PITTSBURGH | Development Rundown II

[BrianTH]

By the way, the adjacent Phillip Murray Elementary School has been closed and should be up for sale at some point. It may be premature for this as of now, but it would be nice if this urban farm plan helped that property get redeveloped at some point.

https://goo.gl/maps/wOlJL

[Evergrey]

http://online.wsj.com/articles/gold-rush-in-the-steel-city-1403821685

Gold Rush in the Steel City

Pittsburgh is going through a transformation to luxury living, but move-in-ready homes are in short supply

By ALINA DIZIK
June 26, 2014 6:28 p.m. ET

Living in a neighborhood called Mount Washington, Albert Elovitz, a 71-year-old retail entrepreneur, had stunning views of the Pittsburgh skyline. In time, however, Mr. Elovitz realized that he wanted to be a part of the revitalized downtown—not watching it from afar.


Retail owner Albert Elovitz traded his home in Mount Washington in the city's southern area for a 1,750-square-foot, roughly $1 million condo at the Residences. Billy Delfs for The Wall Street Journal

So in 2011, he spent about $1 million on a 1,750-square-foot condo in the Residences at Three PNC Plaza, where he has floor-to-ceiling windows that look out on high-rises around him. Now he walks to work. "If you're up high enough, the view is unforgettable," says Mr. Elovitz, the founder of local retailer Albert's Gifts.

He is one of the lucky ones. The Steel City's shift from a manufacturing base to well-paying jobs in education, medicine and technology over the past decade has created a shortage of luxury homes. A few upscale condo developments are in the works, but they tend to be smaller projects. That leaves many affluent buyers with two options: build or a gut-renovate a home, or move out to the suburbs.

"Inventory for the high end is pretty limited," says Helen Hanna Casey, president of Howard Hanna Real Estate Services, based in Pittsburgh. "We would do anything for three-bedroom condos in any price range."

The Residences, where Mr. Elovitz lives, was the city's first luxury residential development in more than 20 years when it was completed in 2009. The 28 condos sold out, and today there are just two units listed for sale—and the building has less inventory because some units have been combined.

Thomas Tull, 44, chief executive of Legendary Pictures and a part-owner of the Pittsburgh Steelers, started cobbling together a luxury home at the Residences two years ago. He has purchased 13,000 square feet in the building, including a seven-bedroom penthouse and another condo for a total of $7.9 million, minus renovations.

The building also is home to the Fairmont Hotel, which allows residents access to its amenities, including the concierge and room service, and is a short walk to downtown restaurants and museums.

These culinary and cultural attractions help lure the city's newest residents—average age 33—from across the country. Three years ago, Google and other tech businesses moved into offices in Bakery Square, a 6-acre redevelopment in the city's East End near Carnegie Mellon. Last year, the Great Allegheny Passage, a biking trail that starts in the city and ends in Cumberland, Md., officially opened.

The city "has an intimate feel to it," says Mr. Tull, the Los Angeles-based movie executive who sits on the board of trustees at Carnegie Mellon University and spends several months a year in Pittsburgh.

...

[Steel City Scotty]

I feel like I remember seeing this link recently posted on these boards, but I couldn't find it after scrolling through the past several pages.

Anyway, Pittsburgh Magazine uses Google Street View to illustrate the city's transformation from 2007 until today. It's fascinating.

http://www.pittsburghmagazine.com/Best-o...-Incredible-Transformation/#.U7NG25RdWa8

Unfortunately, my in-laws who live in the city share the views of several people in the "Comments" section who say that the problem with gentrification is that the "crime" and the "problematic population" (my nicer term) gets forced out and then takes over other neighborhoods, tarnishing their image.

Of course, my in-laws are a bit biased, having grown up in Homewood, Swissvale and Braddock in the 1960s.

