Regional Industrial Development Corporation of Southwestern Pennsylvania Year in Review 2011
Mar 30, 2016
Regional Industrial Development Corporationof Southwestern Pennsylvania
Year in Review 2011
Regional Industrial Development Corporation of Southwestern Pennsylvania2
TABLE OF CONTENTS
RIDC By the Numbers ................................. 3
Letter from the President ........................... 4
Letter from the Chairman ........................... 5
Board of Directors ....................................... 6
Officers ........................................................ 7
RIDC Overview ............................................ 8
2011 Development Overview ................... 10
2011 Park Overviews ................................ 12
Regional Industrial Development Corporation of Southwestern Pennsylvania 3
BY THE NUMBERS
$7,256,322
16 new leases
29 leases
93,205 sF
228,771 sF
2,831 acres
$11,503,936
new financing in 2011
total acreage
acres in Foreign Trade Zone
number of leases renewed
total square footage of new or expansion leases
total square footage of renewed leases
capital investment in 2011
number of jobs within tenant buildings
number of new/expansion leases signed
7,168 acres
5,230 jobs
total taxes paid in 2011$4,080,820
Regional Industrial Development Corporation of Southwestern Pennsylvania4
TO OUR PARTNERS AND SUPPORTERS:
2011 was an exciting year for us - featuring an aggressive agenda of new development and revitalization projects that align with the key goals of our organizational mission.
ECONOMIC GROWTHDespite a soft national economy, RIDC was very active, with new acquisitions bringing new build-ings and land on line. We also added staff to our team and expanded important partnerships with regional municipalities, institutions and economic development partners.
HIGH QUALITY JOB CREATIONJob growth advanced as our technology commu-nity continued to be a primary focus of develop-ment, with new tenants including global leaders like Disney at our Collaborative Innovation Center, and promising young companies like Nanogriptech, Advantech, Dynamics and Precision Therapeutics.
REAL ESTATE DEVELOPMENT & FINANCEIn 2011, RIDC continued to rationalize its portfolio of properties to fill our role of advancing projects in the pubic interest, and ensuring the region has the supply of real estate it needs to capture new and expanding business opportunities. We con-tinue to see successes flourish based on dollars invested in new sites in conjunction with grant awards through the Commonwealth to assist with the recreation of critical job centers.
As 2012 takes shape, we at RIDC look forward to continued growth in our region’s economy, and working together with partners like the Allegheny Conference, the Pittsburgh Technology Council and all of our municipal partners to build on the region’s strong economic performance.
Thank you for your interest in RIDC.
Donald F. Smith, Jr., President, RIDC
LETTER FROM THE PRESIDENT
2011 PROJECT HIGHLIGHTS
• Assumed operations of the 2.8 million square-foot former Sony production plant in Westmoreland County, in partnership with the Westmoreland County Industrial Development Authority. This partnership will transform the facility into a multi-tenant manufacturing and distribution center, restore jobs and revitalize West-moreland and surrounding counties.
• Planning process began in Hazelwood for the Almono Partnership with an updated master plan for the LTV Coke Works site. The 178-acre urban brownfield has a fresh vision, emphasizing a practical approach to environmentally sustainable, economi-cally vibrant urban redevelopment.
• Additional brownfield revitalization in the Mon Valley with new site development in McKeesport and Duquesne, in addition to the complete retrofitting of 300,000 square feet of high bay industrial space at Keystone Commons.
Regional Industrial Development Corporation of Southwestern Pennsylvania 5
PROGRESS THROUGH COLLABORATION The year 2011 marked an exciting time to be a part of the RIDC mission. Through targeted de-velopment, collaboration and commitment, RIDC continues to make an impact in the growth of our region’s economy.
Continuing its commitment to the region, RIDC has undertaken new redevelopment projects at the former Sony plant in Westmoreland County and the former LTV site in the Hazelwood neigh-borhood of the City of Pittsburgh. These projects further demonstrate the need for an organization like RIDC that is able to move these large, com-plex and financially challenging developments forward to further the region’s economy. These sites will become multi-tenant facilities and will create many jobs, leaving our region less vulner-able to the whims of an individual company. The projects of RIDC continue to make our economy stronger, more diversified and ready to meet the needs of tomorrow’s economy.
The year also saw exciting development in RIDC’s brownfield sites, including site preparation in Duquesne and McKeesport, updates to the East Shop facility in the former Westinghouse facility known today as Keystone Commons, as well as construction of a new facility in Duquesne.
All of these results were achieved while RIDC maintained a financially sound organization that pays nearly $4 million annually in real es-tate taxes and receives no operating support from the government.
