Condo plan dead? - PittsburghLIVE.com 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.Don't do the deal. Don't make the TIF. If the condo project can't be done on its own merits, in a sustainable way, then tell the developer to scram. You don't need to bribe real business owners to move into the neighborhood.
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.
When everyone pays their full share of the tax load, then everyone gets equal treatment. When that happens, real development can occur.
Once you give a break to one favorite -- then no others are going to be inclinded to move there too unless they get a break as well. Why move in when you have to compete agasint those who are already given favorite status? Why move somewhere where justice is absent?
Mt. Lebo residents should fight hard against the TIF. Don't stand for it.
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Mt. Lebanon condo plan dead without tax financing
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By Bobby Kerlik
TRIBUNE-REVIEW
Wednesday, March 1, 2006
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.
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.
"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."
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.
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.
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.
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.
Zamagias has not officially applied for the financing, but its purchase of the land from the parking authority is contingent on that approval.
"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."
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.
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.
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.
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.
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.
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.
"We were picking up where Bannow left off," Hess said. "This will garner more taxes than what Bannow's would have."
Bobby Kerlik can be reached at bkerlik@tribweb.com.
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