REGIONAL INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTHWESTERN PENNSYLVANIA
YEAR IN REVIEW 2013
LETTER FROM THE PRESIDENT
RIDC made great progress on many of its goals in 2013, expanding the organization’s role as a key player in the region's economic progress.
RIDC continued to focus our efforts on projects that will enable highquality job creation, increase the tax base, and contribute to the economic success of communities. Whether it's furthering the Almono development, modernizing our large network of real estate for companies, or collaborating with our regional partners on initiatives that impact the entire region, RIDC is working on projects of regional importance.
In this report, we tell the stories of just a few of the successful companies growing in RIDC's facilities. For the second year in a row, the companies in RIDC's facilities reported strong employment growth. Companies like Holtec, GMS, and Bulk Conveyor continue to expand in the Mon Valley. And we continue to support new companies who are making their first large-scale expansion such as SDC Nutrition, Carnegie Robotics, and Aquion Energy.
RIDC made great progress on the redevelopment of the former LTV Steel site in Hazelwood, now known as Almono. Some of the accomplishments include: • Securing $80 million in tax-increment financing, the largest in the City of Pittsburgh's history • Achieving rezoning of the entire site through the City's "specially-planned" zoning process, which will preserve the high-quality vision for development • Taking on a $8.5 million site grading project that will move over 800,000 cubic yards of fill and will prepare the site to proceed with development RIDC made greater efforts in the past year to strengthen our relationships with our regional partners both public and private. RIDC was integral in the establishment of the Site Development Fund, which is being managed by our partners at the Allegheny Conference on Community Development and focused on sites of regional importance. RIDC partnered with Elmhurst Development in a joint-venture for a speculative building in RIDC Thorn Hill Industrial Park, creating a successful model of partnership for future development. RIDC organized collaboration efforts between RIDC and the County industrial and economic development corporations in order to advocate for the issues most affecting economic development in Southwestern Pennsylvania.
I’d like to thank our Board for their engaged support and our partners without whom we couldn’t succeed. Donald F. Smith, Jr., PhD President
RIDC CORPORATE OFFICERS
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
LETTER FROM THE BOARD CHAIR
This is a critical time for our region. As Pittsburgh’s economy finally gains steam after years of depressed growth, there are still many projects important to advancing the region that cannot be funded solely by the private market. The region continues to need a strong RIDC – an organization that can take on large, challenging projects that advance the public interest. RIDC has over 50 years of technical expertise in real estate projects. By leveraging partnerships with other regional industrial and economic development organizations, universities, the foundation community, regional agencies and government officials, RIDC has been able to expand our reach. And as a nonprofit, RIDC reinvests any profits back into regional projects. RIDC has had much success returning former industrial sites to economic prosperity through careful planning, focused investment, and attraction of new companies. Utilizing the successful multi-tenant approach taken to redevelop the former Westinghouse facility in East Pittsburgh and Turtle Creek which now houses over 35 companies and over 1,100 jobs, RIDC has focused much of our recent efforts on the redevelopments of the former Sony plant (now called RIDC Westmoreland) and the former LTV Coke Works (now known as Almono). While the plans for the two redevelopment projects reflect their different opportunities, the goals of increased jobs, taxes, and contributing to the prosperity of the local community are the same.
After taking on the project in 2012, RIDC Westmoreland is now well on its way to becoming another regional success story. This past year saw a continuation of successes at the facility, both in capital investments to maintain the building as well as continued build-out of new tenants Aquion Energy and Westmoreland County Community College and expansion of long-time tenant DNP. Almono also saw significant milestones this year, achieving a Specially Planned zoning district, gaining approval of the largest TIF in Pittsburgh’s history, and commencing the first large-scale construction project. We continue to be optimistic about Pittsburgh’s future and are excited to play a role in some of the key projects that will contribute to the sustainability of the region’s prosperity for years to come. G. Reynolds Clark Board Chair
BOARD OF DIRECTORS
Mark Aloe, Managing Member, Aloe Brothers LLC Coleman J. Benedict, Executive Vice President, WCB Properties, Inc. Charles T. Blocksidge, PhD, Retired-Executive Director, Local, County & State Government Relations & Special Projects, Community College of Allegheny County 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, LLC Louis V. Oliva, CCIM, SIOR, Executive Managing Director, Newmark Grubb Knight Frank Robert B. Pease, National Development Corporation 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, President and CEO, Riverlife Darrell E. Smalley, Principal, State and Local Tax, Ernst & Young LLP Donald F. Smith, Jr, PhD, President, RIDC Samuel J. Stephenson, Partner, ParenteBeard, LLC The Honorable Daniel J. Vogler, Chairman, Lawrence County Board of Commissioners Dennis Yablonsky, Chief Executive Officer, Allegheny Conference on Community Development
2013 RIDC Annual Report
2013 BY THE NUMBERS
new financing secured in 2013
$10,063,988 capital investment in 2013
50.6 acreage sold in 2013
3,483 acres total acreage developed to date
square feet owned
current acreage owned
$4,817,958 real estate taxes paid in 2013
number of new or expansion leases
121,885 SF square feet of new and expansion leases
948,562 SF square feet renewed
122 companies companies in RIDC facilities
jobs in tenant facilities
THE RIDC MISSION The Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) is recognized as one of Pennsylvaniaâ€™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 high-quality job creation through real estate development and finance of projects that advance the public interest.
