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August 4, 2008
Will Retail Continue to Trump Industry in Red Hook?

Roland Lewis, president and chief executive of the Waterfront Alliance, took questions about New York City's waterfront on the New York Times' Cityroom blog this weekend, and second up was Red Hook, and the Todd Shipyard, razed to make way for IKEA's parking lot. He called the loss a "tough blow to the maritime industry in New York," especially since a study confirmed we need an additional eight ship repair centers to stay in the maritime business. Red Hook's the perfect spot for such activity, he says, with its deep water, but retail continues to replace industry there. One rumor making the rounds in the neighborhood is that the vacant lots across from IKEA, where once the Revere Sugar Factory stood, are going to be a Sam's Club. That's right, Wal-Mart's stepbrother might be moving in. Anybody else heard such rumblings? Anybody think it's a little sad that prime waterfront space is being reserved for multinational corporations?
Answers About New York City's Waterfront [NY Times]
Photo by FrankLynch
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"Will Retail Continue to Trump Industry in Red Hook?"
Huh, no... Hells no!
Worst inflation in 27 years trumps tax rebates
Real spending falls 0.2% in June as incomes rise 0.1%
http://tinyurl.com/5w2e6v
Inflation surged in June. The personal consumption expenditure price index rose 0.8% compared with May, the biggest increase since February 1981.
Moreover, inflation's up 4.1% in the past year, the largest rate of growth in 17 years.
Let me tell you something. in the early 80's interest rates went up to 14% to curb inflation.
RIP Mutant Real Estate Asset Bubble.
Please someone come here and tell us every thing is Ok. I'm waiting for that Asshat!
The What
Someday this war is gonna end...
Posted by: what at August 4, 2008 11:01 AM
Only way you'll ever get jobs for red hook residents is retail. Only way....
And do you believe that large ship repair companies will pay for the land and invest hundreds of millions to build modern, full union 21st centry ship repair facilities in nyc?
Posted by: BK realestate veteran at August 4, 2008 11:03 AM
I confess to liking Ikea but that doesn't mean I think the whole area should now become big box stores. It's more important to keep a healthy balance of industry and community. the maritime industry used to be so much important and we should be building it up again and broadening NYC's economic base. there's enough waterfront property given over to fancy condos and parks. A working waterfront is crucial, especially now and the City should be doing everything to ensure that. Unfortunately our Mayor seems overly focused on finance and luxury housing, not industry. At least that seems to have been the trend since he got into office. I just think it plays up consumerism rather than broad based job creation.
Posted by: bxgrl at August 4, 2008 11:08 AM
From the looks of that picture, its really going to be a tough blow to the maritime industry. Looks like that building and dock area haven't been used since I was a kid. Bring on the Sam's Wholesale Club. They have all name brand merchandise that's dirt cheap in huge lot sizes. Just what we need with hikes in MTA, ConEdison, Keyspan, gas, and food to name a few.
Posted by: wburghipstersaredirty at August 4, 2008 11:19 AM
BK- yes, I do. And the City needs it. If there were a better economy and job market, Red Hook residents, and other NYers, would have jobs so they could spend on retail goods. Pushing retail at the expense of industry is shortsighted.
How long will a retail store survive in an economy like this? And retail jobs are not the highest paying nor do they come with great benefits (if Sam's Club is like walmart you can bet on that). It's like a house of cards- the entire country has lost so much of its manufacturing base yet we are a consumer society. Look at what is going on in the economy today and tell me again why you think we need more stores rather than industry. Just my particular rant but how many more tchotckes , and dresses do we need to be able to buy? From companies who manufacture in China?
Posted by: bxgrl at August 4, 2008 11:21 AM
I totally agreed with bxgrl policy-wise. However, ship repair facilities, if they were feasible at all as generally industry is not any more in NYC, would need cheap or free land to make it possible. Fuggedaboutit.
Posted by: BK realestate veteran at August 4, 2008 11:36 AM
Shipbuilding has peaked with the peak in the Baltic freight Index. orders are being cancelled with the major Korean shipbuilders.
Sell the fugly buildings on these lots to developers...condo, Sam's, Wal-Mart, the highest bidders. get the crap cleaned up and developed. Or turn large portions into parks, a la Chicago....which isn't going to happen because the city has no money.
No industry in their right mind is going to relocate a manufacturing facility into high-cost NYC. Get real.
Posted by: daveinbedstuy at August 4, 2008 11:37 AM
We don't need Sam's Club.
We have Costco already - a company that treats it's employees way better than most retail stores.
Walmart/Sam's Club is part of the problem in this country, not the solution.
