The Museum's lobby after Sandy. (South Street Seaport Museum)

When Hurricane Sandy's flood waters receded from Lower Manhattan, the sense of relief was short-lived for the businesses, residents and non-profits who returned to find their buildings waterlogged and severely damaged. The South Street Seaport Museum, with an estimated $22 million in damage, was among the more tragically doused.

That all the Museum's historic boats and exhibits escaped basically unscathed was a consolation, certainly, but the Museum could hardly show them to anyone without heat, electricity, elevators or escalators.

Now, with the help of generators providing heat and electricity, the Museum is poised to re-open this Friday, December 14—in time to take advantage of at least some of the holiday tourist traffic. The Museum is also debuting two new exhibits: A Fisherman’s Dream: Folk Art by Mario Sanchez and Street Shots NYC.

Visitors will need to take the stairs and accept a space that is not perfectly climate controlled, with heat blown in from generators on the sidewalk, the Museum warned. But repairing and replacing the heating, electrical, elevator and escalator systems, as well as the lobby, cafe and gift shop, could easily take several more months.

Moreover, the building would miss out entirely on the holiday rush, when visitors flock to the city and parents seek activities for their out-of-school children.

The Museum told The Observer that it has raised several hundred thousand dollars for repair work. Its insurance policy only covers $500,000 worth of damage and its landlord, the Economic Development Corp., has agreed to cover repairs to the sprinklers and electrical panels. Which leaves a lot of funds left to be raised.

The costs of storm repair are particularly burdensome as the Museum was not on financial terra firma before Hurricane Sandy hit. Closed in early 2011 because of financial issues, it reopened under the management of the Museum of the City of New York in January of this year—giving the institution less than a year of operation under the new arrangement. Still, while the museum may have to wait some time before things are back to normal, at least on thing is certain: the renewed interest not only in New York's maritime history, but also in its future.

kvelsey@observer.com

All aboard for the new Pier 17. (SHoP)

Good bye, shed. (WiredNY)

Does a developer have any obligation to undo the ills of the past?

That was the rather existential debate that took place at the Landmarks Preservation Commission earlier this month, as commissioners debated the merits of a proposal to transform Pier 17 at the South Street Seaport. While the designs by SHoP Architects were roundly applauded, and ultimately won unanimous approval, many commissioners lamented the fact that the current mall was being replaced with a new one, rather than something less commercial or even nothing at all, just a wide-open public pier.

"There's lots of proof in Manhattan that a shopping mall never works, but nevertheless, there's a developer who insists they have the right formula for this shopping mall to finally work, so I guess within the context of that, then the question really is—is the architecture appropriate for the Seaport?" commissioner Margery Perlmutter said.

Commissioner Fred Bland felt so strongly about the issue, including the destruction of the notable-for-its-time Ben Thompson-designed mall, that he had composed his comments earlier that day, something he said had only happened twice before in his four years on the commission (for St. Vincent's and "for the infamous mosque").

"I come to today's vote with such extreme ambivalence, even sadness, I wanted to express myself with careful words," he said, going on to say that a mall belongs somewhere in the middle of the island if anywhere at all and then providing his own prescription for the site. "What should be here is a lot of open space, perhaps a little gem of a seaport museum or a seaport interpretation center and maybe some places to eat or drink while taking in some of New York's great views.

"But I am persuaded we cannot roll back the clock 30 years and correct this mistake now. Politically, economically, too much is at stake and it will not happen."

Gregg Pasquarelli, one of SHoP’s principals, told The Observer after that his design solves many of the problems the current building, which is there whether anyone likes it or not, creates, and no one would pay for the solutions were it not to some commercial end. “I think one can appreciate the argument that shopping on the waterfront is not the kind of project the city would approve today but the fact is that it exists, and therefore we should try to make the best solution to the current problem possible,” he said.

The commissioners seemed to agree, and indeed the mall proposed to replace the one that was there was quite a bit nicer. "Something needs to be done, I believe this is what should be done, and it's an appropriate expression of what to do on this pier," Commission Chair Robter Tierney said. "I harken back to Pier 15 for the kind of thoughtful materials and design and public amenities that work. You've done a sort of commercial version of that, if you will, in the best sense." (It is appropriate that he would compare the two, as SHoP also designed Pier 15.)

It is not without irony that a previous proposal for the pier that the commission flatly rejected three years ago would have included a good deal more open space on the pier, as it was part of a larger redevelopment effort that moved the shopping and additional development to the landside of the pier and relocated the historic Tin Building to the water, leaving more room around it. This proposal also include a new 40 story residential tower, which along with the designs of the previous plan, drew a great deal of ire from the commission. Were they to choose between the two today, it would be interesting to see which was preferred.

