Cablevision/MSG buys Radio City Productions.

In a kick arms deal for all around, Jerry Speyer has ensured that the Rockettes remain in New York, Radio City Music Hall receives technological and cosmetic upgrades, Rock Center gets more than double the former rent money, Cablevision gets a world-renowned major mid-sized venue for the next 25 years, and the Rockefeller Group gets a reported $70 million cash and retreats to its' core real estate business.

The deal was worked on by Speyer's son, Rob, who was thanked at the Radio City press conference last week by David Checketts, the president of Madison Square Garden, which is owned by Cablevision, for spending months negotiating the terms of the lease.

The lease was to expire on January 1st and has been the subject of much anxiety by the owners of Rockefeller Center as well as the former owners, the Rockefeller Group, that hold the lease and had retained the ownership of the production company.

Lorian Marlantes, president of the Rockefeller Group, was very happy about selling Radio City Productions to the Madison Square Garden/Cablevision.

"It's great news for New York City," he said. "The production company will continue to operate. The Christmas shows will go on and the Rockettes will remain in New York."

Marlantes explained that the Mitsubishi Estates-owned company is "really a real estate company, and the whole point is to sharpen our focus on real estate and the direction our parent company has taken."

Along with owning a controlling interest in the Rockefeller Center buildings on the west side of Sixth Avenue, 1221 and 1271 Avenue of the Americas, and the development parcel known as Rockefeller Plaza West, the Rockefeller Group is expanding its presence in New Jersey. The company already owns and continues to develop the International Trade Center in Mt. Olive, and is working on a number of potential projects.

Among them, Jersey sources say, is a development in Floram Park, NJ, for a Fortune "up-there," company, as well as another suburban development.

The company also owns Cushman & Wakefield, which is currently expanding in Asia. With the RGI portfolio, it manages over 210 million square feet of office and industrial space.

Another subsidiary, the Rockefeller Group Telecommunications Services, provides telephone and data services to buildings in Midtown Manhattan, including Rockefeller Center.

As for Rock West, which is now a parking lot along Seventh Avenue between 50th and 51st streets, Marlantes said they are talking to "a number of people." He noted the original design is at least 10 years old, so in any event it would have to be modified to conform with the needs of today's tenants, as well as technological advances and building codes.

Additionally, it will undoubtedly be adorned with spectacle signage which will depend, as Marlantes said, on the tenants and "what's new in the world of signage."

While there is still an entertainment use requirement from the original agreement with the community, Marlantes doesn't know if it would include a dance studio as was expected then, or another entertainment component.

"We have the ability to build just over a million square feet without any air fights," he said, and up to around 1.5 million square feet with them.

There is also an agreement with the new Rockefeller Center owners to allow the Rockefeller Group to purchase development rights, but sources report the price will have to be determined. There are also possibilities of purchasing them through other nearby buildings or through the Theater District Rezoning, if that plan is confirmed by the city.

Still, with no tax incentives in place for that parcel, unless the city comes through with a financially promising deal for a major tenant, real estate experts believe it will be one of the last to be developed. They expect those sites receiving the special Times Square benefits to be constructed first, because the final rents will be less costly for tenants.

As for the Rockettes and the associated production company, reports indicate Cablevision will toss $30 million towards upgrades of the landmarked Hall, including new seats, sound and lighting. It will also make the 1932 theater compatible for high definition television broadcasts which can be offered to Cablevision's subsidiary subscribers on American Movie Classics and Bravo.

The 6,200-seat theater was the largest ever at the time it was planned for live stage shows by Samuel Rothafel, who was also known as Roxy. That led to the line dancers first moniker, the Roxyettes. For the most part, it was used as a movie house that offered a live Christmas production with the dancers, who recently settled a contract dispute.

The interior of the theater was made as intimate as possible by designer Donald Deskey. There are also several major art works located in the lounges and a huge foyer mural by Ezra Winter called 'Fountain of Youth."

The Music Hall is expected to be more fully utilized and cross-marketed with the Garden to bring in additional movies, stage productions and concerts, along with awards ceremonies.

Complaints by performers include the lack of any room at the wings of the stage, which end a few feet from the surrounding sidewalks, and the inability to hear the applause from the audience. Of course, that means performers work harder to get an audible audience reaction.