It has been truly gratifying to see the close work-ing relationships between RIDC and the counties, the Allegheny Conference on Community Devel-opment, the universities and leading economic development organizations. This collaborative approach has made the efforts of RIDC and these other institutions possible and more successful.
We are also happy to welcome new board members to RIDC who bring a diverse set of ex-pertise to the table. With a strong board that is committed to the region, RIDC will continue to work toward an aggressive development agen-da to help grow the region and create quality jobs for our residents.
G. Reynolds Clark, Chairman, RIDC
LETTER FROM THE CHAIRMAN
Regional Industrial Development Corporation of Southwestern Pennsylvania6
Mark Aloe, Managing Member, Aloe Brothers, LLC
Coleman J. Benedict, Executive Vice President, WCB Properties, Inc.
Charles T. Blocksidge, PhD, Executive Director, Local, County & State Government Relations & Special Projects, Community College of Allegheny County
Linda McKenna Boxx, Chairman, Katherine Mabis McKenna Foundation, Inc.
Sara Davis Buss, Esquire, Campbell & Levine, LLC
Eric Cartwright, Vice President, UPMC Corporate Construction and Real Estate
G. Reynolds Clark, Vice Chancellor, Community Initiatives, Chief of Staff, University of Pittsburgh
Honorable Rich Fitzgerald, County Executive, County of Allegheny
Steven J. Guy, President and Chief Executive Officer, Oxford Development Company
Michael J. Hannon, Executive V.P./Chief Credit Officer, PNC Bank
Scott D. Izzo, Director, Richard King Mellon Foundation
Dennis M. Joyce, Managing Director, Bank of New York Mellon Corporation
Dr. Mark Kamlet, Executive Vice President and Provost, Carnegie Mellon University
Mark Jay Kurtzrock, President and CEO, Metis Secure Solutions
Louis V. Oliva, CCIM, SIOR, Executive Vice President, Grubb & Ellis
Robert B. Pease, Senior Vice President, National Development Corporation
Honorable Luke Ravenstahl, Mayor, City of Pittsburgh
J. William Richardson, Forterra Real Estate Advisors I, LLC
Lourdes Sanchez Ridge, Esquire, Thorp Reed & Armstrong, LLP
Honorable Rodney D. Ruddock, Chairman, Board of Commissioners, Indiana County
Audrey Russo, President and Chief Executive Officer, Pittsburgh Technology Council
Lisa Schroeder, Executive Director, Riverlife
Darrell E. Smalley, CMI Principal, Ernst & Young, LLP
Samuel J. Stephenson, Partner, ParenteBeard, LLC
Honorable Daniel J. Vogler, Chairman, Lawrence County Board of Commissioners
Dennis Yablonsky, Chief Executive Officer, Allegheny Conference on Community Development
RIDC BOARD OF DIRECTORS
The mission of the Regional Industrial Development Corporation of Southwestern Pennsylvania is to catalyze and support economic growth and high quality job creation through real estate development and finance of projects that advance the public interest.
Through public, private, and institutional partnerships, RIDC devel-ops real estate to ensure the region can capture emerging and exist-ing growth opportunities across diverse industry sectors.
Regional Industrial Development Corporation of Southwestern Pennsylvania 7
G. Reynolds Clark, Jr., Chairman
Dennis M. Joyce, Vice Chairman
Donald F. Smith, Jr., President
William C. Kirk, Jr., Vice President, Real Estate Operations
David P. Myron, CPA, Vice President and Treasurer
Colleen B. Poremski, Corporate Secretary
Marcia L. Grimes, Esquire, Assistant Secretary
Timothy F. White, Assistant Vice President, Development
OUR MISSON
RIDC OFFICERS
8 Regional Industrial Development Corporation of Southwestern Pennsylvania
SERVICES WE PROVIDERIDC provides a dynamic, regional approach to economic development, particularly directed towards manufacturing, assembly, distribution, and research & development activities. To stimulate this effort, RIDC works closely with entrepreneurs and businesses.
DEVELOPMENT SERVICESRIDC utilizes a comprehensive approach to coordinate a development project from conceptual design through completion and occupancy. To the extent that its direct involvement is appropriate, RIDC also offers effective property management. RIDC can provide build-to-suit development services for any variety of projects from the traditional office and industrial developments, to lab and R&D design. These development services are not limited to RIDC owned property; we will help you develop your project wherever you are looking to locate.
