Intervention's lesson: There's no better object lesson in the folly of “government economic development” than the mess that is the corner of Washington and Bower Hill roads in Mt. Lebanon. The latest proposal to develop this parcel has failed after Zamagias Properties defaulted on taxpayer-backed loans used to acquire the property. The “state,” at least for now, is left holding a $1.78 million bag. Worse, Zamagias gets to keep the property. Don't try this with your local bank.Follow us: @triblive on Twitter | triblive on Facebook
Mt. Lebanon needs to exercise its buy back option and buy back this property. Zamagias Properties has the money and is getting away with it because they can. Commissioners, do the right thing.
Update January 30, 2014 10:20 AM Here are 9:31 AM's comments pictorially.
57 comments:
If it can be turfed, Commissioners will "do the right thing", Elaine.
I wish someone would do something because the property is horrible.
This property wasn't discussed last night, was it? I do believe, however, that some safety audit results were and Mr. Feller said his "jaw dropped" when he saw that the cost for the road/traffic/ped safety improvements would be $115,000. Then, he was reassured that these improvements could be made over 10 years.
So, in sum, Mr. Feller and the commission majority is putting $700,000+ into turf, but not coming up with a concrete plan to make the $115,000 in improvements to our public safety that were proposed as a result of a thorough road safety audit.
This thinking comes on the heels of at least 3 pedestrians being critically injured between mid-Nov and Dec 25 in a "walking community". Without safety being the #1 priority, more people will be critically injured or killed. Three (reported) peds in 5 weeks, at that rate, we will have 30 pedestrian crashes by next Nov.
Elaine, I want to file a complaint, 12:27 stole my comment.
I know, 12:27 PM. I feel the same way! :) Slap on turf and it will be dealt with immediately. No hearings or anything! Special task forces will be appointed and before you know it, more toxic turf for our community.
Elaine
What a weird town we live in!
The school district uses student safety as one of the justifications for building an $800,000 bridge across busy, busy, busy Horsman Drive.
An almost didn't blink on spending $78,000 on a trophy case for the athletic wing even though the old trophy case was pretty nice.
At the same time a $115,000 expenditure for pedestrian safety makes the managers jaw drop.
But, $1.2 million for environmentally unsafe turf gets a green light.
Yep, got to get priorities straight, right?
Too bad those prospective homebuyers that just took the realtors Cedar Blvd. turf tour will get run down crossing Washington Road to fill out the paperwork on buying that MTL.
12:47 PM, yes it was mentioned by resident Bill Matthews during Citizens Comments at the five minute mark here.
Elaine
Buy it? The township should use Eminent Domain and take it. I'm not usually for the use of Eminent Domain but this company has clearly taken advantage of the rules and is looting the Commonwealth.
And the township needs to stop with this TIF business. They clearly don't know what they're doing. Just sell the property to someone who is actually going to develop it. If you take away that safety net, they owner just may actually do something with the property.
7:31 agreed they need to knock off this TIF bs.
But, by all means lets grab or buy back this property then pawn it off on another developer and then proceed to compete with them by building condos and retail space down the street and over the T station.
Floating some more bonds, buying some turf and raising taxes (state, county & local) will spur lots and lots of private development.
The Municipal Manager tries to exempt the Muni from any blame for the Zamagias fiasco by saying "it hasn't cost the Municipality any money..". Really ?
Staff time and legal expense over the eight years dealing with Zamagias, granting them every request for more time, more waivers, more everything has undoubtedly cost upwards of $100,000 or more in out tax dollars.
And then, the real insult : the TIF repayment requirement remains regardless of who develops any portion of the defined TIF District in the future. Are you aware that the boundaries of this District exceed Zamagias's parcel acreage ? And are you aware that the TIF Agreement stipulates that 72% of real estate tax increments from any development in the entire District are to be dedicated to repayment of the TIF loan. This means both School and Muni taxes.
So Mr. Manager, this Zamagias fiasco has cost and will be costing the Muni (us) a lot of money for your gross negligence and mismanagement during your watch !
9:09 AM, the commissioners aren't clean on this either. Read this commission agenda from the December 10, 2013 meeting. Kristen Linfante introduced agenda item #16.
Here is the SEVENTH Amendment that was passed.
Elaine
Harrisburg, this one's for you!
Elaine
Here's an idea that will stimulate so much economic development we won't know what to do with the prosperity.
Lets make all of Mt. Lebanon a TIF zone.
Then property owners won't need to pay property taxes- the state will cover them- and then those flush homeowners can spend like there is no tomorrow on home improvements, cars, jewerly, dining, TVs, youth sports fees, etc., etc.
