Daily News from New York, New York on December 3, 1980 · 239
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Daily News from New York, New York · 239

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New York, New York
Issue Date:
Wednesday, December 3, 1980
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239
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X ' ? f CLASSIFIED BEGINS ON BACK PAGE 1 : 111 11 " " Dally News. Wednesday, December 3, 1980 D3!filGinii " - 4 W-M- ' 'y, 0. ,V..X. - X X. A 4 WW'S' v??J?' , , j( w J v v ( W " y ' y- V , 3 IF , v ,y' o, 's'i- " '-v If&MrjVS " 1 Helmsley-Spear's success with Bush Terminal (above) has made the firm first choice to develop former Army Terminal (below). By BOB KAPPSTATTER . NE OF BROOKLYN'S and the city's most amazing industrial success stones, the Bush Terminal, is 78 years young today. Almost an anomaly in times when the term industrial park conjures up visions of sprawling one-story factory buildings in park-like suburban settings, the white-washed set of multi-story, buildings, that sit like some giant blocks along the borough's waterfront, are thriving. Their business occupants create depending on seasonal work loads anywhere from 7,000 to 10,000 jobs a year. Business is so good, say the owners, that Bush Terminal is 98 occupied an industrial rarity anywhere. And this success may foretell the future of a neighboring complex just to the south on the waterfront AT THIS MOMENT, THE current owners of Bush Terminal, the monolithic Helmsley-Spear Corp., is in the final phase of negotiations with the city to take over light industrial development of the 97-acre Brooklyn Army Terminal. City officials say an agreement that meets financial terms acceptable to both sides may soon be reached and this could .mean 4,000 more jobs for Brooklyn's sagging economy. The federal government still owns the Army Terminal, and purchase of the complex has been given high priority by the city. The federal General Service Administration has put a $10 million price tag on the terminal and the city countered with a $5 million offer. Sources now say that the city has increased its offer to $8'a million and that Mayor Koch has personally stepped in to try and seal the deal. The city is afraid, the sources also said, that with the change in the national administration, the deal could be delayed for several months. If and when Helmsley-Spear does take over the Army Terminal, it will have already achieved a reputation for its management of the Bush Terminal. "Most of the tenants are happy with us," says Philip Blumenfeld, 48-year-old project manager for the terminal. ONE OF THE KEY REASONS, industrial observers have said, is the flexibility which was built into the terminal. The terminal's 16 multi-storied poured concrete buildings contain more than six million square feet of usable space on the 35-acre Sunset Park site, and Blumenthal said that although the complex is almost full, it still has several thousand square feet of . "t . '1 MANHATTAN S .'""J' .BUSH'B . " -tterminalWI If "V) BROOKLYN L 4 -V ARMY t '4 J TERMINAL 4 5,f BROOKLYN e i ft- x - e - y J I 4 w ! 4 & ' fexl' Ay?- ,1 r TO to- t " t 13 BOB JtFRAS DAIl V Ml w; 4 4 13 expansion room to accommodate new tenants or provide room for expansion to current tenants. "One per cent of six million square feet is still a big number," said Blumenfeld. A vice president with Helmsley-Spear, Blumenfeld came to the firm one year and a half ago afler 20 years with Metropolitan Life Insurance Co. as vice president of its real estate department. If the Army Terminal deal goes through, Blumenfeld will also become the project director. He is currently leading negotiations with the city. The Bush Terminal itself is a study in a number of interesting facts. For example: About 135 companies ranging from bubble gum makers to book publishers and garment manufacturers occupy lofts ranging in size from 5,989 square feet to 311,000 square feet. The management buys more than $2 million in electricity annually from Con Edison and burns more than five million gallons of oil to generate 543 million pounds of steam each year. The buildings contain more than a half million panes of glass. Its oldest tenant is General Paper, which has been there for 70 years. It is also the business home of Tetley Tea and a company that processes crushed nut shells for cleaning furs. Close to 99; of the employes there either walk to work or take public transportation. The success of the Bush Terminal is considered by many to be a key reason why the city chose Helmsley Spear from six competing bidders to develop the Army Terminal. Under the criteria established by the city in its development proposal request for the Army Terminal were the number and type of new jobs that would be generated, the annual rent the city would receive under its lease, and the extent and quality of experience of the developer. THE LAST REMAINING issue in negotiations between the city and Helmsley-Spear is the rental for the site. In its initial proposal, the developer has offered to pay the city $30,000 in the first year of operation and $1.1 million annually by the 10th year. Other developers' proposals carried $250,000 minimum payments in the initial terminal development years, and $1 million annually after that. Mayor Koch had initially proposed last September that if Helmsley-Spear did not "sweeten" its money offer by late October, discussions would begin with the firm of Perkins and Will, the second choice of a committee of borough and city officials. A price breakthrough may not be near, the city sources confirmed. But Blumenfeld remains optimistic that he will soon be developing the Army Terminal. "We feel the Army Terminal is going to be a natural extension of Bush Terminal," he said.

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