Newsday from New York, New York • 131

ms taw. 4 VI wi Vie! teii-Ji .431.41 Color key: filling the Square vetopws are piling up property around Union Square as the neighborhood's popularity rises -m 'Sw- Property controlled by investment groups led by developer Philip Pilevsky. Property controlled by developer Jeffrey Glick. Property controlled by developer William Zeckendorf. Property developed by Harry Feldman.

Subway entrances to the 5 and 6 lines. Landmark buildings. 4, T'v4 v. v-- tty-o vneb, parking idh- The former S. Klein department store annex and the former Commercial Traders Building are being restored by a group including developers Nassim and Roger Fisher to house offices and a Kiddie City toy store.

A Pilevsky representative has talked to the International Ladies Garment Workers' Union about buying the building at the comer of E. 1 7th St. and Union Square East. The site used to be Tammany Hall and now includes the Roundabout Theatre. The union has not decided what to do.

The 20-story Pilevsky-controlled building at E. 18th St. and Park Ave. which includes a Food Emporium, has been leased to developer Steven Green, who will renovate it for office space. tn The former American Drapery Carpet Co.

building at 33-37 E. 17th St. has long been vacant Many developers are interested in buying it The two-story building next door, at 31 E. 17th is for sale. ED Greenmarket.

ED Park is to be expanded. PH Landmark building at Union Square West and E. 16th St. is for sale. Rental units, including five floors temporarily leased by New School, are expected to become condos or co-ops.

mned and existing projects: ut friew NYU dormitories at 20 E.1 6th St. and 21 E. 15th St t- i Court, a new condominium apartment building. Mays department store, which is being sold to a group led by developer Philip Pilevsky and including Arthur Cohen and William Zeckendorf. Plans are to renovate the structure into a vertical shopping mall that may include a Pergament home center and a Marshalls discount clothing store.

A Pilevsky group plans to build a condominium and retail complex, in conjunction with the owner of the two comer sites. Building on 13th Street will be renovated as offices and antique furniture market. Developer Jeffrey Glick plans to tear down building that includes the Palladium disco, to buy the city-owned parking lot at auction, and to build a condominium and retail complex that incorporates the former Luchow's restaurant building. Zeckendorf Towers, which includes an Food Bazaar, a Federal Express office, a Marine Midland bank branch and the headquarters of Integrated Resources. 3- ing into 40,000 square feet of the former S.

Klein Department Store annex on Union Square East But various community members worry that some of the new buildings will cast shadows over the park or the streets and add to the areas congestion, and that a desire to include low- and moderate-income housing will be swept away by economic imperatives that squeeze out low-income residents and shoppers. This area has become very heavily used already, said Barry Benepe, chairman of the zoning wwmriiHaa of the Union Square Park Community Coalition. We dont think it needs to be busier or to become more of a magnet. SOME WORRY that the momentum of Union Squares development, including a proposed zoning change for the block on the south of 14th Street between Third and Fourth Avenues Continued from Page 1 tween Greenwich Village and Gramercy Park. Its becoming a hybrid of the Upper West Side, the Upper East Side and the Village, said Jules Demchick, vice president of M.D.

Carlisle Construction Corp. The company, headed hy Harry Feldman, has developed a new 13-etoxy apartment building cm Union Square West where a one-bedroom goes for more than $1,600 a month, and two 12-story New York University dormitories around the comer. The new retailers are excited about opening large stores in a re-emerging commercial district that will be packed not only with residents and office workers but also with shoppers arriving on several subwqy lines. The Union Square area is going to get a real injection of retail energy, said Michael J. Vaatola, chairman of Lionel whose Kiddie City is mov that is partly controlled by developer Glick, 41 ill spread to neighboring communities.

Zeckendorf Towers' golden pyramids of light Bn irritating reminder of the development "preqnnw 1 that is hovering over the Lower East said law 1 Kaplan, who heads the zoning committee Con mar. nity Board 3. -w The Union Square of today abounds 'withlec iae of the past and portents of the future, si irvii vors of the areas bargain-basement' retail let vjty and symbols of gentrification. One landmark building; the Metropolis Cafe on Union Square West, touts a $17.50 brunch that includes poached quail eggs with braised spinach and golden caviar amid live trees and live Jazz or clamncal music. Across Blast 16th Street, Jasons Restaurant, in a tacky-looking white-brick building, offers franks and beans with a cup of soup or salad for $4.50 at its orange plastic seats.

A few yards west on 16th Street, 1 stored for retail and office use because zoning restrictions would have nude construction of a new building less profitable, Pilevsky said. The Gap was seeking a store in Zeckendorf Towers whose tenants include Federal Express and a ritzy supermarket but negotiations fell through. PILEVSKY, whose interests range from suburban strip shopping centers to Manhattan hotels to writing books on international affairs, plans to replace a row of discount stores with a condominium and retail complex across from the south end of the park, on East 14th Street between Broadway and Fourth Avenue, in conjunction with the owner of the blocks two-corner site. We think the site is as good as, if not better than, Zeckendorf said Ira Krause, president of First Sterling which owns the comer sites and is negotiat- Continued on Page 13. Books is adorned with posters of Mao and Lenin.

And a few blocks south, discount stores such Idas! Paterson Silks and Kids Town abound. Across the four red-brick towers of the 200-million IZeckendorf complex on the site of what was the long-n vacant S. Klein Department Store form geometric patterns with the Con Edison buildings cfocktower. j-The 650 condos range' from $150,000 to $700,000. fj HE AREA is undergoing a profound reinven-II tkm, said Mitchell Moss, director of the Ur-U ban Research Center at New York University.

The danger is that it will become yuppieland but thats unlikely because there is a lot of diversity in the area already. The newest wave of future retailers sounds more like a suburban shopping center than the boutique-' filled Upper West Side. Pergament will put its first Manhattan store in 60,000 square feet of the Mays Department Store building; which is being sold to a Pilevsky-led development group, including William Zeckendorf Jr. and Arthur Cohen. The group plans to remodel Mays into retail space for several tenants, probably including Marshalls, Pilevsky said.

(The recent collapse of some bricks on the Mays facade has delayed completion of the deal until questions about structural safety are answered.) Pilevsky said the office building behind Mays, on- 13th Street and Broadway, will be renovated and the office space will be re-leased. Retail space, which now houses The Village Voice, will be converted to an antique furniture market with a dozen merchants. Hermans and Walgreens had been negotiating for the site controlled by a group including Pilevsky, Albert Nassim and Roger Fisher that Kiddie City ended up taking on the east side of the park. The cast-iron buildings on that site are being re (0 8 Z3 I i i i I If I I 14 I M'O I mvi i i I I 1 1 i II I i ll-W 4 to'--, I I I. I-I ft i i I to 4 m- a I T- 5 I i.U'tilSWSWai 1 i ibiW ppeswee.