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Construction Starts Stabilize; PLAs a Factor

NEW YORK CITY-Project labor agreements between the city and construction industry will help $5.3 billion in public works move forward.

By Paul Bubny | Updated on November 25, 2009

NEW YORK CITY-The construction industry, which has taken a bruising hit since last autumn’s Wall Street implosion, went into the Thanksgiving holiday with a couple of things to be thankful for. One was a report from the New York Building Congress suggesting that construction starts are showing signs of stability; the other, a deal between the industry and the Bloomberg administration on project labor agreements for a quartet of public projects that are worth a combined $5.3 billion.

Meanwhile, the fruits of the first round of PLAs reached earlier this year were evident in the topping-out of Forest City Ratner Cos.’ 76-story Beekman Tower. One of a dozen stalled development projects that got back on track after the May 29 Economic Recovery Project Labor Agreement between the Building and Construction Trades Council and the Building Trades Employers’ Association, the 867-foot Downtown tower became Manhattan’s tallest residential building at a Nov. 19 topping-out ceremony.

Bruce Ratner, chairman and CEO of FCRC, who reportedly threatened to cap the tower at 40 stories when costs became an issue, said in May 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.” Lou Coletti, president and CEO of the BTEA, said in a statement earlier this month that he was “extremely happy that the PLA was able to play a role in the decision to complete this project.”

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