Not a pro here, but I think the biggest issue at hand isn't the ratio of the zoning review cost to the overall project cost, but rather the fact that developers (in this case) could invest $250k to get a zoning review, have it denied, get nothing in return, and be out $250k.

Even as an investor/developer with deep pockets, $250k is a lot of money to put forward if one of the outcomes is that you will a.) get denied and b.) lose your $250k.

I think it's safe to say not many people would make that investment.

Now, the reality is, there is a chance it'll get accepted and Walnut Capital (a company with deep pockets) will have an opportunity to build a big, money making development. However, I think you can see how the exorbitant fees, in the future, will limit other, smaller developers from submitting plans. This will then reduce competition, slow down development in Pittsburgh, and only allow the big boys developers to have a seat at the development table.