Two recent articles on Beekman Place:
Columbia Daily Spectator:
Perspectives on Expansion: Part Four in a Five-Part Series on Campus Planning
Surrounded Downtown, Pace Looks to Grow by Leasing
By Emily Schwarz
Spectator Senior Staff Writer
March 24, 2005
In November 2003, the president of Pace University, David A. Caputo, launched a five-year improvement plan to raise the school to Tier II status in the U.S. News and World Report annual college rankings. While this plan focuses on developing the university’s academic resources, Pace has also looked to expand physically. Pace’s Lower Manhattan campus faces unique constraints because its neighborhood is so highly developed and because of grants made available to developers in Lower Manhattan after Sept. 11th, 2001.
Frank Gehry, a prominent architect, is designing a skyscraper near the school’s Lower Manhattan campus. Pace had planned to lease 50,000 square feet of space in the new building and move its business school there, and to build new residence halls. But in November 2004, the developer, Forest City Ratner Companies, increased prices in the building, and the deal fell through when Pace refused to foot the bill. To the community’s satisfaction, a public school will now occupy part of this space.
Pace’s failed attempt to expand its campus illustrates the often-fragile relationship between developers and universities. Richard Whitfield, Pace’s executive vice pesident for Finance and Administration, said Pace has learned that “campus development and involvement in any project is complex. Even with the best plans and the best intentions, things can go wrong. When they go wrong, you have to step back and revise.”
After losing access to this space, the university has commissioned an external study to determine its space needs and which buildings in Lower Manhattan might be feasible places for Pace to lease or purchase. Unlike the other universities featured in this series, Pace is located in Lower Manhattan where there is very little vacant land, and so, Pace must look to acquire space in existing buildings.
The Ratner Building
In the 1950s, the area where Pace’s downtown campus is now located was designated an urban renewal zone. Jordan Gruzen, a partner at Gruzen Samson, an architecture firm that works in Lower Manhattan, explained that under this designation, the existing buildings were torn down and new buildings were built, including Pace University’s main academic building and NYU’s Downtown Hospital. However, a parking lot in this area, owned by the hospital, was never developed.
The hospital has only recently realized its plans to develop on this land, in the form of a one million square foot, 70-story multi-use building. The hospital hired Forest City Ratner Companies as its developer and in December 2003, Ratner purchased the land from the hospital, on the condition that the building include clinical space.
“The whole genesis of the project is the sale of the hospital land,” argued Paul Goldstein, the chair of Community Board 1, who hold local jursidiction.
According to Goldstein, the hospital is severely in debt and in poor condition. “We have to accept a huge building because the hospital wanted to gain every possible dollar out of the sale of their land,” he said.
Since the area is no longer an urban renewal zone, there are no restrictions on the use of the land, explained Michele de Milly of Geto & Demilly Inc., the public relations company representing Ratner, in an e-mail. “The building will conform to all existing zoning regulations and there are no limitations on the site,” said de Milly. “Forest City Ratner Companies has been working closely with government agencies to accommodate these important community facilities and amenities into the development,” such as retail space.
The bottom 24 floors were designated for Pace University and the hospital. Pace planned to lease 330,000 square feet. There is also a 45-story residential tower, retail on the ground floor and below-ground parking.
Pace planned to include dormitories, its business school and offices, an art gallery, and community space for the public in its portion of the building. Whitfield said that this project was valuable because of its proximity to Pace’s other academic buildings, and because of its magnitude, which would have brought visibility to the school. Also, Whitfield explained that with growing interest in the university’s dance and forensic science programs, there is a greater need for both lab and studio space.
After Sept. 11th, the federal government allocated money in the form of Liberty Bonds for commercial and residential development to help stimulate the economy of Lower Manhattan. Tax-exempt commercial Liberty Bonds are distributed by the New York City Economic Development Corporation, and residential Liberty Bonds are managed by the New York City Housing Development Corporation.
The housing in this complex will receive residential Liberty Bonds, and commercial Liberty Bonds were designated for the construction of the 24 floors to be occupied by Pace and the hospital.
“We’re pleased that the Liberty Development Corporation has approved the use of Liberty Bonds for this vital project, which will enhance the city’s educational and health care infrastructures and generate jobs and economic activity in Lower Manhattan,” Bruce C. Ratner, President and CEO of Forest City Ratner Companies, told the Liberty Development Corporation, the umbrella organization in charge of allocating the Liberty Bonds, in May 2004.
Ratner Deal Falls Through
But in November of last year, Ratner told Pace that it had underestimated the construction price and the university would have to pay the same price, about $180 million, for 30 percent less space in the new building. At that point, President Caputo said that Pace would end its negotiations with Ratner.
Ratner’s decision to increase the price of development, forced “Pace to reconsider its plans for downtown expansion,” President Caputo stated in a Pace University press release on Nov. 3, 2004. “We have no intention of abandoning the downtown that has been our home for nearly 100 years. But neither will we financially jeopardize academic programs and scholarships for this project.”
Caputo said that Ratner made this decision “despite a signed term sheet specifying basic concepts and details, and after 11 months of good faith negotiation including discussions facilitated by a broad spectrum of city and state officials.”
Once Pace backed out of the project, it was determined that a public school would occupy some of this space the university had planned to occupy. According to Goldstein, neighbors are happy that there will be a public school because it will better serve the needs of the community.