FINANCIAL ASSISTANCE SERVICESA wide range of RIDC services are designed to accommodate the varied needs of a modern-day business, including assistance with machinery and equipment financing needed to stimulate growth. Special emphasis is placed upon new, small and growing business enterprises, as well as the encouragement of applied research and development activities and partnership with our regions leading academic institutions.
FOREIGN TRADE ZONERIDC was granted the charter of administering FTZ #33 in Southwestern Pennsylvania in 1977. FTZ #33 is comprised of 17 general-purpose zone sites stretching throughout Southwestern Pennsylvania, including sites in Allegheny, Westmoreland, Lawrence, and Beaver Counties as well as parts of the City of Pittsburgh. FTZ #33 consists of more than 6,500 acres. Many of the FTZ #33 designated sites are located on strategic riverfront properties. FTZ #33 has aided in attracting additional jobs and businesses to the region, as well as supporting existing industries.
RIDC PROVIDES A REGIONAL APPROACH TO ECONOMIC DEVELOPMENT
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Rices Landing
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Regional Industrial Development Corporation of Southwestern Pennsylvania 9
1 RIDC Neshannock Business Park Neshannock Township, PA
2 RIDC Industrial Park - O’Hara O’Hara Township, PA
3 RIDC Thorn Hill Cranberry & Marshall Townships, PA
4 RIDC Innovation Ridge Marshall Township, PA
5 RIDC Park West Findlay & North Fayette Townships, PA
6 RIDC Keystone Commons East Pittsburgh & Turtle Creek, PA
7 RIDC Industrial Center of McKeesport McKeesport, PA
8 RIDC City Center of Duquesne Duquesne, PA
9 RIDC Lawrenceville Technology Center City of Pittsburgh (Lawrenceville)
10 RIDC Westmoreland East Huntington Township, PA
11 Almono City of Pittsburgh (Hazelwood)
RIDC NOW OPERATES 11 INDUSTRIAL PARKS THROUGHOUT SOUTHWESTERN PENNSYLVANIA
Regional Industrial Development Corporation of Southwestern Pennsylvania10
2011 BROUGHT RENEWED FOCUS ON THE RIDC MISSION TO ASSIST NEW GROWTH IN THE REGION
DEVELOPMENT 1 Harmar Manor, a 111,000 square-foot light industrial
building located along Route 28, was sold to a Carn-egie Mellon spinout, Dynamics for $2.5 million. This firm needed a stand alone structure to manufacture their credit card security technology and double their staff to 60 by the end of 2011.
2 The Penn Garrison apartments in downtown Pitts-burgh were sold to PMC Property Group, Inc., a private developer focused on residential, for $13.25 million. The Penn Garrison was formerly GNC’s cor-porate headquarters, which RIDC acquired to facili-tate the retention of the firm in Pittsburgh. The Penn Garrison was the first major redevelopment in the Cultural District and was executed by RIDC to stimu-late the market for downtown living. View from the deck of the Penn Garrison
LEASING
Top New Leases
Company Park Square Feet
Walt Disney Imagineering Research & Development
Collaborative Innovation Center 18,498
Advantech, US, Inc. RIDC Park West 21,709
McConway & Torley RIDC Lawrenceville Technology Center 3,879
Holtec International RIDC Keystone Commons 3,200
Huckestein Mechanical Services RIDC City Center of Duquesne 7,514
American Stress Technologies RIDC Industrial Park - O'Hara 5,000
Top Expansion Leases
Company Park New Square Feet
Seegrid Corporation RIDC Park West 10,050
Dymax Corporation RIDC Thorn Hill 5,025
Magnetek Drives & Systems RIDC Industrial Park - O’Hara 2,500
Regional Industrial Development Corporation of Southwestern Pennsylvania 11
FINANCING
Foreign Trade Zone #33 Remapping Approved
In September 2011 RIDC submitted an application for expansion and reorganization of Foreign Trade Zone #33. The changes involved:
• removing acreage where companies no longer wished to remain in the zone
• transferring acreage within industrial parks to better sites
• correcting acreage discrepancy
• adding RIDC Westmoreland
With the proposed changes in the zone, RIDC currently has 7,168 acres in the general purpose zone and antici-pates, with the various subtractions and additions, the zone will contain 7,393 once the expansion and reorgani-zation application is approved.
