The Penguins will exchange $15M in "credits for land and give up one parcel as part of a tentative agreement" with the city that "gives the team more time to redevelop the former Civic Arena site," according to a front-page piece by Belko & Smeltz of the PITTSBURGH POST-GAZETTE. The Penguins will be "required to develop nearly 6.5 acres of the 28 acres" by '20 or "forfeit a portion of the parking revenue it now receives." Most of the site is now "devoted to parking, with the Penguins getting all the revenue." The deal also "extends the current option agreement by one year, to Oct. 22, 2025." The Penguins will "retain the ability to buy two years’ worth of extensions but there will be none beyond that." The Penguins "secured the development rights to the publicly owned land" -- and $15M in credits to help pay for purchases -- in the '07 agreement to "build PPG Paints Arena." The team to date has "used about $725,000 in credits -- $500,000 to buy the land needed for the hotel built next to the new arena and the rest on extensions -- meaning no money came out of its own pocket." Each of the extensions "costs $75,000" (PITTSBURGH POST-GAZETTE, 11/7). In Pittsburgh, Paul Gough noted the plans "call for 1,000 apartments, including about 200 affordable housing, plus office space, entertainment and retail." Chicago-based Clayco, N.Y.-based BIG and St. Louis-based McCormack Baron Salazar are "involved as developers." Under the terms of the tentative agreement, "one parcel of land will go back to the Urban Redevelopment Authority of Pittsburgh and the Sports & Exhibition Authority for a potential 1,000-space parking garage on the site" (BIZJOURNALS.com, 11/6).
