Downtown Alliance 2013 Annual Report by Alliance for Downtown New York

TURN THE PAGE: LOWER MANHATTAN’S MOMENT HAS ARRIVED

ALLIANCE FOR DOWNTOWN NEW YORK ANNUAL REPORT 2013

FULTON TRANSIT LOWER CENTER MANHATTAN Aug 10, 2013

Information Sources: Alliance for Downtown New York, Inc United States Census Bureau New York State Department of Labor Metropolitan Transportation Authority Port Authority of New York and New Jersey Trust for Governors Island Brookfield Office Properties Howard Hughes Corporation Silverstein Properties, Inc. Westfield Group

Additional Information Provided By: Jones Lang LaSalle for technology sector leasing data. CBRE for commercial leasing activity Cushman & Wakefield for commercial rents and inventory. Audience Research and Analysis for 2013 tourism estimate.

IMAGE CREDITS photos courtesy of Silverstein Properties, Inc. - Cover, 3, 5, 14, 21, 36.38, 23-26 photos courtesy of Westfield Group - 4, 37 photos courtesy of Howard Hughes Corporation - 5, 17 photos courtesy of Metropolitan Transportation Authority - 4, 34, 23-26 photos courtesy of Century 21 - 30 photos courtesy of Brookfield Office Properties - 31 photos courtesy of Port Authority of New York and New Jersey - 23-26 Joe Woolhead - 8, 23-26 Marilynn K. Yee/The New York Times/Redux - 43 “Rite of Summer” photo courtesy of govislandblog.com - 32 Phillip Greenberg - 5, 10, 16, 44 Jaclyn Slimm - 5, 12, 13 Jennifer May (jennifermay.com) - Pages 4, 6

Writing & Editing Adam Fifield & Andrew Breslau - The Alliance for Downtown New York, Inc.

ART DIRECTION: Rogers Eckersley Design DESIGN: Bathsheba Parker - The Alliance for Downtown New York, Inc. 3

ADNY Annual Report, 2013

CONTENTS

p.16

p.10

Turn The Page: Lower Manhattan’s Moment Has Arrived

RENAISSANCE ON THE WATER

FROM WALL STREET TO WIRED STREET

p.12

p.7 A MESSAGE FROM THE CHAIR & PRESIDENT

p.18

LAUNCH : BUILDING A COMMUNITY OF INNOVATORS LM

LOCATION, LOCATION, LOCATION!

p. 32 A PLACE FOR EVERYONE

p. 30

THE METAMORPHOSIS OF LOWER MANHATTAN

THE RETAIL REVOLUTION

p. 38

FROM RENDERINGS T0 REALITY

A WORLD-CLASS DESTINATION

p. 36 ADNY Annual Report, 2013

p. 44

BOARD OF DIRECTORS

THE ALLIANCE FOR DOWNTOWN NEW YORK FINANCIAL STATEMENTS

p.23

p.46

p.40

YOU CAN GET THERE FROM HERE

p. 42 A YEAR OF SERVICE

ADNY Annual Report, 2013

A MESSAGE FROM THE CHAIR & PRESIDENT diligently to continue to advance the metamorphosis The moment has arrived. For the past 12 years, you of Lower Manhattan. Whether promoting the growth may have heard about the vast possibilities for renewal and of retail, nurturing commercial tenancy, boosting tourism, growth in Lower Manhattan. You may have read about the many extraordinary projects that could collectively alter the improving parks and green spaces, offering a free economic, social and cultural fabric of a place with a singular seven-day-a week bus service or providing public safety history and a tenacious spirit. You may have discerned these and sanitation services — we are dedicated to making the district a thriving and welcoming place for all. changes were afoot, but wondered when they would morph Collaborating with a broad range of partners in the from promised visions into bold reality. private sector and government, we help the district meet The answer is: right now. difficult challenges and seize pivotal opportunities. A remarkable transformation that has been unfolding We had the honor of working with Mayor Michael for more than a decade — often underground and behind fences — is now visibly taking shape. As $30 billion of public Bloomberg for 12 years to obtain many of our goals. His and private investment comes to fruition, Lower Manhattan leadership on a range of issues important to Lower Manhattan is deeply appreciated. We now look forward to a dynamic is moving from an era of promise and planning to an era of and creative relationship with New York City’s new leader, realization. As more and more businesses and residents Bill de Blasio. move south of Chambers Street — as the cross-section of In the past year, we embarked on several exciting initiatives companies and people becomes ever more dynamic and to capture the spirit of innovation that is enlivening the diverse — Lower Manhattan is fulfilling its potential as a neighborhood. We teamed up with a compelling array of modern, 24/7, 21st century central business district. stakeholders to kick off a major program called LaunchLM Signs of progress are everywhere — new office and residential towers, the proliferation of 1.5 million square to help cultivate a burgeoning new tech and creative feet of new retail, a surge in hotel construction, a stunning community. Our growing WiFi network provides 1.2 million waterfront renaissance, soaring student enrollment, a square feet of free coverage along Water Street between continual influx of residents, a tourism boom and a growing Whitehall and Fulton Streets; on popular neighboring side number and variety of firms making Lower Manhattan streets, including Stone Street and Front Street; and along their home. the East River waterfront and piers. At the World Trade Center site, an ambitious vision is To keep the streets cleaner and greener, we installed vividly materializing. One World Trade Center reached a 169 solar-powered trash cans and 16 recycling cans physical and symbolic peak last year when it was officially throughout Lower Manhattan. Called “Big Bellies,” the declared the tallest building in North America, standing at trash receptacles hold five times as much trash as regular 1,776 glorious feet. Another milestone came with the November containers and automatically compact the refuse when it opening of Four World Trade Center, a pioneering model of reaches a certain level; a GPS phone chip tells supervisors environmental sustainability. The dramatic winged form when a bag needs to be replaced. The Big Bellies are a green of the World Trade Center Transportation Hub emerged innovation. They have increased efficiency, reduced the from the construction site in 2013, a tangible testament to amount of bagged garbage and improved the appearance the many strides made in the last year. And in spring of 2014, of the area’s sidewalks. the much-anticipated National September 11 Memorial Lower Manhattan has weathered many storms Museum opened its doors. over its 400 years and has mastered the art of reinvention. Other major projects took significant steps this year, We stand poised to reap the benefits of a colossal commitment including the radical redevelopment of Brookfield Place, of financial capital, human labor and audacious optimism. the remaking of Pier 17, Westfield World Trade’s expansive The area’s next chapter brings unparalleled change and retail complex and the Fulton Center transportation hub. enthusiasm. Turn the page to find out more. The Alliance has championed the completion of Fulton Center and is thrilled to see it open its doors in June 2014. Through our research, advocacy, communications Jessica Lappin Robert R. Douglass and marketing efforts, we are proud to have provided President Chairman valuable support to each of these vital initiatives. The Alliance for Downtown New York is working 6