[BrianTH]

Originally Posted by Steel City Scotty

Unfortunately, my in-laws who live in the city share the views of several people in the "Comments" section who say that the problem with gentrification is that the "crime" and the "problematic population" (my nicer term) gets forced out and then takes over other neighborhoods, tarnishing their image.

I won't say that never happens at all, but several points should be made in response to such people. First, localities can go into decline and become distressed for a lot of other reasons besides gentrification elsewhere in the region. Second, crime is not a zero-sum game, and in fact over the last 20+ years there has been a dramatic drop in crime rates in most U.S. cities, Pittsburgh included, such that the central city/suburb crime rate gap has closed quite a bit. Third, concentrated poverty likely leads to increased crime rates, and therefore eliminating the worst concentrations of poverty can likely decrease overall crime rates provided those populations are relocated into more mixed-income neighborhoods.

Of these points, I suspect the second is the most important to emphasize, because a lot of people still have a very dated vision of U.S. cities being warzones, which makes it hard to have a reasonable discussion about these issues.

[Austinlee]

^ the book Freakonomics has "controversial" data that suggests the huge crime decrease since the 1970s is due to the Roe vs Wade consequence of abortion becoming legal which means poor people have more abortions that works otherwise led to neglected children being raised that contribute largely to crime increases. It makes sense to me...

[BrianTH]

Originally Posted by Austinlee

^ the book Freakonomics has "controversial" data that suggests the huge crime decrease since the 1970s is due to the Roe vs Wade consequence of abortion becoming legal which means poor people have more abortions that works otherwise led to neglected children being raised that contribute largely to crime increases. It makes sense to me...

There has been some significant criticism of their methods. See, e.g., here:

http://www.economist.com/node/5246700

I actually think the best working theory is that a lot of it has to do with childhood exposure to lead. One of the major points in that theory's favor is that it has been corroborated in a variety of different countries. One representative piece:

http://www.bbc.com/news/magazine-27067615

Nevin and his supporters predicted that crime would fall in other nations 20 years after the banning of leaded petrol - and their theory appears to have played out in Europe. Leaded petrol was removed from British engines later than in North America - and the crime rate in the UK began to fall later than in the US and Canada. Lead theorists say that data they've collated and calculated from each nation shows the same 20-year trend - the sooner lead is removed from the environment, the sooner crime will begin to fall.

Here is how that correlation looks in the U.S., incidentally:



Anyway, a lot more work can and should be done on this issue. For very unfortunate reasons, however, China is gathering data that is proving supportive of the theory:

http://www.motherjones.com/kevin-drum/2014/07/china-study-another-link-lead-crime-hypothesis

[Austinlee]

^ that's seems like a more fringe theory than the abortion one.

[BrianTH]

Originally Posted by Austinlee

^ that's seems like a more fringe theory than the abortion one.

Why? There is plenty of neuroscience to back it up:

http://cen.acs.org/articles/92/i5/Crimes-Lead.html

It is a relatively new thing for it to be discussed outside academia, but over the last year and a bit it has been discussed increasingly widely in the popular press. I linked to the BBC, and here is Forbes:

http://www.forbes.com/sites/alexknapp/2013/01/03/how-lead-caused-americas-violent-crime-epidemic/

I'm not opposed to keeping an open mind, but I think the fact that there are well-proven neurological effects to lead exposure that could serve as the mechanism, and the fact that when they looked at other countries they found the timing they expected, both indicate the hypothesis should be taken as a very serious possibility.

Edit: By the way, I do recognize this theory has a lot of "natural" enemies. There are some who don't like any sort of suggestion that crime may often have a neurological basis. And there are also those who don't like any sort of suggestion that pollutants can have serious effects that only show up many years later. And so on. But that's what science is for--to figure out truths even when some people don't like them.

Second edit: This Guardian piece may be useful for those who feel strong skepticism when first hearing this theory:

http://www.theguardian.com/commentisfree/2013/jan/07/violent-crime-lead-poisoning-british-export

[Austinlee]

It just seems that lead poisoning would be health related and not a breakdown of empathy.

