URA A Y E A R O F T R A N S F O R M A T I O NA N N U A L R E P O R T 02U R B A N R E D E V E L O P M E N T A U T H O R I T Y O F P I T T S B U R G H 2 0 0 R O S S S T R E E T P I T T S B U R G H , P A 1 5 2 1 9 ( 4 1 2 ) 2 5 5 - 6 6 0 0 W W W . U R A . O R G

I would like to congratulate and thank the board and staff of

the Urban Redevelopment Authority of Pittsburgh for their

leadership in 2002. The year was an outstanding success for

the City, as we progressed on every key development front.

Growth along our riverfronts has been one of the highest prior-

ities of my administration; we saw palpable progress here with

the emergence of South Side Works as an exciting venue for

living, working and recreation.

In housing, the creation of Summerset at Frick Park was

stunning and innovative, yet just one of many important residen-

tial developments to advance during the year. We welcomed key

housing initiatives in the Middle Hill District, Downtown,

Homewood, South Side and the Strip District, as well as the

contributions of hundreds of our residents who — with URA

financing assistance —purchased or renovated homes.

Sustaining the Momentum

U R A A N N U A L R E P O R T 02In business, 500 City companies sought information on

the Authority’s financing and technical assistance programs.

City businesses used the programs to leverage more than

$38.2 million in investment.

In short, we sustained the momentum that has helped us

diversify our economy and offer our residents one of the most

livable cities, rich in diversity and alive with opportunity. The

pace and scope of our growth in 2002 bode well for an excit-

ing future.

Sincerely,

T O M M U R P H Y

Mayor, City of Pittsburgh

Transformation. It’s an appropriate word to describe the role of

the Urban Redevelopment Authority of Pittsburgh in the

growth of our City. We acquire underutilized property and,

through our public-private-neighborhood development part-

nership, transform it for modern, productive purposes. We

work with established and fledgling businesses and, through

our financing and technical assistance, transform them to

thriving concerns providing more and more jobs. Through our

housing assistance, we transform residents to homeowners

with a significant stake in the City’s future.

Transformation was a theme that informed much of our

efforts in 2002, and it was most visible in two of Pittsburgh’s

signature projects. At South Side Works, we continued the

transformation of a vacant LTV steel mill site to a mixed-use

development of unprecedented scope.

By 2006, South Side Works is expected to include 33

developments, spanning office, entertainment, commercial,

recreation, residential and warehouse uses, parking garages

representing $400 million in private and public investment and

6,000 new jobs. During the year, the complex passed the $130

million mark in private investment. Among the most exciting

aspects of development in 2002 was the progress of The

Residences at South Side Works, which will feature 350 new

housing units. The residential component will infuse South

Side Works with vitality — and bring patrons for its on-site

amenities.

A similar transformation is taking place at Summerset at

Frick Park, where URA and our development partners are con-

verting a massive, unsightly industrial dump to a new commu-

nity of 713 homes — and expanding and improving Frick Park

as well. This is an enormous undertaking, involving 238 acres

and $243 million in investment. But the neighborhood that is

emerging is a persuasive example of our partnership at work.

The initial complement of Summerset residents moved into

their new homes in 2002, with additional dwellings scheduled

to be offered through lottery in 2003. We’re pleased to present

a special report on this special development on page 24.

Transformation occurred as well in other neighborhoods,

where we worked with residents and developers to maintain

and enhance the unique character of our neighborhoods. The

pace and scope of neighborhood growth will quicken, thanks

to the Keystone Opportunity Expansion Zone (KOEZ) program

and its substantial tax abatements for redevelopers. KOEZ ini-

tiatives began to take shape in 2002, with the promise of many

more to follow.

In Manchester, we worked with Bidwell Training Center/

Manchester Bidwell Corporation on the final stage of the res-

urrection of the abandoned Chateau Plaza — an innovative

facility that will host a horticultural business.

In Lawrenceville, we completed the conversion of the for-

mer Kerotest Building to a mixed-use facility that features

office, residential and headquarters space, while in East

Liberty, we welcomed Whole Foods as a community-serving

and revitalizing force.

In the Middle Hill District, URA and our partners launched

an important initiative known as Bedford Hill, which will bring

600 housing units and lovely streetscapes to the neighbor-

hood. Not only will Bedford Hill replace blighted dwellings, but

it also will extend Pittsburgh’s new model for public housing

introduced when Allequippa Terrace in the Upper Hill District

was transformed to Oak Hill.

Throughout the City, our residents were active in transform-

ing their own lives. With the assistance of $27.8 million we

provided through a variety of programs, they purchased, reha-

bilitated or constructed 927 units of housing, helping to contin-

ue the modernization of our housing stock.

On the business front, we provided $8.65 million in financ-

ing assistance. Through all our Business Development Center

programs, we reached 500 enterprises and entrepreneurs,

helping them grow and become more competitive. All these

businesses will contribute to our newly diversified economy—

still another transformation for the City.

A year of transformation

T R A N S F O R M A T I O NU R A A N N U A L R E P O R T 02

2 3

M U L U G E T TA B I R R U, Ph.D.

Executive DirectorT H O M A S E. C O X

Chairman

The Urban Redevelopment Authority plays a leadership role in

the City of Pittsburgh’s most important development projects,

including both housing and economic development initiatives.

These developments are both geographically and thematically

diverse, and all bring the promise of widespread benefits —

including job creation and new tax revenues — for City residents.

URA’s roles include assembling land, providing financing

and technical assistance, soliciting community input and par-

ticipation, and matching developers with resources. All these

key contributions were evident in 2002 in the major develop-

ment projects highlighted below.

SOUTH SIDE WORKS

The development of South Side Works continued along multi-

ple fronts in 2002, activity that confirmed its status as the

City’s most ambitious and far-reaching initiative. At full devel-

opment, this revitalization of the site of the former LTV South

Side Works is expected to attract $250 million in private invest-

ment while creating 5,400 jobs and up to $3.8 million in new

annual tax revenues.

By the close of 2002, South Side Works already had

achieved much of that promise with $131 million invested by

the private sector in office buildings (Quantum One, Federal

Bureau of Investigation); headquarters facilities (Interna-

tional Brotherhood of Electrical Workers); research centers

(McGowan Institute for Regenerative Medicine); warehouse and

distribution facilities (UPMC Distribution Center), and athletic

amenities (UPMC Sports Performance Complex, Pittsburgh

Steelers and University of Pittsburgh practice fields.)

The development also has brought important infrastructure

improvements— such as the conversion of the Monongahela

Connecting Bridge to a vehicular span linking the site to the

Pittsburgh Technology Center — and associated economic

growth in the South Side business corridor. The UPMC Center

for Sports Medicine at South Side Works, for example,

inspired the transformation of South Side Hospital to an ortho-

pedic facility, introducing a valuable and prominent institution to

the neighborhood.

In all, approximately 33 developments are planned for the

complex by 2006. With the addition of residential and enter-

tainment components planned for 2003 and beyond, South

Side Works will achieve unprecedented scope and impact.

Among the most exciting activities of 2002 was the rapid

progress of THE RESIDENCES AT SOUTH SIDE WORKS , a 270-

unit residential complex being developed by Continental

Communities. The $27 million riverfront development between

25th and 26th streets will feature a mix of one-bedroom and

two-bedroom units as well as two-bedroom townhomes—

all to be leased at market rates — and 365 parking spaces.

Facades along East Carson Street have been designed with

a high degree of brick and articulation to complement the exist-

ing architecture in the commercial corridor. Continental is under-

taking all open space improvements within the complex, which

also will offer 16,000 square feet of retail space. Construction

commenced during the year, with initial occupancy expected

by the close of 2003.

Other noteworthy activity occurred on these South Side Works

developments:

THE LOFTS , the second phase of The Soffer Organization’s

development of a $100 million mixed-use complex. Phase 1,

which is under construction, includes a 200-room hotel,

610,000 square feet of flex office space and 360,000 square

feet of entertainment, retail and restaurant space. The Lofts will

be a $15.5 million mixed-use facility that will feature 84 multi-

family units of loft residential space as well as more than

42,000 square feet of street-level retail space. Both phases are

targeted for completion in 2003.

RIVERTECH CENTER , a $5 million, three-story office building

developed by a partnership including Lhormer Realty,

Prudential Realty and RE Crawford Construction. Located near

the Steelers’ practice fields, Rivertech offers 150 surface park-

ing spaces. Prudential Realty has signed on as the anchor ten-

ant for Rivertech, which is expected to create 150 jobs and

$115,000 in annual real estate taxes. Rivertech welcomed its

first tenants during the year.

Playing a leadership role MAJOR DEVELOPMENT PROJECTS

M A J O R D E V E L O P M E N T P R O J E C T SU R A A N N U A L R E P O R T 02

4 5

HARBOR GARDENS GREENHOUSE

PARKING GARAGES #1, #2 AND #3 . A development as large

and diverse as South Side Works requires ample, convenient

parking — for residents, employees and visitors alike. URA is

addressing that need with plans for five on-site parking

garages. The first, a more than $10 million facility featuring 673

parking spaces over five stories, was completed during the

year. This garage will service the Quantum Building and retail

and office facilities along East Carson Street.

Garage #2, a $7.1 million, 367-space facility, also

advanced during the year. It will serve both phases of The

Soffer Organization development. S&T Bank and the

Pennsylvania Infrastructure Development Program provided

financing for Garage #1 and Garage #2; URA will continue to

own both facilities. Completion of Garage #2 is anticipated by

fall 2003.

