Residential reuse of First Commonwealth building among consultants' ideas for downtown Greensburg

Jul. 16—The First Commonwealth building at the southeast corner of Greensburg's Pittsburgh and Main streets could be filled with a mix of 60 apartments and Airbnb units while the Barclay Building just to the north might house an entertainment or event venue.

A neighboring three-story building to the south once occupied by PNC Bank could be suited for co-working office space with shared amenities. Across Main Street, the former Royer's department store might be developed into additional apartments.

Those are among the concepts for redeveloping several major vacant or underused Greensburg properties presented by a national team of real estate professionals who visited the city for five days this past week.

Key to making such a scenario a reality is cooperation among community leaders and capturing the funding needed to bridge the gap when costs for redeveloping a building exceed the resulting property value, according to members of The Counselors of Real Estate Consulting Corps team.

"You've got a lot of different players and a lot of different financing sources," said team member H. Blair Kincer, whose expertise includes real estate counseling, market analysis and affordable housing. "What I see is a lack of coordination — and humans as the solution. There's some great real estate here."

For the team's concept to fly at the First Commonwealth building, which houses a branch of that bank on the first floor and is owned by the Westmoreland County Housing Authority, city officials would need to have regulations in place allowing for an apartment/Airbnb hybrid development.

"We hear that hotels are needed, and we hear that apartments are needed," said team member Bob Rajewski, a partner with Tipping Point Development in Myrtle Beach, S.C. "This gets you that almost-hotel experience, but with a kitchen."

Financing gap

As imagined by the consulting team, redevelopment of the First Commonwealth building could be part of a cluster of revitalization potential — including the Barclay Building and the former PNC and Royer's business sites. Rajewski noted recreational and fitness facilities in the nearby Greensburg YMCA building and several adjacent restaurants could help support that development.

The team figured the First Commonwealth concept might require about $9.5 million each in equity and debt to achieve.

"There is a financing gap, but there is money available for that." Rajewski said. "This is something to think about."

Team members cited area foundations and government programs among sources of funding for downtown redevelopment efforts.

"Every development has its own (funding) sources," Kincer said. "To redevelop, reuse parcels, you need to fill that gap between what is possible economically and what is probable from a development perspective."

Kincer pointed out that the concepts his team presented for specific downtown properties are "all ideas, none of them are recommendations.

"It's an idea that might not be the idea locals want. What goes in there is less important than something going in there," Kincer said.

"We do recommend that the city do something and get behind it," said team leader Jackie Buhn, a principal and co-founder of AR Spruce LLC, a Philadelphia-based real estate services and development company.

Parking issue

The team also looked at a vacant lot owned by the Westmoreland County Land Bank at 225 S. Main St. The dilapidated former Advance Furniture building recently was razed there as part of a county blight remediation program.

The team considered possible construction of a three-story building there with a mix of first-floor retail space and six upper-floor apartments. But that wasn't deemed feasible, with the projected development cost of $2 million exceeding the resulting economic value of $1.3 million.

Development of a parklet on the property was suggested on an interim basis, according to team member Bob Dietrich, senior vice president of Kidder Mathews in Los Angeles.

Another option, creating a parking lot there, "is going to take away from the retail environment," he said.

Of the 237 people who responded to a community survey issued in conjunction with the team's visit, 39% cited parking as an issue that has created a challenge for downtown development.

"The more you accommodate cars, the more cars you get, and the farther apart things have to be to accommodate cars," Buhn said. "It is a downward cycle."

City planning director Jeff Raykes said Greensburg's planning commission is reviewing the city parking regulations for potential changes. City officials have heard complaints that requirements for off-street parking may be creating a hindrance to development.

A recent study indicated that there is sufficient parking in the city, though it might not be as conveniently located as many would like.

"I walk around the streets and I see a lot of empty (parking) spots," Kincer said. "Do you have a parking problem? If somebody says you do, then you do. The perception that there is a problem is a problem in itself."

Better opportunities

Team members said Greensburg has many assets that other communities of a similar size would envy — including a walkable downtown, a strong employment base and a network of arts and cultural organizations.

"It does have much better opportunities than many small towns," Buhn said.

The real estate team offered an initial presentation of its findings Friday at The Grandeur Estate in Greensburg. A more detailed written report is expected within two months.

Raykes said the team's work will prove valuable as a local steering committee representing a number of partner organizations and stakeholders prepares to hire a consultant to draft a Greensburg downtown master plan.

"This is sort of the opening salvo for a much larger project to develop a vision for our downtown," Raykes said. "We're really thinking about how we can get on the same page in terms of encouraging good development downtown."

Greensburg Community Development Corp., the city of Greensburg and Westmoreland County's Redevelopment Authority and Land Bank partnered with the Realtors Association of Westmoreland, Indiana and Mon Valley to receive $40,000 worth of funding for the real estate team's visit through the National Association of Realtors' Transforming Neighborhoods effort.

The same partners are pooling resources to support development of the downtown master plan, with a funding goal of $25,000 for that project.

Jeff Himler is a Tribune-Review staff writer. You can contact Jeff by email at jhimler@triblive.com or via Twitter .