Tree of Life secures up to $18 million in financing from Allegheny County
Major construction on the site is expected to begin this fall.
Allegheny County has agreed to finance up to $18 million in support of the redevelopment of The Tree of Life.
The financing initiative follows a vote by the Allegheny County Development Authority, which authorized tax-exempt financing for the rebuilding of the structure, according to a statement released by The Tree of Life.
Construction has begun at the corner of Shady and Wilkins avenues, the site of the most violent antisemitic attack in United States history. Eleven members of three congregations — Congregation Dor Hadash, New Light Congregation and Tree of Life Congregation — were murdered on the morning of Oct. 27, 2018: Joyce Fienberg, Richard Gottfried, Rose Mallinger, Jerry Rabinowtiz, Cecil Rosenthal, David Rosenthal, Bernice Simon, Sylvan Simon, Daniel Stein, Melvin Wax and Irving Younger.
The county financing will go toward the construction work, as well as historical preservation and restoration efforts, security and accessibility improvements.
The financing is a tax-exempt loan, according to project manager Craig Dunham of Dunham reGroup.
“We will enter into a loan agreement with a bank and that loan will be structured as a tax exempt loan, which means there’s a lower interest rate and a few other things,” Dunham explained. “The [Allegheny County Industrial Development] Authority issues the loan with the bank and the Tree of Life.”
Because of the nature of the financing, Allegheny County isn’t issuing the money itself.
“[T]here’s nothing coming from Allegheny County,” Dunham explained.
Major construction on the site is expected to begin this fall.
Michael Bernstein, chairman of The Tree of Life board of directors, said they were grateful for the financing.
“The support of County Executive Sara Innamorato and Allegheny County Economic Development is critical to the success of our project and long-term sustainability of our institution,” he said.
More than $50 million of a $60 million fundraising goal has been raised to support the construction of the building and future programming.
Funding has come from a variety of sources, Carole Zawatsky, CEO of The Tree of Life, told reporters in May during an on-site announcement that early-phase construction had begun.
“Over 2,000 individuals have contributed, some making $18 gifts,” she said. “Those gifts are really significant for some people. … There are gifts as large as $10.6 million from the state of Pennsylvania, and we are incredibly thrilled to have that. There are gifts from Pittsburgh foundations, $3.5 million and $2 million.”
In addition to construction, the funds raised will support the establishment of a museum and robust programming, as well as seed operations costs and program reserves to ensure the institution’s long-term financial stability and health, as well as the creation of the 10/27 Memorial.
Robin Cohen, The Tree of Life’s chief financial and operations officer, said that tax-exempt financing is common practice for nonprofit organizations undertaking capital projects.
“The financing enables organizations to bridge the gap between the time the cost is incurred and the time funds are raised,” she said.
Designed by Studio Libeskind, The Tree of Life will include exhibition space, classrooms, a social hall and a 300-seat sanctuary/theater featuring the congregation’s historic stained glass windows,and will offer both religious and cultural programming. The site also will be home to the 10/27 Memorial.
“When it reopens,” Bernstein said, “The Tree of Life will be a beacon of hope and a center for celebrating our shared humanity while learning about one another and forging connections across differences.” PJC
David Rullo can be reached at drullo@pittsburghjewishchronicle.org.
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