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Industry Roundup - February 2006

Stamford Plans Major Redevelopment

The city plans major changes for its southern neighborhoods. Also, New York City takes ownership of several Brooklyn piers poised for redevelopment.

Brooklyn Piers Change Hands

The Port Authority of New York and New Jersey announced that it will transfer key waterfront parcels in Brooklyn to the New York City Economic Development Corp. by next year.

The authority will release Piers 7 to 12 in March 2007, by which time the development corporation will have gone through the city's Land Use Review Process for the properties. The city agency scheduled a detailed planning study for the piers this month.

The authority has already transferred piers 1 to 5 to the Brooklyn Bridge Park Development Corp., and the authority will also transfer Pier 6 at the end of its current lease. In addition, the Port Authority agreed to invest $75 million to maintain its piers not serving passengers. Construction of a new cruise passenger terminal and parking facilities at Piers 11 and 12 in Red Hook should be completed this spring.

Stamford Redevelops South End

Demolition of a former Pitney Bowes complex in the South End neighborhood of Stamford, Conn., marks the beginning of a massive redevelopment expected to bring investment to the underserved area.

The first stage involves removal of asphalt pavement from the 22-acre site, as well as removal and abatement of lead paint and asbestos from the buildings. The entire site is expected to be leveled this May.

Antares Investment Partners of Greenwich, Conn., purchased the site, one of three the developer acquired over the past year in Stamford. The land comprises a total of 82 acres and includes the Admirals' Ward and Yale & Towne sites. The company had announced it would assign a master planner by the end of last year.

The $2 billion multiphase redevelopment of South End involves a series of public-private partnerships between Stamford's municipal government, Antares, and the South End Neighborhood Revitalization Zone, which is a local group established to promote development and involve local residents in the process. The arrangements vary by individual parcel, with the city retaining ownership of some plots and leasing them to Antares, as well as some joint financing of development efforts.

N.J. Approves Pay-to-Play Ban

New Jersey state leaders adopted a new law that extends its so-called "pay-to-play" ban, allowing municipalities, counties, and school boards to pass stronger laws restricting the issuance of public contracts to private entities that make political contributions.

The law builds upon legislation passed last March that restricts the issuance of state contracts to companies that make certain types of campaign contributions to candidates for state office.

Industry Association Chides Trump

The New York Building Congress admonished Donald Trump in a letter sent late last year because of the New York developer's testimony before a U.S. Senate panel about the planned United Nations headquarters and the city's construction industry.

The building congress, which counts the Trump Organization as a member, issued a letter criticizing the "denigrating" statements that it contends Trump aimed at the construction industry when he testified before the Subcommittee on Federal Financial Management, Government Information, and International Security last summer.

The organization asked the Senate to invite its industry members to testify in the future. In addition, the building congress asked Trump to provide the names of any unscrupulous companies. According to transcripts of his testimony, Trump used the word "slime" in a general reference to city contractors. His office did not reply to a request for comment.

Court Decision Limits Arbitration

A recent New York state court decision has struck down a mandatory arbitration clause that architecture firms often use in contracts with owners and developers.

The Appellate Division of the Second Judicial Department in Brooklyn issued a unanimous ruling last fall in Ragucci v. Professional Construction Services, striking down a mandatory arbitration provision that the American Institute of Architects had established to resolve residential architectural service disputes. The court argued the arbitration clause violated Section 399-c of the state's General Business Law, which prohibits such clauses in contracts for the sale or purchase of consumer goods.

The decision essentially equates architectural services to such consumer goods. It was unclear whether the defendants would appeal the decision.


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