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                    January 17, 2006 





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                  Real Estate Scene '06 
                  May Look Much Like '05 
                  January 05, 2006
                  By Leonard Jacobs

                  Broadway, for all its power, prestige, and impact on our 
                  culture and economy, is still a community, like Off- and 
                  Off-Off-Broadway. When a theatre or an industry-driven 
                  business is threatened by, or falls victim to, New York City's 
                  superheated real estate market, the community tends to notice, 
                  worry, and rally. When all else fails, it mourns. For some, 
                  2005 will be recalled as a year in which much noticing, 
                  worrying, and mourning occurred. And 2006 seems poised to 
                  heighten those emotions.

                  Consider the high-profile threat facing the Broadway Dance 
                  Center. Not only does the organization, founded in 1984, sport 
                  the word Broadway in its name, it possesses a great Broadway 
                  provenance: Thousands of hoofers, including scores of Radio 
                  City Rockettes, theatre legends, and gypsies, have trained and 
                  taught there.



                  On Nov. 23, The New York Times reported that the center is 
                  mired in a legal battle with its landlord, the Extell 
                  Development Company, to keep its space at 221 West 57th St. 
                  Extell purchased the building and an adjacent site last June 
                  for a reported $67.5 million, the Times said, adding that the 
                  center's lease expires in 2012. Allison Ellner, the center's 
                  chief executive officer and director, said Extell offered her 
                  $1 million to leave but she declined, with relocation costs 
                  estimated at $3.4 million. Franklyn Snitow, an attorney for 
                  Extell, ominously noted that it would operate the building as 
                  long as "there are existing valid leases for the premises."

                  To this end, the Times reported, the Broadway Dance Center, on 
                  Sept. 9, "received a notice from Extell that they were in 
                  default of their lease for not having a public-assembly permit 
                  and that if the problem was not addressed within five days, 
                  their lease would be canceled." The center took legal action 
                  that staved off Extell's threat, but Ellner seemed to 
                  acknowledge what the owner of the property is ultimately 
                  aiming for. "I get that a high-rise has to go up," she was 
                  quoted as saying. "I get that this is a great view of Central 
                  Park. But we're not rich enough to move ourselves. We're 
                  barely rich enough to defend ourselves."

                  Yet by raising the question of whether the center's lease 
                  would continue to be viewed as "valid," Extell kicked the 
                  community into high gear. A noisy, press-seeking Dec. 1 rally 
                  drew some 150 people. In a Dec. 15 op-ed piece in Back Stage, 
                  writer-dancer Bonnie E. Erickson railed against "a mercenary 
                  real estate developer" whose priorities run counter to 
                  training the next generation of Broadway dancers. Midtown 
                  fears were heard downtown: On Dec. 7, the New York City 
                  Council held the third in a series of hearings, called "In 
                  Search of a Blueprint for a Cultural Community: Strategies to 
                  Address the Issues Facing the Performing Arts Community in New 
                  York City," and Alan Eisenberg, executive director of Actors' 
                  Equity Association, noted in blunt testimony how the Broadway 
                  Dance Center had come to symbolize the scene:

                  "Not-for-profit companies cannot afford rehearsal and 
                  performance space in the city. Real estate prices are 
                  skyrocketing and landowners are turning to businesses that can 
                  afford to pay the prices they demand while pushing out the 
                  not-for-profits. A perfect example of this is the Broadway 
                  Dance Center, where thousands of dancers take 
                  classes—including people like Brooke Shields. The center has 
                  moved twice in its 25-year history and now, once again, faces 
                  closing."

                  Indeed, much of the focus of the council's hearings was on the 
                  lack of affordable real estate—spaces for performers to 
                  perform in and to live in. The dilemma is dismaying in light 
                  of some astounding data cited by arts advocates in their 
                  testimony: Attendance at nonprofit performances reached 25.6 
                  million in 2004, while the city boasts approximately 2,095 
                  arts and cultural institutions, 150,000 individual artists, 
                  and more than 2,000 commercial arts businesses and 
                  professionals. Yet the hearings repeatedly noted how the city 
                  lacks a coherent policy toward the arts in general and the 
                  performing arts in particular. In reporting the testimony of 
                  Robert Yesselman, director of Dance/NYC, a City Council 
                  briefing paper noted his contention that for 50 years 
                  succeeding generations of performing artists "have colonized 
                  and improved neighborhoods, only to be eventually displaced," 
                  and that "the continuous lack of affordable living space…[is] 
                  threatening the city's cultural preeminence."