2013 RIDC Annual Report
RIDC INDUSTRIAL & BUSINESS PARKS
RIDC Industrial Park
Pittsburgh Technology Center
Findlay & North Fayette Townships, PA
Oâ€™Hara Township, PA
RIDC Park West
Lawrenceville Technology Center
RIDC Thorn Hill Industrial Park
RIDC Neshannock Business Park
Cranberry & Marshall Townships, PA
Neshannock Township, PA
RIDC Keystone Commons
East Pittsburgh, Turtle Creek & North Versailles, PA
RIDC Industrial Center of McKeesport
Marshall Township, PA
RIDC City Center of Duquesne
East Huntington Township, PA
Collaborative Innovation Center (CIC)
Carnegie Mellon University Pittsburgh, PA
*RIDC is the managing partner of the Almono partnership
Beaver Industrial Manor Hopewell Township, PA
Leasing & Land Sales
RIDC manages buildings or owns land in 11 RIDC parks with 3 additional freestanding building projects. RIDC owns and manages several multi-occupancy buildings in its portfolio, enabling flexibility and expansion for growing companies.
Notable Leases in 2013
DNP IMS America
BRUSH (formerly GMS)
LAWRENCEVILLE TECHNOLOGY CENTER 30,000 sq ft - 15 years BEAVER INDUSTRIAL MANOR 15,075 sq ft - 5 years
INDUSTRIAL CENTER OF MCKEESPORT 187,214 (+27,699) sq ft - 5 years
NESHANNOCK BUSINESS PARK 4.3 acres - $118,250
INDUSTRIAL CENTER OF MCKEESPORT 4.67 acres - $273,195
Build to Suit
RIDC utilizes a comprehensive approach to coordinate development projects from conceptual design through completion and occupancy. This year, RIDC projects were largely focused on two tenants’ expansions.
INDUSTRIAL CENTER OF MCKEESPORT 43,619 sq ft - 5 years
RIDC WESTMORELAND RIDC INDUSTRIAL PARK 161,000 (+26,000) sq ft - 10 years 40,500 sq ft - 5 years KEYSTONE COMMONS 63,030 (+7,680) sq ft - 5 years
2013 Land Sales
Cranberry Hill Partners (Pella Windows) RIDC THORN HILL 6.82 acres - $830,225
CITY CENTER OF DUQUESNE 17,666 sq ft - 5 years
Robert & Rita Randall
RIDC THORN HILL 28.7 acres (9.8 usable acres) $750,000
ProMinent Fluid Controls, Inc RIDC PARK WEST 6.1 acres - $562,000
BCSI expansion: RIDC managed a $725,000 project for the company’s expansion in McKeesport that included expanding into the 1905 Building, addition and repairs to cranes, and building access improvements.
DNP IMS America: RIDC managed a $5.5 million project for the company’s expansion in Westmoreland. The project established the DNP’s new utility systems that will be decentralized from the facility’s Central Utilities Plant, expanded their space, and added new equipment.
