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Agreement to Create Brooklyn Cruise Terminal!



 
 
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Old January 13th, 2005, 03:31 PM
Ray Goldenberg
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Default Agreement to Create Brooklyn Cruise Terminal!

Hi Everyone,

I received this press release from the New York City Economic
Development Corporation and thought it would be of interest. If you
have missed any of my news' postings, they are available on my web
site.

Best regards,
Ray
LIGHTHOUSE TRAVEL
800-719-9917 or 805-566-3905
http://www.lighthousetravel.com


Mayor Michael R. Bloomberg and Governor George E. Pataki Announce
Long-Term Lease Agreement to Create Brooklyn Cruise Terminal

Cruise Facility at Brooklyn’s Piers 11-12 to Create 600 Jobs
Mayor Michael R. Bloomberg and Governor George E. Pataki today
announced the signing of a long-term lease agreement that will allow
the City to move forward on its plans to create a modern cruise
terminal on the Brooklyn waterfront. The lease agreement reached
between the City’s Economic Development Corporation (EDC) and the Port
Authority of New York and New Jersey enables the City (PA) to take
control of Piers 11 and 12 and proceed with the design and
construction of the $30 million facility, which is expected to create
at least 600 new jobs. Construction of the cruise terminal is part of
the City’s larger $200 million effort that was unveiled by the Mayor
last year to renovate and expand its cruise facilities. The plan is
intended to promote the fast-growing industry by building a new
terminal in Brooklyn and completely overhauling the New York Cruise
Terminal on Manhattan’s West Side to support the growing number of
passengers flowing into New York’s ports.

“One of our most important economic development goals is to restore
the greatness of New York City’s waterfront by adding new uses that
create jobs and offer residents access to the water, and nowhere is
that transformation occurring faster than in Brooklyn,” said Mayor
Bloomberg. “As I said yesterday in the State of the City address, two
of the world’s largest cruise companies, the Norwegian and Carnival
Cruise Ship lines, have committed to New York as their exclusive
Northeastern port of call through 2017. This new facility will help us
take advantage of the rapidly growing cruise sector, which already
accounts for thousands of jobs and more than $600 million in annual
economic activity for New York City. Once completed, the Brooklyn
facility will be a major destination for the finest ships in the world
and I want to thank Governor Pataki, the Port Authority and EDC for
reaching this important agreement that will help us continue the
revitalization of Brooklyn’s waterfront.”

“Revitalizing our waterfront is a key part of our efforts to grow New
York’s economy,” said Governor Pataki. “Maritime activity has been a
part of the fabric of the Brooklyn waterfront for decades, providing
jobs and economic activity for the borough and the region. This lease
signing will ensure that the waterfront remains a vibrant hub for
maritime activity for many years to come, generating 600 new jobs and
millions of dollars in economic activity for New York. Our partnered
efforts with Mayor Bloomberg will make sure that New York City remains
one of the premier destinations for cruise ships from around the
world.”

The initial lease term is five years with two additional five-year
renewal options. The lease calls for the City to pay the Port
Authority about $560,000 a year in rent, starting in September 2005.
These payments will be funded through revenue generated by fees from
cruise lines, concessions and other subtenants at the facility. The
design of the Brooklyn terminal is progressing rapidly; the design
team has conducted all site and utility surveys and the preliminary
design has been reviewed by the cruise lines and Customs officials.
Construction is expected to begin in February with an anticipated
opening in late 2005.

“Soon Brooklynites will be able to board cruise ships in Red Hook and
head straight for the Caribbean or England, but if you are like me,
you’ll want to stay close to the ship for fear of missing out on the
next delicious buffet,” said Brooklyn Borough President Markowitz.
“And visitors from all over the world will experience the best of
Brooklyn – our fabulous food, historic homes, diverse neighborhoods,
top notch museums and more. The arrival of the cruise ship industry is
a major step toward the revival of Brooklyn’s waterfront and will
create even more jobs for Brooklynites who need them. I applaud the
Governor, the Mayor, EDC and the Port Authority for working together
to ensure Brooklyn’s future as a world-class tourist destination.”

