Mayor Bloomberg is flanked by Extell Development Corp. executives Raizy Haas, left, and Gary Barnett during the International Gem Tower press conference on 47th Street.
Plans for the long-awaited International Gem Tower, a 34-story, $750 million edifice that many Diamond District merchants hope
will revitalize 47th Street, were unveiled May 19 during Mayor Michael Bloomberg’s daily press briefing, which was held in front of the construction site at 50 West 47th Street.
For Extell Development Co., developer of the gem tower, the event was a hit, with a large media contingent in attendance, and the Mayor joining with business and city government leaders to lavish praise on Extell Development Co. and chief executive Gary Barnett for building during a down economic cycle.
“This serves as a tremendous vote of confidence in the future of New York City at a time when it’s much needed,” said Bloomberg, who called the Diamond industry “one of New York’s best friends and one of New York’s enduring industries.”
Bloomberg added, “If you are a developer or business person, the time to invest is now, not when the economy comes back and things are more expensive. I thank Extell for their confidence in the future.”
Extell first announced plans for a New York tower in 2006. But delays caused by city planning issues, permits, and the objections of neighbors on 47th Street kept the project from proceeding as originally planned. But with the excavating done, and concrete poured into the foundation, the next phase is now slated to begin around mid-June and entails the construction of three basement levels that will house a vault operation, building utility infrastructure, parking facilities and retail. During this phase, which will take at least six to nine months, Barnett will continue to try and sell or lease space in the remainder of the building to financial firms or corporations, which would then have their own entrance on 46th Street.
Completion of the tower is slated for the second quarter of 2011, according to Lipton.
Extell will invest nearly $300 million in private capital for the next phase of construction, and Barnett said he is confident of raising the other $450 million. Barnett said that while no big-name tenants have been signed yet, he is receiving a good deal of interest. Barnett will apply through the U.S. Commerce Department for “free-trade zone” status to attract foreign buyers (in a free-trade zone, tariffs and quotas are eliminated and bureaucratic requirements are lowered in order to attract companies by raising the incentives for doing business there.)
When completed, the International Gem Tower would have 748,000 square feet of space, and accommodate up to 250 businesses (wholesalers, retailers, manufacturers and designers) while generating an estimated 3,000 jobs.