Why is the WTC taking so long? (RENY)


Link to full Story
Cody Lyon
Excerpts from "Real Estate NY" and globeSt.com

Meanwhile, for its part, the Port maintains it's met obligations called for in the 2006 Master Development plan, and "continues to meet them." In August, Port Authority executive director Chris Ward argued that any arbitration decision under the 2006 MDA will not resolve the question of 'when there will be a market for the two private office towers on the site, and how the 'speculative' private office space should be financed.

Almost sadly, the squabble of today seems decades away from the time eight years ago, when at least officially, a consensus emerged, that foresaw the timely rebuilding of the World Trade Center as a message of defiance and triumph that would serve as a symbol of New York City's economic and real estate dominance as well as the major catalyst for revitalizing Lower Manhattan.


Another Excerpt:
Pataki tells Real Estate New York "we had an obligation to keep Lower Manhattan a viable commercial center, in fact, the financial capital of the world." He adds, "that's why, the commitment was made, not to just have the memorial, the transit hub and the upgrading of infrastructure facilities, but, as the insurance documents required, the reconstruction of office space."
Full story link

NYC Seeks "Fresh" Grocery Store Developers


EXCERPT from globeSt.com:

"Part of what the incentives are meant to do is attract the attention of the business community to the opportunities they've been missing out on," Ben Thomases, New York City's first ever food policy coordinator, tells GlobeSt.com. He and representatives from other city agencies spearheading the proposal believe that "landlords, developers and supermarket operators haven't quite put together that the growth of population in these communities, and the lack of high quality supermarkets, is a lucrative opportunity."

In fact, according to research by the Center for an Urban Future's City Limits magazine, 1.67 million New Yorkers have, on average, less than one square foot of grocery store space each. Of those, 74,178 have no grocery store at all. More recently, the Department of City Planning summed that up more grimly, saying that three million New Yorkers are caught in areas with limited access to fresh produce, areas of the nation's largest city it calls "food deserts."

The stats tell a typical tale of urban sociological disparity. According to a 2008 study by the New York City Economic Development Corp. and the Departments of Health and Mental Hygiene and City Planning, a good number of the fresh food denied, live in low to moderate income neighborhoods. That lack of easy access and choice contributes to the fact that some city neighborhoods are home to some of the nation's highest rates of diabetes and obesity and all the ills that come with it.

"We have wealthy neighborhoods in Manhattan where less than 10% of the adults are obese, and low income neighborhoods in the South Bronx, north and central Brooklyn where more than 30% of the adults are obese," says Thomases. "Even if you factor out median income or mean educational attainment in an area, you still find that the presence or absence of a quality grocery store makes a substantial difference in health outcomes in that area."

LINK TO FULL STORY at www.globest.com



Notes on a Thursday in Spring, before Memorial Day 2007


by Cody Lyon

cross posted from my blog at codylyonblogolater

The weather goes from cool to warm and the sun is bright this particular Thursday in New York's East Village.  At a Mexican takeout shop, beef tacos are purchased, then eaten sitting on a bench in Tompkins Square Park, under a tree that appears very lush, and filled with chirping birds.

The park is crowded, the playground full of kids, the grass covered with sun bathers, the dog run is noisy, chaotic.

At the dog run, people gather, watching the dogs, apparently a fight has broken out, first between dogs then it spreads among humans. One man pushes another, barks and shouts are traded, as all the dog owners yell at an older man, because of what they say is an aggressive dog.

But the cell phone rings, it's a friend in Alabama, she says hello and the conversation lasts for a while.

She's been dating a new guy, she thinks she really likes him and he's taking her on a trip to Las Vegas.

Near the end, she asks the price of gas and says that it's over $3 a gallon down there. Fortunately, she drives a compact car.

Meanwhile, the older man in the dog run is not leaving, voices are even louder, the others appear mad, they keep shouting at him to leave, the dogs keep barking.

The phone rings again, it's another really good friend, it goes to voicemail.

"Hey, I've had a problem and I need some advice" the message he left said.

Later, after doing some work, a bike ride is taken across the village on 9th Street to the Westside. The bike crosses Fifth Avenue, Washington Square Park's arch is to the south, the sidewalks still crowded even for 8 pm, couples holding hands, more men with dogs, shopping bags are everywhere, summer fashions are here.

The bike makes it to Christopher Street the river is in sight, headed towards the pier, there's music everywhere, smiles cross many faces, but up ahead there is congestion.

Two women in a car are blocking traffic, apparently one took another home, the street is narrow, they're in an SUV, cars begin backing up, horns are being honked. Finally one of the women gets out, she's young, very pretty and she appears oblivious to the anger behind her.

