Daily News from New York, New York • 6

a DDI LifflgDiJi nn tt By PETER GRANT ization of Harlem is really moving forward, officials said. "There's nothing like actually seeing construction in progress to give people hope," said Deborah Wright, president of the Harlem Empowerment Zone, which is providing the development with an $11.2 million loan. Despite yesterday's festivities, not everyone called the new projects signs of progress. "This is a joke," said Yassir Azizz, 40, as he watched the Harlem USA ceremony. "The jobs are only going to pay $4 an hour.

It's people coming into the community who are going to make all the money." Some area merchants said they're worried about new competition from national chain stores. Other retailers and onlookers were more optimistic. Harlem resident Harold Moore, 43, said he probably would do more shopping in the area after Harlem USA opened. "The smaller stores charge too much," he said. "With a big company, the prices will come down." George Adams, the manager of Lazarus For Kids, predicted that Harlem USA will attract more tourists to the area and bring back the days when stores along 125th St stayed open later in the night "It will be lighter and brighter, with more people shopping," Adams predicted.

"Harlem has no place to go but up." Daily News Business Writer Harlem ushered in a new era of eco- nomic development yesterday, trum-peting big-name retailers and mass entertainment The $65 million Harlem USA complex at 125th St and Frederick Douglass Blvd. is the most significant com-mercial development in the neighborhood in decades. "The best of Harlem is ahead of us," Gov. Pataki said during formal ceremonies, although work on the complex has been under way for months. The complex will include a nine-screen Magic Johnson Enterprises multiplex theater and retail shops from Disney, HMV Records, Old Navy and Modell's Sporting Goods.

Dignitaries at the ceremony also attended by celebs Dionne Warwick and Mary J. Blige predicted Harlem USA will help propel another golden age for the community, which they likened to the great Harlem Renaissance of the 1920s. Harlem USA, which will employ 700 people when it opens in late 1999, is the second major construction project to begin on 125th St in less than a year. The other is a $15 million Pathmark supermarket between Second and Third Aves. The two developments, after decades of false starts, demonstrate that the long-awaited commercial revital- r.

A A -N Xx 'f 'A, JI Wi AP ira By PETER GRANT THERE SHE IS: Monica Lewinsky is seen last month arriving at her lawyers' office. Escsp to EDamptiis By KATHY KIELY with Time Warner, the world's largest media company. The mayor was a behind-the-scenes advocate of Related's plan because of the growing importance of media and entertainment to the city's economy, officials close to the deliberations said. "Time Warner and the high visibility of the Columbus Circle site are a perfect match," said Mary Ann Tighe, a real estate agent with InsigniaESG. But Related's victory in the competition does not necessarily mean its project will be built The tortured history of the Coliseum project, which stretches back more than a decade, is one of political intrigue, court battles and spectacular plans that never got off the drawing board.

Referring to the Italian term for the evil eye, an executive with one of the rival bidders said yesterday, "This job has the mal occhio." Several community groups have threatened to sue no matter which project won development rights. Also, Trump has hinted he would go to court if his proposal was not selected. Trump, who could not be reached for comment, was the high bidder, with an offer of about $360 million. But some community groups that played a lead role in blocking past Coliseum proposals have expressed support of Related's plan. "It won't cast too much of a shadow, and it will have a great New York institution in Jazz at Lincoln Center," said Brendan Sexton, president of the Municipal Art Society.

Daily News Business Writer A $1 billion plan that includes a new headquarters for media giant Time Warner has won the hotly contested battle to redevelop the prime New York Coliseum site, sources said yesterday. The victory for Related Cos. means defeat for megadevelopers such as Donald Trump, Jerry Speyer, Bruce Ratnerand Millennium Partners. Mayor Giuliani and the Metropolitan Transportation Authority were expected to announce today that they have agreed to sell the Columbus Circle site to Related for $350 million, bringing a dramatic end to one of the most controversial real estate competitions of the decade. Giuliani, Related and MTA officials declined to comment yesterday on the choice, which was expected a year ago.

But sources said the MTA selection committee was scheduled to approve Related's bid today in time for the full MTA board to approve the deal Wednesday. Related, one of New York's biggest apartment building developers, proposed a twin-towered project that would rise about 58 stories. Aside from a glitzy new headquarters for Time Warner, it would include a 300-room Mandarin Oriental hotel, 300 condominiums, 400,000 square feet of retail space and a jazz theater for Lincoln Center. Sources said Related is getting the nod primarily because of its alliance Joel, recovering from a sore throat, is not expected to perform. But Hootie and the Blowfish will entertain, according to the band's publicist.

The President arrives in the Hamptons on Friday evening and will attend a dinner at the home of investment banker Bruce Wasserstein. On Saturday, before heading to the Baldwin-Basinger home, he'll be at a event hosted by composer Jonathan Sheffer and Dr. Christopher Barley. Clinton and First Lady Hillary Rodham Clinton are expected to bunk with Steven Spielberg and Kate Capshaw. Neighbors in the exclusive East Hampton neighborhood include such big names as Nora Ephron and Nick Pi-leggi, Ben Bradlee and Sally Quinn, Ron Perelman and Martha Stewart The President is expected to enjoy some sun and fun.

Locals are figuring he'll hit the links at least once at the Atlantic Golf Club. With George Rush and Debbie Tuma Dally News Washington Bureau WASHINGTON President Clinton is determined to not let his Starr-crossed days interfere with plans for a star-studded Hamptons weekend. White House aides said yesterday that despite a grand jury subpoena from independent counsel Kenneth Starr, plans are on track for Clinton's visit to the plush beach communities, where he hopes to lighten a few designer wallets of about $1 million. That's how much Democrats hope they'll raise at three back-to-back fund-raisers. While Clinton may be the headliner, the celebrity list is growing.

The biggest bash of the President's weekend takes place Saturday night at the Amagansett home of Alec Baldwin and Kim Basinger. Word is that actors Robert De Niro and Helen Hunt will be among the 1,000 or so guests. Other big names on the guest list: designer Vera Wang, playwright Wendy Wasserstein and singer Billy Joel..