is promote homeownership and home improvement, by a conduit for SBA 504 debentures. URA provides staff and financing the new construction and rehabilitation of hous- space. ing for owners and renters, and by raising substantial funds through the issuance of mortgage revenue bonds. Another vital financing tool managed by the department is the Pittsburgh Housing Development Corporation, which assists neighborhood-based organizations with major housing development initiatives. In addition, the department concentrates on the revitalization of Pittsburgh’s older neighborhoods and housing stock and the attraction of new residents to the City.

ENGINEERING AND CONSTRUCTION DEPARTMENT The Engineering and Construction Department is responsible for the detailed planning, engineering and construction management associated with the Authority’s publicly supported development projects. The department also conducts site feasibility evalua- tions, establishes design guidelines for projects and programs, and reviews the design of development proposals submitted to the Authority. URA ANNUAL REPORT 03–04

[ URA Programs]

[ Business Development Center ]

PITTSBURGH BUSINESS GROWTH FUND STREETFACE Gap financing up to $150,000 for machinery and equip- Matching funds for façade improvement in designated ment, leasehold improvement and working capital for small neighborhood business districts. The program is also avail- businesses which create and retain jobs in the City of able in Downtown and the Cultural District. Pittsburgh. TAX INCREMENT FINANCING* URBAN DEVELOPMENT FUND Under Tax Increment Financing future increases in tax rev- Gap financing from $25,000 to $250,000 for the acquisi- enues generated by a project are pledged to finance cer- tion and development of real estate projects for non-owner tain project costs. TIF’s need the approval of all three local occupied real estate developments. taxing bodies.

SBA 504–ALLEGHENY PITTSBURGH BUSINESS INFRASTRUCTURE DEVELOPMENT PROGRAM DEVELOPMENT CORPORATION The Commonwealth of Pennsylvania program underwrites Long-term, fixed interest rate financing for owner-occupied infrastructure improvement through grants to municipali- projects in the City of Pittsburgh and Allegheny County. ties and development agencies that are transformed to Loans from $50,000 to $1,300,000. loans to businesses or developers. Loan repayments are recycled. INDUSTRIAL DEVELOPMENT TAXABLE AND TAX-EXEMPT BOND NOTES AND PEDFA, FAÇADE RENOVATION COMMUNITY DEVELOPMENT INVESTMENT FUND* Taxable and Tax-Exempt bond financing for equipment, The CDIF is designed to help nonprofit, community-based land, buildings and related costs for eligible businesses. organization undertake important real estate projects (res- Loans from $100,000 to $10,000,000. idential, commercial and industrial) by providing grants for equity. PENNSYLVANIA INDUSTRIAL DEVELOPMENT

AUTHORITY LOANS MAINSTREETS PITTSBURGH Pittsburgh Economic and Industrial Development The program provides self-help resources and program- Corporation- Low interest financing for real estate owned ming to selected neighborhood shopping districts. by or leased to PIDA-eligible businesses which include: manufacturing, industrial, research and development, regional or national headquarters, and others. Loans up to $1,750,000. URA PROGRAMS

KEYSTONE OPPORTUNITY EXPANSION ZONES* [ Housing: SINGLE FAMILY RESIDENTIAL ] Abates 100% of nearly all state and local taxes in state ELM STREET approved zoned areas for residential buyers and businesses. The program provides funds for neighborhoods near cen-

PITTSBURGH MINORITY AND WOMEN ENTERPRISE FUND tral business corridors and downtowns undergoing revital- A new program that will provide an alternative and supple- ization. It will allow communities to do commercial revital- mental source of financing to minority-and-women busi- ization and neighborhood restoration simultaneously. nesses located within the City of Pittsburgh to help their PITTSBURGH HOUSING CONSTRUCTION FUND businesses grow. The fund will provide loans for business Construction loan and grant “gap” financing for new con- acquisition, real estate acquisition/construction, equip- struction and/or rehabilitation of for-sale housing. ment purchase, working capital, and any combination of the aforementioned categories. NEIGHBORHOOD HOUSING PROGRAM Commitments made to developers to provide deferred PITTSBURGH ENTERPRISE/TECHNOLOGY ZONE mortgages to income eligible purchasers of URA financed Provides special business incentives and focused delivery new construction for-sale housing units. of technical assistance to businesses located within or relocating to a targeted “zone.” HOUSING RECOVERY PROGRAM (HRP) FOR DEVELOPERS Commitments made to developers to provide deferred DISTRICT IMPROVEMENT FUND* mortgages to income eligible purchasers of URA financed Maximum loan of $150,000 for working capital, machinery newly rehabilitated for-sale housing units. and equipment, leasehold improvements, including facade renovations, acquisition, construction and renovation of for-sale and rental housing. Project must be sponsored by [ Housing: MULTI-FAMILY RESIDENTIAL ] City Council Member or Mayor’s Office. MULTI-FAMILY REVENUE BOND PROGRAM

PITTSBURGH DEVELOPMENT FUND* First mortgage construction/ permanent financing for large Gap financing for small businesses which create and retain scale new construction and/or rehabilitation rental devel- jobs in the City of Pittsburgh. Working capital, equipment, opments. and leasehold improvements eligible. RENTAL HOUSING DEVELOPMENT & IMPROVEMENT

REAL ESTATE READINESS FUND PROGRAM Labor and material costs necessary to make aesthetic Flexible source of construction/permanent gap loan financ- interior improvements to commercial or potential commer- ing for the new construction and or rehabilitation of rental cial office space in order to make space marketable in des- housing. ignated Technology Zone.

