The latest snag in the delayed project to redevelop the former Civic Arena site in Pittsburgh’s Lower Hill District shouldn’t impact plans to start construction on the site next year, Pittsburgh Penguins Vice President and General Counsel Kevin Acklin said Thursday.
“This is a technicality related to the interruptions all businesses are facing with the covid-19 pandemic and has no impact on the development,” Acklin said.
The city’s Urban Redevelopment Authority denied a request for an extension of a deadline the Penguins faced to acquire about 6.5 acres of land in the area by Oct. 22. That deadline was in the option agreement the team has with the URA to redevelop the site.
“The penalty for missing this deadline is that 20% of the parking revenues generated within the project area will be held in escrow pending certain catch-up provisions contained with the option agreements,” URA Executive Director Greg Filsram said.
First National Bank is set to locate its headquarters in a $200 million, 24-story tower that will be the anchor for the development.
A 90,000-square-foot entertainment venue is also planned on the site in a partnership with Live Nation that was announced in March.
“We will be under construction on schedule in 2021 on the FNB tower, parking garage and Live Nation music venue and first phase of housing,” Acklin said.
The project will create thousands of jobs, he said. “The next development deadline is October 2023 and we expect to remain fully complaint with the option agreement,” Acklin said.