Development of Garage #3 progressed with the receipt of

funding from the U.S. Department of Housing and Urban

Development.

SUMMERSET AT FRICK PARK

The ongoing development of the new neighborhood called

Summerset at Frick Park achieved an important milestone in

2002 — the sale of the first 63 units in the complex. Sales

prices ranged from $198,000 for a townhome to $700,000 for

estate-style homes, a strong indication that this mix of market-

rate dwellings will be both popular and successful. An addi-

tional 36 units will be offered for sale in the project’s first phase.

In all, Summerset will feature 713 homes spanning the

Squirrel Hill and Swisshelm Park neighborhoods on a 238-acre

site that had been used for years as a repository for industrial

waste. Transforming the environmentally degraded wasteland

into an attractive residential community has been the work of

URA and its community-based partners, who are providing key

input on environmental and traffic flow concerns.

Summerset is being developed by Summerset Land

Development Associates, a broad team that includes The

Rubinoff Company; Montgomery & Rust; Pennrose, Falbo,

Halliday Associates; National City Community Development,

and IBACOS.

As part of the initiative, the Authority also is developing

related space, a 1.52-acre Summerset site that will be appended

to Frick Park and afford majestic views of the park and access to

its popular network of trails. The park extension will be marked

by a stone pavilion that will function as the centerpiece of

the community.

Summerset at Frick Park not only will creatively reuse an

industrial waste site, but it also will provide a new revenue

stream for the City, generating more than $2.9 million in annual

taxes from once-dormant property, as well as a one-time infu-

sion of $3.6 million in transfer taxes on a projected $28 million

in land sales over the life of the project.

HARBOR GARDENS GREENHOUSE

Development of this “incubator” greenhouse by Bidwell

Training Center / Manchester Bidwell Corporation represents

the final phase of the URA-led resurrection of the abandoned

Chateau Plaza in the North Side’s Chateau West Redevelop-

ment Area. When the site closed in the late 1980s, URA

acquired it with an eye to redevelopment that would create

business and job opportunities between Beaver Avenue and

the waterfront.

In 1999, URA sold a parcel of the property to JCM prop-

erties, an affiliate of Mascaro Company, which constructed a

32,000-square-foot headquarters facility. Bidwell Training

subsequently developed a second parcel, featuring a four-

story, 70,000-square-foot office building. UPMC signed on as

anchor tenant for that $8.4 million facility.

Now, Bidwell Training and Manchester Bidwell are poised

to complete the redevelopment of the site with the green-

house, a nearly $3.9 million facility that will accommodate the

cultivation of horticultural products for wholesale distribution.

URA is providing $208,000 in financing for the initiative.

The Commonwealth of Pennsylvania is a key player on the

financing team, contributing funding through the Department

of Community and Economic Development and the

Infrastructure Development Program. Other funding sources

include Allegheny County and local foundations.

When Harbor Gardens opens in 2003, it will represent the

flowering of an important site that was effectively seeded

and nurtured by Pennsylvania’s public-private-neighborhood

partnership.

SPRING WAY CENTER

When Kerotest relocated from the Strip District to Hazelwood

in 1995, it was great news for the manufacturer and its new

neighborhood. But the relocation left a 110,000-square-foot,

block-long Liberty Avenue facility vacant and deteriorating in

the Strip District. URA and its private-sector partners took on

the job of rehabilitating and recycling the three- and four-story

structure, a job that moved closer to completion in 2002.

After acquiring the building, the Authority in 1999 sold

35,000 square feet to Rycon Construction, which renovated

the space for its own operations. Subsequently, No Wall

Productions, Inc., acquired the three-story portion of the facil-

ity and converted it to 21 market-rate rental housing units.

Now, Spring Way Center has acquired the four-story seg-

ment of the building, spanning 40,000 square feet, and is trans-

forming it to office space. As part of the nearly $1.98 million,

privately financed project, the developer also acquired a Penn

Avenue parking lot that will be used by tenants of the office

building. Construction was nearly complete at year’s end.

Through patience, persistence and innovation, the City’s

public-private partnership has completed an undertaking that

brought jobs and other benefits of economic development to

two City neighborhoods.

M A J O R D E V E L O P M E N T P R O J E C T SU R A A N N U A L R E P O R T 02

6 7

SOUTH SIDE LOFTS

Providing financing assistance that helps City businesses

launch, expand and prosper is an important mission for the

Urban Redevelopment Authority of Pittsburgh. The jobs cre-

ated by healthy businesses are a source of livelihood for City

residents; the commercial districts those businesses anchor

are a foundation for strong neighborhoods. Supporting that

dynamic between businesses and residents is what URA

assistance is about.

URA’s business-assistance efforts are coordinated by its

Business Development Center (BDC), which provides an

appealing variety of services for City businesses. These include:

major financing programs such as the Pittsburgh Development

Fund, the Pittsburgh Business Growth Fund and the Urban

Development Fund; tax-exempt financing for manufacturers;

staff support for the Pittsburgh Economic and Industrial

Development Corporation (PEIDC), which can provide

Pennsylvania Industrial Development Authority (PIDA) loans;

staff support for the Allegheny Pittsburgh Business

Development Corporation (APBDC), which can provide Small

Business Administration Section 504 loans; facade renovation

programs, and several financial and technical assistance pro-

grams for neighborhood business districts.

In 2002, the impact of BDC was broad, as it provided

nearly $8.65 million in financing assistance that leveraged

more than $38.2 million in additional public sector funding and

private investment. During the year, BDC reached nearly 500

Pittsburgh businesses and entrepreneurs with financing and

technical assistance and related resources.

An important focus of BDC’s work is assuring that minority-

and woman-owned businesses have an equal opportunity to

share in Pittsburgh’s business expansion. Toward that end,

more than 40 percent of BDC loans and grants in 2002 were

awarded to minority- or woman-owned businesses.

Among the most exciting of these initiatives was the

financing of CRAWFORD GRILL ON THE SQUARE , a minority-

owned jazz and blues restaurant in the Freight Shops at

Station Square that will feature a balcony and a patio and will

create 40 jobs. Not only will the establishment extend the her-

itage of the legendary Crawford Grill, but it also represents the

first minority-owned business in the highly successful Station

Square complex.

For the $670,000 initiative, URA provided the developer,

BurlMont, Inc., with a $100,000 loan from the Pittsburgh

Business Growth Fund. Other funding sources include First

National Bank of Pennsylvania and developer equity.

Crawford Grill on the Square is set to open in 2003, when

Station Square will swing with the sounds of jazz and blues.

PITTSBURGH ECONOMIC AND INDUSTRIAL

DEVELOPMENT CORPORATION (PEIDC)

PEIDC serves as the City of Pittsburgh’s industrial develop-

ment corporation for real estate development. Conceived in

1994 as a City-only entity, it now serves both Pittsburgh and

portions of the Steel Valley Enterprise Zone.

While PEIDC receives administrative, financial, account-

ing, economic, legal and other support services from URA, it is

a distinct entity. As such, it is able to purchase real estate for

development lease or resale, and obtain private and public

financing. All PEIDC projects increase the local tax base.

PEIDC is a member-based organization that includes develop-

ers, community development organizations, law firms, archi-

tects, engineers, foundations and industrial companies.

In 2002, PEIDC provided $587,950 through the Pennsylvania

Industrial Development Authority for the transformation of the

former Holy Family School in Lawrenceville to high-tech space.

THE CATALYST BUILDING , as the facility is now known, has

been renovated by a private developer and is being marketed

to technology companies.

Other funding sources for the nearly $1.96 million project

include Enterprise Bank and equity.

Launch. Expand. Prosper. BUSINESS DEVELOPMENT CENTER

B U S I N E S S D E V E L O P M E N T C E N T E RU R A A N N U A L R E P O R T 02

8 9

WHOLE FOODS

ALLEGHENY PITTSBURGH DEVELOPMENT

CORPORATION (APBDC)

Through the Small Business Administration’s 504 loan pro-

gram, APBDC provides below-market rate financing for eligi-

ble, growing businesses. Such assistance is invaluable where

expanding businesses cannot borrow sufficient funds from a

bank and are unable to make up the difference with equity.

During the year, APBDC provided $157,000 in financing

for KINGSLAND SCOTT BAUER ASSOCIATES , a Lawrenceville

architectural firm that specializes in the design and construc-

tion of call centers. The loan helped the company acquire

space it had been leasing in the historic Stable Building in the

newly renovated Doughboy Square.

Other funding sources for the $392,000 initiative include

PNC Bank and equity. The project has solidified occupancy of

the Stable Building and reinforced the success of the new-look

gateway to Lawrenceville.

PITTSBURGH DEVELOPMENT FUND (PDF)

The Pittsburgh Development Fund provides financing up to

$5 million for real estate acquisition, development projects and

equipment purchases. Eligible businesses include commercial,

industrial and advanced technology companies, as well as

passive commercial and residential real estate projects. PDF

funding supports such major initiatives as South Side Works

and Summerset at Frick Park.

PDF serves another important role as well — utilizing loan

repayments to provide funds for neighborhood business dis-

trict improvements through the District Improvement Fund

(DIF), an initiative developed in association with Pittsburgh City

Council. In 2002, the URA Board of Directors approved a total

of $5.46 million for neighborhood commercial district develop-

ment that leveraged more than $20.7 million in additional pub-

lic and private investment.

