Hudson Yards

[Kris]

Public Subsidies Flowing Up the West Side

[Kris]

USA Today
May 10, 2004

Controversial Hudson Yards project pivotal to Olympic bid

By Jill Lieber

NEW YORK — The most controversial aspect of the NYC2012 Summer Olympics bid is the $5.5 billion Hudson Yards development project on Manhattan's far West Side.

The jewel of the project is the $1.4 billion, 75,000-seat stadium with a retractable roof, adjacent to Jacob K. Javits Convention Center. The stadium, which will be built on a platform over rail yards, will be the future home of the NFL's New York Jets and is projected to open in 2009.

The development is a vital component of the Olympic bid.

"Our goal is to have construction of the stadium started by the time the IOC votes in July 2005," says Dan Doctoroff, NYC2012 founder and New York's Deputy Mayor for Economic Development and Rebuilding. "And that's what we're on track to do."

Despite a push by Mayor Michael R. Bloomberg and Gov. George E. Pataki, the projects face a series of challenging hurdles, including an environmental review, zoning approvals and state legislation for the Javits Center expansion.

Community groups, a leading Broadway theater owner and elected officials worry the stadium will increase traffic congestion.

The Jets will pay $800 million for the stadium. The city and state each will contribute $300 million to pay for the platform over the rail tracks and the retractable roof. The remaining $4 billion for the Hudson Yards project will be paid by public and private funds from the city, state and hotel industry.

Other elements of the project include adding more than 1 million square feet to the convention center; extending the No. 7 subway line west from Times Square; building up to 28 million square feet of high-rise offices and a hotel of up to 1,500 rooms; providing 12,000 new apartments; creating a tree-lined boulevard between 10th and 11th Avenues and a six-acre plaza that would be called Olympic Square.

The site is bordered by 28th Street on the south and 43rd Street on the north, and from Ninth Avenue on the east to the Hudson River.

"This half-mile convention corridor allows us to host any event in America," said Doctoroff, who estimates the city and the state would generate $67 billion in revenue over 30 years in return for the about $5 billion public investment."

Copyright 2004 USA TODAY

[krulltime]

CAMPAIGN PROMOTES WEST SIDE PROJECTS

Published on May 24, 2004

Construction and hotel trade unions are joining with developers to create a television ad blitz aimed at rousing support for the series of projects planned for Manhattan's far West Side. The $400,000 campaign, which began last week, represents a historic collaboration between the unions and the industry.

The campaign, by Sheinkopf Ltd., consists of a 60-second spot highlighting the job creation and tax base expansion potential of the projects, including the Hudson Yards rezoning, a Jets stadium, expansion of the Javits Center and extension of the No. 7 subway.

Insiders say the campaign is aimed less at educating the public than at displaying some muscle to politicians. The ad essentially tells candidates to look elsewhere for support unless they are on board with the development. The campaign is also targeted at the remaining unions that have not weighed in on the West Side projects. Broadway and municipal unions are said to be considering their endorsements.

Copyright 2004, Crain Communications, Inc

[krulltime]

How to Pay for the Far West Side


By Matthew Strozier, May 2004

When it comes to the far West Side's redevelopment, the numbers and stakes are big. Daniel Doctoroff, New York's deputy mayor for economic development and rebuilding, says the city sees potential for close to 30 million square feet of commercial space and 12 million square feet of residential space over the next 40 years. All that would be alongside a new Jets stadium and an expanded Jacob K. Javits Center.

The office and residential space would be vital to the area's survival, according to the city's financing plan. Much of the needed infrastructure improvements would be paid for by that development through payments in lieu of taxes, known as "pilots." Pilots would raise $7.2 billion to pay to extend the No. 7 subway line to 11th Avenue, create a platform for a park and new buildings and a street network for rezoning. This $2.8 billion infrastructure would be the basis for future development, and the new tax revenue generated in the 59-block district would remain there, making it financially self-supporting.

But the question about whether the far West Side offices and residential development actually pays for itself ignites debate. Supporters see nothing but potential for an underutilized area. "This isn't upgrading Jersey City," said Kathryn S. Wylde, president and chief executive officer of the Partnership for New York City, a business group. "There is significantly more potential value on this site."

Even if demand for offices proves weak, Wylde said the land has value for residential development. By using the new tax revenue to pay for the area's infrastructure upgrades, Wylde said this makes it private sector funded. "It's the only way to do it. We aren't in a financial situation to do it any other way."

Critics say otherwise. They say demand is soft now for office space, meaning there's no need for a huge expansion of midtown. Keeping taxes in the area only hurts other parts of the city that need that money. "You cannot create a central business district by government fiat. There is no market," said Brian Hatch, who runs a website, www.newyorkgames.org, and supports getting the Olympics to Queens, not Manhattan.

While there may be some demand for office space on the far West Side, critics say it's mostly for Class B space. "That is not to say there is not demand on the West Side," said John Fisher, spokesman for the West Side Coalition, an umbrella group opposed to the mayor's West Side plans. "But how much demand? And how does that demand fit into the region?"

