When Pittsburgh’s Urban Redevelopment Authority (URA) embarked on a plan in the 1990s to transform a 20-story mountain of slag into one of the city’s premier neighborhoods, some community leaders thought that turning the 238-acre former industrial site into a coveted neighborhood was merely a pipedream. Now, 10 years later, Summerset at Frick Park is a $250 million public-private partnership that is lauded as a national model for residential redevelopment of a brownfield site using design principles of the New Urbanism movement.

The URA believed the site’s five-mile distance to downtown Pittsburgh’s business and cultural districts as well as its proximity to medical and higher educational organizations in the nearby Oakland community would make it a sought-after place to live. They also recognized that the vast, non-revenue producing property could add significant tax income to the City’s budget. Thus, they attracted a group of investors, developers and builders, known as Summerset Land Development Associates (SLDA), and gave them exclusive rights to create a master plan, and began the transformation.

Challenges abound
The project had many more complexities than most brownfield efforts. Since the land was owned by the city of Pittsburgh, SLDA knew at the outset that the project had to be a top priority with city officials so alignment could occur within governmental departments. Next, the former industrial site was being remediated for residential purposes, something that had never been done before in the United States. Thus, the Federal Act 2 Clearance process had to be undertaken to release liability and attainment standards and maintenance procedures developed to support residential use. Two miles of a stream flowing along the bottom of the slag pile had to be restored because it was compromised by runoff from the slag. The development team worked with the Pa. Department of Environmental Protection to stabilize the steep slag slope, grade the plateau to maximize development, add 30 inches of a clean soil cap to retain water and enable vegetation to grow and add a seep system to divert stormwater from the stream.

Neighborhood renaissance
After approximately three years of site preparation, it was finally time to bring Summerset at Frick Park to life. The three-phased master plan called for approximately 700 housing units built as a new, traditional, mixed-use community featuring a wide-range of living options. Sales efforts began in 2001, and by the end of 2008 only 25 properties remained for sale out of the 202 units that were part of Phase One and the initial release of Phase Two. The average base home price was in the low $400,000 range.

Standards create efficient homes
SLDA worked with outside consultants IBACOS to create building performance standards that continue to be implemented and evaluated in every new structure at Summerset. In fact, all of the homes are built to be at least 30 percent more energy efficient than typical new homes constructed in the area. The standards were used as a model for both the EPA’s “Build America” programs and ENERGY STAR. In March 2009, Summerset’s commitment to green building was recognized when one of the community’s homes became the first in western Pennsylvania and just the sixth in the Commonwealth to be designated as “Gold” by the National Association of Home Builder’s Research Institute as part of its green building program. Even more notable, when the Summerset standards were compared against those required by the NAHB Green program, it was determined that essentially every home in the community would qualify for certification.

Impact on values, tax revenue
The URA verified that Summerset has had a tremendous impact on property values in the surrounding area. Sales prices in neighborhoods adjacent to Summerset increased between 44 and 132 percent from 2000 and 2007 while sales prices in the city increased 18 percent during the same period.

The neighborhood is also helping the city and region recoup its investment in the project. Land that previously generated zero tax dollars 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).

Planning ahead
In May 2009, the developers held a groundbreaking event to begin the next phase of infrastructure improvements. Plans include 30,000 square feet of commercial buildings, more than 125 residential homes and 132 apartments. Priorities for 2009 also include selling the few remaining lots currently available.

Lessons Learned

• Prioritize Partnerships: Early on, the developers began working with government leaders and created a task force of elected officials, business owners, neighborhood associations and individual residents. This vested group of project proponents has helped to keep the project a priority through the years. The group still continues to meet regularly to share information, voice concerns, create consensus and keep the project top-of-mind among changing city officials.
• Create Realistic Sales Projections: SLDA recognized that Pittsburgh real estate typically moves at a slower pace that other parts of the country. Correctly estimating the number of houses that can be sold at Summerset each month has influenced infrastructure planning, financial investment and the introduction of new phases. Despite the economic downturn, just as many houses were sold in 2008 as were sold in 2001 and subsequent years under differing economic conditions.
• Respond to Consumer’s Needs: Consumer’s desires are always changing and SLDA reacts by being both responsive and flexible. Based on home-buyer feedback, the group has offered more floor plans, homes with lower base prices and condos with single floor and outdoor living space options.
• Offer Something New and Different: Summerset at Frick Park is the only new neighborhood in the City of Pittsburgh. While it caters to consumers who want the conveniences of a new home and enjoy urban living, it also recreates the traditional feel of local long-standing neighborhoods. Summerset’s early commitment to high performance and quality home construction is also paying off as the market is now recognizing those values as well.