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DASNY
A profile on one of
the leading financiers and builders in New York State
By Mary Beth Sammons
The Dormitory Authority of the State of New York was founded
in 1944 to speed dormitory construction to house GIs returning
from World War II.
But soon, dining halls for students became the niche that
drove the authority's construction projects.
The 60s brought dorms for nurses at teaching hospitals, and
with that, the medical-care facilities themselves. The 70s
served the senior set, with a host of new living centers for
the aged.
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Since then, DASNY has gradually widened its scope to finance
libraries, health-care facilities and nonprofits. These days,
doctors, professors and judges are included in the authority's
projects.
DASNY recently built the nation's first judicial training
and research facility - the New York State Judicial Institute
at Pace University School of Law. The facility includes a
mock courtroom, where such pressing societal issues as domestic
violence, drug addition, juvenile crime and environmental
waste are heavily debated.
In almost 60 years of service to New Yorkers, DASNY has grown
into one of the largest financiers and builders of major institutions
in the country.
"We go to Wall Street more often than any other municipal
bond issuer in the
country," spokesperson Claudia Hutton said. "We're
in there once every two weeks."
DASNY went to market with 34 bond issues in 2002. The New
York City Transitional Finance Agency was next in volume with
24 sales.
The Albany-based DASNY oversees a portfolio of 135 construction
projects totaling more than $4.6 billion. For fiscal year
2002-2003, the Authority has spent more than $800 million
on the projects it manages.
DASNY specializes in tax-exempt revenue bonds, which are repaid
through
revenues generated by the facilities themselves. The state
isn't on the hook in the case of a default - not that default
is a problem.
No DASNY bond issue has gone into default in the authority's
history, and the high ratings its bonds receive reflect that
sterling record. A consortium of investment banks underwrites
each bond issue and markets the bonds to investors.
Financed largely by DANSY bonds, the construction projects
range from higher-education facilities to hospitals, courtrooms
and homeless centers.
Clients include the Metropolitan Museum of Art, Roswell Park
Cancer Institute, New York City Health and Hospitals Corporation,
psychiatric centers operated by the State Office of Mental
Health, the City and State Universities of New York and New
York City's Unified Court System.
A recent project is the $320 million Bronx Supreme/Criminal
Court Complex .
DASNY also is a major force in the modernization of New York's
health-care system, through its medical buildings, diagnostic
centers and hospitals. In much the same way DASNY has shifted
its focus from dorm rooms, hospitals also have moved beyond
construction tied to adding bed space. They're making investments
in their emergency departments, outpatient clinics and diagnostic
facilities.
To that end, DASNY is playing an intregal role in the New
York City Health and Hospital Corporation's $1.1 billion modernization
program.
"Twenty years ago we were all about building large dormitory-style
rooms and bed units for hospitals, "said Robert Walsh,
DASNY's director of health and hospital programs."Used
to be a hospital's revenue came from inpatient care. Now it
is the opposite."
Walsh said DASNY's purpose is to finance and build facilities
for higher education, health-care providers, court facilities
and certain nonprofit institutions and public agencies. The
authority issues tax-exempt securities, then lends the proceeds
to clients to finance the construction, rehabilitation or
equipping of facilities needed to furnish services to New
Yorkers.
"Basically, we oversee everything in the construction
from start to finish," Walsh said.
The growth in the last six decades speaks volumes about DASNY's
expanding roles. The authority was the third-largest issuer
of municipal bonds in the nation for the first six months
of 2003, according to The Bond Buyer, a daily newspaper covering
the financial markets. What's more, it sold $3.204 billion
in bonds from January-June 2003, the newspaper reported.
The largest issuer was the state of Illinois, with $10.46
billion, followed by the state of California with $6.086 billion.
DASNY also has become aggressive in environmental efforts,
recently teaming with the New York State Energy Research and
Development Authority to form a partnership to create innovative,
energy-saving projects. A pilot project was the Lake Shore
Health Care Center in Chautauqua County.
The two agencies joined efforts to help the hospital install
a new energy-efficient plant, which saves the facility more
than $160,000 in annual energy costs.
