Mayor Ravenstahl anxious to settle dispute with developer
Pittsburgh Mayor Luke Ravenstahl urged a Columbus, Ohio, developer and the city's Stadium Authority yesterday to resolve a dispute over the validity of an option agreement involving North Shore land short of lawsuits, saying a long legal battle would only stall development between Heinz Field and PNC Park.
His comments came as residents of the North Side and their allies pressed City Council during a public hearing for a community benefits agreement to be included as part of any deal.
At issue are plans by Continental Real Estate Cos., in conjunction with the Steelers and Pirates, to build a 178-room Hyatt Place hotel and a 35,000-square-foot, year-round entertainment complex between the stadiums.
Continental has vowed to advance the projects even though city Councilman William Peduto and Debbie Lestitian, chairwoman of the Stadium Authority, which owns the land, believe the agreements giving exclusive rights to the developer, or the Steelers in the case of the amphitheater, have expired.
Pressed by City Council, Stadium Authority Executive Director Mary Conturo refused to say whether she believes that is so, arguing that to answer "tips our negotiating hand."
But Frank Kass, Continental chairman, said he saw no need to renegotiate deals he believes are still in effect. He said there would be consequences if the authority refuses to sell the hotel and entertainment parcels for about $1.3 million each, prices he said were set by the agreements.
"Well, we're going to sue them," Mr. Kass said. "We haven't done anything in violation of a contract and, furthermore, they haven't notified us that we were in violation."
If there were delays to taking down parcels, it was not Continental's fault, he said.
Mr. Ravenstahl asked that cooler heads prevail.
"Folks need to sit down and figure out a way to get this done and figure out a way to move this forward," he said. "If this process becomes one that's litigated, everybody loses. ... You're not going to see anything else built between the stadiums for a year, if not two or three years."
Ms. Conturo also favored a resolution. She said the two new projects have the potential to generate more than $600,000 a year in real estate taxes, $460,000 a year in hotel taxes and $230,000 in amusement taxes.
While Mr. Kass said Continental and the Steelers had a deal to buy the entertainment parcel for $1.3 million, Ms. Conturo told council no price had been set. A court document had implied the price would be about $1 million.
Mr. Kass said he would be willing to negotiate a new option agreement as long as the prices for the hotel and entertainment parcels and those Continental expects to develop in the future do not change.
Mr. Peduto, a former Stadium Authority board member, said, however, the agency must negotiate a "fair value" for the land as part of a new option agreement. He said Parcel 6 could be worth $8 million to $10 million. He said a new deal also should include a community benefits agreement.
His comments came as residents of the North Side and their allies pressed City Council during a public hearing for a community benefits agreement to be included as part of any deal.
At issue are plans by Continental Real Estate Cos., in conjunction with the Steelers and Pirates, to build a 178-room Hyatt Place hotel and a 35,000-square-foot, year-round entertainment complex between the stadiums.
Continental has vowed to advance the projects even though city Councilman William Peduto and Debbie Lestitian, chairwoman of the Stadium Authority, which owns the land, believe the agreements giving exclusive rights to the developer, or the Steelers in the case of the amphitheater, have expired.
Pressed by City Council, Stadium Authority Executive Director Mary Conturo refused to say whether she believes that is so, arguing that to answer "tips our negotiating hand."
But Frank Kass, Continental chairman, said he saw no need to renegotiate deals he believes are still in effect. He said there would be consequences if the authority refuses to sell the hotel and entertainment parcels for about $1.3 million each, prices he said were set by the agreements.
"Well, we're going to sue them," Mr. Kass said. "We haven't done anything in violation of a contract and, furthermore, they haven't notified us that we were in violation."
If there were delays to taking down parcels, it was not Continental's fault, he said.
Mr. Ravenstahl asked that cooler heads prevail.
"Folks need to sit down and figure out a way to get this done and figure out a way to move this forward," he said. "If this process becomes one that's litigated, everybody loses. ... You're not going to see anything else built between the stadiums for a year, if not two or three years."
Ms. Conturo also favored a resolution. She said the two new projects have the potential to generate more than $600,000 a year in real estate taxes, $460,000 a year in hotel taxes and $230,000 in amusement taxes.
While Mr. Kass said Continental and the Steelers had a deal to buy the entertainment parcel for $1.3 million, Ms. Conturo told council no price had been set. A court document had implied the price would be about $1 million.
Mr. Kass said he would be willing to negotiate a new option agreement as long as the prices for the hotel and entertainment parcels and those Continental expects to develop in the future do not change.
Mr. Peduto, a former Stadium Authority board member, said, however, the agency must negotiate a "fair value" for the land as part of a new option agreement. He said Parcel 6 could be worth $8 million to $10 million. He said a new deal also should include a community benefits agreement.