DA seeks to redirect $1M in state money earmarked for Century III demolition

Allegheny County District Attorney Stephen A. Zappala Jr. wants the money to go to road reconstruction.

By PAULA REED WARD
TribLive

The Allegheny County District Attorney’s Office on Wednesday asked a judge to halt the distribution of a $1 million grant earmarked for Century III Mall demolition so the funds can be used to rebuild the main road that connects routes 51 and 885.

The DA’s request for a temporary restraining order noted the money was awarded in November 2024 by the Pennsylvania Office of the Budget, Redevelopment Assistance Capital Program.

The request asks that the state not distribute the money until the beleaguered mall property is brought to West Mifflin Borough standards and reopened to the public, or that it be placed in escrow to be used exclusively to fix Century III Mall Boulevard, which has been closed for years as the property continued to deteriorate.

West Mifflin Mayor Chris Kelly told TribLive on Wednesday that the borough is in complete agreement with the DA’s request.

“It’s a redirection to make it a more positive outcome for the project,” Kelly said. “The plan is to use it for road construction.”

A message left with the state was not immediately returned on Wednesday.

Kelly estimated that demolition on the property, which began more than two years ago, is about 99% complete.

“We’re pleased with the way they’re cleaning it up and the interest shown by other developers,” Kelly said.

The mayor said he signed a nondisclosure agreement related to the property’s development and could not elaborate.

In May, District Attorney Stephen A. Zappala Jr. said a Chicago developer was interested in the property.

A PublicSource story published last month identified the developer as Steve Panko, the founder of Brightside CRE.

Panko did not return multiple messages left Wednesday.

Steve Townsend, the attorney representing the mall in its ongoing legal proceedings, did not immediately return a message seeking comment.

The mall was originally one of the biggest in the country when it opened in 1979.

Although the property changed hands several times, the current owners, Century III Mall PA LLC, bought it for $10.5 million at sheriff’s sale in 2013.

They filed for bankruptcy protection in 2018.

The 1.3 million-square foot structure fell into disrepair in the 2010s, and the last tenant, JCPenney, closed in 2020.

The company has since been involved in ongoing court proceedings, including a criminal case filed in 2024 after West Mifflin officials declared the property a nuisance and condemned it.