NEW YORK CITY-In a unique arrangement, 455,000-sf of a one million-sf tower in Lower Manhattan will be used by New York University Downtown Hospital and Pace University, while the rest of the space will be taken up with residential housing. The project will receive a commercial Liberty Bond inducement of $243 million toward construction, while the proposal for the top 45 stories is currently being reviewed by New York City’s Housing Development Corp. for residential Liberty Bonds.

Forest City Ratner Cos. is developing the site with architect Frank Gehry at the helm. Also included will be 20,000 sf for retail and 80,000 sf of below-grade public parking.

Sitting adjacent to the hospital’s existing site, the facility will serve as a 25,000 sf ambulatory care unit used primarily for outpatient care. In addition, the hospital will own half of the projected 400 parking spaces.

Pending approval by its board of trustees, Pace University will lease 330,000 sf that will serve as residence hall space for 600 students, as well as home to the Lubin School of Business, a welcome center, admissions office and art gallery, general-purpose classrooms and dining and fitness facilities.

When construction gets under way early next year, it is estimated that the endeavor will generate approximately 1,546 total full-time jobs in additioin to more than $14 million in direct and indirect taxes during that timeframe. Also, as a result of its expansion, Pace University plans to increase employment as well as the number of students enrolled.

Liberty Development Corp. chairman Charles A. Gargano cites this project as a reason why the state is seeking a five-year extension of the Liberty Bond program deadline which currently expires at the end of this year. “It is vital to the stability, strength and growth of this area to continue these types of incentives so that developers and businesses are attracted to Lower Manhattan,” Gargano says.

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