ADNY Annual Report, 2013

1 WORLD TRADE 1 CENTER WORLD May 10, 2013 TRADE CENTER

ADNY Annual Report, 2013

FROM WALL STREET TO WIRED STREET When you ask many people what comes to mind when they think of Lower Manhattan, two words often immediately tumble out: “Wall Street.” While banking and financial services remain an essential pillar of Lower Manhattan, the constellation of companies here is rapidly expanding. As more technology and media companies migrate south of Chambers Street, a new and vibrant community of innovators and creators is taking shape. Last year, the number of tech companies in the district grew by 24 percent, from nearly 500 in 2012 to more than 600 today. Total leasing among tech companies in Lower Manhattan grew from 180,000 square feet in 2011 to 351,000 in August 2013, a 95% jump. But it’s not just start-ups — big creative firms, including publishing titans Condé Nast and Harper Collins and a subsidiary of Macmillan Publishers will all soon make Lower Manhattan their home. To chronicle and explain the district’s burgeoning tech community, the Downtown Alliance released an original research report in October 2013: A Surge of Bits and Bytes: the State of Tech and Innovation in Lower Manhattan. Among other conclusions, the report found that the rise of tech downtown was spurred by affordable rents, a plethora of transit options, tech-friendly buildings with adaptable floor plates and a premier broadband infrastructure.

Whether providing analysis on tech, real estate, retail or other trends, the Downtown Alliance is the go-to resource for information about Lower Manhattan. Our research division issues regular reports, providing timely, in-depth data that promotes the district and helps a diverse spectrum — everyone from real estate brokers to entrepreneurs to those in the public sector — make crucial decisions in a rapidly evolving marketplace. Our efforts to support the growing tech sector do not stop there. Teaming up with a broad group of professionals, the Downtown Alliance is working to nurture this burgeoning industry and to stoke a surging spirit of entrepreneurialism and innovation. Last year, we developed a community-based initiative called LaunchLM that is uniting current and future creative

Tech leasing in Lower Manhattan increased dramatically between 2011 and 2013.

400,000 SF

250,000 SF

50,000 SF Source: Jones Lang LaSalle

2011

2012

2013

600+

A small sampling of the tech, advertising, media and information companies in Lower Manhattan.

Technology Companies

and technology companies to collaborate, share resources and ideas and forge new possibilities. The Downtown Alliance is also dedicated to making Lower Manhattan fully connected, from curb to cube. In September 2013, then Mayor Bloomberg announced that the Downtown Alliance was awarded a grant to dramatically expand its free WiFi network along the Water Street corridor. The project, funded by the New York City Economic Development Corporation’s Wireless Corridor Challenge, is creating 1.2 million square feet, or 27.5 acres, of new wireless coverage. Lower Manhattan’s appeal to innovators and creators is driven by a palpable sense of excitement that pulses throughout the district — an undeniable feeling of being at the center of where things are happening.

STACK EXCHANGE OFFICE

ADNY Annual Report, 2013

LAUNCHLM: BUILDING A COMMUNITY OF INNOVATORS everything from cybersecurity and “ethical hacking” to the intersection of tech and media. These events — plus meet-ups, parties, happy hours and “Tech Tuesdays” held at the Seaport— are unique opportunities for marketing, networking, creating partnerships and sharing resources. The initiative’s website, LaunchLM.com, serves as the program’s digital hub and features profiles of Lower Manhattan innovators; highlights details on workspaces, parks, restaurants, nightlife and events; and provides a myriad of ways to get involved with Lower Manhattan’s tech community. LaunchLM is headquartered at the Hive, the Downtown Alliance’s co-working space at 55 Broad Street. Dan Chiu, LaunchLM leadership council member and founder of digital strategy firm HD Made, has big aspirations for the endeavor. “The dream would be that Lower Manhattan becomes the first place technology and media companies think about when they’re looking for office space — that this is the place they want to be,” says Chiu. For many, it already is.

TECH TUESDAY EVENT

How can you create a community if you don’t know who your neighbors are or where your neighbors are? LaunchLM is providing an answer to that question. Developed by the Downtown Alliance in collaboration with a group of technology, venture capital, urban planning and real estate professionals, LaunchLM aims to connect and support the growing tech community in Lower Manhattan. The new program positions Lower Manhattan as an entrepreneurial laboratory of sorts — a testing ground for new ideas and models of collaboration among the city’s pioneering tech companies. “Innovation has become part of the fabric of the district,” says Scott Anderson, a partner at Control Group and a member of the LaunchLM leadership council. “As a tech entrepreneur in the district, it’s exciting to know that I’m surrounded by a strong and vibrant group of like-minded people from a variety of industries.” Convening some of the world’s leading technology experts, LaunchLM hosts lectures and panels on

TECH TUESDAY EVENT

ADNY Annual Report, 2013

1 WORLD TRADE CENTER CITY HALL May 10,PARK 2013

ADNY Annual ADNY AnnualReport, Report, 2013 2013

ADNY ADNY Annual AnnualReport, Report,2013 2013

RENAISSANCE ON THE WATER

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Forget everything you knew about Pier 17. The Howard Hughes Corporation held a groundbreaking ceremony in October 2013, marking the beginning of the reinvention of this popular site. Rising on the pier will be a new, 365,000 square-foot, glass-clad building with a diverse mix of new retail and dining. There will be a 1.5-acre rooftop deck and amphitheater that will hold up to 4,000 people for outdoor concerts. The new Pier 17, scheduled to be finished in 2016, promises to be a singular New York experience. The Howard Hughes Corporation has launched SEE/CHANGE, an ongoing cultural and entertainment program to enliven the surrounding neighborhood. In 2013, SEE/ CHANGE featured an outdoor film series, a spin-off of Brooklyn Flea called SmorgasBar, a German biergarten and an ice skating rink.

