Kathy Clown loses the Penn Station overdevelopment plan

NY Post

The powerful head of Vornado Realty Trust appeared to knock the wind out of Gov. Kathy Hochul’s plan to erect new office skyscrapers in the Penn Station area on Tuesday, when Chief Executive Steven Roth said the time is not right for major new development.

Publicly traded Vornado owns most of the 10 sites in the West 30s earmarked for large-scale rebuilding. Roth made the shocking retreat in an investors’ conference call on Tuesday. After he pointed out improvements Vornado has made in buildings near the station that it already owns, he seemed to call a pause in putting up any new ones.

“I must say that the headwinds in the current environment are not at all conducive to ground-up development,” Roth said.

Asked if it meant he would change or scale down the state-endorsed plan for the Penn Station neighborhood, he said, “That’s not something we’re going to get into now.” He apparently meant he wasn’t ready to discuss the matter.

 

Caption Bubba, Kathy Clown and the Muzzled Mayor

Pols set to give Vornado a big gift

From Crains:

A now-defunct bill sought to give Vornado Realty Trust control of city parkland in Rego Park, Queens, and allow the firm to build an apartment building closer to an adjacent green space than would otherwise be allowed.

The legislation, introduced by Queens Democrats Toby Ann Stavisky in the state Senate and Jeffrion Aubry in the Assembly, indicates that Vornado is testing the waters for an apartment complex more than five years in the making near the Rego Park Mall, which the firm also developed.

However, little information was available in the bill or from its sponsors to indicate how much the park property would be worth and whether the public improvements and the space Vornado would need to dedicate toward a school in its new building would have been a fair trade for taxpayers.

Vornado’s property shares a border with a park containing Lost Battalion Hall—a once puzzle-piece-like boundary that was straightened out by separate parkland-swap legislation in 2011. Since that time, the developer has planned to eventually erect a residential tower on the site.

Should Vornado opt to build apartments facing the park, it would normally have to set them back at least 30 feet from the property line. The legislation, however, would have authorized the city to give Vornado ownership of the air over a portion of the park. While not the same as purchasing unused development rights (also called air rights), through the complexities of the city’s zoning code, it would have eliminated the 30-foot setback rule.

Vornado would thus have been allowed to build closer to the park, if not right up against it. In exchange, Vornado would have given the city a similarly sized light and air easement over its own property, agreed to potentially pay for park improvements and included space for a prekindergarten in whatever structure it ends up erecting.

The offices of neither Stavisky nor Aubry could detail how the bill came to be, though it was likely introduced at the behest of lobbyists Vornado hired to push the issue in the first half of 2016, according to state records. Because it did not pass by the end of the legislative session in June, it would need to be reintroduced next year to ever become law.

Safety issues at fast-rising tower

From the Queens Chronicle:

You can see the yellow crane and the bright orange construction material from almost anywhere in Queens.

From the Mets-Willets Point No. 7 train station to the Cross Bay Veterans Memorial Bridge, the towering apartment building under construction atop the Rego Center II shopping mall in Rego Park has become a recognizable piece of the Central Queens skyline.

Despite receiving work permits just over eight months ago, the Vornado Realty-developed 24-story, 314-unit residential structure, designed by SLCE Architects, is already nearing its expected height of 288 feet.

When contacted by the Chronicle, Vornado declined to comment on progress of construction and if there was an estimated date of completion.

The project suffered a slight setback this week, as the Department of Buildings placed a partial stop-work order on the site on Saturday.

According to the order, a rail plummeted from the 24th floor into the netting placed around the seventh floor of the structure after it fell from the crane while it was being hoisted.

Construction causing traffic hazard in Rego Park

From the Queens Tribune:

With the ongoing construction of new apartments at the Rego Park Mall, there is some concern of what it has done for traffic in the area.

The work being done on the 24-story apartment complex on top of the shopping center is backing up traffic on Junction Boulevard and 62nd Drive and making it dangerous for pedestrians, some residents said.