In one of the cars behind the two's, a man who is driving and listening to disco music hollers at her, she doesn't appear to hear it.

"I'd like to go home too b*tch " he screams in a slightly southern accent, while she climbs onto the sidewalk with her IPOD head-phones on.

Once the biker makes it to the river, the sun is gone and the sky is filled with pinks, orange and streaks of red. The river glistens, almost metallic, as the rays of light glimmer from the west that is New Jersey, the mainland.

To the south, is New York's financial district, the skyline still misses it towers but a new one has filled in at least part of the gap.

A man walks by, he smiles, a smile is returned, here appears the peace and that moment of reflection only sharable by writing it down.

A couple walks by, they are laughing, holding hands, one of them just told a story about his Mother and the fact that her voice cracks when she's angry.

A large number of joggers are out, all shapes, all sizes, some run fast, as if they're catching up on training for a marathon. They compete with bikers for space. Sometimes, the shoot each other nasty looks.

In the grass, two women on a blanket appear to have brought in some wine, they better be careful, the park police will give them a ticket.

The view to the south offers New York harbor, the statue of Liberty but then, the geographic direction of Tennessee comes to mind.

The night before, PBS "Newshour" was watched, part of a report was aired, it was called "The Costs of War in Iraq" and was reported by Economics correspondent Paul Solman. That report gave pause to this beautiful and busy day in New York City that was now saying goodbye.

Part of the story showed returning Army reservist Brad Heun of Tennessee.

The "Newshour" report showed Huen as he struggled to get up out of a chair, obviously in great pain. It also offered a photograph of Heun, at an earlier date, a well built, athletic looking young man, who'd probably have fit in with the fit and fast joggers this day in New York.

Heun's vertebrae was crushed in a 2003 truck accident in Iraq.

He now has fused discs, a steel bar in his back and constant excruciating pain in his hip and leg according to Solman's report.

"Literally, it feels as if somebody just took a baseball bat and blindsided you across your back" Heun told the "Newshour".

In the report, viewers learn that the army discharged him with only 20 percent disability, which means no benefits. Heun does get medical care from the VA plus $2,500 a month to support a family of five, but no insurance for his wife or children. He's trying to afford a COBRA policy, but that is too expensive. His 2 year old daughter now needs surgery, but the family has had to put it off, because they simply can not afford it.

Heuen's wife Beverly tells correspondent Solman, that they don't want to do the daughter's surgery at the expense of her not having a home to live in.

"I think it's a disgrace to this country for me to even be sitting here trying to tell you this" she told "Newshour".

Earlier in the report, Brad Heun described his constant physical pain in graphic detail.

"At its worst, I have been on an emergency room gurney, curled up, and not even be able to concentrate on simple questions" he told "Newshour".

Concentrating on simple questions, during a sunset along the Hudson in New York City overcame earlier observations of urban life. Questions about the fate of the around 25 thousand seriously injured military members coming home from Iraq begin to puncture the relative calm of an evening by the river. How many limbs have been lost, how many bones crushed, how many skulls shattered, how many bills not paid, how many minds damaged? Why?

Suddenly, some questions appeared to have answers.

Memorial Day was just a few days away.

Silverstein Says 2004 WTC Plans Must Stand


Full text at GLOBEST.COM

Responding to the buzz created by a New York Daily Newsstory Monday that details an "incredible shrinking World Trade Center," Janno Lieber, president of Larry Silverstein's World Trade Center Properties, says in a statement that the developer is "committed to the plan all stakeholders agreed on in 2004 and reaffirmed in 2006."

Primarily blaming symptoms from the recession, the Daily News reported that Port Authority of New York and New Jersey wants to do away with three skyscrapers at the site by shrinking Towers 2 and 3 to four or five-floor stumps, suited more for retail than office.

But sources familiar with Port Authority goings-on tell GlobeSt.com that the information in the Daily News story has been in the public domain for weeks, if not months. They say that the Port Authority's position is that Silverstein's Tower 4 should be built while 2 and 3 shouldn't move up to skyscraper status until there's a market to handle the office space Downtown

Bloomberg Calls Summit at WTC; PA wants Scaled down Project


LINK TO FULL STORY

EXCERPT

A spokesman for Bloomberg tells GlobeSt.com that he wants to help break the current impasse. "He wants to make sure they're talking," says the spokesman. "The mayor is a firm believer that Lower Manhattan is going to come back and we need to invest, and there are billions of dollars being invested now downtown, but, he wants to make sure we continue to see that," says the spokesperson.

