MTA New York City Transit Fulton Street Transit Center FEIS and Section 4(f) Evaluation CHAPTER 7: SOCIAL AND ECONOMIC CONDITIONS 7.1 OVERVIEW The Fulton Street Transit Center (FSTC) would be constructed within a vibrant retail, commercial and residential neighborhood in Lower Manhattan. Pursuant to Presidential Executive Order (EO) 13274 - Environmental Stewardship and Transportation Infrastructure Project Reviews, this chapter presents the potential impacts of construction and operation of the FSTC on the social and economic conditions in that neighborhood. These conditions include: land use, zoning and public policy; economic conditions such as employment opportunities and business activity; and, neighborhood character, including population, housing and recreation and cultural facility characteristics. Two (2) critical planning issues shaping the future of Lower Manhattan are the lack of regional transit connectivity; and the transformation of the area from a daytime commercial community to a 24-hour residential and commercial community. The events of September 11 had significant consequences for both these planning issues and have reinforced the importance of revitalization for Lower Manhattan. In addition to the assessment of the potential environmental impacts of the FSTC, this chapter also presents a summary of current revitalization policies and plans that are influencing transportation strategies, along with residential and economic development, within Lower Manhattan. The discussion of social and economic impacts evaluates potential impacts analyzed in other chapters of the Environmental Impact Statement (EIS), including traffic and transportation, noise and air quality, safety and indirect development impacts. The analysis evaluates both benefits and/or adverse impacts associated with the FSTC that may affect socioeconomic and community characteristics, either temporarily during construction, or permanently during operation. An analysis of the cumulative effects associated with the FSTC and other actions in Lower Manhattan is contained in Chapter 20. The chapter is divided into three (3) separate sub-chapters as follows: • Sub-Chapter 7A: Land Use, Zoning and Public Policy; • Sub-Chapter 7B: Economic Conditions; and, • Sub-Chapter 7C: Community Character. Each sub-chapter includes a description of the relevant study area, analysis methodology, a profile of the affected environment, impact analysis and proposed mitigation measures. 7.1.1 CONTEXT AND KEY ISSUES The primary study area used to analyze social and economic conditions and potential impacts under the No Action and Build Alternatives is bounded by Chambers Street to the north, Pearl Street to the east, Exchange Place to the south and West Street to the west. This study area includes the grounds of the former World Trade Center (WTC) complex. The social and economic conditions studied include: land use, zoning and public policy; economic conditions such as employment and business; and neighborhood character. The events of September 11 have had varying effects on each of these study components, which create several differences in the pre-September 11 socioeconomic conditions to those that currently exist. PLANS/POLICIES Several plans and policies, both pre- and post-September 11, have as their mission the revitalization of Lower Manhattan, emphasizing two (2) primary elements: increasing residential development in an attempt to create 24-hour activity in the area; and the improvement of transportation systems to and within the area. These improved transportation systems include measures to improve transit facilities, October 2004 7.0 Social and Economic Conditions 7-1 MTA New York City Transit Fulton Street Transit Center FEIS and Section 4(f) Evaluation intra- and inter-modal connectivity, subway systems and pedestrian access. Development of the FSTC is specifically cited as a component to achieving these City goals. It is also a significant element of EO 13274, issued by President Bush concerning the Lower Manhattan Recovery Project. While these plans were developed and implemented throughout the 1990s, the events of September 11 placed these goals at the forefront of New York City planning initiatives. The Lower Manhattan Development Corporation (LMDC) was created to foster that revitalization. Within the study area, the LMDC has proposed the redevelopment of the WTC site, a Fulton Street Retail and Arts/Entertainment District and the development of a new residential neighborhood on Fulton Street east of Broadway. LAND USE Land use within the primary study area is comprised of mid-rise and high-rise commercial office space, residential buildings, street-level retail establishments and religious facilities such as St. Paul’s Chapel, the Wall