Past, present and future of upper Manhattan discussed.

A group of 150 real estate professionals sat enthralled for over two hours as community leaders, real estate developers and financiers discussed the evolution of Upper Manhattan at a program entitled "The Harlem Development Story: Into the Next Century," recently co-sponsored by Commercial Real Estate Women, New York (CREW*NY) and the Urban Land Institute (ULI) New York District Council.

Community leaders including the Reverend Dr. Calvin O. Butts III, of the Abyssinian Baptist Church; Reverend Dr. Preston Washington, of the Harlem Congregations; and Deborah C. Wright, president and CEO of the Upper Manhattan Empowerment Zone joined developers David Blumenfeld of Blumenfeld Development Company; James Stuckey, senior vice president of Forest City Ratner; and Chase Manhattan Vice President Lewis Jones, in a truly comprehensive picture of development in this community. Charles Shorter, director of Real Estate Consulting Services at E&Y Kenneth Leventhal, moderated the panel.

The project, which began with the redevelopment of 125th Street, has now grown to encompass most of Upper Manhattan. It includes: the development of the neighborhood's first supermarket; the addition of a retail development anchored by a Costco Price Club Superstore; a Home Depot being developed by Blumenthal; and the renovation of Bradhurst, a community extending from 139th to 155th streets, assisted by Rev. Dr. Washington's Harlem Congregations for Community Development.

"To me, one of the most intriguing aspects of the discussion was learning how vast the scope of development was. I was also engaged by the very powerful thought expressed by Dr. Butts,' said Wendy Rowden, president of CREW*NY and vice president/general counsel of The Rockefeller Group, "and that is his goal to make Harlem part of Manhattan."

Creating this economic viability, according to the panel, requires the development of a true mixed-use community, including various levels of housing, restaurants, retail and entertainment establishments, and schools. "You must create opportunities for community participation, workplace opportunities and retail opportunities," said Rev. Dr. Washington. "If the people who live in the community can't spend their money there, it won't work."

Stuckey, whose firm, Forest City Rather, is developing Harlem USA, said "The key element to successful development in an area like Upper Manhattan is an honest assessment of the strengths and weaknesses in the marketplace. You need the strengths to market to potential tenants and a candid assessment of the weaknesses so that when the questions arise, you can address them."

Citing a Biblical reference that "a threefold cord cannot easily be broken," Rev. Dr. Butts said, "A partnership among community, public and private interests was essential to re-development projects such as these. Participation of the community is vital. When the advice of the community is not sought, when the community itself cannot benefit financially from the re-development process, it's going to get bogged down."

Lewis Jones of Chase Manhattan Bank, which led the financial syndicate behind Harlem USA, underscored the relationship between public and private money. He called the underwriting from public sources "a bank's patience money," adding that his bank looked for 70 percent pre-leasing with credit-worthy tenants. In regard to Harlem USA, Lewis added "The Disney Store jump started the project. It's a very small store in the scheme of the overall development, but it gave credibility to the project."

"Harlem lost 52 percent of its population between the end of the Fifties and the end of the Eighties," said Wright, of the Upper Manhattan Empowerment Zone Development Corporation. Under her tenure, she has overseen a total capital budget of $250 million funded equally by the city, state and federal governments. "This is a community that has only been growing since the Nineties. Starbucks has arrived. A Doubletree Hotel is coming. We'll know we're there when the banks don't require a subsidy."