Sales Agreement Signed with Armada/Hoffler for Bethlehem Works Project
Bethlehem Steel Corporation
For Immediate Release
BETHLEHEM, Pa., January 30, 2001 - Bethlehem Works took a major step forward today with the signing of a purchase and sales agreement by Bethlehem Steel Corporation and Armada/Hoffler Development Company of Chesapeake, Va. It will pave the way for the construction of a 12-screen cinema and retail and restaurant complex on the largest private brownfield development project in the country.
Armada/Hoffler plans to start development of the 235,000-square-foot attraction upon completion of further design, engineering and marketing work later this summer and expects to open in the spring of 2002.
"Armada/Hoffler has developed and managed many successful projects throughout the East Coast, and we are convinced that the adaptive reuse of this Bethlehem Works project will join the list of landmark developments in the East," said Anthony P. Nero, president of Armada/Hoffler. "We strongly support community restoration projects as an important good citizenship objective, and we look forward to a very special ribbon-cutting for this one."
"Bethlehem Steel's agreement today with Armada/Hoffler sets the stage for a unique and very exciting shopping, dining and entertainment experience for Bethlehem and the Lehigh Valley," said Stephen G. Donches, Bethlehem Steel's vice president of public affairs and executive in charge of the Bethlehem Works and companion Bethlehem Commerce Center developments. "We are delighted that Armada/Hoffler, with its outstanding reputation, will bring its expertise to the heart of Bethlehem Works for the benefit of our community."
The Armada/Hoffler development will encompass 60,000 square feet of new construction for a 2,500-seat, 12-screen cinema totaling 45,000 square feet with the remaining 15,000 square feet devoted to specialty shops. The cinema will face the reopened Second Street at the intersection of the newly created Founders' Way that will serve as the main entrance to the first phase of development of Bethlehem Works. Mr. Donches noted that "the streetscape and other infrastructure work currently under way by the City of Bethlehem is an important signal to those interested in Bethlehem Works that it will be ready for development." The infrastructure work will be completed by late fall of this year.
The six existing buildings being purchased by Armada/Hoffler will primarily house retail and dining. The buildings encompass 175,000 square feet of floor space. About 100,000 to 110,000 square feet will be devoted to retail; 30,000 to 40,000 square feet will be devoted to restaurants; and up to 45,000 square feet will be devoted to additional service retail, office and/or support areas. The existing buildings, formerly known within the steel plant as central tool, central tool annex and the alloy and tool steel division, will be renovated in an industrial-like setting compatible with their original construction.
Armada/Hoffler is in the final stages of discussions with national retail and specialty stores and restaurants as well as with retail and dining establishments with roots in the Lehigh Valley. "We are planning to offer a variety of national and local experiences in retail and dining to appeal to a wide range of tastes," said Armada/Hoffler's Mr. Nero. Bethlehem Steel also announced that in conjunction with the announcement, it had filed a plan to re-subdivide an adjacent area to provide increased parking to meet the expected demand from this project.
Armada/Hoffler is a leading developer of more than 10 million square feet of commercial real estate with market value in excess of $1.6 billion. In addition to development work, the company is also involved in construction and will serve as construction manager for its properties at Bethlehem Works. Design and engineering of the new construction and renovations to existing buildings are being managed by ADW Architects of Charlotte, N.C., and Keystone Consulting Engineers of Bethlehem, Pa. Project leasing is being managed by Richard Craig & Associates of Wilmington, Del.
Bethlehem Works is a mixed-use complex that will contain entertainment, recreation, retail and cultural venues on 163 acres of land owned by Bethlehem Steel Corporation on the site of its former Bethlehem plant. Master developer for the site and the contiguous 1,600-acre Bethlehem Commerce Center is Enterprise Development Company, Columbia, Md.