“What the Property is Worth”

UPDATED below.

Strangely developing resuscitation of a story:

Merrill Stabile, general partner in 501 Martindale Associates and president of Alco Parking, is offering the city Stadium Authority $13 million for two parcels on North Shore Drive now used for parking, in part to develop a “signature office tower.”

The land is reserved for Continental Real Estate Cos. to develop under an option agreement reached with the Pirates and the Steelers nearly a decade ago. (P-G, Mark Belko)

Yesterday’s quick version has Mr. Stabile promising not to seek public subsidy for his project.

Mr. Kass of Continental sounds indignant. Ms. Conturo of the Stadium Authority sounds queasy.

BACKGROUND: [Hmm… let’s stick with] P-G Mark Belko, 9/05/08

UPDATE: On the flip side:

It appears from the offer letter that Stabile might not be committed to building an office tower, Zober said.

“If, after 10 years, these projects have not materialized, the authority will have the right to repurchase the parcels under a pre-determined formula taking into account the purchase price and the elapsed time from the purchase date,” Stabile’s offer states.

“That paragraph creates that uncertainty,” Zober said. (Trib, introducing Alex Nixon)

Notwithstanding the fog, Trib editorialists are dancing in the street.

The offer was “delivered” to the Authority on Monday, but somehow we all found out about it on Tuesday. Stabile seems to be end-running his proposal around city leaders through the press, as though he’s Rob Pfaffman or something. The parking baron should by now be much better equipped at doing business in these parts than having to rely on hail marys.

9 thoughts on ““What the Property is Worth”

  1. JenEngland

    While I never trust a developer farther than I can throw them, Continental has a proven history of unfair dealings screwing the taxpayer and average citizen. If Mr. Stabile isn't secretly kicking puppies in his spare time, I can't imagine we'd do any worse, and might possibly do considerably better, if he develops that parcel. And frankly, I'm now indignant all over again at the ridiculous sale price the Stadium Authority has set. They are giving that land, OUR LAND, away.

  2. Anonymous

    here is the real issue – what do we want that land to be? Council opponents and SEIU forgot to mention this fact when the Rooney's built Stage AE. Whenever they would say that Rooney's bought land for less than fair market value they were basing that on the fact that fair market value is as parking. Once upon a time we worked long and hard to get rid of the sea of parking on the North Shore. Shields and Peduto were on the task force that came up with the North Shore master plan that calls for, wait for it, wait for it – an amphitheater. If we don't want parking (as the master planning process said we didn't) then we need to be prepared to subsidize development.

  3. Bram Reichbaum

    “Shields and Peduto were on the task force that came up with the North Shore master plan that calls for, wait for it, wait for it – an amphitheater.”

    Really? That would be interesting in the context of 2009's travails with North Side United.

    Although here we're talking about who gets to capitalize on these office space parcels and at what price.

    It strikes me that if the Stadium Authority starts taking a firmer line as to the deadlines in this option agreement, that might motivate the Penguins to develop all of its new parcels from surface parking more quickly.

  4. Anonymous

    Bram, of course it would be interesting but everything those guys say falls like a house of cards if you take ten minutes to investigate.

  5. Anonymous

    the steelers just want what the Pens got {FREE LAND)..poor steelers, they just want “the package”, screw the agreement 😉 and so it goes…


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