Option Agreement guiding Lower Hill District redevelopment expires

PITTSBURGH — The agreement guiding the redevelopment of Pittsburgh’s Lower Hill District has expired.

The Amended and Restated Comprehensive Option Agreement between the Sports & Exhibition Authority of Pittsburgh and Allegheny County, the Urban Redevelopment Authority of Pittsburgh and Pittsburgh Arena Real Estate Development LP expired Wednesday night.

The Option Agreement was created to guide the redevelopment of the 28-acre former Civic Arena and Melody Tent sites.

Control of the sites’ development was granted to the Pittsburgh Penguins in 2007. The PAR is an affiliate of the Penguins.

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With the Option Agreement’s expiration, development rights have reverted to the public authorities that own the land.

Roughly 21 acres of developable land remain on the sites.

“The Authorities will continue to engage their respective boards of directors to evaluate future redevelopment options that include a transparent public process,” the URA said in an update Thursday. “The Authorities thank all community stakeholders for their time and commitment to the redevelopment process up until now and look forward to future engagement as development moves forward.”

The URA thanked the PAR for its previous and continued investment in the Lower Hill, namely construction of the new music venue Citizens Live at the Wylie, completion of the FNB Financial Center and future furnishing of the G4 urban open spaces parcel with community kiosks.

In a statement on Thursday, the City of Pittsburgh expressed disappointment in the site’s lack of development over the past 18 years.

However, the City said Lower Hill redevelopment remains a high priority, and the Option Agreement’s expiration presents an opportunity to pursue “truly equitable progress.”

“This change also places an enormous responsibility on the public agencies involved, one that calls on local leaders to act with integrity and courage,” the City’s statement reads. “We must commit to redevelopment that not only honors Pittsburgh’s African American cultural legacy, but actively repairs the historic harm done to the Black community. That means rejecting gentrification and displacement, ensuring shared economic opportunity, and centering equity at every decision point. This is our chance to set a new, uncompromising standard for what just and inclusive development must look like. In doing so, we set a higher standard for equitable development that future generations can build upon.”

A statement from the Penguins reads, “The Penguins remain committed to the vision for inclusive development in the Lower Hill and are proud of the meaningful progress achieved in recent years with community leaders despite challenging economic circumstances. Following the expiration of the Option Agreement, the organization will stay engaged in the City’s plans for the area and continue to be a collaborative partner in advancing future development.”

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