Office tower change gets support
Oakland group says it backs scaled-down plan
A Baltimore developer has picked up a key endorsement for a plan to cut three floors from a proposed office tower it is seeking to build on Forbes Avenue in Oakland.
The board of directors of Oakland Planning and Development Corp., which strongly opposed Wexford Science + Technology LLC’s original plan to erect a 13story building, is backing the revised proposal for 10 floors as well as a new community benefits agreement accompanying it.
In an update posted March 25 on the organization’s website, the board stated that it believes it’s in the “community’s best interest” to do so at this time, in part because of possible negative outcomes involving ongoing litigation over the development.
Wexford Science + Technology has filed an appeal to Allegheny County Common Pleas Court seeking to reverse a Pittsburgh Zoning Board of Adjustment ruling denying the company a variance and two special exceptions for the project.
The judge in the case has ordered the parties involved to try to work out a settlement, prompting Wexford to revise its proposal to reduce the height of the office and research tower at 3440 Forbes Ave. from 188 feet to 153 feet.
According to the update, OPDC and city legal teams have concluded that there is a “significant chance” that the court could reverse the zoning board’s ruling and allow Wexford to construct a building at least 153 feet high without a settlement.
In that event, Oakland Planning and Development Corp. would lose out on the proposed community benefits agreement, which includes an upfront cash payment of $400,000 to support community needs and another $100,000 for a senior homeowner program.
“OPDC has weighed the risks (especially the very real risk of not receiving any community benefits if an agreement is not settled out of court), and believes accepting Wexford’s CBA is the most advantageous decision to receive the highest amount of benefits made available to the community,” the update stated. “We also appreciate that they increased their proposed benefits to the residents of Oakland.”
Wanda Wilson, OPDC executive director, said the board’s recommendation was made pending
community feedback. She expects to discuss the issue and the community feedback with the board this week and determine next steps.
In addition to the $500,000 in payments, the proposed CBA would include an annual contribution of about $36,000 toward the Oakland Community Land Trust for a period of 20 years.
Wexford also has committed to the development of a transportation strategy to encourage the use of public transit, bicycling, walking, ride sharing, and car and van pooling to try to curb traffic and parking concerns.
It will work with Oakland Planning and Development Corp. to hire locally and craft strategies for minority- and womenowned business participation in the project.
“During discussions with Wexford, OPDC negotiated the strongest benefits possible. The CBA includes more resources than earlier offers,” the update stated. “Our goal is to leverage development to address the needs of the Oakland community and generate resources to meet those needs.”
Wexford’s revised proposal will eliminate two floors of offices and one floor of parking, said John Grady, the company’s senior vice president. The compromise was reached after discussions with OPDC and others in the community.
“We think we’ve come to a good agreement where we would lower the height of the building, reduce the density of the building, and still bring a significant job base and significant investment into the community,” he said.
Even with the cuts, the building provides the “right combination of height and rentable square feet and the ability to be successful in the market,” Mr. Grady added.
The sweetened community benefits agreement also would give Oakland community groups free use of conference-roomtype space on the first floor of the building.
Despite uncertainty in the real estate community and construction halts caused by the COVID-19 pandemic, Wexford is still committed to the project, he noted. If a settlement is reached, the company would like to get started on construction by the end of the year, depending on what happens with the coronavirus.
Wexford likes the Pittsburgh market because of its innovation community and the strong academic research centered around local universities.
“We invest for the long term,” Mr. Grady said. “We think for the long term Pittsburgh has really strong fundamentals.”
Wexford also is developing the UPMC Immune Transplant and Therapy Center on Baum Boulevard in Bloomfield in a historic 353,000-square-foot building where Model T Fords once were assembled.