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
Museums | Jun 6, 2023
New wing of Natural History Museums of Los Angeles to be a destination and portal
NHM Commons, a new wing and community hub under construction at The Natural History Museums (NHM) of Los Angeles County, was designed to be both a destination and a portal into the building and to the surrounding grounds.
Performing Arts Centers | Jun 6, 2023
Mumbai, India’s new Nita Mukesh Ambani Cultural Centre has three performing arts venues
In Mumbai, India, the recently completed Nita Mukesh Ambani Cultural Centre (NMACC) will showcase music, theater, and fine arts from India and from across the globe. Atlanta’s TVS Design served as the principal architect and interior designer of both the cultural center and the larger, adjacent Jio World Centre.
Architects | Jun 6, 2023
Taking storytelling to a new level in building design, with Gensler's Bob Weis and Andy Cohen
Bob Weis, formerly the head of Disney Imagineering, was recently hired by Gensler as its Global Immersive Experience Design Leader. He joins the firm's co-CEO Andy Cohen to discuss how Gensler will focus on storytelling to connect people to its projects.
Codes and Standards | Jun 6, 2023
California’s new power grid modernization plan furthers ambitious climate goals
California’s new $7.3 billion grid modernization plan is a crucial step in furthering its ambitious climate goals. The board of governors for the California Independent System Operator (CAISO), the state’s grid operator, recently approved a strategy to build thousands of miles of new high-voltage transmission lines.
Mixed-Use | Jun 6, 2023
Public-private partnerships crucial to central business district revitalization
Central Business Districts are under pressure to keep themselves relevant as they face competition from new, vibrant mixed-use neighborhoods emerging across the world’s largest cities.
Multifamily Housing | Jun 6, 2023
Minnesota expected to adopt building code that would cut energy use by 80%
Minnesota Gov. Tim Walz is expected to soon sign a bill that would change the state’s commercial building code so that new structures would use 80% less energy when compared to a 2004 baseline standard. The legislation aims for full implementation of the new code by 2036.
Healthcare Facilities | Jun 5, 2023
Modernizing mental health care in emergency departments: Improving patient outcomes
In today’s mental health crisis, there is a widespread shortage of beds to handle certain populations. Patients may languish in the ED for hours or days before they can be linked to an appropriate inpatient program.
Student Housing | Jun 5, 2023
The power of student engagement: How on-campus student housing can increase enrollment
Studies have confirmed that students are more likely to graduate when they live on campus, particularly when the on-campus experience encourages student learning and engagement, writes Design Collaborative's Nathan Woods, AIA.
Engineers | Jun 5, 2023
How to properly assess structural wind damage
Properly assessing wind damage can identify vulnerabilities in a building's design or construction, which could lead to future damage or loss, writes Matt Wagner, SE, Principal and Managing Director with Walter P Moore.
Cladding and Facade Systems | Jun 5, 2023
27 important questions about façade leakage
Walter P Moore’s Darek Brandt discusses the key questions building owners and property managers should be asking to determine the health of their building's façade.