Steven Shakarchy, a Rego Park resident who lives a block away from the shopping center, said the scaffolding from the construction blocks off one lane on 62nd Drive, causing a traffic jam on that side of the street.

Shakarchy said that area is dangerous for pedestrians, with many cars speeding up on that thoroughfare to beat the light and a fatal accident could happen. He said Vornado, the company that is building the apartments, should adopt safety measures in that area.

Rego Park Shopping Mall files for residential permits

From Brownstoner Queens:

New York YIMBY spots permits by Vornado Development to build a 24-story and 314-unit residential tower above the Rego Park Shopping Mall. Vornado announced plans to build the 290,000-square-foot residential addition to the mall, which it also owns, this summer. As YIMBY says, “The permits are fresh, so work is just about to begin; no completion date has been announced.” The project is expected to cost between $100 and $120 million.

Rego Park mall to expand into housing

From The Real Deal:

Vornado Realty Trust has filed plans with the Department of Buildings for a 314-unit residential building above its Rego Park shopping mall in Queens, according to filings spotted by The Real Deal. The 24-story, 287,113-square-foot building addition, which sources said would be a rental complex, is set to be designed by SLCE Architects, the filings show.

The Rego Park rental units will be added atop an existing shopping center at 61-35 Junction Boulevard just off the Long Island Expressway. The 610,000-square-foot center, known as Rego Park II, is anchored by a 145,000-square-foot Costco, a 135,000-square-foot Century 21 clothing store and a 133,000-square-foot Kohl’s, according to a Vornado regulatory filing.

The proposed development will cost between $100 million and $120 million, Vornado projected in a regulatory filing late last year, when it initially informed investors of the provisional plan for the project. Vornado is building the project on behalf of a subsidiary, the real estate investment trust Alexander’s.

At that time, the company said the plans were still up in the air. “There can be no assurance that the project will commence, or if commenced, be completed on schedule or within budget,” it said in a
U.S. Securities and Exchange Commission filing. Now, it appears the trust is moving ahead with the project.

Vornado declined to comment on the DOB filing via a spokesperson.

Hotel Penn to be renovated instead of demolished

From Crains:

New York's famed Hotel Pennsylvania is safe from the wrecking ball, rescued by the economy rather than preservationists.

Plans to knock down the nearly century-old hotel, where jazz great Glenn Miller and his orchestra broadcast in the 1940s, and replace it with a 67-story office tower are "on the shelf," said Steven Roth, chairman of the Vornado Realty Trust, which has owned the building since 1998.

Although City Council approval of zoning changes for a tower to replace the 1,700-room hotel remains valid, the weak economy has led Vornado to switch gears.

"It's an interesting option to have, but it's not possible today," Mr. Roth said at an investor conference earlier this week. "We're not going to tear down the hotel. In fact, we're going to invest in it aggressively and try to make it into a really profitable, really good hotel."

Vornado declined to provide additional information about its plans for the building.

Mr. Roth, who will assume the additional role of CEO at Vornado on April 15, said the company is close to finding a partner and principal developer to help restore some of the hotel's former grandeur.

While its lobby retains traces of its origins and it still has the "Pennsylvania 6-5000" phone number made famous by Miller's orchestra, the Hotel Pennsylvania is now a budget-priced destination with a less-than-luxurious reputation among tourists.

The hotel averages 2 1/2-star reviews on travel websites and has been known for bed bugs, a common problem in Manhattan hotels.

Lost Battalion Hall finds itself a deal

From the Times Ledger:

Lost Battalion Park in Rego Park will be expanding its boundaries, thanks to a land swap between the city and a developer.

An oddly shaped parking lot and one end of the park currently fit together like puzzle pieces, but according to state Sen. Toby Stavisky (D-Whitestone), the swap deal will make both the parking and park easier to use.

“Everybody benefits,” she said. “The developer benefits, the city benefits and the developer is going to do the improvements.”

