With the news today, reported by The Observer, that Larry Silverstein has begun legal proceedings against the Port Authority to end the gridlock at Ground Zero, as well as the developments two weeks prior at Atlantic Yards, it seems obvious to us what's going on here. Having witnessed the financial titans across town receive hundreds of billions of dollars in bailout money, these developers now want theirs. Granted, so did Larry Flint and the porn industry, but the comparison bears consideration. To begin with, the market has failed for both finance and real estate--to say nothing of every other industry--leaving "free market" options closed. Where the bankers have turned to the Treasury and the federal government, Silverstein and Bruce Ratner, in one form or another, have turned to local pols. At Ground Zero, Silverstein is having difficulty finding financing for Towers 2 and 3, so he wants the Port Authority to provide it, or at least back it, on those projects. The story at Atlantic Yards has been much the same, with Ratner unable to afford the full amount for the Vanderbilt Yards nor go through a complete public review process for a new general project plan to ensure there is time to qualify for already dubious tax-exempt bonds. In both cases, public agencies that are already hard up for cash have been asked to foot the bill or undersign considerable amounts of risk to ensure projects with uncertain futures go forward. In the case of Atlantic Yards, the MTA and ESDC have already rolled over. It remains to be seen whether the Port Authority will cave to the abiding political and now legal pressures surrounding the Ground Zero deal. It would not be surprising if the authority did, though, given the examples set in Brooklyn and Washington.
Posts tagged with "Michael Bloomberg":
When the City Planning Commission barely altered the city's plans--plans that remain diametrically opposed to those of chief landholder Joe Sitt--we couldn't help but wonder whether the Bloomberg administration would some how grossly undermine its plan, or let it fall on the sword at the City Council, at least part of which is firmly under the sway of Sitt. Thus far, the Bloomberg administration has yet to allow a single one of its nearly 100 rezoning fail at the council, often crafting 11th hour deals. Would, could things be different this time? Well, following a hearing at City Hall yesterday, the Daily News reports that the city's rezoning proposal has indeed run up against council opposition, but not for the reasons we would have thought--or hoped. No, it has nothing to do with the lack of vision for either Sitt or the city's plans. The council's opposition stems from an aversion to eminent domain, which the city's economic development czar suggested could be on the table should Sitt not sell, something he has currently refused to negotiate on, despite repeated attempts by the city. But that's not what struck us as wrong. No, the problem is--shocking, we know--that many of these council members now in opposition to eminent domain once supported it, in a way. Look no further than Manhattanville or Willets Point, where Columbia and the city, respectively, have used the threat of eminent domain to push around small businesses and landholders. Clearly, it's not the principal that matters to the council but the size of one's pocketbook.
Before closing Broadway got her branded a car-hating communist, DOT commissioner Janette Sadik-Khan was already well on her way to transforming the city's streets. One of the most memorable events--and a sign of things to come--was last year's Summer Streets program, which, for three Saturdays last August, closed off a large swath of Manhattan from the Brooklyn Bridge to 72nd Street, with most of the course running up Park Avenue. (There was also a less publicized closure of Bedford Avenue in Williamsburg.) Never one to stand (or bike) still, Sadik-Khan and the mayor announced today the expansion of the program throughout the summer and across all five boroughs this year. Details after the jump, but first two quick thoughts: Brooklyn, with seven sites, is the obvious winner; and why no Park Avenue this year?
