Plans For U.S. Steel Site Show New Billion-Dollar Development, Potential For Thousands Of Jobs

The developer purchasing the bulk of the massive U.S. Steel site in Falls Township revealed their plans to the public Tuesday evening.

In short, industrial developer NorthPoint Development, of Kansas City, plans to turn large portions of the site into logistic facilities that would create thousands of jobs, according to Jed Momot, the chief strategy officer for firm.

The project – termed the Keystone Trade Center – has the potential to add 5,000 to 10,000 jobs and 15 million square feet of new warehouse space, with a total development cost of $1.5 billion, according to an early master plan made public, a slide deck presented to the Falls Township Planning Commission read.

Momot said the development would be the largest of its kind along I-95.

“It’s an ideal regional location,” he said, pointing to the numerous highways that are close to the site.

NorthPoint Development plans to purchase about 1,800 acres of the U.S. Steel site and Keystone Industrial Port Complex, which includes numerous industrial and manufacturing companies and the deep water international port and terminal that is operated by Kinder Morgan. The terms of the deal have not been made public.

The massive sale of property is set to close in December.

U.S. Steel and a handful of other companies will continue to own and lease sites within the property and maintain their operations.

Momot explained the NorthPoint Development plans to hold the property and has no intention to flip it.

Within the coming weeks, the developer plans to bring a plan for several buildings, totalling 1.5 million-square-feet of space, before the township. More plans are in the works for down the road.

The developer plans to construct new warehouses ranging in size from 200,000 square feet to up to 2 million square feet on open space at the property. Some buildings could be as high as 100 feet if needed. NorthPoint Development also plans to refresh roadways and rail lines, Momot said.

The site has more water capacity and electric service than expected to be needed. Momot called the infrastructure “way overbuilt” and said they plan to downsize systems, some of which date to the 1950s and 1960s.

The developer has not confirmed any companies coming to the site, but NorthPoint Development has previously worked with Home Depot, Staples, Walmart, Amazon, FedEx, XPO Logistics, Chewy.com, General Motors, and Ulta.

Momot said the company is experienced with similar large projects and would tailor facilities to specific companies.

“Our vision is to create a Class-A industrial park and completely redevelop what is out there today,” Momot said.

The U.S. Environmental Protection Agency stepped in and placed a Resource Conservation and Recovery Act consent order on the site in 1993. U.S. Steel, which used the site for its massive Fairless Works facility, is required to remediate the property under the order. So far, 70 percent of the site has been cleaned up by the steel giant, and NorthPoint Development plans to invest $25 million to complete the 30 percent of the site so the consent order can be lifted, Momot said.

Attorney Michael Meginniss of Begley, Carlin, and Mandio, who was representing NorthPoint Development, has said the developer looks forward to presenting the project to the township and public as it progresses.

The planning commission, which was only hearing the initial overview, seemed pleased with the proposal and looked forward to reviewing a formal plan.

The site NorthPoint Development is purchasing has the third largest property tax assessment in the Pennsbury School District, according to budgeting documents. The only two larger property owners were Waste Management and the firm that owns the shopping center off Oxford Valley Road across from the mall.

Opened in 1952, the U.S. Steel Fairless Works complex was home to a steel mill, a coke (fuel used in the steel making process) production plant, steel making and forging operations, a powerhouse, and chemical plant. By the 1970s, more than 5,000 people worked at the site. As the years wore on, U.S. Steel slashed thousands of positions and in 2001 closed the majority of the site. The company still finishes cold-rolled steel products made at western Pennsylvania plants for use in the automotive, home construction, appliance, and metal building industries at the facility. By 2009, about 100 U.S. Steel employees worked at the facility as the company continued demolishing buildings that were unused.

The early success of the facility helped grow the area and drew families to Bucks County. The U.S. Steel Fairless Works location was named after company executive Benjamin Franklin Fairless. He was the namesake for the Fairless Hills sections of Falls and Bristol townships.

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