Governors Island consensus reached?

Real Estate Weekly, Jan 12, 2000 by Lois Weiss

A $370 million joint plan to turn Governors Island into a thriving multi-use mecca- featuring a central conference center along with cultural, educational, historical and museum components - was proposed last week by city and state officials.

The congenial announcement came after years of wrangling over exactly what should happen to the 172-acre former Coast Guard base that is being de-acquisitioned by the federal government.

Under the proposal, New York State and City would each contribute $15 million of the development costs. Private investment would pay for an additional $340 million in improvements to the buildings, which would be awarded under long-term leases after some sort of Request for Proposals process. About $40 million is expected to be taken in from these leases annually.

New York State intends to set up a new operating authority for the Island under the aegis of the Empire State Development Corporation. This entity would be responsible for the overall management of the Island, and coordinate its infrastructure and land development.

Eventually it would issue the RFPs designed to follow this master plan for divvying-up and leasing-out of the Island's many historic buildings and facilities, five of which are landmarked by New York City.

The hotel conference facility, for instance, is intended to be located in along, E-shaped structure known as Liggett Hall that formerly housed the Island's bachelor's quarters. This is the largest building on the Island and runs from east to west, separating the northern historic district from the southern ball-fields and more modern buildings, some of which will be razed to create a 50-acre park.

According to General Services Information, the 1930's-era barracks was the first Army structure to contain office, classroom and living space for an entire regiment and was rumored to have been constructed to prevent the Island from being leased as a "municipal" airport. Other officers quarters in this Nolan Park area would become part of the hotel and spa complex.

Two of the landmarked structures, Fort Jay and Castle Williams, are now expected to be operated by the National Park Service as tourist sites, an idea that had long been fought by the Feds but had been recommended by an earlier task force. The Castle Williams Stockade once held Walt Disney for being AWOL during World War I, and during World War II, Rocky Graziano did a stretch there for the same offense. A military history museum is expected to also be established in that area.

While the northern portion of the Island is a Federal National Historic District and designated by the City as a City Historic Landmark District, the southern portion of the Island would be developed into a 50-acre public park, and several of those buildings left standing would become tourist-oriented and house museums. One would focus on the ecology of the Hudson River and New York Harbor, and probably include a small aquarium.

An aquarium had initially been fought by Brooklyn Borough President Howard Gold-in over fears it would take visitors from the Brooklyn Aquarium. In reality, the Wildlife Conservation Society, which runs The Bronx Zoo, Central Park Zoo and the Aquarium, could itself respond to the RFP and create this new museum.

Another tourist stop would be an historically themed family entertainment complex, similar to an attraction at Colonial Williamsburg, which would relate history in an entertaining way.

Local universities are expected to share new football and soccer ballfields and perhaps some of the other buildings.

There would also be room for artists' studios and a sculpture garden.

The current waterfront promenade would be upgraded and encircle the entire Island, which is accessible only by ferry.

Robert Pirani, director of environmental programs for the Regional Plan Association (RPA, which has advocated a similar fate for the Island, said "It will become a major civic and cultural center for New York Harbor."

"It's a very good and appropriate use, but I won't be a bidder," said Donald J. Trump, the developer who once flirted with building skyscrapers there.

There are still many "ifs" and a trail of mini-RFP's ahead before the first tourist sets foot on the Island.

While New York City ceded the property to the Federal government almost exactly 200 years ago on February 15, 1800, it had been used since 1624 as a fort, and officially purchased by the Dutch Governor of New Netherlands in 1637 from the Manahatas Indians for "two ax heads, a string of beads and a few nails."

The Island's size was nearly doubled to its current 172 acres above water and 32 submerged acres in 1901 during the construction of the Lexington Avenue -Subway, when a seawall was created and nearly 5 million cubic yards of dirt was added to the original 90.

The Feds placed a $500 million pricetag on the isolated island for accounting purposes and included that figure when the Balanced Budget Act of 1997 was passed, but Senator Daniel Patrick Moynihan had obtained an offer from President Bill Clinton in 1995 to turn it over for $1 if the city and state could agree on a plan.