                  It isn't that there's a shortage of ideas for remedying the 
                  crisis. Eisenberg, for example, encouraged the City Council to 
                  provide money for initiatives to "turn raw and unused space 
                  into performance-related venues" and to encourage theatre 
                  construction. Norma P. Munn, chairperson of the New York City 
                  Arts Coalition, advocated property tax credits for landlords 
                  who rent to performing arts groups and the creation of a 
                  cultural land trust through which groups could own their own 
                  property. What action the City Council is prepared to take, 
                  however, remains unclear.



                  So real estate developers keep developing. For example, there 
                  is the question of what will become of a plot of land on West 
                  42nd Street between Dyer and Tenth avenues. Last November, 
                  Actors' Equity Association announced it would oppose the 
                  efforts of the site's developer, the Related Companies, to 
                  build an 1,800-seat venue for Cirque du Soleil as part of a 
                  skyscraper condominium complex. Previously located on the site 
                  were two Off-Broadway theatres, the Douglas Fairbanks and the 
                  John Houseman, as well as a six-story renovated tenement at 
                  432 West 42nd St. that held six floors of theatres and 
                  theatre-oriented spaces, all now demolished.

                  Equity's opposition came after Related and its chairman and 
                  CEO, Stephen M. Ross, applied to the New York City Planning 
                  Commission to build the complex to a 60-story height and to 
                  amend the "theatre bonus"—a city zoning rule designed to 
                  foster the construction of theatres on the south side of 42nd 
                  Street—allowing the structure to rise even higher. A space for 
                  Cirque du Soleil, the company argued, fits the definition of a 
                  theatre.

                  But the community, already dismayed by the demolition of the 
                  venues on West 42nd Street, soon raised its voice in 
                  objection. Fred Papert, president of the 42nd Street 
                  Development Corporation—the nonprofit group that led the 
                  rejuvenation of the block—stated in a Dec. 30 interview that 
                  Related must not be allowed to redefine the word "theatre." He 
                  warned, moreover, that if the New York City Planning 
                  Commission approved Related's plan, legal action could be 
                  taken, such as an Article 78 proceeding. According to a 
                  website dedicated to such maneuvers (www.article78.com), an 
                  Article 78 proceeding is used "to challenge action (or 
                  inaction) by agencies and officers of state and local 
                  government." And it brings the case before the New York 
                  Supreme Court.

                  Papert also supplied Back Stage with a Dec. 14 memo, prepared 
                  by Michael S. Gruen, an attorney for the 42nd Street 
                  Development Corporation, and submitted to David Karnovsky, 
                  general counsel of the New York City Planning Commission, 
                  explaining in detail the corporation's objection to Related's 
                  proposal. The memo's language is direct:

                  "The applicants emphasize Cirque's artistic aspirations and 
                  accomplishments, seeking to place it within an increasingly 
                  flexible public perception of 'legitimate theatre.' 
                  Legislative qualifications as to the meaning of 'legitimate 
                  theatre' make this effort problematical. But it is beside the 
                  point. If one were to concede that the Cirque is 'legitimate 
                  theatre,' its proposed accommodation would remain inconsistent 
                  with the size and character of Off-Broadway theatre and 
                  Theatre Row. The facility is enormous. Its auditorium is 
                  roughly four times that of the largest Off-Broadway house. 
                  Cirque du Soleil describes itself as spectacular entertainment 
                  deriving from the circus tradition—quite a contrast to the 
                  modest style of Theatre Row.

                  "Finally," the memo stated, "we are aware of no evidence that 
                  the highly successful Cirque du Soleil enterprise requires a 
                  public zoning subsidy to attract it to midtown New York. To 
                  the contrary, the circumstances—particularly the fact that the 
                  space it will occupy is more than twice the size necessary to 
                  achieve the maximum bonus—suggest a commercially advantageous 
                  relationship for the developer."

                  Curiously, Related's proposal for a theatre bonus is not the 
                  only one for the West 42nd Street site. Benjamin Kolbert, 
                  owner and president of the five Producers Club theatres on 
                  West 44th Street, stated in an interview that he has proposed 
                  building 15 to 20 Off-Off-Broadway theatres within whatever 
                  structure eventually rises. He said his proposal would cost $5 
                  million, far less than the $150 million he believes the Cirque 
                  du Soleil venue would require. To date, he said, he has not 
                  received a response from Related, and he thinks he knows why.

