A map of the proposed expansion of Bakery Square (Courtesy of Walnut Capital)
Pittsburgh’s City Planning Commission may vote in two weeks on a plan to expand the East End development, and on changes to Hazelwood Green’s development rules.
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The planned expansion of Bakery Square may rely on Section 8 vouchers for the majority of its affordable apartment units and a representative for the developer said it remains to be seen if the city’s housing authority will grant those vouchers.
Shadyside-based developer Walnut Capital briefed Pittsburgh’s City Planning Commission about plans to expand, by 14 acres, their retail and apartment complex along Penn Avenue in East Liberty and Larimer. The commission is expected to vote on the development in two weeks, and the proposal also requires City Council approval.
Walnut Capital aims to redevelop swaths of surface parking into a mix of apartment and retail buildings. Plans gained traction in September with the signing of a community benefits agreement between the developer and two community groups — the Larimer Consensus Group and the Village Collaborative serving East Liberty — that called for 5% of apartments to be reserved for people making 80% to 120% of the area median income.
But plans stalled amid Mayor Ed Gainey’s calls to include as much as 15% affordable housing. On Tuesday, Walnut Capital’s lawyer Jonathan Kamin said that this demand, at face value, would kill any expansion plans.
“The mayor said [he wants] 15% on-site affordable. We said, there’s no way from an economic standpoint. You might as well kill the project. We’re already spending what we’re going to spend.”
Kamin added that Walnut told the mayor’s team, “if you put this prohibition, you’re going to have this strip mall for the next 40 years,” instead of new development.
Kamin said that to get Gainey’s extra 10%, Walnut worked with various government organizations to arrange for Section 8 voucher holders which the Housing Authority of the City of Pittsburgh would provide for people making no more than 50% of the area median income. With vouchers, tenants pay 30% of their income as rent, with government covering the balance.
“This is conditioned on us being able to work with the Housing Choice Voucher [Section 8] program,” Kamin said. “We’re doing 5% [affordable] on site no matter what. For vouchers, you have to jump a bunch of hoops to get that done and you can’t do it unless there’s a project already underway. We’re going to commit to making those voucher applications, and we’ll get 15% [affordable] on site with those vouchers.”
Commissioner Rachel O’Neill asked Kamin if the mayor’s office had “signed off on this specific language.”
“Not yet,” Kamin said.
The affordability requirement would be in place for no more than 20 years, according to Kamin.
Aside from the on-site affordable housing, Walnut Capital also committed to funding community initiatives to help people buy affordable homes. Kamin said that under the agreement with community groups, the company will contribute $6 million as seed funding to help set up a pool of $25 million.
Walnut’s plans call for some surface parking, but also walking and cycling space and connecting the site to the surrounding neighborhoods.
The commission is expected to vote on these plans in two weeks.
Hazelwood Green sports, garage plans emerging
Tweaks to Hazelwood Green’s redevelopment plan are also before the commission.
The Almono Limited Partnership includes the Richard King Mellon Foundation, the Heinz Endowments* and the Claude Worthington Benedum Foundation, and owns most of Hazelwood Green, a 178-acre former millsite.
“This application has been dormant for a while but now it’s back to being active,” said William Kolano of Kolano Design.
Kolano presented updated designs for the area that he said would open the site more to the general public.
As part of that effort, Kolano said that Almono intends to build sports fields that total no more than 12 acres.
He also said that as the development begins they plan on changing Second Avenue to improve pedestrian walkways.
Kolano said that the Hazelwood Green team are “thinking about putting some garages on Second Avenue,” plus landscaping buffers between garages and the sidewalk
“Our goal to Second Avenue, as it grows up: Old Second is bad, so long term there could be walkways, good pedestrian access and the idea is to landscape it so that people feel good walking or biking through there,” he said.
Kolano said the Hazelwood Green team expects to be back before the commission in two weeks for a vote.
*PublicSource receives funding from The Heinz Endowments.
Eric Jankiewicz is PublicSource’s economic development reporter, and can be reached at ericj@publicsource.org or on Twitter @ericjankiewicz.
This article first appeared on PublicSource and is republished here under a Creative Commons license.
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