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Freelance architecture and design consultants the wave of the future?

In the “old days,” a firm might turn down a project because it didn’t have the necessary staff to handle it properly. Today, firms can maintain a lean staff in lean times and hire freelance consultants when business picks up. In the process they can hire people with the particular skills needed for particular jobs.

Architecture is not the only profession turning more and more to freelance employment. One study finds the number of temporary hires almost doubled in a recent four-year period – over 10 percent of them skilled technicians or professionals.

In fact, a growing number of young architects see freelancing as a fast-track means to getting ahead.

Instead of working on just one type of project or one aspect of design, freelancers acquire varied experience. The goal is to land permanent positions at a higher level more quickly than by remaining on one job for a given period of time.

Assuming that architectural firms will become accustomed to the freelance concept, this type of employment will grow as the demand for new projects returns to pre-recession levels.

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City Council committee backs NYU expansion

A New York City Council committee has approved a modified version of a plan  to add four new buildings to New York University in Greenwich Village.

The Land Use Committee voted 19-1 Tuesday in favor of a  1.9-million-square-foot expansion plan.

The proposal was reduced about 20 percent since it was presented to a public  hearing on June 29.

NYU Senior Vice President Lynne Brown said the plan will help New York City  remain economically vibrant.

Council member Margaret Chin, who represents the district, said NYU made  significant concessions in its modified proposal.

But Andrew Berman of the Greenwich Village Preservation Society called the  downsizing a drop in the bucket.

The full City Council vote is expected on July 25.

Via NY Post

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After 40 years, huge project gets 1st green light

Community Board 3 voted in favor of a plan to turn seven city-owned acres just south of the Williamsburg Bridge into a 1.7 million-square-foot mixed-use development.

After more than 40 years, the massive Seward Park Mixed-Use Development Project in the Lower East Side moved one important step closer to becoming a reality Tuesday evening when Community Board 3 unanimously voted in favor of the plan.

The project calls for turning five fallow city-owned lots, totaling seven acres and lie just south of Delancey Street near the Williamsburg Bridge, into a 1.65 million-square-foot mixed-use development made up of 40% commercial and 60% residential. The residential portion of the development will be comprised of roughly 900 apartments, half of which will be affordable. All together this would be one of the biggest redevelopment projects in Manhattan on city-owned land in years.

The community board approved the plan under the condition that the affordable housing be permanent instead of just for 30 to 60 years as had been suggested earlier. The city agreed to the stipulation. Affordable housing has been a major stumbling block for the project in the past. Previously, many in the community insisted that 100% of the apartments be affordable. Most now accept that some market rate apartments are needed to make the project financially feasible.

The vote is just the first step in a complex public approval process, known as the Uniform Land-Use Review Procedure, which is expected to be completed in the fall. The City Council and mayor have the final approval. If the project is given the green light, the next step would be for the city to issue a formal request for proposals to find a developer to take on the project.

“Over the course of the last three years, it has been made abundantly clear that the issue of permanent affordability was one of, if not the, highest priority for this community board and Lower East Side residents,” said City Councilwoman Margaret Chin, who represents the area, in a statement.

Aside from affordable housing, the community was also very concerned about remaining actively involved in the Seward Park development.

“Last week, the city agreed to create a task force to ensure that this community remains involved as this process moves forward,” said Ms. Chin. “This unprecedented move by the city will ensure that your voices continue to be heard in the request for proposals process and beyond. In addition to providing oversight and accountability, this task force will work to ensure that affordable housing is built and that is it built first.”

While the issues over affordability and community involvement have been settled for now, new concerns have emerged. Some residents would like to see a school added to the development and others would like to make sure that the retail space will not go to a big-box store.

The plan will now move to Manhattan Borough President Scott Stringer for his review and recommendations.

Source
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‘Provocative’ proposal made for new bus garage

Developer Larry Silverstein is said to have offered a way to to build and pay for a facility in back of the Port Authority Bus Terminal. Guess what’s in it for him.

On Tuesday, Port Authority of New York and New Jersey Executive Director Patrick Foye told a Crain’s Breakfast Forum about an idea proposed by developer Larry Silverstein to build and pay for a much-needed Manhattan bus garage. Mr. Foye called it “interesting, provocative,” but he offered no details.

