The Bloomberg administration Tuesday unveiled its request for a new engineering campus. It's the beginning of a long-term quest to challenge the West Coast for supremacy in the tech world.
Mayor Michael Bloomberg announced Tuesday details of a request for “universities near and far” to submit proposals to build or expand a science and engineering campus in the city—a project he called “one of the most promising economic development initiatives in the city's long history.”
In a speech at the Crain's Future of New York City conference, the mayor said a 1 million-square-foot applied science campus could create more than 7,000 construction jobs and spin off some 400 new companies, creating 22,000 permanent jobs. Some $6 billion in economic activity could be generated, resulting in roughly $1.2 billion in new tax revenues added to city coffers. “During the 1980s and 90s, Silicon Valley—not New York—became the world capital of technology startups, and that is still true today,” Mr. Bloomberg said. “But if I am right, and we succeed in this mission, it won't be true forever.”
The city is offering real estate on Governors Island, Roosevelt Island or at the Brooklyn Navy Yard at virtually no cost, and is pledging up to $100 million in infrastructure upgrades. It expects that contribution to be “matched several times over” by the winner or winners. Sources say the city could end up selecting two separate projects, and that Roosevelt Island is attracting the most interest, followed by the Navy Yard.
Roosevelt Island is believed to be the most attractive site because of its proximity to Manhattan, its public transportation and easy access to Queens neighborhoods that could accommodate startups launched by engineering students. Governors Island has infrastructure and transportation challenges and the Navy Yard is not accessible by subway. Applicants can also propose other sites.
According to the request for proposals, the winning entry must lay out a plan to develop research that will lead to the formation and expansion of companies in the city in industries with substantial growth potential. It calls for institutions to propose graduate-level programs on the campus and mechanisms to transform research into commercial activity. “We understand we will not catch up to Silicon Valley overnight,” Mr. Bloomberg said. “But—as with everything we do—we are taking the long view.”
The initiative was launched at the end of 2010 when city officials asked educational institutions for expressions of interest in building a new engineering and applied sciences campus. The city received 18 responses from 27 institutions around the world, including Cornell University, Stanford University and Technion-Israel Institute of Technology. They outlined ideas ranging from environmental sciences to nano-engineering. All of the institutions that expressed interest are eligible to respond to the request for proposals.
Cornell, which in the expression of interest phase proposed four hubs, including one encompassing technology for healthier living, sent a large contingent to hear the mayor's Tuesday speech. The university has put together a trustee task force to lead its bid, including Irwin Jacobs, the co-founder of Qualcomm; Andrew Tisch, co-chair of Loews Corp.; and Abby Joseph Cohen, a partner at Goldman Sachs Group Inc. All are Cornell alumni. “We have been in New York City a long time,” said David Skorton, the university's president. “This is part of our DNA.”
Stanford issued a statement Tuesday afternoon saying it planned to make a proposal by the October deadline. The university's initial interest has centered on an engineering, computer science and business program based on Roosevelt Island. The university outlined plans for 200,000-square feet each of residential towers and academic buildings centered around an open green space, with cafes, retail shops, an auditorium and gym on the edge of the East River. "Stanford University brings its entrepreneurial culture, excellence in engineering and technology, proven track record of partnering with industry and history of successfully transferring research advances to the marketplace," said President John Hennessy.
Responses to the call for proposals are due in October, with a winner or winners to be chosen by the end of 2011. Projects will be judged based on economic impact and feasibility (40%), respondents' track records (40%) and their connections to the local community (20%). Ground could be broken in 2013. The opening of the first phase of the project, which includes at least 250,000 square feet of development, is scheduled for 2015.
Mr. Bloomberg described the effort as the city's “most ambitious attempt to counteract a decades-long economic trend that once threatened the very future of American cities”—the decline of manufacturing jobs. New York managed to survive an 81% drop in manufacturing jobs, to 150,000, between 1966 and 2001, when Mr. Bloomberg was elected. But it did so largely on the back of Wall Street, becoming dependent on its booms and suffering from its inevitable busts.”
The request for proposals issued Tuesday is an attempt to shift the city's reliance away from Wall Street and toward a future based on technology. In remarks at the conference, Bloomberg L.P. Chief Executive Dan Doctoroff said New York is “on the cusp” of establishing itself as a player in the tech world. “This can really be the catalyst for making that a reality for the long term,” he said.
By Daniel Massey / Crain's New York Business
July 19, 2011 5:12 P.M.
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