Pittsburgh updates fees for residential, commercial development projects

Pittsburgh has updated its fee schedule for residential and commercial development projects to make up for a $1.4 million shortfall in the Department of City Planning budget.

The city will charge a fee of 0.1% of a project’s cost for residential developments and a 0.3% fee for commercial developments. Fees will be capped at $40,000.

The city said in a news release that it updated the fee schedule “to make sure that the city can recoup the costs of running the department and invest in making the process better for residents and developers.”

“This new fee schedule is more equitable and makes sure that the city is able to cover the basic costs of running the program,” said Mayor Ed Gainey. “The previous fee schedule left the city with a $1.4 million shortfall and left us unable to meet the needs of our residents.”

A project’s value is defined as the cost of labor and materials to complete the work of the project submitted to the city’s Planning Department. It does not include the costs associated with sub-permits such as electrical, mechanical, fire suppression, fire alarm work, survey and construction drawing creation. It also excludes finishing work such as cabinetry, countertops and tiling and land acquisition and financing costs.

The city spent more than $3 million last year to run its Zoning and Development Review Division, while bringing $1.6 million in revenue, officials said.

Officials said the shortfall meant the city couldn’t afford to invest in improvements or cover the operating costs of running the department.

City officials held a public hearing on the new fee schedule in December, and City Council approved updating the fee schedule.

Officials said they came up with the $40,000 cap after a series of discussions with residents, developers and other stakeholders.

“Listening and utilizing our industry expertise and resources to bring about this solution that we can all support illustrates collaborative leadership and sends a message that Mayor Gainey and the city value our owner, developer, institutional partners and our contractors who work each day to build, maintain, restore and improve our great city,” said Dave Daquelente, executive director of the Master Builders’ Association of Western Pennsylvania.