Pittsburgh Downtown Partnership - 2008 Annual Report by Nora Connor

PITTSBURGH DOWNTOWN PARTNERSHIP

CELEBRATING 15 YEARS 2 0 0 8

F A S T F O RW A R D D OW N TOW N .

A N N U A L

R E P O R T

MESSAGE FROM THE PRESIDENT DEAR DOWNTOWN STAKEHOLDER – While 2008 proved to be a challenging year due to the national economy, Downtown Pittsburgh was fortunate to remain relatively strong compared to cities of similar size. There was a major stabilization of the office market with the arrival of UPMC, Siemens Power Generation, Inc. and Equitable Resources, which uniquely positioned Downtown to ride out the recession. Housing continued to grow with the completion of 941 Penn Avenue and the ongoing construction of Piatt Place. While we did see a migration to rental versus for-sale, housing interest was high for Downtown living and absorption remained steady. Retail was definitely impacted by the recession. In 2008, the Pittsburgh Downtown Partnership (PDP) adopted an aggressive strategy to retain our current retailers, led by Saks Fifth Avenue and Macy’s, and to recruit even more retailers in the year ahead. Together with our community partners, the PDP played a critical role in preparing Downtown for the potential Port Authority strike. Gratefully, there was no transit disruption, but the situation presented a unique opportunity for the PDP to demonstrate its ability to unite Downtown employers on important issues. The potential transit strike combined with high gas prices stimulated positive dialogue about alternative transportation, and highlighted key programs such as Zipcar and bike to work. Revitalization of Market Square was a key 2008 accomplishment. Increased programming, consistent communication and new business investment – such as Moe’s Southwest Grille and Dunkin’ Donuts – dramatically improved the performance of the Square and made it a relevant and positive Downtown destination. And now, with the support of our Foundations partners, Mayor Ravenstahl and public input, Market Square will undergo a dramatic transformation in 2009. It will become a beautiful piazza with a focus on pedestriansand with more usable space for events and special functions.

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Funding provided by the Colcom Foundation allowed us to bring a little bit of Paris to Pittsburgh. Through this unique program, 13 businesses activated their storefront/sidewalk space with large openings, awnings, lighting, chairs and tables. The PDP also continued its work to engage everyone in the evolution of Downtown through events such as Walk and Dine, Realtor® Downtown Tour, Downtown Living Exposed Photo Contest, Light Up Night® and holiday shopping. Finally, last year Downtown was the center for many of the wonderful Pittsburgh 250 Celebration events including the Tour of Pennsylvania Bike Race, rededication of the Boulevard of the Allies and the opening of Point State Park. As we look forward to 2009, it is not without some concerns. However, the PDP has a 15-year history of performance, and on behalf of the Board of Directors and staff of the PDP, you have my commitment to do everything we can to keep Downtown moving fast forward! Thank you for your continued support and faith in Downtown Pittsburgh. Yours truly,

Michael M. Edwards, President & CEO

FAST FORWARD DOWNTOWN.

A FULL SERVICE DOWNTOWN MANAGEMENT PROGRAM

STRATEGIC INITIATIVES

FUNDING

PARTNERS

The PDP actively pursues four strategic initiatives:

The PDP has five main funding sources to support its initiatives.

• A Clean and Safe strategy to maintain and promote an inviting Downtown experience

First, as the management entity for Downtown’s Business Improvement District (BID), the PDP receives funding from assessments paid by Downtown property owners and operates in agreement with the City of Pittsburgh to manage BID activities. Second, it receives dues from voluntary members who want to invest in the future of Downtown. Third, through the support of foundations for important project-specific activities. Fourth, government grants and, fifth, through earnings from advertising, fees and sponsorships.

The PDP works with a range of organizations to deliver its vision of Downtown. Partners include government agencies and neighborhood associations, as well as business, community, civic and cultural organizations.

• An Advocacy and Public Policy strategy to support the realization of Downtown’s full potential

VISION Downtown Pittsburgh is one of America’s great urban centers.

• A Transportation and Parking strategy to provide access to Downtown

MISSION

• A Housing and Economic Development strategy to increase the livability of Downtown and generate economic vitality

The Pittsburgh Downtown Partnership provides dynamic leadership and a consistent voice to improve the vitality of Downtown through enhanced services, advocacy, collaboration and marketing.