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Jenkintown
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Collegeville
Shillington
Sharpsville
Telford
Brookville
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Oxford
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Mount Union
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Barnesboro
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Millersburg
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Pine Grove HamburgCoopersburg
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Port Allegany Mansfield
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Port Matilda
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Callensburg
Clintonville
Bernville
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Summerville
Strausstown
Pillow
Herndon
Millheim
JamestownSheakleyville
Snow Shoe Howard
New Berlin
New Ringgold
Cooperstown
Loganton
Conneautville
Townville
Driftwood
Turbotville
Tidioute
Millville
Spartansburg
BentonShickshinny
Portland
Clarendon
McKean
NuangolaPenn Lake Park
Austin
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Eagles Mere
Lewis Run
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West Chester
Butler
Darby
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Hermitage
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Lansdale
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Sunbury
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Kingston
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Woodlyn
Bethel Park
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P e n n s y l v a n i aState CapitalsCounty Seat
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Eight RIDC sites in the FTZ #33 including the newly approved RIDC Westmoreland
BROWNFIELD REDEVELOPMENT The redevelopment of Keystone Commons, the former Westinghouse Electric Plant, continued with updates to a building known as the East Shop. Demolition and abatement occurred on sev-eral structures, an office building and mezzanine. The resulting building contains approximately 300,000 square feet of high bay industrial space. New insulated siding was added in 2011 and a new roof is 75% complete. The East Shop will be ready for occupancy in the Summer of 2012.
New siding on the East Stop in Keystone Commons Inside of the East Shop to be ready in Summer 2012
Building Park Financing Source
East Shop RIDC Keystone Commons $2,250,000 PIDA
East Shop RIDC Keystone Commons $1,406,250 Building PA
Findlay Center RIDC Park West $1,800,000 PIDA
Harmar Manor Individual Property $1,800,072 PIDA
RIDC accessed a total of $7,256,322 to provide financial assistance to development projects this year. The Pennsylvania Industrial Development Authority (PIDA) provided three loans, while Build-ing PA provided one loan.
RIDC Industrial Park in O’Hara Township was once the site of Allegheny County Workhouse Farm; a 700-acre farm that opened in 1866 and was run by prisoners of the Allegheny County Workhouse. In 1963, the RIDC which was still in its infancy, struck an agreement with Allegheny County to develop the farm property. Development standards were set in place to establish and maintain a level of quality for each project.
In 1965, the first RIDC industrial projects were un-derway. Access roads and utilities were installed and Globe Ticket Company, Clinical Products and Goerz Optical Company were under construction. At the same time, RIDC was designing their first multi-occupancy building, Townhouses for Indus-try, for small companies “on the grow”, giving them a front door and short-term lease space.
By 1966, American Roller Bearing Company, Westinghouse Electric Corporation, Thrift Drug Company of America, Saurereisen Cements Company and Republic Rubber Company had made plans to locate in the park. The infrastruc-ture system continued to open more acres for ad-ditional development opportunities.
The Allegheny Valley Expressway (Route 28) and RIDC interchange through the park was complet-ed in 1970. The roadway eased access to down-town Pittsburgh and Oakland.
Today, the park is 100% developed and remains a prime real estate location in the competitive North Eastern Pittsburgh submarket. It is the larg-est industrial park in the region, housing over 3.75 million square feet of office, industrial, manufac-turing and warehouse space. There are over 130 companies that are located with in the park.
Townhouses For Industry
PROJECT HISTORY
Regional Industrial Development Corporation of Southwestern Pennsylvania12
NEW GROWTHSeveral capital improvements were made throughout the park, including a parking lot expansion at the Townhouses for Industry and restoration at Alpha Manor 2.
The last RIDC-owned land parcel was sold to ABARTA for the expansion of their office. The former bank building was sold to Chip Ganassi Racing for a new headquarters building.
Expanded leases in the Townhouses for In-dustry included American Stress Technologies and Magnetek.
RIDC INDUSTRIAL PARK O’HARA TOWNSHIP, PA
In 1968, RIDC began discussions with Allegheny County to develop the 723-acre Thorn Hill Youth Development Center in Marshall and Cranberry Townships. Development of access roads and utilities started in late 1969, and in 1971 the United States Post Office started plans for a Bulk Mail facility on 75 acres of the park. The facility, which was projected to employ 1,000 was completed four years later. In 1973, RIDC received a commitment from the Society of Automotive Engineers (SAE) to relocate their headquarters from New York City to the park, where they are located to this day. In 1984, RIDC Thorn Hill was expanded to its present day total of 925 acres with the acquisition of the remaining acres of the Youth Development Center property.
With its convenient location at the intersection of Interstates 79 and 76 (PA Turnpike) as well as its access to Route 19 and Route 228, RIDC Thorn Hill grew quickly and remains a highly demanded location for businesses today.
RIDC owns three buildings in RIDC Thorn Hill Industrial Park: two multi-occupancy flex buildings and one single ten-ant headquarters office building - all three totalling 174,000 square feet.
