A triple-play for Times Square! Disney, Tussaud's & AMC all commit.

In what amounted to a spectacular triple-play for the re-development of the Times Square area, city, state and corporate officials descended last week on "the Crossroads of the Word" to announce major reconstruction commitments to the area.

Following a $34 million renovation over the next two years, New York's historic New Amsterdam Theatre, located on the south side of 42nd Street between Seventh and Eighth Avenues, will be the home for Walt Disney Theatrical Productions and serve as the venue for Broadway quality theatrical entertainment produced by Disney and others. Renovations are expected to begin in September.

Under the agreement, announced last Thursday by Governor George E. Pataki and Mayor Rudolph W. Giuliani, Disney Development Company will restore the now deteriorated theatre as part of a major redevelopment of 42nd Street. Pataki and Giuliani also announced that Tussaud's Group - which operates the famous wax museum - and AMC, which will build a 25-screen theatre, will be anchor tenants in a large retail and entertainment complex within the 42nd Street area.

In a separate announcement earlier in the week, Toronto-based Livent Inc. announced a memorandum of understanding regarding a long-term lease of two other historic Broadway theaters, the Lyric and the Apollo (also known as the Academy).

Disney has also signed a letter of intent with Times Square Center Associates to open a Disney Store on the corner of 42nd Street and Seventh Avenue, adjacent to the New Amsterdam.

The decision by Disney and the announcement of over $150 million in other retail and entertainment development moves 42nd Street across another threshold toward its restoration as the premier tourist attraction and entertainment center in the world.

"With this critical phase in place, the dream we all share to keep 42nd Street a shining crossroads of the world will become a reality," Governor Pataki said. "It has proven once again that New York State is committed to working with business to promote economic growth, investment and to create new jobs. This will be a legacy for future generations of New Yorkers and reaffirms 42nd Street's legendary status as the world capital of theater and entertainment."

"After 25 years of trying, and after rejuvenating the City's commitment to 42nd Street, what we are seeing, finally, is the beginning of a dramatic success story," added Mayor Giuliani. "We are moving ever closer to a new and glorious era for 42nd Street."

The 42nd Street Development Project is projected to produce 49,000 permanent jobs and between $330 million and $355 million in annual tax revenues for the City and State.

Returning New Amsterdam to Glory

Built in 1903, the New Amsterdam Theatre has long been regarded as the crown jewel of New York's rich theatrical background. Since the beginning of the vaudeville era, the theatre was considered the most majestic on 42nd Street, home to the Ziegfeld Follies and many of the early productions of the legitimate theatre in America.

From the friezes in the lobby to the ornately-sculpted staircases, the New Amsterdam set the standard of architectural elegance among the other great theatrical palaces across the country. As much of the original New Amsterdam Theatre architecture, including period artwork, will be preserved as is possible, in keeping with current building and safety standards.

Michael D. Eisner, chairman and chief executive officer of The Walt Disney Company, said "Disney has always had close ties to New York City, starting with Mickey Mouse's debut at the Colony Theatre - now the Broadway Theatre - in 1928. Having grown up in New York, I am personally thrilled that we are a part of the re-development of 42nd Street. New York is the center of the theater world and the New Amsterdam Theatre is at the historical center of New York Theatre."

Disney first entered legitimate theatre with the Broadway musical Beauty and the Beast. It opened to a full house at New York City's Palace Theatre on April 18, 1994, and set several attendance records. It has since opened in Los Angeles and Melbourne, Australia, where it has played before packed houses.

Walt Disney Theatrical Productions plans to launch one new Broadway show each year beginning in 1997.

The Disney Store is one of the most successful specialty retailers. It currently has 395 stores and plans to continue its expansion worldwide.

AMC to Build 25-Screen Theatre

AMC Entertainment Inc. (AMC) announced they have reached an agreement to build a 25-screen theatre complex as part of the city's Times Square revitalization project. The AMC 42nd Street 25 will be New York City's largest megaplex theatre.

"It is very satisfying to bring several years of effort to fruition with this agreement. We are thrilled to be part of the Empire State Urban Development Corporation's and the New York City Economic Development Corporation's urban renewal effort," said Earl C. Voelker, senior vice president, AMC Business Development. "AMC has embarked on a quest to meet the demands of today's movie-goers, and our new theatre complex, with a number of innovative design features, will change the way New York's movie-goers think about the viewing experience."

