TESTIMONY
by Bronson Fox, Sr. Director,
Policy & Research
PARTNERSHIP FOR NEW YORK CITY

New York, New York
September 18, 2006

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11 Times Square

Testimony Before the Empire State Development Corporation

Good afternoon. Thank you for the opportunity to testify in support of the proposed development of a new office tower at 11 Times Square, designed by FX Fowle Architects and developed by SJP Properties. This represents the final building in one of the most significant redevelopment programs that New York City and State have ever undertaken. ESDC and EDC are to be congratulated for bringing this project to a successful conclusion.

The Partnership for New York City, representing major employers and business leaders, was an early advocate of the redevelopment of Times Square. While it has been a long process, Times Square has become everything the Partnership hoped for, and more. It is the center of the city's thriving tourism industry, which will attract a record 43 million visitors this year. It is an important retail-shopping district and the city's premiere entertainment district. Most important, it provides office space for some of the most important sectors of our economy, including media, financial services and professional services.

Manhattan is the driver of the city and state economies. Today, there is a particular shortage of Class “A” office space in Midtown, resulting in vacancy rates of 6.1% and rents reaching as high as $100 per square foot. This tight real estate market is already costing the city jobs and tax revenues, as some major commercial tenants cannot be accommodated. 11 Times Square will help increase supply to meet this demand.

New York is competing with the global financial centers around the world that are aggressively putting up new buildings to provide suitable offices for corporate headquarters and business operations. The SJP building provides the type of large floor plates and top quality design that international tenants are seeking - and which are in short supply in New York.

This project also reinforces Eighth Avenue's status as a desirable location for corporate offices. It will help to stimulate additional investment on the Far West side, accelerating the westward expansion of the Midtown business district.

The public investment in the Times Square Urban Renewal Area got started more than two decades ago when the area was blighted and crime-ridden. It is appropriate that this final private investment in Times Square will help spur a new generation of development in the long-underutilized area known as Hudson Yards. We urge ESDC to move forward with project approval and look forward to another great new building rising on the Manhattan skyline.

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.