At Gov. Josh Shapiro’s announcement, the region’s leaders commit to progress in downtown revitalization efforts now and into the future.
$62.6M
investment from the Commonwealth of Pennsylvania
$600M
total investment in Downtown Revitalization Vision
$40M
investment from local businesses, foundations and professional sports teams
Supporters of the Downtown Revitalization Vision converged in downtown’s Backyard recently, where politicians, business leaders, and philanthropists presented the strategy to transform the neighborhood. Some speakers, including David Holmberg, chair of the Allegheny Conference on Economic Development and CEO of Highmark Health, rallied everyone involved to play offense as the plans unfurl.
“To have a strong vibrant Commonwealth, you need to have a strong, vibrant downtown Pittsburgh,” Holmberg said, citing the plans for 1,000 residential units at seven shovel-ready sites by 2028. “Pittsburgh’s leaders are bought into making downtown Pittsburgh’s buildings into some of the best in the country.”
Other projects should be completed even earlier, such as Point State Park’s fountain and walkways, with upgrades planned in time for the 2026 NFL Draft when hundreds of thousands of visitors will descend on the city.
The civic and corporate leaders attending the announcement organized by Pennsylvania Gov. Josh Shapiro could not seem to contain their excitement – both on and off stage – as the historic $600 million makeover for downtown was revealed.
Funding Sources
Over the next four years, the Commonwealth will funnel more than $62.6 million from the Commonwealth, with plans to encourage additional investment from private and public sources. Through the Urban Redevelopment Authority, the city is committing $22.1 million; a coalition of 21 local businesses, foundations and sports teams have pledged more than $40 million. In turn, real estate developers are expected to contribute an additional $376.9 million in private sector investment.
In this linchpin of the region – a core business district facing concerns about real estate values, crime, and homelessness – initial plans call for reinventing seven office buildings into apartments and hotels, renovating three open public spaces, and enhancing safety and cleanliness efforts.
Funding Targets
Of that combined capital, $501.1 million will fuel the seven major development and housing projects. The largest of the mixed-use projects is Gulf Tower – converting office space into 225 apartment units, 147 hotel rooms and street-level retail space – at the former corporate headquarters of Gulf Oil.
In addition to the half-billion dollars for housing units, another $85 million will fund public space initiatives coordinated by the Allegheny Conference at Market Square, 8th Street Block Civic Space and Point State Park. The Pittsburgh Cultural Trust is leading the 8th Street Block effort with $30 million in funding; another $30 million project will renovate Market Square and the Liberty Avenue Medians, which is being led by the Pittsburgh Downtown Partnership.
The plan promises 3,500 construction jobs across the project sites, which stretch from First and Market along the Monongahela River to 933 Penn Avenue near the David L. Lawrence Convention Center.
The 2028 target is part of a larger 10-year strategic plan. Nearly one-third of the residential units being developed will be affordable for residents with low-to-moderate incomes – an effort made possible by Local Economic Revitalization Tax Assistance, which abates the value of increased real estate taxes up to $250,000 per year for 10 years for each taxing body.
Together, the stakeholders are tackling challenges, setting collective goals and tracking progress. As elected officials and business leaders stand ready to support a comprehensive revitalization plan for downtown Pittsburgh, we are building a bright future for all who work, live and play there. As we move forward, we are bolstering our value proposition and creating opportunities to attract global business investment to our region.
