Macy’s developer hopes to pick up pace with power restored
Gordon Sheffer signed a long term lease last fall with high hopes of opening the first restaurant in the former Macy’s/Kaufmann’s department store redevelopment by April 1.
It’s now nearly mid June and Mr. Sheffer still hasn’t opened Waffles, INCaffeinated — all because the building has been without a permanent power source. He can’t even hire anyone because he doesn’t know when he will be able to finally welcome customers.
“It’s sort of like being in limbo,” said Mr. Sheffer, the owner of the restaurant chain.
That delay isn’t the only one plaguing the Smithfield Street landmark, once the grande dame of Downtown department stores.
During a tour of the building in November, Philadelphia-based Core Realty said it hoped to have the first of 311 apartments planned as part of the $100 million project available by the end of the year.
That has not happened. Michael Samschick, Core’s president and CEO, said Thursday the opening is now four to six weeks away.
In addition, a 160-room Even Hotel on floors five and six of the 13-story building has yet to debut. At one time, Pittsburgh Reception Hotels and Resorts, the developer behind it, had hoped to open the hotel in late March. It has yet to do so. A representative could not be reached for comment Thursday.
The culprit apparently has been a lack of permanent power to the building — an issue that has led to finger-pointing between Core and Duquesne Light over who has been responsible.
By Thursday, the two sides struck a more diplomatic tone.
Ashlee Yingling, a Duquesne Light spokeswoman, said the utility recently installed six new underground transformers to deliver “safe, permanent and reliable power to the building.
“Once we received notice that the customer completed the necessary electrical work inside the building and obtained wiring approvals from the city, we were able to connect the building to permanent power on Tuesday night,” she wrote in an email.
When asked why it took so long, Ms. Yingling emphasized, “Duquesne Light hasn’t missed any deadlines and connected permanent power to the building earlier this week.
“We are not responsible for the delay in the opening of this building,” she said.
Mr. Samschick said Core is “done complaining.”
“We’re past it. Hopefully, going forward we can work hand in hand with them so that we can have a very quick pace,” he said. “We have power now. It’s no longer about yesterday.”
The delays are the latest issue to plague the longawaited redevelopment in the heart of Downtown. The building, with its famous clock at the corner of Smithfield and Fifth Avenue, is known by generations of Pittsburghers and was once the flagship of the Kaufmann’s department store chain.
An electrical vault fire in July 2016 forced Core to replace transformers, switch gear and various systems and slowed progress. The developer also came under fire at one point for conditions outside the building before taking steps to improve them.
Mayor Bill Peduto recently weighed in on the delays, attributing them to Core hiring “the lowest paid workers that they could.”
“What they found out is that work doesn’t get done as well as when you hire highly skilled workers to do the job. Hopefully, it’s been a lesson learned and one they can avoid in the future,” he said, calling the project “a linchpin in the development of Downtown.”
Mr. Samschick said Thursday he has nothing but respect for the city and its unions. He stressed that he is hoping the delays are in the past.
With permanent power in place, the developer should be able to move quickly to get the apartments and Waffles, INCaffeinated up and running, Mr. Samschick said. He estimated it will take four to six weeks to test the power to the various systems. Core now is shooting to have the first residents move in by Aug. 1.
It also is planning to address the building’s exterior — parts of which still are grimy and in need of cleaning. It will be replacing cracked windows and installing new sidewalks and curbs. It also plans to clean and restore the original look of the facade below the big display windows.
Core is now running a display related to the Andy Warhol Museum in the Smithfield Street windows, which were professionally cleaned courtesy of the Pittsburgh Downtown Partnership. Longer term, it hopes to continue to treat Pittsburghers to holiday displays.
“It’s a treasured tradition. It is something we would like to revisit again,” said Michaela Robbins, Core’s regional director.
Mr. Sheffer is hoping better days are ahead. When he first complained to Core, he had a hard time getting answers, but communication with Mr. Samschick has since improved.
“It’s very frustrating. We’re a small company. Not being able to open while you have a debt is frustrating. It’s a strain on cash flow. That’s basically the long and short of it,” Mr. Sheffer said.
He now hopes to open in August.
Core purchased the 13story building for $15 million in 2015. Besides the hotel and apartments, which are expected to start at about $1,200 a month for one-bedroom units, the developer is planning 120,000 square feet of retail on the first two floors.