Asian business hub developer eyeing South Side site

Thursday, June 10, 2004

Craig Kirsch wants to make Pittsburgh a true international city.

Kirsch, executive director of Surety Pittsburgh, a development company, is looking to turn the Steel City into a hub for Asian business and community.

The firm is working with the city Urban Redevelopment Authority to purchase two parcels in the burgeoning South Side Works complex to build One International Center, as it has dubbed its proposed venture.

As part of an option agreement to be considered by the URA board today, Surety Pittsburgh has put down $500,000 to hold the property for six months. If the company fails to follow through with the development, it will lose the money, URA Executive Director Mulugetta Birru said.

"It's a major undertaking and a good thing for Pittsburgh to start to be an international city," he said.

One International Center would be sort of a one-stop shop for Asian businesses and employees interested in establishing offices or a headquarters in the United States. Kirsch said the center, which eventually could involve as many as six buildings and $100 million in investment, would provide those businesses with office space and housing for employees as well as some on-site shops, including a grocery store, restaurants and other services.

The center also would offer translation, financial and accounting services, immigration help and guidance in helping parents select a local school for their children.

"It's hard to be a foreigner in a foreign land," Kirsch said. "We want to make it very simple for them to come here and live here."

The first phase would consist of 100 to 150 office and residential units at a cost of $25 million. The company is hoping to raise $5 million in equity for the first phase and already has commitments for half of that.

The company has an office in Hong Kong where it is trying to recruit businesses to locate offices in Pittsburgh and also has sales representatives in Taiwan and China. Kirsch said Asian markets have created substantial wealth over the last decade, prompting businesses to look for opportunities to expand and diversify.

One logical choice would be the United States, Kirsch said, adding that Pittsburgh is an attractive location because of its high-quality universities and proximity to other major markets.

"It's an exciting project. The impact on the region could be tremendous. The timing, I believe, is right," he said. "We believe it's a groundbreaking concept. We believe this project will be a model for other projects in other cities."

If the company gets the necessary city approvals and begins development, the $500,000 will be counted against the purchase price for the parcels, which sell for $500,000 an acre. The development eventually could take six acres, Birru said.

The company is hoping to break ground in the first quarter of 2005. A delegation from China will be here at the end of the month to meet with Mayor Tom Murphy and other local officials.