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Industry News - September 2008

Revitalization Aims to Reconnect Lower Manhattan

Vision unveiled to integrate South Street Seaport with rest of Lower Manhattan. Also, WTC construction hits snag.

Shopping Mall Removal Sparks District Revitalization

In an attempt to eliminate the disconnect between the dilapidated, touristy Pier 17 and the Lower Manhattan community, Chicago-based developers General Growth Properties have unveiled a plan to revitalize the South Street Seaport area.

In an attempt to eliminate the disconnect between the dilapidated, touristy Pier 17 and the Lower Manhattan community, Chicago-based developers General Growth Properties have unveiled a plan to revitalize the South Street Seaport area.
In an attempt to eliminate the disconnect between the dilapidated, touristy Pier 17 and the Lower Manhattan community, Chicago-based developers General Growth Properties have unveiled a plan to revitalize the South Street Seaport area.
( Rendering courtesy of SHoP Architects. )

Designed by SHoP Architects of New York, the new Seaport will include an extension of the downtown street grid onto the pier for pedestrian use which will replace the current mall, rehabilitation of pier and platform infrastructure, over 3.5 acres of public open space, open site lines to the Brooklyn Bridge and New York Harbor as well as expanded water-transit access. The master plan also calls for four, two-story retail buildings, additional retail in buildings across the pier, a boutique-style department store, two hotels and residential space.

According to GGP, by working with the New York City Economic Development Corporation, the plan will “completely preserve” the Seaport’s historic fabric by restoring the landmark Tin Building, rebuilding the former fish market, enhancing the cultural and event spaces, preserving existing structures and adding seasonal programming at Fulton Market Building and Cannon’s Walk. “Pier 17 sits at a critical juncture of two of the city's most important and exciting projects—the East River Waterfront and Fulton Corridor Revitalization,” said New York City Deputy Mayor Robert Lieber. “Investment in a re-imagined Seaport would further enhance Lower Manhattan’s resurgence and expand on the success of a growing adjacent residential neighborhood.” The new Seaport will be incorporated into and add three acres to the in-progress East River Esplanade project, which was also designed by SHoP Architects.

Economic impact was also factored into the recently-unveiled proposal. GGP estimates that the project would create approximately 5,750 full-time jobs during construction and 2,100 permanent jobs by 2017. GGP anticipates the construction phase will create $1.4 billion in economic activity.

The New Seaport will also contribute approximately $33 million in project-related revenue and generate approximately $23 million per year in taxes to the city. “General Growth’s plan reintegrates the Seaport back into the fabric of downtown, offering amenities and more open space to the community while generating new jobs and economic activity that will benefit the whole region,” said Kathryn Wylde, president and chief executive officer of the Partnership for New York City, who is working with GGP as an avid supporter of the proposal.

Project teams will be pursuing LEED Silver certification on the entire site.

General Growth Properties acquired Seaport in 2004 and released the proposal on June 18, 2008. The master plan will be reviewed by the Landmarks Preservation Commission in the fall, and subsequently, will be evaluated under the Uniform Land Use Review Process in Spring 2009. If approved, the developers anticipate breaking ground in 2010 with a four year constructions schedule to follow.

Port Authority Chief Says WTC Schedule “Unrealistic”

In a recent letter to New York Gov. David Paterson, Christopher Ward, the new executive director of the Port Authority of New York and New Jersey, said “unprecedented challenges” are causing “significant delays” in the work at the World Trade Center.

“The schedule and cost estimates of the rebuilding effort that have been communicated to the public are not realistic,” Ward wrote. “In fact ... the schedule and cost for each of the public projects on the site face significant delays and cost overruns.”

Earlier plans had claimed the World Trade Center Memorial – the WTC project with the earliest scheduled opening date – would be completed by 2011. The other projects, including the 1,776-ft Freedom Tower and four other skyscrapers, a transit hub, a performing arts center and retail space have had moving deadlines since plans were announced.

