The Pittsburgh Public Schools board on Wednesday approved a tax diversion for the sprawling Esplanade development, which plans to bring a Ferris wheel, housing and other amenities to the city’s Chateau neighborhood.
The developer, Cecil-based Piatt Companies, has now secured approval from the city and school district for the tax deal. It will seek a similar agreement from Allegheny County.
The measure will help fund public infrastructure and affordable housing for the project, which aims to transform a 15-acre brownfield side along the Ohio River into a first-day attraction for the city.
Lucas Piatt, the developer’s CEO, has told TribLive the tax diversion is critical for the $740 million project to move ahead.
School board member Dwayne Barker — who represents the Chateau neighborhood where the development will be built, as well as neighboring Manchester — asked the school board to delay the vote by 30 days to allow more time for community involvement.
A coalition of residents in nearby Manchester, dubbed Manchester Neighbors, sent a petition with 300 signatures to the board, urging them not to move ahead with the tax deal. Manchester Neighbors has been one of the only voices speaking out against a development that has received widespread support.
Barker said he felt people within the community felt they weren’t being heard or included.
Some other board members questioned how they could feel excluded, given that there have been a string of public meetings on the development already.
“I would hope the community would hold out for a community benefits agreement,” board member Sala Udin said, incorrectly stating the project currently included no on-site affordable housing.
But other members said the tax diversion agreement guarantees money be dedicated to housing and other public improvements. Board member Sylvia Wilson said neighbors could benefit from job opportunities created on site.
“I know that Pittsburgh needs development,” said Gene Walker, the board president.
Esplanade is set to include restaurants, retailers, green space, a marina, an incubator for local entrepreneurs, entertainment areas, a grocery store, a hotel, condos, a mixed-income apartment tower and a nearly 200-foot Ferris wheel overlooking the river and cityscape.
The motion to delay the vote was voted down, with only Barker and Udin wanting to table the measure.
The school board then approved the tax diversion, with opposition from Barker. Udin abstained from the vote.
The Transit Revitalization Investment District, or TRID, tax deal the developer is seeking from the three taxing bodies will allow 75% of the taxes generated by the property’s added value after development to be plowed back into the project and the surrounding community. It will fund public infrastructure, riverbank restoration and new affordable housing within the development and in the nearby Manchester neighborhood.
The TRID will last for 40 years, but individual parcels will be eligible for only a 20-year tax diversion.
Pittsburgh City Council unanimously approved the tax deal in February.
The properties set to be developed generate about $84,000 in property taxes annually. A portion of the footprint owned by the Urban Redevelopment Authority has been off the tax rolls since 2003.
Officials estimate the completed Esplanade project will produce about $8 million in tax revenue each year once complete, though a significant portion will be diverted through the TRID year at first.