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ADNY Annual Report, 2013

food tastings, fitness classes and much more. Our work along Water Street is rooted in two years of intense research and consensus-building that seeks to create a new identity for this important corridor, foster activity and steward public and private reinvestment in the area.

TERR

EAST RIVER WATERFRONT ESPL ANADE

Pier A. Work started last year on a 40,000-square foot restaurant complex named “Harborhouse at Pier A,” which is set for completion in 2014. The restaurant will bring Lower Manhattan residents, workers and visitors alike a biergarten, oyster bar, 100-seat fine dining restaurant, outdoor promenade, gallery space and music venue. Just 800 yards from Manhattan, Governors Island is one of New York’s great outdoor experiences. A former military base, the island is undergoing an extensive renovation. In May 2014, New Yorkers can explore 30 acres of new parks as well as a 92-acre historic district featuring the island’s original buildings. For the first time ever, the island will be open seven days a week (with an expanded ferry service). To promote the revitalization of the East River waterfront, the Downtown Alliance has worked for many years with many partners to invigorate the Water Street Corridor. We assisted New York City’s Department of Transportation in developing and implementing streetscape improvements, including two new pedestrian plazas at Gouverneur Lane and Coenties Slip and an expansion of the Water-Whitehall Plaza. We also supported and promoted “Water Street Pops!”, a series of special events and activities in Water Street’s privately owned public spaces (POPS), including outdoor music,

RIVER

New Yorkers are being reintroduced to the grandeur of Lower Manhattan’s waterfront. A flurry of change is sweeping along the edges of the Hudson and East Rivers on Manhattan’s southern tip. The remaking of the waterfront took several big steps last year — from the groundbreaking of Pier 17 at the South Street Seaport (see story on accompanying page) to the completion of the Lower Manhattan section of the East River Waterfront Esplanade. The $165 million esplanade runs from the Battery Maritime Building to Pier 35. In Lower Manhattan, it has created a flowing, scenic, easy-to-use public space with bikeways, pedestrian paths, a raised viewing platform and a pier with restaurants, ice cream stands and other offerings. Connecting the esplanade to the Hudson River is a bikeway in Battery Park, being built by the Battery Park Conservancy; the first phase opened in spring 2014. At one end of the esplanade is the Battery Maritime Building, where a major, $150 million project by developers Dermot Group and the Poulakakous family began construction in 2013. The site will feature a 61-room boutique hotel with a 10,000-square-foot rooftop bar and restaurant sitting atop the existing ferry terminal. The Dermot Group and Poulakakous family are also teaming up with the New York City Economic Development Corporation and the Battery Park City Authority on another big renovation at the long derelict

Staten Island Ferry

ELLIS ISLAND

GOVERNORS ISLAND

STATUE OF LIBERTY

GET CONNECTED HERE The Alliance for Downtown New York’s WiFi network provides 1.2 million square feet of free coverage — along Water Street between Whitehall and Fulton Streets; on popular neighboring side streets, including Stone Street and Front Street; and along the East River waterfront and piers. It is our effort to create a seamless, unbroken sea of connectivity — from curb to cube and classroom. Use your computer, tablet or smartphone to log on to the network, named “#DwntwnAllianceFreeWifi.” Wilmer Cutler Pickering Hale and Dorr LLP (WilmerHale) has provided pivotal support for the growth of the Downtown Alliance’s WiFi Program. ADNY Annual Report, 2013

LOCATION, LOCATION, LOCATION! Lower Manhattan’s increasing commercial appeal is undeniable: new businesses want to start here and existing ones want to move here. This is the place to be. As a host of new and dynamic companies — from Harper Collins to Condé Nast to Revlon to Droga5 — join the ranks of long-established firms in Lower Manhattan — like Goldman Sachs, American Express and Moody’s Corporation — the area is realizing the vision of a cutting-edge, energetic, diverse 24/7 central business district. A vibrant mix of businesses, retail, bars and restaurants has helped spur the neighborhood’s budding evolution, infusing Lower Manhattan with new life and new possibilities. Commercial leasing escalated throughout 2013, ending with the best-performing 4th quarter since 2006 and more than double the five-year average. Yearend leasing activity topped out at a 39% increase over 2012. The robust leasing was fueled, in part, by tenants absorbing large blocks of space. Three of the city’s biggest property deals last year took place within the district. The biggest relocations in Lower Manhattan were

Leasing by Industry 2013

in Creative Services, Media and Advertising and included GroupM Worldwide, which signed a lease to move from Midtown to a 515,000-square-foot space at Three World Trade Center. Technology leasing in Lower Manhattan was up 122% over 2012. The opening of Four World Trade Center last year added 2.3 million square feet of new office space to the market, with nearly half pre-leased to the Port Authority of New York and New Jersey and the NYC Human Resources Administration. Despite new space coming online at a rapid clip, the vacancy rate has remained stable. More importantly, the demand for new office space is robust. Part of the allure: pricing in Lower Manhattan remains extremely competitive — overall asking rents were $14 less per square foot than Midtown South and $21 per square foot lower than Midtown over the course of 2013. The Downtown Alliance actively supported commercial tenancy in Lower Manhattan by, among many other things, providing a strong voice on the extension of leasing incentives. Assembly Speaker Sheldon Silver has long championed these tax breaks — which are vital to the health and growth of the district — and Governor Cuomo recently signed them into law. To attract and retain businesses in Lower Manhattan, the Downtown Alliance also offers customized information for specific companies. And we provide technical services, including our retail opportunities map, our online incentives calculator and pedestrian counts for key locations. As Lower Manhattan’s chief information clearinghouse, the Alliance produces a comprehensive collection of in-depth analysis, news and promotional materials — everything from electronic newsletters to maps to online market reports to original research (See panel on opposite page for a sampling of our collateral).We also highlight the district’s appeal for businesses with smartphone apps, email alerts and regular features on our website and social media channels. There are many rooftops in Lower Manhattan, and we are prepared to shout from all of them.

