Contact: Colleen Roche (212) 788-2958 or Deirdra L. Picou (212) 788-2971
Located on the block bounded by Johnson, Jay and Adams streets, Renaissance Plaza will include 809,280 square feet of office space, a full-service Marriott hotel and banquet center, retail shops, a health club and a 1,074-car private parking garage. Renaissance Plaza which is being developed by the Brooklyn Renaissance Plaza, LLC, whose members include affiliates of Muss Development Company of Forest Hills, Leucadia National Corporation and The Carlyle Group. Together, Empire and Renaissance Plaza will account for a total of 1,236 jobs (736 at Empire; 400 at the hotel; and 100 at the garage/office building). Mayor Giuliani said, "The birth of the Renaissance Plaza project will result in a world-class office complex and hotel and more jobs for New Yorkers. Moreover, Empire's decision to become a major tenant demonstrates the attractiveness of downtown Brooklyn as a place to do business. We are very glad we've been able to retain this important company and we congratulate Empire officials on their decision to stay in New York City as a tenant at Renaissance Plaza." Empire's decision to become a tenant at Renaissance Plaza was made after the company decided against a move to Valley Forge, Pa., where it planned to consolidate its operations with another Leucadia subsidiary, Colonial Penn Insurance. Empire will rent nine floors in Renaissance Plaza. The King's County District Attorney's Office, which has occupied its current Brooklyn offices for more than 60 years and is in need of expanded, upgraded space, will lease 14 floors. The hotel is seven floors, and Brooklyn Union will share one floor. The City's agreement with the developer, negotiated through the New York City Economic Development Corporation (EDC), projects construction of Brooklyn Renaissance Plaza to cost $228.3 million. The City will contribute up to $27 million for tenant improvements to the District Attorney's space and up to $23.35 million toward the construction of the base building and garage. The City will also contribute $1.5 million for street improvements on Adams Street. At the same time, Renaissance Plaza is expected to generate $306 million in economic activity per year and as much as $9.9 million per year in tax revenues. Brooklyn Borough President Howard Golden said, "Building a first-class hotel in downtown Brooklyn has been one of my highest priorities for more than a decade. With Renaissance Plaza, Brooklyn will have a major new office building and its first new hotel in 50 years, as well as a source of employment for hundreds of people. The start of work on Renaissance Plaza is strong evidence that the economic resurgence of downtown Brooklyn continues. The collaboration between the Muss Organization, my office, the City's Economic Development Corporation and the Carlyle Group continues a tradition of cooperation between the public and private sectors that has transformed downtown Brooklyn. Working together over the past ten years we have seen the investment of more than twenty-five thousand new jobs to the Brooklyn economy." The Marriott will be the first new hotel in Brooklyn in 50 years, and the office tower is Brooklyn's first in 4 years. The project will also provide 800 construction jobs over a two-year period. Over the term of the agreement with Empire Insurance Company were also negotiated through the New York City Economic Development Corporation (EDC) and approved by the City's Industrial Development Agency (IDA). Empire, currently located at 122 Fifth Avenue and four other smaller midtown-Manhattan locations, will receive a maximum of approximately $8.4 million in State and City sales tax and real estate tax benefits in connection with its commitment to retain 736 jobs. The City's portion of this benefits package is $5.4 million. The City is also offering an additional maximum benefit of $300,000 if Empire is able to create the projected 50 new jobs. Empire generates $7.7 million annually in City tax revenues. As a result, the payback period is 8.9 months. "Empire's decision to stay in New York enables us to secure this company's future in Brooklyn well into the 21st century," said Fran Reiter, Deputy Mayor for Economic Development and Planning. "Not only have we retained 736 jobs through our agreement with Empire, but with the Renaissance Plaza project we will create another 500 jobs at the hotel and office complex." "This project will further one of Mayor Giuliani's main goals and achievements -- to preserve and create private-sector jobs. During the Giuliani Administration, the City has gained more than 100,000 private sector jobs," said Deputy Mayor Fran Reiter. "We are very pleased with Empire's decision to remain in New York City, because it means jobs for New York City residents and it helps us retain our status as the insurance and financial capital of the world," EDC President Charles Millard said. "And where else should a world class office and hotel development be built but in revitalized, corporate downtown Brooklyn. This project is a win-win situation for everyone involved." Including this agreement, the Giuliani administration has now retained 20 major companies, representing 49,300 jobs retained and a projected 16,484 new jobs over the next 20 years through its corporate retention program. The total tax revenue generated by these companies to the City is $731.95 million a year for the next 10 to 20 years. "The development of Renaissance Plaza, which will bring jobs to Brooklyn, is directly tied to the contributions of Mayor Giuliani, Brooklyn Borough President Howard Golden and Brooklyn Union Gas Chairman Bob Catell," said Joshua L. Muss, principal of Muss Development Corporation. "We are proud to be part of the team which will provide first class office space and a top flight hotel to the people of Brooklyn and all of New York City. Our company has long been in the business of developing properties in the boroughs and bringing prime projects to both the public and private sector." "As far as we're concerned, New York City has the right kind of attitude -- a business-friendly attitude," said Joel Berlin, senior vice president of Empire Insurance. "And when it came right down to it, we knew the best place for the Empire Insurance Group was where the world does it's business... right here... in New York City." Morse Diesel International has been chosen as the contractor and has already begun construction of Renaissance Plaza. The project is expected to be completed within the next 23 months. William B. Tabler Architects, which has designed more than 300 hotels, created the hotel design. Brooklyn Renaissance Plaza, LLC, ("BRP") will own the office/garage portion of the project. BRP is composed of MWR Associates, LP, with Muss Development Co. as its general partner; TCG Realty, LLC, the real estate subsidiary of The Carlyle Group, a Washington D.C. based merchant bank; and Luk-Ren, a wholly-owned subsidiary of Leucadia National Corp., an insurance, finance and real estate holding company. BRP Hotel, LLC, which will own the hotel portion of the project and includes the above partners, as well as an affiliate of Marriott International Corporation.