City of Pittsburgh – Department of City Planning The Pittsburgh and Philadelphia Stories John Carpenter REDEVELOPMENT AUTHORITY of the CITY OF PHILADELPHIA.

City of Pittsburgh – Department of City City of Pittsburgh – Department of City PlanningPlanning

The Pittsburgh and Philadelphia Stories

John CarpenterREDEVELOPMENT AUTHORITYof the CITY OF PHILADELPHIA

Kim GrazianiOFFICE OF THE MAYORof the CITY OF PITTSBURGH

Pittsburgh Philadelphia

Total Miles 55.42 sq mi 135.09 sq mi

Total Neighborhoods 90 neighborhoods 155 neighborhoods

Total Population 333,527 1,540,351

Population Loss over 50 Years

343,278 or 50 % 452,703 or 23%*

Median Sales Prices for Single Family Homes

$66,562 $130,400

Percent of Homeownership

52% 59.3%

Approx. Total Taxable Parcels

126,732 570,000

Amount of Tax Delinquency (total parcels ≥ 2 Years Tax Delinquent )

17,780 or 14 % 100,000 or 18%

Abandonment (total parcels ≥ 5 Years Tax Delinquent )

8,690 or 6.8% ?

Foreclosures 2008 1,199 (0.7%) ≈ 5,500 (1%)7430 (2009)

Vacancy (lots and structures)

14,000 vacant lots (9,826 parcels publicly-owned)

6,000 or12% vacant buildings

40-60,000 vacant properties

(10,000 publicly-owned)

It’s Everywhere• 40-60,000 Vacant Properties (estimates vary)

It’s Expensive

Jumbled Ownership• Hard to Assemble Parcels

Private vs. Public Ownership

Philadelphia Vacant Land Story

DEFINITION OF THE DEFINITION OF THE PROBLEMPROBLEM

City-Wide VacanciesPhiladelphia Vacancy

Density

IT’S EXPENSIVEIT’S EXPENSIVE

$69.4 Million (to date)

$11.3 Million (L&I FY2008)

Blighted properties reduce the value of nearby properties by up to 20%

Lost revenue from failed real estate tax collection

Maintenance of vacant properties by City

Diminished value resulting from vacant properties

Philadelphia: Definition of the Problem

Jumbled Ownership

Status

Privately Owned Tax Delinquent

City Owned Vacant Parcels

Privately Owned Vacant Parcels


Private OwnershipTax-Delinquent

Public OwnershipFragmented

Private Ownership vs. Public Ownership

1 out of 5: Publicly Owned1 out of 5: Publicly Owned

PublicPublic

4 out of 5: Privately 4 out of 5: Privately ownedowned

PrivatePrivate

Private Ownership = 4 out of 5

1 year = $1.4 Million

2 -10 years = $6.2 Million

11 + years = $61.8 Million

Most of the older delinquencies are considered uncollectable.

Total Private Ownership =

4 out of 5

Vacant Properties

Over half are tax delinquent,

a total of $69.4 million

PrivatePrivate


Fragmented Public

Ownership

0%

10%

20%

30%

40%

50%

PHDC PHA RDA City

Total Public Ownership =

1 out of 5 Vacant Properties

50%50%

27%27%

15%15%

8%8%

PublicPublic


Philadelphia: Goal

Unified system of: Tax foreclosure

Property maintenance

Effective marketing for reuse

Websites with property lists

Broker Sale Pilot

Coordinated RFPs

Simplified Documents

More Predictability

Recent Progress

City-Wide Vacant Land Work Group

Convened by the Mayor

How We’re Fixing the Problem

Lessons Learned

Key Linkage Between:

Tax Tax Collection Collection

PolicyPolicy

Land Re-Land Re-use use

OpportunitOpportunityy

Everyone is a Stakeholder:

• Homeowners

• Landlords

• Non-profits

• Government

Differing Interests

1986-1990

Pittsburgh: Definition of the Problem

1991-1995


1996-2000


2001-2005



2006-2010


Pittsburgh: Definition of Problem



Scale and effect of decline in certain

neighborhoods

Cost to acquire, maintain and responsibly reuse

Local community capacity

Current Resources to Address the Problem

Pittsburgh Land Reserve

Mayor’s Green Up Pittsburgh Program

Comprehensive and Local Plans

Increased demolitions

Goal

Create a more comprehensive system to recycle tax delinquent and abandoned parcels by:

improving the current system that works if there is

an end user/market;

creating a system to deal with properties with no market; and

develop a sustainable funding mechanism

Larimer45% of neighborhood is tax delinquent (1,977 out of 4,348 taxable parcels)

Larimer Green Zone Total Costs

2004-2007 2008 2009 2010 Total

Public Acquisitions $123,379 $148,232 $19,250 $290,861

Private Acquisitions $196,108 $110,837 $306,945

Holding Costs $500 $532 $2,578 $272 $3,882

Demolition $133,067 $2,945 $136,012

Community Support Greening $27,175 $30,000 $30,000 $87,175

Organizational/Programmatic ELCCC/Kingsley $67,825 $15,000 $82,825

Hosanna Industries Homeface Program $100,000 $100,000

Total $123,879 $243,764 $496,003 $144,054$1,007,70

0

Total Cost: $1MillionTotal Acreage Under Public Control: 7.85 (13.5 acre zone)

Larimer45% of neighborhood is tax delinquent (1,977 out of 4,348 taxable parcels)

Before

After

Process to Achieve Our Goal Mayor Ravenstahl is leading the charge via the Land

Recycling Task Force

Members of the Task Force include:

City Representatives County Representatives State Representatives School Representatives Local Authorities Community Development Professionals Real Estate Attorneys Advocates

Task Force meets quarterly Pilot projects

Lessons Learned

Focus on tax policy

Costs of blight

Benefits of stabilizing communities

Involve community

Support creative reuse strategies

Comments/Questions?

Cindy Daley: [email protected]

Dan Kildee: [email protected]

John Carpenter: [email protected]

Kim Graziani: [email protected]

GO STEELERS!Thank

you.

mailto:[email protected]


