Work on the Beekman Tower, where construction had been stalled for the past two months with half of its planned 76-stories completed, will now proceed, according to FCRC. Bruce Ratner, chairman and CEO of FCRC, who reportedly threatened to cap the Lower Manhattan residential tower at 40 stories when costs became an issue, says in a statement that "after a thorough review, Forest City's decision to complete the Beekman project as it was designed by Frank Gehry is the result of achieving our economic goals."

The company credits the PLA, along with reductions in the cost of materials, in resuming construction on the Downtown property, which is slated for occupancy in summer 2010. It will include 100,000-square-foot public school and a 21,000-square-foot ambulatory care center for neighboring New York Downtown Hospital.

Under terms of the PLA, unions have accepted work rule changes including no strikes or work stoppages; a standard eight-hour workday and 40-hour work week; overtime at time-and-a-half; eight common holidays; flexible starting times and lunch breaks; maximum utilization of apprentices at training wages; and strict adherence to safety rules and a standard of excellence for performance. The BTEA and unionized contractors have agreed to the following terms: no lock-outs; reduced and frozen wages for management personnel; fringe benefits and bonus reductions; reduced profit margins; reduced material and supply costs, to be passed onto owners; and improved project management and efficiency.