Drawing on history, Silver told the Downtown Lower Manhattan Association breakfast that former New York Governor Nelson Rockefeller, along with brother David, and the Downtown Association, led the effort to build the original World Trade Center even though demand for office space in Manhattan was weak.

As Angus K. Gillespie's book titled Twin Towers: Life of New York City's World Trade Center points out, as plans for the site became more clear in the 1960's, private real estate developers and members of the Real Estate Board of New York raised concerns about the 'much subsidized' office space going on an open market that had a glut of vacancies.

Trouble with TALF?


EXCERPT FROM GLOBEST.COM 

According to analysis compiled by REEcon, the Fed anticipates an increase in securitization and a corresponding increase in loan origination activity, which in turn will enhance lenders' capacity to refinance maturing mortgages, originate new mortgages and support the specific financing needs of investors seeking to acquire properties in distressed sales. More simply, "it's drawing in private capital from a variety of sectors which theoretically bring in all this money that's sitting on the sidelines to purchase these securities and start lending again," Clifton Rodgers, SVP at industry group the Real Estate Roundtable, tells GlobeSt.com.

Pleas for increased liquidity have been coming in loud and clear from the commercial real estate community for several months now as banks, hard hit by the economic downturn, have virtually frozen lending. According to the Fed's Senior Loan Officer Opinion Survey for April, 66% of domestic banks reported tightening commercial real estate lending standards in the first calendar quarter.

Dimming hopes of future relaxing of standards is a growing lack of faith by banks in the quality of commercial mortgage quality. Standard & Poor's recently placed $100 billion of CMBS issued from 2004 to 2008 on negative watch. Fitch Ratings followed suit with $18 billion of CMBS issued between 2006 and 2008. "We have numbers showing that more than 90% of domestic banks think the commercial mortgage quality is going to deteriorate, with 26% of those saying it's going to deteriorate substantially," says Chandan.

Raising the cash flow alarm volume higher, the RER says that over the next few years, the commercial real estate industry faces a liquidity crisis of mammoth proportions. Of the $6.7 trillion of assets compromising the greater commercial real estate market, around $3.5 trillion is debt. Around $10.7 billion worth of CMBS loans are currently delinquent or have defaulted, according to data from the Commercial Mortgage Securities Assoc.

LINK TO FULL STORY

NYC MTA Doomsday Near: Possible Subway Shutdowns in Late Evenings


NEW YORK CITY-If Albany fails to reach a workable solution to close the Metropolitan Transportation Authority's budget gap over the next few days, the daily commutes for eight million New Yorkers will become more expensive, and the time it takes to get from point A to B, will increase markedly. In addition to decreased rail service, several bus routes will disappear on weekends and evenings while others disappear entirely. In fact, if a new funding mechanism does not see consensus at the state capital, the city that never sleeps may eventually see a complete shutdown of the transit system during late evening hours, under a "beyond doomsday" scenario MTA outlined on Wednesday after revealing that its deficit is even wider thanoriginally forecast.

Fallout from what the MTA calls its "doomsday" plan has begun to spur outrage among city residents. On Tuesday afternoon, transit advocates came together with concerned citizens in Manhattan's Union Square, raising their voices against the proposed cuts. One speaker, 76-year-old resident Carl Van Putten of Hunts Point, shouted "where I live, we're not talking about inconvenience, we're talking about survival." Speakers at the event, largely organized on social networking site Facebook, sought to persuade attendees that New York City's economic backbone is its transit system and without it, the entire city suffers unimaginable trauma.

"I think it's a big myth that's been around for around 50 years that New York is somehow not a mass transit town," Wiley Norvell, communications director for the group Transportation Alternatives, told GlobeSt.com as trains rumbled underneath during another rush hour at the Union Square subway hub.

According to the MTA, a plethora of service cuts will be phased in over the next few weeks and months. The cuts began Thursday, as the traditional seasonal Long Island Rail Road service to Belmont Park was eliminated. But perhaps the true reality of the crisis will begin to settle in on May 31--when fare hikes of up to 29% are set to start on the subways and buses, with LIRR and Metro-North following suit the next day.

Then, June 28, train service cuts begin on a set of subway lines that reads like an elementary school chalkboard. The A, D, E F G N, Q and R lines will all see significant service reductions that day. Meanwhile, a list over two pages long details bus routes that will be either sharply reduced or eliminated entirely cutting off entire neighborhoods from the transit network.