DASNY, which portrays itself as apolitical, is run by an 11-member
board that the governor indirectly controls. He appoints only
five board members and picks one as chairman, while the state
comptroller, Senate majority leader and Assembly speaker have
one appointment each.
Governor-appointed commissioners of the three agencies most
involved with
DASNY (education and health and the division of the budget)
also have posts.
"The board is the most active board I've ever seen,"
said Craig Love, former
budget director for DASNY and now commissioner for the Department
of Information
Technology for Nassau County. "They take their job seriously."
Despite the expansion in its role, DASNY's fundamental mission
remains the same. It acts as agent to protect the customer's
interest during both design and construction phases of all
projects. That includes selection of an architect, reviewing
all design documents, soliciting bids and holding contracts
on behalf of the customer.
Once construction starts, DASNY supplies onsite supervisors
and enforces the schedule. Other roles include purchasing
of furnishing and equipment, overseeing interior design and
real estate property services.
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TEAM BOX:
Developer/Construction Manager:
Forest City Ratner Cos., Brooklyn, N.Y.
Architect/Planners:
The Ives Group, Architects/Planners, Fair Lawn, N.J.;
Swanke Hayden Connell Architects, New York City
Façade Architects: Hardy
Holzman Pfeiffer Associates LLP, New York City
Civil Engineer: Kravchenko
& Associates, E. Northport, N.Y.
Structural Engineers: Dewberry-Goodkind
Inc., New York City; Cantor Seinuk Group Inc., New York
City
MEP Engineers:
Cosentini Associates, New York City
Landscape Architect: Abel
Bainnson Butz LLP, New York City
Steel Contractors:
Empire City Iron Works, Long Island City, NY; Interstate
Iron Works, Whitehouse, N.J.
Exterior Panel Contractors:
Eastern Exterior Wall Systems, Inc., Bethlehem, Penn.,
Artex Systems, Ontario.
Plumbing and Heating Contractor:
Almar Plumbing and Heating, South Ozone Park, N.Y.
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Under Construction
DASNY has 135 capital
projects totaling $4.6 billion currently underway
It was a "Who's Who" of state judicial leaders.
In May, Chief Judge Judith Kaye, Lt. Gov. Mary Donohue
and more than 200 top judges and lawyers from throughout
New York gathered in the three-story atrium lobby for
the grand opening of the New York State Judicial Institute
at Pace University Law School.
The legal eagles where there to celebrate the opening
on Law Day of the $15 million "college for judges,"
the nation's first judicial training and research center
built specifically for a state court system. It will
hold programs on such issues as integrated domestic
violence, jury trial innovations and drug-related crimes.
The 28,000-sq.-ft. complex is just one of the dozens
of "creative" building projects under way
statewide under the guidance of the Dormitory Authority
of the State of New York. The projects range from dormitories
at SUNY Farmingdale, Old Westbury and Stony Brook to
dozens of emergency rooms, library expansions, high-tech
research facilities and medical equipment purchases.
DASNY is currently involved in 135 major capital construction
projects totaling $4.6 billion for dynamic players in
health care, higher education, government and other
key industries across the state. The projects serve
all demographic populations, from the agency's original
teacher population to the ill, the elderly, the disabled
and those hungering for a higher education.
"We have undertaken a whole new direction in helping
to build some state-of-the-art high-tech research laboratories
and it's very exciting," said DASNY spokesperson
Claudia Hutton. "No other state has an organization
involved at this level in building its medical facilities,
city colleges, research facilities and all that we do."
There are also two potential high-tech projects on the
horizon.
One is the Buffalo Life Sciences Center, to be run by
Roswell Park Cancer Institute and SUNY Buffalo. The
project is awaiting final legislative approval this
fall, Hutton said.
There's also the proposed Wadsworth Laboratories (an
arm of the New York State Health Department). If it
is approved by the federal government next fall, it
will be one of two national laboratories for the study
of viruses and other biotechnical research. The proposed
site is Grifiss Air Force Base near Rome, N.Y. (See
sidebar for more details).
The authority also has financed numerous medical facility
and specifically ER projects including $320 million
in bonds for Memorial Sloan Kettering's expansion in
Manhattan and onto Long Island. It also issued bonds
to build the new wing of the Gurwin Geriatric Center
and to finance Long Island Jewish Medical Center's new
generator.