FIFTEEN YEARS of PROGRESS The Pittsburgh Downtown Partnership opened its doors in 1994 with the mission of positioning Downtown as the premier destination to live, work, shop, dine, play, and visit. Fast forward fifteen years, and the PDP is doing more than ever to ensure that Downtown is a clean, safe, accessible and vibrant neighborhood at the core of Pittsburgh’s latest renaissance. Follow the timeline to see how the PDP’s initiatives have been strengthening Downtown and the City for over a decade, making it a better place for both business and pleasure.

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City Council adopts an ordinance prohibiting aggressive panhandling. Downtown Safety Network is formed.

The PDP is formed with a 3-year funding commitment from the City and foundations. Errol Frailey is hired as President of the PDP and debuts the “Sparkle Season” holiday event.

Business Improvement District (BID) The BID was created by City Council in 1997 and renewed for a second five-year term in November 2006 at the request of the Downtown property owners. The BID includes 100 blocks of the Central Business District and the boundaries are generally the Golden Triangle. More than 4,000 businesses and 350 property owners are located within the BID area.

PDP completes a merger with the Golden Triangle Association in January. Downtown BID is passed by City Council and a 24-member board is formed. “Pittsburgh’s Picking Up” anti-litter campaign and sidewalk cleaning program get underway.

FAST FORWARD DOWNTOWN.

2008 ACCOMPLISHMENTS SAFETY AMBASSADORS 24,288 Pedestrians assisted 1,094 Safety escorts 2,483 Panhandling situations addressed 2,477 Homeless outreach occurrences 1,349 Bike miles 14,840 Miles patrolled on foot

CLEAN TEAM 46,569 Bags of litter collected 3,601 Graffiti tags removed 1,409 Hours of equipment operation 29,400 Miles of sidewalk and gutters cleaned

ADVOCACY AND PUBLIC POLICY

HOUSING

ECONOMIC DEVELOPMENT

MARKETING

• Presented the Condo Tax Abatement Program to the real estate community

• Completed 13 Paris to Pittsburgh projects leveraging $860,943 in new investment

• To prepare a new 10-year Downtown Plan

• Completed a Downtown Resident Survey

• Revitalized Market Square

• Produced and increased distribution of Holiday Guides and Downtown Made Easy Guides

• Completed a Downtown Pedestrian Survey

PARKING AND TRANSPORTATION

• Completed seven Vacant Upper Floors Feasibility Plans

• Worked closely with brokers through the Office Retention and Recruitment Task Force

• Produced and distributed Market Square event brochure

• Completed a Retail Market Analysis and developed a retail strategy

• Delivered consistent “Get Into It” and “The Investor” e-newsletters

• Hired a full-time Economic Development Specialist

• Distributed Annual Reports and hosted 335 people at the Annual Meeting

• Completed final design and secured $5 million to reconstruct Market Square

• 190,000 attended Light up Night and the Saturday holiday season activities

• To decrease the parking tax

• Re-routed buses out of Market Square • Prepared Downtown employers for transit strike

• Organized Walk and Dine, Realtor® Downtown Tour and Downtown Living Exposed photo contest

• Represented Downtown in Port Authority Transit Development Plan

ADMINISTRATION AND ORGANIZATION • Implemented a new financial reporting system • Increased membership by 10% • Incorporated staff reductions

• Increased event sponsorship

• Increased usage of online parking reservations

• Hosted a monthly radio show called “The Downtown View”

• Implemented construction mitigation strategy • Supported increased bike commuting

Harry Finnigan takes over as Executive Director. Courtesy Ambassadors Program is established.

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Office of the Mayor releases the Pittsburgh Downtown Plan. PDP publishes 6 issues of “Views” newsletter and unveils the “Downtown – Get Into It” campaign. “Easy Streets” parking validation program is started.

New Parking Reservation Program is launched. Community Oriented Police (C.O.P.) mini-station created within the PDP offices. PDP hires ABM as cleaning contractor, and new mechanized sidewalk cleaning equipment is purchased. PDP participates in Downtown Greening Initiative and the installation of 350 hanging flower baskets.

