FOR IMMEDIATE RELEASE
December 08, 2004
MAYOR MICHAEL R. BLOOMBERG AND ASSEMBLY SPEAKER SHELDON SILVER JOIN GOVERNOR GEORGE E. PATAKI FOR BILL SIGNING GRANTING THE EXPANSION OF JACOB K. JAVITS CONVENTION CENTER
Expanded Javits Center Will Create Over 10,000 New Jobs, Additional $53 Million in Revenue; And Nearly Double Convention Center Capacity
Mayor Michael R. Bloomberg and Assembly Speaker Sheldon Silver today joined Governor George E. Pataki as he signed into law legislation that authorizes the expansion of the Jacob K. Javits Convention Center. The expansion will nearly double the Convention Center’s capacity, creating thousands of new jobs and enabling New York City to compete for hundreds of events - and millions of dollars in economic activity - now lost to other cities. The new law empowers the New York Convention Center Development Corporation (CCDC) to plan and design the new facilities, enter into construction agreements, and issue bonds to finance the project.
“By authorizing and funding the expansion and renovation of the Javits Center, we are sending a powerful signal that New York City is investing in its future,” said Mayor Bloomberg. “The Javits expansion is expected to generate over $50 million in new annual tax revenues to the City and State, and 10,000 jobs in the hospitality industry. When combined with the future expansion, the new Convention Corridor will total over 1.75 million square feet, providing the City with the ability to host virtually any convention, trade show, exhibition or special event. I commend Speaker Silver and Senate Majority Leader Bruno for their leadership in passing this historic legislation, as well as Governor Pataki for his steadfast support of this project. The authorization of the Javits Convention Center is the result of an extraordinary partnership between the City, the State, the private sector led by the hospitality industry and organized labor.”
“The expansion of the Javits Center is critical for the economic future of New York City and State,” Governor Pataki said. ”For more than seven years, I have been pushing for its expansion so that we can grow our convention industry, bring more jobs, and attract new events to New York City. We’re proud that the new expansion of the Javits Center will create thousands of jobs, and bring in millions of dollars in revenue every year that New York City currently loses to other cities. The expansion of the Javits Center elevates New York to its rightful place among the country’s best convention destinations and invests in our future by generating more than ten thousand of jobs and over fifty million dollars in additional tax revenue every year. I want to thank my colleagues in the Legislature for making the expansion of the Javits Center possible, and all those who have advocated for this important legislation including Mayor Bloomberg, NYC & Company, the Hotel Association of New York City, the New York Hotel and Motel Trades Council, the NYC District Council of Carpenters, and the NYC Building Trades Council.”
Senate Majority Leader Joseph L. Bruno said, “I’m extremely pleased that the Senate was able to reach this agreement on the much needed Javits Center expansion with the Assembly and Governor Pataki. This expansion is an important step toward the revitalization of New York City – it will have a tremendous economic impact by creating thousands of construction jobs in addition to thousands of permanent jobs, modernizing New York City’s convention and tourism industry and increasing the city’s tax revenues by millions of dollars.”
Senator Martin J. Golden said, “The expansion of the Javits Center is an historic moment for the City of New York because it reaffirms us as a global leader in accommodating and hosting events in a world class facility. This expansion will create 10,000 new permanent jobs, 10,000 temporary jobs, and generate important new tax revenues. The Javits Center expansion is an important first step towards the revitalization of Manhattan’s West Side.”
Senator Frank Padavan said, “This is great news for the City and for the thousands of people who will benefit from the new jobs created by an expanded convention center. As the most prominent and important business center in the world, New York City deserves to have a world class convention center.”
Senator Serphin R. Maltese said, “This project will generate millions of dollars in tax revenue, create thousands of jobs, bring more tourists into our City and will help keep New York City the paramount city in the world.”
Senator John J. Marchi said, “The expansion of the Javits Center has been long overdue, and legislation to make that happen is a measure for which I voted for enthusiastically. It will enhance New York City’s ability to attract even more convention business, ending the regrettable need to turn business away because the present center’s size is too small. And, a bigger Javits Center will help boost the hotel and entertainment business in the city.”
The new law also provides $350 million for critical economic development projects outside of New York City. The projects will be determined through a Memorandum of Understanding to be negotiated between the State Legislature and the Governor’s Office.
Empire State Development Corp. Chairman Charles Gargano, who also serves as chairman of the Javits Convention Center Development Corp. said, “Under Governor Pataki’s leadership and with broad support from the Legislature, Mayor Bloomberg, the hospitality and tourism industry and the building and trade unions, New York City will now get the expanded convention center it needs and deserves. No longer will New York City take a back seat to other locations in attracting and serving conventions and meetings. At Governor Pataki’s direction, the Convention Center Development Corp. will be moving promptly to undertake this critical project which will be an investment in the future not only of this city but the entire state.”
Jacob K. Javits Convention Center Chairman Robert E. Boyle said, “I’m thrilled that this legislation is being signed into law by Governor Pataki. The Javits Center has waited a long time for our plans to become reality, so that finally we can put a shovel in the ground. The West Side development is a very exciting prospect for the city and the state, and Javits is delighted to be a major part of the story.”