2013 RIDC Annual Report
RIDC can assist companies with available financing programs through local, state, and federal entities. RIDC has a long track-record of gaining public funding for projects that help our economy grow jobs. In 2013, RIDC continued to secure financing for projects that advance the public interest. Financing
Pennsylvania Industrial Development Authority (PIDA) Loan
Free-Standing Project in Monroeville
Business In Our Sites (BOS) Loan
Renovation of former car dealership into manufacturing facility for Maverick Dental Solutions Site Preparation Work
Business in Our Sites (BOS) Loan
Construction and Tenant Improvement projects
RIDC was granted the charter of administering the 33rd FTZ program in southwestern Pennsylvania in 1977 by the Foreign-Trade Zone Board of the U.S. Department of Commerce. The Foreign-Trade Zone #33 was established to attract and promote international trade and commerce in western Pennsylvania. Activity in 2013 included the following:
• Mitsubishi Electric Power Products, Inc. (RIDC Thorn Hill) applied for expansion of its Subzone within the FTZ #33 for additional sites throughout Allegheny, Beaver, Butler, Westmoreland and Somerset Counties. The Subzone now encompasses 18 sites in five counties and 104 acres. • TruFood Manufacturing (RIDC Industrial Park) received activation approval for their site.
• Leedsworld (Westmoreland Business Park and RIDC Westmoreland) requested and received approval to activate space at RIDC Westmoreland and move material between their two sites.
Land & Park Development
Throughout its history, RIDC has developed thousands of acres of land for use by companies. Whether it is a greenfield development that needs roads, utilities, and stormwater retention, or a brownfield development that needs demolition, remediation, redevelopment, and improved infrastructure, RIDC has a wide range of experience in some of the most challenging regional development projects.
Almono site development: 2013 was a year of major milestones for Almono site development progress. The yearâ€™s success included achieving new zoning approval, securing $80 million in tax-increment financing, and commencing a massive site grading project.
Innovation Ridge site development: Progress continues on this premier technology and office park with recreation trails, signage, and off-site transportation improvements. Executive townhomes are being constructed nearby with 2013 seeing the first sales. Keystone Commons portal redesign: RIDC started design of Portal 7 work that will widen the entrance, improve stormwater infrastructure, run new utility access to facilities, and improve the flow of traffic at this busy industrial park.
2013 RIDC Annual Report
RIDC Park West
Seegrid started in 2003 as a spin-off of the Carnegie Mellon University robotics lab. They spent a few early years in RIDC’s Chocolate Factory in Lawrenceville then grew into a larger space at RIDC Park West.
The company manufactures vision-guided automated guided vehicles (AGVs) that navigate using a proprietary vision-based 3D mapping technology. Cameras capture images, the system creates a map from those images, and then uses that map to navigate the trained route. Seegrid’s technology captures hundreds of points and judges its location using a probability curve. This means facility surroundings can change, such as product changes and facility structure, and the AGVs will navigate without getting lost. Seegrid can install their vision-guided AGVs at a manufacturing or distribution facility in one day and offers companies a flexible and simple implementation process. Some of Seegrid’s
Seegrid has recently partnered with some of the top industrial truck OEMs to install Seegrid’s navigation automation technology in standard trucks - a line called Guided by Seegrid®. They are working with Raymond (a Toyota subsidiary), Linde Material Handling (a KION subsidiary), and Yale Materials Handling (a subsidiary of NACCO). With these partnerships, they anticipate a huge increase in exposure of their vision-guided product.
Seegrid employs 75 people, the majority of whom are engineers or manufacturing and customer support technicians. Seegrid prides themselves on being a top employer, offering all employees a living wage, health care benefits, career planning, and catered lunch everyday!
customers include Giant Eagle, Cabela’s, YUSA, and Daimler.
DNP America’s facility is actually a long-time tenant in the Westmoreland complex, operating as Sony Chemicals since 1995 and
Industrial Center of McKeesport
When Bill Caputo started Bulk Conveyor eight years ago, he wanted to locate the company near his home, so he leased space from RIDC in its McKeesport Industrial Park. BCSI, Inc, which was acquired by ADA in 2012, manufactures dry-sorbent ejection - sometimes referred to as a dry scrubber - for coal-fired furnaces.
an expansion and leased an additional building from RIDC to house their electrical shop. The BCSI operation is 95% self-sufficient - they do in-house engineering, electrical designing, manufacturing of control panels, welding of the containers, and product testing all at their McKeesport facility. They employ 110 people in positions such as welders, fitters, draftsmen, and laborers.
