Title
Ordinance supplementing the Pittsburgh Code, Title I--Administrative, Chapter 135, Department of City Planning, by adding Section 135.03--Existence, Membership, Terms and Qualifications of Planning Commission and Chapter 161--Contracts, by adding Section 161.38--Economic Development Accountability, to require that City Boards, Authorities and Commissions consider the social, environmental and economic impacts of major development projects prior to awarding City subsidies; to increase opportunities for community engagement in decisions regarding publicly funded and large-scale development projects in the City; and to create greater transparency and accountability for such development projects.
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BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF PITTSBUGH HEREBY ENACS AS FOLLLOWS:
SECTION 1. The Pittsburgh Code, Title One, Administration, Chapter 135, Department of City Planning, is hereby supplemented by adding Section 135.03--Existence, Membership, Terms and Qualifications of Planning Commission, as follows:
135.03 - Existence, Membership, Terms and Qualifications
The City Planning Commission, as presently constituted, shall continue to exercise its powers and functions under this Code, composed of its present nine (9) members, serving six-year terms of office, as now staggered so that the terms of only three (3) members expire every other year. The Mayor shall appoint all successor members of the Commission, with the approval of City Council, on the expiration of their respective terms to serve six (6) years. Vacancies occurring otherwise than through the expiration of term shall be filled as original appointments are made and for the unexpired term. All members of the Commission shall serve, as such, without compensation.
(1) At least one (1) Member of the Planning Commission shall be a certified traffic engineer or traffic planner
(2) At least one (1) Member of the Planning Commission shall be a LEED certified architect
(3) At least one (1) Member of the Planning Commission shall be a landscape
architect
(4) At least one (1) Member of the Planning Commission shall be an attorney
(5) At least one (1) Member of the Planning Commission shall be a community
planner
(6) At least one (1) Member of the Planning Commission shall be a representative
from a community development corporation
SECTION 2. The Pittsburgh Code, Title One, Administration, Chapter 161, Contracts, is hereby supplemented as follows:
Section 161.38--Economic Development Accountability, as follows:
(a) Title and Purpose
(1) This Section shall be known as the "Pittsburgh Economic Development Accountability Ordinance".
(2) The purposes of this Ordinance are to assure the efficient expenditure of City economic development resources; to assist developers, policymakers and community members in assessing the social, environmental and economic impacts of major development projects; to assist City Council in reviewing and approving the award of City subsidies; to enhance public participation in the City's economic development decisions; to create greater transparency and accountability for such development projects; and to ensure that the public benefits of major development projects justify any public subsidy they receive.
(b) Definitions
For the purposes of this Ordinance, the following terms are defined as follows:
(1) "Adjacent Community" shall mean the area within a one (1) mile radius from the proposed Project.
(2) "Beneficiary" shall mean any person or entity that is a recipient of a Subsidy, including any affiliate, successor or assign thereof.
(3) "Covered Project" or "Project" shall mean a proposed Economic Development Project for which the City or related Authority will provide a Subsidy and/or which necessitates the construction by the City or a related Authority of infrastructure improvements, with an aggregate net value of more than $1 million.
(4) "Developer" shall mean the person or entity requesting a Subsidy, including any affiliate, successor or assign thereof.
(5) "Economic Development Project" shall mean a real estate development, business start up or business expansion project, of over 100,000 square feet, that involves land acquisition, infrastructure development, building construction, building rehabilitation, equipment purchase or lease, or leasehold improvements, with a projected total development cost of at least $10 million, and a significant purpose of which is to support, expand or improve a commercial venture. All phases of a multi-phase project shall be considered a single project for the purposes of determining whether the square footage and development cost thresholds are met.
(6) "Hiring Commitment" shall mean a written commitment that jobs will be held by low- and moderate-income City residents as provided by 24 CFR 570.506(a)(5)(ii)(A) or such successor regulation as may be adopted by the U.S. Department of Housing and Urban Development.
(7) "Impact Analysis" shall mean a report containing the information required under Section 161.38(d) of this Chapter.
(8) "Neighborhood" shall mean the City neighborhood where the Project is located, as designated by the Department of City Planning.
(9) "Public Participation Plan" or "Plan" shall be the plan described in Section 161.38(e) of this Chapter.
(10) "Report" shall be the report described in Section 161.38(g) of this Chapter.
(11) "Subsidy" shall mean any of the following:
(i) Any grant, loan, tax incentive, bond financing, infrastructure improvements, below market sale or lease of property, or other form of assistance with an aggregate value of at least $1 million, awarded in connection with any Economic Development Project, by or through the authority or approval of the City of Pittsburgh and/or any Authority, Agency or Public Entity receiving funding or real property from or through the City of Pittsburgh. All phases of a multi-phase project shall be considered a single project for the purposes of determining whether the Subsidy threshold is met. "Subsidy" shall not include the Mainstreets Pittsburgh Program or any Streetface or Façade Improvement programs.
