New School Freak Out Freezes Block

The Villager reports:

State Supreme Court Justice Jane S. Solomon on Monday dismissed the lawsuit filed last year challenging the Department of Parks’ reconstruction of the pavilion at the north end of Union Square Park.

The dismissal means that the reconstruction of the pavilion, which is currently underway, can proceed and include the infrastructure for a seasonal restaurant.

Members of the Union Square Community Co-alition and NYC Park Advocates had sued to block the entire reconstruction of the north end of the park and the plaza north of the park, claiming that the city failed to comply with state environmental laws and city land-use procedure, and that preparing the pavilion for private use as a seasonal restaurant was an illegal alienation of public land.

Judge Solomon ruled on March 30 that all aspects of the rehabilitation project were in a category of actions that do not require any further environmental review than was already conducted by the Parks Department.

The judge ruled also that the alienation claim was “not ripe” because a final determination of the use of the pavilion is subject to further administrative action — namely a request for proposals, or R.F.P., from private concessionaires to operate a restaurant. At the same time, the judge found that the zoning and land-use procedure issues were also “not ripe” because they rest on allegations that the operation of a restaurant would relinquish control of the park.

Nevertheless, she held that the plaintiffs would have the right to file a lawsuit later in the process.

Solomon said that operating an eating establishment in the park is consistent with public purpose, noting that the area around the pavilion, now being converted into an expanded playground, was previously used as the outdoor restaurant Luna Park Cafe. But she also said that not all restaurants in city parks would necessarily be permissible.

Parks Commissioner Adrian Benepe hailed the verdict, saying, “We are gratified at the court’s decision to allow us to continue the restoration of Union Square Park’s historic pavilion with public space and a seasonal concession. The pavilion is part of the Union Square Park’s north-end renovation, which includes a playground three times larger than previously, a restored plaza and many more trees.

The retail retreat continues, with the departure of American Eagle from Union Square West.

Yesterday at 4PM, an attendant in the parking garage on 13th across from our building put an SUV into reverse by accident and drove it out a sixth floor window. The NY Post has all the details plus video. Click here.

It doesn’t look like much now, but a new bar, Everything’s Jake, is coming to 13th St. between University and Broadway. It’ll be your place to go for a nightcap after dinner at PF Chang’s.

What might be next in the Virgin Megastore space? The New York Post has these rumors:

RELATED Cos. is negotiating with several tenants at One Union Square South for the Virgin Megastore space, sources said. The chain, which was purchased by Related and Vornado Realty Trust in 2007, is closing the store in late May or early June. All US-based Virgin Megastores are due to shut down by the summer.

Related controls the Union Square outlet, while Vornado handles the one in Times Square, which is closing in April to make way for Forever 21, the retailer that signed a megadeal for 100,000 square feet. The two real-estate giants licensed the then 11-unit Virgin chain precisely so they’d be able to control the retail in their buildings.

Sources said the asking rent in Union Square has recently dropped to $15 million per year from $25 million. According to its CoStar Group flyers, Winick Realty is seeking $700 a foot for the 26,000-foot ground floor and $150 a foot for the 31,035-foot lower level. One Union Square South, at 52 E. 14th St., includes the hulking Metronome artwork on the lower north side of the luxury apartment tower that rises from the retail base. Some of the prospective tenants include CVS and Best Buy, which has its eye on the Circuit City space now being controlled by the bankruptcy court.

Last fall, Related signed a letter of intent with Nordstrom Rack for about 40,000 feet. But Nordstrom in the end was reportedly loath to bring its off-price success story into the Big Apple before it snagged an A-plus site for the upscale department store flagship and nixed the Union Square opening. A Nordstrom spokeswoman said, “We will keep looking for a great spot to serve our customers.”

There is also talk that Forever 21 might jump from Vornado’s Whole Foods building at 40-48 E. 14th St., which also hosts Filene’s Basement, and expand into 19,200 feet at One Union Square. The Forever 21 store, which opened right after 9/11, has seven years left on its deal. But a buyout doesn’t make sense in the current economic climate.