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Zuckerman facing Coliseum ultimatum.

Pressed by Metropolitan Transit Authority Chairman, Peter E. Stangl, Mayor David N. Dinkins has agreed to issue an ultimatum to Mortimer Zuckerman for a closing on the Coliseum purchase by Nov 15.

Stangl had suggested the mayor sign a notice to close last week but the mayor requested another month -- until August 15 -- in order to continue talks with developer Boston Properties, headed by Zuckerman. Both agreed, however, on the Nov. 15 deadline.

"We're prepared to proceed," said Morri Berman, a spokesperson for Zuckerman. Zuckerman, in a June 23 letter to Stangl, said another proposal would be made in the second half of July. Zuckerman, in a statement, said they were prepared to proceed with a development on this site on a reduced density that reflected the new economic realities and would enhance the site and create thousands of new construction jobs. Zuckerman has spent nearly eight years and about $40 million of money that was not recouped by the Salomon Bros. buyout of their lease for the first proposal.

The new plan could encompass a lease by the law firm of Weil, Gotshal & Manges, which has been in talks with the developer to move from its current site at the GM Building to 500,000 feet in a new Columbus Circle building.

Tito Davila, a spokesperson for the MTA, said the mayor agrees with Stangl as to the final closing date. "There was a build-now, build-later plan that we were really not excited about," added Davila about the last Zuckerman proposal that had been on the table. For this new plan, Davila said, they would have to see it first and talk to Boston Properties before making a final decision. "Should the parties, acting reasonably and responsibly, be unable to reach an agreement by August 16, 1993," the mayor's letter reads, "I would be prepared on that date ... to send a 90-day closing notice.

If the sale does not occur, the mayor noted to Stangl, the city would receive rents in excess of $1.225 million per year that might come from another type of use.

There are still 15 proposals concurrently being examined by the MTA for alternate uses for the site.
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Title Annotation:New York, New York Mayor David N. Dinkins demands that Mortimer B. Zuckerman close escrow on Coliseum property by November 15, 1993
Author:Weiss, Lois
Publication:Real Estate Weekly
Date:Jul 21, 1993
Previous Article:NY family reaffirms commitment.
Next Article:Investor purchases 260 West 39th Street.

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