Battle continues over East Liberty redevelopment project

A lengthy legal battle could be brewing over a project to clean up an eyesore in East Liberty.

For more than a year, plans have been in the works to transform Penn Plaza into a Whole Foods and luxury apartments, but what happens next to the eyesore in East Liberty could be in the hands of a judge.

Last week, the Pittsburgh Planning Commission rejected developers Pennley Park South’s plan to create new apartments and stores, in part, because the plan didn’t include any affordable housing on-site.

The project has been wrapped up in a larger debate about affordable housing in Pittsburgh, which is why the developer believes the city’s decision is politically motivated and appealed the city’s decision on Wednesday.

“The goal posts were continually moved on a project, but every time they were moved, we tried to meet them, said Pennley Park South attorney Jonathan Kamin.

The developers agreed to contribute 50 percent of its tax abatements, or about $10 million, to the city’s newly created affordable housing fund. They also spent around $400,000 to help Penn Plaza residents relocate.

Kamin said low- and middle-income housing on the site was never part of the plan.

"To see it all fall apart because of the arbitrary and capricious behavior of the planning commission has been frustrating to say the least,” he said.

However, those fighting for more affordable housing said more needs to be done. Community activist Carmen Brown is part of the fight for more affordable housing, especially in communities like East Liberty, where luxury apartments are becoming more common. Brown said she wants to see all future developments include affordable housing.

"There's no affordable housing at all because of all of these luxury apartments. It's very important, definitely important, they include that affordable housing. If they don't, where are they going to live?" Brown said.

Planning Commission members said there weren’t enough community meetings to discuss the impact of the redevelopment, which Kamin strongly denied.

Several commission members and the planning director did not return Channel 11 News’ calls for comment as of Wednesday afternoon.

Stay with Channel 11 News and WPXI.com for continuing coverage.

Cox Media Group