Today, RIDC Thorn Hill is the largest industrial park in acreage in Southwestern Pennsylvania. There are over 100 acres avail-able for development in parcels ranging in size from 4 to 26 acres. It is home to approximately 80 companies.
Thorn Hill Corporate Center
Entrance to RIDC Thorn Hill - Pre Development
PROJECT HISTORY
Current
Regional Industrial Development Corporation of Southwestern Pennsylvania 13
NEW GROWTHRIDC signed a joint development agree-ment with Elmhurst Corporation to con-struct a new multi-tenant flex building. The building should be ready for occu-pancy in 2012.
After considerable effort, RIDC received approvals for the park-wide stormwater management plan allowing for additional development to progress more quickly.
RIDC THORN HILL INDUSTRIAL PARK CRANBERRY AND MARSHALL TOWNSHIPS, PA
PROJECT HISTORYIn 1976, RIDC began planning its third indus-trial park which was named RIDC Park West. The original 340 acres was purchased from Westinghouse Electric Corporation. The park is located between two municipalities - Findlay and North Fayette Townships. Road and util-ity work was completed in 1979 and develop-ment began. Some of the original businesses who located in the park were Computer Trans-port, Beckman Instruments, Inc., Eickhoff Inc., and National Draeger, Inc.
RIDC Park West has attracted many high profile companies including Dick’s Sporting Goods, US Airways and Eaton Electrical. RIDC constructed and owns four multi-occupancy flex buildings in the park, which are located within the Foreign Trade Zone #33 and total 173,000 square feet.
RIDC Park West - Early Stages of Infrastructure Development
The park is ideally located in close proximity to the Pittsburgh International Airport along Inter-state 376, making it a prime real estate location. Development of the park continues today as there are currently 66 acres remaining for de-velopment. RIDC Park West now consists of 500 acres and is home to approximately 50 compa-nies, employing approximately 4,200 people.
NEW GROWTHSeegrid, the robotic tug manufacturer, expanded and now occupies the entire 40,000 square feet of the FTZ building.
Advantech leased 21,709 square feet of Findlay Center and built out advanced clean rooms.
Findlay Center
Regional Industrial Development Corporation of Southwestern Pennsylvania14
RIDC PARK WEST FINDLAY & NORTH FAYETTE TOWNSHIPS, PA
PROJECT HISTORY
Regional Industrial Development Corporation of Southwestern Pennsylvania 15
NEW GROWTHIn addition to the East Shop rehabilitation the abatement of the G Building (shown left) commenced.
New leases in the park include:
• Zoresco - 32,700 Square Feet
• SDC Nutrition - 5,120 Square Feet
• Cummins Allison - 2,560 Square Feet
• Eastern Area Adult - 4,288 Square Feet
• Holtec - 3,200 Square Feet
RIDC began discussions with Westinghouse in 1986 to purchase the Westinghouse Electric Corporation’s East Pittsburgh site. Originally, Westinghouse proposed a lease back of the 1.2 million square-foot LRA (Large Rotating Appa-ratus Division) as RIDC rehabilitated the other 3 million square feet on the rest of the site. De-spite numerous and costly challenges associ-ated with the site, RIDC officially acquired the site on January 1, 1989.
RIDC’s ultimate goal for the site was to provide economic growth to the region by redevelop-ing a world class industrial facility. Rehabilitation of the property, now renamed Keystone Com-mons, was focused on specific buildings and the conversion of the overall complex into a multi-use urban industrial center. The site includes a number of multi-occupancy buildings owned and managed by RIDC for the benefit of both large and small industrial companies, as well as free-standing buildings for lease to specific industrial users seeking a good business environment.
RIDC continues to renovate buildings at Key-stone Commons. For example, the East Shop, a 539,000 SF high bay industrial building, is currently under renovations with a 2012 deliv-ery date. RIDC Keystone Commons houses 41 companies that employ approximately 1,300 people. There are 2.25 million square feet of industrial, warehouse, manufacturing and office space at the site today.
KEYSTONE COMMONS EAST PITTSBURGH AND TURTLE CREEK, PA
West Shop Industrial Mall after rehabilitation
Before
NEW GROWTHRIDC continued site preparation of 51 acres of remain-ing structures and removed some subsurface elements to ready the site for future development.
Durabond, a pipe coatings manufacturer, aquired 29.93 acres and is building a new 80,000 square-foot plant which will require 100 new employees.
