Gov. Josh Shapiro came to Pittsburgh Friday morning to announce a $62 million investment in an ambitious 10-year plan to give Downtown a makeover. The state’s contribution is part of an estimated $600 million committed by state, county, and city governments along with private companies and local nonprofits.
It’s part of a 10-year plan to build more housing, revamp public spaces and bring to life a new vision of Downtown as more than towering office buildings — and perhaps the neighborhood's next significant transformation.
After World War II, abandoned warehouses, freight yards and saloons were cleared to create Point State Park as part of what came to be called the Pittsburgh Renaissance. And the construction of the David L. Lawrence Convention Center, Three Rivers Stadium and a number of office buildings Downtown, including PPG Place, came into being as part of Renaissance II in the 1970s. The Pittsburgh Downtown Plan in 1998 added new sports stadiums and nightlife to the North Shore and restaurants and theaters to form the Cultural District downtown.
“This multipronged investment is not theoretical,” said Shapiro, who joined Mayor Ed Gainey, Allegheny County Executive Sara Innamorato and a group of business and nonprofit leaders in the Cultural District for the announcement. “This is tangible stuff, and it is unmatched in any other effort across the Commonwealth of Pennsylvania.”
The projected $600 million is made up of a patchwork of funding: The state is giving $62 million, the City of Pittsburgh via the Urban Redevelopment Authority is committing $22.1 million, and a group of foundations and companies including Giant Eagle, the Pittsburgh Penguins and the Heinz Endowments say they’ll give at least $40 million.
These initial commitments will “help spur an additional $376.9 million” from real estate developers, according to Shapiro.
“We're investing in our public parks and public spaces so more people want to spend time downtown, Shapiro said. “And we're making sure that Downtown is clean and safe, where everyone has the opportunity to succeed and the freedom to chart their own course.”
The money will go toward creating more housing Downtown — both market-rate and affordable — transforming public spaces to create more of a neighborhood feel and investing in local businesses, while boosting public safety efforts and establishing a new artist-in-residency program.
“We will build upon our existing efforts to make sure Downtown is a place where residents and visitors feel safe, feel welcome, and know that they can thrive right here in their city, where they don't have to leave to find greener pastures,” said Gainey. “But right here they can stay, and they can make a living for their family.”
More housing, bustling public spaces
While Downtown workers have been slow to return to their offices following the pandemic, people have been coming Downtown after hours and on weekends. Last July, 1.76 million visitors came Downtown for such events as the pickle-themed festival, Picklesburgh — nearly matching the 1.762 million people who visited in July 2019.
And they’re making Downtown a home. There’s a strong demand for these Downtown residences, according to Jeremy Waldrup, CEO of the Pittsburgh Downtown Partnership. Apartments and condos in the neighborhood have a 90.1% occupancy rate, according to data from the partnership.
“The most exciting thing is to continue to see the residential base of Downtown grow,” Waldrup said. “That has been really transformational over the last ten years. And I think we’ve just tapped the surface. We want to see the residential population grow from almost 8,000 to 15,000. And then you're going to start to see more restaurants and retailers and larger-format stores, as well as thriving small businesses.”
The new state investment will add $22 million to the stack of funds for five different housing development projects Downtown for a total of 800 units, including more than 135 marked as affordable. The largest new project involves converting the Gulf Tower from office space into a 225-unit apartment building with a hotel and retail space on the ground floor.
Others are already in the works. Construction is expected to begin next month on converting the First and Market office complex into 93 one-bedroom affordable units for seniors.
Back in June, local leaders presented a sketch of a plan to turn Downtown from an office park into a neighborhood. It was bright with artistic renderings but short on actual funding. While their plan to turn Market Square into a fully pedestrian plaza crumbled earlier this month, other public space transformations have been given some green.
Specific projects are lined up for the first four years, all of which are slated to finish by 2028.
For example, the state is giving $25 million to projects in Point State Park, such as improved walkways, new lighting for the fountain and adding “recreational activities” on the lawn — all to be completed by the time the city hosts the NFL draft in 2026.
The Steelers and Pirates are giving $1 million to supplement taxpayer dollars for public safety Downtown to add two police officers to the roster and create a youth violence intervention team. And the Pennsylvania Council for the Arts is giving $400,000 to establish a local artist residency downtown — “the largest creative community investment that the Commonwealth has ever made,” Shapiro said.
