PES Refinery

The $225.5 million deal is done. Chicago-based Hilco plans to turn the 1,300-acre site in Southwest Philly into a distribution and logistics center.

With a $26.5 million cut in the price agreed to by Philadelphia Energy Solutions and Hilco Redevelopment OK’d, the deal is expected to close Friday.

Damage from the June 21 fire that resulted led to closure of the complex, the company’s bankruptcy, and a planned sale of the 1,300-acre property.

A Hilco Redevelopment Partners executive told a City Council hearing the company’s plan will create 8,000 union construction jobs, 10,000 permanent jobs.

A settlement resolved the plant developer’s objection to Hilco Redevelopment Partners’ purchase of the property. Two sides will negotiate further, he says.

Crews are removing mercaptan from the site, the odor used to make natural gas leaks smelly.

The city wants to be reimbursed for costs incurred by its hazardous materials team after June’s explosion, fire at Philadelphia Energy Solutions’ complex.

First, Philadelphia Energy Solutions and buyer Hilco Redevelopment Partners have to meet several legal obligations before the sale can close.

Also approved: a $29 million settlement with Philadelphia Energy Solutions’ unsecured creditors that includes a $5 million severance fund for workers.

The proposal stems from last summer’s explosion at the PES refinery in South Philadelphia. The company is winding its way through bankruptcy.

Bilal Motley’s 48-minute documentary, “Midnight Oil,” chronicles the last days of the South Philly complex. Some of his former coworkers are not pleased.

Andrew R. Vara, charged with administrative oversight of the bankruptcy, says the plan has issues with discharge claims, release provisions, statutory fees.

Refinery supporters including union leaders have joined forces, with the backing of the White House, to question PES’ decision favoring the lower bidder.

The city and state joined 13 other states and the District of Columbia in a federal lawsuit that says the new rules violate the Clean Air Act.

Brian Abernathy, who co-chaired the city’s Refinery Advisory Group, said Hilco Redevelopment Partners envisions warehouse and logistics space as likely uses.