Free The August Wilson Center

The ongoing saga of the bankruptcy sale of the August Wilson Center is an embarrassment to Pittsburgh and hearkens back to the bad old days of industrial city machine politics.  Except that the “machine” in this case is a quasi-government agency, the Urban Redevelopment Authority.  As Pittsburgh grows into an attractive investment location for private development, the value of the URA has diminished.  But the URA, instead of realizing that their admirable efforts in previous decades have helped make this possible, is instead using this particular case to block the Center’s recovery from initial missteps in a bid to preserve their political power.

As Dollar Bank has stated in its most recent court filing, a high rise tower of some sort was always contemplated as part of the overall development.  Early in my career life I was a banker on Wall Street, schooled in the logic of lending.  I can absolutely imagine Dollar Bank staff viewing their initial loan for the Center as an investment that would ultimately be taken out – that is, paid off – by proceeds from a more fully utilized development.  I suspect it was the faith Dollar Bank placed in the ultimate growth of the downtown market that led them to make this risky loan.

The URA has already “peed on its own shoes” as they in sales situations.  By making this overall process so difficult for Dollar Bank, I can say with confidence that no other credible financial institution will ever again enter into a lending situation where the URA is involved.  By reaching for a one-sided solution they have ensured their own demise.  Further, they are denying downtown Pittsburgh the chance for a new “luxury hotel” to be built.   Think of the possibilities. We know there is demand downtown for another 4 or 5-star hotel property given the success of The Fairmount Hotel.  Marriott’s Ritz Carlton brand as well as The Fairmount’s fellow Canadian chain The Four Seasons, have holes in their listing with no properties in Pittsburgh.  Either one of those or any number of others are a natural for that space.

But the worst indictment of the URA’s actions is the obvious abuse of public funds that are involved.  That’s taxpayers’ money they are playing with and Pittsburgh and Allegheny County taxpayers should be outraged given the many budget shortfalls still coming their way.  And as part of the URA’s plan, they want the Pittsburgh Foundation to chip in some millions of dollars; money that could be put to other uses not as attractive to private investors.  Sadly I believe there is not much to be done at this point other than let this soap opera play to the end.

Organic Growth

Anyone with an interest in economic development, whether in Pittsburgh or Palo Alto or Penang, should read this piece linked below.  I believe urban history has shown us that sustainable, long lasting economic prosperity is organic.  It’s created of a place and not transferred in from somewhere else.

http://www.bizjournals.com/austin/blog/at-the-watercooler/2014/07/hell-mess-with-texas-recruiting-expert-says-state.html

PIT to OAK direct!

No I am not talking about establishing non-stop airline service between Pittsburgh and Oakland, CA, although some in the Allegheny County Airport Authority would like to see that happen.  I am talking about connecting Pittsburgh’s Oakland neighborhood with Pittsburgh International Airport, via downtown, in one continuous “spine line” light rail extension.

Hey, it’s time to dream bigger these days.  Pittsburgh is finally coming into its fully realized renaissance self.  And the rest of the world is taking notice – taking notice with their moving feet and investments, more importantly.  If Pittsburgh is to grow and keep up with other economic centers in the US, even more so with world economic capitals, it needs a better transportation grid.  While highways are realities that will be part of any overall plan, I focus on a public transport extension here.  That piece of the solution will probably require a larger tax-payer commitment as well as the political leadership to create the momentum to build it.  So here’s my call-out to political leaders like Mayor Peduto or Allegheny County Executive Fitzgerald and all other mayors and State Legislators in southwestern PA locales: start to get serious about building a world class transportation structure for a region that has not had one; at least not since river transport for humans passed.

Popular will is building for funding a better transportation infrastructure.  This past week, the “Pittsburgh Business Times” featured comments from 82 regional business leaders giving their top priority for the region leading up to the year 2020.  Out of 82 comments, 33 noted “transportation” as their top priority and out of those, 10 specifically mentioned public transport between downtown and Oakland and/or the airport.  Transport was the single issue most often mentioned and the overall percentage was 40%.

And Pittsburgh is not alone.  A reading of business publications both national and regional show transportation infrastructure is an issue of greatest concern among economic leaders, along with job creation and educational opportunities.  Economic growth is usually a positive for most citizens, raising living standards and creating opportunities for self enrichment.  But growth comes with costs and responsibilities.  Cities in Texas, of which I have personal experience, are strangling themselves in traffic problems.  Traffic is consistently listed locally as the chief complaint by ordinary voters in this economic boom State.  Pittsburgh is growing again and even though it’s current traffic issues pale in comparison with say, Los Angeles, Boston, Atlanta or Washington, D.C., from what I read in Pittsburgh media, traffic is considered a major problem.  But let’s go beyond relieving traffic congestion.  Emerging world capitals from Shanghai to Lagos to Rio are building clean, efficient, fast transport modes between their airports – the gateways to the rest of the globe – and their city centers.  Pittsburgh needs to do the same between its doorway to the world and its downtown economic hub and then on to its creative hub in the Oakland neighborhood.