Demolition underway at Penn Plaza

Advocates plan rally at site on Thursday

Demolition has begun at the remaining Penn Plaza apartments in East Liberty, the site of a long-running dispute between the city and a developer that has grown into a flashpoint for broader issues of affordable housing in Pittsburgh.

A group of affordable housing advocates, and former Penn Plaza tenants and their families and supporters, will rally at the site, at 5600 Penn Ave., at noon Thursday. A planned redevelopment at the site displaced residents, many of whom were elderly and low-income.

Timothy McNulty, a spokesman for Pittsburgh Mayor Bill Peduto, declined to comment Wednesday, citing a court-imposed gag order in

litigation between the city and developer.

Jonathan Kamin, attorney for developer LG Realty Advisors and its Pennley Park affiliate, acknowledged that demolition had started. He said it is expected to take a couple of months.

“We are the first and only developer to make a strong commitment to affordable housing,” he said, referring to an agreement to commit 50 percent of the tax increment from a proposed redevelopment to an affordable housing fund.

He added the agreement was reached after months of negotiations with the Penn Plaza tenant council, “who actually represent the tenants. We abided by all of our commitments and will continue to do so.”

The city is suing Pennley Park, alleging it engaged in demolition activity at the site — in violation of a 2015 memorandum of understanding — while residents were still living there and failed to provide proper heat for residents who had remained.

Pennley Park filed a counterclaim, charging that it sustained more than $10 million in damages after Whole Foods Market, which was to anchor a planned redevelopment, announced that it would pull out of the project because of concerns raised by the community and the mayor.

The last Penn Plaza residents moved out March 31.

Adam Smeltz and Mark Belko contributed. Kate Giammarise: kgiammarise@post-gazette.com or 412-263-3909 or on Twitter @KateGiammarise.

Steph Chambers/Post-Gazette A planned redevelopment at the former Penn Plaza apartments site displaced residents, many of whom were elderly and low-income.