Posted by: Flatbushrising at August 4, 2008 11:40 AM
Disagree, DIBS- Not investing in industry is a big mistake. Expecting the Financial sector and Wall Street to have NYC's best interests at heart rather than inventing even more ways to make money at everyone else's expense, is like expecting WAMU to give me a house. There's a bigger picture here and if we have the money to invest in overblown monstrosities like AY, we can find the money to build industry. Ship repair, not ship building- different thing. Maybe its time to stop thinking just of the here and now, and look to the long term and think things out a little differently than we have been.
Posted by: bxgrl at August 4, 2008 11:54 AM
let me get this straight: the financial sector is all about making money, but "industry" is not? come on. the history of industry has not been particularly friendly to labor and the environment.
Posted by: z at August 4, 2008 12:14 PM
I didn't say that. Of course industry is about making money. It's about making a broad based economy, not one dependent on speculation and the inventive use of more and more fees. As far as industry vs. labor and the environment, I don't think anyone can say the financial market has been any better. But the point isn't about that- it's about being too dependent on one or 2 "industries" for lack of a better word. And the reality that people need jobs and we have eroded the solid manufacturing base that produces them. China, meanwhile, is doing very well. We're all to blame for it- all across the board from unions demanding more and more to companies wanting to squeeze more and more profit out to funnel to fewer and fewer people. NYC doesn't need more retail. New Yorkers need to be saving and investing and making money- not spending it on more imported garbage.
the hue and cry for more retail is slapping a bandaid on a gaping wound. I'm not going into my socio-economic theory again- I blistered my fingers yesterday with that :-) but with the chickens of bad financial lending coming home to roost, one has to wonder why and to what purpose. Our financial health depends on American shopping? That's nuts. With what money? Americans are maxed out. The presidential genius comes up with 600$ to "jumpstart" the economy? How about a real plan to bolster industries that will create jobs based on work, not playing with numbers on paper? How about thinking NYC can offer more and higher quality jobs than just waiting tables, cleaning office buildings, or ringing up cash registers for those of us not in real estate, construction, banking or investment? We used to.
so if you can explain to me why it's better to invest in more luxury condos, H & M's, and Chinese manufacturing plants, instead of putting some of that money into industry and manufacturing here,I'm here to listen.
Posted by: bxgrl at August 4, 2008 12:47 PM
I'd rather see industry in Red Hook, but that's unlikely. Every factor from real estate prices to city and state taxes to transportation make other locations more viable for large-scale industry.
And ship repair is not the answer.
Large Ship repair on the Eastern Seaboard is centered in Norfolk and Charleston, and Mobile in the Gulf. The majority of the business has shifted to the Far East, simply because it's cheaper. Todd Shipyard was not competing, and its facility was ancient in comparison with the newer yards. The days of the ship repair business in Brooklyn have passed.
Posted by: buttermilk channel at August 4, 2008 1:02 PM
Sam's Club is coming to Brooklyn?
From your mouth to God's ear!
Costco's selection is too limited, and BJ's out by Starrett City is a little too far away. And both those guys could use the competition.
Posted by: Flatbushwhacker at August 4, 2008 1:02 PM
The waterfront industry in Brooklyn is more less finished (with a couple of exceptions) because the Port Authority has failed (along with NIMBY help along the way) to build a rail tunnel to connect Brooklyn/LI to the main Trunk Lines in NJ. The PA was created to do this almost 80 years ago.
One day people might wake up to the cost in $, traffic/time and pollution that having to ship everything to LI/Brooklyn/Queens via truck costs. Until then - the only thing 'industrial' that can survive is light industry generally in niche markets.
Posted by: fsrg at August 4, 2008 1:23 PM
Unfortunately I am forced to agree with Buttermilk Channel. Nevertheless there is still some minor ship repair in NYC, you'll find it along Richmond Terrace in SI and at the Navy Yard, where GMD shipyard lives.
Posted by: denton at August 4, 2008 1:27 PM
I am with brxgrl on this. If one were a conspiracy nut one could say the "they" were successfully creating a ever larger underclass that is constrained by debt and kept docile by cheap food and junk. wall-e was so close to the the current state of things... There is a huge market in the tri-state but what has government focused on developing for the past 30 years -- back-office jobs that can easily outsourced and retail that can not support an individual let alone families. There's great job growth in healthcare -- but it is actually home care assistants -- another minimum wage job.
Posted by: BH76 at August 4, 2008 2:02 PM
Bxgrl;
You have no idea what you are talking about. I work for a major Japanese industrial firm, and I can assure you that one of the last places any heavy industrial facility will be located is NYC. The cost of RE, utilities, labor, etc. just make NYC an unsuitable place for such an activity.
I don't say this as a knock against NYC - I'm a resident - but as a fact of economic life. NYC has elolved to a different economy, one centered on finance, media, fashion, professional services and other creative, information-intensive services. Get over it.