The 25-screen, 5,000-seat theatre complex will occupy 125,000 square feet on 42nd Street between Seventh and Eighth Avenues near Times Square. To create a motion picture-going experience that is second to none, the auditoriums will be equipped with AMC's exclusive High Impact Theatre System (HITS) including Toms compound curved wall-to-wall screens for unique clarity and brilliance, and will feature Sony Dynamic Digital Sound (SD-DS) digital film playback units. The auditoriums will also feature AMC's innovative oversized, high-backed seats with retractable cupholder armrests for "cozying-up" in a loveseat-style seat. The theatre's stadium-style seating, with each row 18 inches above the one in front of it, insures that all viewers have an unobstructed view of the wall-to-wall screens, while providing viewers with six inches more leg room than the industry standard.

With its high screen count, large seating capacity and varied theatre size, the AMC 42nd Street 25 will be able to feature a wider variety of films, including more specialty and international films, and longer showings of top movies. This combination of film and facility will constitute the apex of motion picture entertainment in New York.

Madame Tussaud's Comes to 42nd

Madame Tussaud's, one of the world's most famous names in visitor attractions is also coming to 42nd Street, one of the world's most famous entertainment centers.

The Tussauds Group, part of Pearson plc., the international media group, plans to develop a major new attraction to be situated on the south side of 42nd Street between 7th Avenue and 8th Avenue. The project will bring the renowned name of Madame Tussaud's to Manhattan. Madame Tussaud's is the top attraction in London and part of The Tussauds Group, the UK and Europe's leading operator of visitor attractions. A new building will provide 60,000 feet of exhibition space covering five floors and the high-tech show will also feature superb wax figures that only The Tussauds Group's Studios, based in London, can create with their unique skills.

The next stage will be for The Tussauds Group's creative team to finalize design concepts and for New York City and State to pursue all approvals necessary for the project to proceed.

With an investment of $30 million, research indicates a market potential of 2 million visitors a year with 1.3 million forecast in the first year of operation. The Tussauds Group intend to open in 1998.

Every year over 10 million people visit Tussauds Group attractions which as well as Madame Tussaud's include The London Planetarium, Rock Circus, Chessington World of Adventures, Alton Towers, Warwick Castle, Madame Tussaud Scenerama in Amsterdam and Port Aventura in Spain.

Forest City Ratner Companies' 42nd Street Entertainment and Retail Development, which includes Madame Tussaud's Wax Museum and a 25-screen cineplex for AMC Entertainment, Inc. is located between Seventh and Eighth Avenues on West 42nd Street. The new complex will include historic elements of the renowned Harris, Liberty and Empire Theaters, which will be combined with new construction to create approximately 332,735 square feet of entertainment, retail and restaurant space.

Madame Tussaud's Wax Museum will occupy 60,192 square feet; The 5,000-seat AMC 25-screen cineplex will occupy 126,720 square feet; and variety of entertainment-related retail stores and theme restaurants will occupy 145,823 square feet.

Development Costs and Lease terms

The total cost of developing and constructing the new complex is estimated to be $70 million. A similar amount will be spent to create the new exhibition space for Madame Tussaud, and to complete the interior space for AMC, Madame Tussaud and the other tenants.

Forest City Rather Companies' lease with the Empire State Development Corporation and the New York City Economic Development Corporation for this site will run for 49 years.

During the 18 months of construction, it is estimated that 1,600 construction-related jobs will be created. The new complex is expected to yield 835 permanent jobs.

Live Musical Theatre to Return to Apollo and Lyric Theaters

In yet another announcement, The New 42nd Street, the non-profit organization guiding the re-invention of a majority of theaters on the historic street, and Livent Inc., announced they have signed a Memorandum of Understanding giving the Toronto-based live theater production company an exclusive option on two theaters on the northwest side of 42nd Street off Times Square.

Livent Inc., producer of the Tony Award-winning musicals Show Boat and Kiss of the Spider Woman, plans to combine and restore the Lyric and Apollo (also known as the Academy) theaters on 42nd Street into one 1,850-seat, state-of-the-art theater for the presentation of live musical theater productions.