The park is at 93-29 Queens Blvd., and with the new deal would stretch all the way from Queens Boulevard to Junction Boulevard.

A vast parking lot now sits beside the park and near the back it snakes around and encompasses the entire greenspace.

The developer, Vornado Realty Trust, owns part of the huge parking lot, while the city owns another.

In the swap, the city will give Vornado a piece of the lot that is near the park and Vornado will trade the portion of the asphalt that wraps around the back of the park. That way, both the greenspace and the parking lot will become more normally shaped.

Hotel Pennsylvania not long for this world

From the NY Post:

Zone it and they will come.

At least that's what the developer of a proposed behemoth of a tower on the site of the Hotel Pennsylvania is hoping now that city planners yesterday approved zoning changes needed to build a skyscraper taller than the Chrysler Building.

The approvals more than double the size of a building that could go up on Seventh Avenue, between 33rd and 32nd Streets, where developer Vornado wants to build as much as 2.83 million square feet of office space.

Final approval rests with the City Council.

No construction is expected until Vornado signs a major tenant for the project.

Planning Commissioner Amanda Burden praised the proposed tower, citing its location across Seventh Avenue from the key transit hub of Penn Station.

The tower, with 67 floors and up to 1,216 feet, would be the city's third tallest after the Empire State and Bank of America buildings. But completion in 2013 of 1 World Trade Center, formerly known as the Freedom Tower, would bump the Penn Plaza tower down to fourth place.

Office tower to replace Hotel Pennsylvania?

Steve Roth’s Vornado Realty Trust has filed an application with the city to rezone the site of the 90-year-old Hotel Pennsylvania, clearing hurdles for the real estate firm to demolish the hotel and build an office tower of up to 2.85 million square feet in its place.

In paperwork filed with the Department of City Planning, Vornado indicates it wants to rezone the site on 33rd Street and Seventh Avenue to allow for the development of a skyscraper of up to 1,198 feet, one that could hold one major tenant with a large set of trading floors, or a multi-tenant building with a large base of retail.

Mr. Roth, Vornado's chairman, has long billed the 1.4 million-square-foot hotel site as a prime development parcel, part of what he imagines as a completely remade office district surrounding Penn Station (Vornado owns about 7 million square feet of commercial space in the area and has the potential to develop millions more if the redevelopment of the station, known as Moynihan Station, ever happens). He previously called the hotel “a placeholder, sort of like a parking lot, but in this case with $22 million of earnings.”

Finally, Checkout Time for Hotel Penn?

Let's take a look at the Willets Point finalists, part 1

March 2006: EDC Announces Eight Finalists for Willets Point Redevelopment

Vornado Realty Trust
Forest City Ratner Companies
General Growth Properties, Inc.,
The Macerich Company and AvalonBay Corporation
The Westfield Corporation
The Related Companies
Muss Development LLC
TDC Development & Construction Company

May 2006: One of the city's most active developers,Vornado Realty Trust, will not submit a final bid to build about 1 million square feet of retail space, a hotel, and a convention center on the 75-acre site near Shea Stadium in Queens.

December 2008: Real-estate developer Forest City Enterprises Inc. said it will halt new projects and focus on reducing debt and managing its existing real-estate portfolio.

December 2008: General Growth Properties Inc. has hired a broker to sell three high-profile shopping malls, including South Street Seaport in Lower Manhattan, as it tries to raise money to pay down its heavy debt load and avoid bankruptcy.

To recap:

Vornado Realty Trust
Forest City Ratner Companies
General Growth Properties, Inc.,
The Macerich Company and AvalonBay Corporation
The Westfield Corporation
The Related Companies
Muss Development LLC
TDC Development & Construction Company

Part 2 coming soon.