The product takes out byproducts like hydrochloric acid and sulfites that typical scrubbers don’t by using a powder that reacts with the polluting compounds and removes them. The process of dry-sorbent ejection is the cheapest and most efficient way to get rid of the harmful compounds. New federal clean air regulations passed in 2013 require compliance by 2016, so BCSI has been trying to keep up with the demand and has a backlog of orders all the way up until the compliance date. Last year, they embarked on
then purchased by DNP IMS, another Japanese company, in 2008. DNP manufactures thermal transfer ribbons. For those not familiar with the product, it’s analogous to a printer cartridge that is used in typical office printers, however, thermal transfer printers are more efficient and more appropriate for printing things such as bar codes. DNP’s ribbons print on labels and other receiving materials for many different applications and environments, such as bags of chips, car parts, and healthcare supplies. After evaluating multiple global locations for an additional production line, DNP decided
to expand its Westmoreland County facility in 2013, allowing the facility to double its production capacity and further supply their large market in the Americas. During the expansion, which was partially funded by a Pennsylvania Redevelopment Capital Assistance Program grant, DNP added an environmentally sustainable recovery process, added new process utility systems, and hired 20 new employees. The DNP Westmoreland facility operates 24/7 and has approximately 160 employees. 11
2013 RIDC Annual Report
ABARTA opened their new headquarters in 2013 on the last developable parcel in RIDC Industrial Park
At 50 years old, RIDC Industrial is 100% developed The first RIDC Industrial Park, located in Oâ€™Hara township, celebrated its 50th anniversary in 2013. The RIDC Business Alliance held a celebration to recognize the success of the business park and its 130+ companies. The event also served as an unveiling for a new lighted directory sign.
The RIDC Industrial Park, which is 100% developed, is the home of over 5,000 jobs. RIDC now owns only 10 of the approximately 90 buildings in the park, with the others privately-owned.
ABARTA purchased the last developable parcel in the RIDC Industrial Park and constructed a state of the art 32,000 squarefoot building on a hillside lot on Alpha Drive. The building plan, a collaboration between 12
ABARTA, Rothschild Doyno Collaborative, and Grand View Development, envisioned a building that turned toward the river and contained two structures that actually form an "A" when connected by the atrium.
ABARTA's 75 corporate employees were able to move into the new facility in June of 2013. ABARTA is a diversified holding company with three main lines of business: ABARTA Oil & Gas, Coca Cola bottling, and Kahiki, a frozen food manufacturer in Columbus, Ohio. ABARTA, which is a family-owned company in its 3rd generation, started their Pittsburgh headquarters at 1000 Gamma in the RIDC park in 1979 with 5 employees. They have grown to over 900 in all their divisions.
RIDC Property Updates
SUPPORTING OUR JOB CREATORS
Suburban Industrial Parks
When the Regional Industrial Development Corporation was formed in the 1950s, the country was experiencing a light industrial boom, but because Pittsburgh’s heavy industries were using most of the flat, buildable land, the region was at an economic disadvantage. Pittsburgh’s anchor corporations realized Pittsburgh needed more pad-ready sites, so they contributed to seedfunding RIDC and to engineering 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.
2013 Updates RIDC sold land in 2013 in its suburban parks to make way for additional private investment. In Thorn Hill, Cranberry Hill Partners purchased land for the location of a manufacturing facility and showroom for Pella Windows and Doors. In Park West, ProMinent Fluid Controls, a park tenant for the past 20 years, purchased a contiguous parcel for an expansion facility.
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 QUICK FACTS of employment in the RIDC Industrial Park RIDC Thorn Hill RIDC Park West region. Unlike many Marshall & Location Findlay & North other business parks in O’Hara Township Cranberry Fayette Townships the region which mainly Townships offer Class A office Date Established 1963 1968 1976 space, RIDC’s focus is Size 700 acres 925 acres 340 acres on accommodating light manufacturing, assembly, Estimated 2013 $7,502,690 $6,734,630 $7,599,415 and R&D operations – Impact in RE taxes in RE taxes in RE taxes businesses that advance RIDC’s Current Portfolio: the region’s export 33 acres 229 acres 124 acres economy. The companies Property 4 buildings 10 buildings 3 buildings in these three parks 173,740 sq ft 174,394 sq ft 269,183 sq ft make medical devices, Companies in 19 companies 5 companies 6 companies automobile innovations, RIDC facilities 1,413 jobs 534 jobs 189 jobs nutrition products, and 2013 Real several products in $405,100 $387,300 $500,000 Estate Taxes between. 13
2013 RIDC Annual Report
REVIVING THE STEEL VALLEY
The Monongahela Valley region, once the center of Pittsburgh’s steel industry, was especially devastated when the industry collapsed in the late 1970s and 80s. 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 state-wide 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.
