Pittsburgh’s big venues stand to receive $800,000 from RAD

Board unveils record $108.5 million budget

The Allegheny Regional Asset District would supply $800,000 for capital repairs and improvements to Pittsburgh’s three sports venues and the David L. Lawrence Convention Center in 2019 under a $108.5 million preliminary budget unveiled Wednesday.

Next year’s budget would be the 25th for RAD since its inception, and the board has decided to mark the occasion with a record spending plan — one that would provide 131 operating and capital grants to 104 organizations.

The budget would be the first in RAD’s history to top $100 million. It is funded through a 1 percent county sales tax, with half going to RAD and half to local municipalities and the county.

“When we cross over $100 million, we do it with style,” RAD board chairman Dan Griffin said of the proposed budget, which would be 8.5 percent higher than this year’s.

Grant recipients would include local arts and cultural groups, libraries, parks, transit and key attractions like the Pittsburgh Zoo & PPG Aquarium, the National Aviary, the Carnegie museums, and Phipps Conservatory and Botanical Gardens.

In addition, the board’s allocation committee is recommending a new $2.5 million grant project called “This is RAD!” The $2.5 million was selected to coincide specifically with the 25th anniversary.

Grants in that program are to be awarded for special onetime projects that would help to transform organizations or to help them “grow in a way that would not be possible with incremental funding,” Mr. Griffin said.

“It’s like the renovation of a house. It’s a one-time thing, but it will benefit you” for many years, he said.

The $800,000 included in the budget for capital repairs and improvements to Heinz Field, PNC Park, PPG Paints Arena and the convention center represents about two-thirds of the $1.16 million that the Sports & Exhibition Authority, owner of the venues, had requested for establishing the multifacility fund.

Mr. Griffin said $800,000 was “more in line with what we thought we could do and not affect the other assets.”

SEA officials had proposed that RAD use funds previously dedicated to pay off debt for improvements made at various points to the former Civic Arena, which was demolished several years ago. The final debt payment, $685,000, was made in July.

The $800,000 would be in addition to the $13.4 million RAD provides annually to pay off the debt related to the construction of Heinz Field and PNC Park.

Mr. Griffin said he expects the SEA request related to the multifacility fund to be an annual one. “Right now, we’re committing to this year,” he said.

Pittsburgh Mayor Bill Peduto said earlier this month he would support the use of RAD money for repairs and improvements to the venues as long as the “teams were willing to put up match money against it for the future.”

The new fund would supplement individual capital reserve funds currently in place for all three of the sports venues. The Heinz Field and PNC Park accounts are financed through ticket surcharges, and the PPG Paints fund through Pittsburgh Penguins rent payments.

Mary Conturo, SEA executive director, has said the multifacility fund is needed to support those venues and the convention center as they age. Heinz Field and PNC Park opened in 2001, the convention center in 2003, and PPG Paints in 2010.

She said Wednesday the SEA was “very appreciative” of the $800,000 included in the preliminary budget and did not plan to ask the RAD board to increase the amount at a public hearing on the spending plan Oct. 18.

The Pirates and the Steelers have clashed with the SEA in the past over various improvements and repairs to their venues. They also have questioned whether the reserve funds are sufficient to meet growing capital repair and improvement needs.

Frank Coonelly, the Pirates president, described the proposed RAD allocation a “good first step.”

“The three sports facilities are among our region’s most important assets, driving incredible economic activity and generating significant tax dollars for the city and the county. We appreciate the RAD board’s recognition that these regional assets must be maintained as world-class facilities,” he said.

“We think it’s a step in the right direction, but we don’t have any details on how it is going to be used,” added Burt Lauten, Steelers spokesman.

David Morehouse, CEO of the Penguins, said, “It is encouraging to see that RAD acknowledges the importance of these three unique facilities and, in particular, their contributions to the region. They all have a positive impact on the economy, create visibility and attract visitors to the region and provide a sense of community.”

Despite the controversy that has surrounded the taxpayer support for the two North Shore sports venue, Mr. Griffin said only 7.5 percent of the revenue generated by the sales tax goes for that purpose. The SEA funding would be a small fraction of the overall 2019 RAD budget, which would increase operating grants to 83 of the region’s cultural and recreational organizations.

Budget highlights include $947,000 in increased support for the region’s libraries, nearly $3.4 million in new capital projects for regional parks and trails, and $835,000 in capital grants for the zoo, aviary and conservatory.

RAD also would continue to provide a $3 million matching grant for the Port Authority, part of a $35.3 million local pool used to leverage $234.3 million in state support.

The preliminary budget would be funded through an estimated $101.5 million in sales tax revenue, with the rest coming from RAD reserve funds.

“It’s a year where we have a lot of money and we were very thoughtful in looking at our assets and wanting to meet their needs as much as possible,” said Dusty Elias Kirk, board vice chairwoman and an allocations committee member.

Awards could change before a final vote in November, the allocations committee cautioned.