(ii) Any other discretionary approval or legislative action by the City Council, the Mayor, or any other administrative department of the City with respect to an Economic Development Project, except for zoning and land use approvals governed by the Pittsburgh Zoning Code.
(iii) Loans shall be considered a Subsidy only to the extent that they are forgiven or discounted below the available market rate over the life of the loan, which shall be identified in the Community Impact Analysis required by this Chapter. Loans that are payable only in the event of available cash flow or upon the occurrence of some other contingency shall be considered a Subsidy to the extent of 100% of the principal and interest at the available market rate over the life of the loan. Tax incentives and abatements shall be considered a Subsidy to the extent of the tax reduction or financial return (whichever is higher) realized by the Beneficiary. The value of real property sold or leased to a Beneficiary shall be determined by an independent market appraisal.
(12) "Subsidy Agreement" shall mean the loan documents, grant agreement, or similar agreement between a City or related Authority and a Beneficiary regarding a Subsidy.
(13) "Subsidy Period" shall mean (i) if the Subsidy is a loan, the loan term, or (ii) 20 years from the date the first Subsidy is awarded.
(c) Preparation, Public Release and Consideration of Community Impact Analysis
(1) Approval of Covered Projects-No City Authority, Board, Commission or Department may approve a Subsidy for a Covered Project until at least 30 days after a public hearing on an Impact Analysis for the proposed Project and unless the Authority, Board, Commission or Department specifically finds, based on the Impact Analysis and public comment, that (1) the anticipated tax revenue and other financial benefits to the City outweigh the projected financial cost to the City, and (2) the anticipated positive impacts of the proposed Project on the Adjacent Community outweigh the anticipated negative impacts on the Adjacent Community.
(2) Preparation of Impact Analysis-Preparation and release of the Impact Analysis shall be the responsibility of the staff of the City Authority, Board, Commission or Department from which the Subsidy is requested. The Developer shall provide information regarding the proposed Project sufficient to enable the preparation of the Impact Analysis, and reimburse the City for the cost of preparation.
(3) Public Release-The Impact Analysis and any supplemental materials shall be provided to the City Council and the Mayor, shall be posted on the City website, and shall be distributed to the members of the Allegheny County Council and the Pittsburgh Board of Education, at least 30 days prior to any public hearing and at least 60 days prior to any decision to award the Subsidy.
(d) Contents of Community Impact Analysis Report
(1) Each Impact Analysis must include the following, as applicable:
i. A Project and Neighborhood Overview, including (1) a project description (size and type, anticipated tenants, timeline and amenities to be produced) and (2) a site and neighborhood description (zoning and demographics of the Adjacent Community).
ii. A Fiscal Assessment, including (1) the aggregate amount of all anticipated Subsidies from all sources, (2) Subsidy repayments to be made by the Developer, (3) additional tax revenue to be collected by the City as a result of the Project, (4) the anticipated net financial return to the City (Subsidy repayments plus additional tax revenue, minus all Subsidies) over the Subsidy Period, and (5) if the Subsidy is a loan, the interest rate that the Developer would have to pay for private financing given the same risk, lien position and other loan terms as the Subsidy.
iii. An Employment Assessment, including (1) the number of predevelopment jobs to be created, by classification, (2) the number of constructions jobs to be created, by trade, (3) the number of full-time equivalent permanent jobs to be created, by job classification, (4) the minimum and average amounts of wages and benefits to be paid to each employee, by trade or job classification, (5) the percentage of jobs that will be filled by low-income City residents, (6) a description of the steps that the Developer will take, if any, to maximize the availability of the jobs to low-income City residents, (7) the U.S. Department of Labor job zone classification for each job, and (8) the net new and retained jobs (number of jobs at the Project, minus the estimated jobs lost from business displacement and lost sales as a result of the Project, and minus the number of jobs relocated to the site from elsewhere in Allegheny County). For the purposes of the Section, "classification" shall mean the Standard Industrial Classification published by the U.S. Department of Labor.
iv. A Housing Assessment, including (1) the number, type and affordability of housing units that will be taken off-line or demolished as a result of the Project, if any, and (2) if relocation will be necessary, a description of the Developer's proposed relocation plan.
