The State of the City... What isn't perfect soon might be.

Every year, people who are supposed to know, present state of the union reports, state of the state reports, quarterly statements for stockholders, etc. etc. And now, I am going to report on something I know and dearly love: The State of New York City.

In order to be a great city, it has been said, there are certain criteria which must be met:

* A good subway system.

* Superlative airports

* Access by railroad.

* Access by bridges.

* Location on a large body of water, i.e., a lake, river, ocean.

* A large sports complex.

* A large entertainment complex.

Let's consider New York City in light of that list:

* New York's subway system leaves much to be desired. Ridership is up, service is down. Many of the cars in use are antique and should have been retired years ago. However, it keeps on going, with only a few mishaps.

* New York's airports are far from superlative.

* The city does have railroad access. One of its terminals, Grand Central, has undergone major renovation during the last ten years with magnificent results. Work on the other, Pennsylvania, is going to begin in the near future.

* The city is completely dependent on its bridges for most of its supplies and most of the bridges need restoration. This problem had been ignored for years, but is now being addressed, almost too late.

* New York City is an island, surrounded by rivers, fronting the Atlantic Ocean with a wonderful harbor. No problems there. However, much more could be done to develop the waterfront area to its full potential, abandoning the leftover squalor of the nineteenth and early twentieth centuries.

* Although the city doesn't really have a sports complex, it is bidding for the future Olympics...

* A major entertainment complex: yeah, we've got that -- seen Times Square and 42nd Street lately?

Taking into account the above, New York shouldn't be what it is: capital of the world, but it is.

What about what's going on elsewhere? All the strum und drang we've been hearing and reading about the economy. The stagnation of Japan. No electricity in California.

I receive telephone calls from Europe inquiring as to how I'm holding up in light of Everything. For although the European consensus is that things aren't that serious, reports from the U.S. sound awful.

I'm holding up just fine, thank you. In New York, there may have been a softening, but not a lot. Things are no longer moving along at the break-neck pace they were last year, but the slight hesitation is welcome, one can catch one's breath.

Otherwise: the city's population is up, topping 8 million. Consumer confidence is rebounding. Retailers are optimistic: sales are strong. They're really looking forward to Spring. Restaurants are opening on a large scale -- going forward since the beginning of the year in all parts of town.

Travel is still a mainstay. Tourists are coming in droves, attracted by the entertainment, shopping, dining, things to do and see that is unparalleled throughout the world.

Several new boutique hotels have opened: 60 Thompson St., The Giraffe, Tribeca Grand, Hudson Hotel, etc., and others are being planned, as well as larger ones such as the Ritz Carlton on Central Park South.

There are reports in different parts of the city every week -- Upper East Side, Upper West Side, Soho, 57th Street, Madison Avenue -- of a new designer or a new retailer, from luxury to big discounter, having just inked a deal or about to sign a lease.

The larger projects around, like Coliseum or Time Warner/AOL Headquarters continue to sign many letters of intent. The Vornado project on Lexington Avenue and 59th Street will start to come out of the ground.

There are office building renovations with larger retail components, often creating multilevel retail space: the ground, second and basement levels.

As you can see, we're doing all right. And why? I don't pretend to know all the answers, perhaps none of them, but here are a few of my ideas.

First, of course, it's New York City, plain and simple. Second, we have had the great good fortune to have had an exceptional city administration for the last seven years. There is a stabilization in New York; a relative calm prevails. It's great and it works.

Third, are the neighborhood BIDs: Business Improvement Districts. The industry, dedication, and inspiration of the members of the individual BIDs has affected not only their own localities, but the whole city as well.

Those are a few of the possible answers, but no matter -- so far, so good for now.