REQUEST FOR INFORMATION (RFI)

Sale & Redevelopment of SCI Pittsburgh

3001 Beaver Avenue, Pittsburgh, PA 15233

Allegheny County, Pennsylvania

1. Background

The Pennsylvania Department of General Services (DGS), on behalf of the Commonwealth of

Pennsylvania (“Commonwealth”), is issuing this Request for Information (RFI) to assess market interest in the potential sale and redevelopment of the Commonwealth-owned State Correctional

Institution (SCI) Pittsburgh, located at 3001 Beaver Avenue, Pittsburgh, Pennsylvania (“Property”).

The Commonwealth seeks to identify developers with interest in, and the capacity to undertake, acquisition and redevelopment of the Property in its present, pre-demolition as is, condition in a financially sound, community responsive, and high-quality manner.

The Property consists of approximately 21.691 acres with 42 structures. It is zoned RIV – Riverfront

Zoning District and is located along the Ohio River in Pittsburgh’s Marshall-Shadeland neighborhood. The site operated as a state correctional institution until its permanent closure in

2017.

This RFI is not a formal solicitation and will not result in the award of a contract or real estate transaction. Should the Commonwealth decide to proceed with a disposition or redevelopment initiative, a separate Request for Proposals (RFP) or other formal procurement will be issued.

Participation in this RFI neither guarantees nor precludes participation in any future solicitation.

Note: The Commonwealth does not currently have, and may not receive, legislative authority to directly convey (sell) the Property to a specified buyer. This RFI is solely intended to gauge interest in feasible redevelopment approaches.

2. About the Property

• Address: 3001 Beaver Avenue, Pittsburgh, PA 15233 (Allegheny County)

• Location: East bank of the Ohio River in the Marshall-Shadeland neighborhood

• The Property has been listed as a historic district on the National Register of Historic Places since 2018. The Pennsylvania State Historic Preservation Office (SHPO) is currently conducting a historic mitigation study, which may recommend establishing a memorial area recognizing the Property’s historical significance.

• In June 2023, Michael Baker International completed a Land Use Feasibility Study for DGS recommending full demolition as the preferred method of disposal and proposing that approximately 5.2 acres along the riverfront trail be dedicated as public parkland. The full report and appendices are posted to the DGS Website at: SCI Pittsburgh Land Use

Feasibility Study | Department of General Services | Commonwealth of Pennsylvania or available upon request.

The following sections are summaries of key findings from the Michael Baker Land Use Feasibility

Study completed June 2023:

Land Use Feasibility Summary: SCI Pittsburgh / Western State Penitentiary

This document summarizes the findings of the Land Use Feasibility Study prepared by Michael Baker International (June 2023) for the DGS. The study evaluates the highest and best use of the Property to support its conveyance via competitive bidding under the authority of Act 24 of 2022.

Property Overview & Current Status

The Property comprises approximately 21.7 acres along the eastern bank of the Ohio River in the Marshall-Shadeland neighborhood, roughly 2.5 miles northwest of Downtown Pittsburgh. The site contains 42 vacant buildings and structures totaling over 550,000 square feet, enclosed by a 25-foot perimeter wall. The facility was permanently closed in 2017.

• Zoning: The entire site is zoned Riverfront-General Industrial (RIV-GI) by the City of Pittsburgh. This zoning accommodates general and heavy industrial uses, prohibits residential development, and requires a 125-foot riparian buffer setback from the river.

• Historic Status: The Property was listed on the National Register of Historic Places in 2022, with 24 contributing resources (including the Main Penitentiary Building). While this allows for potential historic tax credits, stakeholder consensus strongly favors demolition to remove the site's incarceration legacy.

Public Utilities

The Property is serviced by all major public utilities, providing a strong foundation for future industrial redevelopment. Key providers include Duquesne Light Company (electric), Pittsburgh Water & Sewer Authority (water, wastewater, and stormwater collection), Allegheny County Sanitary Authority/ALCOSAN (wastewater treatment), Peoples (natural gas), and telecommunications providers Verizon and DQE Communications.