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 1,100 jobs. The sites are important regional locations for companies looking for industrial space.
Location Date Established Size Estimated 2013 Impact
Property Companies in RIDC facilities 2013 Real Estate Taxes 14
Industrial Center of McKeesport
City Center of Duquesne
8 companies 16 companies 404 jobs 717 jobs $469, 621 in RE taxes $563,260 in RE taxes RIDC’s Current Portfolio: 128 acres 109 acres 9 buildings 8 buildings 1,052,669 sq ft 239,378 sq ft 6 companies 13 companies 364 jobs 265 jobs $403,220
RIDC Property Updates
An employee at BCSI in McKeesport welds a pollution-control system container
American Textile’s facility in Duquesne
Duquesne Light purchased a parcel in McKeesport to construct a new electric utility service center. Site work started in the summer and was ready for building construction in 2014.
Bulk Conveyor Systems, Inc (BCSI), undertook a major expansion in 2013. RIDC managed the $725,000 expansion project, which included • Improvements to their Commons I facility • Expansion into the 27,699 sq ft Roll Shop facility • Installation of 5 new cranes and repairs to existing crane bay rails
The project was partially supported by a Pennsylvania Redevelopment Assistance Capital Program (RACP) grant.
2013 RIDC Annual Report
Multi-Tenant Facilities As with many other Rust Belt cities, Pittsburgh had to endure watching Location as their once-booming factories become empty buildings creating holes Date Established in their communities. Size But over the past 30 years, Pittsburgh has Estimated 2013 been working hard to Impact reinvent itself, with RIDC tackling some of the region’s most challenging Property projects. Large vacant facilities, which once Companies in housed companies that RIDC facilities put Pittsburgh on the map, 2013 Real have been transformed Estate Taxes into modern workplaces for the companies creating the jobs of tomorrow’s economy.
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 multitenant center – a plan that would provide the community with greater job stability.
QUICK FACTS Keystone Commons Turtle Creek, East Pittsburgh & North Versailles 1989
New Stanton 2011
1,119 jobs 225 jobs $1,396,717 in RE taxes $38,100 in RE taxes RIDC’s Current Portfolio: 110 acres 365acres 1 buildings 9 buildings 2,800,000 sq ft 2,224,452 sq ft 38 companies 6 companies 1,119 jobs 225 jobs $1,396,717
(property in KOZ program)
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 multi-tenant manufacturing hub. The facility now has six tenants and continues to attract companies looking for large spaces.
RIDC Property Updates
REDEVELOPING FOR TOMORROW’S ECONOMY The once-sprawling facility of the energy giant Westinghouse, Keystone Commons has been able to accommodate the growth of a new energy company. Holtec International, which makes products for spent nuclear fuel storage and transfer systems, has their manufacturing division in Keystone Commons. Now employing over 350 at the Pittsburgh location, the company continues to expand into new markets. In the huge space left by Sony (and Chrysler and Volkwagen before them), the space now has the first of its new tenants, one of which is
Aquion Energy, an emerging Carnegie Mellon University spin-out. 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. Their business model anticipates as many as 350 workers by the end of 2015. The company maintains their R&D and corporate headquarters in the city of Pittsburgh, allowing their management and staff easy access to the new large-scale manufacturing operation.
2013 Updates RIDC Westmoreland’s two largest tenants, Aquion Energy and DNP, continue to progress their operations. RIDC is managing Aquion’s 330,000 square foot build-out of their facility. The multi-million dollar project is expected to be completed so that Aquion can roll-out their first production line in 2014. RIDC also managed a portion of DNP’s expansion in the facility. DNP, which has been a tenant at the facility since 1995, added a new production line last year and decentralized their utility systems. RIDC is undertaking a redesign of Portal 6 & 7 at the Keystone Commons complex. The design and engineering was completed in 2013, with construction set to occur in 2014.
