Why Rust Belt real estate development is gearing up

Royal Dutch Shell is slated to open the first large factory on the Ohio River since 1992

TRD NATIONAL /
Mar.March 31, 2019 01:00 PM

Construction in Pittsburgh, USA (Credit: iStock)

A massive chemical processing plant under construction along the Ohio River is fueling renewed real estate development in the Rust Belt region.

Royal Dutch Shell’s new 386-acre plant to produce a widely-used plastic called polyethylene will be the first major factory to open in the area since 1992, according to the New York Times.

The factory is located just 30 miles from Pittsburgh and is slated to eventually create about 600 full-time jobs. Meanwhile, a peak of about 6,000 construction workers will work on building the factory until its completion in the early 2020s.

As a result, housing construction is revving up. One local real estate company’s chairman, Charles Betters, called Shell’s plant “the best thing to happen in our region in 40-plus years.”

Betters claims his company, C.J. Betters Enterprises, is building 200 residential units and a big hotel project as a consequence of the factory.

The cost of Shell’s plant is estimated to be up to $10 billion, which reportedly makes the factory among the largest industrial projects ever constructed along the Ohio River. The state gave Shell a $1.6 billion package in reduced taxes for a 25-year period.

The project is also drawing other major companies interested in polyethylene production to the area, which is concerning environmentalists.

“Industry calls it a game changer. We see it as game over,” said Dustin White of the Ohio Valley Environmental Coalition to the Times. [NYT] – Mike Seemuth


Related Articles

arrow_forward_ios
HelloFresh’s NYC HQ (Courtesy of Industry City, HelloFresh by Eric Laignel)

HelloFresh inks Industry City deal for content studio

HelloFresh inks Industry City deal for content studio
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
A rendering of the Climate Solutions Center with Trust for Governors Island CEO Clare Newman and Mayor de Blasio (Rendering via WXY architecture + urban design/bloomimages; Governor's Island; Getty)

Going green: Governors Island could soon house climate center

Going green: Governors Island could soon house climate center
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)

Nightingale, Wafra seek $860M to redevelop 111 Wall Street

Nightingale, Wafra seek $860M to redevelop 111 Wall Street
The Real Deal founder and publisher Amir Korangy and Massey Knakal founder Bob Knakal

JLL’s Bob Knakal on the future of New York

JLL’s Bob Knakal on the future of New York
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...