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nemo31

They will be asking for more subsidies. Same old pattern no matter what city they develop in. What exactly is a one and a half bedroom apartment? Either its a bedroom or not.

What a nice company to do such nice things for you poor downtowners.
These ppl are making a fool of everyone they deal with. I told yo before you haven't seen the worst of it yet. I want someone to subsidize my next car lucas......

Mark Rauterkus

The guy, gal or company that builds a Tri-Mont styled tall building(s) for the purpose of "TIME-SHARES" is going to make a killing.

A time share, cleaning services (optional), long-term cheap parking, bike rentals, taxi and van services, party rooms for rent, high speed networks, --- etc., etc.

Put in a spa if you want -- but make it family freindly. Make a couple of home-owner rental groups too.

There are plenty of people in "Steeler Nation" that would be happy to own an "urban flat" for a week each year each season -- with built in flexibility and security to match dates and footprints with family specific needs (funerals, weddings, graduations, reunions, seasonal games, etc.).

O

My understanding of it is that, according to the regs, in order to be qualified for the Tax Credits that Piatt is proposing to use, the property must be "primarily income generating" so rental and commercial space would qualify, but condos would not. It's an interesting way to create a commodity (tax credit) and sell it on the open market rather than providing direct subsidy to the project.

But, hey, I'm just a Bureaucrat.

Sam M

O,

In your understanding, is this switch necessary in order to secure the subsidies already discussed with regard to these projects? Or are the Piatts hoping to secure MORE subsidies?

From what I can gather, these are different subsidies. The $18 million they are already in for is coming from the state, right? What's being discussed here would be federal money.

Although I need to go back and check. Was the $18 million (or whatever portion of that $18 million Rendell promised) specifically for the Murphy building? Or was that for a different project?

Either way, what's a "federal historic tax credit"? Does this mean that it is a federal tax credit of historical proportions? Or that it is a federal tax credit designed for historical preservation? If it's the latter, why would they care about the ultimate use, as long as something got "preserved"? And speaking of which, what exactly is being preserved here? The facade?

That is, what kind of tax credit is this? Which tax would the credit be part of? That is, the feds do not assess a property tax. So would this be a tax credit for the Piatt's corporation? SOme sort of income tax credit?

Perhaps a more succinct question might be: What is the name of this "tax credit"? And where can I find some more info?

sean mcdaniel

maybe i need to read more carefully...but did anyone notice a rent range on what the developers consider affordable for people making $40,000 to $50,000? The developer says the rates will be less than $1.50 a square foot for 1,100 square foot units. But what don't reporters ask this kind of question..."Uh, like excatly how much in real dollars? $1,200? $1,000?" A lot of you guys are writers. Do you consider that inefficient investigating?

Is $1,500 really affordable for that salary range? At that rate, you can buy a house that costs $100,000 or more.

nemo31

Pennsylvania Historical and Museum Commission (We used to refer to them as the Hysterical Commission) google this at home page left side click federal tax credits. Another 10% or 20% of free money. The investors usually receive $1.00 back on each 90 cents invested from the fed. These sell in $5000 dollar blocks. Figure in the cost you got the subsidy. Facade and structural are eligible.

Jonathan Potts

Sean,
Good question. At the low end, $12,000/year in rent ($1,000/month) is 30 percent of a $40,000 salary, which I believe is about the max that people are supposed to pay for housing. At $50,000, you are paying 24 percent of your salary, roughly, if you pay $12,000/year in rent. Another question would be whether utilities are included.

sean mcdaniel

hell for $12,000 a year, the rent better include a FREE sandwich from Primanti's on demand. So as a journalist, what's your take on why local reporters can't ask those kinds of questions I brought up?

O

Sorry, I was otherwise occupied, but nemo provided the answer. Tax credits are allocated to projects and can be purchsed by third parties to be used to offset their (the third party's) Federal taxes.

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