AN ADVISORY SERVICES PROGRAM REPORT Lower Manhattan...

Lower ManhattanNew York City

A N A D V I S O R Y S E R V I C E S P R O G R A M R E P O R T

Urban LandInstitute$

Library of Congress, Geography and Map Division: Bird’s-eye view of New York City with Battery Park in the foreground. Painted by W. Heine, J. Kummer & Döpler; engraved by Himely; printed by Goupil & Co., Paris, ©1851.

LowerManhattan RetailSummitNewYork, NewYorkA Strategy for Making the World Trade Center Site and Downtown a World-Class Retail Destination

October 5–8, 2004

©2005 by ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W. Suite 500 WestWashington, D.C. 20007-5201

ALL RIGHTS RESERVED.

Reproduction or use of the whole or any part of the con-tents without written permission of the copyright holder is prohibited.

ULI CATALOG NUMBER: ASN085

Cover photo: Cade Martin Photography

ABOUT ULI–THE URBAN LAND INSTITUTE

ULI–the Urban Land Institute is a nonprofit research andeducation organization that promotes responsible leader-ship in the use of land in order to enhance the total environment.

The Institute maintains a membership representing a broadspectrum of interests and sponsors a wide variety of educa-tional programs and forums to encourage an open exchangeof ideas and sharing of experience. ULI initiates researchthat anticipates emerging land use trends and issues and pro-poses creative solutions based on that research; provides ad-visory services; and publishes a wide variety of materials todisseminate information on land use and development.

Established in 1936, the Institute today has more than25,000 members and associates from 80 countries, repre-senting the entire spectrum of the land use and develop-ment disciplines. Professionals represented include develop-ers, builders, property owners, investors, architects, publicofficials, planners, real estate brokers, appraisers, attorneys,

engineers, financiers, academics, students, and librarians.ULI relies heavily on the experience of its members. It isthrough member involvement and information resourcesthat ULI has been able to set standards of excellence in development practice. The Institute has long been recog-nized as one of America’s most respected and widely quotedsources of objective information on urban planning, growth,and development.

This Advisory Services program report is intended to fur-ther the objectives of the Institute and to make authoritativeinformation generally available to those seeking knowledgein the field of urban land use.

Richard M. Rosan, President

2 An Advisory Services Program Report2

ABOUT ULI ADVISORY SERVICES

The goal of ULI’s Advisory Services Program is to bring thefinest expertise in the real estate field to bear on complexland use planning and development projects, programs, andpolicies. Since 1947, this program has assembled well over400 ULI member teams to help sponsors find creative, prac-tical solutions for such issues as downtown redevelopment,land management strategies, evaluation of development po-tential, growth management, community revitalization,brownfields redevelopment, military base reuse, provision of low-cost and affordable housing, and asset managementstrategies, among other matters. A wide variety of public,private, and nonprofit organizations have contracted forULI’s Advisory Services.

Each team is composed of highly qualified professionals who volunteer their time to ULI. They are chosen for theirknowledge of the topic and screened to ensure their objec-tivity. ULI teams are interdisciplinary and are developedbased on the specific scope of the assignment. They provide

a holistic look at development problems. A respected ULImember with previous experience chairs each team.

A key strength of the program is ULI’s unique ability todraw upon the knowledge and expertise of its members, in-cluding land developers and owners, public officials, aca-demics, representatives of financial institutions, and others.In fulfillment of the Urban Land Institute’s mission, this Ad-visory Services report is intended to provide objective advicethat will promote the responsible use of land to enhance theenvironment.

ULI PROGRAM STAFF

Rachelle L. LevittExecutive Vice President, Policy and Practice

Mary Beth CorriganVice President, Advisory Services and Policy Programs

Nancy Zivitz SussmanSenior Associate, Advisory Services

Nicholas GabelAssociate, Advisory Services

Jason BellPanel Coordinator, Advisory Services

Yvonne StantonAdministrative Assistant

Nancy H. StewartDirector, Book Program

Julie D. Stern/JDS CommunicationsManuscript Editor

Betsy VanBuskirkArt Director

Martha LoomisDesktop Publishing Specialist/Graphics

Diann Stanley-AustinDirector, Publishing Operations

New York, New York, October 5–8, 2004 33

ACKNOWLEDGMENTS

On behalf of ULI, the Blue Ribbon Team would like tothank its sponsors. It is through the vision and foresight ofthe Port Authority of New York and New Jersey, the LowerManhattan Development Corporation, the Alliance forDowntown New York, and the Friends of CommunityBoard 1 that ULI convened the Blue Ribbon Team andbrought to New York retail and redevelopment experts fromaround the world to assist in creating a vision for a regener-ated lower Manhattan. The sponsors worked tirelessly toprepare briefing materials, organize the tour, and assist ULIin assembling the audience to hear case studies and recom-mendations. In particular, ULI acknowledges the efforts ofthe following individuals: Michael B. Francois, James T.Connors, Jenna LaPietra, and Michael Tranfalia, from thePort Authority; Kevin Rampe, Stefan Pryor, Jennifer Lumpp,Rober Goelet, and Joanna Rose, from the Lower ManhattanDevelopment Corporation; Carl Weisbrod, from the Alliancefor Downtown New York; and Madelyn Wils, from the Friendsof Community Board 1. The Blue Ribbon team hopes thatits recommendations can help the sponsors as they continueto create a vibrant downtown that will be a model for theworld.

ABOUT THE SPONSORS

The Lower Manhattan Development CorporationIn the aftermath of September 11, 2001, Governor GeorgePataki and then-Mayor Rudolph Giuliani created the LowerManhattan Development Corporation (LMDC) to help planand coordinate the rebuilding and revitalization of lowerManhattan, defined as everything south of Houston Street.The LMDC is a joint state/city corporation governed by a16-member board of directors, half of whom are appointedby the governor and the other half by the mayor. TheLMDC is charged with ensuring that lower Manhattan re-covers from the attacks of 9/11 and that it emerges even bet-ter than it was before. The centerpiece of the LMDC’s ef-forts is the creation of a permanent memorial that will honorthose lost while also affirming the democratic values thatcame under attack on September 11. The LMDC is fundedthrough Community Development Block Grants from theU.S. Department of Housing and Urban Development.

The Port Authority of New York and New JerseyThe Port Authority of New York and New Jersey managesand maintains the bridges, tunnels, bus terminals, airports,Port Authority Trans-Hudson (PATH) trains, and seaportthat are critical to the bistate region’s trade and transporta-tion capabilities. The Port Authority’s facilities and servicesenable people to make vital connections and businesses togrow. Providing safe and efficient travel is the Port Author-ity’s highest priority, and it is most strongly committed toenhancing the well being of everyone who lives, works, andtravels in the bistate region.

Alliance for Downtown New YorkSince 1995, the Alliance for Downtown New York has beenworking to enhance the quality of life in lower Manhattan.The group aims to provide workers, residents, and visitorswith a clean, safe, and dynamic neighborhood. It managesthe Downtown-Lower Manhattan Business ImprovementDistrict (BID), which serves the area located roughly fromCity Hall to the Battery and from the East River to WestStreet. The Downtown Alliance’s mission is to create andpromote a safe, clean, live/work, totally wired communitythat showcases the nation’s most historic neighborhood andserves as the financial capital of the world for the 21st cen-tury. The Downtown Alliance is striving to make lowerManhattan a wonderful place to live, work, and play by cre-ating a vibrant multiuse neighborhood in which businessescan prosper and the residential community can flourish.