The City Center of Duquesne was once home to the Duquesne Steel Works. Located along the Monongahela River, south east of Pittsburgh, the plant opened in 1886. In 1890, it was acquired by Andrew Carnegie and then by U.S. Steel in 1901. During peak production in 1948, Duquesne Steel Works employed over 8,000 people and operated six blast furnaces. The plant was in service until 1984.
Allegheny County took control of the site in 1987. RIDC was asked to acquire and redevelop the 240-acre site at Duquesne in conjunction with the McKeesport Area Recovery Plan.
RIDC embarked on redeveloping this site when the adaptation of existing industrial sites was not common. The framework RIDC developed for tackling this site led to new state legislation. In 1989, bids began for the remediation and de-molition of existing structures, while selective de-molition and phased environmental remediation started in 1990. RIDC designed and constructed new on-site access roads and utility networks to
service parcels cleared for development as well as for existing buildings that were being retained and rehabilitated.
RIDC has renovated five existing buildings into multi-tenant facilities; Business Innovation Center, Duquesne Industrial Manor One, Roll Shop, Brick Shed, and the Stores Building. RIDC also con-structed one flex building: Linden Square.
Several additional facilities have been construct-ed filling up over 60% of the site. Today, RIDC City Center of Duquesne is home to fourteen compa-nies, employing approximately 500 people.
Duquesne Industrial Manor - Under Renovation Duquesne Industrial Manor - Today
PROJECT HISTORY
Regional Industrial Development Corporation of Southwestern Pennsylvania16
CITY CENTER OF DUQUESNE DUQUESNE, PA
PROJECT HISTORY
Regional Industrial Development Corporation of Southwestern Pennsylvania 17
INDUSTRIAL CENTER OF McKEESPORTMcKEESPORT, PA
NEW GROWTHWith the support of state, county and city officials, the new flyover ramp was completed, making the Industrial Center of McKeesport site more accessible and ready for continued redevelopment.
In 1989, RIDC sought bids for remediation and demo-lition of the McKeesport site. Working closely with the Commonwealth of Pennsylvania, RIDC began work. The redevelopment of this site spurred the passing of new legislation for industrial site remediation.
Starting in 1990, phased plans for environmental re-mediation, selective demolition and sale of miscel-laneous scrap were undertaken. Upon completion of each phase, RIDC designed and constructed new on-site access road systems and utility networks to service sites cleared for development as well as the existing buildings that were being retained and re-habilitated. RIDC has renovated and converted four existing buildings into multi-tenant facilities: McK-eesport Commons, McKeesport Manor Two, Roll Shop and Brick Shed - and has constructed two new multi-tenant facilities: McKeesport Manor One and McKeesport Manor Three. RIDC Industrial Center of McKeesport is a 133-acre industrial park home to five companies, employing approximately 200 people. RIDC owns eight buildings totaling over 733,000 square feet.
Roll Shop
The Industrial Center of McKeesport was once home to several metal tube and pipe mill companies. The first company was in-corporated in 1869 and production started three years later, making it one of the first original steel mills along the Monongahela River. In 1901, U.S. Steel purchased the site and the ten resident companies.
U.S. Steel slowly phased out operations throughout the 1980s, and they ceased com-pletely in 1986. Two years prior, RIDC started working with the McKeesport Area Recovery Plan on a strategy for the distressed urban communities in the Mon Valley. RIDC was in-formed that the “hot end” of the National Works site in McKeesport was going to be removed by U.S. Steel and that there was po-tential for development of the site.
In 1987 the USX Duquesne Works site was in-cluded in the redevelopment plan along with the McKeesport National Works site. In 1988, it was agreed upon that both of the USX sites would be sold to RIDC for redevelopment.
PROJECT HISTORY
In the late 1990’s, the Pittsburgh Regional Alliance was recommending to the region’s development firms to create more pad-ready industrial sites in order to make the region more marketable for build-to-suit or development-ready opportuni-ties. It was around the same time that RIDC was in talks with Greene County in regards to Meadow Ridge Business Park, constructing Pullman Plaza in Butler and West Hills Commons in Armstrong County. Until this time, RIDC was largely focused on Allegheny County, however with these acquisi-tions, RIDC became truly regional.
In 1999, RIDC purchased 74 acres of land from First Western Bancorp, Inc. in Neshannock Town-ship, Lawrence County. In 2003, Becan Develop-ment, LLC purchased 7.72 acres for construction of a 40,000 SF office/warehouse building. They in turn leased it to Valley Drug Company who has
since moved and it is now leased to Axiom Bat-tery. In 2004, DPM Land Company purchased 4.0 acres to construct a 10,000 square-foot manu-facturing/office building for Velocity Magnetics, a designer and manufacturer of braking systems for amusement park rides. In 2005, Measel/Bruce, Inc. purchased 11.55 acres to develop the park’s first multi-occupancy building.