310,000 86 SQ. FT. Employees in Lower Manhattan

The Downtown Alliance regularly produces a wide array of collateral — everything from maps to a shopping and dining guide to original research reports that support the retail sector in Lower Manhattan.

MILLION

of office space in Lower Manhattan

Source: CBRE

ADNY Annual Report, 2013

LOWER MANHATTAN VIEW

ADNY Annual Report, 2013

29 21

4 WORLD TRADE CENTER

Excavation and foundation work

By April 2010, the steel frame

In February 2012, the building

Four World Trade opened in November

began in February 2008.

for the lobby was completed.

reached the 56th floor.

2013, the first building on the World

2.3

Four World Trade Center was designed Trade Center site to be completed.

by Japanese architect Fumihiko Maki,

100%

who strove to create a “minimalist tower” with a quiet dignity. He first

977

unveiled his conceptual design for the building in September 2006.

3.1

million worker hours

million rentable square feet

of building’s power comes from renewable sources

2008

2010

2012

FULTON CENTER

The project broke

Construction reached ground

Construction of the oculus —

The oculus’ “sky reflector net” —

The center was set

The MTA’s Fulton Center was designed by ARUP and

ground in January 2007.

level in August 2010.

a resplendent, steel-glass dome

which will help redistribute

to open in June 2014.

— began in September 2011.

natural light — was completed

feet tall

Grimshaw Architects to be a major transportation nerve center and a grand civic space.

300,000

in June 2013.

Expected passengers each day

WTC TRANSIT HUB

2013

Subway lines accessible

65,000

2011

2013

Square feet of new retail and commercial space

2014

2007

2010

The project broke ground in

By October 2010, more than a dozen arches –

As of spring 2011, the steel installation

In March 2014, the first plat-

As of April 2014, the oculus began

September 2005.

known as “backspans” – were installed to form

for the PATH mezzanine level was

form of the new station was

to take its final shape.

the southern portion of the oculus.

nearly completed.

opened to the public.

The World Trade Center Transit Hub was designed by Spanish architect Santiago Calatrava, who sought to convey the idea of a bird taking flight.

150

2005

2010

2011

2014

11,000 tons of steel

2014

foot-high “wings” 23

ADNY Annual Report, 2013

1 WORLD TRADE CENTER STONE May 10, 2013 STREET

ADNY Annual Report, 2013

29 21

THE RETAIL REVOLUTION A burgeoning residential population, strong tourism, rising student enrollment, unprecedented spending power, an unmatched and expanding transit network, an increasing and varied array of office tenants and 1.5 million square feet of new or repositioned retail coming online by 2016 — all of this adds up to one undeniable fact: A retail revolution is sweeping Lower Manhattan. Most New Yorkers are, of course, familiar with Century 21 department store — a storied city institution and must-see for any visitor to Lower Manhattan. The district is also home to more than 1,000 stores and restaurants that offer a multitude of great food and shopping options. Joining them are several marquee retail developments underway at Westfield World Trade Center, Brookfield Place, Fulton Center and the South Street Seaport. These major projects will usher in a host of new stores and restaurants, dramatically complementing and reshaping the retail landscape south of Chambers Street. That landscape is already changing before our eyes. A total of 83 new stores and restaurants opened in 2013, an 8% increase over 2012. 2014 promises even more. When the new space hits the pipeline, Lower Manhattan’s identity as a regional and international shopping destination will be indisputable. The Downtown Alliance vigorously supports retail development and works to nurture foot traffic throughout the district. We distributed 45,000 copies of our 2014 Lower Manhattan Shop Dine Guide last winter to promote area stores, restaurants, bars and cafés. Our annual holiday campaign — which is featured prominently throughout the neighborhood on outdoor newsstands, bus shelters, subway displays and PATH trains, as well as in print and digital advertising — encouraged everyone to take advantage of the growing menu of eating and retail options Lower Manhattan has to offer. We developed and distributed a new multilingual visitors’ guide and completely redesigned the “Plan Your Visit” section of our website to make it more visually appealing and easier to navigate. We also continued our “Downtown Deals” program, a free service that supports area retail and restaurants by allowing them to post and promote deals on our website. To spread the word beyond New York City, we attended two major industry conferences and highlighted retail development and investment opportunities through our membership in the International Council of Shopping Centers.

$5.2 BILLION in annual spending

The roots of Lower Manhattan’s retail revolution began at Century 21. The bustling department store on Cortlandt Street is a Lower Manhattan legend famous for its vast array of discounted designer merchandise. First opening in 1961, the flagship Manhattan store quickly became a worldwide shopping destination. And it is still hopping, drawing throngs of residents, workers and tourists alike.

ADNY Annual Report, 2013

Brookfield Place, formerly The World Financial Center, is being completely reinvented and will feature a host of dynamic and cutting-edge retail possibilities: Michael Kors, Hermès, Calypso St. Barth, Salvatore Ferragamo, Judith & Charles, Scoop and Zegna. Hudson Eats, an upscale dining terrace overlooking the Hudson River, will feature fast-casual meals at chef-driven eateries, including: Blue Ribbon Sushi, Umami Burger, Dos Toros Taqueria, Chop’t, Dig Inn, Num Pang, Skinny Pizza, Sprinkles, Little Muenster, Mighty Quinns, Tartinery, Olive’s and Black Seed Bagels. The redeveloped Brookfield Place will also offer a spectacular series of arts and cultural events as well as a 25,000-square-foot French food marketplace called “Le District.” Diners will also find six notable restaurants, including Parm and Rosa Blanca. The site will open in 2014.