- Staten Island
When developers began proposing sizable developments for the shores of the Gowanus Canal a few years ago, at best it was viewed as yet another gonzo deal conceived of those frothy boom years. At worst, it was a bad joke. After all, this is the same body of water known to carry STDs. And so, when the federal EPA agreed to consider the contaminated body of water for Superfund status, that could only be a good thing, right? Not if you're one of those developers, as the Observer reports today. Or, believe it or not, the Bloomberg administration. Writes Eliot Brown:
The controversy centers around the nature of the Superfund program. The Bloomberg administration and developers contend it would drag out the cleanup for years, potentially stymieing both economic development and, ironically, environmental cleanup in the process. [...] For developers, this approach is frustrating. The city is rezoning the lots around the northern sections of the canal, and developers had hoped to build a new residential neighborhood, bordering what was to be a quaint stream lined by parkland and bike paths. But given the way the Superfund program assigns blame, developers worry that they could be designated as potentially responsible, and would therefore be unable to get financing to build. Further, the stigma of a Superfund designation, they worry, would drive away potential buyers, pushing down the value of the area. [Emphasis added.]Yeah, no kidding. The Times followed up, passing along the city's official argument's against the move:
Daniel Walsh, director of the Mayor’s Office of Environmental Remediation, said a Superfund cleanup would likely take more than two decades, putting at risk more than $400 million of private investment already committed to the area for housing and other development. Speaking at an informational forum on Tuesday night held by Representatives Nydía M. Velázquez and Yvette D. Clarke, both Democrats from Brooklyn, he said that cleanup projects like the city’s planned dredging of 1,000 feet of contaminated sediment at the bottom of the canal, at a cost of $15 million, could also be at stake. “These investments are part of the a plan that the city has developed to remediate the canal that is collaborative and efficient, rather than embarking on a Superfund process that is, at its core, an adversarial process focused on finding responsible parties for past contamination,” Mr. Walsh said. But a designation could steer hundreds of millions of federal dollars toward a comprehensive cleanup, and neighbors at the meeting were split on their support for the Superfund designation. Mr. Walsh was both booed and applauded during his remarks.That developers like Toll Brothers would write letters opposing such a cleanup is not surprising, morals be damned. That they're still scrambling to even build in these outlying areas of the outerboroughs shows just how stuck these developers are in pre-recession wonderland. It's exactly the sort of questionable thinking the city should be protecting us from, not promoting. After all, which is worse? Living in a Superfund site knowingly or unknowingly. Granted, yes, we do have full faith in the appropriate remediation of these sites, but wouldn't their wholesale recovery--and with the polluters instead of the public and the developers themselves footing the bill--be the desired outcome? After all, Greenpoint has complained for years of heightened cancer rates and other health problems from a similarly polluted waterway. Sure, the ground under your apartment might be clean, but what about the site next door? No amount of letters or flashy marketing can change that fact. Now where's Seth Myers when you need him...
First Recovery.gov, now the NYC Stimulus Tracker. Yesterday, when Mayor Michael Bloomberg unveiled the $1.1 billion in new infrastructure spending resulting from the city's cut of the federal stimulus bill, he also announced the creation of a special website to lend transparency to the process, not unlike the model set out by our dear mayor. (Judging by WNYC and ProPublica's Shovelwatch map, though, everyone's getting in on the act, with all but five states and numerous municipalities launching such sites.) There are six projects receiving direct stimulus funding, including $47 million for the repair of the Brooklyn Bridge, $175 million for rehabilition of the St. George Ferry ramps in Staten Island, and the $9.7 million repairs of a dozen roads throughout the five boroughs. The mayor also announced 25 projects that will receive funds allocated at the state level, also known as displaced funds. Below is a list, but for more on both, see the mayor's release. As a whole, he said the projects will create or preserve 32,000 jobs. But to be sure, check the Stimulus Tracker. Individual projects by borough, with amount of stimulus money recieved and expected completion:
- Improvements to Hunts Point, $22 million, Fall 2012
- Reconstruction of Paulding Avenue (Bronxwood), $21 million, Fall 2014
- Reconstruction of the Claremont Parkway Bridge (Bathgate), $7.0 million, Summer 2012
- Reconstruction of the Decatur Ave Retaining Wall (Bedford Park), $7 million, Fall 2011
- Improvements to Hugh Grant Circle (Parkchester), $3.5 million, Summer 2011
- Improvements to Brooklyn Navy Yard, $4.7 million, Summer 2011
- Streetscape Improvements to Flatbush Avenue (Flatbush), $3.5 million, June 2011
- Reconstruction of Nassau Avenue and Monitor Street (Greenpoint), $12.9 million, Fall 2011
