NEW YORK | Wed Dec 19, 2012 9:12pm EST

NEW YORK (Reuters) - The New York Public Library released designs on Wednesday for an overhaul of its flagship Beaux-Arts building in Manhattan that will open to the public spaces that only library staff have seen for the past few decades.

Under the plan, patrons will be able to borrow books from a new 100,000-square-foot lending library, creating what Mayor Michael Bloomberg said would be the largest combined research and circulating library in the world.

"With the Central Library Plan, we will open up more of our landmark building to the public, offering both circulating and research collections in one place, as well as the programs, classes, materials and services needed by our patrons," New York Public Library President Tony Marx said in a statement.

The building, with two stone lions famously guarding the entrance on Fifth Avenue, opened in 1911 and was declared a National Historic Landmark in 1965. It became a research-only library in 1981 when the lending library was rehoused in a relatively drab building across the street.

That building will be closed when the renovation project is completed in 2018.

Project architect Norman Foster, who has previously designed modern additions to other historic buildings such as the British Museum in London and the Reichstag in Berlin, said the flagship building's chandelier-bedecked Rose Main Reading Room would not be touched.

The library is making space for the lending library and increased research space by removing much of its stacks - seven stories of steel shelving containing millions of research volumes - at the rear of the building that are currently closed to the public.

Many scholars had previously criticized early plans to send most of the displaced volumes across the Hudson River to a storage building in New Jersey, saying the library's mission as a research center would be harmed if it were to take up to 24 hours for a requested book to arrive.

In response, the library said in September it had been given an $8 million donation allowing it to expand its underground storage space and keep onsite 3.3 million of the 4.5 million volumes currently stored there, with the remainder available nearly instantly in digital formats.

The library had earlier estimated the plan would cost $300 million but said on Wednesday the final budget would be higher, although it was not yet finalized. Bloomberg, who has endorsed the project, has said the city will contribute $150 million.

The library said the remainder of the funds will come from sales of buildings it owns nearby, and that consolidating several midtown libraries into one building will save about $15 million a year, which it will spend on librarians and books.

The plans still require approval from various city agencies, and the Landmarks Preservation Commission will have to give its approval for what the library calls "relatively minor" changes to the building's exterior before construction can begin next year.

(This story corrects reference in lead to who has access to areas being opened up)

(Editing by Cynthia Johnston and Lisa Shumaker)

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JERUSALEM | Sun Oct 14, 2012 11:18am EDT

JERUSALEM (Reuters) - A collection of yet unseen Franz Kafka writings, stashed for four decades in a Tel Aviv apartment, will be made public and transferred to Israel's national library, according to an Israeli court ruling published on Sunday.

The papers had been held by Eva Hoffe and Ruth Wiesler, two sisters who argued in a more than four-year-long case that they legally inherited the documents from their mother, Esther Hoffe, secretary to Kafka's close friend and executor, Max Brod.

But the court ruled that Brod, had ordered in his will that the majority of the documents he had given to his secretary should go to a public archive.

Leading experts have said they did not expect material to emerge from any of Kafka's writings found in the apartment that would prompt major revisions of the works by the Jewish, German-language author who died in 1924.

But papers in the collection are believed to include manuscripts by Brod that could shed new light on Kafka's life and times in Prague.

"It is a victory for the people of Israel," the National Library's Judaica Collection curator, Aviad Stollman, told Reuters. "These materials have been locked up for more than 40 years and will finally be exposed and made accessible to all," Stollman said.

Kafka's "The Trial", "The Castle" and "Amerika" were published after his death, when Brod, who was also his biographer, ignored the Prague-born writer's dying wish to burn all unpublished work.

In 1939 Brod fled the Nazis, taking the last train out of Prague with a suitcase of Kafka papers under his arm. After Brod's death in Israel in 1968, the archive was passed to Esther Hoffe.

The secretary placed some of the writings in Tel Aviv and Zurich safe deposit boxes and the rest in her apartment in the Israeli city, fuelling a Kafkaesque mystery about their content.

Esther Hoffe died in 2007. Her gift to her daughters was challenged in court by the State of Israel, which said the writings should be in the public domain in the Jewish state.

Brod had already given much of Kafka's manuscripts to the writer's niece in 1956. They ended up in Oxford after a chance meeting between an English academic and the niece's son -- Kafka's great-nephew.

In Israel, Esther Hoffe frustrated scholars by denying them access to the papers in her possession -- though she sold Kafka's manuscript of his novel "The Trial" for a reported $2 million in the 1980s.

During the trial, the sides bickered about the dubious conditions in which some of the writings were supposedly kept, with the woman's cats cited as a concern.

Harel Ashwal, a lawyer who represented one of Hoffe's daughters, told Army Radio the legal team was likely to appeal.

"It is not the end of the story," he said.

(Writing by Maayan Lubell, editing by Diana Abdallah)

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