Let’s Make a Deal!
Pittsburgh-Area Port Authority Looks for Developers and Retailers
The Port Authority of Allegheny County, Pennsylvania (PAAC) has taken on a new role. Besides providing bus and light rail service, the PAAC is seeking proposals from developers or vendors interested in establishing retail, residential or commercial operations at several Authority-owned sites located near transit facilities.
The Port Authority of Allegheny County controls public transportation in the Pittsburgh area. It currently operates 22.5 miles of light rail line and two buses-only private right-of-ways to the southern and eastern suburbs. Each year, Port Authority transports approximately 75 million passengers and that number has increased steadily each of the past three years.
PAAC formed the Joint Development Program during 1999 in an effort to promote business development in the area and increase amenities for local travelers. The program’s first venture was the negotiation of five-year agreements with four retailers for the establishment of kiosks in Port Authority’s three downtown subway stations. The arrangement is expected to create approximately $500,000 in revenues for the PAAC over the next five years.
| The front of the Port Authority of Allegheny County Request For Proposal says it all: The Authority is looking to make deals with developers and retailers. |  |
Retailers are Cool Beans, a coffee purveyor owned by Coffee A La Cart, Inc. of Pittsburgh; Four Seasons Floral, Inc., also of Pittsburgh; Frulatti Cafe & Bakery, a franchise based in Dallas; and Gateway News, a franchise owned by Tobmar, Inc. of Toronto. The Authority received 28 applications for the kiosk operations and reportedly based its choices on benefits offered to transit customers and corporate experience and financial stability.
“We were very pleased with the response to the retail opportunities our downtown subway stations offer, and we are eager to discuss new partnerships that include much larger projects of benefit to Port Authority and our customers,” says Paul Skoutelas, Port Authority CEO. “These projects will make our “T” stations, busways and park-and-ride facilities more attractive and convenient for our customers as well as generate new revenues for Port Authority services.”
Paul Skoutelas |
Skoutelas explains that PAAC owns a number of properties in and around stations and parking areas. “We’re looking to make better use of those properties by adding parking and pursuing commerce opportunities,” he says. “And we’re looking for partners to make it happen.” Partnerships could involve a retailer leasing property from PAAC, or the Authority making a development investment, such as building parking facilities. He notes that the local county and city governments have tax incentive programs, including tax increment financing, which could be part of the mix. |
“This process will involve the Allegheny County Economic Development Office and the municipal representatives where each of the properties is located,” says Skoutelas, adding that both PAAC and local governing bodies are wide open to possibilities.
He says the PAAC has made no determination about what uses are most appropriate for these sites and encourages interested developers to be creative while pursuing ideas that will benefit Port Authority customers. “This is an excellent opportunity for creative business persons to participate in this exciting new joint development initiative with Port Authority,” says Skoutelas. “It could be commercial development, retail locations, expansion of the South Hills mall, or residential development. We don’t want to close any possibilities out. We want to hear from the private sector.”
Skoutelas said the PAAC looked around the country and found that similar programs in Washington D.C., Atlanta and Portland have been successful. “This is a new endeavor for the Port Authority of Allegheny County, but we believe these potential partnerships have benefits for the community and for business developers.”
Interested developers and retailers may obtain a Request for Proposal (RFP) packet about Joint Development Program offerings by calling Lynn Colosi, senior business development representative, Port Authority of Allegheny County, 412-237-7298.
For more information, contact Synergy Real Estate Corporation, agent for Port Authority of Allegheny County, 3230 Grant Building, Pittsburgh, PA 15219; 412-338-4600, Fax 412-338-9891; e-mail: synergy@synergyre.net.