Among the recipients of 2002 PDF financing were:

PENN AVENUE HOTEL , a 182-room Courtyard by Marriott

facility to be located in the 900 block of Penn Avenue, where it

will provide convenient and much-needed service to patrons of

the expanded David L. Lawrence Convention Center. To be

developed by Penn Avenue Hotel, LLP and Oxford Develop-

ment Company, the hotel will feature restaurant and retail

space as well as integral parking. For the nearly $24 million

initiative, URA is providing $1.5 million in PDF financing, with

additional funding from the Employees Real Estate

Construction Fund (ERECT), the Strategic Investment Fund

and rehabilitation tax credit equity. Construction is expected to

begin in 2003.

SCOTT PIPITONE DESIGN , an Observatory Hill graphic arts,

public relations and Web design firm that was named by Inc.

magazine in 2001 as one of “America’s 500 Fastest Growing

Private Companies.” URA is assisting that growth by providing

$175,000 in PDF financing to help the company acquire a

structure adjacent to its existing building for expansion. The

nearly $800,000 project is expected to create 11 jobs.

Additional funding sources include National City Bank, the

Northside Community Development Fund, owner equity and a

$26,490 loan from URA’s Streetface program.

KINGSLEY ASSOCIATION , long an East Liberty institution,

which will develop a community center two blocks from the

original Kingsley House location. The 56,267-square-foot facility

will provide educational, social, arts, recreational, and health

and wellness programs and will offer a gymnasium, swimming

pool, computer lab and meeting rooms. Forty percent of the

building will be available for lease. For the $6.6 million initia-

tive, URA is providing $107,250 in DIF financing, with the bulk

of funding from the Pennsylvania Department of Community

and Economic Development (through PNC Bank), the City of

Pittsburgh and local foundations.

PITTSBURGH BUSINESS GROWTH FUND (PBGF)

The Pittsburgh Business Growth Fund provides financing up to

$150,000 for machinery and equipment, leasehold improve-

ments and working capital. Eligible are manufacturing, com-

mercial, industrial, advanced technology, service and retail

businesses. In 2002, PBGF provided $540,000 in financing

that leveraged nearly $2.2 million in private investment. In

addition to Crawford Grill on the Square, recipients of 2002

PBGF financing include:

CLASSIQUES , The European Collection, Inc., an East Liberty

business that provides consulting services for the design and

sale of high-end furniture. URA is providing $100,000 in PBGF

financing to facilitate new inventory purchases and the ulti-

mate growth of the business. Bank financing and equity also

are providing funding for the $405,000 initiative, which is

expected to create four jobs.

ELLIANCE, INC. , a Strip District e-business consulting firm that

in 2000 was named one of the “Inner City 100” best compa-

nies by Inc. magazine. Elliance will use $110,000 in financing

— including a $64,000 PBGF loan — for working capital. Other

funding sources include the Community Loan Fund of

Southwestern Pennsylvania and equity.

URBAN DEVELOPMENT FUND (UDF)

The Urban Development Fund is designed to offer substantial

financing—from $25,000 to $250,000—for the acquisition and

development of real estate projects. In 2002, UDF supported

three projects with more than $425,000 in financing assistance

that leveraged over $2.16 million in private investment.

An important UDF-supported development during the

year was WHOLE FOODS , the conversion of a vacant East

Liberty structure to an organic and natural food grocery store

that will create 150 jobs and continue the revitalization of an

important City neighborhood. Whole Foods Market, Inc., which

operates 117 stores in 22 states, offers natural and organic

foods and beverages, dietary supplements, natural personal

care products, natural household goods and educational prod-

ucts. Eastside, L.P., served as developer for Whole Foods.

For the nearly $6.8 million development, URA provided

$677,000 in financing, with significant additional funding from

LISC, the U.S. Department of Health & Human Services, the

City of Pittsburgh and Three Rivers Bank. Whole Foods opened

in 2002, to the delight of shoppers and neighbors alike.

TAX INCREMENT FINANCING (TIF)

Through this innovative tool, the Authority is able to offer

financing to support infrastructure improvements and develop-

ment of large initiatives that otherwise wouldn’t occur. Through

2002, URA and its partners in this initiative — the City of

Pittsburgh, Allegheny County and the Pittsburgh School

District — had raised $120 million through Tax Increment

Financing.

U R A A N N U A L R E P O R T 02 B U S I N E S S D E V E L O P M E N T C E N T E R

10 11

CATALYST BUILDING

The benefits of TIF financing can be seen in such vital

developments as the Pittsburgh Technology Center. TIF pro-

ceeds underwrote key components of the complex, which has

been so successful that the TIF bonds were retired in 2002 —

a full 12 years ahead of schedule. That will enable the three

taxing bodies to begin realizing revenues from the center —

even as the City and the region enjoy the broader benefits.

INFRASTRUCTURE DEVELOPMENT PROGRAM (IDP)

This innovative Commonwealth of Pennsylvania program

underwrites infrastructure improvements through grants to

municipalities and development agencies— including URA —

that are transformed to loans to businesses or developers. In

addition, program loan repayments are recycled as additional

infrastructure improvement assistance, assuring a renewable

pool of funding.

In 2002, the Authority provided $1.25 million in IDP financ-

ing to CELLOMICS, INC. , one of the region’s most important

and progressive biotechnology companies. Cellomics develops

new processes and patented products to improve the screen-

ing efforts of pharmaceutical and drug-testing companies.

IDP financing helped Cellomics renovate its new head-

quarters and laboratory space in Bridgeside Point at the

Pittsburgh Technology Center. Cellomics is subleasing one

floor of its facility to the McGowan Institute for Regenerative

Medicine and the National Tissue Engineering Center; the

colocation of these three biotech organizations should

enhance the growth of each.

Other funding sources for the nearly $10.7 million reloca-

tion and renovation, which was completed during the year, are

the U.S. Small Business Administration, the Pennsylvania

Machinery and Equipment Loan Fund, the Pennsylvania

Opportunity Grant Program, the Allegheny County Department

of Economic Development and equity. The initiative preserved

a promising company — and its 82 jobs — for the region.

COMMUNITY DEVELOPMENT INVESTMENT FUND (CDIF)

The Community Development Investment Fund (CDIF) is

designed to help nonprofit, community-based organizations

undertake important real estate projects (residential, commer-

cial and industrial) by providing grants for equity. In 2002, URA

provided $438,000 in CDIF financing that will seed projects

expected to leverage millions of dollars in private investment.

Among the beneficiaries were:

A SECOND CHANCE, INC. , a foster care provider that will ren-

ovate the long-vacant former Larimer School building and use

it to consolidate its operations, which currently are in scattered

East Liberty sites. ASCI has pioneered the concept of “Kinship

Foster Care,” which emphasizes placement of children in the

homes of relatives or friends. The development will bring 130

jobs to the Larimer neighborhood and enhance the revitaliza-

tion of that community. For this important, multimillion-dollar

initiative, the Authority is providing $150,000 in CDIF financing.

CENTRAL NEW DEVELOPMENT CORP. , a nonprofit organiza-

tion formed by Central Baptist Church to help revitalize the Hill

District. Central New will rehabilitate a blighted three-story

building in the Centre Avenue corridor for retail and commer-

cial uses. For the $732,000 development, URA is providing

$88,000 in CDIF financing and $256,500 through the PDF and

Streetface programs. Other sources of funding include PNC

Bank, PNC Foundation and equity. Construction is set to begin

in 2003.

B U S I N E S S D E V E L O P M E N T C E N T E RU R A A N N U A L R E P O R T 02

12 13

CRAWFORD GRILL ON THE SQUARE

Revitalize.

STREETFACE

The Streetface program, which provides matching deferred

loans to commercial building owners and tenants for facade

improvements, continues as one of URA’s most active and

successful programs.

In 2002, through Streetface and companion exterior reno-

vation programs, the Authority awarded 47 loans valued at

$755,738 to merchants and retail building owners, who

matched it with nearly $2.5 million in private investment.

Since 1985, URA has awarded 1,044 facade renovation

grants and loans valued at nearly $9.5 million, financing that has

helped leverage private investment of approximately $16 million.

MAINSTREETS PITTSBURGH

The Mainstreets Pittsburgh program provided self-help, “Main

Street” resources and programming to 33 neighborhood shop-

ping districts for the 2001–2002 cycle, a significant expansion

of the program from the previous 26 recipients. Financing

assistance totaled $903,200. The Pennsylvania Department of

Community and Economic Development and the City of

Pittsburgh, through federal Community Development Block

Grants, provide funding for Mainstreets Pittsburgh.

During the year, URA and the City presented five awards

acknowledging neighborhood-based organizations for their

success in using Mainstreets Pittsburgh funds to address the

needs of their communities. Winner of the Overall Mainstreet

Excellence Award was the OAKLAND BUSINESS IMPROVE-

MENT DISTRICT for activities such as cleaning, promoting,

organizing and contributing to the safety of the Central

Oakland business district. Other awardees include:

NEIGHBORS IN THE STRIP received the Excellence in

Organization Award for overcoming budget limitations to build

a solid entity.

LAWRENCEVILLE CORPORATION won the Excellence in

Promotion Award for its successful “16:62” design zone campaign.