                  "Obviously, what [Related] wants to do is call Cirque du 
                  Soleil a theatre and get the bonus—and you know what that'll 
                  mean profitwise to them, with more floors to sell," Kolbert 
                  said. "But after 12 years of running the Producers Club, I 
                  have the management experience: I know how to build 15 
                  Off-Off-Broadway theatres. And these wouldn't be 199 seats; 
                  these would be under 100 seats—where the young writers, 
                  actors, and directors can show their wares. If we can make a 
                  deal with Related, all Stephen Ross and [Related Companies 
                  president] Jeffrey Blau would do is put up $5 million. It 
                  would save them $145 million, plus they would get the same 
                  theatre bonus, plus they wouldn't antagonize anyone, like the 
                  community board.

                  "Landlords," Kolbert continued, "are doubling and tripling 
                  their rent all over the city—where else are the theatre 
                  artists going to do their work? The trouble with Related is 
                  these are money people. To bring in Cirque du Soleil and give 
                  them $150 million—they want the city to put up that money, by 
                  the way—means nothing to them. They don't care. Those extra 
                  floors will give them a tremendous addition to their profits." 
                  Kolbert said that almost none of the recipients of his 
                  proposal—he mentioned Mayor Michael Bloomberg, three members 
                  of Community Board 4, Jeffrey Blau, and Marisa Redanty, 
                  president of the Manhattan Plaza Tenants Association—have 
                  responded.



                  Large theatre-related organizations, such as the Broadway 
                  Dance Center, and large real estate development firms, such as 
                  the Related Companies, are not the only groups affected by New 
                  York City's rising property values. On the last business day 
                  of 2005, the Blue Heron Arts Center, a nonprofit venue at 123 
                  East 24th St., closed. It had opened in 1999, and during its 
                  short existence over 100 theatre groups and other 
                  organizations used the 10,000-square-foot facility, which 
                  featured a 99-seat theatre, a 40-seat theatre, an art gallery, 
                  and three rehearsal studios.

                  Reached by telephone, Ardelle Striker, artistic director of 
                  Blue Heron Theatre, the venue's parent company, stated that it 
                  was "a sad day" for Off-Off-Broadway venues like hers. Jim 
                  Baldassare, a press spokesman for Blue Heron, stated that a 
                  "significant rent increase" was one of the main factors in the 
                  decision to close up shop, and he did not believe "a theatre 
                  will go in there" in the future.

                  It is not the only Off-Off-Broadway space facing closure in 
                  2006. Later this winter, 750 Eighth Avenue, a building housing 
                  several theatre companies—including the New Perspectives 
                  Theatre, the Pelican Studio, the Common Basis Theatre, and 
                  Nicu's Spoon—as well as McHale's bar, a popular watering hole 
                  for theatre folk for over 50 years, will be torn down. 
                  According to a Sept. 1 report in The New York Times, Jimmy 
                  McHale, the bar's owner, has heard rumors that the property's 
                  new owners, the 46th Street Development Corporation of 
                  Parsippany, N.J., will be erecting condominiums on the site.

                  But, oddly enough, that is just fine with Melody Brooks, who 
                  founded New Perspectives 15 years ago and remains its artistic 
                  director. In an op-ed piece published in the Dec. 29 issue of 
                  Back Stage, Brooks offered an alternative view of how the 
                  changing real estate scene is affecting the theatre industry.

                  "The fact is that we had increasingly become landlords in 
                  order to support our spaces, resulting in a constant drain on 
                  creative energy," she wrote. "Most Off-Off-Broadway 
                  companies—even those of NPT's size and longevity—have no paid 
                  full-time staff. The passion and drive of a few key people 
                  (with the founder usually at the forefront) is what keeps 
                  things going, and when they burn out, it's over….

                  "Many have assumed that I would be angry at the developers who 
                  will be erecting yet another luxury condominium on the site, 
                  or saddened by our eviction," she continued. "It is a great 
                  space—one of the best black-box theatres in New York—and it 
                  would be nice to think that someone was creating theatre here. 
                  But for me and NPT, this is actually a blessing in disguise. 
                  The old saying holds true: 'When a door closes, a window opens 
                  elsewhere.' There is a new sense of freedom to venture through 
                  that window, to find a 'new perspective' on the continued 
                  production of our kind of theatre in New York City while 
                  keeping the work affordable to audiences and finding better 
                  ways to support the artists who create it. And a space is not 
                  the defining factor in this effort."



                  Roger Armbrust contributed to this story. 


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                        An Evening With...Hugh Laurie 
                        January 17, 2006
                        'Back Stage West' will present a Q&A Hugh Laurie, the 
                        star of FOX Television's 'House', and recent Golden 
                        Globe winner for Best Actor in a Drama Series. The event 
                        will be moderated by National Film & Television Editor 
                        Jenelle Riley. 






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