Locally based PNC Financial Services Group is contributing $122 million, plus the land, which now contains 13 PNC-owned buildings. The Commonwealth has pledged a $30-million incentive package for the project. The complex is designed to contain a 23-story tower with an aggregate of 361,000 sf of office space on 12 floors; a five-floor, 158-room hotel; approximately 32 residential condo units on the top four floors, plus ground-floor retail/restaurant space and parking for 330 vehicles. "This is the initial plan, which will be finalized within the next six weeks," a PNC spokeswoman tells GlobeSt.com. "The final plan may be altered a little."

PNC will own the complex and the developer is locally based Oxford Development Co. The TIF comes from the city, school district and county. It will be repaid using approximately 60% of the estimated $1.2 million in new annual property tax revenue generated by the project. PNC is guaranteeing the project, according to the spokeswoman, and will pick up the tab if it doesn't meet the anticipated revenue generation.

The San Francisco-based Gensler architects and the locally based Astorino firm designed the building, which is being constructed to achieve LEED's green building certification. Negotiations are under way for the hotel brand, according to the spokeswoman. Locally based Howard Hanna Real Estate is handling sales and marketing of the condos. Cliff Schultz of Hanna tells GlobeSt.com, "the sizes of the units and pricing will be finalized within about 30 days. We're figuring out what the market will bear, and that could depend on the hotel flag. The units might be called 'the Residences at…' for example."

The Reed Smith law firm, based here, has committed to lease 46% of the office component, which will be named Reed Smith Centre. PNC will also take some office space, the size of which is yet to be determined. According to first-quarter 2006 data from locally based Grant Street Associates, the Cushman & Wakefield affiliate here, the Downtown office vacancy rate is 18.9% and the average asking class A rent rate is $18.06 per sf. JR Yocco of Grant Street tells GlobeSt.com, "typically, first-generation space commands a little higher rate than other class A office space."

Demolition of the 13 existing buildings on the land will begin this July and August, followed by ground breaking. Completion is scheduled for late 2008. Three PNC Plaza is part of the revitalization efforts under way for the Fifth and Forbes corridor on which the city owns about 20 buildings and is in the process of evaluating plans submitted by two area developers: Millcraft Industries and Ralph Falbo Inc.