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  FOR IMMEDIATE RELEASE
October 1, 2002
PR-255-02
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG OPENS GATEWAY CENTER -
BROOKLYN'S LARGEST ECONOMIC DEVELOPMENT PROJECT
OUTSIDE OF DOWNTOWN


More than 1,700 Jobs Created by Center; New Housing to be Developed

Mayor Michael R. Bloomberg today opened Gateway Center in the East New York section of Brooklyn. The largest economic development project in the borough outside of Downtown Brooklyn, the $192 million center will bring more than 1,700 jobs to New York City, and will be home to ten national retail chains and three family-style restaurants. Gateway Center's impressive roster of retail tenants include Babies "R" Us, Bed Bath & Beyond, BJ's Wholesale Club, The Home Depot, Circuit City, Famous Footwear, Marshalls, Old Navy, Staples and Target. The center's restaurants include Olive Garden, Red Lobster and Boulder Creek Steakhouse. In addition to generating revenue and creating jobs, the project will provide a number of other public benefits, valued in excess of $33 million, including the creation of a 17-acre public park - the first in New York City to provide a regulation Cricket field - and a new wetland habitat. Infrastructure improvements include the creation of a new interchange from the Belt Parkway and associated roadway improvements.

"Some of the leading retail businesses have decided to put roots down here in East New York, and it's no surprise, because Brooklyn, like the rest of New York City, is a great place to do business," said Mayor Bloomberg. "The reclamation of this vast stretch of vacant land with a regional shopping center, 2,385 units of mixed-income housing and much needed recreational facilities has been pursued for decades and is now successfully underway through the efforts and coordination of various City and State agencies."

The Mayor was joined today by The Related Companies Chairman and CEO Stephen Ross, The Related Companies President Jeff Blau, Empire State Development Corporation Chairman Charles A. Gargano, New York State General Services Commissioner Kenneth J. Ringler, Jr., Brooklyn Borough President Marty Markowitz, Councilmember Lew Fidler, Housing Preservation and Development Commissioner Jerilyn Perine and Parks and Recreation Commissioner Adrian Benepe.

"We're working hard every day to build a brighter, better future for the citizens of New York," said Governor George E. Pataki. "We've helped create more than 600,000 new jobs across the State by cutting billions of dollars in taxes, reducing burdensome regulations and implementing smart, business-friendly initiatives and policies. The new jobs created by this outstanding new development is another example of how these policies are paying off for New Yorkers."

The City's Department of Housing Preservation and Development (HPD) originally conceived of the Gateway Center project in the late 1980s. The project was built on properties acquired from the City and State of New York. The Gateway Estates project in East New York, Brooklyn was designed to reclaim a 230-acre former landfill site along the Belt Parkway by creating a new mixed-use mixed-income community. Economic benefits over the life of the Gateway Center project include: 4,400 construction jobs, 1,700 permanent jobs, $730 million in economic activity, and $40 million in annual revenue for the City, reflecting the recapture of over $625 million in retail sales. In addition to HPD, the City's Departments of Parks and Recreation, Transportation, Environmental Protection, and Design and Construction have allocated significant resources to this development. This City effort has been coordinated with New York State's Departments of General Services and Environmental Conservation, as well as the Empire State Development Corporation.

The 640,000-square-foot retail center is a development of Gateway Center Properties LLC, a partnership of Related Retail Corporation (an affiliate of The Related Companies) and Blackacre Capital Management. The firm of Greenberg Farrow Architecture from Atlanta conceived the design plan. Gateway Center anchors the site, and the infrastructure improvements associated with the commercial site pave the way for new development. The next phases will include the construction in 2004 of 920 units of Nehemiah housing sponsored by East Brooklyn Congregations, a non-profit consortium of faith-based organizations in Brooklyn, up to 1,465 additional housing units, including 200 specifically for senior citizens, 45 acres of parkland, and new infrastructure for the currently vacant portions of the site.

"This announcement is great news for the area's economy but even more importantly, this announcement represents new opportunities through good jobs for the good people of Kings County," said Chairman Gargano. "Governor Pataki knows that we have to work harder and market our strengths more than ever so that the entire State of New York can thrive."

"This retail complex demonstrates the City's commitment to promote stable healthy neighborhoods by pairing affordable housing development with places for people to work and shop," said HPD Commissioner Perine.

"Gateway Center will provide a major economic boost to this entire area. Out of nothing, seventeen hundred good-quality jobs are being created for the people of East New York and the surrounding neighborhoods," said Mr. Ross.

www.nyc.gov

Contact: Ed Skyler / Megan Sheekey
(212) 788-2958
Carol Abrams (HPD)
(212) 863-5176
  Lee Silberstein/David Stearns
(212) 889-0808
(The Marino Organization for Gateway Center Properties LLC)