On the waterfront: Developers finding new life.

New York City's waterfront is, by turns, awe-inspiring and appalling. The Hudson River Park below 14th Street, for instance, seems a world away from the rough edges lining much of the city's water. The former suggests what can be done, while the latter is a function of neglect.

With more New Yorkers--and developers--giving the waterfront serious thought these days, a transition appears to be in the works.

Part of the problem, say informed sources, is outdated zoning. Since many waterfront sites were zoned for industrial use, it can be difficult--if not impossible--for a developer to build here.

"When we first did the zoning back in 1961, New York City had over one million industrial jobs, and many of these jobs were on the waterfront. We lost two-thirds of those jobs," said Bill Woods, director of waterfront and open space planning for the Department of City Planning.

Woods singled out a few prime waterfront sites, among them Queens West, Riverside South, the "Gold Coast" of Brooklyn's East River shore and even the old Chessie site on Staten Island. All of these sites, in Woods' view, could benefit from rezoning.

The Department of City Planning created a comprehensive waterfront plan in 1992 that envisioned a mixture of parks and open space, ferry terminals and new housing. The plan capitalized on the massive size and diversity of New York's waterfront as a way to strike a balance between commerce and recreation. Further, the plan recommended that approximately 500 acres of manufacturing-zoned land be rezoned for residential, commercial and recreational use. Implicit in the proposal was the fact that much of the waterfront needs to be rezoned.

"But rezoning takes a long time. You don't just go in and rezone, said Woods.

Or, for that matter, just develop a site. Though some in the development community have proven to be adept at working the waterfront, plenty of obstacles exist.

Douglas Durst is one developer with waterfront acumen. Lately, Durst has been working with Tom Fox, the owner of a water taxi fleet, to set up a Hudson River circuit. Durst isn't the only one with renewed interest in waterborne transportation--Sept. 11 effectively doubled ridership on dominant ferry operator New York Waterway and proved that water traffic is nothing compared to its landlocked cousin.

There is some disagreement over whether increased ferry service will spur development or vice versa.

Woods believes that as more and more people discover the benefits of ferry commutation, the fleets will grow--and with them the prospect of more waterfront development.

On the far west side of Manhattan, a waterfront park is gradually covering the shore.

"The Hudson River Park will change the consciousness of Manhattan, like Central Park did for the city," said Brendan Sexton, a consultant to the Durst Organization.

He has been working with Durst on his development next to the West Side Highway.

"Doug is looking everywhere for development opportunities," said Sexton, referring to other waterfront sites.

North of Durst's project is Riverside South, where the Trump Organization is developing a high speed ferry landing at 69th Street. The landing is expected to be open by 2003, according to Michael Bradley, executive director of the Riverside South Planning Corporation.

"Eventually you will be able to walk all the way up Manhattan's west side by the water. This waterfront development should have happened a long time ago," said Bradley.

Because most of the waterfront in New York City is publicly-owned, private developers must work with community groups to figure out a common goal, he said.

"The waterfront is really the final frontier. The city has to take the lead on this," he said.

Bradley criticized the approvals process as being "balkanized," only adding to the slow pace of development.

Another area experiencing a waterfront revival is DUMBO (Down Under the Manhattan Bridge Overpass), he said.

Back in 1980, the Walentas' family got involved in DUMBO as developers. Their development firm--known as Two Trees--bought 3 million SF of old manufacturing buildings here. Since the city wanted to protect shipping at the time, Two Trees failed to get a rezoning that would allow them to convert to residential.

By 1997 they were leasing space to artists in DUMBO, however. They built some rental units in 1998, and have become known as the most active developer of DUMBO.

"A lot has changed here. There's a park on Main Street, right on the East River, and the area between Jay Street and Atlantic Avenue will eventually be a waterfront park," said Jed Walentas, son of Two Trees' founder David Walentas.

He anticipates the addition of a water taxi station in the spring, which will create a vital link to Manhattan for DUMBO residents.

"As a city, we've done a very poor job reclaiming our waterfront. We need more waterborne transportation, and you are starting to see more of it," he said.

The Metropolitan Waterfront Alliance--a division of the Municipal Arts Society--is likely the biggest proponent of added ferry service. Through the MWA's extensive network of members, waterfront issues are debated and circulated as a way to "reclaim and reconnect" to the city's harbors, creeks, rivers and estuaries.

Carter Craft, the director of the MWA, constantly updates a giant map of the New York City's ferry routes. He is also involved with myriad community groups, agencies and private sector business people with vested interests in the waterfront.

The MWA is attempting to create a New York Harbor Loop that would make local stops at all five boroughs and New Jersey. To do this, they are asking for $2.4 million in capital funding and $1.5 million in temporary operating subsidies to "jump start" private ferry service. Capital investments are needed at several sites, among them Red Hook, Brooklyn's 69th Street pier and sailors Snug Harbor on Staten Island. There's much more to the MWA's mission than this, however, as Craft can easily explain.

But he understands what he's up against--161 miles of tunnels beneath, and 76 bridges spanning the rivers around Manhattan.