Friends of Community Board 1The Friends of Community Board 1 is a nonprofit organiza-tion whose mission is “helping to create lower Manhattan asthe most dynamic urban community in America throughproactive community planning, government outreach, andimproving quality of life.” Formed in June 2000, it has beeninstrumental in helping lower Manhattan recover from theevents of 9/11. Its activities have included polling down-towners about the rebuilding process, organizing the ProjectGratitude program for police officers and firefighters, andconducting studies on specific neighborhood issues.

4 An Advisory Services Program Report4

THE BLUE RIBBON TEAM AND PROJECT STAFF

CHAIR

Smedes YorkPresidentYork Properties, Inc.Raleigh, North Carolina

TEAM MEMBERS

Ronald A. AltoonFounding PartnerAltoon + Porter Architects, LLPLos Angeles, California

Michael BeyardSenior Fellow and ULI/Martin Bucksbaum Chair

for Retail and Entertainment Development ULI–the Urban Land InstituteWashington, D.C.

Gerard H.W. GroenerManaging DirectorCORIA Nederland RetailUtrecht, The Netherlands

Robert C. LieberManaging DirectorLehman BrothersNew York, New York

Sir Stuart LiptonChairmanStanhope PLCLondon, United Kingdom

Daniel T. McCafferyPresidentMcCaffery Interests, Inc.Chicago, Illinois

Michael McNaughtonVice President, East RegionGeneral Growth PropertiesNatick, Massachusetts

Vittorio RadiceNon-Executive DirectorAbbey National PLCLondon, United Kingdom

Jennifer M. StantonPresidentJMSMatthews, North Carolina

ADVISER TO THE BLUE RIBBON TEAM

Patrick L. PhillipsPresidentEconomics Research AssociatesWashington, D.C.

ULI PROJECT DIRECTORS

Mary Beth CorriganVice President, Advisory Services and Policy Programs

Rachelle LevittExecutive Vice President, Policy and Practice

ULI ON-SITE COORDINATOR

Jason BellPanel Coordinator


An Advisory Services Program Report6

7

Contents

Introduction and Summary of Recommendations 9

Market Potential 13

Planning and Design 17

Implementation 21

Conclusion 25

About the Blue RibbonTeam 27



©PH

OTOS

.COM

New York City is one of the greatest cities in the world. It is defined by many characteristics: its diversity, its economy,its stature as a financial capital, its superlative entertainmentvenues, and retail opportunities that are among the best inthe world. When terrorists struck New York on September11, 2001, the impact was profound. People’s lives were changedforever. Lower Manhattan will never be the same, physicallyor socially.

Today, however, many new projects are being planned forthe redevelopment of the World Trade Center (WTC) siteand other areas of lower Manhattan. One of these projectsinvolves the creation of a retail corridor that will stretchacross lower Manhattan, from river to river. The integra-tion of this retail corridor—which will include the WorldFinancial Center (WFC), the WTC site, Fulton Street, andSouth Street Seaport—into the downtown’s growing andchanging neighborhoods is an important part of the overallredevelopment effort. And most stakeholders agree that newretail development on the WTC site can set the stage for re-tail in all of downtown.

By bringing in experts from around the world to review theplans for the components of the corridor and share their ex-periences and innovative best practices, the Port Authorityof New York and New Jersey, the Lower Manhattan Devel-opment Corporation, Friends of Community Board 1, andthe Alliance for Downtown New York can continue to moveforward to create a holistic retail plan for lower Manhattan.ULI–the Urban Land Institute, sponsored by these groups,convened a Blue Ribbon Team of internationally recognizedretail development experts representing a wide range of dis-ciplines, including planning, development, finance, eco-nomic development, and architecture.

It asked the team to review existing plans, listen to keystakeholders, and draw on their own experiences to makerecommendations concerning the creation of an integratedretail plan for lower Manhattan featuring the WTC site asits largest single component. While this area is unique, de-velopment in other parts of the world provides examples ofwhat this retail corridor can look like. The key is to exploresignificant projects as examples of what can happen and how

such projects can serve as catalysts, as well as to draft princi-ples for retail redevelopment.

The Blue Ribbon Team’s key objectives were to:

n Suggest possible refinements to the retail vision for theWTC site as it relates to serving as a catalyst for retail inall of lower Manhattan, with a focus on creative optionsfor incorporating retail with office development, includingpossible temporary retail, the appropriate retail mix, and“sky lobbies” for office buildings with retail space on theground level.

n Share best practices and learn from successful large-scaleurban retail and mixed-use (office and commercial) rede-velopment projects around the world.

n Create momentum for retail redevelopment on the WTCsite and throughout all of lower Manhattan, including theidentification of creative financing options and incentivesto help underwrite the cost of the infrastructure needed tosupport retail development.

99New York, New York, October 5–8, 2004

Introduction and Summary of Recommendations

n Educate the development community about and encour-age its interest in this world-class project, and solicit in-ternational interest in the retail component of theWTC site.

n Identify key development principles and strategic next steps.

The ULI ProcessThe ULI process was intense, both for the Blue RibbonTeam and for the sponsoring organizations. It began withextensive planning on the part of ULI and the sponsors toensure that the scope of the assignment was well defined andthe team’s charge was stated clearly and concisely. This doesnot mean, however, that the team did not look at other is-sues that it felt it needed to explore in order to be able toclearly and fully answer the sponsors’ questions.

The team was briefed by the sponsors, who presented anoverview of the retail environment in lower Manhattanprior to September 11, 2001, and explained what has beendone to date regarding the redevelopment of the WTC siteand lower Manhattan. The team also heard about publicand private sector activities and the efforts to redeveloplower Manhattan into a “24/7” environment.

Another important part of the process was a walking tourof lower Manhattan, which included existing retail facili-ties and the new development that are taking place. Theteam also visited the WTC site and the rehabilitated Win-ter Garden at the World Financial Center. This tour pro-vided the team with a context in which to frame the spon-sors’ presentations.

In addition, the team and invited guests listened to casestudies from Tokyo (Roppongi Hills), London (Broadgateand Canary Wharf), and Chicago (North Michigan Avenue

and Water Tower Place) to learn how retail uses have beenintegrated into other highly urbanized redeveloping areas.The case studies also provided some interesting new ideasregarding the integration of retail with other commercialand residential development.

The team spent the balance of its time working on its find-ings and recommendations. It developed a set of premisesand a vision to set a context for its recommendations, andthen drafted recommendations that are consistent with thisvision. Finally, the team presented its findings and recom-mendations to the sponsors and invited guests. This reportoutlines the team’s findings and provides a framework ofrecommendations for creating a vibrant retail environmentin lower Manhattan.

The Team’s VisionThe events of 9/11 will be remembered forever. TheWTC site represents the soul of the United States andwill be the destination of millions of people. The retailmarketplace, therefore, needs to be vibrant and welcom-ing, with character and dignity. The WTC site will be agathering point and marketplace not only for lower Man-hattan, but for the entire world. With this in mind, theteam approached its task of providing recommendationsfor retail development and redevelopment with the fol-lowing goals. Retail should:

n Be a key element of mixed-use projects;

n Be unique to New York City as an international market-place; and

n Serve many market niches.

