As documented by the New York Building Congress report, Construction Outlook 2006-2008, New York City remains in the midst of an unprecedented real estate building boom. The next generation of office buildings and apartments is currently rising or being planned in all five boroughs. In addition, the Bloomberg administration’s five-borough development plan contains grand yet attainable aspirations for the future in terms of job and population growth.

The most critical issue now is sufficient and reliable infrastructure to support current and future development in New York City. Among the most vital challenges are ample and affordable electricity, efficient transportation systems, expanded water and sewage treatment and affordable housing for middle class New Yorkers.

Governor-Elect Eliot Spitzer speaking at a New York Building Congress forum

“For decades, New York City has struggled merely to maintain the subways, bridges and underground systems that gave rise to this great metropolis,” says New York Building Congress Chairman Dominick M. Servedio. “We must do better and go much further by finding the will and the financing to expand and modernize our infrastructure now to accommodate the additional jobs and population projected over the next two decades.”

Adds Building Congress President Richard T. Anderson,“In the end, great cities do more than accommodate growth; they stimulate, guide and support it toward long-range objectives. New York has that opportunity now as much as any time in the last half century. It is important that we do not repeat the mistakes of the past, when our infrastructure was neglected.” While the road is long and financing is always difficult, there is reason for optimism.

• Since coming to office in 2002, Mayor Michael Bloomberg and his administration have demonstrated tremendous long-range vision and laid expert strategic plans.
• Governor-elect Eliot Spitzer’s historic margin of victory offers him the mandate to fulfill his pledge to reform Albany and thereby create a government that is more responsive to the needs of the City. The Governor-elect also has demonstrated throughout the past few years that he is willing to engage in substantive dialogue with the building industry about the City’s long-term transportation, energy and educational needs.
• Perhaps most importantly, New York seems to be on the verge of an unprecedented era of regional cooperation on infrastructure. As evidenced by his address at a Building Congress forum in September (see page three), New Jersey Governor Jon Corzine understands and is committed to the need for New York and New Jersey to cooperate on electricity infrastructure and mass transit, in particular.

Mayor Michael R. Bloomberg with Deputy Mayor Daniel L. Doctoroff announcing a plan to create up to 5,000 units of affordable family housing on 24 acres of the Queens West development in Long Island City

The New York and New Jersey Commissioners of the Port Authority, who had earlier that day ratified an historic agreement to speed redevelopment of the World Trade Center, attended that forum in yet another sign of mutual cooperation. The need to update and expand our infrastructure is recognized. Solutions have been proposed to solve a range of concerns, such as creation of new, affordable housing, expansion of the mass transit system, school construction and waterfront development.

The key now is for public officials at all levels to work together to develop a coordinated, long-term action plan and find creative and dedicated sources of financing – always the most difficult challenge.

Rendering of a proposed, two-track Trans-Hudson Express Tunnel that would stretch from Northern New Jersey to 34th Street in Manhattan

The design, construction and real estate industry also plays a critical role. Its leaders must keep stressing the benefits of dedicated investment with recalcitrant lawmakers and an often skeptical public. Industry leaders also must continue pressing for new innovations and approaches to the myriad engineering, design and construction challenges that are faced when trying to modernize an urban environment as intricate as New York City’s.

The challenges are great and the stakes are high. If New York sticks with the status quo, today’s building boom will end when the City reaches its capacity to accommodate new jobs and residents, and a period of declining economic growth will surely follow. If, however, New York sets to work now to accommodate anticipated growth, this period could be viewed as the time when a new era of enormous economic potential was realized.