PITTSBURGH Mayor vows to move forward with plan to revive downtown

A new direction calls for adding apartments and not a major retailer.
PITTSBURGH (AP) -- Despite being hurt by the impending losses of two of the city's downtown anchor stores and a second developer bowing out, Pittsburgh officials are pledging to push ahead with plans to revive the city's downtrodden downtown.
"The mayor's commitment is firm, and his resolve is firm that we need to invest in the Fifth-Forbes corridor," Craig Kwiecinski, a spokesman for Pittsburgh Mayor Tom Murphy, said Monday. "Having a strong core is important to the health and vitality not only of the city but the entire region."
Meanwhile, Mulugetta Birru, head of the city's Urban Redevelopment Authority, said the agency would continue to scoop up property to pave the way for a new developer.
"We cannot sit idle and see Fifth and Forbes crumble. It is getting worse by the day," Birru said.
Store to close
Last week, the parent company of Lazarus-Macy's announced it would shutter a store in Pittsburgh -- one of five nationwide -- after disappointing sales since opening five years ago. When it closes in May it will join Lord & amp; Taylor as the second major downtown department store to leave.
Lord & amp; Taylor's parent company, May Department Stores Co., announced last year it will sell its downtown Pittsburgh store and 31 others around the nation as part of a $380 million restructuring.
Also last week, Murphy revealed that King of Prussia-based Kravco Co. -- the second developer he tapped to redevelop the city's so-called Fifth and Forbes retail corridor -- announced it was calling it quits after being bought by Indianapolis-based Simon Property Group Inc.
Kravco's departure may sap efforts to turn around downtown, which appeared to be gaining steam after two previous plans stalled.
Earlier plans
Murphy was forced to abandon a $552 million revitalization plan -- which included ousting 125 businesses and razing more than 60 buildings to make way for upscale shopping, entertainment outlets and restaurants -- in 2000 when the Nordstrom department-store chain decided against opening a store, despite $28 million in incentives from the city.
Almost two years ago, a mayoral task force revealed a $363 million plan to add hundreds of apartments and condominiums, opening a public marketplace and creating thousands of square feet of parking and retail space downtown. The anchor of that plan was a high-end hotel which would be located near Market Square and in view of the Pirates' PNC Park.
Former Kravco vice president Midge McCauley said she would like to continue work in Pittsburgh through her former division of the company, Downtown Works, and Philadelphia developer Dranoff Properties.
Birru said he may try to steer the city away from trying to lure another large retailer downtown and instead focus on attracting entertainment venues, restaurants, cultural programs and especially residents.
"I think we have reached the saturation stage with big retailers," Birru said.
Frank Cass, chairman of Columbus, Ohio-based Continental Real Estate Cos., agreed.
"Realistically, I don't think anyone could look at that area as any downtown retail shopping mecca anymore," Cass said, adding that the city should concentrate on converting downtown office and retail space into lofts and apartments.
"There are some buildings that are available, and through creativity, somebody can figure it out," he said.