Downtown shows signs of life.

Downtown Manhattan's transformation to a 24-hour community just received its biggest catalyst: the New York State Senate passed the long-awaited Downtown Incentive Plan last Thursday, October 12th. The governor is expected to sign the document at a Downtown ceremony this week.

The plan reduces real estate taxes, commercial rent taxes and energy costs in pre-1975 buildings, at the same time it permits residential conversion and mixed-use of these older office buildings.

It is fitting that the Senate's passage with a vote of 53-1 took place on the real Columbus Day, a day when Columbus "discovered" America. By the Senate's action, the world was provided with the opportunity to "discover" Downtown.

Needless to say, the enactment brought on smiles to plan proponents and those who are trying to do business there.

"I opened a bottle of champagne and celebrated," said William C. Rudin, president of Rudin Management, whose property at 55 Broad, a/k/a The New York Information Technology Center (NYITC), will benefit from the plan. "We're excited and elated and its the start of the renaissance of the revitalization of Downtown," he said.

Developer Donald J. Trump, who is planning to buy 40 Wall Street, said "It's a wonderful thing for New York and I'm very happy."

Alliance for Downtown New York Business Improvement District President Carl Weisbrod was "thrilled" that the man was finally passed.

According to Newmark's senior managing director of research, Paul N. Arena, there is 110.1 million square feet Downtown in approximately 212 buildings. Third quarter 1995 results show the overall vacancy rate came down somewhat from 19.7 percent to 19.3 percent, with about 21.2 million square feet available.

The Alliance itself encompasses 100 million square feet below Chambers Street and its sanitation and security patrols are now visible in khaki uniforms and red berets. A free jitney service is also being provided through the winding streets. The BID is also working on signage and marketing plans, including a big end-of-year holiday destination promotion.

While the plan, originally proposed by Mayor Rudolph Giuliani last December 1994, is retroactive to April 1995, Rudin said they already had leases signed and put into escrow that can now be put into effect.

Attorney Wesley Rudes, who is a principal along with brother Jonathan in the Rudes Realty Company, is acting as leasing consultants for Rudins on the project. "We've been working on this project for two and a half years," he said.

Among the tenants signed up at 55 Broad are N2K, a CD-ROM manufacturer; Keny Global, a Japanese software company; Tangent International, a UK software consulting firm; and Young Software Works.

A California company, Plaid Brothers Software; InterCom Online; and Marketing Technologies Group were all waiting for the passage of the legislation to sign on the dotted line.

According to Rudes, about 22,000 square feet is rented, with another 25,000 square feet in leases pending on three floors and "a lot of proposals pending." The building is approximately 400,000 square feet and has been totally vacant since Drexel Burnham moved out.

The retail space will be let to a computer retailer, while the restaurant is expected to be a theme eatery, and Rudes said it will be something "very exciting."

It's the little things like that which will change the area, known by its Alliance for Downtown New York Business Improvement District boundaries as generally that area below Chambers Street.

Craft and art galleries, splendid restaurants, new stores and many development plans providing an influx of both residential and commercial tenants will now be able to proceed.

Joseph Pell Lombardi, an architect who has helped convert more than 100 buildings south of 23rd Street, is consulting on nearly a dozen Downtown projects, not all of which are ready to be identified.

"It's marvelous news," said Lombardi when told of the Plan's passage, "and puts into operation a number of projects that have been waiting on the sidelines. I believe it's the spark that will revitalize Lower Manhattan. There are many projects that were deeply advanced but would only go if this law were to pass."

While plan proponents expected one to two million square feet to be absorbed by residential tenants, Lombardi thinks the number will be closer to ten million, with most of it as rentals. That much residential conversion will also provide the strong influx of 24-hour, 7-day-a-week life that the area needs.

"These apartments can really come out in the marketplace at a competitive enough number to make an impact," said Lombardi, predicting the influx will start out with younger people or those just-married. "Rather than the pied-a-terra clientele, we are talking about a real residence."

Adrienne Albert, president of The Marketing Directors, noted that "doctors, lawyers, and industry chiefs" are moving Downtown every day. "The entertainment industry is moving down with performing artists, artists, agents, attorneys and recording studios," she said. "There is all that in addition to the financial industry, but there is very little residential to accommodate this. If all of these buildings come about," she predicted, "the vast majority will be successful. As soon as there is a pocket, the needs will be filled."

One of the buildings that is poised to start work is at 25 Broad, a 500,000 square-foot awkwardly shaped building that will conform nicely to a mixed-use combination with its two elevator banks and a location across from the Stock Exchange.

Meanwhile, The American Craftsman Gallery and Deep Space have opened at 60 Broad. On a recent visit, the store was well trafficked with tourists and office occupants who in the past have not had the gift choices those in Midtown take for granted.

A few steps further south, Tony Goldman, one of the early boosters of Soho and Miami's South Beach, has taken on the dinghy 1908 structure of the former American Bank Note Company building at 70 Broad and is turning it into a multi-level dining experience. On the first two floors, Lombardi is helping to turn it into a bright spot as the Wall Street Kitchen & Bar. The third floor will be an exclusive dining spot and the fourth will have other entertainment uses.

He points to Broad Street and says it will soon become Downtown's Madison Avenue retail corridor.

Goldman has also purchased several buildings on nearby Stone Street and will make them into a destination restaurant and retail location. "This would be an integrated part of the urban fabric," he explained of the soon to be Landmarked district. Goldman also has an option for 11 Hanover Square, where he would create a residential conversion.

"I'm very excited and only have the highest congratulations for the Mayor and his aggressive approach at helping the Downtown condition, and I have tremendous respect for Carl Weisbrod for the tremendous amount of work he did in conducting the political negotiations an keeping the drive alive," said Goldman. "It will without question stimulate activity that has been waiting in the wings."

The value of any community, Goldman said, is in the health and strength of its neighborhoods. "But this is not a neighborhood because no one lives here. This has to be a restaurant destination first for life after 6 p.m. and it will be, if I have to do it myself. Somebody has to take the covered wagons across the Plains."

Soon the days of photographing real bulls and bears and lions in the deserted caverns will be a thing of the past. There will simply be too many people in the streets, even on the weekends.