Opening in 2015, Westfield World Trade Center is positioned to be a magnetic new destination, featuring an exciting mix of 150 of the world’s most sought-after fashion, lifestyle and technology brands. It will also offer a rich collection of dining opportunities and guest experiences. Anchored by The Oculus, designed by world-renowned architect Santiago Calatrava, Westfield World Trade Center will feature a sweeping, 350,000-squarefoot world-class space, with a major street-level presence along Church Street, Cortlandt Way and Dey Street.

ADNY Annual Report, 2013

A PLACE FOR EVERYONE More and more New Yorkers are arriving at the same conclusion: Lower Manhattan is not just a great place to work or visit or go out — it is an ideal spot to put down roots. The area’s residential population has doubled over the past decade and continues to grow. An estimated 61,000 residents called Lower Manhattan home in 2013, spanning a wide demographic — hip, young singles; couples and families; and empty nesters looking to enjoy their golden years. Highly educated, affluent and well-traveled, Lower Manhattan residents have shown a strong commitment to the area. Many who moved here as renters ended up buying homes. The district is becoming increasingly family-oriented, with more and more couples and households with children. Lower Manhattan’s baby boom has helped spark a rise in private primary and secondary schools. Education is, in fact, a top priority for all ages. On average, 85 percent of all residents have a college degree. The area has recently seen a big influx of students

at higher education institutions. The Downtown Alliance’s original research report, The Growth of Higher Education in Lower Manhattan, revealed that annual leasing to higher education tenants below Chambers Street increased by 82 percent since 2004, and student enrollment has nearly doubled since 2006, surging from 27,000 to almost 50,000. The expansion of higher education is affecting Lower Manhattan in many ways — fueling leasing, spurring a diversification of the local economy, contributing to residential growth, attracting a new cache of retailers and bringing ambitious young men and women to study and reside here. To continually enhance the quality of life for residents, students, visitors and workers, the Alliance ensures that Lower Manhattan’s public spaces are appealing and welcoming to all. Last year, our operations team maintained five parks (Bowling Green Park, Mannahatta Park, Edgar Park, Trinity Park/Plaza and Coenties Slip Park) and four pedestrian plazas (WaterWhitehall Plaza, Coenties Slip Plaza, Gouverneur Lane

Plaza and Washington Street Plaza). This included installing 4,050 new plantings and caring for 78 tables and 234 chairs. Our “Green Around Lower Manhattan” series featured four separate seasonal events with 700 attendees. We gave out more than 4,000 free geraniums to workers and residents during our annual “Adopta-Geranium” event in the fall. At our fall community planting, residents helped plant thousands of tulips at Bowling Green Park. In the spring, hundreds of volunteers planted more than 300 annuals at Mannahatta Park. At an E-waste recycling event we sponsored that was organized by the Lower East Side Ecology Center, residents discarded unwanted electronic devices. We know that keeping Lower Manhattan’s public spaces verdant and beautiful is a top priority for all who live here, and we actively promote their preservation and expansion. In the summer of 2014, everyone will be able to enjoy one of New York’s most spectacular outdoor experiences, Governors Island, seven days

a week. Pictured below, the island is just 800 yards from Lower Manhattan. We also recognize that, for many, the choice to live in Lower Manhattan is not just about convenience or cost or proximity to great restaurants, stores and cultural attractions — it is an intense loyalty and intrinsic sense of community that only grows stronger the longer you live here. It is this special quality we must all protect.

52,000 47,000 42,000 37,000 32,000 27,000 22,000

2008

2013

Lower Manhattan’s Higher Education Enrollment

GOVERNORS ISL AND

ADNY Annual Report, 2013

FULTON CENTER

ADNY Annual Report, 2013

TRANSIT OPTIONS:

YOU CAN GET THERE FROM HERE

12 30 6

Subway lines

By train, by bus, by boat, by bike, or by foot — getting to, from and around Lower Manhattan is becoming easier and faster. A wide-ranging, regional, multimodal transit system — with twelve subway lines, 30 bus routes, six ferry terminals, the PATH train, 25 Citi Bike stations and the Downtown Alliance’s free Downtown Connection bus service — makes Lower Manhattan an optimal location for workers, residents, students and visitors. It also puts the district in close proximity to some of the region’s fastest-growing and most talent-rich communities; eight out of the top 10 communities with the greatest population growth in college-educated adults are within a 30-minute subway or PATH ride of Lower Manhattan. This vast network continues to expand, matching the area’s intensifying growth. A total of $5 billion worth of new transit infrastructure is coming online in 2015, including two new transit hubs at the redeveloped World Trade Center and Fulton Center. Lower Manhattan will also be linked to the world: the Port Authority of New York and New Jersey has approved $1.5 billion in funding for an extension of the PATH train to Newark Liberty International Airport. This will mean a single train ride from Manhattan to a major international airport, dramatically increasing the ease and value of doing business in Lower Manhattan. The seamless, 2-mile extension will also spur economic development throughout Lower Manhattan, New York City and northern New Jersey. The Downtown Alliance was an early and vigorous supporter of enhanced airport access for Lower Manhattan. We are committed to increasing mobility and convenience for all of our constituents. Our free bus service, the Downtown Connection, runs seven days a week and links South Street Seaport and Battery Park City. The buses stop at 37 key points around the perimeter of Lower Manhattan. Last year, the Alliance introduced seven new wheelchair-accessible, state-of the-art buses, and total ridership reached an estimated 700,000.