The park currently has 6 parcels left for develop-ment ranging in size from 4 to 20 acres.
Regional Industrial Development Corporation of Southwestern Pennsylvania18
RIDC NESHANNOCK NESHANNOCK TOWNSHIP, PA
Aerial image of the park before Dallas Hartman’s new building
NEW GROWTHDallas Hartman, a law firm with offices in Western Pennsylvania and Northeast Ohio, completed a new building at the Neshannock Business Park. The site, which was previously owned by Joseph Giordano, is now home to Dallas Hartman’s main office building.
PROJECT HISTORY
In 1996, RIDC purchased the Geoffrey Boehm Chocolates building with the intention of keeping the company up and running. Two years later, Geoffrey Boehm sold its business to Boyer Candy Company based in Altoona, Pennsylvania. Boyer left the building 6 months later.
In 2002, RIDC purchased the 14-acre, former Heppenstall Steel Company site. The acquisition of this property created the RIDC Lawrenceville Technology Center, which would be an “urban technology park”.
RIDC received $4 million in BIOS (Businesses In Our Sites) funds for the development of the Lawrenceville Technology Center. RIDC developed the area to attract small and mid-size growth companies in the areas of research and design, as well as manufacturing and engineering. The money was used for demolition, construction, environmental cleanup and road development at the site.
The former Geoffrey Boehm Chocolates building was reno-vated into a multi occupancy, office/high tech manufactur-ing facility. Now known as the Chocolate Factory, the 71,000 square-foot building is home to some of Pittsburgh’s fast-est growing firms such as RedZone Robotics, nanoGriptech, Everpower Wind Holdings and Precision Therapeutics.
To date, all structures scheduled for demolition have been environmentally remediated and razed. Their foundations have been excavated, crushed and compacted on-site. The site now consists of two pad ready parcels: one of 7 acres and one of 4 acres. The third parcel contains approximately 3 acres and a 30,000 square-foot heavy manufacturing build-ing, the former Heppenstall Building.
Heppenstall Building
Aerial view of Lawrenceville showing its proxmity to downtown
Regional Industrial Development Corporation of Southwestern Pennsylvania 19
RIDC LAWRENCEVILLE TECHNOLOGY CENTER CITY OF PITTSBURGH (LAWRENCEVILLE)
NEW GROWTHRIDC continued site planning in Lawrenceville in coordination with the City’s Green Boule-vard initiative.
The Chocolate Factory added two new tenants: McConway Torley and Nanogrip Technologies. McConway Torley is the oldest and largest re-maining foundry in Pittsburgh with operations in Lawrenceville. Nanogrip Technologies, a Carn-egie Mellon spinout, has developed a new poly-mer to improve adhesives.
The Chocolate Factory on 43rd Street
LTV Steel Hazelwood Site Pre-Demolition
PROJECT HISTORY
Barge Docks on site
In 2002, four southwestern Pennsylvania foundations formed a limited partnership with RIDC, a non-profit private development organization, as general partner, and purchased the 178-acre LTV Steel Hazelwood site. The partnership, which includes the Claude Worthing-ton Benedum Foundation, Heinz Endowments, McCune Foundation, and the Richard King Mellon Foundation, was convinced that this remarkable riverfront plateau of-fered a rare opportunity to set a new standard for urban riverfront property development.
The Vision Plan, developed with the input of a range of stakeholders including representatives from the com-munity, is a vision for a master-planned development that maximizes local and regional impact, as well as employs development and economic “Best Practices” from across the globe. Environmental sustainability, in-cluding alternate sources of energy, storm and waste water management and transportation innovation are key components of the plan. The ownership’s ability to be patient in terms of financial return supports the core development of avoiding piecemeal, uncoordinated, or disconnected development.
This prominent Monongahela River site is poised to re-enter the market, connect with regional economic hubs, share the mile-and-a-half of shoreline with the commu-nity, and become an instigator of growth, renewal, and progress in Pittsburgh.
Regional Industrial Development Corporation of Southwestern Pennsylvania20
ALMONO CITY OF PITTSBURGH (HAZELWOOD)
NEW GROWTHAfter a long community outreach period and engagement with several stake-holders, the Vision Plan was approved. This plan has been shared publicly and the key elements are now available online at almono.org. Following the completion of the Vision Plan, the zoning process for a Special Planning “SP” district was initiated and engineering firms were selected to perform site planning and traffic studies. There continue to be several Carnegie Mellon robotic research projects onsite relating to autonomous vehicles.