A source said the idea, floated during last year’s leadership transition at the Port Authority from Christopher Ward to Mr. Foye, involves developing a site on West 39th Street and Dyer Avenue used most recently by Mercedes-Benz by the service road that funnels traffic to and from the Lincoln Tunnel just southwest of the Port Authority Bus Terminal.

Mr. Silverstein, who has a long-term letter of intent with the owner to develop that building, proposed constructing a bus garage capped by a residential tower.

Unanswered questions include how big the tower would have to be to generate sufficient income to finance the construction of the garage, and whether anyone would want to live on top of a bus garage in the heavily trafficked area. It also remains to be seen how much the Port Authority would pay.

Certainly, the idea of the Port Authority doing business again with Silverstein Properties presents political hurdles given the two entities’ complex relationship at the World Trade Center site. The developer declined to comment for this article.

On the plus side, a bus garage-cum-residential complex would solve a number of thorny logistical problems for the agency, which abandoned a bus garage development for lack of funds.

Because there’s no room inside the bus station and nowhere else to park, hundreds of New Jersey Transit buses return empty to the Garden State after dropping off morning commuters in Manhattan. They come back to the city to pick up passengers in the afternoon. A bus garage nearby would cut down on trans-Hudson River traffic, reduce air pollution and save money on fuel.

Part of the savings could be used by the Port Authority to lower terminal fees for short-haul intercity buses, including discount carriers that are under fire for using city sidewalks to load and unload passengers. Bus companies that use the terminal have already threatened to leave because they pay millions of dollars in rent and say free curbside parking for their competitors is unfair.

State legislation would actually allow the city to issue permits for private buses to pick up on the sidewalk. A bus garage could open space at the bus station for discount carriers like Megabus.com, which has a permit to use West 41st Street just outside the bus station as a depot.

“You could get more buses into the terminal,” the source said. “But you’d have to ban them from these sidewalk pickups.”

The insider called Mr. Silverstein’s idea “intriguing,” but it may be a pipe dream.

Mr. Foye would say only that he’s looking at fixing the problem. “It’s a serious question under serious review,” he said.

Source

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US home sales unexpectedly drop 1.6%

The pace of purchased new homes fell to a 313,000 annual pace, the slowest since  October. Though an analyst says there are signs of life in some regions, “we’re  not seeing a broad-based recovery.”

(Bloomberg) – Purchases of new homes in the U.S. unexpectedly fell  in February for a second month, a sign the recovery in the housing market may be  uneven.

Sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from  a 318,000 rate in January that was weaker than previously reported, figures from  the Commerce Department showed Friday in Washington. The median estimate of 78  economists surveyed by Bloomberg News called for 325,000.

Sales of new homes are struggling to gain momentum amid increasing  competition from foreclosures, which are hurting all property values.  Nonetheless, a pickup in hiring, growing incomes and mortgage rates near a  record low are making all houses more affordable, which may help underpin the  market.

“There are signs of life in the market in certain regions, but we’re not  seeing a broad-based recovery,” said Michelle Meyer, a senior U.S. economist at  Bank of America Corp. in New York, who forecast a 310,000 sales pace. “Builders  are still competing with existing inventories. The spring selling season should  show some modest improvement, but it will be limited.”

Economists’ estimates ranged from 310,000 to 350,000. The rate for January  was previously reported at 321,000.

The recent slowdown in demand has pushed up the amount of time it takes to  sell a new house. There were 150,000 new houses on the market at the end of  February, matching the prior month’s record low. The supply of homes at the  current sales rate climbed to 5.8 months’ worth from 5.7 months in January.

Purchases, tabulated when contracts are signed, fell in two of the four U.S.  regions, led by a 7.2% drop in the South. Sales fell 2.4% in the Midwest and  rose 14% in the Northeast and 8% in the West.

The regional breakdown affected prices as demand fell in the South and  Midwest where homes are less expensive and rose in the Northeast and West where  they are costlier.

The median sales price increased 6.2% in February from the same month last  year to $233,700, Friday’s report showed.

New-home sales have lost their ability to forecast the broader market as  demand shifts to previously owned houses. Purchases of existing homes are  calculated when a deal closes about a month or two later. New properties made up  almost 7% of the market last year, down from a high of 15% during the last  decade’s housing boom.

