Capital Project Financing Plan
Pittsburgh Downtown Partnership
Economic Strategy
The Pittsburgh Downtown Partnership (PDP) is the nonprofit business improvement district for Pittsburgh, PA. The organization aims to promote, preserve, and extend downtown Pittsburgh’s safety, image, and economic development.
PDP engaged Fourth Economy to develop innovative financing strategies for capital projects that leverage a mix of public and private funding sources for investment in Downtown Pittsburgh. This initiative responded to the need for diversification and revitalization of Downtown’s real estate and public spaces, exacerbated by post-COVID shifts in work patterns and the consequent decrease in daytime population.
Our Approach
Fourth Economy conducted desktop research and interviews with various business improvement districts and public authorities, to identify potential funding opportunities for capital projects. These funding sources included federal, state, county, and local resources, as well as private funding avenues, such as philanthropic sources and land value capture mechanisms. Additionally, we examined relevant laws, codes, regulations, and the PDP bylaws. Based on this research, Fourth Economy developed a clear roadmap outlining strategies to access and effectively manage the resources dedicated to capital projects.
The Results
Fourth Economy’s plan provided actionable recommendations and financial tools, drawing on successful models from other business districts and governmental levels. We developed a series of deliverables: an easy-to-use tool with a curated list of applicable financial strategies, a calendar to facilitate the tracking of application deadlines and funding information and a recommendation memo with suggested next steps.
On October 25, 2024 Governor Shapiro announced a state commitment of $62.6 million, as part of a broader package of $600 million in shovel-ready projects that are scheduled to be completed by the end of 2028 as part of the effort to improve Downtown Pittsburgh and revitalize the neighborhood.
Location
Pittsburgh, PA