- Reconstruction of Coney Island Boardwalk, $15 million, Spring 2011
- Reconstruction of Shore (Belt) Parkway East 8th Street Access Ramp (Bath Beach), $14 million, Spring 2011
- Reconstruction of Eastern Parkway (Prospect Heights), $6 million, Spring 2012
- Improvements to Bedford Stuyvesant Gateway Business District, $7.1 million, Winter 2011
- Replacement of Protective Coating on Steel Structure of Six Belt/Shore Parkway Bridges, $6.8 million, Fall 2011
- Reconstruction of West 125th Street, $1.9 million, Fall 2014
- Reconstruction of East Houston Street, $23.5 million, Fall 2011
- Improvements to Long Island City Queens Plaza – Phase I, $22 million, Spring 2011
- Improvements to Long Island City Queens Plaza – Phase II, $15 million, Spring 2011
- Reconstruction of Rockaway Boardwalk, $15 million, Spring 2011
- Reconstruction of College Point / 32nd Avenue, $12 million, Fall 2011
- Replacement of Hillside Avenue Sidewalk (Jamaica), $10 million, Fall 2010
- Extension of 132nd Street / Linden Place Extension, $7 million, Winter 2014
- STATEN ISLAND
- Rehabilitation of 11 Staten Island Railway Bridges, $8.2 million, Summer 2010
- Completion of the St. George Ferry Terminal Retail Area, $6 million, Fall 2009
Our dear friends Mike Bloomberg and Arnold Schwarzenegger and their pal Ed Rendell dropped by Washington this weekend, first to visit with President Obama and then, today, Meet the Press. They were in town to promote their two-month old partnership, Building America's Future, which seeks to promote the reconstruction of the nation's aging infrastructure along with its expansion into the future. Details on the White House meeting are scant. Newsday says it lasted an hour, and CBS News reports that the trio had a tripartite message for the president:
[Rendell] said the three men delivered three messages to the president and his team of advisors. One, that the president should take control of the infrastructure debate. Secondly, that a so-called “infrastructure bank” is essential. And three, that all funding possibilities should be explored. [...] "The president gets it," Bloomberg said. "This is about the future of our country. Whether it is transportation or water or other things, we need to invest now so that our children and grandchildren will have a future."According to NY1, there's still much work to be done:
Bloomberg acknowledged that infrastructure projects produce limited immediate jobs, but Schwarzenegger said that vehicular and mass transit systems need bailouts of their own. "We have maybe spent $900 billion to $1 trillion in the next five years, but we really should be spending $2.2 trillion in the next five years in order to keep up with the demand," said California's governor.You can also watch Building For America's press conference from the White House lawn on YouTube. If all that weren't enough, the three shed more light on their ideas during their Meet the Press appearance (transcript here). Rendell put it best:
MR. GREGORY: So, Governor Rendell, first of all, it was Governor Schwarzenegger who said infrastructure's not a very sexy word when it comes to building political will. What are we talking about here? Bridges, roads, what else? GOV. ED RENDELL (D-PA): Well, it's not just transportation infrastructure. First of all, high-speed rail. This country desperately needs to build a high-speed rail passenger system. We need to improve our rail freight system. But it's not just transportation. It's the levees that failed in Cedar Rapids and New Orleans. It's dams, it's water and wastewater systems. It's so much more. And the message is fairly clear. We started Building America's Future because we think this is about the future. We think it's about generations down the road. And unless we can rebuild our infrastructure, we're not going to be competitive. Unless we can rebuild our infrastructure, our quality of life is going to suffer. Unless we rebuild our infrastructure, things like what happened in Minnesota are going to repeat. MR. GREGORY: Bridge collapse. We took a poll, Building America's Future, and the poll showed the American people are willing pay for infrastructure improvements, pay more taxes, if they believe it'll be done in a nonpolitical way, if the choices made will be good choices based on cost benefit analysis. That was our message to the president. We're willing to support him. We think the infrastructure bank is terrific. We need to do it in a little bit bigger scale.Perhaps the most intriguing part of the group's work is its desire to drive infrastructure expansion through the issuance of bonds and the cultivation of public-private partnerships:
