Revitalizing Lower Manhattan addressed at symposium

Real Estate Weekly, Nov 10, 1993

The feasibility of revitalizing Lower Manhattan and proposals for improving the area and implementing changes were presented at a recent symposium entitled, "Can a Public/Private Partnering alleviate the 'Empty Building Syndrome' of Lower Manhattan?"

Sponsored by the Global Economic Action Institute, Lehrer McGovern Bovis, BOMA New York, and Rose Associates, Inc., the program brought together concerned individuals of diverse disciplines to focus private and public attention on the old and empty buildings of Lower Manhattan that are unable to support modern businesses.

Some of the key speakers and panelists included: Mitchell L. Moss, director, Urban Research Center, Robert F. Wagner Graduate School of Public Service, New York University; Carl Weisbrod, president, New York City Economic Development Corp.; Paul 0. Manning, senior vice president, Lehrer McGovern Bovis; Dan Rose, president, Rose Associates. Inc.; Sandy Frucher, executive vice president, Olympia & York; and Prof. Peter Salins, director of the Graduate Urban Planning Program at City University of New York. Alair Townsend, vice president and publisher, Grain's New York Business, was a facilitator.

"Historically, Lower Manhattan was the gateway to New York," said Mitchell Moss in his keynote address. "It is still a vital center of activity and an important source of tax revenues, accounting for 8 percent of all New York City taxes."

Moss noted that while almost 500,000 people work in the Wall Street area, it has suffered a loss of over 30,000 jobs in the financial services industry as a result of the stock market collapse in 1987. More than 20 million square feet of office space in Lower Manhattan is unoccupied at a time when slow economic growth will continue to reign and competition from midtown is at a peak.

Despite the glut of technologically obsolete buildings in need of renovation, there are opportunities for rehabilitation, according to Paul 0. Manning, Lehrer McGovern Bovis, a leading international construction management firm. He estimated that new construction costs in New York are approximately $114 per gross square foot, compared to a range of $39 to $111 per square foot for a complete rehabilitation.

"It is economically feasible to renovate these older structures," Manning noted. "And aesthetically speaking, there are a great many beautiful buildings from the 1920s and 30s that cannot be duplicated and deserve to be preserved."

Peter Salins suggested that some of these structures could be converted to residential use. "If zoning regulations and building codes are liberalized we could begin to see a great deal of adaptive use reconstruction start to take place."

Speakers identified other challenges facing Lower Manhattan, foremost being the need for improved accessibility and transit facilities, including the establishment of direct service to Newark Airport and ferry service. Subway stations should be modernized, friendly signage installed to direct visitors, and amenities created to upgrade and beautify the district at ground level.

Most of the panelists agreed that change will require massive government intervention to create conditions for the growth and creation of jobs and businesses. Small businesses, in particular, should be targeted and encouraged to locate in Lower Manhattan through economic incentives. Some possible inducements are to waive the unincorporated business tax and to defer real estate taxes.

"Lower Manhattan is salvageable and worth saving," added Stephen Siegel, president, Edward S. Gordon Company, "but we need to remove the economic barriers."

Said Professor Moss, "Making Lower Manhattan a high quality work locale and a destination place is an important strategy that will take enormous political support and financial commitment from both the private and public sectors."