A $178 million, $245,000-sq.-ft. diagnostic treatment
center is under way at Kings County Hospital Center
in Brooklyn. The project designer is Skidmore, Owings
& Merrill and the construction manager is Gilbane/TDX
Construction Co.
Some of the major current projects
include:
New York State Judicial
Institute at Pace University in White Plains (as mentioned
above):
Part of the state's Unified Court System, the institute
is responsible for training New York's 1,300 state judges
and more than 2,000 town and village judges. The new
building will end a 20-year practice of using rented
or borrowed space in courts, hotels and bar association
meeting rooms to provide judicial education.
Erik Kaeyer, vice president of Kaeyer, Garment &
Davidson Architects, the project's architect, said the
construction schedule was "one of the tightest
we've ever had. They held our feet to the fire to make
sure we got this opened. And, it happened."
Kaeyer said architects faced the challenge of creating
a significant physical presence for the new building,
even though it was to be located in the back of the
Law School campus - or as Kaeyer described it, "in
the shadow of the other academic buildings."
Architects also had to bring light into the building's
land-locked environment. The solution: a three-story
atrium carved into the center of the building.
The DASNY project team was led by managing director
Douglas VanVleck with Philip Piscatella, director of
DASNY's New York City Courts Program; project manager
Frank Frasco; and architect Erik Kaeyer of Kaeyer Garment
& Davidson Architects of Mount Kosco, N.Y.
Stonybrook University Hospital:
The State University of New York at Stonybrook:
Construction is under way on a 40,000-sq.-ft. cardiac
care center, which is intended to serve as the hub of
heart care in Suffolk County.
The $25 million center is only a small part of a five-year,
proposed $ 300 million renovation, which will also include
plans to build a $40 million, 678-bed dormitory.
Construction on the four-building project on the northwest
side of campus began in the spring. At least three of
the buildings, and possibly all four, are scheduled
to open before the beginning of the 2004 school year,
according to Dick Mann, the school's vice president
for administration.
The project is part of a long-term capital plan funded
by DASNY bonds. The project is being designed by Manhattan-based
architecture firm Urbahn Associates. Builders will bid
on the construction job after the design is finished.
The Maritime College, a
specialized college of The State University of New York
(called SUNY Maritime) (See related sidebar):
Located in Throggs Neck, N.Y., the project includes
a new, four-story, 300-bed residence hall for the 125-year-old
college, which was the nation's first commercial maritime
institution. Phase two includes a second 150-bed unit.
The project is being built on a fast-track basis and
is scheduled for completion in two phases - the first
300 bed units in March and another 150 beds in August.
Skanska USA Building Inc. of NewYork is handling the
construction, and Mach Architecture & Engineering,
PC, based in Williamsville, N.Y., is the architect and
engineer.
Bellevue Hospital Center
in New York City:
Construction is under way on a $178 million, five-story,
207,000-sq.-ft. ambulatory-care facility and the renovation
of critical care units. The job is scheduled for completion
in November 2005.
In addition to the new facility, the project includes
renovating about 46,000 sq. ft. space in the main building
for critical care and another 90,000 sq. ft. in the
building for medical/surgical units and upgraded mechanical
systems.
The architect for the project is Pei, Cobb, Freed and
Partners of New York City. The construction manager
is Turner Construction Co. of New York City.
Queens Hospital Center,
Jamaica, N.Y.:
The recently completed $149 million major modernization
plan included reconstructing the entire main building
of this major health care provider, which has served
the communities of southeast and central Queens for
almost 100 years.
It was transformed into a state-of-the-art facility
with 200 beds. A new 360,000-sq.-ft. building was added
to create a women's health care center and cancer treatment
unit. The cancer unit offers a wide range of services
for cancers of the breast, uterus, lungs, colon, prostate,
head and neck.
Two architectural firms designed the reconstruction
and new construction projects: Perkins & Will Inc.
did the reconstruction project and Davis Brody Bond
was the designer for the new women's health care and
cancer treatment unit. Bovis Lend Lease was the construction
manager for both. All three firms are based in Manhattan.