"The 42nd Street project will be a key component in the city's plans for economic revitalization. The influx of tourists, shoppers, movie- and show-goers - not to mention the commercial establishments - will give the city a healthy shot in the arm," said New York City Deputy Mayor for Finance and Economic Development John S. Dyson.

"This has been an extraordinary public private partnership. We and all New Yorkers are beholden to Governor Pataki, Mayor Giuliani, Deputy Mayor John Dyson and Empire State Development Corporation Chairman Charles Gargano for their leadership and hard work," said Cora Cahan, president of The New 42nd Street, the organization formed by the city and state to determine new uses for a majority of theaters on 42nd Street and to guide and oversee their renovation and operation.

"We are absolutely thrilled to welcome Livent U.S. to the new 42nd Street. Livent's plans to bring its special brand of live musical theater to New York's most famous street are in perfect harmony with all ow hopes and aspirations to re-create the 42nd Street theaters as places of popular art and entertainment," she added.

"I'm pleased to welcome Livent U.S. and that great American art form - musicals - back to 42nd Street. George M. Cohan would be proud. This is another sign that 42nd Street is on the way back," said Charles A. Gargano, chairman of the Empire State Development Corporation.

The agreement gives Livent an exclusive nine-month option to sign long-term leases for the two theaters. Drabinsky plans to open this new theater for business in the Winter of 1997.

Constructed at the beginning of the century, the theaters reached their historic prime in the 1920s. After decades of decline and neglect, their re-birth forms the heart of the 42nd Street Development Project, a government-sponsored effort to revitalize the district.

Livent Inc.'s plans call for the two theaters to be combined. To the extent possible and in keeping with preservation guidelines, the construction of the new theater will incorporate historical elements, design details and decorative motifs found within the Apollo and Lyric Theaters. Both the 42nd and 43rd Street facades will be restored consistent with their original character and incorporating the new development scheme.

The one-balcony, 1,156-seat Apollo theater at 219 West 42nd Street was built in 1920 by the Selwyn brothers. The has played host to such performers as W.C. Fields, Ethel Merman, Jimmy Durante, Ray Bolger, Rudy Vallee, Ed Wynn, Bert Lahr and Kate Smith. In 1987 it was renamed the Academy and used for jazz concerts, as a cabaret, and currently as a venue for popular music concerts.

The Lyric Theater at 214 West 42nd Street is a two-balcony house, with 1,256 seats. It was built in 1903 by composer Reginald de Koven. The Shubert brothers built their theater empire in the fourth-floor rehearsal halls of the Lyric, producing an operetta based on Shaw's Arms and the Man, and Ibsen's The Lady and the Sea. In 1914, Fred and Adele Astaire starred in For Goodness Sake, and in 1925 Sam H. Harris presented the Marx Brothers in Coconuts by Irving Berlin on the Lyric stage.

Livent new U.S. theater will join the New Victory Theater, which will be the city's first-ever theater devoted solely to programming for young people when it opens in December, as well the other major entertainment projects on the street.

Last Thursday's announcements come on the heels of the selection in May of Dream Team Associates' (DTA) plan to invigorate the area around 42nd Street and 8th Avenue by incorporating a variety of cutting edge retail, hotel, and entertainment concepts - including entertainment architecture, multimedia marquees, layered and collaged signage, and building facade designs - which will turn the now under-utilized comer into a destination mixed-use project of 871,209 square feet.

The plans include retail and entertainment attractions along 400 feet of 42nd Street, totaling 137,145 gross square feet; 10 to 12 super signs along 42nd Street and 8th Avenue; a potential Disney Vacation Club comprising 119,047 gross square feet, or 100 time share units; and a Tourist and Convention Hotel with 615,017 gross square feet, including 680 rooms and 50,000 square feet of meeting and banquet space.

Tishman will develop, own and manage the retail component, in which Disney will be an anchor tenant. Other high-profile tenants who have expressed interest in pre-leasing retail space include Sega, IMAX, and Modell's. Disney has an option to purchase or lease from Dream Team Associates approximately 100 to 200 time share units in the complex, to be known as the Disney Vacation Club. The hotel will be developed, built and operated by Tishman.