parcel that would be used for the development of a publicly

The Pittsburgh Penguins have agreed to a tentative deal that gives them
additional time to redevelop the former Civic Arena site, in exchange
for credits and land.

As part of the 2007 agreement to build a new facility–now known as
PPG Paints Arena–the Penguins were granted development rights and 15
million in credits to purchase land at the Civic Arena site. In the
period since, efforts to bring development to the site have run into
issues, with a plan that called for a new U.S. Steel headquarters
falling through several years ago.

In the new tentative agreement, the Penguins will surrender the 15
million in credits and one land parcel. In exchange, the team will now
be given until 2020 to develop 6.45 acres of the 28 acre site,
and would be required to surrender a portion of parking revenues
generated by the site if it fails to meet that goal. While the agreement
is pending the approval of the Pittsburgh Urban Redevelopment Authority
URA and Pittsburgh Allegheny Sports and Exhibition Authority SEA boards
, officials sounded pleased with the new terms. More from The
Pittsburgh Post Gazette

The deal also extends the current option agreement by one year, to
Oct. 22, 2025. The Penguins will retain the ability to buy two years’
worth of extensions but there will be none beyond that. Even if
potential delays relating to public commitments on infrastructure,
environmental issues, and a proposed parking garage are taken into
account Pittsburgh Penguins Customize Jersey, the deadline for full development can’t go beyond 2028.

“This has been a complex negotiation, and we reached an agreement
that makes the option agreement better for the public,” Mayor William
Peduto said in announcing the deal.

David Morehouse,
the Penguins’ president and CEO, said the agreement will “pave the way
for 750 million in private investment that will be truly transformative
for Pittsburgh, creating a dynamic development that the region can be
proud of — in addition to jobs, small business opportunities, affordable
housing and community programs.”

The Penguins secured the development rights to the publicly owned
land — and 15 million in credits to help pay for purchases — in the 2007
agreement to build PPG Paints Arena.

So far the team has used about 725,000 in credits — 500,000 to buy the land needed for the hotel built next to the new arena and the rest on extensions — meaning no money came out of its own pocket. Each of the extensions costs 75,000.

URA and SEA would obtain a parcel that would be used for the
development of a publicly funded parking garage. The Penguins have been
working with the St. Louis based McCormack Baron Salazar to develop the
first phase of a housing development on the site. In addition, the club
is reportedly collaborating with a developer on a destination
entertainment project.
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