bus routes

ferry terminals & 13 routes

PATH routes to NJ

WORLD TR ADE CENTER TR ANSPORTATION HUB

ADNY Annual Report, 2013

Downtown Connection buses

Citi Bike Stations ADNY Annual Report, 2013

A WORLD-CLASS DESTINATION

SOUTH STREET SEAPORT

ADNY Annual Report, 2013

number of hotels is expected to nearly double, with 18 in the pipeline, seven of which will open in the next year. Promoting and sustaining tourism is a top priority for the Downtown Alliance. We printed and distributed 500,000 maps for visitors last year, in addition to a range of other collateral, and operated tourism kiosks throughout Lower Manhattan. Our “Red coats” are 24/7 ambassadors around the district. At the 2013 U.S. Travel Association IPW trade show, we supported the district’s tourism industry by meeting with international tour operators to advocate for the development of tour packages focused on Lower Manhattan. We also continue working with national and international media to call attention to the district’s growth, spirit of resilience and top-notch cultural attractions. INVENTORY & PROJECTED GROWTH IN HOTEL ROOMS IN LOWER MANHATTAN PROJECT ED

8,000

Number of Hotel Rooms

For the millions of tourists flocking to Lower Manhattan each year, there is one urgent question — where do I begin? The National September 11 Memorial? The Statue of Liberty? Ellis Island? The New York Stock Exchange? Federal Hall? Governors Island? As the number of visitors to the district grows, the panoply of premier downtown attractions, museums and cultural landmarks is only becoming richer. In May, the National September 11 Memorial Museum opens its doors at the World Trade Center site. The National September 11 Memorial, just steps away, has drawn more than 11 million visitors since it began operating in September 2011. Coming in early 2015, the 120,000square-foot observation deck at One World Trade Center will offer unbeatable, panoramic views 1,250 feet in the sky. The square mile at Manhattan’s southern tip is also steeped in history — stories going back hundreds of years echo through the neighborhood’s winding streets. One of them, Stone Street, offers residents and visitors alike a relaxed and convivial atmosphere for outdoor dining on cobblestone streets. Classic architecture, extraordinary harbor views and a host of museums all add to the allure of a dynamic place with an intimate link to our nation’s past and our city’s future. The hospitality industry is racing to keep pace with the growth of tourism in Lower Manhattan. Ten years ago, there were six hotels in Lower Manhattan; now there are 18, with 4,100 rooms. Over the next two years, the

7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

2006 2007 2008 2009 2010

2011

2012

2013

2014

2015

2016

Source: The Alliance for Downtown New York

NATIONAL SEPTEMBER 11 MEMORIAL AND MUSEUM

ADNY Annual Report, 2013

STREET

W O R K R A

PEARL

DGE ET

EET

RE SL

PEA

ET E

EET

D S L

R D R

East River Ferry

H UT

Seastreak

VIETNAM VETERANS MEMORIAL PLAZA

EAST RIVER

N,R

NY Waterway N

E P

D S LIP

EET STR NT

IVE

PINE

STR

Pier 11

PEA

W H

LAN

Pier 16 ET

EET

DEN

STR

Pier 17 (closed for redevelopment during 2014)

EET

TER

STR

PINE STREE T

TCH

STREET

ET RE ST

R STR E

SOUTH STREET SEAPORT

FRO

WILLIAM

CEDA

RE G ID

P R

ST RE

Statue Cruises

BRI

R S T

IF CL

EET

MAI

E ON

L BATTERY PARK

BAT TERY MARITIME BUILDING

STR

EET STR GOL

WILLIAM

STREET

STR

FLE

ST D

W O R K

DUTCH

D EL

Tickets to Statue of Liberty & Ellis Island

Pier A

PLA

OA FI

ANG

RTY

ROBERT F. WAGNER, JR. PARK

A PL

STRE

Y ER

A BE

Completion in 2014/2015

ICH

BAT TERY PARK RENOVATION

4,5

PLACE

J,Z

ENW

NGT

FIRST

SHI

PLACE

SECOND

2,3

NEW

MORRIS

WALL

MORRIS

GRE

SOUTH COVE

BATTERY

HUDSON RIVER

STREE

LIBE

4,5

PLACE

Completion in 2015

Governors Island Ferry

Staten Island Ferry

GOVERNORS ISLAND

ELLIS ISLAND

GOVERNORS ISLAND

Completion in 2014/2015

Daily service runs from 10 AM to 7:30 PM.

ADNY Annual Report, 2013

E THIRD

REE R 1S T O T C N,R E

JOHN

H EXC

Opening in June 2014

R P

THAMES

THAMES STREET

EAST RIVER WATERFRONT ESPLANADE

Y LE AL E

STREET

PLACE

STREET

EET

STR

WEST

2,3

OKL

N S TR

ANN STREET

J,Z

PLACE

CORTLANDT

TRINITY

ICH

Pedestrian Bridge

CEDAR

ENW

NGT

Opening in 2014

Completed in 2013

STREET

CARLISLE

HAMPTON INN

Hotel & Residential

GRE

SHI

70 PINE

RECTO

END AVENUE

Pier 17 Opening in 2015/2016

PIER A

Residential

H NY

ET TRE

Opening in 2014

ALBANY

B AT T E R Y PA R K CITY

A,C

NASSAU STREET

HOLIDAY INN (WORLD’S TALLEST)