The Team’s PremisesThe team prepared the following set of premises, from whichit developed its findings and recommendations.

n The WTC Memorial will be the most important compo-nent of the redeveloped WTC site. All other develop-ment, including retail, must respect the memorial and allthat it represents.

n All of lower Manhattan must be considered as a wholewhen evaluating the retail opportunities there, not just theWTC site, or Fulton Street, or some other area. For retailto work in any one area, it needs to be planned and rede-veloped in the context of the surrounding areas. For thisreason, the team considered all of lower Manhattan itsstudy area.

n Retail in lower Manhattan—including the former mall atthe World Trade Center—traditionally has been shoe-horned into existing development and built wherever itwould fit. Now, there is a chance to plan retail develop-ment in a more comprehensive manner. Retail should beembraced as an opportunity, not an afterthought.

n Based on the amount of retail space that was in the for-mer mall at the World Trade Center, the team believesthere is a market for 600,000 to more than 1 millionsquare feet of retail space on the WTC site, as well asadditional off-site retail.

n Retail in lower Manhattan has five primary markets:downtown residents; businesspeople who work in thearea’s office buildings and other commercial space; tran-sit users, who pass through the area on their way to andfrom other destinations; tourists, who come to visit theattractions in lower Manhattan, primarily “Ground Zero”


and, when it is completed, the WTC Memorial; and re-gional shoppers, for whom lower Manhattan is their pri-mary destination.

Key RecommendationsThe team developed the following key thoughts and rec-ommendations, which are described in more detail later inthis report:

n Retail should be the leading component of commercial de-velopment. A champion will be needed to make this hap-pen. Most major redevelopment projects occur becausesomeone or some entity passionately wants to see change.The champion will be the voice for retail in lower Man-hattan, and will stay with the redevelopment efforts andsee them through. Typically, a champion for a major re-development project is someone who has credibility in thecommunity and the industry, and can make sure that theappropriate actions are taken to implement the vision.

n High-quality retail should be established quickly, in orderto create a “sense of place.”

n Retail must be unique and exciting. It should take full ad-vantage of the existing streets and the reintroduction ofFulton and Greenwich streets. Successful retail revitaliza-tion projects usually succeed because they take advantageof foot traffic. People will enter retail establishments thatare inviting, attractive to the eye and, most important, ac-cessible. If people need to go looking for retail, they aremore apt to pass it by. They are more likely to make spon-taneous retail stops if the retail is accessible, meaning atstreet level and visible.

n Office lobbies should not dominate the streetscape. Re-tail in New York and other urban areas often is incorpo-rated within office buildings. Although offices provide a

component. People living in the area provide a sense ofcommunity and a market for retail. Residents also meanpeople are on the street after the end of the workday. Theteam acknowledges that this already is beginning to occurin downtown. More people are moving there as more resi-dential development comes on line. In fact, lower Manhat-tan is the fastest-growing residential market in New YorkCity. This trend must continue, and every effort should bemade to encourage additional residential developmentdowntown.

n The extension of Cortlandt Street into the WTC siteshould be developed as a pedestrian passage, in the Euro-pean style, open to the east and west sides of the site.

n Retail development on the WTC site should be phasedand built first, followed by office development. Retail de-velopment does not need to wait for other commercial de-velopment, since there is a market for it now. Waiting forother commercial uses to come on line also runs the riskof shoehorning retail uses into the site rather than think-ing them through strategically.

n A unified redevelopment approach should be created forthe entire WTC site, as well as—if possible—a true jointventure that has control of the entire site. In addition toproviding a champion for the retail component, this willhelp ensure that retail development is controlled in a uni-fied manner, as part of the overall master plan, and is notshoehorned, piecemeal, into the rest of the development.

n Financing options and incentives, as well as public/privatepartnership structures, should be pursued in order to makethe retail space viable and attractive to potential tenants.


©PH

OTOS

.COM

market for the retail, they tend to be more private places.Office lobbies are for the use of office tenants and theirguests, not the general public. The team believes that of-fice lobbies should be elevated above street level or tuckedbehind the retail, to allow more space for retail alongthe streetfront.

n Make better connections between the WFC and BatteryPark City and the WTC site. Currently, the connectionsbetween the WTC site and the WFC and Battery ParkCity are not pedestrian friendly. The many lanes of fast-moving traffic on West Street make it difficult to walk tothe rest of lower Manhattan from the west. The team be-lieves that this needs to be remedied in order to capturethe market on the west side of West Street and to promotepedestrian movement from the redeveloped waterfront tothe WTC site and the rest of lower Manhattan.

n Fulton Street should be allowed to evolve as retail uses atthe WTC site come on line in a parallel and complemen-tary fashion. Although Fulton Street already is lively andviable, the potential exists for some important merchandis-ing upgrades throughout the corridor east of the WTCsite. As new retail is developed at the WTC site, the restof the retail in lower Manhattan will rise to the new stan-dard and evolve to fill voids in the market.

n Additional residential units are needed to continue the re-vitalization of downtown. Every successful, lively down-town, no matter how big or small, has a strong residential


©PH

OTOS

.COM

Looking at the market potential for any site or area includesdefining what is possible and what is needed to make it hap-pen. The Blue Ribbon Team looked at the existing and pro-jected retail market in lower Manhattan and made recom-mendations for maximizing that market.

A key function of retail in the area is to regenerate the fabricof lower Manhattan and create a great marketplace. It isabout more than just square footage or how many squarefeet of retail space the market can support. It is about creat-ing a destination for a variety of customers and attractingthe best retailers to serve those customers. From the infor-mation it received, the team concluded that there is unmetmarket demand and sales capacity in lower Manhattan. Whilethe focus for redevelopment will be on the WTC site, it isimportant to remember that not all new retail space needsto be within the confines of that one site.

Who Is “the Market”?As the Blue Ribbon Team evaluated who would be using theretail in the area, it identified five main market niches: tran-

sit riders, residents, office workers, tourists, and regionalshoppers.

Transit RidersThe transit hub is the area’s largest traffic generator. Ac-cording to the information provided to the team, peoplepassing through this hub on their way to other destinationsmake up a potential market of more than 200,000 shoppersper day. The ultimate goal is to make lower Manhattan re-tail a return destination for them. It is important to focus onwhat is familiar to these shoppers, such as chain stores, tomake them want to come back. The team believes that thetransit hub can be an impetus for the first phase of retail re-development.

ResidentsLower Manhattan is the fastest-growing residential marketin New York City. Residents will help attract new retail tolower Manhattan and strengthen the retail that is alreadythere. As the area continues its evolution into a vibrant,24/7 community, it needs to be thought of as a cohesive,

organic place. Additional retail—specifically retail that servesthe growing affluent young professional market—is neededto attract even more residents to the area. This includesgathering places like a full-service supermarket, a depart-ment store, and restaurants—facilities that the area currentlylacks. Providing these retail opportunities will give residentsan alternative to shopping in midtown Manhattan and otherareas of the city and the region.

Office WorkersAccording to information provided to the team, there aremore than 250,000 daytime employees and 17,500 firmswithin one mile of the WTC site. This is an incrediblemarket, because most workers spend more time during theweek at their job than at home. Retail uses that serve officeworkers tend to be time sensitive; people want to get inand out quickly. There also is a clear relationship betweenoffice development and retail development: retail helpsrent offices. People want to work where there are ameni-ties, including retail.

13

Market Potential

New York, New York, October 5–8, 2004

©PH

OTOS

.COM

Tourists The team was told that a minimum of 5 million tourists an-nually, or 13,700 visitors per day, will come to the WTCMemorial and other amenities at the WTC site. This is ahuge market that will be more culturally diverse and, onaverage, less affluent than the other consumer segments thearea will serve. Coming to the memorial and other portionsof the WTC site will be an important part of the overalllower Manhattan experience. In order to capture this mar-ket, it will be important to establish a “wow” factor, to makethe area inviting, friendly, and walkable.

Regional ShoppersNew York City is a destination for shoppers from through-out the greater metropolitan region. People come from thesuburbs, as well as from other parts of the city itself, to shopin lower Manhattan. As the area’s retail offerings improve,even more people will come there to shop.