There is one other factor that weighs against locating an industrial facility in NYC, and that is the local attitude towards such places, and here I am specifically speaking of folks like you, who think they know how to order the world. If, somehow, an industrial company could be persuaded to locate a facility here, no sooner would the opening-ceremony ribbon be cut then folks like you would be taking to the blogs and streets. The noise! The dirt! The way they treat their workers!!
Finally, most businesses will not be convinced to locate such a facility in NYC with the promise of some type of government subsidy. They're shrewd enough to understand that those dollars would come with mighty big strings attached, as hack politicians would inevitably respond to folks like you.
I could see the local TV news now "We're here standing in front of the Red Hook Ship Repair plant, and we're talking to Bxgrl. Bxgrl, what are you demanding?" Bxgrl" "We're here to demand that they do something about The Noise! The Dirt! The Way They Treat Their Workers!". "Back to you, Jim".
Keep dreaming. Most folks who are involved with industry have a job to do, and that job certainly doesn't involve responding to busybodies.
Posted by: benson at August 4, 2008 2:48 PM
you know benson- You must be a really stupid person since your only recourse is to resort to insults instead of trying to explain to me what you think is my error. But there seems to be quite a few shortsighted, small minded, money grubbing types on brownstoner who don't know how to disagree without resorting to spouting all manner of I-know-better-than-you garbage.
I can't account for why you're a schmuck without one iota of vision, social conscience, reading comprehension or capability in the realm of civil discourse, I can only attest to it.
You are obviously one of those sit on your ass do nothing slobs who cares about no one and nothing. Don't put words in my mouth and try again when your IQ goes from 2 digits to 3. I'll be waiting- probably forever.
Posted by: bxgrl at August 4, 2008 3:36 PM
agreed that nyc waterfront is no longer the place for industrial uses. the value of the land alone makes such use infeasible.
Posted by: BrooklynLove at August 4, 2008 7:53 PM
Bxgrl;
The reason I am so harsh with you is the way you comport yourself on this blog. You pontificate on every topic that comes along, in accordance to some sort of utopian vision that you have. Give us a break. If the twentieth century demonstrated anything, it demonstrated the fallacy of utopian visions, whether derived from the left or the right. Not every issue can be painted in black and white, as is done by you and others on these pages.
I was born but a stone's throw from the site of where IKEA and Fairway now stand. My parents worked in one of those glorious factories that you believe were so great. Do you know what the biggest industry in those factories was? Making paper bags. My father as a child attached handles on shopping bags. Would you have him go back to those days? Should I drop what I'm doing and start making paper bags? How about you?
Fortunately for me, my parents improved their lot, and likewise for their children.
Posted by: benson at August 4, 2008 8:30 PM
well in case you haven't noticed, brownstoner wants comments. It's not a blog otherwise and since my opinion is the same as anyone elses you are free to not read it. At least I respect other people's opinions, and believe me there are quite a few I disagree with. Nor do I pontificate on every topic- since you're too stupid to notice, there are certain topics I am passionate about and I generally stick to them. But you obviously don't have the comprehension level to begin to understand what I said. And then, who the hell are you to take me to task? You're a damn salesman, for chrissakes. Or did you think that qualified you to be Albert Einstein?
As for my "utopian" vision- That's your ultra right wing faux intellectual interpretation based on whatever childhood traumas about communism you seem to have had. If you think you've read my "extolling glorious factories" anywhere I beg you to quote me. Other than that, get your hallucinations under control. Take your meds because you couldn't tell the difference between a utopian vision and a porno movie.
My dad was a garmento. Want to know what sweatshops were like? Believe it when I tell you some of the shops my dad worked in would have thought a factory on the waterfront was heaven. The unions put him out of business and he went bankrupt- want to talk about poor? Don't you dare tell me what I think or try to even tell me what I will or will not do. You are nowhere near educated or intellectual enough to do that. You don't like what I write? tough. don't read it.
Posted by: bxgrl at August 4, 2008 9:03 PM
anyone notice the article appeared at almost the exact same time the times had another article on the front page about the decline in shipping worldwide due to higher fuel costs? Just sayin...long term vision needed. I think they should allow the big boxes (and negotiate with them as a whole somehow) and strike a deal that they can open the store IF they (as a whole) provide large scale transportation solutions for the area (ferries, light rail, whatever). Thanks for reading!
Posted by: lalaland at August 4, 2008 10:08 PM
Or telling them to open manufacturing plants in the US, like Ikea did. I read the article too.
Posted by: bxgrl at August 4, 2008 11:15 PM
Hey Benson...
without going into the personal stuff, yeah, most people don't have a clue what goes into ship repair/ship building, and the associated environmental issues.
Before my child was born, and I sought more local employment, I was in the international marine biz and visited shipyards all over the world.
