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Prudential may delay Times Square plan.

Prudential may delay Times Square plan

The economic climate is placing a fog over the Times Square Development Project.

Park Tower Realty and Prudential Realty, partners in the project, are supposed to have discussed delaying the project with Deputy Commissioner for Economic Development, Sally Hernandez-Pinero last week.

"We have ongoing discussions with officials, especially in project of this size," said Prudential spokesman Richard Matthews. "But we can't talk about this."

The city has been going forward with evicting the last remaining tenants in the buildings scheduled to make way for four-corner office towers at 42nd Street, as well as a 750-room hotel and 20-story merchandise mall. According to a spokesperson for the city's Economic Development Corporation (EDC), within a year that vacant possession of two sites is handed over to the development partnership, Times Square Center Associates, they must commence construction or groundbreaking on the site. Within a month after possession is handed over, the partnership must post a $90 million letter of credit for subway improvements. The two sites are located at the north-west and south-west corners of Broadway and 42nd Street.

Reports indicated the developers would not only like a delay, but a rethinking of the scale of the $2.5 billion project. Without major tenants signed up to guarantee stability, the buildings could be constructed and remain empty for years. The brand new and still empty 1540 Broadway, just steps from the world renown intersection, gives credence to the developers' dilemma.

Prudential Securities, which rents space at 199 Water Street, 100 Gold Street and 127 John Street, as well as a corporate headquarters in New Jersey, was reported by the Wall Street Journal as being courted by the Deputy Mayor to remain in Manhattan or become the tenant in one of the four towers, in return for some delay or scale-back of the project.

Prudential Securities, which employs 5,000 employees at its three New York locations, has been looking for space over the past few years and has not yet made a decision as to where to relocate. Its leases are all supposed to expire by 1994.
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Title Annotation:Times Square Development Project
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Nov 13, 1991
Previous Article:Silverstein: tell Congress to end credit crunch.
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