Legislation Makes Way for Two New Schools and $263 Million in New Investment
State Legislature passes, Governor signs bill introduced by Assemblyman Bing
New York - A $263 million mixed-use project, which includes a new and expanded
Public School 59 and a new High School of Art and Design on Second Avenue between 57th and 56th
Streets in Midtown Manhattan, took a major step forward as the result of legislation sponsored by
Senator Liz Krueger and Assemblyman Jonathan Bing (S.2967A /A.1569A).
Passed by the legislature and signed into law by Governor David Paterson on July 23, 2009, the new
statute (Chapter 234 of the laws of 2009) will allow the developer to sell units as condominiums
while leasing the site from the City. The city's Educational Construction Fund (ECF), an affiliate
of the Department of Education, will lease the site to the World Wide Group, which will build the
schools as well as 450 rental and condominium units and 110,000 square feet of retail space.
"Through this legislation, we are ensuring the construction of two new schools, the creation of
several hundred units of housing and an infusion of funds to city and state coffers," said
Assemblyman Jonathan Bing. "This is a real win for the community, students who will attend the
schools and governments that need the revenue."
The Educational Construction Fund selected The World-Wide Group to develop the1.5-acre, city-owned
property at 57th Street and Second Avenue in Manhattan (the site of P.S. 59 and High School of Art
and Design) following a competitive process. The World-Wide Group will create a 1 million
square-foot, mixed-use facility at the site. As a result of the project, a new school - the first
built in New York City according to "green" standards -- was built on East 63rd Street to house
PS 59 until the permanent school is built.
Created in 1967, New York City Educational Construction Fund (ECF) - a financing and development
entity of the Department of Education - generates safe, secure learning environments by teaming with
the private sector to develop mixed-use real estate projects featuring new school facilities. This
partnership will generate a combined total of 2600 seats for students at the three facilities, an
increase of 800 seats.
The World-Wide Group is leasing the site from the Educational Construction Fund (ECF) for a 75-year
period. The developer will make annual lease and PILOT (Payment In Lieu Of Tax) payments to the ECF.
The payments will cover the cost of the new schools.
"The World Wide Group has a long and successful record of innovative ventures and we are pleased to
have the opportunity to work with the City administration on a project that will vastly improve the
quality of the educational experience through the creation of three new schools," said David
Lowenfeld, principal of The World-Wide Group. "This project is a win for all parties involved,
delivering three schools while at the same time enhancing 57th Street's long-term viability as a
residential and retail center."
The development will take place in two phases. Phase I, a three-year period, includes the
development and construction of the two new schools and 35,000 square feet of retail space. Whole
Foods has signed a lease and will anchor the retail component in this phase.
Phase II involves the design and construction of a new, mixed-use portion that features
approximately 450 for-sale and rental residential units and 82,000 square feet of retail space.
805 on site construction jobs will be created annually over six years of construction; once
complete, the project will generate 384 permanent jobs, mostly in retail.