NORTHSIDE CITY SHOPS captured the Excellence in Design

Award for its innovative application of design studies and

improvements.

WEST PITTSBURGH PARTNERSHIP earned the Excellence in

Economic Restructuring Award for its outstanding business

recruitment efforts.

Honorable mentions were collected by the Beechview

Merchants Association, Uptown Community Action Group and

South Side Local Development Company.

Business Development Center

Services 5 $ 648,250 $ 1,364,650 $ — $ 2,012,900

Information Technology / Life Science 2 1,314,000 5,230,000 4,250,000 10,794,000

Real Estate Development 11 6,110,000 14,335,819 2,057,580 22,503,399

Retail 8 586,000 2,351,799 — 2,937,799

T O TA L 26 $ 8,658,250 $ 23,282,268 $ 6,307,580 $ 38,248,098

Eleven (11) of the twenty-six (26) loans and grants were made to minority- and/or woman-owned business enterprises (M/WBEs). Six (6) of the eleven (11) loans to

M/WBEs were made to firms owned by African-Americans. The total amount of URA’s loans to M/WBEs was $928,250, which leveraged $2,856,754 in private funds.

2 0 0 2 P E R F O R M A N C E H I G H L I G H T S

B U S I N E S S S E C T O R N U M B E R O F

P R O J E C T S

U R A

I N V E S T M E N T

P R I VAT E

I N V E S T M E N T

O T H E R P U B L I C

I N V E S T M E N T

T O TA L

I N V E S T M E N T

B U S I N E S S D E V E L O P M E N T C E N T E R

The Observatory Hill neighborhood boasts a company with

designs on something big.

It’s called Scott Pipitone Design, LTD, a graphic design

and public relations firm that has defied a soft economy to

grow significantly since its launch in 1991 in the home of Scott

and Stella Pipitone. By 2001, revenue reached more than $3.5

million, and the company ranked No. 22 on Inc. magazine’s

annual list of the 500 fastest growing privately held businesses

in America — SPD’s third consecutive year on the list.

“Although the design market has remained relatively flat in

this region, our decision to focus on collaborating with clients

to build marketing solutions that drive business is paying divi-

dends — for us and for our clients,” says Scott Pipitone, who

serves as CEO and creative director for the business.

Designing something big

The company needed new space to accommodate antic-

ipated future growth, and SPD knew just how to pursue it.

When it moved several years ago to offices on Perrysville

Avenue, SPD tapped URA’s Business Development Center for

financing assistance. The company called again in 2002 and

URA was ready, providing $175,000 in financing from the

Pittsburgh Development Fund, which was complemented by

funding from National City Bank and the North Side

Community Development Fund.

“URA’s gap financing made the project viable— on a diffi-

cult streetfront and terrain,” Pipitone says.

With nearly $800,000 in financing secure, SPD acquired a

blighted building adjacent to its headquarters, demolished it,

and replaced it with a new two-story structure that brightens

the Observatory Hill business corridor and is projected to cre-

ate 11 jobs. SPD will use 6,825 square feet within the building.

“It’s the first new construction on Perrysville Avenue in

more than 20 years, so it improves the streetfront,” Pipitone

says. “It’s gives us room for personnel and resource growth,

and it increases the opportunity for worker collaboration and

breathing space.”That’s a design for success.

U R A A N N U A L R E P O R T 02

14 15

Creating compelling housing options that benefit City residents

while strengthening the unique character of Pittsburgh’s neigh-

borhoods is one of the most important goals of the Urban

Redevelopment Authority of Pittsburgh. In 2002, URA was char-

acteristically active on the housing development front, providing

nearly $27.8 million in financing assistance for 927 homes.

Through the years, the Authority has pursued its housing

goals with uncommon success. Since the inception of URA’s

housing programs, the Authority’s financing assistance has

reached more than 57,000 dwelling units throughout the City,

playing a vital role in the acquisition, rehabilitation and con-

struction of homes for Pittsburgh residents.

One of the most significant developments of 2002 was

the extension of the sweeping initiative by URA, the Housing

Authority of the City of Pittsburgh, and their partners to pro-

vide more attractive housing options for residents of public

housing — and to involve those residents in the process. That

initiative was launched in the 1990s with the successful trans-

formation of Allequippa Terrace in the Upper Hill District to Oak

Hill, an attractive complex of varied housing types.

During the year, URA and HACP launched a companion

initiative — BEDFORD HILL , which will feature the demolition of

the more-than-60-year-old Bedford Dwellings Additions as

well as blighted structures on nearby Middle Hill streets. In

their place, the partnership will develop 600 units of attractive

new or rehabilitated housing in a mixed-income neighborhood

on tree-lined streets. The initiative spans roughly 34 city blocks,

giving it far-reaching scope and impact.

The developer for the project is The Bedford Partnership,

which includes McCormack Baron Associates — developer of

the highly successful Crawford Square community — and Hill

Community Development Corporation. The more than $100 mil-

lion initiative will be completed in phases, with Phase I offering

approximately 188 housing units — a mix of rental units, newly

constructed for-sale homes, and rehabilitated for-sale homes.

Site preparation was nearly complete at year’s end. The federal

Hope VI program is providing the bulk of financing for the initia-

tive, with additional funding from URA, the City of Pittsburgh, the

Pittsburgh Water and Sewer Authority, HACP, Sun America

and Citizens Bank.

When completed, Bedford Hill will improve the lives and

living conditions of many City residents, even as it confirms the

success of Pittsburgh’s new model for public housing.

Another emphasis in 2002 was the creation of Downtown

and near-Downtown housing, a goal of the Authority’s for

many years. In the central business district, URA’s housing

development affiliate, Pittsburgh Housing Development

Corporation, worked with consultant No Wall Productions, Inc.

on LIBERTY LOFTS — conversion of a vacant Liberty Avenue

building to eight loft units and a commercial storefront. For the

more than $2.25 million project, the Authority is providing

$615,000 in financing assistance, with other funding from local

foundations as well as loans and historic tax credit equity from

PNC Bank.

Nearby in the Strip District, URA supported EPN Deve-

lopment’s conversion of a blighted former warehouse at 2501

Liberty Avenue to 18 market-rate housing units called the

BRAKE HOUSE . URA is providing $375,000 in financing assis-

tance for the more than $2.56 million initiative, with the balance

of the funding from Dollar Bank loans and historic tax credit

equity plus additional developer equity. Both developments

were near completion by the close of 2002.

Strengthening neighborhoods HOUSING DEVELOPMENT

H O U S I N G D E V E L O P M E N TU R A A N N U A L R E P O R T 02

16 17

OSTERLING FLATS

CONSUMER MORTGAGE AND REHABILITATION

PROGRAMS

At the heart of URA’s housing assistance are programs that

promote homeownership and home rehabilitation in the City.

The programs are designed to offer a broad variety of afford-

able housing options to accommodate the diverse needs of

City residents. In 2002, these programs provided more than

$15.8 million in financing that assisted Pittsburgh residents in

the acquisition or rehabilitation of 539 housing units. Each of

these important programs is detailed below.

PITTSBURGH HOMEOWNERSHIP PROGRAM (PHOP)

Through the sale of tax-exempt mortgage revenue bonds,

PHOP provides low-interest first mortgage loans to qualified

first-time home buyers. In 2002, PHOP offered its most com-

petitive mortgage product ever— loans at 5.5% interest,

downpayment / closing cost assistance grants up to $3,000 for

all participants, and only 1.5% in up-front points, reduced from

2.5% the previous year. Potential home buyers who earn less

than $56,250, depending on family size and location of the

property, are eligible. During the year, URA provided PHOP

loans valued at $10,666,748 for 171 housing units, in addition

to $276,063 in down payment/closing cost assistance grants

for 124 units.

HOUSING RECOVERY PROGRAM (HRP)

A mortgage/rehabilitation program, HRP is designed to help

home buyers and homeowners purchase or refinance and

rehabilitate homes that are at least 20 years old and in need of

substantial repair. Depending on location of the dwelling and

household income, up to 40 percent of the total cost of the

project or $35,000 may be deferred for 99 years, or until the

sale or transfer of the property. In 2002, the Authority closed

HRP loans valued at more than $648,264 for ten housing units.

HOUSING RECOVERY PROGRAM FOR DEVELOPERS (HRPD)

HRPD provides commitments to nonprofit and for-profit devel-

opers for set-asides of permanent financing for the substantial

rehabilitation of substandard or vacant housing. Developers

acquire and rehabilitate these abandoned structures, which

are then sold to eligible home buyers. In 2002, URA provided

$628,133 in HRPD loans for 19 housing units.

NEIGHBORHOOD HOUSING PROGRAM (NHP)

NHP is designed to stimulate new construction of single-

family housing for low- and moderate-income home buyers in

City neighborhoods. Through below-market rate mortgage

financing, URA provides affordable homeownership opportuni-

ties in neighborhoods where the development cost of housing

exceeds the market value of the completed units. In another

feature of NHP, the Authority provides commitments to for-

profit and nonprofit builders/developers for set-asides of

permanent financing for approved new construction develop-

ments. NHP loans are interest-free, second mortgage loans

which are deferred for 99 years or until the home is sold.

During the year, URA closed NHP loans valued at $906,300 for

26 housing units.