Hotel Pennsylvania making lots of $$$$

One-time demolition target Hotel Pennsylvania continues to line landlord Steve Roth's pockets, giving him even more reason to hang on to the old McKim, Mead & White-designed lodge. Quarterly figures released this week by Mr. Roth's Vornado Realty Trust show the historic hotel generating even more revenue than last year -- a total of nearly $30 million so far through the first nine months of 2008.

That's about $5 million more than it made over the same timeframe in 2007, when the hotel ultimately netted $37.9 million.

Hotel Penn Still Improbable Cash Cow For Vornado

Developers contribute to boro prez charities

BEEP PROJECTS REAP BIZ BUCKS
By CHUCK BENNETT, NY Post

Big companies face strict limits on how much they can donate to politicians - but they can be as generous as they want to the politicians' pet charities.

Borough Presidents Scott Stringer of Manhattan and Marty Markowitz of Brooklyn both operate nonprofits that solicit cash from big companies.

Markowitz, a potential mayoral candidate, runs Best of Brooklyn, which took in $1.2 million in 2007 to fund some of his favorite causes, like sending kids to summer camp and finding teens jobs.

"BPs have no legislative role whatsoever, and The Post should applaud the fact that our office encourages public-private partnerships for the public good," Markowitz said.

Among the charity's donors are the Nets and Forest City Ratner - both owned by developer Bruce Ratner, who is building an arena project in Downtown Brooklyn that has benefited from Markowitz's cheerleading.

Both gave between $5,000 and $20,000, documents filed with the Conflicts of Interest Board show.

Stringer, who also harbors citywide office ambitions, made a splash last year with his "Go Green East Harlem" initiative to promote healthy eating.

The project, run by Stringer's Community Fund for Manhattan, was funded in part with a $15,000 gift from Forest City Ratner, $15,000 from Vornado Realty Trust and $10,000 from Commerce Bank.

"The solicitations are governed by rules promulgated by the New York City Conflicts of Interest Board," said Stringer spokesman Dick Riley.

chuck.bennett@nypost.com

MLB kissing Harlem goodbye

The MLB Network, which is scheduled to begin broadcasting to 50 million subscribers in January, was to be the anchor tenant in what was originally to be a new 21-story office building at 125th Street and Park Avenue, a short distance from Yankee Stadium and players who would be among its guests.

Harlem Plan for a TV Base Deteriorates

Now baseball executives are balking at new lease terms proposed by the developer, Vornado Realty Trust, that would have required them to take additional space and pay $2 million a year more in rent, said real estate executives and government officials who spoke on the condition of anonymity because they are involved in the negotiations.

That has placed the future of the entire building, which was to be the first office tower built on 125th Street in three decades, in jeopardy.

The MLB Network, in turn, is reconsidering its own plans. It is operating out of temporary quarters in the old MSNBC studios in Secaucus, N.J., not far from Giants Stadium and the National Basketball Association’s network studios. The baseball network is now assessing whether to stay in Secaucus, rather than moving to Harlem in a couple of years.

Hey maybe that anticipated upzoning of 125th Street won't be necessary now...

Harlem Park shrinking

Just in time for the All Star Game comes word that MLB Network's proposed 125th Street tower is financially infeasible:

...according to real estate executives and city officials, Vornado’s inability to finance the $435 million project, known as Harlem Park, has delayed construction and is doing what critics who had complained about the tower’s size could not: reduce its height by about a third. That is in part because the developer seems to have had problems signing up other tenants for the building.

Vornado is now considering a revised plan for a 14-story building at 125th Street and Park Avenue and renegotiating its lease with Major League Baseball, the executives and officials said.

Developer Cuts Back on Plans for Tower to House Baseball’s Cable Network

It is the latest example of the difficulty developers have had in trying to borrow money for projects amid the national debt crisis, even projects that only a few months ago seemed to be on the fast track.

Still, the Bloomberg administration and the developer are intent on trying to move the baseball project forward. To that end, Vornado and Major League Baseball intend to use a raft of tax breaks, as well as tax-exempt financing.

