Buy high, sell low. The Urban Redevelopment Authority of Pittsburgh is selling the vacant Saks Fifth Avenue store and related property for less than what it paid for it because the Authority believes in the potential of the project. But that does not mean that the sale occurs and the public stands out of the way, far from it.
As department stores disappear and become retail/residential lifestyle centers, there is still a desire to pump public funds into the transformation. That’s what happened with the heavily subsidized Lazarus store, is happening with the Saks store (not to mention that there was a last minute attempt to cobble together an incentive package for the store to stay put) and it won’t be surprising to see it happen with the Macy’s store.
Saks is partaking of a $4 million Redevelopment Assistance Capital Grant (the original request was $8 million, see here under 2014 awards–ironically, an August 2011 headline titled “Seeking to Keep Saks Downtown, Local Leaders May Seek State Money For Upgrades” could be retitled to “Seeking to Redevelop Saks Site after Retailer Vacates, Local Leaders Still Seek State Money for Upgrades” ) and a URA financed loan that will be repaid with 75% of the parking tax revenue generated at the site.