Existing-home purchases eased to a 4.59 million annual rate last month from a  4.63 million pace in January, the National Association of Realtors reported this  week. Even with the decline, January and February sales marked the strongest  start to a year since 2007.

Home foreclosures remain a concern for builders. Filings fell 8% in February,  the smallest year-over-year decrease since October 2010, as lenders began  working through a backlog of seized properties, RealtyTrac Inc. said last week.

“February’s numbers point to a gradually rising foreclosure tide,” Brandon  Moore, RealtyTrac’s CEO, said in the statement. “That should result in more  states posting annual increases in the coming months.”

To hold down borrowing costs like mortgage rates, Federal Reserve policy  makers last week said they will continue to swap $400 billion in short-term  securities with long-term debt to lengthen the average maturity of the central  bank’s holdings, a move dubbed Operation Twist.

The National Association of Realtors’s affordability index climbed to a  record high in January, underpinning demand. That may be why builders are  gaining confidence.

Builders this year have broken ground on homes at the fastest pace since  October to November 2008, according to Commerce Department figures released this  week. Permits for construction climbed to the highest level since 2008, the same  report showed.

The National Association of Home Builders/Wells Fargo index of builder  confidence in March held at the highest level since June 2007. Sales  expectations climbed for a sixth month, according to the March 19 report.

Ryland Group Inc., which builds homes with an average price of $255,000 in 13  states, said it has a positive outlook for 2012.

“We finished the year on a strong note, entered the year optimistic and still  feel fairly optimistic today,” Larry Nicholson, president and CEO at the  Westlake Village, Calif.-based company, said March 6 at an investor conference. “The good thing about the traffic we are seeing is it’s new traffic. We feel a  lot better than we did a year ago. Hopefully, we can keep this trend up.”

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Client does not pay freelance architect and takes credit for design

I work as a freelance architect and designer. In this particular instance, I was victim to the ignorance of an uninformed client. When you’re dealing with intellectual property, such as creating a design, it’s important that the client is knowledgeable and has the capacity to understand what they’re actually paying for: your ideas!

While designing Whitehall, located on 19 Greenwich Ave in New York City, I produced construction drawings, digital renderings, hand sketches, filing drawings for building permits, and material call outs. The built space was written about in Vogue magazine, and they not only left out my name but gave the owners the credit for the work, literally stating that the space was designed by Donal Brophy and Brian McGory.

After using all of my ideas, the clients claimed that they were actually the designers. Confused? I was too. After interrogating them, the response was that they had to deal with a lot of questions from the contractor. Has anyone ever worked with a contractor who doesn’t ask questions? If they’re not asking questions, they probably aren’t doing a great job.

In most cases, the client would typically allow the experienced professional to perform what is called Construction Administration. I technically should have been the one who was answering all of the contractor’s questions on this job and would have if the client hadn’t stated that he was also an “experienced” designer and therefore this role would be unnecessary for me to perform. The client asked me to remove that fee from our contract. I agreed to remove the fee and it was made clear that I would not be performing the CA role on this job. This was all agreed upon prior to beginning the work.

Even though I explained this to the client, he told me to take $3,000 in cash (the contract was for $8,000), off the books, and be done with it. I refused on moral grounds as I had clearly already done all of the work. To then be stiffed on top of that was just adding salt to the wound. As a result of this loss, in addition to having gotten short-changed by another client who claims he’s broke, I’ve been forced to give up my studio space.

“After using all of my ideas, the clients claimed that they were actually the designers.”

Freelancers don’t have a financial buffer like corporations do. We’re typically operating month to month and if you don’t have more than one job lined up, you have no leverage in your negotiations. Having worked in this industry for the past seven years, what I can now advise is that it’s not worth it.

If the terms aren’t to your liking and you don’t find yourself personally attached to the work or to the client, then walk away. Otherwise, you’ll always end up with the short end of the stick.

If you freelance in the New York City area, stay away from Donal Brophy and Whitehall. If you do decide to stop in Whitehall for a drink, tell them it’s on me!

Antonio is a freelance architect and designer.  (The views and opinions in the posting above do not reflect those of Consulting4architects Blog.)