HOME IMPROVEMENT LOAN PROGRAM (HILP)

Funded through the proceeds from the sale of tax-exempt

home improvement bonds, HILP offers loans at 5.99% interest

to qualified homeowners in program areas who earn less than

$52,300; there are no income limits in targeted areas. HILP

loans support all home improvements eligible under the FHA

Title I program. The maximum loan amount is $25,000. In

2002, URA reached 63 housing units with HILP loans valued at

$1,088,990.

PITTSBURGH HOME REHABILITATION PROGRAM (PHRP)

PHRP provides loans at 2.5% interest to low-income home-

owners. PHRP loans finance measures to correct code viola-

tions and save energy as well as general property improve-

ments. The maximum loan amount is $20,000. PHRP financing

in 2002 totaled $1,118,093 for 62 housing units.

HOMEOWNERS’ EMERGENCY LOAN PROGRAM (HELP)

HELP’s 0% loans enable homeowners to repair major defects

considered health and safety hazards. Loans up to $5,000 are

available to very low-income households. In 2002, URA pro-

vided HELP loans valued at $118,032 for 21 housing units.

PITTSBURGH PARTY WALL PROGRAM (PPWP)

PPWP provides assistance to qualified property owners for the

reconstruction of exposed party walls on residential row struc-

tures. Through PPWP, URA offers grants to low-income home-

owners, and to landlords of rental properties where a majority

of the tenants are of low income. In 2002, URA provided PPWP

grants valued at $410,428 for 43 housing units.

SINGLE-FAMILY HOUSING: NEW CONSTRUCTION

The Pittsburgh Housing Development Corporation (PHDC) led

a significant initiative in South Homewood that will feature

construction of seven detached homes on ten FINANCE

STREET lots. The development includes two particularly

important components.

First, PHDC is working with the Black Contractors

Association, Inc. (BCA), which is assisting with community

relations, design review and maximization of the commitment

to minority- and woman-owned businesses as contractors and

subcontractors. Principal contractor for the development is

Laco Contracting Company, a member of the BCA.

In addition, the initiative is among the first in the state to

target sites in the Keystone Opportunity Expansion Zone

(KOEZ) program, which will offer homeowners 100 percent

abatement of state and local real estate and wage taxes

through 2010. This benefit will serve to make the homes more

affordable to low-income buyers.

The three-bedroom homes will be priced from $110,000 to

$120,000. For the $1.26 million development, URA is providing

$597,203 in construction financing and $265,000 in mortgage

assistance, while Dollar Bank is providing $600,000 in con-

struction financing. Construction is scheduled to begin early

in 2003.

Other important single-family construction projects advanced

during the year, including:

300–306 NORTH LANG AVENUE , featuring four three-bedroom

homes in two duplexes, with sales prices from $156,500 to

$165,000. PHDC served as developer for the initiative, with vital

assistance from the North Point Breeze Planning and

Development Corporation. For the $782,000 project, URA is

H O U S I N G D E V E L O P M E N TU R A A N N U A L R E P O R T 02

18 19

300–306 NORTH LANG AVENUE LIBERTY LOFTS BEDFORD HILL

H O U S I N G D E V E L O P M E N T

providing $266,000 in construction financing, with $450,000 in

financing from Dollar Bank and $10,000 in predevelopment

financing from the Community Design Center. A second phase

of this initiative will involve the rehabilitation of an adjacent

multifamily structure plus the construction of three new units.

PERRYSVILLE AVENUE–MARSHALL AVENUE . This Obser-

vatory Hill development includes the new construction of three

homes and rehabilitation of four housing structures. In an inno-

vative feature, two of the rehabilitated homes will include rear

apartments for lease. Observatory Hill, Inc., is developer of the

more than $1.6 million initiative, with Northside Leadership

Conference serving as project manager. Sales prices range

from $135,000 to $206,000. URA’s financing assistance

includes $674,772 in construction financing and $289,400 in

permanent financing through the NHP and HRP programs.

Others on the financing team include Dollar Bank and the

Commonwealth of Pennsylvania, through a grant arranged by

Rep. Don Walko. Construction is underway.

SINGLE-FAMILY HOUSING: REHABILITATED HOUSING

URA is working with the Brighton Heights Citizens Federation

(BHCF) to rehabilitate three historic California Avenue struc-

tures. Designed by noted architect Frederick Osterling, the

dwellings once embodied the elegance and appointments of

the Victorian style but have long been vacant. Through the ini-

tiative, BHCF will convert the structure to eight luxury condo-

miniums ranging in price from $125,900 to $143,900. The first

floor of each building will preserve the formality of the original

Victorian design, while the second and third floors will feature

loft-style units.

Northside Leadership Conference and No Wall Produc-

tions, Inc. serve as project management consultants for the

development, which will be known as OSTERLING FLATS . The

Authority is providing $652,000 in construction financing for

the more than $1.48 million initiative, with construction financ-

ing from Dollar Bank. URA also is providing buyers with

$307,500 in mortgage assistance through the Housing

Recovery Program.

Also advancing during the year were these rehabilitation

initiatives:

BREWER ’S ROW , which features the acquisition and rehabilita-

tion of six Vinial Street rowhouses and two Voskamp Street

homes for conversion by the Spring Garden Neighborhood

Council to ten housing units. Sales prices will range from

$109,900 to $124,900, with mortgage assistance available to

buyers through URA’s $304,000 in Housing Recovery Program

assistance. The Authority also is providing $765,000 in con-

struction financing for the $1.575 million development, with

construction financing from Dollar Bank. The state is providing

$10,000 through financing arranged by Rep. David Marinek.

Construction is expected to be completed early in 2003.

213–221 PAULSON AVENUE , a development that represents a

productive partnership of PHDC and Mt. Ararat Community

Renaissance, Inc. (MACRI), which promotes spiritual, social

and economic growth in Lincoln / Larimer and East Liberty.

PHDC has acquired five Paulson Avenue structures and will

convert them to single-family homes. For its part, MACRI will

stage homeownership seminars for its members and the com-

munity to prepare them to purchase the dwellings. Construction

commenced in 2002. For the $847,700 development, the

Authority is providing $380,381 in construction financing and

$170,000 in HRP mortgage assistance. MACRI is providing

$100,000, with construction financing from Mellon Bank

Community Development Corporation.

MULTIFAMILY RENTAL HOUSING

The site of the former West Lake School in Elliott soon will be

serving the community again.

With the demolition of the vacant school completed,

WESTLAKE ELDERLY APARTMENTS , Inc. will construct a three-

story building that will offer 27 one-bedroom apartments

targeted to the elderly. The apartments will be affordable—

projected monthly rent is $308 —with rental assistance avail-

able to tenants through the federal Section 8 program. The ini-

tiative not only will create much-needed housing for elderly

tenants, but it also will remove a blighting influence in the

neighborhood.

For the more than $2.54 million development, URA is pro-

viding $304,440 from the Rental Housing Development and

Improvement Program. The U.S. Department of Housing and

Urban Development is providing the bulk of the funding, with

additional financing from the Federal Home Loan Bank

Affordable Housing Program through West View Savings Bank.

Construction of Westlake Elderly Apartments is set for

2003 completion.

A dream comes true

U R A A N N U A L R E P O R T 02

20 21

When Dolores Kennedy (left) spied the vacant 21/2-story Italianate

structure on Liverpool Street in Manchester, she knew she

wanted to leave her Mexican War Streets apartment and make

this once-elegant building her home. But it didn’t seem like her

transition to homeownership was destined to happen.

“From the first time I saw the house, I knew it had great

character,” Kennedy recalls. “I liked that it was in a historic part

of town, in a neighborhood with both new people and longtime

residents. But the owner didn’t want to rent because she’d had

problems with tenants, and I wasn’t sure I could afford owner-

ship. We would go back and forth. Finally, I told her I would see

if I could get a mortgage.”

Kennedy’s first step toward the purchase was assistance

from Dollar Bank’s Credit Enhancement Program, which

helped her develop savings for her downpayment. But even if

she could afford the $59,000 asking price, she was facing

extensive rehabilitation costs for the building, which had

declined substantially in its more than 100 years. For help,

Kennedy turned to URA’s Housing Recovery Program (HRP).

Among the Authority’s many housing initiatives, HRP is

unique; its financing assistance is targeted to purchasers of

seriously deteriorated homes where repairs usually are beyond

private means. HRP has helped Pittsburgh residents preserve

and refurbish hundreds of historic homes in Pittsburgh, and

the Liverpool Street dwelling was about to join their ranks.

Kennedy, who works for Mellon Bank’s Global Security

Services, received $35,000 in HRP financing — as well as

friendly advice from Alicia Majors, URA program officer.

“She gave all of us in the program a time-line of how

things work so we would know when to expect things to hap-

pen,” Kennedy says. “HRP financing was very important.

Without it, I wouldn’t have been able to buy the house and

undertake the rehabilitation, too.”

With her financing secured, Kennedy and her contractor,

Susan Larkin (right) of DKY Contractors, went to work. They

installed a new kitchen — probably the most labor-intensive

aspect of the rehab — and sanded and refinished the floors on

the first and second floors to reveal and highlight the original

grain-painted wood. They converted one of the home’s three

bedrooms to a spacious dressing area. They improved and

updated electrical wiring. They installed central air condition-

ing and a new furnace. They painted and they patched.

In February 2002, a scant two months after the closing,

Kennedy occupied her dream house.

