A New York developer has emerged as the top bidder for Pittsburgh's bankrupt August Wilson Center for African American Culture.
At a hearing Monday Judge Lawrence O'Toole temporarily postponed a request to approve the $9.5 million bid from 980 Liberty Partners LLC of Monsey. Judith Fitzgerald, the court-appointed conservator endorsed the sale, which would pay off the center's $7 million mortgage as well as a nearly $600 thousand loan from the Urban Redevelopment Authority and other debts. Fitzgerald said the developer's bid could be "very attractive to the city, the county and the African-American community in Pittsburgh," because the proposed addition of a hotel on top of the existing building could subsidize arts-related programing.
According to court papers Fitzgerald said 980 Liberty Partners would provide the August Wilson Center with free gallery and exhibit space plus the use of the 486-seat theater for at least 120 days per year. The center would pay the developer $1 for each sold ticket.
But Pittsburgh Mayor William Peduto and Allegheny County Executive Rich Fitzgerald (no relation) object to the bid and prefer a lower one from a coalition of local foundations which said they wanted to "safeguard its purpose as the preeminent community resource for African American arts programming". The foundations later withdrew their $4 million offer when it became obvious the conservator favored the developer's bid which includes erecting a 200-room hotel on top of the existing structure.
O'Toole gave the various parties a week to file responses to the proposed sale. The conservator is to meet with community groups this morning to discuss the fate of the August Wilson Center.
