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Tax breaks sought for Nabisco site
The Urban Redevelopment Authority is expected to approve a request today for tax increment financing for the project -- known as Bakery Square.
Walnut Capital Partners previously announced plans for a 120-room hotel, 38 residential units, 380,000-square-feet of retail space and an 800-space parking garage on the six-acre Penn Avenue site.
A URA report says Walnut Capital would use the funds to "fill financing gaps in the proposed parking garage and infrastructure improvements."
Tax increment financing allows property tax dollars generated by a development to be used to pay off bonds issued for construction, generally for road, sewer and improvements, usually over 20 years.
The URA plans to issue bonds for the financing and enter into a grant agreement with the state Department of Community and Economic Development for funds for infrastructure development.
Walnut Capital has an agreement to purchase the property for an undisclosed amount from the Regional Industrial Development Corp.
Anthony Dolan, a principal at Walnut Capital, declined comment on the financing request. But he said the company believes Bakery Square will be an important piece in the revitalization of East Liberty and nearby neighborhoods.
Walnut Capital has said it expects the project to fill "pent-up" demand for retail, hotel and other uses in East Liberty, Shadyside and Oakland spurred in part by continued growth of health care and university-driven economic expansion.
Also, the success of the Home Depot store in East Liberty and the Whole Foods market that is part of Mosites Co.'s Eastside project have helped change the dynamics of the area.
"This project will be part of an ongoing process that is transforming the neighborhood and bringing East Liberty back to life," Dolan said.
The 495,000-square-foot factory has been vacant since Bake-Line Group of Oak Brook, Ill., declared bankruptcy in early 2004, ending jobs for 290 bakery workers.
The facility consists of three connected buildings, including a seven-story main tower and two smaller structures.
Jerome Dettore, executive director of the URA, could not be reached for comment.
Other proposals up for URA consideration today include:
- A request for up to $2 million in grant funding to support development of the $10.5 million-plus South Shore Riverfront Park at the SouthSide Works.
- An application for funding from the state for a redevelopment assistance capital program for up to $1.25 million to support expansion of the National Aviary on the North Side.
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