Restaurants will thrive, businesses will be clamoring all over themselves looking to get a piece of the Lebo prosperity... everybody wins.
It doesn't cost the municipality anything so whats wrong with the plan?
Thank you, Mr. Manager.
9:31 AM, Elaine, I'm not sure undated signatures of a principal and witness are legal. A notary cannot notarize such a document can they without all signatories present before the notary on a specified date ?
What was the name of the bank that made the loan?
10:14 AM, you and other bloggers may not be aware that all of Uptown was declared officially blighted years ago so that any development or redevelopment there will qualify for TIF consideration. The TOD air rights project over the Lebo LRT station alone will require massive TIF and other tax subsidies and government grants in order to take place.
You ain't seen nothin' yet !
Here's an interesting post from eight years ago!
http://pittsblog.blogspot.com/2006/03/more-tif-madness-in-mt-lebanon.html
So the 7th Amendment passed (available via Elaine's link) doesn't have witnesses or dates filled in regarding a property valued at 1.78 million dollars? ?
10:38, I'm aware, I'm aware.
Isn't it funny how many of these government ventures don't live up to their promises, especially when they involve PAT.
Look at that huge parking garage at South Hills Village that was suppose to stimulate T ridership.
10:34, the bank may have been Washington Federal, and an officer may have been a member of the Mt. Lebanon Economic Development Council (EDC) at or around the time they participated in or agreed to the granting of project rights to Zamagias by the Parking Authority, whose Vice Chairman at the time was the already named Zamagias project manager for the project. The Zamagias TIF attorney was also a former member of the EDC. All by strange and unusual coincidence, one presumes.
You may want to check up on this, John, to see if it's correct. This is a fascinating case study.
Blighted 10:38.
You mean all those "high-profile" people that constantly think they're so much better off than Dormont, Castle Shannon, Bethel, Baldwin are actually in the same league as communities like Homestead, Duquesne, East Liberty and Wilkinsburg.
Personally, I would feel better about any redevelopment effort if I understood what the vision is for our community. Unfortunately, I have no idea what they are trying to accomplish, I don't think that our economic redevelopment folks do either and what we're getting is nothing more than a piece-meal approach to redevelopment.
Does anyone know where we're going with all of this?
There is nothing wrong with TIF if TIF is used to facilitate a transaction that will ignite an effort to transform the community.
Part of the problem here is that the community is too inwardly focused on single sights without a master plan that will realize their vision.
I really have my doubts about the folks that we've hired to do our economic development. We have a community with absolutely incredible potential - Jack Bannow saw it, Zamangas saw it and others (including myself) still see it; but there are too many bullshit commissions that have no power that are populated with too many attorneys that argue endlessly about language in documents, a House Organ that plays so loud that nobody can think straight let alone listen to anything that anyone else has to offer and a school district that is soooooo greedy that when the time does come to develop the entire community will be bankrupt from paying the lavish teacher salaries.
... so here we are.
The Municipal Manager tries to exempt the Muni from any blame for the Zamagias fiasco by saying "it hasn't cost the Municipality any money.."."
When you have public employees that think like this, its time to clean house.
Its pretty hard to jump all over Zamagias or any property developer for taking advantage of a TIF if available.
The question is... why does government need to prime the pump in a rather wealthy community?
Aren't people with disposable incomes just dying to move to Lebo for its schools, youth sports and Washington Road drinking parties?
It is interesting how the PIO's Laura Pace [Lilley] reported back in 2006 that it would divert about $650,000 from the tax coffers for the next twenty years. Condo developers detail plan to finance building with TIF
Elaine
Damn, the community magazine is hot on soliciting opinions on the most pressing issues facing the community.
Your blog is debating the ins and outs of TIFs, turf, taxes, $78,000 trophy cases, environment issues, pedestrian safety, flooding and the PIO pressing need is to know if people stay warm under a blanket or by making soup!
Wow that's a survey the commissioners can use. Cast your vote @ lebomag.com
In my opinion the site at Washington and Bower Hill should be developed for a church.
Nobody in their right mind is going to build residences at the proposed price points, and the younger generation is inclined to buy cheaper residences (i.e. there has been a significant change in consumer tastes and preferences).
A church would attract an audience, and that audience will hopefully spend money in local businesses like: Starbucks, a grocery store, etc ... of course, we need to get those kinds of businesses to locate instead of adding another 50 Asian restaurants [like we have in the past] to Washington Road.
The church wouldn't add any tax revenue, but we're not getting any now, and hopefully church attendees will want to locate in the community and that may help property values.
Soooo, that's my two cents worth.
John, John, John. Don't you realize that another church would just make the deli line at Market District that much longer on Sundays?
