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Building Innovation is a collection of stories by 90.5 fm WESA reporters about the Pittsburgh region focusing on efficient government operation, infrastructure and transportation, innovative practices, energy and environment and neighborhoods and community.

U.S. Steel Backs Out Of Project At Former Civic Arena Site

U.S. Steel has decided against building a new headquarters on the site of the former Civic Arena.

“This decision has been shared with employees by President and CEO Mario Longhi. U.S. Steel will remain in the U.S. Steel Tower through the term of its lease,” spokeswoman Sarah Cassalla said in a statement. The lease expires in 2017.

U.S. Steel backed out shortly after the Pittsburgh Penguins announced a potential sale of the organization. According to the Pittsburgh Business Times, U.S. Steel was not made aware of this decision ahead of time. The project was initially spearheaded by the Penguins' top brass.

Last November, the steel makers announced a five-story, 268,000 square foot building that would act as the central hub of the new development. Construction was expected to begin this month.

Pittsburgh Mayor Bill Peduto and Allegheny County Executive Rich Fitzgerald released the following joint statement Thursday:

“While we’re sorry to hear of the decision by U.S. Steel, this is simply a pause button in the commercial development of the 28-acre site. We are still moving forward with housing as originally planned, and there is continued interest in commercial development as it remains one of the most desirable sites in all of Western Pennsylvania.”