by Robert Pirani is Executive Director of the Governors Island Alliance and Director, Environmental Programs, RPA
Last week's call for private development proposals for Governors Island was notable for several reasons. First and foremost, the release of a Request for Proposals (RFP) by the Governors Island Preservation and Education Corporation (GIPEC) marked a new stage in the now nine year long process of redeveloping the former military and coast guard base. The presence of Mayor Bloomberg (the Governor absent - due to his emergency appendectomy) signaled a welcome prioritization of the Island's redevelopment - a commitment underscored by City and State proposals for $ 45 million in capital funding this coming fiscal year. The involvement of a celebrity architect, Santiago Calatrava, and possible signature project - an aerial gondola connecting the Island with lower Manhattan and Brooklyn - lent some glamour to the event.
But for all the fanfare, the actual process GIPEC is embarking on raises questions about whether the city and state are making the financial and planning commitments necessary to insure the project's long-term success, and thus the public interest. While it's to be applauded that the city and state are willing to tackle large scale redevelopment projects like Governor's Island, in attempts to avoid spending taxpayers' money up front and committing to a planning framework, they are leaving too many crucial decisions in the hands of future developers. While this may save taxpayers' money in the short term, such habits threaten the coherency and integrity of a project's design, and drag out the redevelopment process, as each side waits for the other to put money on the table. The city and state need to decide on and make key infrastructure investments now.
The slow progress made since the Coast Guard quit Governors Island in 1997, and since the City and State took control in 2003, has been caused in part by the many challenges posed by the Island's redevelopment. Repairing infrastructure and creating mandated park spaces will require hundreds of millions of capital dollars. There are more than one million square feet of historic buildings in need of willing and able tenants. Who will plan and pay for these tasks?
The overall program for the Island, developed and refined through a half dozen public and private planning studies, is well established. The Island is to become a great civic space, with a suite of hospitality, education/research, recreation, and cultural uses. This concept and the political consensus it represents is memorialized in the federal/city/state memorandum of understanding and the deed restrictions that accompanied the Island's transfer from the federal government. Commitments include creation at least 40 acres of public parks and a waterfront esplanade.
The City's current policy to realize this program relies heavily on the promise of finding that one, right tenant, who would pay for much or most of the needed improvements. As with the far West Side, Atlantic Yards, or the Bronx Terminal Market, the City's vision is driven by the concept that large projects are defined primarily by a principal developer and tenant, who carry much of the financial load, and the risk. Of course there are substantial differences between the process unfolding for the Island and these other projects. The city and state are to be praised for issuing a formal RFP for Governor's Island, rather than making the preliminaries of a deal in advance with one developer. The RFP process goes a long way in insuring public competition for public property.
It's true that the RFP process will most likely yield a score of worthy partners for GIPEC. The idea that the Island needs two or three economic legs to stand on is of course correct. But absent needed infrastructure investments first, the RFP process alone does not insure that the vision of a revitalized and vital Governors island will emerge. It is worthwhile remembering that in Battery Park City here in New York City, and in waterfront projects throughout the world, government has used public investments in open space and infrastructure to create value in land and set the stage for private development, and thus maximized the public's return on future private leaseholds. The city and state should follow such a course in Governors Island.
GIPEC has already identified about $400 million in needed infrastructure investment on the Island, ranging from critical repairs to the historic buildings, to improvements in ferry connections, to upgrades in water and sewer services. The City and State proposals for $45 million in spending in the coming year are on top of $35 million that has already been authorized. This funding is largely designated for needed repairs to historic buildings and improving the existing ferry systems.
This is a start, but it may not be enough. More than just about any other development project in this city, and with its historic structures subject to coastal conditions and decay, Governors Island demands that government make some needed investments quickly to rapidly instill some confidence in the private sector. The City and State should set and deliver on specific political, financial, and planning milestones. These milestones should include substantial plans and budgetary commitments toward the two major drivers of real estate activity: access and amenity.
Let's look at access. The first question of any prospective tenant is how to get his clients and employees to the Island. The city and state should plan and invest in an infrastructure that creates a seamless connection to lower Manhattan and the new Brooklyn waterfront. Whether or not the Calatrava vision of an aerial gondola fills that need remains to be seen, given its uncertain financial impact on essential ferry services, but the emphasis on building access throughout the emerging inner harbor district is right on.
Amenity is also critical. Especially in a new place set apart from typical investment opportunities. What was instrumental to the success of Battery Park City was the front end investment by the State in parks, public ways, and the waterfront esplanade. The designation of such public parks and ways became valuable assets for private developers because they provide marketable addresses and determine the quality of property frontages. Creating spectacular open spaces and opening up waterfront views will enhance the value of the Island.
But perhaps even more importantly, this approach will allow for incremental development and change over time to meet unpredictable market requirements and unforeseeable future events. Such provisions can be included in plans without sacrificing the creativity or flexibility of any potential respondent. In fact, including such guidelines in an RFP will help ensure better responses by providing clarity and certainty to any potential partner.
Will the development of Governors Island continue to drift? Despite the island's potential, that's undeniably been true so far. But the fate of this remarkable Island will not be be calmed for long if the City and State set a strong course and run enough sail up the pole, to enable it to catch the wind.
