U.S. Steel, which has operated in Pittsburgh for more than 100 years, plans to stay at least 18 more.
The giant steelmaker—which sold its 64-story U.S. Steel Tower headquarters in April 2011 and a year later announced it would move out of that building—has inked a deal with the Pittsburgh Penguins hockey franchise to build a five-story, 268,000-sf office building on the old Civic Arena site downtown, which the Penguins own.
A subsidiary of the Penguins and the team’s developer, St. Louis-based Clayco, will jointly own the new building, for which construction is scheduled to begin next summer and be completed by October 2017, around the time that U.S. Steel’s five-year lease on 450,000 sf in the U.S. Steel Tower expires. The projected cost of the new building was not disclosed.
U.S. Steel plans to move 800 employees from that tower and offices at Penn Liberty Plaza into 250,000 sf of the new building, which it will lease for at least 18 years, with an option to extend its lease beyond that. The rest of the space will be used for retail stores. The 2.25-acre site will include a museum highlighting Pittsburgh’s and U.S. Steel’s role in the worldwide steel industry.
The company’s decision to remain in Pittsburgh put an end to more than two years of speculation about where it might be headed. Indiana and Illinois reportedly were wooing U.S. Steel to relocate. U.S. Steel had also looked at several other buildings in different areas in and around Pittsburgh.
Site plan for U.S. Steel's new HQ, which will be located across from the Consol Energy Center, home of the Penguins NHL hockey team.
Several local news reports stated that it was Penguins’ CEO David Morehouse who convinced U.S. Steel’s CEO Mario Longhi to keep the company in Pittsburgh. The two chief executives met during a September 2013 barbecue at the home of the Penguins’ legendary player and co-owner Mario Lemieux. At that meeting, Morehouse impressed on Longhi that U.S. Steel was the “foundation upon which this city was built.”
Indeed, Pittsburgh’s Mayor Bill Perduto was on record saying “I didn’t want to be the Pittsburgh mayor to lose U.S. Steel.” Allegheny County Executive Rich Fitzgerald lobbied federal environmental, transportation, and trade officials on U.S. Steel’s behalf. And Pennsylvania Gov. Tom Corbett last month announced nearly $31 million in state grants to rehab three U.S. Steel plants in the state.
By agreeing to move into new digs, U.S. Steel would be the first corporate anchor tenant for a 28-acre Uptown site next to Consol Energy Center, where $440 million in development is planned, according to the Pittsburgh Tribune-Review and other news reports. That development would include retail, housing, and office space, and would be partially funded by more than $30 million in state grants and local tax-increment incentives, which would direct some of the development’s revenue to job training and other programs.
U.S. Steel has agreed to take only half of its potential abatements, with the rest of the incentives going to fund other parts of the Hill District, according to the Pittsburgh Post-Gazette.
Related Stories
| Dec 4, 2014
World’s largest eco-resort to open soon in Indonesia
Just under 10 miles away from Singapore, Funtasy Island (yes, that's the real name) is a resort tucked away in the mangrove islands of the Riau archipelago.
| Dec 4, 2014
£175 million 'Garden Bridge' gets the green light to cross the Thames
Westminster Council has approved a £175 million 'Garden Bridge' that will allow pedestrian traffic only. There has been some controversy about this bridge, which is expected to attract seven million visitors annually.
Sponsored | | Dec 3, 2014
Modular Space Showcase: Bringing work-life balance to energy workers in the Bakken region
To meet the demands of the booming energy business, Williston needs to provide homes, recreation centers, restaurants, hotels, and other support facilities for the tidal wave of energy workers relocating to the Bakken Shale area. SPONSORED CONTENT
| Dec 3, 2014
U.S., Canada, and Mexico finalize agreement to recognize architect credentials
The agreement represents over a decade of negotiations, bringing cross-border recognition of professional credentials from concept to reality in the spirit of the North American Free Trade Agreement.
| Dec 3, 2014
35 cities added to Rockefeller Foundation's 100 Resilient Cities Challenge
Chicago, Dallas, and Pittsburgh are among the U.S. cities to join the 100 Resilient Cities Challenge, pioneered by The Rockefeller Foundation.
| Dec 2, 2014
First existing multifamily buildings to earn Energy Star certification unveiled
River City in Chicago is one of 17 existing multifamily properties to earn Energy Star certification, which became available to this sector on Sept. 16 via a scoring system for multifamily properties that Energy Star and Fannie Mae had been developing for three years.
| Dec 2, 2014
Nashville planning retail district made from 21 shipping containers
OneC1TY, a healthcare- and technology-focused community under construction on 18.7 acres near Nashville, Tenn., will include a mini retail district made from 21 shipping containers, the first time in this market containers have been repurposed for such use.
| Dec 2, 2014
Main attractions: New list tallies up the Top 10 museums completed this year
The list includes both additions to existing structures and entirely new buildings, from Frank Gehry's Foundation Louis Vuitton in Paris to Shigeru Ban's Aspen (Colo.) Art Museum.
| Dec 2, 2014
Nonresidential construction spending rebounds in October
This month's increase in nonresidential construction spending is far more consistent with the anecdotal information floating around the industry, says ABC's Chief Economist Anirban Basu.
| Dec 2, 2014
Hoffmann Architects announces promotions
The architecture and engineering firm specializing in the rehabilitation of building exteriors announces the promotion of members of its Connecticut staff.
