east liberty station: realizing the potential - City of Pittsburgh

Strategy for Future Phases
As revitalization continues with the 2nd and
3rd recommended boundary expansions,
implementation of the elTRID value capture
strategy proceeds. No project specific TRID
financings were analyzed so it is anticipated
all available increment flows into the VC
Fund. This assumes only 60% of
incremental real property tax revenues are
pledged to the fund by each taxing body. An
increase in this diversion rate could be
requested depending on the investment
strategy determined and the cost of
necessary improvements.
Though, some small scale gap financing
can also be offered for merit projects
within the initial boundary. Retention of
most of the elTRID VC Fund balance will
allow those revenues to combine with
more significant future revenues
anticipated during Phases II and III of the
value capture area. Once annual TRID
revenues have stabilized, larger scale
district-wide improvements become more
feasible.
However, note it is likely that several
potential large scale redevelopment
projects noted earlier would pursue
stand-alone financing, or be pooled
together, in an effort to defray site
development and infrastructure costs.
Project specific financings could in
some cases utilize less than the full
amount of increment available, with
the remainder diverted to the VC
Fund. A key component of the value
capture strategy is use of the VC Fund
as a means of leverage for other
potential funding sources which could
help limit the amount of fund proceeds
required in these transactions. Any
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Appendix V & VI include a full analysis of
incremental tax revenues and contributions
to the VC Fund over the life of the later
phases of the elTRID value capture area.
The Phase II expansion adds another $25.4
million of incremental revenue to the value
capture fund over the 20 year period and
another $2.25 million if income taxes are
also pledged. If the recommended final
value capture area expansion is another
$15.7 million of incremental revenue would
be available from those projects and another
$780,000 if incomes tax revenues are also
captured.
Implementation of Phase I only will result in
capture of TRID proceeds insufficient to fund
large scale infrastructure projects, such as
the Penn Circle Conversion. For the first
period until the 2 nd expansion, the VC Fund
should be utilized to fund additional
infrastructure and other necessary planning
studies that provide a level of detail greater
than the recommendations presented here.