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By: Serach Nissim
In 2008, Vornado Realty Trust had won control over Piers 92 and 94 with the city granting it a 99-year lease to turn the former cruise ship terminals into a grand trade show center, similar to Javits Center.
As reported by Crain’s NY, recently, the real estate investment trust, led by billionaire Steven Roth, has subtly dropped any plans for Pier 92, focusing solely on Pier 94, with plans to build a flashy film studio there. The two piers, which dip into the Hudson River between West 52nd and 54th streets in Hell’s Kitchen, have been long dormant. In 2019, Pier 92 was deemed as structurally unsafe due to damage overtime by marine creatures. Following the discouraging assessment, Vornado had altogether stopped paying rent on Pier 92, although last year Vornado said that it had again resumed payments.
Neighbors and residents are disappointed that after so many years of ownership, Vornado would now abandon any plans to improve Pier 92, amending its agreement with the New York City Economic Development Corp. Critics say the company should foot the bill to reconstruct the Pier, and not throw it back onto the city’s taxpayers. “It’s uninhabitable because the permit- and leaseholder, Vornado, didn’t do anything to the pier in terms of investment for all the time it had the pier in its portfolio,” said Jeffrey LeFrancois, chair of Manhattan Community Board 4. “All we want is for something to actually happen, and Vornado hasn’t done anything in 14 years. Why now should we expect anything different?”
Vornado now plans to build a 200,000-square-foot film studio on Pier 94. The city’s Economic Development Corp defended the new deal. “This is a very strong deal in terms of private sector investment being leveraged in a sector that’s important for the city’s growth,” said EDC CEO Andrew Kimball, noting that the planned film studio could become a prime location for lucrative film productions, helping to expand the industry in NYS. Kimball also defended Vornado, adding that the original lease agreement stipulated that the city would handle the Pier’s upkeep, not the company. “I think, over time, this is going to be a deal that is well-received and people are happy about,” Kimball said.
A Vornado spokesperson commented saying the company is “pleased” to work with the city to create the studio. “This development will solidify New York City’s position as a leading market for content production and studio space,” spokesperson Bud Perrone said. He noted that the project would create 1,300 construction jobs and finally provide public restrooms at the nearby Hudson River Park, as well as add a community facility and 25,000 square feet of new open space on and around the pier.
Notwithstanding, Community Board 4 has been hard at work penning multiple letters to EDC, asking it to change the lease terms to demand that Vornado help the city cover more of the costs. Per Crain’s, EDC has said the revised lease is close to being finalized. There only remains a May 24 hearing by the Mayor’s Office of Contract Services. Once the deal is signed, demolition of the existing pier 94 structure will start in the fall and construction on the film studio is slated for completion by late 2025. The venture would also likely include one-quarter ventures from each Blackstone and Hudson Pacific Properties, with Vornado covering a 50 percent investment, Kimball told Crain’s.