PDP offices relocate to street-level space on Liberty Avenue. Weekly “Get Into It” newsletter is offered to members. The Transportation Management Association is formed.

PDP launches campaign to reduce cigarette litter. The International Downtown Association Conference is hosted in Pittsburgh by the PDP. Free evening and weekend parking is offered to shoppers and Downtown visitors during the holiday season.

Mariann Geyer is hired as Executive Director of the PDP. “Coneman” and “Downtown Pittsburgh – A Holiday Tradition with a New Twist” communications campaigns are launched. Free Dollar Bank Shopping Shuttle is offered during the holiday season. 300 tree grates are re-sanded in the Cultural District.

FAST FORWARD DOWNTOWN.

2009 STRATEGIES and ACTIONS To be successful, the delivery of real value to our property owners and members must be a priority for the Board of Directors and staff throughout 2009. The action items will require a high degree of organizational focus, the strategic use of resources and the nurturing of key partnerships.

CLEAN AND SAFE • Increase the effectiveness of the PDP’s Clean and Safe programs • Enhance the level of service of the Clean Team by 10%

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• Close four Vacant Upper Floor loans

• Implement the Retail Strategy focused on Fifth and Smithfield Streets

• Communicate retail, office, housing and parking messages

• Complete 15 new Paris to Pittsburgh projects

• Utilize the website and e-newsletters to communicate with Downtown stakeholders

• Enhance Downtown living information on PDP website • Market the new condo tax abatement • Develop research to support housing investment

• Develop an office retention and recruitment strategy

• Develop an affordable housing policy

• Advance the PDP guiding principle in the Port Authority Transit Development Plan

MARKET SQUARE

• Complete research to understand the current parking situation

• Reconstruct Market Square

• Raise $200,000 in membership revenue

• Manage Market Square

• Secure $94,000 in sponsorship funding

• Re-survey Downtown employee transportation needs

• Secure funding for Market Square programming for 2010

• Request funding through the DCED Neighborhood Partnership Program

• Advocate to lower the parking tax

• Directly engage Downtown residents

ADMINISTRATION • Secure the necessary funding to prepare a new Downtown Plan

• Produce compelling Downtown collateral materials • Produce successful Downtown events • Create awareness of the PDP 15th Anniversary • Enhance website’s interactive features

• Improve pedestrian and bike safety in Downtown

City names Downtown Works as developer for Downtown’s central retail district. PDP kicks off new springtime event, “Thursdays with a Twist.” Downtown Commuter Survey is conducted.

MARKETING

TRANSPORTATION AND PARKING

• Evaluate the effectiveness of the Safety Ambassadors

ECONOMIC DEVELOPMENT

ADVOCACY AND PUBLIC POLICY

• Determine the feasibility of an anti-littering campaign

HOUSING

PDP completes Phase I of Strawberry Way initiative and leads opposition to City Councilapproved 50% parking tax. Downtown Circulation Operations Plan finalized. Jurors Guide with Downtown highlights produced. First-ever Walk and Dine Downtown Living Tour held.

Mike Edwards hired as the new President of PDP. Farmers Market added to “Thursdays with a Twist” and Strawberry Way – Phase II begins. Amended panhandling legislation is introduced by the City.

PDP introduces the new Safety Ambassador Program to increase safety and manage panhandling issues. Launch of the country’s largest free outdoor Wi-Fi network attracts over 4,000 users sessions per month. Walk and Dine attracts over 350 people interested in Living Downtown. PDP completes a redesign plan for Market Square.

PDP launches car sharing with Flexcar (now Zipcar). Market Square improvements show people will come for outdoor dining and entertainment. The Parking Authority provides 7 free parking days and retailers report one of their best shopping seasons ever.

PDP implements a retail retention, expansion and recruitment strategy. With Colcom Foundation PDP brings Paris to Pittsburgh through street and façade activation. Safety Ambassadors assist over 24,000 people. Market Square is revitalizing with events and activities bringing new private business investment. Final design and funding approved to reconstruct Market Square.

FAST FORWARD DOWNTOWN.

