Daily News from New York, New York • 12

i At BUSY FEET KNEAD SPECIAL tyTENTfON. RELAX AND MASSAGE YOURS IN A PAIROFARIS COMFORT SLIPPERS. ISOTONER" fVT 4 5 By OWEN MORITZ Urban Attain Editor in it tuttaias I i What has Jacqueline Kennedy Onassis to do with the Ziegfeld Follies? Only that she's one of several figures caught up in a Times Square flap over an effort to convert the roof garden of the New Amsterdam Theater on W. 42d St into a national theater. The roof garden was a favorite haunt of impresario Florenz Ziegfeld.

There, in the wicked period just after World War Ziegfeld staged his "Midnight Frolic" shows starring Fanny Brice, Will Rogers and Eddie mm Cantor. Fred Papert, president of the 42d St. Redevelopment is the fellow who wants to rehab the roof garden and make it into a national theater. The project, says Papert, would cost from $5 million to $6 million. Jackie is a member of Take a load off your feet.

Slip into a pair of Isotoner Comfort Slippers by Aris The massaging action is built right in to give soothing relief to aching feet Great for -travellers or at home loungers. In black, cerise, royal, bone, rose, white, wedgewood blue, S-M-L-XL, 20.00. On B'way, New York. And all our stores. Papert's board and helped him create W'V 4 the successful Theater Row on 42d St between Ninth and 10th Aves.

She often appears at his side and has in behalf of the roof -garden prpject Now the controversy. Papert is mm i seeking $1.5 million from a- special $4 million fund for up-' grading Times Square to underwrite a second mortgage on the roof-garden project. He says he's doing it at the urging of city officials. But the local community board and the midtown citizens committee said in no uncertain terms that the $4 million is designed to improve quali-ty-of-life conditions in Times Square, and a national theater should not be allowed to dip into that fund. Papert, seeking to avoid further WE "2122 LEI controversy, says he is willing to look elsewhere for funding.

He already has raised more than $3 million of the needed $6 million. "My feeling is that another source can be found." Still, Papert, with Jackie O's help, Jacqueline Onassis don, "South Ferry Plaza could be a fitting counterpoint to the World Trade Towers to the west" A problem that grates The Koch administration has been embarrassed by disclosures i from Roger Herz and other leaders an the bicycle transportation movement here that sewer grates in New York are not only illegal by federal standards, but dangerous to bike riders. Indeed, by not installing the proper grates, the administration risked losing $8 million in federal funds for Brooklyn's Fulton Mall. 9 After meeting with Herz, executive director of Bicycle Transportation Action and the city quickly installed 17 "bicycle-safe sewer grates" at Fulton Mall and vowed to improve bicycle and pedestrian safety around the city. How's progress? Well, Herz says his staff made an inspection of the gratings in the streets around City Hall Park Row, Broadway, Chambers St among others and reports: Nothing's changed.

"They're all the hazardous kind, except in a couple of instances," says Herz. is determined to create a national theater in New York and would like it to be upstairs in the New Amsterdamwhich sits mid-block on 42d between Seventh and Eighth Aves. He wanted it to go in the old West Side Airlines Terminal building but that fell through. He had hoped for an urban development action grant but said applying for such a federal grant could cause delays and turn the. entire 42d St cleanup project into "another Westway." A ferry hot property The Staten Island Ferry terminal at the foot of Manhattan is scheduled to be demolished, but that's only half the story.

It's a hot, hot property. The city is suddenly awash with 14 major offers to put up a $100 million or so hotel, office and marina complex called South Ferry Plaza on the site. The ferry will continue to operate there as part of any future development In fact headlmed names in real estate have submitted preliminary I bids to the Department of Ports and Terminals. They include: the Hyatt SIZES S.M.L. fill hotel chain; builder Fred Deltlateis; the Prudential and Equitable insurance companies; Olympia York; developer Larry Silverstein; trucking magnate Arthur Imperatore and the Jack Parker Corp.

Dairy dispute i A while back we reported on a federal antitrust suit filed by Farmland Dairies Inc. of New Jersey to crack the New York City milk market Attorney General Robert Abrams says milk prices in Manhattan are 45 cents more a gallon than across the river in Jersey. The result has been to churn up a lot of bitter accusation. George Douris, who represents the milk industry here, says "higher prices come with the turf" and it's unfair to single out milk when the cost of business, food, even shoes is higher here, particularly in Manhattan. "New Jersey milk companies like Farmland would rob this state dry by putting thousands out of work, reducing tax revenues and raising welfare benefits," says Douris.

ON SALl THURSDAY, FRIDAY, SATURDAY NOT EVERY STYLE IN EVERY STORE 2 2 CO 3 The South Ferry Terminal, known 07 as the Whitehall terminal, was built in the 1950s. It's the entering point for ferry-borne Staten Islanders and, con versely, the gateway to btaten lsiana. ORANGI: 107 MAIN ST. NIVVADK: HI HALSIV ST. IIIIAMTM: Sl-JJ OAO ST.

MASSAMOUA: 700 SUNIISI MAltMKTM AMAOT: 271 MOAT ST. III0T: 1 W. MltHICK 0. HAINTUIO: 71i I. ftONT ST.

YONKIDS' 2 HUDSON ST. JiRSIT CITY: 2f44 HINNIDT IV0. NtW KOCNllll 240 NORTH AVI. UNION CITT: 4900 (KOiNllNI AVI. MANHATTAN: 101 W.

T4TH ST. 7 V. 1ST ONX: 305 I TOIDHAM IQ. 310 1. 1 SOTH ST.

tlOOKtTN: S7IO IIITH AVI. 4S fOUON ST. There are predictions of a iiO-to-5U- story tower for the site. "With spectacular vistas in all directions," says real estate broker Edward Gor- WHITf WJUNS; 3-47 COURT ST. PASSAIC: HJ Ul J1IHHON ST.

JAMAICA- 12-1 JAMAICA AVI. PATfRSON: 57 VAN HDU1IN SI. IDOIWOOD SA-O CATAIM AVI MT. VIINON: I) OUTH AVI HOIIS COAST TO COAST.