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Hazelwood Green will be the site of a $250 million biomanufacturing facility being proposed by the University of Pittsburgh. Pitt is spending $10 million to acquire the land needed for BioForge, as the project is known.
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Pitt gets OK to spend $10 million to buy land for Hazelwood biomanufacturing complex

University of Pittsburgh

Pitt gets OK to spend $10 million to buy land for Hazelwood biomanufacturing complex

The University of Pittsburgh has taken the first step in its bid to build a cutting-edge biomanufacturing facility for life-saving treatments at the site of an old Hazelwood coke mill.

Pitt has been authorized to spend $10 million to buy the three acres of land it needs at Hazelwood Green to build BioForge, the $250 million complex that will involve research and development of a host of treatments, including gene and engineered cell therapy.

The university board of trustees’ property and facilities committee gave the authorization Wednesday, while cautioning that the action was by no means a final step in BioForge’s development.

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Still being negotiated is a final purchase and sales agreement with Hazelwood Green master developer Tishman Speyer. Other approvals also will be needed in the future, including one for the design and construction of the complex.

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In a statement afterwards, Pitt said that the purchase “advances the shared vision to create a transformational life science ecosystem on the site that will create jobs and save lives.”

John Pelusi was the only committee member to vote against the acquisition “solely and only” because of concerns he had about a “right of first offer” provision included in the deal.

That clause, in part, would give Tishman Speyer 90 days to refuse an offer from Pitt to acquire the property or to close on the purchase within 60 days of accepting the offer.

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“I fully support the initiative and program but I believe that it adds a significant potential issue down the road,” he said.

Pitt did not elaborate when asked about the right of first offer afterwards, but stressed that work still needs to be done to get to a final agreement.

“Everything remains under negotiation and there are no fixed terms at this time. The university signed a letter of intent with Tishman Speyer and will negotiate a purchase and sale agreement next,” it stated.

In a resolution accompanying the vote, Pitt stated that the purchase will be funded through its school of medicine with help from the $100 million grant it received from the Richard King Mellon Foundation for BioForge. The grant, announced last year, is the largest in the foundation’s history for a single project.

Construction work on the Mill 19 building at the Hazelwood Green development site can be seen in this photo taken Thursday, Oct. 4, 2018, in Hazelwood.
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“The proposed development will be designed to help define Pittsburgh as an international leader in biotherapeutics by attracting industry, entrepreneurs, and investors, stimulating economic growth while creating lifesaving, life-enhancing therapies for our region and the world,” the resolution stated.

It also said the project is meant to bring economic and educational opportunities to the Hazelwood neighborhood and the region as a whole “through local partnerships and community-centered economic development strategies.”

Pitt has already reached an agreement with ElevateBio, a Cambridge, Mass.-based firm that specializes in the development of cell and gene therapies, to become the first tenant at BioForge.

As part of that 30-year pact, ElevateBio will build within the complex an 80,000-square-foot facility known as BaseCamp that will focus on the research, development, and manufacturing of cell and gene therapeutics and technologies, including gene editing.

The Hazelwood BaseCamp will be ElevateBio’s first outside of Waltham, Mass. ElevateBio plans to spend at least $35 million on the venture and related training endeavors. The goal is to start construction next year and have it completed in 2026. Pitt still must finalize a proposed lease with ElevateBio.

Overall, the Pitt BioForge complex is expected to total about 230,000 square feet. The university envisions a facility that will be able to perform the most advanced biomanufacturing processes.

The type of research and development planned, in addition to gene and engineered cell therapy, includes microneedle and other novel therapeutics and delivery technologies, and the creation of micro- and nano-antibodies.

Gene therapies could be used in treating genetic disorders for which there are currently no cures, including Parkinson’s disease and Alzheimer’s, and to help restore eyesight.

Mark Belko: mbelko@post-gazette.com or 412-263-1262.

This story was updated at 3 p.m. to include further comments from the University of Pittsburgh.

First Published: December 21, 2022, 5:16 p.m.

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Hazelwood Green will be the site of a $250 million biomanufacturing facility being proposed by the University of Pittsburgh. Pitt is spending $10 million to acquire the land needed for BioForge, as the project is known.  (University of Pittsburgh)
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