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Serious Business
By Tim McNellie
How South Fayette finally became a hotspot for commercial development
Six years ago, South Fayette’s board of
commissioners met with the school board in
an attempt to solve a growing problem. At
that time, wave after wave of new housing
developments were drawing hundreds, even
thousands, of new families to the township.
More people meant more demand for
township services, everything from extra
police resources to additional library services
and public works. And with the influx of
more families came children, often in
bunches of two, three, and four. Before long,
those kids were in school, filling up
classrooms that were already near-capacity,
and filing into double-wide trailers once the
regular rooms were full.
All of that growth might not have been
an issue if the township and school tax bases
were being bolstered at a corresponding rate.
But while the owners of those new homes
did contribute real estate and earned income
taxes, the sheer volume and pace of growth
was putting a strain on budgets, especially
that of the school district. What South
Fayette really needed was more commercial
development: stores, offices and light
industrial sites – the kind of growth that
contributes mightily to the tax base but
doesn’t require hiring more teachers and
librarians.
All of that growth might not have been
an issue if the township and school tax bases
were being bolstered at a corresponding rate.
But while the owners of those new homes
did contribute real estate and earned income
taxes, the sheer volume and pace of growth
was putting a strain on budgets, especially
that of the school district. What South
Fayette really needed was more commercial
development: stores, offices and light
industrial sites – the kind of growth that
contributes mightily to the tax base but
doesn’t require hiring more teachers and
librarians.
“What we’re doing is balancing the
budget on the backs of home owners,”
a school board member complains. “We
don’t have the benefit of developments
like The Pointe in North Fayette.”
So South Fayette’s two governing
bodies met to discuss the outlook
regarding commercial development.
The prognosis was felt to be okay,
but not spectacular. Conventional
wisdom said that the township’s
geography and infrastructure could
attract some professional offices –
doctors, accountants, and lawyers –
and perhaps even another office park
development like Abele and Bursca,
but South Fayette shouldn’t expect a
Wal-Mart or similar large-scale
project. After all, hilltops and twolane
roads just don’t attract big
commercial developers.
“While a professional office is not
Wal-Mart, K-Mart or even
McDonald’s [able to contribute heavily to the
tax base], it doesn’t have school kids, and
does have economic value,” said one official
attending the meeting, trying to make the
best of an otherwise difficult situation.
Six years later, South Fayette still has no
Wal-Mart. But the township might be
getting something better, and could be on
the verge of a major commercial development
breakthrough.
The Newbury development – a $160
million, 300-acre commercial and residential
project at the site of the old Reichold plant
on Presto-Sygan Road – is poised to push
South Fayette out of the “bedroom
community” category
and into the
realm of “regional
destination.” Often
compared to the
Waterfront in
Homestead,
Newbury will bring
nearly 900,000
square feet of highend
retail, restaurant,
and commercial
space to a chunk of
waste land.
Along with 3,500 construction
and 2,100 permanent jobs, the
development will provide $2.5 million in net
revenue to the township in its first 10 years,
according to Brett Malky, President of EQA
Landmark Communities, one of the
developers in the project. The school district
will see $29 million in net revenue.
“We’re going to be among the best
representations of quality construction and
quality design, not only in South Fayette
and Pennsylvania, but in the country,”
Malky says.
Landing Newbury is a major coup for the
township. But what might be just as exciting
is that it’s stirring up additional interest in
the township. For a while, South Fayette was
like the job applicant who can’t get hired
because he lacks experience, and can’t get
experience because no one will hire him;
developers don’t want to risk investing in an
area that doesn’t already attract people. But
now the township is getting more phone calls
and holding more meetings with companies
who want to build here. Township manager
Mike Hoy estimates that in the last 12
months, 75 percent of the developmentrelated
meetings he’s attended have been
about commercial projects. (The push for
new houses, once red-hot, has slowed
considerably, though there are still plenty
of available lots around town from
large-scale approvals made five, seven, and
even 10 years ago.)
“With Newbury moving closer to reality,
other people are starting to see the value of locating in South Fayette,” Hoy says. “There’s a lot of discussion and a lot of interesting projects coming together, and much of
that is because of Newbury. People are saying, ‘This is an up-andcoming
place.”
What’s Coming to Newbury?
When the Newbury development has its grand opening in
late 2009, it’s going to be a big event for the township.
But the question on the minds of many is, what will the
finished project look like?
Newbury is actually two separate projects, one
commercial and one residential. The commercial side,
dubbed “Newbury Market,” will occupy 104 acres on the
old Reichold site off Presto-Sygan Road, and create about
900,000 square feet of commercial and retail space,
including 55,000 for a grocery store.