Jonathan M. Tisch, Chairman of NYC & Company said, “Expanding the Javits Center is the single most important capital project that can be undertaken to support, strengthen and expand the city’s $23 billion tourism industry. I applaud Governor Pataki, Mayor Bloomberg, Senate Majority Leader Bruno, Speaker Silver and the State Legislature, for taking this historic step toward a brighter and more prosperous future for all New Yorkers by passing this important legislation. The expanded Javits Center will strengthen opportunities for the 300,000 men and women who work in New York City’s travel and tourism industry, and create thousands of new jobs for the city’s future workforce.”
NYC & Company President and CEO Cristyne L. Nicholas said, “With the passage of this legislation, the Javits Center takes its rightful place among the top ten convention centers in North America, which will allow New York to welcome hundreds of meetings and trade shows that will now be able to consider our great city,” “Now is the time to take advantage of the growing multi-billion dollar meetings and convention industry, which after a period of contraction is now growing significantly. NYC & Company, along with our partners at the Javits Center, is ready to take advantage of this market upswing and attract new business that will generate more visitor spending, more jobs and more tax revenues for the Empire State.”
President of the Hotel Association of New York City Joseph E. Spinnato said, “The Hotel Association is extremely happy over the news of the passing of legislation which allows the expansion of the Javits Center. Our members have worked for a very long time to bring about this expansion, and we are thrilled that it has come to pass. Our thanks go out to Governor Pataki, Mayor Bloomberg, Senator Joseph Bruno and Speaker Sheldon Silver for their vision and commitment.
President of the New York Hotel and Motel Trades Council and Business Manager of HERE Local 6 Peter Ward said, “This is a tremendous achievement for the tens of thousands of workers who earn a living in New York’s construction and hospitality industries. The expansion of the Javits Center is not only good for the city’s economy, but will raise the standard of living for workers by generating good jobs, reduce seasonal layoffs and provide for a dignified retirement.”
After hearing the news of the Javits Center expansion, meeting planners and association executives reached out to NYC & Company, the City’s official tourism marketing and convention development organization, to state their intention to bring their business and delegate spending to New York City. Pending the announcement of the expansion, the American Association of Orthodontists tentatively booked space at Javits in 2013. The meeting will generate 24,000 total room nights and bring 20,000 attendees to New York City.
“The American Association of Orthodontists is very pleased that the State of New York will be moving forward with the expansion of the Jacob Javits Convention Center in New York City,” said Chris P. Vranas, Executive Director, American Association of Orthodontists. ”New York City is a favorite destination for professional organizations. However, without the expansion of the center most large professional organizations such as the AAO could not consider hold their meetings at Javits.”
Other shows, including The American Library Association, the National Association of Realtors, the Girl Scouts of the USA, among others, are now able to pursue their desire to make New York City the site of their convention or meeting.
“We here at the American Library Association are very excited that the expansion of the Javits Convention Center will become a reality,” said Deidre Irwin Ross, CMP, director of conference services for the American Library Association (ALA). “The ALA has wanted to return to New York for a long time, but the old Javits did not suit our needs. There was just not enough meeting space. This new Javits, as planned, will be perfect and we hope to be holding our Annual Conference in New York in June, 2010. We expect that conference to be a record breaker with more than 25,000 attendees. Now New York, a world class city will have a world class convention center.”
The Javits Center Expansion
Although nationwide, the Javits Center ranks first in attendance and second in number of shows among all convention centers, it ranks 18th in overall capacity. As a result of inadequate capacity, Javits Center has been unable to accommodate bookings representing 800,000 room nights over the next five years. The expansion will increase its exhibit space from 760,000 square feet to 1,100,000 square feet, and therefore, enabling it to host virtually any convention or trade show. The new Javits Center will add an estimated $53 million in combined annual tax revenue for the city and state to the $97 million it already provides. It will create an estimated 10,830 new permanent jobs, most of which will be concentrated in the currently underused Hudson Yards area of Manhattan’s Far West Side. This district will become the home of one of the nation’s top five convention centers and surrounding hotels and restaurants.
The Javits expansion will take place in two phases, with Phase 1 expanding south to 33rd Street and north to 40th Street. The new Javits Center will be expanded from 760,000 square feet to 1,100,000 square feet of exhibit space, 256,000 square feet of meeting space, as well as 86,000 square feet in new ballroom space as part of the Phase 1 expansion. The expansion will create the largest ballroom in New York City, capable of holding 6,000 people.
The Phase 1 expansion will cost $1.4 billion, funded through several sources. The City will contribute $350 million pursuant the signed Memorandum of Understanding. The State will contribute $350 million through restructuring of existing Javits Center bonds and utilizing special federal advanced refunding legislation. The hotel industry has agreed to a dedicated $1.50 per key surcharge that will generate $500 million.
Private financing will help build a 1,500-room headquarters hotel at 42nd Street and 11th Avenue. After Phase 2 expansion, total exhibit and meeting space will be 1,705,000 square feet – this expansion will be financed separately. Construction is expected to begin in spring 2005.
Edward Skyler / Jennifer Falk (212) 788-2958
Lynn Rasic (Governor) (212) 681-4640
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