The number of construction jobs that continue in the New York City metro area, despite the stop order on non-essential work, with government records shows over 1,000 projects still in progress when CISLeads reported on this topic at the start of the month. The map shown in that April 6th publication has ballooned to over 4,000open projects. Key among these are affordable housing ventures, a stipulation that has kept many residential projects going despite the shutdown. However, a growing trend that’s beginning to crop up is that, for safety’s sake, several affordable housing contracts are either slowing or pausing in the wake of the ongoing COVID-19 crisis. There is also a growing concern that delays are going to cause rising debt problems for construction firms as lenders eye upcoming deadlines.

Why Are These Essential Construction Projects Still Shutting Down? 

Affordable housing is considered an essential part of construction, where other forms of residential construction are not, because it serves an already existing, but growing, demand for housing at a time of financial crisis. Before the COVID-19 outbreak, below-market-priced housing remained a primary concern for New Yorkers and found its way into the blueprints of many a project, as you can see in these four posts from the past year: (1) Making Every Floor Count (2)  Manhasset Square Redevelopment, (3) Bronx Point Complex and (4) Transforming Flushing. This need can only increase in a time of economic anxiety and massive shutdowns to contain the spread of coronavirus. 

The fact that some of even these essential projects are pausing indefinitely is an understandable reason for concern. Around the 12th of April, it was reported that at least 28 affordable housing ventures have volunteered to shut down. Ron Moelis, CEO of L+M Development Partners, stated that protecting his workers from undue exposure was at the height of his concerns, and it was for their safety that he chose to pause his firm’s tasks. Leaders at the New York Building Congress noted that the struggle is similar for many companies in the field. One must decide between finished sites that provide much-needed resources to the people of New York and the health and protection of their laborers, and a balance must be maintained. 

As deadlines continue to loom for some of these projects, with lenders keeping a close eye, some experts have speculated a potential danger for the construction industry in general. While Bloomberg reports that most banks acknowledge that now is not the time to turn antagonistic about debts, questions of timely return of investment remain. 

How Are the Remaining Open Projects Handling The Workload in Pandemic Conditions?

It is important to note that the earlier-mentioned reporting suggested around 30 stopped projects, but this is 30 out of more than 300 still open. Related Corporate Properties, for instance, is one such firm with projects still running, most notably Hudson Yards, and their example seems to be common. A representative from the firm reported that the site has fewer than 12 workers on site, all of whom submit to regular screenings for fever, wear protective gear, and sanitize the work area regularly. A staff of this size may seem untenable to the casual onlooker, but it is the price of progress while maintaining safe social distancing and cleanliness at this time. 

Whether more firms will press toward their deadlines or choose to pause for safety’s sake remain to be seen. The landscape for essential construction work will likely be ever-changing in the coming weeks. 

At the hind end of March, just ahead of the stop-work order for all non-essential construction, at least one major project managed to beat the clock, with only a few finishing touches needed for the entrance, sidewalk, and a few interiors. The Cove, situated at 43-12 Hunter Street in Long Island City, has reached its full height. 

With 30 percent of its rental units listed as affordable housing, it is very likely (though as of this publication unconfirmed) that the remainder of its needs for full completion will be met. Construction projects involving affordable housing are among those deemed still essential as COVID-19 continues to keep many ventures closed, including residential developments. 

A Timeline for the Cove’s Ongoing Construction

The Cove’s long journey to completion truly began three years ago, when plans by Rockrose Development were first announced in April of 2017. The seeds for this project were sown when Rockrose purchased the property for $1 million back in 2006, with plans to develop new rental space across the street from another Rockrose-developed property, the Hayden, a luxury rental property. When the plans were officially announced, SLCE Architects was the firm attached to the design, who further report that interiors are by Slade Architecture. 

Ground broke in early 2018, with excavation complete by July of that year, which is also when the first renderings of the Cove, previously dubbed “the Triangle,” were revealed to the public. Reports at this stage show that it was conceived as a mixed-use space early in its development, featuring luxury amenities but also retail space on the ground floor. No mention of affordable housing is present in reports made by March of 2019, when roughly half the structure’s curtain wall had been fully assembled. 

News that 30 percent of the apartments would be affordable housing would not come until September of 2019, when reports began to officially refer to the project as the Cove, likely owing to the growing demand for such initiatives in the metro area. 

What Can Be Found in the Finished Cove? 

The Cove, fully completed, rises 18 stories of reinforced concrete, spanning roughly 90 thousand square feet and some change. Within that structure, the following will be found:

• 4,000 square feet of retail space;
• 123 rental units; 30 percent of them (about 37 units) will be designated as affordable housing;
• Studio, 1-bath apartments averaging 505 square feet;
• 1-bed, 1-bath apartments averaging 705 square feet;
• 2-bed, 2-bath apartments averaging 815 square feet;
• A residential lounge for simple public gatherings;
• An outdoor rooftop terrace; and
• A fitness center.

In the Cove, while there are some smaller projects still yet to finish, most have to do with services that might not be deemed essential, such as retail and fitness centers. Currently, open rentals in the space are still pending, but this may be subject to change in the near future as the need for housing continues in spite of a pandemic.

