Paradise On The North Shore?
By Eric Poole

Development in the area surrounding PNC Park and Heinz Field is supposed to be a Joni Mitchell song in reverse—tear up a parking lot and build paradise on Pittsburgh's North Shore.

When everything is finished, between five and 10 years from now, the sports venues will be the centerpieces of a regional destination point, with restaurants, clubs, hotels and a park.

Of course, Pittsburghers were promised that Three Rivers Stadium would do the same thing. But it didn't work out that way, because of a fundamental shortcoming of the free-market system. When it comes to making a profit in the fastest, most efficient way possible, there is nothing like capitalism.

But, unfortunately, for those who had grand dreams of development around Three Rivers Stadium, the stadium and the land around it were owned by the city of Pittsburgh. The city realized almost immediately that the fastest, most efficient way to make a profit was by selling parking—acres and acres of parking.

And Pittsburgh got addicted to the money generated by the parking, not only to pay for the upkeep of Three Rivers Stadium, but also to balance the city's own finances. In a 1997 interview, Dan Rooney II, one of the point men for the unsuccessful Plan A proposal to increase the regional sales tax, addressed the criticism that Three Rivers wasn't paid for when the Pirates and Steelers first started looking for a new home.

Technically, that was true. But in fact, Rooney said, the now-demolished stadium paid for itself many times over. But instead of paying off the bond issue, the city took money generated by the stadium through parking and the amusement tax, and put it into the general fund, in order to balance the budget without making the hard decision to raise taxes or cut services.

Funds derived from the stadium also helped the city maintain Three Rivers Stadium. That won't be a problem this time around. The Pirates and Steelers will fund the upkeep of PNC Park and Heinz Field, respectively.

A Work In Progress

Even though it will take almost a decade to complete the development, and there are no concrete plans, some of the work is already finished.

The North Shore Riverfront Park, which incorporates previously-existing North Shore riverfront areas—Clemente Park, The Korean War Memorial and the Three Rivers Heritage Trail—is almost a reality. Late last year, construction was completed on a pier extending into the Allegheny River.

Most of the park's walkways are finished and construction documents have been filed for the Great Lawn, the park's main green space. Financial support for the park has come from private donations, which has raised $10.3 million.

Given the past failure of Three Rivers Stadium development, perhaps it's fitting that a 932-space parking garage, which opened in March 2001 near PNC Park, was one of the first structures completed.

A $40-million project to reconstruct 2.4 miles of roadway, which will make it easier for fans to get home after games, is under way.

But without development to get some of those fans to stay on the North Shore—formerly known as the North Side—after the games end, or go there on days when there aren't games, the stadium project will have failed to keep its promise, just as Three Rivers Stadium did.

"Back then, the hoped-for development on the North Shore failed to happen for several reasons," said Stephen Leeper, executive director of the Stadium and Exhibition Authority, in a press release several months back.

"The many lessons learned from our experience with Three Rivers Stadium have helped us craft a plan that we believe will be effective."

Who Will Develop?

The next milestone in that plan falls May 31, when the Pirates and Steelers will select a developer to create that paradise on the North Shore.

Once named, that developer will have one year to begin work on the property between Heinz Field and PNC Park.

That land has been broken into 15 parcels of land, ranging in size fro 0.31 to 5.75 acres. Taken in total, the developable land covers 25.27 acres.

The parcels are separated by the area's roads, both surface roadways and overpasses.

By January 2003, there should be plans for building on the first parcel of land. As the developer receives site plans for each parcel, those proposals will be forwarded to the Stadium and Exhibition Authority and the city planning commission for approval.

When the authority and planning commission grant their blessings, the builders have 90 days to break ground or risk losing their option on the property.

Ironically, much of the northernmost land in the development area is reserved for surface parking lots or garages, because it includes the least desirable properties of the space between the stadiums. These parcels are farthest from the shore and, in many cases, broken up into irregular shapes by highway overpasses.

But the construction of additional parking is tied into the amount of non-parking development. When there is more than 625,000 square feet of retail space developed, the Sports and Exhibition Authority will build a parking garage, with between 750 and 900 spaces.

The authority is aiming for construction of buildings four stories and taller. With this goal, the available property could yield between 1.8 million and 2.8 million square feet of space in a series of mixed-use developments.

A total of 7.15 acres is earmarked for parking areas. The largest parcel—5.75 acres—will be the site of an amphitheater. The remaining property will be developed for between $5 and $15 per square foot.

Based on those values, North Shore development could yield between $5.5 million and $8.3 million a year in property taxes for the city of Pittsburgh, Allegheny County and Pittsburgh Public Schools.

The fate of these remaining parcels hold the hope of the new North Shore. And that hope could take as long as 10 years to come to fruition, according to Greg Yesko, a spokesman for the Stadium and Exhibition Authority. The developer, when one is named, will be charged with coming up with a five-year plan, which can be extended to 10.

The final result, says Yesko, will be a mixed-use development, including a diverse collection of entertainment outlets, cultural activities, retail stores, restaurants, office space and apartment buildings. That's not exactly what many people envisioned when the term "stadium-related development" is mentioned.

But, Yesko says, the result will be something better.

With a wide range of uses for the property near the stadium, the North Shore will be a destination point even when there is no game. At least that's what the experts say.

"In the long run, studies have shown that this is best, rather than all entertainment or all residential," says Yesko. "We'd like to see activity there all the time, not just on game day."

Money Sources

Like the facilities that are likely to be built between the stadiums during the next decade, funding for the development will come from a variety of sources. Most of the money will come from private sources, but the Steelers and Pirates also will be able to withdraw from a fund generated by parking lot fees. But that fund can be used only for development projects, not for stadium upkeep or the teams' general funds.

Yesko sees the stadium development resulting in a diverse mix of local, regional and national outlets, sports bars next to office buildings next to apartments next to hotels next to trendy shops—everything that Three Rivers Stadium was supposed to bring before it became a place to park.

But, he adds, it's still a little too early to tell.

"Until we see the plans, we can't know what's going to be there," Yesko said.

Eric Poole Is a Freelance Writer In Pittsburgh Pennsylvania.