Still, a bankruptcy and a recession have a way of altering economic realities.

SHoP’s proposal in many ways is far more open than the current mall. The architects, along with developer Howard Hughes Corporation, a division of Bill Ackman-owned General Growth Properties, want to tear the shed-style mall back to its steel structure and build up from there, an approach they argue is less wasteful and therefore more sustainable.

From there, a new prismatic glass façade will be added, meant to evoke the jaggedness of waves. Because the base of the new structure will be cut into the building, with paths interweaving throughout, the architects argue it is a more public and inviting space, not just a wall of red corrugated metal. Through this run archways that the architects say will foster views of the Brooklyn Bridge. Some commissioners were suspicious of these view corridors while other applauded them.

"This is ultimately a very big and very complicated project with many things to consider," commissioner Michael Goldblum said. "On the issue of the view corridor, I think it could work. It does penetrate the building and draws the visitors in and through the space, and that is what you want."

"I don't think the view corridor will ultimately serve as a view-through corridor, but if that's what you want to believe, I'm willing to follow along on your dream," commissioner Perlmutter said dismissively.

The pathways created by these corridors are meant to evoke a retail experience closer to that of shopping at small storefronts on side streets (think West Village) than inside a monolithic mall (e.g. the Time Warner Center). Adding to the openness of the experience is a rooftop lawn that doubles as a venue for concerts, films and other events.

"Right now, the property pretty much serves the tourist trade," Mr. Pasquarelli told The Observer. "It doesn't serve the residents or the office workers. This reconfigures and opens it to the entire city, with a better space and a better mix of activities, something that will be a draw for everyone."

A number of commissioners were buying it—up to a point. "I'm quite in favor of this design," Michael Devonshire said. But he expressed a major concern that was repeated over and over again.

"We seem to get the polyanna version of what could happen with signage on those upper stories, I'm deathly afraid of what could happen." he said, referring to the glassed-in facade. "This seems to be the best-case scenario, we could be facing a worst-case scenario, but it's gratifying to see that that's something we can talk about later."

With all that glass, the building could easily turn into what Commissioner Goldblum fearfully called “Times Square.” The Historic Districts Council released a rather sensational rendering to that effect. The developer has promised that is not the desired aesthetic, and it will bring all future signage to the commission for approval.

Still, most of the commissioners were satisfied with their oversight of the building.

"I think the key to this scheme is the signage," commissioner Goldblum said. "I think the openness of the applicant to providing us as a commission with the lease date, the lease terms, things that relate to signage and cladding of the boxes, will inform the pedestrian experience of this structure. That's critical."

The developer also agreed to shorten a building known as the Link, a smaller shed on the western end of the pier (to those who know the pier now, it is the building with the Pizzeria Uno and random kiosks inside). Commissioners wanted to expose more of their old friend, the Tin Building, which dates to 1903. While some would have preferred even more visibility, Howard Hughes agreed on reducing it by one bay.

The development will continue to take shape, and Howard Hughes is happy to have finally dropped anchor on this project after years of working on it.

"The new Seaport balances the pier's iconic waterfront location with a much needed community destination for shopping, dining and entertainment," Christopher Curry, executive vice president for development, said in an email. "We will continue working closely with the City to create an unparalleled New York experience for residents, workers and visitors."

Shiver me timbers, what of the tower? (SHoP)

Avast, downtown!

Howard Hughes Corp. is set to reveal its plans for the renovation of Pier 17 at South Street Seaport, according to Crain's. The plans will first have to get the all clear from Landmarks Preservation Commission, which oversees the seaport historic district, and it is hoped the plans will be submitted sometime in the first half of 2012.

The bid faced opposition in the past from the commission when it was presented by General Growth three years ago, prior to the massive mall operator's bankruptcy.

Dogged in the past by building problems, the firm is ready to move forward with its presentation, after they recently conducted "thought-provoking" discussions with city organizations. One of these was with the Landmarks Preservation Commission, who they recently met a number of times, according to Crains New York.

Howard Hughes, a spin off of the bankrupt General Growth Properties, are treading carefully, considering their plans astutely, so that they are sure to appease the locals. The last leaseholder of the Seaport incurred their wrath after they proposed a large tower on the site. To satiate them, some of the latest plans being drawn up by SHoP Architects, the pier's designers, are thought to include more greenery and greater access to the street.

