With days left in 2025, the Zoning Board of Adjustment issued a ruling that stalled a luxury condominium development planned for the Strip District.

Under the joint ownership of Francois Bitz and Moritz Development, the project planned for 1700 Penn Ave. appeared before the Zoning Board in April requesting a variance for zero-foot setbacks — essentially, a space between where the sidewalk ends and a building begins — and exceptions for residential use of the property and a Floor Area Ratio (FAR) of 10:1. This means the total area of the building could be 10 times larger than the plot it sits on. FAR in the Strip District is usually restricted to 3:1, according to zoning guidelines.

While the board approved the special exception for multiuse residential, both the setback variance and FAR exception were denied.

The zoning board’s ruling was “expected,” according to developer John Moritz. 

Normally, this would send developers back to the drawing board to redesign their structure and resubmit, but Moritz is taking a different strategy that hinges on the fulfillment of campaign promises from Mayor Corey O’Connor’s recent run.

“This is more of a mentality thing of the current administration,” he says. “I think we would have a strong argument to appeal, especially the side setbacks, but we want to wait and see what this new mayoral administration — the people he puts in place — if they’re pro development, if they want to work with us and be reasonable. Because this is unreasonable, we feel.”

O’Connor has already positioned himself as a pro-development leader in Pittsburgh. His first executive action — on his first day in office — sought to smooth out the permitting process for developers, according to reporting by news partner Pittsburgh’s Public Source.

The mayor’s office did not immediately respond to a request for comment.

At the October meeting, parishioners of St. Patrick Church plus Dan and Jim Wholey of Robert Wholey & Co. Inc., raised concerns about how construction and subsequent traffic could be detrimental to patron access in the narrow business corridor.

“I believe that the increased congestion that would result from cramming this oversized development into our human-scaled shopping district will be detrimental to traffic, health, safety and welfare of the employees and patrons of our business community,” Jim Wholey said at the meeting.

The Wholey brothers declined to comment on the board’s December ruling.

Moritz says the plans presented already included major concessions that were spurred by the Wholeys, the Strip District Neighbors community group and other stakeholders.

“One of the most notable ones was we have curb cuts at Penn Avenue — two of them — so we can certainly, by right, have our garages on Penn Avenue,” Moritz says. “When you’re selling multimillion dollar condos, generally, you would not want to go to a back alley for entrance. We did that as a concession to get these people to support us, and, ultimately, we did not get the support.

“I am not moving those garages to the back alley, certainly, and if that results in less retail or something else, so be it.”

Rather than make more changes to the building’s design, Moritz says, he’s ready to play the waiting game 

“I’m not in any rush. I want to do it — I’m not just doing it to do it. We had a vision in mind, we want for-sale condos. I think you need to get certain criteria for that to work, and height is probably one of those, so rather than rush it, we’re going to be patient and see if other people share our vision at the next administration.”

That means that the site’s current tenant, the Helltown Brewing Taproom, may stick around longer. While its lease is up this summer, Moritz says, “I do, I think that will continue, that or something similar.”

Zoning Board members are usually installed for three-year terms. According to City Council legislation from Nov. 12, 2024, John J. Richardson’s term expired on Jan. 1, 2026. Terms for the other two members, LaShawn Burton-Faulk and Alice Mitinger, will not expire until Jan. 1, 2027, and Jan. 1, 2028, respectively.

All three are in — or have just completed — their third terms on the board.