$85M Harlem Center development to revitalize local economy.

Governor George E. Pataki has announced that State property located at 125th Street and Lenox Avenue will be developed into "Harlem Center," an $85 million retail office and hotel complex that is expected to create 825 permanent full-time jobs in the community and more than 2,100 construction jobs. Harlem Center is being developed by Forest City Ratner and Abyssinian Development Corporation.

"Today we celebrate the continued economic resurgence of the Harlem community," Governor Pataki said. "Harlem Center is another tremendous project that will create jobs, investment and confidence in one of New York's most storied neighborhoods. Together, through private and public investment, and with the help and support of community members, we are restoring Harlem to its rightful place as one of America's most unique and vibrant communities. Harlem Center will continue the economic renewal that this community is experiencing with projects such as 125th Street Pathmark, East River Plaza and Harlem USA."

"I want to thank Forest City Ratner and its community-based co-developer, Abyssinian Development Corporation, for their vision and commitment to Harlem's second renaissance," the Governor added.

The Harlem Center project includes the development of a retail, office and hotel complex at 105 West 125th Street and Lenox Avenue. The project will be built on State-owned property adjacent to the Adam Clayton Powell, Jr. State Office Building that is currently a parking lot.

The first phase of the project will consist of a $30 million, 110,000 square-foot retail center on three levels. Tenant commitments have been secured from The Gap, Conway and CVS Pharmacy for a total of 80,000 square feet, allowing construction to begin. Several other national retailers have expressed to the developer their interest in the remaining 30,000 square feet. Development of this phase, which will create an estimated 365 new full-time jobs and 760 construction jobs, also will include building the support structure for Phase Two. Ground-breaking for phase one is expected to take place in Spring 2000.

Phase Two, expected to create 460 jobs and 1,400 construction jobs, will consist of approximately 100,000 square feet of office space and a 150-room, 100,000 square-foot hotel with conference and banquet facilities. The office and hotel components will cost approximately $55 million, for which financing and lease agreements are currently being negotiated.

Bruce Ratner, president of Forest City Ratner Companies, said "Forest City Ratner Companies is delighted to be a part of this exciting new venture. We are extremely pleased to work with Empire State Development Corporation and the Abyssinian Development Corporation toward the success of a project that will have a tremendously positive impact on the future of Harlem. Harlem Center will be a source of much-needed jobs, and a hub of economic activity helping Harlem to each its full, dynamic potential. And all of us at Forest City Ratner Companies will be upholding our longstanding commitment that every neighborhood in New York share in this city's prosperity. Forest City Ratner Companies is proud to be part of the continuing resurgence of a community that is indispensable to our city and our nation."

Karen Phillips, president of Abyssinian Development Corporation, said "This project represents another opportunity to create hundreds of jobs for local residents and have local equity participation in the economic benefits from new retail and commercial activity."

Congressman Charles Rangel said, "I am pleased to see that the site that was once the home of the Harlem International Trade Center is finally being developed in an effort to create jobs and to join in the evolution taking place in the community lead by the Apollo Theatre."

Once completed, Harlem Center will be the second largest project undertaken in the Empowerment Zone, which is a 10-year, $300 million program to stimulate economic growth in severely distressed areas. The program seeks to stimulate economic growth through a variety of financial incentives designed to attract new private investment. New York State has contributed $100 million to match the federal and New York City contributions to the program.

Charles A. Gargano, chairman of Empire State Development, said "It is innovative and creative when the public and private sector can work together to pool their resources to undertake a major new development. Harlem Center is another initiative which builds upon Governor Pataki's commitment to the revitalization of Harlem. The momentum already created by projects such as East River Plaza and the 125th Street Pathmark to stabilize the community and create jobs and opportunity for Harlem will continue as Harlem Center rises on 125th Street."