City, Steelers, Pirates near development deal on North Shore lots

A comprehensive deal is in the works to develop the last two large tracts of land on the North Shore between Heinz Field and PNC Park, including one that Mayor Bill Peduto had accused the Steelers of using as “an ATM” to park cars.

The new agreement would involve Gold Lot 4 next to the Hyatt Place hotel and Gold Lot 2, located at the corner of West General Robinson Street and Chuck Noll Way directly behind the North Shore Place I and II office complex.

“The city and stadium authority are working cooperatively with the Pirates and Steelers on a comprehensive agreement on the remaining parcels on the North Shore,” said Dan Gilman, Mr. Peduto’s chief of staff.

“While final details are being negotiated, all parties are working well together to wrap this up and get shovels in the ground.”

As part of the deal, Continental Real Estate Companies is expected to get more time to start work on Lot 4, where it is planning a condominium, office and retail project, said Barry Ford, the firm’s president of development in Pittsburgh.

Columbus, Ohio- based Continental, which was hired by the Steelers and the Pirates to develop the land between the two sports venues, has until Aug. 30 to “take down” or buy the stadium authorityowned Lot 4 near PNC Park.

But Mr. Ford said he is expecting that deadline to be extended, as Continental finalizes its plans for the development.

And in an interview last week, Mr. Peduto said the Steelers ( and Continental) would be granted an extension to develop Lot 2 for housing while being given a firm deadline to do so.

If the team does not develop by the fixed date, the land would revert back to the stadium authority, which would be free to hire a new developer to take on a project, he said.

“I think we’re in an agreement,” the mayor said. “It will be a combination between giving them an extension for it, but at that time when the extension ends, it will turn back over to us and we get a new developer.”

Two months ago, Mr. Peduto charged that the Steelers were refusing to develop the 200- space parking lot because the team wanted to use it “for eight days a year for the purpose of tailgating.”

The lot, owned by the stadium authority, is leased to Alco Parking.

For Steelers games, Alco gets half the revenue and the authority gets the other half, with that

portion going directly to the football team. The same arrangement applies for Pirates games, with the baseball team getting the authority’s share of the revenue.

Mr. Peduto said the city is requiring the teams and Continental to develop Lot 2 for housing, which has become a priority for the mayor for the North Shore. Mr. Ford declined to confirm that, saying, “I’m not ready to go there.”

Under their current agreement with the stadium authority, the Steelers and the Pirates have the development rights to Lot 2 until May 2021.

Parcels not developed by then typically would revert back to the stadium authority unless extensions were granted. But Mr. Peduto seemed to suggest that any new extension would be the last on that parcel for the teams.

The priority at the moment, Mr. Ford said, is Lot 4. He added the goal is to get an agreement for its development signed with the city within the next couple of weeks.

“We’re moving forward in good faith and started the planning process for Lot 4, and everyone loves it,” he said.

Continental is planning a multistory building, perhaps as many as eight stories, with up to 40 or so condos at the top and offices and retail below the residential.

Part of the proposed development, Mr. Ford has said, also would include a “really cool entertainment and retail piece” near the home plate entrance to PNC Park.

Development likely won’t start until well into the fall or the end of the year, Mr. Ford said, thus the need for another extension, the third that would be given by the stadium authority for Lot 4.

The Steelers declined comment, referring questions to Mr. Ford.

Development of Lots 4 and 2 likely would require additional structured parking on the North Shore, although it is unclear who would pay for it or where it would be.

Lot 2 is located directly behind the Burgatory, Bar Louie, Southern Tier and Tequila Cowboy restaurants. The Pittsburgh PostGazette newsroom is located in the North Shore Place I and II complex.