Presenter
Presented By Ms. Carlisle
NEGATIVE RECOMMENDATION
Title
Resolution requesting that the Urban Redevelopment Authority of Pittsburgh amend the Pittsburgh Development Fund Cooperation Agreement with the City of Pittsburgh to prohibit "Cash Flow" Loans.
Body
Whereas, by City Council Resolution No. 963, effective December 21, 1994, the Council of the City of Pittsburgh approved a Cooperation Agreement with the Urban Redevelopment of Pittsburgh (URA) providing for the URA to issue taxable bonds netting approximately Sixty Million Dollars ($60,000,000.00) and the City to irrevocably assign a portion of its receipts from a one percent sales, use, and hotel excise tax within Allegheny County enacted under Pennsylvania House Bill 659 (P.L. 529, No. 77 approved December 22, 1993) to repay the URA taxable bonds over a period of twenty (20) years; and
WHEREAS, the Sixty Million Dollar fund created by the issuance of taxable bonds by the URA is known as the Pittsburgh Development Fund (PDF); and
WHEREAS the PDF has been administered by the URA for purposes including the provision of low interest rate loans that stimulate residential, office, retail, commercial and industrial development through the City by attracting, maintaining and continuing private investment in the City; and
WHEREAS, City Council has great concerns about the $13 million "cash flow" loan made from the PDF in 1995 for the downtown Lazarus Department Store, and the $12 million "cash flow" loan made in 2000 for the downtown Lord & Taylor Department Store.
NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PITTSBURGH AS FOLLOWS:
SECTION 1. City Council requests that the URA and the City of Pittsburgh enter into an amendment of the Cooperation Agreement that created the PDF as follows:
a) Effective immediately, unless waived by Resolution of Pittsburgh City Council, the PDF shall make no further "cash flow" loans (loans in which repayment is not required unless...
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