Merchandising PrioritiesThe Blue Ribbon Team established some merchandising pri-orities for all of lower Manhattan. These were developedwith the idea that there is a desire to serve the neighbor-hoods, capture the transit rider and office worker market,and provide an alternative to midtown shopping for bothresidents and toursits. These priorities include the following:

n A Supermarket. The area has no full-service supermarketthat offers prepared foods. The presence of this type of su-permarket is one of the key factors that people considerwhen they choose where to live. A convenient, full-servicesupermarket will make the area more attractive to resi-dents, and therefore is needed to draw new residents tothe downtown.

Viability, Concept, and VisionThe Blue Ribbon Team strongly believes that retail—afterthe WTC Memorial—needs to be the lead component ofthe redeveloped WTC site. The team concurs with the as-sumption that demand at the site will support approximately1 million square feet of retail space. Before 9/11, the sitesupported this amount of highly productive retail space,with a significant share of sales volume captured from com-muters, in addition to office workers, tourists, and residents.In the three years since, no significant amount of retailspace has been added to lower Manhattan, and the retailmix found at the WTC before 9/11 has not been relocatedto an alternative site. No replacement retail development—and minimal infill retail development—has occurred.

The amount of retail space as well as the variety and qualityof retail offerings in lower Manhattan have declined since2001. The sales once captured at the WTC site have beendispersed outside of lower Manhattan. The greatest negativeimpact of this situation is that local residents, who now havevery few community retail services, must travel to the sub-urbs or midtown to shop.

With the loss of the WTC’s office tenants—a customer basethat may never be fully regained—the market demand hasshifted. Preliminary estimates, however, indicate that the re-tail sales potential at the site could be even greater than itwas before 9/11, if the increased traffic expected from tour-ists and residents is considered. The residential market hasgrown by several thousand households and is likely to con-tinue to be the underlying engine for the rebirth of lowerManhattan. As much residential space as can be brought tomarket will be absorbed, and residential demand for retailamenities is strong.


©PH

OTOS

.COM

n Department Stores. The area needs both upscale-service,branded stores and general value stores such as discountretailers. Lower Manhattan offers minimal departmentstore choices, and many residents now go to midtown orthe suburbs to do their department store shopping. LowerManhattan can recapture this market by offering addi-tional department stores.

n Restaurants. Downtown needs more formal as well as fam-ily restaurants, which will help attract more residents andtourists to the area. Restaurants also are a factor in attract-ing office workers.

n Lifestyle Stores. Retail establishments specializing in books,music, home décor, sports, electronics, and the like oftenare referred to as “lifestyle stores” because they specializein goods that support various facets of the customer’slifestyle. These stores, like the others listed above, also arecritical to attracting more residents to the downtown.

n Fashion. Stores specializing in apparel, jewelry, accessories,and beauty products are components of a viable commu-nity and are necessary to support residents.

n Entertainment. Museum shops and activities, as well as in-teractive venues such as movie theaters, live theaters, andthe like, help to round out a community and make it livelyand sustainable.

The pilgrimage nature of visits to Ground Zero and theplanned memorial, the addition of museums and theaterspace to development plans, and the presence of existing,stable tourist attractions such as the Statue of Liberty andthe New York Stock Exchange likely will result in a substan-tial net increase in tourist visits. Commuter traffic also is ex-pected to be greater than it was before 9/11, because of im-proved access and train routing and the eventual connectorshuttle to the airport. This, in turn, inevitably will improvethe demand for office space in the immediate vicinity of thesite over the long term.

It is crucial to remember, however, that the design and inte-gration of the retail space with the rest of the site and lowerManhattan will determine its viability. Lack of retail ameni-ties has been a major reason office tenants and residentshave left lower Manhattan. The opportunity now exists toremedy this situation. The team believes that residential andoffice development will be constrained if a critical mass ofviable and sustainable retail space is not developed in lowerManhattan.

The team believes that retail space requirements are themost sensitive of all commercial uses. Certain types of retailrequire particular minimum amounts of space in order towork. The space therefore must be planned carefully. Thatsaid, the project’s ultimate size will be determined by the ex-

perience of its early phases. Success breeds success. If thefirst wave of retail fails because it is improperly executed, at-tracting high-quality tenants and customers for successivephases will be difficult.

The initial phase of retail will set the tone for the entireproject. It must be sustainable and must attract a criticalmass of customers to the area. Sustainable retail is an obliga-tion and a responsibility. It will allow the area to become thecommunity gathering place for lower Manhattan. If retailopens weak, this weakness will be difficult to overcome.

Accessibility and visibility will affect the success of the re-tail tenants and therefore the entire project. This is whyground-level retail that brings life to the streets is key toattracting and maintaining high-quality retail and makinglower Manhattan a destination. Architecture also is an essen-tial component in making the project’s retail accessible andvisible, a place to which people will want to return againand again.

The team believes that an opportunity exists to create aunique, unified shopping destination by connecting streetsand surrounding neighborhoods. The retail space should beconstructed not in isolation, but in a manner that will allow

it to serve all five market segments. It should include ele-ments such as prominent, highly visible space with largefloor plates for showcase retailers and a central gatheringplace for the community.

The team also feels that lower Manhattan should try to at-tract destination retailers that are not already in New York.Lower Manhattan should not become another midtown,with all the same stores and experiences. It needs to com-plement midtown, not compete with it, and should stretchthe city’s merchandising capabilities. To that end, the teamstrongly recommends the development and implementa-tion of a cohesive marketing strategy promoting all of lowerManhattan. The potential exists for this area to be morethan just a $1,000 per-square-foot mall. While there is nodoubt that the retail that was present before 9/11 was eco-nomically viable and important to the economy of lowerManhattan, there is now an opportunity to develop new re-tail that also will be attractive and an important componentof the community.



©PH

OTOS

.COM

How a project is planned and designed to meet the market iscritical to the success of retail. This section discusses theBlue Ribbon Team’s planning and design principles for retailin lower Manhattan. It begins with urban design goals andessential retail elements, then discusses specific recommen-dations for retail on the WTC site and in the surroundingneighborhoods.

Urban Design Goals and EssentialRetail ElementsThe team identified three overarching goals for the urbandesign of the WTC site and surrounding neighborhoods.These goals are as follows:

n Create a sense of urgency for getting retail developmentunderway. The development of the transit station alreadyis moving forward, and retail development should have thesame sense of urgency.

n Maximize connections within the WTC site and to thesurrounding neighborhoods. The team believes, based on

the plans it reviewed, that better efforts at neighborhoodconnections can be made, and suggests that the plans forthe site be reviewed to maximize these connections. Do-ing so will open the site to the public and make its retailmore accessible.

n Promote experimentation with uses and retailers. LowerManhattan is not a run-of-the-mill retail destination, andit should not be developed as such.

The team also focused on the irreducible elements thatmake a retail project successful, all of which need to be in-corporated into the retail redevelopment strategy for lowerManhattan:

n Identity. There must be a “there” there, and people need toknow where the “there” is. As with all destinations, thisshould be clear when one arrives. For example, when peo-ple say they are going to Times Square, everyone auto-matically knows what they are talking about.

n Place Making. The retail needs to have a sense of place.This begins with the public realm.

n Image and Branding. An icon or a family of icons should be

developed for the area’s retail. This will help create the

identity and brand the area.

n Civic Quality. The retail should create a sense of commu-

nity. Promoting the public realm and allowing it to emerge

first will enable the private realm to follow.

n Critical Mass. A critical mass of shoppers and retailers will

be needed to maintain vitality and sustain the retail.

n Continuity. A continuity of uses, including retail, is impor-

tant. Retail must not be set off to the side by itself. It must

be integrated into the overall master plan for the site.

n Integration. Integrating transit and retail components will

provide added convenience for shoppers.

