100 affordable homes coming as part of community benefits deal in Bakery Square expansion

Pittsburgh-based Walnut Capital is committing to help build 100 affordable for-sale houses as part of a community benefits deal attached to a proposal that would nearly double the size of its Bakery Square development.

The Bakery Square office and commercial development opened in 2009. It expanded to include housing and now sits on 20 acres in Pittsburgh’s Larimer and Shadyside neighborhoods. The proposed expansion would extend the specially planned district to include an adjacent 14-acre site owned by Walnut Capital in the Larimer and East Liberty neighborhoods.

Walnut Capital has committed to helping fund a $25 million effort to build and rehabilitate 100 homes in the city’s East End. The developer has said it would provide some of that funding directly and assist with fundraising efforts to raise the rest.

The area median income ranges from $70,300 for an individual to $132,600 for a household of eight, according to the city’s Urban Redevelopment Authority.

At least 17% of housing included in the Bakery Square expansion itself also will be affordable housing, said Councilman Ricky Burgess, D-Point Breeze.

Burgess said the focus on 100 affordable for-sale homes is a “game changer” for low-income communities and can help people to build generational wealth that can’t be accomplished through rental properties.

“In order to make Pittsburgh a city for all, we must engage in transformational development opportunities,” Burgess said.

The community benefits agreement is a framework for a partnership among the developer, local government and community organizations and residents, officials said Tuesday during a news conference announcing the deal’s signing.

“We believe with this collaborative effort, we’re going to be able to help people who don’t have a voice,” said Pastor Darryl Canady, vice chair of the Village Collaborative of East Liberty.

K. Chase Patterson, chair of the Larimer Consensus Group and CEO of Urban Academy Charter School, said the deal is a “catalyst or a spark” that could launch larger revitalization efforts in the East End communities around Bakery Square.

“The signing of this community benefits agreement is a testament to the power of collaboration and commitment,” he said.

Walnut Capital leaders have been meeting with community leaders for about two years to hammer out a deal that focused on community priorities, Walnut Capital President Todd Reidbord said.

“We really listened to community leaders,” he said. “We understood what the intricacies of each of these neighborhoods are.”

He said home ownership opportunities were identified as a main priority for the community and said the development will aim to provide housing options for everyone, including low-income, workforce and market-rate units.

“The programs we’re designing really benefit everybody,” Reidbord said.

Details on how the commitments made in the community benefits agreement will come to fruition haven’t been finalized. Reidbord said he could not say how they would fund the 100 affordable for-sale houses or where they would be located.

Related:

• Proposed Bakery Square expansion cause for excitement, concern in East End

• Walnut Capital looks to expand Bakery Square, support affordable housing in Pittsburgh's East End

The deal also includes $4.8 million in funding for community-based organizations that will use the cash for educational opportunities, workforce development initiatives and other priorities, Burgess said.

Walnut Capital also will hire a fundraising consultant and provide technical assistance to the community groups involved.

Walnut Capital needs zoning approval from the Planning Commission and City Council before it can move ahead with the proposal.

The expanded development project aims to extend Bakery Square’s office, residential and retail development and improve street and traffic patterns in an effort to “connect communities and invite walkability,” according to Burgess’ office.