PROJECT HISTORY
Innovation Ridge is a 223-acre advanced technology and office park located in Marshall Township, Allegheny Coun-ty, abutting Cranberry Township, the second fastest grow-ing area in the Commonwealth. The park started as the Tech 21 Business Park in 1997. The original intent was to create a business park with “shovel ready” sites marketed towards advanced technology companies and corporate headquarters facilities. By doing so, the goal was to attract new technology oriented business to the area and to re-tain young people with the skills and education to succeed in the technology sector of the economy. However, origi-nal investors were unable to see their vision through, and in 2010, RIDC completed the acquisition of the property. RIDC shares the same goals of the project as the original investors: job creation and retention.
The design of the park was to reflect significant attention to the environment. Of the total acreage, almost 50% has been set aside for primary conservation areas, forested and landscaped buffer zones, and various open spaces. In ad-dition, the design includes a state-of-the-art grading plan that will preserve wetlands and slopes.
Medrad Inc., located their world headquarters in the park in 2007. Their 125,000 square-foot headquarters facility is home to over 400 employees.
Currently, there is one parcel of land that is reserved for a residential development on the north end of the site.
Build-to-suit opportunities and pad ready sites are being offered as part of the project. The park currently has 10 parcels available for office development.
Regional Industrial Development Corporation of Southwestern Pennsylvania 21
RIDC INNOVATION RIDGE MARSHALL TOWNSHIP, PA
Aerial photograph of RIDC Innovation Ridge NEW GROWTHRIDC began the redesign and awarding of improvements to the trail system in coordination with Marshall Township.
Medrad headquarters
PROJECT HISTORY
In 1969, on over 1,200 acres adjacent to Route 119 near Interstate 70 and the New Stanton exit of the Pennsyl-vania Turnpike, Chrysler built the shell of a plant, but never completed the building. However, in 1976, with nearly $100 million in government assistance, highway and rail improvements, and a property-tax exemp-tion for the nation’s first foreign-owned auto assembly plant, Volkswagen moved in and invested over $250 million into the building to manufacture its diesel-powered Rabbit.
During its twenty-two year stay at the plant, Volkwagon produced the Rabbit, the Golf and the Jetta. On July 14, 1988, the last Volkswagen rolled out of the plant.
Sony began leasing the plant in 1990 to accommo-date its cathode ray tube manufacturing operations for television and display terminals. By the late 1990’s, Sony employed more than 3,000 at the manufacturing facility. However, by 2007, Sony had announced they
would be moving some of the manufacturing jobs to Mexico, therefore cutting employment to 1,500. In late 2008, due to global restructuring of the corporation, Sony announced the phasing out and subsequent clo-sure of the facility which took place in 2010.
The Partnership Agreement with the Pennsylvania In-dustrial Development Authority (PIDA) acquired the site and approached RIDC to do a comprehensive analysis of the development potential of the 400 acres. The plan is to convert it into a multi-tenant facility simi-lar to the RIDC Keystone Commons in East Pittsburgh.
The site consists of approximately 2.8 million square-feet of building space with a central utilities plant, wastewater treatment facility, direct railroad access and superb connections to the State highway system. Currently, 20% of the building is used by companies that intend to remain as part of the master planned development.
Standard Office Space - Administration Building Solar Power Industries
Regional Industrial Development Corporation of Southwestern Pennsylvania22
RIDC WESTMORELAND EAST HUNTINGTON TOWNSHIP, PA
NEW GROWTHThe RIDC property management team enacted site opera-tional efficiency plan reducing operational costs by 50%.
A partnership was formed with Westmoreland County In-dustrial Development Corporation for the long-term man-agement of the site.
Overflow expansion for Leedsworld was accommodated so an additional production line could be added in the firm’s New Kennsington location.
Westmoreland County Community College committed to lease a 70,000 square-foot suite to develop a technical training center onsite.
NEW GROWTHThe success of attracting large corporate research centers continues at the Collaborative Innovation Center in Oakland with the expansion of Disney to 18,498 square-feet.
Collaborative Innovation Center on the campus of Carnegie Mellon University
West Hills Commons Kittanning, PA
Beaver Industrial Manor Hopewell Township, PA
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Collaborative Innovation Center
Regional Industrial Development Corporation of Southwestern Pennsylvania 23
INDIVIDUAL PROPERTIES
210 Sixth Avenue
Suite 3620
Pittsburgh, PA 15222
www.ridc.org
412.471.3939