Contact: Colleen Roche (212) 788-2958, Deirdra L. Picou (212) 788-2971, or Adam Brodsky (EDC) (212) 312-3517
The project, which will be located on a site bounded by Jamaica and Archer Avenues, 160th Street and Parsons Boulevard, represents the largest single private investment in Jamaica ever. Besides the theater, the complex will feature retail and Class A office space. The complex will be between 300,000 and 500,000 square feet, depending on market conditions, and will rise to as many as eight stories. Magic Johnson Theatres is a partnership between the Johnson Development Corporation and Sony Retail Entertainment's Sony Theatres.
"Residents of this part of Queens -- and, indeed, of all Queens -- have waited long enough for new investment of this kind in this area. Now we'll have a first-rate multiplex theater, other retail and office space," Mayor Giuliani said. "It's a sign of how this Administration is getting projects done -- projects that have languished for years. It's a sign of how we are creating jobs, as well as shopping alternatives and entertainment opportunities, for residents. My congratulations to Magic Johnson, Sony and the Mattone Group."
Mayor Giuliani noted that it was just a few weeks ago that Earvin "Magic" Johnson came to City Hall to join the Mayor in announcing plans for the City's inaugural Mayor's Cup Basketball Tournament. The Mayor also noted that the agreement with Mattone was the result of an aggressive new marketing effort by EDC to turn idle, City-owned parcels into engines of economic activity by encouraging private development.
"I am excited about bringing Magic Johnson Theatres to Jamaica, Queens," said Johnson, chairman and chief executive officer of Magic Johnson Theatres. "This is an underserved area that we feel has great potential for success."
"This first private investment in Jamaica in many years is evidence of the health of downtown Jamaica," Queens Borough President Claire Shulman said. "Our hat is off to Mayor Giuliani for bringing this about."
Efforts to reach an agreement to proceed with the project were assisted by Borough President Shulman as well as Council Member Archie Spigner.
"The conditional designation of the Mattone Group marks the culmination of a public-private effort to rejuvenate Jamaica Center as a retail, office and entertainment center for Southeastern Queens," said Deputy Mayor for Economic Development and Planning Fran Reiter. "We're very proud to see this development come to this community." The area has seen investment in new subway lines, new roads and infrastructure, York College, the Federal Building and governmental offices.
"It took no great magic to bring Magic Johnson, Sony and the Mattone Group to Jamaica Center but, rather, dedication and commitment by Mayor Giuliani and all the people who are making this possible," EDC President Charles Millard said. "By keeping our eye on the ball, we were able to slam-dunk one for residents of Queens and New York City."
The project in Jamaica is anticipating funding of $5 million in the form of a low-interest loan from the State's Metropolitan Economic Recovery Fund, which is administered by Chairman Charles Gargano and the Empire State Development Corporation.
Efforts to develop the City-owned parcel date back to the late 1980s. In 1994, the City selected a developer for the site, but when the anchor tenant for that project encountered financial difficulties, EDC undertook an aggressive marketing campaign to identify a new developer. Through this intensive, business-like approach, EDC was able to attract and reach an agreement with the Mattone Group and Magic Johnson Theatres in a matter of six months.
Plans call for an 11-screen, 4,000-seat first-class cinema complex. The project also anticipates a number of national retail tenants and Class A office space. Catholic Medical Center, a not-for-profit health-care provider within the Diocese of Brooklyn and Queens, intends to create an administrative office facility on the site. Schuman, Liechtenstein, Clamon and Efron, a New York City-based commercial architectural firm, is the project planner.
The project is expected to generate approximately 650 new jobs and more than $15.5 million in direct and indirect tax revenue over ten years. It is expected to create night recreational activity that will benefit broad areas of Jamaica, as stores and restaurants stay open later to capture increased business from new visitors to the downtown area.
The first Magic Johnson Theatres in the Baldwin Hills section of Los Angeles has become legendary nation-wide as an example of how private investment in inner-city neighborhoods can be profitable for owners while benefiting the community. The Baldwin Hills theater has been ranked as one of the top-grossing theaters in the country. The company also has a theater under construction in Atlanta, Ga., and will soon break ground in Houston, Texas. The Jamaica Center complex will be the company's flagship in the Northeast.
Mattone was chosen from an initial list of 70 developers who expressed an interest in developing the site. Its proposal to build the theater, retail and office complex, the only one of the final proposals to include office tenancy, was determined to be the most financially viable and to have the greatest economic impact for the area.
"Today's announcement is great news for all of us at the Mattone Group, just as it is great news for Queens -- and, indeed, all of New York City," Joseph M. Mattone, President of the Mattone Group, said. "We're confident that we'll have top-name tenants who will offer residents of the area new shopping alternatives, jobs and increased business. We want to thank Ken Lombard of Magic Johnson Theatres and Ken Benjamin of Sony Theatres for their commitment to making this project possible."
"We are very excited about working with the City of New York and the Mattone Group on this project," said Kenneth Lombard, President of Magic Johnson Theatres. "We are pleased to be the first theater operator to bring a state-of-the-art facility to this community."
"Sony Theatres is very excited to be part of this venture," stated Lawrence Ruisi, President of Sony Retail Entertainment. "Our partnership in Magic Johnson Theatres has been very rewarding and we look forward to bringing this theater concept to New York."
Commenting on the new theatre, Sony Theatres Chairman Barrie Lawson Loeks stated, "Sony Theatres has a long - standing reputation for excellence as the premiere theatre circuit in New York City, and we will continue this tradition at the new Magic Johnson Theatre in Queens." Sony Theatres, the seventh largest chain in the country, currently operate 14 locations with 62 screens in New York City.
Magic Johnson Theatres combines the joint financial resources and management expertise of the Johnson Development Corporation and Sony Retail Entertainment's Sony Theaters in a unique enterprise that fulfills a clearly identifiable need for new first-class, first-run movie theaters in minority communities in key metropolitan areas. In addition to providing the finest quality theatrical entertainment experience, the theaters serve as a business stimulus, fostering local economic growth and financial empowerment in the communities which they serve.
The Mattone Group is a developer of commercial and residential properties throughout the Eastern United States and is based in Queens, NY.
EDC is the City's primary vehicle for economic development services. Using its real estate and financial resources, EDC helps develop businesses and create jobs throughout the five boroughs.