Electric: Duquesne Light Company serves an 817-square-mile territory across Allegheny and Beaver Counties, including the SCI-Pittsburgh property, which is adjacent to DLC’s Preble Service Center. The site contains a Commonwealth-owned power substation (located in the Correctional Industries area) with primary service provided at 23kV. Notably, the current electrical grid would require upgrades to support major reuse.

Wastewater & Stormwater: The Pittsburgh Water & Sewer Authority operates a separated system that collects and conveys wastewater and stormwater to ALCOSAN’s 59-acre treatment plant. The site’s Sewage Pump House (Building #31) connects to ALCOSAN’s deep tunnel interceptor near https://www.pa.gov/agencies/dgs/programs-and-services/real-estate/sci-pittsburgh-land-use-feasibility-study https://www.pa.gov/agencies/dgs/programs-and-services/real-estate/sci-pittsburgh-land-use-feasibility-study

Westhall St., which will eventually be abandoned as part of ALCOSAN’s Regional Tunnel System project. Public water is also provided through the Pittsburgh Water & Sewer Authority.

Telecommunications: Verizon provides 5G Ultra Wideband and 4G LTE/5G Nationwide wireless broadband to the area. DQE Communications provides fiber optic connectivity to businesses ALL THAT CERTAIN tract or piece of land being composed of two contiguous lots or pieces of ground, being Lots Nos. 87 and 88 on the Plan of Lots laid out by Jacob K. Shenk, situate in the Borough of Millersville, formerly

Manor Township, County of Lancaster and Commonwealth of Pennsylvania, on the East side of George Street also known as North George Street, and having thereon erected a two (2) story brick dwelling house with two story brick attachment, with three (3) apartments and other improvements known as No. 28 North George Street, bounded and described as follows, to wit:

CONTAINING in front on the East side of said North George Street, sixty (60) feet, and extending in depth of that width Eastward two hundred forty-five (245) feet, more or less, to a fourteen (14) feet wide alley.

BOUNDED on the North by property now or late of A. H. Howard; on the East by said fourteen (14) feet wide alley; on the South by property now or of the Millersville State Normal School, and on the West by said North George Street.

Being the same parcel of land conveyed by the General State Authority to the Commonwealth of Pennsylvania by deed dated June 16, 1989, and recorded at the Office of the Recorder of Deeds of Lancaster County at Book 4186, Page 609 (Parcel 41).

Also being the same parcel of land conveyed by Student Services, Inc., to the General State Authority by deed dated November 3, 1966 and recorded at the Office of the Recorder of Deeds of Lancaster County at Book E-56, Page 1032.

Known as 28 North George Street, Tax Parcel Number 4405190400000. Natural Gas: Peoples provides natural gas service to the property.

Utility Removal (Demolition): For demolition purposes, all public utility service connections are to be removed back to the nearest connection point at the public street and capped for future site access. Stormwater systems will be infilled with compacted aggregate. Electrical service (underground and overhead), site lighting, and pad/yard-mounted equipment will also be removed.

These utility removal costs are incorporated in the demolition estimates provided in Appendix B.

Market Demand & Highest and Best Use

Extensive market analysis and stakeholder engagement (including the City of Pittsburgh, local neighborhood groups, and adjacent industrial users like ALCOSAN and Duquesne Light) concluded that the highest and best use for the property is Industrial Redevelopment supported by a Riverfront Public Park.

• Industrial Demand: The North Pittsburgh submarket has a severe shortage of "pad-ready" industrial sites. Market indicators suggest the site could absorb approximately 100,000 square feet of new industrial space per year.

• Unviable Uses: Retail, office, and residential uses are considered unviable due to the surrounding heavy industrial context, lack of roadway visibility, and zoning prohibitions.

• Development Scenarios: The study models a "shovel-ready" site yielding between 371,000 and 616,000 square feet of modern industrial/manufacturing space, depending on the final site configuration and parking requirements.