Westmoreland County Community College broke ground in July on its new $9.4 million Advanced Technology Center in RIDC Westmoreland. The facility will hold the college’s expanded workforce development program when the facility opens in the fall of 2014. The Center will occupy approximately 73,000 square feet of the building. The WCCC facility will add a great amenity to the current and future manufacturers who are co-located in the building, as well as those in nearby industrial parks. 17
2013 RIDC Annual Report
The collapse of Pittsburgh’s steel industry left the region with the liability of large abandoned brownfield sites on some of its most visible riverfront real estate. While these sites have assets that are attractive to new companies such as rail and barge infrastructure or central transportation access, many of these sites also sit near the center of their communities with the potential for recreation and increased quality of life. Whether preparing a steel site for a walkable residential community, creating one of the first downtown residences, facilitating the construction of miles of bike trails, or implementing the community vision for a multiuse site, RIDC has turned the region’s old sites into places communities are proud to reclaim.
The Almono Partnership with RIDC as the managing partner took control of a 178-acre former Jones & Laughlin Coke Works (then LTV Steel) in 2002. The partnership committed to preserve the Hazelwood site for a quality and sustainable mixed-use development. With a community-backed vision plan for light industrial, office, and residential space, RIDC has begun land development to prepare the site. The public infrastructure investment includes • 2 million square feet office and industrial space + 1,200 residential units • 56 acres of rights-of-way that will also include utility lines, bike lanes and stormwater management • 26 acres of common open space & access to a mile-and-a-half of riverfront • Off-site transportation improvements to address regional concerns.
THE TRANSFORMATION AT ALMONO
After Edgewater Steel closed its facilities in 1997, RIDC took ownership of the site as part of a joint-partnership with a private investor with RIDC assuming full QUICK FACTS ownership in 2002. RIDC cleared and Edgewater at Oakmont ALMONO remediated the site in preparation Location Hazelwood, Oakmont for its development as a mixed-use City of Pittsburgh community. With much of the land Date 2002, 2009 2002, 2015 development completed, RIDC sold Established the property to be developed by Property 34 acres 178 acres KACIN, Inc. and EQA. The site has 4,000+ jobs been a success, with new residents Estimated $10 million annual 240 residential units enjoying sustainable neighborhood Future Impact RE taxes living on the serene riverfront site. 1,300 residential units
Almono acquires site - 2002
RIDC Property Updates The site of the former Edgewater Steel complex is now a riverfront community and is currently two-thirds developed (Photo courtesy of KACIN, Inc)
2013 Updates RIDC made great progress on the Almono site in 2013 as general partners of the development. Almono secured the largest Tax Increment Financing - $80 million - to fund the public infrastructure for the site. The site also achieved complete re-zoning as part of the Specially Planned zoning process. RIDC managed a $500,000 selective site demolition project with support from a
Pre-site grading - 2012
Gaming and Economic Development Fund grant through the Redevelopment Authority of Allegheny County. The fall of 2013 also saw commencement of a $8.5 million massive site grading project, which is moving over 800,000 cubic yards of fill. The project is partially supported by a PennWorks grant and Business in our Sites loan, both through the Commonwealth of Pennsylvania.
Site progress - 2013
2013 RIDC Annual Report
CATALYZING UNIVERSITY SPIN-OUTS
When considering the recovery of Pittsburgh’s economy over the last 30 years, the role of “Eds and Meds” is an often-cited contributor. Not only has Pittsburgh been successful in growing these industries, but also in creating new businesses that are inspired by research taking place at the universities or support the region’s medical institutions. RIDC has played a key role at helping these new businesses settle in Pittsburgh, rather than taking their budding businesses to typical tech-oriented locations in Silicon Valley and Boston.
The CIC building on the campus of Carnegie Mellon, is home to Apple, Disney, and Intel
2000 Technology Drive in the Pittsburgh Technology Center is a multi-tenant building home to tech20 oriented companies and organizations
RIDC has been involved in several universityrelated projects – working to create incubator space, constructing facilities for Carnegie Mellon University and the University of Pittsburgh, and assisting companies to find space near the universities. RIDC assisted the University of Pittsburgh and Carnegie Mellon in their construction of buildings at the Pittsburgh Technology Center. RIDC also built the University Technology Development Centers (UTDC), the Software Engineering Institute (SEI), and the Collaborative Innovation Center (CIC).
