Mall plan makes waves in Coney

Why, business owners and officials wondered, has the developer not met
with the city-sponsored panel charged with rejuvenating the seaside neighborhood?

While an exact location for the amusement mall has not been revealed,
Lee Silberstein, a spokesman for Thor Equities, confirmed that the development
company has indeed purchased land within that fabled swath, in addition
to parcels on either side of Keyspan Park and west of Stillwell Avenue.

Thor Equities is owned by Joseph Sitt, who redeveloped the Gallery at
Metrotech, an ailing indoor shopping mall abutting the Fulton Street Mall
in Downtown Brooklyn, after it was abandoned by Metrotech’s developer,
Bruce Ratner. Sitt renamed his mall the Gallery at Fulton Street.

Describing the project as a mixture of “amusement, adventure and
entertainment,” Silberstein said this week that the complex would
bloom within steps of the boardwalk, though he declined to say where specifically.
He confirmed, however, that Thor had purchased both vacant and built-up
property as far west as 21st Street and as far east as 12th Street, all
for the purpose of developing the entertainment complex. Whether Thor
hoped to build one gigantic complex or develop several similarly themed
spaces was not clear by press time.

“I can’t say a whole bunch right now,” said Silberstein,
who acknowledged that principals with Thor Equities had not met with members
of the development corporation. But he said they had intentions to do
so within the next several months.

“But what I can say is, Thor plans to do a development that builds
on Coney Island’s history,” said Silberstein. “It will
definitely fit into the neighborhood.”

The plan could hit rough waters if it clashes with those of the Coney
Island Development Corporation (CIDC), formed by the mayor and Councilman
Domenic Recchia nearly two years ago to revitalize much of the same area
eyed by shopping mall developer Thor Equities.

“Right now, there’s more left of ancient Rome than there is
of historic Coney Island,” said Dick Zigun, president of the nonprofit
Coney Island USA. “The concern is, even before the city reveals its
plan, [Thor] is going to blow out everything that exists between Stillwell
Avenue and West 12th Street.”

Zigun said that early drafts of the CIDC plan safeguard much of what he
called historic Coney Island, an area that runs along the boardwalk between
Stillwell Avenue and West 12th Street.

Among the properties purchased as recently as last month by Thor is the
site of what was once the historic Washington Bath House, on West 21st
Street between the boardwalk and Surf Avenue. Horace Bullard, who owns
much of Coney Island’s real estate, said that he sold the 200,000-square-foot
parcel to Thor within the last two months. He said he was told by executives
with the development company that the site would be among those used to
build a large complex, which he was told would be a mixed-use facility
with amusement rides, games and retail.

Of Sitt, Bullard said, “He’s become another one of those Coney
Island dreamers — but this time one with money.”

Bullard added, “From listening to both Thor and the city, yeah, I
think they’re on the same wavelength.”

While Thor Equities is known for developing malls across the country,
Silberstein said the Coney Island complex would be “very different
than traditional retail,” though he declined to elaborate further.

But many involved in Coney Island’s current and future resurgence
worry that Thor, or other big-name developers, may scoop up not only vacant
buildings but fully operational businesses on or near the boardwalk, whose
owners could be left out on the street.

Zigun, for one, who operates the Sideshow by the Seashore, said that his
landlord at 1208 Surf Ave. recently rejected his request to renew a 10-year-lease,
offering instead a one-year-lease and a rent hike. The decision, he said,
is one many landlords are making, thanks to the glut of developers interested
in buying Coney Island property.

Michael Harari, a broker with Massey Knakal Realty, said that vacant lots
in Coney Island have doubled in price since this time last year, with
lots measuring 20 feet by 100 feet going from about $250,000 last year
to about $450,000 now.

“Definitely, the level of activity has increased and the prices have
jumped tremendously,” said Harari. “From a year ago until now
the prices of vacant land has literally doubled.”

Despite the increased property values, said Harari, local and international
developers are clamoring to stuff old buildings with new entertainment
and retail ventures. He said that besides an “Asian spa meditation”
business interested in operating near the beach, entertainment groups
out of Sweden and Norway are looking to convert the landmarked Childs
restaurant building into a nightclub or other hotspot.

That 25,400-square-foot building, on the boardwalk at West 21st Street,
is on the market for $7.9 million.

“It’s amazing how much people have heard about Brooklyn internationally,”
said Harari, who estimated his company was marketing 10 properties in
Coney Island valued at a combined $32 million.

While most of the renewed interest in Coney Island is focused on the amusement
district, the urgency to invest in the area has spilled to more residential
areas. He said a four-story apartment building with a commercial overlay
at 1614 Mermaid Ave. recently fetched $800,000 and a trio of attached
three-story apartments at 1411 Neptune Ave. sold for $1.3 million.

Among those looking to unload their properties, say real estate sources,
is Hy Singer, chairman of the Kings County Republican Party. One source
said Singer had put at least five properties on the market, including
the building housing Nathan’s Famous, within the last six months.

The addresses of those properties are: 3030-3068 Stillwell Ave.; 1301-09
Boardwalk West; 1213-1221 Boardwalk West; 3057-3063 Henderson Walk; and
1229 Boardwalk West.

Silberstein could not say whether any of those properties had been bought
by Thor, but a published report claims that Thor had indeed scooped up
the Nathan’s building.

Judi Orlando, president of the Astella Development Corporation and a member
of the CIDC, said that she and others are concerned that projects like
those proposed by Thor Equities could swallow up new visitors to Coney
Island, who may shop and eat at the complex and then return home without
visiting other boardwalk establishments.

Although she hesitated to comment on the Thor plan until the development
group presented her with the proposal, she said that on the surface the
idea seemed to mesh with what most want to bring to the boardwalk. At
a CIDC meeting last year, several community members in attendance suggested
developing an indoor extreme sports facility as a way to generate crowds
year-round.