Urban Redevelopment Authority of Pittsburgh
About the URA
Showcase Projects:
Pittsburgh Technology Center
South Oakland
Between 2nd Avenue and the Monongahela River, extending west from the Hot Metal Bridge
Project Type
Research and Technology Office Park
Special Features
- Brownfield Remediation
- Tax Increment Financing
- Quality Riverfront Development
- Sites Available for Sale: 5 sites. Please contact Sean Roberts at (412) 255-6434.
Project Overview
The Pittsburgh Technology Center is a hub of innovation, application and production, where emerging technologies are shepherded from creation to implementation. The Center provides an attractively designed, high-quality environment to meet the needs of both established and new companies involved in the development or application of advanced technologies. As a means of speeding technology transfer, the University of Pittsburgh and Carnegie Mellon University have joined forces with the business community. Each university has developed an interdisciplinary research center to focus on developing and applying new technologies in the fields of biotechnology, bioengineering, artificial intelligence, robotics, and computer applications.
Built on the site of the former Jones & Laughlin Hot Strip Mill, the Technology Center reflects the old and the new in its design. High-tech buildings and generous open spaces represent Pittsburgh's evolution from a town founded on heavy industry to a city on the cutting edge of innovative research and technology. The project's master plan calls for the creation of a campus-like setting combining a riverwalk, tree-covered walkways, and a greensward consisting of a variety of grasses and wildflowers.
Background and Summary
The Park Corporation purchased the 48-acre site located along the northern side of the Monongahela River when the mill ceased operations. The Urban Redevelopment Authority of Pittsburgh (URA) purchased the site from the Park Corporation in 1983.
The Urban Land Institute's Panel Advisory Service, sponsored by the URA in November, 1984, evaluated the site, its market potential and the overall development strategy for the project. The panel concluded that the site has excellent potential for development as a center for advanced technology, if developed to a high standard of design and construction.
The URA has completed a number of site improvements including roadway construction, access enhancement, signalization, and site preparation.
The University of Pittsburgh has developed the Center for Biotechnology and Bioengineering, an industry affiliated research and development facility, closely related to the research underway on the university's campus and health center and directed by Dr. Jerome Schultz. The facility was financed by a $14 million grant from the State Department of Education. Construction of this 91,000-square-foot building was completed in the spring of 1993.
Carnegie Mellon University has developed a new home for its highly regarded Carnegie Mellon Research Institute, directed by Dr. William Kaufman. The Institute includes four research groups: Advanced Devices and Materials; Biotechnology; Industry Systems; and, Computer Automation and Robotics. In addition, the Institute is home to three dedicated projects for the following organizations: the American Society for Testing and Materials; Steel Structures Painting Council; and, the Electric Research Institute, as well as research into art materials and papers. The development of this facility was funded through a $17 million grant from the State of Pennsylvania through the City's "Strategy 21" program for economic development. Construction of this 87,000 sq. ft. building was completed in early 1995.
The Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) has developed a regional headquarters facility for Union Switch & Signal Corporation to house the company's research and engineering activities. Union Switch & Signal is a world leader in the design and manufacture of transit switching systems. The company is responsible for innovations ranging from the track circuit to automatic block signaling and computer-aided dispatching systems. The Design Alliance designed the 175,000 square foot facility. The RIDC completed the building in February 1995. The total investment in this project is $20.5 million and was financed through a combination of public and private sources.
The URA has developed a five level parking garage to accommodate Union Switch & Signal's parking needs in conjunction with RIDC's building development. A team headed by WTW Architects designed the 174,000 square foot facility which was completed in early 1995. The URA utilized Tax Increment Financing (TIF) to develop this facility, a mechanism where property taxes generated by the development of the Union Switch & Signal building are used to retire a revenue bond used to construct the garage. The total development cost of this facility was $7.5 million.
RIDC completed construction of a multi-tenant building at the far western end of the site in November of 1996. The 68,000 square foot facility, known as 2000 Technology Drive, is occupied by a combination of high technology industry support agencies including the High Technology Council, the Southwestern Pennsylvania Industrial Resource Center, the Ben Franklin Technology Center and the Enterprise Corporation and a number of advanced technology companies.
In 1997, the Pittsburgh Economic and Industrial Development Corporation (PEIDC) developed an 80,000 square foot building to house the Polypropylene Business Unit of Sunoco Chemical Corporation. The total project cost was approximately $16 million.
