Crains New York - October 8, 2012 - (Page 6)

THE Faster than a speeding bullet INSIDER New Buildings Dept. approval process flies with ‘men of steel’ BY AMANDA FUNG For decades, anybody aiming to build in New York had to queue up at the city’s Department of Buildings to submit reams of drawings, construction plans and other documents for review. Next came as many as four face-to-face meetings with a welter of city agencies to mull over all that paperwork, a process that easily could take a year before the city would allow anybody to sink a single shovel in the ground. Today, that process is being swept aside. Under a new digitized system, documents are submitted electronically, conferences are conducted via Web video links, and the verdict is rendered (by email, of course) in as little as three months—all without anyone having to leave their office. It is a “sea change,” said Bruce Beal Jr., president of Related Cos., one of New York’s largest developers, who went on to hail the new process for making the city “more user-friendly.” The system that Mr. Beal and developers of all sizes are happily embracing is officially called the NYC Development Hub, and they are doing so for good reason.By greatly accelerating and simplifying the approval process, the Hub not only cuts the high cost of building in the city by saving developers time, but it also allows the city to respond more quickly to shifts in demand for office space, apartments or whatever. The Hub is especially crucial now that construction activity is picking up again. “This is a huge leap in the way we do things,” said Buildings Department Commissioner Robert LiMandri. “I think within a year, almost every new building request will go through the Hub.” That is already well on the way to happening. Exactly one year after the Hub was launched, its impact is substantial. According to the city, 339 new buildings and major alterStreet officially became the first Hub-approved project, getting its green light three months after filing its plans. Related was followed by a platoon of big developers, including New York’s Harry Macklowe and Dallas’ Hines. Through the Hub, they won approval for an 84-story luxury residential tower on the former site of the Drake Hotel on Park Avenue and a 29-story office tower overlooking Bryant Park on Sixth Avenue, respectively. “It has improved the Buildings Department’s efficiency and transparency,” said Mr. Beal. To make it all possible, the department has spent more than $250,000 outfitting an office—on the third floor of 80 Centre St. in lower Manhattan—with tech tools ranging from tablet computers and webcams to 70-inch flat-panel television screens. Last month, that hardware helped Martin Dunn of Brooklyn-based Dunn Development Corp. win approval in enough time to meet a crucial Oct. 1 deadline he faced in securing financing for a 66-unit affordable senior housing project. Having only submitted the plans in mid-July, he had feared that the approval for the project in Brooklyn’s Brownsville section would not come fast enough. “Time is money when it comes to development,” said Mr. Dunn. After some initial technological snafus, including garbled videoconferences and document downloading/uploading issues, the system has settled in nicely.What remains to be See FASTER on Page 18 by Andrew J. Hawkins ‘In a year, almost every building request will go through the Hub’ ation projects had been approved via the Hub as of Oct. 3.Those projects are expected to produce an economic impact, in terms of construction and permanent jobs, of more than $1 billion at a time when the city’s economy is still reviving. Last month, 38% of all new buildings went through the Hub,up from 24% in August. Last year, Related Cos.’ 389-unit apartment building on West 30th M Windfall for Romney? Debatable itt Romney’s strong performance in last week’s debate may translate into a cash windfall from New York donors, several Republican consultants and fundraisers claimed. But others noted that many GOP backers in New York have already given him as much as the law allows. David Catalfamo, a Republican operative and former aide to Gov. George Pataki, said the response to the challenger’s debate performance was enthusiastic at a breakfast the next day with more than 20 executives from the commercial real estate industry. One Republican fundraiser said phones have been ringing off the hook since the debate. “Donors are definitely excited, and there have been a few people reaching out asking, ‘Where can I send my check?’ ” the fundraiser said. Mr. Romney has raised $17.8 million from New York state, or 9% of his total haul, according to the Center for state law,” he said. Mr. McDonald has retained Genova Burns Giantomasi & Webster to argue his case. “We’re confident that this legal position is the correct one,” said Laurence Laufer, an attorney with the firm. Mr. Laufer will square off against the city’s Campaign Finance Board, where he was once general counsel. A spokesman for the board said, “The city’s campaign finance law says the limits apply to all candidates.” Mr. McDonald hopes to raise $16 million for his mayoral bid. “We’re going to file a big number on Jan. 15,” he said, referring to the next disclosure deadline. One rival for the mayoralty, Manhattan Media CEO Tom Allon, scoffed at those fundraising goals. “If he raises more than $1 million by January, I’ll eat my hat in Macy’s window,” Mr. Allon quipped. Replied Mr. McDonald, “I look forward to selling tickets to Tom eating his fedora. It’ll be a fundraiser for my campaign.” Discover 360° Service. Finding the right space means more than just location. Cassidy Turley’s tenant representation specialists will develop your ideal real estate strategy, no matter your size, scale or scope. Our experience, proprietary research and unique strategic approach give our experts a 360º view. Responsive Politics. More than $12.5 million of that came from the city. Wall Street firms make up the top five sources of money for Romney’s campaign: Goldman Sachs, Bank of America, JPMorgan Chase, Morgan Stanley and Credit Suisse. President Barack Obama has raised more than $24 million in New York. However, the maximum donation for the general election is $2,500. “I think a lot of people have already hit the federal limit,” said Daniel Isaacs, chairman of the Manhattan Republican Party. “A lot of the big guys are more or less maxed out.” Mayoral rivals have hat in hand Donors can give up to $4,950 to a citywide candidate, according to city law. State law says they can contribute as much as $41,100, but no city candidate has dared to defy the city limit. Until now. George McDonald (pictured), founder of the Doe Fund and a Republican candidate for mayor, will challenge the city law as unconstitutional. “I believe I have the right to collect [more] under Discover Excellence in Tenant Representation. Discover Cassidy Turley. Peter Hennessy President, New York Tri-State Region 212.318.9790 Peter.Hennessy@cassidyturley.com www.cassidyturley.com Tenant Representation / Project Leasing / Project & Development Services / Property Management / Corporate Services / Capital Markets For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider 6 | Crain’s New York Business | October 8, 2012 bloomberg news http://www.cassidyturley.com http://www.cassidyturley.com http://www.crainsnewyork.com/insider

Table of Contents for the Digital Edition of Crains New York - October 8, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
FROM AROUND THE CITY
OPINION
GREG DAVID
THE LIST
REAL ESTATE DEALS
CLASSIFIEDS
SMALL BUSINESS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - October 8, 2012