Pittsburgh mayoral candidate Kevin Acklin today called for the liquidation of about half of the city's Urban Redevelopment Authority's assets as a first step in solving the city's ongoing pension crisis.
"I propose today that we redefine the size and scope of the URA, re-focus it toward neighborhood investments and community development, and divest a portion of those assets to be placed immediately into the city's pension fund," said Mr. Acklin, a mayoral candidate running as an independent.
His plan, Mr. Acklin said, would pare the URA's total assets -- some $417 million -- by about half and infuse the cash from such a liquidation into the city's pension fund, which covers obligations to city employees and retirees.
At well under 50 percent funding, the city's pension fund, is faced with the risk of a state takeover in two years and yet, "we've heard almost nothing from our mayor about how he's going to fix it."
"We need bold new thinking and clear-headed financial planning to solve this problem," Mr. Acklin said.
With $417 million in assets the URA's net worth not only rivals the city's general fund balance, but it has lost its mission, said Mr. Acklin.
"The URA has played an important role in the redevelopment of the city of Pittsburgh, a job that should never be overlooked. But [Mayor Luke] Ravenstahl and I disagree on where the development of the future should take place in our city. Mr. Ravenstahl has sided with big, corporate developers, and I say it's time to go back to neighborhoods," he said.
City officials could not be reached for comment.
First Published: September 9, 2009, 5:00 p.m.