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REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTHWESTERN PENNSYLVANIA

YEAR IN REVIEW 2012


LETTER FROM THE PRESIDENT 2012 was an important year for RIDC – rebalancing our portfolio, bringing on new staff members and refining our strategic focus to help us execute some of the largest development projects in the region. RIDC is making these changes to fulfill our mission of enabling high-quality job creation and tax base enhancement in the Pittsburgh region, and ensuring that RIDC will be a key player in Pittsburgh’s next wave of growth, as it has been for the past 57 years. RIDC has been shedding non-strategic assets that no longer meet our mission. We are focusing our efforts on a new and ambitious era of development which includes: redeveloping the two-million plus square foot RIDC Westmoreland facility into a multi-tenant facility; establishing the Almono site in Hazelwood, the largest urban brownfield, as a new riverfront community; developing Innovation Ridge in Marshall Township for high-tech companies; and continuing to redevelop the Mon Valley to restore manufacturing jobs in those communities. With our past and current work, RIDC has become the premier brownfield redevelopment entity in the region, enabling Pittsburgh to return investment and jobs to communities that have experienced the largest employment losses. Our strong relationships with municipal, county, and state partners enable us to redevelop these properties and meet the needs of a growing economy. As the economy improves, we are seeing tenants and companies starting to expand again with an 11 percent increase in employment in our tenants’ facilities from last year. Many of our tenant companies are growing in the technology fields that are the underpinning of Pittsburgh’s revitalization – Aquion Energy, Dynamics, Seegrid, and Precision Therapeutics are just a few examples. RIDC continues its long-standing focus on assisting these types of companies and others by providing the real estate options they need to grow their businesses.

Donald F. Smith, Jr., PhD President

RIDC Management Team Donald F. Smith, Jr., PhD, President Ronald Coombs, Chief Financial Officer William Kirk, Jr., Vice President, Real Estate Operations Timothy White, Vice President, Development Colleen Poremski, Corporate Secretary 2

LETTER FROM THE BOARD CHAIR

BOARD OF DIRECTORS

RIDC is an organization with a strong past and a promising future. RIDC has been helping to create jobs in Pittsburgh since we formed in the 1950s, and we are now retooling for the next wave of this region’s growth. During 2012, RIDC focused on improving our financial position and adding new expertise to our staff to put our organization in a better position to aid in Pittsburgh’s resurgence.

Mark Aloe, Managing Member, Aloe Brothers LLC

RIDC’s contributions to the region’s economy over the years have often been understated, but our efforts have been critical for companies adding jobs in the region. An example is RIDC’s sale this year of a property to Tsudis Chocolate, a regional success story, which had been leasing the facility. While this looks like a simple transaction, the story behind the company and their growth in Pittsburgh demonstrates the critical role that RIDC plays in the region’s growth. In the mid 1980s, RIDC intervened to buy a property to help retain the Clark Candy Company in the region. Several years later, they moved out of the region and RIDC began working with a local company, Tsudis Chocolate, to move into the building and grow their jobs and investment in the community. In order to help the new company, who had 35 employees at the time, RIDC worked to offer them low rental rates. Over the years, Tsudis continued to grow, employing over 200 full-time workers and expanding production to include chocolates and nutrition products. In 2012, after RIDC’s investment of over 25 years, Tsudis purchased the building in order to further their thriving business – continuing their expansion and hiring more workers. The Tsudis story is just one example of how RIDC supports regional job growth through a long-term, patient and flexible approach to real estate. And with our renewed focus and smarter position, RIDC is ready to continue to support Pittsburgh’s growth well into the future.

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 The Honorable Rich Fitzgerald, County Chief Executive, County of Allegheny Steven J. Guy, President and Chief Executive Officer, Oxford Development Company Michael J. Hannon, Executive Vice President/Chief Credit Officer, PNC Bank Scott D. Izzo, Director, Richard King Mellon Foundation Dennis M. Joyce, Managing Director, The Bank of New York Mellon Corporation Mark Kamlet, PhD, Executive Vice President and Provost, Carnegie Mellon University Mark Jay Kurtzrock, President and CEO, Metis Secure Solutions Louis V. Oliva, CCIM, SIOR, Executive Managing Director, Newmark Grubb Knight Frank Robert B. Pease, National Development Corporation The Honorable Luke Ravenstahl, Mayor, City of Pittsburgh J. William Richardson, Retired, Chief Financial Officer Lourdes Sanchez Ridge, Esquire, Thorp Reed & Armstrong, LLP The 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, Principal, State and Local Tax, Ernst & Young LLP Samuel J. Stephenson, Partner, ParenteBeard, LLC The Honorable Daniel J. Vogler, Chairman, Lawrence County Board of Commissioners