Initially, the idea was to use something called Tax Increment Financing (TIF) for pay for the far West Side infrastructure improvements. Under TIF, the property taxes are frozen and the growth in revenue of taxes stays within the designated redevelopment area. But that plan was switched more than six months ago to pilots, which critics say keeps even more tax revenue in the area. City Hall wants to make the project's bonds attractive and keep them from "junk" status. Neither TIF nor pilot-backed bonds have ever been sold by New York City.

Robin Prunty, director of the public finance department for Standard & Poor's, said it's common to use TIF for projects that are "future growth oriented and there is a limited area that is benefiting from the improvements that are being put in." Whether the bonds will be junk status depends on how the city structures it, but the TIF bonds are generally less credit worthy.

Between 2005 and 2035, $16.2 billion in revenue would be generated from other sources besides the $7.2 billion in pilots, according to the city's plan. There would be $5.4 billion in residential property taxes, $1.7 billion from on and off-site developments rights through the platform atop the Long Island Rail Road yards east of 11th Avenue, $111 million from land sales and ground leases, $1.3 billion in bonus density payments and $415 million in payment in lieu of sales taxes. During the early part of the project, short-term debt in the form of commercial paper would fund interest payments.

Doctoroff's office could not be reached for this article, but he is busy selling the project to investment houses. If he is successful, other parts of the city might see TIF-style arrangements to fund upgrades. "I think it's really an important step forward in how the city approaches development," said Wylde.

Copyright 2003-2004 The Real Deal

[krulltime]

Underwriters picked for W. Side bond sale: report

May 27, 2004

Five firms were chosen to help manage various parts of the bond sales intended to help fund a new stadium and expand the convention center.

The city has reportedly picked five underwriters to manage the sale of $1.2 billion in bonds to build the Jets football stadium and expand the Jacob K. Javits Convention Center on the West Side.

UBS, Morgan Stanley and Merrill Lynch were tapped to sell as much as $850 million to double the size of the convention center, Bloomberg reports. Citigroup and Lehman Brothers will underwrite a $300 million bond sale to pay for a platform over part of the West Side rail yards. The Jets want to build their $1.4 billion stadium on top of the platform.

New York city and state officials are hoping the West Side development will boost the Big Apple's chances of being chosen to host the 2012 Olympics.

Copyright 2004, Crain Communications, Inc

[krulltime]

:P Hold on to your seats..It seems that is about to start!

[krulltime]

Garment workers reverse position on W. Side plan

June 2, 2004

Garment workers union UNITE reversed its opposition to the city's West Side development plan after officials agreed to maintain and enforce special zoning protections for the garment center.

UNITE had come out against the initial plan, concerned about the impact of development on the city's beleaguered garment manufacturers. A spokeswoman for the union says the city has pledged to keep special zoning intact in the district, which covers the area between 35th and 41st streets from Broadway to Ninth Avenue. That means landlords can't end manufacturers' leases without providing comparable space for them within the district. The city has also promised "to begin meaningful enforcement" of the protections.

In addition, the union is working on a proposal for developing several full-service manufacturing buildings in the garment center, totaling up to 500,000 square feet. The space would most likely be leased at market rate and not be subsidized, the UNITE spokeswoman says. The group is currently hammering out the financials of the deal and talking to landlords.

Copyright 2004, Crain Communications, Inc

[TLOZ Link5]

This was my main concern about the West Side plans. Manufacturing must remain an employment option for New Yorkers, and this development might have had an adverse effect on the Garment District.

[krulltime]

Pataki to introduce convention legislation

by Anne Michaud

Gov. George Pataki is expected to introduce legislation as early as today to expand the Jacob K. Javits Convention Center on Manhattan's far West Side.

The $1.4 billion expansion is key to New York City's long-held goal of developing the neighborhood for office towers and boosting tourism. The package for the state Legislature includes increasing the city hotel tax by $1.50 per key per night, as well as taxing car rentals that originate from area airports.

The legislation would also provide for a refinancing of the Javits Center bonds to raise $350 million, which would be the state’s contribution to the project; extend the convention center's boundaries north to 42nd Street, and increase city government's representation on the boards of the New York Convention Center Operating Corp. and the New York Convention Center Development Corp.

As part of the West Side development plans, city and state leaders have also pledged to help build a football stadium for the New York Jets, extend the No. 7 subway line, and create parks and a cultural center. The stadium would be used for the 2012 Olympics if New York is selected as the host city.

Copyright 2004, Crain Communications, Inc

[krulltime]

Alright!!! It seems that the State is starting to take some action on this development.

[krulltime]

TIME FOR DUO TO PICK A 'SIDE' IN REDEVELOP DEBATE

By DAVID SEIFMAN
June 6, 2004

TIME is running out for two top city officials who've held off making a decision on the supercharged West Side redevelopment plan.

Neither Comptroller Bill Thompson nor City Council Speaker Gifford Miller have said if they'll support the hotly contested project, which includes a football stadium for the Jets and expansion of the Javits Convention Center.

"It's the kind of thing, where you want to wait as long as you can and see how it goes," one insider said.

