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Even with new protections added for union members, Pittsburgh City Council and community advocates remain divided on the city’s plan to borrow tens of millions of dollars to stimulate development in Downtown.
City officials and the Urban Redevelopment Authority of Pittsburgh are looking to create a transit revitalization improvement district — known as a TRID — where a $50 million bond issue will help fund new development in Downtown.
On Wednesday, council members unanimously approved a measure to add worker protections to the legislation, but concerns remain about the prudence of taking out a bond and whether the development will be beneficial to the city as a whole.
The new amendments have made it so that if the TRID is approved any building service employee — janitorial staff, maintenance workers and security staff among others — will be represented by a collective bargaining agreement.
Developers also will have to include in their application for funding a detailed plan for working with the union and for preventing or mitigating the displacement of current employees.
During Wednesday’s meeting, Kim Smith attempted to tell council members about how she recently lost her job as a cleaner at the Historical Alcoa Building at William Penn Place. The building was recently converted from office space into apartments.
Smith, overcome with emotion, could not finish her testimony. Another resident was able to finish reading her prepared comments for her.
“That building was like her second home,” the other resident read aloud from the podium. “She spent nearly four decades there and planned to stay there until retirement.”
“Workers like Kim have spent their lives cleaning, maintaining, securing and operating these buildings,” said Peter Schmidt, a Western Pennsylvania district leader for SIEU 32BJ. “Across Pittsburgh and Pennsylvania, commercial and residential conversions are resulting in the loss of good union jobs.”
Last week, 32BJ and advocacy group Pennsylvania United sent letters to council members urging them to include the measures approved Wednesday into the official TRID legislation.
The newly approved amendments also require any development that receives more than $100,000 to pay workers prevailing wage.
While council was united on adding the worker protections, that’s where their agreement ended.
For close to three hours, council members and URA leadership debated the merits of creating the TRID.
Council members Barb Warwick, Deb Gross and Khari Mosley all voted against the measure during the preliminary vote Wednesday.
One of the main concerns raised was the idea of the city taking out a $50 million bond while its own budget is on unstable financial footing. Early projections have shown that Pittsburgh could spend about $24 million more than anticipated this year.
Gross said she didn’t think the need to invest in Downtown was as urgent as it was made out to be, and that it didn’t justify taking out a bond at this time.
“It sounds like the taxpayers giving money to private developers for something that does not directly benefit them,” Warwick said.
The URA and supportive council members, including Bobby Wilson, who represents Downtown, have for months cited the decline in property assessments in the Central Business District as one of the main reasons the city needed to implement the TRID.
Downtown makes up a quarter of the city’s property tax revenue and reduced assessments on the city’s most valuable properties have also cut into the amount of money coming into the city.
But Gross, and many of the people who gathered to share their opinions with council, said they believe the rest of the city should also benefit from taxpayer investments.
“There is gap financing needed all over the city,” Gross said. “This won’t help them.”
The opposition to the plan extends beyond council members as well.
During the more than 90-minute public comment period, residents also continued to voice long-running concerns that the portion of the bond earmarked for transit infrastructure upgrades — $10 million — is not nearly enough, and that the plans remain vague.
“It only firmly committed $10 million … in borrowing to public infrastructure and makes no guaranteed commitments to public transit,” said Maddy McGrady, a co-chair of the Pittsburgh Housing Justice Table, an affordable-housing advocacy group.
Despite the resistance from other members and the public, a majority of council members are supportive of the TRID.
“If we don’t do anything, then we know what’s going to happen,” Councilwoman Erika Strassburger said. “Property values will continue to decline and we will not have the ability to invest in the rest of our neighborhoods — particularly the most vulnerable ones.”