U.N. Building Plan Proceeds 

By JOE LAURIA 
JULY 7, 2011
WSJ
http://online.wsj.com/article/SB10001424052702303544604576430350425149560.html

UNITED NATIONS—After getting a green light from Albany, the United Nations is expected to push ahead with a plan to build an office tower on a playground near its headquarters.
The state Legislature last month quietly reversed itself after seven years of opposition to construction on the public Robert Moses Playground at 42nd Street and First Avenue. The bill, which the governor is expected to sign, left it to city and state officials to work out a memorandum of understanding by Oct. 10 for construction to proceed.
Hurdles remain before the project goes forward. 
I think getting to this stage is a significant achievement, but it doesn't mean the deal will get done, said Assemblyman Brian Kavanagh, a Democrat from Manhattan. We're only going to do a deal if we get sufficient replacement of that parkland.
Assemblyman Dov Hikind, a Democrat, said he can't imagine a situation that I would support anything the U.N wants to do. I think the mayor has a lot to do with pushing this, he said, adding: I still think there's a chance the thing may fall apart.
Officials said the mayor's office quietly pressed for the bill. Mayor Bloomberg is supportive of the plan, said City Council Member Dan Garodnick, whose 4th district includes the U.N. He helped push through a formal council request to the Assembly to approve the plan.
Micah Lasher, director of state legislative affairs for the Bloomberg administration, said the project could have an enormous upside for the local community and the city as a whole.
The bill's passage was first reported by Crain's New York.
A U.N. spokesman said the U.N. secretariat was aware of the legislation and supports the concept of the U.N. Development Corporation building on the playground. Construction would be financed by bonds issued by the development corporation after General Assembly approval. It is seen as unlikely that the General Assembly would vote on the bond issue this fall. 
The new tower would house U.N. staff from two city-owned buildings and from the U.N. complex, which is undergoing a $1.8 billion renovation due to be completed in 2013.
State legislators in 2004 failed to vote on the construction plan, citing strong anti-U.N. sentiment due to the U.N.'s refusal to authorize the U.S. invasion of Iraq. City officials said that obstacle has been cleared with passage of the bill, but others remain.
The biggest will be finding replacement park space for the playground, officials said. That is most likely to be paid for after the city sells the two buildings it owns across from the U.N., which now house U.N. staff that would move to the new tower.
Also, officials must hammer out how much of the proceeds from those sales will go back into the city's general fund and how much might be used for other projects, such as the construction of an East River waterfront park, city officials said.
The city needs to make sure it doesn't end up losing money and local groups want to be confident they're getting a good park in return, a city official said.
Community opposition to the plan has been muted. There are many miles to go before all of this is buttoned down, Ellen Imbimbo, the first vice chairwoman of Community Board 6.
The city is to start its East Side project with a $13 million renovation of a pier on 42nd Street paid for by Con Edison, which has knocked down a First Avenue power station adjacent to Robert Moses Park. The area has been cleared for residences and office blocks.
The U.N. building would be built on the 29,000-square-foot blacktop playground on the First Avenue end of the park. Basketball and handball courts and a dog run on the FDR Drive end would not be affected, officials familiar with the plan said.
This is a good opportunity for us to have a negotiation to see whether there is a plan that works for the U.N. and for the community, said Mr. Garodnick.
—Jacob Gershman contributed to this article.