Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: Tuesday, September 4, 2001
Release # 302-01

Contact: Sunny Mindel / Peter C. Fenty (212) 788-2958
  Gregory Miley / Janel Patterson (EDC) (212) 312-3523


MAYOR ANNOUNCES DESIGNATION FOR RETAIL AND
OFFICE DEVELOPMENT IN BRONXCHESTER

Development Project Will Create More Than 500 Permanent Jobs

Mayor Rudolph W. Giuliani today announced the designation of a developer for Bronxchester Site 12, a City-owned site near the commercial district known as the Hub in the Bronx. The Related Companies, LP has been selected to develop an approximately 226,000 square-foot office/retail complex between 153rd and 156th Streets on Third Avenue, just north of the Hub. Related will also renovate an existing 273-space parking garage on an adjacent site.

"The transformation of the Bronx continues to move forward as the City works with the private sector and community organizations to bring quality retail outlets and office space to this Bronx community," said Mayor Giuliani. "The development of this complex will also attract additional jobs and investment to the area."

The proposed project will consist of 164,300 square feet of retail space on two levels, with an additional 61,700 square feet of office space on a third level. Kmart has expressed interest in being the anchor tenant for the project. Construction is expected to create approximately 290 jobs. The development will also create a projected 540 permanent jobs.

"With Kmart as its anchor, this development will be the cornerstone of the revitalization of the Hub," said Robert M. Harding, Deputy Mayor for Economic Development and Finance. "It will also provide needed office space in a neighborhood where there has been no office development in more than 10 years."

The Related Companies was selected as a result of a Request for Proposals (RFPs) issued by the New York City Economic Development Corporation (EDC), on behalf of the City. In evaluating the RFPs, EDC considered a number of factors, including development team qualifications, financial feasibility, relationship to the surrounding community, design features and ability to complete the project in a reasonable timeframe.

"Public/private initiatives that promote quality development in previously underserved neighborhoods are the hallmark of the Giuliani Administration," said EDC President Michael G. Carey. "This project represents approximately $36 million in private investment and more than 500 permanent jobs for this Bronx community, as well as almost 300 construction jobs."

"We are grateful for the opportunity to develop this important project in the Bronx," said Jeff Blau, President of the Related Companies. "This project will serve as an anchor for existing and future retail uses for the community, and the jobs created will yield a significant benefit to the surrounding community as well."

The Related Companies is a fully integrated real estate firm with divisions specializing in acquisitions/development, financial services and management. As one of the country's most active developers, Related has developed or acquired in excess of 40,000 market rate and affordable housing units and 4.6 million square feet of retail and commercial space. The company currently has properties worth more than $3 billion under development in New York City, consisting of over 2,500 housing units, 500 hotel rooms, 1.2 million square feet of retail space, and 1.75 million square feet of office space.

EDC is the City's primary vehicle for economic development. 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 of City-owned land for economic development.


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