v. A Smart Growth Assessment, including (1) a description of the location (greenfield or brownfield, service by public transportation, neighborhood density), (2) a description of the mix and balance of uses, (2) the Developer's plan for site optimization and compactness (floor-area ration, housing density, parking), (3) the range of transportation choices available to residents and/or customers, and (4) the Developer's plan to maximize the economic, racial and cultural diversity of residents, businesses owners and/or customers.
vi. An Environmental Quality Assessment, including (1) building design standards (energy conservation, water conservation, recycled materials, protection of on-site natural features), if any, (2) an assessment of the environmental impact of the Project during the construction phase and from ongoing operations, (3) a Storm Water Management Site Plan as required by Section 1003.04 of Title X (Pittsburgh Building Code), and (4) a Streets and Open Space Plan as required by Section I of the Pittsburgh Environmental Standards ordinance.
vii. A Community Market Assessment, including (1) the need for the goods and services to be offered by the Project, and (2) an inventory of existing businesses, if any, that provide the same or similar goods and services in the same market area, and the anticipated impact of the Project on such existing businesses, (3) a list of any businesses that will be relocated, and (4) the developer's track record of producing neighborhood economic benefits (hiring low-income residents and contracting with neighborhood businesses).
viii. A Community Services Assessment, including (1) a community asset map identifying key services located within a 1-mile radius of the Project (such as parks and other open space, libraries, schools, childcare facilities, health care facilities, and youth recreational opportunities) and (2) the anticipated impact of the Project on the need for and availability of community services.
(2) The Authority, Board, Commission or Department preparing the Impact Analysis shall adopt and publish selection criteria for evaluating each proposed Project. The selection criteria shall include minimum eligibility criteria and a development scoring mechanism for each element of the Impact Analysis. The Authority, Board, Commission or Department shall rank each element of the Project and shall include the Project's development score in the Impact Analysis.
(e) Public Participation
(1) Requirement. Each Authority, Board, Commission or Department from which a Subsidy is requested shall adopt and follow a Public Participation Plan for each Covered Project, designed to fully inform the public and maximize public input into the decision whether or not to award the Subsidy. Each Plan shall provide for, at a minimum, one public meeting in the Neighborhood at least thirty (30) days prior to a public hearing on the Project and at least sixty (60) days prior to any decision to award the Subsidy. The public hearing shall be held in the evening hours or on the weekend so as to facilitate participation by as many residents of the Adjacent Community as possible.
(2) Public Notice. All residents within the Adjacent Community shall be informed of the public meeting required by the Plan by such reasonable means as shall be designed to reach all residents of the Adjacent Community. The notice shall provide a general description of the Project and how residents may access free copies of the Plan and the Community Impact Analysis as required by this Section, all of which shall be made available to the public prior to and during the public meeting.
(3) Approval of Subsidies. No decision to award a Subsidy for a Covered Project shall be effective until it has been reviewed and approved by City Council. The Authority, Board, Commission or Department awarding the Subsidy shall introduce appropriate legislation approving the Subsidy to City Council, and Council shall hold a public hearing on the request before taking legislative action. City Council will not approve a Subsidy request unless it finds, based on all available evidence including public comment, that (1) the anticipated tax revenue and other financial benefits to the City outweigh the projected financial cost to the City, and (2) the anticipated positive impacts of the proposed Project on the Adjacent Community outweigh the anticipated negative impacts on the Adjacent Community. Where Council fails to render a decision on a Subsidy request within sixty (60) days from the date the legislation to authorize the Subsidy was introduced, the decision shall be deemed to have been rendered in denial of the request.
(f) Hiring Commitments on CDBG-Funded Projects
(1) No job creation or retention activity funded in whole or in part with Community Development Block Grant ("CDBG") funds administered by the City and its related Authorities after the effective date of this Ordinance shall be considered to benefit low- and moderate-income people unless the employer enters into a Hiring Commitment specifying that the jobs will be held by low- and moderate-income people. Each Hiring Commitment shall include sanctions for non-compliance and provide that low- and moderate-income job seekers and organizations that represent them shall be entitled to enforce the Hiring Commitment as third party beneficiaries.
(2) Every CDBG Consolidated Plan, Action Plan and Performance Report submitted after the effective date of this Ordinance shall be consistent with the requirements of this Section. No later than ninety (90) days after the effective date of this Ordinance, the Department of City Planning shall amend the City's existing CDBG Consolidated Plan to include the requirements of this Section.
(3) Public Availability. Each Authority, Board, Commission or Department awarding CDBG funds for a job creation or retention activity after the effective date of this Ordinance shall post all Hiring Commitments, in their entirety, on a generally accessible website, not less than fifteen (15) days after the date of execution.
