posted by Mike Madison at 12:00 PM /
Pop City Media runs this profile of local TIF (Tax Increment Financing) expert and Lebo resident Sara Davis Buss. Fans and foes of the TIF for the Washington Park development in Mt. Lebanon will be intrigued by Pop City's thumbnail description of a TIF.
Labels: local experts, washington park
11 Comments:
Oh my goodness.
The article states that TIF's are "typically used for undercapitalized developers and/or brownfields..." Exactly which of these describes Mt. Lebanon?
Gee, why didn't she mention her most recent TIF in
the brownfields of Leboland?
BY the way, how's that grand project coming? Is the undercapitalized developer having problems finding funding for a luxery project in a brownfields area? Considering that they have been planning this project for what, nearly 3 years, you would think that they would have at least broken ground.
The article,a typical "puff piece",fails to mention whether any of the TIF's the "Pop Star" brokered have produced the economic benefits she and those she shilled for represented would occur for the $ her clients pocketed.Alcoa,for instance,claimed its'north shore headquarters would cost $68 million,and received a handsome TIF;however,the property is only assessed by the County at around $35 million and Alcoa has transfered its' headquarters and 150 of its' highest paid employees to NYC.
The developer of the Homestead project pocketed the TIF and has been selling off his ownership interests piece-by-piece.He's done the same thing at his Mt. Lebanon Galleria project;however,in that case the MTLSD did not buy the "Pop Star"s spin and did not approve a TIF,although the MUNI provided unquestioning support for the scheme.Contrary to the "but for" provision in the PA TIF Act (ie.but for a TIF the property would not be developed/redeveloped)the developer went ahead with renovations a TIF was proposed for and has traded his interest (to avoid a transfer tax) for an equity holding in a larger development entity.
The very basic,unanswered questions remain --- have the projected economic benefits of TIF projects in Allegheny County materialized? Are they measurable economic benefits or are they "feel goods"? If measurable,are they less than,equal to,or greater than the TIF costs (principal plus interest)? For which of the "Pop Star"s TIF projects?
It's probably beyond the ability of Pop Star Media to answer such heady but relevant questions.The Allegheny County Redevelopment Authority can't or won't either.But, The Allegheny Institute can.
Regarding Joe Wertheim's comment regarding Zamagias'es ability to obtain debt financing for another of the "Pop Star"s TIF deals at the corner of Cedar & Washington Rd.--- Zamagias owns a significant equity position in the intended lending institution, Sky Bank ( which will shortly be bought out by an Ohio banking firm ).Wonder how the presales are going ?
I noticed that the Washington Park sign at the corner of Bower Hill Road has been removed. Could this be an indication of problems?
The article says that TIF's are typically used by undercapitalized developers. Maybe Zamagias needs to recycle that sign at another project. No reason to spend money on another one.
This article is the kind of stuff folks divvying up their share of public loot muse over. After all, saving Communities like MTL is very rewarding work. The legal fees on the MTL TIF are projected at $140,000.
The missing sign has been solved. A new sign has been put up by Coldwell Banker. Looks like Howard Hanna is no longer the listing agency. The pre-sales must not be going very well if they had to switch.
This is ironic since Howard Hanna was going to be the listing agency for both proposals for the site. I guess Hoddy Hanna wasted his valuble time lobbying for the TIF.
Anon 8/28@11:37pm.
Yes indeed! Howard Hanna was also to be the marketer/sales agent for the non-TIF proposal by National Development Corporation (NDC), headquartered on School St. in Carnegie.The V.P.Development at the time who made the formal proposal was/is a Lebo resident. Howard Hanna, and their role, described in the proposal, obviously agreed with NDC's concept, designs, price-points and overall marketability.Someone has characterized it as"playing both sides of the street". Would you agree?
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