Guggenheim drops plan for Downtown museum

Real Estate Weekly, Jan 8, 2003 by Elaine Misonzhnik

Last week, the Solomon R. Guggenheim Foundation announced that it has abandoned its plan to build a new museum on the East River in New York City. Financial difficulties were cited as the reason for the decision, though Guggenheim officials expressed hope that a smaller version of the museum can be still worked into the Downtown redevelopment plan.

Located on Piers 9, 11, 13, and 14, the museum was to contain 570,000 SF of exhibition space and a 279,000-SF public park. In addition to showcasing a spectacular new building design by Frank O. Gehry, it was supposed to serve as the home of the Guggenheim's postwar collection and art works from the State Hermitage Museum of St. Petersburg and the Robert Rauschenberg Foundation.

According to the original plan, the new Guggenheim museum was to receive a $67.8 million contribution from the City of New York and the rest of the $950 million project would be funded by federal grants and private donations. Unfortunately, the project was postponed first by the terrorist attacks and then by the weakening economy.

"Given the current situation, the Guggenheim project has to be rethought, perhaps on a more modest level, and certainly in the context of the city's master plan for the development of Lower Manhattan," said Thomas Krens, director of the foundation. "But we still believe that the Guggenheim needs an expanded facility at some point in the next 10 years and we have assembled some of the necessary resources."

Andrew M. Alper, president of the New York City Economic Development Corporation, said in a published statement that he thinks the museum's decision a wise one.

"A new Guggenheim museum could have been a marvelous addition to the Downtown cultural community," he noted. "But given the museum's current financial difficulties, we understand and support their decision."

According to Guggenheim's officials, however, the plan is sure to be implemented eventually, even if in a reworked version.

"The Guggenheim's proposal to construct a grand cultural facility on the East River was an inspiring and magnificent concept, and one which could have a profound impact on the economic and cultural life of the area," said Peter B. Lewis, chairman of the Guggenheim Foundation. "I remain personally committed to supporting an extraordinary architectural and cultural project for Lower Manhattan. I am looking forward to seeing this project, on another scale and perhaps at another place, realized in the years to come."