This story was submitted to the Freelancers Union

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Silverstein to call a halt at 3 WTC

Unable to line up tenants, developer to cap his second Trade Center tower at seventh floor.

Developer Larry Silverstein is planning to halt construction by the end of the year on the second of the two towers he is currently building at the World Trade Center site if he can’t find a major office tenant, sources close to the company said.

Minor modifications have already been made to the ongoing construction of the tower that will allow it to be capped at the seventh floor—73 short of its planned height. Retail tenants would be sought for the seven-story podium.

If Mr. Silverstein finds a tenant before the tower is capped, he can go ahead and complete what will be known as 3 World Trade Center, although there might be some delays, depending on when the deal is struck. The building was slated to be completed in 2015.

Mr. Silverstein is not currently close to signing a tenant, sources said. The building’s cap can be removed and construction can resume after he finds one. Mr. Silverstein’s spokesman declined to comment.

The move to cap the tower stems from a 2010 agreement between the developer and the Port Authority of New York & New Jersey, the site’s owner, to end a long-running feud. Under the deal, Mr. Silverstein has to pre-lease 400,000 square feet in his second tower, line up $300 million of private equity and secure private construction financing in order to qualify for debt guarantees from the Port, the city and the state.

But amid financial tumult in Europe, a weak U.S. economy and a cooling in the city’s office-leasing environment, Mr. Silverstein has been unable to attract a tenant. Experts say his near-term prospects are dim.

“The willingness of large-scale tenants to commit in this environment is limited because companies don’t want to go out and spend a lot of money,” said Peter Hennessy, president of Cassidy Turley’s New York Tristate Region. “It’s not the building; it’s the market.”

Cheaper to stay put

Despite a host of government incentives to lure firms to lower Manhattan, Mr. Hennessy estimates that a 400,000-square-foot tenant would need to spend about $100 million just to outfit an office. Faced with those kinds of costs in a lackluster economy, Mr. Hennessy said, it’s likely that more companies might opt to renew their current leases.

Morgan Stanley, for example, has been searching for months for between 1 million and 1.4 million square feet. Now, sources said, the bank is very close to renewing its lease at 1 New York Plaza and taking some additional space there, which would be a much more cost-effective option.

While other big companies—including Time Warner, News Corp. and Credit Suisse—continue to prowl the market for huge digs, their ranks are thinning. Last year, the number of tenants seeking more than 100,000 square feet tumbled 23%, from 74 to 57, according to Cushman & Wakefield Inc.

To land tenants, Mr. Silverstein faces competition from both existing buildings and other planned state-of-the-art towers. Related Cos. and Oxford Properties Group are seeking tenants for their massive project at the Hudson Yards west of Penn Station, while Brookfield Office Properties wants to lure firms to the 7.4 million-square-foot complex it plans in the same neighborhood. In addition, by the end of next year, as several large tenants move out, Brookfield will have 2.8 million square feet of space available at its World Financial Center—37% of its total—across West Street from Mr. Silverstein’s towers.

Seeing is believing

Sources say Mr. Silverstein’s tower has an advantage over other planned projects for now: Tenants can actually see the start of the building and visit the World Trade Center site. In contrast, except for one building, Related has to build a huge platform over the rail yards before it can start construction, as does Brookfield. That requires tenants with the imagination to envision the finished product and the confidence to take a chance that the neighborhood can be successfully transformed into a premier office market.

In addition, all three landlords are seeking tenants at a time when they are getting more skittish. While overall activity rose 16% last year, the amount of space leased in the second half of the year fell by 31% from the first half of 2011, and was down nearly 10% from the corresponding period in 2010.

Of course, large deals get done even during choppy times. Two months ago, luxury leather-goods maker Coach agreed to be the anchor tenant for a new tower at Hudson Yards. And just last week, publishing giant Condé Nast exercised its option to lease an additional 133,000 square feet at 1 World Trade Center. That will bring the publisher’s total to 1.19 million square feet in that building, which is being developed by the Port Authority and the Durst Organization.

But sources said the Condé Nast deal was heavily subsidized by the Port because it wanted a strong anchor tenant to establish 1 World Trade Center as a premier corporate location. For example, the Port has agreed to assume the last four or five years of Condé Nast’s lease at its current headquarters at 4 Times Square.

