The Pittsburgh penguins scored a key victory Friday in their quest to build the first 288 units of housing and live music and a garage at the former Civic Arena site. But don’t expect to see shovels in the ground anytime soon.

After nearly three hours of discussion, Pittsburgh city development administration Board members gave preliminary approval to plans for an $ 82.3 million apartment development and a $ 127.5 million music venue and 850-space Parking lot.

In addition, the Council has put forward a plan to divert 75 percent of the Parking tax revenue generated by the garage over 19 years – an estimated $ 24.3 million – to help pay for the construction of the structure and entertainment piece.

With approval, Kevin Acklin, Penguins senior Vice President, said the team “was on the starting line” in the much-anticipated remake of the 28-acre lower hill area site. The penguins have the right to build on land.

“Today we are happy with the vote. I think we have reached the point where we have now started the process. But we are at the beginning, ” he said.

Its Chairman, Sam Williamson, said the priority in redeveloping the property is to “heal some of the historic mistakes” made by the Agency and others in demolishing parts of the neighborhood and displacing thousands of residents in the 1950s to build the Civic arena.

Plans for housing and entertainment components still have to get the green light from sport

The city Council should also weigh in on the Parking tax leak. Both the city, the County, and the Pittsburgh school district must approve changes to the state’s anti-tax plan on Friday.

Apartment and entertainment plans must also go up to the hill area development review panel as part of the community process.

Given all this, the earliest construction is likely to begin in late spring or early summer, Mr. Aklin said. At one point, the Penguins were talking about launching this fall or the first quarter of 2020.

Friday’s endorsements came despite continuing concerns from some hill community groups and residents about the need for greater transparency and accountability in development.

The hill community development Corporation has also pushed for a number of changes, including proposals to improve the level of affordable housing on the site; give the neighborhood, not just control, of 1,200 square feet of retail space to be allocated to minorities and hill businesses as part of the garage project; and ensure that the music venue does not conflict with the redevelopment of the historic New Granada theater in hill.

Although Board members did not make the CDC’s recommendations the terms of their approval Friday, they vowed that the Board would try to make most of them happen.

“We look forward to moving quickly in the next 30 days with the city, city and housing authority to make sure that the community commitments outlined in the letter are met,” said Marimba Milliones, hill CDC President and CEO.

As part of the latest deal to get the development rolling on the arena site, the Penguins have talked to banks about promoting an estimated $ 40 million in loans that can be used immediately for projects in other parts of the hill.

The money will be repaid from a portion of the tax revenue generated at the facility over the next 10 years.

In the amendment approved Friday, the rest of the rebate, also estimated at $ 40 million, will go directly to the team that will be used to improve the site, rather than a separate Fund for that purpose.

In exchange, the Penguins have pledged not to seek more local funding for the site, although that won’t stop them from going after state or Federal funds.

Milliones Ms said it was “absolutely a risk” to allow the team to control where the money would go. But Mr Acklin said the Penguins need to show how funds are spent in each project they bring in for approval.

In addition to promising $ 40 million in advance, the team has also committed to moving the city’s Rescue 2 EMS station from Union Boulevard to the Parking lot and providing retail space for businesses for $ 1 a year for 29 years to be used by minority and hill-owned businesses.

A key change in the deadline list approved Friday requires Penguins, if they receive project vouchers from the city housing authority, to assign 20 percent of the apartments in the first phase – 58 overall – to households earning 50 percent or less of the median income area.

The $ 1 million loan to the Board of commissioners Friday for housing is due to Intergen, The penguins housing developer, securing these vouchers.

Overall, URA estimated public investment in projects at $80.65 million, including $40 million in tax breaks, and direct public benefit at $97.8 million, also with cuts.

The 288 apartments to be built near Crawford square will be spread over two buildings, one six stories high and one 12. The 97,000 square foot music venue, with room for about 6,400 people, will have indoor and outdoor sections. 

Mark Belko: [email protected] or 412-263-1262.

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