City says $5B rail yard redevelopment plan still on track.

Daniel Doctoroff, the New York Deputy Mayor for Economic Development, has reassured edgy developers that plans for the biggest redevelopment of Manhattan's west side rail yards in over a century are still on track.

"Everything is actually moving along as we planned," Doctoroff told REW. "There are clearly issues that we need to get through, but this is the largest project the city has undertaken in a long time."

Published reports have sited problems with the funding for the $5 billion Project, which is supposed to include a new Jets stadium, a major expansion of the Jacob Javits Convention Center and an extension of the #7 subway line.

Delays in the release of a comprehensive financing plan have made some participants wary that their projects might not get priority, while disagreements over land rights might delay the process even further.

However, public officials are putting on a brave face, insisting that these are just minor issues present in every major undertaking, but there are indications the planning process might be taking way too long.

According to Doctoroff, "We have put out a new schedule, which includes the final environmental impact statement being done by next summer and start of construction for the #7 subway line and the Javits expansion by the summer of 2005. I think things are going well."

One of the biggest contentions so far has been the Mayor's rumored intent to provide $300 to $400 million to help the Jets build their new stadium.

The money would go to fund a retractable roof and an air-conditioning system, part of the city's investment in the bid for the 2012 Olympics.

According to the supporters of the Javits expansion, who have yet to see a detailed plan for their project, the stadium is unlikely to bring as many economic benefits as a larger convention center. Manhattan Borough President C. Virginia Fields would like to have the Javits expansion extricated from the larger West Side plan all together because she is afraid the other projects are holding up an important economic initiative.

"The Javits Center expansion will not only provide new space to host various conventions, but will bring new temporary and permanent jobs to the city," Fields said.

"It's about jobs, it's about resources for New York, it's about creating a catalyst for other commercial and retail developments in the area and I see no need to hold the expansion up while the other issues surrounding West Side redevelopment are being worked out."

Fields and Central Labor Council President Brian McLaughin would also like to use Liberty Bonds to finance the project, making a speedy resolution that much more important.

While federal government allocated about $2 billion in tax exempt bonds to be used outside downtown Manhattan, the plan is effective only until 2004.

"The Governor's and the Mayor's people have been involved in this for more than two years and how much more time it will take them to work this out, I don't know," Fields said. "That is part of the problem--we need concrete action to be taken and I think it should be done sooner rather than later."

According to Jeremy Soffin, of the Regional Plan Association, concrete action might not be as easy as it would seem.

"Obviously, there is a high level of public investment required with all the things on the list of the projects and there is some concern about money," he said. "It's hard to prioritize within the redevelopment plan because all of the elements work together.

"They are all important and if we can't afford everything, we need to take a second look at the planning budget and reconfigure things. Hopefully, things will get done."

In the meantime, the Mayor's office is downplaying the difficulties.

"We are still discussing the Javits expansion because the planning for that has been much slower than for the stadium and we don't know the size and cost of the project yet," said Doctoroff. "We haven't yet worked out the exact mechanics for financing the subway expansion, but right now are trying to figure out what the financing structure for that will be. What's been noteworthy so far is that the vast majority of people in New York City are in favor of the project because it will produce thousands of jobs and millions of dollars in revenue."

At the current moment, construction of the Jets stadium is expected to cost approximately $1.2 billion, the Javits expansion $1.5 billion and the subway extension anywhere from $1.7 to $2 billion.