The delay in the pier project has be aided by an almost comic communications failure. In 2008, Community Board 1 approved the then General Growth plan once they they set aside space for a new school. Then they committed a complete about turn, rescinding their decision, after the city said they didn't need a school there.

Julie Menin, chair of CB1 and nascent borough president, told Crains that the board wanted to see the plans for the pier in the context of the whole development.

Once Landmarks is through with the project, it is on to City Planning and the City Council for a whole other round of reviews and approvals.

Bon voyage.

sduffy@observer.com

In the fall, The Observer heard that SHoP Architects was still eager to work on the seaport, and last month one of the firm's principals revealed that plans were actually underway, though also underwraps, as Howard Hughes felt out political and community leders on what would be best for the seaport, much of which is landmarked.

Now, Howard Hughes has discussed the project publically for the first time--sort of.

Downtown Express caught up with Grant Herlitz, HH's new president, and while he would not get into specifics, he did reveal a few new details about the company's plans for the seaport.

Herlitz would not confirm or specify any aspect of the design plans, though he said that the corporation plans to engage in “thought-provoking” discussions with the city and local organizations to “come up with the most vibrant plan for the South Street Seaport that’ll garner support and be an exciting new redevelopment [project] for the city.” The pier, he added, would continue to serve as an “integral” part of Lower Manhattan.

Consider our thoughts provoked!

mchaban [at] observer.com | @mc_nyo

Then came the news in October that hedgie and shrewd real estate investor Bill Ackman would be in charge of Howard Hughes Corp, the General Growth spin-off redeveloping the seaport. The Observer has put in numerous calls to Ackman's Pershing Square Capital to try and figure out what exactly is in store, but we've yet to hear back.

Check out SHoP's latest work at Atlantic Yards. >>

Now, one of Pasquarelli's colleagues, Corie Sharples, has told DNAinfo that SHoP has yet to do any new design work, but the firm has been meeting with Howard Hughes about they project. "They're proceeding very, very cautiously," Sharples said. "They're talking with the city before doing anything else."

It should be interesting to see what results from the talks. The city's Landmarks Preservation Commission was lukewarm about the project when it was first presented in 2008, and the community downright hated it. But these are more difficult times to be building in the city.

On the one hand, finding financing could prove difficult. On the other, city officials, developers and construction unions are all desperate for just about anything to get built, which could make it easier to force an ostentatious project through the public review process. (Just ask Steve Roth about that.)

mchaban [at] observer.com | @mc_nyo

Sure the South Street Seaport isn't an 11,200-unit apartment complex in a prime location. But it could be even better, if Gregg Pasquarelli and SHoP get their way.

To clarify, Ackman is now in charge of Howard Hughes Corp., an entity that is being spun off from General Growth Properties, as the gigantic retailer exits the largest real estate-related bankruptcy in the nation's history. General Growth will continue to operate the company's malls, while Howard Hughes will takeover its major development projects.

These include the Seaport, where the pre-bankruptcy General Growth had proposed turning the outmoded Pier 17 into a modern retail and condo complex, complete with a 42-story tower. The project still awaits approval from the city's Landmarks Preservation Commission, though the tower is outside its purview.

As for the name, Ackman explained it to Bloomberg thusly:

"The Howard Hughes name -- which reflects the success and vision of one of our country's greatest entrepreneurs -- is a fitting brand for this world-class portfolio of real estate assets."

And yet the first thing that came to mind when the Real Estate Desk heard the name Howard Hughes was the Spruce Goose, the tycoon's attempt to build the largest plane ever, which managed to take off but once due to its poor design. The Desk would hate to think Ackman has jinxed his outsized project at the Seaport. If so, it could all turn out rather badly...

General Growth, the nation's second-largest mall owner, had planned to redeveloped the Seaport. A large amount of debt accumulated during the real estate boom--as well as local opposition over changing the landmark--stymied those plans, which included a boutique hotel and a retail complex.

More Observer coverage of General Growth here. The REIT is also, for now, the lead developer on a major East 125th Street mixed-use, mixed-income complex.

General Growth is redeveloping the South Street Seaport and leading the development of a mixed-use, mixed-income complex on East 125th Street.

Shortly thereafter, a supremely bad run of events walloped the publicly traded firm, including the exit of its chief executive under the weight of $27 billion in debt obligations and then the de-listing from the S&P 500 because of a consistently low share price.

Now, according to today's Wall Street Journal, it looks as if Citigroup, one of General Growth's lenders, has run out of patience, and is forcing a Dec. 12 showdown on repayment.

We are trying to find out what bankruptcy would do to the Seaport and East Harlem projects. Stay tuned.