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Thursday, May 22, 2003

By Tom Barnes, Post-Gazette Staff Writer

Pittsburgh redevelopment leader Mulugetta Birru was elated yesterday as he moved closer to a six-year goal -- taking possession of an X-rated movie theater on the North Side so he can shut it down.

Commonwealth Court, in a split decision released late Tuesday, affirmed an April 2002 ruling by Allegheny County Common Pleas Judge Alan Penkower. He'd ruled that Birru's Urban Redevelopment Authority acted properly in 1997 when it used its eminent domain power against the Garden Theatre, owned by businessman George Androtsakis of New York City.

Birru is hoping to finally end the long fight over the theater on West North Avenue and remove what he and many neighborhood residents consider to be a blight on the North Side. The drawn-out court battle has cost the URA more than $500,000 in lawyers' fees.

"It's a big win," Birru said of the Commonwealth Court ruling. "We have known all along we were going in the right direction. We were asked by the community to intervene and redevelop that blighted area."

Androtsakis and his lawyer, Peter Georgiades of Pittsburgh, have argued that the URA violated Androtsakis' free speech rights by seeking to close the theater. Because of zoning restrictions on adult entertainment venues, they said it would be difficult or impossible for the theater to relocate in the city.

URA lawyer Joel Aaronson called the free-speech claim bogus and said yesterday that the theater's argument had now been rejected by both Penkower and the appeals court.

"The Garden Theatre owner has tried to seize some First Amendment 'moral high ground' without caring about how [the delay] has affected the North Side's ability to turn itself around," Aaronson said.

The three-judge appeals court panel was split 2-1, with Judge Rochelle Friedman dissenting. Forming the majority were Judge Doris A. Smith-Ribner and Senior Judge Jess Jiuliante.

Georgiades said that within a week, he and his client will decide which of three options they will pursue: asking the full court to reconsider the panel's decision; appealing to the state Supreme Court; or dropping their appeal and negotiating with the URA over a fair selling price.

For now, Androtsakis continues to control and operate the theater.

Birru said he would like to take possession of the Garden and shut off the projectors as soon as possible. He said the city's effort to complete a $45 million urban redevelopment project around the run-down intersection of Federal Street and North Avenue has been stymied by the theater.

Setting a fair price for the theater, however, may not be easy.

The URA offered in 1997 to pay Androtsakis $213,000 for the theater. But Georgiades said yesterday that in legal papers, the URA has claimed it's been the legal owner of the theater since 1997, and is contending that Androtsakis owes it rent amounting to $1.75 million.

"Either the URA's estimate of the value of the property is artificially low or the amount they claim for rent is artificially high," Georgiades said. "In either case it shows bad faith on their part."

The issue of a fair price could go before a board of viewers, which would set the price, he said. If either side is unhappy with the board's decision, the issue would go back to court -- posing the possibility of further delays in closing the theater.

Tom Barnes can be reached at tbarnes@post-gazette.com or 412-263-1548.