(A longer version of this article is available at The Stamford Review (http://www.stamfordreview.com)
Last week's call for private development proposals for Governors Island was notable for several reasons. First and foremost, the release of a Request for Proposals (RFP) by the Governors Island Preservation and Education Corporation (GIPEC) marked a new stage in the now nine year long process of redeveloping the former military and coast guard base. The presence of Mayor Bloomberg (the Governor absent - due to his emergency appendectomy) signaled a welcome prioritization of the Island's redevelopment - a commitment underscored by City and State proposals for $ 45 million in capital funding this coming fiscal year. The involvement of a celebrity architect, Santiago Calatrava, and possible signature project - an aerial gondola connecting the Island with lower Manhattan and Brooklyn - lent some glamour to the event.
But for all the fanfare, the actual process GIPEC is embarking on raises questions about whether the city and state are making the financial and planning commitments necessary to insure the project's long-term success, and thus the public interest. While it's to be applauded that the city and state are willing to tackle large scale redevelopment projects like Governor's Island, in attempts to avoid spending taxpayers' money up front and committing to a planning framework, they are leaving too many crucial decisions in the hands of future developers. While this may save taxpayers' money in the short term, such habits threaten the coherency and integrity of a project's design, and drag out the redevelopment process, as each side waits for the other to put money on the table. The city and state need to decide on and make key infrastructure investments now.
The slow progress made since the Coast Guard quit Governors Island in 1997, and since the City and State took control in 2003, has been caused in part by the many challenges posed by the Island's redevelopment. Repairing infrastructure and creating mandated park spaces will require hundreds of millions of capital dollars. There are more than one million square feet of historic buildings in need of willing and able tenants. Who will plan and pay for these tasks?
The overall program for the Island, developed and refined through a half dozen public and private planning studies, is well established. The Island is to become a great civic space, with a suite of hospitality, education/research, recreation, and cultural uses. This concept and the political consensus it represents is memorialized in the federal/city/state memorandum of understanding and the deed restrictions that accompanied the Island's transfer from the federal government. Commitments include creation at least 40 acres of public parks and a waterfront esplanade.
The City's current policy to realize this program relies heavily on the promise of finding that one, right tenant, who would pay for much or most of the needed improvements. As with the far West Side, Atlantic Yards, or the Bronx Terminal Market, the City's vision is driven by the concept that large projects are defined primarily by a principal developer and tenant, who carry much of the financial load, and the risk. Of course there are substantial differences between the process unfolding for the Island and these other projects. The city and state are to be praised for issuing a formal RFP for Governor's Island, rather than making the preliminaries of a deal in advance with one developer. The RFP process goes a long way in insuring public competition for public property.
It's true that the RFP process will most likely yield a score of worthy partners for GIPEC. The idea that the Island needs two or three economic legs to stand on is of course correct. But absent needed infrastructure investments first, the RFP process alone does not insure that the vision of a revitalized and vital Governors island will emerge. It is worthwhile remembering that in Battery Park City here in New York City, and in waterfront projects throughout the world, government has used public investments in open space and infrastructure to create value in land and set the stage for private development, and thus maximized the public's return on future private leaseholds. The city and state should follow such a course in Governors Island.
GIPEC has already identified about $400 million in needed infrastructure investment on the Island, ranging from critical repairs to the historic buildings, to improvements in ferry connections, to upgrades in water and sewer services. The City and State proposals for $45 million in spending in the coming year are on top of $35 million that has already been authorized. This funding is largely designated for needed repairs to historic buildings and improving the existing ferry systems.
This is a start, but it may not be enough. More than just about any other development project in this city, and with its historic structures subject to coastal conditions and decay, Governors Island demands that government make some needed investments quickly to rapidly instill some confidence in the private sector. The City and State should set and deliver on specific political, financial, and planning milestones. These milestones should include substantial plans and budgetary commitments toward the two major drivers of real estate activity: access and amenity.
Let's look at access. The first question of any prospective tenant is how to get his clients and employees to the Island. The city and state should plan and invest in an infrastructure that creates a seamless connection to lower Manhattan and the new Brooklyn waterfront. Whether or not the Calatrava vision of an aerial gondola fills that need remains to be seen, given its uncertain financial impact on essential ferry services, but the emphasis on building access throughout the emerging inner harbor district is right on.
Amenity is also critical. Especially in a new place set apart from typical investment opportunities. What was instrumental to the success of Battery Park City was the front end investment by the State in parks, public ways, and the waterfront esplanade. The designation of such public parks and ways became valuable assets for private developers because they provide marketable addresses and determine the quality of property frontages. Creating spectacular open spaces and opening up waterfront views will enhance the value of the Island.
But perhaps even more importantly, this approach will allow for incremental development and change over time to meet unpredictable market requirements and unforeseeable future events. Such provisions can be included in plans without sacrificing the creativity or flexibility of any potential respondent. In fact, including such guidelines in an RFP will help ensure better responses by providing clarity and certainty to any potential partner.
Will the development of Governors Island continue to drift? Despite the island's potential, that's undeniably been true so far. But the fate of this remarkable Island will not be be calmed for long if the City and State set a strong course and run enough sail up the pole, to enable it to catch the wind.
(A longer version of this article is available at The Stamford Review (http://www.stamfordreview.com)
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