Coney Island Hospital, Brooklyn:
DASNY and Coney Island Hospital topped off the new eight-story
patient bed tower in the spring. The project is part
of a continuing effort to modernize the hospital, which
is part of the New York City Health and Hospitals Corporation.
The $88.6 million project includes construction of the
new inpatient bed tower and connecting bridges to link
the addition to an existing building. An ambulatory
care center will be located on the first floor, with
212 private and semiprivate inpatient rooms, and related
spaces for medical and office staff.
The steel-framed bed tower has a façade of masonry
insulated metal panels and glass curtain wall. Construction
began in August 2002 and is scheduled for completion
in summer 2006.
This is the second phase of the Coney Island Hospital
modernization. DASNY has completed renovations of the
ambulatory diagnostic area and established a cardiac
catheterization laboratory. Renovations are under way
at the maternity department to add six birthing rooms,
and the authority expects that $4 million project to
be completed in summer 2004
The Hillier Group, based in Princeton, N.J., is the
project architect; Skanska Construction, New York, is
the construction manager.
Queens Family Courthouse,
Jamaica, N.Y.:
The $104 million courthouse opened its doors last spring
with hoopla similar to that at the new Judicial Institute:
Chief Judge Kaye and New York City Mayor Michael Bloomberg
and other officials were there to celebrate the opening
of this the new facility, which has 23 courtrooms, seven
hearing rooms, 14 large waiting rooms, chambers for
16 judges and a children's center.
There are also offices for agencies, including the Law
Department, Department of Probation, State Office of
Mental Health and the Legal Aid Society.
Interior space was designed to help the more than 2,000
people who use the courthouse daily to move efficiently
from place to place.
Project architects were the team of Pei Cobb Freed &
Partners/Gruzen Samton LLP. Bovis Lend Lease was the
construction manager.
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On the Boards
DASNY takes advantage
of low interest rates and plans for the future
At a time when the interest rates are at their lowest
in history, DASNY has aggressively been plotting future
development plans, according to Claudia Hutton, spokesperson
for the agency.
For the first nine months of the current fiscal year,
the authority issued $ 3.47 billion in bonds, more than
the $2.69 billion for the previous full fiscal year.
That financing translates into projects on the drawing
board for the future, Hutton said. Some examples: The
authority recently issued $34 million in bonds for an
850-bed dorm complex at SUNY Old Westbury; $20 million
for a 400-bed project at SUNY Farmingdale; and $29 million
for the 678-bed dorm at Stony Brook (see above). It
also issued more than $100 million in bonds for construction
at Columbia University.
Other major projects on the drawing
board include:
The New York City College
of Architecture:
An existing, though run down, modernist glass-block
building - designed and
built in the early 1950s - will be the new home for
the City College School of Architecture, which has outgrown
its current location in Shepard Hall.
The building was originally a library, but decades of
evolving academic and administrative programs have transformed
it into a fractured collection of generally inadequate
spaces housing administrative functions for the college
as a whole.
The campus master plan relocates these administrative
functions to other structures and calls for a gut renovation
of the existing building.
The $56.15 million project includes extensive exterior
work, as well as two floors of loft studio space, an
architecture library, exhibit spaces, offices and a
lecture hall around a large atrium. At the top of the
atrium, a skylight introduces natural light into the
heart of the plan and a rooftop amphitheater overlooks
the campus.
The architect for the project is Rafael Vinoly Architects
of New York City, and the construction manager is the
Liro Group of Syosset, Long Island. The design is only
15 percent complete. Construction should be completed
by 2005.
Wadsworth Laboratories:
Gov. George E. Pataki in May announced that the State
Health Department's application to construct a $200
million biodefense laboratory at Rome's Griffiss Business
and Technology Park has cleared the first major hurdle
in the federal government's selection process.
A scientific peer review of the application conducted
in early June qualified New York's application to move
on to the next round of the approval process.
Federal officials are continuing their efforts to select
two sites nationally that will share $275 million in
federal funding, and the National Institute of Allergy
and Infectious Diseases plans to make a final decision
on a site this fall.
