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Google’s office at Bakery Square is seen from a drone on Tuesday, June 25, 2024. During a briefing before the Pittsburgh Planning Commission, Walnut Capital president Todd Reidbord said the developer's proposed 14-acre expansion will provide an opportunity to “really transform” neighborhoods such as Larimer.
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Walnut Capital pitches half-billion-dollar Bakery Square expansion plan

Benjamin B. Braun/Post-Gazette

Walnut Capital pitches half-billion-dollar Bakery Square expansion plan

Expansion would include the Village of Eastside shopping center and the former Club One Fitness site

Walnut Capital pitched its half-billion-dollar blueprint for expansion of Bakery Square Tuesday, saying the next stage not only will bring new development and pedestrian and street improvements but benefits to adjacent neighborhoods.

During a briefing before the Pittsburgh Planning Commission, Walnut Capital president Todd Reidbord said the 14-acre expansion will provide an opportunity to “really transform” neighborhoods such as Larimer through a community development agreement that includes construction of more for-sale housing.

“This for us is a legacy project,” he said.

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In the first of two briefings on the plan, commission members generally seemed to be supportive of the overall goals and concepts.

Developer Walnut Capital will brief the Pittsburgh Planning Commission Tuesday on a proposal to expand the Bakery Square complex in Larimer and Shadyside.
Mark Belko
‘A path forward’: Deal on housing could clear way for Bakery Square expansion

“It is very good to see responsible development that looks equitable and is just,” commission chairwoman LaShawn Burton-Faulk said.

In a separate matter Tuesday, the commission approved one of the first new office-to-residential conversions Downtown — the rehab of the 11-story First and Market Building at 100 First Avenue into 93 affordable housing units for seniors.

The Bakery Square expansion would include the Walnut Capital-owned Village of Eastside shopping center and the former Club One Fitness site, both west of the existing campus.

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As part of the project, the developer is seeking a zoning change to expand the boundaries of the specially planned district that was created to build Bakery Square on the Larimer and Shadyside borders.

The proposed expansion has been in the works for two years, with one of the key components being a community benefits deal with the Larimer Consensus Group and the Village Collaborative of East Liberty.

While some final details are still being negotiated with Mayor Ed Gainey and the neighborhoods, the agreement includes a commitment by Walnut Capital to provide $6 million to seed a $25 million fund that would be used to build or rehab for-sale housing in Larimer, which the community has identified as one of its biggest needs.

Under pressure from Mr. Gainey, Walnut Capital also has agreed to set aside 15% of the 800 residential units to be built as part of the expansion as affordable, though it is still working with his administration to find ways to cover funding gaps.

During Tuesday’s presentation, Mr. Reidbord told commission members that the only way the benefits can materialize is if the expansion proceeds.

“Here’s an opportunity for us to move forward with a signed agreement that the community’s behind. The development unlocks that agreement. It’s important that we get moving forward and that we get on with this project,” he said.

In addition to the housing benefits, Walnut Capital has said the expansion will provide nearly $50 million in infrastructure improvements, including a new parklet-like structure to be built over part of the East Busway, two new streets, and pedestrian connections and priority zones.

The project would create three new subdistricts — C, D, and E — featuring a mix of commercial, retail, and residential uses along Penn Avenue, East Liberty Boulevard, adjacent to the busway, and across from Mellon Park.

Walnut Capital plans to start phase one of the expansion on the far west side at the former Club One site.

Walnut Capital attorney Jonathan Kamin said the developer is talking with Partners4Work about putting an artificial intelligence tech hub in that area as part of workforce development efforts.

Despite the progress, Walnut Capital is still working with city planners on the extent and mix of parking in the expansion, including whether that could involve surface spaces or another garage.

Mr. Kamin said there will have to be “some level of surface parking” in the expansion, particularly since the project will be done in phases.

It is still trying to determine how much parking is needed and whether it could use innovations like parking carousels to help meet demand.

“We want to be mindful of, of course, recognizing that parking is important. But we also want to be careful about committing to these large monolithic structures for parking when that may not be the way we are in 20 or 30 years from now,” Mr. Kamin said.