• Public Amenity: Approximately 5.2 acres along the riverfront are recommended to be dedicated as a public park, enhancing the existing Three Rivers Heritage Trail and satisfying community desires for river access.

Redevelopment Alternatives Analysis

The feasibility study evaluated three conveyance alternatives to determine the highest return on investment for the Commonwealth and the local community.

Alternative 1: "As-Is" Conveyance

The property is sold in its current state, transferring all demolition ($32.5M+) and environmental remediation liabilities to the buyer.

• Conclusion: Deemed highly unlikely to attract institutional capital. The timeline and risk associated with achieving a pad-ready state would make project proformas unfinanceable.

Alternative 2: Partial Demolition (Retain Main Penitentiary)

The Commonwealth demolishes 39 buildings but retains the historic Main Penitentiary Building, North Wall, and Guard Towers.

• Conclusion: Saves approximately $13 million in demolition and flood mitigation costs (the Main Building acts as a flood and groundwater barrier). However, retaining the massive, deteriorating structure severely limits site layout efficiency and relies on uncertain, long-term leasing by the film industry.

Alternative 3: Full Site Demolition (Recommended)

The Commonwealth funds and executes full site demolition, hazardous materials abatement, and Act 2 environmental clearance prior to conveying a "pad-ready" site to a developer.

• Conclusion: This is the recommended alternative. It maximizes the developable acreage (yielding up to 616,000 SF of industrial space), eliminates developer completion risk regarding legacy liabilities, and aligns with the strong market demand for clean industrial land.

Demolition & Site Preparation Costs

Achieving the recommended "shovel-ready" state under Alternative 3 requires significant upfront capital investment. A Class 4 Opinion of Probable Cost estimates the following:

Cost Category Estimated Cost

Notes

Base Demolition & Abatement

~$32.5 Million

Includes asbestos/lead abatement, structural demolition, hauling, and utility capping.

Cost Category Estimated Cost

Notes

Floodplain Mitigation (Fill)

~$3.9 Million

Required to raise the 16.5-acre industrial development pad above the FEMA Special Flood Hazard Area (SFHA) once the Main Penitentiary Building (which currently acts as a floodwall) is removed.

Total Estimated Site Prep

~$36.4 Million

Excludes potential groundwater treatment systems if demolition alters subsurface hydrology.

Strategic Takeaways for Developers

For institutional developers evaluating an acquisition opportunity, the SCI Pittsburgh site represents a premier urban-infill industrial play, contingent upon the Commonwealth delivering the site in a pad-ready condition. DGS may dispose of the site through the existing legislation for competitive bidding (Act 24 of 2022), new legislation to convey to a specific entity, or convey to a redevelopment authority if the property qualifies as a blighted property.

1 Zoning & Entitlements: The RIV-GI zoning provides a clear, by-right path for industrial development, though developers must navigate the 125-foot riparian buffer and strict surface parking maximums (which may necessitate structured parking or mobility trust contributions).

2 Community Alignment: A successful proposal must incorporate local job creation/training initiatives and collaborate with the City on the 5.2-acre riverfront park dedication.

3 Liability Clearance: Developers should require the Commonwealth to secure an Act 2 Relief of Liability for the site prior to closing, ensuring legacy environmental risks are extinguished.

Environmental Due Diligence Summary: SCI Pittsburgh / Western State Penitentiary

This document summarizes the environmental conditions, hazardous materials, and recommended remedial actions for the Property, based on the Phase I Environmental Site Assessment (ESA), Phase II ESA, Supplemental Phase II Investigation, and Hazardous Materials Survey conducted by Rhea Engineers & Consultants, Inc. between September 2022 and April 2023.

Executive Overview

The ~21.7-acre subject property has operated as a correctional facility and industrial site since the late 1800s. The site contains 42 buildings and structures, many of which are in poor condition and have been vacant since 2017. Environmental due diligence indicates that while soil contamination is generally limited and manageable, groundwater contamination (specifically VOCs) and widespread hazardous building materials (asbestos, lead paint, mold, and universal wastes) present material redevelopment costs and liabilities.

