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NY POLITICS
JANUARY 5, 2012
Another New Idea for the Javits Center
By JOSEPH DE AVILA
New York Gov. Andrew Cuomo's plans to redevelop the West Side facility and build a new convention center in Queens come as the Javits Center is searching for a new chief executive and is completing a $500 million renovation.
Making the announcement in his State of the State address, Mr. Cuomo summed up what critics have said about the state-owned Javits Center for years: It is too small and outdated to host world-class events in the nation's largest city.
"Right now the Jacob Javits Center is not competitive," Mr. Cuomo said, adding that it is smaller than convention centers in cities like Anaheim and Atlanta. "That hurts the New York economy."
Replacing Javits would be what Mr. Cuomo billed as the country's largest convention center, a private venture proposed near the Aqueduct Racetrack and a casino in the South Ozone Park section of Queens. The plan would add the Javits site as another prime parcel of developable land in a fast-growing part of Manhattan near the Related Cos.' Hudson Yards project and Moynihan Station.
Under Mr. Cuomo's plan, the 18-acre Javits Center site would become a mixed-use facility that could include housing, hotels and office space. It would be modeled, Mr. Cuomo said, after the Battery Park City Authority, which signs long-term leases with private developers and provides revenue to the state. Small and midsize conventions could still take place at Javits, while larger shows would happen in Queens. The Cuomo administration estimates that more than $2 billion in private-sector investment would flow into a redeveloped Javits Center.
Carl Loewenson, chairman of the New York Convention Center Operating Corp. that runs the Javits Center, declined to comment on Mr. Cuomo's speech.
Mr. Cuomo's plan is the latest effort by the state to reconfigure the Javits Center, which was built in 1986. Ever since, governors have made halting efforts to expand the center, which is currently in the midst of a $500 million renovation that includes an 80,000-square-foot addition scheduled to be completed in two years.
The Queens convention center proposal—on which Mr. Cuomo's Javits plans hinge—would face significant obstacles.
Malaysian gaming company Genting Americas would have to obtain financing for a 3.8-million-square-foot facility that would cost more than $1 billion at a time when construction loans are hard to get, industry experts said. A Genting subsidiary already runs a casino at the racetrack.
The Queens location could be another hurdle because many tourists prefer to stay in Manhattan with easy access to restaurants and Broadway, said Steven Spinola, president of the Real Estate Board of New York, an industry association.
"Part of the planning will have to be the transportation to get people around the city of New York," Mr. Spinola said. "But if you make it big enough and make it exciting enough, I think you will be able to overcome that."
Mayor Michael Bloomberg said the Aqueduct area would be a "decent location."
"I think all of us agree that we need a bigger convention center," he said. "It would be a great idea to get it done."
Christian Goode, senior vice president of development of Genting Americas, said in a statement: "It's a great time to invest and grow in New York, and we are thrilled to be able to play a role in creating jobs and increasing tourism."
Mr. Cuomo's vision for the Javits Center would open for development a Manhattan parcel of land that the governor said was "larger than the World Trade Center and the United Nations."
"This becomes the biggest development parcel in the city," said Bob Yaro, president of the Regional Plan Association, which had pushed for a similar plan for Javits last year. "It's the opportunity to create a large mixed-use district that would complement the Hudson Yards site."
The proposal comes as the Javits Center has hunted for a new chief executive for several months after its longtime leader Gerald McQueen stepped down last year. Mr. McQueen had been credited for rooting out the mob corruption at the center and helping it turn profits from fiscal year 1997 to 2009.
The center's financial health declined after the 2008-09 recession. Shows have become smaller, and there have been fewer of them as more groups opt for video conferencing instead of traditional conventions, Mr. Loewenson said.
"People have recovered from the shock of the financial crisis, but it's still not back to where it was before 2008," Mr. Loewenson said.