The state's application calls for constructing an approximately
300,000-sq.-ft. laboratory with specialized areas where
microbes can be studied in safe, controlled conditions
to allow researchers to develop and test vaccines and
medical products.
DANSY would provide construction project management
services for the project.
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SUNY Maritime
Construction crews
run into a wall, but keep going
After successfully overcoming the first hurdle of drafting
an architectural design and construction project in
less than three months, the construction crews and architects
for the $14 million expansion of The State University
of New York (SUNY Maritime) were ready to work and meet
their tight construction deadline.
And then they hit a wall. Literally.
Poised for a major modernization of the nation's oldest
commercial maritime institution, the construction crews
discovered a rock-solid sea wall along the Long Island
Sound, after they dug 8 in. into the landfill that lined
the oceanside campus. Founded more then 125 years ago,
the college established a permanent home at its present
Fort Schuyler campus in 1934.
"It was one of those sea walls filled with rocks
that people want to have built, the kind you see in
pictures that are breathtakingly beautiful, except we
didn't know it was there," said Craig Belesi, senior
vice president for Skanska USA Building Inc. based in
Parsippany, N.J.
"We uncovered it under the dirt and landfill that
had obviously been piled on it over the decades. It
was something we had to remove to put in our pilings
for the building. It became a massive project to remove
the rocks and stones."
The project needed 220 concrete piles.
One other thing: It was also discovered the property
is located on a fault line, said Robin Mach, president
of Mach Architecture & Engineering, PC based in
Williamsville, N.Y.
And another thing; Midstream into the first month of
construction, plans were altered to double the size
of the dormitory to 303 beds.
Mach said he brought in help from two of his firm's
offices, utilizing a team of 20 to 25 architects to
work with the construction team, officials from the
Dormitory Authority of the State of New York and representatives
from the college to coordinate the project so quickly.
The contract was awarded in March, just months before
the first shovels went into the ground.
"Many quick on-the-spot decisions had to be made,"
said Mach, who attributes the successful time execution
to working closely with the entire crew and specifically
with Dr. Kimberly Kline, CEO of the college.
"This was one of those projects where we all worked
together to make the quick decisions that needed to
be made and nothing got stymied in politics and all
the usual hold ups," Mach added.
Belesi agreed: "This is a project with a no-matter-what
deadline, and we've worked aggressively and with a lot
of speed to make that happen."
The new four-story residence is a steel structure being
built on a steel pile supported by a concrete foundation.
A masonry and stone façade will complement the
surrounding campus structures and the fort's massive
stone façade.
At the rear of the building, sections of glass curtain
wall will be installed so that the students can take
in views of Long Island Sound while relaxing in any
one of the centrally located lounge areas. This building
will also provide needed handicap-accessible room suites.
-Claudia Hutton, a spokesperson for DASNY, said the
first 150 beds in will be completed by March, and another
150 will be finished in August.
Construction on the SUNY Maritime project began in June
2002 with the excavation of the sea wall. The dorms
are scheduled to be opened for students beginning in
the fall 2004 semester.
"This is a testament of our vision for the future
of the Maritime College," said retired Navy Vice
Adm. John R. Ryan, president of the school. "Literally,
we are breaking ground for a new residence, but figuratively,
we are affirming our vision of the Maritime College
as a model in higher education and leadership development."
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Maryanne Gridley
Providing leadership
for an aggressive financing and building plan
Maryanne Gridley, 53, was appointed Executive director
of the Dormitory Authority of the State of New York
in April 2002 by the Authority's board of directors.
Prior to joining DASNY and since March 1999, Gridley
was First Deputy Secretary to Gov. George E. Pataki.
She was appointed assistant secretary to the governor
when he first took office in January 1995 and deputy
secretary in 1997.
As deputy secretary she managed the Office of Public
Authorities within the Executive Chamber. As part of
her work there, she directed staff in a statewide effort
to ensure that public authorities met policy goals and
refocused their missions to better serve New Yorkers.
In that role she was a senior policy adviser to the
governor, was responsible for all budget and administrative
matters within the Governor's Office and served as the
internal control officer.
Gridley joined the Office of the State Comptroller in
1985 as assistant deputy comptroller for investments
and cash management and was responsible for the issuance
of state general obligation debt and certificates of
participation, management of the daily cash flow of
the state's general fund and the selection and compensation
for the state's banking operations.