[Found5dollar]

correlation and causation are two different things

http://www.tylervigen.com/

[WillyC]

Not that I am going to delve into is Freakonomics wrong or right debate. Read the book, found it humorous.

I will say that some of the side effects of lead poisoning are: reduced IQ, irritability, attention issues, and aggressive behavior.

And... just to note facts from the book, Freakonomics noted that crime fell earlier in states that allowed abortion. It should also be noted many of these states were also the states that acted earlier than others on reducing lead exposure.

[BrianTH]

Originally Posted by Austinlee

It just seems that lead poisoning would be health related and not a breakdown of empathy.

The C&EN article I linked has a lot of great information on that subject. The upshot is that lead appears to affect brain development in several different ways that collectively increase the risk of aggressive and antisocial behavior. The article mentions interference with the dopamine system (which "controls reward and impulse behavior"), glutamate system ("responsible in part for learning and memory"), and the process of synaptic pruning (which could affect "judgment, impulse control, anticipation of consequences"); also gray matter loss in the ventrolateral prefrontal cortex and the anterior cingulate cortex ("areas known for impulse control, emotional regulation, and decision making"); lowered IQ (which can lead to lower self-esteem, frustration, and delinquent behavior); and inhibition of N-methyl-d-aspartate receptor (NMDAR is "crucial for brain development, learning, and memory processes").

Of course the philosophical point is that there is not necessarily a sharp distinction between "health related" affects and psychological affects when it is the health of the brain we are talking about. But this is getting into the area that makes some people profoundly uncomfortable, if not downright hostile--they perceive a serious challenge to their worldview in the concept that a lot of crime in recent years might be attributable to childhood exposure to a pollutant. That just isn't the sort of story they want to tell about crime--or, perhaps more importantly, the sort of story they want to tell about criminals.

[BrianTH]

By the way, I realize all this has gotten very far off the main track of this thread, but I do in fact think it is a topic worth keeping track of if you are interested in the future of urban development.

There are some immediate implications, like that we should be even more aggressive about lead remediation. But I also think perceptions of crime risk remain one of the main negatives associated with the possibility of living in "inner city" neighborhoods.

So if it turns out that lead was a major contributor to such crime risk in recent decades AND that we are now likely permanently reducing that risk through reducing lead exposure, we in turn should expect the closing of the central-city/suburban crime rate gap in recent years to be permanent. And that in turn means we should perhaps expect a permanent upward shift in the perceived relative desirability of urban living.

[BrianTH]

Back to cheerier topics (sort of)--apparently engineering studies have confirmed that a 200-room hotel tower can be built on top of the August Wilson Center:

http://triblive.com/news/allegheny/6371414-74/center-million-bid#axzz3662nz4Ya

The purchase agreement O'Toole approved hinged upon 980 proving in an engineering study conducted during the past month that the building is structurally sound enough to support the 200-room hotel tower. The results affirmed that it is, Shollar said.

“We now know that we want to proceed with the purchase because it does meet our criteria,” said Shollar, adding that a partner should be wrapping up next week a separate study on the proposed hotel's operations; 980 submitted the engineering study, plus a $50,000 deposit, to Judith K. Fitzgerald, the court-appointed receiver tasked with resolving the center's $10 million in debts.

There is still an issue before the court on whether the proposed hotel and lease-back can be vetoed by the URA--hopefully that gets resolved by negotiation soon, but if not the court may have to make a final decision.

[BrianTH]

Just to close the loop, this version of the announcement confirms the condo renovation the PHLF is doing in Wilkinsburg is at Rebecca and Coal:

http://www.phlf.org/2014/06/13/landmarks...r-tax-credit-development-in-wilkinsburg/

[eschaton]

Originally Posted by BrianTH

Architectural firm Indovina is renovating a cool old building in the Strip to serve as its new HQ, and the project will also include 14 loft apartments. It is located at the corner of Penn and 32nd, so is really closer to Doughboy Square than the heart of the Strip.