Elaine
Even the Allegheny Institute is writing about the TIF, and not about keeping warm under a blanket! Has the Mt. Lebanon TIF Saga Finally Ended?
Elaine
12:14 PM, Mt. Lebanon, in their desperation for any kind of development that will generate any degree of new taxes, always gives a key negotiating point away to developers right off the bat. They lead discussions with prospective developers with "do you want or need a TIF ?".
A question.
Maybe I just don't ride the T at the proper times, but it occurred to me that I don't recollect any of our public employees, commissioners, board members, solicitors/lawyers - basically any one in Lebo public service - and hot for TOD using the T.
Raja is on the PAT board, anyone see him on the T?
Our solicitors and resident lawyers, the T is very convenient to the county courthouse, do they use it?
How about the ESB board members?
Anyone ever see Morgans riding the T to South Hills Village?
How about public employees... who makes the lunch run to Wendy's from the municipal building on the T? I do see them drive though.
Its funny, I see people that frequent Shop 'n Save, Bottom Dollar, RiteAid lugging groceries to the T stop, I wonder how many of them are anxious to use public funds to develop $500,000 condos?
12:35 PM, John, the Parking Authority/EDC/Muni turned down the residential development, competitive priced rental multifamily apartments proposal of NDC Corp. that you suggest, in favor of the Zamagias fiasco. Interestingly, the 2013 Comprehensive Plan proposes a NDC type project for the Zamagias site. NDC apparently didn't have the right "connections" back in 2005-07.
Hi Elaine,
It was interesting that Susan commented on a select set of Christian religions.
We have a large Jewish population in Mt Lebanon. Why weren't the people of Jewish faith mentioned in her article?
For that matter, what about Muslims?
There are many religions in this world. Why did Susan select a few Christian religions?
Interesting analysis by the Allegheny Institute.
Wonder if the municipal manager still wants to maintain his assertion that the TIF didn't cost the municipality any money?
The muni manger should resign or the commission should remove him. To live in denial of this failure, is only going to reduce the future effectiveness of the muni. The decisions being made here show an egregious lack of good judgment and planning.
You may be right 1:13., considering the low estimates for the pool renovation, Brafferton field upgrades and stormwater management.
His interest in turf over pedestrian safety and the Washington corner fiasco. The field sign advertising.
If these are examples of good management what does bad managing look like.
12:57pm, I don't know if the Morgans ride the T but maybe Arthur should, because when I walked down my driveway to get my mail he kept driving up and down the street past me in circles - maybe he was lost or forgot where he was supposed to go?
1:13 PM, that is something you should tell the commission. They can be reached at
commission@mtlebanon.org
Also, I suggest writing to State Representative Dan Miller and Senator Matt Smith.
repmiller@pahouse.net
senatorsmith@pasenate.com
When I wrote to Rep. Miller and Senator Smith, I asked if this might be a matter for the attorney general.
Elaine
Do we really need to alert our state reps to the obvious failings of TIFs here in MTL?
Do they not drive by the corner, read the papers and monitor $1.78 million of state spending in their districts?
Granted they didn't create the TIF program, but they are currently the people in office as all our state reps are that should be keeping tabs on it.
That $1.78 million could be used to repair infrastructure, bail out struggling school districts, cover health insurance for fire fighters.
There are two more facts that are worthy of mention in the more than curious circumstance of local citizen's direct involvement in this Zamagias mess, including some then current and former public officials (see 10:56 AM of Jan. 29).
Zamagias also employed architect Barry Long to do some of the original design work on the original condo proposal. Barry was apparently a principal in the Urban Design Assoc.(UDA) architectural firm, and a member of the Mt. Lebanon Planning Board which was involved in the project recommendation processes. To his credit, Barry removed himself from any direct Planning Board voting or influence associated with the project, but his role was well known to all decision makers.
The second additional fact is that an EDC member during the Zamagias TIF consideration, approval and processing period was resident George Drakos, who was also an employee of the Allegheny County Redevelopment Authority who facilitated the TIF. He was personally involved in much of the Authority's role.
This is why government should NOT be developers. Should the government make it easier for people to develop land? Yes, but we shouldn't just give it away.
9:50 AM Jan 30 & 10:56 AM Jan.29 - when do you think the current elected officials, local, county and/or state, will call in the state attorney general and ethics commission to investigate any possible violations of law and regulations associated with this Zamagias folly ? It really stinks.
I seriously doubt any local elected officials or staff would voluntarily blow the whistle on their own organizations or affiliations. Some current and all former public officials in office since 2005 are both tainted and suspect for possible complicity, gross negligence, dereliction of duty and due diligence, etc..
Correction-- that should be and spending gobs of money not [making] gobs.
