Developer claims hotel deal still valid despite questions
The Columbus developer contracted to build a hotel and amphitheater between PNC Park and Heinz Field says construction on the more than $115 million project will start this fall, despite objections from a City Council member and others who contend the company's five-year agreement expired last year.
Frank Kass, chairman of Continental Real Estate Cos., said yesterday he plans to break ground on Hyatt Place, a 178-room hotel, and PromoWest Entertainment Complex, a 35,000-square-foot indoor amphitheater, late this year, even as City Council planned a public hearing today to discuss whether the developer should continue with the project.
The North Shore development option agreement between Continental, the Steelers, the Pirates and the city's Stadium Authority, which started in 2003, became an issue last month, when both city Councilman William Peduto and Pittsburgh United, a consortium of labor, environmental and community groups, questioned its validity.
Mr. Peduto claimed the agreement expired last May, when Continental failed to close on land needed for the Hyatt Place hotel project, as he believes was required under the agreement's schedule, and no extension was granted by the Stadium Authority.
But Mr. Kass and Barry Ford, Continental's president of development in Pittsburgh, say the agreement is still valid because the Stadium Authority, the city or Allegheny County never told them they were in jeopardy of losing their contract because of time constraints and deadlines.
City Council's 1:30 p.m. public hearing, they said, is "meaningless," as far as they are concerned. They expect to start work on the project once they complete their purchase of the land parcels they need to buy from the Stadium Authority for about $3 million.
That may prove difficult. Stadium Authority Chairwoman Debbie Lestitian said the board's position is that once the deadline passed, the option for the land expired.
"We cannot convey land without an agreement in place," Ms. Lestitian said. "We can't amend a terminated option agreement, which terminated on its face. We need a new agreement."
Frank Kass, chairman of Continental Real Estate Cos., said yesterday he plans to break ground on Hyatt Place, a 178-room hotel, and PromoWest Entertainment Complex, a 35,000-square-foot indoor amphitheater, late this year, even as City Council planned a public hearing today to discuss whether the developer should continue with the project.
The North Shore development option agreement between Continental, the Steelers, the Pirates and the city's Stadium Authority, which started in 2003, became an issue last month, when both city Councilman William Peduto and Pittsburgh United, a consortium of labor, environmental and community groups, questioned its validity.
Mr. Peduto claimed the agreement expired last May, when Continental failed to close on land needed for the Hyatt Place hotel project, as he believes was required under the agreement's schedule, and no extension was granted by the Stadium Authority.
But Mr. Kass and Barry Ford, Continental's president of development in Pittsburgh, say the agreement is still valid because the Stadium Authority, the city or Allegheny County never told them they were in jeopardy of losing their contract because of time constraints and deadlines.
City Council's 1:30 p.m. public hearing, they said, is "meaningless," as far as they are concerned. They expect to start work on the project once they complete their purchase of the land parcels they need to buy from the Stadium Authority for about $3 million.
That may prove difficult. Stadium Authority Chairwoman Debbie Lestitian said the board's position is that once the deadline passed, the option for the land expired.
"We cannot convey land without an agreement in place," Ms. Lestitian said. "We can't amend a terminated option agreement, which terminated on its face. We need a new agreement."