The property is currently being evaluated under the assumption of a "shovel-ready" conveyance, which would require full site demolition and environmental remediation to achieve Act 2 Land Recycling Program clearance for non-residential (industrial) use.

Soil Conditions

Extensive soil sampling across the site indicates that historical industrial activities have not impacted site soils to an extent that would prohibit future earth-disturbing activities.

• Volatile Organic Compounds (VOCs): No soil samples collected during the subsurface investigations contained VOCs at concentrations above the Pennsylvania Department of Environmental Protection (PADEP) Act 2 Non-Residential Statewide Health Standards.

• Metals: Elevated levels of manganese and lead were detected in isolated surface soil samples (e.g., SB-02A, SB-07A, SB-08A, SB-11). The presence of manganese is largely attributed to natural processes, while lead detections are likely related to historical industrial activity.

Recommendations for Soil: No active soil remediation is recommended. However, a Health and Safety Plan (HASP) and a Soil Management Plan (SMP) must be developed to manage exposure to manganese and lead during future earth-disturbing activities. If the site is developed with paved surfaces (e.g., industrial parking or slabs), the pavement will act as an effective cap.

Groundwater Conditions & Vapor Intrusion Risk

Groundwater impacts are the primary subsurface environmental concern at the property, driven by historical on-site industrial operations, including laundry/dry-cleaning facilities, power plants, and machine shops.

• VOC Contamination: Tetrachloroethene (PCE) and its daughter products, Trichloroethene (TCE) and cis-1,2-Dichloroethene (DCE), were detected in multiple monitoring wells in the central and north/northeastern portions of the site at concentrations exceeding Act 2 standards (5 µg/L). Notably, PCE was detected at 634 µg/L in well MW-01A.

• Metals in Groundwater: Arsenic, iron, and manganese were detected above Act 2 standards. Arsenic presence may be related to historical coal ash from the on-site power plant, while iron and manganese are naturally occurring.

• Vapor Intrusion: Because PCE and TCE concentrations in shallow groundwater exceed the Medium Specific Concentration (MSC) for vapor intrusion, there is a complete pathway for vapor intrusion into any future buildings constructed over or within 100 feet of the plume.

Recommendations for Groundwater:

1 Deed Restrictions: Implement institutional controls prohibiting the use of groundwater at the site.

2 Vapor Mitigation: Future building designs must incorporate engineering controls, such as active or passive vapor mitigation systems (e.g., sub-slab depressurization), to address potential indoor air quality impacts.

3 Surface Water Protection: While current data does not show VOCs migrating into the adjacent Ohio River, the demolition of the Main Penitentiary Building (which currently acts as a deep foundation barrier) could alter groundwater flow. Further monitoring may be required to ensure contaminated groundwater does not reach the river post-demolition.

Hazardous Building Materials

A comprehensive Hazardous Materials Survey of the 43 structures on site identified significant abatement requirements prior to any demolition or renovation activities. The estimated cost for asbestos abatement alone is approximately $1.03 million.

Hazard Category

Findings & Extent Required Actions

Asbestos- Containing Material

(ACM)

Identified in 17 structures. 30 materials confirmed as ACM via lab analysis; 7 presumed ACM.

Abandoned underground tunnels are presumed to contain ACM.

Must be abated prior to demolition in accordance with NESHAP and local regulations. Requires formal abatement drawings and specifications.

Lead- Containing Paint (LCP)

Due to the age of the structures, all painted surfaces are classified as LCP under OSHA definitions.

Widespread peeling and deterioration observed.

Contractor must implement OSHA worker safety protocols during demolition/renovation. Proper disposal of LCP debris is required.

Mold & Water Damage

Present in all structures due to severe roof deterioration and water infiltration since the facility's closure.

Requires worker protection during demolition.

