Developers blame city for delays in big Bakery Square expansion
PITTSBURGH (KDKA) -- After newly two years of seeking the necessary approvals, a half a billion-dollar development to bring new housing, offices and stores to East Liberty is still on hold.
The city planning commission this week once again delayed final approval of Walnut Capital's plans to double the size of Bakery Square. The development would bring sorely needed new jobs and residents to Pittsburgh but developers say the city has hit them with more than a year of delays.
When Google took over the Nabisco plant 14 years ago, Bakery Square was born, the tech giant spawning a new development of upscale shopping, office space and apartments.
But for nearly two years now, Walnut Capital's plan to double the size of Bakery Square with more stores, more offices and 350 high-quality residences has been in limbo for lack of city permits and approvals.
"I have a saying that 'time kills all deals.' And I think unfortunately with the environment that we're in, delays are not helpful," said Walnut Capital president Todd Reidbord.
Since taking office, the Gainey administration has withheld its approval of several projects over the issue of affordable housing, requiring a minimum of 10 percent affordable units in each residential development.
"I was clear with everybody and I meant what I said. We want to build affordable housing, and we're going to build affordable housing," Mayor Ed Gainey said in an earlier interview with KDKA-TV.
Developers complain that while the administration requires affordable housing it's done little to help finance their construction. Still in the past year and half, Walnut negotiated a benefits agreement with the surrounding community to help build or restore 100 homes off-site and more recently has come to an agreement with the administration for affordable housing on-site.
It expected to finally get the project approved this week, but the city planning commission postponed its decision until its September meeting over disagreement about building setbacks.
"There is still a little bit more work to go, and if you've been in this race for the last two years, a couple of more weeks isn't going to keep you from moving forward," the commission chairman said.
But Reidbord said they were disappointed there wasn't a vote.
Reidbord said the commission has once again kicked the can down road when time is of the essence. Walnut wants to begin construction of new offices to grow Pittsburgh's tech economy. He says there are 21 emerging artificial intelligence companies in the city and many have contacted him about expanding in Bakery Square.
"That's why we have to take advantage of this now. Again, delay hurts that. Any time you delay, things can go bad," Reidbord said.
Everyone agrees Pittsburgh sorely needs new jobs and new residents but instead of encouraging these projects developers say the city continues to stand in the way of getting them done.