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North Side group suing stadium authority
Friday, September 05, 2008

The battle over two controversial sales of land between Heinz Field and PNC Park apparently will end up in court.

Pittsburgh United, a group campaigning for a community benefits agreement in connection with a proposed hotel development on the North Shore, plans to file lawsuits today seeking to block the deals, according to spokeswoman Jennifer England.

Pittsburgh Stadium Authority board members voted 3-1 last month to sell one North Shore parcel and portions of three others to Continental Real Estate Cos. for $1.32 million for the proposed Hyatt Place hotel development.

In a separate vote, also 3-1, the board sold a prime four-acre riverfront parcel near Heinz Field to Continental and the Pittsburgh Steelers for $1.37 million for development of a $10 million year-round entertainment venue.

The sales came over the objections of Pittsburgh United and its allies and stadium authority board Chairwoman Debbie Lestitian, who argued that the sale prices were too low and not a good deal for taxpayers. An appraiser hired by the authority to look at the entertainment parcel disagreed.

Ms. Lestitian also maintained that the option agreement Continental had to develop the land between the two sports venues had expired. In approving the hotel land sale, the board authorized Continental to continue as the exclusive developer.

One of the lawsuits is expected to be an appeal of the stadium authority board's approval of the sales. In a release announcing its plans, Pittsburgh United said the board had failed in its "fiduciary obligations to the public in the transfer of land."

The second lawsuit is expected to involve a claim that the board failed to act in accordance with state open record laws. Ms. England said she did not have any other details yesterday.

Neither the Steelers nor Continental had any comment last night, given that they had yet to see the lawsuits, spokeswoman Kelley Denny said.

Ms. Lestitian declined comment.

Pittsburgh United is seeking from Continental a community benefits agreement for North Side residents that would guarantee good wages, preference in hiring and help in improving the housing stock, among other items.

Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
First published on September 5, 2008 at 12:00 am
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