G. Reynolds Clark Board Chair

Dennis Yablonsky, Chief Executive Officer, Allegheny Conference on Community Development 3


2012 RIDC OVERVIEW

RIDC BY THE NUMBERS $12,803,005

capital investment

$13,400,000

new financing

19 leases

number of new or expansion leases

429,433 SF

square feet of new and expansion leases

3,483 acres

total acreage developed to date

24 acres 1,380

acres

$4,023,135

acreage sold in 2012 current acreage owned real estate taxes paid

In RIDC facilities: 52 buildings 7,403,269 SF 103 companies 5,825 jobs

buildings owned total square feet owned companies in RIDC facilities jobs in tenant facilities

In 2012, RIDC continued to sponsor financing packages for companies growing in our region. RIDC undertook major capital investments, especially in brownfield projects and had a successful year in sales and leasing, helping the organization to better focus efforts on a new era of development.

REDEVELOPMENT & SITE PREP Keystone Commons

RIDC undertook an additional investment in the Keystone Commons manufacturing facility in 2012. The high-bay East Shop rehabilitation was completed with state support, providing the 300,000 square-foot facility with new siding and gutters, a new roof, interior painting, and remeditation. In addition, RIDC completed the total restoration of Portal 5 to support manufacturing operations. The project – which included replacing the asphalt paving with heavy-duty concrete, widening the entrance, and improving stormwater infrastructure – allows vehicles to deliver raw materials and goods and exit with large, highly-specialized finished products.

Duquesne & McKeesport Land Prep

With state and federal assistance, RIDC began a large investment on the continued site preparation at the City Center of Duquesne, removing foundations, filling holes, and grassing the newly prepared areas. RIDC also completed site preparation in the Industrial Center of McKeesport paving the way for new manufacturing facilities.

Wetlands, Stormwater & Trail in Marshall Township

In mid 2012, RIDC undertook wetland and stream mitigation work at Thorn Hill Industrial Park in order to maximize the developable acreage within the park by increasing wetland areas in non-buildable areas. The scope of work included the removal of Japanese Knotweed from the stream area (an invasive species in North America), increasing the area of wetland located in and around the Brush Creek area of the site, and re-sculpting the shoreline along certain identified bends within Brush Creek to avoid any future significant creek bank erosion.

Lawrenceville Redevelopment & New Road

RIDC constructed a new road and relating infrastructure that extends 47th Street and turns to intersect 48th Street to allow for future development on the site. RIDC also further progressed environmental remediation and redevelopment with state assistance.

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SALES RIDC closed two sales in 2012 in the RIDC Industrial Park in O’Hara Township. Tsudis Chocolate Company bought the building they had leased since 2002, allowing them to increase their production capabilities. RIDC also sold the 260 Alpha Drive facility, former home of Zambrano Construction, to Practical Administrative Solutions who will lease the facility to Grane Hospice Care and Home Health Care to enable them to meet the demands of their recent market expansions.

FINANCING ASSISTANCE Since the 1960s, RIDC has sponsored $197,600,000 in loans for 254 businesses that have directly resulted in 13,291 new jobs and have catalyzed over $600 million in private investment. RIDC continued this financing in 2012 to support businesses in our region as they expand. Financing

Park

Project

Amount

Pennsylvania Industrial Development Authority (PIDA) Loan

RIDC Industrial Park–O’Hara

Tsudis Chocolate to aquire building

$1,560,000

Pennsylvania Industrial Development Authority (PIDA) Loan

RIDC Park West

Renovations in Findlay Center

$1,800,000

Pennsylvania Industrial Development Authority (PIDA) Loan Business in Our Sites (BOS) Loan Building PA Loan RIDC Manufacturing Loan Fund

Keystone Commons

Renovation of the East Shop

$2,250,000

Keystone Commons Keystone Commons RIDC Westmoreland

$1,400,000 $1,400,000 $1,500,000

Pennsylvania Industrial Development Authority (PIDA) Loan

RIDC Westmoreland

Portal reconstruction Renovation of the East Shop Development of production facilities for Aquion Energy Tenant building improvements for Aquion Energy

FOREIGN-TRADE ZONE #33

$2,250,000

RIDC sold its West Hills Commons, a 30,000 squarefoot facility in Armstrong County’s West Hills Industrial Park. The new building owner is an orthopedic surgeon partnering with Armstrong Memorial Hospital to expand services for the local area. A 16-acre parcel was purchased from RIDC at Innovation Ridge for over 100 executive townhomes to be called the Village at Marshall, making the site a prime live-workplay destination.

