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Whole Foods suspends plans for Penn Plaza development project

A developers plan to level the Penn Plaza Apartments and build luxury condos and a grocery store was dealt a serious blow on Thursday.

Whole Foods announced it’s pulling out of the attempt to build a new store in East Liberty, an announcement that comes in the middle of a court battle between Pittsburgh and the developers.

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The project has been controversial from the beginning, and Whole Foods officials said that they’ve heard enough and are pulling out of the project because of concerns raised by the community.

Brooke Buchanan, Whole Foods Market global vice president of communications and government relations, issued the following statement:

“We’re proud to have been a part of the East Liberty community since our first Pittsburgh store opened in 2002. When the developer of this project first approached us, we were excited about the opportunity to expand in the neighborhood. But we have been listening to our customers and the community, and we understand the concerns about this development. Until these issues have been resolved, we do not plan to move forward with the project.”

Former Penn Plaza resident Randall Taylor said it’s a victory for the community.

"We are not afraid or opposed to new people and new development, but we are very much opposed to losing the Pittsburgh that we love,” Taylor said.

Taylor and others opposed the project, claiming it doesn’t provide enough affordable housing. The Planning Commission denied the developer's plans, but the developer has filed suit seeking to overturn the decision.

Attorney Jon Kamin, who represents the developer, said he’s disappointed that Whole Foods pulled out, but the development will go on.

With regard to Whole Foods' announcement, Pittsburgh Mayor Bill Peduto said, "You are never pleased to see a business deciding to wait before making a decision, but what I think they did was the right thing."

The developer has said they’ve bent over backwards to work with the community, even offering financial help to more than 200 residents who had to find new housing. However, Peduto said they haven’t done enough and he said there’s a way to salvage the project.

"It's very simple. We don't need lawyers and judges. We just need the developer to come to the community meetings, work with the community on the few issues that they have and allow this project to move forward.”

Kamin disputed the mayor's claims that the developer has not worked with the community.  He said the developer agreed to provide 20 percent of Phase II as affordable housing, but he said the mayor wanted 100 percent.

A handful of people are still living in the Penn Plaza Apartments, but the last seven residents are scheduled to move out on Friday. Kamin said demolition will start on Saturday after all of the remaining residents are out.

Whole Foods left open the possibility of returning to the project if the developer and the community reach a compromise.

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

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