Not trying to imply any official is making money on the TOD.
The focus should be on the rational of using TIFs in a community as affluent as Mt. Lebanon.
I don't think you can fault Zamagias for taking advantage of a deal any more than you can fault say a new home owner that pays $500,000+ for a their home and gets it reassessed for >$400,000 and doesn't complain.
The government made the TIF deal available and a smart businessman took advantage of the opportunity.
Its time for the state to close TIFs down incommunities that aren't blighted.
12:03 PM. Are you aware that the official state criteria for blight are so loose and ridiculous that any property in Lebo could be declared "blighted" ? In fact, local elected public officials have made such a statement. You only have to meet one of the several criteria. And if a property "qualifies, TIF's and other tax related giveaways can come into play.
And why is that ? Please don't tell us you don't really know !
If you see waste, fraud or abuse of state tax dollars call the PA Auditor General Hotline: 800-922-8477.
http://www.auditorgen.state.pa.us
Oh I know they tried to pass the Galleria as blighted, didn't succeed and here it is a number of years later its probably the most vibrant intersection in the bubble.
The Galleria was a classic case ! The new owner came to a meeting with a few Commissioners and staff members early on with his plan for redevelopment because of a couple of zoning issues he wanted clarification on. One of the first comments out of the Muni mouth was "do you want a TIF ?".
The owner was a bit taken back, and responded "well, I wasn't planning for or going to ask for one, but if you want to give me one, OK". And guess what ?
Yeah, you guessed it. The Muni claimed he needed a TIF in order to proceed, and started the TIF process bandwagon. The School Board brought it all to a screaming halt by voting against approval, with only one member voting for it. It was the member who had served almost 20 years and never voted "no" to any school spending scheme or tax related giveaway.
Two Commissioners reportedly had a side agreement with the owner to be able to use some surplus land behind and to the side of the Galleria for an athletic field, supposedly for youth soccer. The zoning issue seemed to go away.
Another athletic field, huh? It just keeps getting better and better.
Elaine
An athletic field here, an athletic field there, here a field, there a field any where and everywhere we need a field there.
Thank God these sports people have scrupulous studied fields, locations and the hazards of turf and decided this is where we need to plant our artificial turf, right here on good old ???????.
Hey, Dave which field are we committed to turfing this month?
A suggested alteration to the mtlebanon.org webpage:
The turfed fields that border our streets aim to create an athletic youth community where residents wonder what they've gotten into, while our excellent public transportation makes it fairly easy to connect with people and attend events throughout the metropolitan area.
Any truth to the rumor that the property at the Castle Shannon Mt Lebanon Blvd is going to be bought for more fields? Seems such a mess and what an eyesore for all those rushing in to purchase a house in Mt Lebanon.
2:15 PM, Kossman Properties, owner since 1954 and supposed developer who can't get his act together, has until 2016 before he is legally required to start or officially abandon an office complex project he proposed and was approved by Lebo on Castle Shannon Blvd. & Mt. Lebanon Blvd. He had also received approval to build for and lease a fitness facility to L A Fitness on that site as an alternative. However, L A Fitness bought the fitness center at Village Square instead. Kossman still has approval for office buildings, but during the 2007-2011 recession, the PA Governor arranged for passage of a law extending all PA time related construction commencement requirements to 2016, which negated or superseded local ordinances.
The YSA, SAB, PAB, Football, Soccer, Lacrosse, Baseball, Softball, Field Hockey associations should pool their immense influence and lobby the empty headed Muni to issue bonds and buy out Kossman and build even more athletic fields "or people won't move here, house prices will tumble, and....and...", you know !
2:15 is the Kossman property even sized for a regulation sized field?
If they'd put one there why wouldn't Robb Hollow be acceptable?
The muni already owns Robb Hollow.
Is there a TIF for the Kossman property?
Elaine
No, Elaine. There is no TIF for the Kossman property. Over several decades, Kossman has proposed a number of development schemes, each of which did not initially conform to at least one, usually several, Mt. Lebanon zoning regulations.
In each case, there was a considerable amount of municipal resources (Planning Boards, Zoning Hearing Boards, Solicitors, Managers, Muni Planners, Zoning Officers, Traffic Engineers, Muni Engineers, Admin staff, Traffic Boards, Commissioners, etc.) expended in time and tax dollars to deal appropriately with Kossman.
How many remember Kossman wanting to put in a (Need to be PC here...) a pre-fab mobile home park on that property? And how many remember all the responses that Mt Lebanon should allow it because there weren't ENOUGH poor people living here? Castle Shannon actually fought to keep it out. We had just moved into our home and it would have been in our backyard.
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