Her state government career began in 1977, when she
joined the staff of the State Senate Finance Committee,
rising to the title of senior legislative budget analyst
responsible for budget and program recommendations to
the Senate majority on health and social service issues.
In March 2000, the Municipal Forum of New York honored
her with its Public Sector Career Service Award.
As DASNY executive director, Gridley will be the chief
administrative and operating officer of the public authority
that is one of the top 10 issuers of municipal bonds
in the nation.
Gridley replaced Thomas J. Murphy, who is returning
to the private sector after seven years with the authority.
We asked Gridley her about the
biggest challenges facing DASNY, about her time in office,
the changes she has put in place and her plans for the
future:
What is the biggest challenge
of your position?
The biggest challenge is running two businesses: finance
and construction. Every day we deal with issues from
both lines of business. We are the largest municipal-bond
issuer in the country for health and education. We sold
more than $4 billion in bonds during the past fiscal
year. Our construction program has over 600 projects
that we actively manage, worth about $3.8 billion. We
spend about $800 million in construction dollars a year.
What changes have you put into
place since you were put at the helm of DASNY more than
a year ago?
With respect to the authority's organization, very
little. I found that it was staffed with competent and
knowledgeable professionals. There is a work ethic that
seeks to regularly improve our processes and procedures,
and of course I will continue to foster that.
However, we began two new financing programs, one using
state personal income tax revenues to back bonds issued
on behalf of state education and economic development
programs, and the other to benefit local school districts.
We also are financing the grants awarded by the Legislature
for specific economic development, transportation and
higher education projects statewide.
We're putting the final touches on an integrated project
management system, which will integrate JD Edwards with
Expedition software. This will provide better oversight
and reporting for our customers.
What is your most exciting project;
i.e., a project that will really make a difference in
New York's health care or higher education/court system?
All our projects are exciting to our customers, and
all of them benefit the end users of the facilities
we build. But we have some high-visibility projects
worth mentioning:
- DNA Lab for the New York
City Medical Examiner's Office in Manhattan, which
will give the city state-of-the-art forensic laboratories.
- Buffalo Life Sciences Complex
in Buffalo, one of Gov. Pataki's Centers for Excellence;
a major biotech facility with SUNY Buffalo; and the
Roswell Park Cancer Institute conducting world-class
research.
- New York City Health &
Hospitals Corporation capital plan, which is rebuilding
the city's public hospital infrastructure. We've completed
a new Queens Hospital and the first phase of Kings
County Hospital. We're in the second phase at Kings,
and have major modernization programs at Jacobi Hospital
and Coney Island Hospital.
What is your personal mission
statement, the why of how this role is allowing you
to fulfill personal goals and make a difference?
To enable, encourage and motivate our talented employees
to provide quality facilities, financings and customer
service.
What lies ahead for DASNY?
We will continue to provide the state and city universities
with quality dormitories and academic facilities, and
provide health-care institutions with quality construction.
We will continue our role in rebuilding New York City's
court facilities. We are implementing cutting-edge facility
infrastructure, with energy-efficient buildings that
are less dependent on fossil fuels.
We are developing expertise in high-tech construction
with the state's Centers for Excellence, the DNA lab
and the state's application to the federal government
to build one of two national biodefense laboratories
researching vaccines, diagnostics and therapeutics.
(We expect the federal government to choose sites by
the end of September.)
What goals do you have for the
organization?
I want the authority to be synonymous with quality,
on-time construction and low-cost financing for public-purpose
facilities. I also seek to manage for organization stability
and quality as we continue to grow.
What about your background do
you bring to this position?
I grew up in Chemung County (N.Y.), where my father
was an elected public official. I got my bachelor's
degree at the Newton College of the Sacred Heart outside
Boston and my master's degree in public administration
from SUNY Albany. I've been in government service for
more than 25 years, including 10 years managing New
York State's cash flow and debt, and the most recent
seven years as a senior policy adviser to Gov. Pataki,
particularly on public authority and finance issues.
I live in a rural area outside Albany, where my home
is a peaceful retreat from work.
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