U. S. Steel Pulls Out of Mill Site Redevelopment Project
03/01/2016 - In November, United States Steel Corporation announced that it was withdrawing from plans to build a new headquarters in Pittsburgh, Pa., USA. Now, three months later, it’s backing away from a deal to redevelop an old mill site along Lake Michigan.
According to Crain’s Chicago Business, the steelmaker has parted ways with its partner developer on what would have been one of the largest real estate project in that city in decades.
The company and Chicago developer McCaffery Interests were planning to redevelop the former South Works, which closed in 1992. The nearly 600-acre site is nine miles from downtown Chicago.
The two had big plans for the site -- more than 13,500 homes, 17.5 million square feet of retail space, a new high school, 125 acres of parks and open space and a 1,500-slip marina.
However, U. S. Steel, like other steelmakers, is suffering under the ongoing market rout. As a result, the company has been idling mills, laying off workers and canceling projects.
“They've been a very responsible and good partner,” McCaffery Interests CEO Dan McCaffery told Crain’s, but “they're running a steel company, and they've run out of gas.”
The company and Chicago developer McCaffery Interests were planning to redevelop the former South Works, which closed in 1992. The nearly 600-acre site is nine miles from downtown Chicago.
The two had big plans for the site -- more than 13,500 homes, 17.5 million square feet of retail space, a new high school, 125 acres of parks and open space and a 1,500-slip marina.
However, U. S. Steel, like other steelmakers, is suffering under the ongoing market rout. As a result, the company has been idling mills, laying off workers and canceling projects.
“They've been a very responsible and good partner,” McCaffery Interests CEO Dan McCaffery told Crain’s, but “they're running a steel company, and they've run out of gas.”