Universal Wastes & Other Hazards

~7,300 fluorescent light bulbs (potential mercury); ~3,650 light ballasts (potential PCBs); ~100 thermostats (mercury); ~123 exit signs (tritium); ~45 smoke detectors (Americium-241).

Must be segregated, handled, and disposed of at licensed recycling/disposal facilities per EPA Universal Waste and TSCA regulations.

Conclusion & Liability Management

For an institutional developer, the environmental profile of the Property is typical of a legacy heavy-industrial/institutional riverfront property. The primary cost drivers will be the abatement of hazardous building materials prior to demolition and the installation of vapor mitigation systems in new vertical construction.

It is assumed that the Commonwealth (or a designated public entity) will enter the site into the PADEP Act 2 Voluntary Cleanup Program to secure a Relief of Liability prior to conveyance. This liability protection will extend to the future buyer, mitigating long-term environmental risk provided that the required institutional controls (groundwater use restrictions) and engineering controls (vapor barriers, soil management plans) are maintained.

Real Estate Appraisal Summary: SCI Pittsburgh / Western State Penitentiary

This document summarizes the MAI-certified real estate appraisal prepared by Advantage Real Estate Advisors (May 2, 2023) for the former State Correctional Institution (SCI) – Pittsburgh property. The appraisal was commissioned to determine the current market value of the fee simple estate to support the Commonwealth’s disposition strategy under Act 24 of 2022.

Valuation Conclusion & Premise

The appraiser concluded a current market value of $3,000,000 for the fee simple estate of the subject property, with an effective date of March 26, 2023.

Crucially, this valuation is predicated on a specific Hypothetical Condition: The property is appraised as a "shovel-ready" vacant industrial development site.

This hypothetical condition assumes that prior to conveyance:

1 All 42 existing buildings and structures have been fully demolished and removed.

2 All necessary environmental remediation and hazardous materials abatement (asbestos, lead, etc.) have been completed.

3 Clean fill has been imported to raise the 16.5-acre developable portion of the site above the Special Flood Hazard Area (SFHA) with a 1-foot freeboard.

4 The site has been legally subdivided into two parcels, bisected by the Three Rivers Heritage Trail.

Note: The "As-Is" value of the property (including the existing deteriorating structures and environmental liabilities) was not quantified in this report, but the Land Use Feasibility Study indicates that the cost of demolition and remediation (~$36.4M) far exceeds the stabilized land value.

Highest and Best Use

The appraisal evaluated the legally permissible, physically possible, and financially feasible uses for the site. Because the property is being appraised as a vacant, shovel-ready site, the "Highest and Best Use As Improved" is not applicable.

Highest and Best Use "As Vacant": The maximally productive use of the site is a bifurcated development strategy:

• Industrial Redevelopment: 16.5 acres dedicated to modern industrial/manufacturing use, aligning with the site's Riverfront-General Industrial (RIV-GI) zoning and strong regional market demand.

• Public Park: 5.2 acres of riverfront land dedicated to public park use, supporting the existing Three Rivers Heritage Trail. (The appraisal assumes the buyer will dedicate this acreage to a public entity, and therefore excludes it from the usable acreage valuation).

Valuation Methodology

Because the subject property is appraised as a vacant site, the Income Capitalization Approach and the Cost Approach were deemed inapplicable. The valuation relies entirely on the Sales Comparison Approach.

Sales Comparison Approach

The appraiser analyzed five recent comparable industrial land sales in the greater Pittsburgh market (including Imperial, Sewickley, and Duquesne).

• Unit of Comparison: Price per Usable Acre. (The 5.2 acres of parkland were excluded, leaving 16.5 usable acres for the subject property).

• Comparable Range: The unadjusted sale prices of the comparables ranged from $71,397 to $214,286 per usable acre.

• Adjustments: Qualitative adjustments were made for market conditions (time), location (proximity to major highways like I-279 and I-376), site size, topography, and zoning restrictiveness.

