Riverwalk project RIP - proposed development on East Side, New York, New York cancelled; rest in peace

Real Estate Weekly, August 19, 1992

Plans by Related Companies to build a mixed-use project on Manhattan's East Side, have been officially sent out to sea.

In a letter dated Aug. 5, Carl Weisbrod, president of the Economic Development Corporation, informed developer Stephen M. Ross, president of The Related Companies, that he was dedesignated as the developer of the proposed Riverwalk Development and deemed the project officially dead.

Weisbrod cited the project's inability to "obtain the approvals that are required by law ... " and the failure of the developer to present any new proposal "that might be acceptable to the community and the public officials who must approve the proposed project." He also said that the city has not made pursued any alternative uses "for this important site" while Related's designation still exists.

The $750 million project was to be constructed mostly on 5,000 pilings on the East River. It called for 1,888 apartments in four high rises aid townhouses, two marinas, parking for more than 2,000 cars, a hotel and a 40-story office building.

The project, which had been certified by the New York City Planning Commission, was withdrawn from the Uniform Land Use Review Process (ULURP), in February 1990. According to Weisbrod's letter, certification has been terminated.

Weisbrod also stated that the developer nor the city, which both spent money on initial analysis and preparations, owed eachother any money.

Riverwalk met its nemesis in its own backyard. Community Board 6, elected officials and a coalition formed to fight the project rejected the project vigorously. They asserted, among other claims, the project would strain city services, cut off public access to the water, and cause extensive environmental damage. Jesse Maysr, counsel for Related, last week told Town and Village, an Eastside weekly, that the city was inaccurate in saying the developer had not moved forward on the project.