TelCove (formerly Adelphia Business Solutions) is located in a 30,400 square foot, facility at the eastern end of the Pittsburgh Technology Center, between the University of Pittsburgh's Center for Biotechnology and Bioengineering and the Hot Metal Bridge. TelCove is a provider of local telecommunications services over state-of-the-art fiber optic networks in selected markets within the United States. Their $4.4 million facility will house general office space and telecommunications switching and transmission equipment. It was completed in January, 2001.
The Ferchill Group, a Cleveland-based developer, completed construction of a 153,000 square foot, multi-tenant office building at the eastern terminus of the Pittsburgh Technology Center in February, 2002. Cellomics, one of the region's fastest growing biotechnology firms is the major tenant for this facility, known as Bridgeside Point. It is home for their corporate offices, wet laboratory and assembly space.
Construction of the public open spaces at the Center was completed in 1996. These included the development of the two public plazas, entry landscaping, signs, various pedestrian amenities, and planting along the riverfront.
In June 2000, the Monongahela Connecting Bridge was opened to vehicular traffic. This important connection allows for the expansion of the Pittsburgh Technology Center across the Monongahela River to the 110-acre South Side Works site. Funding is being sought to convert the adjacent Hot Metal Bridge to a pedestrian/ bicycle way.
Currently, the URA is working on a new master plan and zoning regulations that will allow an additional 1,000,000 square feet of development onsite. The new development will be supported by 3 new parking garages. In order to finance the new garages, the URA is working with the local taxing bodies to approve a Tax Increment Financing Plan.
The URA approves all development proposals and land disposition contracts, procures public funds for the project, and can help arrange financing for businesses moving to the site.
FINANCING
In excess of $25 million has been committed to meet the public development costs of the Center from the following sources:
| PA Department of Commerce | $10,000,000 |
| PA Department of Community Affairs - Strategy 21 Plan | $ 8,300,000 |
| City of Pittsburgh | $ 2,300,000 |
| Urban Redevelopment Authority of Pittsburgh | $ 1,500,000 |
| Pittsburgh Water and Sewer Authority | $ 2,900,000 |
| Private Foundations | $ 300,000 |
| TOTAL | $25,300,000 |
| University of Pittsburgh
Center for Biotechnology and Bioengineering |
$14,000,000 |
| Carnegie Mellon University
Carnegie Mellon Research Institute |
$ 17,000,000 |
| Union Switch & Signal Corporation | $ 20,500,000 |
| Union Switch & Signal Corporation Parking Garage | $ 7,500,000 |
| 2000 Technology Drive (Multi-Tenant Facility) | $ 8,000,000 |
| Aristech Chemical Corporation (now Sunoco) | $ 16,000,000 |
| Adelphia Business Solutions (now TelCove) | $ 4,500,000 |
| Bridgeside Point | $ 20,500,000 |
| TOTAL | $104,000,000 |
Project Benefits
The Pittsburgh Technology Center is a state-of-the-art riverfront office park and a regional center for research and development. It is a nationally recognized example of brownfield reclamation and the first project in Pennsylvania to use tax increment financing. The site currently generates more than $1 million in annual local tax revenues.
Key Dates and Aspects
- In 1983 the URA purchased this 48-acre site, a former Jones & Laughlin Hot Strip Mill, from the Park Corporation.
- In 1984 the URA sponsored the Urban Land Institute's Panel Advisory Service to determine the highest and best use for the site. A high quality technology research and office park was recommended.
- In 1993 construction of the first building, the University of Pittsburgh Center for Biotechnology and Bioengineering, began. Significant public subsidy from the State was required.
- In 1995 the URA issued the first Tax Increment Financing Project in Pennsylvania to assist with the development of the parking garage to support the location of Union Switch & Signal to the site. The higher than anticipated tax revenues generated at the site allowed the URA to repay the $5,510,000 in TIF bonds a full twelve years earlier than their scheduled maturity date. Since the bonds were retired, the site now generates $1,078,331 in annual local tax revenues.
- In 2002 the most recent building, Bridgeside Point, was completed. Public subsidy of less than 15% (in the form of low interest loans) was required.
- 2006 - New master plan, design guidelines and TIF Plan approved for denser development onsite.