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A rendering shows a pedestrian bridge crossing the Boulevard of the Allies near Halket Street in Oakland -- part of a plan by developer Walnut Capital to apartments to the neighborhood.
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City, developer reach deal to bring hundreds of new apartments and a grocery to Oakland

Walnut Capital

City, developer reach deal to bring hundreds of new apartments and a grocery to Oakland

After two months of talks, Pittsburgh Mayor Ed Gainey and developer Walnut Capital have reached a deal designed to bring hundreds of new apartments and a full-service grocery to Oakland as part of a major transformation.

The agreement calls for the construction of hundreds of apartments, including nearly 50 affordable units, and development of a grocery at the former Quality Inn and Suites site at the end of Halket Street.

According to the mayor’s office, it also involves a phased approach to the ambitious Oakland Crossings plan first proposed by Walnut Capital, a smaller overall zoning footprint, protection of Zulema Park, and expanded green space.

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The Shadyside developer also has committed to a “public benefits agreement” that includes making at least 10% of the units it builds affordable to households at or below 50% of the area median income for a minimum of 35 years and to using the city Housing Authority’s choice voucher program.

A pedestrian bridge crossing the Boulevard of the Allies near Halket Street in Oakland is part of Walnut Capital's plan to add 1,000 residential units in the central and south parts of the neighborhood over the next three to five years.
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In announcing the agreement, the mayor’s office stated that it was in line with the community goals identified through the Oakland master planning process, which has been two years in the making, and Mr. Gainey‘s “vision on creating a city for all.”

Critics of the Walnut Capital plan have charged that the developer usurped the master planning process, known as the Oakland Plan, in a bid to move forward with its objectives.

“From the first day we walked into office, I told my team that any development must move us forward on making Pittsburgh more equitable and affordable for everyone,” Mr. Gainey said in a statement.

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“This agreement is the first time a private developer has committed to using the Housing Authority Choice Voucher Program to reach inclusionary zoning requirements in Pittsburgh’s history and will include a new grocery store that will bring much needed options for fresh food to this neighborhood.”

Since becoming mayor in January, Mr. Gainey twice delayed a hearing before the city planning commission on a proposed rezoning designed to facilitate a plan by Walnut Capital to build more than 1,000 apartments over 17 acres in Central and South Oakland.

During that time, he held a public meeting to hear from Oakland residents, some of whom opposed and some of whom supported the project, and met with the various stakeholders involved.

Out of that came the new plan, one that covers about 13 acres and includes fewer apartments, at least in the first phase.

A pedestrian bridge crossing the Boulevard of the Allies near Halket Street in Oakland is part of a plan by Walnut Capital. Pittsburgh Mayor Ed Gainey is taking more time to evaluate a controversial plan to rezone parts of central and south Oakland as part the developer's push to build more than 1,000 apartments.
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But it keeps in place a major initiative by Walnut Capital to redevelop Halket Street across from UPMC Magee-Womens Hospital by adding several apartment buildings.

It also allows the developer to proceed with a proposal to convert the former Quality Inn site into non-student housing in partnership with the University of Pittsburgh — and to bring to the site a full-service grocery, a long-sought neighborhood amenity.

In a statement, Walnut Capital president Todd Reidbord credited the mayor and his administration with raising the bar higher “on what’s possible, motivating us to roll up our sleeves further and think bigger.”

“We worked together to problem solve ways to ensure the community receives its long-awaited grocery store and that we can build a sustainable, affordable mixed-use development that creates much needed vibrancy and growth in our region’s economic engine,” he said. “Oakland Crossings will be a national model of an innovative public-private partnership that lifts up everyone in the community.”

In an interview, Mr. Reidbord said the first phase under the agreement could involve about 400 apartments at the Quality Inn site and on Halket south of Louisa Street.

The revised zoning also covers the historic Isaly’s site on the Boulevard of the Allies where Walnut Capital had pitched an apartment building. However, Mr. Reidbord said those plans are still fluid and have yet to be finalized.

Mr. Reidbord said he was pleased with the overall agreement, noting that Walnut Capital “got things that were important to us and [Mr. Gainey] got things that were important to him.”

“I think it was a case of putting our heads together and coming up with a plan that works for everybody,” he said.

Oakland Planning and Development Corporation, a registered neighborhood community group that has fiercely opposed the Oakland Crossings proposal, stated on its website that the deal involved “substantial and transformative changes” in the zoning but stopped short of endorsing it.

OPDC stated it was still reviewing the amended legislation.

“Mayor Gainey and his staff heard loud and clear from the Oakland community that the OPR-E zoning included harmful uses and inappropriate building heights, that it ignored neighborhood priorities such as affordable housing and the preservation of green space, and that it would create a hostile environment for Central Oakland homeowners in adjoining districts,” the group stated.

It added that the new zoning omits McKee Place, where Walnut Capital had been planning to build, and Louisa Street as well as Zulema Park and creates a subdistrict for Halket while adding affordable housing to the bonus point system, eliminating “inappropriate uses,” and restoring residential compatibility standards.

Walnut Capital, Mr. Reidbord said, plans to wait until the completion of the Oakland master plan before looking at McKee.

The Oakland Business Improvement District, the other registered neighborhood community group, backed the deal. Its members include Walnut Capital.

"We are thrilled that the Mayor's office rolled up their sleeves and worked collaboratively with community stakeholders and neighborhood developer Walnut Capital to ensure that the first phase of this game-changing development breaks ground,” CEO Georgia Petropoulos said.

“I want to commend the mayor on this historic deal that will bring nearly 50 high quality, affordable housing units online while adding hundreds of market rate units needed now to attract neighborhood amenities — like a full-service grocery store — that absolutely should be in one of the nation’s top innovation districts."

The agreement involves a “narrower and more clearly defined zoning,” according to the mayor’s office. That involves amending the proposed rezoning now before the planning commission. The mayor’s office intends to do that in time for Tuesday’s meeting so that the commission can make a recommendation to council.

One concern OPDC had with the timetable is that residents won’t have enough time to study the changes before Tuesday’s hearing.

Before the new agreement, the proposed rezoning called for adding a subdistrict to the five existing public realm districts in Oakland.

According to the mayor’s announcement, the deal with Walnut Capital will create 250 union construction jobs. The public benefits agreement also calls for minority- and women-owned business contracting.

Before agreeing to the affordable housing, Walnut Capital had planned walk-to-work housing. Under that plan, at least 10% of the units in any apartment building would have been designated as "walk to work." Those units could not have rented for more than 30% of a person's gross income.

Mark Belko: mbelko@post-gazette.com or 412-263-1262.

First Published: March 7, 2022, 10:03 p.m.
Updated: March 8, 2022, 11:12 a.m.

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A rendering shows a pedestrian bridge crossing the Boulevard of the Allies near Halket Street in Oakland -- part of a plan by developer Walnut Capital to apartments to the neighborhood.  (Walnut Capital)
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