What kinds of stores and restaurants will it attract?
“There won’t be a McDonald’s or a Burger King,” said
Eric Newhouse, project director for EQA, at a town
meeting back in the fall. “We want a great Mexican
restaurant, or a great chop house, or great seafood.”
There have been talks with a few popular local restaurants
and chefs, including one who floated the idea of a
bakery/sandwich shop. There have also been discussions
with hotels and banks.
The physical layout will create the sense of a
downtown area, Newhouse said, a pedestrian-friendly
space with gathering places where people can spend time,
enjoy a meal, and meet with friends.
The residential portions will include 200 single-family
homes, along with multi-family rental units that would
lease for $1,000 to $3,000 per month. The living area will
evoke a rural village where the homes have front porches
and people can get out and interact with their neighbors.
Both residents and township officials have been concerned
about the traffic implications of such a large development.
There will be plenty of changes to local roads, including:
• At 50 and Washington Pike — Two left-hand turn
lanes to get onto Route 50 from Washington Pike.
• Two left-hand turn lanes off route 79 south.
• A traffic signal at the intersection of Presto-Sygan and
Millers Run Roads.
• A traffic signal at the intersection of Presto-Sygan and
Oakridge Roads.
Cost: $160 million
Total size: 300 acres
Completion date: 2009
A look at some of South Fayette’s upcoming developments
reveals the extent of interest in the area:
South Fayette Crossing
A team of developers wants to turn the land at the intersection of
Millers Run Road and Route 50 into a small shopping plaza called
South Fayette Crossing. The finished product would have about
20,000 square feet of retail space divided into five or six store fronts. They’re awaiting approval from state and federal transportation officials
on a plan for the plaza to access Route 50.
The old water treatment plant on Presto-Sygan Road has turned
into a warehouse and office facility called Allegheny Place. A second
phase of that project will create a facility for the Collier-based
construction firm Deklewa.
Alpine Point
Plans are being finalized to turn a large piece of land off Alpine Road
into a 250,000-square-feet business park called “Alpine Point.” The
board of commissioners approved the project, but with certain
controversial conditions regarding traffic and zoning issues. The
developer has appealed to county court, where both sides await a
hearing.
Bursca Business Park
Located off of Washington Pike, Bursca may soon expand. Once
considered a light industrial park, the site has taken on more of a
business image in recent years and is poised to grow.
Abele Business Park
Another development attracting interest is Abele Business Park,
located immediately off the Bridgeville Exit of Interstate 79. It is a
uniquely designed development consisting of class A-type
contemporary one- and two-story office buildings coupled with
build-to-suit and land sale opportunities.
The development includes high-quality landscaping and an
upscale, 100 percent office and flex-space facilities, which together
project a campus-like setting.
The first two or three buildings are slated for completion in
early 2009. There is also strong interest, says Marcy Reid Kelly,
leasing manager of Secon Corporation, the developer, in building a
high-end hotel.
Start Date: Later this summer
Overall development completion date: Next 10 years
The Washington Pike Overlay District
This development permits the single-family homes in that corridor
to be converted to small offices, is also beginning to attract
attention. Though nobody has bought yet, the township is beginning
to receive inquiries.
A developer is also indicating an interest in building a five-story
Hampton Inn behind the Knights Inn property off Route 50.
While Newbury is helping spur interest in the township, much of
the credit must go to local leaders, including the commissioners and
school directors who, in 2003, adopted a series of tax incentives for
new commercial construction. Along with drawing new development,
the program is also boosting revenues from issuing building permits,
and levying service fees and occupational privilege taxes. Similarly,
township officials have made themselves available to just about anybody
who expresses an interest in putting a business in South Fayette.
“Our regulations and ordinances have been geared to promote
quality business growth,” Hoy says. “It’s an attempt to tell business that
we want them here, and we’re receiving interest from businesses that
aren’t transient, but quality businesses who want to stay here.”
County Executive Dan Onorato
acknowledged that he
inadvertently picked one of the
greyest, windiest, and most
bone-chillingly cold days of the
year to hold an outdoor press
conference at the Newbury
Market site, “but it’s a good day
for South Fayette,” he told
onlookers as bulldozers and
backhoes re-arranged the earth
on the near horizon. “Look at
the size of this site and imagine
what will soon be here.” When
the project is finished it will be
one of the largest abandoned
brown fields to put back onto the
tax rolls. A formal groundbreaking
will be held this spring.
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Home Remodeling 2008