Street Synagogue and the John Street Methodist Church. The single largest change in land use within the study area as a result of September 11 relates to commercial office space; specifically, thirty- five million square feet of office space was either lost or damaged on September 11, which represents over 30 percent of all office space within Lower Manhattan. ECONOMIC ACTIVITY Although employment growth in Lower Manhattan was lagging behind the City as a whole, the events of September 11 dealt a major blow to employment levels in the area. Over 60,000 jobs were lost as a result of September 11 in Lower Manhattan and many employers relocated to elsewhere in Manhattan or to outer boroughs or suburbs. Employment in Lower Manhattan dropped from 12.2 percent of the City total to 10.5 percent (March 2002). Of the total businesses directly affected by September 11, only 27 percent had returned to Lower Manhattan by September 2002. Retail businesses located in the area of the FSTC are primarily characterized as “Pass-by Attractors” and are therefore highly dependent on pedestrian traffic. The Century 21 department store on Dey Street, a prominent Lower Manhattan discount department store, is one of the few “destination retail” establishments in the study area. “Pass-by Attractors” are also the most sensitive to construction disruption. NEIGHBORHOOD CHARACTERISTICS Throughout the 1990s, Lower Manhattan experienced an increase in the number of residents in the area as a result of public initiatives. From 1990 to 2000, the primary study area experienced a 113 percent growth in households. Because of the economic boom of the late 1990s, this residential growth was somewhat curbed. Immediately after September 11, thousands of downtown residents were displaced. Restoring occupancy has been a major objective of Federal, State and City governments. Within the study area, six (6) buildings were converted from commercial uses to residential on John Street during the 1990s. Similar conversion projects are proposed for buildings located on Nassau Street, Wall Street and Park Row. The primary study area has characteristically high concentrations of pedestrian traffic generated by the high number of workers during the business week. Outside the work week, the neighborhood is generally quiet and pedestrian and vehicular traffic is substantially reduced. Notable community facilities within the primary study area include the Trinity Church, St. Paul’s Chapel, the Wall Street Synagogue, the John Street Methodist Church, St. Peter’s Church, Pace University and New York University (NYU) Downtown Hospital. Pedestrian traffic variations and community facilities have not changed as a result of September 11. Other notable resources include the Corbin Building and the John Street – Maiden Lane Historic District. October 2004 7.0 Social and Economic Conditions 7-2 MTA New York City Transit Fulton Street Transit Center FEIS and Section 4(f) Evaluation 7.1.2 CONCLUSIONS CONSTRUCTION Construction activities of the FSTC (as represented in 2005/2006, the peak construction year) for both Alternative 9 and Alternative 10 - the Preferred Alternative, would bring about numerous impacts within the study area. Several of these impacts are considered to be adverse but would be experienced within a short time period relative to the operational phase of the FSTC. The construction of the FSTC under both Build alternatives would be consistent with the policies of the Federal, State and City governments, which have as their main objective the revitalization of Lower Manhattan. Alternative 9 would acquire and remove five (5) buildings on Broadway and Dey Street as a result of the construction of the FSTC Entry Facility and the Dey Street Access Plaza. These buildings are currently used for commercial purposes. the Preferred Alternative would acquire and remove these same five (5) buildings and would also require acquisition of the Corbin Building and integrate it with the FSTC Entry Facility. Because of the historic nature of the Corbin Building, which was listed on the National Register of Historic Places on December 18, 2003 and the qualitative value it provides to the character of the neighborhood, the building’s façade and other historic features would be preserved. Impacts on nearby land uses and community facilities would be minimized and mitigated through the Environmental Performance Commitments (EPCs) and the Construction Environmental Protection Program (CEPP), and related plans. The Corbin Building would be converted from commercial office and retail use to primarily public use with some retail elements. Both Alternative 9 and the Preferred Alternative would stimulate economic activity in Lower Manhattan directly through the infusion of capital expenditure