(g) Reporting
(1) Requirement. All Beneficiaries of a City Subsidy after the effective date of this Ordinance shall submit a Report, at least once every ninety (90) days during the Subsidy Period, showing the Beneficiary's performance at providing jobs to low- and moderate-income City residents and in delivering other anticipated economic benefits of the Project to the City.
(2) Contents of Reports. The Reports required under this Section shall include the following:
i. Total hours worked by all employees
ii. Total hours worked by low- and moderate-income City residents
iii. Total wages paid to all employees
iv. Total wages paid to low- and moderate-income residents
v. Total Subsidy received since the start of the Subsidy Period
vi. Total financial return to the City since the start of the Subsidy Period
For the purposes of this Section, "low- and moderate-income" shall mean having a household income, for the year immediately prior to the date of hire, at or below 80% of the area median income for the Pittsburgh Metropolitan Statistical Area, as published annually by the U.S. Department of Urban Development.
(3) Public Availability. Each Authority, Board, Commission or Department awarding a Subsidy after the effective date of this Ordinance shall post all Reports, in their entirety, on a generally accessible website, not less than fifteen (15) days after the end of the period covered by the Report.
(4) Truthfulness of Reports. Any Beneficiary that makes a material misrepresentation in a Report shall be subject to appropriate sanctions, up to and including repayment of the Subsidy. Any Beneficiary that is found by the City Controller, a Court of Law, or any Authority, Board, Commission or Department to have made a willful or grossly negligent misrepresentation of material fact in any Report shall (1) be required to repay all Subsidies, and (2) be barred from receiving any further Subsidy from any source.
(h) Subsidy Agreements
(1) Requirement. All Subsidy Agreements executed after the effective date of this Ordinance shall require the Beneficiary to comply with the requirements of this Section.
(2) Accountability. All Subsidy Agreements executed after the effective date of this Ordinance shall require the Developer to ensure that all Developer projections that have been provided to the City Authority, Board, Commission or Department awarding the Subsidy, including those contained in the Community Impact Analysis, are fulfilled. This shall include, but not be limited to, the net financial return to the City, the net new and retained jobs, the minimum and average amounts of wages and benefits to be paid to each employee, and the percentage of jobs that will be filled by low- and moderate-income City residents as per the Hiring Commitment, if applicable.
(3) Sanctions. Any Developer that fails to fulfill the Developer's projections contained in the Community Impact Analysis or to comply with any other material term and condition of the Subsidy Agreement shall be subject to appropriate sanctions, up to and including repayment of the Subsidy, unless the Developer produces substantial evidence that such failure was due to conditions that were beyond the Developer's control. Failure of a Beneficiary to fulfill projections shall not constitute conditions beyond the Developer's control. Any Developer that is found by the City Controller, a Court of Law, or any Authority, Board, Commission or Department to have substantially failed to fulfill the Developer's projections contained in the Community Impact Analysis or to have failed to comply with any other material term and condition of the Subsidy Agreement, after notice and a thirty (30) day opportunity to cure, shall be referred to City Council for the determination of appropriate sanctions. For the purposes of this Section, "substantial" shall mean greater than five percent (5%). During the period of City Council review, and pending the imposition of any sanctions recommended by Council, the Developer shall be barred from receiving any Subsidy from any source. The Authority, Board, Commission or Department awarding the Subsidy shall impose such sanctions as are determined by City Council. Nothing in this Section shall preclude the City Controller, a Court of Law, or any Authority, Board, Commission or Department from imposing greater sanctions than those recommended by City Council.
(4) Public Availability. Each Authority, Board, Commission or Department awarding a Subsidy after the effective date of this Ordinance shall post all Subsidy Agreements, in their entirety, on a generally accessible website, not less than fifteen (15) days after the date of execution.
(i) Audits
(1) Regular Audits. The City Controller shall audit the performance of all Projects that are awarded a Subsidy after the effective date of this ordinance, no less frequently than once every four (4) years. The audits shall include, at a minimum, the Beneficiary's performance at providing jobs to low- and moderate-income City residents, the net financial return to the City and/or related Authority, and compliance with other terms, conditions and projections that were made at the time the Subsidy was awarded.
(2) Public Availability. The City Controller shall post all Audits, in their entirety, on a generally accessible website, not less than fifteen (15) days after the completion of the Audit.
(j) Authorities, Agencies and Public Entities
The City may not enter into any contract, cooperation agreement, or other agreement with any Authority, Agency or Public Entity, may not transfer any money, property, or anything else of value to any Authority, Agency or Public Entity, and may not make any appointments to any Authority, Agency or Public Entity, unless the Authority, Agency or Public Entity has adopted a policy, enforceable by the City, implementing the provisions of this Section.
SECTION 3. Effective date. This Ordinance shall take effect immediately upon approval.