Developer picked for armory.

Governor George Pataki has announced that the joint venture of Plaza Construction Corp., Orda Management Corp. and Care-Matrix Corp. (Plaza) has been selected to develop the 14th Street Armory in Manhattan.

"This is great news both for the State's taxpayers and the 14th Street community," Pataki said. "This mixed-use development is not only compatible with 14th Street's ongoing economic renewal, but it is appropriate and fitting with the area's residential neighborhoods."

"Privatization initiatives save taxpayers money by putting State property back to productive use, and help anchor communities with good paying private sector jobs," the Governor said. "Instead of a financial drain on state taxpayers, the 14th Street Armory will now act as a source for new jobs and increased revenue for New Yorkers."

Plaza will raze the former Armory, located at 125 West 14th Street between Sixth and Seventh avenues, and build a 275,000 square-foot site for a mixed-use project that will include an entertainment complex with cinemas and live theater, retail stores, luxury residential condominiums with 140 independent living units and 10 assisted-living units for seniors.

Plaza offered $15 million in cash for the property without any purchase price or pay merit contingencies. The Board of Directors of Empire State Development Corporation (ESD) approved the sale at its meeting April 15th.

Morton F. Silver, president of Orda Management, said on behalf of the partnership, "We would like to thank Governor Pataki, the Empire State Development Corporation and the many community organizations involved for the opportunity to implement our development plan. We believe our plan will not only preserve the character of the Union square, West Village and Chelsea neighborhoods, but will additionally enhance these communities and lead to further revitalization for 14th Street."

Charles A. Gargano, Chairman of ESD, said "We worked hand-in-hand with the community in a model exercise and are extremely pleased with Plaza's development plans for the Armory site. But our progress would not have been possible without Governor Pataki's commitment to return unused state assets to the tax roll and get them off the taxpayers' backs. The Governor's policies for a smaller, smarter and more efficient government is keeping New York competitive, and the private sector is responding."

ESD was designated by Governor Pataki to advise all state agencies on privatization initiatives. In April 1997, on behalf of the Office of General Services (OGS), ESD issued an RFP for the sale of the 14th Street Armory.

ESD worked closely with a number of community groups and associations to see that the process was inclusive and the future development compatible with the surrounding neighborhoods.

Simone Sindin, chairman of the Armory Action Association, said "This has been a clear case of New York State working directly with an affected community in an orderly and understanding manner so as to minimize mistakes any community anger, and to maximize community input to achieve an appropriate and enduring solution."

David Orrach, executive director of the 14th Street-Union square Local Development Corporation, said "New York State's sale of the Armory site is an important milestone in the revitalization of 14th Street. Plaza Construction's winning proposal provides the right mix of residential and commercial development, including much needed assisted-living services for the elderly, that will stimulate more improvements in the area. The 14th Street-Union square community is indebted to Governor Pataki and ESD Chairman Charles Gargano for providing the leadership that has made this project possible."

Lola Finkelstein, chair of Community Board 5, said "The RFP process conducted by New York State has been one of the best collaborative experiences for this community."

Following the anticipated closing in June, demolition of the existing armory building will begin almost immediately. Plaza then hopes to begin construction approximately 90 days after demolition, so that the project will open in the Spring of 2000.