First National Bank may get more state aid for new headquarters at former arena site
First National Bank could be in line for another $4 million in state funding to help with the development of its 26-story headquarters at the former Civic Arena site.
That’s on top of the $6 million state redevelopment assistance capital (RACP) grant the North Shorebased bank received in the latest round of funding announced last month.
The potential for more RACP funding was disclosed in a release Monday in which Gov. Tom Wolf praised the FNB project as a “critical anchor to a major redevelopment site in the city of Pittsburgh.”
“This development will provide more than just a safe, state-of-the-art working space for thousands of employees in Western Pennsylvania, it will benefit the surrounding community and actively engage minority and women-owned businesses in the area,” he said in a statement.
According to the release, FNB was encouraged to apply for $10 million in RACP funding in a proposal from the state’s Department of Community and Economic Development, which oversees the program.
Casey Smith, DCED communications director, said an offer letter signed by FNB in October provided $10 million for the project — $6 million to be awarded in the latest round and $4 million to be allocated in the next round in 2021.
The $10 million represents two -thirds of the $15 million in RACP funding the bank had requested in its application last year. FNB itself has committed to investing more than $220 million in the project, according to the governor’s office.
FNB Financial Center will feature 471,890 square feet of office space. The bank is expected to take more than 160,000 square feet spread over nine floors, with options to expand. The building also will include
20,000 square feet of retail space and two levels of parking.
Jennifer Reel, bank spokeswoman, said the support is “necessary to continue FNB’s investment in the project in a post-COVID economic environment.
“We believe this is a priority project for the city and region because it creates several thousand construction and permanent jobs, generates millions in tax revenue and helps restart our economy at a critical moment,” she said.
“Our project required thoughtful collaboration with state and local government, as well as our business partners and members of the community, and we are excited that this development will provide significant value and opportunities for all of our stakeholders,” added Vincent J. Delie Jr., FNB chairman, president and CEO.
FNB was not the only one to receive funding in the latest round of RACPs for arenarelated development.
The Pittsburgh Penguins, who hold the development rights to the site, received $4 million for the construction of a community shared parking district.
In addition, the city’s Urban Redevelopment Authority, which owns part of the arena site, got $3 million to use toward construction of a superstructure that includes 420 underground parking spaces.
That project is part of a larger development being proposed by the Penguins and developer Buccini/ Pollin Group that includes an indoor and outdoor music venue to be operated by Live Nation and an 850-space parking garage.
The RACP money is in addition to the tens of millions of dollars in public funding that have been poured into the site for infrastructure improvements, including construction of a park over Interstate 579.
No development has taken place on the land. The team, which won the property rights in the 2007 deal to build PPG Paints Arena, insists that will change this year.
Kevin Acklin, the Penguins chief operating officer, said he expects the FNB office project to break ground this summer. The building is a joint venture between the team, the bank and Buccini/ Pollin.
He said they will be seeking final approvals for the project from the URA, the Pittsburgh- Allegheny County Sports & Exhibition Authority, which also owns part of the site, and the city planning commission over the next few months.
“We thank Gov. Wolf for his strong support of the FNB headquarters project, which will create thousands of immediate construction jobs, leverage a billion dollars in further private investment, create millions in state and local tax revenues and serve as an economic catalyst to help the Pittsburgh region recover from the COVID- 19 pandemic,” Mr. Acklin said.
Last month, the URA and SEA rejected a request by the Penguins to extend the deadline to April 30 to buy the land needed for the FNB tower, the music venue and the parking garage. The team requested the extension after missing an Oct. 22 deadline for taking control of 6.45 acres, blaming the COVID-19 pandemic. Because the request for more time was rejected, the Penguins could lose 20% of the revenue they generate by parking cars at the site unless they are able to develop 10.75 acres over the next three years.
FNB has pledged to advance $11 million in funding designed to go to the middle and upper Hill through tax revenue generated by development at the former arena site. In all, more than $40 million is estimated to go to other parts of the Hill through projects built on the 28 acres.