• Reconciliation: The most similar comparable sales indicated a mean value of approximately $179,000 per usable acre. The appraiser concluded a unit rate of $180,000 per usable acre.

Calculation: 16.50 Usable Acres × $180,000/Acre = $2,970,000 Rounded Final Value: $3,000,000

Key Site Characteristics & Constraints

While the appraisal assumes a clean, shovel-ready site, it documents several underlying physical and legal characteristics that developers must factor into their underwriting:

• Zoning (RIV-GI): Permits heavy industrial uses but requires a 125-foot riparian buffer from the river and imposes strict limits on surface parking (maximum 75 spaces per lot), which may necessitate structured parking for high-density uses.

• Flood Zone: A significant portion of the site lies within a FEMA Special Flood Hazard Area.

The valuation assumes the developer receives the site already elevated above the floodplain via imported fill.

• Act 24 Covenant: The authorizing legislation includes a covenant running with the land that prohibits the property from ever being used as a licensed gaming/casino facility.

• Exposure Time: Given the specialized nature of the property and the typical RFP/sealed-bid process used for government dispositions, the appraiser estimated a reasonable market exposure time of less than one year.

Developer Implications

For institutional developers, the $3.0M valuation represents the underlying land basis only if the Commonwealth delivers the site fully cleared, remediated, and elevated out of the floodplain.

If a developer is required to take on the demolition and remediation scope (Alternative 1 or 2 in the Feasibility Study), the acquisition price would need to be heavily discounted, likely to a negative land value—requiring substantial public subsidies, TIF, or grant funding to make the project economically viable.

3. Commonwealth Objectives

Through this RFI, the Commonwealth aims to understand how the development community would approach redevelopment of Property in alignment with the following objectives:

• Achieve financially feasible redevelopment without requiring Commonwealth funded site demolition.

• Encourage high quality, context sensitive redevelopment that reflects community needs identified through prior stakeholder engagement (see pages 23–28 of the 2023 Feasibility

Study).

• Support community serving outcomes, including job creation and economic development.

• Minimize execution, entitlement, environmental, and reputational risks to the Commonwealth.

• Transfer title to the Property as is and predemolition, without contingencies, as expeditiously as possible.

4. Instructions for Submitting Information

DGS invites all interested parties to submit information regarding possible redevelopment approaches for the Property. This RFI is for planning purposes only and is intended to assist the

Commonwealth in evaluating market interest and development capacity.

Please keep submissions concise—no more than ten pages—and provide high-level information addressing the following:

• Respondent identity, organizational overview, and key principals.

• High level redevelopment concept(s).

• Pro forma demonstrating the financial feasibility of redevelopment in the Property’s current, as is condition.

• Description of the level of financial capacity, experience, and expertise required to execute a redevelopment project of this nature.

• A non-binding indication of the potential value or consideration the respondent may contemplate for the Property.

Please submit responses electronically by September 1, 2026 to:

ra-gsbre@pa.gov Subject line: “3001 Beaver Avenue, Pittsburgh – RFI”

DGS will review responses received and may schedule follow up interviews to discuss submissions.

5. Disclaimer

This RFI is issued solely for information and planning purposes. The Commonwealth is under no obligation to issue a formal solicitation or to proceed with a sale, lease, or redevelopment of the

Property. Neither DGS nor any respondent will be obligated to proceed with any transaction based on this RFI. Respondents are responsible for all costs incurred in preparing submissions. All submissions will be publicly accessible under the Pennsylvania Right-to-Know Law, 65 P.S. §

67.101 et seq.

6. Property Access

The Commonwealth will provide access to the Property for inspection. A site tour will be held on

Monday, August 3rd at 11:00 AM. If the number of attendees warrants an additional tour time an additional tour may be scheduled for 1:00 PM that same day.

Prospective respondents wishing to attend must RSVP in advance by emailing:

[DGS Real Estate Chief Andrew Lick at alick@pa.gov]

RSVP deadline: Friday, July 24th

Respondents are strongly encouraged to attend the Property tour prior to submitting information.