Getting Work Downtown
LMDC Reaches Out to Minority- and Women-Owned Businesses

by Natalie Keith

In the aftermath of Sept. 11, 2001, Manhattan Borough President C. Virginia Fields has heard one question over and over - "where can I get information about doing business in Lower Manhattan?"

The Lower Manhattan Development Corp. tried to answer that question earlier this year during a seminar aimed at reaching out to minority- and women-owned business enterprises. The seminar attracted an audience of 700 and was the first in a series of outreach efforts to M/WBEs, said Amy Peterson, LMDC's vice president, development programs and economics.

Joseph Searles III, executive director, U.S. Department of Transportation Eastern TEAM, said the meetings will also help officials identify M/WBEs for future work. "It doesn't take a rocket scientist to figure out that the economic development we will make in the future is linked to making minorities a greater participant in the process," he added.

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The city has received $20 billion in funding for the redevelopment of Lower Manhattan, $4.45 billion of which has been earmarked for transportation projects. Among projects to be undertaken in the next several years are the 1,776-ft. Freedom Tower at Ground Zero, the $2 billion World Trade Center Transportation Hub, the $750 million Fulton Street Transit Center and the $400 million South Ferry Terminal.

Projects funded with public money must meet requirements for participation of M/WBEs. Although largely privately funded, the World Trade Center projects must meet requirements because the site is owned by the Port Authority of New York & New Jersey.

For instance, the Metropolitan Transportation Authority has a goal of 17 percent M/WBE participation in projects. The MTA expects to award $30 million in contracts by the end of 2004, said Mysore Nagaraja, president of the MTA Capital Construction Co.

"We are going to have goals in these contracts and we will monitor those goals," Nagaraja added.

Officials stressed the importance of M/WBEs being certified with public agencies that provide business for the construction industry. To streamline the certification process, the Port Authority developed a uniform certification procedure that will allow reciprocity with four other public agencies.

Under the program, applicants that become certified with the Port Authority can submit information to the New Jersey Department of Commerce & Economic Growth Commission, the New Jersey Department of Transportation, New Jersey Transit Corp., New York Department of Economic Development Division of Minority and Women's Business Development, the New York City Department of Business Services Minority and Women-Owned Business Enterprise Program, and the New York City School Construction Authority.

James Heyliger, president of the Association of Minority Enterprise in New York, cited two past projects - a federal office project in Jamaica, Queens, and a JFK Airport project - where minority participation was high. He pointed to a minority oversight committee as the reason for the success.

"Being certified never guarantees work; having funding in place never guarantees work," Heyliger said.

One way that M/WBEs have been successful in getting more work is through strategic joint ventures, such as the one Turner Construction Co. has had with Santa Fe Construction Corp. for 17 years. The two New York City-based firms have done $250 million worth of work together. Peter Davoren, president of Turner Construction, said the relationship is beneficial because it provides "value added" to a project.

"It's really been a mentor, protégée relationship," said Desmond Emmanuel, principal of Santa Fe Construction Corp. "We'd be fooling ourselves if we said we brought the same level of assets to the table."

Prior to entering into a strategic partnership, however, M/WBEs must consider factors such as the reputation of the partner company, the principals of the firm, the level of risk involved in the relationship and whether they can provide the desired services, said Louis Coletti, president & CEO of the Building Trades Employers' Association.

"If the job goes bad, the reputation of your firm will be hurt," Coletti added. "It won't just be the other guy's fault."

Several of the workshops held during the conference were dedicated to providing information about current opportunities for M/WBEs. Michael Breen, chief information officer of the Hudson River Park Trust, said the agency is currently in the design phase for the remaining 4 mi. of a park that is being developed on Manhattan's west side along the Hudson River.

This phase of work is generally referred to as Segment 6 & 7 of the Hudson River Park project. Although by law it must select the lowest bidder, the agency has committed to giving 17 percent of the $400 million in work to M/WBEs, Breen said.

"Construction is where we're spending most of the $400 million, but there are also maintenance opportunities," he added.

Among opportunities - which are posted on the New York State Contract Reporter at www.nyscr.com - are Piers 66 and 81 waterfront structures; upland park construction; general construction, electrical, mechanical and plumbing at a West 44th Street park building; and general construction, electrical, mechanical and plumbing at the Pier 84 boat house.

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