TESTIMONY
by Kathryn Wylde, President & CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
June 21, 2004

PDF 85K

New York State Assembly Hearing Governor's Legislation to Expand the Javits Convention Center

Good morning Chairman Brodsky, Chairman Stringer, members of the Assembly. Thank you for the opportunity to speak in support of the very important legislation authorizing expansion of the Jacob K. Javits Convention Center.

The Partnership for New York City, which represents major employers and business leaders, has advocated the expansion of the Javits Center for a dozen years. In our view, there is no single investment that would generate as much direct benefit for the city economy as the development of a competitive convention center. We believe an expanded Javits Center is essential if New York City is to retain its role as a tourism and convention center.

The travel and tourism industry is critically important for New York – second only to financial services. The city economy lost more than $7B attributable to this industry as a result of the terrorist attack of 9/11. The impact of this loss has been a catalyst for moving quickly with the convention center expansion project as a key component of our economic recovery from 9/11.

Unlike other cities, New York is a destination of choice for conventions and meetings – so long as we can accommodate them. We presently have a severe handicap due to the size and lack of versatility of our convention facilities. Sixty-three of the largest conventions are unable to come to New York because Javits is too small. In contrast to centers in other cities, Javits has more demand than it can meet and must turn away business.

We realize the legislative clock for this year has almost run out. But authorization of the Javits expansion is critical this year. The stars are aligned in terms of industry, labor and community support for the proposed construction, including a hotel tax. The EIS and ULURP for a West Side Plan that is anchored by the Javits expansion will be completed in the next nine months.

We are particularly concerned about the provision in the proposed legislation that establishes design-build authority for the Convention Center Development Corporation. Based on our experience with public-private partnerships in the affordable housing industry, the Partnership strongly recommends this approach to public construction. Design-build helps ensure that a project is completed on time and within budget because the private developer-builder assumes significant construction and financial risk. Design-build is being used by more and more public agencies across the country, with savings running as high as 25%.

Under design-build, the public agency does a portion of the design specifications, then lets the construction company building the project complete the rest. For a major project like Javits, use of design-build is crucial. It will bring private-sector efficiency to an important public project. And that will help reduce cost overruns, eliminate project delays, and save the state money.

Moreover, design-build projects attract high quality construction firms and, in a union town like New York, our most experienced and responsible firms use union labor. Using design-build is not a mechanism to avoid union labor; rather, it virtually guarantees that union labor will build this much-needed project.

This morning, we attended an initial briefing on the completed EIS for the West Side development. During the coming months, through the ULURP process, there will be plenty of opportunity for public review and comment on the various aspects of the West Side plan. But once this legislative session ends, there will be no opportunity until 2005 for the approvals required for Javits expansion to be put in place. Work on this project will cease, as other elements of the plan move forward. We trust you will not allow this to happen.

The essential elements of the Javits legislation, as amended in the past few days, are straightforward and should lend themselves to speedy approval. The Partnership generally supports the comprehensive redevelopment plans that the Governor and Mayor have endorsed for the West Side, including rezoning for commercial and residential development, extension of the 7 line, and the construction of a multipurpose stadium facility. We believe, however, that legislation authorizing Javits expansion can go forward independent of other components of the plan. We hope you will make the extraordinary effort that is required to make this happen before this session ends. Thank you for convening this hearing on an emergency basis.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.