From these goals and essential elements, the team developed

the following planning and design recommendations.


Planning and Design

©PH

OTOS

.COM

Create an Exciting and UniqueUrban MarketplaceThe Blue Ribbon Team believes strongly that lower Man-hattan and the WTC site will become a world-class destina-tion, and that—after the WTC Memorial—retail needs tobe the focus of this destination. A visual icon or a collectionof icons should be developed that will be identified with theretail in the area. Retail needs to aid in the regeneration oflower Manhattan, just as it did on North Michigan Avenuein Chicago and at Santa Monica Place in Santa Monica, Cal-ifornia. The sustaining constituencies that will make thishappen are the five market sectors discussed earlier: officeworkers, residents, tourists, commuters, and regional desti-nation shoppers.

Successful urban retail contains spaces that are inviting andpleasant to be in. People remember these places and want tocome back to them. Downtown retail needs to instill a senseof community and serve as a gathering place. It must bemore than just stores among office buildings. It is importantfor downtown retail to affirm a high quality of life that doesnot exclude anyone. The challenge is to attract retail usesthat will reflect the community’s wants and desires.

The team views the retail component of the WTC site asthe antithesis of a mall. It should be a collection of destina-tions that reflects the market’s needs for food, clothing, andother goods. The team believes there is a waiting market for600,000 to 1 million square feet of retail space that will cre-ate and sustain value in the area. It also believes that retail inthe area will be viable immediately.

Use Retail to Define StreetsWhile the final street and site configuration has not beendetermined, one thing is certain: streets will lead to and

cross through the WTC site. It is critical that these streetsaffirm lower Manhattan as an area in which streets andspaces are well integrated.

As discussed earlier, it is important to create internal conti-nuity on the site that promotes clarity of movement on pri-mary routes and entreats discovery in secondary areas. Toaccomplish this, the Blue Ribbon Team recommends thatoffice lobbies be elevated above the street level.

Placing office lobbies on higher floors enables office ten-ants to take advantage of the enhanced views from theselevels. Office lobbies are much more private than retailspace, and serve only the office tenants and their clients,not the general public. They are already a destination anddo not need to attract people off the street. In addition,more introverted cultural facilities, such as museums andtheaters, also should be located above the ground floor.While small lobbies for this type of facility can be placed onthe ground floor, the large “boxes” that house the facilitiesshould be on upper levels.

It is important to fulfill the public mandate for continuityand liveliness at the street level. History has demonstratedthe lethalness of a singular vision. Consider the existing con-figuration of Chase Manhattan Plaza in lower Manhattan.These spaces are “dead” and, except for bank patrons andoffice workers and their guests—and, particularly, afterworking hours—the area is empty.

To this end, the team believes that it is important to recoverthe streets for people. The WTC site presents an opportu-nity for at least half—or approximately 300,000 square feet—of the prime retail space to be located at and/or abovegrade. The use of streetfront retail should be maximizedwherever possible to promote the continuity of publicspaces.

Extend Retail to Other Elements ofthe WTC SiteThe Blue Ribbon Team believes that approximately four tofive levels of prime retail space, with ancillary retail space onadditional levels, is reasonable and appropriate for the site.Cultural parcels 1 and 2 of the general project plan shouldhave two levels of retail either below, at, and/or above grade,keeping in mind that space will need to be blocked out forvertical circulation and columns. Tower parcels 2, 3, and 4can be integrated with the transit station concourse and pro-vide two levels of retail space either below, at, and/or abovegrade. The amount and location of the retail at tower parcel5 should be determined in a future phase, but plannersshould anticipate at-grade retail at a minimum.

The team believes that it is possible to build the columnstructure for the office towers now, which will allow retailuses to be developed around it in a cohesive manner as afirst phase.

Regenerate Adjacent Parts ofLower ManhattanAs mentioned earlier, the Blue Ribbon Team viewed itsstudy area as all of lower Manhattan. It hopes that the retailcomponent on the WTC site will serve as a catalyst for re-developing additional retail in the rest of lower Manhattan.The team made the following recommendations for specificareas in lower Manhattan:

n Pay attention to neighborhood edges and avoid creatinghard lines that delineate neighborhoods.

n Create different visions for different streets, including Ful-ton and Nassau streets. These areas have a unique vitality


that should be capitalized on, not supplanted. Currently,however, these streets are a collection of retail establish-ments with no unifying design guidelines, facades, orlook. Establishing a vision for these streets can makethem even more attractive and even more of a destina-tion than they are today. The team understands that plansfor these areas exist, and believes that these plans need tobe evaluated and then integrated into the redevelopmentof lower Manhattan.

n Market lower Manhattan retail as a whole, rather thanjust specific portions of it.

n Tailor packages of incentives for each street and eachproject to help ensure the long-term vitality of all ofthese components.

n Think of lower Manhattan as a collection of retail dis-tricts and destinations, not just individual projects.

The team offers the following recommendations for spe-cific corridors in lower Manhattan:

Fulton StreetThe team does not believe that Fulton Street should benarrowed. If it is, service vehicles, piles of snow, and thelike will block through traffic. It may be prudent to cre-ate a special economic development district for FultonStreet that will focus on returning investment in the areato this street.

One potential incentive to revitalize retail on Fulton wouldbe to endorse a policy that no permits can be issued forwork on a portion of a building unless the entire building,including the retail space, is improved. This would includefacade improvements, interior improvements, and so forth.The team also believes that Fulton Street can benefit from

streetscape improvements, such as planters and benches,which will make the street more inviting and pedestrianfriendly.

Greenwich StreetThe team believes that retail along Greenwich Street with-in the WTC site will generate additional retail along other,off-site portions of the street. This retail development willneed to be sensitive to adjacent uses, specifically the WTCMemorial. In addition, Greenwich Street will help restorea north/south connection, which is a key component in thearea’s redeveloping neighborhoods.

Dey StreetThe team does not believe that Dey Street should be a throughstreet. Instead, it should become an entrance only, to boththe east and west sides of the redeveloped WTC site.

Cortlandt StreetThe team envisions the portion of Cortlandt Street that ex-tends into the WTC site as a transparent “passage” in theEuropean sense: pedestrian in nature, perhaps with a glazedand vaulted “roof,” similar to the Galleria in Milan. Theteam does not envision this area as an enclosed mall. Thisportion of Cortlandt Street should open to the east and westsides of the WTC site and provide an entryway to the retailand the transportation network below.

World Financial CenterThe team saw the possibility of creating an “anchor” withinthe WFC. There is enough square footage in the existingretail portion of the complex to accomplish this, and doingso will make this area one of the retail icons and destina-tions in lower Manhattan. While the team understands thatthis may involve major reprogramming of the site, it be-lieves that this option is worth exploring. The team alsofeels strongly that the WFC and Battery Park City must bebetter connected to the redeveloped WTC site and the restof lower Manhattan. Implementing best practices in urbandesign, such as creating retail-friendly concourses under andover West Street or submerging West Street, can make thearea more pedestrian friendly and less treacherous to cross.This will help activate retail and restaurants at grade, andjoin the east and west sides of West Street into a cohesivecorridor.

South of LibertyTower parcel 5 offers an opportunity for mixed-use develop-ment south of the WTC site, including hotel and residentialuses that will help continue the building of the critical massneeded to support additional retail. This also will help createa continuum of development southward from the WTC site.

