Title
A Resolution of the County of Allegheny adopting the East Liberty Gateway Tax Increment Financing Plan presented by the Urban Redevelopment Authority of Pittsburgh and authorizing related agreements.
Body
Whereas, Pennsylvania's Tax Incremental Financing Act (53 P.S. §6930.01 et seq., as amended) (the "Act") provides local taxing bodies with legal authority to cooperate in providing financing for development of blighted areas within their respective jurisdictions in order to increase the tax base and improve the general economy; and
Whereas, under the Act, the Urban Redevelopment Authority of Pittsburgh (the “Authority”) is legally empowered to prepare a Tax Increment Financing Plan (the "TIF Plan") to provide financing for the elimination and prevention of the development or spread of blight within specified tax increment districts located in the City of Pittsburgh (the “City”); and
Whereas, the County of Allegheny (the “County”), the School District of Pittsburgh (the “School District”) and the City have each adopted resolutions on November 5, 2008, November 25, 2008 and November 10, 2008 respectively, endorsing the concept of a TIF Plan to fund a portion of the costs of construction of public infrastructure and other necessary public improvements to facilitate a commercial development in the East Liberty Neighborhood of the City (the “TIF Project”) and authorizing the Authority to prepare a detailed TIF Plan; and
Whereas, the Authority, working with the designated representatives of the County, the School District and the City, has adopted a TIF Plan in accordance with the requirements of the Act, providing for the creation of the East Liberty Gateway TIF District (the “TIF District”) and financing a portion of the costs of the TIF Project; and
Whereas, the Act provides for the cooperation of local taxing bodies in the financing of projects within TIF Districts (including publicly owned infrastructure outside the boundaries of a TIF District but of such benefit to a TIF Project) and authorizes the Authority to issue obligations for the purpose of paying certain costs of implementing TIF Plans; and
Whereas, the County is expected to benefit from the use of tax increments to pay certain project costs within the TIF District by stimulation of private investment, increases in property values, creation of employment opportunities, and improvement of surrounding properties.
The Council of the County of Allegheny hereby resolves as follows:
Section 1. Incorporation of the Preamble.
The provisions set forth in the preamble to this Resolution are incorporated by reference in their entirety herein.
Section 2. Adoption of TIF Plan.
The East Liberty Gateway TIF Plan prepared by the Authority, attached hereto as Exhibit “A”, which is presented to the County by the Authority and which provides for financing certain of the costs of the TIF Project is hereby adopted, and the County, in accordance with the Act, agrees to participate in whole in the TIF District to the extent and as provided for in the TIF Plan.
Section 3. Real Estate Tax Revenues.
A portion of the real estate tax revenues due or owing to, or received by the County with respect to certain parcels within the TIF District, to the extent described in the TIF Plan, are hereby pledged, and a security interest therein is hereby granted to the Authority or its assignee, for the purpose of paying costs of the TIF Project and securing the repayment of any TIF obligations to be issued by the Authority, in accordance with the TIF Plan.
Section 4. Resolution Delivery to the Mayor.
The Chief Clerk or the County Manager is directed to deliver a copy of this resolution to the Mayor of the City of Pittsburgh, as provided in the Act.
Section 5. Cooperation Agreement.
The appropriate public officials of the County are hereby directed to take such additional action in cooperation with the Authority, the City and the School District in furtherance of the implementation of the TIF Plan, including, without limitation, the execution and delivery of a Cooperation Agreement by and among the County, the Authority, the City, and the School District.
Section 6. Severability. If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
Section 7. Repealer. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.
SUMMARY OF LEGISLATION
EAST LIBERTY GATEWAY TIF RESOLUTION
SUBMITTED FOR COUNCIL MEETING FEBRUARY 3, 2009
The Urban Redevelopment Authority of Pittsburgh (the “URA”) is working with Eastside V, LP to construct a commercial development, structured parking facility and other necessary public infrastructure improvements to be located at Broad Street and Fifth Avenue in the East Liberty Neighborhood of the City of Pittsburgh (the "Project").
The URA requests that the Council of the County of Allegheny:
(a) consider a resolution to participate in the East Liberty Gateway TIF Plan (the “TIF Plan”) and to pledge a portion of tax revenues within the East Liberty Gateway TIF District (the “TIF District”) to secure the repayment of debt incurred by the URA for the purpose of financing a portion the Project;
(b) direct the appropriate public officials of the County to take such additional actions in cooperation with the URA, City of Pittsburgh and the School District of Pittsburgh to implement the TIF Plan, including without limitation, the execution and delivery of a Cooperation Agreement by and among the participants.
Eastside V, LP proposes to redevelop properties in East Liberty, including a vacant former high-rise apartment building, for commercial use. The proposed development will include a 154,000 square foot Target department store and structured parking facility. TIF proceeds will be used fund a portion of the costs of public infrastructure including the modification of a portion of Penn Circle to allow for two way traffic, streetscape improvements and off-site public space.
Total engineering and construction costs including the private development are estimated at $52.3 million. The TIF Plan proposes that the Taxing Bodies pledge 75% of the real property tax increment to finance a portion of eligible Project costs. Approximately $2 million of TIF Proceeds are expected to be made available for the cost of public infrastructure and other public improvements outlined above to facilitate redevelopment of the TIF District.