posted by Joe Polk at 9:32 PM /
Coming soon to Mt. Lebanon: more room at the inn. Commissioners last week agreed to approve the sale of a 12,600-square-foot parcel of land on Washington Road where its intended buyer -- Kratsa Properties, of Harmar -- had proposed building an upscale, long-stay business hotel.
"Kratsa is a quality, highly experienced builder," said Stephen Feller, Mt. Lebanon municipal manager.
Link: www.post-gazette.com/pg/07263/818915-55.stm
"Kratsa is a quality, highly experienced builder," said Stephen Feller, Mt. Lebanon municipal manager.
Link: www.post-gazette.com/pg/07263/818915-55.stm
Labels: economic development, hotel, municipality, washington road
4 Comments:
Is it true that Krasta plans on building a SPRINGFIELD SUITE? These are very nice hotels. What other types of business hotels were proposed by competing builders? Will there be an indoor pool?
to Anon 8:21PM of 9/21
(1)There were no other competing builders or business hotels proposed--the Parking Authority and MUNI did not issue an RFP for development of the parcel (but should have),(2)They did not even predetermine what type of development should occur on that parcel(ie. highest and best use) because it was to be an integral part of what is known as the "air rights" development immediately behind it,(3)If you refer to the Parking Authority's April,2007 board meeting minutes, you will see that in all likelihood it was Kratsa who approached the Authority's Vice Chairman (who also happens to be employed by Zamagias Properties as the Project Manager for Washington Park) about interest in building a hotel on Authority property located on Washington Rd....the Authority immediately referred the matter to the MUNI.... and the next thing we ,the public, hear belatedly is that a sales agreement is being drawn up...in August, consent to which would be given by the MUNI in September.And it was.
(4)Yes, Anon, Kratsa has indicated that there will be an indoor pool. Where it will be shoehorned-in remains to be seen. There are a number of Zoning issues to be delt with; but, like Washington Park,approvals are likely a sure thing,(5)Yes, it is reportedly to be a 98-room, all suites hotel, which if like others in the Kratsa holdings,will be lovely.
Is it the highest and best use for the sole remaining, undeveloped and very strategic parcel in the Central Business District (CBD)? We, the public, don't know and the Authority and MUNI don't seem to care !
I can say for sure that there is/was a need for a hotel in Mt Lebanon. Folks coming to visit me from out of state have always had to stay in hotels rather far away (from the Airport, to Greentree, to West Mifflin) until more recently when the Crown Plaza opened it doors.
The fact that there was no RFP does bother me. How hard is it to put one of those out? Why wouldn't they have put one out as soon as the parking lot across the street was finished- or even before that? That sort of government frustrates me.
As to whether this is the best use of the land...I don't know. I suppose putting out an RFP would have at least drummed up some other options but really, having a hotel there does excite me. I can imagine my family coming into town and I can see me going to their hotel and having us all walk to a restaurant for lunch or dinner and having a coffee on the sidewalk at night while enjoying the downtown. I really like the idea. It will certainly increase pedestrian traffic to the area which is a good thing.
So, while I dont like the process in this case, I think the decision is the right one.
Besides that, isn't the 'highest and best use' a rather subjective term? Is there any chance in a thousand years that this community would reach consensus on what exactly the 'highest and best use' of that space is? I can hear Bill Clinton being called to the stand to educate us about what 'IS' is.
*CitizenA*
To *CitizenA*
Certified property appraisers are qualified to, and do, determine what the "highest and best use" of real properties are or could be. Thats why proper and current appraisals should be required for all public property being made available for private development or redevelopment.
Let me give you an example close to "home", in this case Washington Road. The Parking Authority site where the Washington Park project will/may take place was appraised in 2004/05(not sure which at this very moment). The 1994 Krieger Strategic Plan for Uptown recommended that this parcel be developed with mid-rise dwelling units (condo's, co-ops, or apt.'s) to increase foot traffic and the retail businesses of Uptown --this site is outside the Uptown border. This was an urban planners' recommendation to enhance the economy of an adjoining commercial area, not the economic value of the site. The highest and best use of the site would likely generate the highest price for the owner selling the site as well as the value of the best use for a new owner/developer.As you might expect, the appraiser was instructed to determine the value of the site for multi-story, multifamily housing, and the appraiser did that -- the result was $500,000 for the MLPA property, and that is what Zamagias' cost is based on (plus a $20,000 adder for inflation).
The rest of the story,however, is buried in the back-end of the appraisal -- the appraiser also determined a "highest and best use" value for the property, which was based on commercial building(s) and a property value (based on that use) of $860,000 ! This information was not released to the public, but is available under PA's "Right To Know Act"(a so-called "open records" statute).
It didn't take 1,000 years -- it's been around for awhile...in a filing cabinet. Wonder what an appraised "highest and best use"value of the Authority's North Lot (a/k/a Parcel A)... being sold for a hotel.. might be? Is it the $450,000 specified in the Sales Agreement the Commission consented to on 9/10/07? The Commission, when asked prior to their unanimous consenting vote, didn't have a clue! And obviously didn't care. Wonder what the opportunity cost of this hurried action in lieu of all relevant facts might be? When a 2-story, retail foodstore on ground,maybe office on 2nd.,project was proposed and sheparded along a little over a year ago for this same site, the MUNI was ordering ink for the rubber approval stamps.
The MUNI lacks an appropriate, formal process for this kind of stuff -- it's painfully obvious and the really sad thing is they know it, and have known it for several years... but do nothing about it.
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