Paint stripping, galvanizing, tank cleaning, cutting, welding, sanding, and disposal of huge amounts of scrap metal, hazardous chemicals, asbestos, lead paint, abrasives, etc. are just a small part of the game.
Hell, just look at the thread on asbestos removal on Smith Street the other day. Plenty of asbestos still on those ships.
Furthermore the US has been so de-industrialized that you can't even source a lot of steel here anymore. You can't source a lot of _anything_ here any more. Speaking of articles, I noted a few weeks ago that one of the problems in building new nuke plants here is that some part of the vessel is made by only one company in the world, Japan Steel Works. See the bottom of page 2
http://www.nytimes.com/2007/12/05/business/05nuke.html
I wonder how many USCG-certified welders are left in NYC?
I bet many Brownstoners are familiar with the work of Edward Burtynsky, who documents large-scale industrial processes. Some of his photos of ship-breakers in Bangladesh are on line, see
http://www.cowlesgallery.com/archive/burtynsky/shipbreaking.html
Higher fuel prices may make some manufacturing more feasible in the US, and I like that. But the US is not Red Hook, and Ikea didn't open a factory in Red Hook, it opened it in Virginia.
Heaven help America if we ever have to fight a real war with a real country. We won't have the industrial production capability to fight it.
No one laments the demise of manufacturing in both NYC and the USA more than I do, but it ain't coming back to Red Hook for all the reasons Benson lists and more.
Posted by: denton at August 5, 2008 6:56 AM
Denton;
You said a mouthful! Prior to moving to sales, I was an engineer for 15 years, specifying products that were manufactured in New Hampshire and Japan. One of the sadder aspects of NYC's transformation is that many of its residents have lost touch with large parts of the other economic sectors that are in this country, such as farming, manufacturing and mining/exploration. As I said in my original post, this evolution was inevitable, but I find that it has brought an unrealistic worldview to many folks here.
I even see it in the condo where I live. It is a new condo, and I observed how many of my fellow residents interfaced with the builder concerning the inevitable problems that crop up in new construction. Issues that could have been resolved with a modicum of practicality on the residents' side were immediatly escalated to the threat of legal confrontation. I was even reviled by some residents for the fact that I could get issues resolved by simply applying some common techncial sense to the negotiations.
I am not as pessimistic as you about the US economy. There is no doubt that our manufacturing base has been hit hard in recent years, but I still see alot of areas of strength, and believe that we will do well. For all the gains that China has made over the past few years, it is interesting to note that they have not evolved at all (as the Japanese did). For example, no major Chinese brand name has been planted in the minds of consumers, in the effective way that Sony, Toyota and all did.
Concerning NYC, I think the greatest harm is done by those who hold to the belief that the key to the uplift of folks in the Red Hook projects and elsewhere is through locally-based manufacturing. If folks really wanted them to do well and move into the middle-class, they would tell them that there are realistically only two options:
-if you want to stay in the NYC area, then get a good, advanced education.
-if you want to move into the middle class through manufacturing work, then move the the South or areas like southern Indiana where this is still possible.
My company has a plant in southern Indiana that I occassionally visit. Folks in NYC would be shocked at the wages they are paid. Yet, due to the low cost of living there, they have a comfortable life. Most own a modest, but nice home on a good-sized piece of land, and there is usually a 20-feet boat parked in the yard, for weekend fun.
Good talking with you.
Posted by: benson at August 5, 2008 9:53 AM
The whole point of this thread (and the asbestos thread the other day) was an opportunity to discuss ideas and possibilities. More importantly, it was a chance to express viewpoints about industry, and the economy, not produce a manifesto. And sure, many of us don't have the backgrounds you do, although a lot of us have a range of experience and brains you would neither credit nor respect.
If I didn't want to learn about why manufacturing is or is not feasible, I wouldn't have posted. Unlike you, I am always aware that anything I post is my only opinion, and I don't require anyone to agree with it in order to have a civil discussion. But it takes a mature adult to do that and maturity seems not to be your strong suit.
Posted by: bxgrl at August 5, 2008 11:03 AM
What NYC needs, and what would suit Red Hook to a "t" - (except the lack of great mass transit), is a real urban market - like Borough Market in London, or Pike Place Market in Seattle. The waterfront would be a great backdrop. Classic buildings on cobble stone streets. It would employ a significant number of people and would really solidify Brooklyn's base - economic, social, aesthetics, etc. Just think of Fairway - just infinitely varied, bigger, "real".
Posted by: sjtmd at August 6, 2008 10:31 AM
All I have to say about this thread is that if someone tries to bring another big box store to the waterfront in Red Hook I and a lot of other people will fight this to the end. The waterfront should not be wasted on big box stores. Waterfront property is extremely limited and valuable. Talk about short sited. Get a clue!!!
Posted by: Left Hook at September 3, 2008 4:09 PM

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