MAYOR BLOOMBERG: Yes, the amount of stimulus in the--the amount of money in the infrastructure package is a small amount. But Governor Rendell--who deserves all the credit, I think Arnold would agree with me, to putting this organization together--has talked about how you can leverage that money. And today it takes a while to get projects going. This president's willing to face the issues and he's going to have to work with Congress. [...] MR. GREGORY: Right. And we talk about private equity. There's so much money in this economy on the sidelines with nowhere to go and nobody wanting to assume any risk. So if there's this kind of private sector money, how would it work? If they--if private equity or hedge funds want to put up money for a light rail system, fast rail system around the country, what's in it for them? GOV. SCHWARZENEGGER: Well, it's a, it's a great investment. I mean, that's what--it's like when you look at British Columbia or other places where they have a public-private partnership, where everyone is happy. Businesses are happy, the people are happy, labor is happy, the politicians are happy. I mean, everyone is happy. We want to do the same thing. We should--the United States should copy that kind of a principle so that you can go out there and build. GOV. RENDELL: There's so many innovative ways to, to use the tax code to get private investment involved in this. There are innovative ways. David, we don't have a capital budget, a federal capital budget. We're the only governmental subdivision in the country without one. You could finance--for $30 billion a year, which these days is not a lot of money, you could finance almost $400 billion to put up front in an infrastructure repair program administered through something like the infrastructure bank.While public-private partnerships have, indeed, been a success in the past, they also pose problems, as recent hitches resulting from the recession have shown. Furthermore, to propose "leveraged," perhaps highly leveraged, deals with the same private equity and hedge fund firms that got us into the mess this infrastructure is supposed to get us out seems suspect. Just imagine what an infrastructure bubble might look like. Probably lots of bridges to nowhere. Where the coalition is headed from here remains to be seen, but if Bloomberg's similar effort, Mayors Against Illegal Guns, is any indication--to say nothing of his work reshaping the city's physical culture--it's due for a smashing success.
There has been a lot of talk lately about how it is now up to the government to spend stimulate our way out of the current economic doldrums, and how much of that will come through infrastructure spending. One place where such investment is critically important is affordable housing, especially in light of all the foreclosures. While New York has fared better than other areas on that front, it is still unwelcome news that the city has rolled back the timeline for its New Housing Marketplace Plan. Back on December 14, Mayor Michael Bloomberg gave one of his weekly radio addresses, which focused on the rising foreclosure rate and how his administration was coping with the challenges that presented (text). In addition to mentioning expanded mortgage advice and anti-abandonment measures, the mayor highlighted the New Housing Marketplace Plan, which is run by the city's Department of Housing and Preservation:
"The New Housing Marketplace - our Administration's affordable housing initiative, and the most ambitious such effort ever made by an American city. Our ten-year goal is to fund development and preservation of 165,000 homes - enough to house the entire population of Atlanta."But, the mayor continued:
"Now, with the economy stalling and even the most qualified developers having a hard time getting credit, we know we can't keep that pace up. So we're stretching out our schedule for completing the second half of our housing program to six years instead of the five years we'd planned for at first." [Emphasis added.]As the Times pointed out today, "Mr. Bloomberg announced the extension in December during a speech and in one of his weekly radio addresses, neither of which received much attention beyond housing advocates." Whether it was impacted by the news the day before that HPD head Shaun Donovan would be taking over HUD for the Obama administration, we're also not sure (the HPD press office has yet to return our call). But according to the Times, a spokesman for the mayor said the extension was tied to Bloomberg's announcement in May that he would stretch a four-year construction plan for the city to five years amid signs of a declining economy. Still, this isn't exactly news. In September, when the mayor was trumpeting the successes of the program at its halfway mark, the Observer was already calling them into question. Eliot Brown reported that the administration was already shifting gears:
[A]s the financial industry hits major turbulence and the city’s once lush climate for development turns dry, the Bloomberg administration is struggling to meet its goals for new construction (currently targeted at 91,637 units) and will likely need to shift the balance more toward preservation (73,395 units).... Although city officials say the original plan emphasized preservation in its early years, the reality of an inclement market has caused reevaluation, and the administration says it will likely need to lower its goals for creating new units, and increase its goals for preserving current ones.There are other factors at play, such as the impact of changes to the 421-a tax program, which, along with inclusionary housing bonuses--like those in many recent rezonings--encourage for-profit developers to include low and moderate income housing in their projects through tax breaks. But still, with the paucity of credit having dragged the city's construction sector to a halt and many predictions of a new recession, what the administration can do to continue to stimulate affordable housing remains an open question. This is especially bad news for out-of-work architects given all the affordable housing work they've had of late. Perhaps the mayor should try giving Secretary Donovan a call.
