Thursday, September 2, 2010

CIVITAS in the New York Times

CIVITAS received coverage in Wednesday's New York Times on our work on the Second Avenue Subway ancillary buildings.
Read about it at: http://www.nytimes.com/2010/09/01/realestate/01subway.html

August 31, 2010

Above Ground, a 2nd Ave. Subway Plan Attracts Critics

The Second Avenue subway, finally under construction on the Upper East Side of Manhattan, is of course a vast underground project. The $4.45 billion first phase, now scheduled to be completed in 2018, will extend from 96th Street to 63rd Street and Lexington Avenue.

But the project will also include construction above ground — not just station entrances but also a half-dozen boxy buildings on corners along Second Avenue that the transit agency acquired through condemnation. These so-called ancillary buildings, ranging in height from five to eight stories, will house ventilation equipment. They are also intended to disperse smoke and allow for evacuation from subway tunnels in the event of an emergency.

To the Metropolitan Transportation Authority of New York, the proposed buildings, designed by DMJM+Harris and Arup, part of the team that designed the Jet Blue Terminal at Kennedy International Airport, are “handsome in proportion and detail, while simple and straightforward in design.”

But to some real estate specialists, the structures represent a missed opportunity or an unwelcome industrial intrusion into a residential neighborhood, or both. Richard Bass, the chief planning and development specialist for Herrick, Feinstein, a law firm based in Midtown Manhattan, said that at three of the sites — on 97th Street, 72nd Street and 69th Street — the M.T.A. could have worked with private developers to incorporate the ancillary buildings into residential towers.

Mr. Bass represented a co-op on 69th Street in negotiations with the M.T.A. over the adjacent ancillary building. He is not involved in a lawsuit the co-op filed against the Federal Transit Administration and the M.T.A.

On each of the corners cited by Mr. Bass, the developers could have sought development rights, known as air rights, from smaller adjacent residential buildings, Mr. Bass said. He said taller apartment buildings would have been more in character with a residential neighborhood and would have helped fill a need for moderately priced housing. In addition, the M.T.A. could have had the developers share in the cost of the subway structures, Mr. Bass said.

“It seems that the M.T.A. missed an opportunity to play in the real estate game in a way that would have been a win-win-win,” Mr. Bass said. “This could have provided the M.T.A. with a more cost-effective facility, a more urbanistically appropriate structure for the surrounding community, and an opportunity to create more housing in partnership with developers.”

Citing the pending lawsuit filed by the 69th Street co-op, M.T.A. officials were unwilling to be interviewed. But they did agree to answer written questions by e-mail. They said they would not release cost estimates for the ancillary buildings until they had hired the contractors. Nor would they say how much they had paid for the building sites.

Kevin Ortiz, an M.T.A. spokesman, said by e-mail that the agency had worked with developers on both the 97th Street site, where the Century Lumber Corporation once stood, and on 72nd Street, the longtime home of Falk Drug and Surgical Supplies. Plans for 72nd Street, where the site measures 75 feet by 75 feet, were scuttled because “in order for a development to work, additional property would have had to be acquired, which we couldn’t justify as a transportation use,” he said.

On 97th Street, “M.T.A. Real Estate worked very long and hard to make it work, but in the end the developer lost interest,” he said.

In a subsequent e-mail, Aaron Donovan, another M.T.A. spokesman, said the developers that the agency had consulted owned the sites. Mr. Donovan said the agency had not issued requests for proposals from developers “because we didn’t own the properties,” which were acquired through eminent domain.

According to the M.T.A., only the 97th Street site, which measures 100 feet by 125 feet, is large enough to accommodate a residential development. The M.T.A. also would not say why it did not consult a second developer for that site.

Several developers, architects and engineers took issue with the M.T.A. and said the agency should have sought to work with private developers. “It does sound like a missed opportunity,” said Douglas Durst, who developed the Bank of America building at One Bryant Park. The 69th Street site, at 50 feet by 80 feet, “is a little tight,” he said, “but the others are the perfect size for residential.”

Some real estate specialists said the transit agency could have found a model in an agreement struck in connection with the extension of the No. 7 subway line on the far West Side of Manhattan.

On a large site at 26th Street and 11th Avenue owned by the Moinian Group, the M.T.A. plans to build a seven-story ancillary structure for that line. The building was designed so Moinian Group could eventually build a residential tower that would incorporate the M.T.A. building, said Oskar Brecher, director of development for Moinian.

“It was a very complicated process that required a great deal of time,” Mr. Brecher said. “The midwife was the Hudson Yards Development Corporation,” he added, referring to the city agency overseeing the development of the area.

Around the country, public officials have worked with the private sector to encourage development along new mass transit lines to increase ridership. Of course, no one thinks the Second Avenue subway will lack riders.

But transit-oriented developments can also be used to defray construction costs. Julia Vitullo-Martin, director of the Center for Urban Innovation at the Regional Plan Association, said the M.T.A. typically had not engaged in strategic thinking when it came to its real estate. “The M.T.A. does not think of its real estate as either an investment opportunity or a development opportunity,” she said.

For Civitas, a civic group representing the Upper East Side and East Harlem, the critical issue is how the buildings, to be made of terra cotta tile, glass and granite, will affect street life along Second Avenue. The local community board has yet to take a formal position on the ancillary buildings.

“Certainly, the design of these structures could be improved,” said Hunter Armstrong, the executive director. “Having large blank industrial buildings inserted into a lively streetscape will diminish the activity and appeal of Second Avenue,” he said. Civitas persuaded the M.T.A. to include retail spaces in two of the sites — 360 square feet at 69th Street and 240 square feet at 72nd Street.

Mr. Ortiz said the M.T.A. chose this style so that the public would recognize the buildings as industrial. He said the structures were not intended to be “starchitecture” but would be “respectful of their immediate surroundings.” The building materials “need to be robust,” he said, “as they will receive only very minimal maintenance attention.”

The M.T.A. did not always intend to make the buildings look industrial. In the final environmental impact statement, completed in 2004, it said they “could be designed to appear like a neighborhood row house in height, scale, materials and colors.”

The M.T.A.’s decision to build industrial rather than brownstonelike buildings was cited in a federal lawsuit filed in January against the Federal Transit Administration and the M.T.A. by a cooperative apartment building, 233 East 69th Street. Residents say that, as now conceived, the auxiliary building would be so close to their building that 32 windows facing east would be blocked. They also contend that the building “would be totally out of harmony” with the neighborhood.

At a conference on April 14, the M.T.A. argued that its building would blend in with the surroundings, but Judge William H. Pauley III of Federal District Court in Manhattan disagreed. “You’re asking me to suspend my common sense,” he said.

The M.T.A. had no comment on the lawsuit, which is still in its early stages.

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