Major new & expansion leases in 2012 Aquion Energy New Lease: 330,000 SF RIDC WESTMORELAND Westmoreland County Community College New Lease: 70,000 SF RIDC WESTMORELAND Brush/GMS Renewal and Expansion: 55,350 SF KEYSTONE COMMONS RedZone Robotics Renewal and Expansion: 22,250 SF LAWRENCEVILLE TECHNOLOGY CENTER

RIDC applied and was approved for an expansion of FTZ #33. The FTZ expansion application added a site at RIDC Westmoreland to support manufacturing growth. • Leedsworld, a tenant in RIDC Westmoreland is currently pursuing activation at that site. • FTZ designation was achieved for Tsudis’s property in O’Hara Township, which they purchased from RIDC. With the new designation, they will be able to import liquid chocolate from Canada and export their chocolate bars back to Canada.

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• Subzone 33D–Mitsubishi Electric Power Products, Inc. was activated in March, 2012 and has begun utilizing the FTZ designation.

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MANUFACTURING DIVISION

COMPANY PROFILE Holtec manufacturing division makes products for spent nuclear fuel storage systems and transfer as well as heat exchangers. The company supplies large power generators and is looking to expand into the small nuclear modular reactor market, which provides a shorter, smaller, and more secure process of nuclear power generation for places in the United States as well as developing countries.

The global company, headquartered in New Jersey, purchased the RIDC’s tenant U.S. Tool & Die in 2004 and took over their operations, changing the name officially to Holtec in 2006. Now employing over 350 workers at their Keystone Commons facility, their location has provided them with the flexibility to grow as they enter new markets and continue to expand.

COMPANY PROFILE

The Aquion team has been working closely with the RIDC team to build out their manufacturing facility. They currently have the first piece of their line installed, with over 35 workers providing functional and maintenance support. They plan to have over 100 employees in the facility by the end of the year and could grow to as many as 350 workers by the end of 2015.

COMPANY PROFILE Aquion Energy was founded by a Carnegie Mellon University professor. Aquion Energy is developing a sodium-ion aqueous electrolyte battery that will enhance the electrical grid by providing flexible, emissions-free capacity that optimizes existing generation assets and enables broad adoption of renewable energy technologies. Aquion’s decision in 2012 to locate their first large-scale manufacturing facility in RIDC Westmoreland was a major win for the Pittsburgh region, as well as for Aquion. 8

The proximity to their R&D and corporate headquarters in the Lawrenceville neighborhood in Pittsburgh has been invaluable for the growing start-up company. Staff can easily come out to the new facility and new employees can spend time at the Lawrenceville office for training and culturebuilding.

ProMinent provides water metering technology, disinfection equipment and related control equipment for municipal, industrial, and commercial uses. The Pittsburgh facility assembles the equipment and serves the entire United States market. ProMinent, a German company, was originally recruited to Pittsburgh by the Penn Southwest organization. When it purchased property in the RIDC Park West in the early 1990s, the company had started with 20 employees at their new facility. After expanding in their current facility multiple times, they now have 110 employees and are planning to build a new facility on an adjacent parcel in the park, allowing them to expand their production yet again. 9


RIDC INDUSTRIAL & BUSINESS PARKS RIDC Industrial Park - O’Hara

Pittsburgh Technology Center

RIDC Park West

Lawrenceville Technology Center

RIDC Thorn Hill Industrial Park

RIDC Neshannock Business Park

RIDC Keystone Commons

Almono

RIDC Industrial Center of McKeesport

Innovation Ridge

RIDC City Center of Duquesne

RIDC Westmoreland

O’Hara Township, PA

Findlay & North Fayette Townships, PA Cranberry & Marshall Townships, PA

THE RIDC MISSION The Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) is recognized as one of Pennsylvania’s largest and most successful private, not-for-profit economic development corporations. Established in 1955, the RIDC was formed to foster new employment opportunities and to diversify the regional economy of southwestern Pennsylvania. The mission of the RIDC is to catalyze and support economic growth and highquality job creation through real estate development and finance of projects that advance the public interest. Today, RIDC owns over 1,300 acres of land in various suburban and urban industrial

Foreign-Trade Zone #33 administered by

East Pittsburgh & Turtle Creek, PA McKeesport, PA Duquesne, PA

Pittsburgh, PA Pittsburgh, PA

Neshannock Township, PA Pittsburgh, PA Marshall Township, PA

East Huntington Township, PA

SERVICES WE PROVIDE Development Services

RIDC utilizes a comprehensive approach to coordinate a development project from conceptual design through completion and occupancy. 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.

