ConEd site re-development begins creeping forward.

The development of the 9.2-acre ConEdison Waterside site may finally creep forward as the New York Public Service Commission adopted the Final Generic Environmental Impact Statement last week.

In November 2000, ConEdison entered into a contract with FSM East River Associates LLC, the development partnership of Fisher Brothers, and Sheldon H. Solow for the sale of the four parcels of land from East 35th to 41st Streets, between First Avenue and the FDR Drive.

Sen. Liz Krueger has been very vocal on the controversial development of a very sparse commodity in Manhattan. She testified before the commission last year, saying that Community Board Six did not have enough time to review the draft EIS.

"It is the largest lot of open space left in the East Side of Manhattan," Krueger told Real Estate Weekly. "It is on the water. It is in a one of the most densely populated areas on the East Side. The city of New York and it's government should think very carefully and plan very carefully how this remaining land of open space will be used."

Since utility assets are regulated by the state, the PSC has to approve the sale, but first an EIS was to be completed and adopted.

The written decision by PSC will be issued within the next few weeks, said Edward Collins, spokesperson for the PSC.

"The written order will present the environmental impact of several development scenarios," said Collins. "At some point after the written order, the actual sale will be presented to the commission."

Before the sale goes before the commission, Community Board 6 will review the EIS and make its comments.

"They can take our comments and do something with them or not," said Fred Arcaro, of Community Board Six. "But just because they approve the sale, doesn't mean the transfer of title goes through. The site still has to be cleaned up."

TRC has been contracted to complete the 28-month, $42 million cleanup, which may not begin for more than a year.

The cleanup will include decommissioning the site, removing asbestos and lead paint, demolishing the power generating plant, and returning the site to a condition approved for mixed-use development. ConEdison and the FSM will split the cost, Arcaro said.

After the cleanup, the deed may be transferred. Then FSM's development plans will go before the Community Board, The Department of Planning, the City Council and then the mayor, for approval.

"I can't see any building happening on the site before 2007, 2008," said Arcaro.

Some of Community Board Six's concerns are adequate open space, shadow space and traffic flow around the development.

Last year, FSM announced that Henry Cobb, of Pei Cobb Freed & Partners, and Marilyn Jordan Taylor, of Skidmore Owings & Merrill would lead the master planning process for the development of the four parcels from East 35th to 41st Streets, between First Avenue and the FDR Drive.

FSM officials said they expect the development will include a substantial component of residential use and a potentially significant amount of office use.

Geoffrey Wharton, who has been appointed to oversee the project by Solow, could not be reached for comment.