Ward said traffic around the site and competing interests among the project’s numerous “stakeholders” – which include a mixture of public agencies, private developers, more than 100 different contractors and more than 30 designers – have made the World Trade Center site “a construction challenge that is as complex as any in the world.”

Ward also sent Paterson a 34-page report that outlined the challenges the projects are facing, and, though stopping short of setting new timelines and cost estimates, he suggested the formation of a new committee to develop and oversee a more appropriate schedule for the project.

A spokesman for the Port Authority said the agency would not be commenting on any of the findings in the report.

Developer Larry Silverstein, who is building three of the five towers at Ground Zero, said in a statement released Monday that his projects -- Towers 2, 3, and 4, are on track for completion in 2012.

“As demonstrated by the success of 7 World Trade Center, as well as other recent developments in the area, downtown is energized like never before,” he said. “It is vital that we maintain that momentum and finish the rebuilding.”

Old Tiffany & Co. Building Goes Condo

Construction continues on the five- to 12-story transformation of 15 Union Square West in Manhattan.

Originally erected in 1870 as the headquarters of Tiffany & Company, the new residential building in Manhattan, 15 Union Square West, will be a 12-story, 97,000-sq-ft structure designed by Perkins Eastman of New York. ( Rendering courtesy of Brack Capital Real Estate. )
Originally erected in 1870 as the headquarters of Tiffany & Company, the new residential building in Manhattan, 15 Union Square West, will be a 12-story, 97,000-sq-ft structure designed by Perkins Eastman of New York. (Rendering courtesy of Brack Capital Real Estate.)

The building was initially erected in 1870 as the headquarters of jeweler Tiffany & Company and then sold to Amalgamated Bank in 1925. Developer and general contactor Brack Capital Real Estate bought the property in 2006 and retained architects Perkins Eastman of New York to design the first residential conversion.

The new 97,000-sq-ft residential building has been designed to retain some of the original structural elements. “Cast-iron cannot be reinforced, so new structural steel needed to be needled through the existing building to the cellar,” said Issac Hera of Brack Capital Real Estate. “Also, the cast iron was specially treated to maintain and preserve it in order to integrate into the new façade system.”

“Relocating the core of the building and adding seven stories while keeping and maintaining the structural stability and integrity of the existing cast iron building [was a challenge],” explained Hera. “Taking down entirely an existing structure adjacent to the cast iron building and rebuilding it while supporting the existing cast iron structure, and incorporating the old cast iron structure into the new design.” There were also challenges associated with “creating a customized structural silicone glazed façade system incorporating 17-ft-high, and 6-ft-wide single pieces of mullion-free glass – spanning from floor to floor,” he said.

The building façade is a translucent, layered glass skin to preserve the historic cast iron arches. As a tribute to19th-century architecture, the façade is composed of black zinc and a series of elegant glass cubes set at different angles, said the developer.

Residences on the first six floors of 15 Union Square West will retain the original ceiling heights of up to 16 ft and the cast iron arches from the original building structure. Residences on floors seven through 12 feature large outdoor terraces. The building will have 36 units altogether.

Amenities include a pool, fitness center, private storage facility, valet parking and concierge service. Most units will have fireplaces.

Brack Capital Real Estate began construction on 15 Union Square West in April 2008 and the project is slated for completion in March 2009.

BoricuaCollegeConstruction Progressing

Construction is moving along on Boricua College, the center of Boricua Village—a 4.5-acre educational, commercial and residential development in the Bronx.

Boricua College will be a 14-story, 120,000-sq-ft building located in the southwestern portion of Boricua Village—a 4.5-acre educational, commercial and residential development in the Bronx. (Rendering courtesy of Hugo S. Subotovsky Architects.)
Boricua College will be a 14-story, 120,000-sq-ft building located in the southwestern portion of Boricua Village—a 4.5-acre educational, commercial and residential development in the Bronx. (Rendering courtesy of Hugo S. Subotovsky Architects.)

