FOR IMMEDIATE RELEASE Monday, April 3, 2000

View the Mayor's Press Conference

Release #119-00

CONTACT:	Sunny Mindel/Edward Skyler (212)788-2958
	Bernadette O'Leary (212) 312-3523 (EDC)

 

 

MAYOR GIULIANI ANNOUNCES INITIATIVE TO TRANSFORM UNUSED WATER MAIN INTO CONDUIT FOR HIGH-SPEED TELECOMMUNICATIONS NETWORK AND DIGITAL NYC PROGRAM TO EXPAND SILICON ALLEY CITYWIDE

Mayor Rudolph W. Giuliani today announced that the City is requesting expressions of interest (RFEI) [download in PDF format] to transform an unused water main system into a conduit for high-speed telecommunications cables, such as fiber optic lines. The new network could solve the overwhelming demand for fiber optic cable created by the economic resurgence of the City and explosive growth of the Internet and New Media industries. The Mayor also announced the formation of Digital NYC: Wired to the World, a program to establish affordable, Internet-ready office space in all five boroughs, beyond the traditional boundaries of Silicon Alley.

The Mayor was joined by Josepth J. Lhota, Deputy Mayor for Operations; Anthony P. Coles, Deputy Mayor for Planning, Education and Cultural Affairs; Robert M. Harding; Deputy Mayor for Economic Development and Finance; Allan H. Dobrin, Commissioner of the Department of Information Technology and Communications; Joel A. Miele Sr., P.E, Commissioner of the Department of Environmental Protection; Michael Carey, President of the Economic Development Corporation; William Rudin, Owner and Developer of the New York Information Technology Center and Member of the Mayor's Council on New Media; and Marc Scarpa, CEO of Jumpcut and Co-Chair of the Mayor's Council on New Media.

"The Information Revolution has created an incredible demand for an infrastructure to support the growth of New Media industries," Mayor Giuliani said. "Fiber optic telecommunications lines are the veins of this new industry, but existing conduits under the streets are quickly being filled up and building new ones is expensive and disruptive to traffic and pre-existing utilities. This unused water main has the potential to accommodate the almost insatiable appetite for fiber optic lines so that New York City can secure its place at the forefront of the Telecommunications and New Media industries. It is fitting that a network built at the turn of the last century will spur the growth of New York City in the twenty-first.

"New York City's high-tech community has exploded, employing more than 138,000 workers and generating more than $9 billion in revenue for the City in 1999. Through Digital NYC: Wired to the World, the City will help entrepreneurs find affordable, pre-wired office space in emerging high-tech districts from Staten Island to Red Hook to 125th Street," Mayor Giuliani concluded.

DEP engineers identified the decommissioned water main and City technology experts determined that the now empty pipes could be adapted to hold fiber-optic lines, which support high-speed data transmission. The system was constructed in the early twentieth century to supply high-pressure water to fight fires. With the advent of fire trucks capable of producing their own supply of high pressure, the water system became obsolete. The main contains 125 miles of pipe south of 34th Street in Manhattan and 50 miles in Brooklyn. 12 to16 inches in diameter, the pipes are triple the width of the typical telecommunications conduit and can hold up to 36 times the cable of the standard four-inch-wide conduit.

Throughout Manhattan and in other parts of the City, telecommunications cables run underground in pipes, often referred to as "conduits," that are accessed through manholes. Due to the rise of the Internet and New Media Industries, an intense new demand is quickly filling up the available conduits. The existing unused water main system will meet this increasing demand and provide the underground infrastructure to support new telecommunications facilities without tearing up the streets, delaying access to telecommunications services, or increasing costs.

Deputy Mayor Anthony P. Coles said, "This valuable addition to the City's infrastructure will build on the Mayor's success in promoting economic growth and creating record levels of new jobs. With expanding demand for telecommunications services, we expect there will be a strong response to the RFEI."

The Mayor released a Request for Expressions of Interest (RFEI) [download in PDF format] to seek industry and public input on how the pipes could be converted, used and managed and what compensation should be paid to the City and water rate payers for converting the system to its new purpose. The deadline for draft responses is May 15, 2000. A Request for Proposals could soon follow, and the system could begin to be transformed by the end of this year.

In addition, the Mayor announced Digital NYC: Wired to the World, a marketing program to establish affordable, Internet-ready office space beyond the traditional boundaries of Silicon Alley in Manhattan. High-tech districts in neighborhoods in all five boroughs were announced as participants in the program, with districts in Brooklyn, Staten Island and Harlem expected to be ready for tenants this spring.

Deputy Mayor Robert M. Harding said, "Under Mayor Giuliani's leadership, the City first created wired space for start-up and expanding high-tech companies in 1997 with the successful Plug 'n' Go program, which has leased more than 550,000 square feet of space in Lower Manhattan. Today, with Digital NYC: Wired to the World, we are expanding the boundaries of Silicon Alley, offering more than 200,000 square feet of wired, affordable space."

Digital NYC will be managed by the New York City Economic Development Corporation (EDC). Each district will be managed by a not-for-profit entity in partnership with building owners and technology service providers. In some cases, educational institutions and industry associations are also involved in the partnerships. Under the program, each district will receive a grant for a portion of marketing expenses and services for two years. EDC expects to spend over $2.5 million on the program.

The following high-tech districts have office space available immediately:

High-tech districts also participating in the program but with office space available for lease later this year are:

The New York Software Industry Association (NYSIA) will serve as a consultant providing technology assistance to the program. Companies interested in renting space are encouraged to contact the high-tech district directly, or email info@newyorkbiz.com for more information.

Since 1997 the number of high-tech related companies in New York City has jumped from 2,600 to almost 4,000. More than 138,000 New Yorkers are now employed in high-technology companies, and 250,000 could be employed by 2002. The City's revenue from New Media companies jumped from $2.8 billion in 1997 to $9.2 billion in 1999.

Mayor Giuliani was also joined today by representatives from each of the districts participating in Digital NYC: Wired to the World, including: Gayle Barron, Executive Director of the Long Island City Business Development Corporation; Ken Adams, President of the Brooklyn Chamber of Commerce; Cesar Claro, President of the Staten Island Economic Development Corporation; Terry Lane, President of the Upper Manhattan Empowerment Zone; Neil Pariser, Executive Director of the South Bronx Overall Economic Development Corporation; Mark Rosenbaum, President of the Brooklyn Navy Yard Development Corporation; Bette Stoltz, Executive Director of the South Brooklyn Local Development Corporation; and Teresa Williams, Executive Director of the Southwest Brooklyn Industrial Development Corporation.

Last June, Mayor Giuliani formed the Council on New Media to develop initiatives aimed at sustaining and expanding the New Media industries in New York City. The Council has formed nine subcommittees, dealing with such issues ranging from digital art to taxes, and Council members represent New Media businesses, trade associations, educational and cultural institutions, and government agencies. Silicon Alley companies involved with the council include @NY (Internet.com), JumpCut, Intellispace, Jupiter Communications, Agency.com, Redwood Partners, AlleyCat News, MTVi group and the New York New Media Association.

Individuals interested in receiving a copy of the RFEI [download in PDF format] can contact Mark Hoffer, General Counsel of the New York City Department of Environmental Protection, 59-17 Junction Boulevard, Corona New York 11368, (718) 595-6555; or Elaine Reiss, Deputy Commissioner and General Counsel of the New York City Department of Information Technology and Telecommunications, 11 Metrotech Center, third floor, Brooklyn, New York, 11201, (718) 403-8501. Responses are due no later than 5 p.m. on May 15, 2000 to either Mr. Hoffer or Ms. Reiss.