Commission member Mel Ngami said she appreciated the work Walnut Capital has done with the surrounding neighborhoods in advance of the proposed expansion. But she stressed that it must continue.

“The only kind of comment that I would have is just to make sure that you stay as thorough with the communication [with the community] as design goes through. I think one issue that I hope doesn’t come up is that the community becomes more of tokens versus actual stakeholders in the process,” she said.

Mr. Kamin responded that Walnut Capital has long-standing commitments with the Larimer Consensus Group and the Village Collaborative.

Downtown, Beacon Communities is hoping to start the residential conversion of the First and Market Building by the end of the year and have it completed in 16 months.

The 93 one-bedroom apartments will be available for seniors with incomes at or below 50% of the area median income, or $35,400 for one person.

“It’s really a deeply affordable development,” said Michael Polite, Beacon senior vice president of development.

The First and Market conversion is one of the first to get moving amid concerns about the struggling office market Downtown.

Owners of the Gulf Tower, Three Gateway Center, 525 William Penn Place, and the former YWCA building are among others considering such rehabs. But none of those have yet to get started.

The city has passed a new 10-year tax abatement program to help with such projects. But some developers say they need more help — mainly a low-interest loan program to fill funding gaps — before they can get going.

Beacon is considering two other conversion projects Downtown, including the Pittsburgh-Allegheny County Thermal complex at 120 Cecil Place and Fort Duquesne Boulevard where it is proposing 89 units.

Also Tuesday, the commission approved plans for a 334-unit apartment development in Lawrenceville at Foster and 39th and 38th streets near the Allegheny River. Washington D.C.-based Dalian Development is proposing to make 10%, or 34 of the units, affordable, as required under the neighborhood’s inclusionary zoning law.

The project, which includes 300 parking spaces, is Dalian’s first in Pittsburgh. It hopes to start construction early next year and finish it in spring 2027.

Approval came despite concerns about some architectural elements, including a long gray facade on one side, which Ms. Ngami said could become “strongly depressing” in the winter.

As part of the conditions for approval, the developer will work with planning staff to address the concerns.

In addition, the commission gave preliminary approval to a land subdivision at the former Civic Arena site needed by the Pittsburgh Penguins to begin work on a live music venue.

— Mark Belko: mbelko@post-gazette.com.

First Published: June 25, 2024, 11:34 p.m.
Updated: June 26, 2024, 7:10 p.m.

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Google’s office at Bakery Square is seen from a drone on Tuesday, June 25, 2024. During a briefing before the Pittsburgh Planning Commission, Walnut Capital president Todd Reidbord said the developer's proposed 14-acre expansion will provide an opportunity to “really transform” neighborhoods such as Larimer.  (Benjamin B. Braun/Post-Gazette)
Storefronts and offices at Bakery Square are seen from a drone on Tuesday, June 25, 2024, in Shadyside. Walnut Capital pitched its half-billion-dollar blueprint for expansion of Bakery Square Tuesday, saying the next stage not only will bring new development and pedestrian and street improvements but benefits to adjacent neighborhoods.  (Benjamin B. Braun/Post-Gazette)
Google’s office at Bakery Square is seen from a drone on Tuesday, June 25, 2024. Developer Walnut Capital is proposing a major expansion project at Bakery Square.  (Benjamin B. Braun/Post-Gazette)
Storefronts and offices at Bakery Square are seen from a drone on Tuesday, June 25, 2024. During a briefing before the Pittsburgh Planning Commission, Walnut Capital president Todd Reidbord said the developer's proposed 14-acre expansion will provide an opportunity to “really transform” neighborhoods such as Larimer through a community development agreement that includes construction of more for-sale housing.  (Benjamin B. Braun/Post-Gazette)
Storefronts at Bakery Square are seen from a drone on Tuesday, June 25, 2024.  (Benjamin B. Braun/Post-Gazette)
The Trader Joe’s at Bakery Square is seen from a drone on Tuesday, June 25, 2024.  (Benjamin B. Braun/Post-Gazette)
The Trader Joe’s at Bakery Square is seen from a drone on Tuesday, June 25, 2024.  (Benjamin B. Braun/Post-Gazette)
Benjamin B. Braun/Post-Gazette
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