New York City Officials Introduce 'Green' Mandates: Details to be Ironed Out


EXCERPT from GLOBEST.COM

Contained in the proposals announced by Mayor Michael Bloomberg on Wednesday are mandates that require older buildings to invest in necessary technology and infrastructure that would increase energy efficiency and reduce the city's carbon footprint. New York City's buildings are responsible for 80% of its carbon emissions. The investments could prove costly, but promise tremendous savings in power bills for thousands of properties.

In a release, Bloomberg says his plan "will significantly improve economic competitiveness, put thousands of New Yorkers to work in green jobs, and do more to shrink our own direct impact on global warming than any other actions imaginable." Speaking to the perilous economic times, Mike Fishman, president of the Service Employees International Union's Local 32BJ, the largest private sector union in New York, says in a statement that the initiative would "protect the environment, boost the real estate industry and get workers the training they need to get ahead."

Owners and industry groups agree that the city's initiative is bold, but worry that it could prove intrusive. There are worries that a "one size fits all" approach by government may not prove effective in a city of such wide diversity within its building stock. "In a city with buildings as complex and diverse as New York City, each building's situation is unique and the extent to which it can perform energy upgrades is best evaluated and acted upon by the owner and manager," says a statement from the Building Owners and Managers Association's New York chapter.

LINK

Most Constituents in Bridge Toll Opponent Districts: Take Public Transit


EXCERPT FROM STORY AT globeSt

Apparently, the biggest point of contention in the Ravitch Plan has been a proposal to charge automobiles crossing the East and Harlem rivers to come into Manhattan. That proposal has met stiff opposition from a group of state Senators, primarily Karl Krueger of Brooklyn's district 27, Pedro Espada from the Bronx's district 33 and Rueben Diaz of the Bronx's district 32.

Even a plan that included lower bridge toll fees, part of a compromised version of the Ravitch Plan proposed by Assembly speaker Sheldon Silver was not acceptable to toll opponents. As New York Building Congress president Richard Anderson told GlobeSt.com in March, "it seems clear, the state senate is being driven by avoidance of Harlem River and East River tolls."

Interestingly, the number of residents who drive to work in the districts represented by opponents to the Ravitch Plan are tally almost 2-to-1 public transit users. In fact, according to RPA data, of the 100,529 residents who commute to work in Krueger's district, 44,534 drive to work while 55,995 take public transit.

Similarly, of the 82,015 commuters in Diaz's district, 22,936 drive daily while 50,906 take the subway and/or bus. In Espada's district, 77,284 commute daily. Of those, 54,348 take public transit while only 22,936 drive a car. Drivers did slightly outnumber transit takers among Brooklyn district 26 and Bronx district 32 residents who earn more than $100,000 per year.

LINK TO FULL TEXT

D.O.E. Kicks off new Public/Private Green Building Initiative



NEW YORK CITY-The US Department of Energy, commercial real estate executives and officers from the Buildings Owners and Managers Assoc. have launched a public-private initiative to reduce energy consumption and the resulting carbon footprint of the nation's commercial buildings. The kickoff event for the Commercial Real Estate Energy Alliance was a meeting held Thursday afternoon at 7 World Trade Center, the first LEED Gold-certified office tower in Manhattan.


Despite increasingly sour times in the market, 18 representatives from some of the nation's largest commercial real estate companies took part in the event. "You give evidence to this being the right time for this initiative by looking at who was here," Richard D. Purtell, chair and CEO at BOMA tells GlobeSt.com. Purtell, also portfolio manager at Grubb & Ellis, stresses that "this is the time to do this: right now and not wait."

Adds Diane Vrkic, COO of global energy sustainability services at Jones Lang LaSalle, "There could be a lot of growth around these alliances. It seemed as through all the different individuals here, who came to exchange ideas, seemed to benefit from these exchanges."

link

China's Vantone Signs 20 yr Lease at 1-World Trade Center


LINK TO FULL STORY AT GLOBEST

NEW YORK CITY-Vantone Industrial Co., Ltd., one of the largest real estate investment companies in China, signed a 20-year lease for 190,810 square feet of space at the future One World Trade Center. Following the signing on Thursday at the monthly meeting of the Port Authority of New York and New Jersey's board, Vantone provided a $10-million letter of credit to the authority, which owns the tower.

The deal paves the way for a Vantone unit, China Center New York LLC, to build out a business and cultural facility that will occupy portions of the 64th floor as well as the entire 65th through 69th floors of the 102-story tower now rising at Ground Zero. The new facility will serve as a hub for Chinese firms developing US operations, as well as US companies looking to do business in China or expand ongoing operations.

