Group: State, City’s $60M for Governors Island Falls Short

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The New York Sun

The state and the city announced yesterday that they will contribute a combined $60 million from next year’s budgets toward the preservation and redevelopment of Governors Island, but an alliance of civic groups said the commitment falls short of what is needed to attract private investment to rebuild it.


The goal is to turn the 172-acre former military base in New York Harbor into a world-class destination. Next month, the city and state agency in charge of the development, the Governors Island Preservation and Education Corporation, headed by Deputy Mayor Daniel Doctoroff, is expected to request development proposals from interested parties in the private sector.


Yesterday the state’s leading development official, Charles Gargano, told The New York Sun that the state and the city committed the funds for infrastructure improvements and upkeep. The hope is that the private sector will step in and make the crucial investment – in the hundreds of millions of dollars -for redevelopment.


Mr. Gargano said the state and the city so far have allocated more than $120 million for the project. Last year, they dedicated a combined $30 million. In the future, before the island becomes financially self-sufficient, city and state officials expect to contribute more money annually.


“It’s a very strong commitment on the part of the governor and the mayor,” Mr. Gargano said. “Obviously, everyone wants more money, but I think this is a strong commitment.”


The executive director of the Governors Island Alliance, a collection of 55 civic groups headed by the Regional Plan Association, Robert Pirani, said more public funds are necessary. Mr. Pirani said that because of its inaccessibility and lack of infrastructure, Governors Island more than any other city project needs a strong public sector financial commitment.


“They need to provide the access and amenities that drive most real estate decisions,” Mr. Pirani said. “They are trying to do the right thing, and it’s important they do signal their commitment to the island, but they need to let the private sector know this is just a down payment.”


Mr. Pirani said too little government funding could affect the kinds of applications for development would be submitted.


“The responses they are going to get will be weighted with folks who only see it working by controlling the whole island,” he said.


Since the state and city acquired the island from the federal government for $1 in 2003, several institutions, developers, and nonprofit organizations have been identified as potential inhabitants. But the site comes with potentially onerous development requirements, including specific allotments for open space, parkland, education and cultural facilities, and private development. In addition, the old fort contains about 225 buildings, a historic district, a landmark district, and the 22-acre Governors Island National Monument, which is administered by the National Park Service.


Mr. Doctoroff said yesterday that the city and state allocation was the amount he had sought. Mr. Doctoroff said he hoped a memorandum of understanding would be signed with a developer by the end of the year.


He added that developing the island is a challenge, but that he is confident about the private sector’s response.


“It’s not simple. The fact that is an island is a great advantage and it also complicates the challenge as well. It is a unique asset, and experience shows that people are willing to invest in unique assets,” Mr. Doctoroff told the Sun.


The president of the Partnership for New York City, which represents business executives, Kathryn Wylde, said increased private sector interest is likely to result from the city and state’s most recent financial commitment.


“I think there is a lot of interest, from institutions and private developers who are nosing around about what potential there is, but it hasn’t gelled yet,” Ms. Wylde said yesterday.


“Only recently, and particularly since Deputy Mayor Doctoroff stepped in, has it become clear that this will happen.”


The Governors Island Preservation and Education Corporation is scheduled to meet on Tuesday.


The New York Sun

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