Mr. Silverstein has the right to build three office buildings on the World Trade Center site. The first, 4 WTC, is a 72-story building that is due to be completed next year. About 60% of it is leased. Below-ground infrastructure work is being done on the third tower that is expected to end soon, but the building is on hold indefinitely.

David Goldstein, an executive vice president at Studley, said it’s possible that Mr. Silverstein may find a tenant as firms seek to take advantage of the current environment.

“There are lots of opportunities in this market,” said Mr. Goldstein. “And I wouldn’t count Larry out.”

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Update: Javits’ end promises new dawn for Manhattan’s West Side

Redeveloping the six-block-long property overlooking the Hudson will give a huge boost to efforts by the government and a growing number of developers to recreate the long-desolate far West Side of Manhattan.

Even Richard Kahan thinks it’s time to demolish the Jacob K. Javits Convention Center—and he built the facility 26 years ago, as head of the Convention Center Development Corp. Mr. Kahan also praises Gov. Andrew Cuomo’s proposal to transform the site into a mixed-use development modeled on Battery Park City—a project he also once led as the head of the BPC Authority.

“I don’t like seeing my buildings torn down, but a mixed-use project is the highest and best use for that site,” said Mr. Kahan.

Legions of real estate executives agree with him. They say that redeveloping the six-block-long property overlooking the Hudson will give a huge boost to efforts by the government and a growing number of developers to re-create the long-desolate far West Side of Manhattan. The governor’s vision of a mix of office buildings, apartment houses, museums and parkland for the 18-acre site would close a key gap. To the south below West 33rd Street is a fast-rising area along the hyper successful High Line and the ambitious Hudson Yards redevelopment. To the north across West 41st Street stands a bevy of newly constructed high-rise apartment towers.

“It’s a great location,” said Douglas Durst, chairman of the Durst Organization, a prominent family development firm. “I’m sure my family would be interested in it.”

New York history, however, is littered with big, bold plans that have gone nowhere, including plans for expanding Javits. The governor’s latest plans are particularly complicated. To move the project forward on the West Side, an immense new convention center must first be built in Queens, a task that carries its own challenges. Beyond that, crafting a new neighborhood on the Hudson will require billions of dollars, community consensus and a slew of government studies and approvals. And it comes as a time when financing for big projects has all but evaporated as developers from the neighboring Hudson Yards and Atlantic Yards in downtown Brooklyn can attest.

Lots of Upsides

Still, the proposal has significant advantages. The governor has anointed it a top priority, so he will likely use his considerable power to see it through. In addition, Mayor Michael Bloomberg has long set developing the far West Side and the city’s waterfront as goals of his administration. Meanwhile, the extension of the No. 7 subway line, slated to open in December 2013, will make it much easier to get there.

“There’s no reason this can’t be done,” said Mitchell Korbey, chair of the land use and environmental practice group at law firm Herrick Feinstein. “But projects like this take maybe 30 or 40 years.”

He said devising a detailed master plan that complements other initiatives in the area will be more important than building quickly. That means considering what Related Cos. and Oxford Properties Group are developing at Hudson Yards, a 26-acre site bounded by West 30th and West 33rd streets, on a platform over the rail yards west of Penn Station. Meanwhile, Brookfield Office Properties plans to build 5.2 million square feet of office space over the yards west of Ninth Avenue from West 31st to West 33rd streets. Hope also springs eternal that long-delayed plans to turn the stately post office across from Penn Station into a grand train depot named after the late Senator Daniel Patrick Moynihan will materialize.

The developer with the most at stake is Related. It has several projects under way there. Late last year, Related and partner Oxford announced they would build the site’s first tower, a 51-story spire at West 30th Street that will be home for luxury leather-goods maker Coach. To build out the rest of the site, however, the developers must first erect a $1.6 billion platform over the tracks.

The timing of the Javits project could be critical for Hudson Yards. If it comes to fruition before Hudson Yards has lined up big tenants, Javits could pose a threat as a cheaper alternative, since it won’t require building a pricey platform. On the other hand, if the project takes too long, it could be an eyesore that drags down Hudson Yards’ value.

“We look forward to reviewing the details of the proposal, which is even further evidence of the potential of Manhattan’s West Side,” said a Related spokeswoman.

Source: Crain’s NY

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