Councilman shelves mayor's tax-break bill

May 30, 2012 12:15 am

By Joe Smydo/Pittsburgh Post-Gazette

A proposal to extend building and home construction incentives got off to a rocky start Tuesday when Councilman Patrick Dowd declined to introduce authorizing legislation submitted by Mayor Luke Ravenstahl.

Council's agenda called for Mr. Dowd, chairman of the Intergovernmental Affairs Committee, to introduce two bills extending the life and provisions of various property-tax abatement programs through June 30, 2017.

Mr. Dowd declined to introduce that legislation and two other bills, also submitted by Mr. Ravenstahl, that would set up a tax-increment financing program for a Buncher Co. development in the Strip District. Mr. Dowd said he had questions about the bills and wouldn't introduce them until Mr. Ravenstahl's office provided answers.

Mr. Ravenstahl's legislation would extend tax incentives for commercial, industrial and residential construction. The amount of the tax break would vary by the type, size and location of projects.

The legislation appeared on council's agenda on the same day that Buncher unveiled plans for 750 units of housing as part of its Strip District project.

Tax abatement has helped at least 13 major developments since 2007, according to the city's Urban Development Authority. The projects include Jack Benoff's development of 19 condominiums at 941 Penn Ave. in the Cultural District and the conversion of the old Otto Milk Co. building into 60 condominiums in the Strip District.

"I can tell you there are people who wouldn't have bought from us if we didn't have it," Mr. Benoff said.

Currently, the city has six construction incentive programs administered by the URA. In July, two programs will expire and two others will revert to less generous incentives without council action, according to information provided by the URA.

See the original post here:
Councilman shelves mayor's tax-break bill