Local News

Hill Group Threatens To Block New Arena Approval

PITTSBURGH (KDKA) ― A coalition of community groups in the Hill District is threatening to block approval of a new multipurpose arena slated to be the new home of the Pittsburgh Penguins.

One Hill says the city of Pittsburgh and Allegheny County have fallen short of their request for a community benefits agreement. Local government officials have signed off on a series of development plans but they do not include cash payments to a community investment fund.

That appears to be the rub.

"If there's no community benefits agreement we will not support the arena master plan approval and we would encourage the city planning (commission) to vote no or to postpone the vote," Carl Redwood, a spokesperson for the coalition, said.

The city and county have offered a grocery store, multi-purpose recreation center and a job center where Hill District residents will get preferential consideration for arena-related jobs as well as job training and support for other employment.

They're denying a request for $2 million a year for the community fund.

"I would just argue that we are giving them money. We're giving them a significant amount of investment," Mayor Luke Ravenstahl said.

He says the city and county are committing millions of dollars in development projects but remain opposed to cash donations. Hill District leaders say Ravenstahl signed off on an agreement with the Penguins to give them parking revenues at the Mellon Arena site as part of the arena deal.

"He has no problem with Penguins having a Penguins improvement fund, but he has a problem with the Hill District having a community improvement fund," Redwood said.

"The Penguins are a business and we've been in bankruptcy twice in the last 10 or 15 years," Ron Porter, a Penguins official, said. He said the arena deal was necessary to keep the team viable and in town.

"We're just reaching solvency things are beginning to come together and we feel that we're doing an excellent job in responding to the community's demands," Porter added.

Ravenstahl says all parties, including the Hill, will benefit.

"So we will help them just like we did help the Penguins but in a way I think is more conducive to the public process than they may want to see," he said.

But with the city planning commission meeting coming up, there seems to be little time for a compromise. Still, the city and county say they are offering a generous package to the Hill District and they say they are firm in their opposition to any cash payments to any community fund.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)