URA Announces Retirement of Two Pittsburgh Tax Increment Financing Districts
The three taxing bodies to receive financial gains from the early retirement of the Summerset at Frick Park TIF and the retirement of the Centre – Negley TIF
PITTSBURGH, PA (June 13, 2024) The Urban Redevelopment Authority of Pittsburgh (URA) announced today the early retirement of the Summerset at Frick Park Tax Increment Financing (TIF) District and the retirement of the Centre – Negley TIF District.
Summerset at Frick Park TIF
At its Regular June 2024 Meeting, the URA Board authorized retiring the Summerset at Frick Park TIF District nine years earlier than scheduled, effective at the end of this year. Early retirement will enable the three taxing bodies — Allegheny County, City of Pittsburgh and Pittsburgh Public Schools — to receive 100 percent of the tax revenue generated from the district, totaling a combined $1.8 million each year for all three taxing bodies.
Created in 2013 and authorized to exist through 2033, the Summerset TIF was intended to advance Phase III of the Summerset at Frick Park development. The first two phases of the development included cleaning up a major brownfield site in Swisshelm Park, which was formerly a dumping ground for molten steel byproduct, and restoring and extending Frick Park. The project transformed the site from unused, environmentally contaminated land into 508 residential units consisting of single-family detached homes, townhomes, condos, and a 131-unit apartment building, with improved public infrastructure.
Over time, the URA and stakeholders reimagined plans for the third phase of development on the remaining 70 acres of land. Instead of another phase of housing, the URA now plans to advance a 15-acre, approximately 3 megawatt solar facility on a portion of the site and a nearly 55-acre extension of Frick Park with improved trails and amenities. The URA will utilize the remaining TIF funding for ongoing project costs, including completion of necessary environmental remediation on 22 acres of the site and the construction of Shelburne Park.
“We are proud that our taxing bodies will see a significant, and earlier-than-anticipated, influx of tax dollars with this early retirement. Not only are we improving the financial position of our taxing parties, but we are also advancing the City’s sustainability goals,” said URA Executive Director Susheela Nemani-Stanger. “This Board authorization signifies the URA’s long history of remediating public land to create vibrant, environmentally friendly neighborhoods. We thank the three taxing bodies for their initial investment – we are proud to now provide them with a healthy return on investment.”
Before the Summerset TIF was created and the development proceeded, the taxing bodies received $122,000 annually in taxes. Throughout the TIF’s active period, the taxing bodies annually received, on average, approximately $500,000. Beginning in 2025 after the TIF is retired, the URA estimates, based on current millage rates and taxable assessed values, the taxing bodies will share approximately $1.8 million annually in taxes, on a pro rata basis.
Centre – Negley TIF
The URA also announced the retirement of the Centre – Negley TIF District at its June 2024 Board Meeting. The Centre – Negley TIF was created in 2004, and authorized to exist through 2024, to finance a portion of the mixed-used development costs and public infrastructure improvements related to the development of the Market District grocery store and an attached 54-unit condominium building in Shadyside. Various public infrastructure improvements made as a result of the TIF included installation of public access steps and sidewalks, a bus shelter, traffic signals, walkway lighting, and paving.
Before the Centre-Negley TIF was created and the development proceeded, the taxing bodies received $180,360 annually in taxes. Throughout the TIF’s active period, the taxing bodies annually received, on average, approximately $350,000. Beginning in 2025 after the TIF is retired, the URA estimates, based on current millage rates and taxable assessed values, the taxing bodies will share approximately $559,000 annually in taxes, on a pro rata basis.
What is Tax Increment Financing?
Tax Increment Financing, or TIF, is a creative public financing tool the URA uses to foster large-scale redevelopment that would otherwise not be financially feasible. With TIF, the three taxing bodies agree to forgo a portion of incremental real estate taxes generated as a result of new development. See our How Tax Diversions Work information sheet to learn more.
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About the Urban Redevelopment Authority of Pittsburgh (URA)
The URA is the City of Pittsburgh's economic development enterprise. We are committed to building a prosperous and equitable economy for all of Pittsburgh. We help bridge public and private interests to invest in meaningful, equitable developments that promote housing affordability, economic mobility, entrepreneurship, and neighborhood revitalization. Our work creates and sustains quality jobs, thriving neighborhoods, healthy communities, and sustainable businesses for the benefit of all Pittsburghers.
