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New UPMC hospital in South Fayette could bring 500 jobs, $560K in taxes | TribLIVE.com
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New UPMC hospital in South Fayette could bring 500 jobs, $560K in taxes

Wesley Venteicher
ptrupmc071012jpg
Justin Merriman | Tribune-Review
The UPMC logo on U.S. Steel Tower in Downtown Pittsburgh.

UPMC's proposed $200 million hospital in South Fayette would add more than 500 jobs and bring in some new tax revenue even though UPMC is a nonprofit, according to a consultant's economic impact report.

The South Fayette Township Board of Commissioners was scheduled to review the report Wednesday night and could vote on the proposal. The proposed 16-acre site, including a 90-bed hospital and an outpatient center, would be built between 2018 and 2020 on Presto-Sygan Road, according to the report.

Pittsburgh-based Fourth Economy Consulting prepared the report after the Board of Commissioners requested the consultant prepare a proposal to do the report.

UPMC provided data and paid for the report.

The hospital would employ about 500 people full-time and would add another 250 indirect full-time jobs, according to the report, generating about $52 million in employment-related income and $112 million in economic output — about 12 percent of the current South Fayette economy.

Because UPMC is a nonprofit, the hospital portion would not generate property taxes for the township. The outpatient center would, but plans for the center are not complete. The report estimates that 35,000 to 45,000 square feet of the proposed 280,000-square-foot property would be taxable.

Based on several best-case scenarios — including a $12.8 million valuation for the property and an estimate that 30 percent of the hospital jobs will be filled by South Fayette residents — the medical campus could generate about $560,000 per year in real estate, earned income tax and local services taxes.

The township's planning commission approved the project in March. The Board of Commissioners held a hearing on the proposal in April, which drew a mix of support and opposition from the public, according to meeting minutes. Some said St. Clair Hospital in Mount Lebanon already met the community's health care needs.

The hospital would be part of a 100-acre development called Newbury Market, which includes housing, retail, restaurants and office space. Developers at the meeting said that as retail stores — and their more lucrative tax revenues — decline because of e-commerce, big institutions such as nonprofit hospitals are becoming more attractive components of developments.

Last year, plans for a proposed UPMC hospital in Pleasant Hills, less than a mile from Allegheny Health Network's Jefferson Hospital, fell through after residents voiced disapproval.

Wes Venteicher is a Tribune-Review staff writer. Reach him at 412-380-5676, [email protected] or via Twitter @wesventeicher.

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