The team supports the efforts that are underway to rede-velop the properties at Church and Liberty streets. Theplanned improvement in this area, including the Greek Or-thodox church and the two public parks, will attract morepublic uses and create vitality at that spot.


The Blue Ribbon Team evaluated strategies for how tomove forward with retail redevelopment in lower Manhat-tan. It divided its findings and recommendations into threemain areas: issues that are creating a sense of urgency formoving ahead with retail development on the WTC siteand, ultimately, retail redevelopment elsewhere in lowerManhattan; impediments to addressing these urgent issues;and recommended action items for the sponsors and otherappropriate organizations to take.

UrgencyThe team is impressed with the progress made to date inlower Manhattan in the relatively short time since the eventsof September 11, 2001. However, the team also believes thatcertain aspects of development and redevelopment in lowerManhattan create a sense of urgency in moving forward withthe retail redevelopment. It is important to capitalize onthese urgent items:

n Transportation has been a major focus of redevelopmentefforts to date, and while great progress has been made,

getting people to and from lower Manhattan remains animportant element of the redevelopment process. Theteam supports the efforts to date to promote the one-seat-ride connection from lower Manhattan to John F.Kennedy International Airport via the Long Island Rail-road (LIRR) and feels it is critical to the success of lowerManhattan.

n Measures need to be taken to prevent further deteriorationof downtown office and retail buildings as people continueto move elsewhere.

n Existing retail and service offerings are insufficient toserve the growing residential and office populations.

n Downtown needs to be made more livable, both for resi-dents and for commercial tenants. It must become a placewhere people want to work and live. Housing is a bur-geoning market in the downtown. The team recognizesthat an incredible amount of residential development isoccurring there and believes that this will continue, creat-ing an even stronger market for retail.

n It is important to include West Street and Battery ParkCity in the overall planning and revitalization of down-town and to connect these areas to downtown. Doing sowill help create a sense of place that encompasses all oflower Manhattan.

The team believes that placing these issues at the forefrontof the implementation strategy will enable the sponsors andother organizations to maintain a sense of urgency, makeprogress, and execute a holistic, nonsequential approach toretail redevelopment. Much has been done to date, and tak-ing a more holistic approach will help move the redevelop-ment effort forward.

ImpedimentsThe Blue Ribbon Team is well aware that retail redevelop-ment in lower Manhattan is not without impediments thatmust be overcome. Among these are the following:

n Developing a mixed-use project is more challenging thandeveloping a single-use project, and the planning and fi-


Implementation

nancing processes can be particularly difficult. Because thereal estate market cycles for different uses are not alwaysthe same—for example, when the retail market is hot, themarket for housing or offices may be cool—mixed-useprojects are continually trying to address multiple devel-opment cycles.

n Although the office component currently is the majordriver of development on the WTC site, because officedevelopment is soft due to current market conditions, itmay not be the best use to be driving the redevelopmenteffort.

n Everyone the team encountered agrees that the redevelop-ment of the WTC site is a critical component in the con-tinuing regeneration of lower Manhattan. The team wasencouraged by the growing spirit of cooperation amongstakeholders to move the project forward. While it maynot be possible to meet everyone’s needs and desires, whenit comes to the retail portion of the WTC site as well asthe retail redevelopment of all of lower Manhattan, thesedifferences need to be rectified.

n There is currently a trend toward developing office spacefor nondifferentiated market uses. Trying to break out ofthis mold offers an opportunity to differentiate the lowerManhattan office environment from that in the rest ofNew York City and the region. Being more flexible inuses, such as retail, also will help attract office tenants.

n New market segments, especially residential ones, must beattracted to downtown. This is beginning to happen andshould be encouraged.

n West Street is not integrated at present and needs to bemodified to bring the west side—the WFC and BatteryPark City—back into the downtown.

ActionsThe team has identified the following action items as neces-sary for moving forward and implementing a successful, uni-fied retail vision for lower Manhattan:

n Unify the vision and the approach to redevelopment. Atrue joint venture with a shared economic interest and vi-sion is needed for the WTC site. This is how most large-scale, mixed-use urban projects are accomplished. A singletimeline, a single design concept, and a single decisionpoint are common themes in all successful urban retailprojects. A unified approach will provide a commonality ofinterest and allow office and retail to work together. Eachbuilding should not control its own retail component.

n Find a champion. This project needs a retail champion ora mixed-use champion with retail knowledge to work withthe Port Authority and others. Such an individual will helpdefine the desired retail program and establish a branding,promotion, and marketing campaign. He or she also willprovide the retail component with an additional voice,with the Port Authority and others working in lower Man-hattan, that can be heard in concert with the office, trans-portation, and cultural “voices.” Initiating a request forproposals (RFP) or a request for qualifications (RFQ)sooner rather than later will help identify this champion.

n The joint venture should set the development program todirect architects. This will allow for consistent designstandards that work with retail and other uses and accom-plish the project’s objectives. It also will help to create aretail plan that will attract the best tenants.

n Establish a vision, target markets, and retail options. Thisis necessary to attract high-quality retailers. The more in-formation and certainty provided to prospective tenants,the more likely the desired retail tenants will be to comedowntown. This is why it is crucial that retail be plannedand programmed at the beginning, rather than as an after-thought. It is important to decide who should be broughtdowntown, when they should be brought in, and wherethey should be located. This is all part of the vision andmarketing effort.

n Look at the development plans holistically, with majoruses as the drivers. Transportation is a current driver, andretail also will become a critical driver of the overall devel-opment of the WTC site and downtown. Together, theseuses need to be incorporated into the planning and imple-mentation process.

n Depress West Street to help integrate Battery Park Cityand the WFC with the WTC site and the rest of lowerManhattan. This will help to unify the east and west sidesof West Street. West Street’s current condition as a majorhighway is an impediment to pedestrians.

n Avoid temporary retail. It is important to do the WTCproject right, and the team believes that putting in tempo-rary retail is not in the best interest of retail developmenton the WTC site and downtown. Temporary retail sendsthe wrong message to high-quality retailers. It is better toget the infrastructure in place and begin to attract the typeof retailers desired now. This also will allow other uses to


©PH

OTOS

.COM

plan around retail rather than vice versa. The first stepshould be to redevelop the underground retail now.

n Attribute land and infrastructure costs to specific uses, toallow a comprehensive financing plan.

n Consider allowing hotels and other uses on the WTC site.This will help expedite development and make the area atruly exciting destination, a place where people will wantto come and stay.

n Use public and private financing. The team believes thatthis is a great project that can be supported by private aswell as public funding, and that these options need to beexplored immediately to help fund retail development,both short term and long term. Public funding options in-clude PILOT (payment in lieu of taxes) programs to helpcarry infrastructure costs, liberty bonds, and tax incrementfinancing (TIF), if legislative changes can be put in placeto allow it.

n Construct the maximum amount of office space possiblenow, with the Port Authority and the state, city, and fed-eral governments as tenants. These tenants will help sup-port the office as well as the retail development. They alsowill provide a customer base for the retail.

The team believes that now is the time to be thinking aboutthe retail component of the redevelopment of the WTCsite, which will have a major impact on redevelopmentthroughout lower Manhattan.

