New Life for Theater for the New City
The City of New York sold the one-story building to the company in 1987, but retained the rights to the developable space above it. Theater for the New City then undertook a major renovation program to create a three-theater complex on the main floor and in the basement of the former warehouse. That $2 million renovation exceeded the theater's budget and led to a lien in 1997 that threatened to close down the company.
The New York City Economic Development Corporation, on behalf of the City, issued a request for proposals for potential development of the building's air space. New City associates, a local development company, subsequently paid the City $680,366 for the development rights. In addition, the developer paid Theater for the New City $519,634 for lobby space and an easement to build through the existing building. The Theater has used that money to pay off the lien.