title
Resolution authorizing a Cooperation Agreement between the City of Pittsburgh (the “City”) and the Urban Redevelopment Authority of Pittsburgh (the “URA”) to divert 75% of the incremental parking taxes from the Garage (as defined below) up to a maximum of $25,000,000, to fund general construction costs at the proposed Block E development, part of the greater Lower Hill development project, in the Lower Hill neighborhood of the City of Pittsburgh.
body
Whereas, the Block E development will be a mixed-use garage, entertainment, and retail development on property owned by the Sports and Exhibition Authority, located at Block 2-C, Lot 406, in the 3rd Ward of Pittsburgh (the “Project”) and an integral 850-space parking garage for the Project (the “Garage”); and
Whereas, the Project is expected to help catalyze the Lower Hill development project, help alleviate the parking shortage, and generate significant parking taxes due to the need for such a facility; and
Whereas, the developer of the Project, Buccini/Pollin Group, Inc. (the “Redeveloper”), has indicated that additional funds are needed to pay for the costs of construction of the Project; and
Whereas, the tax increment funds from the Garage will be used to fund construction for the Project, including 97,000 square foot live entertainment venue with adjacent lawn, 60,000 square feet of retail/commercial space, and 285,000 square feet of parking; and
Whereas, the Block E developer has requested that 75% of the parking taxes generated by the Garage during its first 19 years of operation be made available to the Redeveloper to pay a portion of the costs of construction of the Project, and 75% of the parking taxes generated by the Garage during its 20th year of operation will be diverted into the Affordable Housing Fund; and
Whereas, the City of Pittsburgh will dedicate the remaining 25% of the parking taxes generated by the Garage to a fund to support affordable housing initiatives within the Hill District; and
Whereas, the Redevelopment Cooperation Law, 35 P.S. §§ 1741, et seq, as amended, authorizes a city to enter into agreements with a redevelopment authority to carry out its public purposes upon the terms and over the period contemplated herein.
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Mayor and the Director of the Department of Finance are hereby authorized and directed to enter into a cooperation agreement (the “Cooperation Agreement”) with the Authority in form approved by the City Solicitor, irrevocably assigning to the Authority 75% of all parking taxes per year generated by the Garage for the period specified above, such revenues to be made available to the Redeveloper or its lenders to aid in the construction of the Project.
Section 2. The Cooperation Agreement shall authorize the Authority to establish an account with a financial institution into which all parking taxes from the Garage shall be deposited and from which disbursements shall be made as described above.
Section 3. The proper officers of the City are authorizes to execute all necessary and appropriate documents and instruments and to do all other acts as may be necessary and proper to carry out the intent and purposes of this resolution.
Section 4. If any provision of this Resolution shall be determined to be unlawful, invalid, void, or unenforceable, then those provisions shall be considered severable from the remaining provisions of this Resolution, which shall remain in full force and effect.
Finally, that any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.