Financial Assistance Services

A wide range of RIDC services is 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 region’s leading academic institutions.

Foreign-Trade Zone

RIDC was granted the charter of administering FTZ #33 in 1977, which offers incentives to manufacturing companies in the United States. FTZ #33 is comprised of 17 general-purpose zone sites consisting of over 7,300 acres stretching throughout southwestern Pennsylvania. FTZ #33 has aided in attracting additional manufacturing jobs and businesses to the region as well as supporting existing industries by providing duty and tax savings.

INDIVIDUAL PROPERTIES Collaborative Innovation Center Carnegie Mellon University Pittsburgh, PA

Beaver Industrial Manor Hopewell Township, PA

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MADE IN PITTSBURGH

Suburban Industrial Parks When the Regional Industrial Development Corporation was formed in the 1950s, there was a boom in light industry happening all over the country. Because Pittsburgh’s heavy industries were using most of the flat, buildable land, the region was at an economic disadvantage. Many of the large Pittsburgh corporations realized Pittsburgh needed more pad-ready sites for light industrial companies to expand and thrive in southwestern Pennsylvania, so they contributed to seed-funding RIDC and to engineer deals with civic leaders for the first three industrial parks – RIDC Park in O’Hara Township, Thorn Hill Industrial Park, and RIDC Park West in the airport corridor. As well as completing infrastructure development, RIDC catalyzed the parks by constructing some of the first buildings. As new highways opened up, the parks became extremely successful and are still some of the largest concentrations of employment in the region. Unlike many other business parks in the region which mainly offer Class A office space, RIDC’s focus is on accommodating light manufacturing, distribution, R&D, and assembly-type operations – businesses that advance the region’s export economy. The companies in these three parks make medical devices, automobile innovations, chocolate, and everything in between.

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Tsudis Chocolate - A Regional Success Story RIDC closed two sales in 2012 in the RIDC Industrial Park in O’Hara Township. Tsudis Chocolate Company, who had leased the 97,500 square-foot building from RIDC for the last ten years, bought the property at 610 Alpha Drive. The story of the facility showcases the critical but often hidden influence RIDC has on the region’s economy. RIDC purchased the property in the mid-1980s to help retain Clark Candy Company in the region. Clark Candy Company operated the facility for several years before they were purchased by NECCO and subsequently moved out of the region. Tsudis Chocolate started in 2002 and moved to RIDC Park after it purchased the assets of Penhurst Candy, which was owned by Spiro and Marjorie Tsudis, the parents of the current Tsudis Chocolate owner. It started with 35 employees and has grown to employ over 200 full-time employees. Tsudis Chocolate’s business has now expanded production to nutrition products. In the past three years, Tsudis has doubled its sales and employment as a result of this strategic business line addition. With the purchase of the building, the company plans to make building changes that will lead to an addition to production capabilities and increase employment to more than 275 full-time workers.

RIDC Industrial Park–O’Hara, 2012

Year Acquired Former Use Original Project Size Parcels Left to Develop Estimated Total Real Estate Taxes RIDC Square Footage Jobs in RIDC Facilities RIDC Real Estate Taxes

RIDC Industrial Park - O’Hara

RIDC Thorn Hill

RIDC Park West

1963

1968

1976

Allegheny County Workhouse Farm 700 acres

Thorn Hill Youth Development Center 925 acres

Westinghouse Electric Corporation Land 340 acres

0 acres

133 acres

66 acres

$7,755,345

$4,999,153

$7,911,313

270,508 SF

173,740 SF

174,394 SF

1804

507

176

$490,500

$391,000

$247,000

The Commons at Thorn Hill RIDC undertook a joint venture with the Elmhurst Group to develop the Commons at Thorn Hill in Cranberry Township. The project, which broke ground in May of 2012, is a 96,800 square-foot project in two buildings. The buildings will be flexible space configurations that can accommodate a wide range of uses, including single story offices, R&D and light manufacturing. 13