First breaking ground in 2012, the 28-acre Hudson Yards project remains New York City’s single largest private real estate venture in the metropolis and even the nation at large. Its progress in the ensuing eight years has been incremental, coming together through multiple single projects. It presently stands near the end of its first phase, with the final half to follow. 

In the last year, CISLeads posted previously about the opening of the final phase of the High Line, a floating oasis that connects via the Coach Passage to this ongoing, monumental project, where recent developments give us a new look into Hudson Yards’ future and the future of its projects. 

Two Major Hudson Yards Structures Continue to Rise

In late March, it was reported that 450 Eleventh Avenue was finally reaching street level. The proposed 531-room hotel at its completion will rise to a height of just over 480 feet, and as with many skyscrapers, a steady base is needed, and this is the part of this particular construction project that is beginning to come to a close, at long last. Walls for the foundation appear to be finished, and work on the ground floor slab, as of the 21st of March, seems ready to begin. 

Perhaps the second most notable new structure taking shape in the Hudson Yards project is that of 50 Hudson Yards, significant because it is the final part of phase 1. Set in midtown, 50 Hudson Yards is set to far outpace 450 Eleventh Avenue’s apex at a gargantuan 1,011 feet in height. This project is coming together quickly, with it almost doubling in height since December. Construction will center around shaping this giant into 2.9 million square feet of leasable commercial space.

While both buildings are set to be completed in 2022, the city’s recent stop work order on all nonessential construction work may change this; either project may be continuing labor for the sole purpose of finishing any phases that would be dangerous to leave undone. 

The Related Company Seeks Federal Funding to Complete Second Half of Hudson Yards Project

With phase 1 set to finish in the next two years, eyes are already turning toward a smooth transition into phase 2. Stephen Ross, a real estate developer best known for the Time Warner Center development with The Related Company firm that he chairs, has been rallying in the hopes of securing federal money to bolster phase 2 of this extensive project. A loan to the tune of a little more than $1 billion is needed to kick off this last part of the project, which promises a multitude of construction projects extending into the next decade. It is moving forward in conjunction with Amtrak. At present, sources suggest that this is because the funding they are seeking requires cooperation with the local railroad in order to be viable. No official reports have been released since the stop work order on nonessential construction.

The Future: Years of Potential

Phase 1 is set to finish after 10 years of hard work, from groundbreaking to the final plate of glass installed. While many of these smaller projects promise to carry forward for at least another couple years, they are part of a larger whole that, if phase 2 is as extensive as the first, may show up to another ten years of additional work for New York construction workers. With recent orders to halt nonessential construction, interested parties will have to listen for updates on this long and ongoing project.

While the coronavirus epidemic began with hopes to return to normal operations at the start of April, the deadline continues to be pushed back as the reality of its spread throughout the US became more and more apparent. The state of New York has reported 123,000 cases and 4,259 deaths as of this writing, according to Worldometers. At the tail-end of March, Governor Andrew Cuomo added to his PAUSE program by issuing an order that all non-essential construction labor come to an immediate halt, with violators potentially liable to up to $10,000 in fines. 

What Counts as Essential Construction?

The new order would suspend most commercial and residential construction, with a few noted exceptions. This has left many firms and laborers wondering what projects will remain open, as this is likely to shape the face of the New York construction scene for some time to come. Essential projects would include any of the following: 

• Infrastructure projects including roads and bridges, utilities, and transit systems like the subways.
• Affordable housing and homeless shelter projects are permitted to continue. 
• Emergency sites, such as hospitals, clinics, or other healthcare facilities in development can continue. 
• Construction projects that would typically be deemed non-essential but count as emergencies, ie, to halt construction and leave it unfinished would be unsafe in its current state. Work may continue until it is safe to shut down the site.

Sites that are not equipped to maintain health and social distancing guidelines, even when they meet the criteria of an essential project, must also close. The government mandate also specifies that single workers, or people who are the “sole employee/worker on a job site” do not fall under construction work under these rules. There is no official confirmation that this means they are banned, but if it is not deemed construction work, then it can’t be deemed essential construction work. 

Major Projects in New York City Still Underway, Plus New Developments

Those curious about what ongoing projects remain essential can consult a map provided by the state’s Department of Buildings. Presently, over 1,000 essential projects are still running and can be navigated on the map by project type and location. 

Most notable are new developments underway, approved to help extend healthcare to New York’s most vulnerable at this time. Multiple temporary hospitals are in the works throughout the state, including the Brooklyn Cruise Terminal on Staten Island. It will add 750 hospital beds to care for patients who have tested positive for the coronavirus. Additional locations are coming together to handle non-COVID-19 affected patients in order to handle overflow, creating more space within hospitals to house the infected. 

Construction in New York City – Moving Forward

With only essential projects remaining open, construction work is taking a sharp turn away from largely residential and commercial projects for the time being. Laborers on open sites are still expected to social distance, and observe all precautions regarding cleanliness and personal health.