The new building for Borica College—a bilingual school catering to Puerto Ricans with campuses in Brooklyn, Manhattan and the Bronx—will be a 14-story, 120,000-sq-ft building located at the southwestern portion of the site. The structure will include classrooms, a theater, administrative offices, a museum and accommodate approximately 2,000 students and faculty members. The intention of the new building is to replace the current Bronx campus, which has been outgrown.

The Boricua College project team includes developer Atlantic Development Group, architectural firm Hugo S. Subotovsky, general contractor Knickerbocker Construction II and engineering consultant Thornton Tomasetti, all of New York. The glazier is Diversified Glass & Storefronts Inc. in the Bronx, and the fenestration system manufacturer is YKK AP of Georgia.

Knickerbocker Construction II began work on Boricua College in August 2007 and had to demolish the unoccupied Bronx Municipal Court building to begin construction. During demolition, the construction team discovered an unexpected foundation and had to adjust the construction schedule. Now approximately one week behind schedule, Knickerbocker Construction II plans on completing the project in December 2009, a company spokesperson said.

The design for the college facility calls for a blue-tinted glass exterior. The building envelope is almost entirely curtain wall from the fourth floor up and includes a rounded corner. YKK AP designed a split vertical mullion, screw-spline system that could be partially unitized.

“The job site is just coming out of ground and our design is complete,” said Jonathan Dunston, regional business manager of YKK, who is waiting for final approval from the architect to produce the materials for the curtain wall. Their client, Diversified Glass & Storefronts Inc., will then fabricate it and ship it to the job site to be assembled.

A few unforeseen structural obstacles made YKK AP redesign the original plans. “There is a steel beam about two ft high that supports each floor slab which is located only one ft from the slab edge and right underneath is a high beam, too close to the edge,” said Dunston. “So it’s a challenge to install the framing and the glass.”.

In relation to the construction, the curtain wall segment will be installed three or four floors below the general contractor’s progress, who needs the curtain wall installation to keep pace with the general construction, explained Dunston.

As the center of the Boricua Village development, the college will be surrounded by 452 affordable housing units within four buildings, 40,000-sq-ft of retail space and underground parking for 175 cars.

The New York City Housing Development Corporation, which approved $81 million in financing for the housing units, referred to Boricua Village as “one of the largest and most ambitious development initiatives in the South Bronx in recent years.”

Garage Project Could Mitigate NYC’s Parking Problem

Construction teams recently broke ground in on New York City’s largest automated parking garage project.

Construction teams recently broke ground on a 34,000-sq-ft, $45million automated parking garage project, which will be the largest in New York City when completed in 2010.
Construction teams recently broke ground on a 34,000-sq-ft, $45million automated parking garage project, which will be the largest in New York City when completed in 2010.

The 34,000-sq-ft parking facility is being constructed by the team of A.P.T. Parking Technologies, automated parking facility developer located in Manhattan, together with Pennsylvania-based manufacturer of automated storage and parking systems, Westfalia Technologies. Baruch Singer is the developer.

“The selection of our parking system highlights how automated parking can enhance a real estate development opportunity,” said Lee Lazarus, president of A.P.T. Parking Technologies. “Automated parking garages provide greater efficiency and flexibility in design, allowing the developer to use less space for parking and allocate additional space for significantly more profitable revenue streams.”

Designed by Westfalia’s in-house team to maximize parking within the tight constraints of the site, the 270-car facility will be part of a new nine-story, 226,000-sq-ft office building at 1504 Coney Island Avenue in Brooklyn, New York, which Singer is also developing.

The design team could not erect a traditional underground parking facility as the high water table prevented deep excavation. The automated parking garage allows for a greater density of parking spaces in an area half the size of a traditional parking garage, explained a spokesperson for the developer.

“In addition to doubling the number of parking spaces in the available space, the automated parking system provides a number of added personal and vehicle safety benefits, since no one actually enters the garage and there is no risk of vehicle damage or theft,” said Singer. “Additionally, there are significant green benefits, since car engines are turned off during the parking process, and users have the convenience of dropping off and picking up their cars at a central location without having to navigate ramps, walk aimlessly through a garage searching for their cars or risk crime associated with dark, deserted garages.”

