Pittsburgh slag hill becoming a neighborhood
A 120-foot-high hill of slag in Pittsburgh continues to be transformed into a neighborhood called Summerset at Frick Park. The development is selling about two units a month, says Craig Dunham, managing general partner of Summerset Land Development Associates and principal of The Rubinoff Company, one of the developers of the public-private project. Houses ranging from $300,000 to $900,000 sold in 2008, with an average base price of $440,000. The walkable design and proximity to employment areas has helped to maintain interest in Summerset, Dunham adds.
The $250 million, 238-acre brownfield redevelopment began in 2001 (New Urban News published a feature article in July of 2004). Summerset includes a variety of single-family house sizes, townhouses, condominiums, and flats on traditional streets and small parks. The plan calls for 713 residential units plus neighborhood commercial. It is located 10 minutes from downtown by car — near Squirrel Hill, a diverse, older neighborhood.
'Steel mills that deposited slag on the property for decades created the unsightly hill, a prominent feature of the landscape that was visible from Interstate 376. Converting the site into a neighborhood, which involved extensive environmental remediation, has boosted property values in the surrounding areas, according to Pittsburgh’s Urban Redevelopment Authority. Sales prices near Summerset increased between 44 and 132 percent from 2000 and 2007. Sales prices in the city as a whole increased 18 percent during the same period.
Recouping the public investment
Government entities invested at least $30 million in the project, including funding for infrastructure and environmental restoration, but they are beginning to recoup those dollars. Land that previously generated no taxes is now providing $2.9 million in annual tax revenue plus an additional $3.6 million from a one-time transfer tax. When the project is completed, annual property tax revenue is anticipated to be $5.7 million (not including income or employment-related taxes resulting from the increased number of city residents).
The developers worked with IBACOS, a Pittsburgh firm, to increase energy efficiency of the houses, including installation of high-performance windows, HVAC systems, and appliances. Every unit is built to be at least 30 percent more energy efficient than typical new houses in the region. The results were confirmed in early 2008 when the local gas company conducted an analysis of 20 homes. The natural gas consumption for heating was 64 percent of what they would expect from similar new homes, exceeding the target by six percent. The 2007 total utility costs for a two-story 2,000 square foot Cottage home averaged $183 per month for both natural gas and electric. In February the National Association of Home Builders awarded its Gold Certification for green house design to one of the community’s newly built houses.
Residents said Summerset’s proximity to the downtown business and cultural districts was the number one reason they moved to the neighborhood. Many said they bought into the development to enjoy both the modern conveniences of new construction and the character of an old house. The need to either downsize or purchase a larger home was another incentive.
Summerset’s goals for 2009 include selling the remaining lots in Phase Two-A and completing the construction of the Overton Manor Flats, the newest residential option that will have a total of eight units. Contracts to continue site work and infrastructure improvements will be awarded this spring, paving the way for the release of a portion of Phase Two-B and Two-C lots later this year. Commercial buildings will be part of the mix in the latter phase. u
Patti Jo Lambert, a spokesperson for the developer, contributed to this article.