Though some people were more than happy to see Olafur Eliasson's New York City Waterfalls dry up a few weeks ago, one person who will dearly miss them is the mayor. Standing beneath the Scandinavian artist's massive mirror installation at P.S. 1 yesterday, Mayor Michael Bloomberg announced with great excitement that, according to a study undertaken by the city's Economic Development Corporation, the falls generated $69 million in economic activity, exceeding the $55 million initially expected and countering criticism that the $15 million project was wasteful. "Art also has the power to invigorate neighborhoods, as you know, and catalyze new investment" Bloomberg said. "That's why we've made investing in culture a major part of our efforts to diversify the economy." He added that this would be especially important in the wake of the collapsing financial sector--long the bedrock of the local economy. While it will likely never reap the dividends Wall Street once did, it is good to know we can put our art to work for us, rather than simply embracing art for art's sake. Other findings of the report include:
- An estimated 1.4 million people visited the Waterfalls in the 13 weeks it was up this summer. Of those, 79,200 would not have visited the city or otherwise extended their trip, and 590,000 people from the metropolitan area made special trips to view the falls. They drew people from all 50 states and 55 countries.
- As part of the administration's plan to revitalize the Lower Manhattan and Brooklyn waterfronts, 23 percent of visitors, or 320,000 people, visited those areas for the first time. Of them, 44,500 were residents of the five boroughs.
- About 95 percent of all out-of-town Waterfalls viewers participated in at least one other cultural attraction during their stay. About 43 percent of visitors attended one or more Broadway shows; 42 percent attended a visual art, photography, or design museum; 34 percent visited a history museum; and nearly 27 percent viewed a public art installation other than the Waterfalls.
- Circle Line Downtown offered between 25 and 30 tours a day, with sell-outs on many tours, particularly during its evening cruises. Between June 26 and October 13, more than 213,000 passengers bought tickets for Circle Line Downtown's Waterfalls tour, Zephyr and Shark boat tours that all went past the Waterfalls.
- The Public Art Fund's official Waterfalls website, nycwaterfalls.org, received more than 512,000 visits between January and October 2008. More than 6,000 photographs were posted to Flickr, 1,200 blog posts were written, and 200 videos with 235,000 viewers uploaded to YouTube. [Here's a personal favorite because, you know, who doesn't love models.]
Last evening a crowd of one hundred or so gathered on museum mile in front of the Guggenheim Museum to mark the completion of its three-year renovation project with a champagne reception and a ceremony officiated by New York City Mayor Michael R. Bloomberg. Arriving fashionably late, Bloomberg addressed the crowd with his typical charisma, candidly remarking that the new restoration is “one of the best facelifts on 5th Avenue.” Bloomberg also stated that despite the tough financial times we have recently come upon, the City will continue investing in art and cultural institutions, like the Guggenheim. At the conclusion of Bloomberg’s speech, the official ribbon cutting ceremony revealed a large sign draped over the front exterior of the building that read, “Good As New." Marc Steglitz, the Guggenheim Museum's Interim Director-Elect, later commented that the building is actually "better than new," but said that he was told that he could not say that in fear of the lurking preservationists in the crowd! The celebration also included the inauguration of a site-specific work of art created by artist Jenny Holzer to illuminate the building’s newly restored facade and in honor of the restoration’s major benefactor Peter B. Lewis. Jenny Holzer’s site-specific light project, entitled, For the Guggenheim, cast large-scale texts comprised of her own writings as well as numerous poems directly onto the exterior of the Frank Lloyd Wright building, noticeably transforming the building and its surroundings. For the Guggenheim will be illuminated every Friday evening, beginning September 26 through December 31, 2008, from dusk to 11 p.m., with a special additional showing on New Year's Eve. On an aside, the Guggenheim is offering a day of free admission on October 30, to thank New Yorkers for their patience during the last three years of restoration.