“If you really want to get into an older home, HRP is the

best way to go,” she says. “It’s a really good program. If you

do participate in HRP, try to find a contractor early.”

Today, Kennedy is enjoying homeownership while still

cognizant of its many demands.

“It’s nice to know that if I want to put in a nail or paint

something green, I can do that,” she says. “But it is a huge

responsibility. Whenever anything creaks or acts like it’s ready

to break down, you know it’s your job. Some days, I feel like I

could go back to renting. Other days, when I sit out on the

porch or look out at my yard, I say, ‘I really like this.’ Those

days outnumber the bad days.”

As part of its mission of fostering economic growth in the City,

the Urban Redevelopment Authority of Pittsburgh initiates and

manages relationships with a growing network of cities, gov-

ernments and businesses around the world. These bilateral

and multilateral programs attract foreign companies to the

City, generate trade and technology-licensing opportunities for

Pittsburgh firms, and include cultural exchanges that enhance

international respect and harmony. The initiative is especially

meaningful to Pittsburgh residents, who treasure their ethnic

and national heritage.

At the heart of the International Initiative are “Sister City”

relationships, which URA coordinates in conjunction with the

Greater Pittsburgh Sister Cities Association (GPSCA), and

Business Partnership Agreements. In 2002, Pittsburgh expand-

ed its roster of Sister City partners to 14 with the addition of

Presov, Slovakia. Plans also were advanced for 2003 finaliza-

tion of an agreement with Danang, Vietnam.

Pittsburgh’s Sister Cities now include: Sofia, Bulgaria;

Wuhan, China; Zagreb, Croatia; Matanzas, Cuba; Ostrava,

Czech Republic; Sheffield, England; Saarbrucken, Germany;

Omiya, Japan; Skopje, Macedonia; San Isidro, Nicaragua;

Fernando de la Mora, Paraguay; Presov, Slovakia; Bilbao,

Spain, and Donetsk, Ukraine.

Through collaboration with such partners as the Pittsburgh

Regional Alliance, the Southwestern Pennsylvania Commission,

the Greater Pittsburgh Convention & Visitors Bureau, the Japan

America Society, the Japan Association of Greater Pittsburgh,

the Duquesne Small Business Development Corporation,

universities, corporations and many others, the Authority looks

forward to joint efforts that will strengthen existing connections

and create new global relationships.

The year 2002 brought gratifying activity on both the

inbound and outbound fronts. In March, URA hosted a delega-

tion led by the new mayor of Wuhan, an event that featured 17

one-on-one sessions between local businesses and Wuhan

representatives. An even larger Wuhan delegation returned in

September for business discussions and a celebration of the

20th anniversary of the Pittsburgh–Wuhan relationship.

To mark the anniversary URA organized an Autumn Moon

Festival, a Chinese tradition, that featured dragon boat races.

The event was held at North Shore Park and included six of

Pittsburgh’s major Chinese organizations, 28 participating

restaurants ... and more than a dozen dragon boat teams.

The City also hosted a 20-member educational delegation

from Saitama City and a 50-member group from Bilbao for

exploration of a Pittsburgh-Bilbao Business Partnership.

Outbound, Mayor Tom Murphy led a 25-member trade

mission to Wuhan and Beijing, while a 25-person delegation

visited Saitama City to participate in the Invitational Junior

World Cup Soccer Tournament.

The International Division also:

Continued to develop a Web page to link to the Sister Cities

Association, Sister Cities International and various Sister City

committees.

Began exploring joint efforts with the Pittsburgh School District

for Sister City activities — especially those relating to China —

that could involve City pupils.

Worked with the Pittsburgh Regional Alliance and the

Pittsburgh Robotics Institute to identify potential business

partners for Yaskawa Electric Company of Kitakyushu, Japan.

Sponsored the fourth annual Asian Art Display in the lobby of

the City-County Building.

Welcomed a second Wuhan representative to Pittsburgh for a

six-month temporary employee term focused on establishing

new business partnerships.

Accepted an invitation to visit Astana, Kazakhstan.

Fostering global connections INTERNATIONAL INITIATIVE

I N T E R N A T I O N A L I N I T I A T I V EU R A A N N U A L R E P O R T 02

22 23

When the Urban Redevelopment Authority of Pittsburgh acquired

the sprawling Nine Mile Run site in 1995, it represented the

largest land purchase in the Authority’s history. But just what

did the URA have in this 238-acre wasteland? For a century,

the site had been used as a dumping ground for industrial

waste. Its mountains of slag towered as high as 25 feet, an

eyesore visible to the neighborhoods of Squirrel Hill and

Swisshelm Park ... and to travelers along the Parkway East.

It took uncommon vision to imagine a sparkling new com-

munity on this site, but that’s just what URA and its development

partners brought to the task. The team fashioned a multifaceted

plan that envisioned several phases.

First, the Authority worked with neighborhood groups to

create vehicular access and traffic patterns that would comple-

ment existing communities, as well as ongoing pollution moni-

toring and control features. From this public-private partnership,

a master plan emerged calling for 713 homes that would offer an

appealing blend of townhouses, detached homes and apart-

ment units — all to be available at market rates.

Next came the clean-up, which included the reshaping of

600,000 cubic yards of slag, application of three feet of clean

fill and financial assistance from the U.S. Environmental

Protection Agency and the City of Pittsburgh. A soil blend of

granular slag, wood chips and fertilizers was distributed

throughout the tract, which also was enhanced with deciduous

and coniferous seedlings and saplings. Trees, that is, which

shortly began to sprout on the site, now known as Summerset

at Frick Park.

Finally, the site was ready for its $243 million develop-

ment, a task entrusted to an experienced team called

Summerset Land Development Associates. The homes they

designed and built proved so attractive that a lottery for the ini-

tial 98 Summerset homes was fully subscribed ... and future

lotteries were scheduled.

The first Summerset residents moved in during the year,

with the promise of more to follow. Restoration of the site to

the tax rolls is expected to create $2.9 million annually in new

local tax revenues and a one-time windfall of $3.6 million in

transfer taxes. Summerset homes will serve as a magnet for

new City residents, but the benefits transcend even that.

As part of the development, the Authority is extending

Frick Park to Summerset and constructing a new gateway to

the park that will provide compelling views of Frick’s trails. This

project also includes the purification of Nine Mile Run, the last

remaining free-flowing stream in the City but long a vehicle for

pollution. With assistance from the U.S. Army Corps of

Engineers, Nine Mile Run will flow pure again.

And as motorists flow along the Parkway, they’ll be

amazed at what they see: Where once loomed a great gray

industrial ghost, the sun now rises on Summerset.

