Despite not receiving almost $13 million in funding, the Steelhouse redevelopment project at the Nussbaum Center for Entrepreneurship is still a go.
“We’re not waiting; we’re moving forward,” said Lisa Hazlett, vice president of Nussbaum.
The redevelopment project envisions renovating the 200,000-square-foot former Carolina Steel manufacturing plant and headquarters in east Greensboro for a multitude of uses – such as a manufacturing center, ghost kitchens, a year-round farmers’ market and office space.
The brainchild of Sam Funchess, Nussbaum’s CEO, and Hazlett, the Steelhouse redevelopment will take a phased approach and is expected to cost $38 million and create or retain 600 jobs. Each phase, with the exception of the ghost kitchens, is expected to cost approximately $12 million.
The Nussbaum Center sought just under $13 million as part of the Piedmont Triad Regional Council’s SITE Next-Gen application to the Economic Development Administration’s Build Back Better Regional Challenge (BBBRC), for which the PTRC was a finalist.
However, PTRC recently found out that they were not selected. The $13 million would have gone towards Phase II of the redevelopment project – a 75,000-square-foot manufacturing center that would create or retain 177 jobs.
Despite this loss of potential major funding, Hazlett said that plans for the manufacturing center are moving forward with the money Nussbaum currently has and that it will continue to seek funding.
“We have a little over $4.5 million in hand; this is money that was given to us to redevelop the Steelhouse,” Hazlett said. “We’re not going to sit on their money – we want to start construction as soon as possible so that people can start seeing their investment at work. And then we believe very strongly that once people see activity in the Steelhouse, more people are going to want to be involved.”
Steelhouse redevelopment at the Nussbaum Center
Building the manufacturing center one piece at a time
Hazlett said that, if needed, Nussbaum will develop the 75,000-square-foot manufacturing center one bay at a time, building out each section as much as possible and as close to spec as possible.
Approximately 48,000 square feet – or roughly 60% – of the manufacturing center has been committed or has strong interest, Hazlett said. She noted that some of the total square footage is not leasable, such as bathrooms, common areas or hallways.
Forge Greensboro, a community nonprofit makerspace, has committed to moving into the Steelhouse once construction is complete. With 250 members, two full-time and four part-time employees and over 20 core volunteers, the Forge is outgrowing its space in the South End. Relocating to the Steelhouse will allow it to increase its membership and capabilities by more than doubling its space to over 20,000 square feet.
North Carolina Agricultural and Technical State University is also looking to move in to about 8,000 square feet. Nussbaum and N.C. A&T are currently in the design phase, according to Hazlett, of building a machine operator training facility.
In addition, Hazlett said there is an aerospace company and a robotics company, which could not be disclosed, interested in approximately 15,000 square feet and 5,000 square feet, respectively.
Nussbaum will build out the spaces, and then those committed companies would enter into a lease with Nussbaum so that the center can recoup the money spent on building, Hazlett explained.
Hazlett said that the biggest impact of not receiving the BBBRC money will be the level of upfit that can be done to the building.
Nussbaum looking to vigorously fundraise for redevelopment
To date, Nussbaum has raised $4.625 million for the project.
The ghost kitchen phase received a $2 million commitment from an undisclosed organization. This phase cannot begin construction until 2024, Hazlett said, due to supply chain issues, inflation and the need to complete other projects first.
The Nussbaum Center has also raised $625,000 from the Stanley and Dorothy Frank Foundation, the Cemala Foundation, the Carolina Steel Foundation and the Golden LEAF Foundation. Of that collective $625,000, $200,000 from Golden LEAF is designated for fire safety and $100,000 from Cemala is for two bays within the manufacturing center.
TBJ reported in May that the Nussbaum Center had $63 million out in funding requests. Not all have been decided, Hazlett said. Hazlett added that Nussbaum now has almost $100 million out in funding requests.
She recently presented to the Guilford County Commissioners, asking for $12 million for Phase III, which will consist of a community center and include a two-story office area, farmers’ market and artisan space. Hazlett said that she expects to find out about that funding in October.
Congresswoman Kathy Manning (D-Guiflord) has also put in a $6 million request to the House of Representatives on behalf of the Steelhouse, and Hazlett said that will be determined in early 2023.
Hazlett said that she also has requests with the Triad Real Estate and Building Industry Coalition (TREBIC) and a $36 million request into the state of North Carolina.
Nussbaum also has not ruled out construction loans.
“We will, as more opportunities become available, continue putting the requests in there,” Hazlett said.
Phase IV, which will be 40,000 square feet of qualified food production space, is where Nussbaum has the most work left to do in terms of fundraising, Hazlett said.