DOWNTOWN LIVING EXPOSED

MARKET SQUARE ACTIVATION

The Living Exposed exhibit at the October Gallery Crawl in the Cultural District was the culmination of our Downtown Living Exposed campaign. In early September, we announced a call for photographers, seeking photographs within the last two years that capture the look and feel of Downtown’s emerging residential neighborhood. The contest was juried and the top 20 photographs were chosen from over 70 outstanding submissions. We showcased the selected photographs at our exhibit during the Gallery Crawl.

In 2006 the Mayor’s Office asked the PDP to manage the reactivation of Market Square, in collaboration with the District Attorney’s Office, the Pittsburgh Police Department, and the Departments of Planning and Public Works. In 2008, Market Square saw an increase in usage, a decrease in crime, new national retail tenants, and more private development including residential projects. Public opinion of Market Square has

FIRST PLACE Ms. Ruth Ella Hendricks “September Bike Shadow by Eliza Furnace Trail”

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SECOND PLACE

Ms. Pamela Maria Sodoni “The Boys”

THIRD PLACE

Mr. Brian Cohen “Untitled”

dramatically improved since we began this effort in 2006. The PDP’s efforts in 2008 included: new and enhanced programs and events, more vigorous marketing, additional landscaping, more aggressive maintenance, upgrading street furniture and implementing the Paris to Pittsburgh program. The PDP is part of the City’s development team for the reconstruction of Market Square, slated to start in 2009.

Caption/s Needed

FAST FORWARD DOWNTOWN.

THANKS to OUR 2008 MEMBERS RENAISSANCE LEADER - $10,000 AND UP

DOWNTOWN VISIONARY - $5,000 TO $9,999

Downtown Champion $2,500 to $4,999

Downtown Patron $1,000 to $2,499

Dominion Duquesne Light Duquesne Universtiy Huntington National Bank Meyer, Unkovic & Scott, LLP National City The Pennsylvanian Pittsburgh Penguins Pittsburgh Pirates Pittsburgh Steelers Sports, Inc. Reed Smith, LLP Rugby Realty Company, Inc. Saks Fifth Avenue Southwestern Pennsylvania Corporation Station Square Wyatt Incorporated Yellow Cab Company

Alpern, Rosenthal & Company AMCOM Office Systems Barnes & Noble at Duquesne University Brunner Buchanan Ingersoll & Rooney Burt Hill Café Euro The Capital Grille Carnegie Mellon University CB Richard Ellis/Pittsburgh Continental Real Estate Companies The Duquesne Club Eat’n Park Hospitality Group, Inc. Enterprise Rent-A-Car Federated Investors, Inc. First Lutheran Church First Presbyterian Church

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Gateway Clipper Fleet Gateway Eye Associates Gateway Financial Group, Inc. Grubb & Ellis Company Henderson Brothers, Inc. Hertz Gateway Center, LP Hilb Rogal & Hobbs The Hillman Company Hilton Pittsburgh Houston Harbaugh, PC Howard Hanna Real Estate Services Bill and Janet Hunt Images Pittsburgh, LLP Jones Lang LaSalle L. Robert Kimball & Associates Leech Tishman Fuscaldo & Lampl L.D. Astorino & Associates, Ltd. Lincoln Property Company McCormick & Schmick’s Mechanical Operations Co., Inc. Michael Baker Corporation

Moe’s Southwest Grill Northside Urban Pathways Northwest Savings Bank Omni William Penn Hotel Oxford Development Company Pennsylvania Culinary Institute Pittsburgh History & Landmarks Foundation Renaissance Pittsburgh Hotel Robert Morris University Sanford-Brown Institute Janice M. Smith Strategic Investment Fund, Inc. Trinity Episcopal Cathedral Underwriters Brokerage Service Urban Redevelopment Authority of Pittsburgh (URA) YMCA of Greater Pittsburgh

Downtown Advocate $500 to $999 African American Chamber of Commerce Allegheny County Bar Association Beynon & Company Real Estate & Insurance BBR Services, LP The Carlton CBRE/Melody Central Property Services Children’s Museum Pittsburgh Chubb & Son, Inc. Courtyard Marriott Pittsburgh Downtown Cowden & Associates Cricket Communications The Design Alliance Downtown Athletic Club Duane Morris, LLP

