The Hill Community Development Corporation is proposing a $2 surcharge on each ticket sold and car parked at a new performance space on the former Civic Arena site in the Lower Hill District.
At a meeting on Monday, Hill CDC president and CEO Marimba Milliones said the revenue from this surcharge could be directed to the Upper and Middle Hill, which are in need of investment.
“What we need from the development team is an additional revenue stream that’s privately funded and wouldn’t even really be out of their pocket,” Milliones said.
She estimated that if the surcharge was applied to tickets sold for the nearly 20,000-seat PPG Paints arena, it could generate about $40,000 per sold-out event.
Chris Buccini, a co-president of the Buccini/Pollin Group, which is leading commercial development on the Lower Hill, expressed doubts, saying money is already being directed to other parts of the Hill. He said a surcharge could put a damper on the construction of the 900-space parking structure, as fewer people use parking garages since the start of the pandemic.
“Look at any parking garage in the city of Pittsburgh. They’re empty. So all of a sudden you want to put a surcharge on a parking garage?” he asked. “What bank is ever going to lend $15 million to make that happen? They’re not.”
Buccini also noted that $8 million in parking tax revenue will be reinvested in the Hill District, as will other funds.
Developers said they were wary that a parking surcharge was feasible but noted that they are still considering a ticket surcharge, which would be passed on to the consumer. They have not committed to either surcharge.