Ratner lost the commercial Liberty Bonds designated to the space Pace was intended to occupy. According to a New York Times article by David Dunlap published on Nov. 4, 2004, Ratner said that after losing the Liberty Bonds, it “would seek low-interest financing from the city and state available for residential projects that reserve 20 percent of their units for affordable rentals.”
Pace’s Current Development Plans
Having lost space in the Gehry building, Whitfield initiated a study to determine the university’s space needs and other possible locations for Pace to lease or purchase in Lower Manhattan. Whitfield said he is currently selecting a real estate advisory firm to perform this analysis. Since the study will not be completed until early fall, Whitfield said that he did not know what other buildings Pace may consider in the future to lease or purchase.
Pace has already expanded its campus in Lower Manhattan in the past decade. There are new dorms on William and Fulton Streets, and even a new dorm across the East River in Brooklyn Heights. Pace also leases space on William Street for offices, a computer lab, and class space.
There are plenty of other buildings with available space nearby that Pace can lease, Whitfield said. He said that with a decline of office rentals in buildings located in Lower Manhattan, there is an increase in available space in large buildings that can be transformed into classrooms and dorms. Nonetheless, he pointed out that it would have been convenient to have space in the Ratner building since it is adjacent to Pace’s main academic buildings.
Goldstein agreed that there are many other locations where Pace could move in Lower Manhattan, and they are often less expensive than the proposed space in the Ratner building. “There is already dorm space a block or two away [from the main campus]. It wouldn’t be the first time they had a building further away,” he said.
Community Relations
The new Ratner skyscraper will be the second-tallest building in the neighborhood.
Concerned that it will block even more air and light from homes, local residents are demanding benefits in conjunction with any new construction.
Goldstein said that when Pace was planning to occupy space in the Ratner building, it was more receptive to the community’s requests for access to the university’s resources. He said that these negotiations ended when the university backed out of the project and Pace’s head of community relations took another job. He added that CB1 plans to bring their demands back to the table as soon as a new community relations person is hired.
“Theoretically, Pace can go back to discussing, but my sense was that they were more eager to talk to the community when building a new building,” added Goldstein.
According to Whitfield, Pace has expanded its community programs over the past few years. For example, the university instituted a community service requirement last year and, as a result, there are several new courses involving volunteer work.
“The goal is to instill an active sense of social responsibility while improving the nearby community,” the university said in a Nov. 12, 2003 press release.
In one class last year, students worked with the pastor of Our Lady of the Rosary parish to create a small museum for the history of Lower Manhattan, and in a math class, students used “data analysis, probability, statistical inference to make decisions about education, health, money, careers, and government,” according to the press release.
Another outreach effort, Pace’s Center for Downtown New York, was founded to “serve the community as an academic, research, and civic leadership partner in the effort to revitalize Lower Manhattan,” according to a different university press release. The Center created the Pace Downtown Index, which will monitor the economic development of Lower Manhattan since Sept. 11.
The Michael Schimmel Center for the Arts at Pace, a venue for professional and student programming, provides access to arts and dance performances for students and the neighborhood. Part of Robert De Niro’s Tribeca Film Festival took place at this Center and the Community Works/Theater Connections and brings 1,000 children to seven different dance and theater shows each year.
Similar to the University of Pennsylvania’s high school, in 2004 Pace gave funding to open a local public high school that receives guidance from its School of Education.
Curbed:
Bruce & Frank's Downtown Tower Wants You!
Tuesday, March 29, 2005, by Lockhart
Is that Frank Gehry-designed residential tower in downtown Manhattan inching closer to reality? Last fall, developer Bruce Ratner leaked word of a 70-to-75-story Gehry-architected building slated for the open lot at 85 Bleekman Street, designs of which have not yet been made public. This week, a strange email is circulating seeking luxury individuals interested in participating in a focus group about the tower-to-be. For your reading pleasure, full text of the email after the jump.
The email reads:
From: [redacted]
Sent: Monday, March 28, 2005 4:02 PM
Subject: seeking new yorkers for research about apartments and neighborhoods
Hello,
We're helping a New York developer to plan a Frank Gehry-designed residential tower in lower Manhattan. To better understand the needs of the building's future residents, we're planning several workshops with people who live New York City and surrounding areas. We are seeking:
A. People who live in a 'luxury' apartment or loft, are seriously considering renting or buying one, or have done so in the past. (rent :$3000+ / month; purchase $1.5 million+)
B. Within group A, we are trying to find:
- Design / architecture lovers
- Manhattan-philes (people who would never consider living anywhere other than Manhattan)
- People who live / have lived in luxury corporate apartments
- Suburban dwellers who have, or are considering, owning or renting a second home in the city
- Luxury brand users (e.g. Prada, Fendi, W Hotels, Bang & Olufsen, etc...)
We are planning a workshop this Thursday, March 31 at 7-9 pm (time to be confirmed) in mid-town. Workshops participants will spend a fun evening contributing their views on NYC's neighborhoods and apartments, and sharing experiences they've had. In addition to contributing to the design of a notable building, we'll provide dinner and give you a small gift as a token of our thanks.
Several other workshops will take place the week of April 4 and 11.
If you or anyone you know fits both categories A & B, please have them reply to [redacted] with the following info:
name:
age:
neighborhood where you currently live:
category (ies) from 'B' that you fall under (describe briefly):
Thanks in advance for your help!
[signature etc]
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