I pass by this building on my bike all the time, and am also thrilled that it's seeing new use.Some of the rowhouses across the street have had minor facade work done recently as well.

I really think it's only a few more years before Lower Lawrenceville and the Upper Strip start to merge. Really the elimination of the scrapyard on Penn two blocks up would probably be enough to make it happen.

[Evergrey]

This is from 2 years ago... but I imagine the situation hasn't changed too much since then.

http://wesa.fm/post/7600-pittsburgh-area-kids-risk-lead-poisoning

7,600 Pittsburgh Area Kids At Risk For Lead Poisoning



The Allegheny County Health Department (ACHD) is urging families to have children younger than six years old tested for lead poisoning.

Nearly half a million children nationwide have elevated blood lead levels that may significantly damage their health, according to the U.S. Centers for Disease Control and Prevention.

Health Department spokesman Dave Zazac says that the ACHD each year encourages these blood tests.

“There are 109,000 kids in Allegheny County that fall in this age group (we’re talking zero to six years of age); and we estimate that seven percent of them are at risk for lead poisoning with blood levels that may be higher than nine micrograms per deciliter of blood. This translates roughly into 7,600 kids.”

Older homes with lead-based paint are the primary source of lead exposure among children. The key to prevention is not just to remove the lead but to make sure that renovation and repair projects are carried out properly.

Contractors and do-it-yourself remodelers performing work in housing built before 1978, when lead was banned in household paints, should follow lead-safe work practices to protect children.

...

[Evergrey]

http://www.bizjournals.com/pittsburgh/news/2014/07/02/design-review-scheduled-for-brew-house.html

Design review scheduled for Brew House redevelopment



The Brew House Association, the artist nonprofit that oversees the 103,000 square foot former Duquesne Brewery on the South Side, will host an open house at 7:00 p.m. on July 17.

At the event, the organization will present design drafts and preliminary plans for the redevelopment of the property. Members of the development team include Trek Development Group, Clearscapes and Lab 8 Designs Inc.

The building is being converted into 75 apartments. The project is expected to include a mix of artist studios as well as affordable and market-rate apartments.

Members of the organization expect to maintain the property's roots as an artist community while implementing much-needed upgrades to the building.

Larysa Gradeck, Brew House board of directors vice president, said in a prepared statement: “I think we’re all looking forward to reinvigorating our flagship programs: providing affordable live-work space, exhibition opportunities and professional development opportunities for emerging artists.

And we look forward to meeting with all interested community members and partners to gather feedback and create an even stronger, more unique and more vibrant arts organization in the South Side.”

[Evergrey]

http://triblive.com/news/adminpage/6384488-74/building-units-apartments

Downtown apartments with 100 percent LED lighting close to accepting tenants

by Sam Spatter

Lando Lofts, a 27-unit apartment building Downtown, will accept its first 15 tenants in August, offering 100 percent LED lighting.

Eight more units will become available in September and the remaining four in October. Monthly rent will range from $1,600 to $2,500.

The apartments, located in a former seven-story office building at 909 Penn Ave., will consist of 18 one-bedroom units and nine two-bedroom units.

An eighth floor has been added to the building as a party deck, including a kitchen. Tenants will be able to view events, such as fireworks displays at the Point, from the deck, said developer Todd Palcic.

He is planning several more conversions of older Downtown buildings into apartments. One includes the former Graphic Arts building at 422 First Ave.

[eschaton]

This might be a bit off an off-topic thing, but given the current clip of apartments going on the market downtown, how many more years will it be before we begin to see downtown "gap teeth" in blocks begin to fill in.

I'm not talking about the few large areas of surface parking, I'm more talking about places like this or this where there was clearly a single historic midrise which was lost, with the site now being only a low use parking lot.