In a release, Mayor Michael Bloomberg, who officiated at Tuesday's ceremony, says the businesses comprising the city's jewelry industry "are a valuable part of the local economy. But the center of the industry--the 47th Street Diamond District--has seen modest private investment in recent decades, and there is little space for international companies that want to locate here or local businesses that want to expand. The International Gem Tower will offer that space."

Extell expects to complete the $300-million first phase of construction by year's end; foundation work had begun last year. It will include three underground levels containing gem industry vault operations, utility infrastructure, parking facilities and retail. The entire project, which will house up to 250 tenants, is expected to be completed by 2011 at a total cost of $750 million. At a news conference Tuesday, Bloomberg expressed confidence that Extell would be able to come up with the balance of the financing. Tishman Construction Corp. is serving as construction manager, working from a Skidmore, Owings & Merrill design that features a curtain wall of embedded diamond shaped steel medallions.

Gary Barnett, Extell founder and president, says in a release that his project means that "for the first time, New York City's Diamond District will have an international gem and jewelry center on par with other global markets." One aspect of the Gem Tower that takes a page from the competition is the commercial condo concept: rare in Manhattan's Diamond District but common in other jewelry centers worldwide.