Contrary to widely reported name changes, Port Authority spokesperson Steve Coleman confirmed to Globest.com, that One World Trade Center still incorporate 'Freedom Tower' as the second half of its name.

Full text Link


Cal Pension Funds seek to lead Lawsuits against Bank of America


EXCERPT FROM GLOBEST.COM 3/25 story:

The California pension funds--which together own 21 million Bank of America shares, and both of which are active in commercial real estate nationwide--join eight other shareholder lawsuits filed against the Charlotte, NC bank. CalPERS says filing for lead plaintiff enables lawsuits to be consolidated and managed effectively.

Geoffrey Miller, New York University law professor, tells GlobeSt.com that CalPERS frequently acts as a lead plaintiff because "under the governing statute it is quite often the party with the largest financial stake in the litigation, and because it has a bit of an activist stance towards managerial issues."

In a statement, CalPERS board president Rob Feckner says "shareowners did not have complete or accurate information prior to approving the merger and the failure of Bank of America to provide it sent the stock price down dramatically," adding that bonuses paid to Merrill executives were not disclosed to shareholders prior to the merger which compounded the harm done."

Miller tells GlobeSt.com that cases alleging false statements in proxy information sent to shareholders in connection to votes on mergers are common, but the nation's financial crisis issue puts a special spin on this one. "Under normal conditions, this could be a pretty strong case, but these are not normal times," he says. "The courts are sensitive about putting the banks under more stress."

Further evidence of frustration with BofA arose this past Monday when a Houston investment bank, Finger Interests Number One Ltd., filed a notice of exempt solicitation with the Securities and Exchange Commission that urges BofA shareholders to vote against re-electing three bank board members including current chair and CEO Kenneth Lewis at their April 27 meeting. Finger's group also filed a shareholder lawsuit back in January after BofA revealed deeper losses by Merrill.

Finger's 1.1-million BofA shares extend back to the 1996 sale of Jerry Finger's Charter Bancshares to NationsBank, which was later acquired by Bank of America. Over the past year, the value of Finger's' BofA shares fell from $39.6 million to $6.8 million.

full story link

Nation's Crumbling Infrastructure and the Stimulus (Link to full text @ RENY)


Link to analysis piece on the nation's infrastructure at "RENY-digital"...Real Estate New York.  
Experts from ASCE, ULI, BAF along with civil engineers, policy makers discuss the urgent need for infrastructure investment and its relationship with the economic stimulus plan.  
LINK TO FULL STORY

Developer Procida's 100-day Plan to Distribute Capital Locally (GLOBEST)


from my story at GLOBEST.COM

excerpt:


He argues that instead of funneling billions of dollars into the nation's largest banks, the federal government should deploy $100 million, each, to 100 local investment managers

"Time is the key to the plan," Procida tells GlobeSt.com. "If the government had told the banks they had 100 days to deploy the capital they were given, you and I wouldn't even be talking now."

But Procida is talking, and he says he has been attempting to capture the attention of policy makers while hoping to further inject his 100-day plan into the national conversation. Procida says he began writing the Obama transition team last Nov. 25, when he introduced himself and his plan. He stressed an emphasis on localization and a return to banking and business fundamentals. Nine days later, on Dec. 4, Procida wrote again.

also:

Interestingly, on February 4, the non-partisan research group--the Center for Responsive Poitics in Washington--reported that that 161 companies approved for TARP money gave $37.5 million to federal candidates, parties and committees in the 2007-2008 election cycle. According to the group's report, the companies giving the most to fund lawmakers campaigns and spending the most on lobbying efforts were also those that received the most TARP money.

LINK TO FULL STORY AT GLOBEST.COM




Touting Infrastructure: Harry S Dent said this Is no Ordinary Downturn


LINK TO FULL STORY AT globeSt.Com

NEW YORK CITY-The current downturn is no ordinary economic crisis and nothing like it has been seen since the 1930s, economist Harry S. Dent told a CoreNet Global audience here on Friday. Author of The Great Depression Ahead: How to Prosper in the Crash Following the Greatest Boom in History,Dent warned attendees at the CoreNet luncheon not to expect miracles from President Barack Obama's stimulus package.

He predicted that the current administration will put up around $3 trillion to $4 trillion in stimulus to try breaking the current downturn. But Dent said he sees the country as rounding the bottom of the crisis and over the next year and a half, the economy will have what he called a "choppy, wimpy bounce."

"We have a downturn that will not be inflationary," and instead "will be deflationary," he said. Tossing humor into the pain-filled punch, Dent said, "this much stimulus is like taking a whole bottle of Viagra and not having anything happen."

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