The Elmhurst Group Engineers’ Society of Western Pennsylvania Gaitens, Tucceri & Nicholas, PC Attorneys At Law Goldstock Jewelers William J. Green & Associates HDR Engineering, Inc. Heartland Restaurant Group, LLC Hefren-Tillotson, Inc. Holliday Fenoglio Fowler, LP InterPark, Inc. J.B. Kreider Company, Inc. Jimmy John’s Gourmet Sandwiches Kirkpatrick & Lockhart Preston Gates Ellis LAMAR Advertising Larrimor’s Maher Duessel CPAs May Building/NDC Real Estate McCrory & McDowell, LLC Midtown Tower/NDC Real Estate Palomino Perkins Eastman Architects, PC Pitt Ohio Express Pittsburgh Ballet Theatre Pittsburgh Business Times Pittsburgh CLO Pittsburgh Opera Pittsburgh Public Theater Pittsburgh Symphony Production Masters, Inc. Red Square Systems Seagate Technology Sonoma Grille Tripp Umbach & Associates Tyler Mountain Water Urban Design Associates Western Pennsylvania Conservancy YWCA of Greater Pittsburgh Zambelli Internationale Fireworks

Downtown Supporter $350 to $499 The Buncher Company Grant Street Associates, Inc. Perfido Weiskopf Wagstaff + Goettel Regional Industrial Development Corp. of SW PA Sisterson & Company, LLP Strada

Downtown Partner $150 to $349 625 Stanwix Partners, LP AAA East Central Alphagraphics Benedum Interests Carmassi Benefit Group Carnegie Library of Pittsburgh Franklin Electric, LP Franktuary Gateway Condominium Associates, Inc. James J.Veliky, OD Just Ducky Tours Kerestes-Martin Associates, Inc. Klavon Design Associates Levy MG Logan & Logan Attorneys at Law MJ Concessions N. Michael Fazzini, Jr., D.D.S., F.A.G.D. Harold D. Miller The Mosites Company Oliver Brothers Pittsburgh Urban Magnet Program (PUMP) Port of Pittsburgh Commission Rubinoff Company Smithfield United Church of Pittsburgh

Sunny Home Cleaning Services Sushi Kim Technique Architectural Products, Inc. Trek Development Group Venture Outdoors The Vision Center

Downtown Neighbor $100 Phyllis Armstrong Carol Barbarino Booth Family Charles R. Broff Deborah Dodds Jane Downing Edmund D. Effort, DDS Krista Foster Thomas J. Harrington Paul and Karen Hochendoner Nathan A. Kostelnik Joseph Lagana Kurt Lesker, IV Carol Luckner Ben Luffey Eric Mann Kevin and Kristen McMahon Joseph Petak Robert Pfaffmann George L. Pry Lynne Arthur Rackley Jennifer Papale Rignani John R. Roach F. Brooks Robinson, Jr. Matthew E. Smith Brent R. Sutherland Matt Wagle Randy Waugaman

Downtown Friend $50

PA Association for Sustainable Agriculture Pittsburgh Cultural Trust Pittsburgh Parking Authority Pittsburgh Post-Gazette Pittsburgh Tribune-Review Production Masters, Inc. Recycle Management Star 100.7 Station Square University of Pittsburgh Diabetes Institute Urban Redevelopment Authority (URA) Zipcar

Christi Barber William Baumgarten Audrey Brourman Leslie Cooley Ruth Delach Linda Dickerson Judith L. Dodd Thomas B. Grealish Dan Griffin James Hoffman Thomas McCaffrey Thomas McChesney Mildred Y. Neish Ceil Rockovich Sol Ruben

Foundations

Downtown Vendors $100 Red Hot Pittsburgh Soul-Ice Vending, Inc. Andrew Veneziale

PDP Sponsors Alco Parking America On The Move City of Pittsburgh Mayor’s Office Department of Public Works Department of Parks and Recreation Dollar Bank DoubleTree Pittsburgh City Center Fifth Avenue Place FSC Marketing Communications Geico GetGo Leech Tishman Fuscaldo & Lampl One Oxford Centre

Benedum Foundation Buhl Foundation Colcom Foundation Dominion Foundation The Forbes Fund The Grable Foundation The Heinz Endowments The Hillman Company Roy A. Hunt Foundation Mary Hillman Jennings Foundation Laurel Foundation McCune Foundation Mellon Charitable Foundation Richard King Mellon Foundation The PDP would also like to thank the Downtown property owners. Without their support, the Business Improvement District would not be possible.