A car is moved through the automated garage by a computer-operated system to an available parking space on the two levels below. When returning for their car, clients simply run their ticket through a smart card reader, and their car will automatically be returned to them in one of the transfer cabins. Vehicles will be rotated in the transfer cabins so that clients can drive straight out of the garage. The entire process takes less than two minutes.

“We are very excited to provide our state-of-the-art automated parking system as the solution to the parking needs at 1504 Coney Island Avenue,” said Daniel Labell, president of Westfalia Technologies.

“This area of Brooklyn has had tremendous growth in the last ten years . . . automated parking is the safest and most efficient parking method available, and we’re thrilled to announce our presence in this underutilized area of Brooklyn,” echoed Lazarus.

The $45 million automated garage is slated for completion in mid-2010.

No More Trips to the Drawing Board for Domino

The design submitted in March 2008 (left) was rejected by the Landmark Preservation Commission. The recently approved design (right) incorporated the historic Domino Sugar sign, rescaled the building’s height and addressed the bulkhead and chute issues, all major concerns which thwarted approval in March. (Renderings courtesy of Community Preservation Corporation.) The design submitted in March 2008 (left) was rejected by the Landmark Preservation Commission. The recently approved design (right) incorporated the historic Domino Sugar sign, rescaled the building’s height and addressed the bulkhead and chute issues, all major concerns which thwarted approval in March. (Renderings courtesy of Community Preservation Corporation.)
The design submitted in March 2008 (left) was rejected by the Landmark Preservation Commission. The recently approved design (right) incorporated the historic Domino Sugar sign, rescaled the building’s height and addressed the bulkhead and chute issues, all major concerns which thwarted approval in March. (Renderings courtesy of Community Preservation Corporation.)

After being ordered back to the drawing board earlier this year, the design for the Domino Sugar Factory Refinery in Williamsburg, Brooklyn has finally been approved by the New York City Landmarks Preservation Commission.

After LPC rejected the initial design in February 2008, and then again in March, the developers, Community Preservation Corporation and CPC Resources (managing partner of Domino site owner Refinery LLC), along with architects for the restoring and reusing the Refinery building, Beyer Blinder Belle, submitted designs for approval yet again on June 24, 2008.

At the suggestion of the LPC panel, the new design for the landmarked Refinery incorporated the historic Domino Sugar sign, rescaled the building’s height and addressed the bulkhead and chute issues, all major concerns which thwarted approval in March.

“The new design is distinctive, contextual and responsive. It has an industrial feel, creatively reflecting the building’s history and character,” said Michael Lappin, president of CPC and CPC Resources.

The design also calls for the building to be lower than in previous efforts—a split level with three and four stories instead of five, Lappin added. The chutes that formerly connected the refinery to other structures are also recalled in the design and the iconic Domino Sugar sign will also be restored and featured on the roof.

The developers and Beyer Blinder Belle expressed reluctance to scale down the Refinery at the March hearing, but the project team is now ready to move forward. “The reduction in size translates into a loss of more than 20,000 square feet of residential space or over 20 apartments,” said Lappin after the approval. “This presents an economic challenge that we must meet to fulfill our firm commitment to develop 660 affordable housing units.”

The refinery is the only section of the Domino Sugar Factory that is landmarked and will be the centerpiece of the planned 11.2-acre, mixed-income residential community on the Brooklyn waterfront.

The overall project design by Rafael Vinoly Architects features pedestrian and visual corridors along the upland blocks to the East River allowing waterfront access. A 1,300-ft waterfront esplanade will also be added, as well as three acres of open space on the river-side of the refinery for public use. Retail and community space were also included in the design proposal. The residential component includes 2,200 apartments in the South Williamsburg area—660 will be set aside as affordable housing for low and moderate-income families.

The project will now enter a seven month uniform land use review process required for zoning changes. Following approval, the project is expected to break ground in the fall of 2009.

