U.S. Steel will build its new headquarters on the land once occupied by the Civic Arena in Pittsburgh.

Advertisement U.S. Steel to build new headquarters in Pittsburgh Company will relocate to former Civic Arena site being developed by Penguins, just a few blocks away from downtown's Steel Building Share Shares Copy Link Copy

United States Steel Corp. has announced it will build its new world headquarters in Pittsburgh as part of the Penguins' redevelopment of the former Civic Arena site.The announcement came Monday from officials with the company, the hockey team, the city and the state, which invested $15 million into the site."I said I will not be the mayor that lost U.S. Steel," Mayor Bill Peduto said. "U.S. Steel belongs in Pittsburgh, and it feels really, really good to say that's going to be the future."VIDEO: Watch Bofta Yimam's reportGround is scheduled to break in the fall on a five-story building where about 800 jobs will be located. The 250,000-square-foot headquarters will include a steel museum."You have to look at the multiplier effect," said Peduto's chief of staff, Kevin Acklin. "There will be jobs created in the construction fields, and all of those jobs would be committed to under our document with the community, so you're going to be having minority and women contractors participating."CEO Mario Longhi said the new headquarters will open by September 2017, when U.S. Steel's lease will expire at the 64-story Steel Building downtown.The steel giant had been in talks with local leaders about whether to stay in Pittsburgh or relocate to another Pennsylvania location. Allegheny County Chief Executive Rich Fitzgerald called Monday's announcement "a great, great victory" for the Pittsburgh region.U.S. Steel remains one of Allegheny County's largest employers, but its current headquarters in the 64-story U.S. Steel Tower -- downtown's tallest building -- has shrunk in recent years while other tenants now occupy more space."When you think about U.S. Steel and you think about Pittsburgh, our DNA -- meaning Western Pennsylvania -- is a part of U.S. Steel, and U. S. Steel is part of us," Fitzgerald said. "We've been a part of each other for over a century."U.S. Steel will get several million dollars in tax breaks to build its new headquarters and stay in Pittsburgh. Exactly how much is "hard to say at this point until the building is built," Acklin said. "I can get you an answer on that, but I don't have a full number. At least $6 million."Financing for the project will include new market tax credits and tax financing through the city's local economic development LERTA program, and 50 percent of the tax increment generated by the LERTA will be contributed to the Greater Hill District Reinvestment Fund, creating more than $3 million to support economic development projects and job training programs in the middle and upper Hill District, Acklin said in a statement released to WTAE.The project will comply with the minimum minority and women contractor and other goals set forth in the Community Collaboration Implementation Plan announced by Peduto, Fitzgerald, City Councilman Daniel Lavelle and the Hill District community in September, Acklin said.The Penguins reached an agreement last fall with local officials about the scope of the $440 million redevelopment at the site of its former arena, which was closed in 2010 and demolished over several months through early 2012.The U.S. Steel project is especially important because it kicks off development at the 28-acre site, which will also include retail space and apartments.