STEEL VALLEY REVIVAL

Year Acquired Former Use

Redeveloped Brownfields

Original Project Size Parcels Left to Develop Total Project Investment RIDC Square Footage Jobs in RIDC Facilities RIDC Real Estate Taxes

The Monongahela Valley region, which was the center of Pittsburgh’s steel industry, was especially devastated when the industry collapsed in the 1970s. Left with large tracts of abandoned steel mills, the region realized it needed new tools and a new approach to return these properties to productive use. RIDC worked with its state, county and local partners to design a statewide Brownfields program that would make it easier to remediate and fund their redevelopment. Pennsylvania’s approach to clean-up standards and financial incentives was and still is considered one of the nation’s leading brownfield revitalization efforts.

City Center of Duquesne

1989 US Steel McKeesport National Works 128 acres

1990 US Steel Duquesne Works 255 acres

33 acres

60 acres

$56 million

$40 million

853,395 SF

239,378 SF

367

641

$376,200

$232,000

Industrial Center of McKeesport, 2012

Dura-Bond invested $12 million in a new manufacturing facility in 2012. The facility, which coats steel pipe for natural gas transmission, has seen an increase in the demand with the emergence of the Marcellus and Utica Shale gas production. The location in Duquesne provided Dura-Bond with close proximity to their suppliers and customers, as well as access to rail and river transport. Their coating provides an insulation to pipe that will eventually be placed underground for natural gas transport, preventing it from corrosion. The facility coats approximately 35,000 feet of pipe per day and has over 70 employees on site.

After the RIDC undertook selective demolition, environmental remediation efforts, and building rehabilitation, the Duquesne and McKeesport sites have been transformed into attractive business and manufacturing centers, home to over 1,000 jobs.

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Industrial Center of McKeesport

Industrial Center of McKeesport, late 1980s

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CREATIVE REUSE Multi-Tenant Facilities

After over 100 years of operation, Westinghouse closed its East Pittsburgh plant in the late 1980s. The site had important historical importance, not only as a place of 20,000 jobs, but also as the location of the first radio broadcast. Without the Westinghouse operation, the community was faced with a vacant complex and the huge loss of employment. After RIDC purchased the site, it created a development plan with state, county, and local support that included a creative idea to redevelop the complex into a multi-tenant center – a plan that would provide the community with greater job stability. The West Machine Shop was transformed from a high-bay factory to an urban industrial mall – an innovative model (later replicated in Eastern Europe) that created an additional mezzanine of offices and offered tenants a storefront and the amenity of driving and parking through the main bay. Today the complex, now called RIDC Keystone Commons, is home to more than 30 companies and is considered one of the most successful redevelopment projects in the Commonwealth of Pennsylvania. In 2010, RIDC was approached with a similar challenge and opportunity when the Sony Corporation decided to close its Westmoreland manufacturing facility, leaving 2.8 million square feet of vacant space. RIDC decided to incorporate the successful approach used at Keystone Commons to rehabilitate the facility, now called RIDC Westmoreland, into a multitenant manufacturing hub. 16

RIDC Westmoreland Transformation Underway The conversion of the former Sony plant is already under way with RIDC attracting largescale manufacturers. • Aquion Energy, a Carnegie Mellon spinout with potential to create as many as 350 jobs in the next five years, chose the Westmoreland facility to build out space for its manufacturing plant.

The East Shop at Keystone Commons RIDC undertook additional investment in the Keystone Commons manufacturing facility in 2012. The East Shop rehabilitation and remediation was completed with state support, providing the 300,000 square-foot facility with new siding and gutters, a new roof, and interior painting. Holtec recently leased part of the building, further expanding their facility at Keystone Commons. In addition, RIDC completed the total restoration of Portal 5. The project – which included replacing the asphalt paving with heavyduty concrete, widening the entrance, and improving stormwater infrastructure – allows vehicles to deliver raw materials and goods and exit with large, highly-specialized finished products.

• DNP IMS America planned its expansion in RIDC Westmoreland to add a coating line. The company, which has 150 employees, makes thermal transfer ribbons that are used in printing bar codes. • Westmoreland County Community College signed a lease to open a training site in the facility, offering companies an opportunity to have employees trained under the same roof.