23New York, New York, October 5–8, 2004

The Blue Ribbon Team knows that it is easy for it to comein and make recommendations on the redevelopment oflower Manhattan when it has not had to live through thepost-9/11 planning process. Yet the recommendations in thisreport are based on the team members’ best professionaljudgment and experiences in other urban retail environ-ments and redevelopment efforts. They each see a greatopportunity and appreciate what it will take to redevelopdowntown retail in lower Manhattan. The keys to successinclude a unified retail development plan for the WTC sitethat will provide a catalyst for retail redevelopment through-out lower Manhattan; a unified vision and theme for mar-keting that will attract the right retailers to serve all of thedowntown markets; efforts to encourage a mix of uses, both

on the WTC site and in the surrounding areas; plans to getretail development underway immediately and allow it tobe a major driver, bringing people to the street and allowingmore private uses to be elevated above the street level; and,most importantly, plans and implementation efforts that willcarry out all redevelopment efforts with respect for the WTCMemorial and the memory of the events that occurred inlower Manhattan.

The team heard the theme of “restore, remember, and re-new” expressed several times. It hopes that its recommenda-tions are implemented in the spirit of this theme.


Conclusion


About the Blue Ribbon Team

Smedes YorkChairRaleigh, North Carolina

A Raleigh native, York is president of York Properties, Inc.,and chairman of the boards of two related companies, YorkSimpson Underwood and McDonald-York Construction.He also serves on the board of SCANA, a major publiccorporation.

York has spent his professional career in real estate andconstruction. He has served in a leadership capacity in manyorganizations, including past chairman of the North Caro-lina Citizens for Business and Industry, the Greater RaleighChamber of Commerce, the Urban Land Institute, andthe North Carolina State University trustees. He currentlyserves on the board of directors and executive committee ofthe Research Triangle Park Foundation, the Triangle UnitedWay, and the YMCA of the Triangle.

From 1964 to 1966, York served as a lieutenant in the U.S.Army Corps of Engineers, receiving an Army Commen-dation medal in 1966. He also spent time in elective office

in Raleigh, as city councilman representing District Efrom 1977 to 1979, and as mayor for two terms, from 1979to 1983.

Ronald A. AltoonLos Angeles, California

Altoon is a founding partner of Altoon + Porter Architects,LLP (A+P). For 20 years, he has provided the firm’s overalldesign leadership in master planning, urban design, architec-ture, and interior architecture on projects worldwide. Hisprojects have earned more than 75 awards for design excel-lence, including three Progressive Architecture design awardsand 14 awards from the International Council of ShoppingCenters. He authored the books International Shopping Cen-ter Architecture; Altoon + Porter Architects, Context and Con-science; and Designing the World’s Best Retail Centers. Altoonhas lectured at universities throughout the United States andin China on contextual design, disaster reconstruction plan-ning, leadership, and practice. He also lectures internation-ally on the real estate design and development process forthe real estate industry.

Altoon has led A+P into a global practice, and is responsi-ble for complex master planning and design on projectsthroughout Asia, Australia, the Middle East, and in west-ern, central, and eastern Europe. He currently is involvedin the design of several mixed-use projects—including re-tail, hotel, office, residential, entertainment, dining, tran-sit, and recreational elements—in Utrecht, Glasgow, Mos-cow, Toulouse, Reims, Guangzhou, Bangkok, Auckland, andMelbourne.

Altoon’s domestic retail portfolio contains projects com-pleted for most of the major U.S. retail developers, whichinclude urban infill, historic adaptive use, transit-related,lifestyle, and entertainment elements, as well as leading-edgeelectronic concepts. One recently completed project, Fash-ion Show on the Strip in Las Vegas, has transformed the useof electronic media in retailing. Altoon currently is involvedin a four-block urban infill project in Honolulu; a sustain-able, green building design project near San Francisco Inter-national Airport; and a 12-block new downtown project inRancho Cucamonga, which redeploys 19th-century valuesfor a Route 66 city.

He is a former national president of the American Instituteof Architects, is a member of council of the InternationalUnion of Architects (UIA), is on the U.S. General ServicesAdministration National Register of Peer Professionals, andis a full member of the Urban Land Institute.

Michael BeyardWashington, D.C.

Beyard is an urban planner and economist with more than20 years’ experience in the related fields of real estate devel-opment, land use planning, and economic development. Hisexperiences in the United States and Europe have been fo-cused on commercial and retail development, shopping cen-ters, e-commerce, location-based entertainment, and down-town revitalization.

Beyard is a ULI senior fellow and the ULI/Martin Bucks-baum chair for retail and entertainment development. He isthe author/project director of numerous ULI books, includ-ing Developing Urban Entertainment Centers, Shopping CenterDevelopment Handbook, the Dollars & Cents of Shopping Cen-ters series, Value by Design, Developing Power Centers, Down-town Development Handbook, The Retailing Revolution, TenPrinciples for Reinventing America’s Suburban Strips, and Busi-ness and Industrial Park Development Handbook.

He created and directs ULI’s International Conference onUrban Entertainment Development and its technology andretail real estate forum. He also created ULI on the Future,the Institute’s annual publication devoted to emerging landuse and development trends and issues. Beyard is a featuredspeaker in the United States, Europe, and South America onretail, entertainment, and downtown development issues,and is widely quoted in the national and international media.

Gerard H.W. GroenerUtrecht, The Netherlands

Currently managing director of CORIO Nederland Retail,Groener has more than 17 years of experience in real estatedevelopment and asset management. He previously was adeveloper with Van Wijnen. Groener began his career in1985 with Akzo, where he served in several positions untilbecoming acquisitions manager for the Akzo pension fund.

Groener is a member of the Netherlands council of theInternational Council of Shopping Centers and the Nether-lands District Council of ULI–the Urban Land Institute.He has earned a degree in engineering and a master of realestate (MRE).

Robert C. LieberNew York, New York

Lieber is responsible for coordinating Lehman Brothers’sglobal real estate investment banking practice. LehmanBrothers is one of the leading arrangers and providers ofcapital to the commercial real estate industry through itsbanking, fixed-income, equity, and private equity businesses.During the past four years, the firm has been involved inmore than $125 billion of transactions in both the UnitedStates and Europe. It was awarded Institutional Investor mag-azine’s “Deal of the Year” award for its role in the sale ofEmbarcadero Center to Boston Properties in 1998 and theacquisition and institutional syndication of the John Han-cock Financial Center in 2003.

Lieber has been with Lehman Brothers for 20 years andleads a group of more than 40 professionals responsible foradvisory and origination transactions, including public and

private equity placements, mergers and acquisitions, assetsales, and secured and unsecured debt underwritings.

Lieber currently serves on the executive committee of theZell/Lurie Real Estate Center at the Wharton School of theUniversity of Pennsylvania, where he also is chairman of theplacement committee. He is chairman of ULI’s Urban De-velopment/Mixed-Use Council, Blue Flight, is a member ofthe New York University (NYU) Real Estate Center’s advi-sory board, and acted as adjunct professor at Columbia Uni-versity, where he taught real estate capital markets to second-year business school students.

Sir Stuart LiptonLondon, United Kingdom

Lipton has been a commercial developer since the late1960s. As chairman of Stanhope PLC, he has developedmore than 12 million square feet in more than 40 projects,including Broadgate in the City of London, Stockley Parkat Heathrow, Chiswick Park in London, and the 1 million-square-foot Treasury Building, Whitehall, London.

Lipton’s new projects include a series of projects aroundLondon focusing on mixed-use, high-density developmentaround transit nodes. A key component of these projects—which include Bracknell Town Centre, Stevenage TownCentre, and Stratford in East London—is the use of publicspace and regional shopping centers.

Lipton recently retired as chairman of the Commission forArchitecture and the Built Environment, an organizationrepresenting the U.K. government on place making, parks,and new buildings.


