Impact Analysis of Produce Terminal and 1600 Smallman
Fourth Economy Consulting was engaged by the Mayor’s office and the Urban Redevelopment Authority of Pittsburgh (URA) to assist in the search and evaluation of redevelopment alternatives for the Produce Terminal located in the City’s Strip District. It was the desire of the Administration to seek options that limited the need for the building’s full or partial demolition while offering uses the present viable financial and operational strategies. It was also critical that proposer’s plans were compatible and added value to the neighborhood and surrounding development plans.
Fourth Economy worked with the URA to issue a limited Request for Proposals (RFP), review submissions, and analyze a variety of criteria, including but not limited to market feasibility, economic impact, redevelopment cost assumptions, redeveloper capacity, financial feasibility, and community impact. Three redevelopment proposals were submitted that
would, to some degree, preserve the length of the building. Fourth Economy worked with the URA to review the economic feasibility of these alternatives to identify the strengths and weaknesses of the redevelopment teams and their potential to realize the vision for the site. This findings memo presents the process and results of the due diligence effort.
The review process included eighteen individuals from the Mayor’s Office, the URA, City Planning and City Council with facilitation provided by Fourth Economy. Fourth Economy also
collected input from additional stakeholders to identify strengths and weaknesses of the proposal and identify issues for clarification, including Riverlife Pittsburgh, Pittsburgh History and Landmarks Foundation, Pennsylvania Historical and Museum Commission and Neighbors in the Strip.
Our process resulted in the selection of McCaffery Interests, and the Produce Terminal is currently in the process of being redeveloped in a way that balances neighborhood goals, historic preservation, and financial sustainability. McCaffery plans to spend $50 million redeveloping the Produce Terminal. The warehouse will have space for shops on the first floor and offices on the upper floors. The Produce Terminal will return to its roots as a food haven with a market, and there will be about 40,000 square-feet of space for local and regional businesses. Three walkways at will cut through the building to ensure that the public has access to the river.