Cathedral Announces Land Agreements

After extensive planning, the Cathedral of St. John the Divine has reached two separate agreements with AvalonBay Communities, Inc. and Columbia University regarding leasing of land on the Cathedral campus, known as the Close.

The Cathedral and AvalonBay have entered into a Memorandum of Intent for exclusive negotiations between the two parties regarding a residential rental property on a parcel of underutilized land on the southeast corner of the Close at 110 and Morningside Drive. The negotiations are expected to last until the end of October. During this period the parties hope to finalize the documentation to enter into a long-term ground lease.

“AvalonBay is pleased and honored to be selected to work with the Cathedral to effect an agreement that would permit the development of an apartment building on the Close,” said AvalonBay Senior Vice President Frederick S. Harris, who directs the company’s development activities in New York City, Southern Westchester and Long Island.  “We look forward to successfully meeting the challenge of developing a building that is both architecturally appealing and appropriate for this unique setting.  We believe that an AvalonBay community would be a welcome addition to the neighborhood, while generating long-term economic benefits for the Cathedral, the community and the City.”

One of the criteria for development, supported by Cathedral Trustees from the earliest stages of the project, is that any new building has to be of a high quality and compatible with the historic architecture on the Close. To meet this challenge, AvalonBay has selected the nationally recognized architectural firm of Kliment + Halsband to collaborate with SLCE architects, who will contribute extensive New York apartment experience.

AvalonBay, a publicly traded company (NYSE:AVB), develops, acquires and manages high-quality apartment communities in the Northeast, Mid-Atlantic, Midwest, Pacific Northwest and Northern and Southern California regions of the United States. All of the communities include rental - rather than for-sale - apartments that AvalonBay both owns and operates. The company is completing the development of Avalon Chrystie Place, the first of four buildings on Houston and First Streets that are to be constructed on four of the last parcels in the Cooper Square Urban Renewal Area.

The Cathedral has also reached an agreement that grants Columbia University a minimum of three-and-a-half years to exercise an option to lease and develop a parcel of vacant land on the north side of the Cathedral on 113 Street between Amsterdam Avenue and Morningside Drive. The agreement may be extended up to an additional four-and-a-half years, terminating after eight years if Columbia has not exercised the option to lease the property.

“This partnership with the Cathedral offers Columbia another viable option for addressing its long-term growth needs, while contributing to the wellbeing of the Cathedral and the members of the community that it serves,” noted Lee C. Bollinger, President of Columbia University.

“We are pleased with these agreements, which are an important part of a comprehensive plan to address the best possible use of underutilized areas of our campus, and are essential to the long term financial health of the Cathedral” said Dean James A. Kowalski, dean of the Cathedral.

A portion of the revenue will address needs of the operating budget, which is substantially underfunded. Revenue will also be earmarked to address significant deferred maintenance on the Cathedral and other buildings on the Close, and to rebuild endowment.

The Cathedral’s campus is bounded by Amsterdam Ave on the west, Morningside Drive on the east and extends from 110 to 113 Streets. In addition to the Cathedral, the campus is home to The Cathedral School; the headquarters of the Episcopal Diocese of New York; the Ithiel Town building, the oldest extant structure on Morningside Heights; and Synod House. A wide variety of religious, cultural and social service programs, including an after-school program, homeless shelter, and Textile Conservation Laboratory, operate out of these buildings.

“The potential revenue from each of the developments will help the Cathedral as it enters a new era of renewal and growth, and strengthens its mission to the many communities we have served for over a century. We will continue actively to solicit the input of our neighbors and elected and government officials as these agreements proceed,” added the Dean. “Potential new development on the Close would generate much needed revenue for the Cathedral and increase economic activity in the neighborhood through the creation of construction-related and permanent jobs.”