The only showplace for foods and beverages at the New York World's Fair

September 20, 1963

New York Worlds Fair 1964-1965 Corporation
Flushing Meadow Park
Flushing, New York

Gentlemen:

Reference is made to the agreement made and dated September 9, 1963 between the New York World's Fair and the World of Food, Inc.

After considerable study of the problems outlined in the agreement, we have concluded that a reduction in size of the building presently planned, by the elimination of the entire second floor, will not cause any major changes in the general scheme. We have been able to locate all presently signed tenants without endangering the acceptability of the space to the tenant. In so doing we are further insuring the ability of our general contractor, Charles Miesmer, Inc., to complete the building in the required time, including a time allowance for exhibit installation. The purpose of this reduction is twofold: it reduces the size of the job, the time requirement and the amount of the funds necessary for completion, without materially reducing the potential income necessary to meet the financial obligations of the construction and operation of the building.

The lending institutions will not recognize either potential rent or potential income from sales and are only willing to give a commitment for immediate funds for construction based on executed leases, less an amount to be held in escrow sufficient to operate the building for the first year of the fair. This sum, amounting to approximately $400,000 we believe to be adequate not only to operate the building as now planned, for the period, but also sufficient money to pay the ground rent due the Fair during the period. The fact that additional revenues are also anticipated from the operation of the building doubly assures these expenditures.

We are enclosing a copy of a letter of intent from the Kirkeby-Nasus Corporation in which they agree to advance as required for progressive payments during construction, a sum of $1.2 million (over and above the $400,000 escrow fund) and have embodied therein an escalator clause increasing the total sum to be advanced to a maximum $1.7 million based on our securing additional acceptable leases.

Developed by the WORLD OF FOOD INC., 49 West 37th Street New York City 18, N. Y., LW 4-2500

The only showplace for foods and beverages at the New York World's Fair

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September 20, 1963

We have received a verbal commitment from Mr. William Goldfine, President of the Royal National Bank of New York, that his bank will reinstate its offer to advance these funds to the extent of the guarantee made by Kirkeby-Natus in the same manner as outlined in detail in their letter of June 14, 1963, copy of which is attached. It bad been hoped, by the undersigned that we would be able to enclose herewith an actual letter of commitment from the bank, but the intervention of the Jewish Holidays has delayed us.

We are also enclosing herewith a copy of the proposed revised contract of Charles Miesmer, Inc. which is contingent upon the Kirkeby-Natus method of financing, a copy of the bond which both Mr. Miesmer and Crespi Fernandez & Co., brokers for the surety company, have assured us can be validated immediately upon proof that funds are available, copy of the bar graph showing expected construction schedule for the project which has been evolved after consultations with the subcontractors.

It is respectfully requested that consideration be given to permitting the World of Food to continue with its program in order to complete its negotiations. It is our sincere belief that we can imediate1y move this project forward without delay and can complete the pavilion, which we feel will be a credit to the Fair. Further, this will enable us to fulfill the definite needs of our more than 60 exhibitors and tenants who have made extensive plans and sizable expenditures to participate. Many of these exhibitors have their exhibits under construction now -some has even been completed. The continuance of the project would save considerable embarrassment to our exhibitors who have publicly advertised in national media and publicity programs.

May we further state that even though this project has encountered repeated delays, we wish to point out that at present pilings are completed and foundations are near completion. All of the steel for the project, as originally planned, is in New York City and is being fabricated in accordance with construction schedules, making very realistic the project completion date.

We thank you for your consideration.

Very truly yours,
THE WORLD OF FOOD INC.

Lionel K. Levy - President

Developed by the WORLD OF FOOD INC., 49 West 37th Street New York City 18, N. Y., LW 4-2500

November 14, 1963

Mr. Martin Stone

Richard B. Whitney

WORLD OF FOOD

I have discussed the World of Food situation with Bill Denny in detail. He was in touch with the contractor yesterday. The contractor, Charles Meismer, says that he has received assurances from Lionel Levy that they are going ahead with this project and that the foundations will be completed in 10 days to 2 weeks. The steel has been delivered and is on the site.

It is Denny's idea to let them complete all of the foundations but before they start to erect steel to determine if they have money to complete the job. Mr. Levy feels that they ought to have this within this period. In the event that they do not have the money, it would be a simple matter, according to Mr. Denny, to fill in over the foundations but if they were to erect steel and then stop it would be a more costly problem to rectify.

I discussed this matter again with Mr. Witt this morning that had talked to Lionel Levy yesterday. Lionel Levy is now working with the Chemical Bank in order to obtain his financing. His deal with the Mortgage Insurance Co. of Baltimore apparently was un-satisfactory to the bank.

Erwin Witt called Gene Mintkiski of the Chemical Bank who was going to inquire as to the status of this loan negotiation and to give Erwin Witt an educated guess as to whether it would go through

I will continue to follow this. As you know, we have a number of calls each week from their sub lessees.

On the basis of the above, after I have heard from Mr. Witt, I will prepare a complete memorandum reporting on this situation to Mr. Moses with copies to Erwin Witt and Gen. Potter for your signature.

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MEMORANDUM

NEW YORK WORLDS FAIR 1964-1965 CORPORATION

	DATE: November 15, 1963
TO:	MR. ROBERT MOSES
FROM:	Martin Stone
SUBJECT:	WORLD OF FOOD

After some 8 or 10 weeks of intensive work, Lionel Levy of World of Food has failed in his latest attempt to get financing. He says he has other negotiations under way.

World of Food is not behind on rent or other payments to the Fair. They are behind on their construction. The status is this:

Mr. Levy says he has enough money to complete his foundation, which will take from 10 days to 2 weeks. He has steel at the site. He says he is putting up some of his own money to finish the foundation work.

Bill Denny, Erwin Witt and I agree that we should let Mr. Levy go ahead with the foundation but not allow him to erect any steel until he furnishes completion bonds and can give us assurances that the pavilion will be built and ready on time. If we are to let him proceed with the steel work and he fails to complete, the cost to the Fair of removal would be considerable. We can, however fill his foundation easily.

This is a matter of grave concern to all of us because World of Food is at the main entrance to the Fair. At this point, however, we have no other alternative but to wait a few weeks longer. We are faced with the grim prospect of a vacant spot should World of Food fail, and we are concerned, too, with the mess which may result, affecting lessees such as Lipton Tea, RCA - Whirlpool, Hershey, etc.

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