FOR IMMEDIATE RELEASE
Thursday, May 11, 2000
| Contact: | Sunny Mindel/Curt Ritter (212) 788-2958 |
| Bernadette O'Leary 212/312-3523 (EDC) |
Mayor Rudolph W. Giuliani today announced the sale of the development rights for the air space above the Theater for the New City. Developer New City Associates LLC will construct a 14-story apartment building above the theater at 155 First Avenue. The transaction will help ensure the continued operation of the 25-year-old theater company.
The City sold the one-story building to the Theater in 1987, but retained the rights to the developable space above the building. The Theater for the New City then undertook a major renovation program to transform the former warehouse into a three-theater complex on the building's main floor and in the basement. The $2 million renovation exceeded the Theater's budget and led to a lien in 1997 that threatened to close down the Theater.
To assist the Theater, the New York City Economic Development Corporation (EDC), on behalf of the City, issued a Request for Proposals for potential development of the building's air space. New City Associates, a local development company whose principals have extensive experience in housing development throughout the City, was selected for the project. New City Associates paid the City $680,366 for the development rights. In addition, the developer paid the Theater for the New City $519,634 for lobby space and an easement to build through the existing building. The Theater in turn used the money to pay off the lien.
"This is a very gratifying transaction," said Mayor Giuliani. "We not only added money to the City's revenues but we helped an established community-oriented cultural organization to continue to operate and offer its programs and services to emerging theatrical talent and community youth."
"The Theater for the New City's dedication to the production of new theatrical works and the creation of events to bring the community and the theater together are invaluable for the community and all of New York City," said Deputy Mayor for Economic Development and Finance Robert M. Harding. "I am pleased that the City has had a role in ensuring its future."
The Theater for the New City is one of New York City's most distinguished Off-Broadway resident production companies. Each year, the Theater presents 30 to 40 productions of new American works. Its Community Arts Service Program includes an Art-In-Education Program for students of nearby PS #20, as well as Arts-In-Education Programs for the Department of Cultural Affairs, Board of Education and HRA-funded Community Arts Program for Children in Temporary Housing. In addition, The Theater's annual Free Street Theater Program tours a new musical with a cast and crew of 50 to low and moderate income neighborhoods throughout the five boroughs.
"We are grateful for the help the City has given Theater for the New City, taking us from the brink of disaster and settling us into a survive and flourish mode in keeping with the spirit of the new millenium," said Crystal Field, Executive Director, Theater for the New City.
"In addition to helping continue a cultural tradition, this project will also bring much-needed housing to the area," said Michael G. Carey, President of EDC. "New City Associates will create approximately 60 new residential units for the community and produce approximately 70 construction and four permanent jobs."
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs. EDC is also responsible for the sale and leasing of City-owned land for economic development.
www.ci.nyc.ny.us