BRO

FULTON STREET

BROADWAY

LIBERTY STREET CEDAR

DEY

4 WTC

Opening in July 2014

Hotels

STREET

Opening in 2014/2015

Open spaces

STREET

N,R

Pedestrian Bridge

A,C,E

TRANSPORTATION HUB

NORTH COVE

FRANKFORT STREET

3 WTC

SOUTH STREE T SEAPORT

Major development milestones

CITY HALL PARK

2,3

4,5

NY Waterway

N,R

2 WTC

Underground Pedestrian Passageway*

A ALB

MAP KEY

BROADWAY

BROOKFIELD PLACE

4,5,6

PLACE

1 WTC

BROOKFIELD PLACE

A LOOK AT WHAT’S CHANGING

WEST

National September 11 Museum Opening in 2014

4 World Trade Center Completed in 2013

Transpor tation Hub Completion in 2015 3 World Trade Center Completion in 2017

VESEY

TBD

PARK

BARCLAY

ADE

2 World Trade Center

STREET

LAN

Opening in 2015

STREET

MURRAY STREET

ESP

1 World Trade Center

ACE

WORLD TRADE CENTER

MURRAY

TRIBECA

TERR

& CORBIN BUILDING Opening in June 2014

WARREN

RIVER

FULTON CENTER

5 BEEKMAN STREE T

1,2,3

ROCKEFELLER PARK

CIVIC CENTER

CHAMBERS STREET

FOUR SEASONS HOTEL & RESIDENCES

Completion in 2015

The scope of change sweeping Lower Manhattan is dazzling. From Battery Park to Chambers Street, from the Hudson to the East River, the spirit of reinvention and renewal is everywhere. The impact of $30 billion in public and private investment made over the last decade is becoming visible in nearly every corner of this kinetic square mile at Manhattan’s southern tip. More residents and businesses are migrating south of Chambers Street, drawn by affordable rents, fantastic cultural events, top-notch stores and restaurants and an undeniable energy that courses through the streets.

J,Z

CHURCH STREET

Opening in 2014

Completion in 2016

STREET

WASHINGTON MARKET PARK

NORTH END AVENUE

THE METAMORPHOSIS OF LOWER MANHATTAN

READE

ALOF T HOTEL

STATUE OF LIBERTY

ADNY Annual Report, 2013

IN MEMORIAM: ELIZABETH H. BERGER (1960-2013)

A YEAR OF SERVICE When temperatures plummet — and everyone else rushes indoors — they stay outside. When snow piles up, they use shovels and snow-blowers and a collective determination to keep sidewalks clear. When litter lands on the asphalt, they sweep it up. And when crisis strikes — whether a lost child or a storm or a medical emergency — they are always there to help. The Downtown Alliance’s operations team makes Lower Manhattan a safe and welcoming place for all. Every day, at 5 a.m., our 56 sanitation officers start servicing the district. They empty 219 trash receptacles, including 169 solar-powered “Big Belly” garbage containers and 16 recycling receptacles. They clean up graffiti and repair street furniture. The Alliance’s 57-member public safety crew works closely with the New York City Police Department to keep crime rates in Lower Manhattan among the lowest in the city. They also return misplaced cell phones, provide helpful advice and directions to residents and visitors alike and intervene when someone is in harm’s way. Though they serve Lower Manhattan, the red-coated officers are known throughout New York City. They are our public face and perform a vital service that makes this district a better and brighter place every day.

ADNY Annual Report, 2013

QUICK THINKING & A CRISIS AVERTED The woman was distraught. At around 3:15 p.m. on Monday, October 14, 2013, near the intersection of Broadway and Wall St., she walked up to Downtown Alliance Safety Office Sylenya Price (pictured to the right). It was every parent’s nightmare — she had lost track of her son. She explained that the boy, who was autistic, had become separated from her when the doors of the southbound #4 train closed with him still on board. Price acted immediately, notifying dispatch and providing a description of the boy. Safety Officer Louie Soto (pictured to the left) was on bike patrol, when he heard the alert. He rushed to Bowling Green station, the next stop on the southbound train. Soto spotted a boy who fit the description and began speaking to him. He was soon reunited with his mother. Quick thinking on the part of these officers gave what began as a traumatic and fearful experience a happy ending.

IN 2013, THE ALLIANCE FOR DOWNTOWN NEW YORK…. Bagged & removed

Cleaned up

1,460

2,235

Handled ridership of

Made

on Downtown Connection buses

contacts with homeless individuals

incidents of graffiti

tons of litter

700,000

3,678

Logged

Installed

903,152

contacts between public safety officers & the public

Maintained

4,050

new plantings

Parks &

Plazas

Former President of the Alliance for Downtown New York Elizabeth H. Berger passed away on August 5, 2013, after a fight with pancreatic cancer. She was 53. A tenacious advocate for Lower Manhattan, her fierce love for this neighborhood shone through in everything she did. In her years as President, her influence was wide and considerable. “Liz Berger’s passion, sophistication and drive shaped Lower Manhattan as surely as any skyscraper or bulldozer,” said Alliance Board Chairman Robert Douglass. “Her strength as an advocate and strategist was only exceeded by her loyalty as a friend and her dedication as a mother and wife. She will be sorely missed.” Starting at the Alliance in 2007, she played a pivotal role in the reimagining and rebuilding of Lower Manhattan after the 9/11 attacks. In 2012, in the wake of Superstorm Sandy, she led a multifaceted effort to help Lower Manhattan businesses and residents recover and get back on their feet. Under her leadership, the Downtown Alliance was recognized not only as a creative and efficient provider of public services, but as a staunch and formidable advocate for the long-term interests of downtown. Renowned for her indefatigable energy and exacting intellect, she was driven by a vision of Lower Manhattan as a place teeming with vitality and potential. She is survived by her husband Frederick Kaufman, daughter Phoebe, son Julian, mother Anita and brother Gideon. Liz’s passion continues to inspire Downtown Alliance staff members every day. In her honor, the Alliance worked with the city to create a fitting tribute: renaming Edgar Plaza “Elizabeth H. Berger Plaza.” The park is now scheduled to be redesigned, expanded and filled with new plantings and life — all improvements for which Liz herself advocated for many years. ADNY Annual Report, 2013

The Alliance for Downtown New York Financial Statements

STATEMENTS OF ACTIVITIES June 30, 2013

June 30, 2012

15,774,950 3,750,024

13,000,000 3,323,243

$19,524,974

$16,323,243

3,404,653 4,229,156 2,354,837 3,323,308 1,912,887 696,765 1,539,883 21,691

3,123,129 4,505,482 2,794,783 2,123,720 1,912,156 707,152 1,561,349 17,612

$17,483,180

$16,745,383

$2,041,794

($422,140)

