Control of the parking lots at the former Civic Arena site in the Lower Hill District will shift from the Pittsburgh Penguins to the city’s Urban Redevelopment Authority and the Sports & Exhibition Authority later this month.
The Penguins have been paying rent and retaining net parking revenue from the lots across Centre Avenue from PPG Paints Arena, said Kevin Acklin, president of business operations for the Penguins.
The contract giving the team control of the lots is scheduled to expire on Oct. 23, said Tom Link, chief development officer with the URA.
The URA and SEA boards voted Thursday to authorize a three-year agreement with OVG Parking for operation of the lots. OVG Parking is an affiliate of OVG360, which manages PPG Paints Arena.
The URA board also voted to designate $1 from every car parked in the lots to a fund that will support Hill District home repair and improvement projects.
“We fully support the new arrangement, as it allows for OVG to manage parking logistics for the benefit of fans and guests of the arena, and revenues will help the public authorities fund arena maintenance and support community initiatives,” Acklin said.
Parking revenue has been “down sharply since the pandemic,” he said, but the net revenue still “should help the public authorities support arena maintenance obligations and generate funding for community initiatives, like the home repair and improvement programs.”
City Councilman R. Daniel Lavelle, D-Hill District, who sits on the URA board, said the concept of dedicating $1 per car “to push for economic development in the community” has been around for more than a decade.
“It is government who has acknowledged the need and is stepping forward,” he said.
The deal approved Thursday allows for a potential two-year contract extension with OVG Parking, which is set to partner with Denver-based National Parking Services for management staff, marketing services and operations management. National Parking services will receive 33% of OVG Parking’s management fee.
This comes amid a major redevelopment effort in the Lower Hill that includes construction of the FNB Financial Center and plans for a live music venue.
“We share the common goal with the city and public authorities to develop the surface parking lots into an exciting new development to build out the tax base, generate more events at PPG Paints Arena and continue to support the greater community,” Acklin said.
Related:
• $2 ticket surcharge at planned entertainment venue would support Hill District revitalization
• Final beam placed at FNB Financial Center
• Penguins give part of Lower Hill development site to Bethel AME Church decades after it was displaced by arena project
