Penguins planning entertainment hub at former arena site
Pittsburgh Post-Gazette
A live music venue would anchor a destination entertainment district that’s in the works as part of the Pittsburgh Penguins’ plans to redevelop the former Civic Arena site in the lower Hill District.
The hockey team is working with Philadelphia developer Core Realty on the 250,000-square-foot concept, which also is expected to include a hotel, a movie theater, a bowling alley, a comedy venue, perhaps a virtual reality experience, restaurants, bars and cafes.
Although Travis Williams, the Penguins chief operating officer, would not identify the developer involved, the Post-Gazette has learned it is Core, the firm behind the redevelopment of the former Macy’s/Kaufmann’s department store Downtown.
The Penguins plan to submit a letter of intent to the PittsburghAllegheny County Sports & Exhibition Authority and the city’s
Urban Redevelopment Authority early next year to get the entertainment complex rolling.
It’s one of the projects Mr. Williams said Wednesday the Penguins are ready to act on now that they have come to terms with the city on a new deal governing redevelopment of the site.
That tentative agreement — which has raised some concerns and criticism — will be voted on Thursday by the boards of the SEA and URA, the owners of the 28acre arena site. The Penguins won development rights to the land in the 2007 deal to build PPG Paints Arena.
“We’re really on the cusp of being able to move forward on multiple fronts, and with this amendment, we’ll be able to make that happen,” Mr. Williams said.
The music venue would be centrally located in the lower part of the site bordered by Washington Place and Centre Avenue.
It would be built next to open space that could be used for outdoor movies and to show Penguins playoff games. The team views the space as similar to Bryant Park in New York City.
The developer involved “has a track record of developing retail and entertainment complexes in urban settings,” Mr. Williams said.
“They have relationships with promoters who are interested in live music venues in Pittsburgh,” he said. “They are looking to put a live music venue in Pittsburgh with this promoter, and our site is ideal for this and is an ideal anchor for a destination entertainment complex.”
In Philadelphia, Core has been involved in the redevelopment of the Fishtown district — bringing in a company to operate a complex that features bowling lanes, a nightclub, a restaurant and bar, and other amenities. The developer was also behind The Fillmore, a 2,500person capacity live music club.
Mr. Williams envisions the Pittsburgh venue serving as a complement to the 160-plus events a year that take place at PPG Paints Arena. “It will drive activity 365 days a year on that site,” he said.
The Penguins have been criticized by Mayor Bill Peduto for not doing enough to get development started. URA board member Jim Ferlo, frustrated over delays, has said the city should try to use eminent domain to take the development rights back.
Mr. Williams said the team has been working behind the scenes on multiple fronts.
The Penguins have signed a letter of intent with a minority developer. It is believed to be a joint venture led by KBK Enterprises, which would handle 250 of the 1,000 residential units planned for the arena site. KBK will be working with St. Louis-based McCormack Baron Salazar, the lead developer on the housing component.
The current plan calls for McCormack Baron to build the first 250 apartments units in a four- to five-story building in phase one on a parcel just below Crawford Square. KBK will follow with another 250 units in a similarly sized building on an adjacent parcel in the second phase.
Another 500 units will be developed by McCormack Baron on the upper part of the site abutting Crawford Street and Bedford Avenue in the third phase.
Design charrettes for the first phase of the housing should start in December, Mr. Williams said. Construction is expected to start in late 2018 under the latest timetable. It originally was to start early next year.
Under the tentative agreement reached with the city, 20 percent of the units will be affordable for 35 years to households earning 60 percent or less of the area median income.
Between the first phase of the housing and the land needed for the music venue, the Penguins should be able to meet the requirement in the new deal that the team have 6.45 acres under development by 2020, Mr. Williams said. If they don’t, they risk losing part of the parking revenue they receive from the site.
The Penguins also are in discussions with potential office tenants, although no deals have emerged.
The team asked that the arena property be considered for Amazon’s proposed second headquarters should the Seattle e-commerce giant choose Pittsburgh. In all, 500,000 square feet of office space is planned for the site.
Penguins officials had reached a deal with U.S. Steel in 2014 to build a new headquarters on the arena property. But the Pittsburgh steelmaker backed out because of financial woes. Had it not, U.S. Steel probably would have been moving into the building by now.
Mr. Williams said the new agreement, if approved, should help advance development more quickly. It ends an appraisal process for valuing the land that both sides have said was a factor in stalling development.
Now the Penguins will exchange about $14 million in credits obtained in the 2007 deal for the 17 to 18 acres of land to be developed. Under the old agreement, the city would have had to pay the team in cash for any unused credits at the end of the 10year development period.
The new agreement would give the Penguins another year, until Oct. 22, 2025, to develop the site, although that could end up being extended to 2028 under certain scenarios.
Despite the criticism the Penguins have endured for the lack of progress on the site, they “have always been and remain committed to making this a premier development for the region, one that everyone can be proud of and everyone can benefit from,” Mr. Williams said.
He vowed that the Penguins are ready to go with deals in place to start development in earnest if the new agreement is approved. “This is ripe right now,” he said.