"It will be nothing but positive," says Bruce Mosler, head of US Operations for Cushman & Wakefield. He notes the importance of the stadium effort being coupled with the refurbishment of the nearby Jacob K. Javits Convention Center. "New York having the 17th largest convention center is unacceptable," he says.
Faith Hope Consolo, vice chairman of Garrick-Aug Worldwide, compares the new venture with the revitalization that took place around the MCI stadium in Washington, DC. "It's a big shot in the arm," she offers. "The West Side is like a waste land, except for a few pockets." Restaurants and sports-related retailers will be the first to jump on the bank wagon and she expects other service-oriented retailers to help in the revitalization effort. In addition, she says local retailers might find success due to the increased traffic and that tourists will flock to the area as well.
Real Estate Board of New York president Steven Spinola says that if the stadium was the only aspect of the plan, it wouldn't have the impact that the city's 40-year effort for the West Side can potentially hold. "The planning has been phenomenal. It's what New York needs," he says. He expects residential developers will snap up West Side properties in anticipation of an influx of people. "Retail comes when the people come."
One concern is the projected increase of traffic in the area. C&W's Mosler points out that the football team only plays eight home games per year, as compared to a baseball team that would have 80 home games. He also expects the site to be an attractive selling point for the Olympic Committee currently assessing the city's bid to host the 2012 Summer Olympics.
Yesterday, Gov. George Pataki and Mayor Michael Bloomberg outlined plans for a so-called "Convention Corridor" that will include the expansion of the Jacob Javits Convention Center and the creation the multi-purpose facility that will serve as a 75,000-seat stadium and a 200,000-sf exhibit hall. The convention space will expand from 760,000 sf to 1.1 million sf of exhibit space, 256,000 sf of meeting rooms, and will include a 40,000-sf ballroom. Total costs are pegged at $1.4 billion and will be funded through state, city and private sources. A $200-million, privately funded 1,500-room headquarters hotel at 42nd Street and 11th Avenue is part of the plan. Officials expect annual tax revenue generated by Javits to provide an additional $53 million and that more than 10,000 jobs will be created by the initiative.
For the stadium effort, the Jets organization will invest $800 million and pay annual ground rent to the MTA. The city and state will each contribute $300 million to construct a deck over the rail yards and for the stadium's retractable roof. The project is expected to create 6,700 permanent jobs and bring in $75 million in additional revenue for the city and state.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
