Over $20 Billion New York Development May Be Canceled Due To Weak Economy

March 31, 2008 8:51 a.m. EST

New York City, NY (AHN) - As the Big Apple's economy seemingly turn from bad to worse, over $20 billion worth of development projects are at risk of being canceled. A number of the projects were designed by renowned architects.

Among the ambitious projects now with dubious futures are the Atlantic Yards towers in Brooklyn designed by Frank Gehry and the Manhattan Moynihan rail center in midtown. The developer of Atlantic Yards, Bruce Ratner, said the $4 billion project may be delayed because of funding problems.

Elliot Sclar, an urban planning professor at Columbia University, told the New York Daily News, "It really was an amazing run for cities and particularly for New York... But it appears that it may be over now. The obvious fear now is that these projects won't materialize and the revenues the city expected to get from them won't materialize."

The Madison Square Garden was supposed to move into a plush new location along W 33rd St as part of a $14 billion project that would have redeveloped the Farley Post office into a train station and Madison Square Garden's new home. Last week the owners of the Garden said instead of moving they would renovate the 4-decade old arena.

For some projects it means scaling down or postponing for better times. Robert Yaro, president of the Regional Plan Association, said "We're not going to throw in the towel on any of these projects, but less dramatic and less expensive designs may be needed. Yaro added, "The last time we put major projects on hold - like the Second Ave. subway or East Side access - it took a generation to get them moving again. We can't let that happen."

A growing number of American economists are of the opinion the U.S. economy would be less than the earlier projected 1.5 percent 2008 growth rate to a lower rate closer to zero.

With the Friday report of 58,000 jobs disappearing in March for the third straight month, Barry Ritholtz, directer of Fusion IQ's research told the New York Post, "I wouldn't be surprised to see a deep negative number, and that will be the final nail in the coffin for the people who are not sure if we're in a recession."