“It’s like chickens coming home to roost,” said Assemblyman Keith L. T. Wright of Harlem. “What the political forces couldn’t do, economic reality has forced upon them. Nobody wanted towering office buildings on 125th Street. We wanted it to reflect Harlem architecture.”

West Side influence peddling

Politically wired influence peddlers pocketed more than $5 million from 2004 to last year from developers pushing plans to build a midtown metropolis on the borough's last major swath of available real estate.

A Daily News review of city, state and federal records uncovered a West Side gravy train funded by:

* Madison Square Garden, which would move across Eighth Ave. into the western portion of what's now the Farley Post Office building.
* Developers bidding on Hudson Yards, a huge residential and retail community planned to rise over the Metropolitan Transportation Authority's West Side railyards.
* The Venture, a partnership of Steven Roth's Vornado Realty Trust and Stephen Ross' Related Companies, picked to transform the Farley Post Office at Eighth Ave. and 33rd St. into Moynihan Station to replace dingy Penn Station.

All those projects are on the drawing board at the same time. They involve extensive land-use review, zoning changes and approvals from multiple city, state and federal agencies — and they all need billions more to meet expected costs.

That spells a bonanza for lobbyists.

Influence peddlers cash in big time on Manhattan's West Side properties

How cozy

The city's Conflicts of Interest Board yesterday issued a waiver allowing Deputy Mayor Dan Doctoroff to continue working on two major city projects - even though they involve a developer he'll have to deal with when he becomes president of Bloomberg LP, the mayor's media company.

BIZ-ETHICS OK JUST WHAT THE DOCTOROFF ORDERED

The board allowed Doctoroff to remain involved in the Moynihan station and Hudson Yards projects until his departure on Jan. 11 despite the fact that Vornado Realty - the landlord of Bloomberg LP - has roles in both.

Photo from Gothamist

Bait and switch

The $236 million project on 125th Street and Park Avenue promised to bring 2,500 jobs and the first new major tourist hotel to Harlem since the Hotel Theresa closed its doors in 1966.

The envisioned Marriott, and the community-benefits agreement that came with it, fell through when the developer, Michael Caridi, sold his interest later in 2005 to Vornado Realty Trust, a real estate giant that controls 22 million square feet of space in Manhattan. Instead, a 21-story, 640,000 square foot office tower is planned and scheduled for completion sometime in 2009.

Harlem Park plans worry residents

Some lawmakers, though, worry that the new development is moving forward without the kind of community oversight that the original agreement had.

"It was the old bait and switch," said state Sen. Bill Perkins (D-Manhattan), who opposed the project when he was in the City Council. "These projects have to come through us to get the authority to build a certain height. Once we give them the authority and the project doesn't go through, the owner, without doing anything, has increased the value of the property, and they can sell it without going back to the council for approval."

Rego Park lot building starts

This used to be a parking lot:

City officials and developers broke ground yesterday for Rego Park Center, a large shopping and residential complex going up in the shadow of Lefrak City and several stores.

The new retail center will include Home Depot, Century 21 and a Kohl's department store as well as several smaller shops.

Yes, another Home Depot for Queens! This should keep Queens Crap even busier in the future.

Rego Center shops, apts. a step closer

The new complex, being developed by real estate giant Vornado Realty Trust, also will include a residential building with 400 apartments.

City Council Speaker Christine Quinn credited Councilwoman Helen Sears (D-Jackson Heights) with securing a key piece of the development - a 2,500-square-foot community room.

Terrific, Helen, a community room makes everything ok. Why were you at the groundbreaking, Chris?

Building Begins on Giant Queens Mall

It would have been nice if they had made this a municipal lot for the stores and the subway. But I guess Rego Park needs 1000+ more people instead.

Local papers take on it, 5/31/07:

Rego Mall To Bring Jobs, Shops, Community Space

Work starts at Rego Pk. for mall site

Big building also includes room for community board

Retail, Towers Grow In Lieu Of Wal-Mart