“It is critical to make the necessary infrastructure improvements that
will secure New York City’s position as a first-class passenger ship
destination,” said EDC President Andrew M. Alper. “By adding a cruise
facility in Brooklyn, we are making sure that we will capture our fair
share of the growth of this rapidly growing industry and increase jobs
for all New Yorkers.”

“Today’s announcement is a tremendous milestone in our efforts to
transform New York City’s waterfront,” said Port Authority
Vice-Chairman Charles A. Gargano. ”The attraction of the fast growing
cruise industry and these construction and tourism jobs, is proof
positive of Brooklyn’s renaissance. With Governor Pataki’s leadership
and our partnership with Mayor Bloomberg, we will continue our efforts
to restore New York City’s waterfront to its full potential,
revitalize Brooklyn and create opportunities for all New Yorkers.”

“New York City’s plan to develop a passenger ship terminal in Brooklyn
is consistent with the Port Authority’s commitment to maintain a
vibrant maritime presence in the borough,” said Port Authority
Executive Director Kenneth J. Ringler Jr. “This new facility in
Brooklyn will allow New York City to handle the phenomenal growth in
its cruise industry, and will ensure that the City remains a choice
destination for cruise operators.”

After conducting numerous navigation, traffic and design feasibility
studies to determine the best location for a cruise ship berth in
Brooklyn, EDC decided Pier 12 is the preferred location for an initial
terminal. During the early planning process, the local community
expressed concern regarding the impact of traffic on local streets. To
address these concerns, EDC worked with the Port Authority to secure
Pier 11, which will provide vehicular access to the terminal to reduce
the traffic impact on the community. The City is leasing about 28
acres from the Port Authority, which includes Piers 11 and 12, the
associated upland area and the Atlantic Basin. The cruise facility on
Pier 12 will provide sufficient warehouse and upland area to
accommodate the operational needs of the cruise lines. A passenger
pick-up and drop-off area and approximately 400 parking spaces will be
provided on Pier 12, while Pier 11 will offer a vehicular access road
to the terminal.

In April, Mayor Bloomberg announced the City’s Master Plan to create
three modern cruise ship berths at the New York Cruise Terminal and
one berth in Brooklyn in the next four years. Based on current
projections of the industry’s growth, it is anticipated that an
additional berth will be needed in Brooklyn in the next ten years. The
City has already reached long-term agreements with Norwegian Cruise
Lines and Carnival Corporation, two of the world’s largest cruise
companies, which require them to bring at least 13 million passengers
to New York City and pay the City more than $200 million in port
charges through 2017. In return, the City committed to give each line
preferential berths on specific piers and is offering the cruise lines
incentives in the form of fee reductions in exchange for volume and
revenue guarantees, along with providing incentives to promote growth
beyond current projections.

Improvements at the New York Cruise Terminal in Manhattan will include
all new facilities to accommodate larger ships by installing modern
adjustable gangways and expanded pier aprons. This will allow
passengers and supplies to be loaded and unloaded with greater comfort
and efficiency. New terminals will segregate embarking and
disembarking passengers onto separate levels, allowing for more
efficient use of space and reducing congestion caused by passengers
arriving and departing at the same time. In addition, the new
facilities will have enhanced security measures, new passenger
drop-off areas and increased parking facilities. Renovations to the
New York Cruise Terminal will be completed in 2009.

Almost 900,000 passengers came through the New York Cruise Terminal in
2003, up from an average of 400,000 in the 1990s. That is expected to
increase to 1.5 million passengers by 2017. EDC estimates that the
cruise industry supports more than 3,300 jobs and has total economic
activity of about $600 million, which is expected to grow to $1.2
billion by 2014.
 




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