Property developer sues Pitt over Oak Hill

A property developer is suing the University because it believes Pitt has offered incentives… A property developer is suing the University because it believes Pitt has offered incentives to residents in an effort to acquire land that is part of a proposed housing expansion.

Beacon/Corcoran Jennison, a Boston-based developer, began working on Oak Hill, a development within West Oakland and the Hill District, in the mid-1990s. The development was to have two phases.

With phase one complete, the company has now filed a complaint in the Court of Common Pleas, which claimed Pitt “willfully” disrupted Beacon/Corcoran Jennison’s progress and contract with the city in an attempt to “become better situated to purchase the land for its own use.”

The claim alleges that the University offered inducements to certain residents of Oak Hill who sit on the Oak Hill Residents Council, formerly known as the Allequippa Terrace Residents’ Council, “in an effort to ally those residents with its own plan to damage [Beacon/Corcoran Jennison’s] relationship with [the council].”

The alleged incentives include entrepreneurial opportunities for Oak Hill residents, the construction of a co-op grocery store, a resident-run and controlled concessions stand at the Petersen Events Center, full-tuition scholarships for Oak Hill residents and a protective bubble over an outdoor swimming pool to allow year-round access.

The University has hopes of using the land to build additional varsity and intramural baseball, softball, soccer and track facilities, according to the complaint.

Pitt’s Vice Chancellor of Public Affairs Robert Hill said that he could not comment on the lawsuit, but was willing to talk about Pitt’s relationship with Oak Hill residents.

“The University has great respect for the residents of Oak Hill,” Hill said. “The University provides a host of services for the residents of Oak Hill.”

Miles Byrne, of Beacon/Corcoran Jennison, said in an e-mail that the company first found out about Pitt’s alleged inducements at a meeting in late August.

“I cannot be certain as to Pitt’s motives, as [Beacon/Corcoran Jennison] has not been involved in any private discussions with the University,” Byrne said.

Beacon/Corcoran Jennison began its partnership with the council in the mid-1990s, according to Byrne.

He said that they hoped to take “the most deplorable public housing development in Western Pennsylvania,” and turn it into a nicer mixed-income residential community.

According to Byrne, an Oak Hill resident petition was circulated in the neighborhood in mid-September. The petition listed what Beacon/Corcoran Jennison promised to accomplish during the first part of development.

More than 180 families signed the petition in support of Beacon/Corcoran Jennison’s plans, according to Byrne.

Byrne said that the residents of Oak Hill would receive a variety of benefits if they allowed Beacon/Corcoran Jennison to complete its work, including $2 million for a renovation project, $1 million to support resident services to the community and more commercial and housing space.