Retail center planned at former TSS site in Hempstead.

A $11 million revitalization project for the Village of Hempstead that calls for a mix of commercial development was hailed by Governor George Pataki as a great model for small city economic and downtown revitalization projects.

The new retail center, to be called Hempstead Village Commons, will be a 100,000 square-foot project located at the former Times square Store (TSS) site that has been closed for 10 years. The project will generate 150 permanent jobs and 150 construction jobs.

A ground-breaking ceremony was held July 8th in conjunction with the Village of Hempstead, the real estate developer Basset-Kaufman, and the Empire State Development Corporation at the 8.8 - acre site located on the corner of Peninsula Boulevard and Front Street. Construction of Hempstead Village Commons is slated to be completed by end of November.

"For more than 10 years, the former Times square Store sat in Hempstead as a vacant, deteriorating and dally reminder of the Village of Hempstead's past," Governor Pataki said. "Today, with this project, Hempstead Village Commons will become a symbol of Hempstead's economic rebirth and a catalyst for future economic development."

The property was acquired by the Village of Hempstead in a tax proceeding in 1996. The ability of the Village of Hempstead Community Development Agency (CDA) to get the property back on the tax rolls was the result of a cooperative effort between the village, Nassau County, New York State and the federal government.

Initially, the U.S. Department of Housing and Urban Development (HUD) provided a grant for $1.2 million that allowed the CDA to demolish the former TSS structure. Further help arrived when the CDA secured the $300,000 grant from the Empire State Development Corporation.

"These grants helped serve as an incentive to get a developer interested in purchasing the property," said Dr. Glen L. Spiritis, CDA commissioner.

Following a formal Request For Proposals, real estate developer Basser-Kaufman was selected to buy the land and build the new shopping center. The Lawrence-based Basset-Kaufman is well-known in the retail industry for its success with dozens of similar ventures.

Following the transfer of the property to the developer last month, the CDA recouped the $1.2 million cost of tearing down the old building, while Nassau County and Hempstead Village recovered $2.3 million dollars in back taxes.

"This is the latest effort orchestrated by our Community Development Agency to help spur economic growth in the Village of Hempstead," said Village of Hempstead Mayor James A. Garner. "Recycling this site and getting it back on the tax rolls has been a major goal of my administration. Along the way, we endured some roadblocks and criticism, but the end result will be something that was worth waiting for."

Hempstead Village Commons already has 63,000 square feet pre-leased. Staples, the second largest office-supply superstore in the United States, has signed a 15-year lease for 24,050 square feet. Rite Aid, the third largest drugstore chain in the country, has leased 12,650 square feet. Hollywood Video will lease 6,500 square feet. Pep Boys, which stocks 40,000 automotive items at over 700 stores throughout the country, has signed a ground lease for 18,027 square feet for a 20-year term.

Negotiations with other retailers are underway to fill the remaining space. Parking for 465 cars will be provided.

In order to accommodate the anticipated increase in automotive traffic as a result of the project, the Empire State Development Corp. will provide a grant of up to $300,000 to the Village of Hempstead Community Development Agency for traffic mitigation costs and a portion of premium foundation costs due to adverse sub-soil conditions.

To help traffic flow in the area, a new turning lane and traffic signal will be installed on Peninsula Boulevard. Cars will be able to enter the facility from either Peninsula Boulevard or Front, Franklin or Main streets.

In keeping with the village's 350-year-old history, Hempstead Village Commons will be built using elements of colonial-style architecture, highlighted by a gabled roof and a red brick facade.

The CDA recently won HUD's Blue Ribbon Best Practices Award for improving the quality of life for Hempstead residents through its aggressive pursuit of public funding to rehabilitate commercial properties, providing affordable housing opportunities, upgrading village parks and instituting crime prevention programs.