North Shore entertainment venue project postponed
The Steelers and a Columbus developer won't start construction of a proposed $12 million entertainment venue on the North Shore until April, four months later than required under a term sheet approved in August.
Officials for the team and Continental Real Estate Co. exercised an option in the final sales agreement to delay the start of construction until April 1.
In August, the city's Stadium Authority board, after heated debate, approved the controversial sale of a 4-acre riverfront parcel to the Steelers and Continental for $1.37 million, triggering protests from some, including Chairwoman Debbie Lestitian, who believed the price was too low.
The term sheet authorized at the time required construction to start Dec. 1. However, the final sales agreement negotiated last fall gave the Steelers more wiggle room, saying that if the developers had not received final government approvals related to the project by Nov. 30, the start of construction could be extended until April 1.
Stadium Authority Executive Director Mary Conturo said she did not believe she needed board approval for the change in the start date, arguing the term sheet simply set forth the "basic intent of the transaction."
"As we sat down to work out the details, it became apparent to us that starting construction Dec. 1 wasn't the logical thing to be doing" with winter approaching, she said.
She said the more important date to the authority has always been when the project would be completed. On that count, even with the later construction start, the project must be done by May 1, 2010, seven months earlier than under the term sheet.
Ms. Lestitian could not be reached for comment.
Frank Kass, Continental chairman, said the developer and the team needed the extension because the project was still "evolving" and that approvals were still needed for what will be built.
In addition, the Steelers are still awaiting word from the state on their request for a $4 million grant to help cover the cost of the complex.
The proposed venue would be built in the shadow of Heinz Field and would play host to concerts and other events year round. Shows would be held outdoors during the warmer weather and move indoors during colder months.
At the same time, Continental has completed the purchase of one parcel of land and portions of three others for $1.32 million for a proposed Hyatt Place Hotel about a block from PNC Park.
The developer hopes to start the $25 million project in February or March and have it completed in 15 months.
Officials for the team and Continental Real Estate Co. exercised an option in the final sales agreement to delay the start of construction until April 1.
In August, the city's Stadium Authority board, after heated debate, approved the controversial sale of a 4-acre riverfront parcel to the Steelers and Continental for $1.37 million, triggering protests from some, including Chairwoman Debbie Lestitian, who believed the price was too low.
The term sheet authorized at the time required construction to start Dec. 1. However, the final sales agreement negotiated last fall gave the Steelers more wiggle room, saying that if the developers had not received final government approvals related to the project by Nov. 30, the start of construction could be extended until April 1.
Stadium Authority Executive Director Mary Conturo said she did not believe she needed board approval for the change in the start date, arguing the term sheet simply set forth the "basic intent of the transaction."
"As we sat down to work out the details, it became apparent to us that starting construction Dec. 1 wasn't the logical thing to be doing" with winter approaching, she said.
She said the more important date to the authority has always been when the project would be completed. On that count, even with the later construction start, the project must be done by May 1, 2010, seven months earlier than under the term sheet.
Ms. Lestitian could not be reached for comment.
Frank Kass, Continental chairman, said the developer and the team needed the extension because the project was still "evolving" and that approvals were still needed for what will be built.
In addition, the Steelers are still awaiting word from the state on their request for a $4 million grant to help cover the cost of the complex.
The proposed venue would be built in the shadow of Heinz Field and would play host to concerts and other events year round. Shows would be held outdoors during the warmer weather and move indoors during colder months.
At the same time, Continental has completed the purchase of one parcel of land and portions of three others for $1.32 million for a proposed Hyatt Place Hotel about a block from PNC Park.
The developer hopes to start the $25 million project in February or March and have it completed in 15 months.