State, local, and federal programs are helping RIDC attract high-quality jobs to the Westmoreland facility. The RIDC Westmoreland facility was also authorized as a Keystone Opportunity Expansion Zone (KOEZ) that will offer local and state tax incentives that can help attract manufacturers to the region. In addition, the site was also designated as a Foreign-Trade Subzone, allowing manufacturers to take advantage of duty cost savings and benefits.

Year Acquired Former Use Total Project Investment RIDC Square Footage RIDC Tenants Jobs in RIDC Facilities RIDC Real Estate Taxes

Keystone Commons

RIDC Westmoreland

1989 Westinghouse Electric, East Pittsburgh Plant $64 million

2011 Volkswagen Plant/ Sony Factory $3.4 million

2,071,130 SF

2,800,000 SF

36 companies

6 companies

1,219

193 and growing

$611,200

$34,200 17


UNIVERSITY CATALYSTS

Pittsburgh Technology Center (two buildings)

Year Constructed

High-Tech Companies Accessing Pittsburgh’s Innovation Talent

Former Use Type of Space RIDC Square Footage Companies in RIDC Facilities RIDC Real Estate Taxes

RIDC continues to attract and support hightech companies that are contributing to the job growth and innovation in our region. The Pittsburgh Technology Center and the Collaborative Innovation Center are two of RIDC’s facilities that are building upon their university partnerships and attracting the nation’s leading high-tech firms. Part of the former LTV Steel site, located less than a mile from the academic and research center of Oakland, was redeveloped into the Pittsburgh Technology Center (PTC), now the location of thousands of high-paying jobs. RIDC built two riverfront buildings in the PTC. Tenants include Ansaldo STS, Catalyst Connection, the National Cyber Forensics Training Center, and the Pittsburgh Technology Council. On Carnegie Mellon University’s campus, RIDC built a dry-lab research facility called the Collaborative Innovation Center (CIC) to provide office and lab space for technology companies wishing to collaborate with Carnegie Mellon to create innovative new concepts and products for the marketplace. The building was the first Pittsburgh home of Google, who recently expanded to Bakery Square. Currently, Apple, Disney, and Intel occupy space in this innovative facility.

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Collaborative Innovation Center

1991 (Union Switch & Signal Building) 1997 (2000 Technology Drive) J&L then LTV Steel Works

Vacant hillside

Office

Office/R&D

241,640 SF

127,794 SF

10 companies 747 jobs

4 companies

$626,000

$270,300

2005

Interior and exterior views of 2000 Technology Drive

CIC Renamed to Honor Former CMU President The Collaborative Innovation Center (CIC ) was officially renamed to the Robert Mehrabian Collaborative Innovation Center in honor of the former Carnegie Mellon University President who oversaw its creation and played a vital role in facilitating tech start-ups and bringing industry to the region. RIDC President Donald F. Smith, Jr. provided remarks at the renaming ceremony. (Image Source: Carnegie Mellon University)

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URBAN JOB CENTERS

Lawrenceville Technology Center Development Along with expansions of companies into the Chocolate Factory, RIDC undertook environmental work and construction of a road on the former Heppenstall property. RIDC also participated on the advisory panel for the Allegheny Riverfront Green Boulevard plan, a collaboration of local agents and property owners funded by a Sustainable Communities federal grant. The plan calls for redevelopment of the 43rd Street District into research and development, light industrial, residential, retail, and a new riverfront park.

Development in the City The collapse of Pittsburgh’s steel industry left the city with the liability of large abandoned brownfield sites on some of its most visible riverfront real estate. Facing this challenge and the opportunity to revitalize these valuable properties, Pittsburgh has become a leader in brownfield redevelopment, with RIDC as a main partner.

A notional rendering of the Almono Eco-Tech Park district, which will feature clean industrial uses

In Lawrenceville, RIDC remediated the former Heppenstall Steel site, including demolition of several blighted buildings, and rehabilitated a former Chocolate Factory into a high-tech office and lab facility. The properties are now part of a robotics hub that has developed around Carnegie Mellon’s National Robotics Engineering Center (NREC). Redevelopment has begun on the final section of the former LTV site, owned by the Almono partnership with RIDC as the managing partner, which will create a truly mixed-use development of office, light industrial, and residential uses.