Daniel T. McCafferyChicago, Illinois

McCaffery is the founder and president of McCaffery In-terests, Inc., a nationally recognized leader in urban devel-opment and renewal projects, where he maintains overallresponsibility for the company’s executive management,strategic direction, and leadership. Other specific respon-sibilities include the creation of new business and the en-hancement and expansion of tenant and financial partnerrelationships.

McCaffery has more than 20 years’ experience in the real es-tate industry and has led the development of more than $1.5billion of mixed-use urban projects. In 1997, McCaffery In-terests formed a partnership with City Center Retail Trust, a private real estate development trust owned by SecurityCapital Group. CCR McCaffery Developments, L.P., is astrategic alliance formed to acquire, develop, redevelop, andmanage real estate opportunities.

Before founding McCaffery Interests in 1991, McCafferywas a senior vice president for BCE Development, Inc.,where he was responsible for the development of the firm’s$1.7 billion in real estate holdings. Prior to that, he held asuccession of senior positions with Oxford Properties, Inc.,including director of leasing for western Canada, vice presi-dent of development in Minneapolis, and senior vice presi-dent for the eastern United States.

Michael McNaughtonNatick, Massachusetts

McNaughton joined General Growth Properties (GGP) inJanuary 2001 as vice president for the firm’s east region,

which consists of 35 regional mall properties totaling nearly34 million square feet. He is based in the company’s north-east regional office.

Prior to joining GGP, McNaughton was a partner and sen-ior vice president of Coro Realty Advisors, LLC, a privatelyheld, Atlanta-based investment advisory, brokerage, and re-development firm. He was retained by clients such as Fed-eral Realty Investment Trust, Madison Marquette, JPI,Archstone, and GGP for various consulting assignments.McNaughton also consulted on numerous municipal revi-talization and downtown redevelopment initiatives in thesoutheast. His brokerage representation clients includedPublix Super Markets, CVS, AMC Theatres, the ContainerStore, Smith & Hawken, Chico’s, and Storehouse, Inc.

McNaughton holds the Building Owners and Managers As-sociation (BOMA) real property administrator (RPA) des-ignation, the International Council of Shopping Centers(ICSC) certified leasing specialist (CLS) designation, and theCCIM Institute’s certified commercial investment managerdesignation, and was a charter member of the National Asso-ciation of Industrial and Office Properties (NAIOP) “MixedUse Development” national forum from 2000 to 2002.

Vittorio RadiceLondon, United Kingdom

The son of a furniture retailer, Radice, who grew up nearLake Como, surprised himself and his family by studyingagriculture at Milan University before doing his militaryservice. After leaving the army, he joined Associated Mer-chandising Corporation, one of the largest global buyingorganizations. By the age of 30, he was was responsible fordeveloping ranges and sourcing furniture and home furnish-ings in more than 20 countries.

In 1990, Radice joined Habitat International (then part ofthe Storehouse group) as buying director to set up a centralpurchasing operation. He was appointed managing directorof Habitat UK in 1992, shortly before the company was soldto IKEA, and set about transforming an ailing business withlosses of £7 million into a company twice the size with prof-its of more than £12 million. Radice continued to build onthis success at Habitat until he was hired by Selfridges as man-aging director in 1996. In this role, he transformed whatwas a “comfy old cardigan” of a store into the “big sexygiant” that it is today. In 1998, Radice led the successful sep-aration of Selfridges from the Sears conglomerate. As salesand profits continued to increase, the firm’s market valuedoubled in four years. The company was taken private againin July 2003.

In March 2003, Radice joined Marks & Spencer to set up anew chain of stores dedicated to home furnishings. Immedi-ately after the February 2004 opening of the pilot store,Lifestore, in Newcastle, Radice’s role was expanded to in-clude responsibility for all areas of merchandising (excludingfood) and store design and development. This new role wasshort lived, however. At the end of May 2004, following thewell-publicized tentative takeover of Marks & Spencer byPhilip Green, a new chairman and chief executive were ap-pointed, and new strategies were announced. Radice conse-quently left the company on mutual agreement at the begin-ning of June 2004. He is a non-executive director of AbbeyNational PLC and Shoppers’ Stop India.

Jennifer M. StantonMatthews, North Carolina

A native New Yorker, Stanton heads JMS, a national real es-tate services firm based in Charlotte, North Carolina, where


she also serves as an associate professor of business at John-son & Wales University. As president of JMS, Stanton pro-vides site selection, marketing, and concept planning serv-ices for real estate investors, developers, public sectoragencies, and retailers. She has more than 20 years of expe-rience planning, merchandising, repositioning, and market-ing shopping centers throughout the United States. Herfirm helps national, regional, and local retailers craft siteselection strategies and make profitable real estate decisions.In addition, JMS provides corporate relocation research andcreates marketing presentations for economic developmentprograms.

Stanton serves on the executive board of ULI Charlotte andhas contributed to ULI Technical Advisory Panels for LosAngeles and Key West. Formerly director of market plan-ning and advisory services for Faison, Stanton also hasserved as vice president of research and market planningfor Trammell Crow and director of strategic planning andmarket research for a joint venture sponsored by GE Invest-ment Corporation.

Patrick L. PhillipsAdviser to the Blue Ribbon TeamWashington, D.C.

Phillips coordinates all aspects of Economics Research Asso-ciates’s (ERA’s) organization, strategy, business development,and service delivery. After serving as managing director ofERA’s Washington, D.C., regional office since 1993, he wasnamed president of the firm in January 2000.

Phillips has 20 years of experience in the economic analysisof real estate and land use issues. His consulting practicefocuses on economic and feasibility analysis, strategic plan-ning, and transaction-related services for real estate invest-ors and developers, public agencies, financial institutions,universities, and nonprofit organizations. His work has in-volved all major categories of urban land use, for such cli-ents as the New York City Economic Development Corpo-ration, the National Academy of Sciences, Hines, Samsung,Teachers Insurance and Annuity Association (TIAA), Alcoa,the University of Cincinnati, Forest City Enterprises, theCoca-Cola Company, the Massachusetts Port Authority(MassPort), and numerous public agencies and nonprofitorganizations.

A recent focus of Phillips’s work is the market, economic,and financial aspects of a new generation of downtown,visitor-oriented projects that include housing, retail, sports,entertainment, and other uses. Notable recent projects onwhich he has consulted include Peabody Place in Memphis,the Banks in Cincinnati, Atlantic Station and Coca-ColaPark in Atlanta, and the Southeast Federal Center in Wash-ington, D.C. He helped the J.C. Nichols Company andHighwoods Properties successfully structure a public/privatefinancing approach for the expansion and repositioning ofCountry Club Plaza, one of the nation’s most successful and

influential pedestrian-oriented, mixed-use districts. Phillipshas advised numerous public sector clients on issues relatedto public/private partnerships for economic development.His practice has concentrated on business development andretention, and the revitalization of historic buildings, down-town areas, waterfronts, and neighborhood commercial dis-tricts. He is an expert in creative financing strategies and hasanalyzed tax-increment financing approaches in New YorkCity, Houston, Washington, D.C., and Atlanta.

Phillips is a frequent speaker on urban development issues,and is the author or coauthor of eight books and numerousarticles. He is a trustee of the Urban Land Institute and anactive member of ULI’s Mixed-Use Council. He also hastaught at Harvard University’s Graduate School of Designand has served as adjunct professor at the Berman Real Es-tate Institute at Johns Hopkins University, where he nowserves on the advisory board.


AN ADVISORY SERVICES PROGRAM REPORT Lower Manhattan...

Documents

Transcript of AN ADVISORY SERVICES PROGRAM REPORT Lower Manhattan...