The sun rises on Summerset

F E A T U R EU R A A N N U A L R E P O R T 02

24 25

SUMMERSET AT FRICK PARK

U S E O F F U N D S

Housing $ 32,512,500 48.0%

Bedford 8,990,000 13.3%

Station Square 7,080,000 10.5%

Panther Hollow 4,130,000 6.1%

Business Development Center 3,550,000 5.2%

Administration 3,391,500 5.0%

Other 3,150,000 4.7%

Nine Mile Run 2,855,687 4.2%

South Side Works 1,000,000 1.5%

Residential Riverfront Development 1,000,000 1.5%

T O TA L U S E S $ 67,659,687 100.0%

2003 URA Capital Budget

2 0 0 2 Housing Programs

P R O G R A M S C L O S E D / U N I T S U R A F U N D I N G

P U R C H A S E D

H O M E R E H A B I L I TAT I O N P R O G R A M S

Home Improvement Loan Program 61 63 $ 1,088,990

Pittsburgh Home Rehabilitation Program 61 62 1,118,903

Homeowners’ Emergency Loan Program 21 21 118,032

Home Accessibility Program for Independence 5 5 19,680

Pittsburgh Party Wall Program 43 43 410,428

Subtotal 191 194 2,756,033

M O R T G A G E A D M I N I S T R AT I O N

Pittsburgh Home Ownership Program 166 171 10,666,748

Neighborhood Housing Program 26 26 906,300

Housing Recovery Program

Bond Loans 10 10 435,845

Deferred Loans 10 10 212,419

HRP Developer-Deferred 19 19 628,133

Down Payment / Closing Cost Assistance 122 124 276,063

(Less Multiple Funding Sources) 154 156

Subtotal 199 204 13,125,508

R E S I D E N T I A L D E V E L O P M E N T P R O G R A M S

Pittsburgh Housing Construction Fund 30 173 5,229,069

Pittsburgh Development Fund 2 2 99,975

Community Development Investment Fund 5 38 500,000

Rental Housing Development and Improvement Program 17 1042 5,896,801

Rental Rehabilitation Program 5 31 167,000

City Bond Funds /Other — — —

Multifamily Revenue Bonds — — —

(Less Units with Multiple Funding Sources,

Units Previously Counted or Pre-development Loans) 20 757 —

Subtotal 39 529 11,892,845

T O TA L 429 927 $ 27,774,386

S O U R C E : 2 0 0 3 C I T Y O F P I T T S B U R G H C A P I TA L B U D G E T P L U S T I F A C T I V I T Y

S O U R C E O F F U N D S

URA Housing Bonds $ 26,500,000 39.2%

URA TIF Bonds 11,210,000 16.6%

Other Federal Funds 11,244,000 16.6%

CDBG 7,960,000 11.8%

State Funds 5,545,687 8.2%

Pittsburgh Water & Sewer Authority 2,800,000 4.1%

City Capital Bond Funds 2,400,000 3.5%

T O TA L S O U R C E S $ 67,659,687 100.0%

F I N A N C I A L I N F O R M A T I O N

S O U R C E O F F U N D S

U S E O F F U N D S

URA Housing Bonds39.2%

Housing48.0%

Bedford13.3%

Station Square10.5%

PantherHollow6.1%

Business Develop-ment Center5.2%

Admin5.0%

Other4.7%

Nine Mile Run4.2%

South Side Works1.5%

Residential Riverfront Development1.5%

URA TIF Bonds16.6%

Other Federal Funds16.6%

CDBG11.8%

City Capital Bond Funds3.5%

Pgh Water &Sewer 4.1%

State Funds8.2%

U R A A N N U A L R E P O R T 02

26 27Y E A R T O D AT E , D E C E M B E R 3 1 , 2 0 0 2

N E I G H B O R H O O D D E V E L O P M E N T U N I T S U R A F U N D I N G T O TA L C O S T

Brighton Heights 3603–05–07 California Avenue 8 $ 652,000 $ 1,482,000

Carrick 210 Parkfield; 426 Ariston Streets 2 20,200 147,037

Central North Side 1506–1507 Arch Street 2 109,234 245,127

Crawford Roberts 515 Heldman Street 1 95,264 96,638

East Allegheny 1015–1025 Vinial; 1106 and 1108 Voskamp 10 615,000 1,575,000

East Allegheny 416, 418, 420 Pressley Street 3 176,600 341,000

East Liberty 713–723 Mellon Street 6 204,107 372,883

Garfield 5160 Dearborn; 307 N. Evaline; 123 N. Millvale 6 449,040 1,471,601

Highland Park 817 Mellon Street 1 98,900 202,500

Homewood North 7153 Monticello Street 1 89,975 153,000

Homewood North 7136 Idlewild Street 1 65,523 132,000

Homewood West Finance Street 7 597,203 1,260,000

Larimer 213–221 Paulson Avenue 5 358,381 847,700

Middle Hill 611–613 Chauncey Street 2 75,000 200,000

Perry North Perrysville Avenue / Marshall 9 674,772 1,609,202

Perry South 2142 Perrysville Avenue 1 10,000 68,102

Perry South 2325 Hazleton Street 1 15,145 65,145

Point Breeze North 300 and 306 N. Lang Avenue 4 266,000 782,000

South Side Flats South Shore Place Phase 3 18 375,580 3,505,700

South Side Flats South Shore Place Phase 3 Lofts 4 32,000 875,000

Upper Hill 3343 Milwaukee Street 1 48,029 109,500

T O TA L 93 $ 5,027,953 $ 15,541,135

Marshall–Shadeland 9 9 $ 284,672

Middle Hill 16 24 294,151

Morningside 6 6 357,766

Mt. Oliver — — —

Mt. Washington 8 8 375,022

New Homestead 1 26 125,000

North Oakland 1 1 2,900

North Shore — — —

Northview Heights — — —

Oakwood 1 1 6,250

Overbrook 6 7 228,630

Perry North 7 7 333,533

Perry South 10 21 904,340

Point Breeze — — —

Point Breeze North 5 9 442,569

Polish Hill — — —

Regent Square — — —

Ridgemont — — —

St. Clair — — —

Shadyside 1 3 2,982

Sheraden 9 9 308,804

South Oakland 5 16 225,550

South Side Flats 16 38 936,077

South Side Slopes 3 3 90,556

Spring Garden 8 18 878,508

Spring Hill–City View 4 4 110,046

Squirrel Hill North 1 1 6,395

Squirrel Hill South 5 5 249,504

Stanton Heights 9 84 592,055

Strip District — — —

Summer Hill 1 1 10,761

Swisshelm Park 4 94 319,690

Terrace Village 2 146 315,000

Troy Hill 4 4 43,545

Upper Hill 9 13 283,750

Upper Lawrenceville 6 6 221,160

West End — — —

West Oakland 8 9 282,868

Westwood 2 2 6,396

Windgap — — —

T O TA L 448 1693 $ 26,700,240

Plus Down Payment / Closing

Cost Assistance Grants 122 124 $ 276,063

(Less Multiple Units) 174 913

T O TA L 396 904 $ 26,976,303

N E I G H B O R H O O D L O A N S U N I T S U R A F U N D I N G

Allegheny West 1 1 $ 40,000

Allegheny Center 1 1 67,900

Allentown 2 2 28,675

Arlington 2 2 24,840

Arlington Heights — — —

Banksville 4 4 217,152

Bedford Dwellings 3 150 2,934,540

Beechview 14 14 505,669

Beltzhoover 7 28 385,066

Bloomfield 10 14 480,707

Bluff 11 22 363,690

Bon Air 1 1 47,007

Brighton Heights 5 13 764,151

Brookline 13 13 706,770

California–Kirkbride 7 7 106,682

Carrick 15 17 481,120

Central Business

District (CBD) 2 265 504,200

Central Lawrenceville 11 13 434,662

Central NorthSide 11 16 553,748

Central Oakland 2 2 109,029

Chartiers City — — —

Chateau — — —

Crafton Heights 4 4 183,588

Crawford Roberts 6 6 183,239

Duquesne Heights 2 2 77,250

East Allegheny 10 13 853,028

East Carnegie — — —

East Hills 2 2 21,478

East Liberty 16 208 1,547,786

Elliott 4 31 408,169

Esplen — — —

Fairywood 1 1 21,955

Fineview 6 18 319,464

Friendship 8 9 375,975

Garfield 12 18 758,100

Greenfield 10 10 373,395

Hays — — —

Hazelwood 4 5 71,898

Highland Park 6 8 338,427

Homewood North 11 23 597,363

Homewood South 18 49 1,679,237

Homewood West 3 78 215,985

Knoxville 5 5 83,126

Lawrenceville — — —

Larimer 2 7 367,837

Lincoln Place 3 3 221,655

Lincoln–Lemington–Belmar 8 8 240,262

Lower Lawrenceville 9 16 343,440

Manchester 9 9 423,495

F I N A N C I A L I N F O R M A T I O N

2 0 0 2 Neighborhood Housing Production2 0 0 2 For Sale Housing Developments

2 0 0 2 Rental Housing Developments

N E I G H B O R H O O D D E V E L O P M E N T U N I T S U R A F U N D I N G T O TA L C O S T

Bedford Hope VI Phase 1A 48 $ 1,032,277 $ 5,938,077

Bedford Hope VI Phase 1B 99 1,886,236 11,389,263

Bloomfield 5408–5420 Penn Avenue 4 143,081 386,311

Central Business District 947 Liberty Avenue 4 255,000 995,000

Elliott Westlake Elderly Apartments 27 304,440 2,545,740

Homewood West East End Senior Housing 75 150,000 10,372,879

Homewood West Kelly Hamilton IV 24 248,620 497,551

Middle Hill 2435 Webster Avenue 6 62,450 147,773

Swissheim Park Riverview Towers 90 204,000 1,980,000

Terrace Village 2700 Centre Avenue 58 125,000 238,729

West Oakland 3311 Terrace; 200–02 Robinson Street — 25,000 30,000

T O TA L 435 $ 4,436,104 $ 34,521,323

N E I G H B O R H O O D L O A N S U N I T S U R A F U N D I N G

U R A A N N U A L R E P O R T 02

28 29

The Urban Redevelopment Authority of Pittsburgh helps gen-

erate, stimulate and manage growth and development in the

City of Pittsburgh. Created in 1946 to fight blight through urban

renewal, the Authority now carries out the City’s major devel-

opment projects, programs and activities.

The activities of URA are made possible through wide-

spread community support. This includes assistance from fed-

eral, state and City elected officials, as well as support from

the U.S. Department of Housing and Urban Development, the

Pennsylvania Department of Community and Economic

Development, the Pennsylvania Department of Commerce, the

foundation community, various departments within the City of

Pittsburgh, and local community development corporations

and neighborhood organizations within the City.

URA currently has approximately 101 employees and an

administrative budget in excess of $8.4 million. It carries out its

work through its Executive Offices and the departments and

divisions described below, with support from its Legal

Department.

EXECUTIVE OFFICES

In addition to management and policy direction, the Executive

Offices encompass a broad range of development activities,

including oversight of the Pittsburgh Economic and Industrial

Development Corporation (PEIDC), the Pittsburgh Housing

Development Corporation (PHDC) and the Allegheny

Pittsburgh Development Corporation (APBDC).

Under the direction of the Deputy Executive Director for

Development, the Development staff is responsible for the

planning, financing and management of major real estate

development projects, that is, those having a significant

impact on land use and economic growth, such as South Side

Works and Summerset at Frick Park.

Under the direction of the Director of Administration, its

staff and the divisions of Information Systems, and Internal

Audit and Compliance provide overall support for Authority

operations and minority business enterprises and woman

business enterprises.