Thompson and Miller are both considering a run for City Hall next year.

So they've got to walk a fine line to satisfy supporters of the mega-development — who include most of the city's key unions — and opponents — who include vocal residents as well as the potent Dolan family that controls Madison Square Garden.

But the luxury of delay is about to run out.

Thompson and Miller sit on the Transitional Finance Authority, a little-known entity created in 1997 to allow the city to borrow money outside its normal debt limit.

Mayor Bloomberg intends to use the TFA to borrow the upfront costs associated with the West Side project, and he's pushing for a quick vote to authorize a bond sale.

Bloomberg controls three of five votes, so the outcome of the vote isn't in doubt.

Still, the mayor hardly wants to be in the position of going it alone.

Thompson also faces pressure from housing advocates who want him to block the use of Battery Park City Authority funds to back up $300 million in bonds the city needs as part of its financing package for the West Side.

Miller's got another problem.

His vision for transforming a 1.45-mile elevated railroad spur in Chelsea known as the High Line into a park is tied to the fate of the West Side.

One source pointed out that Bloomberg threw his weight behind the High Line to win Miller's favor.

"It was definitely done for him," said the source.

NEW YORK POST

[krulltime]

Thompson and Miller are both considering a run for City Hall next year.

So they've got to walk a fine line to satisfy supporters of the mega-development — who include most of the city's key unions — and opponents — who include vocal residents as well as the potent Dolan family that controls Madison Square Garden.

Tough choise Mr. Thompson and Mr. Miller...But don't think to hard.

[krulltime]

Fur flies over crackdown on garment center zoning
City backs union bid to protect manufacturing; real estate execs riled

By Christine Haughney
Published on June 07, 2004

City plans to once again enforce 17-year-old zoning rules that preserve garment district manufacturing jobs are angering members of the real estate community. They say the area's survival depends on its ability to attract other tenants.

Last week, the city said it would be more vigilant about regulations that require landlords of side-street buildings to maintain space designated for manufacturers or offer them alternative space nearby. The city agreed to the move after Unite, the apparel and textile manufacturing union, reversed its position on the city's West Side stadium plan and decided to support it.

A spokeswoman for the Department of City Planning says it is ironing out the details of its plans. A Unite official says enforcement will involve an education program for landlords and manufacturers about the regulations, and a crackdown by the Department of Buildings on garment district landlords who seek building permits for other uses. The city also may impose penalties on landlords who don't renew manufacturers' leases or offer them alternative space.

"(Now) if landlords break the law, they will be fined," says Maura Keaney, associate political director for Unite. "For pretty much the past decade, the regulations have not been enforced."

Neighborhood business groups say the city is trying to apply outdated rules that don't fit with the changing face of the area. Real estate executives argue that a number of manufacturers have left or gone out of business; they fear that many buildings will stand empty if they can be used only by manufacturers. Such limits would crimp a recent influx of new types of tenants.

"Why doesn't the city relook at the zoning and evolve with the neighborhood and the marketplace?" asks Barbara Randall, executive director of the Fashion Center Business Improvement District.

The garment district--which extends from West 35th to West 41st and from Broadway to Ninth Avenue--has been undergoing a transformation into a home for fashion showrooms, financial startups, arts groups and luxury condominiums. Fashion Center BID data show that between 1996 and 2002, the number of manufacturing jobs shrank to 9,788 from 19,000.

"The only manufacturing going on in the garment district is the really high-end couture type of tenancy," says landlord Tony Malkin.

George Comfort & Sons Inc. has struggled to keep its 250,000-square-foot property at 307 W. 38th St. open to manufacturers. Many tenants have gone out of business or left to get cheaper rents. Computer companies and retailers now occupy half of the building.

"The garment district has old buildings like we do that need a lot of work," says Dana Comfort, an executive vice president. "Landlords can't afford to do that if their tenants are hardly in business."

Copyright 2004, Crain Communications, Inc

[krulltime]

Fashion Center BID data show that between 1996 and 2002, the number of manufacturing jobs shrank to 9,788 from 19,000.

I kind of agree with members of the real estate community.

[kingdavid]

i am proud to have voted for tom duane.

when he started out, he was a fresh face and voice.

lately, i think he is becoming like a lot of established pols.

i think the west side development has been good for the city.

this area can't stay crumbling warehouses forever. the real estate is too valuable. besides, the city has done a good job of turning over space for greenery and recreation.

yes, development will bring more traffic to this area but it will lessen congestion somewhere else by spreading out people and cars.

having either a baseball or football stadium in manhattan will do a lot to keep nyc a world class city. it will create jobs for many in the construction trades and eventually shop owners will settle close to the stadium in addition to housing and offices.

comparing this to westway is a mistake. besides, i think that the westway opponents were silly. part of the reason there is congestion in this area is because westway was not built. i used to live in battery park city and drove the fdr because the west side highway is gone. once again, congestion was just shifted elsewhere.

needless to say, who eats striped bass from the hudson anyway. no way this fish was going to be extinct.

people use environmental concerns to obstruct progress. duane should cease and desist.

peace from zion.