Lexington Technology ParkRedevelopment Plan

7301 Penn Avenue LLC

7301 Penn Avenue LLC’s Development Team

• Developers are Thomas Kopff and Thomas Burns

• Invested in Pittsburgh since 2003

• Successfully redeveloped 3700 Bigelow Boulevard in North Oakland

• Invested in Point Breeze North community since 2007

• Owners of 7301-7325 Penn Avenue

• Tenants include ChemImage and Pittsburgh Public Theater

• Currently investing $10 million to grow Pittsburgh-based tenants

• Also redeveloped commercial properties in Wisconsin and New Mexico

• Bridges and Company

• Pittsburgh-based contractor since 1982

• Built the Target in East Liberty

• Currently renovating 7325 Penn Avenue

• Desmone Architects

• Pittsburgh-based architectural firm since 1958

• One of Pittsburgh’s premier design firms

• Wesbanco

• Formerly Pittsburgh-based Fidelity Bank

• Has financed projects by the developer since 2003

Overview of the Project• $40 million investment in commercial portion• Capitalizing on Eastward Growth in Pittsburgh• Reuse of antiquated industrial buildings positive

for the community • Similar to 7301-7325 Penn Avenue• Small and mid-sized firms given

opportunities to prosper within City limits • Community-based organizations and

companies thriving in Point Breeze North• Pittsburgh Public Theater • ChemImage

• Penn Avenue exposure will fortify redevelopment of Lexington Technology

• Important for local job growth• Committed to Community Involvement

• Job fairs for common area services• Tenants to have online local job board

• Committed to MWBE – 20% Goal• Construction• Tenancy

Development in Pittsburgh Progressing Eastward

Bringing Lexington Technology to Penn Avenue

Enhancing Profile with Signage on Penn Avenue

Development at N. Lexington and Penn Avenue

Development at N. Lexington and Penn Avenue

Development at N. Lexington and Penn Avenue

Other Developed Properties

3700 Bigelow Boulevard, Pittsburgh, PA 5204 60th Street, Kenosha, WI

Shoppes at Rio Rancho1121 Unser Blvd SE,

Rio Rancho, NM

Real Estate Developer vs. Real Estate Speculator

Developer Speculator

Intent to Invest in Property Upon Purchase Intent to Hold Property Until Market Develops

Benefits Community with Jobs, Growth and Hurts Community with Vacant/Dilapidated Structures

Vibrant Atmosphere Security Concerns

Results in Increased Tax Base Stagnant Tax Base

Improved Infrastructure Community Left Behind in City Development

• Redevelopment of Lexington Technology Park a pivotal time for Point Breeze North

• URA has correctly identified need to have a developer

• Neighborhood needs action rather than stagnation

• 7301 has been a major example of development and vibrancy

• Others have speculated and have lacked development in portions of Point Breeze North

Commitment to Community Involvement

• Public meetings (likely quarterly) during planning stages

• Public meetings (likely semi-annual) during lease-up stage

• Strong public support increases the likelihood of developer success

• Job fairs for common area services

• Tenants to have online local job board

• Developer-established website to facilitate interaction with community• Provide updates

• Allow forum for feedback directly to developers

Expressed WBE/MBE Commitment

• Bridges has a history of WBE/MBE working relationships• At the Target in East Liberty, 15% of the vendors were WBE/MBE

• At the redevelopment at 7301-7325 Penn Avenue, 13% of the vendors to date are WBE/MBE

• Bridges typically sets a goal of 20% WBE/MBE participation on projects

• Developer will set a goal of providing 20% of the commercial space to WBE/MBE

Reducing Amount of Commercial Square Footage

Identification of Public Infrastructure Projects

• Developer intends to work with the multi-family/affordable housing developer to facility public infrastructure improvements• In favor of transit hub on busway and connection to Point Breeze North and

Technology Center

• Will support and help to facilitate any such initiatives by affordable/multifamily developers (particularly if it connects Homewood to the public transit system)

Sources and Uses ($ in millions)

Acquisition Cost $ 1.8

Development Cost $39.9

Total Uses $41.7

Equity for Acquisition $ 1.8

Equity for Construction $ 6.5

Construction Loans $33.4

Total Sources $41.7

Highlights of 7301 Penn Avenue LLC’s Plan• High likelihood of success in redevelopment

• Invested in Pittsburgh since 2003 with a history of successfully developed projects

• Currently redeveloping Point Breeze North

• Long-standing local banking relationship

• Desmone Architects and Bridges represent best-in-class

• Adding Value to Lexington Technology Park

• Over $40 million anticipated invested

• Penn Avenue exposure - enhances prestige of Technology Park

• Will develop commercial portion of Lexington Technology Park

• Not tied to a housing developer - will pair with the most-favored

• Point Breeze North Community benefits

• Local businesses and people benefit thru job creation

• MWBEs will be targeted as part of development and occupancy (goal of 20%)

• Plan for continued community involvement

• Community space likely developed by multi-family/affordable housing developer

• Tenant mix at Penn Avenue project reflects anticipated tenant mix at Technology Park

• Local companies

• Non-profit

• For-profit/high tech

• Cultural benefit to community• Creates jobs