Year Acquired Former Use Type of Space Parcels to be Developed RIDC Square Footage (existing) Jobs in RIDC Facilities RIDC Real Estate Taxes 20

A view of the Lawrenceville Technology Center, which is less than 4 miles to downtown Pittsburgh

Lawrenceville Technology Center

Hazelwood - Almono

1996, 2002

2002

Heppenstall Steel Light manufacturing, R&D, Office

J&L then LTV Coke Works Light manufacturing, R&D, Office, Mixed-Use, Residential

7 acres

178 acres

215,390 SF

250,000 SF

92

Over 4,500 jobs expected

$57,800

$150,000* *Real estate taxes paid by Almono LP

Almono: “Dirt in 2013, Vertical in 2014!” With over 50 meetings with individuals in leadership, community members, and service partners, 2012 was a busy and critical year for Almono. As the vision process was completed the previous year, the team is now working towards implementation of the mixed-use riverfront development, which included rezoning and Phase I infrastructure design. The Almono project received $5.5 million in Commonwealth grants and loans for infrastructure work. In addition to the investment by the Almono partners, the state money will enable RIDC to build the skeletal framework for new infrastructure at the Hazelwood site, opening the entire site up for development. During 2012, the team awarded the initial engineering contract, completed a traffic study, started the process of rezoning the site to a Special Planned (SP) district, applied for Tax Increment Financing (TIF), celebrated the opening of a temporary bike trail through the site, and further engaged with the community. Infrastructure work is slated to begin in 2013, with vertical development expected in 2014. 21


HIGH-TECH INNOVATION

Armstrong County Sale RIDC sold its West Hills Commons, a 30,000 square-foot facility in Armstrong County’s West Hills Industrial Park. The building has been serving as a medically focused facility and supports the local hospital, a skilled workforce, and is now a completely private sector facility. RIDC had purchased the land from the Armstrong County Industrial Development Council (ACIDC) in June of 1999 and developed West Hills Commons to provide a unique flex space facility that would encourage additional private investment in the park. Today the West Hills Industrial Park houses over 20 companies.

Innovation Ridge is one of RIDC’s newest development projects. Formerly called Tech 21, the site was envisioned as a premier technology and office park. These high-paying technology sector jobs attract young people to locate or remain in the area, further strengthening the Pittsburgh region. Because of its experience in developing the O’Hara, Thorn Hill and Park West business and industrial parks, RIDC was approached to take over the Innovation Ridge development to see it through the vision. In order to reignite the project, RIDC is undertaking pad design and marketing a highly visible pad for a hotel. PennDOT, with the support of RIDC, has started construction to widen and improve Warrendale Bayne Road from I-79 to Route 19 to create two lanes in each direction. They are also widening and improving a section of Route 19 near the intersection with Thorn Hill Road. The project should be completed in 2013.

Year Acquired Former Use Number of Companies Total Acreage RIDC Real Taxes Paid

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Velocity Magnetics

Infrastructure Improvements in 2012 In 2012, RIDC improved the trails at the Innovation Ridge Business Park. A 16-acre parcel was also purchased for over 100 executive townhomes to be called the Village at Marshall, making the site a premier live-work-play destination.

Started in owner Domenic Marzano’s garage in 1999, Velocity Magnetics now has over 15 employees at its facility in the RIDC Neshannock Business Park. Velocity both develops and manufactures fail-safe magnetic systems that are used in roller coasters, launch systems, people movers, and other facilities all over the world. Next time you travel to Cedar Point or Disney World, you might be able to find this system made in the Pittsburgh region!

REGIONAL PRESENCE RIDC has spurred regional economic development by taking on projects with our county partners. Combined with RIDC’s development experience and partners’ local connections, RIDC has assisted in the creation of job centers in Lawrence, Beaver, Butler, Armstrong, Allegheny and Westmoreland counties. RIDC owns Beaver Manor, a building in Hopewell Business & Industrial Park which houses over 70 jobs, and continues to develop the Neshannock Business Park, currently home to four companies. RIDC has sold some of its land and buildings in these areas once they became attractive to the private market, notably this year the West Hills building in Armstrong County, but continues development and its commitment to Southwestern Pennsylvania and regional partners.

V ELOCITY

M AGNETICS,

I NC.

Redefining the Art of Magnetics

Innovation Ridge 2010

Tech 21 Business Park 1 company 223 acres $158,600

Image Source: Velocity Magnetics, Inc.

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210 Sixth Avenue • Suite 3620 • Pittsburgh, PA 15222 www.ridc.org • 412.471-3939

RIDC Annual Report 2012  
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