STATE REP. JAKE WHEATLEY
by Rob Taylor Jr., Courier Staff Writer
State Rep. Jake Wheatley told the New Pittsburgh Courier on June 18 that he filed a petition to the Allegheny County Court of Common Pleas against the Hill House Association for what Rep. Wheatley calls tactics of “deception” by the financially struggling organization.
The petition, also supported by Pittsburgh Councilman R. Daniel Lavelle and County Councilman Dewitt Walton, outlines how many Hill District community partners, including the Hill Community Development Corporation and the POISE Foundation, stepped up to the plate and loaned the Hill House Association $500,000 earlier this year to stay afloat for four months. During that period, Rep. Wheatley and his team would work with the Hill House Board of Directors on a long-term plan for the Hill House’s future.
That’s not to mention the $1 million provided to the Hill House almost a decade ago to assist with the creation of the Shop ‘n Save grocery store in the Hill, Rep. Wheatley said during an exclusive interview with the Courier.
Ultimately, Shop ‘n Save franchise owner Jeff Ross decided to close the store on March 20, after it had been open for five years, but had lagging sales and foot traffic.
But a month after the Hill House Association received the $500,000 in funds from the Hill District Growth Fund, the Hill House announced it was going to dissolve and sell the buildings as quickly as possible.
That came as a shock to Rep. Wheatley.
“We think the Hill House took the money with already an eye towards closing their doors,” he told the Courier exclusively. “Had they been honest and told us that even with this money, they were going to close, we wouldn’t have given them $500,000.”
Representative Wheatley added: “Our petition is one that stresses the fact that we entered into a communal understanding with the Hill House,” but it ultimately wasn’t honored, he said. “We think we were basically duped, the community was led to believe that if we help get them through this transition,” the community would be part of the organization’s long-term plans and restructuring.
Instead, only a few developers came forward with bids on the four properties up for sale, one of which is close to acquiring the buildings. E Properties and Development, a Black-owned entity based in Lawrenceville with Emeka Onwugbenu as founder and CEO, has plans to revive the Hill House Main building, and make improvements to the Blakey Center, One Hope Square and the building that houses the Family Dollar on Centre Avenue.
While the Hill House Association was looking for at least $5 million for the properties, the Courier has learned the bid from E Properties is in the $4.6 million range.
Allegheny County Common Pleas Judge Michael McCarthy must approve the sale, which, the Courier has learned, could come as soon as Wednesday morning, June 19.
Only after the ruling on the sale of the properties will Judge McCarthy entertain the petition filed by Rep. Wheatley and his cohorts. It’s entirely possible that Judge McCarthy could believe the actions that transpired were deceitful, but would have no legal authority to change anything. Judge McCarthy could also believe that the petition filed by Rep. Wheatley has no merit.
Representative Wheatley said he welcomes news of a possible sale of the buildings. “We’re not necessarily objecting to a sale being made,” he said. “We certainly believe it’s better to sell these properties than to go into bankruptcy. We’re not challenging if E Properties is the right buyer. What we’re challenging is the agreement the Hill House had with the Growth Fund and MOU (memorandum of understanding) around monies that we gave in good faith.”
As part of the terms of the pending sale to E Properties, the Hill House Association wants to be provided leasing space inside the Hill House Main building, free of charge, for two years, the Courier has learned.
Representative Wheatley told the Courier he has concerns about why the Hill House Association wants that stipulation, and if it’s connected to the organization possibly acquiring additional revenue from the Hill House Main building even after the sale is completed.
“The deal that we made with the Hill House is, if it is a $5 million or greater sale, the community would get its $500,000 back,” Rep. Wheatley said. “We know they didn’t hit the $5 million (E Properties reportedly bid $4.6 million), but the question is, did they take our money and deceive us? Within a month (after receiving the $500,000 from the Hill District Growth Fund), they then notified us that they were closing our doors. It’s false pretense. What’s the recourse of us being able to make sure the Hill House isn’t going to financially benefit from taking our money, dissolving themselves, and then benefiting from a sale that is ultimately due to mismanagement from the board of the Hill House?”
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