City school board OKs tax diversion plan for Strip District development

Pittsburgh Post-Gazette

The proposed tax increment financing plan for upgrades in the Strip District took another step forward Monday as it received formal approval from the Pittsburgh Public Schools board.

The board voted unanimously to approve the plan, or TIF, which would divert several million dollars in new taxes toward public improvements as part of the redevelopment of the historic produce terminal on Smallman Street. The plan next needs to be approved by the city and Allegheny County.

The work is meant to bolster pedestrian access, safety and circulation amid the terminal project. Under the TIF, the Urban Redevelopment Authority would divert 75 percent of new property tax revenue from the produce terminal and an adjacent redevelopment over 19 years to pay off a $3.5 million loan, including principal, interest and fees.

Chicago developer McCaffery Interests plans to convert the five-block-long terminal on Smallman into a food-centric market to include restaurants, fitness space and retail. The company also is seeking to convert a building at 1600 Smallman St. into office and retail space.

CEO Dan McCaffery has estimated his total investment at $100 million. The effort is projected to create more than 600 permanent jobs, according to estimates discussed by the URA board.

The school board initially rejected the plan in a 4-4 vote in 2016.