7,542,921 895,627 0 151,884 400,533

5,980,537 525,091 0 108,996 363,318

$8,990,965

$6,977,942

949,792 8,041,173

978,563 5,999,379

$8,990,965

$6,977,942

Support and Revenues Assessment Revenues Other Revenues

Total Revenues

Expenses Public Safety Sanitation Promotion and Marketing Economic Development Transportation Social Services Management and General Fundraising

Total Expenses Excess Revenues over Expenses

STATEMENTS OF FINANCIAL POSITION Assets Cash and Cash Equivalents Accounts Receivable Investments Property and Equipment Other Assets

Total Assets GEHRY BUILDING & POT TER BUILDING

Liabilities and Net Assets Liabilities Total Net Assets

Total Liabilities and Net Assets

Amounts are summarized from the audited financial statements provided by Skody Scot & Company, CPAs, dated October 29, 2013. 44

ADNY Annual Report, 2013

BOARD OF DIRECTORS

Dan Ackerman STAFF Alison Baumann

Robert R. Douglass, Chairman

Milbank, Tweed, Hadley & McCloy LLP

Honorable Bill de Blasio

Mayor, City of New York

David J. Arena

JPMorgan Chase & Co.

Peter Braus

Lee & Associates NYC LLC

Honorable Gale A. Brewer Manhattan Borough President

Harry Bridgwood

New Water Street Corporation

Mark E. Brooks

American International Group, Inc.

Thomas M. Hughes

Adam Bernstein

Richard T. Kennedy

Renee Braunstein

Resident Representative

Cushman & Wakefield, Inc.

Stephen Lefkowitz

Fried, Frank, Harris, Shriver & Jacobson LLP

John â&#x20AC;&#x153;Jannoâ&#x20AC;? Lieber

Catherine McVay Hughes

Chair, Manhattan Community Board No. 1

Ross F. Moskowitz

Stroock & Stroock & Lavan LLP

Cherrie Nanninga Dr. Antonio Perez Peter Poulakakos

John V. Connorton, Jr.

Ahead Realty/HPH

Charles C. Dorego

Brookfield Office Properties

K. Thomas Elghanayan TF Cornerstone

Mitchell E. Rudin William C. Rudin

Rudin Management Company, Inc.

Frank J. Sciame

David V. Fowler

F.J. Sciame Construction Co., Inc.

Rachelle Friedman

Deutsche Bank

The Bank of New York Mellon

J&R Music and Computer World

Stephen J. Friedman Pace University

Timur F. Galen

Goldman Sachs & Co.

Alan Scott

Michael A. Skidmore Skidmore Associates, Inc.

Allan G. Sperling

Cleary Gottlieb Steen & Hamilton LLP

Maria Torres-Springer

Robert J. Giuffra

Sullivan & Cromwell LLP

Commissioner, NYC Department of Small Business Services

Stanley E. Grayson

Honorable Scott M. Stringer

M.R. Beal & Company

Comptroller, City of New York

Francis J. Greenburger

Kent M. Swig

Time Equities, Inc.

Erik Horvat

Port Authority of NY & NJ

ADNY Annual Report, 2013

Mary Clifford

Ron Dizon

Trinity Wall Street

Betty Cohen

Glenwood Management Corp.

Stacy Chi

The Rev. Canon Anne Mallonee

Borough of Manhattan Community College

Hawkins Delafield & Wood LLP

Nancy Cascella

Joseph Curreri Sarita Dan

CBRE Group Inc.

Century 21 Department Stores

Andrew Breslau

World Trade Center Properties, LLC

Honorable Margaret Chin

Council Member, City of New York

Bill Bernstein Charles Bove

Swig Equities, LLC

Jessica Lappin, President

Tom Dunn Arlene Egan Margarita Fernando Adam Fifield Teresa Figario Rebecca Fontanez Danny Giacomazza Jeannie Gonzalez Jarrod Grim Hans Guillaume Shadendra Harris Dave Harvin Sean Hayes Carl Homward Eddie Hudson Dwayne Jacobs Stephanie Jennings Ron Kearney Michael Ketring Joe Lanaro Jessica Lappin Nicole LaRusso James McHugh Bathsheba Parker Roe Pernice Taina Prado Craig Raia Anthony Rivetti Christine Sapienza Jeremy Schneider Richard Serrano Fred Sham Daria Siegel Jaclyn Slimm Joseph Timpone Maria Tirado-Quinones Anja Vojvodic Ron Wolfgang Jane Wolterding

IMAGE CREDITS photos courtesy of Silverstein Properties, Inc. - Cover, 3, 5, 14, 21, 36.38, 23-26 photos courtesy of Westfield Group - 4, 37 photos courtesy of Howard Hughes Corporation - 5, 17 photos courtesy of Metropolitan Transportation Authority - 4, 34, 23-26 photos courtesy of Century 21 - 30 photos courtesy of Brookfield Office Properties - 31 photos courtesy of Port Authority of New York and New Jersey - 23-26 Joe Woolhead - 8, 23-26 Marilynn K. Yee/The New York Times/Redux - 43 â&#x20AC;&#x153;Rite of Summerâ&#x20AC;? photo courtesy of govislandblog.com - 32 Phillip Greenberg - 5, 10, 16, 44 Jaclyn Slimm - 5, 12, 13 Jennifer May (jennifermay.com) - Pages 4, 6

Writing & Editing Adam Fifield & Andrew Breslau - The Alliance for Downtown New York, Inc.

ART DIRECTION: Rogers Eckersley Design DESIGN: Bathsheba Parker - The Alliance for Downtown New York, Inc. ADNY Annual Report, 2013

Alliance for Downtown New York, Inc. 120 Broadway, Suite 3340 New York, New York 10271 The mission of the Alliance for Downtown New York is to provide service, advocacy, research and information to advance Lower Manhattan as a global model of a 21st Century Central Business District for businesses, residents and visitors.

www.DowntownNY.com 1

ADNY Annual Report, 2013