PENNSYLVANIA SMALL BUSINESS FIRST Funding for small businesses, including: low-interest loan financing for land and building acquisition and construction; machinery and equipment purchases and working capital.

PENNSYLVANIA MACHINERY & EQUIPMENT LOAN FUND Low-interest loan financing to acquire and install new or used machinery and equipment or to upgrade existing machinery and equipment

* Can be used for commercial, residential, or mixed-use projects. URA ANNUAL REPORT 03–04

[ Housing: SINGLE AND MULTI-FAMILY ] [ Consumer Improvement Loans ]

PITTSBURGH DEVELOPMENT FUND HOME IMPROVEMENT LOAN PROGRAM Flexible source of construction/permanent gap loan financ- Easy, low fixed rate, 20 year term home improvement loan ing for the new construction and/or rehabilitation of rental with no equity requirements for City of Pittsburgh home- and for-sale housing. owners. In some areas of the city there are no income lim- its for borrowers. COMMUNITY DEVELOPMENT INVESTMENT FUND

Source of equity financing to assist community-based PITTSBURGH HOME REHABILITATION PROGRAM organizations in participating in real estate development Provides 2.5% fixed rate, no equity financing for home projects that provide housing and/or job creation opportu- improvements. Program is for low income homeowners in nities. the City of Pittsburgh. Grant funds are available.

ACT 42 NEW CONSTRUCTION/IMPROVEMENTS HOUSING RECOVERY PROGRAM Allows a 100% abatement of city, County and School Homeowners who need to make substantial repairs to taxes on new construction housing and substantial rehabil- their homes can receive a low 30 year fixed rate, first mort- itation housing for the entire City of Pittsburgh. gage money for renovations. Borrowers must refinance any existing mortgage debt. Qualified borrowers can receive interest free, deferred second mortgage money [ Consumer Home Financing ] towards the project costs.

PITTSBURGH HOME OWNERSHIP PROGRAM HOMEOWNERS’ EMERGENCY LOAN PROGRAM (HELP) Provides below market rate first mortgage financing for the HELP’s 0% loans enable homeowners to repair major purchase of new or existing housing in move-in condition defects considered health and safety hazards. Loans up to in the City of Pittsburgh. Down payment/closing cost $5,000 are available to very low-income households. assistance grant funds are available for all borrowers.

PITTSBURGH PARTY WALL PROGRAM (PPWP) HOUSING RECOVERY PROGRAM PPWP provides assistance to qualified property owners Provides mortgage financing to purchase and rehabilitate, for the reconstruction of exposed party walls on residen- or to refinance and renovate older properties in the City of tial row structures. Through PPWP, URA offers grants to Pittsburgh. Interest free deferred, second mortgage low-income homeowners, and to landlords of rental prop- money is available for qualified borrowers. Down pay- erties where a majority of the tenants are of low income. ment/closing cost assistance grant funds are available.

HOME ACCESSIBILITY PROGRAM FOR INDEPENDENCE SECOND MORTGAGE FINANCING (HAPI) Interest free, deferred second mortgage financing to help HAPI provides 0% loans and grants up to $5,000 to assis- purchase a newly constructed or rehabilitated single fami- tance homeowners and tenants with disabilities make ly home. Financing is only available towards the purchase minor to moderate home access modifications. The pro- of a URA-financed single family home. gram is targeted to those who do not qualify for other financing programs. Tom Murphy Mayor, City of Pittsburgh

BOARD OF DIRECTORS Thomas E. Cox, Chairman David E. Epperson, Ph.D., Vice Chairman Dan B. Frankel, Treasurer Claire Staples, Member Sala Udin, Member

EXECUTIVE STAFF

Mulugetta Birru, Ph.D., Executive Director 1992 to 7/31/2004 Jerome N. Dettore, 2003–2004 [ URA Board of Directors] Acting Executive Director, 8/1/2004–12/31/2004 and Deputy Executive Director for Development 1/1/2003–8/1/2004 Constance L. Eads, Deputy Executive Director, Finance and Operations Joseph Gariti, General Counsel John E. Coyne, Director, Engineering and Construction Thomas E. Cummings, Director, Housing Charles M. Powell, Director, Administration Susan Malys, Manager, Real Estate Robert Rubinstein, Acting Director, Business Development Center David E. Epperson, Ph.D., Dan B. Frankel, Claire Staples, Sala Udin, David Thomas, Board Member Board Member Vice Chairman Treasurer Manager, Pittsburgh Economic and Industrial Development Corporation Thomas E. Cox, Jerome N. Dettore, Chairman Acting Executive Director

DESIGN WOLFE DESIGN

PHOTOGRAPHY DAVID ASCHKENAS

WRITING EVAN PATTAK

PRINTING BROUDY PRINTING URBAN REDEVELOPMENT AUTHORITY OF PITTSBURGH 200 ROSS STREET PITTSBURGH, PA 15219 (412) 255-6600 WWW.URA.ORG