City council tentatively OKs TIF plan for Hazelwood project
A vision to coax Hazelwood's economic transformation from a long-abandoned industrial center along the Monongahela River moved a step closer to reality on Wednesday.
Pittsburgh City Council voted to give preliminary approval to an $80 million tax-increment financing plan to help prepare the former steel mill site for $1 billion in development.
Councilman Corey O'Connor, D-Squirrel Hill, said it will be the largest tax-increment financing plan, or TIF, in the city's history if council gives final approval on Tuesday.
“It will be a monumentally landmark decision,” said Jim Richter, executive director of Hazelwood Initiative Inc., a community development group.
Pittsburgh Public Schools and Allegheny County Council previously OK'd the plan.
Almost two-thirds of new property tax revenue generated by the development would be used over 20 years to pay off bonds for the project, while the rest would go to the school district, city and county, said Tim White, vice president of the Downtown-based Regional Industrial Development Corp. RIDC is collaborating with four foundations to develop the 178-acre site under a partnership called Almono LP.
Today, the former LTV Steel Co. site along the Monongahela River generates about $150,000 a year in property taxes. Developers predict it will generate $20 million annually 20 years from now, White said.
The bonds would cover most of an estimated $133 million in needed infrastructure work. Almono has secured about $95 million, White said. Money from future land sales and the state's Development Assistance Capital Program could help eliminate the gap, he said.
“This will play out in phases, so we won't be spending (the $133 million) all right out of the gate,” White said.
White said the first phase of work could cost as much as $35 million. Grading work began this year and is expected to be completed by early next year, at a cost of $7.5 million.
Next year's work will include building a mile-long road through the heart of the sprawling development site. Construction of the first building could begin as early as next year but is more likely to occur in 2015, White said.
Tom Fontaine is a Trib Total Media staff writer.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Man fatally shot in East Liberty; police investigating 2nd shooting
- Homewood woman accused of card game stabbing
- Tiny black weevils booming in W.Pa.
- Closures planned for Parkway West
- Independence Day festivities scheduled
- Newsmaker: Katherine A. Davoli
- Fireworks displays costly, but W. Pa. communities feel obligated
- Tradition rules in Pittsburgh: Keep bridge color the same, poll finds
- Higher school taxes prevail in Western Pennsylvania, Trib finds
- Public implored to avoid iPhone cases that resemble guns
- Pittsburgh a big draw for tourists on July 4th weekend