Allegheny West 99 248 $ 4,825,199

Allegheny Center 5 4 136,700

Allentown 673 871 5,969,409

Arlington 447 468 3,590,429

Arlington Heights 7 8 77,126

Banksville 182 181 2,956,995

Bedford Dwellings 104 197 3,562,194

Beechview 1157 1324 13,777,010

Beltzhoover 921 988 8,512,189

Bloomfield 818 1065 12,601,589

Bluff 158 212 1,860,895

Bon Air 128 138 1,700,480

Brighton Heights 739 1080 14,238,423

Brookline 1546 1678 23,664,491

California–Kirkbride 275 395 6,653,041

Carrick 1219 1426 15,956,485

Central Business

District (CBD) 12 563 8,584,833

Central Lawrenceville 579 979 11,402,035

Central NorthSide 979 2154 35,042,723

Central Oakland 159 298 3,762,565

Chartiers City 43 43 603,988

Chateau 89 124 2,011,252

Crafton Heights 236 241 4,493,290

Crawford Roberts 660 1679 38,174,043

Duquesne Heights 315 338 3,997,780

East Allegheny 434 861 14,881,527

East Carnegie 67 70 885,213

East Hills 610 693 5,711,915

East Liberty 502 1153 19,575,838

Elliott 479 548 4,763,776

Esplen 128 141 1,066,484

Fairywood 122 121 1,300,303

Fineview 434 526 8,864,116

Friendship 147 405 9,647,349

Garfield 1119 1437 17,926,494

Greenfield 955 1028 14,063,746

Hays 107 112 879,491

Hazelwood 1240 1582 15,821,103

Highland Park 393 552 7,451,189

Homewood North 1346 1583 8,798,110

Homewood South 1218 1270 14,147,690

Homewood West 369 570 3,179,667

Knoxville 793 982 9,456,605

Lawrenceville — — —

Larimer 729 963 5,728,119

Lincoln Place 351 358 5,052,001

Lincoln–Lemington–Belmar 1095 1250 9,571,944

Lower Lawrenceville 456 895 8,416,689

Manchester 778 1327 26,995,402

Marshall–Shadeland 824 1039 11,330,993

Middle Hill 756 1173 8,530,577

Morningside 332 349 4,626,499

Mt. Oliver 86 86 977,704

Mt.Washington 1298 1719 16,761,536

New Homestead 94 94 913,272

North Oakland 48 277 2,122,840

North Shore 18 250 8,171,273

Northview Heights 17 18 174,859

Oakwood 71 73 1,097,868

Overbrook 494 495 7,472,420

Perry North 621 735 9,068,689

Perry South 1272 1784 26,270,762

Point Breeze 228 274 3,043,549

Point Breeze North 194 370 4,006,756

Polish Hill 285 457 4,772,521

Regent Square 48 55 858,094

Ridgemont 59 61 869,408

St. Clair 65 70 538,106

Shadyside 232 403 5,481,201

Sheraden 793 793 8,317,960

South Oakland 671 854 12,780,221

South Side Flats 969 2031 40,432,227

South Side Slopes 843 947 8,462,071

Spring Garden 272 332 5,316,242

Spring Hill–City View 516 565 5,774,463

Squirrel Hill North 101 109 1,295,885

Squirrel Hill South 443 626 7,009,855

Stanton Heights 358 361 5,739,496

Strip District 54 57 899,527

Summer Hill 107 110 1,712,453

Swisshelm Park 104 100 1,231,045

Terrace Village 88 690 19,419,413

Troy Hill 222 248 3,692,475

Upper Hill 623 681 5,694,059

Upper Lawrenceville 602 624 5,424,413

West End 41 53 441,087

West Oakland 285 434 6,903,981

Westwood 178 183 2,606,742

Windgap 92 98 1,268,137

T O TA L 39,826 54,807 $ 703,850,614

Plus Closing Cost

Assistance Grants $ 276,063

T O TA L $ 704,126,677

URA Profile

A B O U T T H E U R A

2 0 0 2 Cumulative NeighborhoodHousing Production

N E I G H B O R H O O D L O A N S U N I T S U R A F U N D I N G N E I G H B O R H O O D L O A N S U N I T S U R A F U N D I N G

U R A A N N U A L R E P O R T 02

30 31

$

BUSINESS DEVELOPMENT CENTER (BDC)

The Business Development Center encourages and directs

private investment in business and business facilities in

Pittsburgh for the public interest. The BDC utilizes several

revolving loan funds to provide below-market interest rate gap

financing for: the acquisition of land, building construction and

rehabilitation; equipment; leasehold improvements, and work-

ing capital. BDC also provides tax-exempt fixed asset financ-

ing for qualified borrowers.

Important financing tools for City of Pittsburgh businesses

managed by the BDC include the Urban Development Fund,

the Pittsburgh Business Growth Fund, Tax-exempt Industrial

Development Bonds and Notes, the Pittsburgh Business

Development Corporation, and the Streetface programs.

The BDC provides direct financing and administrative

support for projects owned and managed by the Pittsburgh

Economic and Industrial Development Corporation, and it mar-

kets the Pennsylvania Industrial Development Authority loan

program to qualified industrial firms on behalf of PEIDC.

The Business Development Center performs site develop-

ment analysis and manages the Authority’s neighborhood

commercial and industrial real estate development projects.

Also, the center offers advice on business location and serves

as a catalyst and advocate for business development in the

City of Pittsburgh.

Other important initiatives of the BDC include administra-

tion of the Mainstreets Pittsburgh program and the creation of

the Technology Zone, the successor to the Enterprise Zone

Program.

HOUSING DEPARTMENT

The Housing Department is responsible for the operation of all

housing programs, and coordinates housing development

activities and the design of housing policy for the Authority.

The department carries out redevelopment activities by

providing below-market interest mortgage financing to pro-

mote homeownership and home improvement, by financing

the new construction and rehabilitation of housing for owners

and renters, and by raising substantial funds through the

issuance of mortgage revenue bonds.

Another vital financing tool managed by the department is

the Pittsburgh Housing Development Corporation, which

assists neighborhood-based organizations with major housing

development initiatives.

In addition, the department concentrates on the revitaliza-

tion of Pittsburgh’s older neighborhoods and housing stock

and the attraction of new residents to the City.

ENGINEERING AND CONSTRUCTION DEPARTMENT

The Engineering and Construction Department is responsible

for the detailed planning, engineering and construction man-

agement associated with the Authority's publicly supported

development projects.

The department also conducts site feasibility evaluations,

establishes design guidelines for projects and programs, and

reviews the design of development proposals submitted to

the Authority.

FINANCE DEPARTMENT

The Finance Department is responsible for the accounting and

treasury operations of the Authority. It monitors bonds issued

for Housing and Economic Development programs and per-

forms ongoing oversight of the Authority’s loan portfolio.

The department supports the information needs of both

internal departments and external constituencies, such as

funding sources and regulatory bodies.

REAL ESTATE DEPARTMENT

The Real Estate Department is responsible for all acquisition

and disposition of properties for the Authority. The department

works hand-in-hand with all other departments of the Authority

in assembling sites for redevelopment. It also acts as agent

for the City of Pittsburgh in assembling properties for City-

sponsored projects.

INTERNATIONAL INITIATIVE DIVISION

URA manages the City’s international initiatives, which include

a number of “Sister City” agreements and business partner-

ships. The Authority also pursues new opportunities with

selected countries.

PITTSBURGH ECONOMIC AND INDUSTRIAL DEVELOPMENT

CORPORATION (PEIDC)

URA provides staff and space for PEIDC, a state-licensed

industrial development corporation that serves as a conduit for

financing from the Pennsylvania Industrial Development

Authority (PIDA) and other state programs. PEIDC acts as a

last-resort real estate developer for industrial, commercial,

high-technology and retail initiatives.

PITTSBURGH HOUSING DEVELOPMENT CORPORATION (PHDC)

An affiliate of URA, PHDC serves as a housing developer

in Downtown Pittsburgh and the City’s neighborhoods. The

Authority provides staff and space.

ALLEGHENY–PITTSBURGH BUSINESS DEVELOPMENT

CORPORATION (APBDC)

This Small Business Administration-licensed corporation is a

conduit for SBA 504 debentures. URA provides staff and space.

Tom Murphy

Mayor, City of Pittsburgh

BOARD OF DIRECTORS

Thomas E. Cox,

Chairman

David E. Epperson, Ph.D.,

Vice Chairman

Dan B. Frankel,

Treasurer

Claire Staples,

Member

Sala Udin,

Member

EXECUTIVE STAFF

Mulugetta Birru, Ph.D.,

Executive Director

Jerome N. Dettore,

Deputy Executive Director

for Development

Joseph Gariti,

General Counsel

Constance L. Eads,

Director of Finance

John E. Coyne,

Director, Engineering and

Construction

Dennis M. Davin,

Director, Housing

Charles M. Powell,

Director, Administration

Susan Malys,

Manager, Real Estate

Robert Rubinstein,

Manager, Business

Development Center

David Serafini,

Manager, Pittsburgh Housing

Development Corporation

David Thomas,

Manager, Pittsburgh Economic

and Industrial Development

Corporation

Richard Snipe,

Coordinator, Faith Based Initiatives

DESIGN TERRI WOLFE, WOLFE DESIGN

PHOTOGRAPHY DAVID ASCHKENAS

DRAGON BOAT RACE PHOTO COURTESY OF BEN LEDOWITZ

WRITING EVAN PATTAK

PRINTING GEYER PRINTING COMPANY

U R A A N N U A L R E P O R T 02

32

URA Board of Directors

Mulugetta Birru, Ph.D., Executive Director

Thomas E. Cox, Chairman

Sala Udin, Board Member

Claire Staples, Board Member

Dan B. Frankel, Treasurer

David E. Epperson, Ph.D.,Vice Chairman