FAST FORWARD DOWNTOWN.

2008 PDP LEADERSHIP

PDP STAFF

OFFICERS

DIRECTORS

BOARD MEMBERS

JAN SMITH Board Chair Jones Day

JANE DOWNING The Pittsburgh Foundation

Through February 2009

Through February 2010

Through February 2011

Ex-Officio

RICHARD BEYNON Vice Chair Beynon & Company

GERRY DUDLEY CB Richard Ellis

DONALD CARTER (At-Large)

CHARLES R. BROFF (At-Large)

MARGARET BELL (At-Large)

HERBERT BURGER (Emeritus)

TOM HARRINGTON* (Office 500+k)

JAMES CAMPOLONGO (At-Large)

DAVID CASE (At-Large)

ROMEL NICHOLAS (At-Large)

GUY COSTA* Mayor’s Office (City)

BYRON FALCHETTI* (Tenant 100+k)

ERIC DESTEFANO* Representative, Greater Pittsburgh Hotel Association

TOM GREALISH Henderson Brothers

JOHN R. ROACH (At-Large)

DEB DONLEY (At-Large)

KEVIN MCMAHON Pittsburgh Cultural Trust

RICHARD M. SIEBER (At-Large)

GEORGE PRY (At-Large)

ERIC FEDER (At-Large) – Firstside District

TOM MICHAEL Larrimor’s

GEORGE WHALEN* (At Large) – Mixed Use

ROBERT RUBINSTEIN (At-Large)

BILL CLARKSON Treasurer Strategic Investment Fund MARK BROADHURST Secretary Six Penn Kitchen

MICHAEL EDWARDS Pittsburgh Downtown Partnership

HAROLD MILLER Consultant, Future Strategies JOE PETAK The Hillman Company MERRILL STABILE Alco Parking GEORGE WHITMER PNC Financial Corporation

WILLIAM RUDOLPH (At-Large)

DAVID PAUL GLEASON (At-Large) PAUL HENNIGAN (At-Large) TONYA PAYNE* 6th Dist Pgh City Council F. BROOKS ROBINSON, JR. (At-Large) AARON STAUBER* (At-Large)

BILL DIGNON* President, Bldg. Owners & Managers Assoc. (BOMA) KEVIN JOYCE President,Western PA Restaurant Association DAVID ONORATO Executive Director, Pittsburgh Parking Authority JOHN VALENTINE* President, Downtown Neighborhood Association TOM VANKIRK (Emeritus)

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BROOKE M. RINIER Manager of e-Marketing and Promotions

Mike administers the PDP by advocating for and marketing Downtown Pittsburgh as one of America’s great urban centers.

Brooke creates and distributes PDP publications and manages content for its website.

LUCINDA G. BEATTIE Vice President of Transportation

CAROLE WEBER Administrative Assistant/Receptionist

Lucinda focuses on campaigns to mitigate traffic congestion and enhance ease of travel to and around Downtown.

Carole helps with various administrative functions, special events and greets PDP visitors.

PATRICIA S. BURK Vice President of Housing and Economic Development

ROBYN L. WILLIAMS Finance Director

Patty oversees urban housing and economic development initiatives in Downtown Pittsburgh.

Robyn joined the staff of the PDP in 2008 in a new position as Finance Director. Robyn brings 13 years of accounting experience to the PDP.

HOLLIE R. GEITNER Vice President of Marketing and Communications

KATHLEEN ZAWROTNIAK Program and Events Manager

Hollie manages marketing and public relations campaigns to promote Downtown as the premier location to work, live, play, visit and do business.

Katie programs events and activities in Market Square and provides event support for PDP functions.

SEAN C. LUTHER Economic Development Specialist

JAKE WHEATLEY (At-Large) * BID Committee

MICHAEL M. EDWARDS President & CEO

Sean administers strategies and action items to promote the retention, expansion and recruitment of business throughout Downtown.

FAST FORWARD DOWNTOWN.