tag:blogger.com,1999:blog-7481330.post114121321874504501..comments2023-10-24T11:05:25.288-04:00Comments on Mark Rauterkus & Running Mates ponder current events: Condo plan dead? -- as it should be!Mark Rauterkushttp://www.blogger.com/profile/17157914569686528007noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7481330.post-1141213259156802622006-03-01T06:40:00.000-05:002006-03-01T06:40:00.000-05:00Mt. Lebanon condo plan dead without tax financing ...Mt. Lebanon condo plan dead without tax financing<BR/> <BR/><BR/>Tools<BR/>Print this article<BR/>E-mail this article<BR/>Subscribe to this paper<BR/>Larger text Larger / Smaller Text<BR/><BR/>Subscribe<BR/>By Bobby Kerlik<BR/>TRIBUNE-REVIEW<BR/>Wednesday, March 1, 2006<BR/><BR/>Unless Mt. Lebanon commissioners and the school board approve tax-increment financing worth $4.5 million over 20 years, a plan to build a $28.8 million luxury condo complex will not happen, a developer said.<BR/><BR/>Zamagias Properties gave commissioners a brief overview this week of the plan to build 60 condos at Washington and Bower Hill roads, a longtime vacant strip of land. School directors were briefed last week.<BR/><BR/>"This is a great asset to the community," Sara Davis Buss, an attorney representing Zamagias, told commissioners. "Without the TIF, this project will not go forward."<BR/><BR/>An abandoned gas station, now used for storage, and a parking lot occupy the land. The Mt. Lebanon Parking Authority bought the land in 1975 and has sought unsuccessfully to sell it to private developers for years.<BR/><BR/><BR/>For Zamagias to gain the full tax break, a tax-increment financing plan would have to be approved by three taxing authorities -- the municipality, the school district and Allegheny County.<BR/><BR/>Tax-increment financing allows developers to use a portion of the property tax revenue generated by a completed project to pay off bonds used for construction.<BR/><BR/>Mt. Lebanon commissioners and school board members said development of the area is a good idea, but any tax-increment financing plans would need further study and a thorough analysis before approval.<BR/><BR/>Zamagias has not officially applied for the financing, but its purchase of the land from the parking authority is contingent on that approval.<BR/><BR/>"We're certainly in favor of developing that area," Commissioner Barbara Logan said. "But we're a long way from a resolution for financing. ... If a TIF was a deal breaker, we would not have let them go this far."<BR/><BR/>The condos would be built in two phases, one building each, with a parking garage under the buildings and a small park in front. Retail shops would be located on the street level.<BR/><BR/>Zamagias President Gene Hess said the total project would cost about $28.8 million. The company expects profit from sale of the condos -- which it hopes to market at an average $475,000 -- would be about $27.7 million.<BR/><BR/>National Development Corp., of Green Tree, had proposed a $20 million condo project, but the parking authority awarded the bid to Zamagias in September. Some residents were concerned that Zamagias executive vice president Richard Ballon, a member of the parking authority board, had a conflict of interest. He excused himself from discussions June 2.<BR/><BR/>Barry Long, CEO of Urban Design Associates, an architectural firm teamed with Zamagias for the project, is a member of the Mt. Lebanon Planning Board. He submitted a letter to the municipality Tuesday excusing himself from planning board discussions about the matter. He took part in a presentation to commissioners Monday.<BR/><BR/>Both the school district and municipality had approved $3.5 million in tax-increment financing over 20 years for a proposal by developer Bill Bannow to build a $25 million, 12-story structure with 60 condominiums at Bower Hill and Washington roads. That project fell apart after Bannow repeatedly failed to line up financing.<BR/><BR/>Last year, Zamagias indicated an equal tax-increment financing package would be needed for its project. Hess said that estimate was based on what was approved for Bannow. Now, Zamagias wants $1 million more.<BR/><BR/>"We were picking up where Bannow left off," Hess said. "This will garner more taxes than what Bannow's would have."<BR/><BR/>Bobby Kerlik can be reached at bkerlik@tribweb.com.Anonymousnoreply@blogger.com