The developers behind a $30 million sports facility on 42 acres in North Huntingdon that could include a Pittsburgh Riverhounds soccer complex are seeking a tax break and township backing of a state grant to help pay for the project.
NH Investment Partners LLC is seeking a long-term lease to develop the township’s property along Public Works Drive.
The developers, Josh Zugai and David Ponsonby, have proposed a 29-year lease with three options that could stretch it out to 116 years, at a rental fee of $1 per year, but Zugai said the length of the lease will be discussed in negotiations that are set for Thursday.
“It’s not a hard mandate, but we need some renewal options as is customary in most leases, to raise capital and bring a project of this size and scale without taxpayer assistance. It’s a win-win,” said Zugai, who works for a merger and acquisitions firm. Ponsonby is president of L&P Contracting LLC of Pittsburgh.
The proposed lease the developers presented to the township is contingent upon obtaining a tax abatement from the municipality’s Local Economic Revitalization Tax Assistance program. NH Investment Partners also want North Huntingdon’s support for a state grant from the Redevelopment Assistance Capital Program.
Sublease rights
The proposed lease gives the developers the right to sublease the parcel, which would include the part of the property that would be developed for the Pittsburgh Riverhounds. The Riverhounds’ design shows a 93,000-square-foot indoor sports facility with three outdoor fields suitable for soccer and other sports. The outdoor fields and the indoor field will be available for sports teams to rent, similar to the Riverhounds’ AHN Montour Sports Complex in Robinson, the developers said.
The goal is to have one outdoor field ready by the fall of 2025. Commissioner JasonAtwood,presidentoftheboardofcommissioners,saidtheinitialdiscussionwillinvolvetheattorneys,ratherthanthecommissioners.
An agreement could be reached by the August or September meetings of the commissioners, but “we’re by no means in the fast lane on this,” Atwood said.
Any tentative lease that might be reached in the negotiations would have to be approved by the commissioners.
Using the township land for a sports complex surfaced late last year when Shane Larkin of North Huntingdon, owner of the local ‘N Zone franchise that operates youth sports leagues and camps, proposed creating a $10 million sports complex on 17 acres of the public works property. Ponsonby and Zugai submitted a proposal this year to create a sports complex with five outdoor fields and an indoor sports facility.
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The township has not sought bids for the property, a point that Commissioner Fran Bevan raised when she said she possibly would favor seeking bids for using part of the public works property.
Dice had said it was not required to seek bids as long as it is leasing the land, rather than selling it.
Commissioner Ron Zona said the idea of advertising for bids for the land “is a moot point” because the majority of the board wanted the solicitor to negotiate an agreement with NH Investment Partners. The commissioners on July 12 agreed to move forward with the negotiations, Zona said.
While the developers want to pay just $1 annually for the land, Bevan said the township would need to have the property appraised to determine its market value.
The developers also sought the rights to build a warehouse and retail outlet on the site as well as possible medical and any other use legal permitted. The indoor sports facility would be the “warehouse” and a retail store would sell sports-related apparel, Zugai said in a statement. He added that they do not want to “limit the opportunity to bring taxpaying businesses to the township.”
The proposed sports complex “is definitely something we need,” Dan Brummett of North Huntingdon told commissioners on July 17.
The Riverhounds “do a fantastic job” with the team’s training facilities at its AHN Montour Sports Complex, Brummett said.
“I don’t see what anyone can have a problem with” a sports complex that brings people and revenue into the community, Brummett said. “This is something our young kids need.”
Joe Napsha is a TribLive reporter covering Irwin, North Huntingdon and the Norwin School District. He also writes about business issues. He grew up on Neville Island and has worked at the Trib since the early 1980s. He can be reached at jnapsha@triblive.com.