2012 Ad

Real Estate Weekly, Nov 13, 2002 by Elaine Misonzhnik

Last week, the United States Olympics Committee announced that New York will represent the country in the bid for the 2012 Olympic Games. The news gave way to wide-spread enthusiasm among public officials and real estate developers, despite concerns about transportation problems, security, and the city's dire financial situation.

Noting that most of the Olympic projects will be paid for with private money Mayor Michael R. Bloomberg noted that "bringing the Games to New York would celebrate the city's unequalled diversity and resilience, and would make Olympians from every country feel welcome."

In preparation for the Games, New Yorkers would get a new stadium on the West Side of Manhattan, an extension of the #7 subway line, a residential development that will house the Olympic Village in Queens West, and an expanded Javitz Center. But, according to the people involved in the planning process, most of these projects would be undertaken regardless of whether New York wins the final bid.

"Some of these projects, including the Javitz Center and the subway lines, will start even before the winner is announced," said Ed Malloy, head of New York's Building and Construction Trades Council. "And they will be done, even if we do not succeed in the competition. But I think that the Olympics will be a tremendous boom for the city and will be great for the economy.

Another major force in the construction industry, Louis J. Coletti, president and CEO of the Building Trades Employers' Association, thinks that any concerns about security or gridlock are absurd and do not take into account the big picture.

"The bottom line is that it will be a tremendous boost to the economy," he said. "Not only from the Olympics itself, but the stadium, for example, will also provide a strong foundation for further development on the West Side. I don't think people realize that we will be in for some tough times over the next few years and we need projects that will generate tax revenues and benefit the whole city."

All the borough presidents seem to be thrilled with the idea of the Olympics, especially if it means new transportation, major sports venues, or new housing for their part of the City.

"There is no place in the world like New York City, and that is why it makes so much sense to bring the world's biggest event to our backyard," said Marty Markowitz, Brooklyn borough president. "Brooklyn is the perfect representative of the Olympic movement--we are the home to everyone from everywhere. That is why our borough should naturally play a key role in helping to stage these spectacular games, which would be a huge economic benefit to both the borough and to the entire City."

Helen Marshall, Queens borough president, whose borough would be the home of the Olympic Village and would benefit accordingly, noted that "The Olympics will bring infrastructure improvements to New York, in addition to thousands of athletes and millions of visitors who will fill our restaurants, hotels, arenas, and cultural attractions. Talks and plans must now continue as we work to resolve concerns about the central role that Queens could play in the 2012 Games.

But what about traffic concerns and the possibility of terrorism, especially in a crowded urban center like New York?

"If you look at what has happened since 9/11, we hosted the Marathon, the United Nations meeting, we had parades, and 2 million people in Times Square--I don't think there is any question as to our ability to provide security," said Malloy. "And I think that most of the visitors will be traveling through mass transit, so there shouldn't be a problem."

According to Coletti, "Transportation disruption is a normal occurrence in an urban area. We have to look at the longer view and having the Olympics in New York City will be a major benefit for all New Yorkers."

The final competition for the capital of the 2012 Olympic Games will take place in 2005. Other cities in the running include, among others, Moscow, Rome, Baghdad, and Instanbul.