2008 mid-year report: Major development projects plan to revitalize Long Island

Widespread doubts have been increasing concerning our national economy. Recent unemployment has led to the decrease in office tenants throughout the country. One place where the economic growth replaces despair is Long Island which maintains its sustainability. During the first six months of this year, almost seven million s/f of commercial space has been bought and sold in Nassau and Suffolk Counties. The unemployment rates don't seem to be a factor for CLK/HP, who recently purchased One Old Country Rd. President, Craig Koenigsberg is confident about the $65 million dollar acquisition. Many major developers see a bright future for Long Island, including RexCorp who is a partner in two of the largest and most anticipated projects in Nassau County. First is a partnership with Islander's owner Charles Wang for the highly publicized Lighthouse Project. Second, is the Glen Isle project planned to revitalize the Glen Cove waterfront. Both projects will be considered "smart growth" mixed-use communities. Smart growth can be described as a type of urban planning with a pedestrian friendly environment. This is often characterized by various types of residential properties aimed at achieving a sense of community. Smart growth also aims to expand the range of transportation and employment in the community. The Glen Isle project is a billion dollar proposal for the revitalization of the drab Hempstead Harbor in Glen Cove. The goal is to re-invent the area, and provide full public access rather then to gentrify the area. In order for this to be achieved the development plan includes extensive open space. The space will be used in the form of public parks, pedestrian plazas, cycling paths, and a restored public beach with a new boat ramp. The plan for an active waterfront community is supplemented by mixed-use housing. Another exciting part is a planned ferry terminal with service to various locations including Manhattan. The heart of the project will be derived from a Cultural Arts District, bringing culture and creativity to the area. Wang has a vision of recreating the Nassau Coliseum and its surrounding areas. This isn't simply a renovation project, but rather a plan for a $2 billion mixed-use area. In addition to a new coliseum, the area plans to be the center of Long Island. The economic benefits are vast, primarily because the county loses $1.5 million a year as the owners of the coliseum. Now the county will make money from leasing the location to Wang. The area will generate over $60 million dollars of real estate tax revenue. In addition, New York State will receive an estimated $185 million dollars in sales tax revenue over 25 years. The 5.5 million s/f project will provide thousands of construction jobs as well as permanent jobs. One million of which will be class A office properties. This will attract more business to maintain operations on Long Island as opposed to Manhattan, and provide an opportunity for local start up companies. The property value will increase as well, as the area because more centralized and vital to the area. The Lighthouse Project plans to be a mini-city area of the sorts, where Long Islanders can go for business and leisure. It plans to give Long Island an identity, and a place for tourist to visit. This reduces the dependency of the need to go to New York City, thus keeping more money on the Island. Both projects are rejuvenating Long Island. The "smart growth" mixed-used developments are one-of-a-kind in these highly suburbanized areas. They are satisfying the need for more public space and providing an abundance of activities for the area's youth other than the typical trip to the mall. The reliance on automobiles will decrease, and the construction projects are environmentally friendly. The projects will permeate through other parts of the Island, boosting their local economies. Though both projects are extensive, the outlook for Long Island is optimistic. Experts are predicting that right now is the perfect time to invest in the anticipated boom of Long Island's real estate. Ron Koenigsberg is the president of American Investment Properties, Inc., Garden City, N.Y.