Pittsburgh Council clears way for development, Whole Foods on Penn Plaza site

Pittsburgh City Council on Tuesday cleared the way for a $50 million development on the site of the former Penn Plaza Apartments in East Liberty that will include a “flagship” Whole Foods market, according to the developer.

Council voted to approve a land swap with Pennley Park South, owner of the 9-acre property along Penn Avenue, necessary for the development and reconfiguration of adjoining Enright Parklet. Council also approved an easement that will provide public access to the park via streets around the development.

“This authorizes us to move forward,” said Larry Gumberg, founder and president of L.G. Realty Advisors, parent company of Pennley Park South. “We’re going to try to get shovels in the ground by December of this year.”

The project has sparked controversy for several years.

Former residents of Penn Plaza and community activists staged numerous protests, saying the complex compounded neighborhood gentrification and argued for inclusion of affordable housing to replace apartments lost with the demolition of Penn Plaza. About 228 people lived in Penn Plaza in 2015, when LG Realty notified residents it intended to close the apartments.

A court settlement stipulated that 70% of increased tax revenue after the project is completed would be split, with half going toward public infrastructure and the other half for affordable housing and improvements to the park.

Residents also objected to the land swap required by the court settlement which permitted Pennley Park to own a public street running between the development and park. They voiced fears that the company could limit access to the park, particularly during construction.

The easement approved by council stipulates permanent public access to the park through all streets.

“In this action, we as council are simply validating what the court has decided,” said Councilman Ricky Burgess of North Point Breeze, who represents that section of East Liberty.

The company is planning a nine-story office and retail building named Liberty East in the first phase of construction. It includes nearly 246,000 square feet of office space, 4,600 square feet of retail space, nearly 700 vehicle parking spaces and parking for 60 bicycles. A second phase is in the works that will likely mirror the first, according to Gumberg.

He said phase one construction would take 18 to 24 months and the company would work on plans for phase two over the next year. The company reached an agreement with Whole Foods for a store and exclusive parking for 287 vehicles directly underneath the store.

“It will be a flagship store and we expect the store will be open in two years,” Gumberg said.