ChelseaBuildingTops Out

The newest luxury condominiums in the Chelsea neighborhood of Manhattan has recently topped out.

The newest luxury building at 200 11th Avenue in the Chelsea neighborhood of Manhattan has topped out and all concrete has been poured on the 19-story, 61,265-sq-ft building. Photo courtesy of Steven Kratchman Architect.
The newest luxury building at 200 11th Avenue in the Chelsea neighborhood of Manhattan has topped out and all concrete has been poured on the 19-story, 61,265-sq-ft building. Photo courtesy of Steven Kratchman Architect.
Photo courtesy of Steven Kratchman Architect.

All concrete has now been poured on the 19-story, 61,265-sq-ft building. Construction continues on the upper façade, which will be made of stainless steel panels and the four base stories will be terra cotta.

Additionally, the 16-units at 200 11th Avenue will each include sky garages. “[The building] is often referred to as the ‘sky garage’ building, because it’s designed with a car elevator that travels vertically to all of the residential units,” said Steven Kratchman, of Steven Kratchman Architect, P.C of New York, the architect of record. “Each luxury apartment will be sold with an attached garage, similar to a suburban home, but stacked vertically.”

“[The idea for the garages] is an extension of the notion of vertical living, which is quintessentially urban,” said a spokesperson from Selldorf Architects of New York, the design architects for the project. “There are many freight elevators that exist in the neighboring warehouses, carrying trucks with cargo. The elevator itself is very conventional; it’s a simple freight elevator, like any other large freight elevator one would find in a warehouse nearby.”

In regard to design of the garages, the placement was practical. “Because the water table was so high, we couldn’t go underground for parking, which is why the idea of residential units with contiguous garages makes sense,” said a spokesperson from Selldorf Architects.

Inspiration for this unique feature stemmed from “the Starrett Lehigh building at 23rd and 11th Avenue, which was originally designed as a warehouse, and has a specific loop for UPS employees to drive into the building in a ring, pick up packages and go back out,” explained Kratchman. “The Highline was also inspirational because of the integration of transportation and buildings. To have a parking infrastructure integrated is typical of the West side.”

The general contractor is Pav-Lak Construction of Hauppague and the owner is Gaia House LLC.

Construction began on the project in July 2007 and is slated for completion in the spring of 2009.

Construction Equipment Dealers Feel Heat from Rising Fuel Prices

Increasing fuel prices, coupled with rising construction costs, are significantly impacting equipment sales in the Northeast.

“The rising construction costs are affecting us incredibly because people don’t want to invest to buy anymore, they want to rent,” Jack Dopp, equipment procurement manager at Pine Bush Equipment Co., Inc. in Pine Bush, New York.

Incidentally, the rising price of fuel is now affecting Pine Bush’s rental costs as well. “We have to charge increased rental fees because of rising fuel prices,” he said. “We are looking at cutting vehicle use of people going out in the field as well as personnel right now because of the increase.”

Casagrande USA, Inc., a foundation equipment dealer in Lafayette, New Jersey is actually part of the rising construction costs, according to Mike Steinhardt president of Casagranda USA as well as Casagrande Canada. The company’s biggest problem is the weak dollar. “Ninety percent all of our equipment is built in Europe, so it’s priced in Euros,” he explained. “The value of the dollar has raised the prices to contractors, in order to cover the exchange rate.”

Although rising fuel costs is not an impeding issue at Casagrande, USA, it has affected the company in certain aspects. “It makes importing our parts and rigs more expensive . . . but typically there may only be one or two foundations machines on the site, so running one drill isn’t that significant and fuel isn’t a large part of the operating cost,” said Steinhardt.

Additionally, the minimal residential housing starts have also had a negative impact on the industry. “We don’t think rising construction costs are affecting us as much as housing starts being currently way down,” said a spokesperson from Stone Construction Equipment of Honeoye, New York. “Rising fuel costs, however, are affecting everyone in the same way and we are all trying to find ways to deal with it.”

