Tom (far right) with members of the Plaza Construction team.
As Executive Vice President and Regional Director of Plaza Construction’s Northeast Division, Tom D’Ercole is responsible for the strategic planning and oversight of the company’s portfolio in the region. Tom also ensures that all operational and administrative resources are in place to meet the needs of its projects and address the concerns of its clients. Plaza has played a key role in building many renowned structures in New York City, including the MTA Fulton Center, Brookfield Place Winter Garden, and the renovation of City Hall, and the company continues to do brisk business in both the commercial and residential markets.
BTEA President Elizabeth Crowley spoke with Tom about the current state of construction in New York and what he thinks local government should do to help the industry thrive.
BTEA: Tell us about Plaza Construction and the type of work that the company does.
Plaza Construction is a full-service construction company. We’ve been in the city for almost 40 years, so we have a large portfolio of work. We’re active in both the public and private sectors. In the public sector we mainly focus on schools, MTA and DDC projects, and we balance that workload with our risk management and bonding strategy. So, we take a measured approach, but we are in it for the long run. In the private sector we’re heavily focused on multi-family residential construction, but we also do a lot of commercial work: corporate interiors, large renovations, repurposing of buildings, restacking, conversions from commercial to residential. We also do higher education and institutional work. And we do a lot of interesting, one-off projects, and we excel at the more difficult projects.
BTEA: What has been your career trajectory and what is your portfolio in your current position at Plaza?
I’ve been in the construction industry for more than 35 years. Most of my career has involved operations. I’ve always been very hands-on, and being involved with the projects is what I enjoy the most. I’ve been with Plaza for 19 years and have had the great opportunity to work with mentors like Rich Wood, Chris Mills, Lester Rivelis, and so many others who have really been an integral part of the company. As a team, we’ve done a lot of great things together. Then one day I found myself in charge. It wasn’t planned that way, but I really relish the challenge of maintaining our position in the marketplace and still get a thrill when we take on a new project.
BTEA: What are some of the projects that Plaza has recently completed or that are underway that you would like to highlight?
We are very proud of the recently completed, landmark reimagining of the iconic Fulton Fish Market, now known as the Tin Building. It serves as a gourmet food hall operated by the renowned chef Jean-Georges and it’s open to the public, so it’s a great place to visit and enjoy terrific food. We are equally proud to have completed both the beautiful NCAA athletic and tennis facility for Columbia University, and, in partnership with Central Contracting and Consulting, Northwell Health’s Cancer Center on Staten Island, which was built over the existing, operating hospital. It was a tremendous feat built with Rich Simone, a great reliable partner. We’re currently finishing a public school—PS 557K in Brooklyn—that involved a lot of historic restoration of an 18th Century brick facade. The new structure was built into the old facade after the facade was stabilized and separated from the existing structure, which was then demolished. It’s a great looking school. We kept the landmark look as well as providing a whole new structure adjacent to it. This spring we’re starting another school project, an annex to John Bowne High School in Kew Gardens Hills. We’re also preparing to get underway with a senior housing project in the Bronx that the community really needs. We’ve always been interested in projects that benefit their surrounding communities and the city at-large. That’s one of the reasons why we promote the value of experienced, well-trained and skilled management and labor to our clients.
BTEA: What is your take on the current state of the construction industry in New York City?
I think the challenges of the last few years will ease a bit as interest rates come down and as more funding becomes available for the public sector. That funding has been out there for a while, but it takes time to get shovels in the ground. I also think we’re turning the corner with regards to the commercial work that took a big hit post-pandemic, though it will likely not come back in the same way as in the past because corporations in general are spending less on their spaces. Still, activity is picking back up, which is the most important thing, and it is up to us to adjust to the market. The need for housing is going to impact the construction industry, and we will need to adjust to the new dynamics of that market as well, which we are well positioned to do. As for commercial to residential conversions, I think that’s a slow burn. I know everyone talks about it, but we’ve been converting buildings in downtown New York for many years. As Midtown became more attractive to the big financial firms, the smaller and older buildings downtown had to be repurposed to remain viable, and so conversions have been proceeding for a long time, but it didn’t happen overnight. Today’s conversions of the bigger commercial buildings bring another set of complications, but in time the conversions of underutilized buildings will get done.
BTEA: From a government or policy standpoint, what would you like to see changed or improved to help your business thrive?
I would like to see a return of city and state tax abatement programs similar to 421-a. The 485-x program that came out recently is not as useful as the older programs for overall general housing and construction. But, if you couple a strong incentive program with the Mayor’s “City of Yes” plan, which is basically more practical zoning requirements to meet the needs of the city, we should see a positive impact on construction activity. Couple these factors with the expected lowering of interest rates and we will then see a more robust and favorable environment.