As Carnegie Mellon University’s National Robotics Engineering Center (NREC) in Lawrenceville has become extremely successful, RIDC’s redevelopment projects have enabled companies who want to “spin-out” but remain close to their CMU ties to locate in a RIDC facility next door. Combined with NREC, RIDC’s Chocolate Factory (once the site of Geoffrey Boehm Chocolates but redeveloped into a high-tech office and R&D space) and RIDC’s Blue Building (the former Heppenstall Steel manufacturing building now the new home of Carnegie Robotics), the area in Lawrenceville has become a robotics cluster.
RIDC Property Updates
Location Date Established Property
Companies in RIDC facilities 2013 Real Estate Taxes
Pittsburgh Technology Lawrenceville Center Technology Center Oakland/Hazelwood, Lawrenceville, City of Pittsburgh City of Pittsburgh 1991, 1997 1996, 2002 RIDCâ€™s Current Portfolio: 3.5 acres 21 acres 2 buildings 3 buildings 241,640 sq ft 215,390 sq ft 9 companies 5 companies 764 jobs 110 jobs $519,986
Collaborative Innovation Center (CIC) Oakland, City of Pittsburgh 2005
1 building 127,794 sq ft 6 companies 457 jobs $780,433
Carnegie Robotics signed with RIDC to lease the 30,000 square-foot former Heppenstall building in Lawrenceville. The company is a spin-out of CMUâ€™s NREC facility. RIDC is managing a $2 million buildout of the space that will provide the company with manufacturing space as well as office mezzanine space. They plan to occupy the space in mid-2014. Robert Mehrabian, former Carnegie Mellon President, and Don Smith, RIDC President outside the CIC.
2013 RIDC Annual Report
The Commons at Thorn Hill is a joint venture of RIDC and Elmhurst Development. The first 48,000 sq ft flex building was opened in 2013 and the second is scheduled for completion at the end of 2014.
2013 Updates • In Neshannock Business Park, RIDC sold a parcel to GPS Realty to build a 34,000 squarefoott facility for a magnetics manufacturer.
regional financing initiatives, such as the Venture Capital Fund of Funds
• The region’s Industrial Development Corporations (and Economic Development Corporations) have been meeting regularly to discuss common issues and advocate for policies that will support companies growing in our region and will support the • RIDC worked with regional private and public revitalization of some of our region’s most partners to establish the Site Development challenged sites. Fund, a financing source that can assist sites most critical to our region’s economic success. RIDC is now working on other • RIDC’s joint venture with Elmhurst to build a speculative building in RIDC Thorn Hill was successful and the building is nearly fully leased.
RIDC Property Updates
SPURRING REGIONAL DEVELOPMENT
As our name suggests, RIDC supports regional development in all of Southwestern Pennsylvania’s ten counties. In fact, RIDC recently added an 11th county to its charter – Somerset County.
RIDC was the land developer of the Neshannock Business Park in collaboration with our partners at the Lawrence County EDC. There are currently four privately-owned buildings, with another one in construction.
From developing land, constructing a catalytic first building, or taking ownership of a challenging project, RIDC has been making investments that contribute to the health of our regional economy.
RIDC is working with our regional partners to establish a new era in collaboration - one that focuses on shared interests, advocacy, and technical & financial assistance. There are new models for collaboration on development projects in the region - including our successful joint venture with Elmhurst development in Butler County and our partnership with Westmoreland County IDC in redevelopment of the former Sony site.
RIDC recognizes that the Pittsburgh economy is truly regional as people commute from work to home between counties and businesses supply other businesses across the entire area. RIDC has had a role in several regional projects, adding flexible support to the counties’ individual industrial development corporations (IDC’s).
RIDC constructed the first building in the Beaver County CED’s Hopewell Industrial Park to spur private investment in the project.
Location Date Established Size
Neshannock Business Park Neshannock Township, Lawrence County 1997
Beaver Industrial Manor (Hopewell Industrial Park) Hopewell Township, Beaver County 1986
Marshall Township, Allegheny County 2010
RIDC’s Current Portfolio: Property Companies in our facilities 2013 Real Estate Taxes
62 acres 0 buildings n/a -
(Property is in a Keystone Opportunity Zone)
1 building 40,200 sq ft 4 companies 79 jobs
195 acres 0 buildings
(Property is part of Clean & Green Program)
210 Sixth Avenue • Suite 3620 • Pittsburgh, PA 15222 www.ridc.org • 412.471-3939
Published on May 9, 2014