All three equipment dealers anticipate a market turn around in 2009.

City-Wide Emergency Review Completed

New York City Department of Buildings in collaboration with New York City Department of Housing Preservation and Development completed a review of the 539 outstanding emergency declarations—orders made by DOB that requires an owner to perform emergency work needed for safety—throughout the city.

“This comprehensive review of 539 emergency declarations showed that while the vast majority of declarations were resolved quickly, we must do better. Emergency conditions must be addressed as quickly as possible,” said DOB Acting Commissioner Robert LiMandri. “We are working closely with HPD to institute new protocols to make it easier for agency personnel overseeing these critical operations to take action when a building owner fails to do so, and to hold those accountable for any lapses that may occur.”

The 539 emergency declarations were issued between January 1, 2007 and April 14, 2008 and the re-inspection began on March 8, 2008. Thus far, 532 have been resolved.

When an emergency declaration is issued, it can be for various reasons including requiring installation of a protective sidewalk shed, the sealing of a vacant, open or unguarded building, or the shoring, deconstruction or demolition of a structurally compromised building, according to DOB.

Declarations are issued in two forms: “Immediate Emergency Declaration,” which requires immediate remedial work and “Emergency Declaration,” which requires work initiated to adhere to standards within 60 days. Failure to begin work allows the city to retain a private contractor for the emergency work.

To ensure a streamlined process, DOB and HPD will monitor all declarations and actions taken after the issuance of an emergency declaration as well as repeat offenders with a new database. This shared database will automate the communication process between the two agencies, reducing the need for phone calls, emails, and faxes following up on the status of actions taken by both agencies, according to DOB.

“We are committed to working with our colleagues at the Department of Buildings so that all emergency declarations are dealt with promptly and accurately,” said HPD Commissioner Shaun Donovan. “When owners do not correct emergency conditions, HPD will step in and perform the work. The new tools for sharing data between DOB and HPD will enable the agencies to closely monitor the status of emergency declarations which will improve safety conditions.”

Parkway Reconstruction Underway

The New Jersey Department of Transportation is continuing construction on the Route 78/Garden State Parkway Interchange 142 in Hillside and Union Townships, Union County and Irvington Township, Essex County.

“NJDOT’s reconstruction of the high-volume Interstate 78/Garden State Parkway interchange will relieve congestion and improve safety,” said Commissioner Kolluri. “Investment in the structural integrity and operation of our aging infrastructure will ensure that New Jersey motorists maintain safety and mobility.”

The project is specifically a rehabilitation to improve traffic flow. Two missing ramp moves will be constructed from the Garden State Parkway to I-78. New ramps will be constructed from the Garden State Parkway northbound to I-78 westbound and the Garden State Parkway southbound to I-78 eastbound. Additionally, a one-mile stretch of pavement on I-78 will be constructed, the bridges on I-78 will be widened, new acceleration and deceleration lanes will be added as well as relocating the noise-barriers.

The first stage, from summer 2008 to fall 2009, will involve construction on westbound I-78 local with no significant impact to traffic. The second stage is divided into three sections. Stage 2A, from fall 2009 to summer 2010, will include reconstructing the right lane and shoulder of I-78 westbound local and widening the bridges as well as reconstructing the left and center lanes of I-78 eastbound. Stage 2B, from summer 2010 to winter 2010, will entail reconstructing the left and center lanes of I-78 westbound, reconstructing the right lanes and shoulder of I-78 eastbound local as well as widening the bridges. Stage 2C, from winter 2010 to spring 2011, will involve reconstructing the pavement section near ramp B on I-78 westbound as well as ramps C and E on the eastbound portion. The last stage will include eastbound and westbound express lane reconstruction and striping work on shoulders as fourth lanes of traffic in both directions, which will be completed in fall 2010.

The $149 million project will be state and federally funded by both NJDOT and the New Jersey Turnpike Authority.

General contractor Union paving and Construction of Freehold, New Jersey began on the project in June 2008 and it is slated for completion in January 2012.

 

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