23rd St. could be site of city's newest BID

Real Estate Weekly, May 7, 2003 by Linda Barr

A drive is underway to create the city's newest Business Improvement District in the 23rd Street neighborhood from Third to Sixth Avenues along East 23rd Street and from 21st to 29th Streets.

The aim is to take an eclectic group of small and large businesses, unkempt stretches of sidewalk, picturesque parkland, panhandler hangouts, fine restaurants, luxury apartments, illegal canopies and national landmarks and put the neighborhood back at the top of the "places to be and be seen" in New York.

"This neighborhood has a long and rich history," said Sharon Ullman, president of the 23rd Street Association, which is co-ordinating the effort. "There is no doubt in my mind that, with the support of our BID partners, it can, once again, become a destination rather than an area people pass through on route to some place else. At the very least, the BID will help promote business development and improve quality of life in area."

Operating at full throttle -- which, thanks to the support of Mayor Michael Bloomberg and many of the biggest property owners in the neighborhood, should be next June -- Ullman believes the 23rd Street BID will bring the pulse back to an area that, in its heyday, was the heart-beat of Manhattan.

Bob Schwartz, CEO at Eneslow Shoe Store and a member of the BID steering committee, sees the creation of the BID as a win-win for the neighborhood.

"Every one of the building owners I've spoken to thinks it should enhance the property value, and that's always a good thing," said Schwartz, whose company net leases 20,000 SF at 924 Broadway and is one of the smaller partners in the BID to date.

"It is always going to be a balancing act, taking care of big and small buildings," he added, "and that's going to involve everyone becoming pro-active rather than acting individually. But I think a BID is something most neighborhoods have to have if they are going to compete."

As defined by the City Council, a BID is a commercial, mixed use or industrial area in which property owners, business owners and tenants have agreed to pay a mandatory assessment for special services to improve their area in order to increase business, strengthen the economic climate and address quality of life issues. The city collects the assessment and returns the funds, dollar for dollar, to the BID.

New York City currently has 44 BIDs which have been hailed for playing a fundamental role in the renaissance of the city. Sandwiched between two of the most successful in Manhattan -- the 34th Street and and 14th Street and Union Square BIDs -- the 23rd Street partners don't have far to look to see how such public-private partnerships can work to rejuvenate a neighborhood.

Last October, the Bloomberg Administration also announced several initiatives targeted specifically at the partnerships that complement districts with supplemental services, such as street cleaning, public safety officers, street landscaping and restaurant and shopping consultation.

One of the initiatives speeds up the process of forming a BID and, despite the current economic climate, the 23rd Street Association has easily managed to enlist the support of the required 51% of property owners eager to emulate the success of their neighbors.

"There is the argument that this is the perfect time to be setting up initiatives that will draw people to the area," said Ullman.

"What we had to wrestle with was the increases in property taxes owners were facing and come up with a charge that would suit them and still allow us to create a budget to pay for what we need to do."

At six cents per SF, the 23rd Street BID will be among he cheapest in the city, but that doesn't mean there will be any cutting of comers.

Ullman and the partners believe they have defined an area that will allow them to maximize every potential.

"It makes sense to make this a destination point," explained Ullman, as she noted proliferation of new, upscale developments in the area in recent months.

The plush Giraffe Hotel opened on Park Avenue South a year ago and both The Sheraton and the Hampton Inn are due to open hotels this summer, on 26th and 24th Streets respectively.

"Several new residential buildings have gone up, including the new Caroline luxury apartments on 23rd and Sixth. That brought with it a new Best Buy, a sports club and a restaurant. There are dozens of upscale stores, like Origins, Jo Malone, Ann Taylor. We believe a Home Depot will open in the old Hasbro building soon.

"We have an area rich in history, with such outstanding landmarks as the Flat Iron Building and the beautiful Madison Square Park.

"The neighborhood is ripe for a BID that can only enhance what is already here."

Indeed, the 74-year-old 23rd Street Association (which Ullman has run for the past five years) has played a key role in many of the improvements in the neighborhood to date. It will continue to play a major role in the area. As Ullman explained, "There are a lot of things the Association does that it can continue to do and its area is larger than the proposed BID.