Bill would give tax abatement to developers turning Downtown Pittsburgh office buildings into apartments
PITTSBURGH (KDKA) -- Downtown office buildings cleared out during the pandemic but efforts to convert them into apartment buildings have stalled.
On Monday, community leaders threw their support behind a new bill aimed at getting those projects going.
Concerned about the state of Downtown, business, union and community leaders are rallying behind a bill that would help revitalize its office towers, which emptied out during the pandemic and remain half empty as employees work from home.
"Downtowns have been changed forever. We're experiencing a monumental shift in how people work," said Jeremy Waldrup, the president and CEO of the Pittsburgh Downtown Partnership.
With a lack of demand for that office space, the owners of at least nine buildings are considering converting their properties from office to residential, transforming these high rises into apartment buildings and condominiums. But high interest rates, high construction costs and falling assessments are making it difficult for building owners to secure the necessary financing and make the projects profitable.
"We all recognize that the time has come to act, because we are about to rescue Downtown," said Pittsburgh City Councilman Bobby Wilson.
Under the bill, to be introduced Tuesday by Councilman Bobby Wilson, developers would get an already established 10-year tax abatement but on much more favorable terms which he says will incentivize those conversions and bring thousands of new residents downtown.
"Downtown Pittsburgh is home to nearly 7,000 residents ... We want that to be even greater through efforts like this. We want numbers in upwards of 15,000 residents enjoying Downtown," Wilson said.
And if successful, it'll create thousands of construction jobs in the process.
"This is also about adding family-sustaining union jobs to recreate our region like the workers have done for generations," said Darrin Kelly, the president of the Allegheny-Fayette Labor Council.
The conversions are massive projects in the tens of millions of dollars, and developers KDKA-TV has spoken with say they haven't gotten the help they need from the city to make them work. While they call the abatements a welcome step, they say they'll need additional help from the city, state and federal governments, something acknowledged by the bill's supporters.
"This is one potential tool today and we recognize that the mayor and others are working on many other opportunities and we are hopeful that together we will create a suite of tools and programs to foster the future of Downtown," said Stefani Pashman with the Allegheny Conference on Community Development.
Absent from today's announcement was Mayor Gainey or any representative from his administration. I reached out for comment on whether the mayor will support Wilson's bill but got no response.